Document:

EXHIBIT 10.1

 

MINDSPEED TECHNOLOGIES, INC.

DIRECTORS STOCK PLAN

AWARD AGREEMENT

RESTRICTED STOCK UNIT TERMS AND
CONDITIONS

 

1.                                       Definitions

 

                                                            Capitalized terms used herein
but not otherwise defined shall have the meanings assigned to such terms in the
Plan (as defined below). As used in these Restricted Stock Unit Terms and
Conditions (these “Restricted Stock Unit Terms and Conditions”), the following
words and phrases shall have the respective meanings ascribed to them below
unless the context in which any of them is used clearly indicates a contrary
meaning:

 

(a)                                  Award Agreement:  These Restricted Stock Unit Terms and
Conditions, together with the Grant Letter.

 

(b)                                 Grant Letter:  The letter from Mindspeed granting the
Restricted Stock Units to you.

 

(c)                                  Mindspeed:  Mindspeed Technologies, Inc., a Delaware
corporation.

 

(d)                                 Plan:  Mindspeed’s Directors Stock Plan, as such
Plan may be amended and in effect at the relevant time.

 

2.                                       Earning
of Restricted Stock Units

 

You shall be deemed to have earned the Restricted
Stock Units subject to this Award Agreement on the earliest of:

 

(a)                                  ten
(10) days after:

 

(i)                                     you
retire from the Board after attaining age fifty-five (55) and completing at
least five (5) years of service as a director; or

 

(ii)                                  you
resign from the Board or cease to be a director by reason of the antitrust
laws, compliance with Mindspeed’s conflict of interest policies, death,
disability or other circumstances, and the Board has not determined (prior to
the expiration of such ten (10) day period) that such resignation or
cessation of service as a director is adverse to the best interests of
Mindspeed; or

 

(b)                                 the
occurrence of a Change of Control; provided, however, that if the event
constituting a Change of Control is not also a “change in the ownership or
effective control” of Mindspeed, or a “change in the ownership of a substantial
portion of the assets” of Mindspeed, as those terms are defined under Code Section 409A,
then you shall be deemed to have earned the Restricted Stock Units upon your “separation
from service” within the meaning under Code Section 409A coincident with
or subsequent to such Change of Control.

 

 

3.                                       Book-Entry
Accounts or Retention of Certificates for Restricted Stock Units and Dividends

 

To facilitate implementation of the provisions of this
Award Agreement, the Restricted Stock Units and any dividends or distributions
thereon or in respect thereof (“Dividends”), whether in cash or otherwise
(including but not limited to additional Restricted Stock Units, other
securities of Mindspeed or securities of another entity shall be held in
book-entry accounts subject to the direction of Mindspeed or, if Mindspeed
elects, certificates therefor may be issued in your name but delivered to
and held by Mindspeed, until you shall have earned the Restricted Stock Units
in accordance with the provisions of Section 2.

 

4.                                       Rights
as a Shareholder

 

You will not have the rights of a shareholder until
such time as the Shares underlying the Restricted Stock Units are settled by
issuance of such Shares to you. However, you will receive dividends in respect
of the Shares underlying the Restricted Stock Units, which will be paid if and
when such dividends are normally paid to Mindspeed shareholders. Upon receipt
of the Shares underlying the Restricted Stock Units, you will have the right to
vote the Shares.

 

5.                                       Settlement
of Earned Restricted Stock Units

 

As promptly as practicable after you shall have been
deemed to have earned the Restricted Stock Units in accordance with Section 2,
Mindspeed shall deliver to you (or in the event of your death, to your estate
or any person who acquires your interest in the Restricted Stock Units by
bequest or inheritance) the Shares underlying the Restricted Stock Units,
together with any dividends then held in book entry accounts of by Mindspeed. One
(1) Share shall be issuable for each Restricted Stock Unit awarded. The
Restricted Stock Units may be earned in whole, but shall not be settled
for a fraction of a Share.

 

The settlement of the Restricted Stock Units for
Shares as described above shall be delayed in the event Mindspeed reasonably
determines that the issuance of the Shares would constitute a violation of
federal securities laws or other applicable law. If the settlement of the
Restricted Stock Units is delayed by the provisions of this Section, the
settlement of the Restricted Stock Units shall occur at the earliest date at
which Mindspeed reasonably determines that such issuance will not cause a
violation of federal securities laws or other applicable law.

 

Mindspeed shall delay the settlement of Restricted
Stock Units for Shares and payment of dividends to the extent necessary to
comply with Section 409A(a)(2)(B)(i) of the Code (relating to
payments made to certain “key employees” of certain publicly-traded companies);
in such event, any Shares and dividends to which you would otherwise be
entitled during the six (6) month period following the date of your “separation
from service” under Section 409A will be issued on the first business day
following the expiration of such six (6) month period.

 

6.                                       Forfeiture
of Unearned Restricted Stock Units and Dividends

 

Notwithstanding any other provision of this Award
Agreement, if your service as a director terminates for any reason other than
as set forth in Section 2, all unearned Restricted Stock Units, together
with any Dividends thereon, shall be forfeited, and
you shall have no further rights of any kind or nature with respect thereto. Upon
any such forfeiture, the unearned Restricted Stock Units theretofore issued,
together with any Dividends thereon, shall be cancelled.

 

7.                                       Transferability

 

The Restricted Stock Units are not transferable.

 

 

8.                                       Applicable
Law

 

This Award Agreement and Mindspeed’s obligation to
deliver Restricted Stock Units and any Dividends hereunder shall be governed by
the State of Delaware and the Federal laws of the United States.

 

9.                                       Headings

 

The section headings contained in these
Restricted Stock Units Terms and Conditions are solely for the purpose of
reference, are not part of the agreement of the parties and shall in no
way affect the meaning or interpretation of this Award Agreement.

 

10.                                 Entire
Agreement

 

This Award Agreement and the Plan embody the entire
agreement and understanding between Mindspeed and you with respect to the Restricted
Stock Units, and there are no representations, promises, covenants, agreements
or understandings with respect to the Restricted Stock Units other than those
expressly set forth in this Award Agreement and the Plan.EXHIBIT 10.2

 

[MINDSPEED LETTERHEAD]

 

(Date)

 

 

(Name)

(Address)

 

Re:                               Mindspeed Director Restricted Stock Units Award
(Grant Date)

 

Dear (Name):

 

Effective (Grant Date),
the Board of Directors of Mindspeed Technologies, Inc. (the “Company”)
awarded you the following Restricted Stock Units at a grant value of (Grant
Price) per unit upon the terms set forth below:

 

Type of Grant:                                                                   Restricted
Stock Units

Number
of Restricted

Stock
Units:

 

This Restricted Stock
Units award (this “Award”) has been granted pursuant to, and is controlled by: (i) the
Mindspeed Technologies, Inc. Directors Stock Plan (the “Plan”); (ii) the
Mindspeed Technologies, Inc. Directors Stock Plan Award Agreement
Restricted Stock Unit Terms and Conditions (the “Plan Terms”); and (iii) this
grant letter (this “Grant Letter”). This Award shall vest as set forth in the
Plan Terms. The Plan and the Plan Terms are incorporated into this Grant Letter
as if fully set forth herein.

