Document:

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                                                                   EXHIBIT 10.2

                         REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT, dated as of August 14, 2002 between
Crossover Ventures, Inc. ("Purchaser") and Lumenon Innovative Lightwave
Technology, Inc. (the "Company").

     WHEREAS, simultaneously with the execution and delivery of this Agreement,
pursuant to a Common Stock Purchase Agreement dated the date hereof (the
"Purchase Agreement") the Purchaser has committed to purchase up to $14,000,000
of the Company's Common Stock (TERMS NOT DEFINED HEREIN SHALL HAVE THE MEANINGS
ASCRIBED TO THEM IN THE PURCHASE AGREEMENT); and

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

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

     Section 1.  Registrable Securities. As used herein the term "Registrable
Security" means the Securities; provided, however, that any shares of Common
Stock which are Registrable Securities shall cease to be Registrable Securities
(i) when sold pursuant to the Registration Statement, (ii) when sold pursuant to
Rule 144 (or any similar provision then in force) under the Securities Act
("Rule 144"), (iii) upon any sale in any manner to a person or entity which is
not entitled pursuant to Section 9 to rights under this Agreement, or (iv) such
time as, in the opinion of counsel to the Company, such Securities may be sold
without any time, volume or manner limitations pursuant to Rule 144(k) (or any
similar provision then in effect) under the Securities Act. In the event of any
merger, reorganization, consolidation, recapitalization or other change in
corporate structure affecting the Common Stock, such adjustment shall be deemed
to be made in the definition of "Registrable Security" as is appropriate in
order to prevent any dilution or enlargement of the rights granted pursuant to
this Agreement.

     SECTION 2.  Restrictions on Transfer.  The Purchaser acknowledges and
understands that in the absence of an effective Registration Statement
authorizing the resale of the Securities as provided herein, the Securities are
"restricted securities" as defined in Rule 144. The Purchaser understands that
no disposition or transfer of the Securities may be made by Purchaser in the
absence of (i) an opinion of counsel to the Purchaser, in form and substance
reasonably satisfactory to the Company, that such transfer may be made without
registration under the Securities Act or (ii) such registration.

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

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

        (b) to use its best effort to file with the Commission in a timely
     manner all reports and other documents required to be filed by the Company
     pursuant to Section 13 or 15(d) under the Exchange Act; and furnish the
     Purchaser with such other reports and documents of the Company as the
     Purchaser may reasonably request to avail itself of any similar rule or
     regulation of the Commission allowing it to sell any such securities
     without registration.

     SECTION 3.  Registration Rights With Respect to the Securities.

        (a) Subject to the compliance by the Purchaser with Section 3.15 of the
     Purchase Agreement, the Company agrees that it will prepare and file with
     the Securities and Exchange Commission ("Commission"), within sixty (60)
     days after the date hereof, a registration statement (on Form S-1, or other
     appropriate form of registration statement) under the Securities Act (the
     "Registration Statement"), at the sole expense of the Company (except as
     provided in Section 3(c) hereof), in respect of Purchaser, so as to permit
     a public offering and resale of the Securities under the Securities Act by
     Purchaser. Subject to the compliance by the Purchaser with Section 3.15 of
     the Purchase Agreement, the Company shall use its commercially reasonable
     efforts to cause the Registration Statement to become effective within
     one-hundred twenty (120) days of the date hereof or five (5) days of SEC
     clearance and will within said five (5) days request acceleration of
     effectiveness. The Company will notify Purchaser of the effectiveness of
     the Registration Statement within one Trading Day of such event.

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        (b) The Company will maintain the Registration Statement or
     post-effective amendment filed under this Section 3 hereof effective under
     the Securities Act until the earliest of (i) the date that all the
     Registrable Securities have been disposed of pursuant to the Registration
     Statement, (ii) 360 days from the last date Registrable Securities are
     issued, (iii) the date that the Securities may be sold under the provisions
     of Rule 144 without limitation as to volume, (iv) the date all Securities
     have been otherwise transferred to persons who may trade such shares
     without restriction under the Securities Act, and the Company has delivered
     a new certificate or other evidence of ownership for such securities not
     bearing a restrictive legend, or (v) the date all Securities may be sold
     without any time, volume or manner limitations pursuant to Rule 144(k) or
     any similar provision then in effect under the Securities Act (the
     "Effectiveness Period").

        (c) All fees, disbursements and out-of-pocket expenses and costs
     incurred by the Company in connection with the preparation and filing of
     the Registration Statement under subparagraph 3(a) and in complying with
     applicable securities and Blue Sky laws (including, without limitation, all
     attorneys' fees of the Company) shall be borne by the Company. The
     Purchaser shall bear the cost of underwriting and/or brokerage discounts,
     fees and commissions, if any, applicable to the Securities being registered
     and the fees and expenses of its counsel. The Purchaser and its counsel
     shall have a reasonable period, not to exceed three (3) Trading Days, to
     review the proposed Registration Statement or any amendment thereto, prior
     to filing with the Commission, and the Company shall provide the Purchaser
     with copies of any comment letters received from the Commission with
     respect thereto within two (2) Trading Days of receipt thereof. The Company
     shall make reasonably available for inspection by Purchaser, any
     underwriter participating in any disposition pursuant to the Registration
     Statement, and any attorney, accountant or other agent retained by the
     Purchaser or any such underwriter all relevant financial and other records,
     pertinent corporate documents and properties of the Company and its
     subsidiaries, and cause the Company's officers, directors and employees to
     supply all information reasonably requested by the Purchaser or any such
     underwriter, attorney, accountant or agent in connection with the
     Registration Statement; provided, however, that all records, information
     and documents that are designated in writing by the Company as
     confidential, proprietary or containing any material non-public information
     shall be kept confidential by the Purchaser and any such underwriter,
     attorney, accountant or agent (pursuant to an appropriate confidentiality
     agreement in the case of the Purchaser, underwriter, attorney, accountant
     or agent), unless such disclosure is made pursuant to judicial process in a
     court proceeding (after first giving the Company an opportunity promptly to
     seek a protective order or otherwise limit the scope of the information
     sought to be disclosed) or is required by law, or such records, information
     or documents become available to the public through a third party not in
     violation of an accompanying obligation of confidentiality; and provided
     further that, if the foregoing inspection and information gathering would
     otherwise disrupt the Company's conduct of its business, such inspection
     and information gathering shall, to the maximum extent possible, be
     coordinated on behalf of the Purchaser and the other parties entitled
     thereto by one firm of counsel designed by and on behalf of the majority in
     interest of Purchaser and other parties. The Company at its expense will
     supply the Purchaser with such reasonable number of copies of the
     Registration Statement and the final prospectus included therein (the
     "Prospectus") and other related documents as the Purchaser may request in
     order to facilitate the public sale or other disposition of the Registrable
     Securities.

