Document:

Exhibit 10.1

     

    
      

    

    Exhibit
      10.1

     

     

    

    GENERAL
      RELEASE AGREEMENT 

    

    This
      Settlement Agreement and General Release (the “Agreement”) is entered into on
      December 15, 2005, by and between Gregory A. Peters (“PETERS”) and Internap
      Network Services Corporation (“INTERNAP”), and arises out of the termination of
      PETERS’s employment.

    

    WHEREAS
      PETERS was employed by INTERNAP; and

     

    WHEREAS
      PETERS resigned from his employment with INTERNAP effective November 18, 2005
      (“Termination Date”).

     

    NOW,
      THEREFORE, in consideration of the material promises contained herein and other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties agree as follows:

    

    1.    Consideration
      by INTERNAP.
      Provided
      that PETERS has executed and delivered to the Company this Agreement and this
      Agreement becomes effective as set forth in Paragraph 18 hereunder and subject
      to the terms of this Agreement, PETERS shall receive a cash severance payment
      in
      the amount of $700,000.00 (based on PETERS’S annual salary at the time of
      termination of $350,000.00). Payment of such severance amounts shall be subject
      to standard payroll tax withholdings and deductions. 

    

    INTERNAP
      shall reimburse PETERS, on a monthly basis, for the insurance premiums that
      PETERS has paid for COBRA continuation coverage under INTERNAP’s group health
      plan for health benefits substantially
      similar to those PETERS was receiving immediately prior to the termination
      of
      his employment,
      for the
      period from the Termination Date until
      the
      earlier of: (i) eighteen (18) months from the Termination Date or (ii) the
      date
      upon which PETERS becomes eligible to be covered under another employer's group
      health plan.
      The
      first
      monthly payment made to PETERS shall include all such COBRA reimbursements
      owed
      and not yet paid. All other employee benefits previously provided by INTERNAP
      have ceased in accordance with the terms of each employee benefit plan or
      policy. 

    

    PETERS
      understands and acknowledges that the benefits to be provided him by INTERNAP
      under this Agreement are in excess of those he would have received from INTERNAP
      if he had not elected to sign this Agreement. PETERS further understands and
      acknowledges that INTERNAP owes no additional amounts to PETERS for wages,
      commissions, back pay, severance pay, accrued vacation, sick leave, other leave
      or any other reason.

    

    2.    General
      Release of Claims.
      In
      exchange for the promises and agreements described in this Agreement, PETERS
      hereby voluntarily, irrevocably, fully, and completely RELEASES, ACQUITS, AND
      FOREVER DISCHARGES INTERNAP (including its current and former owners,
      shareholders, predecessors, successors, assigns, agents, directors, officers,
      employees, representatives, attorneys, insurers, parent company, divisions,
      affiliates, and related business 

     

     

    
      
        
        

      

      
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      entities, collectively known herein as “INTERNAP Releasees”)
        from any and all claims, complaints, liabilities, obligations, promises,
        agreements, controversies, damages, actions, causes of action, suits, rights,
        demands, costs, losses, debts, and expenses of any nature whatsoever (whether
        known or unknown) which PETERS ever had, may have, or now has arising from
        or
        related to, directly or indirectly, PETERS’s employment with INTERNAP, the
        termination of PETERS’s employment with INTERNAP, or other events accrued as of
        the date of execution of this Agreement, including, but not limited
        to:

    

    
      	 	
              (a)

            	
              violations
                of the Employee Retirement Income Security Act, Title VII of the
                Civil
                Rights Act of 1964, the Age Discrimination in Employment Act, the
                Fair
                Labor Standards Act, the Civil Rights Act of 1991, the Americans
                With
                Disabilities Act, the Equal Pay Act, the Civil Rights Act of 1866,
                42
                U.S.C. § 1981, the Family and Medical Leave Act, the Labor Management
                Relations Act, the National Labor Relations Act, the Consolidated
                Omnibus
                Budget Reconciliation Act of 1985, 42 U.S.C. § 1983, Executive Order
                11246, Executive Order 11141, the Rehabilitation Act of 1973, or
                the
                Sarbanes-Oxley Act of 2002;

            

    

    

    
      	 	
              (b)

            	
              violations
                of any other federal or state statute or regulation or local
                ordinance;

            

    

    

    
      	 	
              (c)

            	
              claims
                for lost or unpaid wages, compensation, or other benefits claims
                under
                state law, defamation, intentional infliction of emotional distress,
                negligent infliction of emotional distress, bad faith action, slander,
                assault, battery, wrongful or constructive discharge, negligent hiring,
                retention and/or supervision, fraud, misrepresentation, conversion,
                tortious interference with property, negligent investigation, breach
                of
                contract, or breach of fiduciary
                duty;

            

    

    

    
      	 	
              (d)

            	
              any
                claims to benefits under any and all bonus, severance, workforce
                reduction, early retirement, outplacement, or any other similar plan
                sponsored by INTERNAP which PETERS ever had or now has or may in
                the
                future have; and

            

    

    

    
      	 	
              (e)

            	
              any
                claims under the California Fair Employment and Housing Act, as amended;
                the Washington Law Against Discrimination in Employment, as amended;
                the
                Washington Family Leave Act, as amended; or any other state law arising
                in
                tort or contract.

            

    

    

    In
      addition, PETERS acknowledges that this Agreement constitutes a full SETTLEMENT,
      ACCORD AND SATISFACTION of all claims covered by the release provisions of
      this
      Section.

    

    3.    Covenant
      Not to Sue.
      PETERS
      forever waives, releases, and covenants not to sue or file any complaint or
      claim against any INTERNAP Releasee with any court, governmental agency or
      other
      entity based on any act or omission arising or occurring prior to the date
      of
      execution of this Agreement, whether known or unknown at the time of execution,
      including any claim related to any employee benefit plan (and related trusts)
      maintained by the company. PETERS also waives any right to recover in a civil
      suit brought by any governmental agency or any other individual on his
      behalf.

     

     

    
      
        
        

      

      
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    Notwithstanding
      the foregoing, it is understood by all parties that PETERS does not release
      any
      claims that may arise under the terms of this Agreement or after the effective
      date of this Agreement. 

    

    4.    Return
      of Property and Information.
      PETERS
      agrees to return all INTERNAP property within three (3) days of his execution
      of
      this Agreement. Such property includes, but is not limited to, the original
      and
      any copy (regardless of the manner in which it is recorded) of all information
      provided by INTERNAP to PETERS or which PETERS has developed or collected in
      the
      scope of his employment, as well as all INTERNAP-issued equipment, supplies,
      accessories, vehicles, keys, instruments, tools, devices, computers, cellphones,
      pagers, materials, documents, plans, records, notebooks, drawings, or papers.
      Provided, however, PETERS may retain copies of documents relating to INTERNAP’s
      employee benefit plans applicable to PETERS and income records to the extent
      necessary for PETERS to prepare his individual tax returns.

