AMENDMENT NO. 2 TO PURCHASE AND SALE AGREEMENT AND PLAN OF REORGANIZATION dated August 4, 2009, as amended by Amendment No. 1 dated August 27, 2009 (the “Agreement”)
AMENDMENT
NO. 2
TO
AND
PLAN
OF REORGANIZATION
dated
August 4, 2009, as amended by Amendment No. 1 dated August 27, 2009
(the
“Agreement”)
This Amendment No. 2 to the Agreement
is made and entered into as of November 3, 2009, by and between PureSpectrum,
Inc., a Delaware corporation formerly known as International Medical Staffing,
Inc. (“IMSG”) and PureSpectrum, Inc., a Nevada corporation
(“PSPM”).
A. The
Agreement includes and incorporates various Schedules attached thereto
containing information that is integral to and referenced in the
Agreement;
B. The
Parties desire to update, amend and restate the Schedules in their entirety to
reflect changes to the information therein that have occurred between the
Effective Date and the Closing Date and including, without limitation, as
required by Section 2.3 of the Agreement with respect to Assumed Liabilities and
Section 3.2 of the Agreement with respect to Seller Shares and Seller Warrants
and other Seller Derivative Securities; and
C. The
Parties also desire to correct the paragraph numbering under Section 6.2 of the
Agreement.
NOW, THEREFORE, in consideration of the
premises and the mutual promises herein made, and in consideration of the
covenants herein contained, the Parties agree as follows:
|
1.
|
The
Disclosure Schedules are hereby updated and amended and restated in their
entirety in the form and content attached
hereto.
|
|
2.
|
The
paragraph numbering under Section 6.2 is hereby amended and corrected such
that the last four paragraphs are renumbered from (g), (h), (i) and (j) to
(i), (j), (k) and (l), respectively and Section 6.2(j) (as renumbered
hereby) is hereby amended and restated in its entirety to read as
follows:
|
“(j) the
Buyer shall have delivered to the Seller a certificate to the effect that each
of the conditions specified above in Sections 6.2(a) - (i) is
satisfied in all respects;”
1
|
3.
|
All
terms not defined herein shall have the meaning ascribed to them in the
Agreement.
|
a
Nevada corporation
|
a
Delaware corporation
f/k/a/
International Medical Staffing, Inc.
|
By:
/S/
Xxxxxxx X. Xxxxxx
Name:
Xxxxxxx X. Xxxxxx
Title:
Executive Vice President
|
By:
/S/
Xxx X. Xxxxxxx
Name:
Xxx X. Xxxxxxx
Title:
President
|
Attachments:
Schedule
A - Seller Convertible Notes (Revised as of November 3, 2009)
Schedule
B - Seller Notes (Revised as of November 3, 2009)
Schedule
C - Seller Convertible Debentures (as of November 3, 2009)
Schedule
2.3 - Assumed Liabilities (Revised as of November 3, 2009)
Schedule
3.2 - Seller Derrivative Securities (Revised as of November 3,
2009)
Schedule
3.12 - Seller Employees (Revised as of November 3, 2009)
No
changes are applicable with respect to Schedules 3.4, 3.7, 3.8, 3.9, 3.10, 3.11,
3.13, 4.6 or 4.12
2
Schedule
A
SELLER
CONVERTIBLE NOTES
(Revised
as of November 3, 2009)
Convertible
notes issued to two investors, see explanation (a) below.
Convertible
notes issued to an investor, see explanation (b) below.
|
(a)
|
On
January 27, 2009, the Seller issued two convertible notes in the amount of
$125,000 each. One note is payable to Perlinda Enterprises, LLC
and the other note is payable to Xxxxxxx Xxxxx, LLC. The
original principal balance of each of the notes is outstanding in full and
the notes are repayable on demand any time after July 31, 2009 at 110% of
the face value of $125,000, unless converted. The notes are
convertible into restricted shares at any time after July 31, 2009 at 50%
of the average fair market value of free trading shares for the 5 business
days prior to conversion, not to exceed
$0.25/share.
|
In
addition, since this debt is convertible into equity at the option of the note
holder at beneficial conversion rates, an embedded conversion feature amounting
to $153,250 was recorded at the date of issuance as a discount to the
convertible debt and will be amortized to interest expense over the six month
period to the first conversion date, in accordance with EITF No.
