AMENDMENTNO. 2 TO PURCHASEAND SALE AGREEMENT AND PLANOF REORGANIZATION datedAugust 4, 2009, as amended by Amendment No. 1 dated August 27, 2009 (theAgreement)
EX-2.2 3 v165489_ex2-2.htm
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”)
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;”
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| | 3. | All terms not defined herein shall have the meaning ascribed to them in the Agreement. |
| PURESPECTRUM, INC. a Nevada corporation | PURESPECTRUM, INC. a Delaware corporation f/k/a/ International Medical Staffing, Inc. |
| By: /S/ William R. Norton Name: William R. Norton Title: Executive Vice President | By: /S/ Lee L. Vanatta Name: Lee L. Vanatta 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
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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 Barclay Lyons, 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 Thomas Donino. 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 William R. Norton, an Officer at 5% interest, | $18,996.84 |
| payable upon demand | |
| Note payable to Darryl E. Smith, a Shareholder at 5% interest, | $26,764.28 |
| payable upon demand |
Schedule C
SELLER CONVERTIBLE DEBENTURES
| Name | Amount |
| Brett Rosenberg | $50,000 |
| Chad Blank | $50,000 |
| Scott Benedon | $50,000 |
| Suzanne Berman Irrevocable Trust Larry Bober-Trustee | $50,000 |
| Mario Pugliese | $60,000 |
| Andrew Brown | $75,000 |
| Mike Nathan | $75,000 |
| Harvey Brown | $75,000 |
| Ken Dorazio | $100,000 |
| Kevin Gerety | $100,000 |
| Rony Schlapfer | $100,000 |
| Tom Pisano | $100,000 |
| Scott Schaefer | $150,000 |
| Steve Haller | $150,000 |
| Frank Donino | $200,000 |
| Tom Donino | $200,000 |
Schedule 2.3
SELLER ASSUMED LIABILITIES
(Revised as of November 3, 2009)
| Vendor Name | Balance | |||
| Alston & Bird LLP | $ | 71,657.97 | ||
| Bankcard Center | $ | 17,905.29 | ||
| Betsill, David | $ | 2,500.00 | ||
| Bouhan, Williams & 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 | ||
| Goodfellow, Suzanne | $ | 5,000.00 | ||
| Hancock Askew & Co., LLP | $ | 17,127.50 | ||
| Hauser Group | $ | 179,195.09 | ||
| Ikon Financial Services | $ | 1,471.62 | ||
| Islands Technology, Inc. | $ | 1,582.95 | ||
| King, Ray | $ | 2,115.80 | ||
| Lebrecht Group | $ | 889.50 | ||
| Litetronics International, Inc. | $ | 3,436.69 | ||
| Mazzone, Dominic | $ | 2,500.00 | ||
| Petty Cash | $ | 176.13 | ||
| Pitney Bowes | $ | 158.34 | ||
| Quill Corporation | $ | 509.25 | ||
| Sam's Club | $ | 100.00 | ||
| Speros, Inc. | $ | 280.00 | ||
| Troutman Sanders LLP | $ | 15,305.40 | ||
| ULINE, Inc. | $ | 258.48 | ||
| United Marketing and Communications Group | $ | 360.00 | ||
| UPS | $ | 382.58 | ||
| UTEK Corporation | $ | 5,000.00 | ||
| Vanatta, Lee | $ | 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 | Rodney Pierce | 24-Jul-06 | 31-Dec-2009 | $ 0.001 | 100,000 |
| 2 | Anthony Costrini | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 13,905 |
| 3 | Anna Costrini | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 125,118 |
| 4 | Francis and Mildred Crandall | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 9,180 |
| 5 | Francis Crandall and Roland Crandall | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 5,940 |
| 6 | Birgit Fillingame | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 135,000 |
| 7 | Robert Gunn | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 270,000 |
| 8 | Willard and Edna Haberkamp | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 8,910 |
