Document:

DOCUMENT
      BASICALLY CLEANED

    IMPORTED
      E-MAIL DOCUMENT

    DOCUMENT
      BASICALLY CLEANED BY DOCX

     

    “C”
      WARRANT

     

    THE
      SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY
      SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
      SAID
      ACT. NOTWITHSTANDING THE FOREGOING, THIS WARRANT MAY BE PLEDGED IN CONNECTION
      WITH A BONA FIDE MARGIN ACCOUNT. 

     

    NEOMEDIA
      TECHNOLOGIES, INC.

     

    Warrant
      To Purchase Common Stock

     

    
      	Warrant No.: 	
              CCP-001

            	
              Number
                of Shares: 50,000,000

            
	 	 	 
	Date of
              Issuance: 	
              August
                24, 2006

            	 
	 	 	 

    

    

    Neomedia
      Technologies, Inc., a Delaware corporation (the “Company”),
      hereby certifies that, for good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, Cornell
      Capital Partners, LP
      (“Cornell”),
      the
      registered holder hereof or its permitted assigns, is entitled, subject to
      the
      terms set forth below, to purchase from the Company upon surrender of this
      Warrant, at any time or times on or after the date hereof, but not after
      11:59 P.M. Eastern Time on the Expiration Date (as defined
      herein) Fifty Million (50,000,000) fully paid and nonassessable shares
      of Common Stock (as defined herein) of the Company (the “Warrant
      Shares”) at
      the exercise price per share provided in Section 1(b) below or as
      subsequently adjusted; provided, however, that in no event shall the holder
      be
      entitled to exercise this Warrant for a number of Warrant Shares in excess
      of
      that number of Warrant Shares which, upon giving effect to such exercise, would
      cause the aggregate number of shares of Common Stock beneficially owned by
      the
      holder and its affiliates to exceed 4.99% of the outstanding shares of the
      Common Stock following such exercise, except within sixty (60) days of the
      Expiration Date (however, such restriction may be waived by Cornell (but only
      as
      to itself and not to any other holder) upon not less than sixty-five (65)
      days prior notice to the Company). For purposes of the foregoing proviso, the
      aggregate number of shares of Common Stock beneficially owned by the holder
      and
      its affiliates shall include the number of shares of Common Stock issuable
      upon
      exercise of this Warrant with respect to which the determination of such proviso
      is being made, but shall exclude shares of Common Stock which would be issuable
      upon (i) exercise of the remaining, unexercised Warrants beneficially owned
      by the holder and its affiliates and (ii) exercise or conversion of the
      unexercised or unconverted portion of any other securities of the Company
      beneficially owned by the holder and its affiliates (including, without
      limitation, any convertible notes or preferred stock) subject to a
      limitation on conversion or exercise analogous to the limitation contained
      herein. Except as set forth in the preceding sentence, for purposes of this
      paragraph, beneficial ownership shall be calculated in accordance with Section
      13(d) of the Securities Exchange Act of 1934, as amended. For purposes of
      this Warrant, in determining the number of outstanding shares of Common Stock
      a
      holder may rely on the number of outstanding shares of Common Stock as reflected
      in (1) the Company’s most recent Form 10-Q or Form 10-K, as the case may
      be, (2) a more recent public announcement by the Company or (3) any
      other notice by the Company or its transfer agent setting forth the number
      of
      shares of Common Stock outstanding. Upon the written request of any holder,
      the
      Company shall promptly, but in no event later than one (1) Business Day
      following the receipt of such notice, confirm in writing to any such holder
      the
      number of shares of Common Stock then outstanding. In any case, the number
      of
      outstanding shares of Common Stock shall be determined after giving effect
      to
      the exercise of Warrants (as defined below) by such holder and its
      affiliates since the date as of which such number of outstanding shares of
      Common Stock was reported.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Section
      1.  

     

    (a)  This
      Warrant is the common stock purchase warrant (the “Warrant”) issued
      pursuant to the Securities Purchase Agreement (the “Securities
      Purchase Agreement”) dated
      the date hereof between the Company and the Buyers listed on Schedule I
      thereto.

     

    (b)  Definitions.
      The
      following words and terms as used in this Warrant shall have the following
      meanings:

     

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

     

    (ii)  “Business
      Day”
means
      any day other than Saturday, Sunday or other day on which commercial banks
      in
      the City of New York are authorized or required by law to remain
      closed.

     

    (iii)  “Closing
      Bid Price”
means
      the closing bid price of Common Stock as quoted on the Principal Market (as
      reported by Bloomberg Financial Markets (“Bloomberg”) through
      its “Volume at Price” function).

     

    (iv)  “Common
      Stock”
means
      (i) the Company’s common stock, par value $0.01 per share, and
      (ii) any capital stock into which such Common Stock shall have been changed
      or any capital stock resulting from a reclassification of such Common
      Stock.

     

    (v)  “Event
      of Default”
means
      an event of default under the Securities Purchase Agreement or the Convertible
      Debentures issued in connection therewith.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (vi)  “Excluded
      Securities”
means,
      provided such security is issued at a price which is greater than or equal
      to
      the arithmetic average of the Closing Bid Prices of the Common Stock for the
      ten
      (10) consecutive trading days immediately preceding the date of issuance,
      any of the following: (a) any issuance by the Company of securities in
      connection with a strategic partnership or a joint venture (the primary purpose
      of which is not to raise equity capital), (b) any issuance by the Company
      of securities as consideration for a merger or consolidation or the acquisition
      of a business, product, license, or other assets of another person or entity
      and
      (c) options to purchase shares of Common Stock, provided (I) such
      options are issued after the date of this Warrant to employees or directors
      of
      the Company and (II) the exercise price of such options is not less than
      the Closing Bid Price of the Common Stock on the date of issuance of such
      option.

     

    (vii)  “Expiration
      Date”
means
      the date five (5) years from the Issuance Date of this Warrant or, if such
      date falls on a Saturday, Sunday or other day on which banks are required or
      authorized to be closed in the City of New York or the State of New York or
      on
      which trading does not take place on the Principal Exchange or automated
      quotation system on which the Common Stock is traded (a “Holiday”),
      the
      next date that is not a Holiday.

     

    (viii)  “Issuance
      Date”
means
      the date hereof.

     

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

     

    (x)  “Other
      Securities”
means
      (i) those options and warrants of the Company issued prior to, and
      outstanding on, the Issuance Date of this Warrant, (ii) the shares of
      Common Stock issuable on exercise of such options and warrants, provided such
      options and warrants are not amended after the Issuance Date of this Warrant,
      (iii) the shares of Common Stock issuable upon exercise of this Warrant,
      (iv) shares of Common Stock paid upon conversion of the convertible
      preferred stock paid pursuant to the Amended and Restated Investment Agreement
      and (v) any shares of Common Stock issued in connection with any
      acquisition of the stock or assets of another entity which have been approved
      by
      the Board of Directors of the Company.

     

    (xi)  “Person”
means
      an individual, a limited liability company, a partnership, a joint venture,
      a
      corporation, a trust, an unincorporated organization and a government or any
      department or agency thereof.

     

    (xii)  “Principal
      Market”
means
      the New York Stock Exchange, the American Stock Exchange, the Nasdaq National
      Market, the Nasdaq SmallCap Market, whichever is at the time the principal
      trading exchange or market for such security, or the over-the-counter market
      on
      the electronic bulletin board for such security as reported by Bloomberg or,
      if
      no bid or sale information is reported for such security by Bloomberg, then
      the
      average of the bid prices of each of the market makers for such security as
      reported in the “pink sheets” by the National Quotation Bureau,
      Inc.

     

    (xiii)  “Securities
      Act”
means
      the Securities Act of 1933, as amended. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (xiv)  “Warrant”
means
      this Warrant and all Warrants issued in exchange, transfer or replacement
      thereof. 

     

    (xv)  “Warrant
      Exercise Price”
shall
      be $0.20 or as subsequently adjusted as provided in Section 8 hereof.

     

    (xvi)  “Warrant
      Shares”
means
      the shares of Common Stock issuable at any time upon exercise of this Warrant.
      

     

    (c)  Other
      Definitional Provisions.
      

     

    (i)  Except
      as
      otherwise specified herein, all references herein (A) to the Company shall
      be deemed to include the Company’s successors and (B) to any applicable law
      defined or referred to herein shall be deemed references to such applicable
      law
      as the same may have been or may be amended or supplemented from time to time.
      

     

    (ii)  When
      used
      in this Warrant, the words “herein”,
      “hereof”,
      and
“hereunder”
      and
      words of similar import, shall refer to this Warrant as a whole and not to
      any
      provision of this Warrant, and the words “Section”,
      “Schedule”,
      and
“Exhibit”
shall
      refer to Sections of, and Schedules and Exhibits to, this Warrant unless
      otherwise specified. 

     

    (iii)  Whenever
      the context so requires, the neuter gender includes the masculine or feminine,
      and the singular number includes the plural, and vice versa. 

     

    Section
      2.  Exercise
      of Warrant.
      

     

    (a)  Subject
      to the terms and conditions hereof, this Warrant may be exercised by the holder
      hereof then registered on the books of the Company, pro rata as hereinafter
      provided, at any time on any Business Day on or after the opening of business
      on
      such Business Day, commencing with the first day after the date hereof, and
      prior to 11:59 P.M. Eastern Time on the Expiration Date (i) by
      delivery of a written notice, in the form of the subscription notice attached
      as
Exhibit
      A
      hereto
      (the “Exercise
      Notice”),
      of
      such holder’s election to exercise this Warrant, which notice shall specify the
      number of Warrant Shares to be purchased, payment to the Company of an
      amount equal to the Warrant Exercise Price(s) applicable to the Warrant
      Shares being purchased, multiplied by the number of Warrant Shares (at the
      applicable Warrant Exercise Price) as to which this Warrant is being
      exercised (plus any applicable issue or transfer taxes) (the
“Aggregate
      Exercise Price”) in
      cash or wire transfer of immediately available funds and the surrender of this
      Warrant (or an indemnification undertaking with respect to this Warrant in
      the
      case of its loss, theft or destruction) to a common carrier for overnight
      delivery to the Company as soon as practicable following such date
      (“Cash
      Basis”) or
      (ii) if at the time of exercise, the Warrant Shares are not subject to an
      effective registration statement or if an Event of Default has occurred, by
      delivering an Exercise Notice and in lieu of making payment of the Aggregate
      Exercise Price in cash or wire transfer, elect instead to receive upon such
      exercise the “Net Number” of shares of Common Stock determined according to the
      following formula (the “Cashless
      Exercise”):
      

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	 	
              Net
                Number

            	
              =

            	
              (A
                x B) - (A x C)

            	 
	 	 	 	
              B

            	 

    

     

    For
      purposes of the foregoing formula:

     

    
      	 	
              A

            	
              =

            	
              the
                total number of Warrant Shares with respect to which this Warrant
                is then
                being exercised.

            	 
	 	 	 	 	 
	 	
              B

            	
              =

            	
              the
                Closing Bid Price of the Common Stock on the date of exercise of
                the
                Warrant.

