Document:

Exhibit 10.2

    
      

      

    

    

    

     

    

     

    

     

    

     

    

     

    

     

    Q
      COMM INTERNATIONAL, INC.

    

    COMMON
      STOCK PURCHASE AGREEMENT

    

    June
      __,
      2005

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

    

    

    

    

    
      

      

    

    

    
      
         

      

      
         

        
        

      

      
         

      

    

    

    TABLE
      OF CONTENTS

     

    

    

    
      	
              SECTION
                1:

            	
              Sale
                of Common Stock

            	
              1

            
	 	
              1.1

            	
              Sale
                of Shares.

            	
              1

            
	 	
              1.2

            	
              Certificates
                and Payment.

            	
              1

            
	 	 	 	 
	
              SECTION
                2: 

            	
              Representations
                and Warranties of the Company

            	
              1

            
	 	
              2.1

            	
              Organization,
                Good Standing and Qualification.

            	
              1

            
	 	
              2.2

            	
              The
                Shares.

            	
              2

            
	 	
              2.3

            	
              Authorization
                and Enforceability.

            	
              2

            
	 	
              2.4

            	
              No
                Other Registration Rights.

            	
              2

            
	 	
              2.5

            	
              No
                Brokers or Finders.

            	
              2

            
	 	
              2.6

            	
              Disclosure.

            	
              2

            
	 	 	 	 
	
              SECTION
                3: 

            	
              Representations
                and Warranties of Purchaser

            	
              3

            
	 	
              3.1

            	
              No
                Registration.

            	
              3

            
	 	
              3.2

            	
              Investment
                Intent.

            	
              3

            
	 	
              3.3

            	
              Investment
                Experience.

            	
              3

            
	 	
              3.4

            	
              Speculative
                Nature of Investment.

            	
              3

            
	 	
              3.5

            	
              Access
                to Data.

            	
              3

            
	 	
              3.6

            	
              Accredited
                Investor”.

            	
              3

            
	 	
              3.7

            	
              Residency
                or Principal Place of Business.

            	
              4

            
	 	
              3.8

            	
              Rule
                144.

            	
              4

            
	 	
              3.9

            	
              Authorization.

            	
              4

            
	 	
              3.10

            	
              Brokers
                or Finders.

            	
              4

            
	 	
              3.11

            	
              Tax
                Advisors.

            	
              5

            
	 	
              3.12

            	
              Legends.

            	
              5

            
	 	 	 	 
	
              SECTION
                4: 

            	
              Miscellaneous

            	
              5

            
	 	
              4.1

            	
              Governing
                Law.

            	
              5

            
	 	
              4.2

            	
              Survival.

            	
              5

            
	 	
              4.3

            	
              Successors
                and Assigns.

            	
              5

            
	 	
              4.4

            	
              Entire
                Agreement; Amendment.

            	
              5

            
	 	
              4.5

            	
              Notices,
                etc.

            	
              6

            
	 	
              4.6

            	
              Expenses.

            	
              6

            
	 	
              4.7

            	
              Severability.

            	
              6

            
	 	
              4.8

            	
              Counterparts.

            	
              6

            
	 	
              4.9

            	
              Electronic
                or Telecopy Execution and Delivery.

            	
              6

            

    

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

     

    Q
      COMM INTERNATIONAL, INC.

    COMMON
      STOCK PURCHASE AGREEMENT

    

    This
      Common Stock Purchase Agreement (the “Agreement”)
      is made
      as of June__, 2005, by and among Q Comm International, Inc., a Utah corporation
      (the “Company”),
      and
      ________________________ (the “Purchaser”).
      The
      Company and Purchaser are herein referred to individually as “Party”
      and
      collectively as the “Parties.”

     

    WHEREAS
      the Company desires to sell shares of its Common Stock (“Shares”)
      to
      Purchaser, and Purchaser desires to purchase the Shares, as more fully described
      herein.

     

    WHEREAS,
      in connection with the execution of this Agreement, the Parties have
      simultaneously executed a Registration Rights Agreement (the “Rights
      Agreement”).
      The
      Rights Agreements and this Agreement are herein referred to as the “Agreements.”

     

    NOW
      THEREFORE, in consideration of the mutual covenants, agreements, conditions,
      representations, and warranties contained in this Agreement, the Company and
      Purchaser hereby agree as follows:

     

    SECTION
      1  

     

    Sale
      of Common Stock

     

    1.1  Sale
      of Shares.
      Subject
      to the terms and conditions of this Agreement, the Company hereby issues and
      sells to Purchaser, and Purchaser hereby purchases from the Company
      _________________ (_________) Shares for a purchase price of Five Dollars
      ($5.00) per share or for an aggregate purchase price of
      ________________________________________ Dollars ($_________). 

     

    1.2  Certificates
      and Payment.
      Upon
      execution of this Agreement, the Company will deliver to the Purchaser a
      certificate or certificates representing the number of Shares purchased
      hereunder against delivery to the Company by the Purchaser of a check in the
      amount of the purchase price therefor, payable to the Company’s order, or a wire
      transfer to the Company’s bank account per the Company’s
      instructions.

     

    SECTION
      2

      

    Representations
      and Warranties of the Company

     

    The
      Company, as of the date of this Agreement, represents and warrants to the
      Purchaser as follows:

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

     

    2.1  Organization,
      Good Standing and Qualification. The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Utah. The Company has the requisite corporate
      power and authority to own and operate its properties and assets, to carry
      on
      its business as presently conducted or proposed to be conducted, to execute
      and
      deliver the Agreements, to issue and sell the Shares and to perform its
      obligations pursuant to the Agreements and the Company’s Articles of
      Incorporation. The Company is presently qualified to do business as a foreign
      corporation in each jurisdiction where the failure to be so qualified could
      reasonably be expected to have a material adverse effect on the Company’s
      financial condition or business as now conducted or proposed to be
      conducted.

     

    2.2  The
      Shares.
      The
      Shares, when issued and delivered and paid for in compliance with the provisions
      of this Agreement, will be validly issued, fully paid and non-assessable. The
      Shares will be free of any liens or encumbrances, other than any liens or
      encumbrances created by or imposed upon by Purchaser; provided, however, that
      the Shares are subject to restrictions on transfer under U.S. state and/or
      federal securities laws and as set forth herein and in the Rights
      Agreement.

     

    2.3  Authorization and
      Enforceability.
      All
      corporate action on the part of the Company and its directors, officers and
      stockholders necessary for the authorization, execution and delivery of the
      Agreements by the Company, the authorization, sale, issuance and delivery of
      the
      Shares, and the performance of all of the Company’s obligations under the
      Agreements has been taken. The Agreements, when executed and delivered by the
      Company, shall constitute valid and binding obligations of the Company,
      enforceable in accordance with their terms, except (i) as limited by laws of
      general application relating to bankruptcy, insolvency and the relief of
      debtors, (ii) as limited by rules of law governing specific performance,
      injunctive relief, or other equitable remedies and by general principles of
      equity, and (iii) to the extent the indemnification provisions contained in
      the
      Rights Agreement may further be limited by applicable laws and principles of
      public policy.

     

    2.4  No
      Other Registration Rights.
      Except
      as set forth in the Rights Agreement, the Company is presently not under any
      obligation and has not granted any rights to register under the Securities
      Act
      of 1933 (the “Securities
      Act”)
      any of
      its presently outstanding securities or any of its securities that may hereafter
      be issued.

     

    2.5  No
      Brokers or Finders.
      The
      Company has not incurred, and will not incur, directly or indirectly, as a
      result of any action taken by the Company, any liability for brokerage or
      finders’ fees or agents’ commissions or any similar charges in connection with
      this Agreement or any of the transactions contemplated hereby.

     

    2.6  Disclosure.
      The
      Company has provided or made available to Purchaser all of the information
      regarding the Company that such Purchaser has requested for deciding whether
      to
      purchase the Shares. To the Company’s knowledge, neither the Agreements nor any
      other documents delivered in connection herewith, when taken as a whole, contain
      any untrue statement of a material fact or omit to state a material fact
      necessary to make the statements contained herein or therein not misleading
      in
      light of the circumstances under which they were made. The Company does not
      represent or warrant that it will achieve any financial projections provided
      to
      the Purchaser.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

     

    SECTION
      3  

     

    Representations
      and Warranties of Purchaser

     

    Purchaser
      hereby represents and warrants to the Company as follows:

     

    3.1  No
      Registration.
      Purchaser understands that the Shares have not been registered under the
      Securities Act of 1933 (the “Securities Act”) by reason of a specific exemption
      from the registration provisions of the Securities Act, the availability of
      which depends upon, among other things, the bona fide nature of the investment
      intent and the accuracy of such Purchaser’s representations as expressed
      herein.

