Document:

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      PRIVATE
        LABEL PURCHASE AGREEMENT

      

      This
        Private Label Purchase Agreement is made and entered into as of this
        23rd
        day of
        May, 2007 (“Effective Date”), by and between Fusion Telecommunications
        International, Inc. (“Fusion”), a company organized under the laws of the State
        of Delaware, having its principal place of business at 420 Lexington Avenue,
        Suite 1718, New York, New York 10170 and Digital FX International, Inc.,
        a
        company organized under the laws of the State of Florida (“DFX”). Fusion and DFX
        are sometimes referred to collectively as the “Parties” or individually as a
“Party.”

      

      WHEREAS,
        Fusion, either directly or through its affiliates, shall collaborate with
        DFX to
        develop certain customized software as described in Exhibit A attached hereto
        (the “Custom Software”) and shall provide to DFX certain services as described
        in Exhibit C (“Services”); and

      

      WHEREAS,
        DFX desires to resell the Services offered by Fusion, packaged with other
        services and equipment marketed by DFX and/or its affiliates, to third parties
        (“Customers”) under a private label, in accordance with the terms and conditions
        set forth herein; 

      

      NOW,
        THEREFORE, in consideration of the mutual covenants herein contained and
        other
        valuable consideration, the parties hereto agree as follows:

      

      
        	1.	
                TERM.

              

      

      

      This
        Agreement shall become effective and the Parties’ obligations shall commence
        upon the Effective Date, and continue for a period of five (5) years from
        such
        date except as expressly set forth in this Agreement (the “Initial Term”). This
        Agreement will be automatically renewed on a two (2) year basis after the
        expiration of the Initial Term or any subsequent term (each such two-year
        renewal period, a “Renewal Term”). If either Party desires to cancel this
        Agreement upon the expiration of the Initial Term or any Renewal Term, it
        shall
        give the other Party written notice of its intent to cancel at least three
        (3)
        months prior to the expiration of the then current Initial or Renewal Term.
        The
        Initial Term and any Renewal Terms shall be referred to hereunder, collectively,
        as the “Term” of this Agreement.

       

      
        
           

        

        
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        	2.	
                PURCHASE
                  AND RESALE OF SERVICES; DEVELOPMENT
                  OF CUSTOM
                  SOFTWARE.

              

      

       

      2.1 General.
        DFX and
        Fusion shall collaborate to develop the Custom Software, and bear the respective
        responsibilities and costs set forth on Exhibit A attached hereto. Both parties
        shall dedicate the resources necessary to complete the development project
        in a
        timely manner, including assigning a project manager who shall be in
        communication with the other party as necessary.

      

      DFX
        shall
        purchase from Fusion, and Fusion shall sell to DFX, such Services as set
        forth
        on Exhibit C, and as may be ordered by DFX from time to time for resale to
        its
        Customers. DFX will pay Fusion for all Services purchased at the prices set
        forth on Exhibit C. DFX shall pay Fusion for a Customer’s Services from the date
        of initial activation of that Customer by Fusion through the date of Fusion’s
        receipt from DFX of a disconnect order for that Customer or last activity
        on the
        Customer’s account, whichever is later.

      

      2.2 Additional
        Services.
        From
        time to time, Fusion may make available for purchase by DFX additional wholesale
        communications products and services other than the Services listed on Exhibit
        C
        on the date hereof. If DFX desires to purchase any such additional product
        or
        service, the price of such additional product or service, and the terms and
        conditions on which it will be provided to DFX, will be determined by mutual
        agreement of the parties hereto and Exhibit C will be modified
        accordingly.

      

      2.3 Required
        Documentation.
        Prior
        to the delivery by Fusion to DFX of any Services, which would be subject
        to any
        federal, state or local excise taxes, sales taxes or use taxes, DFX shall
        deliver to Fusion all applicable exemption forms and certificates reasonably
        required to avoid the collection and remittance of such taxes by Fusion on
        the
        Services sold to DFX. 

      

      2.4 Exclusivity;
        Ownership Rights.

      

      (a) Fusion
        agrees that the components of the custom Zimbra Mail software designated
        and
        defined on Exhibit A attached hereto hereinafter referred to as the “Exclusive
        Software” or the “Zimbra Mail Software” will be provided by Fusion exclusively
        to DFX and that Fusion shall not sell the Exclusive Software to any other
        third
        party before the later of (i) the expiration or termination of the Term of
        this
        Agreement, or (ii) the tenth anniversary of the Effective Date of this
        Agreement.

      

      
        
           

        

        
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      (b) DFX
        agrees that Customers acquired by DFX will be activated on the Fusion network,
        and will at all times during the Term hereof remain on the Fusion network.
        Fusion agrees that the names, addresses and other contact information for
        DFX
        Customers (the “DFX Customer Information”) is Confidential Information of DFX,
        as defined in Section 7.1 of this Agreement, and that its designation as
        such in
        this Section 2.4 (c) shall constitute clear designation of all such information
        as contemplated in Section 7.1. As between DFX and Fusion, the Parties agree
        that DFX is the sole and exclusive owner of the DFX Customer
        Information.

      

      (c) The
        provisions of this Section 2.4 shall survive termination of this
        Agreement.

      

      2.5 Limited
        Warranty.
        DFX
        shall notify Fusion of any problems or Customer complaints associated with
        the
        Service(s), including, but not limited to loss of service, as soon as reasonably
        practicable after receiving notice or actual knowledge of such problem or
        Customer complaint. The parties will jointly develop reasonable credit
        guidelines in writing. If DFX gives a Customer a credit on account of any
        such
        problem or Customer complaint pursuant to the credit guidelines, then Fusion
        shall allow a credit to DFX equal to the same percentage of its actual cost
        for
        the services that were credited (i.e. Customer is billed $20.00 - Fusion
        bills
        DFX $10.00 for the services - DFX gives Customer 50% credit ($10.00)- Fusion
        would give DFX credit of $5.00).

      

      DFX
        ACKNOWLEDGES AND AGREES THAT, EXCEPT AS EXPRESSLY PROVIDED OTHERWISE HEREIN,
        FUSION MAKES NO WARRANTY, EITHER EXPRESS OR IMPLIED, CONCERNING ITS FACILITIES,
        PRODUCTS OR SERVICES, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF
        MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE. In no event shall
        Fusion be liable for any act or omission of either the carrier from whom
        it
        obtains network services or any other entity furnishing equipment, products
        or
        services to DFX or its Customers, nor shall Fusion be liable for any damages
        or
        losses due to the fault or negligence of DFX or its Customers. Except as
        otherwise expressly provided herein, Fusion shall not have liability for
        damages
        for any mistake, omission, interruption, delay, error or defect in transmission
        (herein called a “Failure of Performance”) occurring in the furnishing of
        Services hereunder. In the event of a Failure of Performance, Fusion will
        use
        its reasonable efforts to correct such failure as soon as reasonably practicable
        following notification. EXCEPT
        AS
        OTHERWISE EXPRESSLY PROVIDED HEREIN, IN
        NO
        EVENT SHALL FUSION
        BE
        LIABLE TO DFX OR ANY OF THE CUSTOMERS OF DFX OR ANY OTHER THIRD PARTY FOR
        FAILURE OF PERFORMANCE, INCLUDING WITHOUT LIMITATION, FOR ANY DAMAGES, EITHER
        DIRECT, INDIRECT, CONSEQUENTIAL, SPECIAL INCIDENTAL, ACTUAL, PUNITIVE, OR
        ANY
        OTHER DAMAGES, AND FOR ANY LOST PROFITS OF ANY KIND OR NATURE WHATSOEVER,
        ARISING OUT OF MISTAKES, ACCIDENTS, ERRORS, OMISSIONS, INTERRUPTIONS, OR
        DEFECTS
        IN TRANSMISSION OR PROVISIONING, OR DELAYS, INCLUDING THOSE WHICH MAY BE
        CAUSED
        BY REGULATORY OR JUDICIAL AUTHORITIES, ARISING OUT OF OR RELATING TO THIS
        AGREEMENT OR THE OBLIGATIONS OF FUSION
        PURSUANT
        TO THIS AGREEMENT. FUSION
        MAKES NO
        WARRANTY TO DFX, CUSTOMER OR ANY OTHER PERSON OR ENTITY, WHETHER EXPRESS,
        IMPLIED, OR STATUTORY, AS TO THE DESCRIPTION, QUALITY, MERCHANTABILITY,
        COMPLETENESS OR FITNESS FOR ANY PARTICULAR PURPOSE OR ANY SERVICE PROVIDED
        HEREUNDER OR DESCRIBED HEREIN, OR AS TO ANY OTHER MATTER, ALL OF WHICH
        WARRANTIES BY FUSION
        ARE
        HEREBY EXCLUDED AND DISCLAIMED. For purposes of this Section, the term “Fusion”
shall be deemed to include Fusion, its shareholders, directors, officers,
        attorneys, employees, affiliates and any person or entity assisting Fusion
        in
        the performance of this Agreement.

