Document:

exh10-1_502079.htm

EXHIBIT 10.1

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of March 28, 2013, between Global Telecom & Technology, Inc., a Delaware corporation (the “Company”), and the persons  executing counterpart signature pages to this Agreement.

 

Background:

 

The Company proposes to issue up to _______ shares of its common stock, par value $0.001 per share (the “Common Stock”), in a private offering conducted without registration under the Securities Act of 1933, as amended (the “Securities Act”).  Each of the initial Holders (as defined below) has executed and delivered to the Company a subscription agreement whereby such Holder has agreed to purchase shares of Common Stock.   Since the Common Stock issued by the Company will not be registered under the Securities Act, and therefore not freely transferrable, and as a condition to executing and delivering their respective subscription agreements, the Holders have requested the Company to commit to file a registration statement with respect to the resale by the Holders of the Common Stock they acquire.  As an inducement to the Holders to enter into their respective subscription agreements and acquire the Common Stock, the Company is willing to enter into this Agreement in order to provide for the registration under the Securities Act of the Common Stock acquired by the Holders.

 

Agreement:

 

In consideration of the foregoing and the representations, warranties, covenants and agreements, and intending to be legally bound, the Company and the Holders agree as follows:

 

1.           Definitions.  As used in this Agreement, the following capitalized terms shall have the following meanings:

 

“Agreement” has the meaning set forth in the preamble.

 

“Common Stock” has the meaning set forth in Background.

 

“Commission” means the Securities and Exchange Commission.

 

“Company” has the meaning set forth in the preamble.

 

“Delay Period” has the meaning set forth in Section 3.

 

“Effectiveness Period” has the meaning set forth in Section 2.

 

“Exchange Act”  means the Securities Exchange Act of 1934, as amended from time to time.

 

“Holders” means Persons owning Transfer Restricted Securities.

 

“Information Delay Period” has the meaning set forth in Section 3.

 

  

  

  

“Person” means an individual, partnership, corporation, limited liability company, trust or unincorporated organization, or a government or agency or political subdivision thereof.

 

“Prospectus” means the prospectus included in the Shelf Registration Statement, as amended or supplemented by any prospectus supplement and by all other amendments thereto, including post-effective amendments, and all material incorporated by reference into such Prospectus.

 

“Registration Expenses” has the meaning set forth in Section 5.

 

“Securities Act” has the meaning set forth at Background.

 

“Selling Expenses” means all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Transfer Restricted Securities, and fees and disbursements of counsel for any Holder, except for the reasonable fees and disbursements of counsel for the Holder required to be paid by the Company under Section 6.

 

“Shelf Registration Statement” has the meaning set forth in Section 2.

 

“Transaction Delay Period” has the meaning set forth in Section 3.

 

“Transfer Restricted Securities” means each share of Common Stock issued pursuant in the private offering referred to under the caption “Background” above, until the earlier of (a) the date on which such share of Common Stock has been effectively registered under the Securities Act and disposed of pursuant to and in accordance with an effective Shelf Registration Statement, (b) the date on which such share of Common Stock is distributed to the public pursuant to Rule 144 or any other applicable exemption under the Securities Act without additional restriction upon public resale or (c) at such time as such share of Common Stock may be sold by a Holder under Rule 144(k).

 

“Virginia Courts” has the meaning set forth in Section 8(d).

 

2.           Shelf Registration.  The Company shall use its commercially reasonable efforts to file with the Commission on or before May 28, 2013, a registration statement relating to the offer and sale of the Transfer Restricted Securities by Holders from time to time pursuant to Rule 415 under the Securities Act and in accordance with the methods of distribution set forth therein, which registration statement may be substituted for by one or more subsequent registration statements each relating to the offer and sale of the Transfer Restricted Securities by Holders from time to time (as in effect from time to time, the “Shelf Registration Statement”), and the Company shall use its commercially reasonable efforts to cause such Shelf Registration Statement to be declared effective by the Commission as soon as practicable after the filing thereof, provided, however, that the Company may delay such filing or effectiveness under the circumstances and during the periods described in Section 3.  In addition, the Company shall use its commercially reasonable efforts to keep the Shelf Registration Statement continuously effective, supplemented and amended for a period (the “Effectiveness Period”) ending on March 28, 2014, or, if earlier, when all the shares of Common Stock covered by the Shelf Registration Statement cease to be Transfer Restricted Securities.

 

  

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3.           Delay Periods; Suspension of Sales.

 

(a)           If at any time prior to the expiration of the Effectiveness Period counsel to the Company (which counsel shall be experienced in securities laws matters) has determined in good faith (as evidenced by a written statement to that effect delivered to the Board of Directors of the Company) that it is reasonable to conclude that the filing of the Shelf Registration Statement or the compliance by the Company with its disclosure obligations in connection with the Shelf Registration Statement may require the disclosure of information which the Board of Directors of the Company has identified as material and which the Board of Directors has determined that the Company has a bona fide business purpose for preserving as confidential, then the Company may delay the filing or the effectiveness of the Shelf Registration Statement (if not then filed or effective, as applicable) and shall not be required to maintain the effectiveness thereof or amend or supplement the Shelf Registration Statement for a period (an “Information Delay Period”) expiring three business days after the earlier to occur of (i) the date on which such material information is disclosed to the public or ceases to be material or the Company is able to so comply with its disclosure obligations and Commission requirements or (ii) 45 days after the Company notifies the Holders of such good faith determination.  There shall not be more than four Information Delay Periods during the Effectiveness Period, and there shall not be two Information Delay Periods during any contiguous 135 day period.

 

(b)           If at any time prior to the expiration of the Effectiveness Period the Company is advised by a nationally recognized investment banking firm selected by the Company that, in such firm’s written reasonable opinion addressed to the Company, sales of Common Stock pursuant to the Shelf Registration Statement at such time would materially adversely affect any immediately planned underwritten public equity financing by the Company of at least $5 million, the Company shall not be required to maintain the effectiveness of the Shelf Registration Statement or amend or supplement the Shelf Registration Statement for a period (a “Transaction Delay Period”) commencing on the date of pricing of such equity financing and expiring three business days after the earliest to occur of (i) the abandonment of such financing or (ii) 90 days after the completion of such financing.  There shall not be more than two Transaction Delay Periods during the Effectiveness Period.

 

(c)           A Transaction Delay Period and an Information Delay Period are hereinafter collectively referred to as “Delay Periods” or a “Delay Period.”  The Company will give prompt written notice, in the manner prescribed by Section 8(b), to each Holder of each Delay Period.  Such notice shall be given (i) in the case of a Transaction Delay Period, at least 20 days in advance of the commencement of such Delay Period and (ii) in the case of an Information Delay Period, as soon as practicable after the Board of Directors makes the determination referenced in Section 3(a).  Such notice shall state to the extent, if any, as is practicable, an estimate of the duration of such Delay Period.  Each Holder, by his acceptance of any Transfer Restricted Securities, agrees that (i) upon receipt of such notice of an Information Delay Period such Holder will forthwith discontinue disposition of Transfer Restricted Securities pursuant to the Shelf Registration Statement, (ii) upon receipt of such notice of a Transaction Delay Period it will forthwith discontinue disposition of the Common Stock pursuant to the Shelf Registration Statement and (iii) in either such case, will not deliver any prospectus forming a part of the Shelf Registration Statement in connection with any sale of Transfer Restricted Securities until the expiration of such Delay Period.

 

  

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4.           Registration Procedures.  In connection with the Shelf Registration Statement and any Prospectus required by this Agreement to permit the sale or resale of Transfer Restricted Securities, the following provisions shall apply:

 

(a)           The Company shall furnish to each Holder, promptly after filing thereof with the Commission, a copy of the Shelf Registration Statement and each amendment thereto or each amendment or supplement to the Prospectus included therein.