 

A copy of the Company’s
Annual Report on Form 10-K is available for viewing and printing on our
website at www.mindspeed.com.

 

If you have any questions
regarding this Award, please contact me at (949)
579-         or via email at
                              
@mindspeed.com or Stock Administration at (949) 579-4525 or via email at
stock.admin@mindspeed.com.

 

 

	
   

  	
  MINDSPEED TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [INSERT NAME]EXHIBIT 10.1

 

PHARMACY PURCHASE AGREEMENT

 

THIS AGREEMENT is made
effective the 24th day of March, 2008, among APOTHECARYRX, LLC, an Oklahoma
limited liability company (the “Buyer”), NEWT’S DISCOUNT PHARMACY, INC., an
Oklahoma corporation (the “Company”) and Jeremy Avance, an individual (“Avance”
and together with the Company, jointly and severally, the “Seller”).

 

B A C K G R O U N D :

 

A.            The Seller owns and operates
the pharmacy business located in or near Guthrie, Oklahoma, described at
Schedule “A” attached as a part hereof (together, whether one or more, the “Business”).

 

B.            The Buyer desires to acquire
and the Seller desires to sell the Business by the Buyer acquiring all assets,
rights and properties owned by the Seller which are used in, useful in or
related to the ownership, operation or maintenance of the Business, except as
specifically excluded herein.

 

NOW, THEREFORE, in
consideration of the mutual covenants herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

 

1.             Sale Agreement.  Subject to the terms and conditions of this
Agreement, the Buyer agrees to purchase and the Seller agrees to sell the
Business, including, without limitation, all assets, rights and property used
in, useful in or related to the ownership, operation or maintenance of the
Business as of the date of this Agreement and the Closing Date (as hereafter
defined) except for the Excluded Assets (collectively, the “Assets”).  Absolute ownership of the Assets will be
transferred to the Buyer on the Closing Date free and clear of all liens,
claims and encumbrances other than liens securing the Approved Liabilities (as
hereafter defined).  The Assets include,
without limitation:

 

1.1.          Fixtures and Equipment.  All tangible personal property used in,
useful in or related to the ownership, operation or maintenance of the
Business, including, without limitation, all equipment, furniture, supplies and
trade fixtures.

 

1.2.          Merchandise Inventory.  All of the following inventory located on the
premises of the Business (the “Merchandise Inventory”):  (a) all saleable prescription
pharmaceutical inventory except: (i) inventory that is damaged, has
expired or will expire within ninety (90) days following the Time of Transfer; (ii) non-wholesaler
re-packed or misbranded pharmaceutical merchandise; (iii) compounding
chemicals; and (iv) any other inventory not transferable due to any
applicable local, state or federal law; and (b) all over-the-counter inventory
reasonably acceptable to the Buyer.

 

 

1.3.          Contracts and Leases.  All of the Seller’s interest in all
contracts, leases and agreements used in, useful in or related to the
ownership, operation or maintenance of the Business or the Assets (the “Contracts”)
that are reasonably acceptable to the Buyer.

 

1.4.          Will Call Receivables.  All of the Will Call Receivables (as defined
in the Transition Agreement (as hereinafter defined in paragraph 8.10)).

 

1.5.          Intangible Property.  All intangible personal property used in,
useful in or related to the ownership, operation, or maintenance of the
Business, including, without limitation: 
(a) the right to all names (including the names “Newt’s Pharmacy”
and “Newt’s Discount Pharmacy”), telephone numbers, pager numbers, cellular and
digital phone numbers, internet web sites and electronic mail addresses, if
any; (b) all permits, licenses, certificates and operating authorities
necessary to operate the Business, to the extent assignable; (c) all
customer and prospective customer lists including the exclusive use of such
lists; (d) all books, records and files, whether physical or electronic;
and (e) all computer software, to the extent assignable.

 

1.6.          Going Concern Assets.  The covenant not to compete and other going
concern assets as set forth in the Goodwill Protection Agreement to be executed
in connection herewith (the “Goodwill Protection Agreement”).

 

2.             Excluded Assets.  The Assets to be acquired by the Buyer under
this Agreement specifically exclude the following (the “Excluded Assets”):  (a) all cash, checks and coupons located
at the Business prior to the Time of Transfer (as hereinafter defined in
paragraph 11.3), except for a cash change fund in the amount of $500.00 (the “Change
Fund”); (b) all accounts receivable, relating to operation of the Business
prior to the Time of Transfer other than the Will Call Receivables; (c) any
Contracts not approved by the Buyer in writing after the date hereof; and (d) those
items described at Schedule “2” attached as a part hereof that the Seller
represents are not necessary for the ownership or operation of the Business;
and (e) all Merchandise Inventory not purchased by Buyer under paragraph
1.2, above.

 

3.             Liabilities.  The Seller will be solely responsible for and
will pay or otherwise satisfy on or before the Closing Date all:  (a) liabilities, obligations and debts
of the Seller with respect to the Business in existence as of the Closing Date;
and (b) taxes (including sales and income taxes) accruing from operation
of the Business or actions taken by the Seller prior to and through the Closing
Date.

 

4.             Purchase Price.  Subject to the adjustments and prorations
hereafter described, the total purchase price to be paid by the Buyer to the
Seller for the purchase of the Business is the amount equal to the sum of (the “Purchase
Price”):  (a) One Million Dollars
($1,000,000.00) (the “Base Price”); plus (b) the Merchandise Inventory
Price (as hereafter defined) calculated in accordance with paragraph 5 of this
Agreement; plus (c) the total amount of the Will Call Receivables (the “Receivables
Price”).  The Purchase Price will be
adjusted and paid as follows:

 

4.1.          Cash at Closing.  On the Closing Date, the Buyer will pay to
the Company in immediately available funds: 
(a) fifty percent (50%) of the Base Price; (b) all of 

 

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                the Merchandise Inventory
Price; (c) all of the Receivables Price; and (d) the amount of the
Change Fund not to exceed $500.00.  The
Base Price shall be adjusted as provided in paragraphs 4.3 and 4.4.

 

4.2.          Seller Financing; Goodwill
Protection.  To satisfy
the balance of the Purchase Price, on the Closing Date, the Buyer will:  (a) execute and deliver a promissory
note (the “Promissory Note”) in the amount equal to forty percent (40%) of the
Base Price in favor of the Company; and (b) enter into the Goodwill
Protection Agreement providing for payment of ten percent (10%) of the Base
Price to Avance.  The Promissory Note
will be secured by a security agreement (the “Security Agreement” and
collectively with the Promissory Note, the “Financing Documents”), bear
interest at six percent (6%) per annum, be payable in blended quarterly
installments of principal and interest and have a term of three (3) years.

 

4.3.          Adjustments.  On the Closing Date, the amount to be paid
pursuant to paragraph 4.1 will be decreased for any and all unpaid liabilities
incurred by the Company or the Business prior to the Time of Transfer and which
are assumed by the Buyer or collateralized by any of the Assets, or for which
the Buyer becomes liable and pays.

