Document:

ex1021.htm - Generated by SEC Publisher for SEC Filing

Exhibit 10.21

 

Memorandum of intent (the "Memorandum of Intent") dated August 25, 2010 between PhytoMedical Technologies, Inc., a Nevada corporation (the "Prospective Purchaser"), and Standard Gold Corp., a Nevada corporation (the "Company"). The Prospective Purchaser and the Company are sometimes herein collectively referred to as the "Parties" and individually as a "Party."

This Memorandum of Intent is intended to summarize the principal terms of a proposal being considered by the Prospective Purchaser and the Company pursuant to which the Prospective Purchaser will acquire all of the outstanding Shares (as defined below) of the Company (the "Prospective Acquisition") .

This Memorandum of Intent reflects only the status of the discussions to date between the Prospective Purchaser and the Company. The obligations of the Parties hereto to consummate the Prospective Acquisition are subject to the negotiation and execution of the Definitive Agreement as defined below, among other things. Accordingly, this Memorandum of Intent is intended solely as a basis for further discussion and is not intended to be and does not constitute a legally binding agreement; provided, however, that the provisions set forth in Sections 6, 7, 8, 9,11,12, 13 and 14 below and this paragraph shall be binding upon the Parties. This Memorandum of Intent shall not confer on any person or entity, other than the Parties hereto, any rights or remedies, and shall be superseded in its entirety upon execution of the Definitive Agreement by the terms and conditions of such Definitive Agreement as referred to in this Memorandum of Intent.

Based upon the information currently known to the Prospective Purchaser and the Company, it is proposed that the Definitive Agreement provide for the following terms:

1.                    Purchase of Stock.

At the closing (the "Closing"), subject to the satisfaction of all conditions precedent contained in the Definitive Agreement, the Prospective Purchaser will acquire all of the issued and outstanding capital stock of the Company, on a fully diluted basis, free and clear of any liens, charges, restrictions or encumbrances thereon (collectively, the "Shares") through, but not necessarily limited to, either a merger between the Prospective Purchaser or one of its subsidiaries and the Company or through a share exchange transaction between the Prospective Purchaser and each of the shareholders of the Company (collectively, the "Acquisition Format"); the Acquisition Format, to the extent possible, shall be structured to ensure that the Prospective Acquisition qualifies as a tax-free reorganization.

2.                     Purchase Consideration.

The purchase price for the Shares will consist of 607,539,940 shares of the Prospective Purchaser's common stock (the "Purchase Consideration"). It is understood and agreed that pending the Closing the Prospective Purchaser will seek, through the direct registered offering of additional equity securities, a maximum aggregate amount of $2,000,000 (the "Financing"). The terms of the Financing entail the issuance of up to 200,000,000 units, each consisting of (i) 

 

 

 

shares of common stock of the Prospective Purchaser at a purchase price of $0.01 per Unit and (ii) warrants to purchase the Prospective Purchaser's common stock at an exercise price of $0.03 or such other terms and conditions as the Prospective Purchaser may determine.

3.                    Definitive Agreement.

The Prospective Purchaser and the Company hereby agree to use reasonable diligence to commence good faith negotiations in order to execute and deliver a definitive stock purchase or Acquisition Format agreement relating to the Prospective Acquisition (the "Definitive Agreement"). All terms and conditions concerning the Prospective Acquisition shall be stated in the Definitive Agreement (or agreements to be entered into pursuant to the Definitive Agreement), including without limitation, representations, warranties, covenants, lock-up/leak- out, holdback provisions and indemnities that are usual and customary in a transaction of this nature as such may be mutually agreed upon between the Parties.

4.                    Representations and Warranties.

The Definitive Agreement will contain, in addition to such terms and conditions as the Parties thereto may agree to, such representations and warranties as are customary to transactions of this type, including without limitation, representations and warranties by each of the Company and the Prospective Purchaser as to (a) the accuracy and completeness of its audited financial statements for the period from inception to June 30, 2010 and current interim financial statements; (b) disclosure of all its material contracts, commitments and liabilities, direct or contingent; (c) the physical condition, suitability, ownership and absence of liens, claims and other adverse interests with respect to its assets; (d) the absence of liabilities, other than as set forth in its current balance sheet, and liabilities incurred in the ordinary course of business since that date; (e) the absence of a material adverse change in its condition (financial or otherwise), business, properties, or assets; (f) the absence of pending or threatened litigation, claims] investigations or other matters affecting the Prospective Acquisition; (g) its compliance with laws and regulations applicable to its business and obtaining all licenses and permits required for its business; and (h) its due incorporation, organization, valid existence, good standing and capitalization. For purposes hereof, the term "material" as it relates to the Company's or the Prospective Purchaser's contracts in clause (b) above, refers to (i) any contract requiring the Company or the Prospective Purchaser, as the case may be, to expend over the course of a twelve month period in excess of $100,000, (ii) any contract that cannot be terminated on less than 10 days notice without the Company or the Prospective Purchaser, as the case may be, incurring penalties or liabilities thereunder in excess of $25,000, or (iii) any contract with an affiliate of the Company or the Prospective Purchaser, as the case may be.