       

      
        
           

        

        
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      2.6 Marketing
        Materials and Expenses.
        Fusion
        assumes no responsibility for any marketing materials used by DFX unless
        such
        materials were prepared and provided by Fusion to DFX. DFX shall not: (a)
        use
        any marketing materials which refer in any way to Fusion or any of its
        subsidiaries or brands, unless expressly approved in writing by Fusion prior
        to
        their use; (b) conduct any telemarketing of the Services that mentions Fusion
        or
        any of its subsidiaries or brands, unless the telemarketing plan and script
        have
        been approved in advance in writing by Fusion; or (c) use the services of
        any
        employees of Fusion or any of its subsidiaries, unless expressly approved
        in
        writing by Fusion prior to such use. DFX agrees to indemnify and hold harmless
        Fusion, its shareholders, directors, officers, employees, agents and advisors
        from and against any claims, demands, actions, liabilities, costs or other
        losses arising out any representation made, or information contained, in
        marketing materials or telemarketing efforts that do not comply with this
        Section. Neither Party shall use the other Party's name, trade names,
        trademarks, service marks or logos without the express written consent of
        the
        other Party.

       

      2.7 Liability
        for Marketing Expenses and Taxes.
        Any and
        all expenses incurred by DFX in promoting the Services, soliciting orders
        for
        the Services and commissions paid to distributors shall be the sole and
        exclusive responsibility of DFX. Fusion shall have no responsibility to
        subsidize, reimburse, pay or otherwise contribute funds to cover such expenses
        incurred by DFX; and Fusion shall not have the authority to incur any such
        expenses on behalf of DFX without the express prior written consent of DFX.
        DFX
        shall have sole responsibility for the payment of any and all applicable
        commissions, taxes, surcharges, fees, workers compensation liability,
        unemployment liability or other assessments relating to its marketing and/or
        resale of the Services. 

       

      
        
           

        

        
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      2.8 Private
        Label.
        DFX
        shall, at its own expense, brand the Services as its own with no reference
        to
        Fusion, except as mutually agreed by the Parties in writing. 

      

      2.9 Solicitation
        of Customers.
        During
        the Term of this Agreement, Fusion will not knowingly solicit DFX Customers
        nor
        will DFX knowingly solicit Fusion customers.

      

      2.10 Support
        for Training of DFX Sales Personnel.
        Fusion
        shall provide a reasonable amount of initial training on the Services to
        those
        DFX employees responsible for the training of DFX sales personnel. Training
        will
        take place at Fusion’s corporate offices unless otherwise agreed. In the event
        that DFX requests training at a facility other than Fusion’s corporate offices,
        DFX will pay Fusion’s costs and expenses related to the offsite training. All
        travel expenses incurred by DFX personnel during training shall be the sole
        responsibility of DFX.

      

      2.11 Customer
        Support.
        During
        the Term of this Agreement, DFX shall provide all Tier 1 customer support,
        including, but not limited to, initial answering of Customer calls and emails,
        resolving basic Service issues, resolving billing issues, and entering network
        trouble tickets. Fusion will provide DFX with FAQs and answers related to
        such
        Tier 1 customer support. Fusion will provide Tier 2 and Tier 3 customer support,
        including, but not limited to, testing related to network and/or routing
        issues,
        resolving network problems, making routing (LCR) changes, and resolving complex
        Service issues. Fusion agrees to make its support services hereunder available
        twenty-four hours a day, seven days a week globally,, and to address any
        network
        level one (material) trouble ticket for Tier 2 and Tier 3 support within
        twenty-four hours of actual receipt of such ticket; and Fusion will use its
        reasonable efforts to correct the trouble reported on the ticket as soon
        as
        reasonably practicable following notification. Fusion will provide DFX with
        forms and a description of the process to create and submit such trouble
        tickets. Each Party shall be responsible for the costs and arrangements for
        their obligations under this section. 

      

      2.13 Customer
        Billing.
        DFX
        will bear all responsibility for the billing of its Customers. Fusion will
        provide to DFX the information necessary to calculate the amounts payable
        by
        each of the DFX Customers with respect to each billing period, exclusive
        of
        taxes and regulatory fees, and DFX shall electronically bill each Customer
        under
        DFX’s private label. DFX shall be liable for the calculation and payment of all
        taxes associated with the billing of its Customers.

       

      
        
           

        

        
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      2.14 DFX
        Wholesale Payments to Fusion.
        

      

      (a) Pre-Pay.
        Prior
        to Fusion’s obligation to provide Services hereunder, Fusion shall provide DFX
        with an invoice reflecting the charges applicable to the respective order
        for
        Services, adjustments and other service charges along with any past due amounts
        owing Fusion. Payment of the invoice in full (“Pre-payment”) must be received by
        Fusion prior to Fusion’s obligation to provide and continue to provide Service
        as set forth in this Agreement. DFX shall maintain a pre-payment equal to
        at
        least ***** times their prior two weeks usage. All payments made by DFX to
        Fusion must be “good funds”, in that they must be in the form of a certified
        check or wire. The initial pre-payment is non-refundable. In the event the
        Service usage and Service Charges exceed the pre-payment, or if DFX does
        not
        replenish the pre-payment as requested by Fusion, Fusion shall have the right
        to
        immediately terminate Service and all Customer accounts without notice to
        DFX
        and its Customers and without any liability therefor.

      

      (b) Disputes.
        If DFX
        disputes any calculation or amount shown on an invoice, it shall notify Fusion
        of such dispute and the basis therefore within one hundred twenty (120) days
        of
        the receipt of such statement or the disputed shall be deemed waived. Fusion
        shall respond to DFX in writing within ten (10) business days of its receipt
        of
        DFX’s notice. Notwithstanding the above, in the event that DFX disputes Fusion’s
        computation of amounts due and owing under an invoice, DFX shall nevertheless
        pay all charges listed in such invoice, and concurrently itemize and support
        any
        requested adjustments in a format specified by Fusion.

      

      (c) DFX
        may
        purchase certain amounts of Services to be provided gratis to Customers on
        a
        promotional basis, at a price to be mutually agreed by the Parties.

      

      (d) DFX
        shall
        have full responsibility for the filing and remittance of any and all federal,
        state and local excise taxes, sales taxes, use taxes and regulatory fees
        billed
        to and collected from Customers with respect to Services. DFX shall remit
        all
        such taxes and regulatory fees to the entities having jurisdiction over such
        taxes and regulatory fees on a timely basis. 

      

      (e) Collection
        Efforts.
        DFX
        shall be responsible for all collection efforts involving its Customers.
        

       

      
        
           

        

        
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      (f) 
        On-Line Access.
        Fusion
        will provide DFX with on-line access to selected customer data pertinent
        to
        DFX’s Customers. All necessary specifications for establishing such access will
        be furnished by Fusion to DFX. All reasonable out-of-pocket costs incurred
        in
        establishing such access, including hardware and software costs, if applicable,
        will be borne by DFX.  

      

      2.15 E911.
        Fusion
        shall notify DFX when it believes DFX is required by Federal Communications
        Commission (“FCC”) to offer E911 service to its Customers. DFX shall be
        responsible for the provision of E911 service to its Customers and for all
        E911
        customer notice requirements and acknowledgments. For the avoidance of any
        doubt, notwithstanding Fusion’s obligation to notify DFX when it believes a
        particular services is subject to E911, the ultimate decision and responsibility
        to provide E911 shall be borne by DFX. At the request of Fusion, DFX shall
        provide evidence satisfactory to Fusion’s counsel of its compliance with the
        E911 regulations of the FCC. If DFX should request it, Fusion, through its
        E911
        vendor, will provide E911 service on a resale basis to DFX’s Customers.

      

      2.16 Service
        Terms and Conditions.
        DFX
        will cause each Customer to execute a Customer Service Agreement in the form
        attached hereto as Exhibit E, which may be an on-line only
        agreement.

      

      3. ORDER
        PROCEDURES.

      

      3.1 Order
        Processing Procedures.
        All
        orders for Services to DFX Customers shall be submitted by DFX to Fusion
        in
        accordance with such order processing procedures as may be established by
        Fusion
        from time to time. In connection therewith, Fusion shall make available to
        DFX
        an electronic order entry system, together with such related systems
        documentation as shall be reasonably required to properly operate such system.
        In addition, Fusion shall provide reasonable initial training to the individuals
        responsible for training DFX’s order entry personnel in the use of such system.
        Such training will take place at Fusion’s corporate facilities unless otherwise
        agreed. In the event that DFX requests the initial training be conducted
        at a
        facility other than Fusion’s corporate offices, DFX will pay Fusion’s costs and
        expenses related to the offsite training.

