Document:

Exhibit 10.7

 

IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

March 11, 2011

WorldWide Stock Transfer , LLC

433 Hackensack Avenue, Level L

Hackensack, New Jersey 07601

	
  

	
RE:

	
NEOMEDIA TECHNOLOGIES, INC.

Ladies and Gentlemen:

Reference is made to that certain Agreement (the “Agreement”) of even date herewith by and between Neomedia Technologies, Inc, a Delaware corporation (the “Company”), and YA Global Investments, L.P. (the “Buyer”).  Pursuant to the Agreement, the Company shall sell to the Buyer, and the Buyer shall purchase from the Company, convertible debentures (the “Debenture”) in the aggregate principal amount of $450,000.00, plus accrued interest, which are convertible into shares of the Company’s common stock, par value $.001 per share (the “Common Stock”), at the Buyer’s discretion.  The Company has also issued to the Buyer warrants to purchase up to 1,000,000 shares of Common Stock, at the Buyer’s discretion (the “Warrant”).  These instructions relate to the following stock or proposed stock issuances or transfers:

 

	
  

	
1.

	
Shares of Common Stock to be issued to the Buyer upon conversion of the Debenture (“Conversion Shares”) plus the shares of Common Stock to be issued to the Buyer upon conversion of accrued interest into Common Stock (the “Interest Shares”).

 

	
  

	
2.

	
Up to 1,000,000 shares of Common Stock to be issued to the Buyer upon exercise of the Warrant (the “Warrant Shares”).

 

This letter shall serve as our irrevocable authorization and direction to WorldWide Stock Transfer, LLC (the “Transfer Agent”) to do the following:

 

	
  

	
1.

	
Conversion Shares, Warrant Shares and Interest Shares.

 

	
  

	
a.

	
Instructions Applicable to Transfer Agent.  With respect to the Conversion Shares, Warrant Shares and the Interest Shares, the Transfer Agent shall issue the Conversion Shares, Warrant Shares and the Interest Shares to the Buyer from time to time upon delivery to the Transfer Agent of a properly completed and duly executed Conversion Notice (the “Conversion Notice”) in the form attached hereto as Exhibit A to the Debenture, or a properly completed and duly executed Exercise Notice  (the “Exercise Notice”) in the form attached as Exhibit A to the Warrant, delivered to the Transfer Agent by the Company or on behalf of the Company by David Gonzalez, Esq. as escrow agent (the “Escrow Agent”).  Upon receipt of a Conversion Notice or an Exercise Notice, the Transfer Agent shall, as soon as reasonably practical thereafter, (i) issue and surrender to a common carrier for overnight delivery to the address as specified in the Conversion Notice or the Exercise Notice, a certificate, registered in the name of the Buyer or its designees, for the number of shares of Common Stock to which the Buyer shall be entitled as set forth in the Conversion Notice or Exercise Notice, or (ii) provided the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the Buyer, credit such aggregate number of shares of Common Stock to which the Buyer shall be entitled to the Buyer’s or its designees’ balance account with DTC through its Deposit Withdrawal At Custodian (“DWAC”) system, provided that the Buyer causes its bank or broker to initiate the DWAC transaction, and further provided that a certificate representing such shares of Common Stock would not be required to bear a legend restricting transfer.

 

  

  

  

 

	
  

	
b.

	
The Company hereby confirms to the Transfer Agent and the Buyer that certificates representing the Conversion Shares, Warrant Shares and Interest Shares shall not bear any legend restricting transfer and should not be subject to any stop-transfer restrictions and shall otherwise be freely transferable on the books and records of the Company; provided that Buyer confirm to the Transfer Agent and the Company that the Conversion Shares, Warrant Shares and Interest Shares have been or will be sold only pursuant to an effective registration statement for such securities under the Securities Act of 1933, as amended (the “Act”), and that the Buyer has complied, or will comply, with all applicable prospectus delivery requirements; and further provided that counsel to the Company delivers (i) the Notice of Effectiveness set forth in Exhibit I attached hereto and (ii) an opinion of counsel in the form set forth in Exhibit II attached hereto, and that if the Conversion Shares, Warrant Shares and the Interest Shares are not registered for sale under the Act, then the certificates for the Conversion Shares, Warrant Shares and Interest Shares shall bear the following legend:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.”

