Document:

ex10-1.htm

Exhibit 10.1

 

 

June 16, 2017

 

Williams Financial Group
CityPlace Tower
2711 N. Haskell Avenue, Suite 2900
Dallas, TX 75204

 

Re: Termination of Asset Purchase Agreement

 

Gentlemen:

 

Reference is made to that certain Asset Purchase Agreement dated as of March 10, 2017 (the “Agreement”) by and among National Holdings Corporation (“National”) and The Williams Financial Group, Inc., WFG Investments, Inc., WFG Advisors, LP, WFG Strategic Alliance, Inc., Advisory Marketing Services, LLC and WM Management Services, Inc. (collectively, “Williams” or the “Company”). Capitalized terms not otherwise defined herein shall have the meaning set forth in the Agreement.

 

By and upon execution of this letter agreement, the parties hereto agree that the Agreement is and shall be terminated pursuant to Section 9.13(a) thereof and of no further force and effect. The parties hereby mutually release each other and each of their successors and assigns from and against (i) any and all costs, damages, actions, proceedings, demands or claims whatsoever that either of them now has or may hereafter have against the other party hereto, by reason of or in connection with the Agreement and (ii) any covenants or obligations which by their terms expressly survive termination of the Agreement. Notwithstanding the foregoing, the parties’ rights and obligations under Sections 7(c) through 7(f) shall remain in full force and effect.

 

Sincerely,

 

National Holdings Corporation

 

By: /s/ Glenn Worman                                   

Name:  Glenn Worman

Title:    Chief Operation Officer, & Chief Financial Officer

 

 

Acknowledged and agreed to by:

 

The Williams Financial Group, Inc.

 

By: /s/  David Williams                                   

Name:   David Williams

Title:     President

 

 

 

 

 

June 16, 2017

Page 2 of 2 

 

 

 

WFG Investments, Inc.

 

By: /s/ David Williams                                   

Name:  David Williams

Title:    President

 

 

WFG Advisors, LP

 

By: /s/ David Williams                                  

Name:  David Williams

Title:    President

 

 

WFG Strategic Alliance, Inc.

 

By: /s/ David Williams                                   

Name:  David Williams

Title:    President

 

 

Advisory Marketing Services, LLC

 

By: /s/ David Williams                                   

Name:  David Williams

Title:    President

 

 

WFG Management Services, Inc.

 

By: /s/ David Williams                                  

Name:  David Williams

Title:    PresidentNUMBER

        ________-
	 	(SEE
                                         REVERSE SIDE FOR LEGEND)

        THIS
        WARRANT WILL BE VOID IF NOT EXERCISED PRIOR TO THE EXPIRATION DATE (DEFINED BELOW)

         
	 	WARRANTS

 

CUSIP

 

SERIES
X REDEEMABLE WARRANT

 

THIS
CERTIFIES THAT, for value received

 

is
the registered holder of a warrant or warrants (the “Warrant”), expiring at 5:00 p.m., New York City time, on April
30, 2024 to purchase one fully paid and non-assessable share of common stock, par value $.001 per share (“Shares”),
of PAVmed Inc., a Delaware corporation (the “Company”) for each Warrant evidenced by this Warrant Certificate. The
Warrant entitles the holder thereof to purchase from the Company, commencing October 31, 2018, such number of Shares of the Company
at the Warrant Price, upon surrender of this Warrant Certificate and payment of the Warrant Price at the office or agency of the
Warrant Agent, Continental Stock Transfer & Trust Company, but only subject to the conditions set forth herein and in the
Warrant Agreement between the Company and Continental Stock Transfer & Trust Company. In no event will the Company be required
to net cash settle any warrant exercise. The Warrant Agreement provides that upon the occurrence of certain events the Warrant
Price and the number of Shares purchasable hereunder, set forth on the face hereof, may, subject to certain conditions, be adjusted.
The term Warrant Price as used in this Warrant Certificate refers to the price per Share at which Shares may be purchased at the
time the Warrant is exercised. The initial Warrant Price per share of Common Stock for any Warrant is equal to $6.00 per share.

 

Upon
any exercise of the Warrant for less than the total number of full Shares provided for herein, there shall be issued to the registered
holder hereof or the registered holder’s assignee a new Warrant Certificate covering the number of Shares for which the
Warrant has not been exercised.

 

Warrant
Certificates, when surrendered at the office or agency of the Warrant Agent by the registered holder hereof in person or by attorney
duly authorized in writing, may be exchanged in the manner and subject to the limitations provided in the Warrant Agreement, but
without payment of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor and evidencing in
the aggregate a like number of Warrants.

