Document:

imxform8k100114_ex10-2.htm

    
      
         

      

      
         

        
          

        

      

      
         

        
          EXHIBIT
10.2

        

      

    

    AMENDED AND
RESTATED  PROMISSORY NOTE

     

    $5,000,000 January
12, 2010

     

    FOR VALUE RECEIVED, the
undersigned, IMPLANT SCIENCES
CORPORATION, a Massachusetts corporation (“Borrower”), promises to pay to
the order of DMRJ GROUP, LLC
(“Lender”), at
the place and times provided in the Credit Agreement referred to below, the
principal sum of $5,000,000 or, if less, the unpaid principal amount of all
Advances made by Lender, in its sole discretion, from time to time pursuant to
that certain Credit Agreement, dated as of September 4, 2009 (as amended,
supplemented, modified or restated from time to time, the “Credit Agreement”) among the
Borrower, the Guarantors and Lender.  Borrower also promises to pay
interest on the unpaid outstanding principal amount from the date hereof until
this note (the “Note”)
is paid in full calculated in the manner and payable at the times and at the
rates as are, from time to time, applicable pursuant to and in accordance with
the Credit Agreement.  This note amends and restates, but does not
extinguish, impair, novate or discharge the obligations evidenced by, that
certain Promissory Note dated September 4, 2009 (the “Closing Date”) in the
original principal amount of Three Million Dollars ($3,000,000) executed by
Borrower in favor of Lender.  Capitalized terms used herein and not
defined herein shall have the meanings assigned thereto in the Credit
Agreement.

     

    Borrower
acknowledges and agrees that the facility is not a committed credit facility and
the advances under the facility, if any, shall be made by Lender in its sole
discretion.  Lender shall have the right to refuse to make any
advances at any time and for any reason without prior notice to
Borrower.

     

    The
unpaid principal amount of this Note from time to time outstanding is subject to
mandatory repayment from time to time as provided in the Credit Agreement and
shall bear interest as provided in Article II of the
Credit Agreement.  This Note may not be voluntarily prepaid except as
provided in the Credit Agreement.  All payments of principal and
interest on this Note shall be payable in lawful currency of the United States
of America in immediately available funds to account or place as Lender shall
direct from time to time by notice to the Company.

     

    This Note
is entitled to the benefits of, and evidences Obligations incurred under, the
Credit Agreement, to which reference is made for a description of the security
for this Note and for a statement of the terms and conditions on which Borrower
is permitted and required to make prepayments and repayments of principal of the
Obligations evidenced by this Note and on which such Obligations may be declared
to be immediately due and payable.

     

    This Note
shall be construed in accordance with and governed by the laws of the State of
New York without regard to conflict of law principles that would result in the
application of other law, and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with the laws of the State
of New York.

     

    BORROWER HEREBY
IRREVOCABLY AND UNCONDITIONALLY SUBMITS ITSELF AND ITS PROPERTY TO THE
EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN
THE

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

      BOROUGH
OF MANHATTAN IN THE CITY OF NEW YORK, THE FEDERAL COURTS OF THE UNITED STATES OF
AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK OR ANY OTHER FEDERAL COURT SITTING
IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK AND APPELLATE COURTS FROM
ANY THEREOF; PROVIDED THAT NOTHING
CONTAINED IN THIS NOTE WILL PREVENT LENDER FROM BRINGING ANY ACTION, ENFORCING
ANY AWARD OR JUDGMENT OR EXERCISING ANY RIGHTS AGAINST ANY LOAN PARTY OR AGAINST
ANY PROPERTY WITHIN ANY OTHER COUNTY, STATE OR OTHER FOREIGN OR DOMESTIC
JURISDICTION.

    

     

    Borrower
hereby waives, to the fullest extent permitted by Applicable Law, all
requirements as to diligence, presentment, demand of payment, protest and
(except as required by the Credit Agreement) notice of any kind with respect to
this Note.

