Document:

Unassociated Document

    
      

      

    

    Exhibit 10.31

     

     

    
      AMENDMENT
NO. 1 TO

      EMPLOYEMENT
AGREEMENT

       

      THIS AMENDMENT, dated as of November
23, 2009 (this “Amendment”), between National Holdings Corporation
(the “Company”) and Mark
Goldwasser (the “Executive”).

      

      W I T N E S S E T
H

       

      WHEREAS, the parties hereto have
heretofore entered into an Employment Agreement, dated July 1, 2008 (the
“Agreement”); and

       

      WHEREAS,
the Company and the Executive wish to amend the Agreement on the terms set forth
herein.

       

      NOW,
THEREFORE, the parties hereto, in consideration of the mutual promises herein
contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, hereby agree to amend the Agreement
as follows:

       

      1.           Definitions; References;
Continuation of Agreement.  Unless otherwise specified herein,
each term used herein that is defined in the Agreement shall have the meaning
assigned to such term in the Agreement.  Each reference to “hereof,”
“hereto,” “hereunder,” “herein” and “hereby” and each other similar reference,
and each reference to “this Agreement” and each other similar reference,
contained in the Agreement shall from and after the date hereof refer to the
Agreement as amended hereby.  Except as amended hereby, all terms and
provisions of the Agreement shall continue unmodified and remain in full force
and effect.

       

      2.           Compensation.  Section
4(b) is hereby amended in its entirety as follows:

       

      “(b)(i)  Bonuses.  During
the Term of Employment, the Executive shall be entitled to receive the following
bonuses from the Company:

      

      
        	
                ·  

              	
                for
      the first fiscal quarter, an amount equal to seven and one-half (7.5%)
      percent of the Company’s Adjusted EBITDA (as defined below) in excess of
      $375,000 for such first fiscal quarter (“First Interim
      Amount”);

              

      

       

      
        	
                ·  

              	
                for
      the second fiscal quarter, an amount equal to the difference between (x)
      seven and one-half (7.5%) percent of the Company’s Adjusted EBITDA in
      excess of $750,000 for the first six months of the fiscal year and (y) the
      First Interim Amount (“Second Interim
Amount”);

              

      

       

      
        	
                ·  

              	
                for
      the third fiscal quarter, an amount equal to the difference between (x)
      seven and one-half (7.5%) percent of the Company’s Adjusted EBITDA in
      excess of $1,125,000 for the first nine months of the fiscal year and (y)
      the Second Interim Amount (“Third Interim Amount”);
  and

              

      

       

      
        	
                ·  

              	
                for
      the fourth fiscal quarter, an amount equal to the difference between (x)
      seven and one-half (7.5%) percent of the Company’s Adjusted EBITDA in
      excess of $1,500,000 for the entire fiscal year and (y) the Third Interim
      Amount (“Fourth Interim Amount”; and with the First, Second and Third
      Interim Amounts, the “Annualized
Bonus”);

              

      

       

      provided, however, fifty
percent (50%) of the First, Second, Third and Fourth Interim Amounts shall be
paid in cash as soon as practicable after the end of each fiscal quarter (“Paid
Portion”), and fifty percent (50%) of the First, Second, Third and Fourth
Interim Amounts shall accrue until the conclusion of the fiscal year (“Accrued
Portion”).

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      For the
purpose of this Agreement, “Adjusted EBITDA” shall mean the net income of the
Company for a particular fiscal quarter before interest, taxes, depreciation and
amortization, adjusted to exclude non-cash compensation expense (including the
amortization of costs associated with the issuance of stock options) and write
down of forgivable loans.

       

      Notwithstanding
anything to the contrary in this sub-section (b)(i):

       

      
        	
                ·  

              	
                 at
      the conclusion of the fiscal year, the Company and the Executive shall
      ‘true up’ the Annualized Bonus, the Paid Portion and the Accrued Portion,
      with payment (if any) to made as soon as practicable following the
      determination of such ‘true up’
amount.

              

      

       

      
        	
                ·  

              	
                To
      the extent that the Adjusted EBITDA for such fiscal year is between
      $1,500,000 and $4,500,000), up to 100% of the Accrued Portion may, at the
      Board’s discretion, be satisfied by the issuance of the Company’s
      restricted common stock, at its then fair market
  value.

              

      

       

      
        	
                ·  

              	
                To
      the extent that the Adjusted EBITDA for such fiscal year exceeds
      $4,500,000, the Accrued Portion shall be paid in
  cash.

              

      

       

      
        	
                ·  

              	
                To
      the extent that the ‘true up’ calculation results in a negative amount
      (i.e., the Paid Portion exceeds the Annualized Bonus) then (i) the Company
      shall have no right to clawback such amount from the Executive but (ii)
      such amount shall first be deducted from the Annualized Bonus (if any) to
      be paid for future periods.

              

      

       

      
        	
                ·  

              	
                All
      bonuses shall be subject to applicable withholding taxes which shall be
      paid by the Company and other similar deductions and any payment of
      Accrued Bonus payable in Company common stock shall accordingly be
      calculated net of such withholding on the aggregate bonus amount
      paid.

              

      

       

      Notwithstanding
anything to the contrary in this Section 2(b)(i), in no event shall the
Annualized Bonus  exceed an amount equal to 100% of the then current
Base Salary for such fiscal year.

      

      (ii)           In
addition to the bonus set forth is 4(b)(i) above, the Executive shall be
entitled to such additional Bonuses, if any, as the Board may in its sole and
absolute discretion determine based upon its assessment of the performance of
the CEO in the following areas:  (A) revenue growth of the Company,
(B) new business development, (C) investor relations, (D) communication with the
Board of Directors, (E) communication and collaboration with the other members
of the Executive Committee of the Board of Directors, and (F) special projects
as assigned by the Board of Directors.  Payment of such additional
Bonuses may be in the form of cash and/or Company common stock at the Board’s
discretion.”

