Document:

ex-4_4.htm

AFH Acquisition IV, Inc. 8-K

 

Exhibit 4.4

 

Promissory Note (2-5 Years)

 

On this date of January 12, 2009 (“Loan Date”), in return for valuable consideration received, the undersigned borrower Emmaus Medical, Inc., a Delaware corporation, located at 20725 S. Western Ave., Ste. 136, Torrance, CA 90501 (“Borrower”) agrees to pay to Shigeru Matsuda (“Lender”), the sum of 20,000,000 Japanese Yen (“Loan Amount”), together with interest thereon at the rate of six and one-half percent (6.5%) per annum, under the following terms and conditions of this Promissory Note (“Note”).

 

1.           Terms of Repayment (Balloon Payment):  Starting three months after the Loan Date and continuing thereafter quarterly until the two (2) year anniversary date of the Loan Date, if requested by the Lender, the Borrower shall make quarterly payments of interest only in the amount of six and one-half percent (6.5%) simple interest of the Loan Amount, as set forth in Attachment 1 hereto.  If Lender wishes to allow the interest payments to accrue, then the unpaid but accrued interest shall be added to the principal.  All payments shall be first applied to interest and the balance to principal.  The entire unpaid principal and any accrued interest thereon shall become immediately due and payable on demand by the holder of this Note anytime after the two (2) year anniversary of the Loan Date.  However, if Lender so wishes and Borrower agrees, the loan can be extended up to a total of five (5) years with the same interest rate of 6.5%.  If Lender agrees to extend the loan beyond two years, then the Lender will continue to have the conversion option noted in Article 5 below during the extension period.

 

2.           Prepayment:  This Note may be prepaid in whole or in part at any time without premium or penalty.  All prepayments shall first be applied to interest, and then to principal payments in the order of their maturity.  However, nothing in the section shall impinge on Borrower’s rights under section 5 here.

 

3.           Late Fees:  In the event that a payment due under this Note is not made within ten (10) days of the time set forth herein, the Borrower shall pay an additional late fee in the amount of two (2) percent of said late interest payment.

 

4.           Place of Payment:  All payments due under this note shall be sent to the Lender’s address, as noted in Attachment 1 hereto, or at such other place as the holder of this Note may designate in writing in the future.

 

5.           Conversion Option:  At any time during the two year term of this Note (and any extension period), Lender shall have a right to convert the Loan Amount to common stock of Emmaus Medical, Inc. at $90 per share, regardless of the then price of common stock of Emmaus Medical, Inc.  If Lender chooses to excise such conversion option, Lender will agree to abide by all requirements Borrower then has in place to purchase stock in Emmaus Medical, Inc.

 

6.           Default:  In the event of default, the Borrower agrees to pay all costs and expenses incurred by the Lender, including all reasonable attorney fees as permitted by law for the collection of this Note upon default.

 

7.           Additional Guarantors:  Lender understands and acknowledges that Emmaus Medical, Inc. is the borrower on this Note.  However, for added security to Lender, Yutaka Niihara, M.D., MPH, President and CEO of Emmaus Medical, Inc. and Daniel R. Kimbell, Esq., COO of

 

  

  

  

Emmaus Medical, agree to be a primary guarantor and a secondary guarantor, respectively, on the Note.  If Emmaus Medical, Inc. cannot pay the Note or make timely interest payments when due such payment(s) are due, then Yutaka Niihara, and Daniel R. Kimbell, in that order, agree to make such payment(s) to Lender.

 

8.           Acceleration of Debt: If the Borrower or the additional guarantors fail to make any payment due under the terms of this Note, or breach any condition relating to any security, security agreement, note, mortgage or lien granted as collateral security for this Note, seeks relief under the Bankruptcy Code, or suffers an involuntary petition in bankruptcy or receivership not vacated within thirty (30) days, the entire balance of this Note and any interest accrued thereon shall be immediately due and payable to the holder of this Note.

