Document:

Exhibit 10.1

 

DEBENTURE EXTENSION AGREEMENT

 

THIS
DEBENTURE EXTENSION AGREEMENT (hereinafter, this “Agreement”) made this 25th day of May, 2012
by and among:

 

YA
GLOBAL INVESTMENTS, L.P., f/k/a Cornell Capital Partners, LP
(the “Lender”), a Cayman Island exempt limited partnership with offices located
at 101 Hudson Street Suite 3700, Jersey City, New Jersey 07302; and

 

NEOMEDIA
TECHNOLOGIES, INC. (the “Borrower”), a Delaware corporation with its principal office located
at 100 West Arapahoe Avenue, Suite 9, Boulder, Colorado 80302.

 

Background

 

Reference
is made to certain secured convertible debentures issued by the Company to the Investor listed on Schedule “1”
attached hereto and incorporated herein by reference (collectively, the “Debentures”).

 

The
Borrower has requested that the Lender extend the maturity date of the Debentures until August 1, 2013, and the Investor
has agreed to do so, but only upon the terms and conditions set forth herein.

 

Accordingly,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed by and
between the Company and the Investor as follows:

 

Capitalized
terms used herein and not otherwise defined herein shall have the meanings set forth in the Debentures.

 

Acknowledgment of Indebtedness

 

1.The
Borrower hereby acknowledges and agrees that it is liable to the Lender as follows (all amounts in USD):

 

	a	 	Owed under the CCP-1 Debenture as of:	 	May 21, 2012	 	 		 
	 	 	Principal	 	 	 	 	3,730,250.00	 
	 	 	Interest	 	 	 	 	2,492,313.00	 
	 	 	Total	 	 	 	 	6,222,563.00	 
	 	 	 	 	 	 	 	 	 
	b	 	Owed under the CCP-2 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	2,250,000.00	 
	 	 	Interest	 	 	 	 	1,285,093.67	 
	 	 	Total	 	 	 	 	3,535,093.67	 
	 	 	 	 	 	 	 	 	 

    	1

    	 

    

 

	c	 	Owed under the NEOM-4-1 Debenture as of:	 	May 21, 2012	 	 		 
	 	 	Principal	 	 	 	 	5,596,171.00	 
	 	 	Interest	 	 	 	 	2,689,618.50	 
	 	 	Total	 	 	 	 	8,285,789.50	 
	 	 	 	 	 	 	 	 	 
	d	 	Owed under the NEOM-1-1 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	1,440,000.00	 
	 	 	Interest	 	 	 	 	1,176,922.47	 
	 	 	Total	 	 	 	 	2,616,922.47	 
	 	 	 	 	 	 	 	 	 
	e	 	Owed under the NEOM-2008-1 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	390,000.00	 
	 	 	Interest	 	 	 	 	244,237.50	 
	 	 	Total	 	 	 	 	634,237.50	 
	 	 	 	 	 	 	 	 	 
	f	 	Owed under the NEOM-2008-2 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	500,000.00	 
	 	 	Interest	 	 	 	 	305,625.00	 
	 	 	Total	 	 	 	 	805,625.00	 
	 	 	 	 	 	 	 	 	 
	g	 	Owed under the NEOM-2008-3 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	790,000.00	 
	 	 	Interest	 	 	 	 	478,608.33	 
	 	 	Total	 	 	 	 	1,268,608.33	 
	 	 	 	 	 	 	 	 	 
	h	 	Owed under the NEOM-2008-4 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	137,750.00	 
	 	 	Interest	 	 	 	 	81,042.92	 
	 	 	Total	 	 	 	 	218,792.92	 
	 	 	 	 	 	 	 	 	 
	i	 	Owed under the NEOM-9-1 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	2,325,000.00	 
	 	 	Interest	 	 	 	 	1,242,250.68	 
	 	 	Total	 	 	 	 	3,567,250.68	 
	 	 	 	 	 	 	 	 	 

    	2

    	 

    

 

	j	 	Owed under the NEOM-9-2 Debenture as of:	 	May 21, 2012	 	 		 
	 	 	Principal	 	 	 	 	2,325,000.00	 
	 	 	Interest	 	 	 	 	1,161,098.63	 
	 	 	Total	 	 	 	 	3,486,098.63	 
	 	 	 	 	 	 	 	 	 
	k	 	Owed under the NEOM-9-4 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	53,036.80	 
	 	 	Interest	 	 	 	 	129,044.61	 
	 	 	Total	 	 	 	 	182,081.41	 
	 	 	 	 	 	 	 	 	 
	l	 	Owed under the NEOM-9-5 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	715,000.00	 
	 	 	Interest	 	 	 	 	296,734.79	 
	 	 	Total	 	 	 	 	1,011,734.79	 
	 	 	 	 	 	 	 	 	 
	m	 	Owed under the NEOM-9-6 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	535,000.00	 
	 	 	Interest	 	 	 	 	213,824.11	 
	 	 	Total	 	 	 	 	748,824.11	 
	 	 	 	 	 	 	 	 	 
	n	 	Owed under the NEOM-9-7 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	475,000.00	 
	 	 	Interest	 	 	 	 	184,378.08	 
	 	 	Total	 	 	 	 	659,378.08	 
	 	 	 	 	 	 	 	 	 
