Document:

EXECUTION
        COPY

       

      AMENDMENT
        NO. 5 TO THE

      CREDIT
        AGREEMENT

       

      Dated
        as
        of December 14, 2006     

       

      AMENDMENT
        NO. 5 TO THE CREDIT AGREEMENT
        among
        Chemtura Corporation, a Delaware corporation (the “Company”),
        the
        guarantors parties thereto (the “Guarantors”),
        the
        banks, financial institutions and other institutional lenders parties to
        the
        Credit Agreement referred to below (collectively, the “Lenders”)
        and
        Citibank, N.A., as agent (the “Agent”)
        for
        the Lenders.

       

      PRELIMINARY
        STATEMENTS:

       

      (1)
        The
        Company, the Guarantors, the Lenders and the Agent have entered into a Credit
        Agreement dated as of July 1, 2005, as amended and restated by Amendment
        No. 1
        dated as of December 12, 2005 and further amended by Amendment No. 2 dated
        as of
        December 31, 2005, Amendment No. 3 dated as of December 31, 2005, Amendment
        No.
        4 dated as of May 9, 2006 and the Letter Waiver dated as of March 16, 2006
        (as
        so amended, the “Credit
        Agreement”).
        Capitalized terms not otherwise defined in this Amendment have the same meanings
        as specified in the Credit Agreement.

       

      (2)
        The
        Company, the Guarantors and the Required Lenders have agreed to amend the
        Credit
        Agreement as hereinafter set forth.

       

      (3)
        The
        Required Lenders are, on the terms and conditions stated below, willing to
        grant
        the request of the Company and the Company, the Guarantors and the Required
        Lenders have agreed to amend the Credit Agreement as hereinafter set
        forth.

       

      SECTION
        1. Amendment
        to Credit Agreement.
        The
        Credit Agreement is, effective as of the date hereof and subject to the
        satisfaction of the conditions precedent set forth in Section 2, hereby
        amended as follows:

       

      Section
        5.03(b) is amended (i) by deleting the table and substituting therefor the
        following:

       

      
        	
                Quarter

                Ending
                  On

              	
                 

                Ratio

              
	
                June
                  30, 2005

              	
                3.75
                  : 1.00

              
	
                September
                  30, 2005

              	
                3.75
                  : 1.00

              
	
                December
                  31, 2005

              	
                4.00
                  : 1.00

              
	
                March
                  31, 2006

              	
                4.00
                  : 1.00

              
	
                June
                  30, 2006

              	
                4.00
                  : 1.00

              
	
                September
                  30, 2006

              	
                4.00
                  : 1.00

              
	
                December
                  31, 2006 

              	
                4.00
                  : 1.00

              
	
                March
                  31, 2007 

              	
                4.25
                  : 1.00

              
	
                June
                  30, 2007

              	
                4.25
                  : 1.00

              
	
                September
                  30, 2007 and thereafter

              	
                4.50
                  : 1.00

              

      

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      SECTION
        2. Conditions
        of Effectiveness.
        This
        Amendment shall become effective as of the date first above written when,
        and
        only when, the Agent shall have received counterparts of this Amendment executed
        by the Company, each Guarantor and the Required Lenders or, as to any of
        the
        Lenders, advice satisfactory to the Agent that such Lender has executed this
        Amendment. This Amendment is subject to the provisions of Section 9.01 of
        the
        Credit Agreement.

       

      SECTION
        3. Representations
        and Warranties of the Company.
        The
        Company represents and warrants as follows:

       

      (a)
        Each
        Loan Party and each of its Subsidiaries (i) is a corporation, limited liability
        company, limited partnership, unlimited liability company or other legal
        entity
        duly organized, validly existing and in good standing (or its equivalent)
        under
        the laws of the jurisdiction of its incorporation or formation, except where
        the
        failure to be so duly organized, validly existing or in good standing in
        the
        case of a Subsidiary organized outside of the United States has not had,
        or
        could not reasonably be expected to have, a Material Adverse Effect, (ii)
        is
        duly qualified and in good standing as a foreign corporation or company in
        each
        other jurisdiction in which it owns or leases property or in which the conduct
        of its business requires it to so qualify or be licensed except where the
        failure to so qualify or be licensed would not be reasonably likely to have
        a
        Material Adverse Effect, and (iii) has all requisite corporate, limited
        liability company, partnership, unlimited liability company or other
        organizational (as applicable) power and authority and has all applicable
        governmental authorizations to own or lease and operate its properties and
        to
        carry on its business.

       

      (b)
        The
        execution, delivery and performance by the Company of this Amendment and
        the
        Credit Agreement, as amended hereby, are within the Company’s corporate powers,
        have been duly authorized by all necessary corporate action, and do not (i)
        contravene the Company’s charter or bylaws, (ii) violate any law, rule,
        regulation (including, without limitation, Regulation X of the Board of
        Governors of the Federal Reserve System), order, writ, judgment, injunction,
        decree, determination or award applicable to the Company, (iii) conflict
        with or
        result in the breach of, or constitute a default or require any payment to
        be
        made under, any contract, loan agreement, indenture, mortgage, deed of trust,
        lease or other instrument binding on or affecting the Company, any of its
        Subsidiaries or any of their properties or (iv) except for the Liens created
        under the Loan Documents, result in or require the creation or imposition
        of any
        Lien upon or with respect to any of the properties of the Company or any
        of its
        Subsidiaries. Neither the Company nor any of its Subsidiaries is in violation
        of
        any such law, rule, regulation, order, writ, judgment, injunction, decree,
        determination or award or in breach of any such contract, loan agreement,
        indenture, mortgage, deed of trust, lease or other instrument, the violation
        or
        breach of which would be reasonably likely to have a Material Adverse
        Effect.

       

      (c)
        No
        authorization or approval or other action by, and no notice to or filing
        with,
        any governmental authority or regulatory body or any other third party is
        required for the due execution, delivery and performance by the Company of
        this
        Amendment and the Credit Agreement, as amended hereby, except for those
        authorizations, approvals, actions, notices and filings which have been duly
        obtained, taken, given, waived or made and are in full force and
        effect.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (d)
        This
        Amendment has been duly executed and delivered by each Loan Party. This
        Amendment and the Credit Agreement, as amended hereby, are the legal, valid
        and
        binding obligation of the Company, enforceable against each Loan Party in
        accordance with their terms, except to the extent that such enforcement may
        be
        limited by applicable bankruptcy, insolvency, reorganization, moratorium
        or
        similar laws affecting creditors rights generally and by equitable principles
        (regardless of whether enforcement is sought in equity or at law).

       

      (e)
        There
        is no action, suit, investigation, litigation or proceeding affecting any
        Loan
        Party or any of its Subsidiaries, including any Environmental Action, pending
        or
        threatened before any court, governmental agency or arbitrator that (i) would
        be
        reasonably likely to have a Material Adverse Effect (other than the Disclosed
        Litigation) or (ii) purports to affect the legality, validity or enforceability
        of this Amendment or the Credit Agreement, as amended hereby, and there has
        been
        no material adverse change in the status, or financial effect on any Loan
        Party
        or any of its Subsidiaries, of the Disclosed Litigation.

       

      (f)
        No
        Default has occurred and is continuing.

