Document:

COMMON STOCK PURCHASE AGREEMENT

EXHIBIT 4.9

 

COMMON STOCK PURCHASE AGREEMENT

This COMMON STOCK PURCHASE AGREEMENT (this “Agreement”) is dated as of July 19, 2002 by and between Summus,
Inc. (USA), a Florida corporation (the “Company”) and Talisman Management Limited (the
“Purchaser”).

WHEREAS, the parties desire that, upon the terms and subject to the conditions contained herein, the Company shall have
the right to issue and sell to Purchaser from time to time as provided herein, and Purchaser shall be obligated to purchase, up to
$10,000,000 of Common Stock and the Warrant subject to the terms herein; and

WHEREAS, such investments will be made by the Purchaser as statutory underwriter of a registered indirect primary
offering of such Common Stock by the Company.

NOW, THEREFORE, in consideration of the foregoing premises, and the promises and covenants herein contained, the receipt
and sufficiency of which are hereby acknowledged by the parties hereto, the parties, intending to be legally bound, hereby agree as
follows:

ARTICLE 1

PURCHASE AND SALE OF COMMON STOCK

Section
1.1.          Purchase and Sale of Stock.  Subject to the terms and conditions of this Agreement, the
Company may sell and issue to the Purchaser and the Purchaser shall be irrevocably obligated to purchase from the Company, up to an
aggregate of, $10,000,000 of Common Stock (the “Commitment Amount”) and the Warrant, subject to the terms
herein.

Section
1.2.          Purchase Price and Initial Closing.  The Company agrees to issue and sell to the Purchaser
and, in consideration of and in express reliance upon the representations, warranties, covenants, terms and conditions of this
Agreement, the Purchaser agrees to purchase that number of the Shares to be issued in connection with each Draw Down.  The
delivery of executed documents under this Agreement and the other agreements referred to herein and the payment of the fees set
forth in Article I of the Escrow Agreement, attached as Exhibit B hereto, (the “Initial Closing”) shall
take place at the offices of Feldman Weinstein LLP, 420 Lexington Avenue, Suite 2620, New York, New York 10170 (i) within fifteen
(15) days from the date hereof, or (ii) such other time and place or on such date as the Purchaser and the Company may agree upon
(the “Initial Closing Date”).  Each party shall deliver all documents, instruments and writings required to
be delivered by such party pursuant to this Agreement at or prior to the Initial Closing.

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ARTICLE 2

REPRESENTATIONS AND WARRANTIES

Section
2.1.          Representation and Warranties of the Company. 
The Company hereby makes the following
representations and warranties to the Purchaser, in each case except as set forth in the SEC Documents or on the Disclosure Letter
prepared by the Company and delivered concurrently herewith, or as contemplated by this Agreement:

(a)         
Organization, Good Standing and Power.  The Company is a corporation duly incorporated validly existing and in good
standing under the laws of Florida and has all requisite corporate authority to own, lease and operate its properties and assets
and to carry on its business as now being conducted, except as would not have a Material Adverse Effect.  The Company does not
have any subsidiaries and does not own more than fifty percent (50%) of or control any other business entity. 
The Company is
duly qualified to do business and is in good standing as a foreign corporation in every jurisdiction in which the nature of the
business conducted or property owned by it makes such qualification necessary, other than those in which the failure so to qualify
would not have a Material Adverse Effect.

(b)          Authorization, Enforcement.  (i) The Company
has the requisite corporate power and corporate authority to enter into and perform its obligations under the Transaction Documents
and to issue the Draw Down Shares pursuant to their respective terms, (ii) the execution and delivery of the Transaction Documents
by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all
necessary corporate action and no further consent or authorization of the Company or its Board of Directors or stockholders is
required, and (iii) the Transaction Documents have been duly executed and delivered by the Company and at the Initial Closing shall
constitute valid and binding obligations of the Company enforceable against the Company in accordance with their terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship,
receivership or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by
other equitable principles of general application.

(c)         
Capitalization.  The authorized capital stock of the Company consists of 100,000,000 shares of Common Stock of which
46,946,152 shares are issued and outstanding and 5,000,000 preferred shares, 2,237 of which are issued and outstanding.  All
of the outstanding shares of the Company’s Common Stock have been duly and validly authorized and are fully paid and
non-assessable, except as set forth in the SEC Documents.  No shares of Common Stock are entitled to preemptive rights or
registration rights and there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company. 
Furthermore, there are no contracts, commitments, understandings, or arrangements by which the Company is or may become bound to
issue additional shares of the capital stock of the Company or options, securities or rights convertible into shares of Common
Stock.  The Company is

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not a party to any agreement granting registration rights to any person with respect to any of its
equity or debt securities.  The Company is not a party to, and it has no knowledge of, any agreement restricting the voting or
transfer of any shares of the capital stock of the Company.  The offer and sale of all capital stock, convertible securities,
rights, warrants, or options of the Company issued prior to the Initial Closing complied in all material respects with all
applicable federal and state securities laws, and no stockholder has a right of rescission or damages with respect thereto which
would have a Material Adverse Effect.  The Company has made available to the Purchaser true and correct copies of the
Company’s articles or certificate of incorporation as in effect on the date hereof (the “Charter”), and
the Company’s bylaws as in effect on the date hereof (the “Bylaws”).  The Company has not received
any notice from the Principal Market questioning or threatening the continued inclusion of the Common Stock on such market.

(d)          
Issuance of
Shares.  The Warrant Shares to be issued upon exercise of the Warrant have been duly authorized by all necessary
corporate action and, when paid for and issued in accordance with the terms hereof and the Warrant, the Warrant Shares shall be
validly issued and outstanding, fully paid and non-assessable, and the Purchaser shall be entitled to all rights accorded to a
holder of Common Stock.

(e)         
No
Conflicts.  The execution, delivery and performance of this Agreement by the Company and the consummation by the Company
of the transactions contemplated herein do not and will not (i) violate any provision of the Company’s Charter or Bylaws,
(ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust,
indenture, note, bond, license, lease agreement, instrument or obligation to which the Company is a party, (iii) create or impose a
lien, charge or encumbrance on any property of the Company under any agreement or any commitment to which the Company is a party or
by which the Company is bound or by which any of its respective properties or assets are bound, or (iv) result in a violation of
any federal, state or local statute, rule, regulation, order, judgment or decree (including any federal or state securities laws
and regulations) applicable to the Company or any of its subsidiaries or by which any property or asset of the Company or any of
its subsidiaries are bound, except, in all cases, for such conflicts, defaults, termination, amendments, accelerations,
cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect.  The business of
the Company and its subsidiaries is not being conducted in violation of any laws, ordinances or regulations of any governmental
entity, except for violations which singularly or in the aggregate do not and will not have a Material Adverse Effect.  The
Company is not required under any federal, state or local law, rule or regulation to obtain any consent, authorization or order of,
or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its
obligations under this Agreement, or issue and sell the Shares in accordance with the terms hereof (other than any filings which
may be required to be made by the Company with the SEC or state securities administrators subsequent to the Initial Closing and any
registration statement which may be filed pursuant hereto); provided, however, that for purpose of the
representations made in this sentence, the

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Company is assuming and relying upon the accuracy of the relevant representations and
agreements of the Purchaser herein.

(f)         
SEC Documents, Financial Statements.  The Common Stock of the Company is registered pursuant to Section 12(g) of the
Exchange Act, and the Company has timely filed all reports, schedules, forms, statements and other documents required to be filed
by it with the SEC pursuant to the reporting requirements of the Exchange Act, including material filed pursuant to Section 13(a)
or 15(d) of the Exchange Act.  The Company has not provided to the Purchaser any information which, according to applicable
law, rule or regulation, should have been disclosed publicly by the Company but which has not been so disclosed, other than with
respect to the transactions contemplated by this Agreement.  As of their respective filing dates, the SEC Documents complied
in all material respects with the requirements of the Exchange Act or the Securities Act, as applicable, and the rules and
regulations of the SEC promulgated thereunder applicable to such documents, and, as of their respective filing dates, none of the
SEC Documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the circumstances under which they were made, not
misleading.  The financial statements of the Company included in the SEC Documents comply as to form in all material respects
with applicable accounting requirements under GAAP and the published rules and regulations of the SEC. 
Such financial
statements have been prepared in accordance with GAAP applied on a consistent basis during the periods involved (except (i) as may
be otherwise indicated in such financial statements or the notes thereto or (ii) in the case of unaudited interim statements, to
the extent they may not include footnotes or may be condensed or summary statements and fairly present in all material respects the
financial position of the Company and its subsidiaries as of the dates thereof and the results of operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).

(g)         
Subsidiaries. 
The SEC Documents or the Disclosure Schedule sets forth each subsidiary of the Company, showing the jurisdiction of its
incorporation or organization and showing the percentage of the Company’s ownership of the outstanding stock or other
interests of such subsidiary.  For the purposes of this Agreement, “subsidiary” shall mean any corporation
or other entity of which at least a majority of the securities or other ownership interests having ordinary voting power
(absolutely or contingently) for the election of directors or other persons performing similar functions are at the time owned
directly or indirectly by the Company and/or any of its other subsidiaries.  All of the issued and outstanding shares of
capital stock of each subsidiary have been duly authorized and validly issued, and are fully paid and non-assessable.  Neither
the Company nor any subsidiary is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire
any shares of the capital stock of any subsidiary or any convertible securities, rights, warrants or options of the type described
in the preceding sentence. 

(h)          No Material Adverse
Effect.  Since the date of the financial statement contained in the most recently filed Form 10-Q or Form 10-K,
whichever is

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most current, no Material Adverse Effect has occurred or exists with respect to the Company.

(i)         
No Undisclosed Liabilities.  Since the date of the financial statement contained in the most recently Form 10-Q or Form
10-K, whichever is most current, neither the Company nor any of its subsidiaries has any liabilities, obligations, claims or losses
(whether liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) that would be required to be
disclosed on a balance sheet of the Company or any subsidiary (including the notes thereto) in conformity with GAAP or which would
have to be disclosed in the SEC Documents, other than those incurred in the ordinary course of the Company’s or its
subsidiaries’ respective businesses since such date and which, individually or in the aggregate, do not or would not have a
Material Adverse Effect on the Company or its subsidiaries.

(j)         
No Undisclosed Events or Circumstances. Since the date of the financial statement contained in the most recently filed Form
10- Q (or 10-QSB) or Form 10-K (or 10-KSB), whichever is most current, no event or circumstance has occurred or exists with respect
to the Company or its businesses, properties, prospects, operations or financial condition, that, under applicable law, rule or
regulation, requires public disclosure or announcement prior to the date hereof by the Company but which has not been so publicly
announced or disclosed in the SEC Documents.