    

    5.    Protective
      Covenants. 

    

    (a)    For
      the
      purposes of this Agreement, the term “Confidential Information” shall mean
      valuable, non-public, competitively sensitive data and information relating
      to
      the INTERNAP Releasees’ business that is not generally known by or readily
      available to INTERNAP’s competitors. Confidential Information includes, but is
      not limited to: (1) business and employment policies, marketing methods and
      the
      targets of those methods, finances, business plans, promotional materials and
      price lists; (2) the terms upon which INTERNAP obtains products from its
      suppliers and sells them to customers; (3) the nature, origin, composition
      and
      development of INTERNAP’s products; and (4) the manner in which INTERNAP
      provides products and services to its customers. “Confidential Information” does
      not include information that is readily ascertainable through publicly available
      sources. 

     

    (b)    For
      the
      purposes of this Agreement, the term “Trade Secret” shall mean information,
without
      regard to form, including, but not limited to, technical or non-technical data,
      a formula, a pattern, a compilation, a program, a device, a method, a technique,
      a drawing, a process, financial data, financial plans, product plans, or a
      list
      of actual or potential customers or suppliers which is not commonly known by
      or
      available to the public and which information: 

    

    
      	 	
              (1)

            	
              derives
                independent economic value, actual or potential, from not being generally
                known to, and not being readily ascertainable by proper means by,
                other
                persons who can obtain economic value from its disclosure or use;
                and

            

    

     

     

    
      
        
        

      

      
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              (2)

            	
              is
                the subject of efforts that are reasonable under the circumstances
                to
                maintain its secrecy.

            

    

    

    (c)    To
      the
      extent that the above definitions contained in paragraphs 5(a) and 5(b) are
      inconsistent with definitions of “Confidential Information” and “Trade Secret”
mandated under applicable law, the foregoing definitions shall be deemed amended
      to the degree necessary to render them consistent with applicable
      law.

    

    (d)    In
      recognition of the need of INTERNAP Releasees to protect their legitimate
      business interests, PETERS hereby covenants and agrees that: (1) with regard
      to
      each item which under Georgia law is a Trade Secret of INTERNAP Releasees,
      at
      all times during which such item remains a Trade Secret under Georgia law;
      and
      (2) with regard to each item under which Georgia law is INTERNAP Confidential
      Information, for a period of two (2) years after the date of this Agreement,
      PETERS shall regard and treat each item constituting all or any portion of
      the
      Trade Secrets and all Confidential Information as strictly confidential and
      wholly owned by the INTERNAP Releasees, and will not, for any reason in any
      fashion, either directly or indirectly use, sell, lend, lease, distribute,
      license, transfer, assign, show, disclose, disseminate, reproduce, copy, or
      otherwise communicate any such item or information to any third party, for
      his/her own benefit or for any purpose other than in accordance with the
      express, written instructions of INTERNAP Releasees.

     

    
      
        	 	
                (e)    Non-Competition
                  Covenant.
                  PETERS hereby covenants and agrees that for a period of 18 months
                  after
                  the date of this Agreement, PETERS will not compete with the Business
                  of
                  INTERNAP by performing management or strategic activities, or by
                  rendering
                  other services, of the type PETERS performed for INTERNAP during
                  his
                  employment. Likewise, PETERS hereby covenants and agrees that he
                  will not
                  perform activities of the type which in the ordinary course of
                  business
                  would involve the utilization of Confidential Information or Trade
                  Secrets
                  protected from disclosure by this Agreement. This paragraph 5(e)
                  restricts
                  competition only within a ten mile radius of each of the cities
                  in which
                  INTERNAP maintained an office during PETERS’s
                  employment.

              

      

      
        	 	 

      

      
        	 	
                For
                  the purposes of this Agreement, the “Business of INTERNAP” means any
                  entity that is engaged in: (1) managed high performance Internet
                  connectivity; (2) hosting or collocation services; (3) virtual
                  private
                  network services; (4) content distribution network services; or
                  (5)
                  application acceleration products or
                  services.

              

      

      
        	 	 

      

      
        	 	
                If
                  PETERS receives a job offer that may be covered by this paragraph
                  5(e),
                  PETERS may request the Chairman of INTERNAP’s Board of Directors to
                  indicate whether or not such job would be prohibited under this
                  paragraph,
                  and the Chairman of INTERNAP’s Board of Directors shall make such
                  determination in his or her sole
                  discretion.

              

      

      
        	 	 

      

      
        	 	
                (f)
                  Non-Solicitation
                  Covenant.
                  PETERS hereby covenants and agrees that during employment with
                  INTERNAP
                  and for a period of 18 months after the date of this Agreement,
                  PETERS
                  will not directly or indirectly solicit or attempt to solicit any
                  business
                  in competition with the Business of INTERNAP from any of INTERNAP's
                  customers or suppliers with whom PETERS had Contact during PETERS’s
                  employment with INTERNAP. For the purposes of this Agreement, “Contact"
                  means direct or indirect interaction between PETERS and INTERNAP’s
                  customers which took place in an effort to further the business
                  relationship.

              

      

       

       

      
        
          
          

        

        
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        	 	(g)    Non-Recruitment
                of INTERNAP Employees.
                PETERS hereby covenants and agrees that for a period of 18 months
                following the cessation of employment, PETERS will not directly or
                indirectly solicit or attempt to solicit any employee of INTERNAP
                for the
                purpose of encouraging, enticing, or causing said employee to terminate
                employment with INTERNAP.

      

      
        	 	 

      

      
        	 	(h)    Other
                Employment After Termination.
                PETERS acknowledges and represents that PETERS has substantial experience
                and knowledge such that PETERS can readily obtain subsequent employment
                which does not violate this
                Agreement.

      
 

    Acknowledgments.
      PETERS
      hereby acknowledges and agrees that the covenants and agreements contained
      in
      Paragraph 5 are reasonable as to time, scope, and territory given
      INTERNAP’s need to protect proprietary and confidential information about its
      business, client and customer information, and its investment in employees.
      In
      the event any covenant or agreement in this Agreement shall be determined by
      any
      court of competent jurisdiction to be unenforceable by reason of its extending
      for too great a period of time or over too great a geographical area or by
      reason of its being too extensive in any other respect, it shall be interpreted
      to extend only over the maximum period of time for which it may be enforceable
      and/or over the maximum geographical area as to which it may be enforceable
      and/or to the maximum extent in all other respects as to which it may be
      enforceable, all as determined by such court in such action. 

     

    Specific
      Performance.
      PETERS
      acknowledges and agrees that any breach of a covenant or agreement by him will
      cause irreparable damage to INTERNAP, the exact amount of which will be
      difficult to determine, and that the remedies at law for any such breach will
      be
      inadequate.  Accordingly, PETERS agrees that, in addition to any other
      remedy that may be available at law, in equity, or hereunder, INTERNAP shall
      be
      entitled to specific performance and injunctive relief, without posting bond
      or
      other security to enforce or prevent any violation of any of the covenants
      or
      agreements by him.