       

      SECTION
        4. Reference
        to and Effect on the Credit Agreement and the Notes.
        a) On
        and after the effectiveness of this Amendment, each reference in the Credit
        Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import
        referring to the Credit Agreement, and each reference in the Notes and each
        of
        the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or
        words of like import referring to the Credit Agreement, shall mean and be
        a
        reference to the Credit Agreement, as amended by this Amendment.

       

      (b)
        The
        Credit Agreement and the Notes and each of the other Loan Documents, as
        specifically amended by this Amendment, are and shall continue to be in full
        force and effect and are hereby in all respects ratified and confirmed.

       

      (c)
        The
        execution, delivery and effectiveness of this Amendment shall not, except
        as
        expressly provided herein, operate as a waiver of any right, power or remedy
        of
        any Lender or the Agent under the Credit Agreement or any other Loan Document,
        nor constitute a waiver of any provision of the Credit Agreement or any other
        Loan Document.

       

      SECTION
        5. Costs
        and Expenses.
        The
        Company agrees to pay on demand all costs and expenses of the Agent in
        connection with the preparation, execution, delivery and administration,
        modification and amendment of this Amendment and the other instruments and
        documents to be delivered hereunder (including, without limitation, the
        reasonable fees and expenses of counsel for the Agent) in accordance with
        the
        terms of Section 9.04 of the Credit Agreement. 

       

      SECTION
        6. Execution
        in Counterparts.
        This
        Amendment may be executed in any number of counterparts and by different
        parties
        hereto in separate counterparts, each of which when so executed shall be
        deemed
        to be an original and all of which taken together shall constitute but one
        and
        the same agreement. Delivery of an executed counterpart of a signature page
        to
        this Amendment by telecopier shall be effective as delivery of a manually
        executed counterpart of this Amendment.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      SECTION
        7. Governing
        Law.
        This
        Amendment shall be governed by, and construed in accordance with, the laws
        of
        the State of New York.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
        by
        their respective officers thereunto duly authorized, as of the date first
        above
        written.

       

      
        	 	
                CHEMTURA
                  CORPORATION

              
	 	 
	 	
                
                  By:________________________________

                

              
	 	
                Name:

              
	 	
                Title:

              
	 	 
	 	
                A
                  & M CLEANING PRODUCTS, LLC

              
	 	
                AQUA
                  CLEAR INDUSTRIES, LLC

              
	 	
                ASCK,
                  INC.

              
	 	
                ASEPSIS,
                  INC.

              
	 	
                BIOLAB
                  TEXTILE ADDITIVES, LLC

              
	 	
                BIO-LAB,
                  INC.

              
	 	
                CNK
                  CHEMICAL REALTY CORPORATION

              
	 	
                CROMPTON
                  COLORS INCORPORATED

              
	 	
                CROMPTON
                  HOLDING CORPORATION

              
	 	
                CHEMTURA
                  USA CORPORATION

              
	 	
                CROMPTON
                  MONOCHEM, INC.

              
	 	
                GREAT
                  LAKES CHEMICAL CORPORATION

              
	 	
                GREAT
                  LAKES CHEMICAL GLOBAL, INC.

              
	 	
                GT
                  SEED TREATMENT, INC.

              
	 	
                HOMECARE
                  LABS, INC.

              
	 	
                ISCI,
                  INC.

              
	 	
                KEM
                  MANUFACTURING CORPORATION

              
	 	
                MONOCHEM,
                  INC.

              
	 	
                NAUGATUCK
                  TREATMENT COMPANY

              
	 	
                RECREATIONAL
                  WATER PRODUCTS, INC.

              
	 	
                UNIROYAL
                  CHEMICAL COMPANY LIMITED (DELAWARE)

              
	 	
                WEBER
                  CITY ROAD LLC

              
	 	
                WRL
                  OF INDIANA, INC.

              
	 	 
	 	
                By:_______________________

              
	 	
                           
                  Name: Eric Wisnefsky

              
	 	
                           
                  Title:   Treasurer

              
	 	 
	 	
                ENENCO,
                  INCORPORATED

              
	 	 
	 	
                By:_______________________

              
	 	
                           
                  Name: Barry J. Shainman

              
	 	
                           
                  Title:   Secretary

              

      

      

      
        
          Chemtura
            Amendment No. 5

           

        

        
           

          
            

          

        

        
           

        

      

       

      Accepted
        and agreed:

       

       

      CITIBANK,
        N.A.,

      as
        Agent
        and as a Lender

      

       

      By:
         _______________________________

      Name:

      Title:

       

      BANK
        OF
        AMERICA, N.A.

       

      
        By:
           _______________________________

        Name:

        Title:

         

      

      ABN
        AMRO
        BANK N.V.

       

      
        By:
           _______________________________

        Name:

        Title:

         

      

      
        By:
           _______________________________

        Name:

        Title:

         

      

      CREDIT
        SUISSE, CAYMAN ISLANDS BRANCH

       

      
        By:
           _______________________________

        Name:

        Title:

      

       

      
        By:
           _______________________________

        Name:

        Title:

         

      

      MORGAN
        STANLEY BANK

       

      
        By:
           _______________________________

        Name:

        Title:

         

        
          
            Chemtura
              Amendment No. 5

             

          

          
             

            
              

            

          

          
             

          

        

         

      

      THE
        ROYAL
        BANK OF SCOTLAND PLC

       

      
        By:
           _______________________________

        Name:

        Title:

         

      

      WACHOVIA
        BANK, NATIONAL ASSOCIATION

       

      
        By:
           _______________________________

        Name:

        Title:

         

      

      CALYON
        NEW YORK BRANCH

       

      
        By:
           _______________________________

        Name:

        Title:

         

      

      DEUTSCHE
        BANK AG NEW YORK BRANCH

       

      
        By:
           _______________________________

        Name:

        Title:

      

      

      
        By:
           _______________________________

        Name:

        Title:

         

      

      ING
        CAPITAL LLC

       

      
        By:
           _______________________________

        Name:

        Title:

         

      

      SUMITOMO
        MITSUI BANKING CORP., NEW YORK

       

      
        By:
           _______________________________

        Name:

        Title:

         

        
          
            Chemtura
              Amendment No. 5

             

          

          
            2

            
              

            

          

          
             

          

        

         

      

      BANCA
        INTESA S.P.A. NEW YORK BRANCH

       

      
        By:
           _______________________________

        Name:

        Title:

      

      

      
        By:
           _______________________________

        Name:

        Title:

         

      

      BANCA
        NAZIONALE DEL LAVOR SPA, 

      NEW
        YORK
        BRANCH

       

      
        By:
           _______________________________

        Name:

        Title:

      

      

       

      BANK
        OF
        TOKYO-MITSUBISHI UFJ 

      TRUST
        COMPANY, f.k.a. BANK OF 

      TOKYO-MITSUBISHI
        TRUST COMPANY

       

      
        By:
           _______________________________

        Name:

        Title:

      

      

       

      COMMERZBANK
        AG, NEW YORK 

      AND
        GRAND
        CAYMAN BRANCHES

       

      
        By:
           _______________________________

        Name:

        Title:

      

      

      
        By:
           _______________________________

        Name:

        Title:

      

      

      
        
          Chemtura
            Amendment No. 5

           

        

        
          3No.:
                

            	 
	
               

              Name: 

            	 
	
               

              Number
                of Units Subscribed for:

            	 

    

     

    

    

    

    

    

    

    

    FUSION
      TELECOMMUNICATIONS INTERNATIONAL, INC.