(k)           
Indebtedness. 
The SEC Documents or the Disclosure Schedule sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of
the Company or any subsidiary, or for which the Company or any subsidiary has commitments.  For the purposes of this
Agreement, “Indebtedness” shall mean (A) any liabilities for borrowed money or amounts owed in excess of
$500,000 (other than trade accounts payable incurred in the ordinary course of business), (B) all guaranties, endorsements and
contingent obligations in respect of Indebtedness of others, whether or not the same are or should be reflected in the
Company’s balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of business; and (C) the present value of any lease payments in excess of
$500,000 due under leases required to be capitalized in accordance with GAAP. 
Neither the Company nor any subsidiary is in
default with respect to any Indebtedness.

(l)         
Title to Assets.  Each of the Company and the subsidiaries has good and marketable title to all of its real and
personal property reflected in the SEC Documents, free of any mortgages, pledges, charges, liens, security interests or other
encumbrances, except for those that do not cause a Material Adverse Effect. 
All said leases of the Company and each of its
subsidiaries are valid and subsisting and in full force and effect.

(m)         
Actions Pending. 
As of the date hereof, there is no action, suit, claim, investigation or proceeding pending or, to the knowledge of the Company,
threatened against the Company or any subsidiary which questions the validity of this Agreement or the transactions contemplated
hereby or any action taken or to be taken

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pursuant hereto or thereto.  There is no action, suit, claim, investigation or
proceeding pending or, to the knowledge of the Company, threatened, against or involving the Company, any subsidiary or any of
their respective properties or assets, except as would not have a Material Adverse Effect.  Except as would not have a
Material Adverse Effect, there are no outstanding orders, judgments, injunctions, awards or decrees of any court, arbitrator or
governmental or regulatory body against the Company or any subsidiary.

(n)            Compliance with
Law.  The Company and each of its subsidiaries have all franchises, permits, licenses, consents and other governmental
or regulatory authorizations and approvals necessary for the conduct of their respective businesses as now being conducted by them
unless the failure to possess such franchises, permits, licenses, consents and other governmental or regulatory authorizations and
approvals, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

(o)            Taxes.  The
Company and each subsidiary has filed all material Tax Returns which it is required to file under applicable laws; all such
material Tax Returns are true and accurate and have been prepared in each case, in all material respects in compliance with all
applicable laws; the Company has paid all material Taxes due and owing by it or any subsidiary (whether or not such material Taxes
are required to be shown on a Tax Return) and has withheld and paid over to the appropriate taxing authorities all material Taxes
which it is required to withhold from amounts paid or owing to any employee, stockholder, creditor or other third parties; and
since December 31, 2001, the charges, accruals and reserves for material Taxes with respect to the Company (including any
provisions for deferred income taxes) reflected on the books of the Company are in the aggregate adequate to cover any Tax
liabilities of the Company if its current tax year were treated as ending on the date hereof.

No material written claim has been made by a taxing authority in a jurisdiction where the Company does not file tax returns that
the Company or any subsidiary is or may be subject to taxation by that jurisdiction.  Except as would not have a Material
Adverse Effect, (i) there are no foreign, federal, state or local tax audits or administrative or judicial proceedings pending
or being conducted with respect to the Company or any subsidiary; (ii) no information related to Tax matters has been
requested by any foreign, federal, state or local taxing authority; and, (iii) except as disclosed above, no written notice
indicating an intent to open an audit or other review has been received by the Company or any subsidiary from any foreign, federal,
state or local taxing authority.  The Company (A) has not executed or entered into a closing agreement pursuant to § 7121
of the Internal Revenue Code or any predecessor provision thereof or any similar provision of state, local or foreign law; and (B)
has not agreed to or is required to make any adjustments pursuant to § 481 (a) of the Internal Revenue Code or any similar
provision of state, local or foreign law by reason of a change in accounting method initiated by the Company or any of its
subsidiaries or has any knowledge that the IRS has proposed any such adjustment or change in accounting method, or has any
application pending with any taxing authority requesting permission for any changes in accounting methods that relate to the
business or operations of the Company.  The Company has not been a United States real property holding corporation within the

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meaning of § 897(c)(2) of the Internal Revenue Code during the applicable period specified in § 897(c)(1)(A)(ii) of the
Internal Revenue Code.

The Company is not liable for the Taxes of another person that is not a subsidiary of the Company under Treas. Reg. §
1.1502-6 (or comparable provisions of state, local or foreign law).  The Company is not a party to any tax sharing agreement
under which the Company could be liable for any material taxes of any party (other than a under which the Company could be liable
for any material taxes of any party (other than a subsidiary of the Company) after the Closing Date.  The Company has not made
any payments, is not obligated to make payments nor is it a party to an agreement that could obligate it to make any payments that
would not be deductible under § 280G of the Internal Revenue Code.

For purposes of this Section 2.1(o):

“IRS” means the United States Internal Revenue Service.

“Tax” or “Taxes” means federal, state, county, local, foreign, or other income, gross
receipts, ad valorem, franchise, profits, sales or use, transfer, registration, excise, utility, environmental, communications,
real or personal property, capital stock, license, payroll, wage or other withholding, employment, social security, severance,
stamp, occupation, alternative or add-on minimum, estimated and other taxes of any kind whatsoever (including, without limitation,
deficiencies, penalties, additions to tax, and interest attributable thereto) whether disputed or not.

“Tax Return” means any return, information report or filing with respect to Taxes, including any schedules
attached thereto and including any amendment thereof.

(p)         
Certain Fees.  No
brokers, finders or financial advisory fees or commissions will be payable by the Company or any subsidiary with respect to the
transactions contemplated by this Agreement.

(q)         
Operation of
Business.  The Company and each of the subsidiaries owns or possesses all patents, trademarks, service marks, trade
names, copyrights, licenses and authorizations as set forth in the SEC Documents or on the Disclosure Schedule hereto, and all
rights with respect to the foregoing, which are necessary for the conduct of its business as now conducted without any conflict
with the rights of others.

(r)         
Insurance.  The Company carries or will have the benefit of insurance in such amounts and covering such risks as is
adequate in all material respects for the conduct of its business and the value of its properties and as is customary for companies
engaging in similar businesses and similar industries.

(s)         
Books
and Records.  The records and documents of the Company and its subsidiaries accurately reflect in all material respects
the information relating to the business of the Company and the subsidiaries, the location and collection of their

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assets, and the
nature of all transactions giving rise to the obligations or accounts receivable of the Company or any subsidiary.

(t)         
Material Agreements.  Neither the Company nor any subsidiary is a party to any Material Agreement.  Except as
would not have a Material Adverse Effect, the Company and each of its subsidiaries has performed all the obligations required to be
performed by them to date under the foregoing agreements, have received no notice of default and, to the best of the
Company’s knowledge are not in default under any Material Agreement now in effect, the result of which would cause a Material
Adverse Effect.  Except as set forth in the SEC Documents, no written or oral contract, instrument, agreement, commitment,
obligation, plan or arrangement of the Company or of any subsidiary limits or shall limit the payment of dividends on the
Company’s Common Stock.

(u)         
Transactions with
Affiliates.  There are no material loans, leases, agreements, contracts, royalty agreements, management contracts or
arrangements or other continuing transactions exceeding $100,000 between (A) the Company, any subsidiary on the one hand, and (B)
on the other hand, any officer, employee, consultant or director of the Company, or any of its subsidiaries, or any person owning
5% or more of the capital stock of the Company or any subsidiary or any member of the immediate family of such officer, employee,
consultant, director or stockholder or any corporation or other entity controlled by such officer, employee, consultant, director
or stockholder, or a member of the immediate family of such officer, employee, consultant, director or stockholder.

(v)         
Securities Laws.  The Company has
complied and will comply with all applicable federal and state securities laws in connection with the offer, issuance and sale of
the Shares hereunder.  Neither the Company nor anyone acting on its behalf, directly or indirectly, has or will sell, offer to
sell or solicit offers to buy the Shares or similar securities to, or solicit offers with respect thereto from, or enter into any
preliminary conversations or negotiations relating thereto with, any person (other than the Purchaser), so as to bring the issuance
and sale of the Shares under the registration provisions of the Securities Act and applicable state securities laws. 
Neither
the Company nor any of its affiliates, nor any person acting on its or their behalf, has engaged in any form of general
solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with the offer or
sale of the Shares.

(w)         
Employees. 
Neither the Company nor any subsidiary has any collective bargaining arrangements or agreements covering any of its
employees.  Neither the Company nor any subsidiary is in breach of any employment contract, agreement regarding proprietary
information, noncompetition agreement, nonsolicitation agreement, confidentiality agreement, or any other similar contract or
restrictive covenant to which the Company is a party, relating to the right of any officer, employee or consultant to be employed
or engaged by the Company or such subsidiary.  Since the date of the most recently filed Form 10-K, no officer, consultant or
key employee of the Company or any subsidiary whose termination, either individually or in the aggregate, would reasonably be
expected to have a Material Adverse Effect, has terminated or, to the knowledge of the

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Company, has any present intention of
terminating his or her employment or engagement with the Company or any subsidiary.

(x)           
Absence of Certain
Developments.  Except as would not have a Material Adverse Effect, since the date of the financial statement contained
in the most recently filed Form 10-Q or Form 10-K, whichever is most current, neither the Company nor any subsidiary has:

(i)         
issued any stock, bonds or other corporate securities or any rights, options or warrants with respect thereto (other than
pursuant to equity incentive plans or arrangements adopted by the Company);

(ii) borrowed any material amount or incurred or become subject to any material liabilities (absolute or contingent) except
liabilities incurred in the ordinary course of business;

(iii) discharged or satisfied any lien or encumbrance or paid any material obligation or liability (absolute or contingent),
other than liabilities paid in the ordinary course of business;

(iv) declared or made any payment or distribution of cash or other property to stockholders with respect to its stock, or
purchased or redeemed, or made any agreements so to purchase or redeem, any shares of its capital stock;

(v) suffered any material losses (except for anticipated losses consistent with prior quarters) or waived any rights of
material value, whether or not in the ordinary course of business, or suffered the loss of any material amount of prospective
business;

(vi) made any material changes in employee compensation except in the ordinary course of business and consistent with past
practices;

(vii) made capital expenditures or commitments therefor that aggregate in excess of $500,000;

(viii) entered into any other material transaction, whether or not in the ordinary course of business;

(ix) suffered any material damage, destruction or casualty loss, whether or not covered by insurance;

(x) experienced any material problems with labor or management in connection with the terms and conditions of their employment;
or

(xi) effected any two or more events of the foregoing kind which in the aggregate would be material to the Company or its
subsidiaries.