            	 
	 	 	 	 	 
	 	
              C
                

            	
              =

            	
              the
                Warrant Exercise Price then in effect for the applicable Warrant
                Shares at
                the time of such exercise.

            	 
	 	 	 	 	 

    

     

    In
      the
      event of any exercise of the rights represented by this Warrant in compliance
      with this Section 2, the Company shall on or before the
      fifth (5th) Business Day following the date of receipt of the Exercise
      Notice, the Aggregate Exercise Price and this Warrant (or an indemnification
      undertaking with respect to this Warrant in the case of its loss, theft or
      destruction) and the receipt of the representations of the holder specified
      in Section 6 hereof, if requested by the Company (the “Exercise
      Delivery Documents”),
      and
      if the Common Stock is DTC eligible, 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 The Depository Trust Company; provided, however,
      if the holder who submitted the Exercise Notice requested physical delivery
      of
      any or all of the Warrant Shares, or, if the Common Stock is not DTC eligible
      then the Company shall, on or before the fifth (5th) Business
      Day following receipt of the Exercise Delivery Documents, issue and surrender
      to
      a common carrier for overnight delivery to the address specified in the Exercise
      Notice, a certificate, registered in the name of the holder, for the number
      of
      shares of Common Stock to which the holder shall be entitled pursuant to such
      request. Upon delivery of the Exercise Notice and Aggregate Exercise Price
      referred to in clause (i) or (ii) above the holder of this
      Warrant shall be deemed for all corporate purposes to have become the holder
      of
      record of the Warrant Shares with respect to which this Warrant has been
      exercised. In the case of a dispute as to the determination of the Warrant
      Exercise Price, the Closing Bid Price or the arithmetic calculation of the
      Warrant Shares, the Company shall promptly issue to the holder the number of
      Warrant Shares that is not disputed and shall submit the disputed determinations
      or arithmetic calculations to the holder via facsimile within one
      (1) Business Day of receipt of the holder’s Exercise Notice. 

     

    (b)  If
      the
      holder and the Company are unable to agree upon the determination of the Warrant
      Exercise Price or arithmetic calculation of the Warrant Shares within one
      (1) day of such disputed determination or arithmetic calculation being
      submitted to the holder, then the Company shall immediately submit via facsimile
      (i) the disputed determination of the Warrant Exercise Price or the Closing
      Bid Price to an independent, reputable investment banking firm or (ii) the
      disputed arithmetic calculation of the Warrant Shares to its independent,
      outside accountant. The Company shall cause the investment banking firm or
      the
      accountant, as the case may be, to perform the determinations or calculations
      and notify the Company and the holder of the results no later than forty-eight
      (48) hours from the time it receives the disputed determinations or
      calculations. Such investment banking firm’s or accountant’s determination or
      calculation, as the case may be, shall be deemed conclusive absent manifest
      error.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (c)  Unless
      the rights represented by this Warrant shall have expired or shall have been
      fully exercised, the Company shall, as soon as practicable and in no event
      later
      than five (5) Business Days after any exercise and at its own expense,
      issue a new Warrant identical in all respects to this Warrant exercised except
      it shall represent rights to purchase the number of Warrant Shares purchasable
      immediately prior to such exercise under this Warrant exercised, less the number
      of Warrant Shares with respect to which such Warrant is exercised.

     

    (d)  No
      fractional Warrant Shares are to be issued upon any pro rata exercise of this
      Warrant, but rather the number of Warrant Shares issued upon such exercise
      of
      this Warrant shall be rounded up or down to the nearest whole
      number.

     

    (e)  If
      the
      Company or its Transfer Agent shall fail for any reason or for no reason to
      issue to the holder within ten (10) days of receipt of the Exercise
      Delivery Documents, a certificate for the number of Warrant Shares to which
      the
      holder is entitled or to credit the holder’s balance account with The Depository
      Trust Company for such number of Warrant Shares to which the holder is entitled
      upon the holder’s exercise of this Warrant, the Company shall, in addition to
      any other remedies under this Warrant or the Placement Agent Agreement or
      otherwise available to such holder, pay as additional damages in cash to such
      holder on each day the issuance of such certificate for Warrant Shares is not
      timely effected an amount equal to 0.025% of the product of (A) the sum of
      the number of Warrant Shares not issued to the holder on a timely basis and
      to
      which the holder is entitled, and (B) the Closing Bid Price of the Common
      Stock for the trading day immediately preceding the last possible date which
      the
      Company could have issued such Common Stock to the holder without violating
      this
      Section 2.

     

    (f)  If
      within
      ten (10) days after the Company’s receipt of the Exercise Delivery
      Documents, the Company fails to deliver a new Warrant to the holder for the
      number of Warrant Shares to which such holder is entitled pursuant to Section
      2
      hereof, then, in addition to any other available remedies under this Warrant
      or
      the Placement Agent Agreement, or otherwise available to such holder, the
      Company shall pay as additional damages in cash to such holder on each day
      after
      such tenth (10th) day
      that such delivery of such new Warrant is not timely effected in an amount
      equal
      to 0.25% of the product of (A) the number of Warrant Shares represented by
      the portion of this Warrant which is not being exercised and (B) the
      Closing Bid Price of the Common Stock for the trading day immediately preceding
      the last possible date which the Company could have issued such Warrant to
      the
      holder without violating this Section 2.

     

    (g)
       Forced
      Exercise.
      Provided that the shares issuable upon exercise this Warrant are registered
      pursuant to an effective registration statement, the Company at its option
      shall
      have the right at any time commencing on the date hereof if the Company’s
      Closing Bid Price as quoted by Bloomberg, LP is equal to or greater than Thirty
      Cents ($0.30) for
      ten
      (10) consecutive Trading Days, to on such tenth (10th)
      day
      provide written notice to the Holder (the “Forced
      Exercise Notice”)
      providing the Holder twenty (20) calendar days from the day following receipt
      of
      the Forced Exercise Notice, to exercise this Warrant in whole at the then
      applicable Exercise Price (“Forced
      Exercise Period”).
      Provided however in the event that the Closing Bid Price of the Company’s Common
      Stock during the Forced Exercise Period is equal to or lower than the applicable
      Warrant Exercise Price the Holder shall not be forced to exercise this Warrant,
      in whole or in part, as provided for herein.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Section
      3.  Covenants
      as to Common Stock.
      The
      Company hereby covenants and agrees as follows:

     

    (a)  This
      Warrant is, and any Warrants issued in substitution for or replacement of this
      Warrant will upon issuance be, duly authorized and validly issued.

     

    (b)  All
      Warrant Shares which may be issued upon the exercise of the rights represented
      by this Warrant will, upon issuance, be validly issued, fully paid and
      nonassessable and free from all taxes, liens and charges with respect to the
      issue thereof.

     

    (c)  During
      the period within which the rights represented by this Warrant may be exercised,
      the Company will at all times have authorized and reserved at least one hundred
      percent (100%) of the number of shares of Common Stock needed to provide
      for the exercise of the rights then represented by this Warrant and the par
      value of said shares will at all times be less than or equal to the applicable
      Warrant Exercise Price. If at any time the Company does not have a sufficient
      number of shares of Common Stock authorized and available, then the Company
      shall call and hold a special meeting of its stockholders within
      sixty (60) days of that time for the sole purpose of increasing the
      number of authorized shares of Common Stock.

     

    (d)  If
      at any
      time after the date hereof the Company shall file a registration statement,
      the
      Company shall include the Warrant Shares issuable to the holder, pursuant to
      the
      terms of this Warrant and shall maintain, so long as any other shares of Common
      Stock shall be so listed, such listing of all Warrant Shares from time to time
      issuable upon the exercise of this Warrant; and the Company shall so list on
      each national securities exchange or automated quotation system, as the case
      may
      be, and shall maintain such listing of, any other shares of capital stock of
      the
      Company issuable upon the exercise of this Warrant if and so long as any shares
      of the same class shall be listed on such national securities exchange or
      automated quotation system.

     

    (e)  The
      Company will not, by amendment of its Articles of Incorporation or through
      any
      reorganization, transfer of assets, consolidation, merger, dissolution, issue
      or
      sale of securities, or any other voluntary action, avoid or seek to avoid the
      observance or performance of any of the terms to be observed or performed by
      it
      hereunder, but will at all times in good faith assist in the carrying out of
      all
      the provisions of this Warrant and in the taking of all such action as may
      reasonably be requested by the holder of this Warrant in order to protect the
      exercise privilege of the holder of this Warrant against dilution or other
      impairment, consistent with the tenor and purpose of this Warrant. The Company
      will not increase the par value of any shares of Common Stock receivable upon
      the exercise of this Warrant above the Warrant Exercise Price then in effect,
      and (ii) will take all such actions as may be necessary or appropriate in
      order that the Company may validly and legally issue fully paid and
      nonassessable shares of Common Stock upon the exercise of this
      Warrant.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (f)  This
      Warrant will be binding upon any entity succeeding to the Company by merger,
      consolidation or acquisition of all or substantially all of the Company’s
      assets.

     

    Section
      4.  Taxes.
      The
      Company shall pay any and all taxes, except any applicable withholding, which
      may be payable with respect to the issuance and delivery of Warrant Shares
      upon
      exercise of this Warrant.

     

    Section
      5.  Warrant
      Holder Not Deemed a Stockholder.
      Except
      as otherwise specifically provided herein, no holder, as such, of this Warrant
      shall be entitled to vote or receive dividends or be deemed the holder of shares
      of capital stock of the Company for any purpose, nor shall anything contained
      in
      this Warrant be construed to confer upon the holder hereof, as such, any of
      the
      rights of a stockholder of the Company or any right to vote, give or withhold
      consent to any corporate action (whether any reorganization, issue of stock,
      reclassification of stock, consolidation, merger, conveyance or otherwise),
      receive notice of meetings, receive dividends or subscription rights, or
      otherwise, prior to the issuance to the holder of this Warrant of the Warrant
      Shares which he or she is then entitled to receive upon the due exercise of
      this
      Warrant. In addition, nothing contained in this Warrant shall be construed
      as
      imposing any liabilities on such holder to purchase any securities (upon
      exercise of this Warrant or otherwise) or as a stockholder of the Company,
      whether such liabilities are asserted by the Company or by creditors of the
      Company. Notwithstanding this Section 5, the Company will provide the holder
      of
      this Warrant with copies of the same notices and other information given to
      the
      stockholders of the Company generally, contemporaneously with the giving thereof
      to the stockholders.

