Document:

EXHIBIT 10.1

 

INTERIM
EMPLOYMENT AGREEMENT

 

THIS
INTERIM EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into
with an effective date of April 10, 2008, by and between Pharmacopeia, Inc.
(hereinafter the “Company”) and Joseph A. Mollica, Ph.D. (hereinafter “Dr. Mollica”).

 

RECITALS

 

WHEREAS,
Dr. Mollica is presently the Chairman of the Board of Directors of the
Company (“Chairman of the Board”); and

 

WHEREAS,
the employment of the Company’s former President and Chief Executive Officer,
Leslie Johnston Browne, has ended and the Company is engaged in a search to
retain a successor to Dr. Browne; and

 

WHEREAS,
the Company desires to employ Dr. Mollica as the Company’s Interim
President and Chief Executive Officer (“Interim President and Chief Executive
Officer”) until such time as the Company is able to hire an appropriate
individual to serve as the successor to Dr. Browne.

 

NOW,
THEREFORE, in consideration of their mutual promises and intending to be
legally bound, the Company and Dr. Mollica agree as follows:

 

1.                                       Employment.

 

a.             The
Company agrees to employ Dr. Mollica as its Interim President and Chief
Executive Officer upon the terms and conditions set forth in this Agreement.

 

b.             The
Company and Dr. Mollica acknowledge and agree that Dr. Mollica’s service
under this Agreement is intended to be temporary and to terminate upon the
Company’s hiring of a successor to Dr. Browne as its President and Chief
Executive Officer.  Unless earlier
terminated in accordance with Section 3 below, the term of this Agreement
(“Term”) shall run from the date first stated above until three (3) months
following the date on which the successor President and Chief Executive Officer
to be hired by the Company commences his or her employment in such
position.  Dr. Mollica shall resign
as Chairman of the Board as of the date on which the successor President and
Chief Executive Officer commences his or her employment in such position but
may, at his option, continue to serve as a Class II director following
such resignation for the remainder of his current Class II director
term.    Upon the conclusion of the Term,
Dr. Mollica shall relinquish his office at the Company.  The Company will continue to provide Dr. Mollica
secretarial services for six (6) months following the conclusion of the
Term at the level provided during his service as Chairman of the Board.  For 

 

 

the avoidance of doubt, such secretarial services will
include forwarding mail, e-mail and phone messages for Dr. Mollica that
are received at the Company.

 

c.             Dr. Mollica’s
duties, powers and responsibilities as Interim President and Chief Executive
Officer shall be those which are customary for such position, as may be
determined from time to time by the Board of Directors of the Company (the “Board”).  Dr. Mollica agrees to perform and
discharge such duties well and faithfully and to be subject to the supervision
and direction of the Board.

 

d.             The
position of Interim President and Chief Executive Officer is a full-time
position.  Dr. Mollica agrees to
devote substantially his full time effort, attention, and energies to this
position, provided that nothing in this Agreement shall prohibit or otherwise
limit Dr. Mollica’s right, ability and obligation to act on behalf of the
Company in his capacity as Chairman of the Board.  During the Term of this Agreement, as defined
above, Dr. Mollica will not render any professional services or engage in
any activity which might be competitive with, adverse to the best interest of,
or create the appearance of a conflict of interest with the Company.  Prior to serving on any other board of
directors, Dr. Mollica shall obtain the written permission of the Board,
which shall not be unreasonably withheld. 
As of the effective date of this Agreement, the Company has consented to
Dr. Mollica’s serving on the boards of directors of the companies listed
on Schedule A attached hereto.  Dr. Mollica
agrees to abide by the policies, and rules and regulations of the Company
as they may be amended from time to time.

 

2.                                       Compensation.

 

a.             During
the Term, Dr. Mollica shall be paid an annual salary of Four Hundred Five
Thousand Dollars ($405,000) (“Base Salary”) for his service (i) as both Interim President and Chief Executive Officer and
Chairman of the Board prior to the date on which the successor President and
Chief Executive Officer commences his or her employment in such position and (ii) assisting
with, at the Company’s option, up to full time effort in a transition period
during the three (3) months following such commencement of employment by
the successor President and Chief Executive Officer.  The Base Salary will be paid in monthly
installments of Thirty-Three Thousand Seven Hundred Fifty Dollars ($33,750),
less normally applicable payroll deductions and withholdings, in accordance with
the Company’s usual payroll cycle for executives.  Following the conclusion of the Term, Dr. Mollica’s
compensation shall revert to an annualized amount of One Hundred Thousand
Dollars  ($100,000), the level of
compensation that he had been receiving as Chairman of the Board.  This compensation will be paid in monthly
installments of $8,333.33, or on a pro-rata basis for partial months, through April 30,
2009, at which time the Company shall have no further obligation to pay Dr. Mollica
such compensation.

