NEOMEDIA TECHNOLOGIES INC - FORM 8-K - EX-10.1 - EXHIBIT 10.1 - February 8, 2013

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8-K - FORM 8-K - NEOMEDIA TECHNOLOGIES INCv333890_8k.htm
EX-99.1 - EXHIBIT 99.1 - NEOMEDIA TECHNOLOGIES INCv333890_ex99-1.htm

 

DEBENTURE EXTENSION AGREEMENT

 

THIS DEBENTURE EXTENSION AGREEMENT (hereinafter, this “Agreement”) made this 4th day of February, 2013 by and between:

 

YA GLOBAL INVESTMENTS, L.P., f/k/a Cornell Capital Partners, LP (the “Investor”), a Cayman Island exempt limited partnership with offices located at 101 Hudson Street Suite 3700, Jersey City, New Jersey 07302; and

 

NEOMEDIA TECHNOLOGIES, INC. (the “Company”), a Delaware corporation with its principal office located at 100 West Arapahoe Avenue, Suite 9, Boulder, Colorado 80302.

 

Background

 

Reference is made to certain secured convertible debentures issued by the Company to the Investor listed on Schedule “1” attached hereto and incorporated herein by reference (collectively, the “Debentures”).

 

Reference is made to those certain warrant instruments issued by the Company and held by the Investor listed on Schedule “2” attached hereto and incorporated herein by reference (each, a “Warrant Instrument”), each of which allows the holder to purchase such number of shares of common stock of the Company (the “Warrants Shares”) as set forth in such Warrant Instrument at a price per share set forth in such Warrant Instrument (the “Exercise Price”).

 

The Company has requested that the Investor extend the maturity date of each of the Debentures until August 1, 2014, and the Investor has agreed to do so, but only upon the terms and conditions set forth herein.

 

Accordingly, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed by and between the Company and the Investor as follows:

 

Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Debentures.

 

Acknowledgment of Indebtedness

 

1.          The Company hereby acknowledges and agrees that it is liable to the Investor as follows (all amounts in USD):

 

a  Owed under the CCP-1 Debenture as of:  December 31, 2012     
   Principal      2,830,250.00 
   Interest      745,305.14 
   Total      3,575,555.14 

 

 
 

 

b  Owed under the CCP-2 Debenture as of:  December 31, 2012     
    Principal       2,250,000.00 
   Interest      1,416,302.58 
   Total      3,666,302.58 
            
c  Owed under the NEOM-4-1 Debenture as of:  December 31, 2012     
   Principal      5,209,081.00 
   Interest      2,869,498.29 
   Total      8,078,579.29 
            
d  Owed under the NEOM-1-1 Debenture as of:  December 31, 2012     
   Principal      1,305,490.00 
   Interest      1,108,062.67 
   Total      2,413,552.67 
            
e  Owed under the NEOM-2008-1 Debenture as of:  December 31, 2012     
   Principal      390,000.00 
   Interest      267,187.92 
   Total      657,187.92 
            
f  Owed under the NEOM-2008-2 Debenture as of:  December 31, 2012     
   Principal      500,000.00 
   Interest      335,256.94 
   Total      835,256.94 
            
g  Owed under the NEOM-2008-3 Debenture as of:  December 31, 2012     
   Principal      790,000.00 
   Interest      525,426.81 
   Total      1,315,426.81 
            
h  Owed under the NEOM-2008-4 Debenture as of:  December 31, 2012     
   Principal      137,750.00 
   Interest      89,206.52 
   Total      226,956.52 

 

 
 