00-27. The interest expense for the amortization of aggregate debt
discount through June 30, 2009 was $208,345.
(b)
|
On
August 14, 2009, the Seller issued a convertible note in the amount of
$213,985 to Xxxxxx Xxxxxx. The original principal balance of
the note is outstanding in full and the note is repayable upon acquiring
financing or on demand any time after January 1, 2010 with interest
accruing at the rate of 8% per annum from September 30,
2009.
|
Lender
may demand conversion of this Note into common stock of PureSpectrum, Inc. at a
conversion price of the lower of $.20 per share or the lowest price per share at
which PureSpectrum, Inc. shall accept a subscription for its common stock
following the date of this Note and before conversion or payment of this Note,
and PureSpectrum, Inc. shall issue such stock to Lender at said conversion rate
in full satisfaction of this Note.
Schedule
B
SELLER
NOTES
(Revised
as of November 3, 2009)
Outstanding
|
|
Balance
|
|
Note
payable to Xxxxxxx X. Xxxxxx, an Officer at 5% interest,
|
$18,996.84
|
payable
upon demand
|
|
Note
payable to Xxxxxx X. Xxxxx, a Shareholder at 5% interest,
|
$26,764.28
|
payable
upon demand
|
Schedule
C
SELLER
CONVERTIBLE DEBENTURES
Name
|
Amount
|
Xxxxx
Xxxxxxxxx
|
$50,000
|
Xxxx
Xxxxx
|
$50,000
|
Xxxxx
Xxxxxxx
|
$50,000
|
Xxxxxxx
Xxxxxx Irrevocable Trust
Xxxxx
Xxxxx-Trustee
|
$50,000
|
Xxxxx
Xxxxxxxx
|
$60,000
|
Xxxxxx
Xxxxx
|
$75,000
|
Xxxx
Xxxxxx
|
$75,000
|
Xxxxxx
Xxxxx
|
$75,000
|
Xxx
Xxxxxxx
|
$100,000
|
Xxxxx
Xxxxxx
|
$100,000
|
Xxxx
Xxxxxxxxx
|
$100,000
|
Xxx
Xxxxxx
|
$100,000
|
Xxxxx
Xxxxxxxx
|
$150,000
|
Xxxxx
Xxxxxx
|
$150,000
|
Xxxxx
Xxxxxx
|
$200,000
|
Xxx
Xxxxxx
|
$200,000
|
Schedule
2.3
SELLER
ASSUMED LIABILITIES
(Revised
as of November 3, 2009)
Vendor
Name
|
Balance
|
|||
Xxxxxx
& Bird LLP
|
$ | 71,657.97 | ||
Bankcard
Center
|
$ | 17,905.29 | ||
Xxxxxxx,
Xxxxx
|
$ | 2,500.00 | ||
Bouhan,
Xxxxxxxx & Levy LLP
|
$ | 33,095.36 | ||
Business
Wire, Inc.
|
$ | 1,162.50 | ||
CCH
|
$ | 8,787.00 | ||
Channel
Marketing Group, Inc.
|
$ | 3,546.47 | ||
D&B
|
$ | 5,000.00 | ||
enerSave
|
$ | 18,000.00 | ||
ePartners,
Inc.
|
$ | 4,663.01 | ||
FCCI
Insurance Company
|
$ | 2,045.93 | ||
FedEx
|
$ | 82.58 | ||
Global
Initiatives 100 Corp
|
$ | 40,378.39 | ||
Xxxxxxxxxx,
Xxxxxxx
|
$ | 5,000.00 | ||
Xxxxxxx
Xxxxx & Co., LLP
|
$ | 17,127.50 | ||
Xxxxxx
Group
|
$ | 179,195.09 | ||
Ikon
Financial Services
|
$ | 1,471.62 | ||
Islands
Technology, Inc.