 

b.             For
calendar year 2008, Dr. Mollica shall be eligible to participate in the
Company’s Bonus Program for Senior Management, which shall provide Dr. Mollica
with an annual bonus target of nine-twelfths (9/12) of fifty percent (50%) of Dr. Mollica’s
Base Salary, as determined in accordance with the Company’s existing
compensation policy.  The amounts payable
to Dr. Mollica under the Bonus Program shall be referred to herein as the “Incentive

 

 

Bonus.”  Dr. Mollica’s
entitlement to any Incentive Bonus shall be determined based on the Company’s
actual performance versus the approved corporate goals and objectives for
2008.  Dr. Mollica shall be
permitted to propose revisions to the 2008 corporate goals and objectives for
consideration by the Compensation Committee of the Company and the Company’s
Board of Directors prior to the end of May, 2008.  Any Incentive Bonus to which Dr. Mollica
is entitled will be paid on March 1 following the completion of the
calendar year to which such Incentive Bonus corresponds.  Should Dr. Mollica’s employment under
this Agreement end prior to December 31, 2008, he shall remain eligible
for the Incentive Bonus so long as Dr. Mollica has assisted in the
successful identification and retention of a new, successor President and Chief
Executive Officer and assisted in a successful transition period, as determined
by the Compensation Committee of the Board in its sole discretion.  Should this Agreement extend into calendar
year 2009, the parties shall meet to negotiate an appropriate bonus arrangement
for that year.

 

c.             In
recognition of his agreement to serve as Interim President and Chief Executive
Officer under this Agreement, Dr. Mollica shall be granted fifty-five
thousand (55,000) restricted stock units pursuant to and in accordance with the
Company’s Amended and Restated 2004 Equity Compensation Plan (the “2004 Plan”)
and the terms of a restricted stock unit grant letter.  The grant of these units shall be in lieu of
and shall replace the grant of stock options to which Dr. Mollica would
have been entitled for 2008 in his capacity as Chairman of the Board.

 

d.             In recognition of Dr. Mollica’s
agreement to serve as Interim President and Chief Executive Officer under this
Agreement, the Board shall amend the terms of all agreements outstanding as of
the effective date hereof between the Company and Dr. Mollica that govern
options to purchase shares of Company common stock.  Such amendments shall provide that unless Dr. Mollica
is terminated for Cause (as defined below) or he voluntarily terminates his
employment hereunder, Dr. Mollica shall be permitted to exercise the
options that vest under such agreements for the full remainder of the
respective terms of such options, irrespective of Dr. Mollica’s status
with respect to the Company at the time of proposed exercise, subject to the
terms of  the Company’s respective equity
compensation plans governing such options.

 

e.             Dr. Mollica
will be reimbursed in accordance with the Company’s policy and procedure for
reasonable costs of properly documented business related expenses required in
the course of his employment.

 

f.              Except
as expressly provided in this Agreement, Dr. Mollica shall not be entitled
to any other compensation or benefits, including but not limited to any fringe
benefits, coverage under any insurance programs, or participation in any
benefit plans, from the Company under this Agreement.

 

3.                                       Termination. 
The Term and Dr. Mollica’s employment as Interim President and
Chief Executive Officer may be terminated at any time during the Term by Dr. Mollica
or the Board of Directors of the Company for any reason on ninety (90) days’
notice.  In
the event of 

 