	o	 	Owed under the NEOM-10-1 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	2,006,137.00	 
	 	 	Interest	 	 	 	 	558,640.45	 
	 	 	Total	 	 	 	 	2,564,777.45	 
	 	 	 	 	 	 	 	 	 
	p	 	Owed under the NEOM-10-2 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	550,000.00	 
	 	 	Interest	 	 	 	 	136,701.37	 
	 	 	Total	 	 	 	 	686,701.37	 
	 	 	 	 	 	 	 	 	 
	q	 	Owed under the NEOM-10-3 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	475,000.00	 
	 	 	Interest	 	 	 	 	109,497.26	 
	 	 	Total	 	 	 	 	584,497.26	 
	 	 	 	 	 	 	 	 	 

    	3

    	 

    

 

	r	 	Owed under the NEOM-10-4 Debenture as of:	 	May 21, 2012	 	 		 
	 	 	Principal	 	 	 	 	400,000.00	 
	 	 	Interest	 	 	 	 	87,758.90	 
	 	 	Total	 	 	 	 	487,758.90	 
	 	 	 	 	 	 	 	 	 
	s	 	Owed under the NEOM-10-5 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	450,000.00	 
	 	 	Interest	 	 	 	 	90,443.84	 
	 	 	Total	 	 	 	 	540,443.84	 
	 	 	 	 	 	 	 	 	 
	t	 	Owed under the NEOM-11-1 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	450,000.00	 
	 	 	Interest	 	 	 	 	85,956.16	 
	 	 	Total	 	 	 	 	535,956.16	 
	 	 	 	 	 	 	 	 	 
	u	 	Owed under the NEOM-11-2 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	650,000.00	 
	 	 	Interest	 	 	 	 	116,928.77	 
	 	 	Total	 	 	 	 	766,928.77	 
	 	 	 	 	 	 	 	 	 
	v	 	Owed under the NEOM-11-3 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	450,000.00	 
	 	 	Interest	 	 	 	 	75,600.00	 
	 	 	Total	 	 	 	 	525,600.00	 
	 	 	 	 	 	 	 	 	 
	w	 	Owed under the NEOM-11-4 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	188,484.00	 
	 	 	Interest	 	 	 	 	68,278.70	 
	 	 	Total	 	 	 	 	256,762.70	 
	 	 	 	 	 	 	 	 	 
	x	 	Owed under the NEOM-11-5 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	37,577.00	 
	 	 	Interest	 	 	 	 	56,726.56	 
	 	 	Total	 	 	 	 	94,303.56	 
	 	 	 	 	 	 	 	 	 

    	4

    	 

    

 

	y	 	Owed under the NEOM-11-6 Debenture as of:	 	May 21, 2012	 	 		 
	 	 	Principal	 	 	 	 	25,000.00	 
	 	 	Interest	 	 	 	 	27,040.30	 
	 	 	Total	 	 	 	 	52,040.30	 
	 	 	 	 	 	 	 	 	 
	Z	 	Owed under the NEOM-11-8 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	0.00	 
	 	 	Interest	 	 	 	 	30,263.94	 
	 	 	Total	 	 	 	 	30,263.94	 
	 	 	 	 	 	 	 	 	 
	aa	 	Owed under the NEOM-11-9 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	0.00	 
	 	 	Interest	 	 	 	 	32,343.68	 
	 	 	Total	 	 	 	 	32,343.68	 
	 	 	 	 	 	 	 	 	 
	bb	 	Owed under the NEOM-11-10 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	450,000.00	 
	 	 	Interest	 	 	 	 	36,073.97	 
	 	 	Total	 	 	 	 	486,073.97	 
	 	 	 	 	 	 	 	 	 
	cc	 	Owed under the NEOM-11-11 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	325,000.00	 
	 	 	Interest	 	 	 	 	20,693.15	 
	 	 	Total	 	 	 	 	345,693.15	 
	 	 	 	 	 	 	 	 	 
	dd	 	Owed under the NEOM-12-01 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	400,000.00	 
	 	 	Interest	 	 	 	 	20,098.63	 
	 	 	Total	 	 	 	 	420,098.63	 
	 	 	 	 	 	 	 	 	 
	ee	 	Owed under the NEOM-12-02 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	450,000.00	 
	 	 	Interest	 	 	 	 	18,295.89	 
	 	 	Total	 	 	 	 	468,295.89	 
	 	 	 	 	 	 	 	 	 
	ff	 	Owed under the NEOM-12-03 Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	450,000.00	 
	 	 	Interest	 	 	 	 	9,838.36	 
	 	 	Total	 	 	 	 	459,838.36	 
	 	 	 	 	 	 	 	 	 

    	5

    	 

    

 

	gg	 	Owed under the NEOM-12-04 Debenture as of:	 	May 21, 2012	 	 		 
	 	 	Principal	 	 	 	 	450,000.00	 
	 	 	Interest	 	 	 	 	4,487.67	 
	 	 	Total	 	 	 	 	454,487.67	 
	 	 	 	 	 	 	 	 	 
	hh	 	Owed under the NEOM-CFL Debenture as of:	 	May 21, 2012	 	 	 	 
	 	 	Principal	 	 	 	 	2,607.00	 
	 	 	Interest	 	 	 	 	348.54	 
	 	 	Total	 	 	 	 	2,955.54	 
	 	 	 	 	 	 	 	 	 