|
$ | 1,582.95 | ||
Xxxx,
Xxx
|
$ | 2,115.80 | ||
Lebrecht
Group
|
$ | 889.50 | ||
Litetronics
International, Inc.
|
$ | 3,436.69 | ||
Xxxxxxx,
Xxxxxxx
|
$ | 2,500.00 | ||
Xxxxx
Cash
|
$ | 176.13 | ||
Pitney
Xxxxx
|
$ | 158.34 | ||
Quill
Corporation
|
$ | 509.25 | ||
Sam's
Club
|
$ | 100.00 | ||
Xxxxxx,
Inc.
|
$ | 280.00 | ||
Xxxxxxxx
Xxxxxxx LLP
|
$ | 15,305.40 | ||
ULINE,
Inc.
|
$ | 258.48 | ||
United
Marketing and Communications Group
|
$ | 360.00 | ||
UPS
|
$ | 382.58 | ||
UTEK
Corporation
|
$ | 5,000.00 | ||
Xxxxxxx,
Xxx
|
$ | 423.47 | ||
$ | 445,097.30 |
Schedule
3.2
SELLER
DERIVATIVE SECURITIES
(Warrant
Listing as of November 3, 2009)
Number
|
Name
|
Issuance
Date
|
Expiration
Date
|
Exercise
Price
|
Amount
|
1
|
Xxxxxx
Xxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.001
|
100,000
|
2
|
Xxxxxxx
Xxxxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
13,905
|
3
|
Xxxx
Xxxxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
125,118
|
4
|
Xxxxxxx
and Xxxxxxx Xxxxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
9,180
|
5
|
Xxxxxxx
Xxxxxxxx and Xxxxxx Xxxxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
5,940
|
6
|
Xxxxxx
Xxxxxxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
135,000
|
7
|
Xxxxxx
Xxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
270,000
|
8
|
Xxxxxxx
and Xxxx Xxxxxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
8,910
|
9
|
Xxxxxxx
Xxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
270,000
|
10
|
Xxxxx
Xxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
90,180
|
11
|
Xxxxx
Xxxxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
67,500
|
12
|
Xxxxxx
Xxxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
81,000
|
13
|
Xxxxx
Xxxxx
|
24-Jul-06
|
31-Dec-2009
|
$ 0.015
|
40,500
|
14
|
Xxxx
Xxxxxx (Reissued to Xxxxxxx Xxxxxxx on 12/18/07)
|
24-Jul-06
|
31-Dec-2009
|
$ 0.015
|
27,000
|
15
|
Xxxxxxx
Xxxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$ 0.015
|
2,700,000
|
16
|
Xxxx
Xxxxx
|
24-Jul-06
|
31-Dec-2009
|
$ 0.015
|
67,500
|
17
|
Xxxxxx
X'Xxxxx
|
24-Jul-06
|
31-Dec-2009
|
$ 0.015
|
67,500
|
18
|
Xxxxxxx
Rem
|
24-Jul-06
|
31-Dec-2009
|
$ 0.015
|
270,000
|
19
|
Xxxxxxx
Xxxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$ 0.015
|
105,975
|
20
|
Xxxx
Xxxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$ 0.015
|
50,000
|
21
|
Xxxxxxx
Xxxxx
|
24-Jul-06
|
31-Dec-2009
|
$ 0.015
|
50,000
|
22
|
Xxxxx
and Xxxxx Xxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$ 0.015
|
166,050
|
23
|
Savannah
Fire Soccer Club, Inc.