     

    TO THE MAXIMUM EXTENT PERMITTED BY
APPLICABLE LAW, BORROWER HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM
OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS NOTE OR ANY OF THE
TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY
CLAIMS.  BORROWER REPRESENTS THAT IT HAS REVIEWED THIS WAIVER AND
KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL.  IN THE EVENT OF LITIGATION, A COPY OF THIS NOTE
MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT.  THIS
PROVISION IS A MATERIAL INDUCEMENT TO LENDER TO ENTER INTO THE TRANSACTIONS
CONTEMPLATED HEREBY AND THE CREDIT AGREEMENT.  THIS PROVISION SHALL NOT IN ANY WAY
AFFECT, WAIVE, LIMIT, AMEND OR MODIFY LENDER’S ABILITY TO PURSUE ITS REMEDIES AS
SET FORTH IN THIS NOTE AND THE CREDIT AGREEMENT.

     

    This Note
shall be binding upon Borrower and its successors and permitted assigns and
shall inure to the benefit of Lender and its successors and
assigns.  Borrower may not assign or transfer any of its rights or
obligations hereunder.  Any purported assignment in violation of the
foregoing shall be null and void.

     

    IN
WITNESS WHEREOF, the undersigned has executed this Note under seal as of the day
and year first written above.

     

    IMPLANT
SCIENCES CORPORATION

    

    By: /s/
Roger P. Deschenes

    Name:           Roger
P. Deschenes

    Title:           Vice
President, Finance

    

    
      
        
          --EXHIBIT 10.1

                               Release Agreement

<PAGE>

                                RELEASE AGREEMENT

     This Release  Agreement  ("Release")  is entered into by and between  Scott
Seidel in his capacity as Chapter 7 Trustee for the bankruptcy  estate of Atomic
Paintball, Inc. ("Trustee");  J.H. Brech, LLC, Harry McMillan,  Charles J. Webb,
Mark Armstrong, David Myers and John E. Bradley (the "Brech Parties"); and David
Cutler, Atomic Paintball, Inc. ("Atomic"),  International Paintball Association,
Inc. ("IPA") and INTREOrg Systems, Inc. ("Intreorg").

     WHEREAS,  the  Bankruptcy  Court  for the  Northern  District  of Texas has
approved the  settlement  agreement  contained in the Unopposed  Amended  Motion
Pursuant  toss.ss.105,  501,  and 502 and Fed.  R.  Bankr.  P. 9019 for an Order
Approving  Cutler-Seidel  Settlement  (the  "Settlement"),  attached  hereto  as
Exhibit A,

     WHEREAS,  Mr.  Scott  Seidel,  trustee  of  the  bankruptcy  estate  of the
Corporation, has authorized Mr. Mark Dominey and Mr. Steve Weathers to implement
the terms of the Settlement on behalf of Atomic,

     NOW,  THEREFORE,  as required by the terms in  paragraphs  13(e)-(i) of the
Settlement,  and for good and  valuable  consideration  as  provided  for in the
Settlement,  the receipt and sufficiency of which are hereby  acknowledged,  the
parties to this Release agree as follows:

     1. The Brech Parties do hereby release and forever discharge,  individually
and  collectively,  Mr.  Cutler of and from all  claims(1) of whatsoever  nature
without exception pertaining to themselves,  IPA, Intreorg, or any other company
or entity in which the Brech Parties have or have had a shareholder or ownership
interest,  or any shareholders of IPA, Intreorg,  or any other company or entity
in which the Brech Parties have or have had a shareholder or ownership interest,
whether  present or future,  whether  known or  unknown,  whether  suspected  or
unsuspected,  whether  liquidated or  unliquidated,  whether choate or inchoate,
whether matured or unmatured,  whether direct, indirect, or derivative,  whether
fixed or contingent,  whether secured or unsecured,  and whether or not the same
are based upon breach of contract or of any lease,  tort,  piercing or alter ego
theories,  breach of any  duty,  breach  of trust or  participation  in any such
breach  of trust,  violation  of any law or  regulation,  or  otherwise  in law,
admiralty,  equity,  or  bankruptcy  which the Brech Parties or any of the Brech
Parties'  successors  or assigns,  or any  shareholder  claiming in a derivative
capacity from,  through or under J.H. Brech,  LLC, IPA,  Intreorg,  or any other
company or entity in which the Brech Parties have or have had a  shareholder  or
ownership interest,  or any of the foregoing,  ever jointly or individually had,
now has or have,  or hereafter  can,  shall or may have against Mr.  Cutler for,
upon, or by reason of any matter, cause or thing whatsoever,  from the beginning
of the world to the date of this  Release,  and including but not limited to any
and all claims  heretofore  acquired  by Atomic  against Mr.  Cutler.  The Brech
Parties  understand and acknowledge  that this Release  releases claims of which
the Brech Parties may or may not be aware, based on facts that may or may not be
currently known.