 

i  Owed under the NEOM-9-1 Debenture as of:  December 31, 2012     
    Principal        2,325,000.00 
   Interest      1,378,088.01 
   Total      3,703,088.01 
            
j  Owed under the NEOM-9-2 Debenture as of:  December 31, 2012     
   Principal      2,325,000.00 
   Interest      1,196,935.96 
   Total      3,521,935.96 
            
k  Owed under the NEOM-9-4 Debenture as of:  December 31, 2012     
   Principal      53,036.80 
   Interest      132,163.61 
   Total      185,200.41 
            
l  Owed under the NEOM-9-5 Debenture as of:  December 31, 2012     
   Principal      715,000.00 
   Interest      338,508.42 
   Total      1,053,508.42 
            
m  Owed under the NEOM-9-6 Debenture as of:  December 31, 2012     
   Principal      241,000.00 
   Interest      130,657.34 
   Total      371,657.34 
            
n  Owed under the NEOM-9-7 Debenture as of:  December 31, 2012     
   Principal      155,000.00 
   Interest      69,671.51 
   Total      224,671.51 
            
o  Owed under the NEOM-10-1 Debenture as of:  December 31, 2012     
   Principal      2,006,137.00 
   Interest      675,848.32 
   Total      2,681,985.32 
            
p  Owed under the NEOM-10-2 Debenture as of:  December 31, 2012     
   Principal      550,000.00 
   Interest      168,834.93 
   Total      718,834.93 

 

 
 

 

q  Owed under the NEOM-10-3 Debenture as of:  December 31, 2012     
     Principal       475,000.00 
   Interest      137,248.97 
   Total      612,248.97 
            
r  Owed under the NEOM-10-4 Debenture as of:  December 31, 2012     
   Principal      400,000.00 
   Interest      111,128.77 
   Total      511,128.77 
            
s  Owed under the NEOM-10-5 Debenture as of:  December 31, 2012     
   Principal      375,000.00 
   Interest      54,590.41 
   Total      429,590.41 
            
t  Owed under the NEOM-11-1 Debenture as of:  December 31, 2012     
   Principal      450,000.00 
   Interest      18,647.26 
   Total      468,647.26 
            
u  Owed under the NEOM-11-2 Debenture as of:  December 31, 2012     
   Principal      160,000.00 
   Interest      23,487.26 
   Total      183,487.26 
            
v  Owed under the NEOM-11-3 Debenture as of:  December 31, 2012     
   Principal      117,500.00 
   Interest      4,006.64 
   Total      121,506.64 
            
w  Owed under the NEOM-11-4 Debenture as of:  December 31, 2012     
   Principal      23,016.00 
   Interest      859.77 
   Total      23,875.77 
            
x  Owed under the NEOM-11-5 Debenture as of:  December 31, 2012     
   Principal      37,577.00 
   Interest      18,551.98 
   Total      56,128.98 

 

 
 

 

y  Owed under the NEOM-11-6 Debenture as of:  December 31, 2012     
   Principal       25,000.00 
   Interest      851.91 
   Total      25,851.91 
            
z  Owed under the NEOM-11-10 Debenture as of:  December 31, 2012     
   Principal      358,650.00 
   Interest      12,228.53 
   Total      370,878.53 
            
aa  Owed under the NEOM-11-11 Debenture as of:  December 31, 2012     
   Principal      150,000.00 
   Interest      8,896.58 
   Total      158,896.58 
            
bb  Owed under the NEOM-12-01 Debenture as of:  December 31, 2012     
   Principal      179,300.00 
   Interest      6,854.40 
   Total      186,154.40 
            
cc  Owed under the NEOM-12-02 Debenture as of:  December 31, 2012     
   Principal      450,000.00 
   Interest      44,586.99 
   Total      494,586.99 
            
dd  Owed under the NEOM-12-03 Debenture as of:  December 31, 2012     
   Principal      370,546.00 
   Interest      35,708.90 
   Total      406,254.90 
            
ee  Owed under the NEOM-12-04 Debenture as of:  December 31, 2012     
   Principal      362,392.78 
   Interest      11,913.68 
   Total      374,306.46 
            
   Total      37,653,243.60 

 

 
 

 

ii.For all interest accruing from and after January 1, 2013 due under the Debentures, and for all fees, late charges, redemption premiums, liquidated damages, costs, expenses, and costs of collection (including attorneys’ fees and expenses) and other amounts, heretofore or hereafter accrued or coming due or incurred by the Investor in connection with the protection, preservation, or enforcement of its rights and remedies under the Debentures and all documents, instruments, and agreements executed in connection therewith or related thereto (collectively, the “Financing Documents”) (including, without limitation, the preparation and negotiation of this Agreement).