5.                     Conditions to Consummation of the Prospective Acquisition.

(a) The obligation of the Prospective Purchaser with respect to the Prospective Acquisition shall be subject to satisfaction of conditions customary to transactions of this type, including without limitation, (i) receipt and approval by the Prospective Purchaser of the Company's audited financial statements for the period from inception through June 30, 2010 (collectively, the "Financial Statements"); (ii) execution of the Definitive Agreement 'by all 

 

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Parties; (iii) the obtaining of all requisite regulatory, administrative, governmental or third party authorizations and consents; (iv) absence of a material adverse change in the condition (financial or otherwise), business, properties, assets or prospects of the Company; (v) absence of pending or threatened litigation, claims, investigations or other matters affecting the Company or the Prospective Acquisition; (vi) satisfactory completion by the Prospective Purchaser of a due diligence investigation of the Company; (vii) confirmation that the representations and warranties of the Company are true and accurate in all respects; (viii) requisite approval of the Board of Directors of the Company and of the Prospective Purchaser, the approval of the shareholders of the Company to consummate the Proposed Transaction; (ix) the consummation of the Financing; (x) appropriate representation and certification, as may be required by the Prospective Purchaser, by each the shareholders of the Company to the effect that such shareholder is an "accredited investor" as such term is defined in Regulation D as promulgated under Securities Act of 1933, as amended; and (xi) to the extent deemed necessary by the Prospective Purchaser, the exercise or conversion of any warrants, options, rights, convertible securities, or any other derivative securities, if any, of the Company convertible into or exercisable for shares of the Company's common stock, into shares of the Company's common stock. The foregoing is not intended to be a complete list of the conditions to completing the Prospective Acquisition, which the Parties hereto may negotiate and incorporate into the Definitive Agreement.

(b) The obligation of the Company with respect to the Prospective Acquisition shall be subject to satisfaction of conditions customary to transactions of this type, including without limitation, (i) execution of the Definitive Agreement by all Parties; (ii) the Prospective Purchaser obtaining all requisite regulatory, administrative, governmental or third party authorizations and consents; (iii) absence of a material adverse change in the condition (financial or otherwise), business, properties, assets or prospects of the Prospective Purchaser; (iv) absence of pending or threatened litigation, claims, investigations or other matters affecting the Prospective Purchaser or the Prospective Acquisition; (v) satisfactory completion by the Company of a due diligence investigation of the Prospective Purchaser; (vi) confirmation that the representations and warranties of the Prospective Purchaser are true and accurate in all respects; (vii) requisite approval of the Board of Directors of the Company and the Prospective Purchaser, the approval of the shareholders of the Company to consummate the Prospective Acquisition; and (viii) the consummation of the Financing. The foregoing is not intended to be a complete list of the conditions to completing the Prospective Acquisition which the Parties hereto may negotiate and incorporate into the Definitive Agreement.

6. Access to Company.

The Company will give the Prospective Purchaser, its legal, accounting and scientific advisors full access to any personnel and all properties, documents, contracts, books, records and operations of the Company relating to its business. The Company will furnish the Prospective Purchaser with copies of documents and with such other information as the Prospective Purchaser may reasonably request.

7. No Other Offers. 

 

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The Company acknowledges that the Prospective Purchaser will incur significant expense in connection with its due diligence review and preparation and negotiation of the Definitive Agreement. As a result, upon execution of this Memorandum of Intent, the Company shall terminate any existing discussions or negotiations with, and shall cease to provide information to or otherwise cooperate with, any party other than the Prospective Purchaser and its representatives with respect to any Prospective Acquisition Transaction (as defined below). In addition, from and after the date hereof until the Termination Date, none of the Company nor any of its shareholders, subsidiaries or affiliates, or any of their respective officers, directors, employees, members, managers, representatives or agents, will directly or indirectly encourage, solicit, initiate, have or continue any discussions or negotiations with or participate in any discussions or negotiations with or provide any information to or otherwise cooperate in any other way with, or enter into any agreement, memorandum of intent or agreement in principle with, or facilitate or encourage any effort or attempt by any corporation, partnership, company, person or other entity or group (other than the Prospective Purchaser and its shareholders, subsidiaries or affiliates, or any of their respective officers, directors, employees, members, managers, representatives or agents) concerning any Acquisition Format, joint venture, recapitalization, reorganization, sale of substantial assets, sale of any shares of capital stock, investment or similar transaction involving the Company or any subsidiary or division of the Company (each, a "Prospective Acquisition Transaction"). The Company shall notify the Prospective Purchaser promptly of any inquiries, proposals or offers made by third parties to the Company or any of its shareholders, subsidiaries or affiliates, or any of their respective officers, directors, employees, members, managers, representatives or agents with respect to a Prospective Acquisition Transaction and furnish the Prospective Purchaser the terms thereof (including, without limitation, the type of consideration offered and the identity of the third party). The Company shall deal exclusively with the Prospective Purchaser with respect to any possible Prospective Acquisition Transaction and the Prospective Purchaser shall have the right to match the terms of any proposed transactions in lieu of such third parties.

8.                    Conduct of Business.

Each of the Company and the Prospective Purchaser shall use its best efforts to preserve intact its business organization and employees and other business relationships; shall continue to operate in the ordinary course of business and maintain its books, records and accounts in accordance with Generally Accepted Accounting Principles and consistent with past practice; shall use its reasonable best efforts to maintain, except as contemplated by Sections 2 and 5 of this Memorandum of Intent, its current financial condition, including working capital levels; shall not incur any indebtedness except as required to pay ongoing operating expenses, expenses related to this Memorandum of Intent, the Bridge Loan (as defined below), the Prospective Acquisition or in the ordinary course of such Party's business; shall not declare or make any dividend or stock distributions; and shall not make any payments to employees outside the ordinary course of business and consistent with past practices.