      

      3.2 Required
        Information.
        Each
        order submitted by DFX shall constitute a representation and warranty by
        DFX
        that the Services ordered are for resale by DFX. In
        addition, each order shall contain such other information as shall be reasonably
        required by Fusion from time to time. If DFX submits an order for Services
        which
        is incomplete, or which otherwise fails to comply with the order processing
        procedures established by Fusion from time to time, Fusion may, in its sole
        discretion, either return the order to DFX for completion or correction,
        or
        attempt to process the order in the condition submitted by DFX. 

       

      
        
           

        

        
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      4. REPRESENTATIONS
        AND WARRANTIES.

      

      4.1 DFX
        represents and warrants (a) DFX is in compliance with all applicable laws,
        rules, and regulations relating to its marketing activities; (b) DFX has
        been
        duly formed under the laws of the state in which it was organized, and is
        validly existing and in good standing under the laws of the jurisdiction
        identified in the first paragraph of this Agreement; (c) the execution, delivery
        and performance by DFX of this Agreement are within DFX’s corporate powers, have
        been duly authorized by all necessary corporate action, and do not contravene
        (i) its certificate of incorporation or by-laws or (ii) any law or contractual
        restriction binding on or affecting DFX; (d) neither DFX nor any of its
        directors, officers or other principals has been found guilty of: (i) violating
        any statute or regulation governing telemarketing or the marketing of Services;
        or (ii) any offense involving consumer fraud; (e) there is no pending or
        threatened action or proceeding affecting DFX before any court, governmental
        agency or arbitrator which involves allegations of such violations or which
        may
        materially adversely affect DFX’s ability to perform its obligations under this
        Agreement; and (f) this Agreement is the legal, valid and binding obligation
        of
        DFX enforceable against DFX in accordance with its terms.

      

      4.2 Fusion
        represents and warrants (a) Fusion has been duly formed under the laws of
        the
        state in which it was organized, and is validly existing and in good standing
        under the laws of the jurisdiction identified in the first paragraph of this
        Agreement; (c) the execution, delivery and performance by Fusion of this
        Agreement are within Fusion’s corporate powers, have been duly authorized by all
        necessary corporate action, and do not contravene (i) its certificate of
        incorporation or by-laws or (ii) any law or contractual restriction binding
        on
        or affecting Fusion; (d) there is no pending or threatened action or proceeding
        affecting Fusion before any court, governmental agency or arbitrator which
        may
        materially adversely affect Fusion’s ability to perform its obligations under
        this Agreement; and (e) this Agreement is the legal, valid and binding
        obligation of Fusion enforceable against Fusion in accordance with its
        terms.

      

      4.3 Each
        Party hereby agrees that its shareholders, directors, officers, employees,
        agents or contractors shall not make, authorize or offer, or cause to be
        made or
        offered, any payment, loan or gifted money or anything of value directly
        or
        indirectly to: (i) any official or employee of any government, or agency
        or
        instrumentality thereof: (ii) any political party or official thereof or
        any
        candidate for political office: (iii) any person; under circumstances in
        which
        the shareholders, directors, officers, employees, agents or contractors of
        the
        Party know, or have reason to know, that all or any portion of such money
        or
        thing of value shall be offered are given, directly or indirectly, to any
        person
        named in clauses (i) and (ii) above to influence a decision or to gain advantage
        to the Party or its shareholders, directors, officers, employees, agents
        or
        subcontractors, or to retain business for or with, or directing business
        to, the
        Party, or in connection with any transaction relating to this Agreement,
        which
        could result in violation of the U.S. Foreign Corrupt Practices Act, as amended
        and any other law, regulation, order, decree or directive having the force
        of
        law and relating to bribery, kick-backs, or similar business practices. For
        purposes of this agreement, the term “official” shall mean and include any
        employee or officer in public service or in the private sector, any employee
        of
        official or any governmental or quasi-governmental department, agency or
        instrumentality thereof, or any person acting in an official capacity for
        or on
        behalf of any such government or department, agency or
        instrumentality.

       

      
        
           

        

        
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      4.4 Each
        party represents and warrants that that it shall be the owner of or otherwise
        possess the right to grant to the other party, as specifically provided herein,
        the rights in and to their software to the extent provided herein, and to
        their
        knowledge that the use of such software as contemplated herein shall not
        violate
        the copyright, trademark, patent or other rights of any third party. The
        provisions of this Section 4.4 shall survive termination of this
        Agreement.

      

      5.0 TERMINATION.
        

      

      5.1 Description.
        Each of
        the following events, separately, shall constitute an “Event of
        Default”:

      

      (a) Either
        Party hereto shall fail to pay when due any amount owed to the other Party
        pursuant to this Agreement, and any such failure shall continue unremedied
        for
        five (5) business days after written notice;

      

      (b) There
        shall be a material interruption, delay, error or defect in transmission
        (herein
        called a “Failure of Performance”) occurring in the furnishing of substantially
        all of the Services hereunder that is not corrected within 72
        hours
        after written notice of such Failure of Performance is received by
        Fusion;

      

      (c) Any
        representation or warranty made by a Party hereto under or in connection
        with
        this Agreement shall prove to have been incorrect in any material respect
        when
        made;

       

      
        
           

        

        
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      (d) Either
        Party hereto shall fail to perform or observe in any material respect any
        material covenant contained in this Agreement, other than a failure described
        in
        clause (a) or (b) of this Section 5.1 of this Agreement, and any such failure
        shall remain unremedied for thirty (30) days after written notice thereof
        shall
        have been given to the breaching Party by the other Party;

      

      (e) Any
        action or omission by either Fusion, on the one hand, or by DFX or any of
        its
        Customers on the other hand, which directly or indirectly violates applicable
        federal, FCC, foreign and/or state regulatory rules and policies or any other
        governmental authority and which materially adversely impacts the other Party,
        shall have occurred, and such act or omission, if unintentional, shall remain
        unremedied for thirty (30) days after the breaching Party shall have received
        actual knowledge thereof; 

      

      (f) The
        institution of any proceeding, voluntary or involuntary, in bankruptcy,
        insolvency, dissolution or liquidation by or against either Party hereto,
        if
        such proceeding is not dismissed within 45 days; or

      

      (g) The
        applicable statutes, rules, or regulations of any authority having jurisdiction
        over either Party hereto are substantially changed in such a manner as to
        render
        such Party’s performance under this Agreement uneconomical or
        impossible.

      

      5.2 Default
        by DFX.
        Upon
        the occurrence of any material Event of Default involving DFX, Fusion shall
        have
        the right to (i) suspend Services under this Agreement Customer accounts;
        (ii) terminate this Agreement and any other agreements or instruments
        delivered to Fusion in connection with this Agreement; (iii) declare all
        amounts payable by DFX to Fusion hereunder immediately due and payable; and
        (iv)
        exercise all other remedies available to it under this Agreement and such
        other
        agreements and instruments or otherwise available at law or in
        equity.

      

      5.3 Default
        by Fusion.
        Upon
        the occurrence of any material Event of Default involving Fusion, DFX shall
        have
        the right to (i) terminate this Agreement and any other agreements or
        instruments delivered to Fusion in connection with this Agreement; (ii) obtain
        the release from escrow of the “Escrow Materials” as provided in Section 5.7
        hereof; and (ii) exercise all other remedies available to it under this
        Agreement and such other agreements or instruments or otherwise available
        at law
        or in equity.

       

      
        
           

        

        
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      5.4 Cumulative
        Remedies.
        Each
        Party’s rights and remedies hereunder shall be cumulative and the exercise by a
        Party of any particular right or remedy shall not prevent such Party from
        exercising any other right or remedy.

      

      5.5 Termination
        Upon Default.
        Upon
        the occurrence of an Event of Default, the non-defaulting Party may terminate
        this Agreement immediately by delivering a written notice of termination
        to the
        defaulting Party. 

       

      5.6 No
        Release from Obligations.
        The
        expiration or termination of this Agreement shall not release either Party
        from
        any liability, obligation or agreement, which, pursuant to any provision
        of this
        Agreement, is to survive or be performed after such expiration or
        termination.

      

      5.7 Software
        Escrow Agreement.
        In
        order to induce DFX to enter into this Agreement, Fusion agrees that
        simultaneously with the execution of this Agreement, Fusion shall enter into
        a
        Software Escrow Agreement (the “Escrow Agreement”), with the following
        individuals, counsel for the respective parties serving jointly as escrow
        agent,
        until successors for either or both of them shall be named by mutual agreement
        of the Parties:

      

        
          	 	
                  William
                    R. Heitz, Esq.