 

Upon
due presentment for registration of transfer of the Warrant Certificate at the office or agency of the Warrant Agent, a new Warrant
Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants shall be issued to
the transferee in exchange for this Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without
charge except for any applicable tax or other governmental charge.

 

The
Company and the Warrant Agent may deem and treat the registered holder as the absolute owner of this Warrant Certificate (notwithstanding
any notation of ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution
to the registered holder, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice
to the contrary.

 

This
Warrant does not entitle the registered holder to any of the rights of a stockholder of the Company.

The
Company reserves the right to call the Warrant at any time prior to its exercise commencing on April 30, 2019, at a price of $0.01
per Warrant, if the volume weighted average price per share of the Shares has been at least $18.00 (as adjusted for stock splits,
stock dividends, or similar events) for twenty trading days out of the thirty trading day period ending three business days prior
to the notice of call, in addition to certain other conditions as described in the Warrant Agreement. Any Warrant either not exercised
or tendered back to the Company by the end of the date specified in the notice of call shall be canceled on the books of the Company
and have no further value except for the $.01 call price.

 

By

 

	 	 	 
	Chairman	 	Secretary

 

    	 	 	 

    	 		 

    

 

SUBSCRIPTION
FORM

To
Be Executed by the Registered Holder in Order to Exercise Warrants

 

The
undersigned Registered Holder irrevocably elects to exercise ______________ Warrants represented by this Warrant Certificate,
and to purchase the Common Stock issuable upon the exercise of such Warrants, and requests that Certificates for such shares shall
be issued in the name of

 

	(PLEASE
    TYPE OR PRINT NAME AND ADDRESS)
	 
	 

(SOCIAL
SECURITY OR TAX IDENTIFICATION NUMBER)

and
be delivered to ______________________________________________________________________

(PLEASE
PRINT OR TYPE NAME AND ADDRESS)

 

and,
if such number of Warrants shall not be all the Warrants evidenced by this Warrant Certificate, that a new Warrant Certificate
for the balance of such Warrants be registered in the name of, and delivered to, the Registered Holder at the address stated below:

 

	Dated:
    _____________________	 	 
	 	 	(SIGNATURE)
	 	 	 
	 	 	 
	 	 	(ADDRESS)
	 	 	 
	 	 	 
	 	 	(TAX IDENTIFICATION
    NUMBER)

 

ASSIGNMENT

To
Be Executed by the Registered Holder in Order to Assign Warrants

 

For
Value Received, _______________________ hereby sell, assign, and transfer unto

 

	(PLEASE
    TYPE OR PRINT NAME AND ADDRESS)
	 
	 

(SOCIAL
SECURITY OR TAX IDENTIFICATION NUMBER)

and
be delivered to ______________________________________________________________________

(PLEASE
PRINT OR TYPE NAME AND ADDRESS)

 

______________________
of the Warrants represented by this Warrant Certificate, and hereby irrevocably constitute and appoint _________________________________
Attorney to transfer this Warrant Certificate on the books of the Company, with full power of substitution in the premises.

 

Dated:
__________________________________________________________

(SIGNATURE)

 

The
signature to the assignment of the Subscription Form must correspond to the name written upon the face of this Warrant Certificate
in every particular, without alteration or enlargement or any change whatsoever, and must be guaranteed by a commercial bank or
trust company or a member firm of the NYSE Amex, New York Stock Exchange, Pacific Stock Exchange or Chicago Stock Exchange.June
19, 2017

 

Albuquerque
Suite Hospitality LLC

Restructuring Agreement-Second Addendum

 

This
Agreement is made as of June 19, 2017, and amends the Restructuring Agreement made as of August 30, 2010 and amended December
9, 2013, by and among:

 

RARE
EARTH FINANCIAL, LLC, an Arizona limited liability company (“Rare Earth”);

 

RRF
LIMITED PARTNERSHIP, a Delaware limited partnership(“RRF”);

 

INNSUITES
HOSPITALITY TRUST, an Ohio business trust (“IHT”) and General Partner of RRF; and

 

ALBUQUERQUE
SUITE HOSPITALITY LLC, an Arizona limited liability company (“ASH”)

 

RECITALS:

 

	A.
    	ASH
    owns and operates the Albuquerque InnSuites Hotel & Suites, a 100-unit hotel in Albuquerque, New Mexico (the “Property”)
	 	 
	B.	ASH
    is currently owned approximately 50.5% by IHT and approximately 0.04% by Rare Earth.
	 	 
	C.
    	Rare
    Earth and IHT wish to restructure ASH, creating 250 additional Class A membership interests (referred to collectively as “Interests”),
    and cause ASH to offer and sell up to 250 Class A Interests in ASH to accredited investors for 2,500,000 (the “Offering”).
    Rare Earth, as the Administrative Member of ASH, will coordinate the Offering and sale of Class A Interests to third parties.
    Rare Earth, IHT and other affiliates may purchase Interests under the Offering. If IHT purchases Interests, they will be designated
    Class B Interests. If Rare Earth buys Interests, they will be designated Class C Interests. ASH will offer 50 new Class A
    Interests, and the proceeds from the sale of those Interests will be used to repay loans of $500,000. IHT will sell 200 Class
    B Interests. 
	 	 