    SUBSCRIPTION
      AND RIGHTS AGREEMENT

    

    

    

    

    

    

    November
      17, 2006

    

    

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    OFFERING
      INFORMATION, LEGENDS, AND NOTICES

     

    THE
      SECURITIES OFFERED HEREBY, HAVE NOT BEEN FILED OR REGISTERED WITH OR APPROVED
      BY
      THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”), NOR HAS THE
      COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THE OFFERING MATERIALS.
      NO
      STATE SECURITIES LAW ADMINISTRATOR HAS PASSED ON OR ENDORSED THE MERITS OF
      THIS
      OFFERING OR THE ACCURACY OR THE ADEQUACY OF THE OFFERING MATERIALS. ANY
      REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

     

    IT
      IS INTENDED THAT THE SECURITIES OFFERED HEREBY WILL BE MADE AVAILABLE TO
      ACCREDITED INVESTORS, AS DEFINED IN REGULATION D AND RULE 501 PROMULGATED UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THE SECURITIES OFFERED
      HEREBY ARE BEING OFFERED PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
      REQUIREMENTS OF THE ACT AND APPLICABLE STATE SECURITIES LAWS FOR NONPUBLIC
      OFFERINGS. SUCH EXEMPTIONS LIMIT THE NUMBER AND TYPES OF INVESTORS TO WHICH
      THE
      OFFERING WILL BE MADE AND RESTRICT SUBSEQUENT TRANSFERS OF THE
      INTERESTS.

     

    THE
      SECURITIES OFFERED HEREBY SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN AFFORD
      TO
      SUSTAIN A LOSS OF THEIR ENTIRE INVESTMENT. INVESTORS WILL BE REQUIRED TO
      REPRESENT THAT THEY ARE FAMILIAR WITH AND UNDERSTAND THE TERMS OF THIS
      OFFERING.

     

    NO
      SECURITIES MAY BE RESOLD OR OTHERWISE DISPOSED OF BY AN INVESTOR UNLESS, IN
      THE
      OPINION OF COUNSEL SATISFACTORY TO THE COMPANY, REGISTRATION UNDER THE
      APPLICABLE FEDERAL OR STATE SECURITIES LAWS IS NOT REQUIRED OR COMPLIANCE IS
      MADE WITH SUCH REGISTRATION REQUIREMENTS.

     

    THE
      OFFEREE, BY ACCEPTING DELIVERY OF THE OFFERING MATERIALS, AGREES TO RETURN
      THE
      OFFERING MATERIALS AND ALL ACCOMPANYING OR RELATED DOCUMENTS TO THE COMPANY
      UPON
      REQUEST IF THE OFFEREE DOES NOT AGREE TO PURCHASE ANY OF THE SECURITIES OFFERED
      HEREBY.

     

    ANY
      OFFERING MATERIALS SUBMITTED IN CONNECTION WITH THE PRIVATE PLACEMENT OF THE
      SECURITIES DO NOT CONSTITUTE AN OFFER OR SOLICITATION BY ANYONE IN ANY
      JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS NOT AUTHORIZED. ANY
      REPRODUCTION OR DISTRIBUTION OF ANY OFFERING MATERIALS IN WHOLE OR IN PART,
      OR
      THE DIVULGENCE OF ANY OF THEIR CONTENTS, WITHOUT THE PRIOR WRITTEN CONSENT
      OF
      THE COMPANY, IS PROHIBITED. ANY PERSON ACTING CONTRARY TO THE FOREGOING
      RESTRICTIONS MAY PLACE HIM/HERSELF AND THE COMPANY IN VIOLATION OF FEDERAL
      OR
      STATE SECURITIES LAWS.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    NASAA
      UNIFORM LEGEND

    

    IN
      MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION
      OF
      THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS
      INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE
      SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING
      AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS
      DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THESE
      SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY
      NOT
      BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT, AND THE APPLICABLE
      STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
      INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL
      RISKS
      OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

    

    FOR
      RESIDENTS OF PENNSYLVANIA

    

    THE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE PENNSYLVANIA SECURITIES ACT AND
      MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF WITHIN
      12 MONTHS AFTER THE DATE OF PURCHASE, UNLESS SUBSEQUENTLY REGISTERED UNDER
      THE
      PENNSYLVANIA SECURITIES ACT OR UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED.

    

    EACH
      PERSON WHO ACCEPTS AN OFFER TO PURCHASE SECURITIES EXEMPTED FROM REGISTRATION
      BY
      SECTION 203(d), DIRECTLY FROM THE ISSUER OR AFFILIATE OF THE ISSUER, SHALL
      HAVE
      THE RIGHT TO WITHDRAW HIS ACCEPTANCE WITHOUT INCURRING ANY LIABILITY TO THE
      SELLER, UNDERWRITER (IF ANY) OR ANY OTHER PERSON WITHIN 2 BUSINESS DAYS FROM
      THE
      DATE OF RECEIPT BY THE ISSUER OF HIS WRITTEN BINDING CONTRACT OF PURCHASE OR,
      IN
      THE CASE OF A TRANSACTION IN WHICH THERE IS NO BINDING CONTRACT OF PURCHASE,
      WITHIN 2 BUSINESS DAYS AFTER HE MAKES THE INITIAL PAYMENT FOR THE SECURITIES
      BEING OFFERED.

    

    FOR
      RESIDENTS OF GEORGIA

    

    THESE
      SECURITIES HAVE BEEN ISSUED OR SOLD IN RELIANCE ON PARAGRAPH THIRTEEN (13)
      OF
      CODE SECTION 10-5-9 OF THE GEORGIA SECURITIES ACT OF 1973, AND MAY NOT BE SOLD
      OR TRANSFERRED EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER SUCH ACT OR
      PURSUANT TO AN EFFECTIVE REGISTRATION UNDER SUCH ACT.

    

    
      
         

      

      
        -ii-

        
          

        

      

      
         

      

       

    

    FOR
      RESIDENTS OF FLORIDA

    

    PURSUANT
      TO THE LAWS OF THE STATE OF FLORIDA, IF SALES ARE MADE TO FIVE (5) OR MORE
      INVESTORS IN FLORIDA, ANY FLORIDA INVESTOR MAY, AT ITS OPTION, WITHDRAW, UPON
      WRITTEN (OR TELEGRAPHIC) NOTICE, ANY PURCHASE HEREUNDER WITHIN A PERIOD OF
      THREE
      (3) DAYS AFTER (A) THE INVESTOR FIRST TENDERS OR PAYS TO THE COMPANY AN AGENT
      OF
      THE COMPANY OR AN ESCROW AGENT THE CONSIDERATION REQUIRED HEREUNDER, (B) THE
      INVESTOR DELIVERS ITS EXECUTED SUBSCRIPTION AGREEMENT, OR (C) THE AVAILABILITY
      OF THAT PRIVILEGE IS COMMUNICATED TO SUCH INVESTOR, WHICHEVER OCCURS
      LATER.

