Document:

Exhibit
        10.2

       

      REGISTRATION
        RIGHTS AGREEMENT

       

      REGISTRATION
        RIGHTS AGREEMENT
        (this
“Agreement”),
        dated
        as of May 30, 2008, by and among by and among Ecolab Inc., a Delaware
        corporation (the "Investor")
        and
        Linkwell Corporation, a Florida corporation, ("Linkwell").

       

      PRELIMINARY
        STATEMENT

       

      A. In
        connection with the Stock Purchase Agreement dated February 15, 2008 (the
        “Stock
        Purchase Agreement”)
        by and
        among the parties hereto and Linkwell Tech Group, Inc., a Florida corporation
        (“Linkwell
        Tech”),
        Linkwell Tech has agreed, upon the terms and subject to the conditions of
        the
        Stock Purchase Agreement, to issue and sell to the Investor shares of Linkwell
        Tech’s common stock.

       

      B. On
        or
        about the date hereof, the Investor, Linkwell and Linkwell Tech have entered
        into a Stockholders Agreement (the “Stockholders
        Agreement”)
        pursuant to which, in certain circumstances, the Investor could require Linkwell
        to purchase the Investor’s shares of common stock in Linkwell Tech and Linkwell
        could satisfy the purchase price therefor by the issuance of shares of common
        stock in the capital of Linkwell. 

       

      C. Linkwell
        has agreed to provide certain registration rights under the Securities Act
        of
        1933, as amended, and the rules and regulations thereunder, or any similar
        successor statute (collectively, the “Securities
        Act”),
        and
        applicable state securities laws.

       

      NOW,
        THEREFORE,
        in
        consideration of the premises and the mutual covenants contained herein and
        other good and valuable consideration, the receipt and sufficiency of which
        are
        hereby acknowledged, Linkwell and the Investor hereby agree as
        follows:

       

      
        	
                1.

              	
                DEFINITIONS.

              

      

       

      (a) Capitalized
        terms used but not defined in this Agreement shall have the meaning given
        to
        them in the Stockholders Agreement. 

       

      (b) As
        used
        in this Agreement, the following terms shall have the following
        meanings:

       

      “Common
        Stock”
means
        shares of common stock in the capital of Linkwell.

      

      “Delay
        Payment Rate”
means
        (i) during the first two weeks of a Damages Accrual Period, an amount per
        week
        (or portion thereof) per share of Common Stock equal to 0.5% of the Fair
        Market
        Value of such share, (ii) during the next two weeks of a Damages Accrual
        Period,
        an amount per week (or portion thereof) per share of Common Stock equal to
        1% of
        the Fair Market Value of such share, and (iii) during the remainder of a
        Damages
        Accrual Period, an amount per week (or portion thereof) per share of Common
        Stock equal to 2% of the Fair Market Value of such share. 

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      “Fair
        Market Value”
of
        a
        share of Common Stock during any particular week means the average of the
        closing sale price regular way on each day during such week or, if no such
        sale
        takes place on a day within such week, the average of the reported closing
        bid
        and asked prices, regular way, on each day during such week, in each case
        on the
        NASDAQ National Market (“NASDAQ”)
        or, if
        the Common Stock is not listed or admitted to trading on the NASDAQ, on the
        principal national security exchange or quotation system on which the Common
        Stock is quoted or listed or admitted to trading, or, if not quoted or listed
        or
        admitted to trading on any national securities exchange or quotation system,
        the
        average of the closing bid and asked prices of the Common Stock on the
        over-the-counter market on each day during such week, in each case as reported
        by the National Quotation Bureau Incorporated, or a similar generally accepted
        reporting service. The Fair Market Value shall be calculated, as appropriate,
        by
        making proportionate adjustments necessary to reflect any stock split, stock
        combination or stock dividend or similar stock distribution made during the
        applicable period.

      

      “Person”
means
        a
        corporation, a limited liability company, an association, a partnership,
        an
        organization, a business, an individual, a governmental or political subdivision
        thereof or a governmental agency.

      

      “Register,”
        “registered,”
and
        “registration”
refer
        to a registration effected by preparing and filing one or more Registration
        Statements (as defined below) in compliance with the Securities Act and pursuant
        to Rule 415 under the Securities Act or any successor rule providing for
        offering securities on a continuous or delayed basis (“Rule
        415”),
        and
        the declaration or ordering of effectiveness of such Registration Statement(s)
        by the United States Securities and Exchange Commission (the “SEC”).

      

      “Registrable
        Securities”
means
        the Stock Consideration Shares.

      

      “Registration
        Delay”
means
        the occurrence of any of (i) a Registration Statement covering all the
        Registrable Securities is not filed with the SEC on or before the Filing
        Deadline or is not declared effective by the SEC on or before the Effectiveness
        Deadline, (ii) a Registration Statement in connection with a Demand Registration
        covering all of the Registrable Securities required to be covered thereby
        is not
        filed with the SEC on or before the deadline described in the last sentence
        of
        Section 2(a) or is not declared effective by the SEC on or before the deadline
        described in the last sentence of Section 2(a), (iii) on any day during the
        Registration Period (other than during an Allowable Grace Period, as defined
        in
        Section 3(g)), any Registrable Security required to be included in such
        Registration Statement cannot be sold pursuant to such Registration Statement
        as
        a matter of law or because Linkwell has failed to perform its obligations
        under
        this Agreement within the applicable time period required for such performance
        (including, without limitation, because of a failure to keep such Registration
        Statement effective, to disclose such information as is necessary for sales
        to
        be made pursuant to such Registration Statement or to register a sufficient
        number of shares of Common Stock), or (iv) a Grace Period (as defined in
        Section
        3(g)) exceeds the length of an Allowable Grace Period.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      “Registration
        Statement”
means
        a
        registration statement or registration statements of Linkwell filed under
        the
        Securities Act covering the Registrable Securities.

      

      
        	
                2.

              	
                REGISTRATION.

              

      

       

      (a) Mandatory
        Registration.
        If
        Linkwell elects to pay Stock Consideration Shares for the Put Shares, Linkwell
        shall prepare, and, as soon as practicable, but in no event later than seventy
        five (75) days after the date of its receipt of the Put Notice (the
“Filing
        Deadline”),
        file
        with the SEC a Registration Statement or Registration Statements (as necessary)
        on Form S-3 covering the resale of all of the Registrable Securities. In
        the
        event that Form S-3 is unavailable for such a registration, Linkwell shall
        use
        such other form as is available for such a registration, subject to the
        provisions of Section 2(d). Linkwell shall use its best efforts to cause
        such Registration Statement to be declared effective by the SEC as soon as
        possible, but in no event later than one hundred fifty (150) days after the
        date
        of its receipt of the Put Notice (the “Effectiveness
        Deadline”).
        If for
        any reason prior to the expiration of the Registration Period (as hereinafter
        defined), the Registration Statement required to be filed pursuant to this
        Section 2(a) ceases to be effective or fails to cover all of the Registrable
        Securities, the Investor may on one (1) occasion subsequently demand
        registration pursuant to the terms of and within the time frames set forth
        in
        this Section 2(a) by providing written demand registration notice to Linkwell
        (a
“Demand
        Registration”).
        The
        Filing Deadline and Effectiveness Deadline with respect to any Demand
        Registration will be those dates which are sixty (60) days and one hundred
        thirty-five (135) days after the date that the Demand Registration notice
        is
        delivered to Linkwell. 

       

      (b) Piggy-Back
        Registrations.
        If at
        any time prior to the expiration of the Registration Period (as hereinafter
        defined), the number of shares of Common Stock available for sale under a
        Registration Statement is insufficient (as that term is used in Section 2(f))
        to
        cover all of the Registrable Securities and Linkwell proposes to file with
        the
        SEC a Registration Statement relating to an offering for its own account
        or the
        account of others under the Securities Act of any of its securities (other
        than
        on Form S-4, Form S-8 or Form S-1 (or their equivalents at such time)
        relating to securities to be issued solely in connection with any acquisition
        of
        any entity or business or to equity securities issuable in connection with
        stock
        option or other employee benefit plans approved by the board of directors
        of
        Linkwell) Linkwell shall promptly send to the Investor written notice of
        Linkwell’s intention to file a Registration Statement and of the Investor’s
        rights under this Section 2(b) and, if within twenty (20) days after receipt
        of
        such notice, the Investor shall so request in writing, Linkwell shall include
        in
        such Registration Statement all or any part of the Registrable Securities
        the
        Investor requests to be registered, subject to the priorities set forth in
        this
        Section 2(b) below. No right to registration of Registrable Securities under
        this Section 2(b) shall be construed to limit any registration required under
        Section 2(a). If an offering in connection with which the Investor is entitled
        to registration under this Section 2(b) is an underwritten offering, then
        if the
        Investor’s Registrable Securities are included in such Registration Statement
        the Investor shall, unless otherwise agreed by Linkwell, offer and sell such
        Registrable Securities in an underwritten offering using the same underwriter
        or
        underwriters and, subject to the provisions of this Agreement, on the same
        terms
        and conditions as other shares of Common Stock included in such underwritten
        offering. If a registration pursuant to this Section 2(b) is to be an
        underwritten public offering and the managing underwriter(s) advise Linkwell
        in
        writing, that in their reasonable good faith opinion, marketing or other
        factors
        dictate that a limitation on the number of shares of Common Stock which may
        be
        included in the Registration Statement is necessary to facilitate and not
        adversely affect the proposed offering, then Linkwell shall include in such
        registration: (1) first, all securities Linkwell proposes to sell for its
        own
        account and (2) second, up to the full number of securities proposed to be
        registered for the account of the Investor entitled to registration under
        this
        Section 2(b).

       

      
        
           

        

        
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      (c) Legal
        Counsel.
        Subject
        to Section 5 of this Agreement, the Investor shall have the right to select
        one
        legal counsel to review and comment upon any registration pursuant to this
        Agreement (“Legal
        Counsel”).
        Linkwell shall reasonably cooperate with Legal Counsel in performing Linkwell’s
        obligations under this Agreement.

       

      (d) Ineligibility
        for Form S-3.
        In the
        event that Form S-3 is not available for any registration of Registrable
        Securities hereunder, Linkwell shall (i) register the sale of the Registrable
        Securities on another appropriate form reasonably acceptable to the Investor
        and
        (ii) undertake to register the Registrable Securities on Form S-3 as soon
        as
        such form is available, provided that Linkwell shall maintain the effectiveness
        of the Registration Statement then in effect until such time as a Registration
        Statement on Form S-3 covering the Registrable Securities has been declared
        effective by the SEC.

       

      (e) Sufficient
        Number of Shares Registered.
        In the
        event the number of shares available under a Registration Statement filed
        pursuant to Section 2(a) is insufficient to cover all of the Registrable
        Securities which such Registration Statement is required to cover, Linkwell
        shall amend the Registration Statement, or file a new Registration Statement
        (on
        the short form available therefor, if applicable), or both, so as to cover
        the
        Registrable Securities as soon as practicable, but in any event not later
        than
        fifteen (15) days after the necessity therefor arises. Linkwell shall use
        its
        best efforts to cause such amendment and/or new Registration Statement to
        become
        effective as soon as practicable following the filing thereof.

       

      (f) Failure
        to File, Obtain and Maintain Effectiveness of Registration
        Statement.
        If a
        Registration Delay occurs Linkwell shall pay to the Investor (the “Registration
        Delay Payments”),
        as
        liquidated damages and not as a penalty, and calculated for each share of
        Common
        Stock then outstanding that is a Registrable Security, an accruing amount
        per
        each such share equal to the Delay Payment Rate for each week (or portion
        thereof) during the Damages Accrual Period. The Registration Delay Payments
        shall accrue from the first day of the applicable Registration Delay through
        the
        date it is cured (the “Damages
        Accrual Period”),
        and
        shall be payable in cash to the record holders of the Registrable Securities
        entitled thereto on the last business day of each calendar month. The parties
        agree that the sole monetary damages payable for a violation of the terms
        of
        Section 2(a) shall be such liquidated damages (unless such liquidated damages
        are disallowed, reduced or not permitted by applicable law). Nothing shall
        preclude the Investor from pursuing or obtaining specific performance or
        other
        equitable relief with respect to this Agreement in accordance with applicable
        law. The parties hereto agree that the liquidated damages provided for in
        this
        Section 2(f) constitute a reasonable estimate of the damages that may be
        incurred by the Investor by reason of the failure of the Registration Statement
        to be filed or declared effective or available for effecting resales of
        Registrable Securities in accordance with the provisions hereof.

       

      
        	
                3.

              	
                RELATED
                  OBLIGATIONS.

              

      

       

      At
        such
        time as Linkwell is obligated to file a Registration Statement with the SEC
        pursuant to Section 2(a) or 2(e), Linkwell will use its best efforts to effect
        the registration of the Registrable Securities in accordance with the intended
        method of disposition thereof and, pursuant thereto, Linkwell shall have
        the
        following obligations:

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      (a) Linkwell
        shall promptly prepare and file with the SEC a Registration Statement with
        respect to the Registrable Securities (but in no event later than the Filing
        Deadline) and use its best efforts to cause such Registration Statement relating
        to the Registrable Securities to become effective as soon as practicable
        after
        such filing (but in no event later than the applicable Effectiveness Deadline).
        Linkwell shall keep each Registration Statement effective pursuant to Rule
        415
        at all times until the earlier of (i) the date as of which the Investor may
        sell
        all of the Registrable Securities covered by such Registration Statement
        without
        restriction pursuant to Rule 144(k) promulgated under the Securities Act
        (or
        successor thereto) or (ii) the date on which the Investor shall have sold
        all
        the Registrable Securities covered by such Registration Statement (the
“Registration
        Period”),
        which
        Registration Statement (including any amendments or supplements thereto and
        prospectuses contained therein) shall not contain any untrue statement of
        a
        material fact or omit to state a material fact required to be stated therein,
        or
        necessary to make the statements therein, in light of the circumstances in
        which
        they were made, not misleading. The term “best efforts” as used in the first
        sentence of this Section 3(a) shall mean, among other things, that Linkwell
        shall submit to the SEC, within two (2) business days after Linkwell learns
        that
        no review of a particular Registration Statement will be made by the staff
        of
        the SEC or that the staff has no further comments on the Registration Statement,
        as the case may be, a request for acceleration of effectiveness of such
        Registration Statement to a time and date not later than two (2) business
        days
        after the submission of such request.