 

termination of his employment, or in the event of his
death, the Company shall have no liability to Dr. Mollica in his capacity
as Interim President and Chief Executive Officer for compensation or benefits
except for Base Salary earned prior to the date of termination, any Incentive
Bonus earned under Section 2.b., and any restricted stock units that
vested prior to termination as provided in Section 2.c.   In addition, the Term and Dr. Mollica’s
employment may be terminated by the Company for “Cause” at any time upon
delivery of written notice to Dr. Mollica. 
For purposes of this Agreement, “Cause” means the occurrence of any
of the following events: (i) any gross failure on the part of Dr. Mollica
(other than by reason of Disability (as defined in the 2004 Plan)) to
faithfully and professionally carry out his duties or to comply with any other
material provision of this Agreement, which failure continues after written
notice thereof by the Board, provided that the Board shall not be required to
provide such notice in the event that such failure (A) is not susceptible
to remedy or (B) relates to the same type of acts or omissions as to which
such notice has been given on a prior occasion; (ii) Dr. Mollica’s
material dishonesty (which shall include without limitation any misuse or
misappropriation of the Company’s assets), or other willful misconduct which is
intended to injure or which injures or is likely to injure the business of
the Company; (iii) Dr. Mollica’s conviction for any felony or for any
other crime involving moral turpitude, whether or not relating to his
employment; (iv) Dr. Mollica’s insobriety or use of drugs, chemicals
or controlled substances either (A) in the course of performing his duties
and responsibilities under this Agreement, or (B) otherwise affecting the
ability of Dr. Mollica to perform the same; (v) Dr. Mollica’s
failure to comply with a lawful, written direction of the Board, which is
consistent with Dr. Mollica’s duties and responsibilities as Interim
President and Chief Executive Officer with the Company; or (vi) any wanton
and willful dereliction of duties by Dr. Mollica.  The existence of any of the foregoing events
or conditions shall be determined by the Board in the exercise of its
reasonable judgment.  In the event of a
termination for Cause,  the Company shall
have no liability to Dr. Mollica for compensation or benefits under this
Agreement except for payment of Base Salary or compensation earned prior to the
date of such termination, and any restricted stock units that vested prior to
termination as provided in Section 2.c. 
Dr. Mollica shall not be entitled to receive a pro-rata Incentive
Bonus for the calendar year in which the termination occurs.

 

4.             Termination
Without Cause in Connection with Change of Control.  In the event that the Term and Dr. Mollica’s
employment as Interim President and Chief Executive Officer is terminated
involuntarily by the Board without Cause in connection with a Change of Control
of the Company: (i) the Company shall pay Dr. Mollica in a lump sum
two (2) times an amount equal to his annual Base Salary then in effect as
of the date of termination, within thirty (30) days after the date of his
termination of employment; (ii) all stock options granted to Dr. Mollica
that are then unvested shall immediately vest; (iii) Dr. Mollica
shall receive a lump sum payment equal to two times the target Incentive Bonus;
and (iv) the Company shall pay Dr. Mollica all other
compensation accrued, but unpaid, up to the date of his termination.

 

For purposes of this Agreement, a “Change of
Control” means that any of the following events has occurred:

 

 

(1)           Any
person (as such term is used in section 13(d) of the Securities Exchange
Act of 1934 (the “Exchange Act”)), other than the Company, any employee
benefit plan of the Company or any entity organized, appointed or established
by the Company for or pursuant to the terms of any such plan, together with all
“affiliates” and “associates” (as such terms are defined in Rule 12b-2
under the Exchange Act) becomes the beneficial owner or owners (as defined in Rule 13d-3
and 13d-5 promulgated under the Exchange Act), directly or indirectly (the “Control
Group”), of more than 50% of the outstanding equity securities of the
Company, or otherwise becomes entitled, directly or indirectly, to vote more
than 50% of the voting power entitled to be cast at elections for directors (“Voting
Power”) of the Company;

 

(2)           A
consolidation or merger (in one transaction or a series of related
transactions) of the Company pursuant to which the holders of the Company’s
equity securities immediately prior to such transaction or series of related
transactions would not be the holders, directly or indirectly, immediately
after such transaction or series of related transactions of more than 50% of
the Voting Power of the entity surviving such transaction or series of related
transactions; or

 

(3)           The sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all or substantially all of
the assets of the Company.

 

If any of the benefits or
payments under this Agreement, or under any other agreement with or plan of the
Company (in the aggregate, the “Total Payments”), will be subject to the
tax (the “Excise Tax”) imposed by Section 4999 of the Code, the
Company shall pay Dr. Mollica in cash an additional amount (the “Gross-Up
Payment”) such that the net amount retained by Dr. Mollica after
deduction of any excise Tax upon the Total Payments and any federal, state and
local income tax and Excise Tax upon the Gross-Up Payment provided for by this Section shall
be equal to the Total Payments.  Such
payments shall be made by the Company to Dr. Mollica within thirty (30)
days following a determination that any of the Total Payments will be subject
to the Excise Tax, but in no event later than the date on which the related
taxes are remitted to the taxing authority.