 

	
  

	
c.

	
In the event that counsel to the Company fails or refuses to render an opinion as required to issue the Conversion Shares, the Warrant Shares or the Interest Shares in accordance with the preceding paragraph (either with or without restrictive legends, as applicable), then the Company irrevocably and expressly authorizes counsel to the Buyer to render such opinion.  The Transfer Agent shall accept and be entitled to rely on such opinion for the purposes of issuing the Conversion Shares, the Warrant Shares or the Interest Shares.

 

	
  

	
d.

	
Upon the Company’s or the Escrow Agent’s receipt of a properly completed Conversion Notice or Exercise Notice (along with evidence that the Aggregate Exercise Price (as defined in the Warrant) has been delivered to the Company), the Company or the Escrow Agent, as the case may be, shall, within one Trading Day thereafter, send to the Transfer Agent the Conversion Notice or Exercise Notice, as the case may be, which shall constitute an irrevocable instruction to the Transfer Agent to process such Conversion Notice or Exercise Notice in accordance with the terms of these instructions.  For purposes hereof “Trading Day” shall mean any day on which the Nasdaq Market is open for customary trading.

 

  

  

  

 

	
  

	
2.

	
All Shares.

 

	
  

	
a.

	
The Company hereby irrevocably appoints the Escrow Agent as a duly authorized agent of the Company for the purposes of authorizing the Transfer Agent to process issuances and transfers specifically contemplated herein.

 

	
  

	
b.

	
The Transfer Agent shall rely exclusively on the Conversion Notice or the Exercise Notice, and shall have no liability for relying on such instructions.  Any Conversion Notice or Exercise Notice delivered hereunder shall constitute an irrevocable instruction to the Transfer Agent to process such notice or notices in accordance with the terms thereof.  Such notice or notices may be transmitted to the Transfer Agent by facsimile or any commercially reasonable method.

 

	
  

	
c.

	
The Company hereby confirms to the Transfer Agent and the Buyer that no instructions other than as contemplated herein will be given to Transfer Agent by the Company with respect to the matters referenced herein.  The Company hereby authorizes the Transfer Agent, and the Transfer Agent shall be obligated, to disregard any contrary instructions received by or on behalf of the Company.

 

	
  

	
3.

	
Certain Notice Regarding the Escrow Agent. The Company and the Transfer Agent hereby acknowledge that the Escrow Agent is general counsel to the Buyer, a partner of the general partner of the Buyer and counsel to the Buyer in connection with the transactions contemplated and referred herein.  The Company and the Transfer Agent agree that in the event of any dispute arising in connection with this Agreement or otherwise in connection with any transaction or agreement contemplated and referred herein, the Escrow Agent shall be permitted to continue to represent the Buyer and neither the Company nor the Transfer Agent will seek to disqualify such counsel.

 

	
  

	
4.

	
Company Acknowledgments.

 

	
  

	
a.

	
The Company hereby agrees that it shall not replace the Transfer Agent as the Company’s transfer agent without the prior written consent of the Buyer.

 

	
  

	
b.

	
The Company agrees that in the event that the Transfer Agent resigns as the Company’s transfer agent the Company shall engage a suitable replacement transfer agent that will agree to serve as transfer agent and to be bound by the terms and conditions of these Irrevocable Transfer Agent Instructions within 5 business days from the effectiveness of such resignation.

 

	
  

	
c.

	
The Company acknowledges that the Buyer is relying on the representations and covenants made by the Company hereunder and are a material inducement to the Buyer purchasing the Debenture pursuant to the Agreement.  The Company further acknowledges that without such representations and covenants of the Company made hereunder, the Buyer would not purchase the Debenture.

 

	
  

	
d.