 

9.           Modification: No modification or waiver of any of the terms of this Agreement shall be allowed unless by written agreement signed by the parties.  No waiver of any breach or default hereunder shall be deemed a waiver of any subsequent breach or default of the same or similar nature.

 

10.           Transfer of the Note: The Borrower hereby waives any notice of the transfer of this Note by the Lender or by any subsequent holder of this Note, agrees to remain bound by the terms of this Promissory Note subsequent to any transfer, and agrees that the terms of this Note may be fully enforced by any subsequent holder of this Note.

 

11.           Severability of Provisions: If any portion of this Note is deemed unenforceable, all other provisions of this Note shall remain in full force and effect.

 

12.           Choice of Law:  All terms and conditions of this Note shall be interpreted under the laws of California, U.S.A.

 

Signed Under Penalty of Perjury, this ____ day of January, 2009.

 

Emmaus Medical, Inc.

/s/ Yutaka Niihara                                                                                                                   

By Yutaka Niihara, President & CEO

Primary Guarantor

/s/ Yutaka Niihara                                                   

Yutaka Niihara

Secondary Guarantor

/s/ Daniel R. Kimbell                                               

Daniel R. Kimbell

  

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ATTACHMENT 1

 

 

	
Lender Name:

	
Shigeru Matsuda

	
Lender Address:

	
c/o Eastwind Ltd.

Nippon Press Center Bldg., 6th Fl.

Chiyoda-ku, Tokyo

JAPAN 100-0011

	  	  
	
Loan Amount:

	
Japanese ¥20,000,000

	  	  
	
Quarterly Interest at 6.5% Per Annum on Loan Amount:

	
Japanese ¥325,000

 

- 3 -ex-10_1.htm

AFH Acquisition IV, Inc. 8-K

 

Exhibit 10.1

 

SHARE CANCELLATION AGREEMENT

 

THIS SHARE CANCELLATION AGREEMENT (this “Agreement”) is made and entered into as of this 21st day of April, 2011, by and between AFH Acquisition IV, Inc., a Delaware corporation (“AFH”), and AFh Holding & Advisory, LLC, a Delaware limited liability company (the “Stockholder”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Merger Agreement (as hereinafter defined).

 

RECITALS

 

WHEREAS, as of the date hereof, AFH entered into a Merger Agreement (the “Merger Agreement”) with Emmaus Medical, Inc., a Delaware corporation, AFH Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of AFH, and the Stockholder., a copy of which is attached hereto as Exhibit A;

WHEREAS, pursuant to the terms of the Merger Agreement, and as a condition to the completion of the transactions contemplated by the Merger Agreement, AFH agreed to enter into an agreement with the Stockholder to cancel 1,827,750 shares of AFH common stock held by the Stockholder (the “Shares”); and

WHEREAS, the Stockholder acknowledges that it would benefit from the completion of the transactions contemplated by the Merger Agreement.

NOW, THEREFORE, for and in consideration of the execution and delivery of the Merger Agreement, and the payment of good and valuable consideration pursuant to the Merger Agreement, the receipt and sufficiency of which is hereby acknowledged, AFH and the Stockholder, each intending to be legally bound by this Agreement, hereby agree as follows:

AGREEMENT

 

1.  DUTIES

 

1.1  Rights and Obligations of the Parties.  The parties shall be entitled to such rights and shall perform such duties as set forth herein.  In the event that the terms of this Agreement conflict in any way with the provisions of the Merger Agreement, the Merger Agreement shall control.

 

1.2  Cancellation of Shares.  On the Closing Date, the Shares held by the Stockholder shall be deemed automatically cancelled

 

Execution of Further Documentation.  The Stockholder agrees to execute any and all documents, including, but not limited to, stock powers for the stock certificates representing the Shares, as AFH reasonably determines necessary to effect the cancellation of Shares pursuant to the terms of this Agreement.