       

      (b) Linkwell
        shall prepare and file with the SEC such amendments (including post-effective
        amendments) and supplements to a Registration Statement and the prospectus
        used
        in connection with such Registration Statement, which prospectus is to be
        filed
        pursuant to Rule 424 promulgated under the Securities Act, as may be necessary
        to keep such Registration Statement effective at all times during the
        Registration Period, and, during such period, comply with the provisions
        of the
        Securities Act with respect to the disposition of all Registrable Securities
        of
        Linkwell covered by such Registration Statement until such time as all of
        such
        Registrable Securities shall have been disposed of in accordance with the
        intended methods of disposition by the seller or sellers thereof as set forth
        in
        such Registration Statement. In the case of amendments and supplements to
        a
        Registration Statement which are required to be filed pursuant to this Agreement
        (including pursuant to this Section 3(b)) by reason of Linkwell filing a
        report
        on Form 10-K, Form 10-Q or Form 8-K or any analogous report under the Securities
        Exchange Act of 1934, as amended (the “Exchange
        Act”),
        Linkwell shall have incorporated such report by reference into the Registration
        Statement, if applicable, or shall file such amendments or supplements with
        the
        SEC on the same day on which the Exchange Act report is filed which created
        the
        requirement for Linkwell to amend or supplement the Registration
        Statement.

       

      (c) Linkwell
        shall (a) permit Legal Counsel to review and comment upon those sections
        of (i)
        the Registration Statement which are applicable to the Investor at least
        five
        (5) business days prior to its filing with the SEC and (ii) all other
        Registration Statements and all amendments and supplements to all Registration
        Statements which are applicable to the Investor (except for Proxy Statements,
        Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports
        on Form 8-K and any similar or successor reports) within a reasonable number
        of
        days prior to the their filing with the SEC and (b) not file any document
        in a
        form to which Legal Counsel reasonably objects. Linkwell shall not submit
        a
        request for acceleration of the effectiveness of a Registration Statement
        or any
        amendment or supplement thereto without the prior approval of Legal Counsel,
        which consent shall not be unreasonably withheld. Linkwell shall furnish
        to
        Legal Counsel, without charge, (i) any correspondence from the SEC or the
        staff
        of the SEC to Linkwell or its representatives relating to any Registration
        Statement, provided the Investor and Legal Counsel keep such correspondence
        confidential, (ii) promptly after the same is prepared and filed with the
        SEC,
        one copy of any Registration Statement and any amendment(s) thereto, including
        financial statements and schedules and all exhibits and (iii) upon the
        effectiveness of any Registration Statement, one copy of the prospectus included
        in such Registration Statement and all amendments and supplements thereto.
        Linkwell shall reasonably cooperate with Legal Counsel in performing Linkwell’s
        obligations pursuant to this Section 3.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      (d) Linkwell
        shall furnish to the Investor, without charge, (i) promptly after the same
        is
        prepared and filed with the SEC, at least one copy of the Registration Statement
        and any amendment(s) thereto, including financial statements and schedules,
        and
        all exhibits and each preliminary prospectus, (ii) upon the effectiveness
        of any
        Registration Statement, ten (10) copies of the prospectus included in such
        Registration Statement and all amendments and supplements thereto and (iii)
        such
        other documents, including copies of any preliminary or final prospectus,
        as the
        Investor may reasonably request from time to time in order to facilitate
        the
        disposition of the Registrable Securities.

       

      (e) Linkwell
        shall use its best efforts to (i) register and qualify the Registrable
        Securities covered by a Registration Statement under all other securities
        or
“blue sky” laws of such jurisdictions in the United States, (ii) prepare and
        file in those jurisdictions, such amendments (including post-effective
        amendments) and supplements to such registrations and qualifications as may
        be
        necessary to maintain the effectiveness thereof during the Registration Period,
        (iii) take such other actions as may be necessary to maintain such registrations
        and qualifications in effect at all times during the Registration Period,
        and
        (iv) take all other actions reasonably necessary or advisable to qualify
        the
        Registrable Securities for sale in such jurisdictions; provided, however,
        that
        Linkwell shall not be required in connection therewith or as a condition
        thereto
        to (w) make any change in Linkwell’s Certificate of Incorporation or by-laws
        that Linkwell’s board of directors determines in good faith to be contrary to
        the best interests of Linkwell and its shareholders, (x) qualify to do business
        in any jurisdiction where it would not otherwise be required to qualify but
        for
        this Section 3(e), (y) subject itself to general taxation in any such
        jurisdiction, or (z) file a general consent to service of process in any
        such
        jurisdiction. Linkwell shall promptly notify Legal Counsel and the Investor
        of
        the receipt by Linkwell of any notification with respect to the suspension
        of
        the registration or qualification of any of the Registrable Securities for
        sale
        under the securities or “blue sky” laws of any jurisdiction in the United States
        or its receipt of actual notice of the initiation or threat of any proceeding
        for such purpose.

       

      (f) As
        promptly as practicable after becoming aware of such event or development,
        Linkwell shall notify Legal Counsel and the Investor in writing of the happening
        of any event as a result of which the prospectus included in a Registration
        Statement, as then in effect, includes an untrue statement of a material
        fact or
        omission to state a material fact required to be stated therein or necessary
        to
        make the statements therein, in light of the circumstances under which they
        were
        made, not misleading, and promptly prepare a supplement or amendment to such
        Registration Statement to correct such untrue statement or omission, and
        deliver
        ten (10) copies of such supplement or amendment to Legal Counsel and the
        Investor. Linkwell shall also promptly notify Legal Counsel and the Investor
        in
        writing (i) when a prospectus or any prospectus supplement or post-effective
        amendment has been filed, and when a Registration Statement or any
        post-effective amendment has become effective (notification of such
        effectiveness shall be delivered to Legal Counsel and the Investor by facsimile
        on the same day of such effectiveness), (ii) of any request by the SEC for
        amendments or supplements to a Registration Statement or related prospectus
        or
        related information, and (iii) of Linkwell’s reasonable determination that a
        post-effective amendment to a Registration Statement would be
        appropriate.

       

      
        
           

        

        
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      (g) Linkwell
        shall use its best efforts to prevent the issuance of any stop order or other
        suspension of effectiveness of a Registration Statement, or the suspension
        of
        the qualification of any of the Registrable Securities for sale in any
        jurisdiction and, if such an order or suspension is issued, to obtain the
        withdrawal of such order or suspension at the earliest possible moment and
        to
        notify Legal Counsel and the Investor of the issuance of such order and the
        resolution thereof or its receipt of actual notice of the initiation or threat
        of any proceeding for such purpose.

       

      (h) At
        the
        reasonable request of the Investor and at the Investor’s expense, Linkwell shall
        use its best efforts to furnish to the Investor, on the date of the
        effectiveness of the Registration Statement and thereafter from time to time
        on
        such dates as the Investor may reasonably request (i) a letter, dated such
        date,
        from Linkwell’s independent certified public accountants in form and substance
        as is customarily given by independent certified public accountants to
        underwriters in an underwritten public offering, and (ii) an opinion, dated
        as
        of such date, of counsel representing Linkwell for purposes of such Registration
        Statement, in form, scope and substance as is customarily given in an
        underwritten public offering, addressed to the Investor.

       

      (i) Linkwell
        shall make available for inspection by (i) the Investor, (ii) Legal Counsel
        and
        (iii) one firm of accountants or other agents retained by the Investor
        (collectively, the “Inspectors”)
        all
        pertinent financial and other records, and pertinent corporate documents
        and
        properties of Linkwell (collectively, the “Records”),
        which
        are requested for any purpose reasonably related to the Investor’s rights and/or
        Linkwell’s obligations under this Agreement, and cause Linkwell’s officers,
        directors and employees to supply all information which any Inspector may
        reasonably request; provided, however, that each Inspector which is not a
        party
        hereto shall agree in writing prior to obtaining access to any Records, and
        the
        Investor hereby agrees, to hold in strict confidence and shall not make any
        disclosure or use of any Record or other information which Linkwell determines
        in good faith to be confidential, and of which determination the Inspectors
        are
        so notified, unless (a) the disclosure of such Records is necessary to avoid
        or
        correct a misstatement or omission in any Registration Statement or is otherwise
        required under the Securities Act, (b) the release of such Records is ordered
        pursuant to a final, non-appealable subpoena or order from a court or government
        body of competent jurisdiction, or (c) the information in such Records has
        been
        made generally available to the public other than by disclosure in violation
        of
        this or any other agreement of which the Inspector has knowledge. Linkwell
        shall
        not be required to disclose any confidential information in such Records
        to any
        Inspector until and unless such Inspector shall have entered into
        confidentiality agreements with Linkwell with respect thereto, substantially
        in
        the form of this Section 3(i). The Investor agrees that it shall, if permitted
        by applicable law, upon learning that disclosure of such Records is sought
        in or
        by a court or governmental body of competent jurisdiction or through other
        means, give prompt notice to Linkwell prior to making any such disclosure
        and
        allow Linkwell, at its expense, to undertake appropriate action to prevent
        disclosure of, or to obtain a protective order for, the Records deemed
        confidential.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      (j) Linkwell
        shall hold in confidence and not make any disclosure of information concerning
        the Investor provided to Linkwell unless (i) disclosure of such information
        is
        necessary to comply with federal or state securities laws, (ii) the disclosure
        of such information is necessary to avoid or correct a misstatement or omission
        in any Registration Statement, (iii) the release of such information is ordered
        pursuant to a subpoena or other final, non-appealable order from a court
        or
        governmental body of competent jurisdiction, (iv) such information has been
        made
        generally available to the public other than by disclosure in violation of
        this
        Agreement or any other agreement, or (v) the Investor consents to the form
        and
        content of any such disclosure. Linkwell agrees that it shall, if permitted
        by
        applicable law, upon learning that disclosure of such information concerning
        the
        Investor is sought in or by a court or governmental body of competent
        jurisdiction or through other means, give prompt written notice to the Investor
        prior to making any such disclosure and allow the Investor, at the Investor’s
        expense, to undertake appropriate action to prevent disclosure of, or to
        obtain
        a protective order for, such information.

       

      (k) Linkwell
        shall use its best efforts either to (i) cause all the Registrable Securities
        covered by a Registration Statement to be listed on each securities exchange
        on
        which securities of the same class or series issued by Linkwell are then
        listed,
        if any, if the listing of such Registrable Securities is then permitted under
        the rules of such exchange, or (ii) secure designation and quotation of all
        the
        Registrable Securities covered by the Registration Statement on The NASDAQ
        Stock
        Market. Linkwell shall pay all fees and expenses in connection with satisfying
        its obligation under this Section 3(k).

       

      (l) Linkwell
        shall facilitate the timely preparation and delivery of certificates (not
        bearing any restrictive legend) representing the Registrable Securities to
        be
        offered pursuant to a Registration Statement and enable such certificates
        to be
        in such denominations or amounts, as the case may be, as the Investor may
        reasonably request and registered in such names as the Investor may
        request.

       

      (m) Linkwell
        shall provide a transfer agent and registrar of all such Registrable Securities
        not later than the effective date of such Registration Statement.

       

      (n) If
        requested by the Investor, Linkwell shall (i) as soon as practicable incorporate
        in a prospectus supplement or post-effective amendment, as necessary, such
        information as the Investor requests to be included therein relating to the
        Investor and the sale and distribution of Registrable Securities, including,
        without limitation, information with respect to the number of Registrable
        Securities being offered or sold, the purchase price being paid therefor
        and any
        other terms of the offering of the Registrable Securities to be sold in such
        offering; and (ii) as soon as practicable make all required filings of such
        prospectus supplement or post-effective amendment after being notified of
        the
        matters to be incorporated in such prospectus supplement or post-effective
        amendment.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      (o) Linkwell
        shall use its best efforts to cause the Registrable Securities covered by
        the
        applicable Registration Statement to be registered with or approved by such
        other governmental agencies or authorities as may be necessary to consummate
        the
        disposition of such Registrable Securities within the United
        States.

       

      (p) Linkwell
        shall otherwise use its best efforts to comply with all applicable rules
        and
        regulations of the SEC in connection with any registration
        hereunder.

       

      (q) Within
        two (2) business days after a Registration Statement which covers applicable
        Registrable Securities is ordered effective by the SEC, Linkwell shall deliver,
        and shall cause legal counsel for Linkwell to deliver, to the transfer agent
        for
        such Registrable Securities (with copies to the Investor) confirmation that
        such
        Registration Statement has been declared effective by the SEC. 