|
24-Jul-06
|
31-Dec-2009
|
$ 0.015
|
13,500
|
24
|
Xxxx
Xxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$ 0.015
|
50,000
|
25
|
Xxxx
Xxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$ 0.015
|
50,000
|
26
|
Xxxxxx
Xxxxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
50,000
|
27
|
Xxxxx
Xxxxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
50,000
|
28
|
Xxxxxxxxx
Xxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
125,000
|
29
|
Xxxxxxxxx
Xxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
125,000
|
00
|
Xxxxx
Xxxxxx
|
00-Xxx-00
|
31-Dec-2009
|
$
0.015
|
125,000
|
Number
|
Name
|
Issuance
Date
|
Expiration
Date
|
Exercise
Price
|
Xxxxxx
|
00
|
Xxxxx
Xxxxxx
|
00-Xxx-00
|
31-Dec-2009
|
$
0.015
|
125,000
|
32
|
Xxxx
Xxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
125,000
|
33
|
Xxxx
Xxxxxx
|
24-Jul-06
|
31-Dec-2009
|
$
0.015
|
125,000
|
34
|
Xxxxx
Xxxxxxx
|
1-Feb-07
|
1-Feb-2010
|
$
0.25
|
300,000
|
35
|
Xxxxxxx
Xxxxx
|
1-Feb-07
|
1-Feb-2010
|
$
0.25
|
100,000
|
36
|
Xxx
Xxxx
|
1-Feb-07
|
1-Feb-2010
|
$
0.25
|
100,000
|
37
|
Xxxx
XxxXxxxxx
|
1-Feb-07
|
1-Feb-2010
|
$
0.25
|
40,000
|
38
|
Xxx
Xxxxxxx
|
1-Feb-07
|
1-Feb-2010
|
$
0.25
|
500,000
|
39
|
Xxxxxxx
Xxxxxx
|
1-Feb-07
|
1-Feb-2010
|
$
0.25
|
300,000
|
40
|
Xxx
Xxxxxxx
|
10-Sep-07
|
1-Sep-2012
|
$
0.015
|
250,000
|
41
|
Xxxxxxx
Xxxxxx
|
10-Sep-07
|
1-Sep-2012
|
$
0.015
|
1,500,000
|
42
|
Xxxx
Xxxxxxx
|
10-Sep-07
|
1-Sep-2012
|
$
0.015
|
50,000
|
43
|
Xxxxx
Xxxxxx
|
10-Sep-07
|
1-Sep-2012
|
$
0.015
|
100,000
|
44
|
Xxx
Xxxx
|
10-Sep-07
|
1-Sep-2012
|
$
0.015
|
100,000
|
45
|
Xxxxxxx
Xxxxx
|
10-Sep-07
|
1-Sep-2012
|
$
0.015
|
100,000
|
46
|
Xxxxx
Xxxxxxx
|
10-Sep-07
|
1-Sep-2012
|
$
0.015
|
500,000
|
47
|
Xxxxxxx
Xxxxxx
|
7-Dec-07
|
7-Dec-2012
|
$
0.015
|
400,000
|
48
|
Ellis,
Painter, Xxxxxxxxx & Xxxxx LLP
|
7-Dec-07
|
7-Dec-2012
|
$
0.015
|
400,000
|
49
|
Xxx
Xxxx
|
15-Jan-08
|
15-Jan-2013
|
$
0.015
|
225,000
|
50
|
Xxxx
Xxxxxxx
|
15-Jan-08
|
