Document:

February 10, 2012

 

Mr. Jeffrey Aaronson

8434 Tevere Valley Street

Las Vegas, NV 89131

 

 

Dear Jeff:

 

On behalf of Webxu,
Inc. (the “Company”), this letter agreement (the “Agreement”) sets forth the
new terms and conditions of your employment with the Company and modifies the terms of the Employment Agreement entered into as
of November 15, 2010 between you and the Company (“Employment Agreement”).

 

1.Position.
In addition to the duties set forth in your Employment Agreement, you may also be asked to serve as a member of the Board of Directors
of the Company, subject to election by the shareholders of the Company.

 

2.Compensation
and Benefits. Commencing January 1, 2012, your compensation will be adjusted as follows: your annual base salary will be
Two Hundred Thousand Dollars ($200,000.00), payable in accordance with the Company’s normal payroll practices, less any payroll
deductions and withholdings as are required by law. You will be eligible in 2012 for an annual bonus of fifty percent (50%) of
your base salary, provided that the Company on a consolidated basis achieves a positive EBITDA (excluding any non-cash stock compensation
as an expense) after inclusion of your projected bonus. Thereafter, the CEO shall be entitled to adjust the financial targets for
any future bonuses. Annual adjustments in your compensation will also be in the discretion of the CEO. You will be eligible for
three weeks vacation/paid time off, as well as (to the extent offered by the Company) health insurance, and other benefits on terms
no less favorable than those offered to other senior executives of the Company.

 

3.Stock Option.
Your current stock option agreements will continue in place.

 

4.Termination
and Employment. Your employment by the Company will commence on the Employment Date and is expected to continue for a term
of at least three years but is “at will” and may be terminated by the Company or by you at any time, for any reason
or for no reason. Upon termination of your employment with the Company for any reason, you will receive payment for all unpaid
salary and vacation accrued as of the date of your termination of employment, and your benefits will be continued under the Company’s
then existing benefit plans and policies for so long as provided under the terms of such plans and policies and as required by
applicable law.

 

(a)Additionally,
in the event your employment is terminated either by the Company for any reason other than “Cause” (as defined below)
or by you within fifteen (15) days of an event constituting “Good Reason” (as defined below), and you sign a waiver
and release of claims against the Company substantially in the form attached hereto as Exhibit B and related entities and
individuals in a form to be provided by the Company and return any Company property you then hold, you will receive (less any withholdings
or deductions required by law and following the expiration of any applicable revocation periods) continued payment of your base
salary pursuant to the Company’s regular payroll practices for twelve (12) months following the termination of your employment.

 

    	 

    	 

    

 

(b)For purposes of
this Agreement, “Cause” means your (i) failure to substantially perform, or negligence in the performance
of, your duties after the CEO has provided you written notice of and sixty (60) days to cure such failure; (ii) commission of any
act of fraud, gross misconduct or dishonesty which has an adverse impact on the Company; (iii) conviction of, or plea of guilty
or “no contest” to, a felony or a crime involving moral turpitude; provided, however, that upon your indictment for
a felony, regardless of when such indictment or felony occurs, the Company in its sole discretion may place you on a paid leave
of absence during which you will not vest in any stock options, including the Option, or other Company equity awards; or (iv) material
breach of any proprietary information and inventions agreement with the Company, including the Proprietary Material Agreement.

 

(c)For purposes of
this Agreement, “Change in Control” means either of the following transactions to which the Company is
a party: (a) the sale, lease, conveyance or other disposition of all or substantially all of the Company's
assets to any person, entity or group of persons acting in concert other than in the ordinary course of business; or (b) any
transaction or series of related transactions (as a result of a tender offer, merger, consolidation or otherwise) that results
in any Person (as defined in Section 13(h)(8)(E) under the Securities Exchange Act of 1934) becoming the beneficial owner (as defined
in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of 50% or more of the aggregate voting power
of all classes of equity of the Company. 

 

(d)For purposes of
this Agreement, “Good Reason” means any of the following events, taken following your provision of notice
to the CEO that you intend to terminate your employment based on such event and the CEO’s failure to cure such event within
thirty (30) days of receipt of such notice: (i) a change in your title of Chief Financial Officer of the Company or a material
reduction in your duties or responsibilities that is inconsistent with your position; or (ii) a material reduction in your annual
base salary (other than in connection with a general decrease in the salary of all similarly situated employees of the Company).