 

(b)           The Company shall take such action as may be reasonably necessary so that (i) the Shelf Registration Statement and any amendment thereto and any Prospectus forming a part thereof and any supplement or amendment thereto complies in all material respects with the Securities Act and the rules and regulations thereunder, (ii) the Shelf Registration Statement and any amendment thereto (in either case, other than with respect to written information furnished to the Company by or on behalf of any Holder specifically for inclusion therein) does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make any statement therein not misleading and (iii) the Prospectus and any supplement thereto (in either case, other than with respect to such information from Holders) does not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(c)           The Company shall promptly advise the Holders of Transfer Restricted Securities registered under the Shelf Registration Statement (which advice pursuant to clauses (ii) - (iv) shall be accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) and, if requested by such Persons, shall confirm such advice in writing:

 

(i)           when the Shelf Registration Statement and any amendment thereto has been filed with the Commission and when the Shelf Registration Statement or any post-effective amendment thereto has become effective;

 

(ii)           of any request by the Commission for amendments to the Shelf Registration Statement or amendments or supplements to the Prospectus or for additional information relating thereto;

 

(iii)           of the issuance by the Commission of any stop order suspending the effectiveness of the Shelf Registration Statement or of the suspension by any state securities commission of the qualification of the Transfer Restricted Securities for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the preceding purposes; and

 

(iv)           of the happening of any event that requires the making of any changes in the Shelf Registration Statement or the Prospectus so that, as of such date, the Shelf Registration Statement and the Prospectus do not contain an untrue statement of a material fact and do not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the

 

  

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Prospectus, in light of the circumstances under which they were made) not misleading.

 

(d)           If at any time the Commission shall issue any stop order suspending the effectiveness of the Shelf Registration Statement, or any state securities commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of the Transfer Restricted Securities under state securities or Blue Sky laws, the Company shall use its commercially reasonable efforts to obtain the withdrawal or lifting of such order at the earliest possible time.

 

(e)           The Company shall furnish to each Holder of Transfer Restricted Securities included under the Shelf Registration Statement, without charge, at least one copy of the Shelf Registration Statement and each post-effective amendment thereto, including all financial statements and schedules, documents incorporated by reference therein and, if the Holder so requests in writing, all exhibits (including exhibits incorporated therein by reference).

 

(f)           The Company shall, during the Effectiveness Period, deliver to each Holder of Transfer Restricted Securities included under the Shelf Registration Statement, without charge, such reasonable number of copies of the Prospectus (including each preliminary prospectus) included in the Shelf Registration Statement and any amendment or supplement thereto as such Holder may reasonably request to facilitate the public sale or other disposition of the Transfer Restricted Securities by the selling Holder.

 

(g)           Prior to any public offering pursuant to the Shelf Registration Statement, the Company shall use its commercially reasonable efforts to register or qualify or cooperate with the Holders of Transfer Restricted Securities registered thereunder in connection with the registration and qualification of such Transfer Restricted Securities under the securities or Blue Sky laws of such jurisdictions as such Holders reasonably request in writing and do any and all other acts or things reasonably necessary or advisable to enable the offer and sale in such jurisdictions of such Transfer Restricted Securities; provided, however, that the Company will not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or to take any action that would subject it to general service of process or to taxation in any jurisdiction where it is not then so subject.

 

(h)           Upon the occurrence of any event contemplated by Section 4(c)(ii) - (iv), and subject to the provisions of Section 3, the Company shall file (and use its commercially reasonable efforts to have declared effective as soon as possible) a post-effective amendment to the Shelf Registration Statement or an amendment or supplement to the Prospectus or file any other required document so that, as thereafter delivered to the purchasers of Transfer Restricted Securities registered under the Shelf Registration Statement, the Prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein in light of the circumstances under which they were made not misleading.  Each Holder of Transfer Restricted Securities registered under the Shelf Registration Statement agrees by acquisition of such Transfer Restricted Securities that, upon receipt of any notice from the Company of the existence of any fact of the kind described in Section 4(c)(ii) - (iv), such Holder will forthwith discontinue disposition of Transfer Restricted Securities pursuant to the Shelf Registration Statement until such Holder receives copies of the supplemented or amended

 

  

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Prospectus contemplated by this Section 4(h), or until such Holder is advised in writing by the Company that the use of the Prospectus may be resumed, and such Holder has received copies of any additional or supplemental filings which are incorporated by reference in the Prospectus.  If so directed by the Company, each Holder will deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Transfer Restricted Securities current at the time of receipt of such notice.

 

(i)           The Company shall use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make generally available to its security holders or otherwise provide in accordance with Section 11(a) of the Securities Act, as soon as practicable after the effective date of the Shelf Registration Statement an earnings statement satisfying the provisions of Section 11(a) of the Securities Act.

 

(j)           The Company may require each Holder of Transfer Restricted Securities to be registered under the Shelf Registration Statement to furnish to the Company such information regarding such Holder and the distribution of such Holder’s securities thereunder as the Company may from time to time reasonably require for inclusion in the Shelf Registration Statement, and the Company may exclude from such registration the Transfer Restricted Securities of any Holder that fails to furnish such information within a reasonable time after receiving such request.

 

(k)           Upon the delivery of an executed confidentiality agreement in such form as the Company may reasonably request, the Company shall make available at reasonable times for inspection by the Holders and their authorized representatives all financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries as shall be reasonably necessary or desirable to enable them to exercise their due diligence responsibilities in connection with the Shelf Registration Statement.

 

(l)           The Company shall use its commercially reasonable efforts, subject to any applicable rules thereto, to cause all Common Stock included among the Transfer Restricted Securities to be listed on each securities exchange on which the Common Stock is listed.

 

5.           Registration Expenses.  Except as otherwise provided in Section 6, the Company shall bear all expenses incurred in connection with the performance of or compliance with its obligations under Sections 2 and 4, including without limitation all registration and filing fees, fees and expenses of compliance with securities or blue sky laws, printing expenses, messenger and delivery expenses and fees and disbursements of counsel for the Company and all independent certified public accountants, and other persons retained by the Company (all such expenses being herein called “Registration Expenses”).  Registration Expenses shall also include the Company’s internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit or quarterly review, the expense of any liability insurance and the expenses and fees for listing the Common Stock to be registered on each securities exchange on which the Common Stock is listed. Each Holder will pay its own Selling Expenses.

 

  

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6.           Indemnification and Contribution.

 

(a)           The Company agrees to indemnify and hold harmless each Holder (for purposes of this Section 6, “Holder” shall include the officers, directors, employees, managers and partners and agents, and each Person, if any, who controls any Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims, damages, expenses or liabilities, joint or several (and actions, proceedings, suits and litigation in respect thereof), whatsoever, as the same are incurred, to which such Holder or any such controlling Person may become subject, under the Securities Act, the Exchange Act or any other statute or at common law or otherwise (i) insofar as such losses, claims, damages, expenses or liabilities arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement, or any preliminary Prospectus or Prospectus (as from time to time amended and supplemented) or arise out of or are based upon the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein (with respect to any preliminary Prospectus or Prospectus, in the light of the circumstances under which they were made), not misleading; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, expense or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, or any preliminary Prospectus or Prospectus or any such amendment or supplement in reliance upon and in conformity with written information furnished to the Company by or on behalf of any such Holder specifically for inclusion therein and provided, further, that the Company shall not be liable to any such Holder under the indemnity agreement in this Section 6(a)(i) with respect to any preliminary Prospectus or Prospectus (as such Prospectus has then been amended or supplemented) to the extent that any such loss, liability, claim, damage or expense of such Holder arises out of a sale of Transfer Restricted Securities by such Holder to a Person to whom there was not sent or given, at or prior to the written confirmation of such sale, a copy of the Prospectus (or of the Prospectus as then amended or supplemented) if the Company has previously furnished copies thereof to such Holder a reasonable time in advance and the loss, liability, claim, damage or expense of such Holder results from an untrue statement or alleged untrue statement or omission or alleged omission of a material fact contained in the preliminary Prospectus (or the Prospectus) which was corrected in the Prospectus (or the Prospectus as amended or supplemented) or (ii) to the extent that any such loss, claim, damage, expense or liability arises out of or is based upon any action or failure to act by such Holder that is found in a final judicial determination (or a settlement tantamount thereto) to constitute bad faith, willful misconduct or gross negligence on the part of such Holder.  The indemnity agreement in this Section 6(a) shall be in addition to any liability which the Company may have at common law or otherwise.