                	
                  Jeanne
                    Drewsen, Esq.

                
	 	
                  Heitz
                    & Associates, P.C.

                	
                  Attorney
                    at Law

                
	 	
                  345
                    Woodcliff Drive 

                	
                  250
                    Mercer Street, C505

                
	 	
                  Fairport,
                    New York 14450

                	
                  New
                    York, New York 10012

                

        

      

      

      (the
        “Escrow Agent”), which Escrow Agreement shall be substantially in the form of
        the escrow agreement attached hereto as Exhibit F, including without limitation
        the following releasing events: Fusion terminating its business, or terminating
        the part of its business that provides the services and software that are
        the
        subject of this Agreement; or Fusion filing for bankruptcy, becoming insolvent,
        materially breaching this Agreement, or failing to provide maintenance of
        the
        licensed software. Pursuant to the Escrow Agreement Fusion shall deposit
        with
        the Escrow Agent: (i) all technical information, including the source code
        and
        the documentation that relate to the software that would be required in order
        for DFX to continue to exercise its rights under this Agreement in the event
        Fusion ceases to operate as a business, and (ii) a letter of direction
        authorizing Fusion’s underlying supplier to enter directly into an agreement
        with DFX to provide the Services to DFX pursuant to this Agreement in the
        event
        of the occurrence of a releasing event as set forth in the Escrow Agreement
        (collectively, the “Escrow Materials”). The Escrow Materials shall only be used
        by DFX to continue the provision of services to its end users and may not
        be
        used for any other purpose (resale, licensing, or otherwise).

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      6.0 INDEMNIFICATION.

      

      Each
        Party hereto (the “Indemnifying Party”) hereby agrees to be solely responsible
        for the performance of its acts, duties and responsibilities under this
        Agreement, and for the acts and/or omissions, duties and responsibilities
        of its
        directors, officers, employees, members and agents; and each Indemnifying
        Party
        further agrees to indemnify the other Party (the “Indemnified Party”) and its
        subsidiaries and affiliates and each of their shareholders, directors, officers,
        employees, affiliates and agents, and to hold harmless the Indemnified Party
        and
        its subsidiaries and affiliates and each of their shareholders, directors,
        officers, employees, affiliates and agents, and at the Indemnifying Party’s
        expense, to defend the Indemnified Party and its subsidiaries and affiliates
        and
        each of their shareholders, directors, officers, employees, affiliates and
        agents, from and against any claims, demands, causes of action, loss, cost
        and
        expense, arising from, in connection with or based upon (i) the actions or
        omissions of the Indemnifying Party, its shareholders, directors, officers,
        employees or agents, and, in the case of DFX, its Customers and members;
        (ii)
        any third party claim, including governmental entities; and (iii) the breach
        of
        either Party’s obligations, representations or warranties pursuant to this
        Agreement. The provisions of this Section 6.0 shall survive termination of
        this
        Agreement.

      

      7.0 CONFIDENTIALITY.
        

      

      7.1 Each
        Party acknowledges that the other Party may disclose confidential information
        (“Confidential
        Information”)
        to it
        in the performance of this Agreement. Each Party further acknowledges the
        other
        Party's assertion that its Confidential Information is deemed to include
        valuable trade secrets and confidential business information proprietary
        to that
        Party. Confidential information will be clearly marked as such or if provided
        orally, confirmed in writing with one (1) business day of disclosure.
        Accordingly, each Party shall: (a) hold the Confidential Information
        disclosed by the other Party confidential; (b) use and disclose such
        Confidential Information only with the receiving Party's employees and
        contractors who have a need to know and only for the purposes of this Agreement,
        except as may be permitted in a written agreement signed by the disclosing
        Party
        or as required under applicable laws; and (c) protect such Confidential
        Information from access, use, and disclosure that is not strictly required
        for
        the performance of this Agreement. 

      

      7.2 The
        receiving Party will not have any obligations under this Agreement with respect
        to a specific portion of the Confidential Information of the disclosing Party,
        if such receiving Party can demonstrate that such portion of the Confidential
        Information: (i) was in the public domain at the time it was disclosed to
        the
        receiving Party, or subsequently entered the public domain, through no fault
        of
        the receiving Party; (ii) was rightfully communicated to the receiving Party
        by
        a third party without any obligation of confidence; or (iii) was independently
        developed by employees or agents of the receiving Party without reference
        to any
        information communicated to the receiving Party.

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      7.3 The
        Parties hereby agree that the confidentiality and non-use undertakings reflected
        in this section shall survive the termination of this Agreement for a period
        of
        two (2) years following the disclosure date or the date this Agreement is
        terminated, whichever is later.

      

      8.0 GENERAL
        PROVISIONS

      

      8.1 Relationship
        of the Parties.
        Nothing
        in this Agreement shall be construed to create the relationship of employment,
        agency, partnership, joint venture or otherwise nor will this agreement be
        construed to expressly or implicitly imply that Fusion is a participant in
        any
        of DFX’s marketing or membership activities. 

      

      8.2 Enforcement.
        In the
        event that any provision of this Agreement or any word, phrase, clause, sentence
        or other portion thereof should be held to be unenforceable or invalid for
        any
        reason, such provision or portion thereof shall be modified or deleted in
        such a
        manner so as to make this Agreement, as modified, legal and enforceable to
        the
        fullest extent permitted under applicable laws.

      

      8.3 Entire
        Agreement.
        This
        Agreement, including any Exhibits hereto (the terms and conditions of which
        are
        expressly incorporated into this Agreement as if fully set forth herein),
        constitutes the entire Agreement and understanding between the Parties with
        respect to its subject matter, is intended as a complete and exclusive statement
        of the terms of their agreement, and supersedes any prior agreements or
        understandings between the Parties relating to its subject matter. 

      

      8.4 Waiver.
        Any
        failure on the part of any Party hereto to comply with any of its obligations,
        agreements or conditions hereunder may be waived by any other Party to whom
        such
        compliance is owed. Any waiver must be in writing signed by the Party to
        whom
        compliance is owed. No waiver of any provision of this Agreement shall be
        deemed, or shall constitute, a waiver of any other provision, whether or
        not
        similar, nor shall any waiver constitute a continuing waiver.

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      8.5 Governing
        Law.
        This
        Agreement shall be governed by, construed under and interpreted in accordance
        with the laws of the State of New York without regard to the conflicts of
        law
        principles thereof. 

      

      8.6 Notices.
        All
        notices, requests, demands, waivers and other communications required or
        permitted to be given under this Agreement shall be in writing and shall
        be
        deemed to have been duly given if delivered personally (by courier service
        or
        otherwise) or mailed, certified or registered mail with postage prepaid,
        or sent
        by confirmed telecopier, as follows:

      

      If
        to
        Fusion:

      

      Fusion
        Telecommunications International, Inc.

      Attn:
        Chief Executive Officer

      420
        Lexington Avenue, Suite 1718

      New
        York,
        New York 10170

      Facsimile:
        (212) 972-7884

      

      With
        copies to:

       

      

        
          	
                  Heitz
                    & Associates, P.C.

                	
                  Fusion
                    Telecommunications International, Inc.

                
	
                  345
                    Woodcliff Drive

                	
                  1475
                    West Cypress Creek Road, Suite 204

                
	
                  Fairport,
                    New York 14450

                	
                  Ft.
                    Lauderdale, Florida 33309

                
	
                  Attention:
                    William R. Heitz, Esq.

                	
                  Attention:
                    Chief Financial Officer

                
	
                  Facsimile:
                    (585) 387-0130

                	
                  Facsimile:
                    (954) 331-2456

                

        

      

      
If
        to
        DFX:

      

      Digital
        FX International, Inc.

      Attn:
        Chief Executive Officer

      3035
        East
        Patrick Lane,
        Suite
        #9 

      Las
        Vegas, Nevada 89120

      Facsimile:
        702- 

      

      with
        a
        copy to:

      

      Jeanne
        Drewsen, Esq.

      Attorney
        At Law

      250
        Mercer Street Suite C505

      New
        York,
        New York 10012

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      or
        to
        such other person or address as either Party shall specify by notice in writing
        to the other Party. Any such notice shall be deemed to have been given (a)
        upon
        actual delivery, if delivered by hand, (b) on the third (3rd) business day
        following deposit of such notice, properly addressed with postage prepaid,
        with
        the United States Postal Service if mailed by registered or certified mail,
        return receipt requested, or (c) upon sending such notice, if sent via
        facsimile, with confirmation of receipt, except that any notice of change
        of
        address shall be effective only upon actual receipt thereof.

