Document:

Document

EXHIBIT 10.78

AMENDMENT TO STOCK PURCHASE AGREEMENT

This AMENDMENT TO STOCK PURCHASE AGREEMENT (this “Amendment”) is made as of March 26, 2021, by and between Knob Creek Acquisition Corp., a Tennessee corporation (“Buyer”), Star Equity Holdings, Inc. (formerly known as Digirad Corporation), a Delaware corporation (“Parent”), Project Rendezvous Acquisition Corporation, a Delaware corporation (“Seller”), and DMS Health Technologies, Inc., a North Dakota corporation (the “Company”). Capitalized terms used in this Amendment and not otherwise defined herein shall have the meanings ascribed to them in the Purchase Agreement (as defined below).
R E C I T A L S
WHEREAS, Buyer, Parent, Seller, and the Company are parties to that certain Stock Purchase Agreement, dated as of October 30, 2020 (the “Purchase Agreement”), providing for the purchase by Buyer of all of the outstanding capital stock of the Company on the terms and subject to the conditions set forth therein; 
WHEREAS, pursuant to Section 12.9 of the Purchase Agreement, the Purchase Agreement may be amended by the execution of an instrument in writing signed by Buyer and Seller; and
WHEREAS, the parties hereto desire to amend the Purchase Agreement as set forth herein. 
A G R E E M E N T
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 
1.    Amendments to the Purchase Agreement.  
(a)    Exhibit A to the Purchase Agreement is hereby removed such that the Purchase Agreement no longer includes any exhibits.
(b)    Section 2.1(a) of the Purchase Agreement is hereby amended and restated to read in its entirety as follows:
“(a)    to Seller, an amount equal to the Net Initial Purchase Price;”
(c)    Section 2.1(b) of the Purchase Agreement is hereby removed in its entirety and replaced with the following:
“(b)    [Intentionally Omitted];”
(d)    Section 2.2(a) of the Purchase Agreement is hereby removed in its entirety and replaced with the following:
“(a)    [Intentionally Omitted];”
(e)    Section 2.2(b) of the Purchase Agreement is hereby amended and restated to read in its entirety as follows:

1

“(b)    Within one hundred eighty (180) days after the Closing Date, Buyer shall prepare and deliver to Seller a statement setting forth Buyer’s determination of (i) the Closing Net Working Capital and (ii) the Closing Cash (the “Closing Statement”), showing all calculations in reasonable detail.  The Closing Statement shall be based upon the books and records of the Company and shall be prepared in accordance with GAAP in the manner applied in the preparation of the Company Financial Statements.”
(f)    All references to the term “Estimated Closing Net Working Capital” in Sections 2.2(c) and 2.2(d) of the Purchase Agreement are hereby deleted and replaced with term “Target Closing Net Working Capital”.
(g)    All references to the phrase “plus the Estimated Closing Cash” in Section 2.2(d) of the Purchase Agreement are hereby deleted.
(h)    Section 2.3 of the Purchase Agreement is hereby removed in its entirety and replaced with the following:
“2.3    [Intentionally Omitted].”
(i)    The first sentence of Section 9.5(a) of the Purchase Agreement is hereby amended and restated to read in its entirety as follows:
“(a)    If any Indemnitee has or claims in good faith to have incurred or suffered Losses for which it is or may be entitled to be held harmless, indemnified, compensated or reimbursed under this Article IX or for which it is entitled to a monetary remedy, such Indemnitee may deliver a written notice of claim (a “Notice of Claim”) to the applicable Indemnitor.”
(j)    The first sentence of Section 9.5(b) of the Purchase Agreement is hereby amended and restated to read in its entirety as follows:
“(b) During the twenty (20)-day period commencing upon delivery by an Indemnitee to the applicable Indemnitor of a Notice of Claim (the “Claim Dispute Period”), the applicable Indemnitor may deliver to the Indemnitee who delivered the Notice of Claim a written response (the “Response Notice”) in which the Indemnitor: (i) agrees that the full Claimed Amount is owed to the Indemnitee; (ii) agrees that part, but not all, of the Claimed Amount (such agreed portion, the “Agreed Amount”) is owed to the Indemnitee; or (iii) indicates that no part of the Claimed Amount is owed to the Indemnitee.”
(k)    Section 9.5(c) of the Purchase Agreement is hereby amended and restated to read in its entirety as follows:
(c)    If the Indemnitor delivers a Response Notice agreeing that the full Claimed Amount is owed to the Indemnitee or fails to deliver a Response Notice prior to the end of the Claim Dispute Period, then within three (3) Business Days following the receipt of such Response Notice by the Indemnitee or, if no Response Notice is delivered before the end of the Claim Dispute Period, within three (3) Business Days following end of the Claim Dispute Period, the Indemnitor shall, subject to the limitations set forth in this Article IX, pay to the applicable Indemnitee an amount in cash equal to the full Claimed Amount.