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

        If at any time or from time to time after the effective date of the
     Registration Statement, the Company notifies the Purchaser in writing of
     the existence of a Potential Material Event (as defined in Section 3(e)
     below), the Purchaser shall not offer or sell any Securities or engage in
     any other

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     transaction involving or relating to Securities, from the time of the
     giving of notice with respect to a Potential Material Event until the
     Purchaser has received copies of a supplemented or amended Prospectus or
     until the Purchaser is advised in writing by the Company that the then
     current Prospectus may be used and has received copies of any additional or
     supplemental filings that are incorporated or deemed incorporated by
     reference in such Prospectus (the "Suspension Period"); provided, however,
     that, if a Suspension Period occurs during any periods commencing on a
     Trading Day a Draw Down Notice is deemed delivered and ending ten (10)
     Trading Days following the end of the corresponding Draw Down Pricing
     Period, then the Company must compensate the Purchaser for any net decline
     in the market value of any Securities committed to be purchased by the
     Purchaser through the end of such Suspension Period. Net decline shall be
     calculated as the difference between the highest VWAP during the applicable
     Suspension Period and the VWAP on the Trading Day immediately following a
     properly delivered notice to the Purchaser that such Suspension Period has
     ended. The Company must give Purchaser notice in writing promptly upon
     knowledge that a Suspension Period may occur without indicating the nature
     of such Suspension Period.

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

        (f) If the Company has delivered a Prospectus to the Purchaser and after
     having done so the Prospectus is amended to comply with the requirements of
     the Securities Act, the Company shall promptly notify the Purchaser and, if
     requested, the Purchaser shall immediately cease making offers of
     Registrable Securities. The Company shall promptly provide the Purchaser
     with revised Prospectuses and, following receipt of the revised
     Prospectuses, the Purchaser shall be free to resume making offers of the
     Registrable Securities.

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

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

        (a) As expeditiously as possible prepare and file with the Commission
     such amendments and supplements to the Registration Statement and the
     Prospectus as may be necessary to keep such Registration Statement
     effective until at least the 360th day after the last issuance of Draw Down
     Shares

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     and to comply with the provisions of the Securities Act with respect to the
     sale or other disposition of all securities covered by the Registration
     Statement (including prospectus supplements with respect to the sales of
     securities from time to time in connection with a registration statement
     pursuant to Rule 415 promulgated under the Securities Act);

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

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

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

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

        (f) as promptly as practicable after becoming aware of such event,
     notify the Purchaser (or, in the event of an underwritten offering, the
     managing underwriters) of the issuance by the Commission or any state
     authority of any stop order or other suspension of the effectiveness of the
     Registration Statement and use commercially reasonable efforts to effect
     the withdrawal, rescission or removal of such stop order or other
     suspension; and

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

     SECTION 6.  Indemnification.

        (a) The Company agrees to indemnify and hold harmless the Purchaser and
     each person, if any, who controls the Purchaser within the meaning of the
     Securities Act ("Distributing Purchaser") against any losses, claims,
     damages or liabilities, joint or several (which shall, for all purposes of
     this Agreement, include, but not be limited to, all reasonable costs of
     defense and investigation and all reasonable attorneys' fees), to which the
     Distributing Purchaser may become subject, under the Securities Act or
     otherwise, insofar as such losses, claims, damages or liabilities (or
     actions in respect thereof) arise out of or are based upon any untrue
     statement or alleged untrue statement of any material fact contained in the
     Registration Statement, or any related preliminary prospectus, the
     Prospectus or amendment or supplement thereto, or arise out of or are based
     upon the omission or alleged omission to state therein a material fact
     required to be stated therein or necessary to make the statements therein
     not misleading; provided, however, that the Company will not be liable in
     any such case to the extent that any such loss,

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     claim, damage or liability arises out of or is based upon an untrue
     statement or alleged untrue statement or omission or alleged omission made
     in the Registration Statement, preliminary prospectus, the Prospectus or
     amendment or supplement thereto in reliance upon, and in conformity with,
     written information furnished to the Company by the Distributing Purchaser
     specifically for use in the preparation thereof. This Section 6(a) shall
     not inure to the benefit of any Distributing Purchaser with respect to any
     person asserting such loss, claim, damage or liability who purchased the
     Registrable Securities which are the subject thereof if the Distributing
     Purchaser failed to send or give (in violation of the Securities Act or the
     rules and regulations promulgated thereunder) a copy of the Prospectus to
     such person at or prior to the written confirmation to such person of the
     sale of such Registrable Securities, where the Distributing Purchaser was
     obligated to do so under the Securities Act or the rules and regulations
     promulgated thereunder. This indemnity agreement will be in addition to any
     liability which the Company may otherwise have.

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

        (c) Promptly after receipt by an indemnified party under this Section 6
     of notice of the commencement of any action as to which indemnity may be
     sought under this Section 6, notify the indemnifying party of the
     commencement thereof and shall permit the indemnifying party to assume the
     defense of any claim or any litigation resulting therefrom; provided, that
     counsel for the indemnifying party, who shall conduct the defense of such
     claim or litigation, shall be approved by the indemnified party (whose
     approval shall not be unreasonably withheld, conditioned or delayed); but
     the failure to notify the indemnifying party will not relieve the
     indemnifying party from any obligations which it may have to any
     indemnified party except to the extent of actual prejudice demonstrated by
     the indemnifying party. After notice from the indemnifying party to such
     indemnified party of its election so to assume the defense thereof, the
     indemnifying party will not be liable to such indemnified party under this
     Section 6 for any legal or other expenses subsequently incurred by such
     indemnified party in connection with the defense thereof other than
     reasonable costs of investigation, unless the indemnifying party shall not
     pursue the action to its final conclusion. The indemnified party shall have
     the right, at such party's own expense, to employ separate counsel in any
     such action and to participate in the defense thereof; provided that the
     indemnifying party shall pay such expense if: (i) the employment of such
     counsel has been specifically authorized in writing by the indemnifying
     party, or (ii) the named parties to any such action (including any
     impleaded parties) include both the indemnified party and the indemnifying
     party and the Indemnified Party reasonably concludes that representation of
     such Indemnified Party by the counsel retained by the Indemnifying Party
     would be inappropriate due to actual or potential differing interests
     between the Indemnified Party and any other party represented by such
     counsel in such proceeding; provided further that in no event shall the
     indemnifying party be required to pay the expenses of more than one law
     firm per jurisdiction as counsel for the indemnified party. No indemnifying
     party, in
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     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 which 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 of such claim or litigation, and no
     indemnified party shall consent to entry of any judgment or settle such
     claim or litigation without the prior written consent of the indemnifying
     party, which consent shall not be unreasonably withheld, conditioned or
     delayed.