----------------------
(1)  "Claim"  or  "Claims"  as  used  herein  includes  but  is not  limited  to
proceedings,   obligations,   losses,   actions,   causes  of   action,   suits,
cross-claims,  counterclaims,  debts, dues, sums of money, accounts, reckonings,
bonds, bills, specialties,  covenants, contracts, leases, controversies,  liens,
subordinations,    agreements,   promises,   variances,   trespasses,   extents,
executions,   damages,  judgments,  offsets,  demands,  allegations,  costs  and
liabilities.

                                                                               1
<PAGE>

     2. Atomic does hereby  release  and  forever  discharge,  individually  and
collectively,  Mr.  Cutler of and from all claims of whatsoever  nature  without
exception,  including but not limited to the claims  asserted or that could have
been  asserted,  in the  lawsuit  styled JH Brech,  LLC et al. v. Cutler et al.,
Cause No. CC-09-04654-D ("State Court Litigation"), or which arise or in any way
relate to the facts or  circumstances  described in said lawsuit,  Mr.  Cutler's
work as an Atomic officer and director, whether present or future, whether known
or  unknown,   whether   suspected  or   unsuspected,   whether   liquidated  or
unliquidated,  whether choate or inchoate, whether matured or unmatured, whether
direct, indirect, or derivative, whether fixed or contingent, whether secured or
unsecured,  and  whether or not the same are based upon breach of contract or of
any lease, tort,  piercing or alter ego theories,  breach of any duty, breach of
trust or  participation  in any such  breach of trust,  violation  of any law or
regulation,  or otherwise in law, admiralty,  equity, or bankruptcy which Atomic
or any of Atomic successors or assigns, or any Atomic shareholder  claiming in a
derivative capacity from, through or under Atomic, or any of the foregoing, ever
jointly or  individually  had, now has or have, or hereafter  can,  shall or may
have against Mr. Cutler for,  upon,  or by reason of any matter,  cause or thing
whatsoever,  from the  beginning of the world to the date of this  Release,  and
including  but not limited to any and all claims  heretofore  acquired by Atomic
against Mr.  Cutler.  Atomic  understands  and  acknowledges  that this  Release
releases claims of which it may or may not be aware,  based on facts that may or
may not be currently known.

     3. IPA and Intreorg do hereby release and forever  discharge,  individually
and collectively, Mr. Cutler of and from all claims of whatsoever nature without
exception,  whether  present  or  future,  whether  known  or  unknown,  whether
suspected or unsuspected, whether liquidated or unliquidated,  whether choate or
inchoate, whether matured or unmatured, whether direct, indirect, or derivative,
whether fixed or contingent,  whether  secured or unsecured,  and whether or not
the same are based upon breach of contract  or of any lease,  tort,  piercing or
alter ego theories,  breach of any duty, breach of trust or participation in any
such breach of trust,  violation of any law or regulation,  or otherwise in law,
admiralty,  equity,  or  bankruptcy  which  IPA  or  Intreorg  or  any of IPA or
Intreorg's successors or assigns, or any IPA or Intreorg shareholder claiming in
a derivative  capacity  from,  through or under IPA or  Intreorg,  or any of the
foregoing,  ever jointly or individually had, now has or have, or hereafter can,
shall or may have  against  Mr.  Cutler for,  upon,  or by reason of any matter,
cause or thing  whatsoever,  from the beginning of the world to the date of this
Release, and including but not limited to any and all claims heretofore acquired
by IPA or  Intreorg  against  Mr.  Cutler.  IPA  and  Intreorg  understands  and
acknowledges  that this Release  releases claims of which they may or may not be
aware, based on facts that may or may not be currently known.