9.                     Expenses.

Each of the Parties shall pay its respective expenses incident to this Memorandum of Intent, the Definitive Agreement and consummation of the transactions contemplated hereby and 

 

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thereby.

10.             Brokerage, Finders and Other Fees.

The Definitive Agreement shall provide, that neither the Prospective Purchaser nor the Company has incurred or is otherwise liable for any the brokerage or finder's fee payable in connection with the Prospective Acquisition.

11.                 Confidentiality.

(a)              "Confidential Information," as used herein, shall mean all information and material (whether written or oral) disclosed by one Party hereto (the "Disclosing Party") or its directors, officers, employees, independent contractors, affiliates, representatives (including, without limitation, financial advisors, attorneys and accountants) or agents or potential sources of financing (collectively, "Representatives") to the other Party hereto (the "Receiving Party") or its Representatives, which concern the business of the Disclosing Party and which is proprietary to Disclosing Party, and is marked or otherwise identified as "Confidential," "Proprietary," "Sensitive" or in another manner indicating its confidential and/or proprietary nature, or by the nature of the circumstances surrounding the disclosure or receipt of the information or material should be treated as Confidential Information. The term Confidential Information includes all such information or material which Receiving Party may obtain knowledge of through or as a result of the relationship established hereunder with Disclosing Party, access to Disclosing Party's premises or communications with Disclosing Party's Representatives. The term Confidential Information also includes all notes, analyses, extracts, compilations, studies, interpretations or other materials prepared by Receiving Party to the extent they contain or reflect Disclosing Party's Confidential Information.

(b)              Confidential Information shall not include information or material that (i) is now or later becomes generally known to the public (other than as result of a breach of this Memorandum of Intent); (ii) is independently developed by Receiving Party without use of or access to Disclosing Party's Confidential Information; (iii) Receiving Party lawfully obtains from any third party who has lawfully obtained such information; (iv) is later published or generally disclosed to the public by Disclosing Party; (v) at the time of its disclosure to Receiving Party, (A) is already known to Receiving Party and, to the best knowledge of Receiving Party, is not subject to any confidentiality obligations and the disclosure thereof to Receiving Party has not breached any confidentiality obligations, or (B) is available on a non­confidential basis to Receiving Party; (vi) is approved for release by prior written authorization of Disclosing Party; or (vii) is required to be disclosed pursuant to any applicable statute, law, rule or regulation of any governmental authority or pursuant to any order of any court of competent jurisdiction, provided that Receiving Party shall advise Disclosing Party of the request for disclosure in sufficient time to apply for such legal protection as may be available with respect to the confidentiality of the Confidential Information. Receiving Party shall bear the burden of showing that any of the foregoing exclusions applies to any information or materials.

(c)              Receiving Party shall use all Confidential Information solely for the limited purpose(s) of assessing the merits of its proceeding with the Prospective Acquisition (the "Purpose") and shall hold in confidence and not disclose such Confidential Information in any manner to, or permit the use thereof by any person or persons other than Receiving Party's 

 

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Representatives who have a legitimate need to know or to have access to such Confidential Information and who are first informed by Receiving Party of the confidential nature of the Confidential Information and agree to maintain the confidentiality of such Confidential Information. Receiving Party will cause its Representatives to observe the terms of this Memorandum of Intent, and will be responsible for any breach of this Memorandum of Intent by any of its Representatives. Receiving Party covenants that it will use such degree of care as is reasonable and necessary to protect and safeguard the confidentiality of Disclosing Party's Confidential Information and represents that such degree of care is reasonably designed to protect the confidentiality of proprietary and confidential information. Except as otherwise expressly permitted under this Memorandum of Intent, Receiving Party shall not use or disclose to others, or permit the use or disclosure of, any Confidential Information of Disclosing Party, and shall not take advantage of any corporate opportunity of Disclosing Party disclosed to Receiving Party under this Memorandum of Intent. Receiving Party agrees to advise Disclosing Party promptly in writing upon the occurrence of any unauthorized disclosure, misappropriation or misuse of any Confidential Information or other breach of this Memorandum of Intent of which Receiving Party may become aware and that any such breach does not relieve Receiving Party of any of its obligations hereunder. Except to the extent required by law, no Party hereto shall disclose the existence or subject matter of the discussions or business relationship contemplated by this Memorandum of Intent, the existence of this Memorandum of Intent or the identity of the Parties hereto.

(d)              Receiving Party shall not copy (except as reasonably required for the Purpose), alter, modify, disassemble, reverse engineer or decompile any Confidential Information without the prior written consent of Disclosing Party.