    

    6.    No
      Re-employment.
      PETERS
      agrees never to seek employment or re-employment with INTERNAP or any of its
      parent, subsidiary, or related companies or divisions in the future. PETERS
      acknowledges that he is not now nor will he ever be eligible for such employment
      or re-employment and that this is fair and just under the relevant facts and
      circumstances.

    

    7.    Non-Admissions.
      PETERS
      agrees that this Agreement shall not in any way be construed as an admission
      by
      INTERNAP or others released herein that any of them has acted wrongfully with
      respect to PETERS or any other person or persons or that PETERS has any rights
      whatsoever against them, and INTERNAP specifically disclaims any liability
      to or
      wrongful acts against PETERS, or any other person or persons, on the part of
      itself or any of the INTERNAP Releasees. 

     

     

    
      
        
        

      

      
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    8.    Non-Assignment
      of Claims.
      PETERS
      acknowledges and warrants, understanding that the truth of said acknowledgment
      and warranty is material to the making of this Agreement, that he has not
      assigned or otherwise transferred any of the claims released by him through
      this
      Agreement, and he hereby promises to indemnify and hold harmless the INTERNAP
      Releasees with respect to any damages, costs or other injuries, including the
      payment of attorneys’ fees, which might arise through the assertion of any claim
      released herein.

    

    9.    Intentionally
      left blank. 

    

    10.   Non-disparagement.
      PETERS
      agrees that he will not engage in any action that disparages INTERNAP or its
      officers, directors, managers, employees or practices; or that disrupts or
      impairs its normal operations or harms the reputation of INTERNAP with its
      customers, suppliers or the public; or interferes with existing contractual
      relationships with customers, suppliers or INTERNAP associates. Nothing in
      this
      Agreement prevents PETERS from responding accurately and fully to any question,
      inquiry or request for information when required by legal process.

    

    11.   Cooperation. PETERS
      agrees to cooperate with INTERNAP following the termination of his employment
      by
      being reasonably available to testify on behalf of INTERNAP or any subsidiary
      or
      affiliate in any action, suit, or proceeding, whether civil, criminal,
      administrative, or investigative, and to assist INTERNAP, or any subsidiary
      or
      affiliate, in any such action, suit or proceeding, by providing information
      and
      meeting and consulting with representatives or counsel to INTERNAP, or any
      subsidiary or affiliate, as reasonably requested. INTERNAP agrees to reimburse
      PETERS for all expenses actually incurred in connection with his provision
      of
      testimony or assistance pursuant to this Section. 

    

    12.   No
      Assistance.
      PETERS
      shall not voluntarily provide assistance, information or advice, directly or
      indirectly (including through any agent or attorney), to any person or entity
      in
      connection with bringing any claim or cause of action of any kind against
      INTERNAP, nor will PETERS induce or encourage any person or entity to do so.
      Nothing in this Agreement prohibits PETERS from testifying truthfully under
      subpoena or providing other assistance under compulsion of law

    

    13.   Resignation
      of Positions.
      By
      signing this Agreement, PETERS hereby confirms his resignation from any and
      all
      positions he held with INTERNAP or its subsidiaries, if any, on the Termination
      Date, to be effective immediately. PETERS also shall promptly execute any and
      all forms, documents and agreement as INTERNAP deems necessary for PETERS to
      establish his resignation as provided herein.

    

    14.   No
      Presumption Against Drafter.
      This
      Agreement has been drafted through a cooperative effort of both parties, and
      neither party shall be considered the drafter of this Agreement so as to give
      rise to any presumption or convention regarding construction of this
      document.

     

     

    
      
        
        

      

      
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    15.   Voluntariness.
      PETERS
      acknowledges that he fully understands the extent and impact of the provisions
      of this Agreement and that he has executed it voluntarily and without any
      coercion, undue influence, threat, or intimidation of any kind
      whatsoever.

    

    16.    Attorneys’
      Fees.
      The
      parties specifically acknowledge and agree that each party will be responsible
      for its own attorneys’ fees, costs, and expenses incurred in connection with
      this Agreement and the events giving rise hereto.

    

    17.    Consideration
      Period.
      PETERS
      hereby has been advised and understands that he has twenty-one (21) days
      from the date of receipt to decide whether or not to sign this Agreement, which
      period may be shortened and waived by PETERS. This period is designed to allow
      PETERS to consult with a financial advisor, accountant, attorney or anyone
      else
      whose advice PETERS chooses to seek. 

    

    This
      Agreement and any and all offers contained herein will automatically expire
      immediately after January 3, 2006, if PETERS has not returned to INTERNAP an
      executed copy of this Agreement by that time or earlier as set forth
      herein.

     

    18.    Effective
      Date of Agreement and Option to Revoke.
      PETERS
      hereby has been advised and understands that he may revoke this Agreement within
      seven days after signing it. The last day upon which this Agreement can be
      revoked is referred to herein as the “Last Revocation Day.” Revocation shall be
      made by delivering a written notice of revocation to INTERNAP no later than
      5:00
      p.m. Eastern Time on the Last Revocation Day at the following
      address:

    

    

    Internap
      Network Services Corporation

    Attention:
      Eugene Eidenberg

    250
      Williams Street, Suite E-100

    Atlanta,
      Georgia 30303

    

    With
      a
      copy to: 

    Internap
      Network Services Corporation

    Attention:
      Vice President and General Counsel

    250
      Williams Street, Suite E-100

    Atlanta,
      GA 30303

    

    The
      parties agree and understand that if PETERS does not
      revoke
      this Agreement on or before the Last Revocation Day, this Agreement shall become
      effective on the day following the Last Revocation Day, and PETERS shall receive
      the payments and benefits as described in Paragraph 1 of this Agreement as
      follows: $250,000 by no later than December 31, 2005 and $450,000 by no later
      than January 7, 2006. If PETERS does revoke this Agreement on or before the
      Last
      Revocation Day, this Agreement shall not become effective, this Agreement and
      any and all offers herein will automatically be terminated and expired and
      PETERS shall not receive the payments and benefits described in Paragraph 1
      of
      this Agreement.

