Document:

EX-10.1 Form 8-K 10-14-13

                                                                                              

Exhibit 10.1

	
		
	 
	 

	
	Travelzoo Inc.
590 Madison Avenue
37th Floor
New York, NY 10022
 
Media Contact:
Christie McConnell
Travelzoo, North America
+1 (212) 484-4912
cmcconnell@travelzoo.com

FOR IMMEDIATE RELEASE

Travelzoo Inc. Enters into Multi-State
Unclaimed Property Settlement

NEW YORK, October 14, 2013 - Travelzoo Inc. (NASDAQ: TZOO), a global Internet media company, today announced that it entered into agreements with 34 states to resolve those states’ claims related to unclaimed property audits. As previously disclosed in the Company’s reports on Form 10-K and Form 10-Q, multiple states have claimed that certain shares of Travelzoo, which were not claimed by former shareholders of Travelzoo.com Corporation following the 2002 merger, were unclaimed property.  While the Company disputes the states’ claims, the Company determined that it was in its best interest to resolve the disputes and settle with 34 of the states.
 
The multi-state settlement relates to an approximate 700,000 shares of Travelzoo that those states claim may be subject to escheat. An additional 15 states remain that have or may raise claims on a remaining approximate 400,000 shares that were not exchanged following the merger by residents in those states.

The Company expects to make one-time cash payments to the 34 states after further due diligence, which it intends to make from cash on hand.  To cover those payments, as well as potential future settlements with the remaining 15 states, the Company expects to record an estimated $22.0 million charge, which will be included in the Company’s financial earnings release for the three months ended September 30, 2013, which is scheduled to be released on October 17, 2013.

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About Travelzoo
Travelzoo Inc. is a global Internet media company. With more than 26 million subscribers in North America, Europe, and Asia Pacific and 25 offices worldwide, Travelzoo® publishes deals from more than 2,000 travel and entertainment companies. Travelzoo’s deal experts review offers to find the best deals and confirm their true value. In Asia Pacific, Travelzoo is independently owned and operated by Travelzoo (Asia) Ltd. and Travelzoo Japan K.K. under a license agreement with Travelzoo Inc.

Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect,” “predict,” “project,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions, and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release. Travelzoo and Top 20 are registered trademarks of Travelzoo Inc. All other company and product names mentioned are trademarks of their respective owners.

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2/2Exhibit 10.1

 

 

FIFTH AMENDMENT TO

VOTING AND STANDSTILL AGREEMENT

 

This FIFTH AMENDMENT TO VOTING AND STANDSTILL AGREEMENT (this “Fifth Amendment”) is made and entered into on October 9, 2013, by and among United American Healthcare Corporation, a Michigan corporation (“UAHC”), St. George Investments, LLC, an Illinois limited liability company (“St. George”), and The Dove Foundation, an Illinois trust (“Dove”). UAHC, St. George, and Dove are referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS

A.         On March 19, 2010, UAHC and St. George entered into that certain Voting and Standstill Agreement (the “VSA”);

 

B.          On June 7, 2010, UAHC and St. George entered into that certain Amendment to Voting and Standstill Agreement (the “First Amendment”), which amended the VSA;

 

C.          On June 7, 2010, Dove entered into that certain Agreement to Join the Voting and Standstill Agreement (the “Joinder”), by which Dove joined the VSA, as amended by the First Amendment, and UAHC and St. George acknowledged and accepted the Joinder;

 

D.          On June 18, 2010, UAHC, St. George, and Dove entered into that certain Acknowledgement and Waiver of Certain Provisions of the Voting and Standstill Agreement (the “Acknowledgement and Waiver”);

 

E.           On November 3, 2011, the Parties entered into that certain Second Amendment to Voting and Standstill Agreement (the “Second Amendment”), which further amended the VSA;

 

F.          On May 15, 2012, the Parties entered into that certain Third Amendment to Voting and Standstill Agreement (the “Third Amendment”), which further amended the VSA;

 

G.          On January 10, 2013, the Parties entered into that certain Fourth Amendment to Voting and Standstill Agreement (the “Fourth Amendment”), which further amended the VSA;

 