      

      8.7 Force
        Majeure.
        The
        Parties’ obligations under this Agreement are subject to and neither Party shall
        be liable for (except for the obligation to pay money) delays, failures to
        perform, damages, losses or destruction, or malfunction of any equipment
        or any
        consequence thereof caused or occasioned by, or due to fire, flood, water,
        the
        elements, labor disputes or shortages, utility curtailments, power failures,
        explosion, civil disturbances, terrorism, governmental actions, shortages
        of
        equipment for supplies, unavailability of transportation, acts or omissions
        of
        third parties, or any other cause beyond the Party’s reasonable control.

       

      8.8 Amendments.
        This
        Agreement may not be changed, altered or modified unless such change, alteration
        or modification is clearly established in writing and signed by authorized
        representatives of each Party.

      

      8.9
         Assignment.
        Neither
        Party shall assign any or all of its rights or obligations under this Agreement
        without the express written consent of the other Party; provided that either
        Party may assign this agreement to any affiliate of such Party or to any
        third
        party purchasing all or substantially all of the equity or assets of such
        Party
        or entering into a merger with such Party.

      

      8.10
          Headings.
        The
        headings contained in this Agreement are for reference purposes only and
        shall
        not affect in any way the meaning or interpretation of this
        Agreement.

      

      8.11
          Counterparts.
        This
        Agreement may be executed in counterparts, each of which shall be effective
        as
        to the Parties thereto and each of which shall be an original and all of
        which
        shall constitute one and the same instrument.

      

      8.12
         Compliance
        With Laws and Rules of Conduct.
        Each
        Party shall, at its own expense, comply with all federal, state and local
        laws
        and regulations relating to the Services and its duties, obligations and
        performance under this Agreement and shall procure all certificates, permits
        and
        licenses required in connection therewith. 

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

       

      8.13
         Trademarks.
        This
        Agreement confers no right to use the name(s), service mark(s), trademark(s),
        copyright(s) or patent(s) of either Party except as expressly provided herein.
        Neither Party shall take any action, which would compromise the name(s),
        service
        mark(s), trademark(s), copyright(s) or patent(s) of the other Party.

      

      8.14 Attorneys’
        Fees and Costs.
        The
        prevailing Party of any litigation related to the enforcement of this Agreement,
        including appeals if any, shall be awarded reasonable attorneys’ fees and
        costs.

      

      IN
        WITNESS WHEREOF,
        the
        Parties hereto have caused this Agreement to be executed by their officers
        thereunto duly authorized the day and year first written above.

      

        
          	
                  Fusion
                    Telecommunications International, Inc.

                	 	
                  Digital
                    FX International, Inc.

                
	 	 	 	 	 
	
                  Signature:
                    

                	
                      /s/
                    Matt Rosen

                	 	
                  Signature:

                	
                      /s/
                    Craig Ellins

                
	
                  Name:
                    

                	
                      Matt
                    Rosen

                	 	
                  Name:
                    

                	
                      Craig
                    Ellins

                
	
                  Title:
                    

                	
                      CEO

                	 	
                  Title:
                    

                	
                      Chairman,
                    CEO
                    & President

                
	
                  Date:

                	 	 	
                  Date:
                    

                	 
	
                  Telephone:
                    

                	 	 	
                  Telephone:
                    

                	 
	
                  Facsimile:
                    

                	 	 	
                  Facsimile:
                    

                	 

        

      

      
 

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

       

      LIST
        OF
        EXHIBITS

      

        
          	
                  EXHIBIT
                    A

                	
                  Software
                    Development Project Plan

                
	
                  EXHIBIT
                    B

                	
                  Zimbra
                    Mail Software and ActiveX Software technical description
                    

                
	
                  EXHIBIT
                    C

                	
                  FUSION
                    SERVICES AND RATES
                    DOCUMENT

                
	
                  EXHIBIT
                    D 

                	
                  ActiveX
                    Software license agreement 

                
	
                  EXHIBIT
                    E

                	
                  CUSTOMER
                    AGREEMENT

                
	
                  EXHIBIT
                    F

                	
                  ESCROW
                    AGREEMENT

                

        

      

       

    

    
      
         

      

      
        17Unassociated Document

     

    
      SUBSCRIPTION,
        LOAN AND RIGHTS AGREEMENT

      

      SAYSWAP,
        INC.

      

      THIS
        SUBSCRIPTION, LOAN AND RIGHTS AGREEMENT
        (this
“Agreement”)
        dated
        as of June 8, 2007 by and between SAYSWAP, INC., a Delaware corporation (the
        “Company”), and DIGITALFX INTERNATIONAL, INC., a Florida corporation
        (“DFXN”).

      1.  LOAN
        AND PROMISSORY NOTE.
        Subject
        to the terms and conditions of this Agreement, on the Closing Date DFXN agrees
        to make a secured term loan (the “Loan”)
        to the
        Company in the amount of Two Hundred Twenty-Five Thousand Dollars and No
        One-Hundredths ($225,000.00)(the “Loan Amount”). The Loan shall be evidenced by
        a senior secured convertible promissory note executed by the Company (the
        “Senior
        Secured Promissory Note”)
        in
        substantially the form of Exhibit
        A
        attached
        hereto, dated the Closing Date, payable to DFXN in a principal amount equal
        to
        the Loan Amount.

      

      DFXN
        agrees to transfer the Loan Amount to the Company on the Closing Date, pursuant
        to the following wire transfer instructions:

      

      U.S.
        Bank

      Minneapolis,
        Minnesota

      Transit
        Number 091000022

      Account
        Number 104776558009

      

      For
        the
        account of:

      

      SaySwap,
        Inc.

      7038
        Balsam Lane North

      Minneapolis,
        Minnesota 55369

      

      2. WARRANTS.
        DFXN
        hereby subscribes for and agrees to purchase from the Company, on the Closing
        Date, for a purchase price equal to $1.00 and the mutual promises contained
        herein, a warrant or warrants (the “Warrants”) to purchase an aggregate of
        Twenty-Six and One-Tenth (26.1) shares (as adjusted) of the fully paid and
        nonassessable Common Stock, no par value per share, of the Company, at a
        purchase price per share initially equal to $3,831.42, which warrants shall
        expire at 5:00 P.M., Eastern Time, on May 31, 2010, subject to the provisions
        and upon the terms and conditions therein set forth. The Warrants shall be
        in
        substantially the form of Exhibit
        B
        attached
        hereto. On the Closing Date the Company will issue the Warrants to
        DFXN.

      

      3. REPRESENTATIONS
        AND WARRANTIES. 

      

      3.1 Representations
        and Warranties of the Company.
        In
        order to induce DFXN to execute and deliver this Agreement, the Company
        represents, warrants, and covenants to DFXN as follows:

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      (a) 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 Minnesota. The Company
        has
        full power and authority to own its properties and to carry on its business
        as
        currently conducted. 

       

      (b) The
        execution, delivery and performance by the Company of this Agreement and
        the
        transactions contemplated hereby shall 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 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 Agreement is required which has not been given or
        obtained.

      

      (c) The
        Company has the requisite power and authority to execute and deliver this
        Agreement, and perform its obligations herein, and consummate the transactions
        contemplated hereby. Upon the execution of this Agreement by both parties,
        this
        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).

       

      (d) The
        Company has reserved sufficient conversion shares (the 

      “Conversion
        Shares”) and warrant shares (the “Warrant Shares”) for conversion of the Senior
        Secured Promissory Note and the exercise of the Warrants,
        respectively.

      

      (e) The
        Conversion Shares and Warrant Shares underlying the Senior Secured Promissory
        Note and the Warrants to be issued to DFXN pursuant to this Agreement, when
        issued and delivered in accordance with the terms of this Agreement, in each
        case, shall be duly authorized, validly issued, fully paid and
        non-assessable.

      

      (f) The
        Company has no subsidiaries.

       

      (g) The
        execution, delivery and performance by the Company of this Agreement, the
        Senior
        Secured Promissory Note and the Warrants (collectively, the “Transaction
        Documents”)
        and the
        consummation by the Company of the transactions contemplated hereby and thereby
        have been duly authorized by all requisite corporate action of the Company.
        The
        execution and delivery by the Company of this Agreement and each of the other
        Transaction Documents, the performance by the Company of its obligations
        hereunder and thereunder and the consummation by the Company of the transactions
        contemplated hereby and thereby do not:

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (i) violate
        any provision of the certificate of incorporation or bylaws (or similar
        organizational documents) of the Company;

       

      (ii) result
        in: (A) a violation or breach of, or constitute (with or without due notice
        or
        lapse of time or both) a default (or give rise to any right of termination,
        amendment, cancellation or acceleration) under any of the terms, conditions
        or
        provisions of any material contract to which the Company is a party or by
        which
        any of the properties or assets of the Company may be bound or otherwise
        subject; or (B) in the creation or imposition of any Lien upon any of the
        properties or assets of the Company; or

       

      (iii) contravene
        or violate any Law applicable to the Company or its properties or
        assets.