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

     SECTION 7.  Contribution.  In order to provide for just and equitable
contribution under the Securities Act in any case in which (i) the indemnified
party makes a claim for indemnification pursuant to Section 6 hereof but is
judicially determined (by the entry of a final judgment or decree by a court of
competent jurisdiction and the expiration of time to appeal or the denial of the
last right of appeal) that such indemnification may not be enforced in such case
notwithstanding the fact that the express provisions of Section 6 hereof provide
for indemnification in such case, or (ii) contribution under the Securities Act
may be required on the part of any indemnified party, then the Company and the
Purchaser shall contribute to the aggregate losses, claims, damages or
liabilities to which they may be subject (which shall, for all purposes of this
Agreement, include, but not be limited to, all reasonable costs of defense and
investigation and all reasonable attorneys' fees), in either such case (after
contribution from others) on the basis of relative fault as well as any other
relevant equitable considerations. The relative fault shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company on the one hand or the applicable
Distributing Purchaser on the other hand, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and the Purchaser agree that it would not be
just and equitable if contribution pursuant to this Section 7 were determined by
pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to in this Section 7. The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to above
in this Section 7 shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any such action or claim. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. Any party entitled to contribution will, promptly
after receipt of notice of commencement of any action, suit or proceeding
against such party in respect of which a claim for contribution may be made
against another party or parties under this Section 7, notify such party or
parties from whom contribution may be sought, but the omission so to notify such
party or parties from whom contribution may be sought shall not relieve such
party from any other obligation it or they may have thereunder or otherwise
under this Section 7. No party shall be liable for contribution with respect to
any action, suit, proceeding or claim settled without its prior written consent,
which consent shall not be unreasonably withheld, conditioned or delayed.

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

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

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

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

     SECTION 11.  Remedies and Severability.  The remedies provided in this
Agreement are cumulative and not exclusive of any remedies provided by law. If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction to be invalid, illegal, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their best efforts to
find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms, provisions, covenants
and restrictions without including any of those that may be hereafter declared
invalid, illegal, void or unenforceable.

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

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

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

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

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                 [REGISTRATION RIGHTS AGREEMENT SIGNATURE PAGE]

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

                                      LUMENON INNOVATIVE LIGHTWAVE TECHNOLOGY,
                                      INC.

                                      By:       /s/ GARY S. MOSKOVITZ
                                         ---------------------------------------
                                         Gary S. Moskovitz, President and CEO

                                      CROSSOVER VENTURES, INC.

                                      By:  Navigator Management Limited, its
                                      director

                                      By:           /s/ DAVID SIMS
                                         ---------------------------------------
                                         Name: David Sims
                                         Title:   Director

                                       8<PAGE>
                                                                    EXHIBIT 10.3

NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")
OR ANY OTHER APPLICABLE SECURITIES LAWS. THIS WARRANT HAS BEEN ISSUED IN
RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND SUCH OTHER SECURITIES LAWS. NEITHER THIS WARRANT NOR THE SHARES ISSUABLE
UPON EXERCISE HEREOF MAY BE SOLD, PLEDGED, TRANSFERRED, ENCUMBERED OR OTHERWISE
DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE
PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE STATE LAWS.

                             STOCK PURCHASE WARRANT

                  To Purchase 140,000 Shares of Common Stock of

                  LUMENON INNOVATIVE LIGHTWAVE TECHNOLOGY, INC.

         THIS CERTIFIES that, for value received, Crossover Ventures, Inc. (the
"Holder"), is entitled, upon the terms and subject to the limitations on
exercise and the conditions hereinafter set forth, at any time on or after
February 14, 2003 (the "Initial Exercise Date") and on or prior to the close of
business on February 14, 2006 (the "Termination Date") but not thereafter, to
subscribe for and purchase from Lumenon Innovative Lightwave Technology, Inc., a
corporation incorporated in the State of Delaware (the "Company"), up to 140,000
shares (the "Warrant Shares") of Common Stock, $.001 par value per share, of the
Company (the "Common Stock"). The purchase price of one share of Common Stock
(the "Exercise Price") under this Warrant shall be $0.21. The Exercise Price and
the number of Warrant Shares for which the Warrant is exercisable shall be
subject to adjustment as provided herein. In the event of any conflict between
the terms of this Warrant and the Common Stock Purchase Agreement dated as of
August 14, 2002 pursuant to which this Warrant has been issued (the "Purchase
Agreement"), the Purchase Agreement shall control. CAPITALIZED TERMS USED AND
NOT OTHERWISE DEFINED HEREIN SHALL HAVE THE MEANINGS SET FORTH FOR SUCH TERMS IN
THE PURCHASE AGREEMENT.

                                       1
<PAGE>

         1. TITLE TO WARRANT. Subject to the provisions of Section 7 hereof,
prior to the Termination Date and subject to compliance with applicable laws,
this Warrant and all rights hereunder are transferable, in whole or in part, at
the office or agency of the Company by the Holder in person or by duly
authorized attorney, upon surrender of this Warrant together with the Assignment
Form annexed hereto properly endorsed.

         2. AUTHORIZATION OF SHARES. The Company will at all times reserve and
keep available, solely for issuance and delivery upon exercise of this Warrant,
such number of Warrant Shares and other securities, cash and/or property, as
from time to time may be issuable upon the exercise of this Warrant.