     

    Section
      6.  Representations
      of Holder.
      The
      holder of this Warrant, by the acceptance hereof, represents that it is
      acquiring this Warrant and the Warrant Shares for its own account for investment
      only and not with a view towards, or for resale in connection with, the public
      sale or distribution of this Warrant or the Warrant Shares, except pursuant
      to
      sales registered or exempted under the Securities Act; provided, however, that
      by making the representations herein, the holder does not agree to hold this
      Warrant or any of the Warrant Shares for any minimum or other specific term
      and
      reserves the right to dispose of this Warrant and the Warrant Shares at any
      time
      in accordance with or pursuant to a registration statement or an exemption
      under
      the Securities Act. The holder of this Warrant further represents, by acceptance
      hereof, that, as of this date, such holder is an “accredited investor” as such
      term is defined in Rule 501(a)(1) of Regulation D promulgated by the
      Securities and Exchange Commission under the Securities Act (an “Accredited
      Investor”).
      Upon
      exercise of this Warrant the holder shall, if requested by the Company, confirm
      in writing, in a form satisfactory to the Company, that the Warrant Shares
      so
      purchased are being acquired solely for the holder’s own account and not as a
      nominee for any other party, for investment, and not with a view toward
      distribution or resale and that such holder is an Accredited Investor. If such
      holder cannot make such representations because they would be factually
      incorrect, it shall be a condition to such holder’s exercise of this Warrant
      that the Company receive such other representations as the Company considers
      reasonably necessary to assure the Company that the issuance of its securities
      upon exercise of this Warrant shall not violate any United States or state
      securities laws.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Section
      7.  Ownership
      and Transfer.
      

     

    (a)  The
      Company shall maintain at its principal executive offices (or such other office
      or agency of the Company as it may designate by notice to the holder hereof),
      a
      register for this Warrant, in which the Company shall record the name and
      address of the person in whose name this Warrant has been issued, as well as
      the
      name and address of each transferee. The Company may treat the person in whose
      name any Warrant is registered on the register as the owner and holder thereof
      for all purposes, notwithstanding any notice to the contrary, but in all events
      recognizing any transfers made in accordance with the terms of this
      Warrant.

     

    Section
      8.  Adjustment
      of Warrant Exercise Price and Number of Shares.
      The
      Warrant Exercise Price and the number of shares of Common Stock issuable upon
      exercise of this Warrant shall be adjusted from time to time as
      follows:

     

    (a)  Adjustment
      of Warrant Exercise Price and Number of Shares upon Issuance of Common
      Stock.
      If and
      whenever on or after the Issuance Date of this Warrant, the Company issues
      or
      sells, or is deemed to have issued or sold, any shares of Common
      Stock (other than (i) Excluded Securities and (ii) shares of
      Common Stock which are issued or deemed to have been issued by the Company
      in
      connection with an Approved Stock Plan or upon exercise or conversion of the
      Other Securities) for a consideration per share less than a price (the
“Applicable
      Price”) equal
      to the Warrant Exercise Price in effect immediately prior to such issuance
      or
      sale, then immediately after such issue or sale the Warrant Exercise Price
      then
      in effect shall be reduced to an amount equal to such consideration per share.
      Upon each such adjustment of the Warrant Exercise Price hereunder, the number
      of
      Warrant Shares issuable upon exercise of this Warrant shall be adjusted to
      the
      number of shares determined by multiplying the Warrant Exercise Price in effect
      immediately prior to such adjustment by the number of Warrant Shares issuable
      upon exercise of this Warrant immediately prior to such adjustment and dividing
      the product thereof by the Warrant Exercise Price resulting from such
      adjustment.

     

    (b)  Effect
      on Warrant Exercise Price of Certain Events.
      Excluding the issuance of Excluded Securities or the exercise or conversion
      of
      Other Securities, for purposes of determining the adjusted Warrant Exercise
      Price under Section 8(a) above, the following shall be
      applicable:

     

    (i)  Issuance
      of Options.
      If
      after the date hereof, the Company in any manner grants 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 of any convertible
      securities issuable upon exercise of any 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 8(b)(i),
      the
      lowest price per share for which one share of Common Stock is issuable upon
      exercise of such Options or upon conversion or exchange of such Convertible
      Securities 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 granting or sale of the Option, upon exercise of the
      Option or upon conversion or exchange of any convertible security issuable
      upon
      exercise of such Option. No further adjustment of the Warrant Exercise Price
      shall be made upon the actual issuance of such 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 of such convertible
      securities.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (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 the
      conversion or exchange 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 8(b)(ii), the lowest price per share for which one share of Common
      Stock is issuable upon such conversion or exchange shall be equal to the sum
      of
      the lowest amounts of consideration (if any) received or receivable by the
      Company with respect to one share of Common Stock upon the issuance or sale
      of
      the convertible security and upon conversion or exchange of such convertible
      security. No further adjustment of the Warrant Exercise Price shall be made
      upon
      the actual issuance of such Common Stock upon conversion or exchange 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
      Warrant Exercise Price had been or are to be made pursuant to other provisions
      of this Section 8(b), no further adjustment of the Warrant Exercise Price shall
      be made by reason of such issue or sale. 

     

    (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 or exchange of any convertible
      securities, or the rate at which any convertible securities are convertible
      into
      or exchangeable for Common Stock changes at any time, the Warrant Exercise
      Price
      in effect at the time of such change shall be adjusted to the Warrant Exercise
      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 and the number of Warrant Shares issuable
      upon
      exercise of this Warrant shall be correspondingly readjusted. For purposes
      of
      this Section 8(b)(iii), if the terms of any Option or convertible security
      that
      was outstanding as of the Issuance Date of this Warrant 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 pursuant to this Section 8(b) shall
      be made if such adjustment would result in an increase of the Warrant Exercise
      Price then in effect.

     

    (c)  Effect
      on Warrant Exercise Price of Certain Events.
      Excluding the issuance of Excluded Securities or the exercise or conversion
      of
      Other Securities, for purposes of determining the adjusted Warrant Exercise
      Price under Sections 8(a) and 8(b), the following shall be
      applicable:

     

    (i)  Calculation
      of Consideration Received.
      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 therefore will
      be
      deemed to be the net amount received by the Company therefore. If any Common
      Stock, Options or convertible securities are issued or sold for a consideration
      other than cash, the amount of such consideration received by the Company will
      be the fair value of such consideration, except where such consideration
      consists of marketable securities, in which case the amount of consideration
      received by the Company will be the market price of such securities on the
      date
      of receipt of such securities. 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 therefore 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 holders of Warrants representing at least
      two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants
      then outstanding. 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 holders of Warrants representing at least
      two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants
      then outstanding. The determination of such appraiser shall be final and binding
      upon all parties and the fees and expenses of such appraiser shall be borne
      jointly by the Company and the holders of Warrants.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (ii)  Integrated
      Transactions.
      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 a consideration of $.01.

     

    (iii)  Treasury
      Shares.
      The
      number of shares of Common Stock outstanding at any given time does not include
      shares owned or held by or for the account of the Company, and the disposition
      of any shares so owned or held will be considered an issue or sale of Common
      Stock.

     

    (iv)  Record
      Date.
      If the
      Company takes a record of the holders of Common Stock for the purpose of
      entitling them (1) to receive a dividend or other distribution payable in
      Common Stock, Options or in convertible securities or (2) 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 shares of 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.

     

    (d)  Adjustment
      of Warrant Exercise Price upon Subdivision or Combination of Common
      Stock.
      If the
      Company at any time after the date of issuance of this Warrant subdivides (by
      any stock split, stock dividend, recapitalization or otherwise) one or more
      classes of its outstanding shares of Common Stock into a greater number of
      shares, any Warrant Exercise Price in effect immediately prior to such
      subdivision will be proportionately reduced and the number of shares of Common
      Stock obtainable upon exercise of this Warrant will be proportionately
      increased. If the Company at any time after the date of issuance of this Warrant
      combines (by combination, reverse stock split or otherwise) one or more
      classes of its outstanding shares of Common Stock into a smaller number of
      shares, any Warrant Exercise Price in effect immediately prior to such
      combination will be proportionately increased and the number of Warrant Shares
      issuable upon exercise of this Warrant will be proportionately decreased. Any
      adjustment under this Section 8(d) shall become effective at the close
      of business on the date the subdivision or combination becomes
      effective.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (e)  Distribution
      of Assets.
      If the
      Company shall declare or make any dividend or other distribution of its assets
      (or rights to acquire its assets) to holders of Common Stock, by way of
      return of capital or otherwise (including, without limitation, any distribution
      of cash, stock or other securities, property or options by way of a dividend,
      spin off, reclassification, corporate rearrangement or other similar
      transaction) (a “Distribution”),
      at
      any time after the issuance of this Warrant, then, in each such
      case:

     

    (i)  any
      Warrant Exercise Price in effect immediately prior to the close of business
      on
      the record date fixed for the determination of holders of Common Stock
      entitled to
      receive the Distribution shall be reduced, effective as of the close of business
      on such record date, to a price determined by multiplying such Warrant Exercise
      Price by a fraction of which (A) the numerator shall be the Closing Sale
      Price of the Common Stock on the trading day immediately preceding such record
      date minus the value of the Distribution (as determined in good faith by the
      Company’s Board of Directors) applicable to one share of Common Stock, and
      (B) the denominator shall be the Closing Sale Price of the Common Stock on
      the trading day immediately preceding such record date; and

     

    (ii)  either
      (A) the number of Warrant Shares obtainable upon exercise of this Warrant
      shall be increased to a number of shares equal to the number of shares of Common
      Stock obtainable immediately prior to the close of business on the record date
      fixed for the determination of holders of Common Stock entitled to receive
      the
      Distribution multiplied by the reciprocal of the fraction set forth in the
      immediately preceding clause (i), or (B) in the event that the Distribution
      is of common stock of a company whose common stock is traded on a national
      securities exchange or a national automated quotation system, then the holder
      of
      this Warrant shall receive an additional warrant to purchase Common Stock,
      the
      terms of which shall be identical to those of this Warrant, except that such
      warrant shall be exercisable into the amount of the assets that would have
      been
      payable to the holder of this Warrant pursuant to the Distribution had the
      holder exercised this Warrant immediately prior to such record date and with
      an
      exercise price equal to the amount by which the exercise price of this Warrant
      was decreased with respect to the Distribution pursuant to the terms of the
      immediately preceding clause (i).

     

    (f)  Certain
      Events.
      If any
      event occurs of the type contemplated by the provisions of this Section 8
      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 Warrant Exercise Price and the number
      of
      shares of Common Stock obtainable upon exercise of this Warrant so as to protect
      the rights of the holders of the Warrants; provided, except as set forth in
      section 8(d), that no such adjustment pursuant to this Section 8(f) will
      increase the Warrant Exercise Price or decrease the number of shares of Common
      Stock obtainable as otherwise determined pursuant to this Section
      8.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (g)  Notices.
      

     

    (i)  Immediately
      upon any adjustment of the Warrant Exercise Price, the Company will give written
      notice thereof to the holder of this Warrant, setting forth in reasonable
      detail, and certifying, the calculation of such adjustment.

     

    (ii)  The
      Company will give written notice to the holder of this Warrant at least ten
      (10) days prior to the date on which the Company closes its books or takes
      a record (A) with respect to any dividend or distribution upon the Common
      Stock, (B) with respect to any pro rata subscription offer to holders of
      Common Stock or (C) for determining rights to vote with respect to any
      Organic Change (as defined below), dissolution or liquidation, provided that
      such information shall be made known to the public prior to or in conjunction
      with such notice being provided to such holder.

     

    (iii)  The
      Company will also give written notice to the holder of this Warrant at least
      ten
      (10) days prior to the date on which any Organic Change, dissolution or
      liquidation will take place, provided that such information shall be made known
      to the public prior to or in conjunction with such notice being provided to
      such
      holder.

