Document:

Unassociated Document

 

AMENDMENT NO. 2

TO

RESOURCE HOLDINGS, INC.

PROMISSORY NOTE

This Amendment No. 2 to Promissory Note (the “Amendment”) is dated as of the 1st day of June, 2011, and is by and between ________________ (the “Holder”) and Resource Holdings, Inc., a Nevada corporation (the “Borrower”).

WHEREAS, the Holder and the Borrower are parties to that certain Promissory Note dated __________ (as amended or otherwise modified from time to time, the “Note”; capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Note); and

WHEREAS, pursuant to Amendment No. 1 to Promissory Note, dated as of November 23, 2010, the Borrower and the Holder extended the maturity date of the Note from November 30, 2010 to June 30, 2011;

WHEREAS, the Borrower has requested that the maturity date of the Note be further extended from June 30, 2011 to the dates set forth herein;

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each of the Holder and the Borrower hereby agree to amend the first paragraph of the Note as follows:

“FOR VALUE RECEIVED, RESOURCE HOLDINGS, INC., a Nevada corporation (herein called the “Company”), hereby promises to pay to ______________, with an address at ________________, or its assigns (together, herein called the “Holder”), (A) on the earlier of (i) the date on which the Company consummates one or more offerings of debt or equity securities with aggregate net proceeds to the Company of at least Ten Million Dollars ($10,000,000), or (ii) August 31, 2011 (the earlier of (i) or (ii), the “Initial Principal Payment Date”) the principal sum of ____________ Dollars and 00/100 ($______.00) and (B) the six month anniversary of the Initial Principal Payment Date, the principal sum of ____________ Dollars and 00/100 ($______.00), together with interest upon the principal hereof at the rate of 10% per annum.  Interest on this Note shall accrue on the outstanding principal amount on this Note from the date of issuance until the date of repayment of the principal and payment of accrued interest in full.  Interest shall be calculated on the basis of a 365 day year and shall be payable at final maturity.  Payments hereunder shall be made at such place as the holder hereof shall designate to the undersigned, in writing, in lawful money of the United States of America.  Any payment which becomes due on a Saturday, Sunday or legal holiday shall be payable on the next business day.  This Note was issued pursuant to that certain Subscription Agreement, dated ____________, between the Company and the Holder (the “Subscription Agreement”).

  

1

  

 

IN WITNESS WHEREOF, this Amendment has been executed as of, and is effective as of, the day and year first written above.

 

 

	 	 
Resource holdings, inc., as Borrower

 
By:______________________________ 

 
Name:  Michael Campbell

 
Title:    Chief Executive Officer

 
________________________, as Holder

 
By:______________________________

 
Name:____________________________

 
Title:_____________________________

 

  

2Exhibit 10.1

THIS AGREEMENT (this “Agreement”), dated June 28, 2011 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) up to  $1,050,000 of secured convertible debentures in the form attached hereto as “Exhibit A”, which shall be convertible into Common Stock (as converted such shares of Common Stock, shall be Conversion Shares) and of which $250,000 of secured convertible debentures (the “Sixth 2011 Convertible Debenture” which shall be deemed to be included in the term Convertible Debentures) shall be funded within 5 business days of the date hereof (the “Sixth 2011 Closing”), $450,000 of secured convertible debentures (the “Seventh 2011 Convertible Debenture” which shall be deemed to be included in the term Convertible Debentures) which may be funded on or before July 15, 2011 (the “Seventh 2011 Closing”) and $350,000 of secured convertible debentures (the “Eighth 2011 Convertible Debenture” which shall be deemed to be included in the term Convertible Debentures) which may be funded on or before August 15, 2011 (the “Eighth 2011 Closing” and together with the Sixth 2011 Closing and the Seventh 2011 Closing, the “Closings” and each a “Closing”), and (ii) warrants substantially in the form attached hereto as “Exhibit B” (the “Sixth 2011 Warrants”, which shall be deemed to be included in the term Warrants and together with this Agreement, the Sixth 2011 Convertible Debenture, Seventh 2011 Convertible Debenture (if purchased), the Eight 2011 Convertible Debenture (if purchased), 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 3,000,000 additional shares of Common Stock (as exercised, such shares of Common Stock shall be Warrant Shares) for a total purchase price of up to $1,050,000 (the “Total Purchase Price”).

 

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 Sixth 2011 Convertible Debenture, Seventh 2011 Convertible Debenture, Eighth 2011 Convertible Debenture and Sixth 2011 Warrants.

 

(a)       Subject to the satisfaction (or waiver) of the terms and conditions of this Agreement, (i) at the Sixth 2011 Closing the Investor agrees to purchase and the Company agrees to sell and issue to the Investor the Sixth 2011 Convertible Debenture and Sixth 2011 Warrants; (ii) at the Seventh 2011 Closing the Investor agrees to purchase and the Company agrees to sell and issue to the Investor the Seventh 2011 Convertible Debenture; and (iii) at the Eighth 2011 Closing the Investor agrees to purchase and the Company agrees to sell and issue to the Investor the Eighth 2011 Convertible Debenture.