       

        (h) As
        of the
        Closing, the issued and outstanding capital stock of the Company will consist
        of
        1,333.3 shares of Common Stock, and the capitalization shall be as indicated
        on
        Schedule 3.1(h). As of the Closing of the transactions contemplated herein,
        except for the Warrants and the Senior Secured Promissory Note, as contemplated
        by this Agreement, and except as set forth on Schedule 3.1(h), there are
        no (i)
        outstanding options, warrants, preemptive rights, participation rights,
        antidilution provisions or other rights to acquire or subscribe to, or calls
        or
        commitments of any character whatsoever to which the Company is a party or
        may
        be bound, requiring the issuance or sale of shares of any class of capital
        stock
        or other equity securities of the Company or securities or rights convertible
        into or exchangeable for such shares or other equity securities, or (ii)
        contracts, commitments, understandings or arrangements for which the Company
        is
        or may become bound to issue additional shares of its capital stock or other
        equity securities or options, warrants or rights to acquire or subscribe
        to any
        additional shares of any class of its capital stock or other equity securities
        or securities convertible into or exchangeable for such shares or other equity
        securities. None of the Company’ capital stock has been issued or will be issued
        in connection with the transactions contemplated by this Agreement in violation
        of any preemptive right.

       

      (i) Except
        for expense reimbursements or payments to employees, officers or directors
        in
        the ordinary course of business and except as set forth on Schedule 3.1(i)
        hereto, (i) the Company is not indebted to any of its officers, directors,
        or
        shareholders or to Affiliates of such Persons or members of their respective
        families; (ii) none of such officers, directors or shareholders, or any of
        their
        Affiliates or members of their families, are indebted to the Company; and
        (iii)
        no officer, director, shareholder, or any Affiliates of such Person or member
        of
        such Persons’ families, is a party to any material Contract with the Company.

       

      (j) The
        Company neither owns nor leases any real property.

       

      (k) There
        is
        no pending or, to the knowledge of the Company, threatened audit, investigation,
        proceeding or claim respecting any Tax for which the Company is or may be
        liable
        or which relates to the income, assets or operations of the Company and no
        such
        audit, investigation, proceeding or claim has been conducted or is ongoing.
        

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (l) Other
        than the Senior Secured Promissory Note, Borrower has no material liability
        or
        obligation, absolute or contingent (individually or in the aggregate) except
        as
        set forth on Schedule 3.1(i) hereto.

       

      (m) The
        Company owns, or is licensed to use, on the Effective Date, and will own,
        or be
        licensed to use, on the Closing Date, all trademarks, tradenames, copyrights,
        patents and other intellectual property material to its business (the
“Intellectual Property”), and the use thereof by the Company does not, to the
        Company’s knowledge, infringe upon the rights of any other entity or person. To
        the Company’s knowledge, there are no liens or other encumbrances against the
        Intellectual Property. Except as listed on Schedule 3.1(n), neither the Company
        nor any other entity or person is currently a party to any agreement pursuant
        to
        which the Company has granted to any third party any right in and to any
        of the
        Intellectual Property for any purpose whatsoever. To the Company’s knowledge,
        there are no adverse claims in existence with respect to any of the Intellectual
        Property. The Company is not in default or breach of the license agreements
        pursuant to which rights have been granted to the Company to use Intellectual
        Property, and, to the Company’s knowledge, there exists no state of facts which
        after notice or lapse of time or both would constitute such a default or
        breach,
        and all such license agreements are still in full force and effect.

       

      (n) There
        is
        no pending or, to the knowledge of the Company, threatened litigation or
        proceeding: (a) that has been commenced by or against the Company or any
        part of its business, operations, properties or assets; or (b) that
        challenges or seeks to alter or materially delay the transactions contemplated
        hereby and, to the knowledge of the Company, there exists no basis for any
        such
        Proceeding.

       

      (o) The
        information, reports, financial statements, exhibits and schedules furnished
        in
        writing by or on behalf of the Company to DFXN in connection with the
        negotiation, preparation or delivery of the Transaction Documents or included
        in
        or delivered pursuant to any Transaction Document, when taken as a whole
        do not
        contain any untrue statement of material fact or omit to state any material
        fact
        necessary to make the statements in any Transaction Document, in light of
        the
        circumstances under which they were made, not misleading. All written
        information furnished by or on behalf of the Company or any of its Subsidiaries
        to DFXN in connection with the Transaction Documents and the transactions
        contemplated by the Transaction Documents will be true, complete and accurate
        in
        every material respect, or (in the case of projections) based on reasonable
        estimates, on the date as of which such information is stated or certified.
        There is no fact known to the Company that could have a material adverse
        effect
        on the Company that has not been disclosed in the Transaction Documents or
        in a
        report, financial statement, exhibit, schedule, disclosure letter or other
        writing furnished to DFXN for use in connection with the transactions
        contemplated by the Transaction Documents. DFXN acknowledges receipt by it
        of
        the disclaimers set forth in Schedule 3.1(o), which disclaimers have been
        previously provided by the Company to DFXN.

       

      (p) The
        Company has not employed any broker, agent or finder other than Craig-Hallum,
        or
        agreed to incur any liability for any brokerage fees, agents’ commissions or
        finders’ fees in connection with the transactions contemplated hereby, except as
        otherwise disclosed herein. 

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      3.2 Representations
        and Warranties of DFXN.
        In
        order to induce the Company to execute and deliver this Agreement, DFXN
        represents, warrants, and covenants to the Company as follows:

      

      (a) DFXN
        is a
        corporation duly organized, validly existing and in good standing under the
        laws
        of the State of Florida and is duly authorized to transact business as a
        foreign
        corporation in the State of Nevada.

       

      (b) DFXN
        has
        the requisite power and authority to execute and deliver this Agreement,
        and
        perform its obligations herein, and consummate the transactions contemplated
        hereby. Upon the execution of this Agreement by both parties, this Agreement
        will be a valid, legal and binding obligation of DFXN enforceable against
        DFXN
        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).

       

      (c) the
        Senior Secured Promissory Note and the Warrants to be issued to DFXN pursuant
        to
        this Agreement, and the Conversion Shares and the Warrant Shares will be
        acquired for DFXN’s own account, and not as a nominee or agent, and not with a
        view to distribution of any part thereof, and DFXN has no present intention
        of
        selling, granting participation in, or otherwise distributing the
        same;

      

      (d) DFXN
        understands that neither the Senior Secured Promissory Note and the Warrants
        to
        be issued to DFXN pursuant to this Agreement, nor the Conversion Shares or
        the
        Warrant Shares have been registered under the Securities Act of 1933 (the
“1933
        Act”) or any state’s securities laws by reason of reliance upon certain
        exemptions therefrom and that the Company has no obligation or intention
        to
        register the offering of the Warrant Shares, the Conversion Shares or any
        future
        offering of the Company’s securities under the Act or any state act or to file
        the reports which would enable DFXN to sell the Warrant Shares and/or the
        Conversion Shares under the 1933 Act, and that the reliance of the Company
        on
        such exemptions is predicated upon, among other things, the bona fide nature
        of
        DFXN’s investment intent as expressed herein; and

      

      (e) DFXN
        is
        an “accredited investor” as that term is defined in Rule 501 of Regulation D
        promulgated under the 1933 Act, has sufficient knowledge and experience in
        financial and business matters that DFXN is capable of evaluating the merits
        and
        risks of the transactions contemplated herein, and DFXN understands that
        the
        purchase of the Warrant Shares and/or the Conversion Shares is a speculative
        investment and involves a high degree of economic risk.

      

      (f) DFXN
        has
        been given full access to information regarding the Company and has utilized
        such access to its satisfaction for the purpose of obtaining information
        necessary to make an informed investment decision.

      

      (g) DFXN
        understands and agrees that a legend will be placed on the certificates
        representing the Warrant Shares and/or the Conversion Shares containing
        substantially the following language and that any transfer of the Warrant
        Shares
        and/or the Conversion Shares is subject to the terms of this
        legend:

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      “No
        registration statement as to the shares of common stock represented by this
        certificate has been filed pursuant to the Securities Act of 1933 with the
        Securities and Exchange Commission or pursuant to any applicable state statue.
        These shares, accordingly, may not be sold, transferred, or otherwise disposed
        of for value unless and until a registration statement including these shares
        has been filed with the Securities and Exchange Commission and any applicable
        state authority including, but not limited to, the State of Delaware and
        has
        become effective or until the holder of said shares has obtained an opinion
        from
        counsel satisfactory to the issuer of these shares to the effect that such
        registration is not required. 