 

(b)           Each Holder agrees to indemnify and hold harmless the Company and its subsidiaries and each of their respective officers, directors, employees and agents, and each Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing indemnity from the Company to the Holders, but only with respect to statements or omissions, if any, made in conformity with information relating to such Holder furnished in writing by such Holder specifically for use in the Shelf Registration Statement, or any preliminary Prospectus or the Prospectus or any amendment thereof or supplement thereto; provided, however, that the

 

  

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obligation to indemnify will be individual to each Holder and will be limited to the amount of net proceeds received by such Holder from the sale of Transfer Restricted Securities pursuant to the Shelf Registration Statement.

 

(c)           Promptly after receipt by an indemnified party under this Section 6 of notice of the commencement of any action, suit or proceeding, such indemnified party shall, if a claim in respect thereof is to be made against one or more indemnifying parties under this Section 6, notify each party against whom indemnification is to be sought in writing of the commencement thereof (but the failure to notify an indemnifying party shall not relieve such indemnifying party from any liability which it may have under Sections 6(a) or (b) unless and to the extent that it has been prejudiced in a material respect by such failure or from the forfeiture of substantial rights and defenses).  In case any such action, suit or proceeding is brought against any indemnified party, and it notifies an indemnifying party or parties of the commencement thereof, the indemnifying party or parties will be entitled to participate therein, and to the extent it may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party, which may be the same counsel as counsel to the indemnifying party.  Notwithstanding the foregoing, the indemnified party or parties shall have the right to employ its or their own counsel in any such case but the fees and expenses of such counsel shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have been authorized in writing by the indemnifying parties in connection with the defense of such action at the expense of the indemnifying party, (ii) the indemnifying parties shall not have employed counsel reasonably satisfactory to such indemnified party to take charge of the defense of such action within a reasonable time after notice of commencement of the action or (iii) such indemnified party or parties shall have reasonably concluded, after consultation with counsel to such indemnified party or parties, that a conflict of interest exists which makes representation by counsel chosen by the indemnifying party not advisable (in which case the indemnifying parties shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses of one additional counsel shall be borne by the indemnifying parties.  In no event shall the indemnifying parties be liable for fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances.  Anything in this Section 6 to the contrary notwithstanding, an indemnifying party shall not be liable for any settlement of any claim or action effected without its written consent.

 

(d)           In order to provide for just and equitable contribution in any case in which (i) an indemnified party makes claim for indemnification pursuant to this Section 6, but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that the express provisions of this Section 6 provide for indemnification in such case, or (ii) contribution under the Securities Act may be required, then each indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid as a result of such losses, claims, damages, expenses or liabilities (or actions, suits, proceedings or litigation in respect thereof) in such proportion as is appropriate to reflect the relative fault of each of the contributing parties, on the

 

  

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one hand, and the party to be indemnified, on the other hand, in connection with the statements or omissions that resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations.  Relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or by a Holder, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission.  The amount paid or payable by an indemnified party as a result of the losses, claims, damages, expenses or liabilities (or actions, suits, proceedings or litigation in respect thereof) referred to above in this Section 6(d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating, preparing or defending any such action, claim, suit, proceeding or litigation.  Notwithstanding the provisions of this Section 6(d), no Holder shall be required to contribute any amount in excess of the amount by which the total price at which the Transfer Restricted Securities sold by such indemnifying party and distributed to the public were offered to the public exceeds the amount of any damages that such indemnifying party has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  No Person guilty of fraudulent misrepresentation (within the meaning of Section 12(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  For purposes of this Section 6, each Person, if any, who controls the Company within the meaning of the Securities Act, each executive officer of the Company and each director of the Company shall have the same rights to contribution as the Company, subject in each case to this Section 6(d).  Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit, proceeding or litigation against such party in respect to which a claim for contribution may be made against another party or parties under this Section 6(d), notify such party or parties from whom contribution may be sought, but the omission so to notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any obligation it or they may have hereunder or otherwise than under this Section 6(d), or to the extent that such party or parties were not adversely affected by such omission.  The contribution agreement set forth above shall be in addition to any liabilities which any indemnifying party may have at common law or otherwise.

 

7.           Rules 144.  If any Holder shall transfer any Transfer Restricted Securities pursuant to Rule 144 under the Securities Act, he Company shall cooperate, to the extent commercially reasonable, with such Holder and shall provide to such Holder such information and take such other actions as such Holder may reasonably request.

 

8.           Miscellaneous.

 

(a)           No Inconsistent Agreements.  The Company will not hereafter enter into any agreement with respect to its securities which is inconsistent with or violates the rights granted to the Holders in this Agreement.

 

(b)           Notices.  All notices and other communications provided for in this Agreement shall be in writing and shall be delivered personally, mailed by registered or certified mail, return receipt requested and postage prepaid, or mailed by a recognized overnight courier service, in each case if to the Investor, at the Investor’s address set forth on the signature page of this Agreement, and if to the Company to: Global Telecom & Technology, Inc., 8484 Westpark

 

  

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Drive, Suite 720, McLean, Virginia 22102, Attn: General Counsel or, in either case, to such other address as the Investor or the Company may designate to the other in writing.  Each notice or other communication transmitted in the manner described in this Section 8(a) shall be deemed to have been given and received for all purposes: (a) upon personal delivery to the party to be notified, (b) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (c) on the next business day after deposit with a recognized overnight courier.

 

(c)           Governing Law.  THIS AGREEMENT, ALL TRANSACTIONS CONTEMPLATED HEREBY, ALL RELATIONSHIPS BETWEEN THE PARTIES HEREUNDER AND ALL DISPUTES BETWEEN THE PARTIES ARISING OUT OF OR WITH RESPECT TO ANY OF THE FOREGOING SHALL BE GOVERNED BY THE LAWS OF THE STATE OF VIRGINIA, WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PROVISION (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE.

 

(d)           Consent to Jurisdiction.  EACH PARTY AGREES THAT ANY AND ALL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY RELATIONSHIPS BETWEEN THE PARTIES HEREUNDER AND ANY DISPUTES BETWEEN THE PARTIES ARISING OUT OF OR WITH RESPECT TO ANY OF THE FOREGOING SHALL BE COMMENCED AND PROSECUTED EXCLUSIVELY IN THE FEDERAL AND STATE COURTS LOCATED IN THE STATE OF VIRGINIA, ENCOMPASSING FAIRFAX COUNTY, AND ANY APPELLATE COURTS THEREFROM (COLLECTIVELY, THE “VIRGINIA COURTS”).  EACH PARTY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY TRANSACTIONS CONTEMPLATED HEREBY, ANY RELATIONSHIPS BETWEEN THE PARTIES HEREUNDER AND ANY DISPUTES BETWEEN THE PARTIES ARISING OUT OF OR WITH RESPECT TO ANY OF THE FOREGOING IN ANY OF THE VIRGINIA COURTS.  EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH PROCEEDING IN ANY OF THE VIRGINIA COURTS.  EACH PARTY CONSENTS AND SUBMITS TO THE EXCLUSIVE PERSONAL JURISDICTION OF ANY OF THE VIRGINIA COURTS IN RESPECT OF ANY SUCH PROCEEDING.

 

(e)           Waiver of Jury Trial.  EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY TRANSACTIONS CONTEMPLATED HEREBY, ANY RELATIONSHIPS BETWEEN THE PARTIES HEREUNDER AND ANY DISPUTES BETWEEN THE PARTIES ARISING OUT OF OR WITH RESPECT TO ANY OF THE FOREGOING WILL INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUCH PROCEEDING.

 

  

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(f)           Counterparts.  This Agreement may be executed in counterparts.  This Agreement will become binding on the Investor upon the execution and delivery of this Agreement by the Investor, and it shall become binding upon the Investor and the Company in all respects upon execution and delivery by the Company.  Counterparts may be delivered via facsimile, electronic mail (including pdf) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

(g)           Severability.  The determination by a court of competent jurisdiction that any provision of this Agreement is invalid or unenforceable shall in no way affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect in the same manner and to the same extent as if the invalid or unenforceable provision had not been contained in this Agreement.  If any such invalidity or unenforceability of a provision of this Agreement becomes known or apparent to either of the parties, the parties shall negotiate promptly and in good faith in an attempt to make appropriate changes and adjustments to such provisions specifically and this Agreement generally to achieve as closely as possible, consistent with applicable law, the intent and spirit of such provision specifically and this Agreement generally.