 

4.4.          Prorations.  On the Closing Date, the amount to be paid
pursuant to paragraph 4.1 will be adjusted based on the proration of all rents
(including ad valorem taxes and casualty insurance), if any, and utilities for
the month in which the Time of Transfer occurs through the Time of Transfer
(the “Prorations”).  All accounts payable
and other liabilities incurred prior to the Time of Transfer will be the sole
responsibility of the Seller.  All
accounts payable and other liabilities incurred by the Buyer in connection with
the Business on and after the Time of Transfer will be the sole responsibility
of the Buyer.  All accounts receivable
and other revenues will be apportioned as provided in the Transition
Agreement.  Each party shall, promptly
upon receipt, deliver to the other party copies of each relevant bill or
statement that may be in such party’s records.

 

4.5.          Allocation.  The Purchase Price will be allocated among
the Assets by the Buyer and the Seller according to sound accounting practices
and such allocation will be incorporated into a supplemental instrument to be
executed and delivered by the parties on the Closing Date.

 

5.             Inventory.  A physical inventory (the “Inventory”) will
be taken of all Merchandise Inventory and supplies located at the Business
prior to the Closing Date on a date acceptable to the Buyer and the
Seller.  The inventory is tentatively
scheduled for March 25, 2008, and will only be postponed to allow more
time for the satisfaction of conditions precedent in paragraphs 9or 10.  The Inventory will be certified and taken by
an inventory service selected mutually by the Buyer and the Seller.  The cost of the Inventory will be divided
equally between the Seller and the Buyer. 
The Inventory will be recorded on duplicate inventory sheets in the
presence of the Seller and the Buyer or their representatives, and a copy of
such inventory sheets will be furnished to the Seller and the Buyer.  All damaged or unsaleable merchandise,
merchandise that is out of date or will become out of date within ninety (90)
days after the date the Inventory is 

 

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conducted
or merchandise that the Buyer reasonably determines cannot be sold for full
retail price (together, the “Excluded Inventory”) will be excluded from the
Inventory and set aside.  The Seller will
have the right to remove all Excluded Inventory from the Business within
forty-eight (48) hours and to return the Excluded Inventory or send it to a
reclamation center for processing.  Any
Excluded Inventory not timely removed from the Business by the Seller will be
deemed abandoned and the Buyer may dispose of the Excluded Inventory as the
Buyer deems appropriate and all proceeds from such disposition will belong to
the Buyer.  The purchase price for the
Merchandise Inventory (the “Merchandise Inventory Price”) will be the actual
invoice cost paid by the Seller for each item listed in the Inventory.

 

6.             Representations and
Warranties of Seller.  As an
inducement to the Buyer to enter into this Agreement, the Seller represents and
warrants to the Buyer that as of the date of this Agreement and the Closing
Date:

 

6.1.          Financial Statements.  The Seller has delivered to the Buyer the
unaudited financial statements for the Business for the periods ending December 31,
2005, December 31, 2006, and December 31, 2007.  There has not been a material change (nor an
event which would result in any material change) in the Business, or in the
results of operation or financial condition of the Company since the effective
date of the most recent financial statements. 
The financial statements, copies of which are attached at Schedule “6.1”
as a part hereof, consist of a balance sheet, an income statement and all
appropriate notes and disclosures.  The
financial statements, income statements and notes and disclosures are true and
correct in all material respects and present fairly the financial condition and
results of operations of the Business at the dates thereof and for the
respective periods then ended and have been prepared in accordance with
accounting principles consistently applied.

 

6.2.          Absence of Liabilities.  The Seller currently has no debt, liability,
obligation or commitment, absolute or contingent, known or unknown, relating to
or connected with the Business or the Assets other than:  (a) those set forth (and not exceeding
the amounts so set forth) in the most recent financial statements attached at
Schedule “6.1” (the “Current Financial Statements”) and not otherwise paid or
discharged after the date thereof; (b) and those incurred in the ordinary
course of business from the effective date of the Current Financial Statements,
through the date of this Agreement consistent with past practices.  Except for the items shown on the Current
Financial Statements of the Seller which will be paid from the sale proceeds
hereunder, on the Closing Date, the Business will have no claims, debts, liabilities,
obligations, guaranties or commitments and the Seller will not be a party to,
be bound or subject to any real or personal property leases relating to the
Business other than the Contracts.  The
Assets and the Business will not be subject to or liable for any claim, debt,
liability, obligation, guaranty or commitment as of the Closing Date.  Any such claims, debts, liabilities,
obligations or commitments will be the sole responsibility of the Seller, and
the Seller hereby agrees to indemnify and hold harmless the Buyer from all such
amounts.

 

4

 

6.3.          Title to Assets.  The Seller owns, possesses and has good and
marketable title to the Assets free and clear of all mortgages, liens, leases,
pledges, charges, encumbrances, equities, easements, rights of way, covenants,
conditions, restrictions or claims of every nature and kind whatsoever, other
than those described at Schedule “6.3.” 
The Assets constitute all the assets used in, useful in or related to
the Business.  Each Asset is:  (a) either (i) in good saleable
condition or (ii) in good operating condition and repair, and in sound
structural condition; and (b) free and clear of any material defects or
any restrictions on or conditions to transfer or assignment.

 

6.4.          Contracts.  Schedule “6.4” is a true, correct and
complete list (or description, in the case of oral agreements) of all of the
Contracts.  Except as disclosed to the
Buyer in writing:  (a) such
contracts, leases and agreements are in full force and effect; (b) the
Seller is in full compliance with all of the Seller’s obligations under the
Contracts; (c) the counterparty under each of the Contracts is in full
compliance with all of such party’s obligations under the Contracts; (d) no
default exists under any of the Contracts; (e) no event of default or
event which would become an event of default with the giving of notice or
passage of time has occurred; and (f) no condition presently exists which
would give any party to any contract the right to terminate such contract.  There are no other material contracts,
leases, commitments or agreements in effect related to the Assets or the
Business other than those identified at Schedule “6.4.”

 

6.5.          Legal Requirements.  The Seller: 
(a) has all requisite power to own, lease and operate the Seller’s
properties, including, without limitation, the Assets and to carry on the
Seller’s business as now being conducted, including, without limitation, the
Business; (b) is duly qualified to carry on the Business in the State
where the business is located; and (c) holds all required licenses and
permits for carrying on all aspects of the Business.  The Seller and the Business have complied and
will continue to comply with all applicable federal, state or local statutes,
laws and regulations including, without limitation, any applicable building,
zoning or other law, ordinance or regulation affecting the operation of the
Business.

 

6.6.          Zoning.  To the best knowledge of the Seller, the
zoning of the real property where the Business is located permits the presently
existing improvements and the continuation of the Business as presently being
conducted.  To the best knowledge of the
Seller, the Seller has received no notice of any and there are no:  (a) pending changes in statutes,
regulations or local laws (including zoning) that will render any part of the
Business illegal; (b) outstanding orders or notices pending from any local
authority, governmental body or governmental agency with respect to the Assets
or the Business; or (c) plans, studies or efforts by any governmental
authority or agency or of any non-governmental person or entity which in any
way would materially affect all or any portion of the Business or the Assets.

