Document:

NEITHER THESE SECURITIES NOR THE SECURITIES
ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON
EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

 

NEUMEDIA, Inc.

 

WARRANT

 

	Warrant No. 1	Original Issue Date: December 23, 2011

 

NeuMedia, Inc, a Delaware
corporation (the “Company”), hereby certifies that, for value received, Adage Capital Management L.P. or its
registered assigns (the “Holder”), is entitled to purchase from the Company up to the Warrant Number of shares
of Common Stock (each such share, a “Warrant Share” and all such shares, the “Warrant Shares”),
at any time and from time to time from and after the Original Issue Date and through and including the fifth anniversary of the
Original Issue Date (the “Expiration Date”), and subject to the following terms and conditions:

 

1.          Definitions.
As used in this Warrant, the following terms shall have the respective definitions set forth in this Section 1.

 

“Business Day”
means any day except Saturday, Sunday and any day that is a federal legal holiday in the United States or a day on which banking
institutions in the State of California are authorized or required by law or other government action to close.

 

“California Courts”
means the state and federal courts sitting in Los Angeles County, California.

 

“Common Stock”
means the common stock of the Company, par value $0.0001 per share, and any securities into which such common stock may hereafter
be reclassified.

 

    	 

    	 

    

 

“Conversion Price”
means (x) if the Note is converted into Common Stock in connection with a Qualified Equity Financing, a price equal to 75% of the
price paid by the investors that purchase securities in such Qualified Equity Financing, and (y) if the Note is converted into
Common Stock in connection with an event other than a Qualified Equity Financing, a price equal to 75% of the average trading price
of the Common Stock for the 30-day period immediately prior to such conversion.

 

“Exercise Price”
means the Conversion Price, subject to adjustment in accordance with Section 9.

 

“Fundamental Transaction”
means any of the following: (1) the Company effects any merger or consolidation of the Company with or into another Person, (2)
the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (3) any tender
offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted
to tender or exchange their shares for other securities, cash or property, or (4) the Company effects any reclassification of the
Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for
other securities, cash or property.

 

“Note”
means the Subordinated Convertible Promissory Note in the original principal amount of $7,000,000 issued by the Company to the
Holder on the Original Issue Date.

 

“Original Issue
Date” means the Original Issue Date first set forth on the first page of this Warrant.

 

“Qualified Equity
Financing” means an equity financing pursuant to which the Company sells securities with the principal purpose of raising
capital.

 

“Trading Day”
means (i) a day on which the Common Stock is traded on a Trading Market (other than the OTC Bulletin Board), or (ii) if the Common
Stock is not listed on a Trading Market (other than the OTC Bulletin Board), a day on which the Common Stock is traded in the over-the-counter
market, as reported by the OTC Bulletin Board, or (iii) if the Common Stock is not quoted on any Trading Market, a day on which
the Common Stock is quoted in the over-the-counter market as reported by the Pink Sheets LLC (or any similar organization or agency
succeeding to its functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as
set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day.

 

“Warrant Number”
means the number of shares of Common Stock calculated by dividing the principal amount of the Note outstanding immediately prior
to any conversion of the Note into Common Stock by the Conversion Price.

 

2.          Registration
of Warrant. The Company shall register this Warrant upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and
for all other purposes, absent actual notice to the contrary.

 

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3.          Registration
of Transfers. The Company shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender
of this Warrant, with the Form of Assignment attached hereto duly completed and signed, to the Company at its address specified
herein. Upon any such registration or transfer, a new Warrant to purchase Common Stock, in substantially the form of this Warrant
(any such new Warrant, a “New Warrant”), evidencing the portion of this Warrant so transferred shall be issued
to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued
to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such
transferee of all of the rights and obligations of a holder of a Warrant.

 

4.          Exercise
and Duration of Warrants. This Warrant may only be exercised by the Holder on or after the date on which the Common Stock has
traded on the NASDAQ (or other nationally recognized securities exchange) at a price equal to or greater than the Conversion Price
for a period of 60 consecutive Trading Days with an average daily volume of at least 200,000 shares (the “Vesting Date”).
This Warrant shall be exercisable by the registered Holder at any time and from time to time on or after the Vesting Date through
and including the Expiration Date. At 6:30 p.m., Los Angeles time on the Expiration Date, the portion of this Warrant not exercised
prior thereto shall be and become void and of no value. The Company may not call or redeem any portion of this Warrant without
the prior written consent of the affected Holder.

