AMENDMENT TO “C” WARRANT NO.: CCP-001

  THIS AMENDMENT AGREEMENT (the “Amendment”) is entered into as of December 29,
2006, between NEOMEDIA TECHNOLOGIES, INC., a corporation organized and existing
under the laws of the State of Delaware (the “Company”), and CORNELL CAPITAL
PARTNERS, LP a Delaware limited partnership (the “Holder”).
 
  WHEREAS, the Company issued to the Holder on August 24, 2006, 2006 a certain
“C” warrant No.: CCP-001 to purchase 50,000,000 shares of the Company’s Common
Stock at an exercise price of $0.20 (the “Warrant”); and
 
  WHEREAS, the parties wish to amend the Warrant as set forth below.
 
  NOW, THEREFORE, it is agreed:
 
I.        Amendments.
 
 
 A. 
 
 Section 1(b)(xv) “Warrant Exercise Price”: Section 1(b)(xv) of the Warrant is
hereby deleted in its entirety and the following language shall replace said
Section 1(b)(xv):

 
Section 1(b)(xv) “Warrant Exercise Price” shall be Four Cents ($0.04) or as
subsequently adjusted as provided in Section 8 hereof.
 

B.  
  Section 2(g) “Forced Exercise”: Section 2(g) of the Warrant is hereby deleted
in its entirety and the following language shall replace said Section 2(g):

 
Section 2(g) “Forced Exercise”. Provided that the shares issuable upon exercise
this Warrant are registered pursuant to an effective registration statement, the
Company at its option shall have the right at any time commencing on the date
hereof if the Company’s Closing Bid Price as quoted by Bloomberg, LP is equal to
or greater than Fourteen ($0.14) for ten (10) consecutive Trading Days, to on
such tenth (10th) day provide written notice to the Holder (the “Forced Exercise
Notice”) providing the Holder twenty (20) calendar days from the day following
receipt of the Forced Exercise Notice, to exercise this Warrant in whole at the
then applicable Exercise Price (“Forced Exercise Period”). Provided however in
the event that the Closing Bid Price of the Company’s Common Stock during the
Forced Exercise Period is equal to or lower than the applicable Warrant Exercise
Price the Holder shall not be forced to exercise this Warrant, in whole or in
part, as provided for herein.
 

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C.  
  The following language shall be inserted as Section 2(h):

 
Section 2(h) “Redemption”. For a period of six (6) months from the date hereof,
and provided that the shares underlying the Warrant are subject to an effective
registration statement, the Company shall have the right to redeem the Warrant
on a cashless basis at an effective price of Twelve Cents ($0.12).

 
II.      Miscellaneous.

A.  
  Except as provided hereinabove, all of the terms and conditions contained in
the Warrant shall remain unchanged and in full force and effect.

 

B.  
  This Amendment is made pursuant to and in accordance with the terms and
conditions of the Warrant.

 

C.  
  All capitalized but not defined terms used herein shall have those meanings
ascribed to them in the Warrant.

 
                  
D.       
All provisions in the Warrant and any amendments, schedules or exhibits thereto
in conflict with this Amendment shall be and hereby are changed to conform to
this Amendment.

      
 
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  IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by the undersigned, thereunto duly authorized, as of the date first set
forth above.
 

       
COMPANY:
 
NEOMEDIA TECHNOLOGIES, INC.
 
   
   
    By:   /s/ David A. Dodge  

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Name: David A. Dodge
 
Title: Chief Financial Officer

 

       
CORNELL CAPITAL PARTNERS, LP
  By:   Yorkville Advisors LLC   Its: General Partner

 

        By:   /s/ Mark Angelo  

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Name Mark Angelo
  Title: President & Portfolio Manager

 
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