 

5.Intentionally
Blank.

 

6.Employee
Invention Assignment and Confidentiality Agreement. You have signed the Company’s standard form of proprietary material
and confidentiality agreement, a copy of which is attached to this letter as Exhibit A. Nothing in this Agreement alters
the terms and conditions of that proprietary material and confidentiality agreement. This letter shall be governed by the confidentiality
agreement.

 

7.Arbitration.

 

(a)Any claim, dispute
or controversy arising out of this Agreement, the interpretation, validity or enforceability of this Agreement or the alleged breach
thereof shall be submitted by the parties to binding arbitration by a sole arbitrator under the rules of the American Arbitration
Association; provided, however, that (i) the arbitrator shall have no authority to make any ruling or judgment that would confer
any rights with respect to the trade secrets, confidential and proprietary information or other intellectual property of the Company
upon the Executive or any third party; and (ii) this arbitration provision shall not preclude the Company from seeking legal and
equitable relief from any court having jurisdiction with respect to any disputes or claims relating to or arising out of the misuse
or misappropriation of the Company’s intellectual property. Judgment may be entered on the award of the arbitrator in any
court having jurisdiction.

 

    	2

    	 

    

 

(b)The site of
the arbitration proceeding shall be in Los Angeles County, California.

 

8.Miscellaneous.

 

(a)Intentionally
Blank.

 

(b)Absence of
Conflicts. You represent that your performance of your duties under this Agreement will not breach any other agreement as to
which you are a party.

 

(c)Successors.
This Agreement is binding on and may be enforced by the Company and its successors and assigns and is binding on and may be enforced
by you and your heirs and legal representatives. Any successor to the Company or substantially all of its business (whether by
purchase, merger, consolidation or otherwise) will in advance assume in writing and be bound by all of the Company's obligations
under this Agreement.

 

(d)Notices.
Notices under this agreement must be in writing and will be deemed to have been given when personally delivered or two days after
mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. Mailed notices to you will be addressed
to you at the home address which you have most recently communicated to the Company in writing. Notices to the Company will be
addressed to the Chairman of the Board at the Company's corporate headquarters.

 

(e)Waiver.
No provision of this Agreement will be modified or waived except in writing signed by you and an officer of the Company duly authorized
by its Board. No waiver by either party of any breach of this Agreement by the other party will be considered a waiver of any other
breach of this Agreement.

 

(f)Severability.
In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, this Agreement shall continue in full force and effect without said provision.

 

(g)Entire Agreement.
This Agreement, including the Proprietary Material Agreement and attached exhibits, if any, represents the entire agreement
between the parties concerning the subject matter of your employment by the Company.

 

(h)Governing
Law. This Agreement will be governed by the laws of the State of California without reference to conflict of laws provisions.

 

    	3

    	 

    

 

 

Except as expressly
amended, supplemented or modified herein, the terms and conditions of your Employment Agreement are hereby ratified and confirmed.

 

Please sign and date
this Agreement, and return it to me by February 13, 2012, if you wish to accept employment at the Company under the terms described
above. If you accept our offer, this agreement will commence as of January 1, 2012, with this date being referred to herein as
the “Employment Date.”

 

	 	Best regards,
	 	 
	 	/s/ Matt Hill
	 	Matt Hill, Chief Executive Officer

 

 

Accepted:

 

February __, 2012

 

	/s/ Jeffrey Aaronson	 
	Jeffrey Aaronson	 

 

 

    	4

    	 

    

 

Exhibit A

 

Employee Invention
Assignment and Confidentiality Agreement

 

    	5

    	 

    

Exhibit B

 

Waiver and Release of Claims

 

You hereby release
and waive any other claims you may have against Company and its owners, agents, officers, shareholders, employees, directors, attorneys,
subscribers, subsidiaries, affiliates, successors and assigns (collectively "Releases"), whether known
or not known, including, without limitation, claims under any employment laws, including, but not limited to, claims of unlawful
discharge, breach of contract, breach of the covenant of good faith and fair dealing, fraud, violation of public policy, defamation,
physical injury, emotional distress, claims for additional compensation or benefits arising out of your employment or your separation
of employment, claims under Title VII of the 1964 Civil Rights Act, as amended, the California Fair Employment and Housing Act
and any other laws and/or regulations relating to employment or employment discrimination, including, without limitation, claims
based on age or under the Age Discrimination in Employment Act or Older Workers Benefit Protection Act. By signing below, you expressly
waive any benefits of Section 1542 of the Civil Code of the State of California, which provides as follows:

 

"A GENERAL RELEASE DOES NOT
EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH
IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR."

