In addition, the sale of the assets by Renaissance to the third party was made subject to certain obligations of Appoint to
a bank (which were guaranteed by ATI) in the aggregate amount of $660,000.
APT has taken possession of the Appoint Collateral subject to the indebtedness of Appoint to
the Santa Lucia National Bank (the "Bank"), in the approximate amount of $660,000.
Barrett, the founder of Appoint, has proposed a plan that, with the cooperation of ATI's and Appoint's lenders, will return control of Appoint to
Barrett in exchange for a substantial portion of the shares issued by ATI to Barrett in the original merger transaction.
We are optimistic that these new products, coupled with seasonal increases during the fall and winter months, will help Appoint to
achieve break-even levels by end of the calendar year.
a California corporation ("Appoint"), is not consummated or otherwise is terminated, SLI will satisfy its obligations to Renaissance under the Renaissance loan agreement and the SLI convertible debenture by delivering to Renaissance $300,000 in principal amount of convertible debentures by Appoint, which, pursuant to the SLI/Appoint merger agreement (the "merger agreement"), will be issued by Appoint to
SLI upon failure to consummate the merger or upon its termination and will have terms substantially the same as those of the SLI convertible debenture except that the principal amounts of such convertible debentures of Appoint will be convertible into shares of Appoint common stock at a conversion price of $2 per share.
As a result of Appoint's immediate need for additional working capital, Standard Logic has given its permission for Appoint to
proceed with negotiations for third party financing.