    

    

    

    
      
         

      

      
        -iii-

        
          

        

      

      
         

      

    

    SUBSCRIPTION
      AND RIGHTS AGREEMENT

    

    FUSION
      TELECOMMUNICATIONS INTERNATIONAL, INC.

    

    Subscription
      and Rights Agreement (this “Subscription
      Agreement”)
      with
      respect to the offering (the “Offering”)
      of up
      to 70 units (the “Units”)
      of
      FUSION TELECOMMUNICATIONS INTERNATIONAL, INC., a Delaware corporation (the
      “Company”),
      each
      such Unit consisting of 100 shares of Series A-1 Cumulative Convertible
      Preferred Stock (“Convertible
      Preferred Stock”)
      and
      accompanying Warrants to purchase shares of the Company’s common stock, par
      value $.01 per share1 (the
      “Common
      Stock”).
      The
      conversion shares and the warrant shares underlying each Unit may not be
      separately transferred. The Units together with the Convertible Preferred Stock,
      the Warrants and the securities underlying each Unit are sometimes collectively
      referred to as “Securities”).
      The
      Certificate of Rights and Designations of the Convertible Preferred Stock and
      the form of Warrant are included in the Booklet, which accompanies this
      Subscription Agreement.

    

    For
      purposes of this Offering, the minimum offering shall mean thirty (30) Units
      (the “Minimum
      Offering”)
      and a
      minimum gross amount raised of $3,000,000 (the “Minimum
      Amount”).
      The
      maximum offering shall mean seventy (70) Units (the “Maximum
      Offering”)
      and a
      maximum gross amount raised of $7,000,000 (the “Maximum
      Amount”).
      The
      minimum investor subscription amount is $100,000 to purchase one (1) Unit
      (“Minimum
      Investor Subscription Amount”);
      the
      Company reserves the right to accept subscriptions for lesser
      amounts.

    

    The
      Company, on notice to the purchasers of Units, may, within 30 days of the last
      closing with respect to the Maximum, exercise its option to sell an additional
      $3,000,000 of Units (30 Units), upon the same terms and conditions as set forth
      herein (the “Over
      Allotment Option”).
      If
      the Company exercises its Over Allotment Option, then the Offering Period
      defined below may be extended for a period not to exceed an additional 30
      days.

    

    The
      Units
      are being offered by the Company. The Company, however, reserves the right
      to
      retain registered broker-dealers, “finders”, and other individuals and entities
      authorized by federal and applicable state securities laws to assist with the
      distribution of the Securities offered hereby. In such event, the Company shall
      pay a selling commission or finders fees to registered broker-dealers,
“finders”, individuals and entities legally authorized to receive such
      commissions or fees, as applicable (collectively, the “Selling
      Agents”)
      of a
      sum ordinarily not to exceed ten percent (10%) of the investor subscription
      amount received, provided that such payments are permitted under federal and
      applicable state securities laws. Such broker’s compensation may include
      warrants as well.

    

    Subscriptions
      to purchase Units will be solicited until the earliest of: (i) November 30,
      2006, unless extended by the Company in its sole discretion without notice
      for a
      period of up to an additional 90 days, (ii) the sale of the entire Offering,
      or
      (iii) if the Company elects to exercise its Over Allotment Option, for a period
      of up to an additional 30 days (the “Offering
      Period”).

    
      
        

      
 150%
      of the
      number of shares of Common Stock into which Holder's Preferred Stock is
      convertible.

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    A.    General.

    

    (1) The
      undersigned hereby subscribes for and agrees to purchase from the Company,
      and
      the Company agrees to sell to the undersigned, such number of Units as is set
      forth on the signature page hereof at a price per Unit of $100,000.

    

    (2) The
      undersigned herewith tenders to the Company the entire amount of the purchase
      price by check made payable to the order of “JP Morgan Chase f/b/o Fusion
      Telecommunications International, Inc.” or by wire transfer of immediately
      available funds to:

    

    
      	Bank Name:	 JP Morgan Chase
	Bank Address:	 1166 Avenue of the Americas - 15th
              Floor
	 	 New York, New York 10036
	ABA Number	 021000021
	Account Name:	 Fusion Money Market -
              Escrow
              Account
	Account Number:	 777-763281

    

     

    (3) The
      undersigned herewith delivers the completed and signed Subscription Agreement
      and completed and signed Qualified Prospective Purchaser Questionnaire for
      Units
      of Fusion Telecommunications International, Inc. (“Qualified
      Purchaser Questionnaire”)
      to the
      Company at:

    

    Fusion
      Telecommunications International, Inc.

    420
      Lexington Avenue, Suite 1718

    New
      York,
      NY 10170

    Attn: Matthew
      D. Rosen, President and CEO

    

    B.    Securities
      offered will not be registered under the Securities Act of 1933, as
      amended

    

    The
      undersigned acknowledges that (i) the Securities will not be registered under
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder (the “1933
      Act”),
      or
      the securities laws of any state; (ii) absent an exemption, any transfer of
      the
      Securities would require registration; (iii) the Securities are being offered
      for sale in reliance upon exemptions from registration contained in the 1933
      Act
      and applicable state laws; and (iv) the Company's reliance upon such exemption
      is based in part upon the undersigned's representations, warranties and
      agreements contained in this Subscription Agreement and in the Qualified
      Purchaser Questionnaire that the undersigned is also delivering to the
      Company.

    

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

       

    

    C.    Representations,
      Warranties, Acknowledgements and Agreements

    

    In
      order
      to induce the Company to accept this Subscription Agreement, the undersigned
      represents, warrants, acknowledges and covenants to the Company as
      follows:

    

    (1) The
      undersigned understands that (i) this Subscription Agreement may be accepted
      or
      rejected in whole or in part by the Company in its sole and absolute discretion,
      and (ii) this Subscription Agreement shall survive the undersigned's death,
      disability or insolvency, except that the undersigned shall have no obligation
      in the event that this Subscription Agreement is rejected by the Company. In
      the
      event that the Company does not accept the undersigned's subscription, or if
      the
      Offering is terminated for any reason, the undersigned's subscription payment
      (or portion thereof, as the case may be) will be returned to the undersigned
      without interest or deduction.

    

    (2) The
      undersigned has carefully read this Subscription Agreement (including, without
      limitation, the Appendix A entitled “Risk
      Factors”),
      the
      Qualified Purchaser Questionnaire, the Outline of Proposed Terms, the Company’s
      Annual Report on Form 10-K for the fiscal year ended December 31, 2005
      (including, without limitation, the risks set forth under the heading
“Risk
      Factors”),
      and
      the Company’s Quarterly Report on Form 10-Q for the quarterly period ended
      September 30, 2006, its exhibits attached hereto and thereto, as well as such
      other materials as the Company deems necessary to the Offering (collectively,
      the “Offering
      Materials”).
      In
      making the decision to invest in the Securities, the undersigned has relied
      solely upon the information provided by the Company in the Offering Materials.
      To the extent necessary, the undersigned has discussed with his, her or its
      counsel the representations, warranties and agreements which the undersigned
      makes by signing this Subscription Agreement, the applicable limitations upon
      the undersigned's resale of the Securities, and the investment, tax and legal
      consequences of this Subscription Agreement. The undersigned disclaims reliance
      on any statements made or information provided by any person or entity in the
      course of the undersigned’s consideration of an investment in the Securities
      other than the Offering Materials.