         3. EXERCISE OF WARRANT.

                  (a) Except as provided in Section 4 herein, exercise of the
         purchase rights represented by this Warrant by the registered Holder
         may be made at any time or times on or after the Initial Exercise Date
         and on or before the close of business on the Termination Date by the
         surrender of this Warrant and the Notice of Exercise Form annexed
         hereto duly executed by the registered Holder, at the office of the
         Company (or such other office or agency of the Company as it may
         designate by notice in writing to the registered Holder at the address
         of such Holder appearing on the books of the Company) and upon payment
         in full of the Exercise Price of the shares thereby purchased by wire
         transfer or cashier's check drawn on a United States bank, or by means
         of a cashless exercise, the Holder shall be entitled to receive a
         certificate for the number of Warrant Shares so purchased. Certificates
         for shares purchased hereunder shall be delivered to the Holder within
         five (5) Trading Days after the date on which this Warrant shall have
         been exercised as aforesaid. This Warrant shall be deemed to have been
         exercised and such certificate or certificates shall be deemed to have
         been issued, and Holder or any other person so designated to be named
         therein shall be deemed to have become a holder of record of such
         Warrant Shares for all purposes, as of the date the Warrant has been
         exercised in accordance with this subsection 3(a) to the Company of the
         Exercise Price and all taxes required to be paid by the Holder, if any,
         pursuant to Section 5 prior to the issuance of such shares, have been
         paid. If the Company fails to deliver to the Holder a certificate or
         certificates representing the Warrant Shares pursuant to this Section
         3(a) by the fifth Trading Day after the date of exercise, then the
         Holder will have the right to rescind such exercise. In addition to any
         other rights available to the Holder, if the Company fails to deliver
         to the Holder a certificate or certificates representing the Warrant
         Shares pursuant to an exercise by the eighth Trading Day after the date
         of exercise, and if after such eighth Trading Day the Holder purchases
         (in an open market transaction or otherwise) shares of Common Stock to
         deliver in satisfaction of a sale by the Holder of the Warrant Shares
         which the Holder anticipated receiving upon such exercise (a "Buy-In"),
         then the Company shall (1) pay in cash to the Holder the amount by
         which (x) the Holder's total purchase price (including brokerage
         commissions, if any) for the shares of Common Stock so purchased
         exceeds (y) the amount obtained by multiplying (A) the number of
         Warrant Shares that the Company was required to deliver to the Holder
         in connection with the exercise at issue times (B) the

                                       2

<PAGE>

         closing bid price of the Common Stock at the time of the obligation
         giving rise to such purchase obligation, and (2) at the option of
         the Holder, either reinstate the portion of the Warrant and
         equivalent number of Warrant Shares for which such exercise was not
         honored or deliver to the Holder the number of shares of Common Stock
         that would have been issued had the Company timely complied with its
         exercise and delivery obligations hereunder. For example, if the Holder
         purchases Common Stock having a total purchase price of $11,000 to
         cover a Buy-In with respect to an attempted exercise of shares of
         Common Stock with a market price on the date of exercise totaled
         $10,000, under clause (1) of the immediately preceding sentence the
         Company shall be required to pay the Holder $1,000. The Holder shall
         provide the Company written notice indicating the amounts payable to
         the Holder in respect of the Buy-In. Nothing herein shall limit a
         Holder's right to pursue any other remedies available to it hereunder,
         at law or in equity including, without limitation, a decree of specific
         performance and/or injunctive relief with respect to the Company's
         failure to timely deliver certificates representing shares of Common
         Stock upon exercise of the Warrant as required pursuant to the terms
         hereof.

                  (b) If this Warrant shall have been exercised in part, the
         Company shall, at the time of delivery of the certificate or
         certificates representing Warrant Shares, deliver to Holder a new
         Warrant evidencing the rights of Holder to purchase the unpurchased
         Warrant Shares called for by this Warrant, which new Warrant shall in
         all other respects be identical with this Warrant.

                  (c) This Warrant shall also be exercisable by means of a
         "cashless exercise" in which the Holder shall be entitled to receive a
         certificate for the number of Warrant Shares equal to the quotient
         obtained by dividing [(A-B) (X)] by (A), where:

                  (A) = the VWAP on the Trading Day preceding the date of such
                  election;

                  (B) = the Exercise Price of this Warrant; and

                  (X) = the number of Warrant Shares issuable upon exercise of
                  this Warrant in accordance with the terms of this Warrant
                  and the Notice of Exercise.

                  (d) Notwithstanding anything herein to the contrary, in no
         event shall the Holder be permitted to exercise this Warrant for
         Warrant Shares to the extent that (i) the number of shares of Common
         Stock owned by such Holder (other than Warrant Shares issuable upon
         exercise of this Warrant) plus (ii) the number of Warrant Shares
         issuable upon such exercise would be equal to or exceed 9.999% of the
         number of shares of Common Stock then issued and outstanding, including
         shares issuable upon such exercise of this Warrant. As used herein,
         beneficial ownership shall be determined in accordance with Section
         13(d) of the Exchange Act. With respect to the limitation contained in
         this Section 3(d), the determination of whether this Warrant is
         exercisable (in relation to other securities owned by the Holder) and
         of which portion of this Warrant is exercisable shall be in the sole
         discretion of such Holder, and the submission of a Notice of Exercise
         shall be deemed to be such Holder's determination of whether, and shall
         constitute a representation and warranty by the Holder to the effect
         that, this Warrant is exercisable

                                       3
<PAGE>

         (in relation to other securities owned by such Holder) and of which
         portion of this Warrant is exercisable, in each case subject to
         such aggregate percentage limitation, and the Company shall have no
         obligation to verify or confirm the accuracy of such determination (but
         shall be entitled to do so, in its sole discretion). Nothing contained
         herein shall be deemed to restrict the right of a Holder to exercise
         this Warrant into Warrant Shares at such time as such exercise will not
         violate the provisions of this Section 3(d). The provisions of this
         Section 3(d) may be waived by the Holder upon, at the election of the
         Holder, with not less than 61 days' prior notice to the Company, and
         the provisions of this Section 3(d) shall continue to apply until such
         61st day (or such later date as may be specified in such notice of
         waiver). No exercise of this Warrant in violation of this Section 3(d)
         but otherwise in accordance with this Warrant shall affect the status
         of the Warrant Shares as validly issued, fully-paid and nonassessable.

                           (e) In no event may the Purchaser exercise this
         Warrant in whole or in part unless the Purchaser is an "accredited
         investor" as defined in Regulation D promulgated under the Securities
         Act.

         4. NO FRACTIONAL SHARES OR SCRIP. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. As to any fraction of a share which Holder would otherwise be entitled
to purchase upon such exercise, the Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to such fraction multiplied by
the VWAP on the date of such exercise.