     4. Mr. Cutler does hereby cancel, release and forever discharge any and all
debts he alleges Atomic owes to him, for any purpose,  accruing through the date
of this Release,  including  debts claimed by Mr. Cutler in Schedule F, filed in
In re Atomic Paintball, Inc., Case No. 09-34008-SGJ7 (Doc. 3).

     5. Mr. Cutler does hereby release and forever  discharge,  individually and
collectively,  the Brech  Parties  of and from all claims of  whatsoever  nature
without  exception,  including  but not  limited to the claims  asserted or that
could have been asserted,  in the State Court  Litigation,  or which arise or in
any way relate to the facts or circumstances described in said lawsuit,  whether

                                                                               2
<PAGE>

present or future,  whether known or unknown,  whether suspected or unsuspected,
whether liquidated or unliquidated,  whether choate or inchoate, whether matured
or  unmatured,  whether  direct,  indirect,  or  derivative,  whether  fixed  or
contingent,  whether secured or unsecured, and whether or not the same are based
upon breach of contract or of any lease,  tort,  piercing or alter ego theories,
breach  of any  duty,  breach of trust or  participation  in any such  breach of
trust,  violation of any law or  regulation,  or  otherwise  in law,  admiralty,
equity,  or  bankruptcy  which Mr. Cutler or any of Mr.  Cutler's  successors or
assigns,  or any of the foregoing,  ever jointly or individually had, now has or
have, or hereafter  can,  shall or may have against the Brech Parties for, upon,
or by reason of any matter, cause or thing whatsoever, from the beginning of the
world to the date of this Release,  and including but not limited to any and all
claims heretofore  acquired by Mr. Cutler against Mr. Brech Parties.  Mr. Cutler
understands and  acknowledges  that this Release releases claims of which he may
or may not be aware, based on facts that may or may not be currently known.

     Each signatory  hereto  represents and warrants that they have entered into
and executed  this  Release of their own choice and free will and in  accordance
with their own judgment after advice of counsel.  Each signatory  hereto further
represents and warrants that he or she has the authority to bind the parties for
whom the signatory acts.

     This Release and the Settlement attached as Exhibit A constitute the entire
agreement of the parties and  supersede  all prior  discussions  and  agreements
among the parties to this Release with respect to the subject  matter hereof and
contain the sole and entire agreement with respect to the subject matter hereof.
This Release may be amended or waived if, and only if, such  amendment or waiver
is in writing and signed by all parties to the Release.

                                                                               3
<PAGE>

                                    AGREED:

                                    -------------------------------------------
                                    Scott M. Seidel
                                    Chapter 7 Trustee for Atomic Paintball, Inc.

                                    -------------------------------------------
                                    David J. Cutler

                                    -------------------------------------------
                                    J.H. Brech, LLC

                                    -------------------------------------------

                                    -------------------------------------------
                                    Harry McMillan

                                    -------------------------------------------
                                    Charles J. Webb

                                    -------------------------------------------
                                    Mark Armstrong

                                    -------------------------------------------
                                    David Myers

                                    -------------------------------------------
                                    John E. Bradley

                                    Atomic Paintball, Inc.

                                    -------------------------------------------
                                    Mark Dominey, Director

                                                                               4
<PAGE>

                                    -------------------------------------------
                                    Steve Weathers, Director

                                    International Paintball Association, Inc.

                                    -------------------------------------------

                                    INTREOrg Systems, Inc.

                                    -------------------------------------------

                                                                               5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]