    

    (3) The
      undersigned understands that no federal or state agency has made any finding
      or
      determination regarding the fairness of the Offering, or any recommendation
      or
      endorsement of the Offering.

    

    (4) The
      undersigned is purchasing the Securities for the undersigned's own account,
      with
      the intention of holding the Securities for investment purposes, with no present
      intention of dividing or allowing others to participate in this investment
      or of
      reselling or otherwise participating, directly or indirectly, in a distribution
      of the Securities; and shall not make any sale, transfer or other disposition
      of
      the Securities without registration under the 1933 Act and applicable state
      securities laws unless an exemption from registration is available under those
      laws. The undersigned is not acquiring any portion of the Securities, or any
      interest therein, on behalf of another person. No person other than the
      undersigned has any direct or indirect beneficial interest in the Securities
      subscribed for hereunder by the undersigned. The undersigned, if an entity,
      was
      not formed for the purpose of purchasing the Securities.

    

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

       

    

    (5) The
      undersigned's overall commitment to investments which are not readily marketable
      is not disproportionate to the undersigned's net worth, and the undersigned's
      investment in the Securities will not cause such overall commitment to become
      excessive.

    

    (6) The
      undersigned, if an individual, has adequate means of providing for his or her
      current needs and personal and family contingencies and has no need for
      liquidity in his or her investment in the Securities.

    

    (7) The
      undersigned is an “accredited investor” as that term is defined in Rule 501(a)
      under Regulation D promulgated by the Securities and Exchange Commission (the
      “SEC”)
      under
      the 1933 Act. The undersigned is financially able to bear the economic risk
      of
      this investment, including the ability to afford holding the Securities for
      an
      indefinite period or to afford a complete loss of this investment.

    

    (8) The
      address shown under the undersigned's signature at the end of this Subscription
      Agreement is the undersigned's principal residence if he or she is an
      individual, or its principal business address if a corporation or other
      entity.

    

    (9) The
      undersigned, together with any offeree representatives of the undersigned (as
      identified in the Qualified Purchaser Questionnaire) has such knowledge and
      experience in financial business matters as to be capable of evaluating the
      merits and risks of an investment in the Securities. The undersigned
      acknowledges that the Offering Materials may not contain all information that
      is
      necessary to make an investment decision with respect to the Company and the
      Securities and that the undersigned must rely on his, her or its own examination
      of the Company and the terms and conditions of the Offering prior to making
      any
      investment decision with respect to the Securities.

    

    (10) The
      undersigned has been given the opportunity to ask questions of and receive
      answers from the Company and its executive officers concerning the business
      and
      operations of the Company and the terms, provisions, and conditions of the
      Offering and to obtain any such additional information that the undersigned
      deems necessary or advisable to verify the accuracy of the information contained
      in the Memorandum, or such other information as the undersigned desired in
      order
      to evaluate an investment in the Company; and the undersigned availed himself,
      herself or itself of such opportunity to the extent considered appropriate
      in
      order to evaluate the merits and risks of the proposed investment.

    

    (11) The
      undersigned has made an independent evaluation of the merits of the investment
      and acknowledges the high risk nature of the investment including, without
      limitation, the Risk Factors set forth in Appendix A.

    

    (12) The
      undersigned has accurately completed the Qualified Purchaser Questionnaire
      provided herewith and has executed such Qualified Purchaser Questionnaire and
      any applicable exhibits thereto.

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

       

    

    (13) 

    

    (i) The
      undersigned understands that none of the Securities have been registered under
      the 1933 Act or any state securities laws in reliance on exemptions for private
      offerings; the Securities cannot be resold or otherwise disposed of unless
      they
      are subsequently registered under the 1933 Act and applicable state securities
      laws or an exemption from registration is available. The certificate(s)
      representing the Securities will bear a legend substantially similar to the
      legend set forth immediately below until (i) such Securities shall have been
      registered under the 1933 Act and effectively disposed of in accordance with
      a
      registration statement, or (ii) in the opinion of counsel reasonably
      satisfactory to the Company such securities may be sold without registration
      under the 1933 Act:

    

    “THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE "1933 ACT"), OR THE "BLUE SKY" OR SECURITIES LAWS OF ANY STATE AND MAY
      NOT
      BE OFFERED, SOLD, PLEDGED, HYPOTHECATED, ASSIGNED OR TRANSFERRED EXCEPT (i)
      PURSUANT TO A REGISTRATION STATEMENT UNDER THE 1933 ACT WHICH HAS BECOME
      EFFECTIVE AND IS CURRENT WITH RESPECT TO THESE SECURITIES, OR (ii) PURSUANT
      TO A
      SPECIFIC EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT BUT ONLY UPON A HOLDER
      THEREOF FIRST HAVING OBTAINED THE WRITTEN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO THE COMPANY, THAT THE PROPOSED DISPOSITION IS CONSISTENT WITH
      ALL APPLICABLE PROVISIONS OF THE 1933 ACT AS WELL AS ANY APPLICABLE "BLUE SKY"
      OR SIMILAR SECURITIES LAWS."

    

    (ii) The
      undersigned understands that in the absence of registration by the Company,
      the
      Securities will not be, and, except as set forth in Section D of this
      Subscription Agreement, the undersigned will have no rights to require that
      the
      Securities shall be, registered under the 1933 Act or any state securities
      laws;
      the undersigned may have to hold the Securities indefinitely and it may not
      be
      possible for the undersigned to liquidate his, her or its investment in the
      Company; and the undersigned should not purchase any Securities unless he,
      she
      or it can afford a complete loss of his, her or its investment and bear the
      burden of such loss for an indefinite period of time.

    

    (iii) The
      undersigned understands there is no public market for the Securities and that
      no
      public market may develop for any such Securities. The undersigned understands
      that the provisions of Rule 144 promulgated under the 1933 Act to permit resales
      of the Securities are not available for at least one (1) year after the same
      class of securities is registered under the 1933 Act and the Securities Exchange
      Act of 1934, as amended (the “1934
      Act”),
      and
      there can be no assurances that any such class of securities will ever be
      registered under the 1933 Act or the 1934 Act, or even if such class of
      securities is registered under the 1933 Act and the 1934 Act, that the
      conditions necessary thereafter to permit routine sales of the Securities under
      Rule 144 will ever be satisfied, and, if Rule 144 should become available,
      routine sales made in reliance on its provisions could be made only in limited
      amounts and in accordance with the terms and conditions of Rule 144. The
      undersigned further understands that in connection with the sale of securities
      for which Rule 144 is not available, compliance with some other exemption from
      registration will be required. The undersigned understands, subject to the
      provisions of Section D of this Subscription Agreement, that the Company is
      under no obligation to the undersigned to register any such class of securities
      or to comply with the conditions of Rule 144 or take any other action necessary
      in order to make available any exemption for the resale of the Securities
      without registration.

    

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

       

    

    (14) The
      undersigned, if an individual, is at least 21 years of age.

    

    (15) If
      at any
      time prior to issuance of the Securities to the undersigned, any representation
      or warranty of the undersigned shall no longer be true, the undersigned promptly
      shall give written notice thereof to the Company specifying which
      representations and warranties are not true and the reason therefore, whereupon
      the undersigned's subscription may be rejected by the Company in whole or in
      part.