	 	 	TOTAL	 	 	 	$	43,038,821.24	 
	 	 	 	 	 	 	 	 	 

 

 

		ii.	For
                                                                                                               all interest accruing
                                                                                                               from and after
                                                                                                               May 21, 2012 due
                                                                                                               under the Debentures,
                                                                                                               and for all fees,
                                                                                                               late charges, redemption
                                                                                                               premiums, liquidated
                                                                                                               damages, costs,
                                                                                                               expenses, and costs
                                                                                                               of collection (including
                                                                                                               attorneys’
                                                                                                               fees and expenses)
                                                                                                               and other amounts,
                                                                                                               heretofore or hereafter
                                                                                                               accrued or coming
                                                                                                               due or incurred
                                                                                                               by the Lender in
                                                                                                               connection with
                                                                                                               the protection,
                                                                                                               preservation, or
                                                                                                               enforcement of
                                                                                                               its rights and
                                                                                                               remedies under
                                                                                                               the Debentures
                                                                                                               and all documents,
                                                                                                               instruments, and
                                                                                                               agreements executed
                                                                                                               in connection therewith
                                                                                                               or related thereto
                                                                                                               (collectively,
                                                                                                               the “Financing
                                                                                                               Documents”)
                                                                                                               (including, without
                                                                                                               limitation, the
                                                                                                               preparation and
                                                                                                               negotiation of
                                                                                                               this Agreement).

 

Hereinafter, all amounts due
as set forth in this Paragraph 1, and all amounts hereafter owed or due under the Financing Documents shall be referred to collectively
as the “Obligations.”

 

Waiver of Claims

 

		2.	The
                                                                                                                          Borrower,
                                                                                                                          for
                                                                                                                          itself
                                                                                                                          and
                                                                                                                          on behalf
                                                                                                                          its
                                                                                                                          former
                                                                                                                          and/or
                                                                                                                          current
                                                                                                                          subsidiaries
                                                                                                                          that
                                                                                                                          are
                                                                                                                          party
                                                                                                                          to any
                                                                                                                          of the
                                                                                                                          Financing
                                                                                                                          Documents
                                                                                                                          (collectively
                                                                                                                          along
                                                                                                                          with
                                                                                                                          the
                                                                                                                          Borrower,
                                                                                                                          the
                                                                                                                          “Obligors”)
                                                                                                                          hereby
                                                                                                                          acknowledges
                                                                                                                          and
                                                                                                                          agrees
                                                                                                                          that
                                                                                                                          none
                                                                                                                          of the
                                                                                                                          Obligors
                                                                                                                          have
                                                                                                                          any
                                                                                                                          offsets,
                                                                                                                          defenses,
                                                                                                                          claims,
                                                                                                                          or counterclaims
                                                                                                                          against
                                                                                                                          the
                                                                                                                          Lender,
                                                                                                                          its
                                                                                                                          general
                                                                                                                          partner,
                                                                                                                          and
                                                                                                                          its
                                                                                                                          investment
                                                                                                                          manager,
                                                                                                                          and
                                                                                                                          each
                                                                                                                          of their
                                                                                                                          respective
                                                                                                                          agents,
                                                                                                                          servants,
                                                                                                                          attorneys,
                                                                                                                          advisors,
                                                                                                                          officers,
                                                                                                                          directors,
                                                                                                                          employees,
                                                                                                                          affiliates,
                                                                                                                          partners,
                                                                                                                          members,
                                                                                                                          managers,
                                                                                                                          predecessors,
                                                                                                                          successors,
                                                                                                                          and
                                                                                                                          assigns
                                                                                                                          (singly
                                                                                                                          and
                                                                                                                          collectively,
                                                                                                                          as the
                                                                                                                          “Released
                                                                                                                          Parties”),
                                                                                                                          with
                                                                                                                          respect
                                                                                                                          to the
                                                                                                                          Obligations,
                                                                                                                          the
                                                                                                                          Financing
                                                                                                                          Documents,
                                                                                                                          the
                                                                                                                          transactions
                                                                                                                          set
                                                                                                                          forth
                                                                                                                          or otherwise
                                                                                                                          contemplated
                                                                                                                          in this
                                                                                                                          Agreement,
                                                                                                                          or otherwise,
                                                                                                                          and
                                                                                                                          that
                                                                                                                          if the
                                                                                                                          Obligors
                                                                                                                          now
                                                                                                                          have,
                                                                                                                          or ever
                                                                                                                          did
                                                                                                                          have,
                                                                                                                          any
                                                                                                                          offsets,
                                                                                                                          defenses,
                                                                                                                          claims,
                                                                                                                          or counterclaims
                                                                                                                          against
                                                                                                                          any
                                                                                                                          of the
                                                                                                                          Released
                                                                                                                          Parties,
                                                                                                                          whether
                                                                                                                          known
                                                                                                                          or unknown,
                                                                                                                          at law
                                                                                                                          or in
                                                                                                                          equity,
                                                                                                                          from
                                                                                                                          the
                                                                                                                          beginning
                                                                                                                          of the
                                                                                                                          world
                                                                                                                          through
                                                                                                                          this
                                                                                                                          date
                                                                                                                          and
                                                                                                                          through
                                                                                                                          the
                                                                                                                          time
                                                                                                                          of execution
                                                                                                                          of this
                                                                                                                          Agreement,
                                                                                                                          all
                                                                                                                          of them
                                                                                                                          are
                                                                                                                          hereby
                                                                                                                          expressly
                                                                                                                          WAIVED,
                                                                                                                          and
                                                                                                                          the
                                                                                                                          Obligors
                                                                                                                          each
                                                                                                                          hereby
                                                                                                                          RELEASE
                                                                                                                          each
                                                                                                                          of the
                                                                                                                          Released
                                                                                                                          Parties
                                                                                                                          from
                                                                                                                          any
                                                                                                                          and
                                                                                                                          all
                                                                                                                          liability
                                                                                                                          therefor.