 

5

 

6.7.          Insurance.  The Seller has and will maintain in full
force and effect through the Closing Date insurance against all risks, damages,
losses and liabilities usual and customary for Business similar to the
Business, including without limitation, general liability, casualty, workers’ compensation
and property insurance.  The Seller is
not self insured for any risks.  The
Seller’s current insurance coverage on the Business is described at Schedule “6.7”
attached as a part hereof.

 

6.8.          Environmental Issues.  The Seller has not and to the best knowledge
of the Seller no other party has disposed, deposited, discharged, placed or
otherwise caused any release of any hazardous or toxic materials, substances,
pollutants, contaminants or wastes at, on or near the real property and
improvements where each Business is located in contravention of any applicable
federal, state or local laws, rules or regulations.

 

6.9.          Consents and Approvals.  Other than in compliance with the provisions
of applicable statutes and regulations, no notice to, filing with, or
authorization, consent or approval of, any domestic or foreign public body or
authority is necessary for the consummation of the transactions contemplated by
this Agreement.  The execution, delivery,
performance and consummation of this Agreement does not and will not:  (a) violate, conflict with or constitute
a default or an event that, with notice or lapse of time or both, would be a
default, breach or violation under any term or provision of any instrument,
agreement, contract, commitment, license, promissory note, conditional sales
contract, indenture, mortgage, deed of trust, lease or other agreement,
instrument or arrangement to which the Seller is a party or by which the
Seller, the Business or the Assets are bound; (b) violate, conflict or constitute
a breach of any statute, regulation or judicial or administrative order, award,
judgment or decree to which the Seller is a party or to which the Seller, the
Assets or the Business are bound or subject; or (c) result in the creation
or imposition of any adverse claim or interest, or any lien, encumbrance,
charge, equity or restriction of any nature whatever, upon or affecting the
Seller, the Business or the Assets.

 

6.10.        Litigation.  Except as set forth at Schedule “6.10,” there
is no:  (a) action, suit or
proceeding pending or threatened against the Seller, the Assets or the
Business; or (b) proceeding, investigation, charges, audit or inquiry
threatened or pending before or by any federal, state, municipal or other
governmental court, department, commission, board, bureau, agency or
instrumentality which might result in an adverse effect on the Seller, the
Business or the Assets.

 

6.11.        Certain Employee Plans.  Except as set forth at Schedule “6.11,” the
Seller:  (a) has no “employee
benefit plans,” as defined in the Employee Retirement Security Act of 1974, as
amended, including by way of example and not limitation, 401(k), Keogh, SEP and
health insurance plans; and (b) is not a party to any multi-employer
plan.  Other than at-will employment
agreements, there are no employment agreements with any officers, directors,
employees, retired employees or former employees of the Seller.

 

6

 

6.12.        Computer Systems.  All computer software which is used in connection
with the operation of the Business is either proprietary or held pursuant to a
valid, legal and binding license agreement which is in full force and effect,
and no event has occurred which would constitute an event of default under any
applicable agreement or which, with the lapse of time, the giving of notice or
both, would constitute an event of default under any applicable agreement.
Other than written industry standard license agreements, each such program or
system is complete and is not subject to any lien, claim, encumbrance, security
interest, right, restriction, option or purchase obligation held by any person.

 

6.13.        Taxes.  All tax returns and reports of the Seller
required by law to be filed have been filed or valid extensions have been obtained.  The returns which have been filed are true
and correct and all taxes shown as due thereon have been paid.  All taxes and other governmental charges
which are due and payable have been paid and recorded in the appropriate
accounting records.  There is no pending
or known threatened claim against the Seller for payment of additional taxes in
excess of the amounts reflected on such party’s books and financial
statements.  The Seller has not executed
any waiver of any statute of limitations against assessments of taxes.

 

6.14.        Authority.  The Seller has taken all necessary action to
authorize the execution, delivery and performance of this Agreement and has
adequate power, authority and legal right to enter into, execute, deliver and
perform this Agreement and to consummate the transactions contemplated
hereby.  This Agreement is legal, valid
and binding with respect to each Seller and is enforceable in accordance with
its terms.  On execution, delivery and
performance of this Agreement in accordance with its terms, the Buyer will own
one hundred percent (100%) of the Business and the Assets free of all claims,
liens, encumbrances and liabilities.

 

6.15.        Labor Relations.  The Seller and the Business have not and are
not now a party to any collective bargaining or other labor contract.  To the best knowledge of the Seller, there
has not been, there is not presently or existing and there has not been any
threat of:  (a) any strike, slow
down, picketing, work stoppage or employee grievance process; (b) any
proceeding against or affecting any of the Business relating to the alleged
violation of any federal, state, local, municipal, foreign, international,
multinational or other administrative order, constitution, law, ordinance,
principle of common law, regulation, statute or treaty pertaining to labor
relations or employment matters, including any charge or complaint filed by an
employee or union with the National Labor Relations Board, the Equal Employment
Opportunity Commission, or any comparable governmental body, organizational
activity, or other labor employment dispute against or affecting any of the
Business, their premises or the Assets; or (c) any application for
certification of a collective bargaining agent. 
To the best knowledge of the Seller, no event has occurred or
circumstances exist that could provide the basis for any work stoppage or
other labor dispute.  There is no lock
out of any employees of the Seller, and no such action is contemplated by the
Seller.  The Seller and the Business have
complied in all respects with all legal requirements relating to the 

 

7

 

                employment, equal employment
opportunity, non-discrimination, immigration, wages, hours, benefits,
collective bargaining, the payment of social security and similar taxes,
occupational safety and health and plant closings.  Neither the Seller nor the Business is liable
for the payment of any compensation, damages, taxes, fines, penalties or other
amounts, however designated, for failure to comply with any of the foregoing.

 

6.16.        Full Disclosure.  This Agreement, any schedule referenced in or
attached to this Agreement, any document furnished to the Buyer under this
Agreement or any certification furnished to the Buyer under this Agreement does
not contain any untrue statement of a material fact and does not omit to state
a material fact necessary to make such statement, in the circumstances under
which it was made, not misleading.  All
of the representations, warranties and covenants in this Agreement:  (a) are true and correct as of the date
made; (b) will be true and correct as of the Closing Date; and (c) will
survive and not be waived, discharged, released, modified, terminated or
affected by any due diligence by the Buyer. 
For purposes of this Agreement, when a statement is qualified by the
phrase “to the best knowledge of the Seller,” such phrase means: (y) the
actual knowledge of the Seller; and (z) the knowledge which the Seller, in
the exercise of reasonable diligence, could obtain.

 

7.             Representations and
Warranties of Buyer.  As an
inducement to the Seller to enter into this Agreement, the Buyer represents and
warrants to the Seller that as of the date of this Agreement and the Closing
Date, the Buyer has delivered to the Seller the unaudited financial statements
for the Buyer for the periods ending December 31, 2006, and December 31,
2007.  There has not been a material
change (nor an event which would result in any material change) in the
financial condition of the Buyer since the effective date of the most recent
financial statements.  The financial
statements, copies of which are attached at Schedule “7” as a part hereof,
consist of a balance sheet, an income statement and all appropriate notes and
disclosures.  The financial statements,
income statements and notes and disclosures are true and correct in all
material respects and present fairly the financial condition and results of
operations of the Buyer at the dates thereof and for the respective periods
then ended and have been prepared in accordance with accounting principles
consistently applied.