     

    Section
      9.  Purchase
      Rights; Reorganization, Reclassification, Consolidation, Merger or
      Sale.
      

     

    (a)  In
      addition to any adjustments pursuant to Section 8 above, 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 of this Warrant will be entitled to acquire, upon the terms
      applicable to such Purchase Rights, the aggregate Purchase Rights which such
      holder could have acquired if such holder had held the number of shares of
      Common Stock acquirable upon complete exercise of this Warrant 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.

     

    (b)  Any
      recapitalization, reorganization, reclassification, consolidation, merger,
      sale
      of all or substantially all of the Company’s assets to another Person or other
      transaction in each case which is effected in such a way that holders of Common
      Stock are entitled to receive (either directly or upon subsequent
      liquidation) stock, securities or assets with respect to or in exchange for
      Common Stock is referred to herein as an “Organic
      Change.”
Prior
      to the consummation of any (i) sale of all or substantially all of the
      Company’s assets to an acquiring Person or (ii) other Organic Change
      following which the Company is not a surviving entity, the Company will secure
      from the Person purchasing such assets or the successor resulting from such
      Organic Change (in each case, the “Acquiring
      Entity”) a
      written agreement (in form and substance satisfactory to the holders of Warrants
      representing at least two-thirds (iii) of the Warrant Shares issuable upon
      exercise of the Warrants then outstanding) to deliver to each holder of
      Warrants in exchange for such Warrants, a security of the Acquiring Entity
      evidenced by a written instrument substantially similar in form and substance
      to
      this Warrant and satisfactory to the holders of the Warrants (including an
      adjusted warrant exercise price equal to the value for the Common Stock
      reflected by the terms of such consolidation, merger or sale, and exercisable
      for a corresponding number of shares of Common Stock acquirable and receivable
      upon exercise of the Warrants without regard to any limitations on exercise,
      if
      the value so reflected is less than any Applicable Warrant Exercise Price
      immediately prior to such consolidation, merger or sale). Prior to the
      consummation of any other Organic Change, the Company shall make appropriate
      provision (in form and substance satisfactory to the holders of Warrants
      representing a majority of
      the
      Warrant Shares issuable upon exercise of the Warrants then outstanding) to
      insure that each of the holders of the Warrants will thereafter have the right
      to acquire and receive in lieu of or in addition to (as the case may
      be) the Warrant Shares immediately theretofore issuable and receivable upon
      the exercise of such holder’s Warrants (without regard to any limitations
      on exercise), such shares of stock, securities or assets that would have been
      issued or payable in such Organic Change with respect to or in exchange for
      the
      number of Warrant Shares which would have been issuable and receivable upon
      the
      exercise of such holder’s Warrant as of the date of such Organic Change (without
      taking into account any limitations or restrictions on the exercisability of
      this Warrant).

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    Section
      10.  Lost,
      Stolen, Mutilated or Destroyed Warrant.
      If this
      Warrant is lost, stolen, mutilated or destroyed, the Company shall promptly,
      on
      receipt of an indemnification undertaking (or, in the case of a mutilated
      Warrant, the Warrant), issue a new Warrant of like denomination and tenor as
      this Warrant so lost, stolen, mutilated or destroyed.

     

    Section
      11.  Notice.
      Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Warrant 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 receipt
      is received by the sending party transmission is mechanically or electronically
      generated and kept on file by the sending party); or (iii) one Business 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 Cornell:

            	
              Cornell
                Capital Partners, LP

            
	 	
              101
                Hudson Street - Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Attention: Mark
                A. Angelo

            
	 	
              Telephone: (201) 985-8300

            
	 	
              Facsimile: (201) 985-8266

            
	 	 
	
              With
                Copy to:

            	
              David
                Gonzalez, Esq.

            
	 	
              101
                Hudson Street - Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Telephone: (201) 985-8300

            
	 	
              Facsimile: (201) 985-8266

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	
              If
                to the Company, to:

            	
              Neomedia
                Technologies, Inc. 

            
	 	
              2201
                Second Street, Suite #600

            
	 	
              Fort
                Myers, FL 33901

            
	 	
              Attention: Charles
                T. Jensen

            
	 	
              Telephone: (239) 337-3434

            
	 	
              Facsimile: (239) 337-3668

            
	 	 
	
              With
                a copy to:

            	
              Kirkpatrick
                & Lockhart Nicholson Graham, LLP

            
	 	
              201
                South Biscayne Boulevard, Suite 2000

            
	 	
              Miami,
                FL 33131

            
	 	
              Attention: Clayton
                E. Parker, Esquire

            
	 	
              Telephone: (305) 539-3306
                

            
	 	
              Facsimile: (305) 358-7095
                

            

    

    

    If
      to a
      holder of this Warrant, to it at the address and facsimile number set forth
      on
Exhibit C
      hereto,
      with copies to such holder’s representatives as set forth on Exhibit C,
      or at
      such other address and facsimile as shall be delivered to the Company upon
      the
      issuance or transfer of this Warrant. Each party shall provide five days’ prior
      written notice to the other party of any change in address or facsimile number.
      Written confirmation of receipt (A) given by the recipient of such notice,
      consent, facsimile, waiver or other communication, (or (B) 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.

     

    Section
      12.  Date.
      The
      date of this Warrant is set forth on page 1 hereof. This Warrant, in all
      events, shall be wholly void and of no effect after the close of business on
      the
      Expiration Date, except that notwithstanding any other provisions hereof, the
      provisions of Section 8(b) shall continue in full force and effect
      after such date as to any Warrant Shares or other securities issued upon the
      exercise of this Warrant.

     

    Section
      13.  Amendment
      and Waiver.
      Except
      as otherwise provided herein, the provisions of the Warrants may be amended
      and
      the Company may take any action herein prohibited, or omit to perform any act
      herein required to be performed by it, only if the Company has obtained the
      written consent of the holders of Warrants representing at least two-thirds
      of
      the Warrant Shares issuable upon exercise of the Warrants then outstanding;
      provided that, except for Section 8(d), no such action may increase the Warrant
      Exercise Price or decrease the number of shares or class of stock obtainable
      upon exercise of any Warrant without the written consent of the holder of such
      Warrant.

     

    Section
      14.  Descriptive
      Headings; Governing Law.
      The
      descriptive headings of the several sections and paragraphs of this Warrant
      are
      inserted for convenience only and do not constitute a part of this Warrant.
      The
      corporate laws of the State of Delaware shall govern all issues concerning
      the
      relative rights of the Company and its stockholders. All other questions
      concerning the construction, validity, enforcement and interpretation of this
      Agreement shall be governed by the internal laws of the State of New Jersey,
      without giving effect to any choice of law or conflict of law provision or
      rule
      (whether of the State of New Jersey or any other jurisdictions) that would
      cause the application of the laws of any jurisdictions other than the State
      of
      New Jersey. Each party hereby irrevocably submits to the exclusive jurisdiction
      of the state and federal courts sitting in Hudson County and the United States
      District Court for the District of New Jersey, for the adjudication of any
      dispute hereunder or in connection herewith or therewith, or with any
      transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is brought in an inconvenient forum or that
      the
      venue of such suit, action or proceeding is improper. Each party hereby
      irrevocably waives personal service of process and consents to process being
      served in any such suit, action or proceeding by mailing a copy thereof to
      such
      party at the address for such notices to it under this Agreement and agrees
      that
      such service shall constitute good and sufficient service of process and notice
      thereof. Nothing contained herein shall be deemed to limit in any way any right
      to serve process in any manner permitted by law. 

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Section
      15.  Waiver
      of Jury Trial.
      AS A MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT,
      THE
      PARTIES HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
      RELATED IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS
      ASSOCIATED WITH THIS TRANSACTION.

     

    

    REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

     

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Warrant to be signed as of the date first set forth
      above.

     

    
      	 	 	 
	 	
              NEOMEDIA
                TECHNOLOGIES, INC.

            
	 
 	 
 	 
 
	 	By:  	/s/ Charles
              T. Jensen
	 	
              

              Name: Charles
                T. Jensen

            
	 	
              Title: President
                & Chief Executive Officer

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A TO WARRANT

     

    EXERCISE
      NOTICE

     

    TO
      BE EXECUTED 

    BY
      THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

     

    NEOMEDIA
      TECHNOLOGIES, INC.

     

    The
      undersigned holder hereby exercises the right to purchase ______________ of
      the
      shares of Common Stock (“Warrant
      Shares”) of
      Neomedia Technologies, Inc. (the “Company”),
      evidenced by the attached Warrant (the “Warrant”).
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Warrant.

     

    Specify
      Method of exercise by check mark:

     

    
      	 	
              1.

            	
              o

            	
              Cash
                Exercise

            	 
	 	 	
              (a)

            	
              Payment
                of Warrant Exercise Price.
                The holder shall pay the Aggregate Exercise Price of $______________
                to
                the Company in accordance with the terms of the Warrant.

            	 
	 	 	
              (b)

            	
              Delivery
                of Warrant Shares.
                The Company shall deliver to the holder _____ Warrant Shares in accordance
                with the terms of the Warrant.

            	 
	 	
              2.

            	
              
                o

              

            	
              Cashless
                Exercise

            	 
	 	 	
              (a)

            	
              Payment
                of Warrant Exercise Price.
                In lieu of making payment of the Aggregate Exercise Price, the holder
                elects to receive upon such exercise the Net Number of shares of
                Common
                Stock determined in accordance with the terms of the
                Warrant.

            	 
	 	 	
              (b)

            	
              Delivery
                of Warrant Shares.
                The Company shall deliver to the holder _____ Warrant Shares in accordance
                with the terms of the Warrant.

            	 

    

     

    Date:
      _______________ __, ______

    

    Name
      of
      Registered Holder

    

    By:
      __________________________________

    Name:
      ________________________________

    Title:
      _________________________________

    

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B TO WARRANT

     

    FORM
      OF WARRANT POWER

     

    FOR
      VALUE RECEIVED,
      the
      undersigned does hereby assign and transfer to ________________, Federal
      Identification No. __________, a warrant to purchase ____________ shares of
      the capital stock of Neomedia Technologies, Inc. represented by warrant
      certificate no. _____, standing in the name of the undersigned on the books
      of said corporation. The undersigned does hereby irrevocably constitute and
      appoint ______________, attorney to transfer the warrants of said corporation,
      with full power of substitution in the premises.

     

    
      	
              Dated:
                __________________________________      

            	_____________________________________ 
	 	 
	 	
              By:
                __________________________________

            
	 	
              Name:
                ________________________________

            
	 	
              Title:
                _________________________________

            

    

    

    
      
        
        

      

        B-1DOCUMENT
        BASICALLY CLEANED

      IMPORTED
        E-MAIL DOCUMENT

      DOCUMENT
        BASICALLY CLEANED BY DOCX

       

      “D”
        WARRANT

       

      THE
        SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
        SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
        THE
        SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
        SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
        STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
        OR
        APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY
        SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
        OR
        APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
        SAID
        ACT. NOTWITHSTANDING THE FOREGOING, THIS WARRANT MAY BE PLEDGED IN CONNECTION
        WITH A BONA FIDE MARGIN ACCOUNT. 