2

(l)    Section 9.5(d) of the Purchase Agreement is hereby amended and restated to read in its entirety as follows:
(d)    If the Indemnitor delivers a Response Notice during the Claim Dispute Period agreeing that less than the full Claimed Amount is owed to the Indemnitee, then within three (3) Business Days following the receipt of such Response Notice, the Indemnitor shall, subject to the limitations set forth in this Article IX, pay to the applicable Indemnitee an amount in cash equal to the Agreed Amount.
(m)    Section 9.5(e) of the Purchase Agreement is hereby amended and restated to read in its entirety as follows:
(e)    If the Indemnitor delivers a Response Notice during the Claim Dispute Period indicating that there is a Contested Amount, the Indemnitor and the Indemnitee shall attempt in good faith to resolve the dispute related to the Contested Amount.  If the Indemnitee and the Indemnitor resolve such dispute, a settlement agreement stipulating the amount owed to the Indemnitee (the “Stipulated Amount”) shall be signed by the Indemnitee and the Indemnitor.  Within three (3) Business Days following the execution of such settlement agreement (or such shorter period of time as may be set forth in the settlement agreement), the Indemnitor shall, subject to the limitations set forth in this Article IX, pay to the applicable Indemnitee an amount in cash equal to the Stipulated Amount.
(n)    Section 9.6 of the Purchase Agreement is hereby removed in its entirety and replaced with the following:
9.6    [Intentionally Omitted].
(o)    Section 11.1 of the Purchase Agreement is hereby amended to remove the following defined terms and their corresponding definitions in their entirety:  “Escrow Agent”; “Escrow Agreement”; “Estimated Closing Cash”; “Estimated Closing Net Working Capital”; “Indemnity Escrow Account”; “Indemnity Escrow Amount”; “Pending Claim Amount”; and “Unresolved Indemnity Escrow Claim”.
(p)    The definition of “Net Initial Purchase Price” set forth in Section 11.1 of the Purchase Agreement is hereby amended and restated to read in its entirety as follows:
    “Net Initial Purchase Price” means an amount equal to (i) Eighteen Million Seven Hundred Fifty Thousand Dollars ($18,750,000), minus (ii) any Transaction Expenses to be paid by the Company or any of its Subsidiaries at or following the Closing, minus (iii) the aggregate amount of Debt (other than any SBA PPP Loans that remain outstanding with respect to which no final forgiveness determination has been made by the SBA) as of the Closing Date, and minus (iv) the SBA PPP Loan Escrow Amount, if any.

3

2.    Amendment to the Disclosure Letter.
2.1      Section 6.9(c) of the Disclosure Letter is hereby amended and restated to read in its entirety as set forth on Exhibit A.
3.    Miscellaneous.
3.1    Effect of Amendment.  Except as otherwise expressly provided for herein, the Purchase Agreement shall remain unchanged and shall continue in full force and effect.  From and after the date hereof, any references to the Purchase Agreement shall be deemed to be references to the Purchase Agreement as amended by this Amendment.
3.2    Successors and Assigns.  The terms and conditions of this Amendment shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.
3.3    Governing Law. This Amendment shall be interpreted and enforced in accordance with, and its validity and performance shall be governed by, the laws of the State of Delaware without regard to its laws regarding conflicts of laws.  
3.4    Counterparts; Electronic Delivery.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Any signature page delivered by facsimile or electronic image transmission shall be binding to the same extent as an original signature page.  Any party that delivers a signature page by facsimile or electronic image transmission shall deliver an original counterpart to any other party that requests such original counterpart, it being understood and agreed that the failure to deliver any such original counterpart upon request shall not affect the binding nature of the signature page delivered by facsimile or electronic image transmission.  