(e)                If either Party determines not to proceed with the Prospective Acquisition, then such Party will promptly inform the other Party of that decision and, in that case, or at any time upon the request of Disclosing Party or any of its Representatives, Receiving Party will, at the election of Disclosing Party, either (i) promptly destroy all copies of the written Confidential Information in its or its Representatives' possession and confirm such destruction to Disclosing Party in writing, or (ii) promptly deliver to Disclosing Party at its own expense all Confidential Information, together with any copies thereof that may have been made) in its or its Representatives' possession. In addition, in the event of such a decision or request, all other Confidential Information prepared by Receiving Party shall be destroyed and no copy thereof shall be retained except that Receiving Party shall not be required to destroy or return any electronic copies of Confidential Information created pursuant to its standard electronic archival and back-up procedures (it being agreed that any such electronic copies shall remain subject to the confidentiality and other obligations set forth in this Memorandum of Intent). Notwithstanding the return or destruction of the Confidential Information, Receiving Party and its Representatives will continue to be bound by their obligations of confidentiality and other obligations hereunder, and all such obligations shall expressly survive the return or destruction of the Confidential Information. Any oral Confidential Information will continue to be subject to the terms of this Memorandum of Intent.

(f)               The Parties acknowledge that neither Disclosing Party, nor its 

 

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Representatives, nor any of its or their respective officers, directors, employees, agents or controlling person within the meaning of Section 20 of the Securities Exchange Act of 1934, as amended, makes any express or implied representation or warranty as to the accuracy' or completeness of the Confidential Information, and the Parties agree that no such person will have any liability relating to the Confidential Information or for any errors therein or omissions therefrom. The Parties further agree that Receiving Party is not entitled to rely on the accuracy or completeness of the Confidential Information and that Receiving Party will be entitled to rely solely on such representations and warranties as may be included in a Definitive Agreement signed by the Parties with respect to the Prospective Acquisition, subject to such limitations and restrictions as may be contained therein.

(g)              Receiving Party understands and acknowledges that Disclosing Party claims that such Confidential Information has been developed or obtained by Disclosing Party through the investment of significant time, effort and expense, and that such Confidential Information provides Disclosing Party with a significant competitive advantage in its business. Receiving Party acknowledges and agrees that due to the unique nature of Disclosing Party's Confidential Information there may be no adequate remedy at law for any unauthorized disclosure or use by Receiving Party of any Confidential Information, or any other breach by Receiving Party hereunder, that any such breach may result in irreparable injury to Disclosing Party and that, therefore, upon any such breach or threat thereof, Disclosing Party shall be entitled to seek equitable relief, including injunction and specific performance, as a remedy for any such breach. Such remedies shall not be deemed to be the exclusive remedies for a breach by Receiving Party of this Memorandum of Intent but shall be in addition to all other remedies available at law or equity to Disclosing Party.

(h)              The Parties are aware, and will advise their respective Representatives who are informed of the matters that are the subject of this Memorandum of Intent, of the restrictions imposed by the United States securities laws on the purchase or sale of securities by any person who has received material, non-public information from the issuer of such securities and on the communication of such information to any other person when it is reasonably foreseeable that such other person is likely to purchase or sell such securities in reliance upon such information.

12.                  Disclosure. Neither the Prospective Purchaser nor the Company shall without the prior written consent of the other, cause its directors, officers, shareholders, employees, agents, other representatives and affiliates not to, disclose to any third party the fact that discussions or negotiations are taking place concerning the transactions contemplated hereby, the status thereof, or the existence of this Memorandum of Intent and the terms thereof, as well as all non-public communications, information, records and documents disclosed in connection herewith, unless required in connection with the Financing, or if in the opinion of such Party disclosure is required to be made by applicable law, regulation or court order, and such disclosure is made after prior consultation with the other Party.

13.                 Termination.

Subject to the terms of this Memorandum of Intent, upon the earlier of (a) the mutual written agreement of the Parties hereto or (b) the failure by the Parties hereto to consummate the 

 

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Prospective Acquisition by December 31, 2010 (the "Termination Date"), this Memorandum of Intent shall terminate and the Parties shall be released from all liabilities and obligations with respect to the subject matter hereof. Notwithstanding the foregoing, Sections 9, 11,13, and 14 shall survive the termination or expiration of this Memorandum of Intent.

14.                Dispute Resolution.

In the event of any dispute arising out of or relating to this Memorandum of Intent such dispute shall be resolved exclusively by confidential binding arbitration with the New York City, New York branch of JAMS to be governed by JAMS' commercial rules of arbitration in effect at the time of the commencement of arbitration and heard before one arbitrator. Each Party shall bear its own attorneys' fees, expert witness fees, and costs incurred in connection with any arbitration,

15.             Name Branding.

The Definitive Agreement will provide for the Prospective Purchaser to establish a post Closing 18 month budget allocating $1,000,000 for the continuation of the Prospective Purchaser's name branding program and will be escrowed at closing for such purpose.

16.              Bridge Loan. Upon execution and delivery of this Memorandum of Intent by the Parties hereto, and subject to the negotiation, execution and delivery of a loan agreement (the "Bridge Loan Agreement") the Prospective Purchaser will lend the Company $30,000 (the "Bridge Loan") for the purpose to maintain in good standing the Company's mineral claims pending completion of the preliminary discussions between the Parties regarding the Prospective Acquisition. The Bridge Loan Agreement shall provide for the execution and delivery of a promissory note by the Company to reflect the Bridge Loan and shall contain such provisions as are mutually agreed to by the Parties.