 

5.          Delivery
of Warrant Shares.

 

(a)      To
effect exercises hereunder, the Holder shall not be required to physically surrender this Warrant unless the aggregate Warrant
Shares represented by this Warrant is being exercised. Upon delivery of the Exercise Notice (in the form attached hereto) to the
Company (with the attached Warrant Shares Exercise Log) at its address for notice set forth herein and upon payment of the Exercise
Price multiplied by the number of Warrant Shares that the Holder intends to purchase hereunder, the Company shall promptly (but
in no event later than three Trading Days after the Date of Exercise (as defined herein)) issue and deliver to the Holder, a certificate
for the Warrant Shares issuable upon such exercise, which shall be free of restrictive legends. The Company shall, upon request
of the Holder and subsequent to the date on which a registration statement covering the resale of the Warrant Shares has been declared
effective by the Securities and Exchange Commission, use its reasonable best efforts to deliver Warrant Shares hereunder electronically
through the Depository Trust Corporation or another established clearing corporation performing similar functions, if available,
provided, that, the Company may, but will not be required to change its transfer agent if its current transfer agent cannot
deliver Warrant Shares electronically through the Depository Trust Corporation. A “Date of Exercise” means the
date on which the Holder shall have delivered to the Company: (i) the Exercise Notice (with the Warrant Exercise Log attached to
it), appropriately completed and duly signed and (ii) if such Holder is not utilizing the cashless exercise provisions set forth
in this Warrant, payment of the Exercise Price for the number of Warrant Shares so indicated by the Holder to be purchased.

 

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(b)    If
by the third Trading Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner
required pursuant to Section 5(a), then the Holder will have the right to rescind such exercise.

 

(c)    If
by the third Trading Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner
required pursuant to Section 5(a), and if after such third Trading Day and prior to the receipt of such Warrant Shares, the Holder
purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder
of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company
shall (1) pay in cash to the Holder the amount by which (x) the Holder's total purchase price (including brokerage commissions,
if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares
that the Company was required to deliver to the Holder in connection with the exercise at issue by (B) the closing bid price of
the Common Stock on the Date of Exercise and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent
number of Warrant Shares for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock
that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. The Holder shall
provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In.

 

(d)    The
Company's obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional, irrespective
of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery
of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination,
or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged
violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such
obligation of the Company to the Holder in connection with the issuance of Warrant Shares. Nothing herein shall limit a Holder's
right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company's failure to timely deliver certificates representing Warrant
Shares upon exercise of the Warrant as required pursuant to the terms hereof.

 

6.          Charges,
Taxes and Expenses. Issuance and delivery of Warrant Shares upon exercise of this Warrant shall be made without charge to the
Holder for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the
issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company
shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates
for Warrant Shares or Warrants in a name other than that of the Holder. The Holder shall be responsible for all other tax liability
that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

 

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7.          Replacement
of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange
and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon
receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity
(which shall not include a surety bond), if requested. Applicants for a New Warrant under such circumstances shall also comply
with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe.
If a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant
to the Company as a condition precedent to the Company’s obligation to issue the New Warrant.

 

8.          Reservation
of Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized
but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise
of this Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the exercise of this
entire Warrant, free from preemptive rights or any other contingent purchase rights of Persons other than the Holder (taking into
account the adjustments and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable
shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly
authorized, issued and fully paid and nonassessable.

 

9.          Certain
Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment
from time to time as set forth in this Section 9.

 

(a)        Stock
Dividends and Splits. If the Company, at any time after the Note is converted into Common Stock, (i) pays a stock dividend
on its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock,
(ii) subdivides outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common
Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the
numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator
shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause
(i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to
receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective
immediately after the effective date of such subdivision or combination.

 

(b)        Fundamental
Transactions. If, at any time while this Warrant is outstanding there is a Fundamental Transaction, then the Holder shall have
the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it
would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such
Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant (the “Alternate
Consideration”). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental
Transaction. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any
such successor or surviving entity to comply with the provisions of this paragraph (b) and insuring that the Warrant (or any such
replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

 

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(c)        Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to this Section 9, the number of Warrant
Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such
adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate
Exercise Price in effect immediately prior to such adjustment.