         5. CHARGES, TAXES AND EXPENSES. Issuance of certificates for Warrant
Shares shall be made without charge by the Company to the Holder for any issue
or other incidental expense in respect of the issuance of such certificate, all
of which taxes and expenses shall be paid by the Company, and such certificates
shall be issued in the name of the Holder or in such name or names as may be
directed by the Holder; PROVIDED, HOWEVER, that in the event certificates for
Warrant Shares are to be issued in a name other than the name of the Holder,
such issuance shall be subject to compliance by the Holder with subsection 7(a)
and this Warrant when surrendered for exercise shall be accompanied by the
Assignment Form attached hereto duly executed by the Holder; and the Company may
require, as a condition thereto, the payment of a sum sufficient to reimburse it
for any transfer tax incidental thereto.

         6. CLOSING OF BOOKS. The Company will not close its stockholder books
or records in any manner which prevents the timely exercise of this Warrant.

         7. TRANSFER, DIVISION AND COMBINATION.

                  (a) This Warrant and the Warrant Shares shall not be sold or
         transferred unless either (i) they first shall have been registered
         under the Securities Act, or (ii) the Company first shall have been
         furnished with an opinion of legal counsel, reasonably satisfactory to
         the Company, to the effect that such sale or transfer is exempt from
         the registration requirements of the Securities Act. Notwithstanding
         the foregoing, no registration or opinion of counsel shall be required
         for (i) a transfer by a Holder which is an entity to a wholly owned
         subsidiary of such entity, a transfer by a Holder which is a
         partnership to a partner of such partnership or a retired partner of
         such partnership or to

                                       4
<PAGE>

         the estate of any such partner or retired partner, or a transfer
         by a Holder which is a limited liability company to a member of
         such limited liability company or a retired member or to the estate
         of any such member or retired member, provided that the transferee in
         each case agrees in writing to be subject to the terms of this Section
         7, or (ii) a transfer made in accordance with Rule 144 under the
         Securities Act.

                  (b) Each certificate representing Warrant Shares shall bear a
         legend substantially in the following form:

                  "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
                  MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
                  HYPOTHECATED UNLESS AND UNTIL SUCH SECURITIES ARE REGISTERED
                  UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE
                  COMPANY IS OBTAINED TO THE EFFECT THAT SUCH REGISTRATION IS
                  NOT REQUIRED"

                  (c) Subject to compliance with any applicable securities laws,
         and subsection 7(a), transfer of this Warrant and all rights hereunder,
         in whole or in part, shall be registered on the books of the Company to
         be maintained for such purpose, upon surrender of this Warrant at the
         principal office of the Company, together with a written assignment of
         this Warrant substantially in the form attached hereto duly executed by
         the Holder or its agent or attorney and funds sufficient to pay any
         transfer taxes payable upon the making of such transfer. Upon such
         surrender and, if required, such payment, the Company shall execute and
         deliver a new Warrant or Warrants in the name of the assignee or
         assignees and in the denomination or denominations specified in such
         instrument of assignment, and shall issue to the assignor a new Warrant
         evidencing the portion of this Warrant not so assigned, and this
         Warrant shall promptly be cancelled. A Warrant, if properly assigned,
         may be exercised by a new holder for the purchase of Warrant Shares
         without having a new Warrant issued.

                  (d) Subject to compliance with subsections 7(a) and 7(c), this
         Warrant may be divided or combined with other Warrants upon
         presentation hereof at the principal office of the Company, together
         with a written notice specifying the names and denominations in which
         new Warrants are to be issued, signed by the Holder or its agent or
         attorney. Subject to compliance with Section 7(a) and Subsection 7(c),
         as to any transfer which may be involved in such division or
         combination, the Company shall execute and deliver a new Warrant or
         Warrants in exchange for the Warrant or Warrants to be divided or
         combined in accordance with such notice.

                  (e) The Company shall prepare, issue and deliver at its own
         expense (other than transfer taxes) the new Warrant or Warrants under
         this Section 7.

                  (f) The Company agrees to maintain, at its principal office,
         books for the registration and the registration of transfer of the
         Warrants.

                                       5
<PAGE>

          8. NO RIGHTS AS SHAREHOLDER UNTIL EXERCISE. This Warrant does not
entitle the Holder to any voting rights or other rights as a shareholder of the
Company prior to the exercise hereof. Upon the exercise of the Warrant in
accordance with Subsection 3(a), the Warrant Shares so purchased shall be deemed
to be issued to such Holder as the record owner of such shares as of the close
of business on the date of such exercise.

         9. LOSS, THEFT, DESTRUCTION OR MUTILATION OF WARRANT. The Company
covenants that upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant, and in case
of loss, theft or destruction, of indemnity or security reasonably satisfactory
to it (which shall not include the posting of any bond), and upon surrender and
cancellation of such Warrant, if mutilated, the Company will make and deliver a
new Warrant of like tenor in lieu of such Warrant.

         10. SATURDAYS, SUNDAYS, HOLIDAYS, ETC. If the last or appointed day for
the taking of any action or the expiration of any right required or granted
herein shall be a Saturday, Sunday or a legal holiday, then such action may be
taken or such right may be exercised on the next succeeding day not a Saturday,
Sunday or legal, national holiday in the United States or Canada.

         11. ADJUSTMENTS OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES.

                  (a) STOCK SPLITS, ETC. The number and kind of securities
         purchasable upon the exercise of this Warrant and the Exercise Price
         shall be subject to adjustment from time to time upon the happening of
         any of the following. In case the Company shall (i) pay a dividend in
         shares of Common Stock or make a distribution in shares of Common Stock
         to holders of its outstanding Common Stock, (ii) subdivide its
         outstanding shares of Common Stock into a greater number of shares,
         (iii) combine its outstanding shares of Common Stock into a smaller
         number of shares of Common Stock, or (iv) issue any shares of its
         capital stock in a reclassification of the Common Stock, then the
         number of Warrant Shares purchasable upon exercise of this Warrant
         immediately prior thereto shall be adjusted so that the Holder shall be
         entitled to receive the kind and number of Warrant Shares or other
         securities of the Company which it would have owned or have been
         entitled to receive had such Warrant been exercised in advance thereof.
         Upon each such adjustment of the kind and number of Warrant Shares or
         other securities of the Company which are purchasable hereunder, the
         Exercise Price shall be adjusted by multiplying the Exercise Price in
         effect immediately prior to such adjustment by the number of Warrant
         Shares purchasable pursuant hereto immediately prior to such adjustment
         and dividing such product by the number of Warrant Shares purchasable
         pursuant hereto immediately following such adjustment. An adjustment
         made pursuant to this paragraph shall become effective at the close of
         business on the date such event becomes effective.