       

       

      NEOMEDIA
        TECHNOLOGIES, INC.

       

      Warrant
        To Purchase Common Stock

       

      
        	Warrant No.: 	
                CCP-001

              	
                Number
                  of Shares: 50,000,000

              
	 	 	 
	Date of
                Issuance: 	
                August
                  24, 2006

              	 
	 	 	 

      

      

      Neomedia
        Technologies, Inc., a Delaware corporation (the “Company”),
        hereby certifies that, for good and valuable consideration, the receipt and
        sufficiency of which are hereby acknowledged, Cornell
        Capital Partners, LP
        (“Cornell”),
        the
        registered holder hereof or its permitted assigns, is entitled, subject to
        the
        terms set forth below, to purchase from the Company upon surrender of this
        Warrant, at any time or times on or after the date hereof, but not after
        11:59 P.M. Eastern Time on the Expiration Date (as defined
        herein) Fifty Million (50,000,000) fully paid and nonassessable shares
        of Common Stock (as defined herein) of the Company (the “Warrant
        Shares”) at
        the exercise price per share provided in Section 1(b) below or as
        subsequently adjusted; provided, however, that in no event shall the holder
        be
        entitled to exercise this Warrant for a number of Warrant Shares in excess
        of
        that number of Warrant Shares which, upon giving effect to such exercise,
        would
        cause the aggregate number of shares of Common Stock beneficially owned by
        the
        holder and its affiliates to exceed 4.99% of the outstanding shares of the
        Common Stock following such exercise, except within sixty (60) days of the
        Expiration Date (however, such restriction may be waived by Cornell (but
        only as
        to itself and not to any other holder) upon not less than sixty-five (65)
        days prior notice to the Company). For purposes of the foregoing proviso,
        the
        aggregate number of shares of Common Stock beneficially owned by the holder
        and
        its affiliates shall include the number of shares of Common Stock issuable
        upon
        exercise of this Warrant with respect to which the determination of such
        proviso
        is being made, but shall exclude shares of Common Stock which would be issuable
        upon (i) exercise of the remaining, unexercised Warrants beneficially owned
        by the holder and its affiliates and (ii) exercise or conversion of the
        unexercised or unconverted portion of any other securities of the Company
        beneficially owned by the holder and its affiliates (including, without
        limitation, any convertible notes or preferred stock) subject to a
        limitation on conversion or exercise analogous to the limitation contained
        herein. Except as set forth in the preceding sentence, for purposes of this
        paragraph, beneficial ownership shall be calculated in accordance with Section
        13(d) of the Securities Exchange Act of 1934, as amended. For purposes of
        this Warrant, in determining the number of outstanding shares of Common Stock
        a
        holder may rely on the number of outstanding shares of Common Stock as reflected
        in (1) the Company’s most recent Form 10-Q or Form 10-K, as the case may
        be, (2) a more recent public announcement by the Company or (3) any
        other notice by the Company or its transfer agent setting forth the number
        of
        shares of Common Stock outstanding. Upon the written request of any holder,
        the
        Company shall promptly, but in no event later than one (1) Business Day
        following the receipt of such notice, confirm in writing to any such holder
        the
        number of shares of Common Stock then outstanding. In any case, the number
        of
        outstanding shares of Common Stock shall be determined after giving effect
        to
        the exercise of Warrants (as defined below) by such holder and its
        affiliates since the date as of which such number of outstanding shares of
        Common Stock was reported.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      Section
        1.  

       

      (a)  This
        Warrant is the common stock purchase warrant (the “Warrant”) issued
        pursuant to the Securities Purchase Agreement (the “Securities
        Purchase Agreement”) dated
        the date hereof between the Company and the Buyers listed on Schedule I
        thereto.

       

      (b)  Definitions.
        The
        following words and terms as used in this Warrant shall have the following
        meanings:

       

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

       

      (ii)  “Business
        Day”
means
        any day other than Saturday, Sunday or other day on which commercial banks
        in
        the City of New York are authorized or required by law to remain
        closed.

       

      (iii)  “Closing
        Bid Price”
means
        the closing bid price of Common Stock as quoted on the Principal Market (as
        reported by Bloomberg Financial Markets (“Bloomberg”) through
        its “Volume at Price” function).

       

      (iv)  “Common
        Stock”
means
        (i) the Company’s common stock, par value $0.01 per share, and
        (ii) any capital stock into which such Common Stock shall have been changed
        or any capital stock resulting from a reclassification of such Common
        Stock.

       

      (v)  “Event
        of Default”
means
        an event of default under the Securities Purchase Agreement or the Convertible
        Debentures issued in connection therewith.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (vi)  “Excluded
        Securities”
means,
        provided such security is issued at a price which is greater than or equal
        to
        the arithmetic average of the Closing Bid Prices of the Common Stock for
        the ten
        (10) consecutive trading days immediately preceding the date of issuance,
        any of the following: (a) any issuance by the Company of securities in
        connection with a strategic partnership or a joint venture (the primary purpose
        of which is not to raise equity capital), (b) any issuance by the Company
        of securities as consideration for a merger or consolidation or the acquisition
        of a business, product, license, or other assets of another person or entity
        and
        (c) options to purchase shares of Common Stock, provided (I) such
        options are issued after the date of this Warrant to employees or directors
        of
        the Company and (II) the exercise price of such options is not less than
        the Closing Bid Price of the Common Stock on the date of issuance of such
        option.

       

      (vii)  “Expiration
        Date”
means
        the date five (5) years from the Issuance Date of this Warrant or, if such
        date falls on a Saturday, Sunday or other day on which banks are required
        or
        authorized to be closed in the City of New York or the State of New York
        or on
        which trading does not take place on the Principal Exchange or automated
        quotation system on which the Common Stock is traded (a “Holiday”),
        the
        next date that is not a Holiday.

       

      (viii)  “Issuance
        Date”
means
        the date hereof.

       

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

       

      (x)  “Other
        Securities”
means
        (i) those options and warrants of the Company issued prior to, and
        outstanding on, the Issuance Date of this Warrant, (ii) the shares of
        Common Stock issuable on exercise of such options and warrants, provided
        such
        options and warrants are not amended after the Issuance Date of this Warrant,
        (iii) the shares of Common Stock issuable upon exercise of this Warrant,
        (iv) shares of Common Stock paid upon conversion of the convertible
        preferred stock paid pursuant to the Amended and Restated Investment Agreement
        and (v) any shares of Common Stock issued in connection with any
        acquisition of the stock or assets of another entity which have been approved
        by
        the Board of Directors of the Company.

       

      (xi)  “Person”
means
        an individual, a limited liability company, a partnership, a joint venture,
        a
        corporation, a trust, an unincorporated organization and a government or
        any
        department or agency thereof.

       

      (xii)  “Principal
        Market”
means
        the New York Stock Exchange, the American Stock Exchange, the Nasdaq National
        Market, the Nasdaq SmallCap Market, whichever is at the time the principal
        trading exchange or market for such security, or the over-the-counter market
        on
        the electronic bulletin board for such security as reported by Bloomberg
        or, if
        no bid or sale information is reported for such security by Bloomberg, then
        the
        average of the bid prices of each of the market makers for such security
        as
        reported in the “pink sheets” by the National Quotation Bureau,
        Inc.

       

      (xiii)  “Securities
        Act”
means
        the Securities Act of 1933, as amended. 

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      (xiv)  “Warrant”
means
        this Warrant and all Warrants issued in exchange, transfer or replacement
        thereof. 

       

      (xv)  “Warrant
        Exercise Price”
shall
        be $0.05 or as subsequently adjusted as provided in Section 8 hereof.

       

      (xvi)  “Warrant
        Shares”
means
        the shares of Common Stock issuable at any time upon exercise of this Warrant.
        

       

      (c)  Other
        Definitional Provisions.
        

       

      (i)  Except
        as
        otherwise specified herein, all references herein (A) to the Company shall
        be deemed to include the Company’s successors and (B) to any applicable law
        defined or referred to herein shall be deemed references to such applicable
        law
        as the same may have been or may be amended or supplemented from time to
        time.

       

      (ii)  When
        used
        in this Warrant, the words “herein”,
        “hereof”,
        and
“hereunder”
        and
        words of similar import, shall refer to this Warrant as a whole and not to
        any
        provision of this Warrant, and the words “Section”,
        “Schedule”,
        and
“Exhibit”
shall
        refer to Sections of, and Schedules and Exhibits to, this Warrant unless
        otherwise specified. 

       

      (iii)  Whenever
        the context so requires, the neuter gender includes the masculine or feminine,
        and the singular number includes the plural, and vice versa. 

       

      Section
        2.  Exercise
        of Warrant.
        

       

      (a)  Subject
        to the terms and conditions hereof, this Warrant may be exercised by the
        holder
        hereof then registered on the books of the Company, pro rata as hereinafter
        provided, at any time on any Business Day on or after the opening of business
        on
        such Business Day, commencing with the first day after the date hereof, and
        prior to 11:59 P.M. Eastern Time on the Expiration Date (i) by
        delivery of a written notice, in the form of the subscription notice attached
        as
Exhibit
        A
        hereto
        (the “Exercise
        Notice”),
        of
        such holder’s election to exercise this Warrant, which notice shall specify the
        number of Warrant Shares to be purchased, payment to the Company of an
        amount equal to the Warrant Exercise Price(s) applicable to the Warrant
        Shares being purchased, multiplied by the number of Warrant Shares (at the
        applicable Warrant Exercise Price) as to which this Warrant is being
        exercised (plus any applicable issue or transfer taxes) (the
“Aggregate
        Exercise Price”) in
        cash or wire transfer of immediately available funds and the surrender of
        this
        Warrant (or an indemnification undertaking with respect to this Warrant in
        the
        case of its loss, theft or destruction) to a common carrier for overnight
        delivery to the Company as soon as practicable following such date
        (“Cash
        Basis”) or
        (ii) if at the time of exercise, the Warrant Shares are not subject to an
        effective registration statement or if an Event of Default has occurred,
        by
        delivering an Exercise Notice and in lieu of making payment of the Aggregate
        Exercise Price in cash or wire transfer, elect instead to receive upon such
        exercise the “Net Number” of shares of Common Stock determined according to the
        following formula (the “Cashless
        Exercise”):
        

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      
        	 	
                Net
                  Number

              	
                =

              	
                (A
                  x B) - (A x C)

              	 
	 	 	 	
                B

              	 

      

       

      For
        purposes of the foregoing formula:

       

      
        	 	
                A

              	
                =

              	
                the
                  total number of Warrant Shares with respect to which this Warrant
                  is then
                  being exercised.

              	 
	 	 	 	 	 
	 	
                B

              	
                =

              	
                the
                  Closing Bid Price of the Common Stock on the date of exercise of
                  the
                  Warrant.

              	 
	 	 	 	 	 
	 	
                C
                  

              	
                =

              	
                the
                  Warrant Exercise Price then in effect for the applicable Warrant
                  Shares at
                  the time of such exercise.

