AMENDMENT TO “C” WARRANT NO.: CCP-003
 
THIS AMENDMENT AGREEMENT (the “Amendment”) is entered into as of August 24,
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 February 17, 2006 a certain “C”
warrant No.: CCP-003 to purchase 30,000,000 shares of the Company’s Common Stock
at an exercise price of $0.35 (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 Ten Cents ($0.10) 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 Twenty Cents ($0.20) 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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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/ Charles T. Jensen  

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Name Charles T. Jensen
 
Title: President & Chief Executive 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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