                  (b) ANTI-DILUTION PROVISIONS. During the Exercise Period, the
         Exercise Price and the number of Warrant Shares issuable hereunder and
         for which this Warrant is then exercisable shall be subject to
         adjustment from time to time as provided in this Section 11(b). In the
         event that any adjustment of the Exercise Price as required herein
         results in a fraction of a cent, such Exercise Price shall be rounded
         to the nearest cent.

                                       6
<PAGE>

                  (i) ADJUSTMENT OF EXERCISE PRICE. If and whenever the Company
         issues or sells, or is deemed to have issued or sold, any shares of
         Common Stock for consideration per share (as calculated in subsection
         11(b)(ii)(E)) less than the Exercise Price (the "Base Share Price") or
         for no consideration (collectively, a "Dilutive Issuance"), then
         effective immediately upon the Dilutive Issuance, the Exercise Price
         will be reduced so that the Exercise Price will equal the Exercise
         Price in effect immediately prior to the Dilutive Issuance multiplied
         by a fraction, of which the denominator shall be the number of shares
         of the Common Stock (excluding treasury shares, if any) outstanding on
         the date of the Dilutive Issuance plus the number of shares of (A)
         Common Stock or (B) Common Stock Equivalents as described in
         subsections 11(b)(ii)(A) and (B)) offered in such Dilutive Issuance,
         and of which the numerator shall be the number of shares of the Common
         Stock (excluding treasury shares, if any) outstanding on the date of
         the Dilutive Issuance plus the number of shares which the aggregate
         consideration received or to be received for the total number of shares
         of Common Stock or Common Stock Equivalents so offered would purchase
         at the Exercise Price in effect immediately prior to the Dilutive
         Issuance.

                  (ii) EFFECT ON EXERCISE PRICE OF CERTAIN EVENTS. For purposes
         of determining the adjusted Exercise Price under Section 11(b), hereof,
         the following will be applicable:

                            (A) ISSUANCE OF RIGHTS OR OPTIONS. If the Company in
                  any manner issues or grants any warrants, rights or options,
                  whether or not immediately exercisable, to subscribe for or to
                  purchase Common Stock or other securities exercisable,
                  convertible into or exchangeable for Common Stock
                  ("Convertible Securities") (such warrants, rights and options
                  to purchase Common Stock or Convertible Securities are
                  hereinafter referred to as "Options") and the consideration
                  per share (as calculated in subsection 11(b)(ii)(E)) for which
                  Common Stock is issuable upon the exercise of such Options is
                  less than the Exercise Price ("Below Base Price Options"),
                  then the maximum total number of shares of Common Stock
                  issuable upon the exercise of all such Below Base Price
                  Options (assuming full exercise, conversion or exchange of
                  Convertible Securities, if applicable) will, as of the date of
                  the issuance or grant of such Below Base Price Options, be
                  deemed to Common Stock Equivalents.

                            (B) ISSUANCE OF CONVERTIBLE SECURITIES. If the
                  Company in any manner issues or sells any Convertible
                  Securities, whether or not immediately convertible (other than
                  where the same are issuable upon the exercise of Options) and
                  the consideration per share (as calculated in subsection
                  11(b)(ii)(E) for which Common Stock is issuable upon such
                  exercise, conversion or exchange is less than the Exercise
                  Price, then the maximum total number of shares of Common Stock
                  issuable upon the exercise, conversion or exchange of all such
                  Convertible Securities will, as

                                       7
<PAGE>

                  of the date of the issuance of such Convertible Securities,
                  be deemed to be Common Stock Equivalents.

                            (C) CHANGE IN OPTION PRICE OR CONVERSION RATE. If
                  there is a change at any time in (i) the amount of additional
                  consideration payable to the Company upon the exercise of any
                  Options; (ii) the amount of additional consideration, if any,
                  payable to the Company upon the exercise, conversion or
                  exchange of any Convertible Securities; or (iii) the rate at
                  which any Convertible Securities are convertible into or
                  exchangeable for Common Stock (in each such case, other than
                  under or by reason of provisions designed to protect against
                  dilution), the Exercise Price in effect at the time of such
                  change will be readjusted to the Exercise Price which would
                  have been obtained had such revised terms been in effect at
                  the time such Options or Convertible Securities were initially
                  granted, issued or sold.

                            (D) TREATMENT OF EXPIRED OPTIONS AND UNEXERCISED
                  CONVERTIBLE SECURITIES. If any unexercised Option or
                  unconverted or un-exchanged (as applicable) Convertible
                  Security shall have expired or terminated, the Exercise Price
                  then in effect will be readjusted to the Exercise Price which
                  would have been in effect at the time of such expiration or
                  termination had such Option or Convertible Security never been
                  issued.

                            (E) CALCULATION OF CONSIDERATION RECEIVED. If any
                  Common Stock, Options or Convertible Securities are issued,
                  granted or sold for cash, the consideration received therefor
                  for purposes of this Warrant will be the amount received by
                  the Company therefor, before deduction of reasonable
                  commissions, underwriting discounts or allowances or other
                  reasonable expenses paid or incurred by the Company in
                  connection with such issuance, grant or sale. In case any
                  Common Stock, Options or Convertible Securities are issued or
                  sold for a consideration part or all of which shall be other
                  than cash, the amount of the consideration other than cash
                  received by the Company will be the fair market value of such
                  consideration, as determined in good faith by the Board of
                  Directors. The consideration per share received by the Company
                  for Common Stock Equivalents deemed to have been issued
                  pursuant to subsections 11(b)(ii)(A) and 11(b)(ii)(B),
                  relating to Options and Convertible Securities, shall be
                  determined by dividing:

                                   (I) the total amount, if any, received or
                            receivable by the Company as consideration for the
                            issue of such Options or Convertible Securities,
                            plus the minimum aggregate amount of additional
                            consideration (as set forth in the instruments
                            relating thereto, without regard to any provision
                            contained therein for a subsequent adjustment of
                            such consideration) payable to the

                                       8
<PAGE>

                            Company upon the exercise of such Options or the
                            conversion or exchange of such Convertible
                            Securities, or in the case of Options for
                            Convertible Securities, the exercise of such Options
                            for Convertible Securities and the conversion or
                            exchange of such Convertible Securities, by

                                   (II) the maximum number of shares of Common
                            Stock (as set forth in the instruments relating
                            thereto, without regard to any provision contained
                            therein for a subsequent adjustment of such
                            consideration) issuable upon the exercise of such
                            Options or the conversion or exchange of such
                            Convertible Securities.

