Document:

ctxr_ex102.htm

EXHIBIT 10.2

 

RELEASE AGREEMENT

 

This Release Agreement (“Release) by and between Citius Pharmaceuticals, Inc., (“CITIUS”) and [______] (the “Investor”) is dated and effective as of the 8th day of June, 2017. 

 

WHEREAS, CITIUS and Garden State Securities Inc., (“GSS”) are parties to that certain Engagement Letter Agreement dated August 16, 2016 (the “Letter Agreement”);

 

WHEREAS, pursuant to the terms of the Letter Agreement, CITIUS retained GSS as an exclusive placement agent for the Services (as defined in the Letter Agreement) for CITIUS in connection with a private placement of securities the (“2016 Offering”).

 

WHEREAS, GSS began marketing a Private Placement Memorandum (“PPM”) and form of Unit Purchase Agreement (the “Unit Purchase Agreement”) in October 2016 in connection with the 2016 Offering, for gross proceeds up to $6,000,000 dollars in purchase of a Unit (“Units”), with each Unit being defined as one (1) share of common stock and one (1) warrant at a price of $0.40 per Unit (the “Unit Price”) with each warrant having an exercise price of $0.55 (the “Exercise Price”) with a term of five (5) years.

 

WHEREAS, Investor purchased 250,000 Units via the Unit Purchase Agreement.

 

WHEREAS, CITIUS plans another fundraising which will include being listed to the NASDAQ or NYSE (the “Uplisting Financing”).

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, CITIUS and Investor hereby agree as follows:

 

1. Release from Additional Covenants. Both CITIUS and Investor acknowledge and agree that CITIUS is released from any and all obligations related to the Additional Covenants in the PPM and Investor waives any restriction of CITIUS to sell debt or equity, fixed or variable priced or any combination thereof, at a price below the Unit pricing set forth in the Unit Purchase Agreement. 

 

2. Release on Restricted Transactions. Both CITIUS and Investor acknowledge and agree that CITIUS is released from any and all obligations related to 6.13 Restricted Transactions in the Unit Purchase Agreement and Investor waives any restriction on the ability to issue securities senior to the common stock, or issue any securities at a price below $0.40 cents per share.

 

3. Release on Prohibition on Variable Priced Securities. Both CITIUS and Investor acknowledge and agree that CITIUS is released from any and all obligations related to 6.14 Prohibition on Variable Priced Securities in the Unit Purchase Agreement and Investor waives any restriction on the ability to issue any security, debt equity or combination thereof, at a variable price.

	 
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4. Consideration for Releases. CITIUS further agrees that in exchange for the Release from Additional Covenants, Restricted Transactions, and Prohibition on Variable Priced Securities, to do as follows:

 

a. In the event that the Uplisting Financing is conducted at a price per share or price per unit of less than the Unit Price (the “Lower Recent Price”), then CITIUS will issue additional shares and warrants to Investor sufficient to effectively reprice the sale of Units to the Lower Recent Price.

 

b. In the event warrants are issued in the Uplisting Financing with an exercise price below the Exercise Price (the “Uplisting Warrant Price”), then the Exercise Price shall be reduced to the Uplisting Warrant Price.

 

c. CITIUS will give Investor no less than 6 hours of notice before the closing of any subsequent financing, through and including the Uplisting Financing, and Investor shall have a 6-hour option to purchase up to 20% of the securities sold in such offering .

 

[Signature Page Follows]

 

	 
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IN WITNESS WHEREOF, the parties have executed this Release Agreement to be executed as of the day and year first above written.

 

	
 
	
CITIUS PHARMCEUTICALS, INC.
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name:
	
 
	
 

	
 
	
Title:
	
 
	
 

	
 
	
  
	
 
	
 

	
 
	
INVESTOR
	
 

	
 
	
  
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name:
	
 
	
 

	
 
	
Title:
	
 
	
 

 

[Signature Page to Release Agreement]

 

 

	
3Moody National REIT II, Inc. 8-K

Exhibit
4.1

 

SECOND
AMENDED AND RESTATED DISTRIBUTION REINVESTMENT PLAN

 

This
SECOND AMENDED AND RESTATED DISTRIBUTION REINVESTMENT PLAN (the “Plan”) is adopted by Moody National REIT II, Inc.,
a Maryland corporation (the “Company”), pursuant to its charter (the “Charter”). Unless otherwise defined
herein, capitalized terms shall have the same meaning as set forth in the Charter.