17.             Lock Up.

The Definitive Agreement shall contain a provision or a condition precedent to the consummation of the transactions contemplated thereby that a lock-up agreement, restricting the resale of the Purchase Consideration for a period of one year following the Closing (the "Lock­up Period"); and, the Definitive Agreement (or the "Lock-Up Agreement", as the case may be) shall also provide that the Prospective Purchaser shall not file any registration statement during the term of the Lock-up Period with respect to the resale of the Purchase Consideration.

18.                 Counterparts.

This Memorandum of Intent may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

19.             Construction. 

 

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Each Party agrees that it and/or its counsel has reviewed and had an opportunity to review this Memorandum of Intent and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting Party shall not be employed in the interpretation of the Memorandum of Intent or any amendments hereto.

20.             Notices.

Any notice or other communication required or permitted hereunder shall be in writing and, unless delivery instructions are otherwise expressly set forth above herein, either delivered personally (effective upon delivery), by facsimile transmission (effective on the next day after transmission), by recognized overnight delivery service (effective on the next day after delivery to the service), or by registered or certified mail, postage prepaid and return receipt requested (effective on the third Business Day after the date of mailing), at the following addresses or facsimile transmission numbers (or at such other address(es) or facsimile transmission number(s) for a Party as shall be specified by like notice) (effective day of transmission)

If to the Borrower, at:

Standard Gold Corp.

c/o Strategic American Oil Corporation

600 Leopard Street, Suite 2015

Corpus Christi, Texas 78401

Attention: President

Facsimile: (604) 677-5935

If to the Prospective Purchaser, at:

PhytoMedical Technologies, Inc.

100 Overlook Drive, 2nd Floor

Princeton, New Jersey, 08540

Attention: President and Chief Executive Officer

Facsimile: (248) 671-0315

Or, to such other persons or at such other addresses as shall be furnished by any party by like notice to the others, and such notice or communication shall be deemed to have been given or made as of the date so delivered or mailed. No change in any of such addresses shall be effective insofar as notices under this Section 20 are concerned unless such changed address shall have been given to such other party hereto as provided in this Section 20. For purposes hereof, the term "Business Day" means any day other than a Saturday, Sunday or any day on which banks in the State of New York are authorized or required by federal law to be closed in New York, New York.

21.                 Governing Law. 

 

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This Memorandum of Intent shall be governed by the laws of the State of New York, without regard to such state's principles of conflicts of laws.

[SIGANTURES FOLLOW ON THE NEXT PAGE] 

 

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IN WITNESS WHEREOF, the Parties hereto have duly executed and delivered this Memorandum of Intent as of the date first above written.

PhytoMedical Technologies, Inc.

/s/ Amit S. Dang

By:      Amit S. Dang

Title:   Chief Executive Officer and President

/s/ Joshua Bleak

By:      Joshua Bleak

Title:   President

 

 

11ex1022.htm - Generated by SEC Publisher for SEC Filing

Exhibit 10.22

 

BRIDGE LOAN AGREEMENT dated as of August 25, 2010 by and between Standard Gold Corp., a Nevada corporation ("Borrower"), and PhytoMedical Technologies, Inc ("PYTO").

WITNESSETH:

WHEREAS, Borrower and PYTO have entered into a non-binding Memorandum of Intent dated August 25, 2010 ("MOI") pursuant to which the parties hereto are exploring the possible acquisition by PYTO of all of the issued and outstanding shares of common stock, on a fully diluted basis, of the Borrower;

WHEREAS, in accordance with the terms of the MOI, PYTO has agreed to loan to Borrower the principal amount of thirty thousand ($30,000) dollars in order to permit Borrower to maintain in good standing its permits and licenses pertaining to its mineral claims pending completion of preliminary discussions between the parties hereto; and

WHEREAS, PYTO is willing to make such loan to Borrower on the terms and subject to the conditions hereinafter set forth.

NOW, THEREFORE, the parties hereto, in consideration of their mutual covenants hereinafter set forth and intending to be legally bound hereby, agree as follows:

ARTICLE I 

DEFINITIONS

1.01.            Certain Definitions. In addition to other words and terms defined elsewhere in this Agreement, as used herein the following words and terms shall have the following meanings, respectively:

"Agreement" shall mean this Bridge Loan Agreement as the same may be amended, modified or supplemented from time to time.

"Closing" shall mean the execution and delivery of the Loan Documents by Borrower and PYTO.

"Closing Date" shall mean the date of the Closing.

"Event of Default" shall mean any of the events of default described in Section 6.01.

"Loan" shall mean the $30,000 loan to be made by PYTO to Borrower pursuant to this Agreement.

"Loan Documents" shall mean, collectively, this Agreement, the Promissory Note, and any and all other documents delivered by or on behalf of Borrower in connection with the Loan, as the 

 

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same may be amended, modified or supplemented from time to time.

"Note" or "Promissory Note" shall mean Borrower's $30,000 promissory note to PYTO dated the date hereof and attached hereto as Exhibit A, as said Note may be extended, renewed refinanced, refunded, amended, modified or supplemented from time to time and any replacement or successor note.                                                                                       

"Official Body" shall mean any government or political subdivision or any agency authority bureau, department or instrumentality of either, or any court, tribunal, grand jury or arbitrator in each case whether foreign or domestic.

 

"Potential Default" shall mean any condition, event, act or omission which, with the giving of notice or passage of time or both, would constitute an Event of Default.