 

8.             Covenants.  The parties agree to perform the following
prior to the Closing Date:

 

8.1.          Access to Information.  During the period commencing on the date of
this Agreement and ending on the Closing Date, the Seller will cause the
officers and representatives of the Business, including, without limitation,
the Seller’s accountants, lawyers and bankers, to afford the Buyer and the
persons expected to enter into financing agreements with respect to the Buyer’s
acquisition and the authorized representatives of the foregoing, full access
during normal business hours to the properties, books, records, accountants and
lawyers of the Business and the Seller to make such investigation as the Buyer
desires regarding the Business, the Assets and the Seller.  The Seller will:  (a) furnish such financial, operating
data, information and responses as the Buyer might reasonably request; and (b) execute
and deliver to the Buyer all written authorizations as the Buyer 

 

8

 

                may reasonably request or
the representatives of the Seller might require.  The Seller will furnish bank account
statements for the months of January and February, 2008, as soon as such
statements are available, but in no event later than three (3) business
days prior to the Closing Date.

 

8.2.          Inspection.  During the ten (10) day period
commencing on the date this Agreement is executed by the Seller (the “Inspection
Period”), the Buyer will conduct such investigation and inspection with respect
to the properties, books, records, legal documents, financial accounts,
contracts, title records and prospects of the Business as the Buyer deems
appropriate.  If the Buyer determines in
good faith that the Business or the Assets are unsatisfactory for any reason
whatsoever, the Buyer will have the option to terminate this Agreement by
written notice to the Seller within two (2) days after the expiration of
the Inspection Period or to provide written notice to the Seller setting forth
the Buyer’s objections.  The Buyer may
send multiple objection notices and each such notice will not waive any right
to make additional objections within the foregoing time periods.  The Seller will have seven (7) days
after receipt of any such objection notice to satisfy the Buyer’s
objections.  If the Seller is unable to
satisfy the Buyer’s objections, the Buyer will have the option to (i) waive
such objections or (ii) terminate this Agreement by written notice to the
Seller.

 

8.3.          Conduct of Business.  Prior to the Closing Date, the Seller will
operate the Business in a businesslike manner in accordance with the Seller’s
prior practices and will use the Seller’s best efforts to maintain and preserve
the Business, the goodwill of all customers and good relations with its
employees.  In addition, unless the Buyer
otherwise consents in writing:

 

8.3.1.       The Seller has not and will
not:  (a) transfer, sell, mortgage,
pledge, encumber or dispose of any of the Assets (other than the Merchandise
Inventory) except to unaffiliated third parties in the ordinary course of
business for fair consideration in an amount not less than the book value of
such asset as reflected in the Current Financial Statements; (b) transfer,
sell, mortgage, pledge, encumber or dispose of the Merchandise Inventory except
at retail in the ordinary course of business; (c) make or permit any
amendment or termination of any material contract, agreement, lease or
commitment to which the Seller may be bound; (d) make any capital
expenditures or commit to make any capital expenditure or perform unfulfilled
commitments to make capital expenditures, whenever made or entered into, if
such capital expenditures are in excess of $5,000.00; or (e) incur any
material amount of indebtedness for borrowed money or other obligations except
the purchase of Merchandise Inventory in the ordinary course of business.

 

8.3.2.       Except in the ordinary
course of business, the Seller will not enter into any new employment
agreement, amend or extend any existing employment agreement, grant any
severance pay, termination pay or increases in compensation, take any action to
vest any overfunded benefits in any 

 

9

 

                benefit plan or adopt or amend
any bonus, profit sharing, pension, stock option or similar plan, trust or
other arrangement.

 

8.3.3.       The Seller will not enter
into any new labor or collective bargaining agreement or amend or extend any
existing labor or collective bargaining agreement.

 

8.3.4.       The Seller will not enter
into any new supply agreement with any supplier of any of the Merchandise
Inventory or amend or extend any existing supply agreement.

 

8.3.5.       The Seller will not enter
into any agreement, arrangement or understanding involving the sale, transfer,
assignment or other disposition of, or grant a security interest in or optional
rights to purchase or otherwise acquire the Assets or the Business.

 

8.3.6.       The Seller will not, and
will cause each of the Seller’s representatives and affiliates not to, directly
or indirectly, solicit, initiate or encourage any inquiries or proposals from,
discuss or negotiate with, provide any non-public information to, or consider
the merits of any unsolicited inquiries or proposals from any person other than
the Buyer relating to any transaction involving the sale of the Business or the
Assets, or any merger, consolidation, business combination or similar
transaction involving the Business.

 

8.3.7.       The Seller will not increase
prices of any of the merchandise offered for sale at the Business except as a
direct result of an increase in the Seller’s cost of such merchandise and in
the ordinary course of business.

 

8.4.          Consents.  The Seller will cooperate with the Buyer to
obtain, all licenses, permits, consents, approvals, authorizations,
qualifications and orders of governmental authorities and parties to contracts
with the Seller as are necessary for the consummation of the transactions
contemplated by this Agreement.  However,
no contract will be amended to increase the amount payable thereunder and no
burden to the Buyer will be increased to obtain any consent, approval or
authorization.

 

8.5.          Employment.  On the Closing Date, the Seller will
terminate all employees of the Business effective as of the Time of Transfer
and be responsible for all compensation, accrued vacation, severance pay or
termination pay or other related claims with respect to all such terminated
employees through the Time of Transfer. 
On the Closing Date, the Buyer will have the right, but not the
obligation, to offer to employ those employees of the Business determined by
the Buyer in the Buyer’s sole discretion. 
The terms of employment for each such retained employee will be
determined by the Buyer.  Following the
Closing Date, the performance of each employee who continues employment with
the Buyer will be evaluated periodically by the Buyer using such criteria as
may be 

 

10

 

                established from time to
time by the Buyer.  The Seller agrees to
use its best efforts to ensure that the employees of the Seller selected by the
Buyer continue their association with the Business.  Immediately after the closing on the Closing
Date, Avance will accompany the Buyer’s representatives to the Business,
announce to the employees of the Business that the Business has been sold to
the Buyer, and introduce the Buyer’s representatives to the employees.

 

8.6.          Leases.  The Seller will use its best efforts to cause
the landlord under the lease where the Business is located (the “Lease”) to
enter into amendments of the Lease on terms satisfactory to the Buyer.

 

8.7.          Seller’s Insurance.  Through the Time of Transfer, the Seller will
maintain insurance coverage customarily maintained by the parties engaged in
the Business and covering all loss, damage, liability and risk allocated to the
Sellers in paragraph 11.3 including, without limitation, general liability,
casualty, workers’ compensation, vehicle and property insurance in amounts
customarily maintained by the Seller.

 

8.8.          Conditions.  The Seller will use its best efforts to cause
the conditions in paragraph 9 to be satisfied. 
The Buyer will use its best efforts to cause the conditions in paragraph
10 to be satisfied.

 

8.9.          Sales Tax Report.  The Seller will complete and file any sales
tax report required to be filed with the tax authorities for the state where
the Business is located in connection with the consummation of this
transaction.