      

      Furthermore,
        the shares represented by this stock certificate are subject to the provisions
        of a Shareholders Agreement, a copy of which is on file with the Secretary
        of
        the Company at its registered office.”

       

      3.3 Indemnification;
        Survival.

       

      (a) Indemnification.

       

      (i) The
        Company shall hold harmless, defend and indemnify DFXN and each of DFXN’s
        agents, officers, directors, managing members and Affiliates in their respective
        capacities as such from and against any losses, claims, damages, liabilities,
        costs and expenses (including reasonable attorneys’ fees and disbursements)
        suffered or incurred by it arising out of or in connection with this agreement
        or the transactions contemplated hereby, based upon or resulting from: (i)
        the
        failure of any representation or warranty made by the Company to be true
        and
        correct on the date hereof and at the Closing Date; and (ii) the Company’s
        failure to perform or to comply with any covenant or agreement to be performed
        or complied with hereunder.

       

      (ii) DFXN
        shall hold harmless, defend and indemnify the Company and each of the Company’s
        agents, officers, directors, members and Affiliates in their respective
        capacities as such from and against any losses, claims, damages, liabilities,
        costs and expenses (including reasonable attorneys’ fees and disbursements)
        suffered or incurred by it arising out of or in connection with this agreement
        or the transactions contemplated hereby, based upon or resulting from: (i)
        the
        failure of any representation or warranty made by DFXN to be true and correct
        on
        the date hereof and at the Closing Date; and (ii) DFXN’s failure to perform or
        to comply with any covenant or agreement to be performed or complied with
        hereunder.

       

      (iii) In
        no
        event shall the aggregate indemnity obligation of any indemnifying party
        under
        this Section 3.3(a) exceed the Loan Amount. An indemnifying party shall make
        payments of all amounts required to be made pursuant to this Section 3.3(a)
        to,
        or for the account of, the indemnified party from time to time promptly upon
        receipt of bills or invoices relating thereto or when otherwise due and
        payable.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      (iv) Any
        Person entitled to indemnification under this Section 3.3(a) will: (i) give
        prompt notice to the indemnifying party of any claim with respect to which
        it
        seeks indemnification; and (ii) permit such indemnifying party to participate
        therein and, to the extent that it shall wish, jointly with any other
        indemnifying party, to assume the defense of such claim with counsel reasonably
        satisfactory to the indemnified party. Whether or not such defense is assumed
        by
        the indemnifying party, the indemnifying party will not be subject to any
        liability for any settlement made without its consent (but such consent will
        not
        be unreasonably withheld). If the indemnifying party elects to assume the
        defense of a claim, it shall not be liable to such indemnified party for
        any
        legal expenses subsequently incurred by such indemnified party in connection
        with the defense thereof. Notwithstanding the indemnifying party’s election to
        assume the defense of a claim, the indemnified party shall have a right to
        employ separate counsel, and the indemnifying party shall bear the reasonable
        fees, costs and expenses of such separate counsel if the actual or potential
        defendants in, or targets of, any such action include both the indemnified
        party
        and the indemnifying party and the indemnified party shall have reasonably
        concluded that (x) there may be legal defenses available to it and/or other
        indemnified parties which are different from or additional to those available
        to
        the indemnifying party or (y) a conflict of interest between such indemnified
        party and indemnifying parties may exist in respect of such claim. No
        indemnifying party will consent to entry of any judgment or enter into any
        settlement that does not include as an unconditional term thereof the giving
        by
        the claimant or plaintiff to such indemnified party of a release from all
        liability in respect of such claim or litigation. If the indemnifying party
        is
        not entitled to, or elects not to, assume the defense of a claim, it will
        not be
        obligated to pay the fees and expenses of more than one counsel (and one
        local
        counsel) for all parties indemnified by such indemnifying party with respect
        to
        such claim. If the failure of any Person to give prompt notice to one
        indemnifying party of any claim with respect to which it seeks indemnification
        materially prejudices such indemnifying party, such indemnifying party shall
        be
        relieved of its obligation to indemnify such Person to the extent such
        indemnifying party has been prejudiced.

       

      (b) Survival
        of Representations.
        The
        representations and warranties of the parties shall survive the execution
        and
        delivery of this Agreement and the Closing until such time as the Senior
        Secured
        Promissory note is satisfied.

      

      4. REGISTRATION
        RIGHTS.

      

      DFXN
        shall have the registration rights set forth in this Section 4 with respect
        to
        the Warrant Shares and the Conversion Shares.

      

      (a) If
        the
        Company files a registration statement with the SEC to register the resale
        of
        its common stock under the 1933 Act (the “Common Stock”), then DFXN has the
        right to demand the inclusion of the Conversion Shares and the Warrant Shares
        (which are hereinafter collectively referred to in this Section 4 as the
        “Registrable Securities”) in the registration statement within twenty (20) days
        of receipt of the Company’s notice of intention to effect such a registration
        and DFXN shall specify therein the number of Registrable Securities DFXN
        desires
        to register for sale. 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.
        DFXN
        shall have unlimited rights to make such demand with respect to any offering
        by
        the Company other than the Company’s initial offering to the public generally,
        employee plan registrations, Rule 145 transactions, a registration on a form
        that that does not include substantially the same information as would be
        required to be included in a registration statement covering the sale of
        the
        Registrable Securities, and registrations in which the only Common Stock
        being
        registered is Common Stock issuable upon conversion of debt securities also
        being registered). 

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (b) In
        addition to the covenants set forth in Section 4(a), the Company
        shall:

       

      (i) cause
        any 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 DFXN
        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 DFXN (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 4(b)(i) above;

      

      

      (iii) furnish
        to DFXN 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 DFXN’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 DFXN 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;

      

      (v) notify
        DFXN, 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
        DFXN 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 DFXN;

      

      (viii) prepare
        and promptly file with the SEC and promptly notify DFXN 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;

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (ix) advise
        DFXN 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 DFXN against any and all losses, claims, damages or
        liabilities to which DFXN 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 DFXN (and DFXN shall indemnify
        and
        hold harmless the Company) with respect to, and to the extent there is liability
        attributable to, written information provided by DFXN to the Company for
        use in
        such registration statement or prospectus thereunder or any amendment or
        supplement thereto, or any related preliminary prospectus; and

      

      (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.

      

      (c) (i) All
        fees,
        costs and expenses of and incidental to the registration of Registrable
        Securities, shall be borne by the Company; provided,
        however,
        that
        DFXN shall bear its 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 DFXN.

      

      (ii) The
        fees,
        costs and expense of registration to be borne by the Company as provided
        in
        Section 4(c)(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.

       

      (d) The
        registration rights granted by this Section 4 shall be subject to the following
        conditions
        and limitations:

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      (i) If
        the
        managing underwriter or underwriters of any proposed public offering advises
        the
        Company that the total amount of Registrable Securities is sufficiently large
        to
        adversely affect the success of such proposed public offering, then the amount
        of securities to be offered for the account of DFXN shall be reduced pro
        rata,
        based upon the aggregate number of securities to be offered for the accounts
        of
        all of the holders of Registrable Securities (except the Company) intended
        to be
        included in such offering and the number of securities to be offered for
        the
        account of DFXN, to the extent necessary to reduce the total amount of
        securities to be included in such proposed public offering to the amount
        recommended by such managing underwriter or underwriters before the securities
        of the Company are so reduced. 

      

      (ii) The
        price
        at which the Registrable Securities are offered to the public shall be the
        same
        as the price at which the Common Stock then registered is offered to the
        public.

      

      (iii) The
        Company shall have the right to withdraw or postpone a registration statement
        referred to in this Section 4 at any time before it becomes effective without
        obligation to DFXN, provided that the Company’s obligations under this Section 4
        shall remain effective.

      

      (e) In
        the
        case of (i) the Company’s initial public offering and (ii) any underwritten
        offering of Common Stock within three (3) years after the effective date
        of such
        initial public offering, DFXN agrees not to effect any public sale or
        distribution of Registrable Securities except as part of such offering during
        the period beginning 7 days prior to the closing date of such underwritten
        offering and ending 180 days after such closing date (or such shorter period
        as
        may be requested by the managing underwriter or underwriters). The Company
        may
        impose stop-transfer restrictions in order to enforce the
        foregoing.

      

      (f) The
        rights of DFXN to request registration or inclusion of Registrable Securities
        in
        any registration pursuant to Section 4 shall terminate upon the earliest
        to
        occur of:

      

      (i) the
        consummation of a sale, transfer or other disposition, in a single transaction
        or series of related transactions, by the Company of all or substantially
        all
        its assets or the merger or consolidation of the Company with or into another
        company in which the stockholders of the Company own less than 50% of the
        voting
        securities of the surviving entity;

      

      (ii) the
        dissolution or winding up of the Company;

       

      (iii) when
        all
        of DFXN’s Registrable Securities could be sold within a three month period in
        compliance with Rule 144; and

       

      (iv) the
        date
        upon which DFXN ceases to own any Registrable Securities.