 

1.
Distribution Reinvestment. As agent for the stockholders (the “Stockholders”) of the Company who purchase
(i) purchase Class A, Class D, Class I or Class T shares of the Company’s
common stock (“Shares”) pursuant to the Company’s initial public offering (the “Initial Offering”)
or (ii) purchase Shares pursuant to any future offering of the Shares (“Future
Offering”), and who elect to participate in the Plan (the “Participants”), the Company will apply all distributions
declared and paid in respect of the Shares held by each Participant (the “Distributions”), including Distributions
paid with respect to any full or fractional Shares acquired under the Plan, to the purchase of Shares for such Participants directly,
if permitted under state securities laws and, if not, through the Dealer Manager or Soliciting Dealers registered in the Participant’s
state of residence.

 

2.
Effective Date. The effective date of this Plan shall be the tenth day following the delivery of written notice
of the adoption of the Plan to Participants.

 

3.
Procedure for Participation. Any Stockholder who has received a Prospectus, as contained in the registration statement
filed by the Company with the Securities and Exchange Commission (the “SEC”), may elect to become a Participant by
completing and executing the subscription agreement, an enrollment form or any other appropriate authorization form as may be
made available by the Company, the Company’s transfer agent, the Dealer Manager or the Soliciting Dealer. Participation
in the Plan will begin with the next Distribution payable after acceptance of a Participant’s subscription, enrollment or
authorization. Shares will be purchased under the Plan on the date that Distributions are paid by the Company.

 

4.
Suitability. Each Participant is requested to promptly notify the Company in writing if the Participant experiences
a material change in his or her financial condition, including the failure to meet the income, net worth and investment concentration
standards imposed by such Participant’s state of residence and set forth in the Company’s most recent prospectus.
For the avoidance of doubt, this request in no way shifts to the Participant the responsibility of the Sponsor, or any other person
selling shares on behalf of the Company to the Participant to make every reasonable effort to determine that the purchase of Shares
is a suitable and appropriate investment based on information provided by such Participant.

 

5.
Purchase of Shares.

 

(a)
Participants will acquire Shares from the Company under the Plan (the “Plan Shares”) at a price equal to the Company’s
current estimated value per Share or, $25.04 per Share. Following any subsequent valuation of the Shares, the shares issued pursuant
to the Plan will be priced at 100% of the most recently determined estimated value per share of the Shares. No
selling commissions or dealer manager fees on the Class A, Class D or Class T shares or will be payable with respect to shares
purchased pursuant to the Plan. Participants may acquire Shares from the Company under the Plan until the earliest of (a) all
the Plan Shares registered in the Initial Offering or any Future Offering are issued, (b) the Initial Offering and any Future
Offering of Plan Shares terminate and the Company elects to deregister with the SEC the unsold Plan Shares, or (c) there is more
than a de minimis amount of trading in the Shares, at which time any registered Plan Shares then available under the Plan will
be sold at a price equal to the fair market value of the Shares, as determined by the Board of Directors by reference to the applicable
sales price with respect to the most recent trades occurring on or prior to the relevant Distribution date. Participants in the
Plan may also purchase fractional Shares so that 100% of the Distributions will be used to acquire Shares. However, a Participant
will not be able to acquire Plan Shares to the extent that any such purchase would cause such Participant to exceed the Aggregate
Share Ownership Limit or the Common Share Ownership Limit as set forth in the Charter or otherwise would cause a violation of
the Share ownership restrictions set forth in the Charter.