 

All determinations
required to be made under this Section, including whether any of the Total
Payments will be subject to the Excise Tax and the amounts of such Excise Tax,
shall be made by a nationally recognized accounting firm (the “Accounting
Firm”) mutually acceptable to the parties. 
The Accounting Firm shall provide detailed supporting calculations both
to the Company and to Dr. Mollica within 10 days after a request for such
determinations are made by Dr. Mollica or the Company.  Any such determination by the Accounting Firm
shall be binding upon the Company and Dr. Mollica.  For purposes of determining the amount of the
Gross-Up Payment, Dr. Mollica shall be deemed to pay federal, state and
local income taxes at the highest marginal rates applicable to Dr. Mollica
as of the date of the determination.

 

5.                                       To the extent that Dr. Mollica is a “specified
employee” within the meaning of the Section 409A of the Internal Revenue
Code of 1986, as amended, as of the date of Dr. Mollica’s separation from
service, no amount that constitutes a deferral of compensation shall be paid to

 

 

Dr. Mollica before the date (the “Delayed
Payment Date”) which is first day of the seventh month after the date of Dr. Mollica’s
separation from service or, if earlier, the date of Dr. Mollica’s death
following such separation from service. 
All such amounts that would, but for this Section 5, become payable
prior to the Delayed Payment Date will be accumulated and paid on the Delayed
Payment Date.

 

6.                                       Confidential Information. 
Except as reasonably necessary to perform his duties as Interim
President and Chief Executive Officer or Chairman of the Board, Dr. Mollica
agrees not to reveal to any other person or entity or use for his own benefit
any confidential information of or about the Company or its operations, both
during and after his employment under this Agreement, including without
limitation marketing plans, financial information, key personnel, employees’
salaries and benefits, customer lists, pricing and cost structures, operation
methods and any other information not available to the public, without the
Company’s prior written consent.

 

7.                                       Arbitration. 
Any and all disputes between the parties (except actions to enforce the
provisions of Section 6 of this Agreement) arising under or relating to
this Agreement or any other dispute between the parties, including claims
arising under any employment discrimination laws, shall be adjudicated and
resolved exclusively through binding arbitration before the American
Arbitration Association pursuant to the American Arbitration Association’s
then-in-effect National Rules for the Resolution of Employment Disputes
(hereafter “Rules”).  The
initiation and conduct of any arbitration hereunder shall be in accordance with
the Rules and each side shall bear its own costs and counsel fees in such
arbitration, except to the extent that applicable law provides for
fee-shifting.  Any arbitration hereunder
shall be conducted in Princeton, New Jersey, and any arbitration award shall be
final and binding on the parties.  The
arbitrator shall have no authority to depart from, modify, or add to the
written terms of this Agreement.  The
arbitration provisions of this Section shall be interpreted according to,
and governed by, the Federal Arbitration Act, 9 U.S.C. § 1 et seq., and
any action pursuant to such Act to enforce any rights hereunder shall be
brought exclusively in the United States District Court for the District of New
Jersey.  The parties consent to the
jurisdiction of (and the laying of venue in) such court.

 

8.                                       Waiver.  The waiver by
either party of any breach of any provision of this Agreement shall not operate
or be construed as a waiver of any subsequent breach by the other party of any
provision of the Agreement.

 

9.                                       Severability. 
In the event that any section, paragraph or term of this Agreement shall
be determined to be invalid or unenforceable by any competent authority or
tribunal for any reason, the remainder of this Agreement shall be unaffected
thereby and shall remain in full force and effect, and any such section,
paragraph, or term shall be deemed modified to the extent to make it
enforceable.

 

10.                                 Successors and Assigns. 
This Agreement shall bind and inure to the benefit of the successors and
assigns of the Company, and the heirs, executors or personal representatives of
Dr. Mollica.  This Agreement may not
be assigned by Dr. Mollica.  This
Agreement may be 

 

 

assigned to any successor in interest to the Company
and Dr. Mollica hereby consents to such assignment.

