Document:

EXHIBIT 10.6

 

PROMISSORY NOTE

 

	
  $400,000.00

  	
   

  	
  Oklahoma City, Oklahoma

  
	
   

  	
   

  	
  March 26, 2008

  

 

FOR VALUE RECEIVED,
APOTHECARYRX, LLC, an Oklahoma limited liability company (the “Borrower”),
promises to pay to the order of NEWT’S DISCOUNT PHARMACY, INC., an Oklahoma
corporation (the “Lender”), at 102 W. Noble Avenue, Guthrie, Oklahoma 73044, or
at such other place as may be designated in writing by the holder of this Note,
the principal sum of Four Hundred Thousand Dollars ($400,000), together with
interest thereon at the rate hereafter specified, payable as follows:

 

The unpaid principal balance of this Note
will bear interest from the date of this Note until payment in full at a per
annum rate equal to six percent (6.0%). 
All interest will be computed as a per diem charge for the actual number
of days elapsed on the basis of a year consisting of three hundred sixty-five
(365) or three hundred sixty-six (366) days, as the case may be.

 

Provided no uncured default has occurred
under this Note, the unpaid principal balance of this Note plus accrued
interest thereon will be paid by the Borrower paying to the Lender twelve (12)
blended quarterly installments of principal and interest equal to Thirty Six
Thousand Six Hundred Seventy Two Dollars ($36,672.00), commencing on June 26,
2008, and on the twenty sixth (26th) day of each successive September,
December, March and June thereafter through March 26, 2011 (the “Maturity
Date”).  In the event of an adjustment,
prepayment or set-off against the unpaid principal balance of this Note, the
annual payment will be recalculated to the amount which would fully amortize
the unpaid principal balance of this Note on such date, together with accrued
interest thereon, over a term ending on the Maturity Date.  Notwithstanding anything to the contrary, the
entire unpaid principal balance of this Note and all accrued and unpaid
interest will be due and payable on the Maturity Date.

 

Each payment will be applied
first to the payment of interest on the unpaid principal and the balance, if any,
will be applied to the unpaid principal balance of this Note.  The Borrower will have the right to prepay
this Note in whole or in part at any time without premium or penalty, but with
interest on the unpaid principal balance accrued to the date of prepayment.

 

 

The Borrower and the Lender
also agree that the Borrower’s obligations under this Note may be set-off
against any amounts owing to the Borrower under that certain Pharmacy Purchase
Agreement (the “Agreement”) dated March 24, 2008, among the Borrower, the
Lender and affiliates of the Lender, subject to the limitations set forth in
the Agreement.

 

The Borrower agrees that if,
and as often as, this Note is placed in the hands of an attorney for collection
or to defend or enforce any of the holder’s rights hereunder or under any
instrument securing payment of the same, the Borrower will pay to such holder
its reasonable attorneys’ fees and all expenses incurred in connection
therewith.  This Note is to be construed
according to the laws of the State of Oklahoma.

 

This Note is issued subject
to the terms of the Agreement.  Payment
of this Note is secured by the Financing Documents as more fully described in
the Agreement.  If the breach of any
provision of this Note is not cured within fifteen (15) days after written
notice by the holder to the Borrower, then on written notice by the holder to
the Borrower, the entire unpaid indebtedness evidenced by this Note will become
due, payable and collectible then or thereafter as the holder may elect, regardless
of the date of maturity of this Note. 
Failure by the holder to exercise such option will not constitute a
waiver of the right to exercise the same in the event of any subsequent
default.

 

The makers, endorsers,
sureties, guarantors and all other persons who may become liable for all or any
part of this Note severally waive presentment for payment and protest.  The foregoing parties consent to any
extension of time (whether one or more) of payment hereof, the modification
(whether one or more) of payment hereof, release or substitution of all or part
of the security for the payment hereof or release of any party liable for
payment of this Note.  Any such extension
or release may be made without notice to any such party and without discharging
such party’s liability hereunder.

 

Except as otherwise defined
herein, all terms defined or referenced in the Agreement will have the same
meanings herein as therein.

 

IN WITNESS WHEREOF, the
Borrower has executed this instrument effective the date first above written.

 

	
   

  	
  APOTHECARYRX, LLC,

  
	
   

  	
  an Oklahoma limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /S/LEWIS P. ZEIDNER

  
	
   

  	
   

  	
  Lewis P. Zeidner,
  President

  
	
   

  	
   

  
	
   

  	
  (the “Borrower”)

  

 

2EXHIBIT 10.7

 

PHARMACY
PURCHASE AGREEMENT

 

THIS AGREEMENT is made
effective the 24th day of March, 2008, among APOTHECARYRX, LLC, an Oklahoma
limited liability company (the “Buyer”), PENDERGRAFT DRUGS, INC., an Oklahoma
corporation (the “Company”) and GARY NICHOLS, an individual (“Nichols” 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 Oklahoma City, 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 “Professional Discount Pharmacy” and “Pendergraft Drugs”), 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) Five Hundred Fifty
Thousand Dollars ($550,000.00) (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:

 

2

 

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 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 Nichols.  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 9 or 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 

 

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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 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 

 

4

 

Seller hereby agrees to
indemnify and hold harmless the Buyer from all such amounts.

 

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 

 

5

 

which in any way would
materially affect all or any portion of the Business or the Assets.

 

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 

 

6

 

employment agreements with
any officers, directors, employees, retired employees or former employees of
the Seller.

 

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 

 

7

 

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
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 

 

8

 

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 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.

 

9

 

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 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 

 

10

 

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 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, Nichols 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 

 

11

 

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.

 

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 Newt’s
Discount Pharmacy, Inc. (the “NDP 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

 

12

 

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.

 

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.

 

13

 

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.

 

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 

 

14

 

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.

 

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 

 

15

 

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 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

  

 

16

 

	
  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

  
	
   

  	
   

  	
   

  
	
  To the Seller:

  	
   

  	
  Pendergraft Drugs, Inc.

  
	
   

  	
   

  	
  Attn: Gary Nichols

  
	
   

  	
   

  	
  P.O. Box 722580

  
	
   

  	
   

  	
  Norman, Oklahoma 73070

  
	
   

  	
   

  	
  Fax:     (405) 310-2532

  
	
   

  	
   

  	
   

  
	
  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.

 

17

 

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
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.

 

18

 

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]

 

19

 

SIGNATURE PAGE TO PHARMACY PURCHASE AGREEMENT

 

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

 

 

	
   

  	
  PENDERGRAFT DRUGS, INC.,

  
	
   

  	
  an Oklahoma corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/GARY NICHOLS

  
	
   

  	
   

  	
  Gary Nichols, President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /S/GARY NICHOLS

  
	
   

  	
  GARY NICHOLS, 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"}]]