 

8.10.        Business Transition.  As soon as practicable after the Closing
Date, the Buyer will apply for applicable state pharmacy and DEA licenses along
with any other permits or licenses required by state or local regulations, and
obtain agreements with third party payers necessary to collect reimbursement
for prescriptions dispensed and associated fees.  On the Closing Date, the Seller and the Buyer
will enter into a Transition Agreement (the “Transition Agreement”), to allow
the Buyer to operate the Business after the Closing Date under the Seller’s
permits and licenses after the Time of Transfer until the Buyer obtains all
necessary permits and licenses.

 

8.11.        Employee Pay.  Immediately after execution of this
Agreement, the Seller will advise all employees of the Business that they will
be paid entirely as employees and not as independent contractors, with all
required employer payroll taxes withheld. 
The Seller will furnish the Buyer a letter from Paychex, Inc.
indicating that all pay to employees of the Business will be shown on forms W-2
with all payroll taxes withheld.  The
Seller will promptly advise the Buyer of any communication made by any employee
of the Business regarding the Seller’s compliance with this covenant and
furnish copies of any written communication (including electronic mail) and
written summaries of any oral communication made by such employees.

 

11

 

9.             The Buyer’s Conditions
Precedent.  The
obligation of the Buyer to consummate the transactions contemplated by this
Agreement is subject to the satisfaction or waiver (subject to applicable law)
at or prior to the Closing Date of each of the following conditions:  (a) no preliminary or permanent
injunction or other order will have been issued by any court of competent
jurisdiction or any regulatory body preventing consummation of the transactions
contemplated by this Agreement; (b) no action will have been commenced or
threatened against the Seller, the Buyer or any of their respective affiliates,
associates, officers or directors seeking damages arising from, to prevent or
challenge the transactions contemplated by this Agreement; (c) all of the
pharmacists and pharmacy technicians employed by the Seller at the Business as
of March 1, 2008, will continue to be employed at the Business immediately
prior to the Time of Transfer; (d) all representations and warranties of
the Seller contained herein will be true and correct in all material respects
on and as of the Closing Date; (e) in all material respects, the Seller
will have performed or satisfied on and as of the Closing Date, all
obligations, covenants, agreements and conditions contained in this Agreement
to be performed or complied with by the Seller; (f) there is no material
adverse change, nor any event which would result in any material adverse
change, so far as can reasonably be foreseen by the Buyer, in the Business or
in the results of operations; (g) the Business will not have incurred any
material loss on or prior to the Closing Date, whether or not covered by
insurance; (h) all actions, proceedings, instruments and documents
required to carry out the transactions contemplated hereby will have been
initiated, completed, obtained or drafted to the reasonable satisfaction of
Buyer’s counsel, and the Seller will have delivered such additional
certificates and other documents as the Buyer reasonably requests including,
without limitation, such certificates of the Seller dated the Closing Date
evidencing compliance with the conditions set forth in this paragraph 9; (i) the
Seller will not be the subject of any order, investigation or hearing by any
regulatory authority or by the Oklahoma income tax agency, the Internal Revenue
Service, the Justice Department of the United States or any public or private
consumer protection or other agency, committee or organization that adversely
affects the Business or the Assets; (j) the landlord under the Lease will
have approved the assignment of the Lease to the Buyer or entered into a new
lease with the Buyer; (k) the Lease will have a minimum remaining term of
ten (10) years after the Closing Date (including options), with the
initial monthly rental payments not to exceed $3,500.00 on terms satisfactory
to the Buyer; and (l) the Pharmacy Purchase Agreement of even date
herewith between the Buyer and Pendergraft Drugs, Inc. (the “PDP Agreement”)
has not been terminated and will close on the Closing Date.

 

10.           Seller’s Conditions
Precedent.  The
obligation of the Seller to consummate the transactions contemplated by this
Agreement is subject to the satisfaction, at or prior to the Closing Date, of
each of the following conditions, any or all of which may be waived in whole or
in part:  (a) no preliminary or
permanent injunction or other order will have been issued by any court of
competent jurisdiction or any governmental or regulatory body preventing
consummation of the transactions contemplated by this Agreement; (b) no
action will have been commenced or threatened against the Seller, the Buyer or
any of their respective affiliates, associates, officers or directors seeking
damages arising from, to prevent or to challenge the transactions contemplated
by this Agreement; (c) all representations and warranties of the Buyer
contained herein will be true and correct in all material respects on and as of
the Closing Date; and (d) the Buyer will have performed in all material
respects all obligations, agreements and conditions contained in this Agreement
to be performed or complied with by the Buyer.

 

12

 

11.           The Closing.  This Agreement will be consummated at 9:00 a.m.
local time at the offices of Commercial Law Group, P.C. in Oklahoma City,
Oklahoma on the later of the following dates (the “Closing Date”):  (a) the first business day after the
Inventory is complete and accepted by both parties; or (b) the first
business day following the day on which the last of the conditions set forth in
paragraph 9 hereof is satisfied or waived which in no event shall be later than
April 8, 2008.

 

11.1.        The Buyer’s Deliveries.  On the Closing Date, the Buyer will deliver
or cause to be delivered to the Seller the following items (all documents will
be duly executed and acknowledged where required):

 

11.1.1.     Payment.  The cash portion of the Purchase Price as
adjusted under paragraphs 4.3 and 4.4;

 

11.1.2.     Financing Documents.  The Financing Documents;

 

11.1.3.     Goodwill Protection
Agreement.  The
Goodwill Protection Agreement;

 

11.1.4.     Evidence of Authority.  Such corporate resolutions, certificates of
good standing, incumbency certificates and other evidence of authority with
respect to the Buyer as might be reasonably requested by the Seller;

 

11.1.5.     Closing Memorandum.  A memorandum setting forth the items
delivered and accounting for the payments made on the Closing Date; and

 

11.1.6.     Additional Documents.  Such additional documents as might be
reasonably requested by the Seller to consummate this Agreement.

 

11.2.        Seller’s Deliveries.  On the Closing Date, the Seller will deliver
or cause to be delivered to the Buyer the following items (all documents will
be duly executed and acknowledged where required):

 

11.2.1.     Assignment.  Bills of sale, assignments and conveyances
acceptable to the Buyer necessary to convey to the Buyer all of the Seller’s
right, title and interest in and to all of the personal property comprising a
portion of the Assets;

 

11.2.2.     Goodwill Protection
Agreement.  The Goodwill
Protection Agreement;

 

11.2.3.     Documents; Keys.  The originals of all documents to be assigned
to the Buyer, including, without limitation, all contracts, books and records;
all keys, combination locks and other security devices located at the Business.

 

11.2.4.     Closing Memorandum.  A memorandum setting forth the items
delivered and accounting for the payments made on the Closing Date;

 

11.2.5.     Additional Documents.  Such additional documents as might be
reasonably requested by the Buyer to consummate this Agreement.

 

13

 

11.3.        Possession.  Possession of the Business and all of the
Assets in connection with the Business will be delivered to the Buyer on the
Closing Date after closing but to be effective at 12:01 a.m. on the
Closing Date (the “Time of Transfer”) free from all parties claiming rights to
possession of or having claims against the Business and the Assets.  In addition, with respect to each Asset and
the Business, risk of loss, damage, claim, liability or other matter including,
without limitation, all liabilities arising from any accident, personal injury,
death, property damage or other claim related to operation of the Business will
pass from the Seller to the Buyer at the Time of Transfer.