    
 

    
      
        
        

      

      
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    19.    Notice.
      All
      notices, requests, demands and other communications required or permitted
      hereunder shall be in writing and shall be deemed to have been duly given if
      delivered or seven days after mailing if mailed, first class, certified mail,
      postage prepaid: 

    

    TO
      INTERNAP:    Internap
      Network Services Corporation

    Attention:
      Chairman of the Board 

    250
      Williams Street, Suite E-100

    Atlanta,
      Georgia 30303

     

    and
      to:

     

    Internap
      Network Services Corporation

    Attention:
      Vice President and General Counsel

    250
      Williams Street, Suite E-100

    Atlanta,
      Georgia 30303

    

     

    TO
      PETERS:     
Mr.
      Gregory A. Peters

     

    

    20.    Miscellaneous

    

    
      	 	
              (a)

            	
              Scope
                of Agreement.
                This Agreement will bind the heirs, personal representatives, successors
                and assigns of both you and INTERNAP, and inure to the benefit of
                both you
                and INTERNAP, their heirs, successors and assigns. If any provision
                of
                this Agreement is determined to be invalid or unenforceable, in whole
                or
                in part, this determination will not affect any other provision of
                this
                Agreement and the provision in question will be modified by the court
                so
                as to be rendered enforceable in a manner consistent with the intent
                of
                the parties insofar as possible. Headings and subheadings in this
                Agreement are solely for convenience and do not constitute terms
                of this
                Agreement.

            

    

    

    
      	 	
              (b)
                

            	
              Applicable
                Law.
                This Agreement shall be interpreted, enforced, construed, and governed
                under the laws of the State of Georgia without regard to its choice
                of law
                rules. PETERS agrees that any future disputes between him and INTERNAP
                (the “parties ”) including but not limited to disputes arising out of or
                related to this Agreement and release of claims, will be resolved
                by
                binding arbitration, except where the law specifically forbids the
                use of
                arbitration as a final and binding remedy, in Fulton County, Georgia
                in
                accordance with the rules of the American Arbitration Association
                by one
                arbitrator appointed in accordance with said rules. INTERNAP will
                pay for
                the cost of the arbitration but each of the parties will be responsible
                for the legal fees of that party’s legal counsel. The Arbitrator will
                apply Georgia law, without references to rules of conflicts law or
                rules
                of statutory arbitration, to the resolution of any dispute. Judgment
                on
                the award rendered by the arbitrator may be entered in any court
                having
                competent jurisdiction thereof. Notwithstanding the foregoing, the
                parties
                may apply to any court of competent jurisdiction for preliminary
                or
                interim equitable relief, or to compel arbitration in accordance
                with this
                Section provided that the arbitrator shall have the ultimate authority
                to
                determine whether such preliminary or interim equitable relief shall
                be
                continued.

            

    

     

     

    
      
        
        

      

      
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              (c)

            	
              Entire
                Agreement.
                This Agreement contains the entire agreement and understanding concerning
                the subject matter hereof between the parties hereto, superseding
                and
                replacing all prior negotiations, understandings, representations
                and
                agreements, written or oral. No modification, amendment, waiver,
                termination or discharge of this Agreement, or any of the terms or
                provisions hereof, shall be binding upon either of the parties unless
                confirmed by a written instrument signed by both parties. No waiver
                by any
                party of any term or provision of this Agreement or of any default
                hereunder shall affect such party’s rights thereafter to enforce such term
                or provision or to exercise any right or remedy in the event of any
                other
                default, whether or not similar.

            

    

    

    
      	 	
              (d)

            	
              Severability.
                If any provision or covenant, or any part thereof, of this Agreement
                should be held by any court to be invalid, illegal or unenforceable,
                either in whole or in part, such invalidity, illegality or
                unenforceability shall not affect the validity, legality or enforceability
                of the remaining provisions or covenants, or any part thereof, of
                this
                Agreement, all of which shall remain in full force and effect.
                

            

    

    

    
      	 	
              (e)

            	
               Waiver.
                Failure
                of either party to insist, in one or more instances, on performance
                by the
                other in strict accordance with the terms and conditions of this
                Agreement
                shall not be deemed a waiver or relinquishment of any right granted
                in
                this Agreement or the future performance of any such term or condition
                or
                of any other term or condition of this Agreement, unless such waiver
                is
                contained in a writing signed by the party making the
                waiver.

            

    

    

    
      	 	
              (f)

            	
              Proper
                Construction.
                The language in all parts of this Agreement shall in all cases be
                construed as a whole, according to its fair meaning, and not strictly
                for
                or against either of the parties. As utilized in this Agreement,
                the term
                “or” shall be deemed to include the term “and/or” and the singular or
                plural number shall be deemed to include the other, whenever the
                context
                so indicates or requires. The paragraph headings used in this Agreement
                are intended solely for convenience of reference and shall not in
                any
                manner amplify, limit, modify, or otherwise be used in the interpretation
                of any of the provisions hereof.

            

    

     

    21.    Acknowledgment
      of Knowing and Voluntary Waiver

     

    PETERS
      hereby represents and warrants that: 

     

     

    
      
        
        

      

      
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              (a)

            	
              PETERS
                has CAREFULLY READ THIS AGREEMENT AND FULLY UNDERSTANDS ALL OF THE
                PROVISIONS OF THIS AGREEMENT;

            

    

     

    
      	 	
              (b)

            	
              PETERS
                has had an OPPORTUNITY TO CONSULT WITH AN ATTORNEY OF HIS CHOICE
                AS TO THE
                TERMS OF THIS AGREEMENT to the full extent that he desired before
                signing
                this Agreement;

            

    

     

    
      	 	
              (c)

            	
              PETERS
                understands that this Agreement FOREVER RELEASES INTERNAP from any
                legal
                action arising prior to the date of execution of this
                Agreement;

            

    

     

    
      	 	
              (d)

            	
              PETERS
                has had the opportunity to REVIEW AND CONSIDER THIS AGREEMENT FOR
                A PERIOD
                OF AT LEAST TWENTY ONE (21) DAYS before signing
                it;

            

    

     

    
      	 	
              (e)
                

            	
              PETERS
                understands that HE SHALL HAVE SEVEN (7) DAYS FOLLOWING THE EXECUTION
                OF
                THIS AGREEMENT TO REVOKE SAID AGREEMENT;

            

    

     

    
      	 	
              (f)

            	
              In
                signing this Agreement, PETERS DOES NOT RELY ON NOR HAS HE RELIED
                ON ANY
                REPRESENTATION OR STATEMENT (WRITTEN OR ORAL) NOT SPECIFICALLY SET
                FORTH
                IN THIS AGREEMENT by INTERNAP or by any of INTERNAP’s agents,
                representatives, or attorneys with regard to the subject matter,
                basis, or
                effect of this Agreement or otherwise;
                and

            

    

     

    
      	 	
              (g)

            	
              PETERS
                was not coerced, threatened, or otherwise forced to sign this Agreement,
                and PETERS is VOLUNTARILY SIGNING AND DELIVERING THIS AGREEMENT of
                his own
                free will, and that each signature appearing hereafter is
                genuine.

            

    

    

    IN
      WITNESS WHEREOF,
      the
      undersigned have signed and executed this Agreement on the dates set forth
      below
      as an expression of their intent to be bound by the foregoing terms of this
      Agreement.