 

  

  

  

 

(b)     The Sixth 2011 Closing shall take place at 10:00 a.m. Eastern Standard Time within five business day of the date hereof, subject to notification of satisfaction of the conditions to the Sixth 2011 Closing set forth in this Agreement (or such other date as is mutually agreed to by the Company and the Investor).  The Seventh 2011 Closing shall take place on or before July 15, 2011, subject to notification of satisfaction of the conditions to the Seventh 2011 Closing set forth in this Agreement (or such other date as is mutually agreed to by the Company and the Investor).  The Eighth 2011 Closing shall take place on or before August 15, 2011, subject to notification of satisfaction of the conditions to the Eighth 2011 Closing set forth in this Agreement (or such other date as is mutually agreed to by the Company and the Investor).  The Closings 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, (i) on the Sixth 2011 Closing Date, the Investor shall deliver to the Company such aggregate proceeds for the Sixth 2011 Convertible Debenture and Sixth 2011 Warrants to be issued and sold to such Investor at the Sixth 2011 Closing, minus the fees to be paid directly from the proceeds thereof as set forth herein, and the Company shall deliver to the Investor the Sixth 2011 Convertible Debenture and Sixth 2011 Warrants duly executed on behalf of the Company; (ii) on the Seventh 2011 Closing Date, the Investor shall deliver to the Company such aggregate proceeds for the Seventh 2011 Convertible Debenture to be issued and sold to such Investor at the Seventh 2011 Closing and the Company shall deliver to the Investor the Seventh 2011 Convertible Debenture duly executed on behalf of the Company; and (iii) on the Eighth 2011 Closing Date, the Investor shall deliver to the Company such aggregate proceeds for the Eighth 2011 Convertible Debenture to be issued and sold to such Investor at the Eighth 2011 Closing and the Company shall deliver to the Investor the Eighth 2011 Convertible Debenture 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 Sixth 2011 Convertible Debenture, the Sixth 2011 Warrants and, if purchased, the Seventh 2011 Convertible Debenture and the Eighth 2011 Convertible Debenture 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 Fifth 2011 Convertible Debenture and, if purchased, the Seventh 2011 Convertible Debenture and the Eighth 2011 Convertible Debenture, references to “Warrant Shares” shall be deemed to reference the shares of Common Stock issuable upon exercise of the Sixth 2011 Warrants and any reference to “Transaction Documents” shall be deemed to include a reference to this Agreement, the Sixth 2011 Convertible Debenture, the Sixth 2011 Warrants and, if purchased, the Seventh 2011 Convertible Debenture and the Eighth 2011 Convertible Debenture.

 

(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 Sixth 2011 Convertible Debenture, the Sixth 2011 Warrants and, if purchased, the Seventh 2011 Convertible Debenture and the Eighth 2011 Convertible Debenture 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 Sixth 2011 Convertible Debenture and, if purchased, the Seventh 2011 Convertible Debenture and the Eighth 2011 Convertible Debenture, references to “Warrant Shares” shall be deemed to reference the shares of Common Stock issuable upon exercise of the Sixth 2011 Warrants and any reference to “Transaction Documents” shall be deemed to include a reference to this Agreement, the Sixth 2011 Convertible Debenture, the Sixth 2011 Warrants and, if purchased, the Seventh 2011 Convertible Debenture and the Eighth 2011 Convertible Debenture.

 

  

  

  

 

(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 Sixth 2011 Convertible Debenture, the Sixth 2011 Warrants and, if purchased, the Seventh 2011 Convertible Debenture and the Eighth 2011 Convertible Debenture, 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 Sixth 2011 Convertible Debenture and, if purchased, the Seventh 2011 Convertible Debenture and the Eighth 2011 Convertible Debenture, references to “Warrant Shares” shall be deemed to reference the shares of Common Stock issuable upon exercise of the  Sixth 2011 Warrants and any reference to “Transaction Documents” shall be deemed to include a reference to this Agreement, the  Sixth 2011 Convertible Debenture, the  Sixth 2011 Warrants and, if purchased, the Seventh 2011 Convertible Debenture and the Eighth 2011 Convertible Debenture.

 

(b)      The Company will use the proceeds from the sale of the Sixth 2011 Convertible Debenture and, when sold, the Seventh 2011 Convertible Debenture and the Eighth 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 Sixth 2011 Convertible Debenture and, if purchased, the Seventh 2011 Convertible Debenture and the Eighth 2011 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  Sixth 2011 Convertible Debenture, the  Sixth 2011 Warrants and, if purchased, the Seventh 2011 Convertible Debenture and the Eighth 2011 Convertible Debenture, 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.

 

(a)       The obligation of the Investor hereunder to purchase the  Sixth 2011 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.

 

(b)       The purchase by the Investor of the Seventh 2011 Convertible Debenture at the Seventh 2011 Closing and the Eighth 2011 Convertible Debenture at the Eighth 2011 Closing shall be in the Investor’s sole discretion and shall be subject to, among other things, the following conditions:

 

(i)         The Common Stock shall be authorized for quotation or trading on the Primary Market, trading in the Common Stock shall not have been suspended for any reason, and all the Conversion Shares issuable upon the conversion of the Convertible Debentures shall be approved for listing or trading on the Primary Market.

 

(ii)        The representations and warranties of the Company shall be true and correct in all material respects (except to the extent that any of such representations and warranties is already qualified as to materiality, in which case, such representations and warranties shall be true and correct without further qualification) as of the date when made and as of the Seventh 2011 Closing and Eighth 2011 Closing as though made at that time (except for representations and warranties that speak as of a specific date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Seventh 2011 Closing and the Eighth 2011 Closing.

 

(iii)       The Company shall have executed and delivered to the Investor the Seventh 2011 Convertible Debenture and the Eighth 2011 Convertible Debenture.

 

(iv)       The Company shall have certified, in a certificate executed by two officers of the Company and dated as of the Seventh 2011 Closing and the Eighth 2011 Closing, that all conditions to the Seventh 2011 Closing or Eighth 2011 Closing have been satisfied.

 

  

  

  

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  Sixth 2011 Convertible Debenture, the  Sixth 2011 Warrants, the Seventh 2011 Convertible Debenture and the Eighth 2011 Convertible Debenture 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 $100,000 which shall be paid directly from the proceeds of the First 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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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/ Michael W. Zima

	  	
Name:

	
Michael W. Zima

	  	
Title:

	
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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