 

11.4.        Costs.  The Seller will pay the following closing
costs:  (a) the Seller’s attorneys’
fees, accountants’ fees and fees of other advisors; (b) all sales taxes
assessed in connection with consummation of this transaction; and (c) any
other charge imposed for the transfer of any item comprising the Assets.  The Buyer will pay the Buyer’s attorneys’
fees, accountants’ fees and fees of other advisors.

 

12.           Indemnification.  The parties agree to indemnify each other as
follows:

 

12.1.        Seller’s Indemnification.  The Seller agrees to pay, defend, indemnify,
reimburse and hold harmless the Buyer and the Buyer’s directors, officers,
agents and employees (the “Buyer Indemnified Parties”) for, from and against
any loss, damage, diminution in value, claim, liability, debt, obligation or
expense (including interest, reasonable legal fees, and expenses of litigation
and attorneys fees in enforcing this Agreement) incurred, suffered, paid by or
resulting to any of the Buyer Indemnified Parties and which results from,
arises out of or in connection with, is based upon, or exists by reason
of:  (a) any breach or default in
any representation or warranty of the Seller set forth in this Agreement or in
the performance by the Seller of any covenant or obligation set forth in this
Agreement which is not cured as provided in paragraph 15 of this Agreement; and
(b) any claims, demands, violations, actions, assessments, taxes,
penalties, fines, costs, expenses, obligations or other liabilities with
respect to the ownership, operation or maintenance of the Business of the
Assets prior to the Time of Transfer, that are not accounted for by paragraphs
4.3 or 4.4.

 

12.2.        Buyer’s Indemnification.  The Buyer agrees to indemnify and hold
harmless the Seller and the Seller’s officers, directors, managers, employees,
agents and members (collectively, the “Seller Indemnified Parties”) against any
loss, liability, deficiency, damage, expense or cost (including interest,
reasonable legal fees and expenses of litigation and attorneys fees in
enforcing this Agreement), whether or not actually incurred or paid that the
Seller Indemnified Parties may suffer, sustain or become subject to, as a
result of:  (a) any breach or
default in any representation or warranty of the Buyer set forth in this Agreement
or in the performance by the Buyer of any covenant or obligation set forth in
this Agreement which is not cured as provided in paragraph 15 of this
Agreement; and (b) any claim made by a third party with respect to the
operation of the Business on or after the Time of Transfer.

 

14

 

12.3.        Limitation on
Indemnification Obligations.  The parties’ indemnification obligations
pursuant to the provisions of paragraph 12 are subject to the following
limitations:

 

12.3.1.     Survival of Representations
and Warranties.  No party
can recover under paragraphs 12.1 or 12.2 unless a claim has been asserted by
written notice, delivered to the other party on or prior to the date that is 24
months after the Closing Date.

 

12.3.2.     Basket.  No party can recover under paragraphs 12.1 or
12.2 until the total amount which such party would recover but for this
paragraph 12.3.2 exceeds $12,500 (the “Basket”), in which event such party can
recover all amounts recoverable hereunder, including the amount less than the
Basket. The foregoing limitation shall not apply to breaches of the
representations and warranties in paragraph 6.11.

 

12.3.3.     Indemnification Cap.  No party can recover under paragraphs 12.1 or
12.2 an amount in excess of the principal amount of the cash (excluding accrued
interest, the Merchandise Inventory Price and the Receivables Price) paid by
the Buyer to the Seller pursuant to this Agreement and other documents executed
in connection (the “Indemnification Cap”). 
The foregoing limitation shall not apply to recovery for breaches of the
Representations and Warranties of Organization, Existence, Good Standing, Power
and Authority, Enforceability, and Employee Benefit Plans.

 

12.4.        Other Remedies.  The remedies provided by this paragraph 12
are in addition to, and not in lieu of, such other remedies as may be available
under applicable laws.  Without
limitation, the Buyer is entitled to enforce this Agreement by specific enforcement
without the necessity of demonstrating inadequacy of damages or irreparable
harm.

 

12.5.        Payment.  Claims for indemnification involving the
payment of money will be paid within thirty (30) days after written
notification thereof.  Claims for
indemnification involving amounts due to third parties will be promptly paid
when due, subject to the right to contest the same in good faith.  Unpaid claims will incur interest at a
floating rate of interest equal to the prime rate published from time to time
in The Wall Street Journal.

 

13.           Set-Off.  To secure the Seller’s obligations under this
Agreement, each Seller hereby grants to the Buyer, for a period of one (1) year
after the Closing Date, a right of set-off upon and against the Promissory
Note, any rights of such Seller under this Agreement and any and all amounts,
proceeds, money or other property of such Seller at any time held by the
Buyer.  On a default by the Seller to
this Agreement which is not cured as provided in paragraph 15 of this
Agreement, the Buyer is authorized, for a period of one (1) year after the
Closing Date, to appropriate, set-off and apply the property for which a right
of set-off is provided under this 

 

15

 

paragraph
13 without notice to the defaulting party. 
The limitations on the express grant of set-off hereunder will not limit
and will have no effect on any other remedies of the Buyer.

 

14.           Termination.  This Agreement may be terminated and the
transactions contemplated hereby may be abandoned by:  (a) mutual consent of the Seller and the
Buyer; (b) the Buyer, if the Buyer is not in default and the conditions
set forth in paragraph 9 of this Agreement have not been satisfied by the
Seller or waived by the Buyer; (c) the Seller, if the Seller is not in
default, and the conditions precedent set forth in paragraph 10 of this
Agreement have not been satisfied or waived by the Seller; (d) the Buyer,
pursuant to paragraph 8.2 of this Agreement; or (e) either party if this
Agreement has not closed on or before April 30, 2008.  In the event of termination, written notice
thereof will be given to the other party or parties specifying the provision
pursuant to which such termination is made. 
On termination pursuant to this paragraph 14, this Agreement will become
void and have no effect and there will be no liability hereunder on the part of
the Buyer or the Seller or any of their respective officers, directors,
employees, agents, stockholders or principals.

 

15.           Default.  If a party fails to perform any obligation
contained in this Agreement, the party claiming default will serve written
notice to the other party specifying the nature of such default and demanding
performance.  If such default has not
been cured within ten (10) business days after receipt of such default
notice, the nondefaulting party will be entitled to exercise all remedies
arising at law or in equity by reason of such default, including, without
limitation, specific performance of this Agreement or any one or more of the
provisions herein contained.

 

16.           Miscellaneous.  It is further agreed as follows:

 

16.1.        Time.  Time is of the essence of this Agreement.

 

16.2.        Notices.  Any notice, demand or communication required
or permitted to be given by any provision of this Agreement will be in writing
and will be deemed to have been given and received when delivered personally or
by telefacsimile to the party designated to receive such notice, or on the date
following the day sent by overnight courier, or on the third (3rd) business day
after the same is sent by certified mail, postage and charges prepaid, directed
to the following addresses or to such other or additional addresses as any
party might designate by written notice to the other parties:

 

	
   

  	
  If to Buyer:

  	
  Apothecary Rx, LLC

  
	
   

  	
   

  	
  Attn: Mr. Lewis P.
  Zeidner, President

  
	
   

  	
   

  	
  5500 Wayzata Boulevard,
  Suite 210

  
	
   

  	
   

  	
  Golden Valley, Minnesota
  55416

  
	
   

  	
   

  	
  Fax:      (763) 647-1137

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
  Michael Meleen, Esquire

  
	
   

  	
   

  	
  Commercial Law Group, P.C.