 

11.                                 Entire Agreement; Amendments. 
This Agreement, including the recitals (which are a part hereof),
together with the applicable bylaws and policies of the Company and the
Indemnity Agreement dated April 21, 2004 between the Company and Dr. Mollica,
constitutes the entire Agreement between the parties hereto with respect to Dr. Mollica’s
provision of services for, to or on behalf of the Company during the Term, and
there are no other understandings, agreements or representations, expressed or
implied.  This Agreement may be amended
only in writing signed by both parties.

 

12.                                 Governing Law. 
This Agreement shall be governed by and construed in accordance with the
substantive laws of the State of New Jersey.

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first set forth above.

 

	
  PHARMACOPEIA,
  INC.:

  
	
   

  
	
  By:

  	
  /s/ Carol A.
  Ammon

  	
   

  	
  /s/ Joseph A.
  Mollica

  	
   

  
	
   

  	
  Carol A. Ammon

  	
   

  	
  Joseph A.
  Mollica, Ph.D.

  
	
   

  	
  Chair,
  Compensation Committee

  	
   

  	
   

  
	
   

  	
  of the Board of
  Directors

  	
   

  	
   

  

 

 

SCHEDULE
A

TO
INTERIM EMPLOYMENT AGREEMENT

 

Celator Pharmaceuticals
(Chairman of the Board)

 

Cytogen Corp.

 

Neurocrine BioSciences, Inc.
(Chairman of the Board)

 

Redpoint Bio Corporation
(Chairman of the Board)EXHIBIT
10.30

 

PURCHASE AGREEMENT

 

THIS PURCHASE AGREEMENT (“Agreement”), dated as of the
14th day of March, 2008, by and between Jacobs
Lot D, Inc. (“Seller), an Ohio corporation and Jacobs Nautica Development, Inc. (“Purchaser”),
a Delaware corporation, and provides as follows:

 

RECITALS

 

A.       Seller is the
owner of fee simple title to approximately 52,480 s.f. of real property, with minor improvements and all
personal property situated thereon, if any, on the west bank of what is
commonly known as “The Flats” in Cleveland, Ohio which is more particularly
described in Exhibit “A” attached hereto and incorporated herein
(collectively, the “Property”).

 

B.         Seller and
Jacobs Entertainment, Inc. (“JEI”) are parties to that certain Option
Agreement dated July 11, 2006 “) (the “Option Agreement”) which grants to
JEI the right to lease the Property pursuant to the terms of that certain lease
agreement attached  as an exhibit to the
Option Agreement (the “Lease).

 

C.         The Option
Agreement also granted to JEI the option to purchase the Property in the Lease.

 

D.        By
Assignment dated effective March 12, 2008, JEI assigned its rights under
the Option Agreement to Purchaser.

 

E.          By written
notice dated effective March 12, 2008, Purchaser has notified Seller of
its intention to exercise the lease option described in the Option Agreement
and immediately upon execution of the Lease, to exercise the option to purchase
such Property as provided in Section 32 of the Lease.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of their mutual
promises hereinafter set forth and other good and valuable consideration, the
receipt and sufficiency of which are hereby mutually acknowledged, the parties
hereto covenant and agree as follows:

 

1.             CONTRACT FOR PURCHASE AND SALE.  This
Agreement shall constitute a binding contract, on the terms and conditions
herein set forth, for the purchase and sale of the Property.

 

2.             PURCHASE PRICE.  The
purchase price (the “Purchase Price”) for the Property shall be
$900,000.00.  The Purchase Price shall be
payable in immediately useable funds at Closing (as such term is defined in Paragraph
3) minus the Option Payment Credit. 
At Closing, Purchaser shall receive credit against the Purchaser Price
for the two option payments of $50,000 each previously paid to Seller pursuant
to the Option Agreement (the “Option Payment Credits”).

 

3.             CLOSING.

 

a.          The Closing of the purchase and sale of the Property shall be conducted
at Provident Title Agency, Inc., 26301 Curtiss Wright Parkway, Suite 210,
Richmond Heights, Ohio  44143 (the “Title
Company”) or at such other place as the parties may agree upon in writing.

 

b.         The Closing shall take place no later that thirty (30) days after
Purchaser has notified Seller of its intention to purchase the Property.