 

  

1

  

 

2.  DIVIDENDS; VOTING RIGHTS; STOCK SPLITS

 

2.1  Cash Dividends; Voting Rights.  Prior to the Closing of the Merger Agreement, the Stockholder shall have rights to cash or stock dividends with respect to any uncancelled Shares, if any, and have rights to vote their respective uncancelled Shares, if any such matter requiring stockholder approval shall arise.

2.2  Stock Splits; Stock Dividends.  In the event of any stock split or other similar transaction with respect to AFH common stock that becomes effective prior to Closing of the Merger Agreemeent, the additional shares issued with respect to the Shares to be cancelled shall be similarly cancelled.

 

3.  MISCELLANEOUS

 

3.1  Transferability.  None of the rights and obligations of the Stockholder hereunder shall be transferable.

 

3.2  Notices.  Any notices or other communications required or permitted under this Agreement shall be in writing and shall be sufficiently given if sent by (i) registered or certified mail, postage prepaid, addressed as follows, (ii) facsimile to the facsimile numbers identified below or (iii) overnight courier (such as UPS or FedEx), addressed as follows:

 

If to AFH:

 

AFH Acquisition IV, Inc.

9595 Wilshire Blvd., Suite 700

Beverly Hills, California 90212

Attention: Amir F. Heshmatpour

If to the Stockholder:

AFH Holding & Advisory, LLC

9595 Wilshire Blvd., Suite 700

Beverly Hills, California 90212

Attention: Amir F. Heshmatpour

or such other person or address as shall be furnished in writing by any of the parties and any such notice or communication shall be deemed to have been given as of the date so mailed.

 

3.3  Construction.  The validity, enforcement and construction of this Agreement shall be governed by the laws of the State of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.

 

3.4  Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, assigns and transferees, as the case may be.

 

  

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3.5  Severability.  If any provision or section of this Agreement is determined to be void or otherwise unenforceable, it shall not affect the validity or enforceability of any other provisions of this Agreement which shall remain enforceable in accordance with their terms.

 

3.6  Interpretation.  The headings and subheadings contained in this Agreement are for reference only and for the benefit of the parties and shall not be considered in the interpretation or construction of this Agreement.  This Agreement shall be construed and interpreted without regard to any rule or presumption requiring that it be construed or interpreted against the party causing it to be drafted.

 

3.7  Execution in Counterparts.  This Agreement may be executed in any number of counterparts (including facsimile counterparts), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

3.8  Amendments.  This Agreement may be amended from time to time but only by written agreement signed by all of the parties hereto.

 

3.9 Entire Agreement.  This Agreement constitutes the entire understanding and agreement of the parties relating to the subject matter hereof and supersedes any and all prior understandings, agreements, negotiations and discussions, both written and oral, between the parties hereto with respect to the subject matter hereof.

 

 

[Signatures appear on following page]

 

  

3

  

IN WITNESS WHEREOF, the parties have executed this Share Cancellation Agreement as of the day and year first above written.

	
AFH ACQUISITION IV, INC.

 

 

By:  /s/ Amir Heshmatpour                               

Name:  Amir F. Heshmatpour

Title:    President

	  
	
 

 

STOCKHOLDER

 

 

AFH HOLDING & ADVISORY, LLC

 

 

 

By:  /s/ Amir Heshmatpour                                                                                                   

Name:  Amir F. Heshmatpour

Title:    Manager

 

SIGNATURE PAGE TO SHARE CANCELLATION AGREEMENT

 

  

  

  

Acknowledged and Agreed:

Emmaus Medical, Inc.

/s/ Yutaka Niihara________________________

By: Dr. Yutaka Niihara

Title: Chief Executive Officer

SIGNATURE PAGE TO SHARE CANCELLATION AGREEMENT

  

  

  

Exhibit A

Merger Agreement

[FILED AS EXHIBIT 2.1 TO THE REGISTRANT’S CURRENT REPORT ON FORM 8-K

FILED WITH THE SECURITIES AND EXCHANGE AND COMMISSION ON APRIL 25, 2011]

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