 

(d)        Calculations.
All calculations under this Section 9 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable.
The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account
of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(e)        Notice
of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its expense will promptly
compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including
a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise
of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon
which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate to the
Holder and to the Company's Transfer Agent.

 

(f)        Notice
of Corporate Events. If the Company (i) declares a dividend or any other distribution of cash, securities or other property
in respect of its Common Stock, including without limitation any granting of rights or warrants to subscribe for or purchase any
capital stock of the Company or any Subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits
stockholder approval for any Fundamental Transaction or (iii) authorizes the voluntary dissolution, liquidation or winding up of
the affairs of the Company, then the Company shall deliver to the Holder a notice describing the material terms and conditions
of such transaction (but only to the extent such disclosure would not result in the dissemination of material, non-public information
to the Holder) at least 10 calendar days prior to the applicable record or effective date on which a Person would need to hold
Common Stock in order to participate in or vote with respect to such transaction, and the Company will take all steps reasonably
necessary in order to insure that the Holder is given the practical opportunity to exercise this Warrant prior to such time so
as to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any
defect therein shall not affect the validity of the corporate action required to be described in such notice.

 

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10.          Payment
of Exercise Price. The Holder may pay the Exercise Price
in one of the following manners:

 

(a)      Cash
Exercise. The Holder may deliver immediately available funds; or

 

(b)      Cashless
Exercise. If an Exercise Notice is delivered at a time when a registration statement permitting the Holder to resell the Warrant
Shares is not then effective or the prospectus forming a part thereof is not then available to the Holder for the resale of the
Warrant Shares, then the Holder may notify the Company in an Exercise Notice of its election to utilize cashless exercise, in which
event the Company shall issue to the Holder the number of Warrant Shares determined as follows:

 

X = Y [(A-B)/A]

 

where:

 

X = the number of Warrant Shares to
be issued to the Holder.

 

Y = the number of Warrant Shares with
respect to which this Warrant is being exercised.

 

A = the average of the closing prices
for the five Trading Days immediately prior to (but not including) the Date of Exercise.

 

B = the Exercise Price.

 

For purposes of Rule 144 promulgated under
the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction
shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced,
on the date this Warrant was originally issued.

 

11.         No
Fractional Shares. No fractional shares of Warrant Shares will be issued in connection with any exercise of this Warrant. In
lieu of any fractional shares which would, otherwise be issuable, the Company shall pay cash equal to the product of such fraction
multiplied by the closing price of one Warrant Share as reported by the applicable Trading Market on the date of exercise.

 

12.         Notices.
Any and all notices or other communications or deliveries hereunder (including, without limitation, any Exercise Notice) shall
be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number specified in this Section prior to 6:30 p.m. (Los Angeles time) on a Trading
Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section on a day that is not a Trading Day or later than 6:30 p.m. (Los Angeles time) on any
Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service, or
(iv) upon actual receipt by the party to whom such notice is required to be given. The addresses for such communications shall
be: (i) if to the Company, to NeuMedia, Inc., 14242 Ventura Boulevard, 3rd Floor, Sherman Oaks, California 91423, Attn: David Mandell,
Esq., or to Facsimile No.: (818) 301-6239 (or such other address as the Company shall indicate
in writing in accordance with this Section), or (ii) if to the Holder, to the address or facsimile number appearing on the Warrant
Register or such other address or facsimile number as the Holder may provide to the Company in accordance with this Section.

 

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13.         Warrant
Agent. The Company shall serve as warrant agent under this Warrant. Upon 10 days' notice to the Holder, the Company may appoint
a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting
from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or
any new warrant agent transfers substantially all of its corporate trust or shareholders services business shall be a successor
warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession
as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder's last address as shown on the
Warrant Register.

 

14.         Miscellaneous.

 

(a)      This
Warrant shall be binding on and inure to the benefit of the parties hereto and their respective successors and assigns. Subject
to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder
any legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing signed
by the Company and the Holder and their successors and assigns.