       

      (r) Notwithstanding
        anything to the contrary in this Section 3, at any time after the applicable
        Registration Statement has been declared effective by the SEC, Linkwell may
        delay the disclosure of material non-public information concerning Linkwell
        the
        disclosure of which at the time is not, in the good faith opinion of the
        Board
        of Directors of Linkwell and its counsel, in the best interest of Linkwell
        and,
        in the opinion of counsel to Linkwell, otherwise required (a “Grace
        Period”);
        provided, that Linkwell shall promptly (i) notify the Investor in writing
        of the
        existence of material non-public information giving rise to a Grace Period
        (provided that in each notice Linkwell will not disclose the content of such
        material non-public information to the Investor) and the date on which the
        Grace
        Period will begin, and (ii) notify the Investor in writing of the date on
        which
        the Grace Period ends; and, provided further, that no Grace Periods shall
        exceed
        thirty (30) consecutive days and during any consecutive three hundred sixty-five
        (365) day period, such Grace Periods shall not exceed an aggregate of sixty
        (60)
        days (an “Allowable
        Grace Period”).
        For
        purposes of determining the length of a Grace Period above, the Grace Period
        shall begin on and include the date the holders receive the notice referred
        to
        in clause (i) and shall end on and include the later of the date the holders
        receive the notice referred to in clause (ii) and the date referred to in
        such
        notice. The provisions of Section 3(g) hereof shall not be applicable during
        the
        period of any Allowable Grace Period. Upon expiration of the Grace Period,
        Linkwell shall again be bound by the first sentence of Section 3(f) with
        respect
        to the information giving rise thereto unless such material non-public
        information is no longer applicable.

       

      
        	
                4.

              	
                OBLIGATIONS
                  OF THE INVESTOR.

              

      

       

      (a) At
        least
        seven (7) days prior to the first anticipated filing date of a Registration
        Statement, Linkwell shall notify the Investor in writing of the information
        Linkwell requires from the Investor. It shall be a condition precedent to
        the
        obligations of Linkwell to complete the registration pursuant to this Agreement
        that the Investor shall furnish to Linkwell such information regarding itself
        and the intended method of disposition of the Registrable Securities as shall
        be
        reasonably required to effect the registration of such Registrable Securities
        and shall execute such documents in connection with such registration as
        Linkwell may reasonably request. If the Investor does not provide Linkwell
        with
        the information it has requested pursuant to this Section 4(a) within seven
        (7) days of being notified by Linkwell of its necessity, then the Filing
        Deadline and Effectiveness Deadline shall each be extended by (i) if the
        information is provided prior to the anticipated filing date, the period
        equal
        to the number of days (after such seventh (7th)
        day)
        until the Investor provided the requested information, and (ii) if the
        information is provided after the anticipated filing date, the period that
        is
        equal to the longer of (A) the period equal to the number of days (after
        such
        seventh (7th)
        day)
        until the Investor provided the requested information , and (B) 15
        days.

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      (b) The
        Investor agrees to cooperate with Linkwell as reasonably requested by Linkwell
        in connection with the preparation and filing of any Registration Statement
        hereunder.

       

      (c) The
        Investor agrees that, upon receipt of any notice from Linkwell of the happening
        of any event of the kind described in Section 3(g) or the first sentence
        of
        3(f), the Investor will immediately discontinue disposition of Registrable
        Securities pursuant to any Registration Statement(s) covering such Registrable
        Securities until the Investor’s receipt of the copies of the supplemented or
        amended prospectus contemplated by Section 3(g) or the first sentence of
        3(f) or
        receipt of notice that no supplement or amendment is required. Notwithstanding
        anything to the contrary, Linkwell shall cause its transfer agent to deliver
        unlegended shares of Common Stock to a transferee of the Investor in accordance
        with the terms of the Stock Purchase Agreement in connection with any sale
        of
        Registrable Securities with respect to which the Investor has entered into
        a
        contract for sale prior to the Investor’s receipt of a notice from Linkwell of
        the happening of any event of the kind described in Section 3(g) or the first
        sentence of Section 3(f) and for which the Investor has not yet
        settled.

       

      (d) As
        promptly as practicable after becoming aware of such event, the Investor
        shall
        notify Linkwell in writing of the happening of any event as a result of which
        the information provided in writing by the Investor to Linkwell expressly
        for
        use in the Prospectus included in a Registration Statement, as then in effect,
        includes an untrue statement of a material fact or omission to state a material
        fact required to be stated therein or necessary to make the statements therein,
        in light of the circumstances under which they were made, not
        misleading.

       

      
        	
                5.

              	
                EXPENSES
                  OF REGISTRATION.

              

      

       

      All
        expenses incurred in connection with registrations, filings or qualifications
        pursuant to Sections 2 and 3 of this Agreement, including, without limitation,
        all registration, listing and qualifications fees, printers and accounting
        fees,
        transfer agent fees and fees and disbursements of counsel for Linkwell, but
        excluding underwriting discounts and commissions, shall be paid by Linkwell.
        Linkwell shall also reimburse the Investor for the reasonable and documented
        fees and disbursements of Legal Counsel in connection with registration,
        filing
        or qualification pursuant to Sections 2 and 3 of this Agreement. Linkwell
        shall
        pay all of the Investor’s reasonable costs (including fees and disbursements of
        Legal Counsel) incurred in connection with the successful enforcement of
        the
        Investor’s rights under this Agreement. Notwithstanding the foregoing, each
        seller of Registrable Securities shall pay all fees and disbursements of
        all
        counsel (other than the Legal Counsel) retained by such seller and all selling
        expenses, including, without limitation, all underwriting discounts, selling
        commissions, transfer taxes and other similar expenses, to the extent required
        by applicable law.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      
        	
                6.

              	
                INDEMNIFICATION.

              

      

       

      In
        the
        event any Registrable Securities are included in a Registration Statement
        under
        this Agreement:

       

      (a) To
        the
        fullest extent permitted by law, Linkwell will, and hereby does, indemnify,
        hold
        harmless and defend the Investor, the directors, officers, partners, employees,
        agents, representatives of, and each Person, if any, who controls the Investor
        within the meaning of the Securities Act or the Exchange Act (each, an
“Investor
        Indemnified Person”),
        against any losses, claims, damages, liabilities, judgments, fines, penalties,
        charges, costs, reasonable attorneys’ fees, amounts paid in settlement or
        expenses, joint or several, (collectively, “Claims”)
        incurred in investigating, preparing or defending any action, claim, suit,
        inquiry, proceeding, investigation or appeal taken from the foregoing by
        or
        before any court or governmental, administrative or other regulatory agency,
        body or the SEC, whether pending or threatened, whether or not an indemnified
        party is or may be a party thereto (“Indemnified
        Damages”),
        to
        which any of them may become subject insofar as such Claims (or actions or
        proceedings, whether commenced or threatened, in respect thereof) arise out
        of
        or are based upon: (i) any untrue statement or alleged untrue statement of
        a
        material fact in a Registration Statement or any post-effective amendment
        thereto or in any filing made in connection with the qualification of the
        offering under the securities or other “blue sky” laws of any jurisdiction in
        which Registrable Securities are offered (“Blue
        Sky Filing”),
        or
        the omission or alleged omission to state a material fact required to be
        stated
        therein or necessary to make the statements therein not misleading, (ii)
        any
        untrue statement or alleged untrue statement of a material fact contained
        in any
        preliminary prospectus if used prior to the effective date of such Registration
        Statement, or contained in the final prospectus (as amended or supplemented,
        if
        Linkwell files any amendment thereof or supplement thereto with the SEC)
        or the
        omission or alleged omission to state therein any material fact necessary
        to
        make the statements made therein, in light of the circumstances under which
        the
        statements therein were made, not misleading or (iii) any violation or alleged
        violation by Linkwell of the Securities Act, the Exchange Act, any other
        law,
        including, without limitation, any state securities law, or any rule or
        regulation thereunder relating to the offer or sale of the Registrable
        Securities pursuant to a Registration Statement (the matters in the foregoing
        clauses (i) through (iii) being, collectively, “Violations”).
        Subject to Section 6(c), Linkwell shall reimburse the Investor and each such
        controlling person, promptly as such expenses are incurred and are due and
        payable, for any legal fees or disbursements or other reasonable expenses
        incurred by them in connection with investigating or defending any such Claim.
        Notwithstanding anything to the contrary contained herein, the indemnification
        agreement contained in this Section 6(a): (i) shall not apply to a Claim
        by an
        Investor Indemnified Person arising out of or based upon a Violation which
        occurs in reliance upon and in conformity with information furnished in writing
        to Linkwell by such Investor Indemnified Person expressly for use in connection
        with the preparation of the Registration Statement or any such amendment
        thereof
        or supplement thereto, if such prospectus was timely made available by Linkwell
        pursuant to Section 3(d); (ii) shall not be available to the extent such
        Claim
        is based on a failure of the Investor to deliver or to cause to be delivered
        the
        prospectus made available by Linkwell, if such prospectus was timely made
        available by Linkwell pursuant to Section 3(d); and (iii) shall not apply
        to
        amounts paid in settlement of any Claim, if such settlement is effected without
        the prior written consent of Linkwell, which consent shall not be unreasonably
        withheld. Such indemnity shall remain in full force and effect regardless
        of any
        investigation made by or on behalf of the Investor Indemnified Person and
        shall
        survive the transfer of the Registrable Securities by the Investor pursuant
        to
        Section 9.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      (b) In
        connection with any Registration Statement, the Investor agrees to indemnify,
        hold harmless and defend, to the same extent and in the same manner as is
        set
        forth in Section 6(a), Linkwell, each of its directors, each of its officers
        who
        signs the Registration Statement, each of Linkwell’s agents or representatives,
        and each Person, if any, who controls Linkwell within the meaning of the
        Securities Act or the Exchange Act (each an “Company
        Indemnified Party”),
        against any Claim or Indemnified Damages to which any of them may become
        subject, under the Securities Act, the Exchange Act or otherwise, insofar
        as
        such Claim or Indemnified Damages arise out of or are based upon any Violation,
        in each case to the extent, and only to the extent, that such Violation occurs
        in reliance upon and in conformity with written information furnished to
        Linkwell by the Investor specifically for use in connection with such
        Registration Statement; and, subject to Section 6(d), the Investor will
        reimburse any legal or other expenses reasonably incurred by them in connection
        with investigating or defending any such Claim; provided, however, that the
        indemnity agreement contained in this Section 6(b) and the agreement with
        respect to contribution contained in Section 7 shall not apply to amounts
        paid
        in settlement of any Claim if such settlement is effected without the prior
        written consent of the Investor, which consent shall not be unreasonably
        withheld; provided, further, however, that the Investor shall be liable under
        this Section 6(b) for only that amount of a Claim or Indemnified Damages
        as does
        not exceed the net proceeds to the Investor as a result of the sale of
        Registrable Securities pursuant to such Registration Statement. Such indemnity
        shall remain in full force and effect regardless of any investigation made
        by or
        on behalf of such Company Indemnified Party and shall survive the transfer
        of
        the Registrable Securities by the Investor pursuant to Section 9.
        Notwithstanding anything to the contrary contained herein, the indemnification
        agreement contained in this Section 6(b) with respect to any prospectus shall
        not inure to the benefit of any Company Indemnified Party if the untrue
        statement or omission of material fact contained in the prospectus was corrected
        on a timely basis in the prospectus, as then amended or
        supplemented.

       

      (c) Promptly
        after receipt by an Investor Indemnified Person or Company Indemnified Party
        under this Section 6 of notice of the commencement of any action or proceeding
        (including any governmental action or proceeding) involving a Claim, such
        Investor Indemnified Person or Company Indemnified Party shall, if a Claim
        in
        respect thereof is to be made against any indemnifying party under this Section
        6, deliver to the indemnifying party a written notice of the commencement
        thereof, and the indemnifying party shall have the right to participate in,
        and,
        to the extent the indemnifying party so desires, jointly with any other
        indemnifying party similarly noticed, to assume control of the defense thereof
        with counsel mutually satisfactory to the indemnifying party and the Investor
        Indemnified Person or Linkwell Indemnified Party, as the case may be; provided,
        however, that an Investor Indemnified Person or Company Indemnified Party
        shall
        have the right to retain its own counsel with the fees and expenses of not
        more
        than one counsel for such Investor Indemnified Person or Company Indemnified
        Party to be paid by the indemnifying party, if, in the reasonable opinion
        of
        counsel retained by the indemnifying party, the representation by such counsel
        of the Investor Indemnified Person or Company Indemnified Party and the
        indemnifying party would be inappropriate due to actual or potential conflicting
        interests between such Investor Indemnified Person or Company Indemnified
        Party
        and any other party represented by such counsel in such proceeding. In the
        case
        of an Investor Indemnified Person, legal counsel referred to in the immediately
        preceding sentence shall be selected by the Investor. Linkwell Indemnified
        Party
        or Investor Indemnified Person shall cooperate with the indemnifying party
        in
        connection with any negotiation or defense of any such action or claim by
        the
        indemnifying party and shall furnish to the indemnifying party all information
        reasonably available to Linkwell Indemnified Party or Investor Indemnified
        Person which relates to such action or claim. The indemnifying party shall
        keep
        Linkwell Indemnified Party or Investor Indemnified Person apprised as to
        the
        status of the defense or any settlement negotiations with respect thereto.
        No
        indemnifying party shall be liable for any settlement of any action, claim
        or
        proceeding effected without its prior written consent, which consent shall
        not
        be unreasonably withheld. No indemnifying party shall, without the prior
        written
        consent of Linkwell Indemnified Party or Investor Indemnified Person, consent
        to
        entry of any judgment or enter into any settlement or other compromise which
        does not include as an unconditional term thereof the giving by the claimant
        or
        plaintiff to such Company Indemnified Party or Investor Indemnified Person
        of a
        release from all liability in respect of such claim or litigation. The failure
        to deliver written notice to the indemnifying party within a reasonable time
        of
        the commencement of any such action shall not relieve such indemnifying party
        of
        any liability to the Investor Indemnified Person or Company Indemnified Party
        under this Section 6, except to the extent that the indemnifying party is
        prejudiced in its ability to defend such action.