 

    	6

    	 

    

 

 

 

 

Extension of Maturity Date

 

		3.	The
                                                                                                                          “Maturity
                                                                                                                          Date”
                                                                                                                          of each
                                                                                                                          of the
                                                                                                                          Debentures1
                                                                                                                          is
                                                                                                                          hereby
                                                                                                                          extended
                                                                                                                          to August
                                                                                                                          1, 2013.
                                                                                                                          The
                                                                                                                          Borrower
                                                                                                                          acknowledges
                                                                                                                          and
                                                                                                                          agrees
                                                                                                                          that
                                                                                                                          this
                                                                                                                          extension
                                                                                                                          (a)
                                                                                                                          is a
                                                                                                                          one-time
                                                                                                                          extension
                                                                                                                          for
                                                                                                                          the
                                                                                                                          specific
                                                                                                                          period
                                                                                                                          indicated,
                                                                                                                          and
                                                                                                                          (b)
                                                                                                                          shall
                                                                                                                          not
                                                                                                                          be deemed
                                                                                                                          to constitute
                                                                                                                          (i)
                                                                                                                          an agreement
                                                                                                                          to provide
                                                                                                                          any
                                                                                                                          further
                                                                                                                          extension
                                                                                                                          of the
                                                                                                                          Maturity
                                                                                                                          Dates
                                                                                                                          of the
                                                                                                                          Debentures,
                                                                                                                          or (ii)
                                                                                                                          a waiver
                                                                                                                          of any
                                                                                                                          existing
                                                                                                                          Events
                                                                                                                          of Default,
                                                                                                                          whether
                                                                                                                          known
                                                                                                                          or unknown,
                                                                                                                          or of
                                                                                                                          any
                                                                                                                          the
                                                                                                                          provisions
                                                                                                                          of the
                                                                                                                          Debentures
                                                                                                                          or of
                                                                                                                          the
                                                                                                                          other
                                                                                                                          Financing
                                                                                                                          Documents.

 

Repayments

 

		4.	Repayments.
                                                                                                                          For
                                                                                                                          so long
                                                                                                                          as any
                                                                                                                          of the
                                                                                                                          Debentures
                                                                                                                          remain
                                                                                                                          outstanding,
                                                                                                                          the
                                                                                                                          Borrower
                                                                                                                          agrees
                                                                                                                          that
                                                                                                                          the
                                                                                                                          Lender
                                                                                                                          shall
                                                                                                                          have
                                                                                                                          the
                                                                                                                          right
                                                                                                                          to be
                                                                                                                          repaid
                                                                                                                          out
                                                                                                                          of a
                                                                                                                          portion
                                                                                                                          of proceeds
                                                                                                                          received
                                                                                                                          by the
                                                                                                                          Borrower
                                                                                                                          from
                                                                                                                          any
                                                                                                                          third
                                                                                                                          parties
                                                                                                                          derived
                                                                                                                          from
                                                                                                                          any
                                                                                                                          of its
                                                                                                                          patents,
                                                                                                                          whether
                                                                                                                          as a
                                                                                                                          result
                                                                                                                          of a
                                                                                                                          license
                                                                                                                          of its
                                                                                                                          technology,
                                                                                                                          prosecution
                                                                                                                          of its
                                                                                                                          patents,
                                                                                                                          or otherwise,
                                                                                                                          in accordance
                                                                                                                          with
                                                                                                                          the
                                                                                                                          terms
                                                                                                                          of repayment
                                                                                                                          set
                                                                                                                          forth
                                                                                                                          in Schedule
                                                                                                                          2.