     

    3.2  Investment
      Intent.
      Purchaser is acquiring the Shares for investment for its own account, not as
      a
      nominee or agent, and not with the view to, or for resale in connection with,
      any distribution thereof, and Purchaser has no present intention of selling,
      granting any participation in, or otherwise distributing the same. Purchaser
      further represents that it does not have any contract, undertaking, agreement,
      or arrangement with any person or entity to sell, transfer, or grant
      participation to such person or entity or to any third person or entity with
      respect to any of the Shares.

     

    3.3  Investment
      Experience.
      Purchaser has substantial experience in evaluating and investing in private
      placement transactions of securities in companies similar to the Company and
      can
      protect its own interests in connection with such purchase. Purchaser has such
      knowledge and experience in financial and business matters that Purchaser is
      capable of evaluating the merits and risks of its investment in the
      Company.

     

    3.4  Speculative
      Nature of Investment.
      Purchaser understands and acknowledges that the Company has a limited financial
      and operating history and that an investment in the Company is highly
      speculative and involves substantial risks. Purchaser can bear the economic
      risk
      of Purchaser’s investment and is able, without impairing Purchaser’s financial
      condition, to hold the Shares for an indefinite period of time and to suffer
      a
      complete loss of Purchaser’s investment.

     

    3.5  Access
      to Data.
      Purchaser has had an opportunity to ask questions of, and receive answers from,
      the officers of the Company concerning the Agreements and the transaction
      contemplated by the Agreements, as well as the Company’s business, management,
      and financial affairs, which questions were answered to its satisfaction.
      Purchaser believes that it has received all the information that Purchaser
      considers to be necessary or appropriate for deciding whether to purchase the
      Shares. Purchaser has read the documents that the Company has filed with the
      Securities and Exchange Commission (the “SEC”),
      including current reports on Form 8-K and periodic reports on Forms 10-KSB
      and
      10-QSB. 

     

    3.6  Accredited
      Investor”.
      The
      Purchaser is an “accredited investor” within the meaning of Regulation D, Rule
      501(a), promulgated by the SEC under the Securities Act and shall submit to
      the
      Company such further assurances of such status as may be reasonably requested
      by
      the Company.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

     

    3.7  Residency
      or Principal Place of Business.
      The
      residency of Purchaser (or, in the case of a partnership or corporation, such
      entity’s principal place of business) is correctly set forth on the signature
      page to this Agreement.

     

    3.8  Rule
      144.
      Purchaser acknowledges that the Shares must be held indefinitely unless
      subsequently registered under the Securities Act or an exemption from such
      registration is available. Purchaser is aware of the provisions of Rule 144
      promulgated under the Securities Act which permit limited resale of shares
      purchased in a private placement subject to the satisfaction of certain
      conditions, including among other things, the existence of a public market
      for
      the shares, the availability of certain current public information about the
      Company, the resale occurring not less than one year after a party has purchased
      and paid for the security to be sold, the sale being effected through a
“broker’s transaction” or in transactions directly with a “market maker” and the
      number of shares being sold during any three-month period not exceeding
      specified limitations. Although the current public information referred to
      above
      is now available, Purchaser acknowledges and understands that, the Company
      may
      not be satisfying the current public information requirement of Rule 144 at
      the
      time the Purchaser wishes to sell the Shares, and that, in such event, the
      Purchaser may be precluded from selling such securities under Rule 144, even
      if
      the other requirements of Rule 144 have been satisfied. Purchaser acknowledges
      that, in the event all of the requirements of Rule 144 are not met, registration
      under the Securities Act or an exemption from registration will be required
      for
      any disposition of the Shares or the underlying Common Stock. Purchaser
      understands that, although Rule 144 is not exclusive, the SEC has expressed
      its
      opinion that persons proposing to sell restricted securities received in a
      private offering other than in a registered offering or pursuant to Rule 144
      will have a substantial burden of proof in establishing that an exemption from
      registration is available for such offers or sales and that such persons and
      the
      brokers who participate in the transactions do so at their own
      risk.

     

    3.9  Authorization.

     

    (a)  Purchaser
      has all requisite power and authority to execute and deliver the Agreements,
      to
      purchase the Shares hereunder and to carry out and perform its obligations
      under
      the terms of the Agreements. All action on the part of the Purchaser necessary
      for the authorization, execution, delivery and performance of the Agreements,
      and the performance of all of the Purchaser’s obligations under the Agreements,
      has been taken or will be taken prior to the Closing.

     

    (b)  The
      Agreements, when executed and delivered by the Purchaser, will constitute valid
      and legally binding obligations of the Purchaser, enforceable in accordance
      with
      their terms except: (i) to the extent that the indemnification provisions
      contained in the Rights Agreement may be limited by applicable law and
      principles of public policy, (ii) as limited by applicable bankruptcy,
      insolvency, reorganization, moratorium and other laws of general application
      affecting enforcement of creditors’ rights generally, and (iii) as limited by
      laws relating to the availability of specific performance, injunctive relief
      or
      other equitable remedies or by general principles of equity.

     

    3.10  Brokers
      or Finders.
      Purchaser has not engaged any brokers, finders or agents, and neither the
      Company nor any other Purchaser has, nor will, incur, directly or indirectly,
      as
      a result of any action taken by the Purchaser, any liability for brokerage
      or
      finders’ fees or agents’ commissions or any similar charges in connection with
      the Agreement.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

     

    3.11  Tax
      Advisors.
      Purchaser has reviewed with its own tax advisors the U.S. federal, state, local
      and foreign tax consequences of this investment and the transactions
      contemplated by the Agreement. With respect to such matters, Purchaser relies
      solely on such advisors and not on any statements or representations of the
      Company or any of its agents, written or oral. Purchaser understands that it
      (and not the Company) shall be responsible for its own tax liability that may
      arise as a result of this investment or the transactions contemplated by the
      Agreements.

     

    3.12  Legends.
      Purchaser understands and agrees that the certificates evidencing the Shares,
      or
      any other securities issued in respect of the Shares upon any stock split,
      stock
      dividend, recapitalization, merger, consolidation or similar event, shall bear
      the following legend (in addition to any legend required by the Rights Agreement
      or under applicable state securities laws):

     

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND
      MAY
      NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL
      REGISTERED UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES LAWS, OR UNLESS
      THE
      COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE REASONABLY
      SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT
      REQUIRED.”

     

    SECTION
      4

     

    Miscellaneous

    

    4.1  Governing
      Law.
      This
      Agreement shall be governed and construed in all respects in accordance with
      the
      laws of the State of Utah as applied to agreements made and performed in Utah
      by
      residents of the State of Utah. 

     

    4.2  Survival.
      The
      representations, warranties, covenants and agreements made herein shall survive
      any investigation made by any Purchaser.

     

    4.3  Successors
      and Assigns.
      Except
      as otherwise provided herein, the provisions hereof shall inure to the benefit
      of, and be binding upon, the successors, assigns, heirs, executors and
      administrators of the parties hereto, provided, however, that the rights of
      the
      Purchaser to purchase the Shares shall not be assignable without the prior
      written consent of the Company.