    
 

    
      	/s/ Gregory A. Peters	DATED: 12/15/05
	GREGORY A. PETERS	 
	 	 

    

    

    INTERNAP
      NETWORK SERVICES CORPORATION

    

     

    
      
        	BY: /s/
                Eugene Eidenberg	DATED: 12/15/05
	EUGENE EIDENBERG	 
	Chairman of the Board	 

      

    

     

    10Exhibit 4.1

     

      

    

    Exhibit
      4.1

     

    CONSULTING
      AGREEMENT

     

     

    THIS
      CONSULTING AGREEMENT is made this 28th
      day of
      November, 2005, by and between Summus, Inc., a Delaware corporation, with its
      principal place of business at 434 Fayetteville Street, Suite 600, Raleigh,
      North Carolina, 27601 ("SUMMUS") and Rich Ruben, individually, with his
      principal place of residence at 100 Curwen Circle, Bryn Mawr, PA 19010
      ("Consultant").

     

    RECITALS:

     

    A.    SUMMUS
      is
      primarily engaged in the development of mobile media applications that optimize
      the consumer wireless experience. 

    

    B.    In
      view
      of the skills, knowledge and qualifications of Consultant which SUMMUS perceives
      to be of benefit to the business of SUMMUS, SUMMUS desires to retain the
      services of Consultant to render certain consulting services to SUMMUS described
      in Exhibit A attached hereto, and Consultant desires to provide consulting
      services to SUMMUS, on the terms and conditions set forth herein.

    

    C.    The
      parties intend that Consultant shall be an independent contractor with SUMMUS
      under this Agreement and not an employee of SUMMUS.

     

    NOW,
      THEREFORE, in consideration of the mutual agreements and covenants contained
      herein, and for other good and valuable consideration, the parties, intending
      to
      be legally bound, agree as follows:

     

    1.    Retention.
      SUMMUS
      hereby retains Consultant, and Consultant hereby agrees to render consulting
      services to SUMMUS, upon the terms and conditions set forth herein.

     

    2.    Duties.
      Consultant
      covenants and agrees that he will, as an independent contractor, perform
      diligently and to the best of his talents, skills and expertise, the services
      set forth in Exhibit A attached hereto; other

    services
      and projects may be added to Exhibit A by agreement of the parties hereto.
      Except as set forth on Section 12 of this Agreement, Consultant shall not assign
      or delegate the performance of any such services to any other person, firm
      or
      corporation without the prior consent of SUMMUS. Consultant shall render
      services at Consultant's offices, but will, at mutually agreeable times, provide
      services at SUMMUS’ office.

    

    Consultant
      shall have the right to engage in any other gainful activities and business
      in
      his sole and absolute discretion, provided that Consultant hereby agrees that
      he
      shall not engage in any activities or businesses which directly conflict or
      compete with the activities and business of SUMMUS during the term of this
      Agreement. 

     

            
      3.    Independent
      Contractor Status.
      The
      parties recognize that Consultant is an independent contractor and not an
      employee, agent, partner, joint venturer or representative of SUMMUS. Nothing
      in
      this Agreement

    shall
      be
      construed to mean that the parties are members of any partnership, joint
      venture, association, syndicate or other entity or to confer on either party
      any
      express, implied or apparent authority to incur any obligation or liability
      on
      behalf of the other party. Consultant shall at all times represent and disclose
      to any and all third parties that he is an independent contractor, and not
      an
      employee, agent or representative, of SUMMUS. SUMMUS shall not withhold any
      funds from Consultant for tax or other governmental purposes. Consultant shall
      be responsible for all taxes paid to federal agencies. Consultant shall not
      be
      entitled to receive any employment benefits offered to employees of SUMMUS,
      including workers' compensation insurance coverage. SUMMUS shall not exercise
      control over Consultant.

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     

    4.    Compensation.
      SUMMUS
      shall pay to Consultant, as compensation for the services to be rendered
      hereunder, the amounts set forth in Exhibit B attached hereto.

     

    5.    Term.
      This
      Agreement shall commence on the date first written above and shall continue
      until February 28, 2006, unless otherwise terminated as provided
      herein.

     

    6.    Termination.
      Notwithstanding Paragraph 5 of this Agreement, SUMMUS or Consultant may
      immediately terminate this Agreement without prior notice.

     

    7.    Nondisclosure.
      Consultant will remain subject to the terms of the Confidentiality Agreement
      executed by and between the SUMMUS and Consultant as of December __, 2005,
      attached to this Agreement as Exhibit C

    and
      incorporated herein for all purposes. 

    

    In
      addition, Consultant shall ensure that Consultant's employees, officers,
      directors, agents and representatives shall execute similar agreements
      protecting SUMMUS’ proprietary information and agree to be bound by the terms
      and conditions contained therein.

     

    8.    Records;
      Record Keeping.
      Consultant
      shall keep and maintain complete written records of all work or research done
      or
      carried out by Consultant. These records shall be works made for hire, and
      shall
      remain the

    exclusive
      property of SUMMUS, and shall be maintained and remain at SUMMUS’ offices.
      Consultant may keep one (1) copy of these records in Consultant's files solely
      for references purposes, provided that
      all
      trade secrets and proprietary information belonging to SUMMUS are sanitized
      from
      such copy. Consultant shall have access to the records and materials of SUMMUS
      at Consultant’s place of business that are necessary for Consultant to perform
      the services and produce the work product as agreed to in Appendix A to this
      Agreement. All materials and records provided to Consultant shall be subject
      to
      Section 7 of this Agreement. 

     

    9.    Rights
      to Work.
      The
      parties acknowledge that any work performed by Consultant for SUMMUS is being
      created in connection with SUMMUS’ engagement of Consultant and shall be deemed
      "work made for hire"

    under
      the
      U.S. copyright law. SUMMUS shall have the right to use the whole work, any
      part
      of parts thereof, or none of the work, as it sees fit. SUMMUS may alter the
      work, add to it, or combine it with any other work or works, at its sole
      discretion. Notwithstanding the foregoing, all original material submitted
      by
      Consultant as part of the work or as part of the process of creating the work,
      including, but not limited to, programs, listings, printouts, documentation,
      notes, flow charts and programming aids, shall be the property of SUMMUS whether
      or not SUMMUS uses such material; provided, however, that any templates or
      previous work product of the Consultant used by Consultant to create or develop
      any work product for SUMMUS shall be the sole property of Consultant.

    

    All
      programs, specifications, documentation, and all other technical information
      prepared by Consultant in connection with the performance of its services
      hereunder will become and remain SUMMUS’ sole property. SUMMUS shall retain
      title to all material and documentation, including, but not limited to, systems
      specifications, source code and object code furnished by SUMMUS to Consultant
      or
      delivered by SUMMUS into the Consultant's possession. SUMMUS has the right
      to
      obtain and to hold in its own name, copyrights, registrations or such other
      protection as may be appropriate to the subject matter, and any extensions
      and
      renewals thereof. Consultant agrees to provide SUMMUS and any person designated
      by SUMMUS reasonable assistance required to perfect the rights defined in this
      Section without further payment or compensation. Consultant shall immediately
      return all such material or documentation within seven days of any request
      by
      SUMMUS or upon the termination or conclusion of this Agreement, whichever occurs
      first.