              	 
	 	 	 	 	 

      

       

      In
        the
        event of any exercise of the rights represented by this Warrant in compliance
        with this Section 2, the Company shall on or before the
        fifth (5th) Business Day following the date of receipt of the Exercise
        Notice, the Aggregate Exercise Price and this Warrant (or an indemnification
        undertaking with respect to this Warrant in the case of its loss, theft or
        destruction) and the receipt of the representations of the holder specified
        in Section 6 hereof, if requested by the Company (the “Exercise
        Delivery Documents”),
        and
        if the Common Stock is DTC eligible, 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 The Depository Trust Company; provided, however,
        if the holder who submitted the Exercise Notice requested physical delivery
        of
        any or all of the Warrant Shares, or, if the Common Stock is not DTC eligible
        then the Company shall, on or before the fifth (5th) Business
        Day following receipt of the Exercise Delivery Documents, issue and surrender
        to
        a common carrier for overnight delivery to the address specified in the Exercise
        Notice, a certificate, registered in the name of the holder, for the number
        of
        shares of Common Stock to which the holder shall be entitled pursuant to
        such
        request. Upon delivery of the Exercise Notice and Aggregate Exercise Price
        referred to in clause (i) or (ii) above the holder of this
        Warrant shall be deemed for all corporate purposes to have become the holder
        of
        record of the Warrant Shares with respect to which this Warrant has been
        exercised. In the case of a dispute as to the determination of the Warrant
        Exercise Price, the Closing Bid Price or the arithmetic calculation of the
        Warrant Shares, the Company shall promptly issue to the holder the number
        of
        Warrant Shares that is not disputed and shall submit the disputed determinations
        or arithmetic calculations to the holder via facsimile within one
        (1) Business Day of receipt of the holder’s Exercise Notice. 

       

      (b)  If
        the
        holder and the Company are unable to agree upon the determination of the
        Warrant
        Exercise Price or arithmetic calculation of the Warrant Shares within one
        (1) day of such disputed determination or arithmetic calculation being
        submitted to the holder, then the Company shall immediately submit via facsimile
        (i) the disputed determination of the Warrant Exercise Price or the Closing
        Bid Price to an independent, reputable investment banking firm or (ii) the
        disputed arithmetic calculation of the Warrant Shares to its independent,
        outside accountant. The Company shall cause the investment banking firm or
        the
        accountant, as the case may be, to perform the determinations or calculations
        and notify the Company and the holder of the results no later than forty-eight
        (48) hours from the time it receives the disputed determinations or
        calculations. Such investment banking firm’s or accountant’s determination or
        calculation, as the case may be, shall be deemed conclusive absent manifest
        error.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      (c)  Unless
        the rights represented by this Warrant shall have expired or shall have been
        fully exercised, the Company shall, as soon as practicable and in no event
        later
        than five (5) Business Days after any exercise and at its own expense,
        issue a new Warrant identical in all respects to this Warrant exercised except
        it shall represent rights to purchase the number of Warrant Shares purchasable
        immediately prior to such exercise under this Warrant exercised, less the
        number
        of Warrant Shares with respect to which such Warrant is exercised.

       

      (d)  No
        fractional Warrant Shares are to be issued upon any pro rata exercise of
        this
        Warrant, but rather the number of Warrant Shares issued upon such exercise
        of
        this Warrant shall be rounded up or down to the nearest whole
        number.

       

      (e)  If
        the
        Company or its Transfer Agent shall fail for any reason or for no reason
        to
        issue to the holder within ten (10) days of receipt of the Exercise
        Delivery Documents, a certificate for the number of Warrant Shares to which
        the
        holder is entitled or to credit the holder’s balance account with The Depository
        Trust Company for such number of Warrant Shares to which the holder is entitled
        upon the holder’s exercise of this Warrant, the Company shall, in addition to
        any other remedies under this Warrant or the Placement Agent Agreement or
        otherwise available to such holder, pay as additional damages in cash to
        such
        holder on each day the issuance of such certificate for Warrant Shares is
        not
        timely effected an amount equal to 0.025% of the product of (A) the sum of
        the number of Warrant Shares not issued to the holder on a timely basis and
        to
        which the holder is entitled, and (B) the Closing Bid Price of the Common
        Stock for the trading day immediately preceding the last possible date which
        the
        Company could have issued such Common Stock to the holder without violating
        this
        Section 2.

       

      (f)  If
        within
        ten (10) days after the Company’s receipt of the Exercise Delivery
        Documents, the Company fails to deliver a new Warrant to the holder for the
        number of Warrant Shares to which such holder is entitled pursuant to Section
        2
        hereof, then, in addition to any other available remedies under this Warrant
        or
        the Placement Agent Agreement, or otherwise available to such holder, the
        Company shall pay as additional damages in cash to such holder on each day
        after
        such tenth (10th) day
        that such delivery of such new Warrant is not timely effected in an amount
        equal
        to 0.25% of the product of (A) the number of Warrant Shares represented by
        the portion of this Warrant which is not being exercised and (B) the
        Closing Bid Price of the Common Stock for the trading day immediately preceding
        the last possible date which the Company could have issued such Warrant to
        the
        holder without violating this Section 2.

       

      (g)
         Forced
        Exercise.
        Provided that the shares issuable upon exercise this Warrant are registered
        pursuant to an effective registration statement, the Company at its option
        shall
        have the right at any time commencing on the date hereof if the Company’s
        Closing Bid Price as quoted by Bloomberg, LP is equal to or greater than
        Fifteen
        Cents ($0.15) for ten (10) consecutive Trading Days, to on such tenth
        (10th)
        day
        provide written notice to the Holder (the “Forced
        Exercise Notice”)
        providing the Holder twenty (20) calendar days from the day following receipt
        of
        the Forced Exercise Notice, to exercise this Warrant in whole at the then
        applicable Exercise Price (“Forced
        Exercise Period”).
        Provided however in the event that the Closing Bid Price of the Company’s Common
        Stock during the Forced Exercise Period is equal to or lower than the applicable
        Warrant Exercise Price the Holder shall not be forced to exercise this Warrant,
        in whole or in part, as provided for herein.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      Section
        3.  Covenants
        as to Common Stock.
        The
        Company hereby covenants and agrees as follows:

       

      (a)  This
        Warrant is, and any Warrants issued in substitution for or replacement of
        this
        Warrant will upon issuance be, duly authorized and validly issued.

       

      (b)  All
        Warrant Shares which may be issued upon the exercise of the rights represented
        by this Warrant will, upon issuance, be validly issued, fully paid and
        nonassessable and free from all taxes, liens and charges with respect to
        the
        issue thereof.

       

      (c)  During
        the period within which the rights represented by this Warrant may be exercised,
        the Company will at all times have authorized and reserved at least one hundred
        percent (100%) of the number of shares of Common Stock needed to provide
        for the exercise of the rights then represented by this Warrant and the par
        value of said shares will at all times be less than or equal to the applicable
        Warrant Exercise Price. If at any time the Company does not have a sufficient
        number of shares of Common Stock authorized and available, then the Company
        shall call and hold a special meeting of its stockholders within
        sixty (60) days of that time for the sole purpose of increasing the
        number of authorized shares of Common Stock.

       

      (d)  If
        at any
        time after the date hereof the Company shall file a registration statement,
        the
        Company shall include the Warrant Shares issuable to the holder, pursuant
        to the
        terms of this Warrant and shall maintain, so long as any other shares of
        Common
        Stock shall be so listed, such listing of all Warrant Shares from time to
        time
        issuable upon the exercise of this Warrant; and the Company shall so list
        on
        each national securities exchange or automated quotation system, as the case
        may
        be, and shall maintain such listing of, any other shares of capital stock
        of the
        Company issuable upon the exercise of this Warrant if and so long as any
        shares
        of the same class shall be listed on such national securities exchange or
        automated quotation system.

       

      (e)  The
        Company will not, by amendment of its Articles of Incorporation or through
        any
        reorganization, transfer of assets, consolidation, merger, dissolution, issue
        or
        sale of securities, or any other voluntary action, avoid or seek to avoid
        the
        observance or performance of any of the terms to be observed or performed
        by it
        hereunder, but will at all times in good faith assist in the carrying out
        of all
        the provisions of this Warrant and in the taking of all such action as may
        reasonably be requested by the holder of this Warrant in order to protect
        the
        exercise privilege of the holder of this Warrant against dilution or other
        impairment, consistent with the tenor and purpose of this Warrant. The Company
        will not increase the par value of any shares of Common Stock receivable
        upon
        the exercise of this Warrant above the Warrant Exercise Price then in effect,
        and (ii) will take all such actions as may be necessary or appropriate in
        order that the Company may validly and legally issue fully paid and
        nonassessable shares of Common Stock upon the exercise of this
        Warrant.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      (f)  This
        Warrant will be binding upon any entity succeeding to the Company by merger,
        consolidation or acquisition of all or substantially all of the Company’s
        assets.

       

      Section
        4.  Taxes.
        The
        Company shall pay any and all taxes, except any applicable withholding, which
        may be payable with respect to the issuance and delivery of Warrant Shares
        upon
        exercise of this Warrant.

       

      Section
        5.  Warrant
        Holder Not Deemed a Stockholder.
        Except
        as otherwise specifically provided herein, no holder, as such, of this Warrant
        shall be entitled to vote or receive dividends or be deemed the holder of
        shares
        of capital stock of the Company for any purpose, nor shall anything contained
        in
        this Warrant be construed to confer upon the holder hereof, as such, any
        of the
        rights of a stockholder of the Company or any right to vote, give or withhold
        consent to any corporate action (whether any reorganization, issue of stock,
        reclassification of stock, consolidation, merger, conveyance or otherwise),
        receive notice of meetings, receive dividends or subscription rights, or
        otherwise, prior to the issuance to the holder of this Warrant of the Warrant
        Shares which he or she is then entitled to receive upon the due exercise
        of this
        Warrant. In addition, nothing contained in this Warrant shall be construed
        as
        imposing any liabilities on such holder to purchase any securities (upon
        exercise of this Warrant or otherwise) or as a stockholder of the Company,
        whether such liabilities are asserted by the Company or by creditors of the
        Company. Notwithstanding this Section 5, the Company will provide the holder
        of
        this Warrant with copies of the same notices and other information given
        to the
        stockholders of the Company generally, contemporaneously with the giving
        thereof
        to the stockholders.

       

      Section
        6.  Representations
        of Holder.
        The
        holder of this Warrant, by the acceptance hereof, represents that it is
        acquiring this Warrant and the Warrant Shares for its own account for investment
        only and not with a view towards, or for resale in connection with, the public
        sale or distribution of this Warrant or the Warrant Shares, except pursuant
        to
        sales registered or exempted under the Securities Act; provided, however,
        that
        by making the representations herein, the holder does not agree to hold this
        Warrant or any of the Warrant Shares for any minimum or other specific term
        and
        reserves the right to dispose of this Warrant and the Warrant Shares at any
        time
        in accordance with or pursuant to a registration statement or an exemption
        under
        the Securities Act. The holder of this Warrant further represents, by acceptance
        hereof, that, as of this date, such holder is an “accredited investor” as such
        term is defined in Rule 501(a)(1) of Regulation D promulgated by the
        Securities and Exchange Commission under the Securities Act (an “Accredited
        Investor”).
        Upon
        exercise of this Warrant the holder shall, if requested by the Company, confirm
        in writing, in a form satisfactory to the Company, that the Warrant Shares
        so
        purchased are being acquired solely for the holder’s own account and not as a
        nominee for any other party, for investment, and not with a view toward
        distribution or resale and that such holder is an Accredited Investor. If
        such
        holder cannot make such representations because they would be factually
        incorrect, it shall be a condition to such holder’s exercise of this Warrant
        that the Company receive such other representations as the Company considers
        reasonably necessary to assure the Company that the issuance of its securities
        upon exercise of this Warrant shall not violate any United States or state
        securities laws.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      Section
        7.  Ownership
        and Transfer.
        