 

    	6THIS AGREEMENT
(this “Agreement”), dated March 26, 2012 is entered into by and between NEOMEDIA TECHNOLOGIES, INC.,
a Delaware corporation (the “Company”), and YA GLOBAL INVESTMENTS, L.P. (the “Investor”).

 

WHEREAS:

 

		A.	Reference is made to certain financing arrangements entered into by
and between the Company and certain of its former and/or current subsidiaries (collectively, the “Obligors”)
and the Investor, evidenced by, among other things, the documents, instruments, and agreements
listed on Exhibit X attached hereto and incorporated herein by reference (collectively, together with all other documents,
instruments, and agreements executed in connection therewith or related thereto, the “Existing Financing Documents”).

 

		B.	Reference is also made to the Securities Purchase Agreement (the “Securities Purchase
Agreement”) dated as of May 27, 2010, between the Company and the Investor pursuant to which the Company has issued and
the Investor has purchased the Convertible Debentures and Warrants. All capitalized terms used but not defined herein shall have
the meaning ascribed thereto in the Securities Purchase Agreement.

 

		C.	The parties desire that, upon the terms and subject to the conditions contained herein, the Company
shall issue and sell to the Investor, as provided herein, and the Investor shall purchase (i) a $450,000 secured convertible debenture
in the form attached hereto as “Exhibit A” (the “Third 2012 Convertible Debenture”, which
shall be deemed to be included in the term Convertible Debentures), which shall be convertible into Common Stock (as converted
such shares of Common Stock, shall be Conversion Shares), and (ii) warrants substantially in the form attached hereto as “Exhibit
B” (the “Third 2012 Warrants”, which shall be deemed to be included in the term Warrants and together
with this Agreement, the Third 2012 Convertible Debenture, the Existing Financing Documents and all other documents, instruments
and agreements executed in connection therewith or related thereto, the “Financing Documents”), to acquire up
to 1,000,000 additional shares of Common Stock (as exercised, such shares of Common Stock shall be Warrant Shares) which shall
be funded on the date hereof (the “Third 2012 Closing”) for a total purchase price of $450,000, (the “Third
2012 Purchase Price”).

 

		D.	In order to induce the Company to issue and the Investor to purchase the Third 2012 Convertible
Debenture and the Third 2012 Warrants, the parties desire to enter into this Agreement.

 

NOW, THEREFORE,
in consideration of the mutual covenants and other agreements contained in this Agreement the Company and the Investor hereby agree
as follows:

    	 

    	 

    

 

1.Purchase
and Sale of Third 2012 Convertible Debenture and Third 2012 Warrants.

 

(a)Subject
to the satisfaction (or waiver) of the terms and conditions of this Agreement, the Investor agrees to purchase at the Third 2012
Closing and the Company agrees to sell and issue to the Investor at the Third 2012 Closing, the Third 2012 Convertible Debenture
and Third 2012 Warrants.

 

(b)The Third
2012 Closing shall take place at 10:00 a.m. Eastern Standard Time on the same business day as the date hereof, subject to notification
of satisfaction of the conditions to the Third 2012 Closing set forth in this Agreement (or such other date as is mutually agreed
to by the Company and the Investor). The Third 2012 Closing shall occur at the offices of Yorkville Advisors, LLC, 101 Hudson Street,
Suite 3700, Jersey City, New Jersey 07302 (or such other place as is mutually agreed to by the Company and the Investor).

 

(c)Subject
to the satisfaction (or waiver) of the terms and conditions of this Agreement, on the day of the Third 2012 Closing, (i) the Investor
shall deliver to the Company such aggregate proceeds for the Third 2012 Convertible Debenture and Third 2012 Warrants to be issued
and sold to such Investor at the Third 2012 Closing, minus the fees to be paid directly from the proceeds thereof as set forth
herein, and (ii) the Company shall deliver to the Investor the Third 2012 Convertible Debenture and Third 2012 Warrants duly
executed on behalf of the Company.

 

2.Representations
and Warranties of Investor.