 

(h)           Further Assurances. Each of the Company and the Investor agrees to execute such additional documents or instruments as may be reasonably necessary or desirable in order to carry out the provisions of this Agreement.

 

(i)           Third Party Beneficiaries.  Nothing in this Agreement, express or implied, is intended to confer upon any person or entity other than the parties or their respective successors and permitted assigns any rights or remedies under or by reason of this Agreement, except as expressly provided in this Agreement.

 

(j)           Amendment and Waiver.  Neither this Agreement nor any provisions hereof shall be waived, modified, amended, discharged or terminated except by an instrument in writing signed by the Company (if the Company is the party against whom such waiver, modification, amendment, discharge or termination is sought) or the Holders of a majority of the Transfer Restricted Securities issued and outstanding at such time (if the Holders are the party against whom such waiver, modification, amendment, discharge or termination is sought).  No delay or omission in exercising, or failure to exercise, any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.  Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of either party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.  All remedies, either under this Agreement or by law or otherwise afforded to either party, shall be cumulative and not alternative.

 

  

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(k)           Successors and Assigns.  All covenants and agreements in this Agreement by or on behalf of any of the parties will bind and inure to the benefit of their respective heirs, executors, administrators, successors, legal representatives and assigns.  In addition, whether or not any express assignment has been made, the provisions of this Agreement which are for the benefit of Holders are also for the benefit of, and enforceable by, any subsequent Holder.

 

(l)           Entire Agreement.  This Agreement (including the attachments hereto) contains the entire agreement of the parties with respect to the subject matter hereof, and supersedes any prior communications, understandings or agreements of the parties with respect to the subject matter hereof.

 

(m)           Headings.  The headings used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

(n)           Construction.  The parties agree that this Agreement is the product of negotiations between sophisticated persons, each of whom was represented by counsel, and each of whom had an opportunity to participate in, and did participate in, the drafting of each provision hereof.  Accordingly, ambiguities in this Agreement, if any, shall not be construed strictly or in favor of or against any party but rather shall be given fair and reasonable construction without regard to the rule of contra proferentem.  The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  Unless otherwise specified or the context otherwise requires, (a) references made in this Agreement to a Section or a Schedule are to a Section or a Schedule of or to this Agreement, and (b) the term “or” has the inclusive meaning represented by the term “and/or”.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation,” whether or not they are in fact followed by those words or words of like import.  References to any Person include the successors and permitted assigns of that Person.

 

[signature page follows]

 

  

12

  

    IN WITNESS WHEREOF, the Company and the Investors have executed this Agreement as of the date first written above.

 

	  	
GLOBAL TELECOM & TECHNOLOGY, INC.

	  	  
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  

	  	
HOLDER (if individual):

	  	  
	  	
Name:

	  
	  	
Title:

	  

	  	
HOLDER (if entity):

	  	  
	  	
Name of Entity:

	  
	  	

By:

	
 

	  
	  	

Name:

	
 

	  
	  	

Title:

	
 

	  

  

13

  

 

Schedule A

HOLDERS

	
Name and Address

	  	  	
Number of shares of  

Common

Stock owned

	  	
 

	  	  
	  	
 

	  	  
	  	
 

	  	  
	  	
 

	  	  
	  	
 

	  	  
	  	
 

	  	  
	  	
 

	  	  

  

14Exhibit 10(y)

 

MEMBERSHIP INTERESTS
PURCHASE AGREEMENT

(HMG to Christoph)

December, 2012 Transaction

 

This MEMBERSHIP INTERESTS
PURCHASE AGREEMENT is made and entered into as of December __, 2012 (“Effective Date”), by and among
THE CHRISTOPH FAMILY TRUST, FBO ROBERT W. CHRISTOPH, JR. (“Christoph Jr. Trust”), THE CHRISTOPH FAMILY TRUST,
FBO HUNTER CHRISTOPH (“Hunter Trust”; together with the Christoph Jr. Trust, each individually, a “Buyer”
and collectively, the “Buyers”) and HMG BAYSHORE, LLC, a Florida limited liability company (“HMG Bayshore”),
COURTLAND BAYSHORE RAWBAR, LLC, a Florida limited liability company (“HMG Rawbar”) and COURTLAND BAYSHORE RESTAURANT,
LLC, a Florida limited liability company (“HMG Restaurant”) (HMG Bayshore, HMG Rawbar and HMG Restaurant individually,
a “Seller” and collectively, the “Sellers”).

 

Preliminary Statements:

A.          HMG Bayshore
owns 50% of the issued and outstanding membership interests in Bayshore Landing, LLC, a Florida limited liability company (“Landing”);
HMG Rawbar, LLC, a Florida limited liability company owns 50% of the issued and outstanding membership interests in Bayshore Rawbar,
LLC, a Florida limited liability company (“Rawbar”) and HMG Restaurant, LLC owns 50% of the issued and outstanding
membership interests in Bayshore Restaurant, LLC, a Florida limited liability company (“Restaurant “ and together
with Rawbar and Restaurant individually, a Company” and collectively the “Companies”); on a fully-diluted
basis as of the date of this Agreement (the “Interests”), which corresponding percentage interests are set forth
on Schedule A attached hereto.

B.          The Buyers
own the remaining 50% of the issued and outstanding membership interests of each of Companies on a fully-diluted basis as of the
date of this Agreement, which corresponding percentage interests are set forth on Schedule B attached hereto.

C.          The Buyers
desire to purchase from the Sellers and the Sellers desire to sell to the Buyers the Interests upon the terms and conditions set
forth herein.

Agreement:

In consideration
of the premises and the respective mutual agreements, covenants, representations and warranties contained herein, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

    	1

    	 

    

ARTICLE
1

Definitions

1.1               
Defined Terms. In addition to terms defined elsewhere in this Agreement, the following
terms when utilized in this Agreement, unless the context otherwise requires, shall have the meanings indicated in this Article
1:

“Agreement”
means this Membership Interests Purchase Agreement together with all exhibits and schedules contemplated hereby.

“Alternative
Financing” means a loan of no less than $ 13,500,000 from a lending institution reasonably acceptable to Buyers for a
term of no less than 20 years secured by the leasehold interest of the Companies in the Property and the other assets owned by
the Companies and used in connection with the ownership and operations of the businesses on the Properties with an interest rate
and other terms at current market terms and conditions reasonably acceptable to Buyers.

“Authority”
means any federal, state, local or foreign governmental regulatory agency, commission, bureau, authority, court or arbitration
tribunal.

“Bankruptcy
and Equity Exceptions” is defined in Section 3.2.

“Business
Day” means any day other than Saturday, Sunday or a day on which banks in Miami, Florida, U.S.A. are authorized or required
by Law to be closed.

“Buyer”
and “Buyers” are defined in the preamble of this Agreement.

“Closing”
is defined in Section 2.3.1.

“Closing
Date” is defined in Section 2.3.1.

“Christoph
Jr. Trust” is defined in the preamble of this Agreement.

“HGM Bayshore”
is defined in the preamble of this Agreement.

“HMG
Management Agreements” means the existing management agreement with HMG Advisory Bayshore, Inc. (“HMG Advisory”)
or any affiliate of Sellers.

“HMG Rawbar”
is defined in the preamble of this Agreement.

“HMG Restaurant”
is defined in the preamble of this Agreement.

“Hunter
Trust” is defined in the preamble of this Agreement.

“Inspection
Period” is defined in Section 2.2.2.

“Interests”
is defined in the Preliminary Statements to this Agreement.

“Landing”
is defined in the Preliminary Statements to this Agreement.

    	2

    	 

    
“Law”
means any law, statute, rule or regulation, and any judgment, injunction or order of any Authority.

“Lien”
means any and all claims, liens, pledges, options, charges, easements, security interests, deeds of trust, mortgages, conditional
sales agreements, encumbrances, reservations, restrictions, community or other marital property interests, rights of first option,
rights of first refusal or similar restrictions, or other defects in title or right of third parties, voluntarily incurred or arising
by operation of law, and includes any agreement to give any of the foregoing in the future, and any contingent sale or other title
retention agreements or leases in the nature thereof but specifically excluding any Liens set forth in the Organizational Documents
of the Buyers.