     

    4.4  Entire
      Agreement; Amendment.
      The
      Agreements constitute the entire agreement between the Parties with regard
      to
      the subject matter hereof, and no Party shall be liable or bound to any other
      party in any manner by any warranties, representations or covenants except
      as
      specifically set forth herein. Except as expressly provided, no term hereof
      may
      be amended, waived, discharged or terminated other than by a written instrument
      signed by the Company and Purchaser. 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

     

    4.5  Notices,
      etc.
      All
      notices and other communications required or permitted hereunder shall be in
      writing and shall be sent by email, facsimile or mailed by registered or
      certified mail, postage prepaid, or otherwise delivered by hand or by messenger,
      addressed (a) if to Purchaser, at Purchaser’s postal or email address or
      facsimile number set forth in the records of the Company, or at such other
      postal or email address as Purchaser shall have furnished to the Company in
      writing, or (b) if to any other holder of any Shares, at such postal or email
      address or facsimile number as such holder shall have furnished the Company
      in
      writing, or, until any such holder so furnishes a postal or email address or
      facsimile number to the Company, then to and at the postal or email address
      or
      facsimile number of the last holder of such Shares who has so furnished an
      address to the Company, or (c) if to the Company, at its principal executive
      office and addressed to the attention of the Corporate Secretary, or at such
      other postal or email address or facsimile number as the Company shall have
      furnished to Purchaser. Each such notice or other communication shall for all
      purposes of this Agreement be treated as effective or having been given when
      delivered if delivered personally, or, if sent by email or facsimile upon
      confirmation of the transmission, or, if sent by mail, at the earlier of its
      receipt or five days after the same has been deposited in a regularly maintained
      receptacle for the deposit of the United States mail, addressed and mailed
      as
      aforesaid.

     

    4.6  Expenses.
      Each
      party shall bear its own expenses incurred on its behalf with respect to this
      Agreement and the transactions contemplated hereby.

     

    4.7  Severability.
      In the
      event that any provision of this Agreement becomes or is declared by a court
      of
      competent jurisdiction to be illegal, unenforceable or void, this Agreement
      shall continue in full force and effect without such provision; provided that
      no
      such severability shall be effective if it materially changes the economic
      benefit of this Agreement to any party.

     

    4.8  Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      enforceable against the parties actually executing such counterparts, and all
      of
      which together shall constitute one instrument.

     

    4.9  Electronic
      or Telecopy Execution and Delivery.
      An
      electronic version or a facsimile, telecopy or other reproduction of this
      Agreement may be executed by one or more parties hereto, and an executed copy
      of
      this Agreement may be delivered by one or more parties hereto by email,
      facsimile or electronic transmission pursuant to which the signature of or
      on
      behalf of such party is evident, and such execution and delivery shall be
      considered valid, binding and effective for all purposes. At the request of
      any
      party hereto, all parties hereto agree to execute an original of this Agreement
      as well as any electronic, facsimile, telecopy or other reproduction
      hereof.

     

    

     

    

    [Signature
      Page to Follow]

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

     

     

     

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Common Stock Purchase Agreement as of the date first
      above written.

     

    

    
      	
              “COMPANY”

            	 	
              Q
                COMM INTERNATIONAL, INC.

            
	 	 	 
	 	
              By:

            	 
	 	 	 
	 	
              Name:

            	 
	 	 	 
	 	
              Title:

            	 
	 	 	 
	 	 	 
	
              “PURCHASER”

            	
              If
                an entity:

            	 
	 	 	
              (Name
                of entity)

            
	 	 	 
	 	 	 
	 	 	
              (State
                of principal place of business)

            
	 	 	 
	 	
              By:
                

            	 
	 	
               

            	
              (Signature
                of authorized representative)

            
	 	 	 
	 	 	 
	 	
              Name:

            	 
	 	
               

            	
              (Name
                of authorized representative)

            
	 	 	 
	 	
              Title:

            	 
	 	 	 
	 	 	 
	 	 	 
	
              “PURCHASER”

            	
              If
                an individual:

            	 
	 	
               

            	
              (Name
                of individual)

            
	 	 	 
	 	 	 
	 	
               

            	
              (State
                of residency)

            
	 	 	 
	 	 	 
	 	
               

            	
              (Signature
                of individual)

            

    

    
7Exhibit 10.3

    
      

      

    

     

     

     

     

     

    

       

      Q
        COMM INTERNATIONAL, INC.

       

      REGISTRATION
        RIGHTS AGREEMENT

       

      June
        __, 2005

       

       

       

       

       

       

      
 

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      

      TABLE
        OF CONTENTS

      

      
        	 	 Page
	
                Section
                  1 Definitions

              	
                1

              
	 	
                1.1

              	
                Certain
                  Definitions

              	
                1

              
	
                Section
                  2 Registration Rights

              	
                3

              
	 	
                2.1

              	
                Company
                  Registration

              	
                3

              
	 	
                2.2

              	
                Registration
                  on Form S-3

              	
                4

              
	 	
                2.3

              	
                Expenses
                  of Registration

              	
                6

              
	 	
                2.4

              	
                Registration
                  Procedures

              	
                6

              
	 	
                2.5

              	
                Indemnification

              	
                8

              
	 	
                2.6

              	
                Information
                  by Holder

              	
                9

              
	 	
                2.7

              	
                Restrictions
                  on Transfer

              	
                10

              
	 	
                2.8

              	
                Rule
                  144 Reporting

              	
                11

              
	 	
                2.9

              	
                Delay
                  of Registration

              	
                12

              
	 	
                2.10

              	
                Transfer
                  or Assignment of Registration Rights

              	
                12

              
	 	
                2.11

              	
                Limitations
                  on Subsequent Registration Rights

              	
                12

              
	 	
                2.12

              	
                Termination
                  of Registration Rights

              	
                12

              
	
                Section
                  3 Miscellaneous

              	
                12

              
	 	
                3.1

              	
                Amendment

              	
                12

              
	 	
                3.2

              	
                Notices

              	
                12

              
	 	
                3.3

              	
                Governing
                  Law

              	
                13

              
	 	
                3.4

              	
                Successors
                  and Assigns

              	
                13

              
	 	
                3.5

              	
                Entire
                  Agreement

              	
                13

              
	 	
                3.6

              	
                Delays
                  or Omissions

              	
                13

              
	 	
                3.7

              	
                Severability

              	
                14

              
	 	
                3.8

              	
                Titles
                  and Subtitles

              	
                14

              
	 	
                3.9

              	
                Counterparts

              	
                14

              
	 	
                3.10

              	
                Telecopy
                  Execution and Delivery

              	
                14

              
	 	
                3.11

              	
                Jurisdiction;
                  Venue

              	
                14

              
	 	
                3.12

              	
                Further
                  Assurances

              	
                15

              
	 	
                3.13

              	
                Attorneys’
                  Fees

              	
                15

              
	 	
                3.14

              	
                Aggregation

              	
                15

              
	 	
                3.15

              	
                Obligation
                  of Company

              	
                15

              

      

      

      
        
          i

        

        
           

          
            

          

        

        
           

        

      

      

       

      Q
        COMM INTERNATIONAL, INC.

       

      

      REGISTRATION
        RIGHTS AGREEMENT

       

       

      This
        Registration Rights Agreement (this “Agreement”)
        is
        made and entered into as of June __, 2005, by and among Q Comm International,
        Inc., a Utah corporation (the “Company”),
        and
        the persons and entities (each, an “Investor”
        and
        collectively, the “Investors”)
        listed
        on Exhibit A
        hereto.
        Unless otherwise defined herein, capitalized terms used in this Agreement
        have
        the meanings ascribed to them in Section
        1.

       

      RECITALS

       

      Whereas
        the Company has sold Shares of the Company’s Common Stock to the Investors
        listed on Exhibit
        A
        hereto
        pursuant to the Purchase Agreements; and

       

      Whereas,
        in connection with the sale of these Shares, the Company desires to grant
        registration rights to the Investors, which will allow the Investors to resell
        the shares in the public market upon certain conditions;

       

      NOW,
        THEREFORE:
        In
        consideration of the mutual promises and covenants set forth herein, and
        other
        consideration, the receipt and adequacy of which is hereby acknowledged,
        the
        parties hereto agree as follows:

      Section 1

      Definitions

       

      1.1  Certain
        Definitions.
        As
        used
        in this Agreement, the following terms shall have the meanings set forth
        below:

       

      (a)  “Commission”
        shall
        mean the Securities and Exchange Commission or any other federal agency at
        the
        time administering the Securities Act.

       

      (b)  “Common
        Stock”
        means
        the Common Stock of the Company.

       

      (c)  “Exchange
        Act”
        shall
        mean the Securities Exchange Act of 1934, as amended, or any similar successor
        federal statute and the rules and regulations thereunder, all as the same
        shall
        be in effect from time to time. 

       

      (d)  “Holder”
        shall
        mean any Investor who holds Registrable Securities and any holder of Registrable
        Securities to whom the registration rights conferred by this Agreement have
        been
        duly and validly transferred in accordance with Section
        2.10
        of this
        Agreement.