    

    (16) Notwithstanding
      the place where this Subscription Agreement may be executed by any of the
      parties hereto, all of the terms, provisions, and conditions hereof shall be
      construed in accordance with and governed by the laws of the State of
New
      York,
      without giving effect to its conflict of laws principles. Any dispute that
      may
      arise out of or in connection with this Subscription Agreement shall be
      adjudicated before a court located in New
      York
      City
      and the
      parties hereto submit to the exclusive jurisdiction and venue of the state
      and
      local courts of the State of New
      York
      located
      in New
      York
      City
      and of
      the federal courts in the Southern
      District
      of New
      York
      with
      respect to any action or legal proceeding commenced by any party, and
      irrevocably waive any objection they now or hereafter may have respecting the
      venue of any action or proceeding brought in such a court or respecting the
      fact
      that such court is an inconvenient forum, relating to or arising out of this
      Subscription Agreement or any acts or omissions relating to the sale of the
      Securities, and the undersigned consents to the service of process in any such
      action or legal proceeding by means of registered or certified mail, return
      receipt requested, in care of the address set forth below or such other address
      as the undersigned shall furnish in writing to the Company.

    

    (17) THE
      UNDERSIGNED HEREBY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING,
      DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT, FRAUD
      OR
      OTHERWISE) IN ANY WAY ARISING OUT OF OR IN CONNECTION WITH THIS SUBSCRIPTION
      AGREEMENT OR THE UNDERSIGNED'S PURCHASE OF THE SECURITIES.

    

    (18) The
      undersigned acknowledges that he, she or it understands the meaning and legal
      consequences of the representations, warranties and acknowledgments contained
      in
      this Subscription Agreement and in the Qualified Purchaser Questionnaire, and
      hereby agrees to indemnify and hold harmless the Company, and each of its
      stockholders, officers, directors, affiliates, controlling persons, agents
      and
      representatives, from and against any and all loss, damage, expense, claim,
      action, suit or proceeding (including the reasonable fees and expenses of legal
      counsel) as incurred arising out of or in any manner whatsoever connected with
      (i) a breach of any representation or warranty of the undersigned contained
      in
      this Subscription Agreement or in the Qualified Purchaser Questionnaire (ii)
      any
      sale or distribution by the undersigned in violation of the 1933 Act or any
      applicable state securities laws or (iii) any untrue statement of a material
      fact made by the undersigned and contained herein or in the Qualified Purchaser
      Questionnaire, or omission to state herein or in the Qualified Purchaser
      Questionnaire, a material fact necessary in order to make the statements
      contained herein or in the Qualified Purchaser Questionnaire, in light of the
      circumstances under which they were made, not misleading. The undersigned
      acknowledges that such damage could be substantial since (a) the Securities
      are
      being offered without registration under the 1933 Act in reliance upon the
      exemption pursuant to Section 4(2) and/or Regulation D of the 1933 Act for
      transactions by an issuer not involving a public offering and, in various
      states, pursuant to exemptions from registration, (b) the availability of such
      exemptions is, in part, dependent upon the truthfulness and accuracy of the
      representations made by the undersigned herein and in its Qualified Purchaser
      Questionnaire, and (c) the Company will rely on such representations in
      accepting the undersigned's Subscription Agreement.

    

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

       

    

    (19) The
      undersigned is not subscribing for the Securities as a result of or subsequent
      to any advertisement, article, notice or other communication published in any
      newspaper, magazine or similar media or broadcast over television or radio,
      any
      seminar or meeting, or any solicitation of a subscription by a person not
      previously known to the undersigned in connection with investments in securities
      generally.

    

    (20) Unless
      otherwise indicated on a separate sheet of paper that details any such
      affiliation submitted by the undersigned to the Company along with this
      completed Subscription Agreement, the undersigned is not affiliated directly
      or
      indirectly with a member broker-dealer firm of the National Association of
      Securities Dealers, Inc. as an employee, officer, director, partner or
      shareholder or as a relative or member of the same household of an employee,
      director, partner or shareholder of an NASD member broker-dealer
      firm.

    

    (21) Except
      as
      expressly provided herein, this Subscription Agreement contains the entire
      agreement between the parties with respect to the transactions contemplated
      hereunder and may be amended only by a writing executed by all of the parties
      hereto. The undersigned represents that he, she or it has full power and
      authority (corporate, statutory or otherwise) to execute and deliver this
      Subscription Agreement and the other Offering Materials to which the undersigned
      is a party and to purchase the Securities. The execution, delivery and
      performance of this Subscription Agreement and the Qualified Purchaser
      Questionnaire will not: (i) violate, conflict with or result in a default under
      any provision of the Certificate or By-Laws (or analogous organizational
      documents), if any, of the undersigned; or (ii) violate or result in a
      violation of, or constitute a default (whether after the giving of notice,
      lapse
      of time or both) under, any provision of any law, regulation or rule, or any
      order of, or any restriction imposed by any court or other governmental agency
      applicable to the undersigned, except for those which do not, or are not
      reasonably likely to, adversely affect the undersigned’s ability to perform its
      obligations under this Subscription Agreement and the Qualified Purchaser
      Questionnaire and to consummate the transactions contemplated hereby and
      thereby. This Subscription Agreement constitutes the legal, valid and binding
      obligation of the undersigned, enforceable against the undersigned in accordance
      with its terms. This Subscription Agreement supersedes all prior arrangements
      or
      understandings with respect thereto, whether oral or written. The terms and
      conditions of this Subscription Agreement shall inure to the benefit of and
      be
      binding upon the parties and their respective successors, heirs and
      assigns.

    

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

       

    

    (22) The
      undersigned understands that the Company intends to use the net proceeds from
      the Offering for working capital and general corporate purposes.

    

    In
      order
      to induce the undersigned to execute and deliver this Subscription Agreement,
      the Company represents, warrants, and covenants to the undersigned as
      follows:

    

    (1) The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware and is duly authorized to transact
      business as a foreign corporation in the State of New York. The Corporation
      has
      full power and authority to own its properties and to carry on its business
      as
      currently conducted.

     

    (2) The
      execution, delivery and performance by the Company of this Subscription
      Agreement and the Offering and sale of Units to accredited investors
      contemplated hereby shall, assuming the representations and warranties of the
      undersigned are correct, be in compliance with the exemptions from registration
      set forth in Regulation D and/or Section 4(2) of the 1933 Act and applicable
      state securities “blue sky” laws, and the Company, in reliance on the
      representations and warranties of the undersigned, shall make all filings
      required to qualify for such exemptions. No additional permit, license,
      exemption, consent, authorization or approval of, or the giving of any notice
      by
      the Company to, any governmental or regulatory body, agency or authority is
      required in order for the Company to execute, deliver and perform its
      obligations hereunder, which has not been made, or will not when required be
      made, by the Company. No notice by the Company to any third party, and no
      consent or approval of any third party, of the Company’s execution, delivery and
      performance of this Subscription Agreement is required which has not been given
      or obtained.

