Exhibit 2.2
Aug 3, 2000
Andrex Industries Corp.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Gentlemen:
Reference is made to the Asset Purchase Agreement (the "Asset Purchase
Agreement"), dated September 2, 1999, between Levcor International, Inc.
("Levcor") and Andrex Industries Corp. ("Andrex"). Other terms used in this
letter and defined in the Asset Purchase Agreement are so used as so defined.
Promissory Note 1 in the original principal amount of $282,450 was issued by
Levcor and delivered to Andrex at the Closing. Promissory Note 2 was never
issued by Levcor and the original and adjusted principal amounts thereof, and
the amount which remains due and owing thereunder, are subjects of dispute
between Levcor and Andrex.
This letter will confirm the understanding of the parties hereto as follow:
1. In consideration of the cancellation of Promissory Note 1 and the discharge
and satisfaction of any and all obligations under Promissory Note 1 and
Promissory Note 2 and any and all other amounts, if any, owed by Levcor to
Andrex pursuant to the Asset Purchase Agreement, Levcor hereby agrees to
pay Andrex an amount equal to $900,000, payable in 18 equal monthly
installments commencing August 1, 2000, together with accrued interest at
the rate of 6 1/2% per annum from April 1, 2000 payable on each principal
payment date.
2. Andrex delivers Promissory Note 1 to Levcor, marked "Satisfied in Full."
3. Levcor, on behalf of itself and its successors and assigns, hereby releases
and discharges Andrex, and its successors and assigns, and its directors,
officers, shareholders and employees (collectively, the "Andrex Parties"),
from all actions, causes of actions, suits, debts, dues, sums of money,
agreements, promises, variances, trespasses, damages, judgments, extents,
executions, claims and demands whatsoever, in law, or equity (collectively,
"Claims"), which Levcor ever had, now has or hereafter can, shall or may
Andrex Industries Corp.
Aug 3, 2000
Page 2
have against the Andrex Parties (or any of them) for, upon, or by reason of
any matter, cause or thing whatsoever from the beginning of the world to
the date of this letter arising out of the Asset Purchase Agreement or
Promissory Note 1 or Promissory Note 1 or Promissory Note 2.
4. Andrex, on behalf of itself and its successors and assigns, hereby releases
and discharges Levcor, and its successors and assigns, and its directors,
officers, shareholders and employees (collectively, the "Levcor Parties"),
from all Claims which Andrex ever had now has or hereafter can, shall or
may have against the Levcor Parties (or any of them) for, upon, or by
reason of any matter, cause or thing whatsoever from the beginning of the
world to the date of this letter arising out of the Asset Purchase
Agreement or Promissory Note 1 or Promissory Note 2.
5. Andrex, on behalf of itself and its successors and assigns, hereby releases
and discharges Xxxxxx X. Xxxxxxxx, and his heirs, distributees, executors,
administrators, successors and assigns, from all Claims which Andrex ever
had, now has of hereafter can shall or may have against Xxxxxx X. Xxxxxxxx
for, upon, or by reason of any matter, cause or thing whatsoever from the
beginning of the world to the date of this letter arising out of the Asset
Purchase Agreement of Promissory Note 1 or Promissory Note 2.
LEVCOR INTERNATIONAL, INC.
By /s/ Xxxxxx X. Xxxxxxxx
--------------------------------
Name: Xxxxxx X Xxxxxxxx
Title: Chairman and President
AGREED TO:
ANDREX INDUSTRIES CORP.
By: /s/ Xxxxxxx Xxxxxxxxxx
--------------------------------
Name: Xxxxxxx Xxxxxxxxxx
Title: President
Andrex Industries Corp.
Aug 3, 2000
Page 3
GUARANTEE
In order to induce Andrex to agree to the foregoing letter, Xxxxxx X. Xxxxxxxx,
hereby irrevocably and unconditionally guarantees the due and punctual payment
by Levcor of all its obligations under paragraph 1 of the foregoing letter.
/s/ Xxxxxx X. Xxxxxxxx
--------------------------
Xxxxxx X. Xxxxxxxx
Levcor International, Inc.
Amortization - Andrex Final Note @ 6.5%
Interest - Accrual 220-107, Expense 800-109
Principal - Account 250-007 and 260-007
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Principal Principal Interest Total Annual Daily Interest
Date of Advance Balance Payments Charge Payment Rate Rate Days
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April-00 900,000.00 4,875.00 6.50% 0.01806% 30
May-00 900,000.00 5,037.50 6.50% 0.01806% 31
June-00 900,000.00 4,875.00 6.50% 0.01806% 30
July-00 900,000.00 5,037.50 6.50% 0.01806% 31
August-00 850,000.00 50,000.00 4,757.64 69,825.00 6.50% 0.01806% 31
September-00 800,000.00 50,000.00 4,333.33 54,757.64 6.50% 0.01806% 30
October-00 750,000.00 50,000.00 4,197.92 54,333.33 6.50% 0.01806% 31
November-00 700,000.00 50,000.00 3,791.67 54,197.92 6.50% 0.01806% 30
December-00 650,000.00 50,000.00 3,638.19 53,791.67 6.50% 0.01806% 31
January-01 600,000.00 50,000.00 3,358.33 53,638.19 6.50% 0.01806% 31
February-01 550,000.00 50,000.00 2,780.56 53,358.33 6.50% 0.01806% 28
March-01 500,000.00 50,000.00 2,798.61 52,780.56 6.50% 0.01806% 31
April-01 450,000.00 50,000.00 2,437.50 52,798.61 6.50% 0.01806% 30
May-01 400,000.00 50,000.00 2,238.89 52,437.50 6.50% 0.01806% 31
June-01 350,000.00 50,000.00 1,895.83 52,238.89 6.50% 0.01806% 30
July-01 300,000.00 50,000.00 1,679.17 51,895.83 6.50% 0.01806% 31
August-01 250,000.00 50,000.00 1,399.31 51,679.17 6.50% 0.01806% 31
September-01 200,000.00 50,000.00 1,083.33 51,399.31 6.50% 0.01806% 30
October-01 150,000.00 50,000.00 839.58 51,083.33 6.50% 0.01806% 31
November-01 100,000.00 50,000.00 541.67 50,839.58 6.50% 0.01806% 30
December-01 50,000.00 50,000.00 279.86 50,541.67 6.50% 0.01806% 31
January-02 0.00 50,000.00 0.00 50,279.86 6.50% 0.01806% 31
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900,000.00 61,876.39 961,876.39
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