  
	
   

  	
   

  	
  210 Park Avenue,
  Suite 700

  
	
   

  	
   

  	
  Oklahoma City, Oklahoma
  73102

  
	
   

  	
   

  	
  Fax:      (405) 232-5553

  

 

16

 

	
   

  	
  To the Seller:

  	
  Newt’s Discount Pharmacy, Inc.

  
	
   

  	
   

  	
  Attn: Jeremy Avance

  
	
   

  	
   

  	
  102 W. Noble Avenue

  
	
   

  	
   

  	
  Guthrie, Oklahoma 73044

  
	
   

  	
   

  	
  Fax:     (   )
            

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
  Robert F. Morgan, Jr.

  
	
   

  	
   

  	
  1900 NW Expressway,
  Suite 450

  
	
   

  	
   

  	
  Oklahoma City, Oklahoma
  73118

  
	
   

  	
   

  	
  Fax:     (405) 840-5183

  

 

16.3.        Representations and
Warranties.  The
respective representations and warranties of the Seller and the Buyer contained
herein or in any certificates or other documents delivered prior to or at the
Closing Date will not be deemed waived or otherwise affected by any
investigation made by any party hereto. 
Each and every such representation and warranty will survive the Closing
Date and will not be terminated or extinguished for a period of two years after
the Closing Date.  This paragraph 16.3
will have no effect on any other obligation of the parties hereto, whether to
be performed before or after the Closing Date.

 

16.4.        Cooperation.  Prior to and at all times following the
termination of this Agreement the parties agree to execute and deliver, or
cause to be executed and delivered, such documents and do, or cause to be done,
such other acts and things as might reasonably be requested by any party to
this Agreement to assure that the benefits of this Agreement are realized by
the parties.

 

16.5.        Press Release.  The Buyer will prepare and issue all press
releases relating to this Agreement and the sale of the Business.  The Seller will refer all inquiries concerning
any transaction contemplated by this Agreement to the Buyer.

 

16.6.        Headings.  The paragraph headings contained in this
Agreement are for reference purposes only and are not intended to affect in any
way the meaning or interpretation of this Agreement.

 

16.7.        Entire Agreement.  This Agreement and any document executed in
connection herewith on or after the date of this Agreement (the “Other
Documents”) constitute the entire agreement between the parties with respect to
the subject matter hereof and there are no agreements, understandings,
warranties or representations except as set forth herein or in the Other
Documents.

 

16.8.        Assignment.  It is agreed that the parties may not assign
such party’s rights nor delegate such party’s duties under this Agreement
without the express written consent of the other parties to this Agreement
which consent will not be unreasonably denied. 
Notwithstanding the foregoing, the Buyer will be permitted to assign
this Agreement for all or part of the Assets to a wholly owned subsidiary
provided the Buyer remains liable for the performance of this Agreement and 

 

17

 

                executes a guaranty for the
Seller financing.  The Seller will be
permitted to sell or assign the Seller’s interest in the Financing Documents
subject to the Buyer’s defenses contained herein.

 

16.9.        Amendment.  Neither this Agreement, nor any of the
provisions hereof can be changed, waived, discharged or terminated, except by
an instrument in writing signed by the party against whom enforcement of the
change, waiver, discharge or termination is sought.

 

16.10.      Severability.  If any clause or provision of this Agreement
is illegal, invalid or unenforceable under any present or future law, the
remainder of this Agreement will not be affected thereby.  It is the intention of the parties that if
any such provision is held to be illegal, invalid or unenforceable, there will
be added in lieu thereof a provision as similar in terms to such provisions as
is possible and to be legal, valid and enforceable.

 

16.11.      Governing Law.  This Agreement will be interpreted, construed
and enforced in accordance with the laws of the State of Oklahoma, regardless
of any applicable principles of conflicts of law.

 

16.12.      Attorney Fees.  If any party institutes an action or
proceeding against any other party relating to the provisions of this
Agreement, the party to such action or proceeding which does not prevail will
reimburse the prevailing party therein for the reasonable expenses of attorneys’
fees and disbursements incurred by the prevailing party.

 

16.13.      Waiver.  Waiver of performance of any obligation or
term contained in this Agreement by any party, or waiver by one party of the
other’s default hereunder will not operate as a waiver of performance of any
other obligation or term of this Agreement or a future waiver of the same
obligation or a waiver of any future default.

 

16.14.      Brokerage.  The Seller represents to the Buyer that the
Seller has dealt with no broker in connection herewith.  The Seller agrees to hold the Buyer harmless
from any claim for brokerage commissions asserted by any other party as a
result of dealings with the Seller.  The
Buyer agrees to indemnify and hold the Seller harmless from any claim for
brokerage commissions asserted by any party as a result of dealings with the
Buyer.

 

16.15.      Counterpart Execution.  This Agreement may be executed in
counterparts, including by telefacsimile, each of which will be deemed an
original document but all of which will constitute a single document.

 

[Signature Pages Follow]

 

18

 

SIGNATURE PAGE TO PHARMACY PURCHASE AGREEMENT

 

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

 

 

	
   

  	
  NEWT’S DISCOUNT PHARMACY, INC.,

  
	
   

  	
  an Oklahoma corporation

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/JEREMY AVANCE

  
	
   

  	
   

  	
   Jeremy Avance, President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /S/JEREMY AVANCE

  
	
   

  	
  Jeremy Avance, individually

  
	
   

  	
   

  	
   

  
	
   

  	
  (together, the “Seller”)

  

 

 

SIGNATURE PAGE TO PHARMACY PURCHASE AGREEMENT

 

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

 

 

	
   

  	
  APOTHECARYRX, LLC,

  
	
   

  	
  an Oklahoma limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /S/LEWIS P. ZEIDNER

  
	
   

  	
       Lewis P. Zeidner, President

  
	
   

  	
   

  	
   

  
	
   

  	
  (the “Buyer”)

  

 

 

	
  SCHEDULES

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule “A”

  	
  –

  	
   

  	
  Business

  
	
  Schedule “2”

  	
  –

  	
   

  	
  Excluded Assets

  
	
  Schedule “6.1”

  	
  –

  	
   

  	
  Seller’s Financial Statements

  
	
  Schedule “6.3”

  	
  –

  	
   

  	
  Liens

  
	
  Schedule “6.4”

  	
  –

  	
   

  	
  Contracts

  
	
  Schedule “6.7”

  	
  –

  	
   

  	
  Insurance

  
	
  Schedule “6.10”

  	
  –

  	
   

  	
  Litigation

  
	
  Schedule “6.11”

  	
  –

  	
   

  	
  Certain Employee Plans

  
	
  Schedule “7”

  	
  –

  	
   

  	
  Buyer’s Financial Statements

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]