1.02            Construction of Agreement. Unless the context of this Agreement otherwise clearly requires, references to the plural include the singular and vice versa. References in this Agreement to judgments" of PYTO include good faith estimates by PYTO (in the case of quantitative judgments) and good faith beliefs by PYTO (in the case of qualitative judgments). The words "hereof," "herein," "hereunder," and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement. The section and other headings contained in this Agreement are for reference purposes only and shall not control or affect the construction of this Agreement or the interpretation hereof in any respect. Section and subsection references are to this Agreement unless otherwise specified.

ARTICLE II 

THE LOAN

2.01.         Agreement to Lend; Use of Proceeds. Subject to the terms and conditions hereof and relying upon the representations and warranties herein set forth, PYTO agrees to make a $30,000 loan to Borrower, such funds to be disbursed to Borrower on even date herewith. The proceeds of the Loan will be used to maintain in good standing permits and licenses pertaining to its mineral claims pending completion of preliminary discussions between the parties hereto.

 

2.02.         Note. The obligation of Borrower to repay the principle of the Loan shall be evidenced by the Note.

 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants to PYTO that:

3.03.           Authority and Authorization. Borrower has the power and authority to execute and deliver this Agreement, to make the borrowing provided for herein, to execute and deliver

 

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the Note in evidence of such borrowing, to execute and deliver the other Loan Documents to which Borrower is a party and to perform its obligations hereunder and under the Note and the other Loan Documents, and all such action has been duly and validly authorized.

3.2.                         Execution and Binding Effect. This Agreement, the Note and the other Loan Documents to which Borrower is a party have been duly and validly executed and delivered by Borrower and constitute legal, valid and binding obligations of Borrower, enforceable in accordance with the terms hereof and thereof, subject to the effect of bankruptcy, insolvency, reorganization, arrangement, moratorium, or other similar laws relating to or affecting the rights of creditors generally.

3.3.                         Authorizations and Filings. No authorization, consent, approval, license, exemption or other action by, and no registration, qualification, designation, declaration or filing with, any Official Body is or will be necessary or advisable in connection with the execution and delivery of this Agreement, the Note or the other Loan Documents, consummation of the transactions herein or therein contemplated or performance of or compliance with the terms and conditions hereof or thereof.

3.4.                         Absence of Conflicts. Neither the execution and delivery of this Agreement, the Note or the other Loan Documents nor consummation of the transactions herein or therein contemplated nor performance of or compliance with the terms and conditions hereof or thereof will (a) violate any law, (b) conflict with or result in a breach of or a default under any agreement or instrument to which Borrower is a party or by which either of them or any of their properties (now owned or hereafter acquired) may be subject or bound or (c) result in the creation or imposition of any lien, charge, security interest or encumbrance upon any property (now owned or hereafter acquired) of Borrower.

3.5.                           Financial Condition. Borrower has not applied for or consented to the appointment of a receiver, trustee or liquidator of itself or any of its property, admitted in writing its inability to pay its debts as they mature, made a general assignment for the benefit of creditors, been adjudicated a bankrupt or insolvent or filed a voluntary petition in bankruptcy, or a petition or an answer seeking reorganization or an arrangement with creditors or to take advantage of any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or liquidation law or statute, or an answer admitting the material allegations of a petition filed against it in any proceeding under any such law, and no action has been taken by Borrower for the purpose of effecting any of the foregoing. No order, judgment or decree has been entered by any court of competent jurisdiction approving a petition seeking reorganization of Borrower or all or a substantial part of the assets of Borrower, or appointing a receiver, sequestrator, trustee or liquidator of it or any of its property.                               

3.6.                         Defaults. No Event of Default and no Potential Default has occurred and is continuing or exists.

3.7.                         Litigation. There is no pending or (to Borrower's knowledge) threatened proceeding by or before any Official Body against or affecting Borrower which if adversely decided would have a material adverse effect on the business, operations or condition, financial or otherwise, of 

 

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Borrower or on the ability of Borrower to perform its obligations under the Loan Documents.

3.08. Power to Carry On Business. Borrower has all requisite power and authority to own and operate its properties and to carry on its business as now conducted and as presently planned to be conducted.

ARTICLE IV

CONDITIONS OF LENDING

The obligation of PYTO to consummate the Closing and to make the Loan is subject to the satisfaction of the following conditions:

4.1.                        Representations and Warranties. The representations and warranties contained in Article III hereof and in the other Loan Documents shall be true on and as of the Closing Date. No Event of Default and no Potential Default shall have occurred and be continuing or shall exist or shall occur and exist after the consummation of the Closing.

4.2.                        Miscellaneous. Borrower shall have furnished to PYTO such other instruments, documents and opinions as PYTO shall reasonably require to evidence and secure the Loan and to comply with this Agreement, the Promissory Note and the requirements of regulatory authorities to which PYTO is subject.

4.3.                        Details, Proceedings and Documents. All legal details and proceedings in connection with the transactions contemplated by this Agreement shall be satisfactory to PYTO and PYTO shall have received all such counterpart originals or certified or other copies of such documents and proceedings in connection with such transactions, in form and substance satisfactory to PYTO, as PYTO may from time to time request.