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(aa)            Acknowledgment Regarding
Purchaser’s Purchase of Shares.  Company acknowledges and agrees that Purchaser is acting solely in the capacity
of arm's length purchaser with respect to this Agreement and the transactions contemplated hereunder. 
The Company further
acknowledges that the Purchaser is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with
respect to this Agreement and the transactions contemplated hereunder.

Section
2.2.          Representations and Warranties of the Purchaser. 
The Purchaser hereby makes the following
representations and warranties to the Company:

(a)         
Organization and Standing of the Purchaser.  The Purchaser is a corporation duly incorporated, validly existing and in
good standing under the laws of the Bahamas.

(b)         
Authorization and
Power.  The Purchaser has the requisite power and authority and financial resources to enter into and perform the
Transaction Documents and to purchase the Shares being sold to it hereunder. 
The execution, delivery and performance of the
Transaction Documents by Purchaser and the consummation by it of the transactions contemplated hereby have been duly authorized by
all necessary corporate action and at the Initial Closing shall constitute valid and binding obligations of the Purchaser
enforceable against the Purchaser in accordance with their terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or
affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general
application

(c)         
No
Conflicts.  The execution, delivery and performance of this Agreement and the consummation by the Purchaser of the
transactions contemplated hereby or relating hereto do not and will not (i) result in a violation of the Purchaser's charter
documents or bylaws or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would
become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of any agreement,
indenture or instrument to which the Purchaser is a party, or result in a violation of any law, rule, or regulation, or any order,
judgment or decree of any court or governmental agency applicable to the Purchaser or its properties (except for such conflicts,
defaults and violations as would not, individually or in the aggregate, have a material adverse effect on the business, operations,
properties or financing conditions of the Purchaser or on the ability of Purchaser to consummate the transactions contemplated by
the Transaction Agreements).  The Purchaser is not required to obtain any consent, authorization or order of, or make any
filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations
under this Agreement or to purchase the Shares in accordance with the terms hereof.

(d)            Financial Risks. 
The Purchaser acknowledges that it is able to bear the financial risks associated with an investment in the Shares and the Warrant
and that it has been given full access to such records of the Company and the subsidiaries and to the officers of the Company and
the subsidiaries as it has deemed necessary or appropriate

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to conduct its due diligence investigation. 
The Purchaser is
capable of evaluating the risks and merits of an investment in the Shares and the Warrant by virtue of its experience as an
investor and its knowledge, experience, and sophistication in financial and business matters and the Purchaser is capable of
bearing the entire loss of its investment in the Shares and the Warrant.

(e)         
Accredited Investor.  The Purchaser is an “accredited investor” as defined in Regulation D promulgated
under the Securities Act.

(f)         
General.  The Purchaser understands that the Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein in order to determine the suitability
of the Purchaser to acquire the Shares.

(g)         
Litigation; Claims.  There are no lawsuits or
proceedings pending or, to the knowledge of the Purchaser, threatened, against the Purchaser or any subsidiary, nor has the
Purchaser received any written or oral notice of any action, suit, proceeding or investigation. No judgment, order, writ,
injunction or decree or award has been issued by or, to the knowledge of the Purchaser, requested of any court, arbitrator or
governmental agency.

ARTICLE 3

COVENANTS

The Company covenants with the Purchaser as follows:

Section
3.1.          The Shares.  As of the date of each applicable Draw Down Notice, the Company will have
authorized and reserved, free of preemptive rights and other similar contractual rights of stockholders, a sufficient number of its
authorized but unissued shares of its Common Stock to cover the Draw Down Shares to be issued in connection with such Draw Down
requested under this Agreement.  The Draw Down Shares to be issued under this Agreement, when paid for and issued in
accordance with the terms hereof, shall be duly and validly issued and outstanding, fully paid and non-assessable, and the
Purchaser shall be entitled to all rights accorded to a holder of Common Stock. Anything in this Agreement to the contrary
notwithstanding, the Company may not make a Draw Down to the extent that, after such purchase by the Purchaser, the sum of the
number of shares of Common Stock beneficially owned by the Purchaser and its affiliates would result in beneficial ownership by the
Purchaser and its affiliates of more than 9.9% of the then outstanding shares of Common Stock. 
For purposes of the
immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange
Act.

Section
3.2.          Securities Compliance.  
If applicable, the Company shall notify the Principal Market, in
accordance with its rules and regulations, of the transactions contemplated by this Agreement, and shall take all other necessary
action and proceedings as may be required and

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permitted by applicable law, rule and regulation, for the legal and valid issuance of
the Shares and the Warrant to the Purchaser.

Section
3.3.          Registration and Listing.  The Company will use its best efforts to cause its Common Stock
to continue to be registered under Sections 12(b) or 12(g) of the Exchange Act, will comply in all respects with its reporting and
filing obligations under the Exchange Act, will comply with all requirements related to any registration statement filed pursuant
to this Agreement, and will not voluntarily take any action or file any document (whether or not permitted by the Securities Act or
the Exchange Act or the rules promulgated thereunder) to terminate or suspend such registration or to terminate or suspend its
reporting and filing obligations under the Exchange Act or Securities Act, except as permitted herein. 
The Company will use
its reasonable best efforts to take all action necessary to continue the listing or trading of its Common Stock on the Principal
Market and will comply in all respects with the Company's reporting, filing and other obligations under the bylaws or rules of the
Principal Market and shall provide the Purchaser with copies of any correspondence to or from such Principal Market which questions
or threatens delisting of the Common Stock, within three (3) Trading Days of the Company’s receipt thereof, until the
Purchaser has disposed of all of the Shares.

Section
3.4.          Escrow Arrangement.  The Company and the Purchaser shall enter into an escrow arrangement
with Feldman Weinstein, LLP (the “Escrow Agent”) in the form of Exhibit B hereto respecting payment
against delivery of the Shares.

Section
3.5.          Registration Rights Agreement.    
The Company and the Purchaser shall enter into the Registration
Rights Agreement in the Form of Exhibit A hereto. Before the Purchaser shall be obligated to accept a Draw Down request from
the Company, the Company shall have caused a sufficient number of shares of Common Stock to be registered to cover the Shares to be
issued in connection with such Draw Down.

Section
3.6.          Accuracy of Registration
Statement.    On each Settlement Date, the Registration Statement and the prospectus therein shall not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein not
misleading in light of the circumstances under which they were made; and on such Settlement Date or date of filing the Registration
Statement and the prospectus therein will not include any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided, however, the Company makes no representations or warranties as to the information contained in or omitted
from the Registration Statement and the prospectus therein in reliance upon and in conformity with the information furnished in
writing to the Company by the Purchaser specifically for inclusion in the Registration Statement and the prospectus therein.

Section
3.7.          Compliance with Laws. 
The Company shall comply, and cause each subsidiary to comply, with all applicable laws, rules,
regulations and orders, noncompliance with which could have a Material Adverse Effect.

12

   

Section
3.8.          Keeping of Records and Books of Account.  The Company shall keep and cause each subsidiary
to keep adequate records and books of account, in which entries that are complete in all material respects will be made in
accordance with GAAP consistently applied, reflecting all financial transactions of the Company and its subsidiaries, and in which,
for each fiscal year, all proper reserves for depreciation, depletion, obsolescence, amortization, taxes, bad debts and other
purposes in connection with its business shall be made.

Section
3.9.          Notice of Certain Events Affecting Registration; Suspension of Right to Request a Draw
Down.  The Company will promptly notify the Purchaser in writing upon the occurrence of any of the following events in
respect of the Registration Statement or related prospectus in respect of the Shares: (i) receipt of any request for additional
information from the SEC or any other federal or state governmental authority during the period of effectiveness of the
Registration Statement the response to which would require any amendments or supplements to the Registration Statement or related
prospectus; (ii) the issuance by the SEC or any other federal or state governmental authority of any stop order suspending the
effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt of any
notification with respect to the suspension of the qualification or exemption from qualification of any of the Shares for sale in
any jurisdiction in which the Purchaser is entitled to sell the Shares hereunder or the receipt of notice with respect to the
initiation of any proceeding for such purpose; (iv) becoming aware that any statement made in the Registration Statement or related
prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that
requires the making of any changes in the Registration Statement, related prospectus or documents so that, in the case of the
Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein not misleading, and that in the case of the related prospectus, it
will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (v) the
Company’s determination that the filing of a post-effective amendment or withdrawal to the Registration Statement is
required.  The Company shall not deliver to the Purchaser any Draw Down Notice during the continuation of any of the foregoing
events.  The Company shall promptly make available to the Purchaser any such supplements or amendments to the related
prospectus, at which time, provided that the registration statement and any supplements and amendments thereto are then effective,
the Company may recommence the delivery of Draw Down Notices.

Section
3.10.           Consolidation; Merger. 
The Company shall not, at any time prior to the termination of this Agreement, effect any
merger or consolidation of the Company with or into, or a transfer of all or substantially all of the assets of the Company to,
another entity (a “Consolidation Event”) unless the resulting successor or acquiring entity (if not the Company)
assumes by written instrument or by operation of law the obligation of the Company with respect to the obligations hereunder.

Section 3.11         
Minimum Commitment Amount.  During the Commitment Period, the Company shall make Draw Downs of
at least $500,000, in the aggregate, pursuant to this Agreement.  In the event that the Company fails to make Draw Downs of at
least $500,000, in the aggregate, during the Commitment Period, the Company shall pay the Purchaser, within five (5)

13

   

days from the
end of the Commitment Period, an amount equal to $500,000 less the aggregate Purchase Price of all Draw Downs.

Section
3.12.          Non-Public Information.  The Company covenants and agrees that neither it nor any other Person acting on its behalf
will provide the Purchaser or its agents or counsel with any information that the Company believes constitutes material non-public
information, unless prior thereto such Purchaser shall have executed a written agreement regarding the confidentiality and use of
such information.  The Company understands and confirms that each Purchaser shall be relying on the foregoing representations
in effecting transactions in securities of the Company.

Section 3.13.          
Other Agreements.  The Company shall not enter into any agreement the terms of which would
restrict or impair the ability of the Company to perform its obligations under this Agreement.

The Purchaser covenants with the Company as follows:

                       
Section
3.15.          Prospectus Delivery Requirements.  The Purchaser agrees that it will, whenever required by federal securities laws,
deliver the Prospectus included in the Registration Statement to any purchaser of Draw Down Shares from the Purchaser.