       

      (a)  The
        Company shall maintain at its principal executive offices (or such other
        office
        or agency of the Company as it may designate by notice to the holder hereof),
        a
        register for this Warrant, in which the Company shall record the name and
        address of the person in whose name this Warrant has been issued, as well
        as the
        name and address of each transferee. The Company may treat the person in
        whose
        name any Warrant is registered on the register as the owner and holder thereof
        for all purposes, notwithstanding any notice to the contrary, but in all
        events
        recognizing any transfers made in accordance with the terms of this
        Warrant.

       

      Section
        8.  Adjustment
        of Warrant Exercise Price and Number of Shares.
        The
        Warrant Exercise Price and the number of shares of Common Stock issuable
        upon
        exercise of this Warrant shall be adjusted from time to time as
        follows:

       

      (a)  Adjustment
        of Warrant Exercise Price and Number of Shares upon Issuance of Common
        Stock.
        If and
        whenever on or after the Issuance Date of this Warrant, the Company issues
        or
        sells, or is deemed to have issued or sold, any shares of Common
        Stock (other than (i) Excluded Securities and (ii) shares of
        Common Stock which are issued or deemed to have been issued by the Company
        in
        connection with an Approved Stock Plan or upon exercise or conversion of
        the
        Other Securities) for a consideration per share less than a price (the
“Applicable
        Price”) equal
        to the Warrant Exercise Price in effect immediately prior to such issuance
        or
        sale, then immediately after such issue or sale the Warrant Exercise Price
        then
        in effect shall be reduced to an amount equal to such consideration per share.
        Upon each such adjustment of the Warrant Exercise Price hereunder, the number
        of
        Warrant Shares issuable upon exercise of this Warrant shall be adjusted to
        the
        number of shares determined by multiplying the Warrant Exercise Price in
        effect
        immediately prior to such adjustment by the number of Warrant Shares issuable
        upon exercise of this Warrant immediately prior to such adjustment and dividing
        the product thereof by the Warrant Exercise Price resulting from such
        adjustment.

       

      (b)  Effect
        on Warrant Exercise Price of Certain Events.
        Excluding the issuance of Excluded Securities or the exercise or conversion
        of
        Other Securities, for purposes of determining the adjusted Warrant Exercise
        Price under Section 8(a) above, the following shall be
        applicable:

       

      (i)  Issuance
        of Options.
        If
        after the date hereof, the Company in any manner grants 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 of any convertible
        securities issuable upon exercise of any 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 8(b)(i),
        the
        lowest price per share for which one share of Common Stock is issuable upon
        exercise of such Options or upon conversion or exchange of such Convertible
        Securities 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 granting or sale of the Option, upon exercise of the
        Option or upon conversion or exchange of any convertible security issuable
        upon
        exercise of such Option. No further adjustment of the Warrant Exercise Price
        shall be made upon the actual issuance of such 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 of such convertible
        securities.

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      (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 the
        conversion or exchange 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 8(b)(ii), the lowest price per share for which one share of Common
        Stock is issuable upon such conversion or exchange shall be equal to the
        sum of
        the lowest amounts of consideration (if any) received or receivable by the
        Company with respect to one share of Common Stock upon the issuance or sale
        of
        the convertible security and upon conversion or exchange of such convertible
        security. No further adjustment of the Warrant Exercise Price shall be made
        upon
        the actual issuance of such Common Stock upon conversion or exchange 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
        Warrant Exercise Price had been or are to be made pursuant to other provisions
        of this Section 8(b), no further adjustment of the Warrant Exercise Price
        shall
        be made by reason of such issue or sale. 

       

      (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 or exchange of any convertible
        securities, or the rate at which any convertible securities are convertible into
        or exchangeable for Common Stock changes at any time, the Warrant Exercise
        Price
        in effect at the time of such change shall be adjusted to the Warrant Exercise
        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 and the number of Warrant Shares issuable
        upon
        exercise of this Warrant shall be correspondingly readjusted. For purposes
        of
        this Section 8(b)(iii), if the terms of any Option or convertible security
        that
        was outstanding as of the Issuance Date of this Warrant 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 pursuant to this Section 8(b) shall
        be made if such adjustment would result in an increase of the Warrant Exercise
        Price then in effect.

       

      (c)  Effect
        on Warrant Exercise Price of Certain Events.
        Excluding the issuance of Excluded Securities or the exercise or conversion
        of
        Other Securities, for purposes of determining the adjusted Warrant Exercise
        Price under Sections 8(a) and 8(b), the following shall be
        applicable:

       

      (i)  Calculation
        of Consideration Received.
        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 therefore will
        be
        deemed to be the net amount received by the Company therefore. If any Common
        Stock, Options or convertible securities are issued or sold for a consideration
        other than cash, the amount of such consideration received by the Company
        will
        be the fair value of such consideration, except where such consideration
        consists of marketable securities, in which case the amount of consideration
        received by the Company will be the market price of such securities on the
        date
        of receipt of such securities. 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 therefore 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 holders of Warrants representing at least
        two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants
        then outstanding. 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 holders of Warrants representing at least
        two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants
        then outstanding. The determination of such appraiser shall be final and
        binding
        upon all parties and the fees and expenses of such appraiser shall be borne
        jointly by the Company and the holders of Warrants.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      (ii)  Integrated
        Transactions.
        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 a consideration of $.01.

       

      (iii)  Treasury
        Shares.
        The
        number of shares of Common Stock outstanding at any given time does not include
        shares owned or held by or for the account of the Company, and the disposition
        of any shares so owned or held will be considered an issue or sale of Common
        Stock.

       

      (iv)  Record
        Date.
        If the
        Company takes a record of the holders of Common Stock for the purpose of
        entitling them (1) to receive a dividend or other distribution payable in
        Common Stock, Options or in convertible securities or (2) 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 shares of
        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.

       

      (d)  Adjustment
        of Warrant Exercise Price upon Subdivision or Combination of Common
        Stock.
        If the
        Company at any time after the date of issuance of this Warrant subdivides
        (by
        any stock split, stock dividend, recapitalization or otherwise) one or more
        classes of its outstanding shares of Common Stock into a greater number of
        shares, any Warrant Exercise Price in effect immediately prior to such
        subdivision will be proportionately reduced and the number of shares of Common
        Stock obtainable upon exercise of this Warrant will be proportionately
        increased. If the Company at any time after the date of issuance of this
        Warrant
        combines (by combination, reverse stock split or otherwise) one or more
        classes of its outstanding shares of Common Stock into a smaller number of
        shares, any Warrant Exercise Price in effect immediately prior to such
        combination will be proportionately increased and the number of Warrant Shares
        issuable upon exercise of this Warrant will be proportionately decreased.
        Any
        adjustment under this Section 8(d) shall become effective at the close
        of business on the date the subdivision or combination becomes
        effective.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      (e)  Distribution
        of Assets.
        If the
        Company shall declare or make any dividend or other distribution of its assets
        (or rights to acquire its assets) to holders of Common Stock, by way of
        return of capital or otherwise (including, without limitation, any distribution
        of cash, stock or other securities, property or options by way of a dividend,
        spin off, reclassification, corporate rearrangement or other similar
        transaction) (a “Distribution”),
        at
        any time after the issuance of this Warrant, then, in each such
        case:

       

      (i)  any
        Warrant Exercise Price in effect immediately prior to the close of business
        on
        the record date fixed for the determination of holders of Common Stock
        entitled to
        receive the Distribution shall be reduced, effective as of the close of business
        on such record date, to a price determined by multiplying such Warrant Exercise
        Price by a fraction of which (A) the numerator shall be the Closing Sale
        Price of the Common Stock on the trading day immediately preceding such record
        date minus the value of the Distribution (as determined in good faith by
        the
        Company’s Board of Directors) applicable to one share of Common Stock, and
        (B) the denominator shall be the Closing Sale Price of the Common Stock on
        the trading day immediately preceding such record date; and

       

      (ii)  either
        (A) the number of Warrant Shares obtainable upon exercise of this Warrant
        shall be increased to a number of shares equal to the number of shares of
        Common
        Stock obtainable immediately prior to the close of business on the record
        date
        fixed for the determination of holders of Common Stock entitled to receive
        the
        Distribution multiplied by the reciprocal of the fraction set forth in the
        immediately preceding clause (i), or (B) in the event that the Distribution
        is of common stock of a company whose common stock is traded on a national
        securities exchange or a national automated quotation system, then the holder
        of
        this Warrant shall receive an additional warrant to purchase Common Stock,
        the
        terms of which shall be identical to those of this Warrant, except that such
        warrant shall be exercisable into the amount of the assets that would have
        been
        payable to the holder of this Warrant pursuant to the Distribution had the
        holder exercised this Warrant immediately prior to such record date and with
        an
        exercise price equal to the amount by which the exercise price of this Warrant
        was decreased with respect to the Distribution pursuant to the terms of the
        immediately preceding clause (i).

       

      (f)  Certain
        Events.
        If any
        event occurs of the type contemplated by the provisions of this Section 8
        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 Warrant Exercise Price and the number
        of
        shares of Common Stock obtainable upon exercise of this Warrant so as to
        protect
        the rights of the holders of the Warrants; provided, except as set forth
        in
        section 8(d), that no such adjustment pursuant to this Section 8(f) will
        increase the Warrant Exercise Price or decrease the number of shares of Common
        Stock obtainable as otherwise determined pursuant to this Section
        8.

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      (g)  Notices.

       

      (i)  Immediately
        upon any adjustment of the Warrant Exercise Price, the Company will give
        written
        notice thereof to the holder of this Warrant, setting forth in reasonable
        detail, and certifying, the calculation of such adjustment.

       

      (ii)  The
        Company will give written notice to the holder of this Warrant at least ten
        (10) days prior to the date on which the Company closes its books or takes
        a record (A) with respect to any dividend or distribution upon the Common
        Stock, (B) with respect to any pro rata subscription offer to holders of
        Common Stock or (C) for determining rights to vote with respect to any
        Organic Change (as defined below), dissolution or liquidation, provided that
        such information shall be made known to the public prior to or in conjunction
        with such notice being provided to such holder.

       

      (iii)  The
        Company will also give written notice to the holder of this Warrant at least
        ten
        (10) days prior to the date on which any Organic Change, dissolution or
        liquidation will take place, provided that such information shall be made
        known
        to the public prior to or in conjunction with such notice being provided
        to such
        holder.

       

      Section
        9.  Purchase
        Rights; Reorganization, Reclassification, Consolidation, Merger or
        Sale.
        