       

      (e)  “Indemnified
        Party”
        shall
        have the meaning set forth in Section 2.5(c)
        hereto.

       

      (f)  “Indemnifying
        Party”
        shall
        have the meaning set forth in Section 2.5(c)
        hereto.

       

      (g)  “Investors”
        shall
        mean the persons and entities listed on Exhibit
        A
        hereto.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      

       

      (h)  “Purchase
        Agreements”
        shall
        mean the Stock Purchase Agreements, dated the same date as this Agreement,
        that
        have been entered into severally between the Company and each of the
        Investors.

       

      (i)  “Registrable
        Securities”
        shall
        mean (i) shares of Common Stock issued pursuant to the Purchase Agreements
        and (ii) any Common Stock issued as a dividend or other distribution
        with
        respect to or in exchange for or in replacement of the shares referenced
        in
        (i) above; provided,
        however,
        that
        Registrable Securities shall not include any shares of Common Stock described
        in
        clause (i) or (ii) above which have previously been registered or which have
        been sold to the public either pursuant to a registration statement or
        Rule 144, or which have been sold in a private transaction in which
        the
        transferor’s rights under this Agreement are not validly assigned in accordance
        with this Agreement.

       

      (j)  The
        terms
“register,”“registered”
        and
“registration”
        shall
        refer to a registration effected by preparing and filing a registration
        statement in compliance with the Securities Act and the applicable rules
        and
        regulations thereunder, and the declaration or ordering of the effectiveness
        of
        such registration statement.

       

      (k)  “Registration
        Expenses”
        shall
        mean all expenses incurred in effecting any registration pursuant to this
        Agreement, including, without limitation, all registration, qualification,
        and
        filing fees, printing expenses, escrow fees, blue sky fees and expenses,
        and
        expenses of any regular or special audits incident to or required by any
        such
        registration, but shall not include Selling Expenses and the compensation
        of
        regular employees of the Company.

       

      (l)  “Restricted
        Securities”
        shall
        mean any Registrable Securities required to bear the legend set forth in
        Section 2.7(c)
        hereof.

       

      (m)  “Rule 144”
        shall
        mean Rule 144 as promulgated by the Commission under the Securities
        Act, as
        such Rule may be amended from time to time, or any similar successor rule
        that
        may be promulgated by the Commission.

       

      (n)  “Rule
        145”
        shall
        mean Rule 145 as promulgated by the Commission under the Securities
        Act, as
        such Rule may be amended from time to time, or any similar successor rule
        that
        may be promulgated by the Commission

       

      (o)  “Securities
        Act”
        shall
        mean the Securities Act of 1933, as amended, or any similar successor federal
        statute and the rules and regulations thereunder, all as the same shall be
        in
        effect from time to time.

       

      (p)  “Selling
        Expenses”
        shall
        mean all underwriting discounts, selling commissions, and stock transfer
        taxes
        applicable to the sale of Registrable Securities and fees and disbursements
        of
        counsel for any Holder.

       

      (q)  “Shares”
        shall
        mean the shares
        of
        Common Stock held by the Investors.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      Section 2  

       

      Registration
        Rights

       

      2.1       Company
        Registration.

       

      (a)  Company
        Registration.
        If the
        Company shall determine to register any of its securities either for its
        own
        account or the account of a security holder or holders, other than a
        registration pursuant to Section
        2.2
        herein,
        a registration relating solely to employee benefit plans, a registration
        relating to the offer and sale of debt securities, a registration relating
        to a
        corporate reorganization or other Rule 145 transaction, or a registration
        on any
        registration form that does not permit secondary sales, the Company
        will:

       

      (i)  promptly
        give written notice of the proposed registration to all Holders;
        and

       

      (ii)  use
        its
        reasonable best efforts to include in such registration (and any related
        qualification under blue sky laws or other compliance), except as set forth
        in
Section 2.1(b)
        below,
        and in any underwriting involved therein, all of such Registrable Securities
        as
        are specified in a written request or requests made by any Holder or Holders
        received by the Company within fifteen (15) days after such written notice
        from
        the Company is mailed or delivered. Such written request may specify all
        or a
        part of a Holder’s Registrable Securities for inclusion in such
        registration.

       

      (b)  Underwriting.
        If the
        registration of which the Company gives notice is for a registered public
        offering involving an underwriting, the Company shall so advise the Holders
        as a
        part of the written notice given pursuant to Section 2.1(a)(i).
        In such
        event, the right of any Holder to registration pursuant to this Section 2.1
        shall be
        conditioned upon such Holder’s participation in such underwriting and the
        inclusion of such Holder’s Registrable Securities in the underwriting to the
        extent provided herein. All Holders proposing to distribute their securities
        through such underwriting shall (together with the Company and the other
        holders
        of securities of the Company proposing to distribute their securities through
        such underwriting) enter into an underwriting agreement in customary form
        with
        the representative of the underwriter or underwriters selected by the
        Company.

       

      Notwithstanding
        any other provision of this Section 2.1,
        if the
        underwriters advise the Company in writing that marketing factors require
        a
        limitation on the number of shares to be underwritten, the underwriters may
        (subject to the limitations set forth below) limit the number of Registrable
        Securities to be included in the registration and underwriting. The Company
        shall so advise all holders of securities requesting registration, and the
        number of shares of securities that are entitled to be included in the
        registration and underwriting shall be allocated, as follows: (i) first,
        to the
        Company for securities being sold for its own account, (ii) second, to the
        Holders requesting to include Registrable Securities in such registration
        statement based on the pro
        rata
        percentage of Registrable Securities held by such Holders, (iii) third, to
        the
        other selling stockholders requesting to include other shares in such
        registration statement based on the pro rata percentage of other shares held
        by
        such other selling stockholders. If a person who has requested inclusion
        in such
        registration as provided above does not agree to the terms of any such
        underwriting, such person shall also be excluded therefrom by written notice
        from the Company or the underwriter. Any Registrable Securities or other
        securities excluded or withdrawn from such underwriting shall also be withdrawn
        from such registration. If shares are so withdrawn from the registration
        and if
        the number of shares of Registrable Securities to be included in such
        registration was previously reduced as a result of marketing factors pursuant
        to
Section
        2.1(b),
        the
        Company shall then offer to all persons who have retained the right to include
        securities in the registration the right to include additional securities
        in the
        registration in an aggregate amount equal to the number of shares so withdrawn,
        with such shares to be allocated among the persons requesting additional
        inclusion in the manner set forth above.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      

       

      (c)  Right
        to Terminate Registration.
        The
        Company shall have the right to terminate or withdraw any registration initiated
        by it under this Section 2.1
        prior to
        the effectiveness of such registration, whether or not any Holder has elected
        to
        include securities in such registration.

       

      2.2  Registration
        on Form S-3

      . 
        

      (a)  Request
        for Form S-3 Registration.
        The
        Company shall use its reasonable best efforts to qualify itself to register
        it
        securities on Form S-3 or any comparable or successor form or forms of the
        Commission. Subject to the conditions set forth in this Section 2.2,
        if the
        Company shall receive from a Holder or Holders of Registrable Securities
        a
        written request that the Company effect any registration on Form S-3 or any
        similar short form registration statement with respect to all or part of
        the
        Registrable Securities (with such request stating the number of shares of
        Registrable Securities to be disposed of and the intended methods of disposition
        of such shares by such Holder or Holders), the Company will: 

       

      (i)  promptly
        give written notice of the proposed registration to all other Holders;
        and

       

      (ii)  as
        soon
        as practicable, file and use its reasonable best efforts to effect such
        registration (including, without limitation, filing post-effective amendments,
        appropriate qualifications under applicable blue sky or other state securities
        laws, and appropriate compliance with the Securities Act) and to permit or
        facilitate the sale and distribution of all or such portion of such Registrable
        Securities as are specified in such request, together with all or such portion
        of the Registrable Securities of any Holder or Holders joining in such request
        as are specified in a written request received by the Company within twenty
        (20)
        days after such written notice from the Company is mailed or
        delivered.