[signature page follows]

4

IN WITNESS WHEREOF, the parties have duly executed this Amendment to Stock Purchase Agreement as of the date first above written.
SELLER:
Project Rendezvous Acquisition Corporation
By:  /s/Matthew G. Molchan            
Name:    Matthew G. Molchan
Its:    President
PARENT:
Star Equity Holdings, Inc. 
By:  /s/David J. Noble                
Name:    David J. Noble
Its:    Chief Financial Officer
COMPANY:
DMS Health Technologies, Inc.
By: /s/ Matthew G. Molchan            
Name:    Matthew G. Molchan
Its:    President
BUYER:
Knob Creek Acquisition Corp.
By: /s/Patrick J. Doyle            
Name: Patrick J. Doyle            
Its:  President                    

[Signature Page to Amendment to Stock Purchase Agreement]ex_237402.htm

Exhibit 4.2

 

Description of the Company’s Common Stock Registered Under Section 12 of the Exchange Act of 1934, as amended

 

Nova LifeStyle, Inc. (the “Company”, “we”, “us” or “our”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) which consists of common stock, $0.001 par value per share (the “Common Stock”). The following is a summary of information concerning our Common Stock. This summary does not purport to be a complete statement of the relevant provisions of the Common Stock and is qualified in its entirety by the provisions of our Articles of Incorporation, as amended (the “Articles of Incorporation”), our Amended and Restated Bylaws (“Bylaws”), and applicable provisions of the Nevada Revised Statutes (the “NRS”).

 

Our authorized capital stock consists of 15,000,000 shares of Common Stock, par value $0.001 per share.  Currently, we have no other authorized class of stock. 

 

As of March 25, 2021, there were 5,567,544 shares of our Common Stock outstanding, held by approximately 48 stockholders of record. In addition, there are 34,796 shares that were granted and vested but not yet issued, 19,500 shares of unvested restricted stock and options to purchase 340,500 shares of the Company’s common stock as of March 25, 2021. Our Common Stock is currently traded on The NASDAQ Stock Market LLC under the symbol “NVFY”. The transfer agent and registrar for our common stock is Issuer Direct Corporation. 

 

The holders of our Common Stock are entitled to one vote per share. Our Articles of Incorporation do not provide for cumulative voting. The holders of our Common Stock are entitled to receive ratably such dividends, if any, as may be declared by our board of directors out of legally available funds; however, the current policy of our board of directors is to retain earnings, if any, for operations and growth. Upon liquidation, dissolution or winding-up, the holders of our Common Stock are entitled to share ratably in all assets that are legally available for distribution. The holders of our Common Stock have no preemptive, subscription, redemption or conversion rights.

 

All issued and outstanding shares of Common Stock are fully paid and nonassessable. Shares of our Common Stock that may be offered for resale, from time to time, under this prospectus will be fully paid and nonassessable.

 

As a Nevada corporation, we are also subject to certain provisions of the Nevada Revised Statutes (the “NRS”) that have anti-takeover effects and may inhibit a non-negotiated merger or other business combination. These provisions are intended to encourage any person interested in acquiring us to negotiate with, and to obtain the approval of, our board of directors in connection with such a transaction. However, certain of these provisions may discourage a future acquisition of us, including an acquisition in which the stockholders might otherwise receive a premium for their shares. As a result, stockholders who might desire to participate in such a transaction may not have the opportunity to do so. The NRS provides that specified persons who, with or through their affiliates or associates, own, or affiliates and associates of the subject corporation at any time within two years own or did own, 10% or more of the outstanding voting stock of a corporation cannot engage in specified business combinations with the corporation for a period of two years after the date on which the person became an interested stockholder, unless the combination meets all of the requirements of the articles of incorporation of the company, and: (i) the combination or transaction by which such person first became an interested stockholder was approved by the board of directors before they first became an interested stockholder; or (ii) such combination is approved by: (x) the board of directors; and (y) at an annual or special meeting of the stockholders (not by written consent), the affirmative vote of stockholders representing at least 60% of the outstanding voting power not beneficially owned by such interested stockholder. The law defines the term “business combination” to encompass a wide variety of transactions with or caused by an interested stockholder, including mergers, asset sales and other transactions in which the interested stockholder receives or could receive a benefit on other than a pro rata basis with other stockholders.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00325-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00325-of-00352.parquet"}]]