  

Interest Rate

 

		5.	Interest
                                                                                                                          Rate.
                                                                                                                          From
                                                                                                                          and
                                                                                                                          after
                                                                                                                          May
                                                                                                                          23,
                                                                                                                          2012
                                                                                                                          interest
                                                                                                                          on the
                                                                                                                          outstanding
                                                                                                                          principal
                                                                                                                          balance
                                                                                                                          of each
                                                                                                                          Debenture
                                                                                                                          shall
                                                                                                                          accrue
                                                                                                                          at an
                                                                                                                          annual
                                                                                                                          rate
                                                                                                                          equal
                                                                                                                          to 9.5%
                                                                                                                          and
                                                                                                                          the
                                                                                                                          term
                                                                                                                          “Interest
                                                                                                                          Rate”
                                                                                                                          as used
                                                                                                                          in some
                                                                                                                          of the
                                                                                                                          Debentures
                                                                                                                          shall
                                                                                                                          be construed
                                                                                                                          accordingly.
                                                                                                                          The
                                                                                                                          Borrower
                                                                                                                          acknowledges
                                                                                                                          and
                                                                                                                          agrees
                                                                                                                          that
                                                                                                                          this
                                                                                                                          change
                                                                                                                          in the
                                                                                                                          Interest
                                                                                                                          Rate
                                                                                                                          applies
                                                                                                                          from
                                                                                                                          May
                                                                                                                          23,
                                                                                                                          2012
                                                                                                                          forward,
                                                                                                                          does
                                                                                                                          not
                                                                                                                          apply
                                                                                                                          retro-actively
                                                                                                                          to any
                                                                                                                          of the
                                                                                                                          Debentures,
                                                                                                                          and
                                                                                                                          that
                                                                                                                          all
                                                                                                                          amounts
                                                                                                                          of accrued
                                                                                                                          and
                                                                                                                          unpaid
                                                                                                                          interest
                                                                                                                          set
                                                                                                                          forth
                                                                                                                          in Section
                                                                                                                          1 hereof
                                                                                                                          are
                                                                                                                          based
                                                                                                                          on the
                                                                                                                          interest
                                                                                                                          rates
                                                                                                                          applicable
                                                                                                                          to each
                                                                                                                          Debenture
                                                                                                                          at all
                                                                                                                          times
                                                                                                                          prior
                                                                                                                          to May
                                                                                                                          23,
                                                                                                                          2012.

  

		6.	Ratification.
                                                                                                                                  The
                                                                                                                                  Borrower
                                                                                                                                  hereby
                                                                                                                                  acknowledges,
                                                                                                                                  confirms,
                                                                                                                                  and
                                                                                                                                  agrees
                                                                                                                                  that,
                                                                                                                                  (a)
                                                                                                                                  except
                                                                                                                                  as
                                                                                                                                  specifically
                                                                                                                                  modified
                                                                                                                                  herein,
                                                                                                                                  the
                                                                                                                                  Debentures
                                                                                                                                  and
                                                                                                                                  all
                                                                                                                                  other
                                                                                                                                  Financing
                                                                                                                                  Documents
                                                                                                                                  remain
                                                                                                                                  in
                                                                                                                                  full
                                                                                                                                  force
                                                                                                                                  and
                                                                                                                                  effect,
                                                                                                                                  and
                                                                                                                                  confirm
                                                                                                                                  and
                                                                                                                                  ratify
                                                                                                                                  each
                                                                                                                                  of
                                                                                                                                  the
                                                                                                                                  terms
                                                                                                                                  thereof
                                                                                                                                  and
                                                                                                                                  (b)
                                                                                                                                  all
                                                                                                                                  amounts
                                                                                                                                  outstanding
                                                                                                                                  under
                                                                                                                                  the
                                                                                                                                  Debentures
                                                                                                                                  are
                                                                                                                                  unconditionally
                                                                                                                                  owing
                                                                                                                                  by
                                                                                                                                  the
                                                                                                                                  Borrower
                                                                                                                                  to
                                                                                                                                  the
                                                                                                                                  Lender,
                                                                                                                                  without
                                                                                                                                  offset,
                                                                                                                                  defense
                                                                                                                                  or
                                                                                                                                  counterclaim
                                                                                                                                  of
                                                                                                                                  any
                                                                                                                                  kind,
                                                                                                                                  nature
                                                                                                                                  or
                                                                                                                                  description
                                                                                                                                  whatsoever.

 

[Remainder of Page Intentionally Left
Blank]

 

[1]
Except for the NEOM-CFL Debenture which has a Maturity Date of March 1, 2014 and shall remain unchanged.

    	7

    	 

    

 

IN WITNESS WHEREOF,
this Debenture Extension Agreement has been executed as of the date first set forth above.

 

 

	YA GLOBAL INVESTMENTS, L.P.,	 	NEOMEDIA TECHNOLOGIES, INC.
	By: 	Yorkville Advisors, LLC,

its
Investment Manager

	 	 
	 	 	 	  	
	By:	/s/	 	By:	/s/ 
	Name:	David Gonzales 	 	Name:	Laura Marriott
	Title: 	Managing Member 	 	Title: 	CEO 

 

 

 

    	8English Translation 

of 

Labor Contract

 

This Labor Contract (this “Contract”)
is entered into in Hanzhong, Shaanxi on May 28, 2012 by and between:

 

Party A: Shaanxi Guangsha Investment Development
Group Co., Ltd.

