Document:

SECURITY
      AGREEMENT

     

    This
      SECURITY
      AGREEMENT
      (this
“Agreement”)
      is
      dated as of _____, 2006, and is entered into by and between iFreedom
      Communications International Holdings, Limited,
      a
      corporation organized under the laws of Hong Kong ; IFreedom
      Communications Corporation,
      a
      company organized under the laws of the Philippines; IFreedom
      Communications (Malaysia) Sdn. Bhd., a
      corporation organized under the laws of Malaysia ; IFreedom
      Communications, Inc., a
      corporation organized under the laws of the State of Delaware iFreedom
      Communications Hong Kong Limited, a
      corporation organized under the laws of Hong Kong); iFreedom
      UK, Ltd.,
      a
      corporation organized under the laws of the United Kingdom (“UK”) corporation
      ( collectively the “Company”),
      and
Fusion
      Telecommunications International, Inc.,
      a New
      York corporation (“Secured Party”).

     

    PRELIMINARY
      STATEMENTS

     

    A.  Pursuant
      to that certain Demand Note, by and between Company and Secured Party of even
      date (as it may hereafter be further amended, restated, supplemented or
      otherwise modified from time to time, the “Note”)
      Secured Party has made a loan to Company, subject to the terms and conditions
      set forth in the Note.

     

    B.  It
      is a
      condition precedent to the Secured Party’s taking of the Note that Company shall
      have granted the security interest and undertaken the obligations contemplated
      by this Agreement.

     

    AGREEMENT

     

    NOW,
      THEREFORE,
      in
      consideration of the foregoing premises, the agreements and covenants set forth
      herein, and in order to induce Secured Party to hold the Note, and for other
      good and valuable consideration, the receipt and adequacy of which are hereby
      acknowledged, the parties hereto agree as follows:

     

    1.  Grant
      of Security.

     

    Company
      hereby grants to Secured Party a security interest in all of Company’s right,
      title and interest in and to the following, in each case whether now or
      hereafter existing, whether tangible or intangible, or in which Company now
      has
      or hereafter acquires an interest and wherever the same may be located (the
      “Collateral”):

     

    (a)  all
      equipment in all of its forms, all parts thereof and all accessions thereto
      (any
      and all such equipment, parts and accessions being the “Equipment”);

     

    (b)  all
      inventory in all of its forms, including but not limited to all goods held
      by
      Company for sale or lease or to be furnished under contracts of service or
      so
      leased or furnished (collectively the “Inventory”);

     

    (c)  all
      accounts, contract rights, chattel paper, documents, instruments, general
      intangibles and other rights and obligations of any kind owned by or owing
      to
      Company and all rights in, to and under all security agreements, leases and
      other contracts securing or otherwise relating to any such accounts, contract
      rights, chattel paper, documents, instruments, general intangibles (other than
      Intellectual Property Collateral) or other obligations (any and all such
      accounts, contract rights, chattel paper, documents, instruments, general
      intangibles and other obligations being the “Accounts”,
      and any
      and all such security agreements, leases and other contracts being the
“Related
      Contracts”);

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (d)  all
      deposit accounts (the “Deposit
      Accounts”),
      together with (i) all amounts on deposit from time to time in such deposit
      accounts, and (ii) all interest, cash, instruments, securities and other
      property from time to time received, receivable or otherwise distributed in
      respect of or in exchange for any or all of the foregoing;

     

    (e)  investment
      property, including, but not limited to commodity accounts and commodity
      contracts;

     

    (f)  letter
      of
      credit rights;

     

    (g)  promissory
      notes;

     

    (h)  the
      “Intellectual
      Property Collateral”,
      which
      term means:

     

    (i)  all
      right, title and interest (including rights acquired pursuant to a license
      or
      otherwise) in and to all trademarks, service marks, designs, logos, indicia,
      tradenames, trade dress, corporate names, company names, business names,
      fictitious business names, trade styles and/or other business identifiers and
      applications pertaining thereto, owned by Company, or hereafter adopted and
      used, in its business (collectively, the “Trademarks”),
      all
      registrations that have been or may hereafter be issued or applied for thereon
      in the United States and in foreign countries (the “Trademark Registrations”),
      and
      all common law and other rights in and to the Trademarks in the United States
      and any state thereof and in foreign countries (the “Trademark
      Rights”);
      