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      (d) The
        indemnification required by this Section 6 shall be made by periodic payments
        of
        the amount thereof during the course of the investigation or defense, as
        and
        when bills are received or Indemnified Damages are incurred.

       

      (e) The
        indemnity agreements contained herein shall be in addition to (i) any cause
        of
        action or similar right of Linkwell Indemnified Party or Investor Indemnified
        Person against the indemnifying party or others, and (ii) any liabilities
        the
        indemnifying party may be subject to pursuant to the law.

       

      
        	
                7.

              	
                CONTRIBUTION.

              

      

       

      To
        the
        extent any indemnification by an indemnifying party is prohibited or limited
        by
        law, the indemnifying party agrees to make the maximum contribution with
        respect
        to any amounts for which it would otherwise be liable under Section 6 to
        the
        fullest extent permitted by law; provided, however, that: (i) no Person guilty
        of fraudulent misrepresentation (within the meaning of Section 11(f) of the
        Securities Act) shall be entitled to contribution from any Person who was
        not
        guilty of fraudulent misrepresentation; and (ii) contribution by any seller
        of
        Registrable Securities shall be limited in amount to the net amount of proceeds
        received by such seller from the sale of such Registrable Securities pursuant
        to
        such Registration Statement.

       

      
        	
                8.

              	
                REPORTS
                  UNDER THE EXCHANGE ACT.

              

      

       

      With
        a
        view to making available to the Investor the benefits of Rule 144 promulgated
        under the Securities Act or any other similar rule or regulation of the SEC
        that
        may at any time permit the Investor to sell securities of Linkwell to the
        public
        without registration (“Rule
        144”),
        Linkwell agrees to:

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      (a) make
        and
        keep public information available, as those terms are understood and defined
        in
        Rule 144;

       

      (b) file
        with
        the SEC in a timely manner all reports and other documents required of Linkwell
        under the Securities Act and the Exchange Act so long as Linkwell remains
        subject to such requirements (it being understood that nothing herein shall
        limit Linkwell’s obligations under the Stock Purchase Agreement) and the filing
        of such reports and other documents is required for the applicable provisions
        of
        Rule 144; and

       

      (c) furnish
        to the Investor, promptly upon request, (i) a written statement by Linkwell
        that
        it has complied with the reporting requirements of Rule 144, the Securities
        Act
        and the Exchange Act and (ii) such other information as may be reasonably
        requested to permit the Investor to sell such securities pursuant to Rule
        144
        without registration.

       

      
        	
                9.

              	
                ASSIGNMENT
                  OF REGISTRATION RIGHTS.

              

      

       

      The
        rights under this Agreement shall be automatically assignable by the Investor
        to
        any transferee of all or any portion of Registrable Securities if: (i) the
        Investor agrees in writing with the transferee or assignee to assign such
        rights, and a copy of such agreement is furnished to Linkwell within a
        reasonable time after such assignment; (ii) Linkwell is, within a reasonable
        time after such transfer or assignment, furnished with written notice of
        (a) the
        name and address of such transferee or assignee, and (b) the securities with
        respect to which such registration rights are being transferred or assigned;
        and
        (iii) the transferee or assignee agrees in writing with Linkwell to be bound
        by
        all of the provisions contained herein. No transferee of registration rights
        under this Agreement shall be entitled to include any Registrable Securities
        on
        a Registration Statement unless it previously has provided Linkwell the written
        notice referred to in clause (ii) of the preceding sentence.

       

      
        	
                10.

              	
                AMENDMENT
                  OF REGISTRATION RIGHTS.

              

      

       

      Provisions
        of this Agreement may be amended and the observance thereof may be waived
        (either generally or in a particular instance and either retroactively or
        prospectively), only with the written consent of Linkwell and the Investor.
        

       

      
        	
                11.

              	
                MISCELLANEOUS.

              

      

       

      (a) All
        notices and other communications under this Agreement must be in writing
        and are
        deemed duly delivered when (a) delivered if delivered personally or by
        nationally recognized overnight courier service (costs prepaid), (b) sent
        by
        facsimile with confirmation of transmission by the transmitting equipment
        (or,
        the first business day following such transmission if the date of transmission
        is not a business day) or (c) received or rejected by the addressee, if sent
        by
        certified mail, return receipt requested; in each case to the following
        addresses or facsimile numbers and marked to the attention of the individual
        (by
        name or title) designated below (or to such other address, facsimile number
        or
        individual as a party may designate by notice to the other
        parties):

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      If
        to
        Linkwell:

       

      Linkwell
        Corporation 

      476
        Hutai
        Branch Road

      Baoshan
        District

      Sanghai,
        China 200436

      Fax:
        (8621) 66501425

      Attn:
        Secretary

      

      with
        a
        copy (which will not constitute notice) to:

      

      Burns
        & Levinson LLP

      125
        Summer St. 

      Boston,
        MA  02110

      Fax:
        (617) 345-3299

      Attn:
        Stephen D. Brook

      

       

      If
        to
        Ecolab:

       

      Ecolab
        Inc., 

      Ecolab
        Center, 

      370
        Wabasha Street North, 

      St.
        Paul,
        MN 55102-1390

      Fax:
        (651) 293-2573

      Attention:
        General Counsel

      

      with
        a
        copy (which will not constitute notice) to:

      

      Baker
        & McKenzie LLP

      One
        Prudential Plaza, Suite 3500

      Chicago,
        Illinois, 60601

      Fax:
        312
        861 2899

      Attention:
        Edward J. West

      

      

      (b) Amendment.
        This
        Agreement may not be amended, supplemented or otherwise modified except in
        a
        written document signed by each party to be bound by the amendment and that
        identifies itself as an amendment to this Agreement.

       

      (c) Waivers
        and Remedies.
        The
        parties may (a) extend the time for performance of any of the obligations
        or
        other acts of any other party to this Agreement, (b) waive any inaccuracies
        in
        the representations and warranties of any other party to this Agreement
        contained in this Agreement or in any certificate, instrument or document
        delivered pursuant to this Agreement or (c) waive compliance with any of
        the
        covenants, agreements or conditions for the benefit of such party contained
        in
        this Agreement. Any such extension or waiver by any party to this Agreement
        will
        be valid only if set forth in a written document signed on behalf of the
        party
        or parties against whom the waiver or extension is to be effective. No extension
        or waiver will apply to any time for performance, inaccuracy in any
        representation or warranty, or noncompliance with any covenant, agreement
        or
        condition, as the case may be, other than that which is specified in the
        written
        extension or waiver. No failure or delay by any party in exercising any right
        or
        remedy under this Agreement or any of the documents delivered pursuant to
        this
        Agreement, and no course of dealing between the parties, operates as a waiver
        of
        such right or remedy, and no single or partial exercise of any such right
        or
        remedy precludes any other or further exercise of such right or remedy or
        the
        exercise of any other right or remedy. Any enumeration of a party’s rights and
        remedies in this Agreement is not intended to be exclusive, and a party’s rights
        and remedies are intended to be cumulative to the extent permitted by law
        and
        include any rights and remedies authorized in law or in equity.

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      (d) Entire
        Agreement.
        This
        Agreement (together with the Stock Purchase Agreement, the Stockholders
        Agreement and any documents and instruments referred to therein) constitutes
        the
        entire agreement among the parties and supersedes any prior understandings,
        agreements or representations by or among the parties, or any of them, written
        or oral, with respect to the subject matter of this Agreement.

       

      (e) Assignment
        and Successors.
        This
        Agreement binds and benefits the parties and their respective successors
        and
        permitted assigns. Nothing expressed or referred to in this Agreement will
        be
        construed to give any Person, other than the parties to this Agreement, any
        legal or equitable right, remedy or claim under or with respect to this
        Agreement or any provision of this Agreement except such rights as may inure
        to
        a successor or permitted assignee under this Section.
        The
        rights and obligations of a party hereunder are not assignable without the
        prior
        written consent of the other party. Any purported assignment in contravention
        of
        the foregoing shall be void and of no effect.

       

      (f) Severability.
        If any
        provision of this Agreement is held invalid, illegal or unenforceable, the
        validity, legality and enforceability of the remaining provisions of this
        Agreement are not affected or impaired in any way and the parties agree to
        negotiate in good faith to replace such invalid, illegal and unenforceable
        provision with a valid, legal and enforceable provision that achieves, to
        the
        greatest lawful extent under this Agreement, the economic, business and other
        purposes of such invalid, illegal or unenforceable provision.

       

      (g) Interpretation.
        The
        language used in this Agreement is the language chosen by the parties to
        express
        their mutual intent, and no provision of this Agreement will be interpreted
        for
        or against any party because that party or its attorney drafted the
        provision.

       

      (h) Governing
        Law.
        The
        internal laws of the State of Delaware (without giving effect to any choice
        or
        conflict of law provision or rule that would cause the application of laws
        of
        any other jurisdiction) govern all matters arising out of or relating to
        this
        Agreement and all of the transactions it contemplates, including its validity,
        interpretation, construction, performance and enforcement and any disputes
        or
        controversies arising therefrom.

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      (i) Specific
        Performance.
        The
        parties agree that irreparable damage would occur in the event that any of
        the
        provisions of this Agreement were not performed in accordance with their
        specific terms or were otherwise breached. The parties accordingly agree
        that,
        in addition to any other remedy to which they are entitled at law or in equity,
        the parties are entitled to injunctive relief to prevent breaches of this
        Agreement and otherwise to enforce specifically the provisions of this
        Agreement. Each party expressly waives any requirement that any other party
        obtain any bond or provide any indemnity in connection with any action seeking
        injunctive relief or specific enforcement of the provisions of this
        Agreement.

       

      (j) Jurisdiction
        and Service of Process.
        Any
        action or proceeding arising out of or relating to this Agreement or the
        transactions contemplated by this Agreement must be brought in the courts
        of the
        State of Minnesota, County of Ramsey, or, if it has or can acquire jurisdiction,
        in the United States District Court for the District of Minnesota. Each of
        the
        parties knowingly, voluntarily and irrevocably submits to the exclusive
        jurisdiction of each such court in any such action or proceeding and waives
        any
        objection it may now or hereafter have to venue or to convenience of forum.
        Any
        party to this Agreement may make service on another party by sending or
        delivering a copy of the process to the party to be served at the address
        and in
        the manner provided for the giving of notices in Section 11(a). Nothing in
        this
        Section 11(j), however, affects the right of any party to serve legal process
        in
        any other manner permitted by law.

       

      (k) Waiver
        of Jury Trial.
        Each
        of the parties knowingly, voluntarily and irrevocably waives, to the fullest
        extent permitted by law, all right to trial by jury in any action, proceeding
        or
        counterclaim (whether based on contract, tort or otherwise) arising out of
        or
        relating to this Agreement or the transactions contemplated by this Agreement
        or
        the actions of any party to this Agreement in negotiation, administration,
        performance or enforcement of this Agreement.

       

      (l) Counterparts.
        The
        parties may execute this Agreement in multiple counterparts, each of which
        constitutes an original as against the party that signed it, and all of which
        together constitute one agreement. This Agreement is effective upon delivery
        of
        one executed counterpart from each party to the other parties. The signatures
        of
        all parties need not appear on the same counterpart. The delivery of signed
        counterparts by facsimile or email transmission that includes a copy of the
        sending party’s signature is as effective as signing and delivering the
        counterpart in person.

       

      [The
        remainder of this page has been intentionally left blank.]

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

       

      The
        parties have executed and delivered this Agreement as of the date indicated
        in
        the first sentence of this Agreement. 

      

      
        	 	
                Ecolab
                  Inc.

                 

                By:   
                  Phillip
                  J.
                  Mason                                
                  

                Name:
                  Phillip J. Mason

                Title:
                  President, International Sector

              
	 	 
	 	
                Linkwell
                  Corporation

                By:   
                  /s/ Xuelian Bian                                
                  

                Name:
                  Xuelian Bian

                Title:
                  Chairman and CEO

              

      

      

      Signature
        Page to Registration Rights Agreement

       

      
        
           

        

        
          18NEITHER
        THIS DEBENTURE NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS CONVERTIBLE
        HAVE
        BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
        COMMISSION OF ANY STATE. THESE SECURITIES HAVE BEEN SOLD 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.

       

      NEOMEDIA
        TECHNOLOGIES, INC.

       

      Secured
        Convertible Debenture

       

      
        	
                Issuance
                  Date: May 30, 2008

              	
                Original
                  Principal Amount: $790,000

              
	
                No.
                  NEO-2008-3

              	 

      

      

      FOR
        VALUE RECEIVED,
        NEOMEDIA
        TECHNOLOGIES, INC., a Delaware corporation (the "Company"),
        hereby promises to pay to the order of YA GLOBAL INVESTMENTS, L.P f/k/a Cornell
        Capital Partners, L.P., or registered assigns (the "Holder")
        the
        amount set out above as the Original Principal Amount (as reduced pursuant
        to
        the terms hereof pursuant to redemption, conversion or otherwise, the
        "Principal")
        when
        due, upon the Maturity Date (as defined below), acceleration, redemption
        or
        otherwise (in each case in accordance with the terms hereof) and to pay interest
        ("Interest")
        on any
        outstanding Principal at the applicable Interest Rate from the date set out
        above as the Issuance Date (the "Issuance
        Date")
        until
        the same becomes due and payable as set forth below, or upon acceleration,
        conversion, redemption or otherwise (in each case in accordance with the
        terms
        hereof). This Secured Convertible Debenture (including all Secured Convertible
        Debentures issued in exchange, transfer or replacement hereof, this
        "Debenture")
        is one
        of an issue of Secured Convertible Debentures issued by the Company to the
        Holder (collectively, the "Debentures"
        and
        such other Convertible Debentures, the "Other
        Debentures").
        Certain capitalized terms used herein are defined in Section 17.