    
 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    Consultant
      hereby grants, assigns and conveys to SUMMUS all right, title and interest
      in
      and to all inventions, works of authorship and other proprietary data, and
      all
      other materials (as well as the copyrights, patents, trade secrets, and similar
      rights attendant hereto) conceived, reduced to practice, authored, developed,
      or
      delivered by Consultant or his employees, agents, consultants, contractors
      and
      representatives under this Agreement.

    

    Consultant's
      obligations under this Agreement shall survive expiration or termination of
      this
      Agreement and any amendments thereto.

     

    During
      and after the term of this Agreement, Consultant will cooperate fully in
      obtaining patent and other proprietary protection for the materials, products
      and documentation produced by Consultant under this Agreement, all in the name
      of SUMMUS and at SUMMUS’ cost and expense, and, without limitation, shall
      execute and deliver all requested applications, assignments, and other
      documents, and take such other measures as SUMMUS shall reasonably request,
      in
      order to perfect and enforce SUMMUS’ rights in the materials, products, and
      documentation. Consultant appoints SUMMUS as his attorney-in-fact to execute
      and
      deliver any such documents on Consultant's behalf in the event Consultant fails
      to do so.

     

    10.    Adherence
      to Laws.
      Consultant agrees that in carrying out his duties and responsibilities under
      this Agreement, he will neither undertake nor cause, nor permit to be
      undertaken, any activity which either (i) is illegal

    under
      any
      laws, decrees, rules, or regulations in effect in either the United States
      or
      foreign country if applicable; or (ii) would have the effect of causing SUMMUS
      to be in violation of any laws, decrees, rules, or regulations in effect in
      either the United States or foreign country, if applicable. Consultant shall
      defend, indemnify and hold SUMMUS harmless from and against any and all damages
      and expenses, including legal fees, incurred directly or indirectly as a
      consequence of Consultant's failure to comply with any such laws or regulations.
      

     

    11.    Indemnification.
      Consultant shall indemnify, and hold harmless SUMMUS and its officers,
      directors, employees, agents, parent, subsidiaries, and other affiliates, from
      and against any and all losses, damages,

    costs,
      liability, and expense whatsoever (including attorneys' fees and related
      disbursements) incurred by reason of any failure by Consultant to perform any
      covenant or agreement of Consultant set forth herein. due to the gross
      negligence and/or willful acts of Consultant or Consultant's personnel.

     

    12.    Assignment;
      Amendment.
      This
      Agreement is not assignable by either Consultant or SUMMUS without the consent
      of the other party except that SUMMUS may assign this Agreement to an affiliate
      of SUMMUS

    upon
      written notice to Consultant and Consultant may assign this Agreement to a
      limited liability company, limited partnership or other entity established
      by
      Consultant as the entity through which Consultant provides consulting services.
      No alteration, modification, amendment, or other change of this Agreement shall
      be binding on the parties unless in writing, approved and executed by Consultant
      and an executive officer of SUMMUS.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    13.    Notices.
      Any
      notice or other communication pursuant to this Agreement shall be in writing
      and
      shall be deemed to have been fully given upon receipt to the following addresses
      or such other addresses as the parties may provide in writing to the other
      from
      time to time:

    

    
      	 	 
	
              If
                to SUMMUS:

               

              Summus,
                Inc.

              434
                Fayetteville Street

              Suite
                600

              Raleigh,
                NC 27601

              Attn :
                Donald T. Locke

              Chief
                Financial Officer

            	
              If
                to CONSULTANT:

               

              Richard
                Ruben

              100
                Curwen Circle

              Byrn
                Mawr, PA 19010

            

    

     

    14.    Governing
      Law.
      This
      Agreement shall be deemed to be a contract made under the laws of the State
      of
      Delaware and for all purposes it, plus any related or supplemental agreements,
      exhibits or annexes shall be construed in accordance with and governed by the
      laws of the State of Delaware, excluding its principles of conflicts of laws.
      The parties hereto agree that any and all disputes arising out of or concerning
      this Agreement shall be litigated and adjudicated in the state and/or federal
      courts located in the State of Delaware, and each party consents to and submits
      to such jurisdiction.

     

    15.    Invalidity.
      The
      terms of this Agreement shall be severable so that if any term, clause, or
      provision hereof shall be deemed invalid or unenforceable for any reason, such
      invalidity or unenforceability shall not affect

    the
      remaining terms, clauses, and provisions hereof, the parties intending that
      if
      any such term, clause, or provision were held to be invalid prior to the
      execution hereof, they would have executed an agreement containing all the
      remaining terms, clauses, and provisions of this Agreement.

     

    16.    Waiver
      of Breach.
      The
      waiver by either party hereto of any breach of the terms and conditions hereof
      will not be considered a modification of any provision, nor shall such a waiver
      act to bar the enforcement of

    any
      subsequent breach.

     

    17.    SUMMUS
      Property.
      All
      SUMMUS property in the possession or control of Consultant including, but not
      limited to specifications, documentation, source code, magnetic media, and
      building entry keys and cards,

    as
      well
      as all material developed or derived by Consultant in performing its duties
      under this Agreement will be returned by Consultant to SUMMUS on demand, or
      at
      the termination of this Agreement whichever shall come first.

     

    19.    Entire
      Agreement.
      Except
      for the Confidentiality, Non-Disclosure and Non-Compete Agreement referenced
      in
      Paragraph 7, this Agreement shall constitute the entire agreement between the
      parties hereto and

    replaces
      and supersedes all prior agreements, written and oral, relating to the subject
      matter hereof, between the parties to this Agreement.

     

    20.    Surviving
      Sections.
      All
      sections of this Agreement regarding covenants, confidentiality obligations,
      proprietary rights, and indemnities by Consultant shall survive expiration
      or
      termination of this Agreement;

    provided,
      however, that no claim may be asserted after the earlier to occur of (i) the
      date which is sixty days following the expiration of the applicable statute
      of
      limitation, or (ii) three (3) years following the date of this Agreement.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    IN
      WITNESS WHEREOF, the parties have executed this Agreement under seal effective
      the date first written above.

     

     

    
      	SUMMUS, INC.:	 	CONSULTANT:
	 	 	 
	 	 	 
	By: 
              ___________________________	 	_____________________________
	
              Name:
                Gary E. Ban

            	 	Name: Rich Ruben
	
              Title:
                Chief Executive Officer

            	 	SSN:

    

     

     

     

     

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
      A

     

    Duties
      of Consultant

     

    Consultant
      shall, upon the request of Summus, perform the following tasks and shall report
      to the Chief Executive Officer or a person designated by the Chief Executive
      Officer. Prior to beginning any projects covered under this Exhibit A, or any
      amendment or addition hereto, Consultant and SUMMUS shall set forth in writing
      a
      project sheet, which shall include a description of each project to be worked
      on
      by the Consultant and a list of deliverables to SUMMMUS by the Consultant for
      those projects in the designated time period. 