    

    (3) The
      Company has the requisite power and authority to execute and deliver this
      Subscription Agreement, and perform its obligations herein, and consummate
      the
      transactions contemplated hereby. Upon the acceptance of the undersigned’s
      subscription by the Company and the execution of this Subscription Agreement
      by
      the Company, this Subscription Agreement will be a valid, legal and binding
      obligation of the Company enforceable against the Company in accordance with
      its
      terms, except to the extent that enforceability may be limited by applicable
      bankruptcy, insolvency or similar laws affecting the enforcement of creditors’
rights generally and subject to general principles of equity (regardless of
      whether such enforcement is considered in a proceeding at law or at
      equity).

     

    (4) The
      Company has reserved sufficient conversion shares and warrant shares for
      conversion of the Preferred Stock and exercise of the Warrants,
      respectively.

    

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

       

    

    (5) The
      Units
      and the conversion shares and warrant shares underlying the Units to be issued
      to the undersigned pursuant to this Subscription Agreement, when issued and
      delivered in accordance with the terms of this Subscription Agreement, in each
      case, shall be duly authorized, validly issued, fully paid and
      non-assessable.

    

    D.    Registration
      Rights

    

    The
      undersigned shall have the registration rights set forth in this Section
      D.

    

    (1) The
      Company shall use its best efforts to file a registration statement with the
      SEC
      within ninety (90) days of the initial closing date in order to register the
      resale of the conversion shares and the warrant shares (are hereinafter
      collectively referred to in this Section D as the “Registrable
      Securities”)
      under
      the 1933 Act. In addition, the Company shall use its best efforts to cause
      such
      registration statement to become effective as soon as practicable after the
      date
      of such initial filing.

    

    The
      obligation of the Company under this Section D(1) shall be limited to the above
      described demand registration statement; provided, however, that
      any
      registration shall not count as a demand registration under this Section D(1)
      until a registration statement including all of the Registrable Securities
      requested to be included thereon has been declared effective by the Staff of
      the
      SEC, and such registration statement has remained continuously effective for
      as
      long as required by Section D(2)(i) below.

    

    (2) In
      addition to the covenants set forth in Section D(1), the Company
      shall:

    

    (i) cause
      registration statement with
      respect to the Registrable Securities to remain effective for
      the
      earliest of (A) the second anniversary of the date the registration statement
      has been declared effective, (B) such time as all of the Registrable Securities
      issued or issuable hereunder can be sold by the Participating Holders, herein
      defined, immediately without compliance with the registration requirements
      of
      the Securities Act pursuant to Rule 144(k) under the Securities Act
      ("Rule
      144”)
      and (C)
      the date all of the Registrable Securities issued shall have been sold by the
      Participating Holders (such period, the "Registration
      Period”);

    

    (ii) prepare
      and file with the SEC such amendments to such registration statement and
      supplements to the prospectus contained therein as may be necessary to keep
      such
      registration statement effective for the applicable period in accordance with
      the provisions of Section D(2)(i) above;

    

    (iii) furnish
      to any holder participating in such registration (a “Participating
      Holder”)
      such
      reasonable number of copies of the registration statement, preliminary
      prospectus, final prospectus and such other documents as such holder may
      reasonably request in order to facilitate the public offering of the
      Participating Holder’s securities;

    

    (iv) use
      its
      best efforts to register or qualify the Registrable Securities covered by such
      registration statement under such state securities or blue sky laws of such
      jurisdictions as such Participating Holders may reasonably request in writing
      within twenty (20) days following the original filing of such registration
      statement, except that the Company shall not for any purpose be required to
      execute a general consent to service of process or to qualify to do business
      as
      a foreign corporation in any jurisdiction wherein it is not so
      qualified;

    

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

       

    

    (v) notify
      the Participating Holders, promptly after it shall receive notice thereof,
      of
      the time when such registration statement or a supplement to any prospectus
      forming a part of such registration statement has become effective;

    

    (vi) notify
      the Participating Holders promptly of any request by the Staff of the SEC for
      the amending or supplementing of such registration statement or prospectus
      or
      for additional information;

    

    (vii) prepare
      and file with the SEC any amendments or supplements to such registration
      statement or prospectus which is required under the 1933 Act or the rules and
      regulations promulgated thereunder in connection with the distribution of the
      Registrable Securities by the Participating Holders;

    

    (viii) prepare
      and promptly file with the SEC and promptly notify the Participating Holders
      of
      the filing of such amendment or supplement to such registration statement or
      prospectus as may be necessary to correct any statements or omissions if, at
      the
      time when a prospectus relating to such Registrable Securities is required
      to be
      delivered under the 1933 Act, any event shall have occurred as the result of
      which any such prospectus or any other prospectuses then in effect would include
      an untrue statement of a material fact or omit to state any material fact
      necessary to make the statements therein, in the light of the circumstances
      in
      which they were made, not misleading;

    

    (ix) advise
      the Participating Holders promptly after it shall receive notice or obtain
      knowledge thereof, of the issuance of any stop order by the Division of
      Enforcement of the SEC suspending the effectiveness of such registration
      statement or the initiation or threatening of any proceeding for that purpose
      and promptly use its best efforts to prevent the issuance of any stop order
      or
      to obtain its withdrawal if such stop order should be issued;

    

    (x) indemnify
      and hold harmless each Participating Holder against any and all losses, claims,
      damages or liabilities to which such Participating Holder shall become subject,
      under the 1933 Act or otherwise, that arise out of or are based upon any untrue
      statement or alleged untrue statement of any material fact contained in the
      effective registration statement or any prospectus that forms a part thereof
      or
      any amendment or supplement thereto, or arise out of or are based upon any
      omission or alleged omission to state therein a material fact required to be
      stated therein or necessary to make the statements there in not misleading;
      provided,
      however,
      that no
      such indemnification shall be available to any Participating Holder (and the
      Participating Holder shall indemnify and hold harmless the Company) with respect
      to, and to the extent there is liability attributable to, written information
      provided by a Participating Holder to the Company for use in such registration
      statement or prospectus thereunder or any amendment or supplement thereto,
      or
      any related preliminary prospectus; and

    

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

       

    

    (xi) cause
      its
      executive officers to cooperate in good faith with any managing underwriter
      in
      connection with taking all actions reasonably necessary to successfully
      consummate the public offering, including but not limited to, active
      participation at so-called “road shows” to the extent requested by the managing
      underwriter, and using best efforts to obtain as high a valuation of the Company
      as possible.

    

    (3)

    (i) All
      fees,
      costs and expenses of and incidental to the registration of Registrable
      Securities, shall be borne by the Company; provided,
      however,
      that
      Participating Holders shall bear their pro rata share of the underwriting
      discount, if any, and commissions and transfer taxes, and any professional
      fees
      or costs of accounting, financial or legal advisors to any of the Participating
      Holders.

    

    (ii) The
      fees,
      costs and expense of registration to be borne by the Company as provided in
      Section D(3)(i) above shall include, without limitation, all registration,
      filing fees, exchange or market listing fees, printing expenses, fees and
      disbursements of counsel and accountants for the Company, and all legal fees
      and
      disbursements and other expenses of complying with state securities or blue
      sky
      laws of any jurisdictions in which the securities to be offered are to be
      registered and qualified.