ARTICLE 4

CONDITIONS TO INITIAL CLOSING AND DRAW DOWNS

Section
4.1.          Conditions Precedent to the Obligation of the Company to Sell the Shares.  The obligation
hereunder of the Company to proceed to close this Agreement and to issue and sell the Shares to the Purchaser is subject to the
satisfaction or waiver, at or before the Initial Closing, and as of each Settlement Date of each of the conditions set forth
below.  These conditions are for the Company's sole benefit and may be waived by the Company at any time in its sole
discretion.

(a)         
Accuracy of the Purchaser's Representations and Warranties.  The representations and warranties of the Purchaser shall
be true and correct in all material respects as of the date when made and as of the Initial Closing and as of each Settlement Date
as though made at that time, except for representations and warranties that speak as of a particular date, which shall be true and
correct in all material respects as of such date.

(b)         
Performance by the
Purchaser.  The Purchaser shall have performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Purchaser at or prior to
the Initial Closing and as of each Settlement Date.

(c)         
No
Injunction.  No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by

14

   

any court or governmental authority of competent jurisdiction which prohibits the consummation of any of
the transactions contemplated by this Agreement.

(d)         
No Proceedings or Litigation.  No material
action, suit or proceeding before any arbitrator or any governmental authority shall have been commenced against the Purchaser or
the Company or any subsidiary, or any of the officers, directors or affiliates of the Company or any subsidiary seeking to
restrain, prevent or change the transactions contemplated by this Agreement, or seeking damages in connection with such
transactions.

Section
4.2.          Conditions Precedent to the Obligation of the Purchaser to Close.  The obligation hereunder
of the Purchaser to perform its obligations under this Agreement and to purchase the Shares is subject to the satisfaction or
waiver, at or before the Initial Closing, of each of the conditions set forth below. 
These conditions are for the Purchaser's
sole benefit and may be waived by the Purchaser at any time in its sole discretion.

(a)         
Accuracy of the Company's Representations and Warranties.  Each of the representations and warranties of the Company
shall be true and correct in all material respects as of the date when made and as of the Initial Closing as though made at that
time (except for representations and warranties that speak as of a particular date, which shall be true and correct in all material
respects as of such date).

(b)         
Performance by the
Company.  The Company shall have performed, satisfied and complied in all material respects with all material
covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or
prior to the Initial Closing.

(c)         
No
Injunction.  No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of
the transactions contemplated by this Agreement.

(d)         
No Proceedings or
Litigation.  No material action, suit or proceeding before any arbitrator or any governmental authority shall have
been commenced, against the Purchaser or the Company or any subsidiary, or any of the officers, directors or affiliates of the
Company or any subsidiary seeking to restrain, prevent or change the transactions contemplated by this Agreement, or seeking
damages in connection with such transactions.

(e)         
Opinion of Counsel, Etc.  At the Initial Closing, the Purchaser shall have received an opinion of counsel to the
Company, dated as of the Initial Closing Date, in the form of Exhibit C hereto.

(f)         
Warrant.  On the date hereof, the Company shall issue to the Purchaser a warrant to purchase up to 500,000 shares of
Common Stock (the “Warrant”).  The Warrant may not be exercised until twelve months from the issuance of
such Warrant  and shall have a term of 3 years from the date such Warrant is exercisable.  The exercise price of the
Warrant shall be 120% of the VWAP of the Common Stock on the Trading

15

   

Day prior to the date hereof.  The Common Stock
underlying the Warrant will be registered in the Registration Statement referred to in Section 4.3 hereof.  The Warrant shall
be in the form of Exhibit E hereto.

Section
4.3.           Conditions Precedent to the Obligation of the Purchaser to Accept a Draw Down and Purchase the
Shares.  The obligation hereunder of the Purchaser to accept a Draw Down request and to acquire and pay for the Shares
is subject to the satisfaction at or before each Settlement Date, of each of the conditions set forth below.

(a)         
Satisfaction of Conditions to Initial Closing.  The Company shall have satisfied at the Initial Closing, or the
Purchaser shall have waived at the Initial Closing, the conditions set forth in Section 4.2 hereof

(b)         
Effective Registration
Statement.  The Registration Statement registering the Shares to be delivered in connection with the applicable Draw
Down shall have been declared effective by the SEC and shall remain effective during the applicable Draw Down Pricing Period and on
the applicable Settlement Date.

(c)         
No
Suspension.  Trading in the Company's Common Stock shall not have been suspended by the SEC or the Principal Market
(except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to
the delivery of each Draw Down Notice), and, at any time prior to such Draw Down Notice, trading in securities generally as
reported on the Principal Market shall not have been suspended or limited, or minimum prices shall not have been established on
securities whose trades are reported on the Principal Market unless the general suspension or limitation shall have been terminated
prior to the delivery of such Draw Down Notice.

(d)          
Material Adverse
Effect.  No Material Adverse Effect and no Consolidation Event where the successor entity has not agreed to perform
the Company’s obligations shall have occurred, such occurrences to be determined in accordance with Section 8.9 herein.

(e)         
Opinion of Counsel.  The Purchaser shall have received (i) a “bring-down” letter from the Company’s
counsel, confirming that there is no change from the counsel’s previously delivered opinion, or else specifying with
particularity the reason for any change and an opinion as to the additional items specified in Exhibit C hereto, and (ii)
any other items set forth in the Escrow Agreement.

ARTICLE 5

DRAW DOWN TERMS

Section
5.1.          Draw Down Terms. 
Subject to the satisfaction of the conditions set forth in this
Agreement, the parties agree as follows:

16

   

(a)         
The
Company may, in its sole discretion, issue and exercise draw downs against the Commitment Amount (each a “Draw
Down”) during the Commitment Period, which Draw Downs the Purchaser shall be obligated to accept, subject to the terms
and conditions herein.

(b)         
Only one Draw Down shall be allowed in each Draw Down
Pricing Period and the Company may not exercise a Draw Down until the Trading Cushion has elapsed since the last Settlement
Date.  The number of shares of Common Stock purchased by the Purchaser with respect to each Draw Down shall be determined as
set forth in Section 5.1(e) herein and settled on or before the 3rd Trading Day immediately after the Draw Down Pricing
Period (each such settlement period and each such settlement date referred to as a “Settlement Period” and a
“Settlement Date”, respectively). 

(c)         
In connection with each Draw
Down Pricing Period, the Company may set the Threshold Price in the Draw Down Notice.

(d)         
The minimum Investment Amount for any Draw Down shall be
$50,000 and the maximum Investment Amount as to each Draw Down shall be equal to 5% of the volume weighted average price for the
Common Stock (as reported by the Principal Market) for the 60 Trading Days immediately prior to the applicable Commencement Date
(defined below) multiplied by the total aggregate trading volume in respect of the Common Stock for such 60 Trading Days. 
Notwithstanding anything herein to the contrary, in the event the minimum Investment Amount is greater than the maximum Investment
Amount, as to such Draw Down only, the minimum Investment Amount shall equal the maximum Investment Amount, but in no event shall
the minimum Investment Amount be less than $25,000, such that if the maximum Investment Amount is less than $25,000, then the
Company shall be precluded from exercising a Draw Down at such time.

(e)         
The number of Shares of
Common Stock to be issued on each Settlement Date shall be a number of shares equal to the sum of the quotients (for each Trading
Day within the Settlement Period) of (x) 1/21st of the Investment Amount, and (y) the Purchase Price on each Trading Day
within the Draw Down Pricing Period, subject to the following adjustments:

(i)          
if the VWAP on a given Trading Day is less than the Threshold Price, then that portion of the Investment Amount to be paid
on the immediately pending Settlement Date shall be reduced by 1/21st of the Investment Amount and such Trading Day
shall be withdrawn from the Draw Down Pricing Period; and

(ii)          
if during any Trading Day during the Draw Down Pricing Period trading of the Common Stock on the Principal Market is
suspended for more than 3 hours, in the aggregate, or if any Trading Day during the Settlement Period is shortened because of a
public holiday, then that portion of

17

   

the Investment Amount to be paid on the immediately pending Settlement Date shall be reduced
by 1/21st of the Investment Amount for each such suspension and such Trading Days shall be withdrawn from the Settlement
Period; and

(iii)          
if during any Trading Day during the Draw Down Pricing Period sales of Draw Down Shares pursuant to the Registration
Statement are suspended by the Company in accordance with Sections 3(j) or 5(e) of the Registration Rights Agreement for more than
three (3) hours, in the aggregate, during the Settlement Period, then that portion of the Investment Amount to be paid on the
immediately pending Settlement Date shall be reduced by 1/21st of the Investment Amount and such Trading Days shall be
withdrawn from the Settlement Period.

(f)                 The Company must inform the
Purchaser by delivering a draw down notice, in the form of Exhibit D hereto (the “Draw Down Notice”), via
facsimile transmission in accordance with Section 8.4 as to the amount of the Draw Down (the “Investment
Amount”) the Company wishes to exercise. The Draw Down Notice shall also inform the Purchaser the first day of the Draw
Down Pricing Period (the “Commencement Date”); provided; however, if the Commencement Date shall
be the date on which the Draw Down Notice is delivered, the Draw Down Notice must be delivered to the Purchaser at least 1 hour
before trading commences on such Trading Day date.  At no time shall the Purchaser be required to purchase more than the
maximum Investment Amount for a given Draw Down Pricing Period.

(g)            On or before each Settlement Date, the Shares purchased
by the Purchaser shall be delivered to The Depository Trust Company (“DTC”) on the Purchaser’s
behalf.  Upon the Company electronically delivering whole shares of Common Stock to the Purchaser or its designees via DTC
through its Deposit Withdrawal Agent Commission (“DWAC”) system prior to 1:00 p.m. ET, the Purchaser shall wire
transfer immediately available funds to the Company’s designated account on such day, less any fees as set forth in the
Escrow Agreement, which fees shall be wired as directed in the Escrow Agreement.  Upon the Company electronically delivering
whole shares of Common Stock to the Purchaser or its designee’s DTC account via DWAC after 1:00 p.m. ET, the Purchaser shall
wire transfer next day available funds to the Company’s designated account on such day, less any fees as set forth in the
Escrow Agreement, which fees shall be wired as directed in the Escrow Agreement.  In the event that either party elects to use
the Escrow Agent, the Shares shall be credited by the Company to the DTC account designated by the Purchaser via DWAC upon receipt
by the Escrow Agent of payment for the Draw Down Shares into the Escrow Agent’s master escrow account and notice to the
Company thereof, all as further set forth in the Escrow Agreement.  The Escrow Agent shall be directed to pay the purchase
price to the Company, net of $1,000 per Settlement as escrow expenses to the Escrow Agent.