“Organizational
Documents” means, as to any Person, the certificate or articles of incorporation, articles of organization, certificate
of formation, bylaws and operating agreement, (or other comparable charter documents), as applicable, of such Person as each may
be amended or restated from time to time.

“Person”
means any natural person, corporation, limited liability company, unincorporated organization, partnership, association, joint-stock
company, joint venture, trust or government, or any agency or political subdivision of any government.

“Purchase”
is defined in Section 2.1.

“Purchase
Price” is defined in Section 2.1.

“Rawbar”
is defined in the Preliminary Statements to this Agreement.

“Restaurant”
is defined in the Preliminary Statements to this Agreement.

“Scheduled
Closing Date” is defined in Section 2.3.1.

“Seller”
and “Sellers” are defined in the preamble of this Agreement.

“Transaction
Documents” means (i) this Agreement and (ii) any and all other agreements, instruments, certificates and documents that
are expressly required to be executed and/or delivered by the parties hereby.

“Wells
Fargo Consent” means a written release from Wells Fargo Bank, N.A. (“Wells Fargo”) reflecting a release of
Sellers and applicable Sellers’ affiliates from all obligations under the Companies’ existing loan facility with Wells
Fargo Bank, N.A. and any guaranty agreements executed in connection therewith. However, if the release offered by Wells Fargo is
other than a full and complete release of such obligations (i.e., the release offered is on a going forward and applies to future
obligations), then such release shall be subject to Sellers’ approval in Sellers’ sole and absolute discretion.

    	3

    	 

    
1.2               
Other Definitional and Interpretive Provisions.

1.2.1           
As used in this Agreement unless the context otherwise requires, (i) words in the masculine
or neuter gender include the masculine, feminine and neuter genders, (ii) the terms defined in the singular shall have a comparable
meaning when used in the plural and vice versa, (iii) the words “include”, “includes” and
“including” shall be deemed to be followed with the phrase “without limitation”, (iv) the
word “will” shall be construed to have the same meaning and effect as the word “shall”, (v)
all references to Exhibits or Schedules refer to exhibits or schedules delivered herewith or attached hereto (each of which is
deemed to be a part of this Agreement), (vi) the headings of the several sections of this Agreement are included for convenience
only and do not in any way affect the meaning or construction of any provision therein, (vii) all references to Sections or Articles
refer to Sections or Articles of this Agreement, (viii) all references to “$” or “dollars”
refer to U.S. dollars, (ix) any amount to be paid in “$” or “dollars” shall be paid in U.S.
dollars, (x) references to a number of days shall refer to calendar days unless Business Days are otherwise specified, (xi) any
definition of or reference to any agreement, instrument or other document shall be construed as referring to such agreement, instrument
or other document as from time to time amended, restated, amended and restated, supplemented or otherwise modified from time to
time (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein), (xii) any reference
herein to any Person shall be construed to include such Person’s successors and assigns to the extent permitted hereunder,
and (xiii) the words “herein”, “hereof” and “hereunder”, and words of
similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof. Except
as expressly stated in this Agreement, all references to any statute, rule or regulation are to the statute, rule or regulation
as amended, modified, supplemented or replaced from time to time (and, in the case of statutes, include any rules and regulations
promulgated under the statute) and to any section of any statute, rule or regulation include any successor to the section.

ARTICLE
2

Purchase

2.1               
Purchase. Subject to the terms and conditions hereof and in reliance upon the representations,
warranties, covenants and agreements set forth herein, on the Closing Date, the Sellers shall sell to the Buyers and the Buyers
shall purchase from the Sellers (the “Purchase”) the Interests free and clear of any and all Liens except those
set forth in the Operating Agreements of the Companies. The aggregate purchase price (the “Purchase Price”)
to be paid by the Buyers to the Sellers for the Interests shall be Three Million Dollars ($3,000,000). 

2.2               
Payment of Purchase Price. 

2.2.1           
Intentionally deleted. 

2.2.2           
Intentionally deleted. 

2.2.3           
At the Closing the Buyers shall pay the entire Purchase Price in immediately available U.S.
Federal funds by wire transfer in accordance with the wire transfer instructions set forth in Schedule C. 

    	4

    	 

    

2.3               
Closing Date and Deliverables. 

2.3.1           
The closing of the Purchase (the “Closing”) shall take place at 10:00 a.m.
eastern time at the offices of Bilzin Sumberg Baena Price & Axelrod LLP, 1450 Brickell Avenue, 23rd Floor, Miami, Florida 33131-3456
on or before April 1, 2013 (the “Scheduled Closing Date”) as determined by Buyers or at such other date, time
or place as the parties may agree in writing. The date upon which the Closing occurs is called the “Closing Date.”

2.3.2           
Buyers and the Companies shall use commercially reasonable diligent good faith efforts to
obtain the Wells Fargo Consent and/or the Alternative Financing on or before the Scheduled Closing Date. If the purchase and sale
is not consummated, Buyers shall promptly reimburse the Companies for any costs or expenses paid or incurred, and fulfill any obligations
imposed on the Companies, in connection therewith and the foregoing obligation shall survive termination of this Agreement. In
the event that Buyers or the Companies have been unable to obtain the Wells Fargo Consent or the Alternative Financing, Buyers
may either (i) terminate this Agreement by providing written notice to Sellers on or before the Scheduled Closing Date, or (ii)
extend the Scheduled Closing Date for a period of up to fifteen (15) days upon written notice to Sellers prior to the Scheduled
Closing Date. 

2.3.3           
Subject to the satisfaction or waiver of the applicable conditions set forth in this Agreement,
the Sellers shall deliver to the Buyers at Closing:

(a)                
assignments of the Interests in form and content reasonably satisfactory to Buyers; 

(b)                
all documents required to be delivered at Closing pursuant to Section 6.1; 

(c)                
copies of all books and records of the Companies in Sellers’ possession or reasonable
control that Buyers would need to effectively operate their respective businesses after the Closing; and 

(d)                
FIRPTA affidavit evidencing that each Seller is not a “foreign person” as defined
in Section 1445(f)(3) of the Internal Revenue Code of 1954, as amended.

Sellers shall reasonably cooperate with
Buyers after Closing, at Buyers’ expense, to provide copies of any additional documents required by Buyers to effectively
operate their businesses. This obligation of Sellers shall expressly survive the Closing.

2.3.4           
Subject to the satisfaction or waiver of the applicable conditions set forth in this Agreement,
the Buyer shall deliver to the Sellers at Closing:

(a)                
the Purchase Price in accordance with Section 2.2 hereof; and

(b)                
all documents required to be delivered at Closing pursuant to Section 6.2.

    	5

    	 

    

ARTICLE
3

Representations and Warranties of the BuyerS

In order to induce
the Sellers to enter into this Agreement and to consummate the transactions contemplated hereby, the Buyers hereby, jointly and
severally, represent and warrant to the Sellers as of the Closing Date as follows:

3.1               
Organization and Standing. Each Buyer is trust duly formed under the laws of the State
of Florida. 

3.2               
Authority, Enforceability. Each Buyer has all requisite power and authority to execute
and deliver each Transaction Document to which it is a party, to perform its obligations under each such Transaction Document and
to consummate the transactions contemplated by each such Transaction Document. The execution, delivery and performance by each
Buyer of each Transaction Document to which it is a party and the consummation of the transactions contemplated hereby and thereby
have been duly and validly authorized by all necessary action on the part of each Buyer. Each Transaction Document to which each
Buyer is a party is, or upon its execution and delivery will be, a valid and binding obligation of each Buyer, enforceable against
it in accordance with the terms thereof except to the extent enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting the enforcement of creditors’ rights generally and by general equitable
principles (the “Bankruptcy and Equity Exceptions”).