    

    (4) Upon
      the
      proper and lawful transfer of any of the Securities by any holder thereof prior
      to such time as the Securities have been resold pursuant to a registration
      statement contemplated by this Section D, the registration rights attendant
      to
      such Securities shall be transferable hereunder if:

    

    (i) such
      Participating Holder gives prior written notice to the Company;

    

    (ii) such
      transferee agrees to execute a counterpart to this Subscription Agreement
      agreeing to comply with the terms and provisions of this Subscription Agreement,
      whereupon such transferee shall have the benefits of, and shall be subject
      to
      the restrictions contained in, this Subscription Agreement as if such transferee
      had originally been a party hereto;

    

    (iii) such
      transfer is otherwise in compliance with this Subscription Agreement;
      and

    

    (iv) such
      transfer is otherwise effected in accordance with applicable securities laws.
      

    

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

       

    

    E.    Notice
      Provisions

    

    Any
      and
      all notices, demands or requests required or permitted to be given under this
      Subscription Agreement shall be given in writing and sent, by registered or
      certified U.S. mail, return receipt requested, by hand, or by overnight courier,
      addressed to the parties hereto at their addresses set forth above or such
      other
      addresses as they may from time-to-time designate by written notice, given
      in
      accordance with the terms of this Section E, together with copies thereof as
      follows:

    

    In
      the
      case of the Company to:

    

    Fusion
      Telecommunications International, Inc.

    420
      Lexington Avenue, Suite 1718

    New
      York,
      NY 10170

    Attn: Matthew
      D. Rosen, President and CEO

    Fax:
      (212) 972-7884

    

    with
      a
      copy to:

    

    Gersten
      Savage LLP

    600
      Lexington Avenue, 9th
      Floor

    New
      York,
      New York 10022-6018

    Attention:
      Jay Kaplowitz, Esq.

    Fax:
      (212) 980-5192

    

    In
      the
      case of any owner of equity securities of the Company, to:

    

    The
      address of such equity owner on the books and records of the
      Company.

     

    Notice
      given as provided in this Section shall be deemed effective: (i) on the business
      day hand delivered (or, if it is not a business day, then the next succeeding
      business day thereafter), (ii) on the first business day following the sending
      thereof by overnight courier, and (iii) on the seventh calendar day (or, if
      it
      is not a business day, then the next succeeding business day thereafter) after
      the depositing thereof into the exclusive custody of the U.S. Postal Service.
      As
      used herein, the term business day (other than Saturday or Sunday) shall mean
      any day when commercial banks are open in the State of New York to accept
      deposits.

    
 

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

       

    

    ALL
      SUBSCRIBERS MUST COMPLETE THIS PAGE.

    

    

    

    

    

    _________________________________

    Exact
      Name in Which Title is to be Held

    

    

    Amount
      Subscribed for: $__________

    

    Units
      Subscribed for: ______________

    

    Type
      of
      Ownership (Check One):

    

                      
       
      Individual

                      
       
      Joint
      tenants with rights of survivorship

                      
       
      Tenants
      in common

                      
       
      Tenants
      by the entirety

                      
       
      Corporation

                      
       
      Limited
      Liability Company

                      
       
      Partnership

                      
       
      Limited
      Liability Partnership

                      
       
      Limited
      Partnership

                      
       
      Trust

                      
       
      Other
      (specify)

    

    

     

    
      	 	 	 	 
	Residence Address	 	City, State and Zip Code	 
	 	 	 	 
	 	 	 	 
	Mailing Address (if not residence)	 	City, State and Zip Code	 

    

     

    
      
        
          	
                  Social
                    Security or Federal Tax Identification Number of
                    Purchaser:

                	 

        

      

    

     

    
 

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

       

    

    IN
      WITNESS WHEREOF, the undersigned has executed this Subscription and Rights
      Agreement on this       
      day of
      ________, 2006.

    

    PURCHASER:

    

    

    

    
      
        	 	 	 	 
	 (Signature of Purchaser)	 	 (Name Typed or Printed)	 
	 	 	 	 
	 	 	 	 
	 (Signature of Co-Purchaser)	 	 (Name Typed or Printed)	 

    

     

    ACCEPTED
      as of the       
      day of
      _________, 2006

     

    FUSION
      TELECOMMUNICATIONS INTERNATIONAL, INC.

    

    

    By:
      _________________________________

          
      Matthew
      D. Rosen, President and CEO

     

    
      	 REGISTERED REPRESENTATIVE:	 	 BRANCH OFFICE MANAGER:
	 (Sign and Print Name)	 	 (Sign and Print Name)
	 	 	 
	 	 	 

    

    
      

    
 

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

       

    

    EXECUTION
      BY SUBSCRIBER WHO IS A NATURAL PERSON

    

    

                                                                                          

    Exact
      Name in Which Title is to be Held

    

     

    
      
        	 	 	 
	 (Signature)	 	 (Signature)

      

    (If
      Joint
      Tenant or Tenants in Common, both persons must sign
      and
      this page must contain all information for both
      persons.)

     

    
      	 	 	 
	Name (Please Print)	 	Name (Please Print)
	 	 	 
	 	 	 
	Residence Address	 	Residence Address
	 	 	 
	 	 	 
	Telephone Number	 	Telephone Number
	 	 	 
	 	 	 
	
              Social
                Security Number

            	 	
              Social
                Security Number

            

    

    
 

    ACCEPTED
      this       
       day   ,
      2006,
      on behalf of the Company.

    

    FUSION
      TELECOMMUNICATIONS INTERNATIONAL, INC.

    

    

    

    By: _________________________________

    Matthew
      D. Rosen, President and CEO

    

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

       

    

    EXECUTION
      BY SUBSCRIBER WHICH IS AN ENTITY

    

    (Corporation,
      Partnership, Trust, Etc.)

    

    

                                                                                                           

    Name
      of
      Entity (Please Print)

    

    

                                                                                                                                       
  

    Address
      of Principal Office of Entity

    

    

    BY:
      ___________________________ 

    NAME:

    TITLE:
      

    

    (seal)

    

    Attest:     

             
      (If Entity is a Corporation)

    

    
      	 	
                                                                          
                

              Address

               

               

                                                                          
                

              Telephone
                Number

               

               

                                                                          
                

              Taxpayer
                Identification Number 

            

    

    

    

    ACCEPTED
      this        
       day
      of   ,
      2006,
      on behalf of the Company.

    

    FUSION
      TELECOMMUNICATIONS INTERNATIONAL, INC.

    

    

    

    By:
             

    Matthew
      D. Rosen, President and CEO

     

    

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    Appendix
      A

    Risk
      Factors

    

    If
      the
      Company does not sell at least 30 Units with gross proceeds of $3,000,000,
      then
      it may have to modify its business plan and/or seek to raise additional capital
      from equity or debt sources, which may impose limits on its financial and
      operating flexibility. The Company cannot assure prospective investors that
      any
      financing arrangements will be available or, if available, that it will be
      on
      acceptable terms.

    

    Even
      if
      the Company sells the Maximum and the entire Over Allotment, the Company’s
      ability to meet its projected growth plans may require additional cash resources
      from equity or debt sources, which also may impose limits on its financial
      and
      operating flexibility. Again, the Company cannot assure you that any financing
      arrangements will be available or, if available, that it will be on acceptable
      terms.

     

    See
      also the Risk Factors set forth in the Company’s Quarterly Report on Form 10-Q
      for the quarterly period ended September 30, 2006 and the Risk Factors set
      forth
      the Company’s Annual Report on Form 10-K for the fiscal year ended December 31,
      2005.

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