SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED
PURSUANT TO RULE 13d-1(a) AND
AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a)
(AMENDMENT NO. 3) (1)
NATIONAL HOLDINGS CORPORATION
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
636375107
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(CUSIP Number)
Strategic Turnaround Equity Partners, L.P. (Cayman),
Bruce Galloway & Gary Herman
c/o Galloway Capital Management, LLC
720 Fifth Avenue, 10th Floor
New York, New York 10019
(212) 247-0581
(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
June 12, 2007
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(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(c), 13d-1(f) or 13d-1(g), check the following
box. X
Note. Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits.
___________________
(1) The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
See Rule 13d-7(b) for other parties to whom copies are to be sent.
(Continued on following pages)
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CUSIP No. 59163F105 13D
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Strategic Turnaround Equity Partners, L.P. "STEP"
(Cayman) 98-0498777
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)
(b) X
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3 SEC USE ONLY
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4 SOURCE OF FUNDS * WC
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) or 2 (e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands
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NUMBER OF
SHARES 7 SOLE VOTING POWER 0
----- -------------------------------------------------
BENEFICIALLY
OWNED BY 8 SHARED VOTING POWER 564,450
----- -------------------------------------------------
EACH
REPORTING 9 SOLE DISPOSITIVE POWER 0
----- -------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER 564,450
------------------------ ----- -------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
564,450 (1)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 6.85% (1)
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14 TYPE OF REPORTING PERSON PN
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(1) On the basis of 8,235,878 shares of Common Stock reported by the
Company to be issued and outstanding as of July 31, 2007 in the
Company's latest Quarterly Report on Form 10-Q, as filed with the
Securities and Exchange Commission on August 2, 2007.
*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 59163F105 13D
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Galloway Capital Management LLC 90-0000838
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)
(b) X
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3 SEC USE ONLY
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4 SOURCE OF FUNDS * N/A
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) or 2 (e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
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NUMBER OF
SHARES 7 SOLE VOTING POWER 0
----- -------------------------------------------------
BENEFICIALLY
OWNED BY 8 SHARED VOTING POWER 700,066 (1)
----- -------------------------------------------------
EACH
REPORTING 9 SOLE DISPOSITIVE POWER 0
----- -------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER 700,066 (1)
------------------------ ----- -------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
(1)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 8.50% (2)
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14 TYPE OF REPORTING PERSON OO
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(1) This includes 564,450 shares of common stock held by "STEP" and
135,616 shares of common stock held by Finvest Yankee, LP for which the
reporting person has the power to vote and dispose.
(2) On the basis of 8,235,878 shares of Common Stock reported by the
Company to be issued and outstanding as of July 31, 2007 in the
Company's latest Quarterly Report on Form 10-Q, as filed with the
Securities and Exchange Commission on August 2, 2007.
*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 59163F105 13D
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Gary L. Herman N/A
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)
(b) X
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3 SEC USE ONLY
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4 SOURCE OF FUNDS * PF
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) or 2 (e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION United States
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NUMBER OF
SHARES 7 SOLE VOTING POWER 6,000
----- -------------------------------------------------
BENEFICIALLY
OWNED BY 8 SHARED VOTING POWER 700,066 (1)
----- -------------------------------------------------
EACH
REPORTING 9 SOLE DISPOSITIVE POWER 6,000
----- -------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER 700,066 (1)
------------------------ ----- -------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
706,066 (1)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
--------- ----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 8.57%% (2)
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14 TYPE OF REPORTING PERSON IN
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(1) This includes 135,616 shares of common stock held by Finvest Yankee, LP
for which the reporting person has the power to vote and dispose.
(2) On the basis of 8,235,878 shares of Common Stock reported by the Company
to be issued and outstanding as of July 31, 2007 in the Company's latest
Quarterly Report on Form 10-Q, as filed with the Securities and Exchange
Commission on August 2, 2007.
*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 59163F105 13D
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Bruce Galloway N/A
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)
(b) X
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3 SEC USE ONLY
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4 SOURCE OF FUNDS * PF
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) or 2 (e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION United States
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NUMBER OF
SHARES 7 SOLE VOTING POWER 180,559 (1)
----- -------------------------------------------------
BENEFICIALLY
OWNED BY 8 SHARED VOTING POWER 700,066 (2)
----- -------------------------------------------------
EACH
REPORTING 9 SOLE DISPOSITIVE POWER 180,559 (1)
----- -------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER 700,559 (3)
------------------------ ----- -------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
880,625
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 10.69% (3)
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14 TYPE OF REPORTING PERSON IN
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(1) Of the 180,559 shares of common stock, 975 shares are held by Mr.