H.         The VSA, as amended by the First Amendment, as joined by Dove pursuant to the Joinder, as further amended by the Acknowledgement and Waiver, as further amended by the Second Amendment, as further amended by the Third Amendment, and as further amended by the Fourth Amendment is referred to herein as the “Amended VSA”;

I.           The “Put Commencement Date” (as set forth in Section 2 of the Fourth Amendment) was October 1, 2013, and as a result, each of St. George and Dove has a present right to exercise the “Put Option” pursuant to Section 5.1 of the Amended VSA;

 

J.           Each of St. George and Dove is willing to forbear from exercising its Put Option during the present “Put Exercise Period” (as defined in Section 5.1 of the Amended VSA), in exchange for UAHC’s agreement to postpone the Put Commencement Date, until October 1, 2014 (and either or both of St. George and Dove may exercise its Put Option during the Put Exercise Period commencing on such date), and with an expiration of March 30, 2015, provided that either or both of St. George and Dove may elect to accelerate the Put Commencement Date upon the occurrence of any one of certain events, as set forth in Section 3 of the Third Amendment; and

 

K.         The Parties desire to further amend the Amended VSA as set forth in this Fifth Amendment in order to memorialize the mutual understanding set forth in the previous recital and the remainder of this Fifth Amendment.

 

NOW, THEREFORE, in consideration of the foregoing recitals, which are hereby incorporated in this Fifth Amendment, and for other good and valuable consideration, including the mutual obligations set forth in this Agreement, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1.           Forbearance. Each of St. George and Dove agrees to forbear from exercising its Put Option during the present Put Exercise Period (as defined in Section 5.1 of the Amended VSA), in consideration of UAHC’s agreement to postpone the Put Commencement Date until October 1, 2014, pursuant to Section 2 of this Fifth Amendment.

 

2.           Postponement of Put Commencement Date. The Parties agree that the Put Commencement Date shall be October 1, 2014 and that, as a result, the Put Exercise Period shall end on March 30, 2015.

 

3.           Deletion of Certain Provisions. The following provisions of the Amended VSA are hereby deleted in their entirety and shall have no further force or effect:

 

		a.	In Section 1.1, the definitions of “Call Closing Date”, “Call Exercise Period”, “Call Notice”, “Call Option”, “Call Price”, “Call Price Per Share”, “Call Shares”, “Certificate of Designation”, “Preferred Call”, “Preferred Call Option”, “Preferred Call Notice”, “Preferred Issuance”, “Preferred Put Option”, and “Preferred Shares”;

 

		b.	Article III;

 

		c.	Article IV;

 

		d.	The second sentence of Section 5.1;

		e.	Section 5.2;

 

		f.	Article VI;

 

		g.	Article VIII;

 

		h.	Section 10.4; and

 

		i.	Exhibit A.

 

4.  Change in Definition of Conversion Shares. The definition of “Conversion Shares” in Section 1.1 of the Amended VSA is hereby restated in its entirety as follows: 

 

“‘Conversion Shares’ means, collectively, the Common Shares issuable upon conversion of any security or instrument issued by the Company at any time (whether past, present, or future) and from time to time, including without limitation any promissory note issued by the Company.”

 

5.  No Other Changes. All terms of the Amended VSA, except as amended by this Fifth Amendment, remain in full force and effect.

 

[Signature page follows.]

IN WITNESS WHEREOF, the undersigned Parties, being duly authorized, have executed this Fifth Amendment as of the date first written above.

	
 

	
UNITED AMERICAN HEALTHCARE CORPORATION

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Robert T. Sullivan

	
 

	
Name:

	
Robert T. Sullivan

	
 

	
Title:

	
Secretary, Treasurer and CFO

 

 

	
 

	
ST. GEORGE INVESTMENTS, LLC

	
 

	
 

	
 

	
 

	
By:

	
Fife Trading, Inc.,

	
 

	
 

	
an Illinois corporation,

	
 

	
 

	
its Manager

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ John M. Fife

	
 

	
 

	
Name:

	
John M. Fife

	
 

	
 

	
Title:

	
President

	
 

	
THE DOVE FOUNDATION

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ James M. Delahunt

	
 

	
Name:

	
James M. Delahunt

	
 

	
Title:

	
Trustee

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