                            (F) EXCEPTIONS TO ADJUSTMENT OF EXERCISE PRICE. No
                  adjustment to the Exercise Price will be made (i) upon the
                  exercise of this Warrant or any other warrant of this series
                  or the issuance of any Common Stock pursuant to the Purchase
                  Agreement; (ii) upon the exercise of or conversion of any
                  Convertible Securities, Options or warrants issued and
                  outstanding on the initial issuance date of this Warrant;
                  (iii) upon the grant or exercise of any Convertible Securities
                  or Options which may hereafter be granted or exercised under
                  any employee benefit plan of the Company now existing or to be
                  implemented in the future, so long as the issuance of such
                  Convertible Securities or Options is approved by a majority of
                  the non-employee members of the Board of Directors of the
                  Company or a majority of the members of a committee of
                  non-employee directors established for such purpose; (iv) upon
                  the issuance of Common Stock or Convertible Securities in any
                  transaction of the nature contemplated by Rule 145,
                  promulgated under the Securities Act; (v) by reason of a
                  dividend, stock split, subdivision, combination or other event
                  that is covered by subsection 11(a); (vi) in connection with
                  any strategic partnership or joint venture or acquisition or
                  key consulting agreements (the primary purpose of which is not
                  to raise equity capital for the Company); or (vii) upon
                  issuance of warrants to or exercise thereof by Rodman and
                  Renshaw, Inc., in its capacity as placement agent for the
                  Company in connection with the transactions contemplated by
                  the Purchase Agreement. No adjustment to the Exercise Price
                  shall be made as a result of the issuance of shares of Common
                  Stock or Common Stock Equivalents if the consideration per
                  share (calculated pursuant to subsection 11(b)(ii)(E)) for
                  such shares of Common Stock or Common Stock Equivalents issued
                  or deemed to be issued by the Company is equal to or greater
                  than the Exercise Price in effect immediately prior to the
                  issuance or deemed issuance of such shares of Common Stock or
                  Common Stock Equivalents. No adjustment to the Exercise Price
                  will be made upon the actual issuance of Common Stock upon
                  exercise, conversion or exchange of Options or Convertible
                  Securities.

                                       9
<PAGE>

                           (iii) MINIMUM ADJUSTMENT OF EXERCISE PRICE. No
                  adjustment of the Exercise Price shall be made in an amount of
                  less than 1% of the Exercise Price in effect at the time such
                  adjustment is otherwise required to be made, but any such
                  lesser adjustment shall be carried forward and shall be made
                  at the time and together with the next subsequent adjustment
                  which, together with any adjustments so carried forward, shall
                  amount to not less than 1% of such Exercise Price.

                  (c) VOLUNTARY ADJUSTMENT BY THE COMPANY. The Company may at
         any time during the term of this Warrant reduce the then current
         Exercise Price to any amount and for any period of time deemed
         appropriate by the Board of Directors of the Company.

                  (d) NOTICE OF ADJUSTMENT. Whenever the number of Warrant
         Shares or number or kind of securities or other property purchasable
         upon the exercise of this Warrant or the Exercise Price is adjusted, as
         herein provided, the Company shall promptly mail by registered or
         certified mail, return receipt requested, to the Holder notice of such
         adjustment or adjustments setting forth the number of Warrant Shares
         (and other securities or property) purchasable upon the exercise of
         this Warrant and the Exercise Price of such Warrant Shares (and other
         securities or property) after such adjustment, setting forth a brief
         statement of the facts requiring such adjustment and setting forth the
         computation by which such adjustment was made. Such notice, in the
         absence of manifest error, shall be conclusive evidence of the
         correctness of such adjustment.

         12. REORGANIZATION, RECLASSIFICATION, MERGER, CONSOLIDATION OR
DISPOSITION OF ASSETS. In case the Company shall reorganize its capital,
reclassify its capital stock, consolidate or merge with or into another
corporation (where the Company is not the surviving corporation or where there
is a change in or distribution with respect to the Common Stock of the Company),
or sell, transfer or otherwise dispose of all or substantially all its property,
assets or business to another corporation and, pursuant to the terms of such
reorganization, reclassification, merger, consolidation or disposition of
assets, shares of common stock of the successor or acquiring corporation, or any
cash, shares of stock or other securities or property of any nature whatsoever
(including warrants or other subscription or purchase rights) in addition to or
in lieu of common stock of the successor or acquiring corporation ("Other
Property"), are to be received by or distributed to the holders of Common Stock
of the Company, then the Holder shall have the right thereafter to elect to
receive, (i) upon exercise of this Warrant at the Exercise Price written herein
and consummation of the applicable event, the number of shares of common stock
of the successor or acquiring corporation or of the Company, if it is the
surviving corporation, and Other Property receivable upon or as if this Warrant
had been exercised as a result of such reorganization, reclassification, merger,
consolidation or disposition of assets immediately prior to such event, or (ii)
cash equal to the value of this Warrant as determined in accordance with the
Black-Scholes option pricing formula. For purposes of this Section 12, "common
stock of the successor or acquiring corporation" shall include stock of such
corporation of any class which is not preferred as to dividends or assets over
any other class of stock of such corporation and which is not subject to
redemption and shall also include any evidences of indebtedness, shares of stock
or other securities which are convertible into or exchangeable for any such
stock, either immediately or upon the arrival of a specified date or the
happening of a specified event and any

                                       10
<PAGE>

warrants or other rights to subscribe for or purchase any such stock. The
foregoing provisions of this Section 12 shall similarly apply to successive
reorganizations, reclassifications, mergers, consolidations or disposition of
assets, as described herein.

         13. NOTICE OF CORPORATE ACTION.  If at any time:

               (a) the Company shall take a record of the holders of its Common
         Stock for the purpose of entitling them to receive a dividend or other
         distribution, or any right to subscribe for or purchase any evidences
         of its indebtedness, any shares of stock of any class or any other
         securities or property, or to receive any other right,

               (b) there shall be any capital reorganization of the Company, any
         reclassification or recapitalization of the capital stock of the
         Company or any consolidation or merger of the Company (other than a
         consolidation or merger in which the Company is the surviving entity
         and its Common Stock is not converted into or exchanged for any other
         securities or property) with, or any sale, transfer or other
         disposition of all or substantially all the property, assets or
         business of the Company to, another corporation, or

               (c) there shall be a voluntary or involuntary dissolution,
         liquidation or winding up of the Company;

then, in any one or more of such cases, the Company shall give to Holder, if
lawful and practicable to do so, (i) at least 10 days' prior written notice of
the date on which a record date shall be selected for such dividend,
distribution or right or for determining rights to vote in respect of any such
reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, liquidation or winding up, and (ii) in the case of any such
reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, dissolution, liquidation or winding up, at least 10 days' prior
written notice of the date when the same shall take place. Such notice in
accordance with the foregoing clause also shall specify (i) the date on which
any such record is to be taken for the purpose of such dividend, distribution or
right, the date on which the holders of Common Stock shall be entitled to any
such dividend, distribution or right, and the amount and character thereof, and
(ii) the date on which any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up is to take place and the time, if any such time is to be fixed, as of which
the holders of Common Stock shall be entitled to exchange their shares of common
Stock for securities or other property deliverable upon such disposition,
dissolution, liquidation or winding up. Each such written notice shall be
sufficiently given if addressed to Holder at the last address of Holder
appearing on the books of the Company and delivered in accordance with Section
15(d).