3.3               
Noncontravention. Neither the execution, delivery or performance by each Buyer of any
Transaction Document to which it is a party, nor the consummation by each Buyer of the transactions contemplated thereby, nor compliance
by each Buyer with any of the provisions thereof will (i) violate any Law, in each case applicable to each Buyer or its assets
or properties, or give any Authority or other Person the right to challenge any of the transactions
contemplated hereby; (ii) with or without the passage of time or the giving of notice or both, result in the breach of,
or constitute a default or require any consent under, or result in the creation of any Lien upon any property or assets of such
Buyer pursuant to, any material contract to which such Buyer is a party or by which such Buyer or its properties may be bound or
affected; or (iii) violate any provision of the Organizational Documents or any standing resolution adopted
by the managers or members of such Buyer.

3.4               
Consents and Approvals. Other than obtaining the Wells Fargo Consent or paying off
the Wells Fargo loan, no filing with, and no permit, authorization, consent or approval of any Authority or any other Person is
necessary for the consummation by the Buyers of the transactions contemplated hereby.

3.5               
Brokers. The Buyers have not employed any broker or finder and have not incurred and
will not incur any broker’s, finder’s or similar fees, commissions or expenses payable by the Buyers in connection
with the transactions contemplated by this Agreement. 

3.6               
Survival of Representations and Warranties. The representations and warranties contained
in this Article shall survive the Closing.

    	6

    	 

    

ARTICLE
4

Representations and Warranties of the Sellers

In order to induce
the Buyers to enter into this Agreement, and to consummate the transactions contemplated hereby, the Sellers hereby jointly and
severally represent and warrant to the Buyers as of the date of this Agreement as follows:

4.1               
Authority. Subject to the terms of the Operating Agreements of the Companies, each
Seller has all requisite right, power and authority to execute and deliver this Agreement, and the other Transaction Documents
to which it is a party, to perform its obligations under this Agreement and each such Transaction Document, and to consummate the
transactions contemplated by this Agreement and each such Transaction Document. 

4.2               
Ownership of Seller’s Interests. Each Seller is the sole legal, direct record
and beneficial owner of its respective Interests, free and clear of any Liens other than those created under the Operating Agreements
of the Companies, and each Seller has the right, power and authority to sell, transfer, convey and assign good and valid title
thereto, free and clear of any Liens.

4.3               
Authority, Enforceability. Each Seller has all requisite company power and authority
to execute and deliver each Transaction Documents to which it is a party, to perform its obligations under each such Transaction
Document, and to consummate the transactions contemplated by each such Transaction Document. The execution, delivery and performance
by each Seller of each Transaction Document to which it is a party and the consummation of the transactions contemplated hereby
and thereby have been duly and validly authorized by all necessary company action on the part of each Seller. Each Transaction
Document to which each Seller is a party is, or upon its execution and delivery will be, a valid and binding obligation of each
Seller, enforceable against it in accordance with the terms thereof except to the extent enforceability may be limited by the Bankruptcy
and Equity Exceptions.

4.4               
Noncontravention. Neither the execution, delivery or performance by each Seller of
this Agreement or any Transaction Document to which such Seller is a party, nor the consummation by such Seller of the transactions
contemplated hereby or thereby, nor compliance by such Seller with any of the provisions hereof or thereof will (i) violate any
Law, statute, rule or regulation or judgment, order, writ, injunction or decree of any Authority, in each case applicable to such
Seller or such Seller’s assets or properties, or (ii) with or without the passage of time or the giving of notice or both,
result in the breach of, or constitute a default or require any consent under, or result in the creation of any Lien upon the Interests
pursuant to any material contract to which such Seller is a party or by which such Seller or the Interests may be bound or affected,
in each case. 

    	7

    	 

    
4.5               
Consents and Approvals. Other than the Wells Fargo, no filing with, and no permit,
authorization, consent or approval of any Authority or any other Person is necessary for the consummation by each Seller of the
transactions contemplated hereby.

4.6               
Brokers. No Seller has employed any broker or finder and has incurred and will incur
any broker’s, finder’s or similar fees, commissions or expenses payable by any Seller in connection with the transactions
contemplated by this Agreement.

4.7               
Voluntary Sale; Disclosure. Each Seller acknowledges that such Seller is under no compulsion
to sell the Interests to the Buyers and is completing the sale of the Interests on such Seller’s own free will. Each Seller
(a) has sufficient knowledge and experience with and information about the Buyers in order to be fully familiar with the Buyers
and their current business, operations, assets, finances, financial results, financial condition and prospects and so as to be
able to evaluate the risks and merits of consummating the transactions contemplated by this Agreement, (b) has been given an opportunity
to have access to all material books and records of the Buyers and all of their material contracts, agreements and documents and
(c) has had an opportunity to ask questions of, and receive answers from, representatives of the Buyers regarding the Buyers and
their current business, operations, assets, financing, operating results, financial condition and prospects in order to make an
informed decision to sell the Interests. 

4.8               
Litigation. No Seller is subject to any actions, suits, claims, investigations or proceedings,
whether pending or to the knowledge of Sellers, threatened, involving the Interests or which would permit the imposition of a claim
or lien on any of the Interests. 

4.9          Litigation
Against Rawbar. To the best of Seller’s and HMG Advisory’s actual knowledge, there is no legal action pending
or threatened in writing against Rawbar relating to its operations. Both Sellers and Buyers have actual knowledge of matters involving
the State of Florida requirements as to floating docks.

4.10         Books
and Records of Rawbar. To the best of Seller’s and HMG Advisory’s actual knowledge,  the books and records
of Rawbar are true and correct in all material respects.

4.11       Environmental.
To the best of Seller’s and HMG Advisory’s actual knowledge, except as may be reflected in any prior environmental
reports or audits, no hazardous, toxic, dangerous and/or regulated substances, wastes, materials, raw materials which include hazardous
constituents, pollutants or contaminants, including, but not limited to, asbestos, asbestos containing materials, petroleum, tremolite,
anthlophylite, actinolite, polychlorinated biphenyls, solvents, and any other substances or materials which are included under
or regulated by environmental laws (collectively, “Hazardous Substances”) have been stored or disposed
of at the project operated by Landings, Restaurant and Rawbar, during their use and operation of same, in violation, in any material
respect, of any law, rule, order, regulation, ordinance or other legal requirement pertaining to or imposing liability or standards
of conduct concerning environmental regulation, contamination or clean-up, including, but not limited to, the Comprehensive Environmental
Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the Emergency Planning and Community Right-to-Know
Act of 1986, the Hazardous Substances Transportation Act, the Solid Waste Disposal Act, the Clean Water Act, the Clean Air Act,
the Toxic Substance Control Act, the Safe Drinking Water Act, the Occupational Safety and Health Act, any state super-lien and
environmental clean-up statutes and all amendments to and regulations in respect of the foregoing laws (collectively, “Environmental
Laws”), except for substances commonly used in the operation and maintenance of the project and/or those which have been
and are used, stored and disposed of in accordance with environmental laws.

    	8

    	 

    

4.12        Coast
Guard Parking Lot Agreements. True and complete copies of all parking agreements and all amendments, side letters and the like
relating thereto (collectively, “Parking Agreements”) negotiated by Seller with the Miami-Dade Transit Authority as
to the “Coast Guard” parking lot have been provided to Buyers. 

4.13        Sales
Tax. All sales taxes have been timely paid with respect to the operation of the Rawbar portion of the Property and no such
sales taxes are delinquent.   

4.14       Employee
Payroll Taxes. All  employee payroll and employment taxes with respect to the employees of Rawbar (“Rawbar Employees”)
have been timely paid and none are delinquent in the regular course of payment.  No unfair labor practice claims pending or
threatened in writing, and no written notice of any disputes,  grievances or disturbances involving the Rawbar Employees have
been given to Seller or HMG Advisory.  

4.9               
Survival of Representations and Warranties. The representations and warranties contained
in this Article shall survive the Closing for one (1) year.

ARTICLE
5

Conditions to Closing

5.1               
Conditions to Buyer’s Obligations. The obligation of the Buyers to consummate
the Purchase is subject to the satisfaction at or prior to the Closing of each and every one of the following conditions precedent,
any one or more of which may be waived by the Buyers in writing:

5.1.1           
Each of the representations and warranties of the Sellers set forth in Article 5 of
this Agreement shall be true and correct in all material respects, on and as of the date of this Agreement and as of the Closing
Date with the same force and effect as though made on and as of the Closing Date (except to the extent expressly made as of another
date, in which case as of such date as if made at and as of such date).