Address: Hanzhong City, Shaanxi Province

Legal Representative: Xiaojun Zhu, Chairman

 

Party B: Wei Shen

Address: 5953 Shelford terrace, Mississauga,
Ontario, Canada

 

ID Card/Passport Number£QJ013424

 

		Chapter 1	General Provisions

 

		1.	Pursuant to the Labor Law of the People’s Republic
of China, the Labor Contract Law of the People’s Republic of China and other relevant provisions, the Parties hereto have,
after mutual discussions and consultations and careful consideration and adequate communications and understanding, reached the
following terms and conditions:

 

		Chapter 2	Term

 

		2.	This Contract has a fixed term, which is one year commencing
from May 28, 2012 (hereinafter, the “Initiation Date”) and ending on May 27, 2013.

 

		3.	The probationary period is three months, commencing from
the Initiation Date and ending on May 28, 2012. During the probationary period, if Party B fails to meet Party A’s work
requirements, Party A shall have the right to terminate the Contract at any time. Party A is responsible for evaluate Party B’s
performance and capabilities in order to make sure whether he is competent or not and eventually decide whether to terminate this
Contract during the probationary period or not. After the Contract is terminated pursuant to this provision, neither Party shall
be obligated to the other any longer, unless specifically agreed otherwise and except for the provisions regarding the confidentiality
and non-compete agreement in Articles 20 and 21 hereof.

 

		4.	Upon expiration of the Contract, the Parties may agree
on the renewal and enter into a new labor contract.

  

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		Chapter 3	Scope of Work

 

		5.	According to Party A’s work requirements, Party
B agrees to assume the position of Chief Financial Officer (CFO) (to carry out works relating to the listed company) . With respect
to Party B’s job duties, work assignments, responsibility goals, job disciplines, relevant management policies, etc., the
rules formulated by Party A for that job and other relevant provisions shall apply, including but not limited to:

 

		5.1.	To formulate and implement the relevant policies, procedures
and strategic goals, so as to attract new capital and ensure the realization of the Company’s financing goals;

 

		5.2.	To carry out strategic acquisitions, funding management,
public offerings, etc. according to the Board’s requirements;

 

		5.3.	To be responsible for roadshows and liaison works for
the Company’s investors and to participate in investor meetings and conferences as may be required;

 

		5.4.	To establish and maintain a strong financial reporting
system and a strict internal control system;

 

		5.5.	To supervise financial activities so as to ensure the
realization of the Company’s business goals;

 

		5.6.	To be responsible for development
and submission of financial reports in accordance with U.S. Securities and Exchange Commission requirements
and for liaison with the Company’s auditors and securities attorney regarding filing and reporting requirements;

 

		5.7.	To establish a mechanism that can accurately resolve
financial issues;

 

		5.8.	To establish a mechanism that can lower costs and improve
work efficiency;

 

		5.9.	To participate in the Company’s financial plans;

 

		5.10.	To participate in the Company’s business and strategic
development plans;

 

		5.11.	To provide comments to the executive management team
and the Board from financial perspectives;

 

		5.12.	To prepare for annual audits;

 

		5.13.	To be responsible for completing the organization and
accounting works for annual audits;

 

		5.14.	To develop corporate governance policies and procedures;

 

		5.15.	To prepare consolidated financial statements including
footnotes

 

		5.16.	to prepare MD&A for inclusion in SEC filings;

 

		5.17.	To prepare forecasts and budgets as may be required;

 

		5.18.	To sign off on financial statements and regulatory filings;

 

		5.19.	To meet with company management and visit the Company’s
facilities as may be required;

 

		5.20.	To take phone calls from the financial community and
investors;

 

		5.21.	To prepare and file any appropriate state and Federal
withholding and tax filings; and

 

		5.22.	Other duties to be specified by the Board and other activities
appropriate to the responsibilities of being the Chief Financial Officer

 

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		6.	Both Parties agree that Party A shall have the right
to make adjustments to Party B’s job type, position, title, job duties and place to work at, based on its business needs,
Party B’s capabilities or job performance or other actual situations and the principles of good faith and reasonableness.

 

		Chapter 4	Party B’s Obligations

 

		7.	Party B agrees that, in addition to the obligations and
responsibilities set forth herein, he shall also:

 

		7.1.	Within the specified work hours, contribute his time,
energy and skills exclusively in fulfilling the obligations set forth herein and effectively performing his duties, in order to
exert his best efforts to ensure the successful completion of Party’s assignments; and

 

		7.2.	Comply with the provisions of this Contract, Party A’s
internal rules and policies and relevant laws and regulations, fulfill his duties to Party A, and not to engage in any activities
that harm Party A’s interests or to abuse his position or duties at Party A to directly or indirectly seek personal benefits.

 

		Chapter 5	Work Hours, Labor Protection and Work Conditions

 

		8.	Party B’s work hours shall be mainly for the purpose
of meeting the needs of the listed company, for which Party A is obligated to coordinate as the case may be.

 

		9.	Party A shall provide Party B with proper work conditions
and facilities and labor protection up to the State’s standards. Party B shall comply with Party A’s labor safety
policies.

 

		10.	Party A is responsible for arranging education and trainings
to Party B with respect to professional skills, labor safety and hygiene policies and the Company’s articles of association.

 

		11.	Party A shall reimburse Party B’s business travel,
entertainment and other expenses incurred for work purposes, for which Party B is obligated to completely provide supporting voucher
documents.