       

      (1) GENERAL
        TERMS

       

      (a) Payment
        of Principal.
        On the
        Maturity Date, the Company shall pay to the Holder an amount in cash
        representing all outstanding Principal, accrued and unpaid Interest. The
        "Maturity
        Date"
        shall
        be May 30, 2010, as may be extended at the option of the Holder (i) in the
        event
        that, and for so long as, an Event of Default (as defined below) shall have
        occurred and be continuing on the Maturity Date (as may be extended pursuant
        to
        this Section 1) or any event shall have occurred and be continuing on the
        Maturity Date (as may be extended pursuant to this Section 1) that with the
        passage of time and the failure to cure would result in an Event of Default.
        Other than as specifically permitted by this Debenture, the Company may not
        prepay or redeem any portion of the outstanding Principal without the prior
        written consent of the Holder.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (b) Interest.
        Interest shall accrue on the outstanding principal balance hereof at an annual
        rate equal to fifteen percent (15%) (“Interest
        Rate”).
        Interest shall be calculated on the basis of a 360-day year and the actual
        number of days elapsed, to the extent permitted by applicable law. Interest
        hereunder shall be paid quarterly in arrears, beginning on July 1, 2008,
        and on
        the Maturity Date (or sooner as provided herein) to the Holder or its assignee
        in whose name this Debenture is registered on the records of the Company
        regarding registration and transfers of Debentures at the option of the Company
        in cash. 

       

      (c) Security.
        The
        Debenture is secured by (i) a security interest in all of the assets of the
        Company and of each of the Company's subsidiaries pursuant to the Security
        Agreement dated August 24, 2007 (the “Security
        Agreement”)
        and
        (ii) a security interest in all of the patents, trademarks and copyrights
        of the
        Company and of each of the Company's subsidiaries pursuant to the Patent
        Security Agreement dated as of August 24, 2007 (the “Patent
        Security Agreement”)
        (the
        Security Agreement and the Patent Security Agreement are collectively referred
        to as the “Security
        Documents”).

       

      (2) EVENTS
        OF DEFAULT. 

       

      (a) An
        “Event
        of Default”,
        wherever used herein, means any one of the following events (whatever the
        reason
        and whether it shall be voluntary or involuntary or effected by operation
        of law
        or pursuant to any judgment, decree or order of any court, or any order,
        rule or
        regulation of any administrative or governmental body):

       

      (i) the
        Company's failure to pay to the Holder any amount of Principal, Interest,
        or
        other amounts when and as due under this Debenture (including, without
        limitation, the Company's failure to pay any redemption payments or amounts
        hereunder) or any other Transaction Document;

       

      (ii) The
        Company or any subsidiary of the Company shall commence, or there shall be
        commenced against the Company or any subsidiary of the Company under any
        applicable bankruptcy or insolvency laws as now or hereafter in effect or
        any
        successor thereto, or the Company or any subsidiary of the Company commences
        any
        other proceeding under any reorganization, arrangement, adjustment of debt,
        relief of debtors, dissolution, insolvency or liquidation or similar law
        of any
        jurisdiction whether now or hereafter in effect relating to the Company or
        any
        subsidiary of the Company or there is commenced against the Company or any
        subsidiary of the Company any such bankruptcy, insolvency or other proceeding
        which remains undismissed for a period of 61 days; or the Company or any
        subsidiary of the Company is adjudicated insolvent or bankrupt; or any order
        of
        relief or other order approving any such case or proceeding is entered; or
        the
        Company or any subsidiary of the Company suffers any appointment of any
        custodian, private or court appointed receiver or the like for it or any
        substantial part of its property which continues undischarged or unstayed
        for a
        period of sixty one (61) days; or the Company or any subsidiary of the Company
        makes a general assignment for the benefit of creditors; or the Company or
        any
        subsidiary of the Company shall fail to pay, or shall state that it is unable
        to
        pay, or shall be unable to pay, its debts generally as they become due; or
        the
        Company or any subsidiary of the Company shall call a meeting of its creditors
        with a view to arranging a composition, adjustment or restructuring of its
        debts; or the Company or any subsidiary of the Company shall by any act or
        failure to act expressly indicate its consent to, approval of or acquiescence
        in
        any of the foregoing; or any corporate or other action is taken by the Company
        or any subsidiary of the Company for the purpose of effecting any of the
        foregoing;

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      (iii) The
        Company or any subsidiary of the Company shall default in any of its obligations
        under any other debenture or any mortgage, credit agreement or other facility,
        indenture agreement, factoring agreement or other instrument under which
        there
        may be issued, or by which there may be secured or evidenced any indebtedness
        for borrowed money or money due under any long term leasing or factoring
        arrangement of the Company or any subsidiary of the Company in an amount
        exceeding $100,000, whether such indebtedness now exists or shall hereafter
        be
        created and such default shall result in such indebtedness becoming or being
        declared due and payable prior to the date on which it would otherwise become
        due and payable;

       

      (iv) If
        the
        Common Stock is quoted or listed for trading on any of the following and
        it
        ceases to be so quoted or listed for trading and shall not again be quoted
        or
        listed for trading on any Primary Market within five (5) Trading Days of
        such
        delisting: (a) the American Stock Exchange, (b) New York Stock Exchange,
        (c) the
        Nasdaq Global Market, (d) the Nasdaq Capital Market, or (e) the Nasdaq OTC
        Bulletin Board (“OTCBB”) (each, a “Primary Market”);

       

      (v) The
        Company or any subsidiary of the Company shall be a party to any Change of
        Control Transaction (as defined in Section 6) unless in connection with such
        Change of Control Transaction this Debenture is retired; 

       

      (vi) (RESERVED)

       

      (vii) The
        Company's (A) failure to cure a Conversion Failure by delivery of the required
        number of shares of Common Stock within five (5) Business Days after the
        applicable Conversion Failure or (B) notice, written or oral, to any holder
        of
        the Debentures, including by way of public announcement, at any time, of
        its
        intention not to comply with a request for conversion of any Debentures into
        shares of Common Stock that is tendered in accordance with the provisions
        of the
        Debentures, other than pursuant to Section 4(c);

       

      (viii) The
        Company shall fail for any reason to deliver the payment in cash pursuant
        to a
        Buy-In (as defined herein) within three (3) Business Days after such payment
        is
        due; 

       

      (ix) The
        Company shall fail to observe or perform any other covenant, agreement or
        warranty contained in, or otherwise commit any breach or default of any
        provision of this Debenture (except as may be covered by Section 2(a)(i)
        through
        2(a)(vii) hereof) or any Transaction Document (as defined in Section 17)
        which
        is not cured within the time prescribed.

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      (x) any
        Event
        of Default (as defined in the Other Debentures) occurs with respect to any
        Other
        Debentures, or with respect to any other debentures issued by the Company
        to the
        Holder.

       

      (b) During
        the time that any portion of this Debenture is outstanding, if any Event
        of
        Default has occurred, the full unpaid Principal amount of this Debenture,
        together with interest and other amounts owing in respect thereof, to the
        date
        of acceleration shall become at the Holder's election, immediately due and
        payable in cash; provided however, the Holder may request (but shall have
        no
        obligation to request) payment of such amounts in Common Stock of the Company.
        If an Event of Default (after giving effect to any specified cure period)
        occurs
        and for so long as such Event of Default remains uncured, the Interest Rate
        on
        this Debenture shall immediately become twenty-four percent (24%) per annum
        and
        shall remain at such increased interest rate until the applicable Event of
        Default is cured. Furthermore, in addition to any other remedies, the Holder
        shall have the right (but not the obligation) to convert this Debenture at
        any
        time after (x) an Event of Default or (y) the Maturity Date at the lower
        of the
        Conversion Price or the Company Conversion Price. The Holder need not provide
        and the Company hereby waives any presentment, demand, protest or other notice
        of any kind, (other than required notice of conversion) and the Holder may
        immediately and without expiration of any grace period enforce any and all
        of
        its rights and remedies hereunder and all other remedies available to it
        under
        applicable law. Such declaration may be rescinded and annulled by Holder
        at any
        time prior to payment hereunder. No such rescission or annulment shall affect
        any subsequent Event of Default or impair any right consequent thereon.

       

      (3) COMPANY
        REDEMPTIONS 

       

      The
        Company shall be permitted to prepay this Debenture, in whole or in part,
        at any
        time. In order to make a redemption pursuant to this Section, the Company
        shall
        first provide written notice to the Holder of its intention to make a redemption
        (the “Redemption
        Notice”)
        setting forth the amount of Principal it desires to redeem (the “Redemption
        Amount”).
        The
        Company shall pay an amount equal to the principal amount being redeemed
        plus a
        redemption premium (“Redemption
        Premium”)
        equal
        to twenty percent (20%) of the Principal amount being redeemed, and accrued
        Interest, (collectively referred to as the “Company
        Additional Redemption
        Amount”).
        In
        order to make a redemption pursuant to this Section, the Company shall first
        provide written notice to the Holder of its intention to make a redemption
        (the
“Redemption
        Notice”)
        setting forth the amount of Principal it desires to redeem. After receipt
        of the
        Redemption Notice the Holder shall have five (5) Business Days to elect to
        convert all or any portion of this Debenture, subject to the limitations
        set
        forth in Section 4(b). On the sixth (6th) Business Day after the Redemption
        Notice, the Company shall deliver to the Holder the Company Additional
        Redemption Amount with respect to the Principal amount redeemed after giving
        effect to conversions effected during the five (5) Business Day
        period.

       

      (4) CONVERSION
        OF DEBENTURE. This
        Debenture shall be convertible into shares of the Company's Common Stock,
        on the
        terms and conditions set forth in this Section 4.

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      (a) Conversion
        Right.
        Subject
        to the provisions of Section 4(c), at any time or times on or after the Issuance
        Date, the Holder shall be entitled to convert any portion of the outstanding
        and
        unpaid Conversion Amount (as defined below) into fully paid and nonassessable
        shares of Common Stock in accordance with Section 4(b), at the Conversion
        Rate
        (as defined below). The number of shares of Common Stock issuable upon
        conversion of any Conversion Amount pursuant to this Section 4(a) shall be
        determined by dividing (x) such Conversion Amount by (y) the Conversion Price
        (the "Conversion
        Rate").
        The
        Company shall not issue any fraction of a share of Common Stock upon any
        conversion. If the issuance would result in the issuance of a fraction of
        a
        share of Common Stock, the Company shall round such fraction of a share of
        Common Stock up to the nearest whole share. The Company shall pay any and
        all
        transfer, stamp and similar taxes that may be payable with respect to the
        issuance and delivery of Common Stock upon conversion of any Conversion Amount.
        

       

      (i) "Conversion
        Amount"
        means
        the portion of the Principal and accrued Interest to be converted, redeemed
        or
        otherwise with respect to which this determination is being made.

       

      (ii) "Conversion
        Price"
        means,
        as of any Conversion Date (as defined below) or other date of determination,
        the
        lesser of (a) $0.01 (the “Fixed
        Conversion Price”),
        subject to adjustment as provided herein, or (b) eighty percent (80%) of
        the lowest Volume Weighted Average Price during the ten (10) Trading Days
        immediately preceding the Conversion Date (the “Market
        Conversion Price”).

       

      (b) Mechanics
        of Conversion.