       

      If,
        at
        the time the Holder(s) make a request for a registration on Form S-3 pursuant
        to
        this Section
        2.2, the
        Company does not qualify to use Form S-3 pursuant the qualification requirements
        of that form (or cannot reasonably be expected to so qualify within sixty
        (60)
        days of such request), then the Company shall be required to file a registration
        on Form S-1 or such other form of the Commission that would allow the Holders
        to
        sell the Registrable Securities in a registered offering. In such instance,
        all
        the provisions of this Section
        2.2 shall
        continue to apply to such alternative form of registration.

       

      (b)  Limitations
        on Form S-3 Registration.
        The
        Company shall not be obligated to effect, or take any action to effect, any
        such
        registration pursuant to this Section 2.2:
        

       

      (i)  Prior
        to
        three hundred and sixty five (365) days from the date of this
        Agreement.

       

      (ii)  In
        any
        particular jurisdiction in which the Company would be required to execute
        a
        general consent to service of process in effecting such registration,
        qualification, or compliance, unless the Company is already subject to service
        in such jurisdiction and except as may be required by the Securities Act;
        

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      

       

      (iii)  If
        the
        Holders, together with the holders of any other securities of the Company
        entitled to inclusion in such registration, propose to sell Registrable
        Securities and such other securities (if any) on Form S-3 at an aggregate
        price
        to the public of less than Five Hundred Thousand Dollars ($500,000);
        or

       

      (iv)  If,
        in
        any twelve-month period, the Company has already effected two (2) such
        registrations in such period.

       

      (c)  Deferral.
        If
        (i) in the good faith judgment of the Board of Directors of the Company
        (the “Board”),
        the
        filing of a registration statement covering the Registrable Securities would
        be
        materially detrimental to the Company and the Board concludes, as a result,
        that
        it is in the best interests of the Company to defer the filing of such
        registration statement at such time, and (ii) the Company shall furnish
        to
        such Holders a certificate signed by the President of the Company, stating
        that,
        in the good faith judgment of the Board, it would be materially detrimental
        to
        the Company for such registration statement to be filed in the near future
        and
        that it is, therefore, in the best interests of the Company to defer the
        filing
        of such registration statement, then the Company shall have the right to
        defer
        such filing for a period of not more than ninety (90) days after receipt
        of the
        request of the Holder or Holders under this Section
        2.2;
        provided
        that the Company shall not defer its obligation in this manner more than
        once in
        any twelve-month period.

       

      (d)  Underwriting.
        If the
        Holder(s) intend to distribute the Registrable Securities covered by their
        request by means of an underwriting, they shall so advise the Company as
        a part
        of their request made pursuant to this Section 2.2
        and the
        Company shall include such information in the written notice given pursuant
        to
Section 2.2(a)(i).
        In such
        event, the right of any Holder to include all or any portion of its Registrable
        Securities in such registration pursuant to this Section 2.2
        shall be
        conditioned upon such Holder’s participation in such underwriting and the
        inclusion of such Holder’s Registrable Securities in such registration to the
        extent provided herein. The Company shall (together with all Holders and
        other
        persons proposing to distribute their securities through such underwriting)
        enter into an underwriting agreement in customary form with the representative
        of the underwriter or underwriters selected for such underwriting by such
        Holders that hold a majority in interest of the Registrable Securities to
        be
        registered in such registration, which underwriters are reasonably acceptable
        to
        the Company.

       

      Notwithstanding
        any other provision of this Section 2.2,
        if the
        underwriters advise the Initiating Holders in writing that marketing factors
        require a limitation on the number of shares to be underwritten, the number
        of
        Registrable Securities and other Shares that may be so included shall be
        allocated as follows: (i) first, among all Holders requesting to include
        Registrable Securities in such registration statement based on the pro rata
        percentage of Registrable Securities held by such Holders; (ii) second, to
        the
        Company, for its own account; and (iii) to other selling stockholders holding
        other Shares. 

       

      If
        a
        person who has requested inclusion in such registration as provided above
        does
        not agree to the terms of any such underwriting, such person shall be excluded
        therefrom by written notice from the Company, the underwriter, or the Holder(s).
        The Registrable Securities or other securities so excluded shall also be
        withdrawn from such registration. Any Registrable Securities or other securities
        excluded or withdrawn from such underwriting shall also be withdrawn from
        such
        registration. If Shares are so withdrawn from the registration and if the
        number
        of Shares to be included in such registration was previously reduced as a
        result
        of marketing factors pursuant to this Section 2.2(d),
        then
        the Company shall then offer to all Holders who have retained rights to include
        securities in the registration the right to include additional Registrable
        Securities in the registration in an aggregate amount equal to the number
        of
        shares so withdrawn, with such shares to be allocated among such Holders
        requesting additional inclusion, as set forth above.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      

       

      2.3  Expenses
        of Registration.
        All
        Registration Expenses incurred in connection with registrations pursuant
        to
Sections 2.1
        and 2.2 hereof
        shall be borne by the Company; provided,
        however,
        that
        the Company shall not be required to pay for any expenses of any registration
        proceeding begun pursuant to Section
        2.2
        if the
        registration request is subsequently withdrawn at the request of the Holders
        of
        a majority of the Registrable Securities to be registered or because a
        sufficient number of Holders shall have withdrawn so that the minimum offering
        conditions set forth in Section
        2.2
        are no
        longer satisfied (in which case all participating Holders shall bear such
        expenses pro
        rata
        among
        each other based on the number of Registrable Securities requested to be
        so
        registered). All Selling Expenses relating to securities registered on behalf
        of
        the Holders shall be borne by the holders of securities included in such
        registration pro rata among each other on the basis of the number of Registrable
        Securities so registered.

       

      2.4  Registration
        Procedures.
        In the
        case of each registration effected by the Company pursuant to Section 2,
        the
        Company will keep each Holder advised in writing as to the initiation of
        each
        registration and as to the completion thereof. At its expense, the Company
        will
        use its reasonable best efforts to and as expeditiously as
        possible:

       

      (a)  Keep
        such
        registration effective for a period ending on the earlier of the date which
        is
        one hundred twenty (120) days from the effective date of the registration
        statement or such time as the Holder or Holders have completed the distribution
        described in the registration statement relating thereto; provided,
        however,
        that
        (i) such 120-day period shall be extended for a period of time equal to the
        period the Holder refrains from selling any securities included in such
        registration at the request of an underwriter of Common Stock (or other
        securities) of the Company; and (ii) in the case of any registration of
        Registrable Securities on Form S-3 which are intended to be offered on a
        continuous or delayed basis, subject to compliance with applicable SEC rules,
        such 120-day period shall be extended for up to 90 days, if necessary, to
        keep
        the registration statement effective until all such Registrable Securities
        are
        sold.

       

      (b)  Prepare
        and file with the Commission such amendments and supplements to such
        registration statement and the prospectus used in connection with such
        registration statement as may be necessary to comply with the provisions
        of the
        Securities Act with respect to the disposition of all securities covered
        by such
        registration statement for the period set forth in subsection (a)
        above;

       

      (c)  Furnish
        such number of prospectuses, including any preliminary prospectuses, and
        other
        documents incident thereto, including any amendment of or supplement to the
        prospectus, as a Holder from time to time may reasonably request; 

       

      (d)  Register
        and qualify the securities covered by such registration statement under such
        other securities or Blue Sky laws of such jurisdiction as shall be reasonably
        requested by the Holders; provided,
        that
        the Company shall not be required in connection therewith or as a condition
        thereto to qualify to do business or to file a general consent to service
        of
        process in any such states or jurisdictions. 

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      

       

      (e)  Notify
        each seller of Registrable Securities covered by such registration statement
        at
        any time when a prospectus relating thereto is required to be delivered under
        the Securities Act of the happening of any event as a result of which the
        prospectus included in such registration statement, 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 or incomplete in light of the circumstances then existing, and
        following such notification promptly prepare and furnish to such seller a
        reasonable number of copies of a supplement to or an amendment of such
        prospectus as may be necessary so that, as thereafter delivered to the
        purchasers of such shares, such prospectus shall not 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 not misleading or incomplete
        in light of the circumstances then existing;

       

      (f)  Furnish,
        on the date that such Registrable Securities are delivered to the underwriters
        for sale, if such securities are being sold through underwriters, (i) an
        opinion, dated as of such date, of the counsel representing the Company for
        the
        purposes of such registration, in form and substance as is customarily given
        to
        underwriters in an underwritten public offering, addressed to the underwriters,
        if any, and reasonably satisfactory to a majority in interest of the Holders
        requesting registration of Registrable Securities and (ii) a “comfort”
        letter dated as of such date, from the independent certified public accountants
        of the Company, in form and substance as is customarily given by independent
        certified public accountants to underwriters in an underwritten public offering,
        addressed to the underwriters.