 

(a)The representations
and warranties of the Investor set forth in Section 2 of the Securities Purchase Agreement are hereby incorporated by reference
with such changes necessary to relate to this Agreement as if set forth in their entirety herein (the “Investor Representations
and Warranties”). For the avoidance of doubt, in the Investor Representations and Warranties references to “Securities”
shall be deemed references to the Third 2012 Convertible Debenture, the Third 2012 Warrants and the shares of Common Stock issuable
upon conversion or exercise thereof, references to “Conversion Shares” shall be deemed to reference the shares of Common
Stock issuable upon conversion of the Third 2012 Convertible Debenture, references to “Warrant Shares” shall be deemed
to reference the shares of Common Stock issuable upon exercise of the Third 2012 Warrants and any reference to “Transaction
Documents” shall be deemed to include a reference to this Agreement, the Third 2012 Convertible Debenture and the Third 2012
Warrants.

 

(b)The Investor
hereby represents and warrants that except as may otherwise be disclosed on a disclosure schedule attached hereto, the Investor
Representations and Warranties are true and correct on the date hereof (except for Investor Representations and Warranties that
speak as of a specific date).

    	 

    	 

    
 

 

3.Representations
and Warranties of the Company.

 

(a)The representations
and warranties of the Company set forth in Section 3 of the Securities Purchase Agreement are hereby incorporated by reference
with such changes necessary to relate to this Agreement as if set forth in their entirety herein (the “Company Representations
and Warranties”). For the avoidance of doubt, in the Company Representations and Warranties references to “Securities”
shall be deemed references to the Third 2012 Convertible Debenture, the Third 2012 Warrants and the shares of Common Stock issuable
upon conversion or exercise thereof, references to “Conversion Shares” shall be deemed to reference the shares of Common
Stock issuable upon conversion of the Third 2012 Convertible Debenture, references to “Warrant Shares” shall be deemed
to reference the shares of Common Stock issuable upon exercise of the Third 2012 Warrants and any reference to “Transaction
Documents” shall be deemed to include a reference to this Agreement, the Third 2012 Convertible Debenture and the Third 2012
Warrants.

 

(b)The Company
hereby represents and warrants that except as may otherwise be disclosed on a disclosure schedule attached hereto or as set forth
in the SEC Documents, such Company Representations and Warranties are true and correct on the date hereof (except for Company Representations
and Warranties that speak as of a specific date).

 

4.Covenants.

 

(a)With
the exception of subsections 4(d), 4(g)(ii), 7(e) and 7(h), the covenants set forth (or referenced) in Section 4 of the Securities
Purchase Agreement are hereby incorporated by reference with such changes necessary to relate to this Agreement as if set forth
in their entirety herein (the “Covenants”). For the avoidance of doubt, the Covenants’ references to “Securities”
shall be deemed references to the Third 2012 Convertible Debenture, Third 2012 Warrants and the shares of Common Stock issuable
upon conversion or exercise thereof, references to “Conversion Shares” shall be deemed to reference the shares of Common
Stock issuable upon conversion of the Third 2012 Convertible Debenture, references to “Warrant Shares” shall be deemed
to reference the shares of Common Stock issuable upon exercise of the Third 2012 Warrants and any reference to “Transaction
Documents” shall be deemed to include a reference to this Agreement, the Third 2012 Convertible Debenture and the Third 2012
Warrants.

 

(b)The Company
will use the proceeds from the sale of the Third 2012 Convertible Debenture for the general corporate and working capital purposes
of the Company and its subsidiaries.

 

5.Ratification
of Financing Documents; Confirmation of Collateral; Cross-Default; Cross-Collateralization; Further Assurances.

 

(a)The Company
hereby ratifies, confirms, and reaffirms all and singular the terms and conditions of the Existing Financing Documents, and acknowledges
and agrees that, subject to the terms and conditions of this Agreement, all terms and conditions of the Existing Financing Documents
shall remain in full force and effect and the Company remains liable to the Investor for the payment and performance of all amounts
due under the Existing Documents, without offset, defense or counterclaim of any kind, nature or description whatsoever.