	D.	Proceeds
    from the Offering will be used: (a) in part to repay IHT up to $500,000 of its loan of $800,000; and (b) to pay IHT $200,000
    to purchase 200 Class B Interests for $10,000 each. 

 

FOR
VALUABLE CONSIDERATION RECEIVED, the parties agree as follows:

 

	1.	Prior
    restructuring of ASH. Rare Earth, as the sole Administrative Member, has or will amend the Articles of Organization and
    Operating Agreement, in form and substance acceptable to IHT and Rare Earth and ASH for ASH to confirm that: 

 

    	 	 	 

    	 

    

 

	 	(a)	ASH
    is a member managed limited liability company;
	 	 	 
	 	(b)	There
    are three classes of Membership Interests authorized for issuance in amounts sufficient to accommodate the Offering and provide
    for distribution and liquidation rights and preferences as described in Section 3 and 7 below;
	 	 	 
	 	(c)	Rare
    Earth is the Administrative Member of ASH;
	 	 	 
	 	(d)	The
    total number of ASH Interests will increase from 550 to 600 with the 50 new Class A Interests created to provide $500,000
    in proceeds to be paid to IHT to reduce approximately $800,000 in advances from IHT to ASH by $500,000.

 

	2.	Offering.
    ASH will conduct an Offering to accredited investors only of up to 250 Class A Interests at $10,000 per Interest (the “Offering
    Price”), for a total Offering of $2,500,000 (the “Offering”). The Offering Price per
    Interest of $10,000, is the same as the 2010 Offering, and 2013 Offering which reflects the appraised value of the Property
    of $4,900,000, less current debt and other liabilities for a net equity value. The Offering contemplates the sale of Interests
    to retire $500,000 in ASH intercompany debt, and the purchase of 200 Class B Interests from IHT with the proceeds of sale
    from 200 new Class A Interests. Subject to the closing of the Offering, IHT will pay (a) a Restructuring and Offering Fee
    to Rare Earth of $200,000 provided at least 100 Interests are subscribed; and (b) offering costs of $30,000. There is a provision
    for over subscription of up to 40 Interests at $10,000 per Interest. 
	 	 
	3.	Interests.
    

 

 (a) All 600 Membership Interests will have equal voting rights and will share equally in all distributions (including distributions or proceeds payable upon a Triggering Event), subject to (1) priority distribution rights and distribution catch up rights described in paragraph 3(b), and (2) the Administrative Member’s 50% profit participation right described in paragraph 3(e). All Interests will be redeemable by ASH for $10,000 after payment of all distributions to which such Interests are entitled under paragraphs 3(b) and (c).

 

 (b) All Membership Interests were entitled to receive priority distributions annually from ASH of $700 per $10,000 Interest through December 31, 2015 which has now been all paid. Priority distributions will be paid first to new Class A Interests, second to old Class A, Interests, Class B Interests and third to Class C Interests. Priority distributions will be cumulative through December 31, 2019, so that all priority distributions must be paid in full to new Class A Interests before any priority distributions are paid to old Class A Interests, Class B Interests or Class C Interests, and all priority distributions are paid to Class C Interests. IHT, Rare Earth, James Wirth and certain named affiliates may elect to defer receiving all priority distributions to other holders have been paid current. Upon completion of priority distributions due new Class A Interests through December 31, 2019, Class A and Class B Interests will not participate in distributions by ASH until Class C priority distributions have been paid current through December 31, 2019. If a Triggering Event of ASH occurs (including a sale or refinancing of substantially all of the assets of ASH or merger, sale, liquidation or other ending up of ASH) prior to the payment of all priority distributions of Class A, B, and C Interests, such priority distribution will be paid to the respective Members out of any proceeds of the event before general distribution of the proceeds to the Members (including the Administrative Member’s participation described in 3(e)).