      

      4.           Counterparts.  This
Amendment may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that both parties need not sign the same
counterpart.  In the event that any signature is delivered by facsimile
transmission or by e-mail delivery of a “.pdf” format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such
facsimile or “.pdf” signature page were an original thereof.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      5.           Governing
Law.  This Amendment shall be governed by and construed in
accordance with the laws of the State of New York.

       

      IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed on the date first above written.

       

      
        
          	 	 	 	

                  NATIONAL
      HOLDINGS CORPORATION

                	 
	 	 	 	 	 
	 	 	 	 	 
	
                   

                	 	 	
                  By:/S/
      LEONARD SOKOLOW

                  Leonard
      Sokolow

                    President

                  

                	 
	 	 	 	 	 
	
                   

                	 	 	
                   

                	 
	
                   

                	 	 	
                  

                    /S/
      MARK GOLDWASSER 

                    Mark
      Goldwasser

                  

                	 

        

      

      

       

      3Unassociated Document

    
      

      

    

    Exhibit 10.32

     

     

    
      
         

        November
23, 2009

         

         

        Board of
Directors of

        National
Holdings Corporation

        120
Broadway, 27th
Floor

        New York,
NY  10271

        

        

        
          	
                   
      

                	
                  Re:

                	
                  Modifications to
      Employment Agreement

                

        

         

        Dear
Sirs:

         

        This
letter will confirm my agreement to certain modifications of the compensation
arrangements as set forth in my Employment Agreement with the Company, dated
July 1, 2008 (the “Agreement”):

        

        
          	
                  1.

                	
                  With
      respect to accrued bonus of $206,250 due me through September 30, 2009, I
      hereby agree to the following payout of such bonus (subject to normal
      withholding and other deductions):

                

        

        

        
          	
                   
      

                	
                  (a)

                	
                  $61,875,
      which shall be withheld by the Company for withholding taxes and other
      similar deductions; and

                

        

        
          	
                   
      

                	
                  (b)

                	
                  Balance
      of $144,375 payable as follows:

                

        

        
          	
                   
      

                	
                  ii.

                	
                  Cash
      payments aggregating $61,875, payable in three tranches as
      follows:  $20,000 payable immediately; $20,000 payable on or
      before November 30, 2009; and $21,875, payable on or before December 31,
      2009; and

                

        

        
          	
                   
      

                	
                  iii.

                	
                  $82,500,
      payable in the form of issuance of restricted Company common stock, valued
      at $0.75 per share.

                

        

        

        Notwithstanding
the mandatory cash payments referred to in Section 1(b)(ii) above (the
“Payments”), the undersigned understands and agrees that if at the time a
Payment is due, that the Company would otherwise be required to use all or a
portion of the cash to make the Payment as a capital infusion into any of its
operating broker-dealer subsidiaries in order to avoid having to make the “early
warning” filing contemplated by SEC Rule 17a-11, then the Payment shall be
delayed (but the obligation to make same shall continue to be accrued) until
such time that Payment could be made without invoking the “early warning”
requirements.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        The
undersigned further acknowledges that any additional bonuses to be paid me, if
any, shall be at the sole discretion of the Board of Directors of the Company
and that in any event, under no circumstance shall I be entitled to receive any
investment banking warrants earned through the investment banking activities of
the Company’s broker-dealer subsidiaries.

        

        2.           In
addition, Mr. Leonard Sokolow is entitled to a bonus of $290,698 as of June 30,
2008, assumed by the Company in connection with our merger with
vFinance.  Each of Mr. Sokolow and the Compensation Committee of the
Company has agreed that $60,698 of such bonus be divided equally between Mr.
Sokolow and the undersigned (subject to normal withholding and other
deductions), which shall be payable as follows:

        

        
          	
                   
      

                	
                  (a)

                	
                  $9,104,
      which shall be withheld by the Company for withholding taxes and other
      similar deductions; and

                

        

        
          	
                   
      

                	
                  (b)

                	
                  Balance
      of $21,245 payable as follows:

                

        

        
          	
                   
      

                	
                  i.

                	
                  Cash
      payment $9,104 in one tranche, payable immediately;
  and

                

        

        
          	
                   
      

                	
                  ii.

                	
                  $12,141, payable in the form of
      issuance of restricted Company common stock, valued at $0.75 per
      share.

                

        

        

        It is
agreed that cash portions of this additional bonus shall not be paid until (i)
the cash portions of the bonus set forth in Item 1 have been paid (including the
similar bonus being paid to Mr. Sokolow) and (ii) the ‘early warning’
requirements of Section 1 are met.

        

        3.           With
respect to bonuses payable to the undersigned for the fiscal years ending
September 30, 2010 and thereafter, the undersigned shall execute and deliver an
amendment to the Agreement in the form attached hereto as Exhibit
A.

        

        Except as
amended hereby, all terms and provisions of the Agreement shall continue
unmodified and remain in full force and effect.

         

         

      

      
        
          	 	 	 	Sincerely,	 
	 	 	 	 	 
	
                   

                	 	 	
                  

                    /S/
      MARK GOLDWASSER

                    Mark
      Goldwasser

                  

                	 

        

      

       

      Accepted
and Agreed:

       

      National
Holdings Corporation

       

      By: /S/ LEONARD J.
SOKOLOW                                                                

             Leonard
J. Sokolow, President

       

       

      2

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