    

    TASKS:
      Evaluation and Recommendation of entities to be acquired by Summus.

    TIME
      COMMITMENT: Average of two (2) days per week 

    

    Additional
      projects may be added to this Exhibit A by the agreement in writing of the
      parties to the Agreement to which this Exhibit A is attached. Consultant shall
      be paid on such additional projects as shall be agreed to by the parties.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    Compensation

     

    

    Cash
      Compensation.
      

    

    (1)    Consultant
      shall be paid $15,000 on each of December 1, 2005, January 1, 2006 and February
      1, 2006 (for a cumulative total of $45,000). This cumulative amount shall be
      payable to Consultant regardless of the termination of the Agreement by Summus
      or in accordance with its terms; however, if this Agreement is terminated by
      Consultant, Consultant shall be paid through the effective date of such
      termination by Consultant. 

    

    (2)    In
      addition, Consultant shall receive $15,000 at the closing of each acquisition
      worked on by Consultant on behalf of Summus. Consultant shall not receive this
      amount for any acquisition he participates in only in his capacity as a Director
      of Summus. 

    

    Stock
      Options.
      

    

    Upon
      the
      execution of this Agreement, Consultant shall receive options to purchase 25,000
      shares of Summus common stock; these options shall be priced at $2.20 per share.
      These options shall vest at the rate of 1/12 monthly on the monthly anniversary
      date of the Agreement to which this Exhibit B is attached and incorporated
      into
      for all purposes. This grant of options shall continue vesting regardless of
      the
      termination of the Agreement by Summus or in accordance with its terms; however,
      if this Agreement is terminated by Consultant prior to February 28, 2006,
      vesting shall cease as of the effective date of such termination by Consultant.
      All shares underlying options received by Consultant shall be registered for
      sale on Summus’ Registration Statement on Form S-8. 

    

    Shares
      of Common Stock

    

    Consultant
      shall receive (a) 25,000 shares of Summus common stock upon the closing of
      each
      acquisition worked on by Consultant in which the total purchase price paid
      by
      Summus exceeds $10,000,000 and (b) 12,500 shares of Summus common stock upon
      the
      closing of each acquisition worked on by Consultant in which the total purchase
      price paid by Summus is less than $10,000,000. Consultant shall not receive
      these amounts for any acquisition he participates in only in his capacity as
      a
      Director of Summus. Consultant shall have “piggy-back” registration rights on
      any shares of common stock received from Summus requiring Summus to register
      such issued shares on its next required or voluntarily filed registration
      statement on Form S-1 or on any other form on which Summus is eligible to file.
      

    

    The
      number of shares to be granted to Consultant pursuant to this provision shall
      also apply to any acquisition of Summus by another entity. 

    

            

    Expenses.
      Consultant shall be reimbursed for all normal and reasonable business expenses
      in connection with the provision of services to SUMMUS; provided, however,
      that
      Consultant shall receive approval in writing from SUMMUS for any such expenses.
      

    
 

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

    

    

    CONFIDENTIALITY
      AGREEMENT

    

    

    THIS
      CONFIDENTIALITY AGREEMENT (this “Agreement”), is made and entered into by and
      between Summus, Inc., a Delaware corporation (“Summus”) located at 434
      Fayetteville Street, Suite 600, Raleigh, North Carolina 27601, and Rich Ruben
      (“Ruben”).

    

    RECITALS:

    

    A.    Summus
      and Ruben contemplate entering business and technical discussions relating
      to
      the project described on Schedule A hereto (the "Project");

    

    B.    In
      connection with such discussions, each of the parties hereto may provide the
      other with access to certain proprietary and confidential information of or
      pertaining to the disclosing party, for which each party wishes to have made
      subject to the terms and conditions of this Agreement. 

    

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

    

    1.    Definition
      of Confidential Information; Exclusions.

    

    (a)    For
      purposes of this Agreement, the term "Confidential Information" shall mean
      trade
      secrets, technical information, costs, designs, plans, drawings, specifications,
      inventions, ideas, techniques, routines, test sequences, processes, studies,
      systems, methods of operation and procedures, formulae, test data, know-how,
      research and development (in whatever stage), computer programs, products,
      services, technology, sales and marketing methods, customer lists, supplier
      information, financial data or any other compilation of information, written
      or
      unwritten, that is used in the business of the applicable party hereto providing
      such information (the "providing party") to the other party hereto (the
      "receiving party") and that is not readily available to the public or gives
      such
      providing party an opportunity to obtain an advantage over its competitors
      who
      do not know or use such information. To the extent practical, disclosures of
      Confidential Information will be made in writing or other tangible form and
      shall be marked “Confidential” or “Proprietary.” Disclosures made orally or
      visually shall not be considered “Confidential Information” unless they are
      indicated as such in writing within 5 business days of initial
      disclosure.

    

    (b)    The
      term
      "Confidential Information" does not include any information that is: (i) known
      to the receiving party at the time of its receipt; (ii) currently in the public
      domain or which hereafter becomes public knowledge in any way that does not
      involve a breach of an obligation of confidentiality on the part of the
      receiving party or any other person or entity; (iii) released by the providing
      party to any third party free of an obligation of confidence; or (iv) obtained
      or developed by or for the receiving party independently of and without
      reference to any Confidential Information of the providing party.

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
 

    2.    Confidentiality
      Obligation.
      Except
      as ordered by a court of competent jurisdiction or any other government
      authority, each of Summus and Ruben hereby covenant, for a period of five years
      from the date marked by the providing party on the applicable Confidential
      Information, to:

    

    (a)    hold
      the
      Confidential Information disclosed to it by the providing party in the strictest
      confidence;

    

    (b)    not
      use
      such Confidential Information except to evaluate or pursue the Project;
      and

    

    (c)    not
      disclose or provide access to such Confidential Information to any person or
      entity, except those directors, officers, employees and agents who have a
      demonstrated need to know such Confidential Information to evaluate the Project,
      it being understood and agreed that the receiving party shall be responsible
      for
      any breach of this Agreement by any of its representatives.

    

    In
      addition, each party agrees that, without the prior written consent of the
      other
      party, each party and its representatives will not disclose to any other persons
      that the Confidential Information has been made available, that discussions
      or
      negotiations are taking place concerning the project or any of the terms,
      conditions or other facts respect thereto (including the status thereof);
      provided, however, that either party may make such disclosure if it has received
      the written opinion of its outside counsel that such disclosure must be made
      in
      order not to commit a violation of law.