	
The Company specifically acknowledges and agrees that in the event of a breach or threatened breach by a party hereto of any provision hereof, the Buyer will be irreparably damaged and that damages at law would be an inadequate remedy if these Irrevocable Transfer Agent Instructions were not specifically enforced.  Therefore, in the event of a breach or threatened breach by the Company, including, without limitation, the attempted termination of the agency relationship created by this instrument, the Buyer shall be entitled, in addition to all other rights or remedies, to an injunction restraining such breach, without being required to show any actual damage or to post any bond or other security, and/or to a decree for specific performance of the provisions of these Irrevocable Transfer Agent Instructions.

 

  

  

  

 

	
  

	
5.

	
Transfer Agent Binding Disclaimer:  In consideration for the Transfer Agent agreeing and attesting to all terms in the above referenced Irrevocable Transfer Agent Instructions, in particular any kind of lawsuit and or action that may arise from the Buyer’s instructing the Transfer Agent to issue shares based on the legality of the Agreement whereas the Company is denying the request in full or partially for whatever reason, the Company, Buyer and any other Fourth party involved agree for ourselves, our successors, legal representatives and assigns, at all times to defend, indemnify and save the Transfer Agent, their successors and assigns, free and harmless from and against any and all claims, from actions, suits, whether groundless or otherwise, and from and against any and all liabilities, taxes, losses, damages, costs, charges, counsel fees, and other expenses of every nature and character that arises from this action.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

  

  

  

 

IN WITNESS WHEREOF, the parties have caused this letter agreement regarding Irrevocable Transfer Agent Instructions to be duly executed and delivered as of the date first written above.

 

	  	
COMPANY:

	  	  
	  	
Neomedia Technologies, Inc.

	  	  
	  	
By:

	
/s/ Michael W. Zima

	  	
Name:

	
Michael W. Zima

	  	
Title:

	
CFO

	  	  
	  	
BUYER:

	 	 
	  	
YA Global Investments, L.P.

	  	  
	  	
By:

	
Yorkville Advisors, LLC

	  	
Its:

	
Investment Manager

	  	  
	  	
By:

	
/s/ Gerald Eicke

	  	
Name:

	
Gerald Eicke

	  	
Title:

	
Managing Member

	  	  
	  	
ESCROW AGENT

	  	  
	  	
By:

	  
	  	
David Gonzalez, Esq.

	
WorldWide Stock Transfer, LLC

	  
	  	  	  
	
By:

	
/s/ Yonah J. Kopstick

	  
	
Name

	
Yonah  Kopstick

	  
	
Title:

	
SVPUnassociated Document

Landmark Bancorp, Inc.

2001 Stock Incentive Plan

 

Restricted Stock Award

 

The Participant specified below has been granted this Restricted Stock Award (the “Award”) by Landmark Bancorp, Inc., a Delaware corporation (the “Company”), under the terms of the Landmark Bancorp, Inc. 2001 Stock Incentive Plan (the “Plan”).  The Award is subject to the Plan and the following terms and conditions (the “Award Terms”):

 

Section 1.                      Award.  In accordance with the Plan, the Company hereby grants to the Participant the Award, which represents the right to receive Shares (the “Covered Shares”) as set forth in Section 2 below.  The Award is in all respects limited and conditioned by the Plan and as provided herein.

 

Section 2.                      Terms of Restricted Stock Award.  The following words and phrases relating to the Award shall have the following meanings:

 

(a)           The “Participant” is [                                         ].

 

(b)           The “Grant Date” is [                                                ].

 

(c)           The number of “Covered Shares” is [                                                      ].

 

Except for terms defined herein, any capitalized term in the Award Terms has the meaning ascribed to that term under the Plan.

 

Section 3.                      Restricted Period.  The Award Terms evidence the Company’s grant to the Participant as of the Grant Date, on the terms and conditions described in the Award Terms and in the Plan, the right of the Participant to receive stock free of restrictions once the Restricted Period ends.