       

      (a)  In
        addition to any adjustments pursuant to Section 8 above, 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 of this Warrant will be entitled to acquire, upon the terms
        applicable to such Purchase Rights, the aggregate Purchase Rights which such
        holder could have acquired if such holder had held the number of shares of
        Common Stock acquirable upon complete exercise of this Warrant 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.

       

      (b)  Any
        recapitalization, reorganization, reclassification, consolidation, merger,
        sale
        of all or substantially all of the Company’s assets to another Person or other
        transaction in each case which is effected in such a way that holders of
        Common
        Stock are entitled to receive (either directly or upon subsequent
        liquidation) stock, securities or assets with respect to or in exchange for
        Common Stock is referred to herein as an “Organic
        Change.”
Prior
        to the consummation of any (i) sale of all or substantially all of the
        Company’s assets to an acquiring Person or (ii) other Organic Change
        following which the Company is not a surviving entity, the Company will secure
        from the Person purchasing such assets or the successor resulting from such
        Organic Change (in each case, the “Acquiring
        Entity”) a
        written agreement (in form and substance satisfactory to the holders of Warrants
        representing at least two-thirds (iii) of the Warrant Shares issuable upon
        exercise of the Warrants then outstanding) to deliver to each holder of
        Warrants in exchange for such Warrants, a security of the Acquiring Entity
        evidenced by a written instrument substantially similar in form and substance
        to
        this Warrant and satisfactory to the holders of the Warrants (including an
        adjusted warrant exercise price equal to the value for the Common Stock
        reflected by the terms of such consolidation, merger or sale, and exercisable
        for a corresponding number of shares of Common Stock acquirable and receivable
        upon exercise of the Warrants without regard to any limitations on exercise,
        if
        the value so reflected is less than any Applicable Warrant Exercise Price
        immediately prior to such consolidation, merger or sale). Prior to the
        consummation of any other Organic Change, the Company shall make appropriate
        provision (in form and substance satisfactory to the holders of Warrants
        representing a majority of
        the
        Warrant Shares issuable upon exercise of the Warrants then outstanding) to
        insure that each of the holders of the Warrants will thereafter have the
        right
        to acquire and receive in lieu of or in addition to (as the case may
        be) the Warrant Shares immediately theretofore issuable and receivable upon
        the exercise of such holder’s Warrants (without regard to any limitations
        on exercise), such shares of stock, securities or assets that would have
        been
        issued or payable in such Organic Change with respect to or in exchange for
        the
        number of Warrant Shares which would have been issuable and receivable upon
        the
        exercise of such holder’s Warrant as of the date of such Organic Change (without
        taking into account any limitations or restrictions on the exercisability
        of
        this Warrant).

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      Section
        10.  Lost,
        Stolen, Mutilated or Destroyed Warrant.
        If this
        Warrant is lost, stolen, mutilated or destroyed, the Company shall promptly,
        on
        receipt of an indemnification undertaking (or, in the case of a mutilated
        Warrant, the Warrant), issue a new Warrant of like denomination and tenor
        as
        this Warrant so lost, stolen, mutilated or destroyed.

       

      Section
        11.  Notice.
        Any
        notices, consents, waivers or other communications required or permitted
        to be
        given under the terms of this Warrant 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 receipt
        is received by the sending party transmission is mechanically or electronically
        generated and kept on file by the sending party); or (iii) one Business 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 Cornell:

              	
                Cornell
                  Capital Partners, LP

              
	 	
                101
                  Hudson Street - Suite 3700

              
	 	
                Jersey
                  City, NJ 07302

              
	 	
                Attention: Mark
                  A. Angelo

              
	 	
                Telephone: (201) 985-8300

              
	 	
                Facsimile: (201) 985-8266

              
	 	 
	
                With
                  Copy to:

              	
                David
                  Gonzalez, Esq.

              
	 	
                101
                  Hudson Street - Suite 3700

              
	 	
                Jersey
                  City, NJ 07302

              
	 	
                Telephone: (201) 985-8300

              
	 	
                Facsimile: (201) 985-8266

              

      

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      
        	
                If
                  to the Company, to:

              	
                Neomedia
                  Technologies, Inc. 

              
	 	
                2201
                  Second Street, Suite #600

              
	 	
                Fort
                  Myers, FL 33901

              
	 	
                Attention: Charles
                  T. Jensen

              
	 	
                Telephone: (239) 337-3434

              
	 	
                Facsimile: (239) 337-3668

              
	 	 
	
                With
                  a copy to:

              	
                Kirkpatrick
                  & Lockhart Nicholson Graham, LLP

              
	 	
                201
                  South Biscayne Boulevard, Suite 2000

              
	 	
                Miami,
                  FL 33131

              
	 	
                Attention: Clayton
                  E. Parker, Esquire

              
	 	
                Telephone: (305) 539-3306
                  

              
	 	
                Facsimile: (305) 358-7095
                  

              
	 	 

      

      

      If
        to a
        holder of this Warrant, to it at the address and facsimile number set forth
        on
Exhibit C
        hereto,
        with copies to such holder’s representatives as set forth on Exhibit C,
        or at
        such other address and facsimile as shall be delivered to the Company upon
        the
        issuance or transfer of this Warrant. Each party shall provide five days’ prior
        written notice to the other party of any change in address or facsimile number.
        Written confirmation of receipt (A) given by the recipient of such notice,
        consent, facsimile, waiver or other communication, (or (B) 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.

       

      Section
        12.  Date.
        The
        date of this Warrant is set forth on page 1 hereof. This Warrant, in all
        events, shall be wholly void and of no effect after the close of business
        on the
        Expiration Date, except that notwithstanding any other provisions hereof,
        the
        provisions of Section 8(b) shall continue in full force and effect
        after such date as to any Warrant Shares or other securities issued upon
        the
        exercise of this Warrant.

       

      Section
        13.  Amendment
        and Waiver.
        Except
        as otherwise provided herein, the provisions of the Warrants may be amended
        and
        the Company may take any action herein prohibited, or omit to perform any
        act
        herein required to be performed by it, only if the Company has obtained the
        written consent of the holders of Warrants representing at least two-thirds
        of
        the Warrant Shares issuable upon exercise of the Warrants then outstanding;
        provided that, except for Section 8(d), no such action may increase the Warrant
        Exercise Price or decrease the number of shares or class of stock obtainable
        upon exercise of any Warrant without the written consent of the holder of
        such
        Warrant.

       

      Section
        14.  Descriptive
        Headings; Governing Law.
        The
        descriptive headings of the several sections and paragraphs of this Warrant
        are
        inserted for convenience only and do not constitute a part of this Warrant.
        The
        corporate laws of the State of Delaware shall govern all issues concerning
        the
        relative rights of the Company and its stockholders. All other questions
        concerning the construction, validity, enforcement and interpretation of
        this
        Agreement shall be governed by the internal laws of the State of New Jersey,
        without giving effect to any choice of law or conflict of law provision or
        rule
        (whether of the State of New Jersey or any other jurisdictions) that would
        cause the application of the laws of any jurisdictions other than the State
        of
        New Jersey. Each party hereby irrevocably submits to the exclusive jurisdiction
        of the state and federal courts sitting in Hudson County and the United States
        District Court for the District of New Jersey, for the adjudication of any
        dispute hereunder or in connection herewith or therewith, or with any
        transaction contemplated hereby or discussed herein, and hereby irrevocably
        waives, and agrees not to assert in any suit, action or proceeding, any claim
        that it is not personally subject to the jurisdiction of any such court,
        that
        such suit, action or proceeding is brought in an inconvenient forum or that
        the
        venue of such suit, action or proceeding is improper. Each party hereby
        irrevocably waives personal service of process and consents to process being
        served in any such suit, action or proceeding by mailing a copy thereof to
        such
        party at the address for such notices to it under this Agreement and agrees
        that
        such service shall constitute good and sufficient service of process and
        notice
        thereof. Nothing contained herein shall be deemed to limit in any way any
        right
        to serve process in any manner permitted by law. 

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

       

      Section
        15.  Waiver
        of Jury Trial.
        AS A MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT,
        THE
        PARTIES HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
        RELATED IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS
        ASSOCIATED WITH THIS TRANSACTION.

       

      

      REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK

    

     

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Warrant to be signed as of the date first set forth
      above.

     

    
      	 	 	 
	 	
              NEOMEDIA
                TECHNOLOGIES, INC.

            
	 
 	 
 	 
 
	Date: 	By:  	/s/ Charles
              T. Jensen
	 	
              

              Name: Charles
                T. Jensen

            
	 	
              Title: President
                & Chief Executive
                Officer

            

    

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A TO WARRANT

     

    EXERCISE
      NOTICE

     

    TO
      BE EXECUTED 

    BY
      THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

     

    NEOMEDIA
      TECHNOLOGIES, INC.

     

    The
      undersigned holder hereby exercises the right to purchase ______________ of
      the
      shares of Common Stock (“Warrant
      Shares”) of
      Neomedia Technologies, Inc. (the “Company”),
      evidenced by the attached Warrant (the “Warrant”).
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Warrant.

     

    Specify
      Method of exercise by check mark:

     

    
      	 	
              1.

            	
              o

            	
              Cash
                Exercise

            	 
	 	 	
              (a)

            	
              Payment
                of Warrant Exercise Price.
                The holder shall pay the Aggregate Exercise Price of $______________
                to
                the Company in accordance with the terms of the Warrant.

            	 
	 	 	
              (b)

            	
              Delivery
                of Warrant Shares.
                The Company shall deliver to the holder _____ Warrant Shares in accordance
                with the terms of the Warrant.

            	 
	 	
              2.

            	
              
                o

              

            	
              Cashless
                Exercise

            	 
	 	 	
              (a)

            	
              Payment
                of Warrant Exercise Price.
                In lieu of making payment of the Aggregate Exercise Price, the holder
                elects to receive upon such exercise the Net Number of shares of
                Common
                Stock determined in accordance with the terms of the
                Warrant.

            	 
	 	 	
              (b)

            	
              Delivery
                of Warrant Shares.
                The Company shall deliver to the holder _____ Warrant Shares in accordance
                with the terms of the Warrant.

            	 

    

     

    Date:
      _______________ __, ______

    

    Name
      of
      Registered Holder

    

    By:
      __________________________________

    Name:
      ________________________________

    Title:
      _________________________________

    

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    

    EXHIBIT
      B TO WARRANT

     

    FORM
      OF WARRANT POWER

     

    FOR
      VALUE RECEIVED,
      the
      undersigned does hereby assign and transfer to ________________, Federal
      Identification No. __________, a warrant to purchase ____________ shares of
      the capital stock of Neomedia Technologies, Inc. represented by warrant
      certificate no. _____, standing in the name of the undersigned on the books
      of said corporation. The undersigned does hereby irrevocably constitute and
      appoint ______________, attorney to transfer the warrants of said corporation,
      with full power of substitution in the premises.

     

    
      	
              Dated:
                __________________________________      

            	_____________________________________ 
	 	 
	 	
              By:
                __________________________________

            
	 	
              Name:
                ________________________________

            
	 	
              Title:
                _________________________________

            

    

    

    
      
         

      

        B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]