Galloway's son for which Mr Galloway has the power to vote and dispose,
5,000 shares are held by Mr. Galloway's daughter for which Mr. Galloway
has the power to vote and dispose, 165,084 shares are held in Mr.
Galloway's Individual Retirement Account, and 14,000 shares are held by
RexonGalloway Capital Growth, LLC for which Mr. Galloway has investment
and voting discretion.
(2) This includes 564,450 shares of common stock held by STEP and 135,616
shares of common stock held by Finvest Yankee, LP for which, Mr Galloway
is a limited partner and has the power to vote and dispose.
(3) On the basis of 8,235,878 shares of Common Stock reported by the Company
to be issued and outstanding as of July 31, 2007 in the Company's latest
Quarterly Report on Form 10-Q, as filed with the Securities and Exchange
Commission on August 2, 2007.
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Item 1. Security and Issuer.
The class of equity securities to which this Schedule 13D relates to the Common
Stock, no par value, (the "Common Stock") of National Holdings Corporation, a
Delaware corporation (the "Company"). The principal executive offices of the
Company are located at 875 North Michigan Avenue, Chicago, IL 60611.
Item 2. Identity and Background.
This statement is being filed jointly by Strategic Turnaround Equity Partners,
L.P. (Cayman), Galloway Capital Management LLC, Bruce Galloway and Gary L.
Herman (collectively, the "Reporting Persons").
Strategic Turnaround Equity Partners, L.P. (Cayman), is a Delaware limited
liability partnership and is a fund focused on investing primarily in
undervalued public equities. Galloway Capital Management LLC is a Delaware
limited liability company principally engaged in serving as the general partner
of Strategic Turnaround Equity Partners, L.P. (Cayman), Gary L. Herman and Bruce
Galloway are citizens of the United States and managing members of Galloway
Capital Management LLC, Mr. Galloway is a holder of the majority of the
membership interests in Galloway Capital Management LLC and is a holder of the
majority of the partnership interests in Strategic Turnaround Equity Partners,
L.P. (Cayman).
The name and positions of the executive officers and directors of each of the
Reporting Persons are set forth below. Other than as listed in Item 5 of this
Schedule 13D, each executive officer and director listed below disclaims
beneficial ownership of the shares of Common Stock beneficially owned by the
Reporting Persons.
Strategic Turnaround Equity Partners, L.P.
(Cayman) Cayman Islands limited
partnership
General Partner - Galloway
Capital Management LLC
Galloway Capital Management LLC Delaware limited liability company
Managing Member - Gary L. Herman
Managing Member - Bruce Galloway
Bruce Galloway Citizenship - United States
Managing Member -
Galloway Capital
Management LLC
Managing Member - Strategic
Turnaround Equity
Partners, L.P. (Cayman)
Gary L. Herman Citizenship - United States
Managing Member -
Galloway Capital
Management LLC
Managing Member - Strategic
Turnaround Equity
Partners, L.P. (Cayman)
The address of the principal business office of Strategic Turnaround Equity
Partners, L.P. (Cayman) is 1 Cayman Financial Centre, 36 D Dr. Roys Drive Grand
Cayman, Cayman Islands, STEP is managed by Galloway Capital Management LLC, with
its principal place of business at 720 Fifth Avenue, 10th Floor, New York, New
York 10019.
During the last five years, neither the Reporting Persons nor any executive
officer or director of the Reporting Persons have (i) been convicted in any
criminal proceeding or (ii) been a party to any civil proceeding of a judicial
or administrative body of competent jurisdiction as a result of which the
Reporting Persons or any officer or director thereof, was subject to any
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, federal or state securities laws or finding
any violation with respect to such laws.
Item 3. Source and Amount of Funds or Other Consideration.
The shares of Common Stock owned directly and indirectly by the Reporting
Persons were purchased with working capital of Strategic Turnaround Equity
Partners, L.P (Cayman) and the investment capital of Messrs. Galloway and
Herman.
Item 4. Purpose of Transaction.