 

c.          At Closing, the Purchaser shall pay to the Seller the Purchase Price
(minus the Option Payment Credit) and contemporaneously the Seller shall
deliver to Purchaser:

 

(i)             the
Deed (as defined in Paragraph 4);

 

1

 

(ii)          an
affidavit for the benefit of Purchaser and the Title Company, satisfactory to
both (the “Affidavit”), stating, inter alia that: (aa) no right to a mechanic’s
or materialmen’s lien has accrued with respect to the Property as a result of
any act or omission by the Seller and (bb) there are no outstanding leases or
agreements with regard to, or other parties in or entitled to possession of,
the Property;

 

(iii)       a
Certificate of Non-Foreign Status as required by Section 1445 of the
Internal Revenue Code of 1986 and any other certificates required by any
governmental authority or agency;

 

(iv)      evidence
of registration with the State of Ohio Department of Taxation or such other
evidence of registration and good standing as may be acceptable to the Title
Company;

 

(v)         Assignment
and Assumption of Contracts;

 

(vi)      Assignment
of Tenant Leases and Deposits;

 

(vii)   Bill of
Sale; and

 

(viii) possession
of the Property.

 

d.         Seller shall pay the costs of preparing the Deed and the Transfer Tax
thereon.  Purchaser shall pay all costs
and expenses incurred in connection with its examination of title to the
Property and the Survey and all premiums charged by the Title Company for the
Title Policy (including endorsements and extended coverage).

 

e.          Real estate taxes and utilities, including “rollback” taxes, if any,
shall be prorated between the Seller and the Purchaser as of Closing, according
to the number of days of the year which the Property is owned or to be owned by
each party.

 

f.            Each party shall pay its own legal,
accounting and other expenses incurred in connection with this Agreement or
Closing hereunder. Other closing costs shall be split 50-50% between the
parties.

 

g.         The parties acknowledge that if the Seller (as Landlord) becomes
eligible for Ground Rent under Paragraph 2(A)(ii) of the Lease
provided for in the Option Agreement, such Ground Rent shall be paid by the
Purchaser as provided in Paragraph 2(A)(ii) of such Lease.

 

4.             DEED; TITLE; SURVEY.

 

a.        At Closing, Seller shall deliver to Purchaser a general warranty deed
(the “Deed”) conveying to Purchaser a good and marketable, fee simple title to
the Property, free and clear of all liens, encumbrances, conditions and
restrictions except: (i) the lien for real estate taxes not yet due and
payable; (ii) standard utility easements of record, (iii) zoning
ordinances and (iv) any liens, encumbrances, conditions, restrictions or
other objections to title which do not, in Purchaser’s reasonable opinion,
adversely effect Purchaser’s use of the Property.

 

b.       Title Commitment; Title Policy.  The parties acknowledge that
the Title Company has issued in favor of Purchaser that certain Commitment For
Title Insurance No. 08-0057 dated with an Effective Date of February 18,
2008 for the issuance of an ALTA Owners Policy of Title Insurance-2006 Form (the
“Title Commitment”).  At Closing or as
soon as reasonably practicable after Closing, Seller shall cause the Title
Company to issue to Purchaser an ALTA Owners Policy of Title Insurance -2006
Form, in accordance with the Title Commitment (the “Title Policy”).

 

c.        Survey.  The  parties also acknowledge that
Purchaser has caused the preparation of an updated survey of the Property
prepared by MNeff Design Group, 5422 East 96th Street, Suite 120,
Cleveland, Ohio 44125 (the “Survey”).  Purchaser shall bear the sole cost
and expense of the preparation of such Survey.

 

5.             RISK OF LOSS.  The
risk of loss or damage to the Property by fire or other casualty prior to
Closing shall be on the Seller, except as otherwise provided in the Lease.  If such loss or damage materially and
adversely affects the Purchaser’s intended use and enjoyment of the Property as
of Closing, the Purchaser shall be entitled to terminate this Agreement and the
parties hereto shall have no further obligations or liabilities to one another
hereunder.

 

2

 

6.             DEFAULT BY SELLER.  The
parties agree that, in the event of a default by Seller under this Agreement,
Purchaser shall be entitled to enforce this Agreement by specific performance.

 

7.             REPRESENTATIONS AND WARRANTIES OF SELLER. 
Seller represents and warrants to Purchaser the following:

 

a.       Seller has and will have at Closing title
to the Property sufficient to convey to Purchaser the Property as set forth in
this Agreement.

