Document:

Exhibit 10.7

 

IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

 

September 15, 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 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 third 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/ Robert W. Thomson

	  	
Name:

	
       Robert W. Thomson

	  	
Title:

	
       Interim Chief Financial Officer

	  	  	  
	  	
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:

	
   /s/ David Gonzalez

	  	David Gonzalez, Esq.

	
WorldWide Stock Transfer, LLC

	  
	  	  	  
	
By:

	
   /s/ Yonah J. Kopstick

	  
	
Name

	
       Yonah  Kopstick

	  
	
Title:

	
  SVPUnassociated Document

Exhibit 10.1

(Unofficial English Translation Solely for Convenience)

Project Investment Contract

Xi’an Lintong Tourism and Business Development Management Commission (Party A)

Xi’an Tech Full Simo Motor Co., Ltd. (Party B)

In accordance with laws and regulations, including the PRC Contract Law, the PRC Land Administration Law, and the PRC Provisional Ordinance for the Grant and Transfer of Use Right of State Owned Urban Land, and on an equal, voluntary, and mutually beneficial basis, Party A and Party B have reached the following agreement regarding Party B’s investment and development of the “Electromechanical Products Capacity Expansion” project in the area administrated by Party A:

1. Party B shall invests in the area administrated by Party A to develop the electromechanical products capacity expansion project, with a total investment of RMB 2.1 billion, an estimated annual production capacity of RMB 5 billion after completion, and a total annual tax payment of RMB 200 million.

2. The land that Party A shall transfer to Party B is located in Daixin Industrial Development Zone in Xi’an Lintong Tourism and Business Development Zone. This land has an area of approximately 500 Mu, including approximately 68.2 Mu of public roads, (subject to the actual measurement by the Administration of National Land and Resources), and the location is shown in the sketch attached. The use of this land shall be for industrial use, and the period of this transfer shall be 50 years, beginning from the day on which Party A delivers this land to Party B. The comprehensive price of this land transfer is RMB 500,000 per Mu, with a total price of approximately RMB 250 million (including Land Use Fee for New Construction Land, Reclamation Fee, Land Compensation Fee, Labor Placement Subsidizing Fee, Crop Compensation Fee, Transfer Fee, Land Administration Fee, the “Two Taxes and One Payment,” and Social Security Contribution).

3. Within 7 days after this Contract is signed and comes into effect, Party B shall make the first payment to Party A (60% of the total comprehensive price of this land transfer), namely approximately RMB 150 million. Within 3 days after Party A delivers this land to Party B for use, Party B shall pay Party A 30% of the total comprehensive price of this land transfer, namely approximately RMB 75 million. After Party A delivers a photocopy of the Land Use Certificate to Party B, Party B shall pay Party A on a one-time basis the remaining amount of the total price, after which payment Party A shall deliver the Land Use Certificate to Party B.

  

  

  

4. Duties of Party A

1) Within 60 days after Party B makes the first payment to Party A (60% of the total comprehensive price of this land transfer), namely approximately RMB 150 million, Party A shall reclaim this land and deliver it to Party B for use.

2) Within 30 business days after Party B provides Party A with all required materials, Party A shall on behalf of Party B complete the application for the Construction Land Planning Permit, the Construction Project Planning Permit, the project filing, and the review procedure. Within 30 business days after Party B provides Party A with all required materials and pays relevant fees, Party A shall on behalf of Party B apply for and obtain the Construction Permit. Party A shall assist Party B in the application procedures for the review of fire protection, water, and electricity related to this project. Relevant fees incurred in the application procedures shall be paid by Party B according to relevant regulations.

3) Party A shall deliver temporary access to water and electricity (high voltage) for construction to the red line of this land area, with water and electricity to be paid for by Party B. Party A shall deliver permanent access to water, electricity (high voltage), and sewage disposal facilities to the red line of this land area within 15 business days before operations of this project is formally commenced, with internal connection projects to be paid for and undertaken by Party B.

4) Within two years after Party B has paid Party A 90% of the total comprehensive price of this land transfer, namely approximately RMB 225 million, Party A shall on behalf of Party B apply for and obtain the Land Use Certificate.

5) Party A shall ensure that Party B obtains the Use Certificate of State Owned Land at the time stipulated in this contract and that this Land Use Certificate is legal and obtained through legal land review procedures. Before the Land Use Certificate is obtained, Party A shall ensure Party B’s normal and reasonable use of this land and Party B’s normal operating activities.

5. Duties of Party B

1) The use of this land by Party B must be in accordance with the use stipulated in this contract and must not be unilaterally changed. During the period of this transfer, any change to the use of this land needs to be approved by Party A, and both parties shall enter into a land transfer contract anew according to relevant regulations, adjust the comprehensive price of the transfer of this land, and go through the land use right transfer process.

2) For the items to be processed by Party A or processed by Party A on behalf of Party B pursuant to this contract, Party B shall provide Party A with all materials in time according to the written request of Party A, or otherwise take responsibility for any delay in the process.

  

  

  

3) Party B shall provide the environmental assessment report of this project and satisfy the national environmental protection requirement.

4) Before operations of this project is formally commenced, party B shall complete industrial and commercial registration, tax registration, and the legal person registration in the area administrated by Party A

5) Party B shall organize the planning and design according to the planning requirement and submit the planning and design to Party A for review.

6) Party B shall commence the construction of the main facility within 60 days after Party A delivers this land to Party B for use. The time limit for the construction in this project is 24 months.

6. Liabilities for the Breach of This Contract

1) In the event Party A breaches Article 4 Item 1 of this contract, after 30 days of delay, for each additional day of delay Party A shall pay Party B a penalty equal to 5‰ of the total amount that has been paid by Party B for this land transfer.

2) In the event Party B breaches Article 3 of this contract, for each day of delay Party B shall pay Party A a penalty equal to 5‰ of the amount that has not been paid by Party B.

3) In the event Party B does not commence the construction in two consecutive years after this contract is signed, Party A has the right to reclaim the use right of this land without compensation.

7. After this contract is signed and stamped by Party A and Party B, if this contract cannot be implemented due to such force majeure as changes in national laws, regulations, or policies, wars, or large-scale natural disasters, then neither party shall be responsible for any breach of this contract.

8. If in 30 days after this contract is signed, Party B fails to make the first payment (namely approximately RMB 150 million) pursuant to Article 3 of this contract, this contract is terminated automatically.

9. At the end of the period of this transfer, if Party B needs continued use of this land, then Party B shall regain the land use right according to relevant procedures.

10. Regarding matters not covered in this contract, Party A and Party B shall negotiate and enter into supplemental contracts, and these supplemental contracts shall have the same legal effect as this contract.

11. Any dispute that arises during the implementation of this contract shall be resolved through negotiation or, if such negotiation fails, submitted to the People’s Court of Lintong District, Xi’an, for a resolution.

  

  

  

12. This contract is in sextuple, with three copies kept by each of Party A and Party B, and comes into effect after being signed and stamped by representatives of Party A and Party B.

 

Attachment: One sketch of the land for this project.

  

  

  

Party A: Xi’an Lintong Tourism and Business Development Management Commission (stamp)

Representative: Shengmin Wu (stamp)

Party B : Xi’an Tech Full Simo Motor Co., Ltd. (stamp)

Representative: Tianfu Yang (stamp)

June 10, 2011

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}]]