(h)            The Company understands that a delay in the delivery of
the Draw Down Shares into the Purchaser’s DTC account beyond 5 Trading Days after the dates set forth herein or in the Escrow
Agreement, as may be applicable, could result in

18

   

economic loss to the Purchaser. Notwithstanding anything herein to the contrary,
as compensation to the Purchaser for such loss, the Company agrees to pay late payments to the Purchaser for late delivery after 5
Trading Days from such dates in accordance with the following schedule (where “No. Trading Days Late” is defined as the
number of Trading Days beyond 5 Trading Days from the dates set forth herein or in the Escrow Agreement, as applicable, on which
such Draw Down Shares are to be delivered into the Purchaser’s DTC account via the DWAC system):

  

	
No. Trading Days Late

	
Late Payment for Each

$5,000 of Draw Down Shares

Being Purchased

	
1

	
$100

	
2

	
$200

	
3

	
$300

	
4

	
$400

	
5

	
$500

	
6

	
$600

	
7

	
$700

	
8

	
$800

	
9

	
$900

	
10

	
$1,000

	
More than 10

	
$1,000 +$200 for each Trading

Day Late beyond 10 Trading Days

	 	 

  

The Company shall pay any payments incurred under this Section 5.1(h) in immediately available funds upon demand. 
Nothing
herein shall limit the Purchaser’s right to pursue injunctive relief and/or actual damages for the Company’s failure to
issue and deliver the Draw Down Shares to the Company.

ARTICLE 6

TERMINATION

Section
6.1.           Term.  The term of this Agreement shall begin on the date hereof and shall end 24 months
from the Effective Date or as otherwise set forth in Section 6.2.

Section
6.2.          Other Termination. 

(a)         
This
Agreement shall terminate upon one (1) Trading Day’s notice if (i) an event resulting in a Material Adverse Effect has
occurred and has not been cured for a period of thirty (30) days after giving notice thereof, (ii) the Common Stock is
de-

19

   

listed
from the Principal Market unless such de-listing is in connection with the Company’s subsequent listing of the Common Stock
on the Nasdaq National Market, Nasdaq SmallCap Market, the American Stock Exchange or the New York Stock Exchange, or (iii) the
Company files for protection from creditors under any applicable law.

(b)         
The Company may terminate this Agreement upon 1 Trading
Day’s notice if the Purchaser shall fail to fund more than 1 properly noticed Draw Down within 5 Trading Days of the end of
the applicable Settlement Period.

(c)         
The Company may terminate this Agreement at any time during the Commitment Period
upon 10 days notice after the Company has made Draw Downs equal to, in the aggregate, 
$1,000,000

Section
6.3.          Effect of Termination.   
In the event of termination of this Agreement pursuant to Section 6.2 herein, written notice thereof shall forthwith be given to
the other party and the transactions contemplated by this Agreement shall be terminated without further action by either
party.  If this Agreement is terminated as provided in Section 6.1 or 6.2 herein, this Agreement shall become void and of no
further force and effect, except for Sections 8.1, 8.2 and 8.9, and Article 7 herein, which shall survive the termination of this
Agreement.  Nothing in this Section 6.3 shall be deemed to release the Company or the Purchaser from any liability for any
breach under this Agreement, or to impair the rights of the Company or the Purchaser to compel specific performance by the other
party of its obligations under this Agreement.

ARTICLE 7

INDEMNIFICATION

Section
7.1.           General Indemnity. 

(a)         
The
Company agrees to indemnify and hold harmless the Purchaser (and its directors, officers, affiliates, agents, successors and
assigns) from and against any and all losses, liabilities, deficiencies, costs, damages and expenses (including, without
limitation, reasonable attorneys’ fees, charges and disbursements) incurred by the Purchaser as a result of any inaccuracy in
or breach of the representations, warranties or covenants made by the Company herein.

(b)         
The
Purchaser agrees to indemnify and hold harmless the Company and its directors, officers, affiliates, agents, successors and assigns
from and against any and all losses, liabilities, deficiencies, costs, damages and expenses (including, without limitation,
reasonable attorneys’ fees, charges and disbursements) incurred by the Company as result of any material inaccuracy in or
breach of the representations, warranties or covenants made by the Purchaser herein.  Notwithstanding anything to the contrary
herein, the Purchaser shall be liable under this Section 7.1(b) for

20

   

only that amount as does not exceed the net proceeds to the
Purchaser as a result of the sale of the Shares.

Section
7.2.          Indemnification Procedure.  Any party entitled to indemnification under this Article 7 (an
"Indemnified Party") will give prompt written notice to the indemnifying party of any matters giving rise to a claim for
indemnification; provided, that the failure of any party entitled to indemnification hereunder to give notice as provided herein
shall not relieve the indemnifying party of its obligations under this Article 7 except to the extent that the indemnifying party
is actually prejudiced by such failure to give notice.  In case any action, proceeding or claim is brought against an
Indemnified Party in respect of which indemnification is sought hereunder, the indemnifying party shall be entitled to participate
in and, unless in the reasonable judgment of counsel to the Indemnified Party a conflict of interest between it and the
indemnifying party may exist with respect of such action, proceeding or claim, to assume the defense thereof with counsel
reasonably satisfactory to the Indemnified Party.  In the event that the indemnifying party advises an Indemnified Party that
it will contest such a claim for indemnification hereunder, or fails, within thirty (30) days of receipt of any indemnification
notice to notify, in writing, such person of its election to defend, settle or compromise, at its sole cost and expense, any
action, proceeding or claim (or discontinues its defense at any time after it commences such defense), then the Indemnified Party
may, at its option, defend, settle or otherwise compromise or pay such action or claim.  In any event, unless and until the
indemnifying party elects in writing to assume and does so assume the defense of any such claim, proceeding or action, the
Indemnified Party's costs (including reasonable attorneys’ fees, charges and disbursements) and expenses arising out of the
defense, settlement or compromise of any such action, claim or proceeding shall be losses subject to indemnification
hereunder.  The Indemnified Party shall cooperate fully with the indemnifying party in connection with any settlement
negotiations or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party all
information reasonably available to the Indemnified Party, which relates to such action or claim.  The indemnifying party
shall keep the Indemnified Party fully apprised at all times as to the status of the defense or any settlement negotiations with
respect thereto.  If the indemnifying party elects to defend any such action or claim, then the Indemnified Party shall be
entitled to participate in such defense with counsel of its choice at its sole cost and expense.  The indemnifying party shall
not be liable for any settlement of any action, claim or proceeding effected without its prior written consent. 
Notwithstanding anything in this Article 7 to the contrary, the indemnifying party shall not, without the Indemnified Party’s
prior written consent, settle or compromise any claim or consent to entry of any judgment in respect thereof which imposes any
future obligation on the Indemnified Party or which does not include, as an unconditional term thereof, the giving by the claimant
or the plaintiff to the Indemnified Party of a release from all liability in respect of such claim.  The indemnification
required by this Article 7 shall be made by periodic payments of the amount thereof during the course of investigation or defense,
as and when bills are received or expense, loss, damage or liability is incurred, within ten (10) Trading Days of written notice
thereof to the indemnifying party so long as the Indemnified Party irrevocably agrees to refund such moneys, with interest, if it
is ultimately determined by a court of competent jurisdiction that such party was not entitled to indemnification.  The
indemnity agreements contained herein shall be in addition to (a) any cause of action or similar rights of the Indemnified Party
against the indemnifying party or others, and (b) any liabilities to which the indemnifying party may be subject.

21

   

ARTICLE 8

MISCELLANEOUS

Section
8.1.          Fees and Expenses. 
Each of the parties to this Agreement shall pay its own fees and
expenses related to the transactions contemplated by this Agreement; except that, the Company shall pay, at the Initial Closing, a
non-accountable expense allowance of $10,000 for the Purchaser’s, administrative, legal and due diligence costs and expenses
and any other additional fees as set forth in the Escrow Agreement. The Company shall pay all stamp or other similar taxes and
duties levied in connection with issuance of the Shares pursuant hereto.

Section
8.2.          Specific Enforcement.  The Company and the Purchaser acknowledge and agree that irreparable
damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific
terms or were otherwise breached.  It is accordingly agreed that the parties shall be entitled to an injunction or injunctions
to prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof or
thereof, this being in addition to any other remedy to which any of them may be entitled by law or equity.

Section
8.3.          Entire Agreement; Amendment.  The Transaction Documents contain the entire understanding of
the parties with respect to the matters covered in the Transaction Documents.  No provision of this Agreement may be waived or
amended other than by a written instrument signed by the party against whom enforcement of any such amendment or waiver is sought
and no condition to closing any Draw Down in favor of the Purchaser may be waived by the Purchaser.

Section
8.4.          Notices.  Any notice, demand, request, waiver or other communication required or permitted
to be given hereunder shall be in writing and shall be effective (a) upon hand delivery or facsimile at the address or number
designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first
business day following such delivery (if delivered other than on a business day during normal business hours where such notice is
to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. 
The addresses for such
communications shall be:

	If to the Company:	 434 Fayetteville Street

      Suite 600

      Raleigh, N.C. 27613

      Attn: Robert S. Lowrey, Chief Financial Officer; and

 Gary E. Ban, Chief Operating Officer

      Tel: (919) 807-5687 (Mr. Lowrey), or \

 (919) 807-5611 (Mr. Ban)

 Fax: (919) 807-5601

    

 

	If to Purchaser: 	 As set forth on the signature page hereto.

    

22

   

Any party hereto may from time to time change its address for notices by giving written notice of such changed
address to the other party hereto in accordance herewith.

Section
8.5.          Waivers.  No waiver by either party of any default with respect to any provision, condition
or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provisions,
condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair
the exercise of any such right accruing to it thereafter.

Section
8.6.          Headings.  The article, section and subsection headings in this Agreement are for
convenience only and shall not constitute a part of this Agreement for any other purpose and shall not be deemed to limit or affect
any of the provisions hereof.

Section
8.7.           Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of
the parties and their successors and assigns.  The parties hereto may not amend this Agreement or any rights or obligations
hereunder without the prior written consent of the Company and the Purchaser.  This Agreement may not be assigned by either
party without the prior written consent of the other party.

Section
8.8.          No Third Party Beneficiaries.  This Agreement is intended for the benefit of the parties
hereto and their respective permitted successors and assigns and is not for the benefit of, nor may any provision hereof be
enforced by, any other person.

Section
8.9.          Governing Law.    This Agreement shall be governed by and construed in accordance with
the internal laws of the State of New York, without giving effect to the choice of law provisions.  The Company and the
Purchaser agree to exclusively submit themselves to the in personam jurisdiction of the state and federal courts situated
within the Southern District of the State of New York with regard to any controversy arising out of or relating to this Agreement.
The prevailing party shall be awarded its costs, including attorneys’ fees, from the non-prevailing party.  Any party
shall have the right to seek injunctive relief from any court of competent jurisdiction in any case where such relief is
available.  The prevailing party in such injunctive action shall be awarded its costs, including reasonable attorneys’
fees, from the non-prevailing party.