       

      (g)  Provide
        a
        transfer agent and registrar for all Registrable Securities registered pursuant
        to such registration statement and a CUSIP number for all such Registrable
        Securities, in each case not later than the effective date of such
        registration;

       

      (h)  Otherwise
        comply with all applicable rules and regulations of the Commission, and make
        available to its security holders, as soon as reasonably practicable, an
        earnings statement covering the period of at least twelve months, but not
        more
        than eighteen months, beginning with the first month after the effective
        date of
        the Registration Statement, which earnings statement shall satisfy the
        provisions of Section 11(a) of the Securities Act;

       

      (i)  Cause
        all
        such Registrable Securities registered pursuant hereunder to be listed on
        each
        securities exchange on which similar securities issued by the Company are
        then
        listed; and

       

      (j)  In
        connection with any underwritten offering pursuant to a registration statement
        filed pursuant to Section 2.2
        hereof,
        enter into an underwriting agreement in form reasonably necessary to effect
        the
        offer and sale of Common Stock, provided such underwriting agreement contains
        reasonable and customary provisions.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      2.5  Indemnification

       

      (a)  To
        the
        extent permitted by law, the Company will indemnify and hold harmless each
        Holder, each of its officers, directors and partners, legal counsel, and
        accountants and each person controlling such Holder within the meaning of
        Section 15 of the Securities Act, with respect to which registration,
        qualification, or compliance has been effected pursuant to this Section 2,
        and
        each underwriter, if any, and each person who controls within the meaning
        of
        Section 15 of the Securities Act any underwriter, against all expenses,
        claims, losses, damages, and liabilities (or actions, proceedings, or
        settlements in respect thereof) arising out of or based on: (i) any
        untrue
        statement (or alleged untrue statement) of a material fact contained or
        incorporated by reference in any prospectus, offering circular, or other
        document (including any related registration statement, notification, or
        the
        like) incident to any such registration, qualification, or compliance,
        (ii) any omission (or alleged omission) to state therein a material
        fact
        required to be stated therein or necessary to make the statements therein
        not
        misleading, or (iii) any violation (or alleged violation) by the Company
        of
        the Securities Act, any state securities laws or any rule or regulation
        thereunder applicable to the Company and relating to action or inaction required
        of the Company in connection with any offering covered by such registration,
        qualification, or compliance, and the Company will reimburse each such Holder,
        each of its officers, directors, partners, legal counsel, and accountants
        and
        each person controlling such Holder, each such underwriter, and each person
        who
        controls any such underwriter, for any legal and any other expenses reasonably
        incurred in connection with investigating and defending or settling any such
        claim, loss, damage, liability, or action; provided
        that the
        Company will not be liable in any such case to the extent that any such claim,
        loss, damage, liability, or action arises out of or is based on any untrue
        statement or omission based upon written information furnished to the Company
        by
        such Holder, any of such Holder’s officers, directors, partners, legal counsel
        or accountants, any person controlling such Holder, such underwriter or any
        person who controls any such underwriter and stated to be specifically for
        use
        therein; and provided,
        further
        that,
        the indemnity agreement contained in this Section 2.5(a)
        shall
        not apply to amounts paid in settlement of any such loss, claim, damage,
        liability, or action if such settlement is effected without the consent of
        the
        Company (which consent shall not be unreasonably withheld).

       

      (b)  To
        the
        extent permitted by law, each Holder will, if Registrable Securities held
        by
        such Holder are included in the securities as to which such registration,
        qualification, or compliance is being effected, indemnify and hold harmless
        the
        Company, each of its directors, officers, partners, legal counsel, and
        accountants and each underwriter, if any, of the Company’s securities covered by
        such a registration statement, each person who controls the Company or such
        underwriter within the meaning of Section 15 of the Securities Act,
        each
        other such Holder, and each of their officers, directors, and partners, and
        each
        person controlling such Holder, against all claims, losses, damages and
        liabilities (or actions in respect thereof) arising out of or based on:
        (i) any untrue statement (or alleged untrue statement) of a material
        fact
        contained or incorporated by reference in any such registration statement,
        prospectus, offering circular, or other document, or (ii) any omission
        (or
        alleged omission) to state therein a material fact required to be stated
        therein
        or necessary to make the statements therein not misleading, and will reimburse
        the Company and such Holders, directors, officers, partners, legal counsel,
        and
        accountants, persons, underwriters, or control persons for any legal or any
        other expenses reasonably incurred in connection with investigating or defending
        any such claim, loss, damage, liability, or action, in each case to the extent,
        but only to the extent, that such untrue statement (or alleged untrue statement)
        or omission (or alleged omission) is made in such registration statement,
        prospectus, offering circular, or other document in reliance upon and in
        conformity with written information furnished to the Company by such Holder
        and
        stated to be specifically for use therein; provided,
        however,
        that
        the obligations of such Holder hereunder shall not apply to amounts paid
        in
        settlement of any such claims, losses, damages, or liabilities (or actions
        in
        respect thereof) if such settlement is effected without the consent of such
        Holder (which consent shall not be unreasonably withheld); and provided
        that in
        no event shall any indemnity under this Section 2.5
        exceed
        the net proceeds from the offering received by such Holder.

       

      (c)  Each
        party entitled to indemnification under this Section 2.5
        (the
“Indemnified Party”)
        shall
        give notice to the party required to provide indemnification (the “Indemnifying Party”)
        promptly after such Indemnified Party has actual knowledge of any claim as
        to
        which indemnity may be sought, and shall permit the Indemnifying Party to
        assume
        the defense of such claim or any litigation resulting therefrom; provided
        that
        counsel for the Indemnifying Party, who shall conduct the defense of such
        claim
        or any litigation resulting therefrom, shall be approved by the Indemnified
        Party (whose approval shall not be unreasonably withheld), and the Indemnified
        Party may participate in such defense at such party’s expense; and provided further
        that the
        failure of any Indemnified Party to give notice as provided herein shall
        not
        relieve the Indemnifying Party of its obligations under this Section 2.5,
        to the
        extent such failure is not prejudicial. No Indemnifying Party, in the defense
        of
        any such claim or litigation, shall, except with the consent of each Indemnified
        Party, consent to entry of any judgment or enter into any settlement that
        does
        not include as an unconditional term thereof the giving by the claimant or
        plaintiff to such Indemnified Party of a release from all liability in respect
        to such claim or litigation. Each Indemnified Party shall furnish such
        information regarding itself or the claim in question as an Indemnifying
        Party
        may reasonably request in writing and as shall be reasonably required in
        connection with defense of such claim and litigation resulting
        therefrom.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      (d)  If
        the
        indemnification provided for in this Section 2.5
        is held
        by a court of competent jurisdiction to be unavailable to an Indemnified
        Party
        with respect to any loss, liability, claim, damage, or expense referred to
        herein, then the Indemnifying Party, in lieu of indemnifying such Indemnified
        Party hereunder, shall contribute to the amount paid or payable by such
        Indemnified Party as a result of such loss, liability, claim, damage, or
        expense
        in such proportion as is appropriate to reflect the relative fault of the
        Indemnifying Party on the one hand and of the Indemnified Party on the other
        in
        connection with the statements or omissions that resulted in such loss,
        liability, claim, damage, or expense as well as any other relevant equitable
        considerations. The relative fault of the Indemnifying Party and of the
        Indemnified Party shall be determined by reference to, among other things,
        whether the untrue or alleged untrue statement of a material fact or the
        omission to state a material fact relates to information supplied by the
        Indemnifying Party or by the Indemnified Party and the parties’ relative intent,
        knowledge, access to information, and opportunity to correct or prevent such
        statement or omission.

       

      (e)  Notwithstanding
        the foregoing, to the extent that the provisions on indemnification and
        contribution contained in the underwriting agreement entered into in connection
        with the underwritten public offering are in conflict with the foregoing
        provisions, the provisions in the underwriting agreement shall
        control.