5.1.2           
The Sellers shall have performed and complied in all material respects with all of the agreements,
covenants and obligations required under this Agreement to be performed or complied with by the Sellers prior to or at the Closing.

5.1.3           
There shall be in force no injunction, judgment, order, decree or ruling by or before any
Authority of competent jurisdiction restraining, enjoining, prohibiting, invalidating or otherwise preventing the consummation
of the Purchase to be effected at the Closing and no action, suit, claim or proceeding shall be pending before any Authority which
seeks to prohibit or enjoin the consummation of the Purchase to be effected at the Closing.

    	9

    	 

    
5.1.4           
The Transaction Documents shall have been executed and delivered by the Sellers, as applicable.

5.1.5           
The Buyers, at Buyers’ election, shall have: (i) received the Wells Fargo Consent, or
(ii) closed on the Alternative Financing and fully satisfied the Wells Fargo loan obligations (which satisfaction shall not reduce
the Purchase Price).

5.1.6           
The HMG Management Agreement shall be terminated and any accrued and unpaid management fees
shall be paid in full at Closing. The form of termination of the HMG Management Agreement is attached hereto as Exhibit 5.1.6.

5.1.7           
The Buyers shall have received the general release in the form of Exhibit 6.1.7 attached
hereto, whereby the Sellers and their respective affiliates shall have released any potential claims against the Companies and
the Buyers and their respective affiliates (except for claims arising out of this Agreement)

5.1.8           
The Buyers shall have negotiated a termination or extension and modification of the RMI LLC
Management Agreement in form and content satisfactory to Buyers. Buyers shall have the exclusive right to negotiate the same from
and after the expiration of the Inspection Period. Neither Sellers nor the Companies shall make any modification to the RMI Management
Agreement before the expiration of the Inspection Period. Notwithstanding anything to the contrary contained in this Agreement,
the termination, extension or modification shall, by its terms, provide that: (i) it shall not be effective unless, and until after,
the consummation of the transactions contemplated by this Agreement; and (ii) if the transactions contemplated by this Agreement
are not consummated, the termination, extension or modification shall be void and of no effect.

5.2               
Conditions to Obligations of the Sellers. The obligations of the Sellers to consummate
the Purchase is subject to the satisfaction at or prior to the Closing of each and every one of the following conditions precedent,
any one or more of which may be waived by the Sellers in writing:

5.2.1           
Each of the representations and warranties of the Buyers set forth in Article 3 and
Article 4 of this Agreement shall be true and correct in all material respects on and as of the date of this Agreement and
as of the Closing Date with the same force and effect as though made on and as of the Closing Date (except to the extent expressly
made as of another date, in which case as of such date as if made at and as of such date).

5.2.2           
The Buyers and the Companies shall have performed and complied in all material respects with
all of the agreements, covenants and obligations required under this Agreement to be performed or complied with by the Buyers prior
to or at the Closing.

    	10

    	 

    
5.2.3           
There shall be in force no injunction, judgment, order, decree or ruling by or before any
Authority of competent jurisdiction restraining, enjoining, prohibiting, invalidating on otherwise preventing the consummation
of the Purchase to be effected at the Closing and no action, suit, claim or proceeding shall be pending before any Authority which
seeks to prohibit or enjoin the consummation of the Purchase to be effected at the Closing.

5.2.4           
The Transaction Documents shall have been executed and delivered by the Buyers.

5.2.5           
The Sellers shall have received the Wells Fargo Consent or the Buyers shall have closed on
the Alternative Financing and fully satisfied the Wells Fargo loan obligations (which satisfaction shall not reduce the Purchase
Price).

5.2.6           
The Sellers shall have received the general release in the form of Exhibit 6.2.6 attached
hereto, whereby the Buyers, the Companies and their respective affiliates shall have released any potential claims against the
Sellers and their respective affiliates (except for claims arising out of this Agreement).

ARTICLE
6

Additional Agreements

6.1              
Notices and Consents. Each of the Companies and the Sellers will use commercially reasonable
efforts to give and cause each of the Buyers to give any notices to third parties, and will use and will cause each of the Buyers
to use its commercially reasonable efforts to obtain any third party consents that are required for the performance of this Agreement
and the consummation of the transactions contemplated by this Agreement.

6.2              
Commercially Reasonable Efforts. 

6.2.1           
From the date of this Agreement until the Closing, each of the Sellers and the Buyers shall
work in good-faith and use their respective commercially reasonable efforts to assist (without cost to Sellers or the Companies)
in the fulfillment and satisfaction of the other party’s conditions to Closing set forth in Section 5.1.5, Section
5.1.6 and Section 5.2.5.

6.2.2           
From and after the Closing Date the Sellers shall work in good-faith and use their respective
commercially reasonable efforts to cooperate with the Buyers, at Buyer’s sole cost and expense, to have all representatives
of Sellers removed from the liquor license of Raw Bar and to have representative(s) of the Buyers and/ or the Companies or their
designee added to the same. The Companies shall indemnify and hold harmless the representative of Sellers whose names appear on
the liquor license for any actions or inaction causing liability under the liquor license from and after the Closing Date. The
provisions of this Section 7.2.2 shall expressly survive the Closing.

    	11

    	 

     6.3               
Public Announcements. Except for whatever disclosures are required to be made by Sellers
and/or their affiliates pursuant to applicable laws, rules and regulations, any public announcement or similar publicity with respect
to this Agreement or the transactions contemplated by this Agreement and the Transaction Documents will be issued at such time
and in such manner as the Buyers and the Sellers shall jointly determine. Subject to the foregoing, the Buyers and the Sellers
will consult with each other concerning the means by which third parties having dealings with any of the Companies will be informed
of the transactions contemplated by this Agreement. The provisions of this Section shall survive termination or Closing.

6.4               
Further Actions. Each party agrees to cooperate fully with the other parties hereto
and to execute and deliver or cause to be executed and delivered at all reasonable times and places such additional instruments
and documents as the other party may reasonably request for the purpose of carrying out this Agreement and the transactions contemplated
hereby. The provisions of this Section shall survive Closing.

6.5               
Access to Personnel, Properties, Books and Records. From the date hereof until the
Closing Date or the termination of this Agreement, each of the Sellers and their representatives shall reasonably cooperate with
the Buyers, at the Buyers’ sole cost and expense, in the investigation of the Interests and the Sellers’ ownership
of the Interests, free and clear of any and all Liens.  

6.6               
Tax Returns. The parties hereto shall mutually cooperate in good-faith in the preparation
of tax returns for the 2012 calendar year, and for the 2013 calendar year through the Closing Date. Such tax returns shall allocate
profits and losses for the 2013 calendar year through the Closing Date and shall be prepared in accordance with standard tax allocation
procedures. Buyers shall cause the applicable tax returns for Landings to be prepared and HMG Rawbar and HMG Restaurant shall cause
the applicable tax returns for Rawbar and Restaurant to be prepared. The aggregate cost of the subject tax returns shall be split
equally between Sellers and Buyers. The provisions of this Section 7.6 shall survive Closing.

ARTICLE
7

Miscellaneous

7.1               
Notices. Any notices, requests, demands and other communications required or permitted
to be given hereunder shall be in writing and, except as otherwise specified in writing, shall be given by personal delivery,
facsimile transmission, Federal Express or UPS (or other similar internationally-recognized overnight courier service) or by registered
or certified mail, postage prepaid, return receipt requested if to the Buyers or the Sellers, to the addresses for notices set
forth below, or to such other addresses as any party hereto may from time to time give notice of (complying as to delivery with
the terms of this Section 7.1) to the other. Notice by internationally-recognized overnight courier shall be effective on
the first (1st) business day after deposit with such courier. Notice by any other permitted means will be effective
upon receipt.

    	12

    	 

    

	If to the Sellers:	
        HMG Bayshore, LLC

        1870 South Bayshore Drive

        Miami, FL 33133

        Attn: Larry Rothstein and Maurice Wiener

        Fax: (305) 856-7342 

	 	 
	With copies to:	
        Marshall J. Emas, Esq.