       

      (i) Optional
        Conversion.
        To
        convert any Conversion Amount into shares of Common Stock on any date (a
        "Conversion
        Date"),
        the
        Holder shall (A) transmit by facsimile (or otherwise deliver), for receipt
        on or
        prior to 11:59 p.m., New York Time, on such date, a copy of an executed notice
        of conversion in the form attached hereto as Exhibit
        I
        (the
        "Conversion
        Notice")
        to the
        Company and (B) if required by Section 4(b)(iv), surrender this Debenture
        to a
        nationally recognized overnight delivery service for delivery to the Company
        (or
        an indemnification undertaking reasonably satisfactory to the Company with
        respect to this Debenture in the case of its loss, theft or destruction).
        On or
        before the third Business Day following the date of receipt of a Conversion
        Notice (the "Share
        Delivery Date"),
        the
        Company shall (X) if legends are not required to be placed on certificates
        of
        Common Stock pursuant to any agreements between the Company and the Holder
        and
        provided that the Transfer Agent is participating in the Depository Trust
        Company's ("DTC")
        Fast
        Automated Securities Transfer Program, credit such aggregate number of shares
        of
        Common Stock to which the Holder shall be entitled to the Holder's or its
        designee's balance account with DTC through its Deposit Withdrawal Agent
        Commission system or (Y) if the Transfer Agent is not participating in the
        DTC
        Fast Automated Securities Transfer Program, issue and deliver to the address
        as
        specified in the Conversion Notice, a certificate, registered in the name
        of the
        Holder or its designee, for the number of shares of Common Stock to which
        the
        Holder shall be entitled which certificates shall not bear any restrictive
        legends unless required pursuant to any agreement between the Company and
        the
        Holder. If this Debenture is physically surrendered for conversion and the
        outstanding Principal of this Debenture is greater than the Principal portion
        of
        the Conversion Amount being converted, then the Company shall as soon as
        practicable and in no event later than three (3) Business Days after receipt
        of
        this Debenture and at its own expense, issue and deliver to the holder a
        new
        Debenture representing the outstanding Principal not converted. The Person
        or
        Persons entitled to receive the shares of Common Stock issuable upon a
        conversion of this Debenture shall be treated for all purposes as the record
        holder or holders of such shares of Common Stock upon the transmission of
        a
        Conversion Notice. 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      (ii) Company's
        Failure to Timely Convert.
        If
        within three (3) Trading Days after the Company's receipt of the facsimile
        copy
        of a Conversion Notice the Company shall fail to issue and deliver a certificate
        to the Holder or credit the Holder's balance account with DTC for the number
        of
        shares of Common Stock to which the Holder is entitled upon such holder's
        conversion of any Conversion Amount (a "Conversion
        Failure"),
        and
        if on or after such Trading Day the Holder purchases (in an open market
        transaction or otherwise) Common Stock to deliver in satisfaction of a sale
        by
        the Holder of Common Stock issuable upon such conversion that the Holder
        anticipated receiving from the Company (a "Buy-In"),
        then
        the Company shall, within three (3) Business Days after the Holder's request
        and
        in the Holder's discretion, either (i) pay cash to the Holder in an amount
        equal
        to the Holder's total purchase price (including brokerage commissions and
        other
        out of pocket expenses, if any) for the shares of Common Stock so purchased
        (the
"Buy-In
        Price"),
        at
        which point the Company's obligation to deliver such certificate (and to
        issue
        such Common Stock) shall terminate, or (ii) promptly honor its obligation
        to
        deliver to the Holder a certificate or certificates representing such Common
        Stock and pay cash to the Holder in an amount equal to the excess (if any)
        of
        the Buy-In Price over the product of (A) such number of shares of Common
        Stock,
        times (B) the Closing Bid Price on the Conversion Date.

       

      (iii) Book-Entry.
        Notwithstanding anything to the contrary set forth herein, upon conversion
        of
        any portion of this Debenture in accordance with the terms hereof, the Holder
        shall not be required to physically surrender this Debenture to the Company
        unless (A) the full Conversion Amount represented by this Debenture is being
        converted or (B) the Holder has provided the Company with prior written notice
        (which notice may be included in a Conversion Notice) requesting reissuance
        of
        this Debenture upon physical surrender of this Debenture. The Holder and
        the
        Company shall maintain records showing the Principal and Interest converted
        and
        the dates of such conversions or shall use such other method, reasonably
        satisfactory to the Holder and the Company, so as not to require physical
        surrender of this Debenture upon conversion.

       

      (c) Limitations
        on Conversions.

       

      (i) Beneficial
        Ownership.
        The
        Company shall not effect any conversions of this Debenture and the Holder
        shall
        not have the right to convert any portion of this Debenture or receive shares
        of
        Common Stock as payment of interest hereunder to the extent that after giving
        effect to such conversion or receipt of such interest payment, the Holder,
        together with any affiliate thereof, would beneficially own (as determined
        in
        accordance with Section 13(d) of the Exchange Act and the rules promulgated
        thereunder) in excess of 4.99% of the number of shares of Common Stock
        outstanding immediately after giving effect to such conversion or receipt
        of
        shares as payment of interest. Since the Holder will not be obligated to
        report
        to the Company the number of shares of Common Stock it may hold at the time
        of a
        conversion hereunder, unless the conversion at issue would result in the
        issuance of shares of Common Stock in excess of 4.99% of the then outstanding
        shares of Common Stock without regard to any other shares which may be
        beneficially owned by the Holder or an affiliate thereof, the Holder shall
        have
        the authority and obligation to determine whether the restriction contained
        in
        this Section will limit any particular conversion hereunder and to the extent
        that the Holder determines that the limitation contained in this Section
        applies, the determination of which portion of the principal amount of this
        Debenture is convertible shall be the responsibility and obligation of the
        Holder. If the Holder has delivered a Conversion Notice for a principal amount
        of this Debenture that, without regard to any other shares that the Holder
        or
        its affiliates may beneficially own, would result in the issuance in excess
        of
        the permitted amount hereunder, the Company shall notify the Holder of this
        fact
        and shall honor the conversion for the maximum principal amount permitted
        to be
        converted on such Conversion Date in accordance with Section 4(a) and, any
        principal amount tendered for conversion in excess of the permitted amount
        hereunder shall remain outstanding under this Debenture. The provisions of
        this
        Section may be waived by a Holder (but only as to itself and not to any other
        Holder) upon not less than 65 days prior notice to the Company. Other Holders
        shall be unaffected by any such waiver.

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      (d) Other
        Provisions.

       

      (i) The
        Company shall at all times reserve and keep available out of its authorized
        Common Stock the full number of shares of Common Stock issuable upon conversion
        of all outstanding amounts under this Debenture; and within three (3) Business
        Days following the receipt by the Company of a Holder's notice that such
        minimum
        number of Underlying Shares is not so reserved, the Company shall promptly
        reserve a sufficient number of shares of Common Stock to comply with such
        requirement.

       

      (ii) All
        calculations under this Section 4 shall be rounded to the nearest $0.0001
        or
        whole share.

       

      (iii) The
        Company covenants that it will at all times reserve and keep available out
        of
        its authorized and unissued shares of Common Stock solely for the purpose
        of
        issuance upon conversion of this Debenture and payment of interest on this
        Debenture, each as herein provided, free from preemptive rights or any other
        actual contingent purchase rights of persons other than the Holder, not less
        than such number of shares of the Common Stock as shall (subject to any
        additional requirements of the Company as to reservation of such shares set
        forth in this Debenture or in the Transaction Documents) be issuable (taking
        into account the adjustments and restrictions set forth herein) upon the
        conversion of the outstanding principal amount of this Debenture and payment
        of
        interest hereunder. The Company covenants that all shares of Common Stock
        that
        shall be so issuable shall, upon issue, be duly and validly authorized, issued
        and fully paid, nonassessable and, if the Underlying Shares Registration
        Statement has been declared effective under the Securities Act, registered
        for
        public sale in accordance with such Underlying Shares Registration
        Statement.

       

      (iv) Nothing
        herein shall limit a Holder's right to pursue actual damages or declare an
        Event
        of Default pursuant to Section 2 herein for the Company 's failure to deliver
        certificates representing shares of Common Stock upon conversion within the
        period specified herein and such Holder shall have the right to pursue all
        remedies available to it at law or in equity including, without limitation,
        a
        decree of specific performance and/or injunctive relief, in each case without
        the need to post a bond or provide other security. The exercise of any such
        rights shall not prohibit the Holder from seeking to enforce damages pursuant
        to
        any other Section hereof or under applicable law. 

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      (5) Adjustments
        to Conversion Price

       

      (a) Adjustment
        of Conversion Price upon Issuance of Common Stock.
        If the
        Company, at any time while this Debenture is outstanding, issues or sells,
        or in
        accordance with this Section 5(a) is deemed to have issued or sold, any shares
        of Common Stock, excluding shares of Common Stock deemed to have been issued
        or
        sold by the Company in connection with any Excluded Securities, for a
        consideration per share (the “New
        Issuance Price”)
        less
        than a price equal to the Conversion Price in effect immediately prior to
        such
        issue or sale (such price the "Applicable
        Price")
        (the
        foregoing a "Dilutive
        Issuance"),
        then
        immediately after such Dilutive Issuance the Conversion Price then in effect
        shall be reduced to an amount equal to the New Issuance Price. For purposes
        of
        determining the adjusted Conversion Price under this Section 5(a), the following
        shall be applicable:

       

      (i) Issuance
        of Options.
        If the
        Company in any manner grants or sells any Options and the lowest price per
        share
        for which one share of Common Stock is issuable upon the exercise of any
        such
        Option or upon conversion or exchange or exercise of any Convertible Securities
        issuable upon exercise of such Option is less than the Applicable Price,
        then
        such share of Common Stock shall be deemed to be outstanding and to have
        been
        issued and sold by the Company at the time of the granting or sale of such
        Option for such price per share. For purposes of this Section, the "lowest
        price
        per share for which one share of Common Stock is issuable upon the exercise
        of
        any such Option or upon conversion or exchange or exercise of any Convertible
        Securities issuable upon exercise of such Option" shall be equal to the sum
        of
        the lowest amounts of consideration (if any) received or receivable by the
        Company with respect to any one share of Common Stock upon granting or sale
        of
        the Option, upon exercise of the Option and upon conversion or exchange or
        exercise of any Convertible Security issuable upon exercise of such Option.
        No
        further adjustment of the Conversion Price shall be made upon the actual
        issuance of such share of Common Stock or of such Convertible Securities
        upon
        the exercise of such Options or upon the actual issuance of such Common Stock
        upon conversion or exchange or exercise of such Convertible
        Securities.

       

      (ii) Issuance
        of Convertible Securities.
        If the
        Company in any manner issues or sells any Convertible Securities and the
        lowest
        price per share for which one share of Common Stock is issuable upon such
        conversion or exchange or exercise thereof is less than the Applicable Price,
        then such share of Common Stock shall be deemed to be outstanding and to
        have
        been issued and sold by the Company at the time of the issuance or sale of
        such
        Convertible Securities for such price per share. For the purposes of this
        Section, the "lowest price per share for which one share of Common Stock
        is
        issuable upon such conversion or exchange or exercise" shall be equal to
        the sum
        of the lowest amounts of consideration (if any) received or receivable by
        the
        Company with respect to any one share of Common Stock upon the issuance or
        sale
        of the Convertible Security and upon the conversion or exchange or exercise
        of
        such Convertible Security. No further adjustment of the Conversion Price
        shall
        be made upon the actual issuance of such share of Common Stock upon conversion
        or exchange or exercise of such Convertible Securities, and if any such issue or
        sale of such Convertible Securities is made upon exercise of any Options
        for
        which adjustment of the Conversion Price had been or are to be made pursuant
        to
        other provisions of this Section, no further adjustment of the Conversion
        Price
        shall be made by reason of such issue or sale.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      (iii) Change
        in Option Price or Rate of Conversion.
        If the
        purchase price provided for in any Options, the additional consideration,
        if
        any, payable upon the issue, conversion, exchange or exercise of any Convertible
        Securities, or the rate at which any Convertible Securities are convertible
        into
        or exchangeable or exercisable for Common Stock changes at any time, the
        Conversion Price in effect at the time of such change shall be adjusted to
        the
        Conversion Price which would have been in effect at such time had such Options
        or Convertible Securities provided for such changed purchase price, additional
        consideration or changed conversion rate, as the case may be, at the time
        initially granted, issued or sold. For purposes of this Section, if the terms
        of
        any Option or Convertible Security that was outstanding as of the Issuance
        Date
        are changed in the manner described in the immediately preceding sentence,
        then
        such Option or Convertible Security and the Common Stock deemed issuable
        upon
        exercise, conversion or exchange thereof shall be deemed to have been issued
        as
        of the date of such change. No adjustment shall be made if such adjustment
        would
        result in an increase of the Conversion Price then in effect.

       

      (iv) Calculation
        of Consideration Received.
        In case
        any Option is issued in connection with the issue or sale of other securities
        of
        the Company, together comprising one integrated transaction in which no specific
        consideration is allocated to such Options by the parties thereto, the Options
        will be deemed to have been issued for the difference of (x) the aggregate
        fair
        market value of such Options and other securities issued or sold in such
        integrated transaction, less (y) the fair market value of the securities
        other
        than such Option, issued or sold in such transaction and the other securities
        issued or sold in such integrated transaction will be deemed to have been
        issued
        or sold for the balance of the consideration received by the Company. If
        any
        Common Stock, Options or Convertible Securities are issued or sold or deemed
        to
        have been issued or sold for cash, the consideration received therefor will
        be
        deemed to be the gross amount raised by the Company; provided, however, that
        such gross amount is not greater than 110% of the net amount received by
        the
        Company therefor. If any Common Stock, Options or Convertible Securities
        are
        issued or sold for a consideration other than cash, the amount of the
        consideration other than cash received by the Company will be the fair value
        of
        such consideration, except where such consideration consists of securities,
        in
        which case the amount of consideration received by the Company will be the
        Closing Bid Price of such securities on the date of receipt. If any Common
        Stock, Options or Convertible Securities are issued to the owners of the
        non-surviving entity in connection with any merger in which the Company is
        the
        surviving entity, the amount of consideration therefor will be deemed to
        be the
        fair value of such portion of the net assets and business of the non-surviving
        entity as is attributable to such Common Stock, Options or Convertible
        Securities, as the case may be. The fair value of any consideration other
        than
        cash or securities will be determined jointly by the Company and the Holder.
        If
        such parties are unable to reach agreement within ten (10) days after the
        occurrence of an event requiring valuation (the "Valuation
        Event"),
        the
        fair value of such consideration will be determined within five (5) Business
        Days after the tenth (10th)
        day
        following the Valuation Event by an independent, reputable appraiser jointly
        selected by the Company and the Holder. The determination of such appraiser
        shall be deemed binding upon all parties absent manifest error and the fees
        and
        expenses of such appraiser shall be borne by the Company.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      (v) Record
        Date.
        If the
        Company takes a record of the holders of Common Stock for the purpose of
        entitling them (A) to receive a dividend or other distribution payable in
        Common
        Stock, Options or in Convertible Securities or (B) to subscribe for or purchase
        Common Stock, Options or Convertible Securities, then such record date will
        be
        deemed to be the date of the issue or sale of the Common Stock deemed to
        have
        been issued or sold upon the declaration of such dividend or the making of
        such
        other distribution or the date of the granting of such right of subscription
        or
        purchase, as the case may be.