15-Jan-2013
|
$
0.015
|
75,000
|
51
|
Xxxxx
Xxxxxxx
|
15-Jan-08
|
15-Jan-2013
|
$
0.015
|
225,000
|
52
|
Xxxxxxx
Xxxxxx
|
15-Jan-08
|
15-Jan-2013
|
$
0.015
|
450,000
|
53
|
Xxx
Xxxxxxx
|
3-Mar-08
|
3-Mar-2013
|
$
0.015
|
2,500,000
|
00
|
Xxxxxxx
Xxxxxx
|
0-Xxx-00
|
3-Mar-2013
|
$
0.015
|
2,500,000
|
55
|
Xxxxx
Xxxxxxx
|
3-Mar-08
|
3-Mar-2013
|
$
0.015
|
1,250,000
|
56
|
Xxxx
Xxxxx
|
9-Oct-08
|
31-Dec-2012
|
$
0.13
|
300,000
|
57
|
Feather
Xxxxxx
|
9-Oct-08
|
31-Dec-2012
|
$
0.13
|
50,000
|
58
|
Xxx
Xxxxxxx
|
9-Oct-08
|
31-Dec-2012
|
$
0.13
|
7,500,000
|
00
|
Xxxxxxx
Xxxxxx
|
0-Xxx-00
|
31-Dec-2012
|
$
0.13
|
6,000,000
|
60
|
Xxxxx
Xxxxxx
|
9-Oct-08
|
31-Dec-2012
|
$
0.13
|
1,500,000
|
61
|
Xxx
Xxxx
|
9-Oct-08
|
31-Dec-2012
|
$
0.13
|
1,000,000
|
62
|
Xxxxx
Xxxxxxx Xxxxxx
|
9-Oct-08
|
31-Dec-2012
|
$
0.13
|
1,000,000
|
63
|
Xxxxx
Xxxxxxx
|
9-Oct-08
|
31-Dec-2012
|
$
0.13
|
1,000,000
|
64
|
Xxxxxxx
Xxxxx
|
9-Oct-08
|
31-Dec-2012
|
$
0.13
|
300,000
|
65
|
Perlinda
Enterprises, LLC
|
27-Jan-09
|
27-Jan-2013
|
$
1.00
|
1,000,000
|
66
|
Xxxxxxx
Xxxxx, LLC
|
27-Jan-09
|
27-Jan-2013
|
$
1.00
|
1,000,000
|
67
|
Perlinda
Enterprises, LLC
|
27-Jan-09
|
27-Jan-2013
|
$
1.50
|
1,000,000
|
Number
|
Name
|
Issuance
Date
|
Expiration
Date
|
Exercise
Price
|
Amount
|
68
|
Xxxxxxx
Xxxxx, LLC
|
27-Jan-09
|
27-Jan-2013
|
$
1.50
|
1,000,000
|
00
|
Xxxxxx
Xxxxxxxxxx
|
5-Mar-09
|
31-Mar-2013
|
$
0.40
|
25,000
|
70
|
Xxxxxxx
Xxxxxx
|
5-Mar-09
|
31-Mar-2013
|
$
0.40
|
25,000
|
71
|
Xxxx
XxXxxx
|
28-Apr-09
|
1-May-2013
|
$
0.69
|
300,000
|
72
|
Xxxx
Xxxxxxxx
|
28-Apr-09
|
1-May-2013
|
$
0.69
|
300,000
|
73
|
Xxxxxxx
Xxxxxxx
|
29-Apr-09
|
1-May-2013
|
$
0.70
|
14,493
|
74
|
Xxxxxx
Xxxxx XX
|
29-Apr-09
|
1-May-2013
|
$
0.70
|
14,493
|
75
|
Xxxxx
Xxxxxxx
|
29-Apr-09
|
1-May-2013
|
$
0.70
|
14,493
|
76
|
Kings
Pointe Capital, Inc. and Xion Corporation, Inc.
|
1-Jun-09
|
1-Jun-2013
|
$
0.10
|
175,000
|
77
|
Kings
Pointe Capital, Inc. and Xion Corporation, Inc.
