AMENDMENT TO ASSET PURCHASE AGREEMENT
Exhibit
2.2
AMENDMENT
TO ASSET PURCHASE AGREEMENT
THIS
AMENDMENT is made this 24th day of November, 2008, at San Jose, California, by
and among CORE SYSTEMS INCORPORATED, a California corporation ("Buyer"); C
ACQUISITION CORP., a Delaware corporation ("Seller"); and IMPLANT SCIENCES
CORPORATION, a Massachusetts corporation ("Shareholder").
R E C I T
A L S:
A. Buyer,
Seller and Shareholder are parties to that certain Asset Purchase Agreement
among the parties dated November 14, 2008 ("Asset Purchase
Agreement").
B. The
parties wish to amend the Asset Purchase Agreement in certain respects, as
provided in this Amendment.
NOW,
THEREFORE, the parties agree as follows:
1. Section
1.3 of Article I of the Asset Purchase Agreement is amended in its entirety to
read:
"1.3 Buyer
shall pay to Seller as consideration for the Assets (the "Purchase Price") and
the restriction on competition contained in section 7.6 below, the sum of three
million dollars ($3,000,000), payable as follows:
a. | $250,000 (the “Signing Payment”), receipt of which is hereby acknowledged; | |
|
b.
|
$1,125,000
at the Closing (as defined in Section 6.1 (the “Closing Payment”),
$800,000 of which shall be wire-transferred directly to Laurus Master
Fund, Ltd. ("Laurus") in satisfaction of certain indebtedness owed by
Seller to Laurus; and
|
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c. | Buyer's promissory note in the principal amount of one million six hundred twenty-five thousand dollars ($1,625,000) in the form and upon the terms and conditions of the promissory note attached as Exhibit D (the "Note"), which shall be secured by all of the assets of the Buyer (including the Assets) upon the terms and conditions set forth in the form of security agreement attached as Exhibit E (the "Security Agreement"). |
2. Section
1.4 of Article I of the Asset Purchase Agreement is amended in its entirety to
read:
"1.4 The
Purchase Price shall be allocated among the Assets as set forth below, and Buyer
and Seller agree to use this allocation for all federal and state income tax
reporting purposes:
Assets Amount
Tangible
Property $800,000
Inventory $700,000
Receivables $900,000
Intangible
Property $100,000
Restriction
on
Competition $500,000
3. Section
3.1(l) of Articles III of the Agreement is amended in its entirety to
read:
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"l. [IMX/WW] Except
as set forth in Schedule 3.1(l), the Receivables, as itemized on the Schedule of
Receivables attached to Schedule 3.1(l), are valid receivables subject to no
setoffs or counterclaims, are current and are reasonably expected to be
collected in accordance with their terms at their recorded amounts, subject only
to the reserve for bad debts as set forth in the Financial
Statements."
3. The
Note (Exhibit D) and the Security Agreement (Exhibit E) are superseded and
replaced by the Note and Security Agreement attached as Exhibits D and E to this
Amendment.
4. The
following subsection (e) shall be added to Section 4.1 of Article IV of the
Agreement:
"(e) Laurus
shall have released any lien or security interest held by it in the Assets and
provided written evidence of such release satisfactory to Buyer's
counsel."
5. Section
6.1 of Article VI of the Agreement is hereby amended to provide that the Closing
Date shall be November 24, 2008, effective as of November 21, 2008 as to all
rights and obligations of the parties except for the Note and Security Agreement
which shall be dated and effective as of November 24, 2008.
6. To
the extent of a conflict between this Amendment and the provisions of the Asset
Purchase Agreement, the provisions of this Amendment shall
control. Except as expressly changed in this Amendment, the
provisions of the Asset Purchase Agreement shall remain the same.
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IN
WITNESS WHEREOF, the parties have duly executed this Amendment as of the date
and year first above written.
SELLER:
C
ACQUISITION CORP.,
a
Delaware corporation
By: /s/ Xxxxxxx X.
Thomas_____________
BUYER:
CORE
SYSTEMS INCORPORATED,
a
California corporation
By:/s/ D. W.
Lindsey______________
/s/ Xxxx
Xxxxxxxx
SHAREHOLDER:
IMPLANT
SCIENCES CORPORATION,
a
Massachusetts corporation
By:/s/ Xxxxxxx
X. Thomas____________
CERTIFICATION
OF XXXX XXXXXXXX:
I, Xxxx
Xxxxxxxx, hereby certify to Buyer, Seller and Shareholder that the
representations and
Warranties
contained in Section 3.1(l) above are, to my knowledge, true and
correct.
/s/ Xxxx
Wriggins__________________
Xxxx
Xxxxxxxx
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