 

(b)     All
questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed
and enforced in accordance with the internal laws of the State of California, without regard to the principles of conflicts of
law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of this Warrant
and the transactions herein contemplated (“Proceedings”) (whether brought against a party hereto or its respective
Affiliates, employees or agents) shall be commenced exclusively in the California Courts. Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the California Courts for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any
Proceeding, any claim that it is not personally subject to the jurisdiction of any California Court, or that such Proceeding has
been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and
consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Warrant and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating
to this Warrant or the transactions contemplated hereby. If either party shall commence a Proceeding to enforce any provisions
of this Warrant, then the prevailing party in such Proceeding shall be reimbursed by the other party for its attorney’s fees
and other costs and expenses incurred with the investigation, preparation and prosecution of such Proceeding.

 

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(c)      The
headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any
of the provisions hereof.

 

(d)     In
case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will
attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor,
and upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

(e)      Prior
to exercise of this Warrant, the Holder hereof shall not, by reason of being a Holder, be entitled to any rights of a stockholder
with respect to the Warrant Shares.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,

SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the
Company has caused this Warrant to be duly executed by its authorized officer as of the date first indicated above.

 

	 	NEUMEDIA, INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

Signature Page to Warrant

 

    	 

    	 

    

 

EXERCISE
NOTICE

NEUMEDIA, INC.

WARRANT DATED December 23, 2011

 

The undersigned Holder hereby irrevocably elects
to purchase _____________ shares of Common Stock pursuant to the above referenced Warrant. Capitalized terms used herein and not
otherwise defined have the respective meanings set forth in the Warrant.

 

(1)    The
undersigned Holder hereby exercises its right to purchase _________________ Warrant Shares pursuant to the Warrant.

 

(2)    The
Holder intends that payment of the Exercise Price shall be made as (check one):

 

	 	____	“Cash Exercise” under Section 10
	 	 	 
	 	____	“Cashless Exercise” under Section 10

 

(3)    If
the holder has elected a Cash Exercise, the holder shall pay the sum of $____________ to the Company in accordance with the terms
of the Warrant.

 

(4)    Pursuant
to this Exercise Notice, the Company shall deliver to the holder _______________ Warrant Shares in accordance with the terms of
the Warrant.

 

(5)    By its delivery
of this Exercise Notice, the undersigned represents and warrants to the Company that in giving effect to the exercise evidenced
hereby the Holder will not beneficially own in excess of the number of shares of Common Stock (determined in accordance with Section
13(d) of the Securities Exchange Act of 1934) permitted to be owned under Section 11 of this Warrant to which this notice relates.

 

	Dated:                                    ,        	Name of Holder:
	 	 
	 	(Print)	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)

 

    	 

    	 

    

 

Warrant Shares Exercise
Log

 

	Date	 	
        Number of Warrant

        Shares Available to be

        Exercised
	 	
        Number of Warrant Shares

        Exercised
	 	
        Number of

        Warrant Shares

        Remaining to

be Exercised

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 

    	 

    

 

NEUMEDIA,
INC.

WARRANT ORIGINALLY ISSUED DECEMBER 23, 2011

WARRANT NO. 1

 

FORM
OF ASSIGNMENT

 

[To be completed and signed
only upon transfer of Warrant]

 

FOR VALUE RECEIVED, the
undersigned hereby sells, assigns and transfers unto ________________________________ the right represented by the above-captioned
Warrant to purchase ____________ shares of Common Stock to which such Warrant relates and appoints ________________ attorney to
transfer said right on the books of the Company with full power of substitution in the premises.

 

Dated:    _______________,
____

 

	 	 	 
	 	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)
	 	 	 
	 	 	 
	 	 	Address of Transferee
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	In the presence of:December 23, 2011

 

This letter agreement is executed and delivered
in connection with that certain Convertible Note Financing Binding Term Sheet, dated December 23, 2011 (the “Term Sheet”),
by and between NeuMedia, Inc., a Delaware corporation (“Issuer”), and Adage Capital Management L.P. (“Investor”),
pursuant to which, among other things, Issuer has agreed to provide certain registration and participation rights in accordance
with the terms and conditions set forth herein. Capitalized terms used but not otherwise defined herein shall have their respective
meanings set forth in the Term Sheet.