    

    3.    Coordination
      of Information Exchange.
      To
      coordinate the exchange of Confidential Information, Summus appoints Gary Ban
      and Ruben appoints himself as their respective representatives to disclose
      and
      receive Confidential Information under the terms of this Agreement. Each party
      shall inform its representative of all communications and exchanges of
      Confidential Information to the other party. Either party may change its
      representative upon written notice to the other party.

    

    4.    No
      License.
      Except
      as expressly provided herein, this Agreement shall not be construed as granting
      or conferring, either expressly or impliedly, any right, license or other
      relationship with respect to the Confidential Information furnished by either
      party hereto to the other. Each of Summus and Ruben hereby acknowledges and
      agrees that all Confidential Information, in any form, is and shall remain
      the
      sole and exclusive property of the providing party thereof. No interest under
      or
      in any trade secrets, trademarks, patents, inventions, copyrights or other
      rights is granted by this Agreement or by the disclosure or use of any
      Confidential Information.

    

    5.    Return
      of Confidential Information.
      In the
      event that either party hereto shall (i) communicate in writing that it has
      no
      further interest in pursuing the Project with the other party, or (ii) make
      a
      written request, for any reason whatsoever, for the return of its Confidential
      Information, each party hereto shall:

    

    (a)    promptly
      return all physical embodiments of or containing any Confidential Information
      (including all copies thereof) of the other party hereto then in its possession,
      custody or control, and

    

    (b)    destroy
      all documents, memoranda, notes and other writings whatsoever prepared by or
      on
      behalf of the receiving party based on such Confidential
      Information

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
 

    Notwithstanding
      the return of the Confidential Information, each party and its representatives
      will continue to be bound by its obligations of confidentiality and other
      obligations hereunder.

    

    6.    Compulsory
      Disclosure.
      If
      either party becomes legally compelled by subpoena, civil investigative demand
      or other similar process to disclose any Confidential Information of the other
      party, then the receiving party shall promptly notify the providing party of
      such compulsion so that the providing party shall have the opportunity to object
      to such request or demand and to seek a protective order or other appropriate
      remedy. If such protective order or other remedy is not obtained, or the
      providing party waives compliance with the provisions of this Agreement, the
      receiving party shall furnish only that portion of the Confidential Information
      that is legally required to be disclosed and shall use its best efforts to
      obtain assurances that the Confidential Information will be kept confidential
      by
      the person or persons seeking its disclosure.

    

    7.    Compliance
      with Insider Trading and Public Disclosure Laws.
      Each
      party acknowledges that it may become aware of material, nonpublic information
      concerning the other party in the course of the discussions and negotiations
      contemplated with respect to the Project. Accordingly, each party agrees not
      to:

    

    (a)    effect
      or
      seek, offer or propose (whether publicly or otherwise) to effect, or cause
      or
      participate in or in any way assist any other person to effect or seek, offer
      or
      propose (whether publicly or otherwise) to effect or participate in any trading
      of any securities (or beneficial ownership thereof) of the other
      party;

    

    (b)    disclose
      or "tip" material nonpublic information concerning the other party to any person
      or entity;

    

    (c)    give
      trading advice of any kind to any person or entity concerning the other party;
      or

    

    (d)    except
      with the prior written consent of the other party, take any action that might
      force the other party to make a public announcement under applicable securities
      laws, including, without limitation, Regulation FD. 

    

    8.    Remedies.
      Each
      party shall be responsible for any damages resulting from its breach of this
      Agreement, including damages flowing from the further dissemination of
      Confidential Information by a third party to whom such party, directly or
      indirectly, furnished Confidential Information in breach of this Agreement.
      Each
      party acknowledges that money damages would be both incalculable and an
      insufficient remedy for any breach of this Agreement and that any such breach
      would cause the providing party irreparable harm. Accordingly, in the event
      of
      any breach or threatened breach of this Agreement, the providing party, in
      addition to any other remedies at law or in equity it may have, shall be
      entitled to injunctive relief and specific performance.

    

    9.    Miscellaneous.

    

    (a)    Binding
      Effect.
      Neither
      this Agreement nor any of the rights or obligations of the parties set forth
      herein may be assigned, in whole or in part, by either party without the prior
      written consent of the other party. This Agreement shall be binding upon and
      inure to the benefit of each of the parties and their respective successors
      and
      permitted assigns.

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    (b)    Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal,
      substantive laws of the State of Delaware. The court and authorities of the
      State of Delaware and the federal district courts located within the State
      of
      Delaware shall have the sole jurisdiction and venue over all controversies
      arising in connection with this Agreement, and each party waives any other
      jurisdiction and venue to which it may otherwise be entitled.

    

    (c)    Entire
      Agreement.
      This
      Agreement constitutes the entire agreement and understanding of the parties
      with
      respect to the subject matter hereof and supersedes any prior agreements with
      respect to such subject matter. No amendments or modifications to this Agreement
      shall be valid or binding unless agreed to in writing signed by both
      parties.

    

    (d)    No
      Waiver.
      No
      failure or delay of a party to exercise any power or right under this Agreement
      shall operate as a waiver thereof, nor shall any single or partial exercise
      of
      any such right or power (or any abandonment or discontinuance of steps to
      enforce such a right or power) preclude any other or further exercise thereof
      or
      the exercise of any other right or power.

    

    (e)    Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original and all of which together shall constitute one and the same
      agreement.

    

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
      duly authorized officers as of the last day and year indicated
      below.

     

     

    
      	Summus, Inc.	 	Rich Ruben
	 	 	 
	By:  _______________________	 	_______________________
	
              Gary
                E. Ban

            	 	 
	
              Chief
                Executive Officer 

            	 	 
	 	 	 
	Date: _______________________	 	Date: _______________________
	 	 	 
	 	 	 

    

    

 

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

     

    SCHEDULE
      A

    

    

    The
      parties intend to disclose certain confidential information in connection with
      the following proposed project or venture: 

    

    Evaluation
      and Recommendations of possible acquisition targets. 

    

     

    

    
      	Checklist:	 	 
	 	 	 
	Company:	Summus, Inc.	(Name)
	State Incorporated:	Delaware	 
	Summus Contact:	Gary Ban	 
	 	Chief Executive Officer	(Title)
	 	919-807-5600	(Main Number)
	 	919-807-5611	(Direct)
	 	919-807-5601	(Fax)
	 	gary.ban@summus.com	(E-mail)
	 	 	 
	Legal Company Name:	______________________	 
	State Incorporated:	______________________	 
	Contact:	______________________	(Name)
	 	______________________	(Title)
	Phone:	______________________	(Main Number)
	 	______________________	(Direct)
	 	______________________	(Fax)
	 	______________________	(E-mail)
	 	 	 
	Nature of Confidential Information:
              Technical & Marketing Information_____________________________________________________________________________________________________________________
	___________________________________________________________________________________________________________________________________________________________________________
	___________________________________________________________________________________________________________________________________________________________________________

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