        Shutts & Bowen LLP

        200 East Broward Boulevard

        Suite 2100

        Ft. Lauderdale, FL 33301

        Fax: (954) 888-3065

	 	 
	If to the Buyers:	
        The Christoph Family Trust, FBO Hunter Christoph

        The Christoph Family Trust, FBO Robert W. Christoph,
        Jr.

        300 Alton Road, Suite 303

        Miami Beach, Florida 33139

        Attn: Robert W. Christoph

        Fax: (305) 673-5995

	 	 
	With copies to:	
        Bilzin Sumberg Baena Price & Axelrod LLP

        1450 Brickell Avenue, 23rd Floor

        Miami, Florida 33131-3456

        Attn: Suzanne Amaducci-Adams, Esq.

        Fax: (305) 351-2207

         

7.2               
Entire Agreement; Amendment. This Agreement and the other Transaction Documents constitute
the entire agreement among the parties hereto with respect to the transactions contemplated hereby and supersede all prior agreements,
understandings, negotiations and discussions, both written and oral, among the parties hereto with respect thereto. This Agreement
may not be altered or otherwise amended except pursuant to an instrument in writing signed by all of the parties hereto.

7.3               
Benefits; Binding Effect; Assignment. This Agreement shall be for the benefit of and
binding upon the parties hereto, their respective successors and, where applicable, heirs and assigns. No party may assign this
Agreement or any of its rights, interests or obligations hereunder without the prior approval of the other party.

7.4               
Waiver. No waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provision hereof (whether or not similar), nor shall any such waiver constitute a continuing waiver
unless otherwise expressly so provided.

    	13

    	 

    
7.5               
No Third Party Beneficiary. Nothing expressed or implied in this Agreement is intended,
or shall be construed, to confer upon or give any Person other than the parties hereto and their respective successors and permitted
assigns.

7.6               
Severability. It is the desire and intent of the parties hereto that the provisions
of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction
in which enforcement is sought. Accordingly, if any particular provision of this Agreement shall be adjudicated by a court of competent
jurisdiction to be invalid, prohibited on unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective,
without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of this Agreement or
affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision
could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction,
be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability
of such provision in any other jurisdiction.

7.7               
Expenses. Each party to this Agreement shall pay their own legal and other expenses
and other expenses in connection with the negotiation, preparation, execution and closing of the Transaction Documents and the
transactions contemplated thereby. 

7.8               
Counterparts. This Agreement may be executed in any number of counterparts and by the
several parties hereto in separate counterparts and by facsimile or .pdf signatures, each of which shall be deemed to be one and
the same instrument.

7.9               
Litigation; Prevailing Party. In the event of any litigation with regard to this Agreement,
the prevailing party shall be entitled to receive from the non-prevailing party and the non-prevailing party shall pay all reasonable
fees and expenses of counsel for the prevailing party.

7.10            
Governing Law: Waiver of Jury Trial.

7.10.1        
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF FLORIDA, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF FLORIDA OR ANY
OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF FLORIDA TO BE APPLIED.

7.10.2        
EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT
MAY LEGALLY AND EFFECTIVELY DO SO, TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING HEREUNDER.

    	14

    	 

    

7.11            
Jurisdiction, Process, Etc.

7.11.1        
Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and
its property, to the exclusive jurisdiction of any Florida State court or federal court of the United States of America sitting
in Miami-Dade County, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement or the other Transaction Documents or for recognition or enforcement of any judgment, and such parties hereby irrevocably
and unconditionally agree that all claims in respect of any such action or proceeding may be heard and determined in any such Florida
State court or, to the extent permitted by Law, in such federal court. Each of the parties hereto agrees that a final, non-appealable
judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law.

7.11.2        
Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or the other Transaction Documents in any Florida State court or federal
court of the United States of America sitting in Miami-Dade County. Each of the parties hereto hereby irrevocably waives, to the
fullest extent permitted by Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such
court.

7.12            
Construction. The provisions of this Agreement shall be construed according to their
fair meaning and neither for nor against any party hereto irrespective of which party caused such provisions to be drafted. Each
of the parties acknowledges that it, he or she has been represented by an attorney in connection with the preparation and execution
of this Agreement.

7.13            
Termination.

7.13.1        
Notwithstanding anything to the contrary in this Agreement, at any time prior to the Closing,
this Agreement may be terminated by written notice:

(a)                
by the mutual written consent of the Buyers and the Sellers;

(b)                
by the Buyers on or prior to the expiration of the Inspection Period; 

(c)                
by the Buyers or the Sellers if the other party is in breach of any provision of this Agreement,
which breach would give rise to a failure to satisfy any condition set forth in Section 6.1 and Section 6.2 respectively,
and such breach shall not have been cured within ten (10) days of written notice from the terminating party of such breach, provided,
that the terminating party is not, on the date of termination, in material breach of any provision of this Agreement; or

(d)                
by the party (Sellers or Buyers) excused from the obligation to consummate the Purchase if
the conditions precedent to such party’s obligation to do so, as described in Section 6.1 or Section 6.2, have
not been fulfilled on or prior to the Scheduled Closing Date (or any extension thereof); provided, that the terminating party shall
not have breached its obligations hereunder in any manner that shall have contributed to the failure to consummate the Closing
by the Scheduled Closing Date (or any extension thereof).

    	15

    	 

    

7.13.2        
If this Agreement is terminated in accordance with Section 7.13, all obligations of
the parties hereunder shall terminate, except for the obligations which, by their terms, survive termination.

7.13.3        
If this Agreement is terminated by the Sellers pursuant to Section 7.13.1(c), or if
the conditions to Closing set forth in Section 6.1 are satisfied or waived (other than the failure to close on the Alternative
Financing or receive the Wells Fargo Consent pursuant to Section 6.1.5 if Buyers elect to extend the Scheduled Closing Date
pursuant to Section 2.3.2) and the Buyers fail to close as required under this Agreement, then, as Seller’s sole and
exclusive remedy, Seller may terminate this Agreement and the parties shall be returned to their respective positions as they existed
prior to the execution of this Agreement. In the event of Seller’s default under this Agreement, Buyer shall, in addition
to any other rights hereunder, have the right to exercise all rights and remedies at law and in equity including, without limitation,
specific performance.

(Remainder
of Page Intentionally Left Blank)

    	16

    	 

    

IN WITNESS WHEREOF,
the parties hereto have each executed and delivered this Agreement as of the day and year first above written.

	 	 	 	 
	 	SELLERS:
	 	 
	 	HMG BAYSHORE, LLC
	 	 	 	 
	 	By:	 	 
	 	 	Larry Rothstein, Manger	 
	 	 	 
	 	COURTLAND BAYSHORE RAWBAR, LLC,
	 	a Florida limited liability company
	 	 	 	 
	 	By:	 	 
	 	 	Larry Rothstein, Manager	 
	 	 	 	 
	 	COURTLAND BAYSHORE RESTAURANT, LLC, 
 a Florida limited liability company
	 	 	 	 
	 	By:	 	 
	 	 	Larry Rothstein, Manager	 

(Seller’s
Signature Page To

Membership Interest Purchase Agreement)

    	17

    	 

    

 

	 	 	 	 
	 	 	BUYERS:	 
	 	 	 	 
	 	 	THE CHRISTOPH FAMILY TRUST, FBO 
 ROBERT W. CHRISTOPH, JR.
	 	 	 
	 	 	 	 
	 	 	Robert W. Christoph, Trustee	 
	 	 	 	 
	 	 	 	 
	 	 	Robert W. Christoph, Jr., Trustee	 
	 	 	 	 
	 	 	 	 
	 	 	Carter N. McDowell, Trustee	 
	 	 	 	 
	 	 	THE CHRISTOPH FAMILY TRUST, FBO 
 HUNTER CHRISTOPH
	 	 	 
	 	 	 	 
	 	 	Robert W. Christoph, Trustee	 
	 	 	 	 
	 	 	 	 
	 	 	Hunter Christoph, Trustee	 
	 	 	 	 
	 	 	 	 
	 	 	Carter N. McDowell, Trustee	 

 

(Buyers’
Signature Page To Membership Interest Purchase Agreement

	18

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