 

    	 	 	 

    	 

    

 

 (c) After December 31, 2019, all Membership Interests will be entitled to annual distributions of $700 per $10,000 Interest, which will be cumulative. All Interests will share equally in all such distributions. If a Triggering Event (as described in 3(b)) of ASH occurs prior to the payment of any accumulated distributions to the Members, such accumulated distributions will be paid out of any proceeds of the event before general distribution of the proceeds to the Members (including the Administrative Member’s participation described in 3(e)). In the event that funds generated from a Triggering Event are insufficient to pay the total amount of all such accumulated distributions owed to the Members, all Members will participate pro rata in the funds available for distribution to them. A special preference to the newly issued 250 Class A Interests will be in effect from September through December 31, 2019 at 7% ($700 per Interest) in preference to old Class A Interests, Class B Interests and Class C Interests.

 

 (d) Distributions will be payable quarterly in arrears based on calendar quarters, due 45 days after the end of the quarter. Distributions will be made every three months provided, in the sole judgment and discretion of the Administrative Member, cash is available for such distributions. ASH will use its best efforts to pay the quarterly distributions contemplated in paragraphs 3 (b) and (c).

 

 (e) In the event that either (a) all Interests have been redeemed or (b) all Interests are current in the distributions to which they are entitled and each Interest has been received distributions totaling at least $10,000, Rare Earth will receive 50% of (1) any distributions made by ASH and (2) the proceeds from any Triggering Event (as defined in 3(b)) as consideration for its role as Administrative Member.

 

	4.	Payments
    to ASH. 100% Proceeds of first 50 Interests of this offering will be payable to ASH in consideration for newly created
    equity in ASH. Expenses of this offering will all be paid by IHT, which will receive payment for the sale of 200 Class B Interests
    to ASH. 
	 	 
	5.	Best
    Efforts. Rare Earth will use its best efforts to sell 250 Interests on or before December 15, 2017.
	 	 
	6.	Removal
    of Administrative Member. At any time, a Majority-in-Interest of the Class A Members may remove Rare Earth as Administrative
    Member and elect a new Administrative Member. Notwithstanding its removal as Administrative Member pursuant to this paragraph,
    Rare Earth will retain the participation right described in paragraph 3(e). 

 

    	 	 	 

    	 

    

 

	7.	Ownership
    of ASH. The table below demonstrates the capital structure of ASH immediately upon restructuring, the capital structure
    in the event of the sale of 250 Class A Interests in the Offering. 

 

In
the event of Sale of 50 newly created Class A Interests and sale of 200 Class B Interests by IHT, which will be paid for by proceeds
from the sale of 200 new Class A Interests

 

	 	 	Current	 	In the Event of Sale of 250

 Class A Interests
	Owners	 	Interests	 	Interests
	Third Parties	 	 	273	 	 	 	521	 
	IHT (Class B)	 	 	278	 	 	 	78	 
	Rare Earth (Class C)	 	 	0.5	 	 	 	1	 
	Total Interests	 	 	550	 	 	 	600	 

 

	8.	Miscellaneous.
    

 

 (a) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Arizona.

 

(b) Waiver.
No waiver or modification of this Agreement shall be valid unless in writing and executed by the party against which the
waiver or modification is to be enforced. No waiver of any breach or default shall operate as a waiver of any other breach or
default, whether similar or difference from the breach or default waived.

 

(c) Severability.
 All provisions of this Agreement are severable, and if any provision is held to be invalid, illegal or unenforceable in any
respect by any court of competent jurisdiction, the validity, legality and enforceability of the remaining provisions shall not
be affected, and this Agreement shall be interpreted as if such invalid, illegal or unenforceable provisions were not contained
herein.

 

(d) Entire
Agreement. This Agreement constitutes the complete understanding of the parties hereto, and supersedes all prior
understandings or agreements, whether oral or written. This Agreement shall be binding upon the inure to the benefit of the
parties hereto, their successors, their legal representatives, heirs and assigns.

 

[Signature
Page to Follow]

 

    	 	 	 

    	 

    

 

The
parties have executed this Agreement effective as of the date first written above.

 

	INNSUITES
    HOSPITALITY TRUST	 	RARE
    EARTH FINANCIAL LLC
	 	 	 	 	 
	By:	/s/
    InnSuites Hospitality Trust	 	By:	/s/
    Rare Earth Financial, LLC
	 	 	 	 	 
	Its:	/s/
    James Wirth, CEO	 	Its:	/s/
    James Wirth, Managing Member

 

ALBUQUERQUE
SUITE HOSPITALITY LLC

By:
REF, Administrative Member

	By:	/s/
    Rare Earth Financial, LLC	 
	 	 	 
	Its:	/s/
    James Wirth, Managing Member

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}]]