SECOND AMENDMENT TO ASSET
PURCHASE AGREEMENT
This Second Amendment (this “
Amendment ”) to that certain Asset Purchase
Agreement, dated as of October 1, 2008, as amended by that certain
First Amendment to Asset Purchase Agreement, dated as of March 2,
2009 (the “ Agreement ”), by and among
NDS Nutritional Products, Inc., a Nebraska corporation (“
Seller ”), Bond Laboratories, Inc., a Nevada
corporation (“ Buyer ”), and Cory Wiedel
and Ryan Zink (each, a “ Shareholder ”
and together, the “ Shareholders ”), is
entered into effective as of September 30, 2009, by and among
Buyer, Seller, Shareholders, and, with respect to certain sections
of the Agreement, NDS Nutrition Products, Inc., a Florida
corporation (“ Buyer Sub
”). Capitalized terms used but not defined herein
shall have the respective meanings ascribed to them in the
Agreement.
WHEREAS,
pursuant to the Agreement, Seller sold and transferred, and Buyer
purchased and assumed, the Acquired Assets and the Assumed
Liabilities, respectively;
WHEREAS, Buyer
assigned the Acquired Assets and certain of the Assumed Liabilities
to Buyer Sub as permitted by Section 10.5 of the
Agreement;
WHEREAS, the
parties, in accordance with Section 10.4 of the Agreement, desire
to amend the Agreement pursuant to the terms and provisions of this
Amendment.
NOW, THEREFORE,
in consideration of the foregoing recitals and of the mutual
promises herein contained, the parties hereby agree as
follows:
1.
Table of Definitions .
(a) The
definition of “ Acquisition Agreements ”
shall be amended to include the “New Note” and the
“Zink Agreement”, and to include amendments to the
Acquisition Agreements.
(b) The
definition of “Component Inventory” is hereby amended
and restated in its entirety to read as follows:
“’
Component Inventory ’ shall mean the Product
Inventory which consists of component parts (e.g., lids, labels,
bottles, boxes, packaging).”
(c) The
definition of “Earn-Out Amount” is hereby amended and
restated to read in its entirety to read as follows:
“’
Earn-Out Amount ’ shall mean
$330,420.21.”
(d) The
definition of “Fixed Assets” shall be amended and
restated in it entirety to read as follows:
“
Fixed Assets ” means those fixed assets of
Seller listed on Schedule 2.1(iii) hereto.”
(e) The
definition of “Notes” shall be amended and restated in
its entirety to read as follows:
“
Notes ” means (i) that certain Secured
Promissory Note (Installment Note), originally issued by Buyer in
favor of Seller as of October 1, 2008; (2) that certain Secured
Promissory Note (Component Inventory), originally issued by Buyer
in favor of Seller as of October 1, 2008; and (3) that certain
Secured Promissory Note (Fixed Assets), originally issued by Buyer
in favor of Seller as of October 1, 2008.”
(f) “
Remaining Earn-Out Amount ” means $275,000;
provided, however, that this amount shall be reduced by: (A)
$25,000 if Buyer makes one or more pre-payments (i.e., payments in
addition to the regularly scheduled monthly payment) under the New
Note in the aggregate amount of $250,000 after December 31, 2009
but on or before June 30, 2010, or (B) $50,000 if Buyer makes one
or more pre-payments (i.e., payments in addition to the regularly
scheduled monthly payment) in the aggregate amount of $225,000 on
or before December 31, 2009, in each case which reduction of the
principal amount shall be deemed automatically effective as of the
date of receipt of the applicable aggregate amount.
(g) The
following definitions shall be added to Schedule 1.0 “Table
of Definitions”:
“ Acquired Inventory ”
has the meaning set forth in Section 1.6 hereof.”
“ New Note ” has the
meaning set forth in Section 2.1(ii) hereof.”
“ Product Inventory Amount
” means $105,923.63.”
“ Seller Cap Amount ”
has the meaning set forth in Section 9.5(b)
hereof.”
“ Zink Agreement ”
means that certain Agreement, dated as of September 1, 2009, by and
among Buyer, Buyer Sub, Seller, and the Shareholders.
(h) The
following defined terms (and accompanying definitions) shall be
deleted from the Table of Definitions: “Actual Quarterly
Earn-Out Payment”, “Auditor”, “Earn-Out
Materials”, “FAP Note”, “GP Adjustment
Amount”, “GP Objection Notice”, “GP
Objection Period”, “GP Period”, “GP
Quarterly Target” and “Target Quarterly Earn-Out
Payment”.
2.
Product Inventory Purchases .
(a) Section
1.6 of the Agreement is hereby amended and restated in its entirety
to read as follows:
“1.6.
Purchases of Product Inventory . Upon
effectiveness of the New Note, Buyer shall be deemed to have
purchased the Product Inventory set forth on Schedule 1.6 (the
“