       

      2.6  Information
        by Holder.
        Each
        Holder of Registrable Securities shall furnish to the Company such information
        regarding such Holder and the distribution proposed by such Holder as the
        Company may reasonably request in writing and as shall be reasonably required
        in
        connection with any registration, qualification, or compliance referred to
        in
        this Section 2.

       

      2.7  Restrictions
        on Transfer

       

      (a)  The
        holder of each certificate representing Registrable Securities by acceptance
        thereof agrees to comply in all respects with the provisions of this
Section 2.7.
        Each
        Holder agrees not to make any sale, assignment, transfer, pledge or other
        disposition of all or any portion of the Restricted Securities, or any
        beneficial interest therein, unless and until the transferee thereof has
        agreed
        in writing for the benefit of the Company to take and hold such Restricted
        Securities subject to, and to be bound by, the terms and conditions set forth
        in
        this Agreement, including, without limitation, this Section 2.7,
        except
        for transfers permitted under Section 2.8(b):

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      (i)  There
        is
        then in effect a registration statement under the Securities Act covering
        such
        proposed disposition and such disposition is made in accordance with such
        registration statement; or

       

      (ii)  Such
        Holder shall have given prior written notice to the Company of such Holder’s
        intention to make such disposition and shall have furnished the Company with
        a
        detailed description of the manner and circumstances of the proposed
        disposition, and, if requested by the Company, such Holder shall have furnished
        the Company, at its expense, with (i) an opinion of counsel, reasonably
        satisfactory to the Company, to the effect that such disposition will not
        require registration of such Restricted Securities under the Securities Act
        or
        (ii) a “no action” letter from the Commission to the effect that the
        transfer of such securities without registration will not result in a
        recommendation by the staff of the Commission that action be taken with respect
        thereto, whereupon the holder of such Restricted Securities shall be entitled
        to
        transfer such Restricted Securities in accordance with the terms of the notice
        delivered by the Holder to the Company. It is agreed that the Company will
        not
        require opinions of counsel for transactions made pursuant to Rule 144
        except in unusual circumstances.

       

      (b)  Permitted
        transfers include (i) a transfer not involving a change in beneficial
        ownership, or (ii) in transactions involving the distribution without
        consideration of Restricted Securities by any Holder to (x) a parent, subsidiary
        or other affiliate of Holder, or (y) any of its partners, members or other
        equity owners, or retired partners, retired members or other equity owners,
        or
        to the estate of any of its partners, members or other equity owners or retired
        partners, retired members or other equity owners, or (iii) transfers
        in
        compliance with Rule 144(k), as long as the Company is furnished with
        satisfactory evidence of compliance with such Rule; provided,
        in each
        case, that the Holder thereof shall give written notice to the Company of
        such
        Holder’s intention to effect such disposition and shall have furnished the
        Company with a detailed description of the manner and circumstances of the
        proposed disposition.

       

      (c)  Each
        certificate representing Registrable Securities shall (unless otherwise
        permitted by the provisions of this Agreement) be stamped or otherwise imprinted
        with a legend substantially similar to the following (in addition to any
        legend
        required under applicable state securities laws):

       

      THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
        ACT
        OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES.
        THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED
        OR
        HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES
        LAWS PURSUANT TO REGISTRATION OR AN EXEMPTION THEREFROM. THE ISSUER OF THESE
        SECURITIES MAY REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT
        SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES
        WITH
        THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS..

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      

       

      The
        Holders consent to the Company making a notation on its records and giving
        instructions to any transfer agent of the Restricted Securities in order
        to
        implement the restrictions on transfer established in this Section 2.7.

       

      (d)  The
        legend referring to federal and state securities laws identified in Section 2.7(c)
        hereof
        stamped on a certificate evidencing the Restricted Securities and the stock
        transfer instructions and record notations with respect to such Restricted
        Securities shall be removed and the Company shall issue a certificate without
        such legend to the holder of such Restricted Securities if (i) such
        securities are registered under the Securities Act, or (ii) such holder
        provides the Company with an opinion of counsel reasonably acceptable to
        the
        Company to the effect that a public sale or transfer of such securities may
        be
        made without registration under the Securities Act, or (iii) such
        holder
        provides the Company with reasonable assurances, that such securities can
        be
        sold pursuant to Section (k) of Rule 144 under the Securities
        Act.

       

      2.8  Rule 144
        Reporting.
        With a
        view to making available the benefits of certain rules and regulations of
        the
        Commission that may permit the sale of the Restricted Securities to the public
        without registration, the Company agrees to use its reasonable best efforts
        to:

       

      (a)  Make
        and
        keep public information regarding the Company available as those terms are
        understood and defined in Rule 144 under the Securities Act; 

       

      (b)  File
        with
        the Commission in a timely manner all reports and other documents required
        of
        the Company under the Securities Act and the Exchange Act at any time after
        it
        has become subject to such reporting requirements; and

       

      (c)  So
        long
        as a Holder owns any Restricted Securities, furnish to the Holder forthwith
        upon
        written request a written statement by the Company as to its compliance with
        the
        reporting requirements of Rule 144 and of the Securities Act and the
        Exchange Act, a copy of the most recent annual or quarterly report of the
        Company, and such other reports and documents so filed as a Holder may
        reasonably request in availing itself of any rule or regulation of the
        Commission allowing a Holder to sell any such securities without
        registration.

       

      2.9  Delay
        of Registration.
        No
        Holder shall have any right to take any action to restrain, enjoin, or otherwise
        delay any registration as the result of any controversy that might arise
        with
        respect to the interpretation or implementation of this Agreement.

       

      2.10  Transfer
        or Assignment of Registration Rights.
        The
        rights to cause the Company to register securities granted to a Holder by
        the
        Company under this Agreement may be transferred or assigned by a Holder only
        to
        a transferee, assignee or holder of not less than 40,000 shares of Registrable
        Securities (as presently constituted and subject to subsequent adjustments
        for
        stock splits, stock dividends, reverse stock splits, and the like); provided
        that
        (i) such transfer or assignment of Registrable Securities is effected
        in
        accordance with the terms of Section 2.7
        hereof
        and applicable securities laws and (ii) the transferee or assignee
        of such
        rights assumes in writing the obligations of such Holder under this
        Agreement.

       

      2.11  Limitations
        on Subsequent Registration Rights.
        From and
        after the date of this Agreement, the Company shall not, without the prior
        written consent of a the holders holding at least a majority of the Registrable
        Securities, enter into any agreement with any holder or prospective holder
        of
        any securities of the Company giving such holder or prospective holder any
        registration rights the terms of which are pari
        passu
        with or
        senior to the registration rights granted to the Holders
        hereunder.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      2.12  Termination
        of Registration Rights.  The
        right
        of any Holder to request registration or inclusion in any registration pursuant
        to this Agreement shall terminate on the earlier of: (i) the date on which
        all
        shares of Registrable Securities held any Holder that holds less than 1%
        of the
        outstanding capital stock of the Company may immediately be sold under
        Rule 144 during any ninety (90)-day period, or (ii) five (5)
        years
        after the date of this Agreement.

       

      

      Section 3

      Miscellaneous

       

      3.1  Amendment.
        Except
        as expressly provided herein, neither this Agreement nor any term hereof
        may be
        amended, waived, discharged or terminated other than by a written instrument
        referencing this Agreement and signed by (i) the Company and (ii) the Investors
        holding at least a majority of the Registrable Securities then held by the
        Investors. Any such amendment, waiver, discharge or termination effected
        in
        accordance with this paragraph shall be binding upon each Investor.

       

      3.2  Notices.
        All
        notices and other communications required or permitted hereunder shall be
        in
        writing and shall be mailed by registered or certified mail, postage prepaid,
        sent by facsimile or electronic mail or otherwise delivered by hand or by
        messenger addressed:

       

      (a)  if
        to an
        Investor, at the Investor’s address, facsimile number or electronic mail address
        as shown in the Company’s records, as may be updated in accordance with the
        provisions hereof;

       

      (b)  if
        to any
        Holder, at such address, facsimile number or electronic mail address as shown
        in
        the Company’s records, or, until any such holder so furnishes an address,
        facsimile number or electronic mail address to the Company, then to and at
        the
        address of the last holder of such shares for which the Company has contact
        information in its records; or

       

      (c)  if
        to the
        Company, one copy should be sent to Q Comm International, Inc., 510 East
        Technology Avenue, Building C, Orem, Utah 84097; Telephone: (801) 226-4222;
        Facsimile: (801) 222-9555; Attn: Chief Executive Officer, or at such other
        address as the Company shall have furnished to the Investors, with a copy
        to
        Jones Waldo Holbrook McDonough, PC, 170 South Main Street, Suite 1500, Salt
        Lake
        City Utah, 84101; Attn: Ronald S. Poelman.