 

		Chapter 6	Remunerations

 

		12.	Party B’s remunerations in cash in the amount of
RMB900,000 Yuan include monthly cash payments and the bonus portion.

 

		12.1.	Monthly payments. Party A will deposit the RMB 60,000
due for each month on the first day of the next month to a personal account designated by Party B in PRC.

 

		12.2.	Bonus. Party A shall pay to Party B an annual bonus in
the amount of RMB180,000, payable at the end of the term of this Contract, subject to Party A’s Compensation Committee’s
satisfaction of Party B’s annual performance review.

 

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		12.3.	Stock. Party A shall cause 100,000 restricted shares
of China HGS Real Estate, Inc. to be issued to Party B upon expiration of this contract, vesting in full immediately, based upon
Party B’s continuing employment with Party A.

 

		Chapter 7	Insurance, Benefits and Holidays

 

		13.	Party A shall buy the public company directors and officers
insurance for Party B in the amount of US$ 2 million.

 

		14.	Party B shall be entitled to the public holidays and
statutory holidays.

 

		Chapter 8	Labor Disciplines

 

		15.	Party B shall comply with Party A’s lawfully formulated
labor disciplines and the Company’s articles of association, strictly abide by Party A’s instructions and decisions,
safeguard all the assets of Party A and observe professional ethics.

 

		16.	If Party B violates any relevant laws, labor disciplines
or the Company’s articles of association or Code of Conduct (a copy of which Code of Conduct has been provided to Party
B and receipt of which is hereby acknowledged) which results in any economic losses to Party A, Party A may impose penalties on
Party A pursuant to the relevant provisions.

 

		17.	In the event of any economic losses caused to Party A
due to Party B’s violation of relevant laws, labor disciplines or the Company’s articles of association, Party A has
the right to claim compensation from Party B for the losses.

 

		18.	Party A has the right to make reasonable modifications
to the labor disciplines and the Company’s articles of association according to its business needs, provided that Party
A shall inform Party B in the forms regarded as proper by Party A, which forms include but not limited to notification, public
announcement, e-mail and memorandum.

 

		19.	Party B’s any concurrent position at any other
enterprise or organization during the period of his employment with Party A shall be subject to Party A’s acceptance. All
service inventions, creations, developments, designs, renovations, production results made by Party B during the period of his
employment shall be owned by Party A, and all intellectual property rights obtained therefrom, including but not limited to patent
rights, copyrights and non-patent technologies, shall be owned by Party A.

 

    	4 of 8

    	 

    
 

		Chapter 9	Confidentiality Obligations

 

		20.	Party B shall keep confidential Party A’s proprietary
information and confidential information concerning Party A and its subsidiaries and affiliates and its and their respective businesses
including without limitation, confidential information regarding suppliers, customers, products, and marketing and pricing data,
as long as such information is not publicly disclosed, except as required either by law or by a court of competent jurisdiction,
and shall comply with Party A’s relevant confidentiality policies. Unless as required either by law or by a court of competent
jurisdiction or subject to prior written consent from Party A, Party B shall not use, or disclose to any third party, any materials
or information of Party A.

 

		21.	Non-compete. During the term of Party B’s engagement
hereunder and for a term of one year following termination, Party B shall not initiate, directly or indirectly, on his own behalf
or on behalf of any person, contact with any person who is or was a customer of Party A within the twelve (12) month period preceding
the termination of Party B’s engagement hereunder, or who was a prospective customer of Party A with whom Party B had dealings
with in the twelve (12) month period preceding the termination of Party B’s engagement, for the purpose of conducting any
business which is the same as or which competes with any part of the business of Party A with which Party B was involved.

 

		22.	Party B agrees that Party A shall, according to any reasonable
operational needs, whether direct or indirect, have the right to disclose Party B’s personal information, including but
not limited to his name, address, nationality, position, salary, bank account, this Contract and the renewals and changes thereof.

 

		Chapter 10	Change, Termination and Extension of the Labor Contract

 

		23.	If any laws and regulations applicable for this Contract
is amended, the corresponding portions hereof or annexes hereto shall be amended accordingly. In the event of any material change
to, or any conflict with relevant Chinese laws and regulations by, any objective condition on which the entry into the Contract
was based, which makes the performance of the Contract impossible, the Parties may, after friendly consultation, change the relevant
portions of the Contract pursuant to the relevant laws and regulations.

 

		24.	The Parties may terminate this Contract by way of a written
form, through reaching consensus after consultation.

 

		25.	In the occurrence of following circumstances, Party A
has the right to unilaterally terminate this Contract without a prior written notice, provided that Party A shall inform Party
B of such termination decision, and the termination shall take effect immediately:

 

		25.1.	Party B materially violates the Company’s labor
disciplines or rules and policies (including but not limited to labor disciplines and the Company’s articles of association);

 

		25.2.	Party B commits gross negligence (including but not limited
to the duties set forth in Article 7 hereof) or engages in malpractices for selfish ends, thereby causing material losses to Party
A;

 

		25.3.	Party B establishes employment relationship concurrently
with any other employer, thereby causing material impact on the completion of Party A’s work assignments;

 