       

      5. APPROVAL
        RIGHTS.
        So long
        as any amount of the Company’s obligations under the Senior Secured Promissory
        Note, including principal and accrued interest, remains unpaid, the Company
        shall not require DFXN’s approval to obtain additional financing through the
        issuance of equity securities or securities convertible into equity securities;
        provided that Company shall require the written consent of DFXN before issuing
        any additional debt that is pari passu or senior to the security of the Senior
        Secured Promissory Note. Notwithstanding the foregoing, without the approval
        of
        DFXN, Live Universe may invest up to $200,000 in convertible secured notes
        having the same terms as the Senior Secured Promissory Note issued to DFXN,
        and,
        without the approval of DFXN, the Company may raise an additional aggregate
        amount of up to $200,000 from Cottle Properties and/or K5 Leisure Products,
        Inc.
        or one of their nominees, through the issuance of convertible secured notes
        having the same terms as the Senior Secured Promissory Note issued to DFXN.
        

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      6. ADDITIONAL
        AGREEMENTS.
        

      

      (a) The
        Company agrees that upon the closing of the transactions contemplated herein,
        it
        will use its reasonable commercial efforts to secure a Qualified Financing,
        defined as an amount of at least $2,500,000.

      

      (b) The
        Company agrees to enter into a private label program with DFXN
        for the
        Company’s game trading platform. This will be subject to the Company’s “White
        Label Share of Revenue Agreement.” The Company shall have the option to
        integrate DFXN
        video
        features into its game trading sites subject to applicability to the Company’s
        format and any technology constraints. The Company and DFXN
        will
        discuss alternate methods of assisting each other to monetize their respective
        assets.

      

      7. AGENT.
        The
        Parties agree that the Company will pay Craig-Hallum a fee of $25,000 at
        closing
        of the issuance of the Senior Secured Promissory Note to DFXN. 
        The
        Company has signed an exclusive
        engagement with Craig-Hallum to which Craig-Hallum shall serve as agent in
        a
        private placement of the Company’s securities or a sale of the
        Company. 

      

      8. NOTICE
        PROVISIONS.
        Any
        and
        all notices, demands or requests required or permitted to be given under
        this
        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 8, together with copies thereof as
        follows:

      

        
          	 	
                  In
                    the case of the Company to:

                	
                  SaySwap,
                    Inc.

                
	 	 	
                  7038
                    Balsam Lane North

                
	 	 	
                  Minneapolis,
                    Minnesota 55369

                
	 	 	
                  Attn:
                    Mickey Elfenbein

                
	 	 	 
	 	
                  with
                    a copy to:

                	
                  Soffer
                    Charbonnet Law Group

                
	 	 	
                  8500
                    Normandale Lake Bl., Ste. 960

                
	 	 	
                  Minneapolis,
                    Minnesota 55437

                
	 	 	
                  Attn:
                    Stephen Charbonnet, Esq.

                
	 	 	 
	 	
                  In
                    the case of DFXN, to: 

                	
                  DigitalFX
                    International, Inc.

                
	 	 	
                  3035
                    East Patrick Land, Suite #9

                
	 	 	
                  Las
                    Vegas, Nevada 89120

                
	 	 	
                  Attn:
                    Craig Ellins

                
	 	 	 
	 	
                  with
                    a copy to:

                	
                  Jeanne
                    Drewsen, Esq.

                
	 	 	
                  Attorney
                    at Law

                
	 	 	
                  250
                    Mercer Street, C505

                
	 	 	
                  New
                    York, New York 10012

                

        

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      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.

       

      9. MISCELLANEOUS.
        

       

      (a) The
        rights under this Agreement may be assigned (but only with all related
        obligations) by DFXN to a transferee of Registrable Securities that (i) is
        a
        subsidiary, affiliate or stockholder of DFXN; (ii) is not a competitor of
        the
        Company, as “competitor” is defined by the Company at the time of such
        assignment; or (iii) after such transfer, holds all of the Registrable
        Securities previously held by DFXN (subject to appropriate adjustment for
        stock
        splits, stock dividends, combinations, and other recapitalizations); provided,
        however, that (x) the Company is, within a reasonable time after such transfer,
        furnished with written notice of the name and address of such transferee
        and the
        Registrable Securities with respect to which such rights are being transferred;
        and (y) such transferee agrees in a written instrument delivered to the Company
        to be bound by and subject to the terms and conditions of this Agreement,
        including the provisions of Section 4(e). The terms and conditions of this
        Agreement shall inure to the benefit of and are binding upon the respective
        successors and permitted assignees of the parties. Nothing in this Agreement,
        express or implied, is intended to confer upon any party other than the parties
        hereto or their respective successors and permitted assignees any rights,
        remedies, obligations or liabilities under or by reason of this Agreement,
        except as expressly provided herein.

      

      (b) This
        Note
        shall be governed and construed in accordance with the laws of the defendant’s
        Home State, as applicable, in any action arising in connection herewith
        regardless of the laws that might otherwise govern under applicable principles
        of conflicts of law. The Company and DFXN each irrevocably submit to the
        exclusive jurisdiction of the state and federal courts located in the
        defendant’s Home State, as applicable, for the purpose of any suit, action,
        proceeding or judgment relating to or arising out of this Agreement and the
        transactions contemplated hereby. For purposes of this Agreement, “Home State”
shall mean the State of Minnesota with respect to the Company and the State
        of
        Nevada with respect to the Holder and shall include, for purposes of
        jurisdiction, Hennepin County with respect to the Company and Clark County
        with
        respect to the Holder.

      

      (c) This
        Agreement may be executed in two or more counterparts, each of which shall
        be
        deemed an original, but all of which together shall constitute one and the
        same
        instrument. This Agreement may also be executed and delivered by facsimile
        signature and in two or more counterparts, each of which shall be deemed
        an
        original, but all of which together shall constitute one and the same
        instrument.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      (d) The
        titles and subtitles used in this Agreement are for convenience only and
        are not
        to be considered in construing or interpreting this Agreement.

      

      (e) Any
        term
        of this Agreement may be amended and the observance of any term of this
        Agreement may be waived (either generally or in a particular instance, and
        either retroactively or prospectively) only with the written consent of the
        Company and DFXN; provided that any provision hereof may be waived by any
        waiving party on such party’s own behalf, without the consent of any other
        party. No waivers of or exceptions to any term, condition, or provision of
        this
        Agreement, in any one or more instances, shall be deemed to be or construed
        as a
        further or continuing waiver of any such term, condition, or
        provision.

      

      (f) In
        case
        any one or more of the provisions contained in this Agreement is for any
        reason
        held to be invalid, illegal or unenforceable in any respect, such invalidity,
        illegality, or unenforceability shall not affect any other provision of this
        Agreement, and such invalid, illegal, or unenforceable provision shall be
        reformed and construed so that it will be valid, legal, and enforceable to
        the
        maximum extent permitted by law.

      

      (g) This
        Agreement (including any Schedules and Exhibits hereto) constitutes the full
        and
        entire understanding and agreement among the parties with respect to the
        subject
        matter hereof, and any other written or oral agreement relating to the subject
        matter hereof existing between the parties is expressly canceled. 

       

      (h) No
        delay
        or omission to exercise any right, power, or remedy accruing to any party
        under
        this Agreement, upon any breach or default of any other party under this
        Agreement, shall impair any such right, power, or remedy of such nonbreaching
        or
        nondefaulting party, nor shall it be construed to be a waiver of or acquiescence
        to any such breach or default, or to any similar breach or default thereafter
        occurring, nor shall any waiver of any single breach or default be deemed
        a
        waiver of any other breach or default theretofore or thereafter occurring.
        All
        remedies, whether under this Agreement or by law or otherwise afforded to
        any
        party, shall be cumulative and not alternative.

      

      * * *

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF, the undersigned has executed this Subscription, Loan and
        Rights
        Agreement on this 8th
        day of
        June, 2007.

       

      
        	 	 	 
	 	DIGITAL
                FX
                INTERNATIONAL, INC.
	 
 	 
 	 
 
	
              	By:  	/s/
                Craig Ellins 
	 	
                
Craig
                Ellins
	 	President 

      

       

      
        	 	 	 
	 	SAYSWAP,
                INC.
	 
 	 
 	 
 
	 	By:  	/s/
                Mickey Elfenbein 
	 	
                
Mickey
                Elfenbein
	 	President 

      

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        A

      

      SENIOR
        SECURED PROMISSORY NOTE

      

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        B

      

      WARRANT

       

      
        
          
          

        

        
          16

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