 

(a)           Subject to the terms and conditions of the Award Terms, the “Restricted Period” for each installment of Covered Shares (“Installment”) shall begin on the Grant Date and end as described in the following schedule (but only if the Participant has not had a Termination of Service before the end of the Restricted Period):

 

	
Installment

	
Restricted Period will end on:

	
[                   ] Covered Shares

	
[____] anniversary of the Grant Date

	
[                   ] Covered Shares

	
[____] anniversary of the Grant Date

	
[                   ] Covered Shares

	
[____] anniversary of the Grant Date

(b)           Notwithstanding the foregoing provisions of this Section 3, the Restricted Period for the Covered Shares shall cease immediately, and the Covered Shares shall become immediately and fully vested, upon (i) a Change of Control that occurs on or before the Participant’s Termination of Service if the Plan and the Award are not fully assumed in such Change of Control, or [(ii) the Participant’s Termination of Service due to the Participant’s Disability or death] [or; (iii) with respect to a director, the Participant’s Termination of Service on the last day of the term during which the Participant reaches the Board’s mandatory retirement age.]

 

 

 

 

 

(c)           In the event the Participant’s Termination of Service, other than as provided in Section 3(b) above, occurs prior to the expiration of one or more Restricted Periods, the Participant shall forfeit all rights, title and interest in and to any Installment(s) of Covered Shares still subject to a Restricted Period as of the Participant’s Termination of Service.

 

For purposes of the Award Terms, “Termination of Service” means the termination of a person’s status as a director and employee of the Company and each Related Corporation.

 

Section 4.            Delivery of Shares.  Delivery of Shares or other amounts under the Award Terms and the Plan shall be subject to the following:

 

(a)           Compliance with Applicable Laws.  Notwithstanding any other provision of the Award Terms or the Plan, the Company shall have no obligation to deliver any Shares or make any other distribution of benefits under the Award Terms or the Plan unless such delivery or distribution complies with all applicable laws (including, the requirements of the Securities Act), and the applicable requirements of any securities exchange or similar entity.

 

(b)           Certificates.  To the extent the Award Terms and the Plan provide for the issuance of Shares, the issuance may be effected on a non-certificated basis, to the extent not prohibited by applicable law or the applicable requirements of any securities exchange or similar entity.

 

Section 5.            Withholding.  All deliveries of Covered Shares shall be subject to withholding of all applicable taxes.  The Company shall have the right to require the Participant (or if applicable, permitted assigns, heirs or Designated Beneficiaries) to remit to the Company an amount sufficient to satisfy any tax requirements prior to the delivery date of any certificate or certificates for Shares under the Award Terms.  At the election of the Participant, subject to the rules and limitations as may be established by the Committee, such withholding obligations may be satisfied through the surrender of Shares that the Participant already owns, or to which the Participant is otherwise entitled under the Plan.

 

Section 6.            Non-Transferability of Award.  During the Restricted Period applicable to any Installment of Covered Shares, the Participant shall not sell, assign, transfer, pledge, hypothecate, mortgage, encumber or otherwise dispose of any Covered Shares in such Installment.

 

Section 7.            Dividends.  The Participant shall be entitled to receive dividends and distributions paid on any Installment of Covered Shares during the Restricted Period applicable to such Installment; provided, however, that no dividends or distributions shall be payable to or for the benefit of the Participant with respect to record dates for such dividends or distributions occurring before or prior to the Grant Date, or with respect to record dates for such dividends or distributions occurring on or after the date, if any, on which the Participant has forfeited those Covered Shares.

 

 

2

 

 

Section 8.            Voting Rights.  The Participant shall be entitled to vote the Covered Shares during the Restricted Period applicable to such Installment; provided, however, that the Participant shall not be entitled to vote Covered Shares with respect to record dates for any Covered Shares occurring on or after the date, if any, on which the Participant has forfeited those Covered Shares.

 

Section 9.            Right of First Refusal.  Any Shares issued under the Award shall at all times be subject to the Company’s right of first refusal as set forth in Section 8 of the Plan.

 

Section 10.         Deposit of Restricted Stock Award.  Each certificate issued with respect to Covered Shares shall be registered in the name of the Participant and shall be retained by the Company, or an agent of the Company, until the end of the Restricted Period applicable to such Covered Shares.