 

Hereinafter, all amounts due as set forth in this Paragraph 1, and all amounts hereafter owed or due under the Financing Documents shall be referred to collectively as the “Obligations.”

 

Waiver of Claims

 

2.The Company, for itself and on behalf its former and/or current subsidiaries that are party to any of the Financing Documents (collectively along with the Company, the “Obligors”) hereby acknowledges and agrees that none of the Obligors have any offsets, defenses, claims, or counterclaims against the Investor, its general partner, and its investment manager, and each of their respective agents, servants, attorneys, advisors, officers, directors, employees, affiliates, partners, members, managers, predecessors, successors, and assigns (singly and collectively, as the “Released Parties”), with respect to the Obligations, the Financing Documents, the transactions set forth or otherwise contemplated in this Agreement, or otherwise, and that if the Obligors now have, or ever did have, any offsets, defenses, claims, or counterclaims against any of the Released Parties, whether known or unknown, at law or in equity, from the beginning of the world through this date and through the time of execution of this Agreement, all of them are hereby expressly WAIVED, and the Obligors each hereby RELEASE each of the Released Parties from any and all liability therefor.

 

Extension of Maturity Date

 

3.The “Maturity Date” of each of the Debentures is hereby extended to August 1, 2014. The Company acknowledges and agrees that this extension (a) is a one-time extension for the specific period indicated, and (b) shall not be deemed to constitute (i) an agreement to provide any further extension of the Maturity Dates of the Debentures, or (ii) a waiver of any existing Events of Default, whether known or unknown, or of any the provisions of the Debentures or of the other Financing Documents.

 

 
 

 

Warrants

 

4.Warrants. Schedule “3” attached hereto sets forth a complete list of each Warrant Instrument issued to the Investor and remaining outstanding, and the material terms of each such Warrant Instrument. The parties acknowledge and agree that as of January 31, 2013 the Investor is the holder of each of the Warrant Instruments listed on Schedule 3 and that the amounts listed under the headings “Exercise Price As of 1/31/13” and “Number of Warrant Shares As of 1/31/13” are true and correct. Effective as of February 1, 2013, each Warrant Instrument shall be adjusted (the “Adjustment”) such that (i) the Exercise Price of each Warrant Instrument shall be reduced to $0.0001 per share, and (ii) the number of Warrant Shares with respect to each Warrant Instrument shall be reduced by multiplying the number of Warrant Shares as of January 31, 2013 by the fraction 0.2656 and rounding the result to the nearest whole share. As a result of the Adjustment, the Exercise Price of each Warrant Instrument shall be $0.0001, the total number of Warrant Shares for all the Warrant Instruments shall be 499,990,063, and each individual Warrant Instrument shall be exercisable for such number of Warrant Shares as set forth under the column “Number of Warrant Shares After Adjustment” on Schedule 3.

 

5.Ratification. The Company hereby acknowledges, confirms, and agrees that, (a) except as specifically modified herein, the Debentures and all other Financing Documents remain in full force and effect, and confirm and ratify each of the terms thereof and (b) all amounts outstanding under the Debentures are unconditionally owing by the Company to the Investor, without offset, defense or counterclaim of any kind, nature or description whatsoever.

 

[Remainder of Page Intentionally Left Blank]

 

 
 

 

IN WITNESS WHEREOF, this Debenture Extension Agreement has been executed as of the date first set forth above.

 

YA GLOBAL INVESTMENTS, L.P.,   NEOMEDIA TECHNOLOGIES, INC.
By:   Yorkville Advisors, LLC,    
its Investment Manager    
     
By: /s/   By: /s/
Name: Gerald Eicke   Name: Laura Marriott
Title: Managing Member   Title: CEO

 

 

 

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