Section
8.10.          Counterparts.  This Agreement may be executed in any number of counterparts, all of which
taken together shall constitute one and the same instrument and shall become effective when counterparts have been signed by each
party and delivered to the other parties hereto, it being understood that all parties need not sign the same counterpart. 
Execution may be made by delivery by facsimile.

Section
8.11.          Publicity.  Neither the Company nor the Purchaser shall issue any press release or
otherwise make any public statement or announcement with respect to this Agreement or the transactions contemplated hereby or the
existence of this Agreement, without the prior written consent of the other party.  After the Initial Closing, the Company may
issue a press release or otherwise make a public statement or announcement with respect to this Agreement or the transactions
contemplated hereby or the existence of this Agreement; provided,

23

   

however, that prior to issuing any such press
release, making any such public statement or announcement, the Company obtains the prior consent of the Purchaser, which consent
shall not be unreasonably withheld or delayed.

Section
8.12.          Severability.  The provisions of this Agreement are severable and, in the event that The
Board of Arbitration or any court or officials of any regulatory agency of competent jurisdiction shall determine that any one or
more of the provisions or part of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a
provision of this Agreement and this Agreement shall be reformed and construed as if such invalid or illegal or unenforceable
provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and
enforceable to the maximum extent possible, so long as such construction does not materially adversely affect the economic rights
of either party hereto.

Section
8.13.          Further Assurances.  From and after the date of this Agreement, upon the request of the
Purchaser or the Company, each of the Company and the Purchaser shall execute and deliver such instruments, documents and other
writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of
this Agreement.

Section
8.14.          Effectiveness of Agreement.  This Agreement shall become effective only upon satisfaction of the conditions precedent
to the Initial Closing set forth in Article I of the Escrow Agreement.

ARTICLE 9

DEFINITIONS

Section
9.1.          Certain Definitions.

(a)         
“Commencement Date” shall have the meaning assigned to such term in Section 5.1(f) hereof. 

(b)         
“Commitment Amount” shall have the
meaning assigned to such term in Section 1.1 hereof.

(c)         
“Commitment Period” shall mean the period of 24 consecutive months commencing immediately after the Effective
Date.

(d)         
“Common Stock” shall mean the
Company’s common stock, $0.001 par value per share.

(e)         
“Consolidation
Event” shall mean a sale of all or substantially all of the Company’s assets or a merger pursuant to which the
holders of the voting securities of the Company prior to the merger do not own a majority of the voting securities of the surviving
entity.

24

   

(f)         
“Disclosure
Letter” shall mean the separate disclosure letter prepared by the Company and delivered concurrently herewith.

(g)         
“Draw
Down”shall have the meaning assigned to such term in Section 5.1(a) hereof.

(h)           
“Draw Down Notice” shall have the
meaning assigned to such term in Section 5.1(f) hereof.

(i)         
“Draw Down
Pricing Period” shall mean a period of 21 consecutive Trading Days beginning on the date specified in the Draw Down
Notice; provided, however, the Draw Down Pricing Period shall not begin before the day on which receipt of such
notice is delivered to Purchaser Pursuant to Section 8.4 herein.

(j)         
“DTC”  shall have the meaning assigned to such term in Section 5.1(g).

(k)         
“DWAC”  shall have the meaning
assigned to such term in Section 5.1(g).

(l)         
“Effective Date” shall mean the date the Registration Statement of the Company covering the Shares being
subscribed for hereby is declared effective by the SEC.

(m)         
“Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

(n)         
“GAAP”  shall mean the United
States Generally Accepted Accounting Principles as those conventions, rules and procedures are determined by the Financial
Accounting Standards Board and its predecessor agencies.

(o)         
“Initial Closing” shall have the
meaning assigned to such term in Section 1.2 hereof.

(p)         
“Initial Closing Date” shall have the
meaning assigned to such term in Section 1.2 hereof. 

(q)         
“Investment
Amount” shall have the meaning assigned to such term in Section 5.1(f) hereof.

(r)         
“Material Adverse
Effect”shall mean any adverse effect on the business, operations, properties or financial condition of the Company that
is material and adverse to the Company and its subsidiaries and affiliates, taken as a whole and/or any condition, circumstance, or
situation that would prohibit or otherwise materially interfere with the ability of the Company to perform any of its material
obligations under this Agreement or the Registration Rights Agreement or to perform its obligations under any other Material
Agreement.

25

   

(s)         
“Material Agreement” shall mean any written or oral contract, instrument, agreement, commitment, obligation,
plan or arrangement, a copy of which is required to be filed with the SEC as an exhibit to any of the SEC Documents.

(t)         
“Principal Market” shall mean initially the Nasdaq OTCBB and shall include the Nasdaq National Market, the
Nasdaq Small-Cap Market, the American Stock Exchange and the New York Stock Exchange if the Company becomes listed and trades on
such market or exchange after the date hereof.

(u)          
“Purchase Price” shall mean, with
respect to Shares purchased during each applicable Settlement Period, 90% of the VWAP on the date in question during such Draw Down
Pricing Period, except that, if the VWAPs during the 10 Trading Days immediately prior to the applicable Draw Down Notice are
greater than $1.25 per share and equal to or less than $2.50 per share, 92% of the VWAP on the date in question during such Draw
Down Pricing Period and if the VWAPs during the 21 Trading Days immediately prior to the applicable Draw Down Notice are greater
than $2.50 per share, 95% of the VWAP on the date in question during such Draw Down Pricing Period. 
The aforementioned
trigger prices shall be adjusted for forward and reverse stock splits and the like.

(v)         
“Registration Statement” shall mean
the registration statement under the Securities Act, to be filed with the Securities and Exchange Commission for the registration
of the Shares pursuant to the Registration Rights Agreement attached hereto as Exhibit A (the “Registration Rights
Agreement).

(w)          “SEC” shall mean the Securities and Exchange Commission.

(x)         
“SEC Documents” shall mean the
Company’s latest Form 10-K or Form 10-KSB as of the time in question, all Forms 10-Q or 10-QSB and 8-K filed thereafter, and
the Proxy Statement for its latest fiscal year as of the time in question, in each case, together with all exhibits, supplements,
amendments and schedules thereto, and all documents incorporated by reference therein until such time as the Company no longer has
an obligation to maintain the effectiveness of a Registration Statement as set forth in the Registration Rights Agreement.

(y)           
“Securities Act” shall mean the
Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

(z)         
“Settlement” shall mean the delivery of the Draw Down Shares into the Purchaser’s DTC account via
DTC’s DWAC system in exchange for payment therefor.

(aa)        
“Settlement Date” shall have the
meaning assigned to such term in Section 5.1(b).

(bb)        
“Settlement Period” shall have the
meaning assigned to such term in Section 5.1(b).

26

   

(cc)           
“Shares” shall mean, collectively,
the shares of Common Stock of the Company being subscribed for hereunder (the “Draw Down Shares”) and the shares
of Common Stock issuable upon exercise of the Warrant (the “Warrant Shares”).

(dd)        
“Threshold Price” shall mean the
price per Share designated by the Company as the lowest VWAP during any Draw Down Pricing Period at which the Company shall sell
its Common Stock in accordance with this Agreement.

(ff)        
“Trading Cushion”  shall mean the mandatory 6 Trading Days between Draw Down Pricing Periods.

(gg)         
“Trading
Day” shall mean any day on which the Principal Market is open for business.

(hh)         
“Transaction Documents” shall mean
this Agreement, the Registration Rights Agreement and the Escrow Agreement.

(ii)         
“VWAP” shall mean the daily volume
weighted average price of the Company’s Common Stock on the Principal Market as reported by 
Bloomberg Financial L.P.
(based on a trading day from 9:30 a.m. Eastern Time to 4:00 p.m. ET) on the date in question or if such entity no longer reports
such information, than by another reputable source mutually agreed to by the parties.

(jj)         
“Warrant” shall mean the warrant
issued to the Purchaser pursuant to Section 4.2(f) hereof.

[SIGNATURE PAGE FOLLOWS]

27

   

[SIGNATURE PAGE TO EQUITY LINE PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officer as
of this 19th day of July, 2002.

	 	

SUMMUS, INC. (USA)

By:
_________________________________________

         
Name:

          Title:

    
	 	
	
Address: 

      PO Box 175

      12-14 Finch Road, Douglas

      Isle of Man IM99
1TT 

      Attn: Gordon Mundy or Rosemary
Marr

      Fax: 44 1624
620588

    	TALISMAN MANAGEMENT LIMITED
       

      By:
      _________________________________________

                Name:

                Title:

	 	
	

W/ copy to:

Robert Charron

Feldman Weinstein LLP

Suite 2620

420 Lexington Avenue

New York, New York 10170

tel: 212-931-8704

fax: 212-401-4741

    	

28Prepared for Summus, Inc. (USA) by EDGARfile.net

Exhibit 4.10

REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT, dated as of July 19, 2002 between Talisman Management Limited
(“Purchaser”) and Summus, Inc. (USA) (the “Company”).

WHEREAS, simultaneously with the execution and delivery of this Agreement, pursuant to a Common Stock Purchase Agreement dated
the date hereof (the “Purchase Agreement”) the Purchaser has committed to purchase up to $10,000,000 of the
Company’s Common Stock (terms not defined herein shall have the meanings ascribed to them in the Purchase Agreement)
and Warrants; and

WHEREAS, the Company desires to grant to the Purchaser the registration rights set forth herein with respect to the Draw Down
Shares and the Warrant Shares (collectively, the “Securities”).

NOW, THEREFORE, the parties hereto mutually agree as follows:

Registrable Securities.  As used herein the term “Registrable Security” means the Securities
until (i) all Securities have been disposed of pursuant to the Registration Statement, (ii) all Securities have been sold under
circumstances under which all of the applicable conditions of Rule 144 (or any similar provision then in force) under the
Securities Act (“Rule 144”) are met, (iii) all Securities have been otherwise transferred to persons who may
trade such Securities without restriction under the Securities Act, and the Company has delivered a new certificate or other
evidence of ownership for such Securities not bearing a restrictive legend, or (iv) such time as, in the opinion of counsel to the
Company, all Securities may be sold without any time, volume or manner limitations pursuant to Rule 144(k) (or any similar
provision then in effect) under the Securities Act.  In the event of any merger, reorganization, consolidation,
recapitalization or other change in corporate structure affecting the Common Stock, such adjustment shall be deemed to be made in
the definition of “Registrable Security” as is appropriate in order to prevent any dilution or enlargement of the
rights granted pursuant to this Agreement.