 

Section 11.         Heirs and Successors.  The Award Terms shall be binding upon, and inure to the benefit of, the Company and its successors and assigns, and upon any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of the Company’s assets and business.  If any rights of the Participant or benefits distributable to the Participant under the Award Terms have not been settled or distributed, respectively, at the time of the Participant’s death, such rights shall be settled and payable to the Designated Beneficiary, and such benefits shall be distributed to the Designated Beneficiary, in accordance with the provisions of the Award Terms and the Plan.  The “Designated Beneficiary” shall be the beneficiary or beneficiaries designated by the Participant in a writing filed with the Committee in such form as the Committee may require.  The designation of beneficiary form may be amended or revoked from time to time by the Participant.  If a deceased Participant fails to designate a beneficiary, or if the Designated Beneficiary does not survive the Participant, any rights that would have been payable to the Participant shall be payable to the legal representative of the estate of the Participant.  If a deceased Participant designates a beneficiary and the Designated Beneficiary survives the Participant but dies before the settlement of Designated Beneficiary’s rights under the Award Terms, then any rights that would have been payable to the Designated Beneficiary shall be payable to the legal representative of the estate of the Designated Beneficiary.

 

Section 12.         Administration.  The authority to manage and control the operation and administration of the Award Terms and the Plan is vested in the Committee, and the Committee has all powers with respect to the Award Terms as it has with respect to the Plan. Any interpretation of the Award Terms or the Plan by the Committee and any decision made by it with respect to the Award Terms or the Plan shall be final and binding on all persons.

 

Section 13.         Plan Governs.  Notwithstanding anything in the Award Terms to the contrary, the Award Terms are subject to the terms of the Plan, a copy of which may be obtained by the Participant from the Corporate Secretary of the Company.  The Award Terms are subject to all interpretations, amendments, rules and regulations promulgated by the Committee from time to time pursuant to the Plan.  Notwithstanding anything in the Award Terms to the contrary, in the event of any discrepancies between the corporate records of the Company and the Award Terms, the corporate records of the Company shall control.

 

 

3

 

 

Section 14.         Not an Employment Contract.  The Award shall not confer on the Participant any right with respect to continuance of employment or other service with the Company or any Related Corporation, nor shall it interfere in any way with any right the Company or any Related Corporation may otherwise have to terminate or modify the terms of such Participant’s employment or other service at any time.

 

Section 15.          Amendment.  The Award Terms may be amended in accordance with the provisions of the Plan, and may otherwise be amended in writing by the Participant and the Company without the consent of any other person.

 

Section 16.          Governing Law.  The Award Terms, the Plan, and all actions taken in connection herewith and therewith shall be governed by and construed in accordance with the laws of the State of Kansas, without reference to principles of conflict of laws, except as superseded by applicable federal law.

 

Section 17.          Clawback.  The Award and any amount or benefit received hereunder shall be subject to potential cancellation, recoupment, rescission, payback or other action in accordance with the terms of any applicable Company clawback policy (the “Policy”) or any applicable law, as may be in effect from time to time.  The Participant’s receipt of the Award constitutes the Participant’s acknowledgment of and consent to the Company’s application, implementation and enforcement of (i) the Policy or any similar policy established by the Company that may apply to the Participant and (ii) any provision of applicable law relating to cancellation, rescission, payback or recoupment of compensation, as well as the Participant’s express agreement that the Company may take such actions as necessary to effectuate the Policy, any similar policy (as applicable to the Participant) or applicable law without further consideration or action.

 

(signature page to follow)

 

 

4

 

 

IN WITNESS WHEREOF, the Company has caused the Award Terms to be executed in its name and on its behalf, all as of the Grant Date and the Participant acknowledges acceptance of, and agrees to, the Award Terms.

 

	 	Landmark Bancorp, Inc.	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	 	 
	 	Its:  	 	 
	 	 	 	 
	 	
Participant

	 
	 	 	 	 
	 	 	 
	 	[                         ]                                               Date	 

 

 

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