 

The undersigned hereby agree as follows:

 

		1.	Within one hundred twenty (120) calendar days after the date the Note is converted, Issuer shall
use its best efforts to file, or cause to be filed, one Registration Statement (the “Investor Registration Statement”)
on Form S-3, or if Issuer is not then eligible to use Form S-3 in connection with such transaction, on Form S-1 (or a similar form
that may be promulgated in the future), covering all of the shares of Common Stock underlying the Note and the Warrant. After the
Investor Registration Statement has been filed, Issuer shall use its best efforts to cause the Investor Registration Statement
to become effective as soon as possible thereafter. Notwithstanding the foregoing, Issuer shall be permitted to postpone the filing
of any Investor Registration Statement pursuant to this Section 1 if Issuer furnishes to Investor a certificate signed by the Chief
Executive Officer of Issuer stating that in the good faith judgment of the Board of Directors, it would be materially detrimental
to Issuer or its stockholders for the Investor Registration Statement to be filed and/or effected at such time; provided, that
Issuer shall use its best efforts to file and make effective the Investor Registration Statement promptly thereafter.

 

		2.	For a period of two (2) years following the effectiveness of the Investor Registration Statement,
in the event Issuer proposes to issue any equity securities, Issuer shall give Investor written notice of its intention, describing
such equity securities, the price of such equity securities, the number of equity securities to be offered, and the terms and conditions
upon which Issuer proposes to issue the same. Subject to applicable securities laws, Investor shall have ten (10) calendar days
from the giving of such notice, to participate in such offering, on a pro rata basis in accordance with Investor’s equity
ownership interest in Issuer at such time on a fully-diluted basis assuming conversion of the Note and the Warrant, upon the terms
and conditions specified in the notice, by giving written notice to Issuer and stating therein the quantity of equity securities
Investor desires to purchase. Notwithstanding the foregoing, Issuer shall not be required to provide such notice and Investor shall
not have the right to participate with respect to an offering consisting of the following securities: (a) securities issued or
to be issued after the date hereof to employees, officers or directors of, or consultants or advisors to, Issuer or any subsidiary
approved by the Board of Directors; (b) securities issued or issuable pursuant to any rights or agreements, options, warrants or
convertible securities outstanding as of the date of this letter agreement; (c) securities issued for consideration other than
cash pursuant to a merger, consolidation, acquisition, strategic alliance or other business combination approved by the Board of
Directors, (d) securities issued in connection with any stock split, stock dividend or recapitalization by Issuer; (e) securities
issued pursuant to any equipment loan or leasing arrangement, real property leasing arrangement, or debt financing from a bank
or similar financial or lending institution approved by the Board of Directors, (f) securities issued in connection with strategic
transactions involving Issuer and other entities, including, without limitation (i) joint ventures, manufacturing, marketing or
distribution arrangements, or (ii) technology transfer or development arrangements; provided that (1) the issuance of such securities
has been approved the Board of Directors, and (2) such transaction is not primarily for equity financing purposes (as determined
in the sole, good faith discretion of the Board of Directors); and (g) securities issued by Issuer pursuant to the terms of the
Term Sheet.

 

    	 

    	 

    

 

		3.	Each party to this letter agreement agrees to perform any further acts and to execute and deliver
any documents that may be reasonably necessary to carry out the provisions of this letter agreement.
	 	 	 

		4.	This letter agreement shall be binding on the parties hereto and their respective successors and
assigns. This letter agreement will be governed by and construed in accordance with the laws of the State of California. Any disputes
arising out of or relating to this letter agreement shall be heard exclusively in state or federal courts located in California,
each party waiving any and all objections to such venue. This letter agreement and the Term Sheet sets forth the entire understanding
of the parties with respect to the subject matter hereof. This letter agreement shall not be amended, or any provision hereof waived,
except in a writing signed by each party hereto. This letter agreement may be executed in any number of original, facsimile or
other electronic counterparts.

 

In Witness Whereof, the
parties hereto have executed this letter agreement as of the date first above written.

 

	Issuer:	 	Investor:
	 	 	 
	NEUMEDIA, INC.	 	ADAGE CAPITAL MANAGEMENT L.P.
	 	 	 
	By:	 	 	By:	 
	Name:	 	 	Name:	 
	Title:	 	 	Title:	 

  

    	2

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