		25.4.	Party B uses such means as fraud, coercion or taking
advantage of other’s unfavorable position to cause the execution or change of the Contract by Party A against its genuine
will, thus leading to the void of the Contract;

 

    	5 of 8

    	 

    

  

		25.5.	Party B is held criminally liable pursuant to the law.

 

		26.	Under any of the following circumstances, Party A may
terminate this Contract by giving Party B either a 30-day prior written notice or an additional one month’s salary:

 

		26.1.	Upon expiration of the statutory period of medical treatment
and recovery after an illness or non-work-related injury suffered by Party B, he is either unable to perform his original job
or incompetent for any other job otherwise arranged by Party A;

 

		26.2.	Party B is incompetent, and remains incompetent after
training or adjustment of his job position, to comply with the provisions hereof or the standard work requirements specified by
Party A; or

 

		26.3.	In the event of any material change to any objective
condition on which the entry into the Contract was based, which makes the performance of the Contract impossible and the Parties
unable to reach an agreement through consultation in connection with the necessary changes to the Contract.

 

		27.	“Any material change to any objective condition”
referred to in Article 22 shall include but not limited to circumstances when:

 

		27.1.	Party A is merged by any other enterprise or organization,
or any critical portion of Party A’s assets is sold or transferred to any other enterprise or third party;

 

		27.2.	There is any material adjustment to Party A’s business
strategies or any material change to its business environment;

 

		27.3.	Party A encounters a substantial business hardship;

 

		27.4.	Party A enters into an improvement and rectification
stage or its production and operation enter into a complete or partial stagnation stage;

 

		27.5.	Party A announces bankruptcy, dissolution or liquidation;

 

		27.6.	According to its business development or the actual market
situation, Party A decides to end any research and development directly related to Party B’s job; and

 

		27.7.	Either or both of the Parties are unable to perform this
Contract under any law or regulation newly enacted by the Government.

 

		28.	During the Contract term, Party B has the right to resign
and terminate the Contract, provided that he shall give a 90-day prior written notice to Party A.

 

		29.	If Party A is: (i) threatened to be bankrupt; (ii) under
poor management or substantial hardship as to its business operation; (iii) changing any of its lines of production, making any
significant technical innovation or adjusting its business models, and still need to cut the job after changing the labor contract;
or (iv) faced with any other case in which the labor contract cannot be performed due to any material change to the objective
economic condition on which the conclusion of the labor contract was based, Party A shall explain to, and seek understanding from,
the employee, and may cut the job and termination this Contract after having reported to the relevant labor administration department.

 

    	6 of 8

    	 

    

 

		30.	Immediately upon termination of the Contract, Party B
shall cease its engagement in any activities in Party A’s name or complete any business as Party A so requested, and shall
settle all the accounts. Party B shall, within 3 days of the termination hereof, return all of Party A’s assets that are
in Party B’s possession and deliver all the documents and files (including but not limited to any written documents and
electronic documents). Party A will handle the departure formalities for Party B after Party A’s confirmation and issue
a departure consent letter. If Party B fails to complete the said transfer formalities, Party A may refuse to handle the departure
formalities for Party B.

 

		Chapter 11	Economic Compensation and Indemnification

 

		31.	If Party B terminates this Contract in violation of any
provisions hereof, he shall, pursuant to the provisions of laws and regulations, compensate for the losses caused to Party A due
to such termination.

 

		32.	If Party A bears the cost for any training, it may request
Party B to enter into an agreement prior to the provision of the training to Party B to agree upon the service term. If Party
B resigns in violation of such service term, he shall indemnify such training cost pursuant to the agreement at the time of his
resignation.

 

		Chapter 12	Resolution of Labor Disputes

 

		33.	Any dispute arising from the interpretation and performance
hereof shall be resolved through friendly consultation by the Parties. If such friendly consultation fails, either or both of
the Parties may, within one year of the occurrence of the dispute, submit it for arbitration by a labor dispute arbitration committee
having jurisdiction over the dispute. In case the Parties have no disagreement as to the arbitral award rendered by such labor
dispute arbitration commission, such arbitral award is final and binding upon the Parties. In case the Parties refuse to accept
the arbitration award made by that labor dispute arbitration committee, they may file an action with a court of jurisdiction.

 

		Chapter 13	Miscellaneous

 

		34.	The labor disciplines provided to Party B, which he has
known and agreed to comply with, shall have the same legal effect as this Contract. In the case of any conflict between the labor
disciplines and this Contract, this Contract shall prevail.
	 	 	 

	

	35.	The invalidity or non-enforceability of any provision
shall not affect the validity of any other provisions hereof.
	 	 	 
	 	36. 	Either Party’s failure to perform, or delay in
performance of, any of the rights hereunder shall not constitute a waiver of such right. 

 

    	7 of 8

    	 

    

 

		37.	In the case of any discrepancy between this Contract
and any related laws and regulations, the provisions of such laws and regulations shall prevail.

 

		38.	This Contract shall become effective upon signing and
affixation of seals by both Parties on the date first written above.

 

	Party A:	Party B:Wei Shen
	 	 
	By:/s/Xiaojun Zhu	By:/s/Wei Shen

  

    	8 of 8

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