| 9 | Stephen Kay | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 270,000 |
| 10 | Billy Jones | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 90,180 |
| 11 | David Maretsky | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 67,500 |
| 12 | Andrew Maggion | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 81,000 |
| 13 | James Mason | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 40,500 |
| 14 | John Miller (Reissued to Kathryn Johnson on 12/18/07) | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 27,000 |
| 15 | Richard Meuller | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 2,700,000 |
| 16 | Hugh Moore | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 67,500 |
| 17 | Arthur O'Neill | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 67,500 |
| 18 | Richard Rem | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 270,000 |
| 19 | Richard Turoski | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 105,975 |
| 20 | Paul Johnson | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 50,000 |
| 21 | Stephen Weeks | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 50,000 |
| 22 | Duane and Tammy Conley | 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 | Judy Walker | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 50,000 |
| 25 | Judy Walker | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 50,000 |
| 26 | Rhyann Williams | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 50,000 |
| 27 | Brynn Williams | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 50,000 |
| 28 | Stephanie Joynes | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 125,000 |
| 29 | Stephanie Joynes | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 125,000 |
| 30 | Bryce Norton | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 125,000 |
| Number | Name | Issuance Date | Expiration Date | Exercise Price | Amount |
| 31 | Bryce Norton | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 125,000 |
| 32 | Eric Norton | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 125,000 |
| 33 | Eric Norton | 24-Jul-06 | 31-Dec-2009 | $ 0.015 | 125,000 |
| 34 | Garth Kullman | 1-Feb-07 | 1-Feb-2010 | $ 0.25 | 300,000 |
| 35 | Stephen Weeks | 1-Feb-07 | 1-Feb-2010 | $ 0.25 | 100,000 |
| 36 | Ray King | 1-Feb-07 | 1-Feb-2010 | $ 0.25 | 100,000 |
| 37 | Beth DelNostro | 1-Feb-07 | 1-Feb-2010 | $ 0.25 | 40,000 |
| 38 | Lee Vanatta | 1-Feb-07 | 1-Feb-2010 | $ 0.25 | 500,000 |
| 39 | William Norton | 1-Feb-07 | 1-Feb-2010 | $ 0.25 | 300,000 |
| 40 | Lee Vanatta | 10-Sep-07 | 1-Sep-2012 | $ 0.015 | 250,000 |
| 41 | William Norton | 10-Sep-07 | 1-Sep-2012 | $ 0.015 | 1,500,000 |
| 42 | Sean Vanatta | 10-Sep-07 | 1-Sep-2012 | $ 0.015 | 50,000 |
| 43 | Kevin Barner | 10-Sep-07 | 1-Sep-2012 | $ 0.015 | 100,000 |
| 44 | Ray King | 10-Sep-07 | 1-Sep-2012 | $ 0.015 | 100,000 |
| 45 | Stephen Weeks | 10-Sep-07 | 1-Sep-2012 | $ 0.015 | 100,000 |
| 46 | Garth Kullman | 10-Sep-07 | 1-Sep-2012 | $ 0.015 | 500,000 |
| 47 | Jeffrey Harris | 7-Dec-07 | 7-Dec-2012 | $ 0.015 | 400,000 |
| 48 | Ellis, Painter, Ratterree & Adams LLP | 7-Dec-07 | 7-Dec-2012 | $ 0.015 | 400,000 |
| 49 | Ray King | 15-Jan-08 | 15-Jan-2013 | $ 0.015 | 225,000 |
| 50 | Sean Vanatta | 15-Jan-08 | 15-Jan-2013 | $ 0.015 | 75,000 |
| 51 | Garth Kullman | 15-Jan-08 | 15-Jan-2013 | $ 0.015 | 225,000 |
| 52 | William Norton | 15-Jan-08 | 15-Jan-2013 | $ 0.015 | 450,000 |
| 53 | Lee Vanatta | 3-Mar-08 | 3-Mar-2013 | $ 0.015 | 2,500,000 |