       

      (b) Adjustment
        of Conversion Price upon Subdivision or Combination of Common
        Stock.
        If the
        Company, at any time while this Debenture is outstanding, shall (a) pay a
        stock dividend or otherwise make a distribution or distributions on shares
        of
        its Common Stock or any other equity or equity equivalent securities payable
        in
        shares of Common Stock, (b) subdivide outstanding shares of Common Stock
        into a
        larger number of shares, (c) combine (including by way of reverse stock split)
        outstanding shares of Common Stock into a smaller number of shares, or (d)
        issue
        by reclassification of shares of the Common Stock any shares of capital stock
        of
        the Company, then the Conversion Price shall be multiplied by a fraction
        of
        which the numerator shall be the number of shares of Common Stock (excluding
        treasury shares, if any) outstanding before such event and of which the
        denominator shall be the number of shares of Common Stock outstanding after
        such
        event. Any adjustment made pursuant to this Section shall become effective
        immediately after the record date for the determination of stockholders entitled
        to receive such dividend or distribution and shall become effective immediately
        after the effective date in the case of a subdivision, combination or
        re-classification.

       

      (c) Purchase
        Rights.
        If at
        any time the Company grants, issues or sells any Options, Convertible Securities
        or rights to purchase stock, warrants, securities or other property pro rata
        to
        the record holders of any class of Common Stock (the "Purchase
        Rights"),
        then
        the Holder will be entitled to acquire, upon the terms applicable to such
        Purchase Rights, the aggregate Purchase Rights which the Holder could have
        acquired if the Holder had held the number of shares of Common Stock acquirable
        upon complete conversion of this Debenture (without taking into account any
        limitations or restrictions on the convertibility of this Debenture) immediately
        before the date on which a record is taken for the grant, issuance or sale
        of
        such Purchase Rights, or, if no such record is taken, the date as of which
        the
        record holders of Common Stock are to be determined for the grant, issue
        or sale
        of such Purchase Rights.

       

      (d) Other
        Events.
        If any
        event occurs of the type contemplated by the provisions of this Section 4
        but
        not expressly provided for by such provisions (including, without limitation,
        the granting of stock appreciation rights, phantom stock rights or other
        rights
        with equity features), then the Company's Board of Directors will make an
        appropriate adjustment in the Conversion Price so as to protect the rights
        of
        the Holder under this Debenture; provided that no such adjustment will increase
        the Conversion Price as otherwise determined pursuant to this Section
        5.

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      (e) Other
        Corporate Events.
        In
        addition to and not in substitution for any other rights hereunder, prior
        to the
        consummation of any Fundamental Transaction pursuant to which holders of
        shares
        of Common Stock are entitled to receive securities or other assets with respect
        to or in exchange for shares of Common Stock (a "Corporate
        Event"),
        the
        Company shall make appropriate provision to insure that the Holder will
        thereafter have the right to receive upon a conversion of this Debenture,
        at the
        Holder's option, (i) in addition to the shares of Common Stock receivable
        upon
        such conversion, such securities or other assets to which the Holder would
        have
        been entitled with respect to such shares of Common Stock had such shares
        of
        Common Stock been held by the Holder upon the consummation of such Corporate
        Event (without taking into account any limitations or restrictions on the
        convertibility of this Debenture) or (ii) in lieu of the shares of Common
        Stock
        otherwise receivable upon such conversion, such securities or other assets
        received by the holders of shares of Common Stock in connection with the
        consummation of such Corporate Event in such amounts as the Holder would
        have
        been entitled to receive had this Debenture initially been issued with
        conversion rights for the form of such consideration (as opposed to shares
        of
        Common Stock) at a conversion rate for such consideration commensurate with
        the
        Conversion Rate. Provision made pursuant to the preceding sentence shall
        be in a
        form and substance satisfactory to the Required Holders. The provisions of
        this
        Section shall apply similarly and equally to successive Corporate Events
        and
        shall be applied without regard to any limitations on the conversion or
        redemption of this Debenture.

       

      (f) Whenever
        the Conversion Price is adjusted pursuant to Section 5 hereof, the Company
        shall
        promptly mail to the Holder a notice setting forth the Conversion Price after
        such adjustment and setting forth a brief statement of the facts requiring
        such
        adjustment.

       

      (g) In
        case
        of any (1) merger or consolidation of the Company or any subsidiary of the
        Company with or into another Person, or (2) sale by the Company or any
        subsidiary of the Company of more than one-half of the assets of the Company
        in
        one or a series of related transactions, a Holder shall have the right to
        (A)
        declare the entire amount due and owing under the Debenture (A) exercise
        any
        rights under Section 2(b), (B) convert the aggregate amount of this Debenture
        then outstanding into the shares of stock and other securities, cash and
        property receivable upon or deemed to be held by holders of Common Stock
        following such merger, consolidation or sale, and such Holder shall be entitled
        upon such event or series of related events to receive such amount of
        securities, cash and property as the shares of Common Stock into which such
        aggregate principal amount of this Debenture could have been converted
        immediately prior to such merger, consolidation or sales would have been
        entitled, or (C) in the case of a merger or consolidation, require the surviving
        entity to issue to the Holder a convertible Debenture with a principal amount
        equal to the aggregate principal amount of this Debenture then held by such
        Holder, plus all accrued and unpaid interest and other amounts owing thereon,
        which such newly issued convertible Debenture shall have terms identical
        (including with respect to conversion) to the terms of this Debenture, and
        shall
        be entitled to all of the rights and privileges of the Holder of this Debenture
        set forth herein and the agreements pursuant to which this Debentures were
        issued. In the case of clause (C), the conversion price applicable for the
        newly
        issued shares of convertible preferred stock or convertible Debentures shall
        be
        based upon the amount of securities, cash and property that each share of
        Common
        Stock would receive in such transaction and the Conversion Price in effect
        immediately prior to the effectiveness or closing date for such transaction.
        The
        terms of any such merger, sale or consolidation shall include such terms
        so as
        to continue to give the Holder the right to receive the securities, cash
        and
        property set forth in this Section upon any conversion or redemption following
        such event. This provision shall similarly apply to successive such
        events.

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      (6) REISSUANCE
        OF THIS DEBENTURE.

       

      (a) Transfer.
        If this
        Debenture is to be transferred, the Holder shall surrender this Debenture
        to the
        Company, whereupon the Company will forthwith issue and deliver upon the
        order
        of the Holder a new Debenture (in accordance with Section 6(d)), registered
        in
        the name of the registered transferee or assignee, representing the outstanding
        Principal being transferred by the Holder and, if less then the entire
        outstanding Principal is being transferred, a new Debenture (in accordance
        with
        Section 6(d)) to the Holder representing the outstanding Principal not being
        transferred. The Holder and any assignee, by acceptance of this Debenture,
        acknowledge and agree that, by reason of the provisions of Section 4(b)(iii)
        following conversion or redemption of any portion of this Debenture, the
        outstanding Principal represented by this Debenture may be less than the
        Principal stated on the face of this Debenture.

       

      (b) Lost,
        Stolen or Mutilated Debenture.
        Upon
        receipt by the Company of evidence reasonably satisfactory to the Company
        of the
        loss, theft, destruction or mutilation of this Debenture, and, in the case
        of
        loss, theft or destruction, of any indemnification undertaking by the Holder
        to
        the Company in customary form and, in the case of mutilation, upon surrender
        and
        cancellation of this Debenture, the Company shall execute and deliver to
        the
        Holder a new Debenture (in accordance with Section 6(d)) representing the
        outstanding Principal.

       

      (c) Debenture
        Exchangeable for Different Denominations.
        This
        Debenture is exchangeable, upon the surrender hereof by the Holder at the
        principal office of the Company, for a new Debenture or Debentures (in
        accordance with Section 6(d)) representing in the aggregate the outstanding
        Principal of this Debenture, and each such new Debenture will represent such
        portion of such outstanding Principal as is designated by the Holder at the
        time
        of such surrender.

       

      (d) Issuance
        of New Debentures.
        Whenever the Company is required to issue a new Debenture pursuant to the
        terms
        of this Debenture, such new Debenture (i) shall be of like tenor with this
        Debenture, (ii) shall represent, as indicated on the face of such new Debenture,
        the Principal remaining outstanding (or in the case of a new Debenture being
        issued pursuant to Section 6(a) or Section 6(c), the Principal designated
        by the
        Holder which, when added to the principal represented by the other new
        Debentures issued in connection with such issuance, does not exceed the
        Principal remaining outstanding under this Debenture immediately prior to
        such
        issuance of new Debentures), (iii) shall have an issuance date, as indicated
        on
        the face of such new Debenture, which is the same as the Issuance Date of
        this
        Debenture, (iv) shall have the same rights and conditions as this Debenture,
        and
        (v) shall represent accrued and unpaid Interest from the Issuance
        Date.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      (7) NOTICES. Any
        notices, consents, waivers or other communications required or permitted
        to be
        given under the terms hereof must be in writing and will be deemed to have
        been
        delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
        when
        sent by facsimile (provided confirmation of transmission is mechanically
        or
        electronically generated and kept on file by the sending party); or (iii)
        one
        (1) Trading Day after deposit with a nationally recognized overnight delivery
        service, in each case properly addressed to the party to receive the same.
        The
        addresses and facsimile numbers for such communications shall be:

      

      
        	
                If
                  to the Company, to:

              	
                Neomedia
                  Technologies, Inc.

              
	 	
                Two
                  Concourse Parkway, Suite 500

              
	 	
                Atlanta,
                  GA 30328

              
	 	
                Attention:

              	
                Frank
                  Pazera

              
	 	
                Telephone:

              	
                (678)
                  638-0460

              
	 	
                Facsimile:

              	
                (678)
                  638-0467

              
	 	 
	
                With
                  a copy to: 

              	
                Kirkpatrick
                  & Lockhart Preston Gates Ellis LLP

              
	 	
                200
                  South Biscayne Boulevard – Suite 3900

              
	 	
                Miami,
                  FL 33131-2399

              
	 	
                Attention:

              	
                Clayton
                  E. Parker, Esq.

              
	 	
                Telephone:

              	
                (305)
                  539-3300

              
	 	
                Facsimile:

              	
                (305)
                  358-7095

              
	 	 	 
	
                If
                  to the Holder:

              	
                YA
                  Global Investments, LP

              
	 	
                101
                  Hudson Street, Suite 3700

              
	 	
                Jersey
                  City, NJ 07303

              
	 	
                Attention:

              	
                Mark
                  Angelo

              
	 	
                Telephone:

              	
                (201)
                  985-8300

              
	 	 
	
                With
                  a copy to:

              	
                David
                  Gonzalez, Esq. 

              
	 	
                101
                  Hudson Street – Suite 3700

              
	 	
                Jersey
                  City, NJ 07302

              
	 	
                Telephone:

              	
                (201)
                  985-8300

              
	 	
                Facsimile:

              	
                (201)
                  985-8266

              

      

      

      or
        at
        such other address and/or facsimile number and/or to the attention of such
        other
        person as the recipient party has specified by written notice given to each
        other party three (3) Business Days prior to the effectiveness of such change.
        Written confirmation of receipt (i) given by the recipient of such notice,
        consent, waiver or other communication, (ii) mechanically or electronically
        generated by the sender's facsimile machine containing the time, date, recipient
        facsimile number and an image of the first page of such transmission or (iii)
        provided by a nationally recognized overnight delivery service, shall be
        rebuttable evidence of personal service, receipt by facsimile or receipt
        from a
        nationally recognized overnight delivery service in accordance with clause
        (i),
        (ii) or (iii) above, respectively.

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      (8) Except
        as
        expressly provided herein, no provision of this Debenture shall alter or
        impair
        the obligations of the Company, which are absolute and unconditional, to
        pay the
        principal of, interest and other charges (if any) on, this Debenture at the
        time, place, and rate, and in the coin or currency, herein prescribed. This
        Debenture is a direct obligation of the Company. As long as this Debenture
        is
        outstanding, the Company shall not and shall cause their subsidiaries not
        to,
        without the consent of the Holder, (i) amend its certificate of incorporation,
        bylaws or other charter documents so as to adversely affect any rights of
        the
        Holder; (ii) repay, repurchase or offer to repay, repurchase or otherwise
        acquire shares of its Common Stock or other equity securities other than
        as to
        the Underlying Shares to the extent permitted or required under the Transaction
        Documents; or (iii) enter into any agreement with respect to any of the
        foregoing. 

       

      (9) This
        Debenture shall not entitle the Holder to any of the rights of a stockholder
        of
        the Company, including without limitation, the right to vote, to receive
        dividends and other distributions, or to receive any notice of, or to attend,
        meetings of stockholders or any other proceedings of the Company, unless
        and to
        the extent converted into shares of Common Stock in accordance with the terms
        hereof.

       

      (10) No
        indebtedness of the Company is senior to this Debenture in right of payment,
        whether with respect to interest, damages or upon liquidation or dissolution
        or
        otherwise. Without the Holder’s consent, the Company will not and will not
        permit any of their subsidiaries to, directly or indirectly, enter into,
        create,
        incur, assume or suffer to exist any indebtedness of any kind, on or with
        respect to any of its property or assets now owned or hereafter acquired
        or any
        interest therein or any income or profits there from that is senior in any
        respect to the obligations of the Company under this Debenture.