All of the shares of Common Stock reported herein were acquired for investment
purposes. On each of the following dates and at the following prices per share,
Strategic Turnaround Equity Partners, L.P. (Cayman) made purchases of Common
Stock on the open market with its working capital:
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Date Number of Shares Acquired Price Per Share
---------------- ----------------------------------------- ---------------------
6/15/07 1,000 $3.265
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6/22/07 2,500 $2.82
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7/6/07 5,000 $2.2188
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7/9/07 4,000 $2.2354
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7/12/07 3,000 $2.15
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7/16/07 4,000 $2.3925
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7/17/07 24,100 $2.1585
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7/18/07 5,000 $2.11
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7/19/07 3,000 $2.363
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8/10/07 3,000 $2.58
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On each of the following dates, transfers were made by Bruce Galloway and his
affiliates to Finvest Yankee, LP:
---------------- ----------------------------------------- ---------------------
Date Number of Shares Transferred Price Per Share
---------------- ----------------------------------------- ---------------------
7/20/07 43,868
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8/08/07 16,116
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8/30/2007 50,000
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On each of the following dates, transfers were made by limited partners to STEP
in exchange for limited partnership interests:
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Date Number of Shares Transferred Price Per Share
---------------- ----------------------------------------- ---------------------
1/5/07 21,500 $1.60
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1/5/07 11,500 $1.60
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2/1/07 10,000 $1.50
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On each of the following dates, transfers were made by Bruce Galloway to STEP in
exchange for limited partnership interests:
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Date Number of Shares Transferred Price Per Share
---------------- ----------------------------------------- ---------------------
7/2/07 50,000
---------------- ----------------------------------------- ---------------------
On each of the following dates, purchases were made by Galloway Capital
Management, LLC, Messrs, Galloway and Herman on behalf of Finvest Yankee, LP:
---------------- ----------------------------------------- ---------------------
Date Number of Shares Transferred Price Per Share
---------------- ----------------------------------------- ---------------------
7/25/07 35,500 2.1246
---------------- ----------------------------------------- ---------------------
7/26/07 26,000 2.0635
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7/27/07 4,000 2.2625
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7/31/07 4,000 2.4850
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On each of the following dates and at the following prices per share, Bruce
Galloway or his affiliates made purchases of Common Stock on the open market
with his personal funds:
---------------- ----------------------------------------- ---------------------
Date Number of Shares Acquired Price Per Share
---------------- ----------------------------------------- ---------------------
4/10/07 1,000 2.08
---------------- ----------------------------------------- ---------------------
6/28/07 3,475 2.0441
---------------- ----------------------------------------- ---------------------
7/12/07 400 2.07
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On each of the following dates and at the following prices per share, Gary L.
Herman or his affiliates made purchases of Common Stock on the open market with
his personal funds:
---------------- ----------------------------------------- ---------------------
Date Number of Shares Acquired Price Per Share
---------------- ----------------------------------------- ---------------------
08/20/07 1,000 2.12
---------------- ----------------------------------------- ---------------------
The reporting persons have included purchases of shares of the issurer beyond
the past sixty day period.
Other than as set forth below, the Reporting Persons currently have no plan or
proposal which relates to or would result in any of the actions or transactions
described in paragraphs (a) through (j) of Item 4 of the instructions to this
Schedule 13D.
Item 5. Interest in Securities of the Issuer.
(a) and (b)
As of the date hereof, Strategic Turnaround Equity Partners, L.P. (Cayman),
Galloway Capital Management LLC (as the general partner of Strategic Turnaround
Equity Partners, L.P.), Bruce Galloway and Gary L. Herman (as Managing Members
of Galloway Capital Management LLC) are deemed to beneficially own an aggregate
of 564,450 shares of Common Stock, representing approximately 6.85% of the
number of shares of Common Stock stated to be on the basis of 8,235,878 shares
of Common Stock reported by the Company to be issued and outstanding as of July
31, 2007 in the Company's latest Quarterly Report on Form 10-Q, as filed with
the Securities and Exchange Commission on August 2, 2008. Strategic Turnaround
Equity Partners, L.P. (Cayman) is deemed to be the direct beneficial owner of
564,450 shares of Common Stock. Galloway Capital Management LLC is deemed to be
the indirect beneficial owner of 700,066 which includes the shares held by STEP
as well as 135,616 shares of common stock held by Finvest Yankee, LP for which
the reporting person has the power to vote and dispose. Bruce Galloway and Gary
L. Herman are deemed to be the indirect beneficial owners of 700,066 shares of
Common Stock. Each of Galloway Capital Management LLC, Bruce Galloway and Gary
L. Herman disclaim beneficial ownership of the shares of Common Stock directly
beneficially owned by Strategic Turnaround Equity Partners, L.P. (Cayman)
(except for (i) the indirect interest of Galloway Capital Management LLC by
virtue of being the general partner of Strategic Turnaround Equity Partners,
L.P. (Cayman), (ii) the indirect interests of Bruce Galloway and Gary L. Herman
by virtue of being members of Galloway Capital Management LLC, and (iii) the
direct interests of Bruce Galloway and Gary L. Herman by virtue of being limited
partners of Strategic Turnaround Equity Partners, L.P. (Cayman). Galloway
Capital Management LLC, Gary L. Herman and Bruce Galloway have shared power to
direct the vote and shared power to direct the disposition of these shares of
Common Stock.