Restrictions on Transfer.  The Purchaser acknowledges and understands that in the absence of an effective
Registration Statement authorizing the resale of the Securities as provided herein, the Securities are “restricted
securities” as defined in Rule 144.  The Purchaser understands that no disposition or transfer of the Securities may be
made by Purchaser in the absence of (i) an opinion of counsel to the Purchaser, in form and substance reasonably satisfactory to
the Company, that such transfer may be made without registration under the Securities Act or (ii) such registration.

With a view to making available to the Purchaser the benefits of Rule 144, the Company agrees to:

(a)         
comply with the provisions of paragraph (c)(1) of Rule 144; and

   

(b)         
file with the Commission in a timely manner all reports and other documents required to be filed by the Company pursuant to
Section 13 or 15(d) under the Exchange Act; and, if at any time it is not required to file such reports but in the past had been
required to or did file such reports, it will, upon the request of the Purchaser, make available other information as required by,
and so long as necessary to permit sales of, its Registrable Securities pursuant to Rule 144.

Section
3.          Registration Rights With Respect to the Securities.

(a)         
The Company agrees that it will prepare and file with the Securities and Exchange Commission (“Commission”),
within forty-five (45) days after the date hereof, a registration statement (on Form S-3 and/or S-1, or other appropriate form of
registration statement) under the Securities Act (the “Registration Statement”), at the sole expense of the
Company (except as provided in Section 3(c) hereof), in respect of Purchaser, so as to permit a public offering and resale of the
Securities under the Securities Act by Purchaser.   The Company shall use its commercially reasonable efforts to cause the
Registration Statement to become effective within ninety (90) days (120 days in the event of a “full review” by the
Commission) of the date hereof or five (5) days of SEC clearance and will within said five (5) days request acceleration of
effectiveness.  The Company will notify Purchaser of the effectiveness of the Registration Statement within one Trading Day of
such event.

(b)         
The Company will maintain the Registration Statement or post-effective amendment filed under this Section 3 hereof effective
under the Securities Act until the earliest of (i) the date that all the Securities have been disposed of pursuant to the
Registration Statement, (ii) the date that all of the Securities have been sold pursuant to the Registration Statement, (iii) the
date that the Securities may be sold under the provisions of Rule 144 without limitation as to volume, (iv) the date all Securities
have been otherwise transferred to persons who may trade such shares without restriction under the Securities Act, and the Company
has delivered a new certificate or other evidence of ownership for such securities not bearing a restrictive legend, or (v) the
date all Securities may be sold without any time, volume or manner limitations pursuant to Rule 144(k) or any similar provision
then in effect under the Securities Act (the “Effectiveness Period”).

(c)         
All fees, disbursements and out-of-pocket expenses and costs incurred by the Company in connection with the preparation and
filing of the Registration Statement under subparagraph 3(a) and in complying with applicable securities and Blue Sky laws
(including, without limitation, all attorneys’ fees of the Company) shall be borne by the Company.  The Purchaser shall
bear the cost of underwriting and/or brokerage discounts, fees and commissions, if any, applicable to the Securities being
registered and the fees and expenses of its counsel.  The Purchaser and its counsel shall have a reasonable period, not to
exceed five (5) Trading Days, to review the proposed Registration Statement or any amendment thereto, prior to filing with the
Commission, and the Company shall provide the Purchaser with copies of any comment letters received from the Commission with
respect thereto within two (2) Trading Days of receipt thereof.  The Company shall make reasonably available for inspection by
Purchaser, any underwriter

2

   

participating in any disposition pursuant to the Registration Statement, and any attorney, accountant or
other agent retained by the Purchaser or any such underwriter all relevant financial and other records, pertinent corporate
documents and properties of the Company and its subsidiaries, and cause the Company’s officers, directors and employees to
supply all information reasonably requested by the Purchaser or any such underwriter, attorney, accountant or agent in connection
with the Registration Statement, in each case, as is customary for similar due diligence examinations, subject to the terms of the
Purchase Agreement; and provided further that, if the foregoing inspection and information gathering would otherwise
disrupt the Company’s conduct of its business, such inspection and information gathering shall, to the maximum extent
possible, be coordinated on behalf of the Purchaser and the other parties entitled thereto by one firm of counsel designed by and
on behalf of the majority in interest of Purchaser and other parties.  The Company shall qualify any of the Securities for
sale in such states as the Purchaser reasonably designates and shall furnish indemnification in the manner provided in Section 6
hereof.  However, the Company shall not be required to qualify in any state which will require an escrow or other restriction
relating to the Company and/or the sellers, or which will require the Company to qualify to do business in such state or require
the Company to file therein any general consent to service of process.  The Company at its expense will supply the Purchaser
with copies of the Registration Statement and the final prospectus included therein (the “Prospectus”) and other
related documents in such quantities as may be reasonably requested by the Purchaser.

(d)         
The Company shall not be required by this Section 3 to include the Purchaser’s Securities in any Registration Statement
which is to be filed if, in the opinion of counsel for both the Purchaser and the Company (or, should they not agree, in the
opinion of another counsel experienced in securities law matters acceptable to counsel for the Purchaser and the Company) the
proposed offering or other transfer as to which such registration is requested is exempt from applicable federal and state
securities laws and would result in all purchasers or transferees obtaining securities which are not “restricted
securities”, as defined in Rule 144 under the Securities Act.

If at any time or from time to time after the effective date of the Registration Statement, the Company notifies the Purchaser
in writing of the existence of a Potential Material Event (as defined in Section 3(e) below), the Purchaser shall not offer or sell
any Securities or engage in any other transaction involving or relating to Securities, from the time of the giving of notice with
respect to a Potential Material Event until the Purchaser receives written notice from the Company that such Potential Material
Event either has been disclosed to the public or no longer constitutes a Potential Material Event (the “Suspension
Period”); provided, however, that, if a Suspension Period occurs during any periods commencing on a Trading
Day a Draw Down Notice is deemed delivered and ending ten (10) Trading Days following the end of the corresponding Draw Down
Pricing Period, then the Company must compensate the Purchaser for any net decline in the market value of any Securities committed
to be purchased by the Purchaser through the end of such Suspension Period.  Net decline shall be calculated as the difference
between the highest VWAP during the applicable Suspension Period and the VWAP on the Trading Day immediately following a properly
delivered notice to the Purchaser that such

3

   

Suspension Period has ended.  The Company must give Purchaser notice in writing at
least two (2) Trading Days prior to the first day of the blackout period, if lawful to do so.

(e)         
“Potential Material Event” means any of the following: (i) the possession by the Company of material
information that is not ripe for disclosure in a registration statement, as determined in good faith by the Chief Executive Officer
or the Board of Directors of the Company or that disclosure of such information in the Registration Statement would be detrimental
to the business and affairs of the Company; or (ii) any material engagement or activity by the Company which would, in the good
faith determination of the Chief Executive Officer or the Board of Directors of the Company, be adversely affected by disclosure in
a registration statement at such time, which determination shall be accompanied by a good faith determination by the Chief
Executive Officer or the Board of Directors of the Company that the Registration Statement would be materially misleading absent
the inclusion of such information; or (iii) pursuant to applicable law, a fundamental change that requires the Company to file a
post-effective amendment to the Registration Statement, change the plan of distribution to the Prospectus, or must update the
information included in the Prospectus pursuant to Section 10(a)(3) of the Securities Act.

Section
4.          Cooperation with Company.  The Purchaser will cooperate with the Company in all respects in connection with this
Agreement, including timely supplying all information reasonably requested by the Company (which shall include all information
regarding the Purchaser and proposed manner of sale of the Registrable Securities required to be disclosed in the Registration
Statement) and executing and returning all documents reasonably requested in connection with the registration and sale of the
Registrable Securities and entering into and performing its obligations under any underwriting agreement, if the offering is an
underwritten offering, in usual and customary form, with the managing underwriter or underwriters of such underwritten offering.
The Purchaser shall consent to be named as an underwriter in the Registration Statement. Purchaser acknowledges that in accordance
with current Commission policy, the Purchaser will be named as the underwriter of the Securities in the Registration
Statement.

Section
5.          Registration Procedures.  If and whenever the Company is required by any of the provisions of this Agreement to
effect the registration of any of the Registrable Securities under the Securities Act, the Company shall (except as otherwise
provided in this Agreement), as expeditiously as possible, subject to the Purchaser’s assistance and cooperation as
reasonably required:

(a)         
prepare and file with the Commission such amendments and supplements to the Registration Statement and the Prospectus as may be
necessary to keep such registration statement effective and to comply with the provisions of the Securities Act with respect to the
sale or other disposition of all securities covered by such registration statement whenever the Purchaser of such Registrable
Securities shall desire to sell or otherwise dispose of the same (including prospectus supplements with respect to the sales of
securities from time to time in connection with a registration statement pursuant to Rule 415 promulgated under the Securities Act)
and (ii) take all lawful action

4

   

such that each of (A) the Registration Statement and any amendment thereto does not, when it
becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (B) the Prospectus, and any amendment or supplement thereto, does not
at any time during the Effectiveness Period include an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading;

(b)         
prior to the filing with the Commission of any Registration Statement (including any amendments thereto) and the distribution
or delivery of the Prospectus (including any supplements thereto), provide draft copies thereof to the Purchaser and reflect in
such documents all such comments as the Purchaser (and its counsel) reasonably may propose and (ii) furnish to the Purchaser such
numbers of copies of the Prospectus including a preliminary prospectus or any amendment or supplement to the Prospectus, as
applicable, in conformity with the requirements of the Securities Act, and such other documents, as the Purchaser may reasonably
request in order to facilitate the public sale or other disposition of the Registrable Securities;

(c)         
register and qualify the Registrable Securities covered by the Registration Statement under the applicable blue sky laws
(subject to the limitations set forth in Section 3(c) above), and do any and all other acts and things which may be reasonably
necessary or advisable to enable the Purchaser to consummate the public sale or other disposition in such jurisdiction of the
Registrable Securities, except that the Company shall not for any such purpose be required to qualify to do business as a foreign
corporation in any jurisdiction wherein it is not so qualified or to file therein any general consent to service of process;

(d)         
list such Registrable Securities on the Principal Market, and any other exchange on which the Common Stock of the Company is
then listed, if the listing of such Registrable Securities is then permitted under the rules of such exchange or the Principal
Market;

(e)         
notify the Purchaser at any time when  the Prospectus is required to be delivered under the Securities Act, of the
happening of any event of which it has knowledge as a result of which the Prospectus, as then in effect, includes an untrue
statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of  the circumstances then existing, and the Company shall prepare and file a curative
amendment or curative supplement under Section 5(a) as quickly as commercially possible and the period beginning on the date of
notice until the curative amendment is effective or curative supplement is provided to the Purchaser shall be deemed a Suspension
Period and the Company shall compensate the Purchaser as set forth in Section 3(d) herein;

(f)         
as promptly as practicable after becoming aware of such event, notify the Purchaser who holds Registrable Securities being sold
(or, in the event of an

5

   

underwritten offering, the managing underwriters) of the issuance by the Commission or any state authority
of any stop order or other suspension of the effectiveness of the Registration Statement at the earliest possible time and take all
lawful action to effect the withdrawal, rescission or removal of such stop order or other suspension;

(g)         
take all such other lawful actions reasonably necessary to expedite and facilitate the disposition by the Purchaser of its
Registrable Securities in accordance with the intended methods therefor provided in the Prospectus which are customary for issuers
to perform under the circumstances;

(h)         
in the event of an underwritten offering, promptly include or incorporate in a prospectus supplement or post-effective
amendment to the Registration Statement such information as the managing underwriters reasonably agree should be included therein
and to which the Company does not reasonably object and make all required filings of such prospectus supplement or post-effective
amendment as soon as practicable after it is notified of the matters to be included or incorporated in such prospectus supplement
or post-effective amendment; and

(i)         
maintain a transfer agent for its Common Stock.

