NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

I think what they were addressing in that CC ...

... last year sometime, were payments to certain of the 12Snap shareholders.

However , the basic debt of $4.5MM was intact and outstanding as of 3/31/08 and no payments had been made on that debt.

"On March 19, 2007, we issued 197,620,948 shares of common stock to the former 12Snap shareholders as partial payment against the purchase price protection clause of the original sale and purchase agreement between the former 12Snap shareholders and us. The shares were valued at $0.045 per share, which was the fair value at the time of issuance"

"On March 19, 2007, we issued 197,620,948 shares valued at $9.4 million as partial settlement of the $16.2 million obligation, leaving a balance of $6.8 million after the stock payment. Also during 2007, we made payments of $0.5 million and negotiated a reduction of $1.76 million in the obligation, leaving a balance as of March 31, 2008 of $4.5 million in purchase price guarantees, the entire balance of which is currently due and payable"

http://www.sec.gov/Archives/edgar/data/1022701/000114420408029387/v114084_10q.htm

Perhaps we'll see a change in that amount in the 2Q08 10-Q , but if they really said in the CC last year that they were making payments on it , they said wrong.

Regarding Chip's severance payout:

"Settlement and Release Agreement (Hoffman)

On June 3, 2008, in connection with the resignation of Mr. William Hoffman which was effective on May 22, 2008, the Company and Mr. Hoffman consummated a Settlement Agreement and Release (the “Agreement”) whereby the parties agreed to terminate Mr. Hoffman’s June 18, 2007 Employment Agreement, effective May 29, 2008. Pursuant to the Hoffman Agreement, the Company agreed to pay to Mr. Hoffman a severance payment equal to One Hundred Eighty-Seven Thousand Five-Hundred Dollars ($187,500), of which Ninety-Three Thousand Seven Hundred Fifty Dollars ($93,750) has already been paid and the remainder shall be paid to the Executive in four (4) equal monthly installments of Twenty-Three Thousand Four Hundred Thirty-Seven Dollars and Fifty Cents ($23,437.50) commencing on November 1, 2008 in accordance with the Company's customary payroll practices.

Additionally, pursuant to the terms of the Hoffman Agreement, Mr. Hoffman is entitled to continue to participate in or receive health, welfare, life insurance, long-term disability insurance and similar benefits as the Company provides generally from time to time to its senior executives, and to its employees, generally, through and until the earlier of (a) the last day of the month in which the final installment payment is paid (the "Expiration Date") and (b) such date that Mr. Hoffman obtains employment and becomes eligible for benefits of such employer. Mr. Hoffman was also granted an option to purchase Ten Million (10,000,000) shares of the Company’s common stock, par value $0.01 per share, at $0.01 per share. All of such options have vested and are exercisable through the Expiration Date. A copy of the Hoffman Agreement is attached hereto as Exhibit 10.5 and a copy of Mr. Hoffman’s Resignation Letter is attached hereto as Exhibit 10.6."

And we still have Frank Pazera's (smaller) severance package. It should be smaller IMO .. the Tatum/Pazera Consortium made out like bandits , we got absolutely NOTHING from that high-priced "horsepower" which cost us $33,000/month for a while. NOTHING.

"Settlement and Release Agreement (Pazera)

On June 2, 2008, the Company and Frank J. Pazera entered into a Settlement Agreement and Release (the “Pazera Agreement”) whereby the parties agreed to terminate Mr. Pazera’s January 1, 2008 Employment Agreement, effective June 2, 2008. Pursuant to the Pazera Agreement, the Company agreed to pay to Mr. Pazera a severance payment equal to Sixty-Six Thousand Six Hundred Sixty-Seven Dollars ($66,667), which such payment shall be made to Mr. Pazera in eight (8) equal semi-monthly installments of Eight-Thousand Three-Hundred Thirty-Three Dollars and Thirty-Eight Cents ($8,333.38) commencing on June 15, 2008 (the “Commencement Date”) in accordance with the Company's customary payroll practices.

Additionally, pursuant to the terms of the Pazera Agreement, Mr. Pazera is entitled to continue to participate in or receive medical, life, and disability insurance as the Company provides generally from time to time to its senior executives, and to its employees, generally, through and until the until the earlier of (a) the last day of the month in which the final installment payment is paid in accordance with Section 3 herein above (the “Expiration Date”) and (b) such date that the Executive obtains employment and becomes eligible for benefits of such employer. Furthermore, the Company shall pay to Mr. Pazera Ten Thousand Dollars ($10,000) within five (5) days of the Commencement Date, which such payment represents fifty percent (50%) of Mr. Pazera’s first quarter 2008 bonus under his now terminated Employment Agreement. A copy of the Pazera Agreement is attached hereto as Exhibit 10.7."

http://www.sec.gov/Archives/edgar/data/1022701/000114420408033823/v116684_8k.htm

jonesie



Yorkville / Cornell Tracking Board #board-9964


"I can think of no more valuable commodity than information"