        14. NO IMPAIRMENT. The Company shall not by any action, including,
without limitation, amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such actions as may be necessary or appropriate to protect the
rights of the Holder against

                                       11
<PAGE>

impairment. Without limiting the generality of the foregoing, the Company will
(a) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (b)
use commercially reasonable efforts to take all such action as may be necessary
or appropriate in order that the Company may validly and legally issue fully
paid and nonassessable Warrant Shares upon the exercise of this Warrant, and (c)
use commercially reasonable efforts to obtain all such authorizations,
exemptions or consents from any public regulatory body having jurisdiction
thereof as may be necessary to enable the Company to perform its obligations
under this Warrant.

         15. MISCELLANEOUS.

                  (a) JURISDICTION. This Warrant shall constitute a contract
         under the laws of New York, without regard to its conflict of law,
         principles or rules, and be subject to arbitration pursuant to the
         terms set forth in the Purchase Agreement.

                  (b) RESTRICTIONS. The Holder acknowledges that the Warrant
         Shares acquired upon the exercise of this Warrant, if not registered,
         will have restrictions upon resale imposed by state and federal
         securities laws.

                  (c) NONWAIVER AND EXPENSES. No course of dealing or any delay
         or failure to exercise any right hereunder on the part of Holder shall
         operate as a waiver of such right or otherwise prejudice Holder's
         rights, powers or remedies. If the Company willfully and knowingly and
         for reasons within its control fails to comply with any provision of
         this Warrant, which results in any material damages to the Holder, the
         Company shall pay to Holder such amounts as shall be sufficient to
         cover any costs and expenses including, but not limited to, reasonable
         attorneys' fees, including those of appellate proceedings, incurred by
         Holder in collecting any amounts due pursuant hereto or in otherwise
         enforcing any of its rights, powers or remedies hereunder.

                  (d) NOTICES. Any notice, request or other document required or
         permitted to be given or delivered to the Holder by the Company shall
         be delivered in accordance with the notice provisions of the Purchase
         Agreement.

                  (e) LIMITATION OF LIABILITY. No provision hereof, in the
         absence of affirmative action by Holder to purchase Warrant Shares, and
         no enumeration herein of the rights or privileges of Holder, shall give
         rise to any liability of Holder for the purchase price of any Common
         Stock or as a stockholder of the Company, whether such liability is
         asserted by the Company or by creditors of the Company.

                  (f) SUCCESSORS AND ASSIGNS. Subject to applicable securities
         laws and the provisions of this Warrant, this Warrant and the rights
         and obligations evidenced hereby shall inure to the benefit of and be
         binding upon the successors of the Company and the successors and
         permitted assigns of Holder. The provisions of this Warrant are
         intended to be for the benefit of all Holders from time to time of this
         Warrant and shall be enforceable by any such Holder or holder of
         Warrant Shares.

                                       12
<PAGE>

                  (g) AMENDMENT. This Warrant may be modified or amended or the
         provisions hereof waived with the written consent of the Company and
         the Holder.

                  (h) SEVERABILITY. Wherever possible, each provision of this
         Warrant shall be interpreted in such manner as to be effective and
         valid under applicable law, but if any provision of this Warrant shall
         be prohibited by or invalid under applicable law, such provision shall
         be ineffective to the extent of such prohibition or invalidity, without
         invalidating the remainder of such provisions or the remaining
         provisions of this Warrant.

                  (i) HEADINGS. The headings used in this Warrant are for the
         convenience of reference only and shall not, for any purpose, be deemed
         a part of this Warrant.

                                       13
<PAGE>

                  IN WITNESS WHEREOF, the Company has caused this Warrant to be
executed by its officer thereunto duly authorized.

Dated:  August 14, 2002
                                   LUMENON INNOVATIVE LIGHTWAVE TECHNOLOGY, INC.

                                   By: /s/ Gary S. Moskovitz
                                       -----------------------------------------
                                       Gary S. Moskovitz, President and CEO

                                       14
<PAGE>

                               NOTICE OF EXERCISE

To:      Lumenon Innovative Lightwave Technology, Inc.

       (1) The undersigned hereby elects to purchase ________ Warrant Shares, of
Lumenon Innovative Lightwave Technology, Inc. pursuant to the terms of the
attached Warrant, and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any.

       (2) Payment shall take the form of (check applicable box):

                    [  ] in lawful money of the United States; or

                    [ ] the cancellation of such number of Warrant Shares
                    as is necessary, in accordance with the formula set
                    forth in subsection 3(c), to exercise this Warrant
                    with respect to the maximum number of Warrant Shares
                    purchasable pursuant to the cashless exercise
                    procedure set forth in subsection 3(c).

       (3) Please issue a certificate or certificates representing said Warrant
Shares in the name of the undersigned or in such other name as is specified
below:

                  ----------------------------------------

The Warrant Shares shall be delivered to the following:

                  ----------------------------------------

                  ----------------------------------------

                  ----------------------------------------

       (4) ACCREDITED INVESTOR. The undersigned is an "accredited investor" as
defined in Regulation D promulgated under the Securities Act of 1933, as
amended.

                                           [PURCHASER]

                                           By: _________________________________
                                               Name:
                                               Title:

                                           Dated:  _____________________________

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

        FOR VALUE RECEIVED, the rights of the undersigned under the foregoing
Warrant are hereby assigned to

_______________________________________________ whose address is

________________________________________________________________.

________________________________________________________________

                                                 Dated:  ______________, _______

                  Holder's Signature:  _____________________________

                  Holder's Address:    _____________________________

                                       _____________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in an fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing
Warrant.

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