    	 

    	 

    

 

(b)The Company
hereby ratifies, confirms, and reaffirms that (i) the obligations secured by the Financing Documents include, without limitation,
all amounts hereafter owed or due under the Third 2012 Convertible Debenture and/or the Financing Documents (the “Obligations”),
and any future modifications, amendments, substitutions, or renewals thereof, (ii) all collateral, whether now existing or hereafter
acquired, granted to the Investor pursuant to the Financing Documents, or otherwise, shall secure all of the Obligations until
the full, final, and indefeasible payment of the Obligations, and (iii) the occurrence of a default
and/or event of default under any Financing Document shall constitute a default and an event of default under all of the Financing
Documents, it being the express intent of the Company that all of the Obligations be fully cross-collateralized,
cross-guaranteed, and cross-defaulted.

 

(c)The Company
has previously granted the Investor security interests in all of its assets, and to confirm the same the Company hereby grants
the Investor a security interest in all of its assets, whether now existing or hereafter acquired, including, without limitation,
all accounts, inventory, goods, equipment, software and computer programs, securities, investment property, financial assets, deposit
accounts, chattel paper, electronic chattel paper, instruments, patents, patent applications, copyrights, trademarks, trademark
applications, trade names, domain names, documents, letter-of-credit rights, health-care-insurance receivables, supporting obligations,
notes secured by real estate, commercial tort claims, and general intangibles including payment intangibles, to secure the Obligations
free and clear of all liens and encumbrances, except those in favor of the Investor.

 

(d)The Company
shall, from and after the execution of this Agreement, execute and deliver to the Investor whatever additional documents, instruments,
and agreements that the Investor may require in order to correct any document deficiencies, or to vest or perfect the Financing
Documents and the collateral granted therein more securely in the Investor and/or to otherwise give effect to the terms and conditions
of this Agreement and/or any documents, instruments and agreement required in connection with, related to, or contemplated by this
Agreement, and hereby irrevocably authorizes the Investor to file any financing statements (including financing statements with
a generic description of the collateral such as “all assets”), and take any other normal and customary steps, the Investor
deems necessary to perfect or evidence the Investor’s security interests and liens in any such collateral.

 

(e)The Company
acknowledges and agrees that this Agreement shall constitute an authenticated record as such term is defined in the Uniform Commercial
Code.

 

(f)The Company
acknowledges and agrees that nothing contained in this Agreement, the Third 2012 Convertible Debenture, Third 2012 Warrants or
in any document, instrument or agreement required in connection with, related to or contemplated thereby shall
be deemed to constitute (1) a waiver of any defaults or events of default now existing or hereafter arising, (2) an agreement to
forbear by the Investor with respect to such defaults or events of default, or (3) an amendment, modification, extension or waiver
of any of the terms of the Financing Documents or of any of the Investor’s rights and remedies thereunder. 

 

6.Conditions.
The obligation of the Investor hereunder to purchase the Third 2012 Convertible Debenture is subject to the Investor having received
an opinion of counsel from counsel to the Company in a form satisfactory to the Investor; provided that this condition is for the
Investor’s sole benefit and may be waived by the Investor at any time in its sole discretion.

    	 

    	 

    

 

7.Fees
and Expenses. The Company shall pay all of its costs and expenses incurred by it connection with the negotiation, investigation,
preparation, execution and delivery of this Agreement, the Third 2012 Convertible Debenture, the Third 2012 Warrants or any document,
instrument or agreement required in connection with, related to or contemplated thereby. The Company shall pay a structuring and
due diligence fee to Yorkville Advisors, LLC, the Investor’s investment manager, of $25,000 which shall be paid directly
from the proceeds of the Closing. The Company acknowledges and agrees that the structuring and due diligence fee paid shall be
nonrefundable, fully earned as of the date of the execution of this Agreement, and retained by the Investor as a fee and not applied
in reduction of any other Obligations.

 

 

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BLANK]

    	 

    	 

    

 

IN WITNESS WHEREOF,
the parties have caused this Agreement to be duly executed as of date first above written.

 

 

 

 

 

	 	COMPANY:
	 	NEOMEDIA TECHNOLOGIES, INC.
	 	 	 
	 	By:	      /s/ Barry S.
    Baer     
	 	Name:	Barry S. Baer
	 	Title:	Colonel US Army (Retired), Chief Financial Officer
	 	 	
         

         

	 	 	 
	 	INVESTOR:
	 	YA GLOBAL INVESTMENTS, L.P.
	 	By: 	Yorkville Advisors, LLC
	 	 	its Investment Manager
	 	 	 
	 	By:	       /s/ Gerald Eicke       
	 	Name: 	Gerald Eicke
	 	Title:   	Managing Member

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