ARTICLE V

AFFIRMATIVE COVENANTS

Borrower covenants to PYTO as follows:

5.01. Notices. Promptly upon becoming aware thereof, Borrower shall give PYTO notice of:

(a)                     any Event of Default or Potential Default, together with a written statement setting forth the details thereof, and the action being taken by Borrower to remedy the same; or

(b)                     the commencement, existence or threat of any proceeding by or before any Official Body against or affecting Borrower which, if adversely decided, would have a material adverse effect on the business, operations or condition, financial or otherwise, of Borrower or on its ability to perform its obligations under the Loan Documents. 

 

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            Books and Records. Borrower shall maintain and keep proper records and books of account in which full, true and correct entries shall be made of all its dealings and business affairs.

5.3.                         Other Obligations. Borrower shall maintain all obligations of Borrower in whatsoever manner incurred, including but not limited to obligations for borrowed money or for services or goods purchased by Borrower, in a current status.

ARTICLE VI 

DEFAULTS

6.1.                         Events of Default An Event of Default shall mean the occurrence or existence of one or more of the events or conditions (whatever the reason for such Event of Default and whether voluntary, involuntary or effected by operation of law) described below which continues and persists for thirty (30) days beyond the required date of notice of such Event of Default specified in Section 5.01:

(a)                     failure to pay the loan principal of $30,000, or accrued and unpaid interest thereon, in accordance with the terms of the Promissory Note; or

(b)                     the commencement, existence or threat of any proceeding by or before any Official Body against or affecting Borrower which, if adversely decided, would have a material adverse effect on the business, operations or condition, financial or otherwise, of Borrower or on its ability to perform its obligations under the Loan Documents.

6.2.                         Consequences of an Event of Default.

(a) If an Event of Default specified in Section 6.01 shall occur and continue after the expiration of applicable notice and grace periods, if any, set forth therein, PYTO may, by notice to Borrower, declare the unpaid principal amount of the Note and all other amounts owing by Borrower hereunder or under the Note or the other Loan Documents to be immediately due and payable without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived, and an action therefor shall immediately accrue.

ARTICLE VII 

MISCELLANEOUS

7.01.           Further Assurances. From time to time upon the request of PYTO, Borrower shall promptly and duly execute, acknowledge and deliver any and all such further instruments and documents as PYTO may reasonably deem necessary or desirable to confirm this Agreement and the Note, to carry out the purpose and intent hereof and thereof or to enable PYTO to enforce any of its rights hereunder or thereunder. 

 

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7.02.                        Amendments and Waivers. PYTO and Borrower may from time to time enter into agreements amending, modifying or supplementing this Agreement or the Note or any other Loan Document or changing the rights of PYTO or of Borrower hereunder or thereunder, and PYTO may from time to time grant waivers or consents to a departure from the due performance of the obligations of Borrower hereunder or thereunder. Any such agreement, waiver or consent must be in writing and shall be effective only to the extent specifically set forth in such writing. In the case of any such waiver or consent relating to any provision hereof any Event of Default or Potential Default so waived or consented to shall be deemed to be cured and not continuing, but no such waiver or consent shall extend to any other or subsequent Event of Default or Potential Default or impair any right consequent thereto.

7.03.                        No Implied Waiver; Cumulative Remedies. No course of dealing and no delay or failure of PYTO in exercising any right, power or privilege under any of the Loan Documents shall affect any other exercise thereof or exercise of any other right, power or privilege. The rights and remedies of PYTO under this Agreement are cumulative and not exclusive of any rights or remedies which PYTO would otherwise have under the other Loan Documents, at law or in equity.

7.04.                        Notices. Any notice or other communication required or permitted hereunder shall be in writing and, unless delivery instructions are otherwise expressly set forth above herein, either delivered personally (effective upon delivery), by facsimile transmission (effective on the next day after transmission), by recognized overnight delivery service (effective on the next day after delivery to the service), or by registered or certified mail, postage prepaid and return receipt requested (effective on the third Business Day after the date of mailing), at the following addresses or facsimile transmission numbers (or at such other address(es) or facsimile transmission number(s) for a Party as shall be specified by like notice, effective day of transmission):

If to the Borrower, at:

Standard Gold Corp.

c/o Strategic American Oil Corporation

600 Leopard Street, Suite 2015

Corpus Christi, Texas 78401

Attention: President

Facsimile: (604) 677-5935

If to PYTO, at:

PhytoMedical Technologies, Inc. 

100 Overlook Drive, 2nd Floor 

Princeton, New Jersey, 08540 

Attention: President and Chief Executive Officer 

Facsimile: (248) 671-0315

or to such other persons or at such other addresses as shall be furnished by any party by 

 

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like notice to the others. No change in any of such addresses shall be effective insofar as notices under this Section 7.04 are concerned unless such changed address shall have been given to such other party hereto as provided in this Section 7.04.  For purposes hereof, the term "Business Day" means any day other than a Saturday, Sunday or any day on which banks in the State of New York are authorized or required by federal law to be closed in New York, New York.

7.05.                         No Third Party Rights. Except as contemplated by Section 7.08 hereof, nothing in this Agreement, whether express or implied, shall be construed to give to any person other than the parties hereto any legal or equitable right, remedy or claim under or in respect of this Agreement, which is intended for the sole and exclusive benefit of the parties hereto.

7.06.                         Severability. The provisions of this Agreement are intended to be severable If any provision of this Agreement shall be held invalid or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without in any manner affecting the validity or enforceability thereof in any other jurisdiction or the remaining provisions hereof in any jurisdiction.