 

(b)
Shares to be distributed by the Company in connection with the Plan may (but are not required to) be supplied from: (a) the Plan
Shares which will be registered with the SEC in connection with the Company’s Initial Offering, (b) Shares to be registered
with the SEC in a Future Offering for use in the Plan (a “Future Registration”), (c) Shares purchased by the Company
for the Plan in a secondary market (if available) or on a stock exchange (if listed) (collectively, the “Secondary Market”).

 

(c)
Shares purchased in any Secondary Market will be purchased at the then-prevailing market price, which price will be utilized for
purposes of issuing Shares in the Plan. Shares acquired by the Company in any Secondary Market or registered in a Future Registration
for use in the Plan may be at prices lower or higher than the Share price which will be paid for the Plan Shares pursuant to the
Initial Offering.

 

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(d)
If the Company acquires Shares in any Secondary Market for use in the Plan, the Company shall use its reasonable efforts to acquire
Shares at the lowest price then reasonably available for Shares of the class acquired. However, the Company does not in any respect
guarantee or warrant that the Shares so acquired and purchased by the Participant in the Plan will be at the lowest possible price.
Further, irrespective of the Company’s ability to acquire Shares in any Secondary Market or to make a Future Offering for
Shares to be used in the Plan, the Company is in no way obligated to do either, but may do so in its sole discretion.

 

6.
Taxes. IT IS UNDERSTOOD THAT REINVESTMENT OF DISTRIBUTIONS DOES NOT RELIEVE A PARTICIPANT OF ANY INCOME TAX LIABILITY
WHICH MAY BE PAYABLE ON THE DISTRIBUTIONS. INFORMATION REGARDING POTENTIAL TAX INCOME LIABILITY OF PARTICIPANTS MAY BE FOUND IN
THE PUBLIC FILINGS MADE BY THE COMPANY WITH THE SEC.

 

7.
Share Certificates. The ownership of the Shares purchased through the Plan will be in book-entry form unless and
until the Company issues certificates for its outstanding common stock.

 

8.
Reports. Within 90 days after the end of the Company’s fiscal year, the Company shall provide each Stockholder
with an individualized report on such Stockholder’s investment, including the purchase date(s), purchase price, number and
class of Shares owned, as well as the dates of Distributions and amounts of Distributions paid during the prior fiscal year. In
addition, the Company shall provide to each Participant an individualized quarterly report at the time of each Distribution payment
showing the number and class of Shares owned prior to the current Distribution, the amount of the current Distribution and the
number and class of Shares owned after the current Distribution.

 

9.
Termination by Participant. A Participant may terminate participation in the Plan at any time, without penalty,
by delivering to the Company a written notice. Prior to the listing of the Shares on a national stock exchange, any transfer of
Shares by a Participant to a non-Participant will terminate participation in the Plan with respect to the transferred Shares.
Any transfer of Shares by a Participant to a non-Participant will terminate participation in the Plan with respect to the transferred
Shares. If a Participant terminates Plan participation, the Company may, at its option, ensure that the terminating Participant’s
account will reflect the whole number of shares in such Participant’s account and provide a check for the cash value of
any fractional share in such account. Upon termination of Plan participation for any reason, Distributions will be distributed
to the Stockholder in cash.

 

10.
Amendment, Suspension or Termination of Plan by the Company. The Board of Directors may by majority vote (including
a majority of the Independent Directors) amend, suspend or terminate the Plan for any reason upon ten days’ written notice
to the Participants; provided, however, that the Board of Directors may not so amend the Plan to restrict or remove the right
of Participants to terminate participation in the Plan at any time without penalty.

 

11. Liability
of the Company. The Company shall not be liable for any act done in good faith, or for any good faith omission to act,
including, without limitation, any claims or liability (a) arising out of failure to terminate a Participant’s account upon
such Participant’s death prior to receipt of notice in writing of such death; or (b) with respect to the time and the prices
at which Shares are purchased or sold for a Participant’s account. To the extent that indemnification may apply to liabilities
arising under the Securities Act of 1933, as amended, or the securities laws of a particular state, the Company has been advised
that, in the opinion of the SEC and certain state securities commissioners, such indemnification is contrary to public policy
and, therefore, unenforceable.

 

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