       

      (11) This
        Debenture shall be governed by and construed in accordance with the laws
        of the
        State of New Jersey, without giving effect to conflicts of laws thereof.
        Each of
        the parties consents to the jurisdiction of the Superior Courts of the State
        of
        New Jersey sitting in Hudson County, New Jersey and the U.S. District Court
        for the District of New Jersey sitting in Newark, New Jersey in connection
        with
        any dispute arising under this Debenture and hereby waives, to the maximum
        extent permitted by law, any objection, including any objection based on
        forum
        non conveniens to the bringing of any such proceeding in such jurisdictions.
        

       

      (12) If
        the
        Company fails to strictly comply with the terms of this Debenture, then the
        Company shall reimburse the Holder promptly for all fees, costs and expenses,
        including, without limitation, attorneys’ fees and expenses incurred by the
        Holder in any action in connection with this Debenture, including, without
        limitation, those incurred: (i) during any workout, attempted workout, and/or
        in
        connection with the rendering of legal advice as to the Holder’s rights,
        remedies and obligations, (ii) collecting any sums which become due to the
        Holder, (iii) defending or prosecuting any proceeding or any counterclaim
        to any
        proceeding or appeal; or (iv) the protection, preservation or enforcement
        of any
        rights or remedies of the Holder.

       

      (13) Any
        waiver by the Holder of a breach of any provision of this Debenture shall
        not
        operate as or be construed to be a waiver of any other breach of such provision
        or of any breach of any other provision of this Debenture. The failure of
        the
        Holder to insist upon strict adherence to any term of this Debenture on one
        or
        more occasions shall not be considered a waiver or deprive that party of
        the
        right thereafter to insist upon strict adherence to that term or any other
        term
        of this Debenture. Any waiver must be in writing.

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      (14) If
        any
        provision of this Debenture is invalid, illegal or unenforceable, the balance
        of
        this Debenture shall remain in effect, and if any provision is inapplicable
        to
        any person or circumstance, it shall nevertheless remain applicable to all
        other
        persons and circumstances. If it shall be found that any interest or other
        amount deemed interest due hereunder shall violate applicable laws governing
        usury, the applicable rate of interest due hereunder shall automatically
        be
        lowered to equal the maximum permitted rate of interest. The Company covenants
        (to the extent that it may lawfully do so) that it shall not at any time
        insist
        upon, plead, or in any manner whatsoever claim or take the benefit or advantage
        of, any stay, extension or usury law or other law which would prohibit or
        forgive the Company from paying all or any portion of the principal of or
        interest on this Debenture as contemplated herein, wherever enacted, now
        or at
        any time hereafter in force, or which may affect the covenants or the
        performance of this indenture, and the Company (to the extent it may lawfully
        do
        so) hereby expressly waives all benefits or advantage of any such law, and
        covenants that it will not, by resort to any such law, hinder, delay or impeded
        the execution of any power herein granted to the Holder, but will suffer
        and
        permit the execution of every such as though no such law has been
        enacted.

       

      (15) Whenever
        any payment or other obligation hereunder shall be due on a day other than
        a
        Business Day, such payment shall be made on the next succeeding Business
        Day.

       

      (16) THE
        PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY
        OF
        THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON
        OR
        ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION
        DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
        VERBAL
        OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT
        FOR
        THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.

       

      (17) CERTAIN
        DEFINITIONS  For
        purposes of this Debenture, the following terms shall have the following
        meanings:

       

      (a) “Approved
        Stock Plan”
means
        a
        stock option plan that has been approved by the Board of Directors of the
        Company, pursuant to which the Company’s securities may be issued only to any
        employee, officer, or director for services provided to the
        Company.

       

      (b) "Bloomberg"
        means
        Bloomberg Financial Markets.

       

      (c) “Business
        Day”
means
        any day except Saturday, Sunday and any day which shall be a federal legal
        holiday in the United States or a day on which banking institutions are
        authorized or required by law or other government action to close.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      (d) “Change
        of Control Transaction”
means
        the occurrence of (a) an acquisition after the date hereof by an individual
        or
        legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the
        Exchange Act) of effective control (whether through legal or beneficial
        ownership of capital stock of the Company, by contract or otherwise) of in
        excess of fifty percent (50%) of the voting securities of the Company (except
        that the acquisition of voting securities by the Holder or any other current
        holder of convertible securities of the Company shall not constitute a Change
        of
        Control Transaction for purposes hereof), (b) a replacement at one time or
        over
        time of more than one-half of the members of the board of directors of the
        Company which is not approved by a majority of those individuals who are
        members
        of the board of directors on the date hereof (or by those individuals who
        are
        serving as members of the board of directors on any date whose nomination
        to the
        board of directors was approved by a majority of the members of the board
        of
        directors who are members on the date hereof), (c) the merger, consolidation
        or
        sale of fifty percent (50%) or more of the assets of the Company or any
        subsidiary of the Company in one or a series of related transactions with
        or
        into another entity, or (d) the execution by the Company of an agreement
        to
        which the Company is a party or by which it is bound, providing for any of
        the
        events set forth above in (a), (b) or (c).

       

      (e) “Closing
        Bid Price”
means
        the price per share in the last reported trade of the Common Stock on a Primary
        Market or on the exchange which the Common Stock is then listed as quoted
        by
        Bloomberg.

       

      (f) “Convertible
        Securities”
means
        any stock or securities (other than Options) directly or indirectly convertible
        into or exercisable or exchangeable for Common Stock.

       

      (g) “Commission”
means
        the Securities and Exchange Commission.

       

      (h) “Common
        Stock”
means
        the common stock, par value $.001, of the Company and stock of any other
        class
        into which such shares may hereafter be changed or reclassified.

       

      (i) "Company
        Conversion Price"
        means,
        the lower of (i) the applicable Conversion Price and (ii) that price which
        shall
        be computed as fifty percent (50%) of the lowest daily Volume Weighted Average
        Price of the Common Stock during the ten (10) consecutive Trading Days
        immediately preceding the applicable Installment Date. All such determinations
        to be appropriately adjusted for any stock split, stock dividend, stock
        combination or other similar transaction.

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      (j) "Equity
        Conditions"
        means
        that each of the following conditions is satisfied: (i) on each day during
        the
        period beginning two (2) weeks prior to the applicable date of determination
        and
        ending on and including the applicable date of determination (the "Equity
        Conditions Measuring Period"), either (x) the Underlying Shares Registration
        Statement filed pursuant to the Registration Rights Agreement shall be effective
        and available for the resale of all applicable shares of Common Stock to
        be
        issued in connection with the event requiring determination or (y) all
        applicable shares of Common Stock to be issued in connection with the event
        requiring determination shall be eligible for sale without restriction and
        without the need for registration under any applicable federal or state
        securities laws; (ii) on each day during the Equity Conditions Measuring
        Period,
        the Common Stock is designated for quotation on the Principal Market and
        shall
        not have been suspended from trading on such exchange or market nor shall
        delisting or suspension by such exchange or market been threatened or pending
        either (A) in writing by such exchange or market or (B) by falling below
        the
        then effective minimum listing maintenance requirements of such exchange
        or
        market; (iii) during the Equity Conditions Measuring Period, the Company
        shall
        have delivered Conversion Shares upon conversion of the Debentures to the
        Holder
        on a timely basis as set forth in Section 4(b)(ii) hereof; (iv) any applicable
        shares of Common Stock to be issued in connection with the event requiring
        determination may be issued in full without violating Section 4(c) hereof
        and
        the rules or regulations of the Primary Market; (v) during the Equity Conditions
        Measuring Period, there shall not have occurred either (A) an Event of Default
        or (B) an event that with the passage of time or giving of notice would
        constitute an Event of Default; and (vii) the Company shall have no knowledge
        of
        any fact that would cause (x) the Registration Statements required pursuant
        to
        the Registration Rights Agreement not to be effective and available for the
        resale of all applicable shares of Common Stock to be issued in connection
        with
        the event requiring determination or (y) any applicable shares of Common
        Stock
        to be issued in connection with the event requiring determination not to
        be
        eligible for sale without restriction and without the need for registration
        under any applicable federal or state securities laws.

       

      (k) "Equity
        Conditions Failure"
        means
        that on any applicable date the Equity Conditions have not been satisfied
        (or
        waived in writing by the Holder).

       

      (l) “Exchange
        Act”
means
        the Securities Exchange Act of 1934, as amended.

       

      (m) “Excluded
        Securities”
means,
        (a) shares issued or deemed to have been issued by the Company pursuant to
        an
        Approved Stock Plan (b) shares of Common Stock issued or deemed to be issued
        by
        the Company upon the conversion, exchange or exercise of any right, option,
        obligation or security outstanding on the date prior to date hereof, provided
        that the terms of such right, option, obligation or security are not amended
        or
        otherwise modified on or after the date hereof, and provided that the conversion
        price, exchange price, exercise price or other purchase price is not reduced,
        adjusted or otherwise modified and the number of shares of Common Stock issued
        or issuable is not increased (whether by operation of, or in accordance with,
        the relevant governing documents or otherwise) on or after the date hereof,
        (c)
        shares issued in connection with any acquisition by the Company, whether
        through
        an acquisition of stock or a merger of any business, assets or technologies,
        leasing arrangement or any other transaction the primary purpose of which
        is not
        to raise equity capital, and (d) the shares of Common Stock issued or
        deemed to be issued by the Company upon conversion of this
        Debenture.

       

      (n) “Options”
means
        any rights, warrants or options to subscribe for or purchase shares of Common
        Stock or Convertible Securities.

       

      (o) “Original
        Issue Date”
means
        the date of the first issuance of this Debenture regardless of the number
        of
        transfers and regardless of the number of instruments, which may be issued
        to
        evidence such Debenture.

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      (p) “Person”
means
        a
        corporation, an association, a partnership, organization, a business, an
        individual, a government or political subdivision thereof or a governmental
        agency.

       

      (q) “Securities
        Act”
means
        the Securities Act of 1933, as amended, and the rules and regulations
        promulgated thereunder.

       

      (r) “Trading
        Day”
means
        a
        day on which the shares of Common Stock are quoted on the OTCBB or quoted
        or
        traded on such Primary Market on which the shares of Common Stock are then
        quoted or listed; provided, that in the event that the shares of Common Stock
        are not listed or quoted, then Trading Day shall mean a Business
        Day.

       

      (s) “Transaction
        Documents”
means
        the Securities Purchase Agreements between the Company and the Holder, and
        all
        agreements made or delivered in connection therewith, including, without
        limitation, the Security Documents, the Irrevocable Transfer Agent Instructions,
        and the Registration Rights Agreement (as those terms are defined in the
        various
        Securities Purchase Agreements).

       

      (t) “Underlying
        Shares”
means
        the shares of Common Stock issuable upon conversion of this Debenture or
        as
        payment of interest in accordance with the terms hereof.

       

      (u) “Underlying
        Shares Registration Statement”
means
        a
        registration statement meeting the requirements set forth in the Registration
        Rights Agreement, covering among other things the resale of the Underlying
        Shares and naming the Holder as a “selling stockholder” thereunder.

       

      (v) "Volume
        Weighted Average Price"
        means,
        for any security as of any date, the daily dollar volume-weighted average
        price
        for such security as reported by Bloomberg through its “Historical Price Table
        Screen (HP)” with “Market: Weighted Ave” function selected, or, if no dollar
        volume-weighted average price is reported for such security by Bloomberg,
        the
        average of the highest closing bid price and the lowest closing ask price
        of any
        of the market makers for such security as reported in the "pink sheets" by
        Pink
        Sheets LLC. 

       

      (w) "Warrants"
        has the
        meaning ascribed to such term in the Securities Purchase Agreements between
        the
        Company and the Holder, and shall include all warrants issued in exchange
        therefor or replacement thereof.

       

      [Signature
        Page Follows]

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        the
        Company has caused this Secured Convertible Debenture to be duly executed
        by a
        duly authorized officer as of the date set forth above.

      

      
        	 	
                COMPANY:

              
	 	
                NEOMEDIA
                  TECHNOLOGIES, INC.

              
	 	 
	 	
                By:

              	
                /s/
                  Scott Womble

              
	 	
                Name:  
                  Scott Womble

              
	 	
                Title:    
                  Chief Financial Officer

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        I

      CONVERSION
        NOTICE

       

      (To
        be executed by the Holder in order to Convert the
        Debenture)

       

      TO:
        

       

      The
        undersigned hereby irrevocably elects to convert $__________________________
        of
        the
        principal amount of Debenture No. NEO-2008-3 into Shares of Common Stock
        of
NEOMEDIA
        TECHNOLOGIES, INC.,
        according to the conditions stated therein, as of the Conversion Date written
        below.

       

      
        	
                Conversion
                  Date:

              	 	 
	 	 	 
	
                Conversion
                  Amount to be converted:

              	 	
                $

              
	 	 	 
	
                Conversion
                  Price:

              	 	
                $

              
	 	 	 
	
                Number
                  of shares of Common Stock to be issued:

              	 	 
	 	 	 
	
                Amount
                  of Debenture Unconverted:

              	 	
                $

              
	 	 	 
	
                Please
                  issue the shares of Common Stock in the following name and to the
                  following address:

              
	 
	
                Issue
                  to:

              	 	 
	 	 	 
	
                Authorized
                  Signature:

              	 	 
	 	 	 
	
                Name:

              	 	 
	 	 	 
	
                Title:

              	 	 
	 	 	 
	
                Broker
                  DTC Participant Code:

              	 	 
	 	 	 
	
                Account
                  Number:

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