|
1-Jun-09
|
1-Jun-2013
|
$
0.10
|
175,000
|
78
|
Xxxxxx
Xxxx Xxxxxx
|
13-Jul-09
|
13-Jul-2013
|
$
0.40
|
800,000
|
79
|
Xxxxx
Xxxxxx
|
14-Jul-09
|
14-Jul-2013
|
$
0.35
|
125,000
|
80
|
Xxxxx
Xxxxxxxx
|
20-Jul-09
|
20-Jul-2013
|
$
0.42
|
50,000
|
81
|
Xxxxxx
& Bird, LLP
|
20-Jul-09
|
20-Jul-2013
|
$
0.35
|
125,000
|
82
|
Xxxxx
Xxxxxxxxx
|
20-Jul-09
|
20-Jul-2013
|
$
0.35
|
125,000
|
83
|
Xxxxx
Xxxxxx
|
20-Jul-09
|
20-Jul-2013
|
$
0.42
|
25,000
|
84
|
Xxxxx
Xxxxxxx
|
20-Jul-09
|
20-Jul-2013
|
$
0.42
|
25,000
|
85
|
Xxxxx
Xxxxx
|
21-Aug-09
|
1-Sep-2013
|
$
0.35
|
50,000
|
86
|
Xxxx
XxXxxx
|
21-Aug-09
|
1-Sep-2013
|
$
0.35
|
200,000
|
87
|
Xxxxx
Xxxxxxx Xxxxxx
|
21-Aug-09
|
1-Sep-2013
|
$
0.35
|
200,000
|
88
|
Xxxxx
Xxxx
|
21-Aug-09
|
1-Sep-2013
|
$
0.35
|
300,000
|
89
|
Xxxxx
X. Xxxxxxx
|
24-Aug-09
|
1-May-2013
|
$
0.70
|
14,078
|
90
|
Xxxxxx
X. Xxxxx XX
|
24-Aug-09
|
1-May-2013
|
$
0.70
|
14,078
|
91
|
Xxxxxxx
Xxxxxxx
|
24-Aug-09
|
1-May-2013
|
$
0.70
|
14,078
|
Total
Active: 91
|
Total
Active
Amounts:
|
43,410,471
|
Schedule
3.12
SELLER
EMPLOYEES
(Revised
as of November 3, 2009)
Employee
|
Job
Title
|
Salary
|
Medical
|
Dental
|
Accrued
Sick
Time
|
Accrued
Vacation
|
Xxxxxxxxxx,
Xxxxxxxxx H
|
Marketing
Coordinator
|
32,000
|
Yes
|
Yes
|
92.00
|
79.00
|
Xxxxxx,
Xxxxxxx A
|
Sales
Coordinator
|
30,000
|
Yes
|
Yes
|
68.50
|
92.00
|
Xxxx,
Xxxxx
|
Sales
Program Manager
|
78,000
|
No
|
No
|
48.00
|
4.00
|
Xxxxxxx,
Xxxxx W
|
VP
of Sales
|
125,000
|
Yes
|
Yes
|
176.00
|
196.02
|
XxXxxx,
Xxxxxxx 1
|
VP/CFO
|
125,000
|
Yes
|
Yes
|
64.00
|
92.02
|
Xxxxxxxx,
Xxxxx B
|
Accountant
|
52,000
|
Yes
|
Yes
|
51.00
|
(0.50)
|
Xxxxxx,
Xxxxx W
|
Director
of Accounting/IT
|
105,000
|
Yes
|
Yes
|
112.00
|
8.02
|
Xxxxxx,
Xxxxxxx X
|
Vice
President
|
100/Hour
|
Yes
|
Yes
|
76.00
|
87.00
|
Xxxxxxxx,
Xxxxxxxx J
|
Sales
Program Manager
|
78,000
|
Yes
|
Yes
|
-
|
-
|
Xxxxx,
Xxxxxxx X
|
Sales
Program Manager
|
50,000
|
No
|
No
|
100.00
|
93.50
|
Xxxxxx,
Xxxxx N
|
Supply
Chain Coordinator
|
32,000
|
No
|
No
|
20.75
|
17.00
|
Xxxxxxx,
Xxx L
|
President/CEO
|
217,000
|
Yes
|
Yes
|
176.00
|
200.02
|
Xxxxxxx,
Xxxxx E
|
Executive
Assistant
|
33,000
|
Yes
|
Yes
|
64.00
|
64.00
|
Xxxxxx,
Feather S
|
Office
Manager
|
40,000
|
Yes
|
Yes
|
76.00
|
55.00
|
Xxxxx,
Xxxxxxx X
|
Investor
Relations
|
72,000
|
No
|
No
|
48.00
|
54.00
|