 

b.      To Seller’s knowledge, there are no
claims, liens, mortgages, security interests, encumbrances, covenants,
conditions, restrictions, rights-of-way, easements, judgments or other matters
affecting title to the Property, other than as disclosed on the Title Commitment.

 

c.       This Agreement has been duly authorized
and executed by Seller and is a valid and binding obligation of, and is
enforceable, in accordance with its terms, against Seller.

 

d.      The documents delivered to Purchaser at
Closing will be duly authorized and executed by Seller and will be a valid and
binding obligation of, and will be enforceable in accordance with their terms,
against Seller.

 

e.       No party or entity has a right of first
refusal for the purchase of the Property or any portion thereof which has not
been irrevocably waived in accordance with the terms of Seller’s governing
documents and applicable Ohio law.  The
persons executing this Agreement on behalf of Seller are authorized to do so in
accordance with the terms of the governing documents of Seller.

 

f.         To Seller’s knowledge, there is no
pending or threatened condemnation or similar proceeding affecting the Property
or any portion thereof, or pending public improvements, liens, or special
assessments, in, about or outside the Property which will in any manner affect
the Property or access to the Property, nor any legal action of any kind or
character whatsoever affecting the Property which will in any manner affect
Purchaser upon the consummation of the Closing.

 

g.      There is no legal action of any kind or
character whatsoever affecting Seller which will in any manner affect Seller’s
ability to perform under this Agreement.

 

h.      Seller has not received notice from any
governmental authority that the Property is not in compliance with any law,
ordinance, regulation, statute, rule or restriction.

 

i.          The performance of this Agreement by
Seller will not result in any breach of, or constitute any default under, or
result in imposition of, any lien or encumbrance upon the Property under any
agreement or other instrument to which Seller is a party or by which Seller or
the Property might be bound.

 

j.          Seller will maintain the physical
condition of the Property in the same or better condition as it presently
exists to the date of Closing.

 

k.       There are no other contracts or tenant
leases affecting the Property, other than those disclosed on the “Assignment of
Contracts” and the “Assignment of Tenant Leases and Deposits”.

 

l.          No action has been taken with respect to
work performed or delivery of material which would give rise to a lien on the
Property. At Closing, there will be no claim (or right to a claim) in favor of
any person or entity which is or could become a lien on the Property, arising
out of the furnishing of labor or materials at Seller’s request and there will
be no unpaid assessments against the Property, except for property taxes
assessed but not due and payable at the time of Closing.

 

m.    All due and owing: (i) ad valorem
taxes and personal property taxes, and (ii) all assessments or other
charges for utilities, roads or the widening of such roads, or any other fees
imposed by any governmental authority with respect to the Property, have been
paid in full.

 

n.      To Seller’s knowledge, Seller has not
received notice (written or oral) from any governmental jurisdiction or
authority that the Property is in violation of any environmental laws.

 

3

 

o.      The representations, warranties and
covenants of the Seller contained in this Agreement or in any document
delivered to Purchaser pursuant to the terms of this Agreement shall be true
and correct in all material respects and not in default at the time of Closing,
just as though they were made at such time, and shall expressly survive the
Closing.

 

8.             AGENTS AND BROKERS.  Each
party hereunder represents and warrants that it did not consult or deal with
any broker or agent, real estate or otherwise, with regard to this Agreement or
the transactions contemplated hereby, and each party hereto agrees to indemnify
and hold harmless the other party from all liability, expense, loss, cost or
damage, including reasonable attorneys’ fees, that may arise by reason of any
claim, demand or suit of any agent or broker arising out of facts constituting
a breach of the foregoing representations and warranties.

 

9.             BINDING AGREEMENT.  This
Agreement shall bind and inure to the benefit of the parties hereto and their
respective successors and assigns.

 

10.           NOTICES.  Any notice, request or demand
required or permitted to be given pursuant to this Agreement shall be conform
to the Notice provision outlined in the Lease.

 

11.           INTERPRETATION.  When
the context in which words are used in this Agreement indicates that such is
the intent, words in the singular number shall include the plural, and vice
versa, and words in the masculine gender shall include the feminine and neuter
genders, and vice versa.