| 54 | William Norton | 3-Mar-08 | 3-Mar-2013 | $ 0.015 | 2,500,000 |
| 55 | Garth Kullman | 3-Mar-08 | 3-Mar-2013 | $ 0.015 | 1,250,000 |
| 56 | Jeff Smith | 9-Oct-08 | 31-Dec-2012 | $ 0.13 | 300,000 |
| 57 | Feather Wathen | 9-Oct-08 | 31-Dec-2012 | $ 0.13 | 50,000 |
| 58 | Lee Vanatta | 9-Oct-08 | 31-Dec-2012 | $ 0.13 | 7,500,000 |
| 59 | William Norton | 9-Oct-08 | 31-Dec-2012 | $ 0.13 | 6,000,000 |
| 60 | Susan Norton | 9-Oct-08 | 31-Dec-2012 | $ 0.13 | 1,500,000 |
| 61 | Ray King | 9-Oct-08 | 31-Dec-2012 | $ 0.13 | 1,000,000 |
| 62 | David Michael Conner | 9-Oct-08 | 31-Dec-2012 | $ 0.13 | 1,000,000 |
| 63 | Garth Kullman | 9-Oct-08 | 31-Dec-2012 | $ 0.13 | 1,000,000 |
| 64 | Stephen Weeks | 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 | Barclay Lyons, 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 | Barclay Lyons, LLC | 27-Jan-09 | 27-Jan-2013 | $ 1.50 | 1,000,000 |
| 69 | Hayley Churchwell | 5-Mar-09 | 31-Mar-2013 | $ 0.40 | 25,000 |
| 70 | Kirsten Fishel | 5-Mar-09 | 31-Mar-2013 | $ 0.40 | 25,000 |
| 71 | Greg McLean | 28-Apr-09 | 1-May-2013 | $ 0.69 | 300,000 |
| 72 | Nick Peragine | 28-Apr-09 | 1-May-2013 | $ 0.69 | 300,000 |
| 73 | Dominic Mazzone | 29-Apr-09 | 1-May-2013 | $ 0.70 | 14,493 |
| 74 | Robert James II | 29-Apr-09 | 1-May-2013 | $ 0.70 | 14,493 |
| 75 | David Betsill | 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 | Warren Pete Musser | 13-Jul-09 | 13-Jul-2013 | $ 0.40 | 800,000 |
| 79 | Larry Hauser | 14-Jul-09 | 14-Jul-2013 | $ 0.35 | 125,000 |
| 80 | Jason Moschner | 20-Jul-09 | 20-Jul-2013 | $ 0.42 | 50,000 |
| 81 | Alston & Bird, LLP | 20-Jul-09 | 20-Jul-2013 | $ 0.35 | 125,000 |
| 82 | David Natarelli | 20-Jul-09 | 20-Jul-2013 | $ 0.35 | 125,000 |
| 83 | Megan Suarez | 20-Jul-09 | 20-Jul-2013 | $ 0.42 | 25,000 |
| 84 | Sarah Vincent | 20-Jul-09 | 20-Jul-2013 | $ 0.42 | 25,000 |
| 85 | Daryl Smith | 21-Aug-09 | 1-Sep-2013 | $ 0.35 | 50,000 |
| 86 | Greg McLean | 21-Aug-09 | 1-Sep-2013 | $ 0.35 | 200,000 |
| 87 | David Michael Conner | 21-Aug-09 | 1-Sep-2013 | $ 0.35 | 200,000 |
| 88 | David Hill | 21-Aug-09 | 1-Sep-2013 | $ 0.35 | 300,000 |
| 89 | David M. Betsill | 24-Aug-09 | 1-May-2013 | $ 0.70 | 14,078 |
| 90 | Robert E. James II | 24-Aug-09 | 1-May-2013 | $ 0.70 | 14,078 |
| 91 | Dominic Mazzone | 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 |
| Churchwell, Catherine H | Marketing Coordinator | 32,000 | Yes | Yes | 92.00 | 79.00 |
| Fishel, Kirsten A | Sales Coordinator | 30,000 | Yes | Yes | 68.50 | 92.00 |
| Hill, David | Sales Program Manager | 78,000 | No | No | 48.00 | 4.00 |
| Kullman, Garth W | VP of Sales | 125,000 | Yes | Yes | 176.00 | 196.02 |
| McLean, Gregory 1 | VP/CFO | 125,000 | Yes | Yes | 64.00 | 92.02 |
| Moschner, Jason B | Accountant | 52,000 | Yes | Yes | 51.00 | (0.50) |
| Norton, Susan W | Director of Accounting/IT | 105,000 | Yes | Yes | 112.00 | 8.02 |
| Norton, William R | Vice President | 100/Hour | Yes | Yes | 76.00 | 87.00 |
| Peragine, Nicholas J | Sales Program Manager | 78,000 | Yes | Yes | - | - |
| Smith, Jeffrey A | Sales Program Manager | 50,000 | No | No | 100.00 | 93.50 |
| Suarez, Megan N | Supply Chain Coordinator | 32,000 | No | No | 20.75 | 17.00 |
| Vanatta, Lee L | President/CEO | 217,000 | Yes | Yes | 176.00 | 200.02 |
| Vincent, Sarah E | Executive Assistant | 33,000 | Yes | Yes | 64.00 | 64.00 |
| Wathen, Feather S | Office Manager | 40,000 | Yes | Yes | 76.00 | 55.00 |
| Weeks, Stephen E | Investor Relations | 72,000 | No | No | 48.00 | 54.00 |