7.07.                        Number and Gender. For purposes of this Agreement, the singular shall be deemed to include the plural and the neuter shall be deemed to include the masculine and feminine, and vice versa, as the context may require.

7.08.                         Heirs, Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of PYTO, Borrower and their respective heirs, successors and assigns, except that Borrower may not assign or transfer any of its rights hereunder without the prior written consent of PYTO. Except to the extent otherwise required by the context of this Agreement the term "PYTO" where used in this Agreement shall mean and include any holder of the Note originally issued to PYTO hereunder, and the holder of such Note shall be bound by and have the benefits of this Agreement the same as if such holder had been a signatory hereto.

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

7.10.           Governing Law. This Agreement shall be governed by and interpreted and enforced in accordance with the laws of the State of New York without giving effect to the choice of law provisions thereof. The parties to this Agreement, acting for themselves and for their respective successors and assigns, without regard to domicile, citizenship or residence, hereby expressly and irrevocably elect as the sole judicial forum for the adjudication of any matters arising under or in connection with this Agreement, and consent and subject themselves to the jurisdiction of the courts of the State of New York located in County of New York, and/or the United States District Court for the Southern District of New York, in respect of any matter arising under this 

 

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Agreement. Service of process, notices and demands of such courts maybe made upon any party to this Agreement by personal service at any place where it may be found or giving notice to such party as provided in Section 7.04.

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

Standard Gold Corp.

By: /s/ Joshua Bleak

Name: Joshua Bleak

Title: President

PhytoMedical Technologies, Inc.

By: /s/Amit S. Dang

Name: Amit S. Dang

Title: President and Chief Executive Officer 

 

 

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EXHIBIT A 

PROMISSORY NOTE

$30,000

August 25, 2010

FOR VALUE RECEIVED, the undersigned Standard Gold Corp., a Nevada corporation having its principal place of business at 600 Leopard Street, Suite 2015 Corpus Christi, Texas 78401 ("Maker"), hereby promises to pay to the order of PHYTOMEDICAL TECHNOLOGIES, INC. a Nevada corporation having its principal place of business at 100 Overlook Drive, 2nd Floor Princeton, New Jersey, 08540 ("Payee"), in lawful money of the United States of America , the principal sum of Thirty Thousand Dollars ($30,000), together with interest thereon, payable as set forth below.

The entire principal balance will be payable in full on December 31, 2010 (the "Maturity Date"). Interest on this Note shall compound quarterly and shall accrue at the annual rate of eight and one-half percent (81⁄2 %) as computed on the basis of a 365-day year. Interest will begin to accrue as of the date hereof and is payable on the Maturity Date, accelerated or otherwise, when the principal and remaining accrued but unpaid interest shall be due and payable. Following the occurrence and during the continuance of an Event of Default, which, if susceptible to cure is not cured within the cure periods (if any) set forth in Section 6.01 of the Bridge Loan Agreement, otherwise then from the first date of such occurrence until cured, the annual interest rate on this Note shall be fifteen percent (15%), and be due on demand.

This Note may be prepaid at any time, in whole or in part, without interest, penalty or premium of any kind.

If any payment of principal or interest on this Note shall become due on a day which is a Saturday, Sunday or holiday, such payment shall be made on the next succeeding business day.

Maker hereby waives presentment for payment, demand, notice of nonpayment or dishonor, protest and notice of protest.

No delay or omission on the part of Payee or any holder hereof in exercising its rights under this Note, or course of conduct relating thereto, shall operate as a waiver of such rights or any other right of Payee or any holder hereof, nor shall any waiver by Payee or any holder hereof of any such right or rights on any one occasion be deemed a bar to, or waiver of, the same right or rights on any future occasion.

Maker shall pay Payee on demand any reasonable out-of-pocket expenses (including reasonable legal fees) arising out of or in connection with any action or proceeding (including any action or proceeding arising in or related to any insolvency, bankruptcy or reorganization involving or affecting Maker) taken to protect, enforce, collect, determine or assert any right or remedy under this Note. 

 

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This Note shall bind Maker and the heirs and assigns of Maker, and the benefits hereof shall inure to the benefit of Payee and the heirs and assigns of Payee. All references herein to "Maker" shall be deemed to apply to Maker and its heirs and assigns, and all references herein to "Payee" shall be deemed to apply to Payee and its heirs and assigns.

This Note shall be governed by and construed in accordance with the laws of the State of New York, including, but not limited to, New York statutes of limitations. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the civil or state courts of New York or in the federal courts located in the State and county of New York. Both parties and the individual signing this Agreement on behalf of the Maker agree to submit to the jurisdiction of such courts. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event that any provision of this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or unenforceability of any other provision of this Note. Nothing contained herein shall be deemed or operate to preclude the Payee from bringing suit or taking other legal action against the Maker in any other jurisdiction to collect on the Maker's obligations to Payee, or to enforce a judgment or other decision in favor of the Payee.

IN WITNESS WHEREOF, Maker, intending to be legally bound, has executed this Note as of the date and year first above written with the intention that this Note shall constitute a sealed instrument.

By: /s/ Joshua Bleak

Name: Joshua Bleak

Title: President

Witness:

/s/Roy W. Fuller

Name: Roy W. Fuller

Title: General Counsel 

 

 

 

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