(3) Mr. Galloway owns a total of 180,559 total shares of common stock, 975
shares are held by Mr. Galloway's son for which Mr Galloway has the power to
vote and dispose, 5000 shares are held by Mr. Galloway's daughter for which Mr.
Galloway has the power to vote and dispose, 165,084 shares are held in Mr.
Galloway's Individual Retirement Account, and 14,000 shares are held by
RexonGalloway Capital Growth, LLC for which Mr. Galloway retains investment and
voting discretion.
Mr. Herman beneficially owns 6,000 shares of common stock 6,000 shares are held
by Mr. Herman individually for which Mr. Herman has the power to vote and
dispose
(c)
Other than as set forth in this Schedule 13D, the Reporting Persons and the
executive officers and directors listed in Item 2 have not effected any
transactions in the shares of the Company's equity securities within the past 60
days.
(d)
Not applicable.
(e)
Not applicable.
(4) (1) This includes 135,616 shares of common stock held by Finvest Yankee,
LP for which the reporting person has the power to vote and dispose.
Item 6. Contracts, Arrangements, Understandings or Relationships With the
Issuer.
Except as described herein, there are no contracts, arrangements, understandings
or relationships (legal or otherwise) between the Reporting Persons named in
Item 2 hereof and any person with respect to any securities of the Company,
including but not limited to transfer or voting of any other securities,
finder's fees, joint ventures, loan or option arrangements, puts or calls,
guarantees of profits, divisions of profits or loss, or the giving or
withholding of proxies.
Item 7. Material to be Filed as Exhibits.
Exhibit A. Joint Filing Agreement of the Reporting Persons.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
Strategic Turnaround Equity Partners, L.P. (Cayman)
September 10, 2007, By:/s/ Gary Herman
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Name: Gary Herman
Title: Managing Member of Galloway Capital
Management LLC, the General Partner of Strategic
Turnaround Equity Partners, L.P. (Cayman)
Galloway Capital Management, LLC
September 10, 2007 By:/s/ Bruce Galloway
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Name: Bruce Galloway
Title: Managing Member
September 10, 2007 /s/ Gary L. Herman
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Gary L. Herman
September 10, 2007 /s/ Bruce Galloway
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Bruce Galloway
The original statement shall be signed by each person on whose behalf the
statement is filed or his authorized representative. If the statement is signed
on behalf of a person by his authorized representative (other than an executive
officer or general partner of the filing person), evidence of the
representative's authority to sign on behalf of such person shall be filed with
the statement, provided, however, that a power of attorney for this purpose
which is already on file with the Commission may be incorporated by reference.
The name and any title of each person who signs the statement shall be typed or
printed beneath his signature.
Attention. Intentional misstatements or omissions of fact constitute Federal
criminal violations (See 18 U.S.C. 1001).
EXHIBIT A
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(k)(1) under the Securities Exchange Act of
1934, as amended, each other undersigned parties hereby agree to file jointly
this Schedule 13D (including any amendments thereto) with respect to the Common
Stock National Holdings Corporation. It is understood and agreed that each of
the parties hereto is responsible for the timely filing of this Schedule 13D and
any amendments thereto, and for the completeness and accuracy of information
concerning another party unless such party knows or has reason to believe that
such information is inaccurate.
It is understood and agreed that a copy of this agreement shall be
attached as an exhibit to Schedule 13D, and any amendments thereto, filed on
behalf of the parties hereto.
Dated: September 10, 2007
Strategic Turnaround Equity Partners, L.P. (Cayman)
By:/s/ Gary Herman
---------------
Name: Gary Herman
Title: Managing Member of Galloway Capital
Management, LLC, the General Partner of Strategic
Turnaround Equity Partners, L.P. (Cayman)
Galloway Capital Management, LLC
By:/s/ Bruce Galloway
------------------
Title: Managing Member
/s/ Gary Herman
-----------
Gary L. Herman
/s/ Bruce Galloway
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Bruce Galloway