Section
6.          Indemnification.

(a)         
The Company agrees to indemnify and hold harmless the Purchaser and each person, if any, who controls the Purchaser within the
meaning of the Securities Act (“Distributing Purchaser”) against any losses, claims, damages or liabilities,
joint or several (which shall, for all purposes of this Agreement, include, but not be limited to, all reasonable costs of defense
and investigation and all reasonable attorneys’ fees), to which the Distributing Purchaser may become subject, under the
Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of any material fact contained in the Registration Statement, or
any related preliminary prospectus, the Prospectus or amendment or supplement thereto, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading; provided, however, that the Company will not be liable in any such case to the extent that
any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or
omission or alleged omission made in the Registration  Statement, preliminary prospectus, the Prospectus or amendment  or
supplement thereto in reliance upon, and in conformity with, written information furnished to the Company by the Distributing
Purchaser specifically for use in the preparation thereof. This Section 6(a) shall not inure to the benefit of any Distributing
Purchaser with respect to any person asserting such loss, claim, damage or liability who purchased the Registrable Securities which
are the subject thereof if the Distributing Purchaser failed to send or give (in violation of the Securities Act or the rules and
regulations promulgated thereunder) a copy of the Prospectus to such person at or prior to the written confirmation to such person
of the sale of such Registrable Securities, where the Distributing Purchaser was obligated to do so under the

6

   

Securities Act or the
rules and regulations promulgated thereunder.  This indemnity agreement will be in addition to any liability which the Company
may otherwise have.

(b)         
The Purchaser agrees that it will indemnify and hold harmless the Company, and each officer, director of the Company or person,
if any, who controls the Company within the meaning of the Securities Act, against any losses, claims, damages or liabilities
(which shall, for all purposes of this Agreement, include, but not be limited to, all reasonable costs of defense and investigation
and all reasonable attorneys’ fees) to which the Company or any such officer, director or controlling person may become
subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the
Registration Statement, or any related preliminary prospectus, the Prospectus or amendment or supplement thereto, or arise out of
or are based upon the omission or the alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, but in each case only to the extent that such untrue statement or alleged untrue
statement or omission or alleged omission was made in the Registration Statement, preliminary prospectus, the Prospectus or
amendment or supplement thereto in reliance upon, and in conformity with, written information furnished to the Company by such
Purchaser specifically for use in the preparation thereof. This indemnity agreement will be in addition to any liability which the
Purchaser may otherwise have.  Notwithstanding anything to the contrary herein, the Purchaser shall not be liable under this
Section 6(b) for any amount in excess of the net proceeds to such Purchaser as a result of the sale of Registrable Securities
pursuant to the Registration Statement.

(c)         
Promptly after receipt by an indemnified party under this Section 6 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 6, notify the
indemnifying party of the commencement thereof; but the omission so to notify the indemnifying party will not relieve the
indemnifying party from any liability which it may have to any indemnified party except to the extent of actual prejudice
demonstrated by the indemnifying party.  In case any such action is brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate in, and, to the extent that
it may wish, jointly with any other indemnifying party similarly notified, assume the defense thereof, subject to the provisions
herein stated and after notice from the indemnifying party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party will not be liable to such indemnified party under this Section 6 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of
investigation, unless the indemnifying party shall not pursue the action to its final conclusion. 
The indemnified party shall
have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses
of such counsel shall not be at the expense of the indemnifying party if the indemnifying party has assumed the defense of the
action with counsel reasonably satisfactory to the indemnified party; provided that if the indemnified party is the Distributing
Purchaser, the fees and expenses of such counsel shall be at the expense of

7

   

the indemnifying party if (i) the employment of such
counsel has been specifically authorized in writing by the indemnifying party, or (ii) the named parties to any such action
(including any impleaded parties) include both the Distributing Purchaser and the indemnifying party and the Distributing Purchaser
shall have been advised by such counsel that there may be one or more legal defenses available to the indemnifying party different
from or in conflict with any legal defenses which may be available to the Distributing Purchaser (in which case the indemnifying
party shall not have the right to assume the defense of such action on behalf of the Distributing Purchaser, it being understood,
however, that the indemnifying party shall, in connection with any one such action or separate but substantially similar or related
actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable only for the reasonable
fees and expenses of one separate firm of attorneys for the Distributing Purchaser, which firm shall be designated in writing by
the Distributing Purchaser and be approved by the indemnifying party).  No settlement of any action against an indemnified
party shall be made without the prior written consent of the indemnified party, which consent shall not be unreasonably
withheld.

All fees and expenses of the indemnified party (including reasonable costs of defense and investigation in a manner not
inconsistent with this Section and all reasonable attorneys' fees and expenses) shall be paid to the indemnified party, as
incurred, within ten (10) Trading Days of written notice thereof to the indemnifying party; provided, that the indemnifying party
may require such indemnified party to undertake to reimburse all such fees and expenses to the extent it is finally judicially
determined that such indemnified party is not entitled to indemnification hereunder.

Section
7.          Contribution.  In order to provide for just and equitable contribution under the Securities Act in any case in
which (i) the indemnified party makes a claim for indemnification pursuant to Section 6 hereof but is judicially determined (by the
entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the
last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that the express
provisions of Section 6 hereof provide for indemnification in such case, or (ii) contribution under the Securities Act may be
required on the part of any indemnified party, then the Company and the Purchaser shall contribute to the aggregate losses, claims,
damages or liabilities to which they may be subject (which shall, for all purposes of this Agreement, include, but not be limited
to, all reasonable costs of defense and investigation and all reasonable attorneys’ fees), in either such case (after
contribution from others) on the basis of relative fault as well as any other relevant equitable considerations.  The relative
fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or
the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or the
applicable Distributing Purchaser on the other hand, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.   The Company and the Purchaser agree that it would not be
just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred to in this Section 7.  The amount paid or
payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in

8

   

respect thereof) referred
to above in this Section 7 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

Notwithstanding any other provision of this Section 7, in no event shall any (i) Purchaser be required to undertake liability to
any person under this Section 7 for any amounts in excess of the dollar amount of the net proceeds to be received by the Purchaser
from the sale of the Purchaser’s Registrable Securities (after deducting any fees, discounts and commissions applicable
thereto) pursuant to any Registration Statement under which such Registrable Securities are to be registered under the Securities
Act and (ii) underwriter be required to undertake liability to any person hereunder for any amounts in excess of the aggregate
discount, commission or other compensation payable to such underwriter with respect to the Registrable Securities underwritten by
it and distributed pursuant to the Registration Statement.

Section
8.          Notices.  All notices, demands, requests, consents, approvals, and other communications required or permitted
hereunder shall be in writing and, unless otherwise specified herein, shall be delivered as set forth in the Purchase
Agreement.

Section
9.          Assignment.  Neither this Agreement nor any rights of the Purchaser or the Company hereunder may be assigned by
either party to any other person. Notwithstanding the foregoing, (a) the provisions of this Agreement shall inure to the benefit
of, and be enforceable by, any transferee of any of the Common Stock purchased by the Purchaser pursuant to the Purchase Agreement
other than through open-market sales, and (b) upon the prior written consent of the Company, which consent shall not be
unreasonably withheld or delayed in the case of an assignment to an affiliate of the Purchaser, the Purchaser’s interest in
this Agreement may be assigned at any time, in whole or in part, to any other person or entity (including any affiliate of the
Purchaser) who agrees to be bound hereby.

Section
10.          Counterparts/Facsimile.  This Agreement may be executed in two or more counterparts, each of which shall constitute
an original, but all of which, when together shall constitute but one and the same instrument, and shall become effective when one
or more counterparts have been signed by each party hereto and delivered to the other party.  In lieu of the original, a
facsimile transmission or copy of the original shall be as effective and enforceable as the original.

Section
11.          Remedies and Severability.  The remedies provided in this Agreement are cumulative and not exclusive of any
remedies provided by law.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set
forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto
shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction.  It is hereby stipulated and declared to be the intention of
the parties that they would have executed the remaining terms, provisions, covenants

9

   

and restrictions without including any of
those that may be hereafter declared invalid, illegal, void or unenforceable.

Section
12.          Conflicting Agreements.  The Company shall not enter into any agreement with respect to its securities that is
inconsistent with the rights granted to the Purchasers in this Agreement or otherwise prevents the Company from complying with all
of its obligations hereunder.

Section
13.          Headings.  The headings in this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

Section
14.          Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New
York applicable to contracts made in New York by persons domiciled in New York City and without regard to its principles of
conflicts of laws.  The Company and the Purchaser agree to submit themselves to the in personam jurisdiction of the
state and federal courts situated within the Southern District of the State of New York with regard to any controversy arising out
of or relating to this Agreement.The prevailing party shall be awarded its costs, including attorneys’ fees, from the
non-prevailing party.  Any party shall have the right to seek injunctive relief from any court of competent jurisdiction in
any case where such relief is available.  The prevailing party in such injunctive action shall be awarded its costs, including
attorneys’ fees, from the non-prevailing party.

***************************

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[REGISTRATION RIGHTS AGREEMENT SIGNATURE PAGE]

IN WITNESS WHEREOF, the parties hereto have caused this Registration Rights Agreement to be duly executed as of the date set
forth above.

		

SUMMUS, INC. (USA)

 

By:______________________________________

         Name:

         Title:

TALISMAN MANAGEMENT LIMITED

 

By:______________________________________

         Name:

         Title:

    

 

 

11

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