 

12.           TITLE AND HEADINGS; REFERENCES. Titles and headings to paragraphs and
subparagraphs herein are inserted for the convenience or reference only, and
are not intended to be a part of or to affect the meaning or interpretation of
this Agreement. All paragraph and subparagraph references in this Agreement are
to the paragraphs or subparagraphs of this Agreement unless expressly stated to
the contrary.

 

13.           ENTIRE AGREEMENT, MODIFICATION.  This
Agreement, together with the Lease and Option Agreement, contains the entire
agreement between the parties hereto relating to the Property and supersedes
all prior and contemporaneous negotiations, understandings and agreements,
written or oral, between the parties hereto. 
This Agreement shall not be amended or modified and no waiver of any
provision hereof shall be effective unless set forth in a written instrument
executed with the same formality as this Agreement.

 

14.           ASSIGNMENT.  This Agreement may be assigned
by the Purchaser to an entity in which it owns a controlling interest or to an
entity acquiring all or substantially all of the assets of the Purchaser.

 

15.           CHOICE OF LAWS.  This
Agreement shall be governed by and construed under the laws of the State of
Ohio without regard to conflict of laws provisions.

 

16.           FURTHER ACTS.  Prior to and
after Closing, each party hereto
agrees to perform any and all such further and additional acts and execute and
deliver any and all such further and additional instruments and documents as
may be reasonably necessary in order to carry out the provisions and effectuate
the intent of this Agreement.  This
provision shall survive the Closing.

 

4

 

IN WITNESS WHEREOF, each of the parties hereto has
caused this Agreement to be executed in its name pursuant to due authority as
of the dates set forth below.

 

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  JACOBS
  LOT D INC.,

  
	
   

  	
  an
  Ohio corporation

  

 

 

	
   

  	
  By:

  	
  /s/ David C. Grunenwald

  
	
   

  	
  Printed Name:

  	
  David C. Grunenwald

  
	
   

  	
  Title: 

  	
  Vice President of
  Development/Leasing

  
					

 

 

	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  JACOBS
  NAUTICA DEVELOPMENT, INC.,

  
	
   

  	
  a
  Delaware corporation

  

 

 

	
   

  	
  By:

  	
  /s/ Stanley Politano

  
	
   

  	
  Printed Name:

  	
  Stanley Politano

  
	
   

  	
  Title: 

  	
  Vice President

  
					

 

5

 

EXHIBIT “A”

 

LEGAL DESCRIPTION OF THE PROPERTY

 

Situated in the City of Cleveland, County of
Cuyahoga, and State of Ohio and known as being Block “W” (sublots 525 through
548 inclusive) in the Buffalo Company Allotment of part of Original Brooklyn
Township Lots 51 and 70 as shown by the recorded plat in Volume 3, Page 51
of Cuyahoga County Map Records, and bounded and described as follows:

 

Beginning at a point in the centerline of
Winslow Avenue, 66 feet wide, at its intersection with the centerline of Center
Street, 66 feet wide, from which point a stone monument found bears North 70
degrees 28 minutes 54 seconds West, 0.19 feet; North 19 degrees 22 minutes
59 seconds East, 0.13 feet;

 

Thence North 19 degrees 22 minutes 59 seconds
East along the centerline of Winslow Avenue, 33.00 feet to a point;

 

Thence South 70 degrees 28 minutes 54 seconds
East, 33.00 feet to a drill hole and “V” set in the easterly line of Winslow
Avenue at its intersection with the northerly line of Center Street, and the
principal place of beginning of the parcel herein described;

 

Thence North 19 degrees 22 minutes 59 seconds
East along the easterly line of Winslow Avenue, 228.44 feet to a drill hole and
“V” set at its intersection with the southerly line of Elm Street, 66 feet
wide;

 

Thence South 70 degrees 38 minutes 38 seconds
East along the southerly line of Elm Street, 229.295 feet to an iron pin set at
its intersection with the westerly line of Washington Avenue, 66 feet
wide;

 

Thence South 19 degrees 22 minutes 54 seconds
West along the westerly line of Washington Avenue, 229.09 feet to a drill hole
and “V” set at its intersection with the northerly line of Center Street;

 

Thence North 70 degrees 28 minutes 54 seconds
West along the northerly line of Center Street, 229.30 feet to the principal
place of beginning.

 

The courses used in the description are given
to an assumed meridian and are used to indicate angles only.

 

Permanent
Parcel No. 003-18-005

 

6

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