       

      Each
        such
        notice or other communication shall for all purposes of this Agreement be
        treated as effective or having been given when delivered if delivered
        personally, or, if sent by mail, at the earlier of its receipt or 48 hours
        after
        the same has been deposited in a regularly maintained receptacle for the
        deposit
        of the United States mail, addressed and mailed as aforesaid or, if sent
        by
        facsimile, upon confirmation of facsimile transfer or, if sent by electronic
        mail, upon confirmation of delivery when directed to the electronic mail
        address
        set forth on the Schedule of Investors.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      

       

      3.3  Governing
        Law.
        This
        Agreement shall be governed in all respects by the internal laws of the State
        of
        Utah as applied to agreements entered into among Utah residents to be performed
        entirely within Utah, without regard to principles of conflicts of
        law.

       

      3.4  Successors
        and Assigns.
        This
        Agreement, and any and all rights, duties and obligations hereunder, shall
        not
        be assigned, transferred, delegated or sublicensed by any Investor without
        the
        prior written consent of the Company. Any attempt by an Investor without
        such
        permission to assign, transfer, delegate or sublicense any rights, duties
        or
        obligations that arise under this Agreement shall be void. Subject to the
        foregoing and except as otherwise provided herein, the provisions of this
        Agreement shall inure to the benefit of, and be binding upon, the successors,
        assigns, heirs, executors and administrators of the parties hereto.

       

      3.5  Entire
        Agreement.
        This
        Agreement and the exhibits hereto constitute the full and entire understanding
        and agreement between the parties with regard to the subject hereof and
        supercedes all prior understandings or agreements with regard to the subject
        matter hereof.

       

      3.6  Delays
        or Omissions.
        Except
        as expressly provided herein, no delay or omission to exercise any right,
        power
        or remedy accruing to any party to this Agreement upon any breach or default
        of
        any other party under this Agreement shall impair any such right, power or
        remedy of such non-defaulting party, nor shall it be construed to be a waiver
        of
        any such breach or default, or an acquiescence therein, or of or in any similar
        breach or default thereafter occurring, nor shall any waiver of any single
        breach or default be deemed a waiver of any other breach or default theretofore
        or thereafter occurring. Any waiver, permit, consent or approval of any kind
        or
        character on the part of any party of any breach or default under this
        Agreement, or any waiver on the part of any party of any provisions or
        conditions of this Agreement, must be in writing and shall be effective only
        to
        the extent specifically set forth in such writing. All remedies, either under
        this Agreement or by law or otherwise afforded to any party to this Agreement,
        shall be cumulative and not alternative.

       

      3.7  Severability.
        If any
        provision of this Agreement becomes or is declared by a court of competent
        jurisdiction to be illegal, unenforceable or void, portions of such provision,
        or such provision in its entirety, to the extent necessary, shall be severed
        from this Agreement, and such court will replace such illegal, void or
        unenforceable provision of this Agreement with a valid and enforceable provision
        that will achieve, to the extent possible, the same economic, business and
        other
        purposes of the illegal, void or unenforceable provision. The balance of
        this
        Agreement shall be enforceable in accordance with its terms.

       

      3.8  Titles
        and Subtitles.
        The
        titles and subtitles used in this Agreement are used for convenience only
        and
        are not to be considered in construing or interpreting this Agreement. All
        references in this Agreement to sections, paragraphs and exhibits shall,
        unless
        otherwise provided, refer to sections and paragraphs hereof and exhibits
        attached hereto.

       

      3.9  Counterparts.
        This
        Agreement may be executed in any number of counterparts, each of which shall
        be
        enforceable against the parties that execute such counterparts, and all of
        which
        together shall constitute one instrument.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      3.10  Telecopy
        Execution and Delivery.
        A
        facsimile, telecopy or other reproduction of this Agreement may be executed
        by
        one or more parties hereto and delivered by such party by facsimile or any
        similar electronic transmission device pursuant to which the signature of
        or on
        behalf of such party can be seen. Such execution and delivery shall be
        considered valid, binding and effective for all purposes. At the request
        of any
        party hereto, all parties hereto agree to execute and deliver an original
        of
        this Agreement as well as any facsimile, telecopy or other reproduction
        hereof.

       

      3.11  Jurisdiction;
        Venue.
        With
        respect to any disputes arising out of or related to this Agreement, the
        parties
        consent to the exclusive jurisdiction of, and venue in, the state courts
        in Salt
        Lake County in the State of Utah (or in the event of exclusive federal
        jurisdiction, the courts of the Northern District of Utah).

       

      3.12  Further
        Assurances.
        Each
        party hereto agrees to execute and deliver, by the proper exercise of its
        corporate, limited liability company, partnership or other powers, all such
        other and additional instruments and documents and do all such other acts
        and
        things as may be necessary to more fully effectuate this Agreement.

       

      3.13  Attorneys’
        Fees.
        In the
        event that any suit or action is instituted to enforce any provision in this
        Agreement, the prevailing party in such dispute shall be entitled to recover
        from the losing party all fees, costs and expenses of enforcing any right
        of
        such prevailing party under or with respect to this Agreement, including
        without
        limitation, such reasonable fees and expenses of attorneys and accountants,
        which shall include, without limitation, all fees, costs and expenses of
        appeals.

       

      3.14  Aggregation.
        All
        shares of Common Stock held or acquired by affiliated entities or persons
        of an
        Investor (including but not limited to: (i) a constituent partner
        or a
        retired partner of an Investor that is a partnership; (ii) a parent,
        subsidiary or other affiliate of an Investor that is a corporation;
        (iii) an immediate family member living in the same household, a
        descendant, or a trust therefore, in the case of an Investor who is an
        individual; or (iv) a member of an Investor that is a limited liability
        company) shall be aggregated together for the purpose of determining the
        availability of any rights under this Agreement which are triggered by the
        beneficial ownership of a threshold number of shares of the Company’s capital
        stock.

       

      3.15  Obligation
        of Company.
        The
        Company agrees to use its reasonable best efforts to enforce the terms of
        this
        Agreement, to inform the Investors of any breach hereof (to the extent the
        Company has knowledge thereof) and to assist the Investors in the exercise
        of
        their rights and the performance of their obligations hereunder.

       

      

       

      [Remainder
        of page intentionally left blank.]

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      IN
        WITNESS WHEREOF, the parties hereto have executed this Amended and Registration
        Rights Agreement effective as of the day and year first above
        written.

       

      

        
          	 	
                   

                  Q
                    COMM INTERNATIONAL, INC.

                	 
	 	
                   

                  By:
                    ___________________________________________________

                	 
	 	 	 
	 	
                  Name:
                    Mark Robinson

                	 
	 	 	 
	 	
                  Title:
                    Chief Financial Officer

                	 
	
                   

                  If
                    Investor is an individual:

                	
                   

                  ______________________________________________________

                	 
	 	
                  (Signature)

                	 
	 	______________________________________________________	 
	 	
                  (Name
                    of Investor)

                	 
	 	 	 
	 	 	 
	
                  If
                    Investor is an entity:

                	
                  ______________________________________________________

                	 
	 	
                  (Name
                    of Investor)

                	 
	 	 	 
	 	 	 
	 	
                  By____________________________________________________

                	 
	 	
                     
                    (Signature of Authorized Representative)

                	 
	 	 	 
	 	 	 
	 	
                  
                    ______________________________________________________

                  

                	 
	 	
                  (Name
                    of Authorized Representative)

                	 
	 	 	 
	 	 	 
	 	
                  
                    ______________________________________________________

                  

                	 
	 	
                  (Title
                    of Authorized Representative)

                	 

        

      

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      

      EXHIBIT A

       

      INVESTORS

       

      Pike
        Capital Partners, L.P.

       

      Odyssey
        Value Partners, LP

       

      Talkot
        Crossover Fund, L.P.

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