     

    (ii)  all
      right, title and interest (including rights acquired pursuant to a license
      or
      otherwise) in and to all patents and patent applications and rights and
      interests in patents and patent applications under any domestic or foreign
      law
      that are presently, or in the future may be, owned or held by Company and all
      patents and patent applications and rights, title and interests in patents
      and
      patent applications under any domestic or foreign law that are presently, or
      in
      the future may be, owned by Company in whole or in part, all rights
      corresponding thereto, and all re-issues, divisions, continuations, renewals,
      extensions and continuations-in-part thereof (all of the foregoing being
      collectively referred to as the “Patents”);
      and

     

    (iii)  (a)
      all
      copyrights under the laws of the United States or any other country (whether
      or
      not the underlying works of authorship have been published), all registrations
      and recordings thereof, all copyrightable works of authorship (whether or not
      published), and all applications for copyrights under the laws of the United
      States or any other country, including, without limitation, registrations,
      recordings and applications in the United States Copyright Office (the
“Copyright
      Office”)
      or any
      similar office or agency in any other country, (b) all renewals of any of the
      foregoing, (c) all claims for, and rights to sue for, past or future
      infringements of any of the foregoing and (d) all income, royalties, damages
      and
      payments now or hereafter due or payable with respect to any of the foregoing,
      including, without limitation, damages and payments for past or future
      infringements thereof (all of the foregoing collectively being referred to
      as
      the “Copyrights”);

     

    
      
         

      

      
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    (i)  all
      trade
      secrets, trade secret rights, know-how, customer lists, processes of production,
      ideas, confidential business information, techniques, processes, formulas,
      and
      all other proprietary information of Company;

     

    (j)  to
      the
      extent not included in any other paragraph of this Section 1, all other
      general intangibles (including without limitation tax refunds, rights to payment
      or performance, choses
      in action
      and
      judgments taken on any rights or claims included in the
      Collateral);

     

    (k)  all
      books, records, files, correspondence, computer programs, tapes, disks and
      related data processing software that at any time evidence or contain
      information relating to any of the Collateral or are otherwise necessary or
      helpful in the collection thereof or realization thereupon; and

     

    (l)  all
      proceeds, products, rents and profits of or from any and all of the foregoing
      Collateral and, to the extent not otherwise included, all payments under
      insurance (whether or not Secured Party is the loss payee thereof), or any
      indemnity, warranty or guaranty, payable by reason of loss or damage to or
      otherwise with respect to any of the foregoing Collateral. For purposes of
      this
      Agreement, the term “proceeds”
      includes
      whatever is receivable or received when Collateral or proceeds are sold,
      exchanged, collected or otherwise disposed of, whether such disposition is
      voluntary or involuntary.

     

    Notwithstanding
      anything herein to the contrary, in no event shall the Collateral include,
      and
      Company shall not be deemed to have granted a security interest in (i) any
      item
      of Collateral that is leased to Company and for which Company has not exercised
      any applicable purchase option; (ii) any of Company’s rights or interests in any
      license, contract or agreement to which Company is a party or any of its rights
      or interests thereunder to the extent, but only to the extent, that such a
      grant
      would, under the terms of such license, contract or agreement or otherwise,
      result in a breach of the terms of, or constitute a default under, any license,
      contract or agreement to which Company is a party (other than to the extent
      that
      any such term would be rendered ineffective pursuant to Section 9-406 of
      the UCC or any other applicable law (including the United States Bankruptcy
      Code
      (the “Bankruptcy
      Code”))
      or
      principles of equity); provided,
      that
      immediately upon the ineffectiveness, lapse or termination of any such
      provision, the Collateral shall include, and Company shall be deemed to have
      granted a security interest in, all such rights and interests as if such
      provision had never been in effect, or (iii) any real property leasehold, unless
      Company has executed a leasehold mortgage or leasehold deed of trust covering
      such real property leasehold.

     

    2.  Security
      for Obligations.

     

    This
      Agreement secures, and the Collateral assigned by Company is collateral security
      for, the prompt payment or performance in full when due, whether at stated
      maturity, by required prepayment, declaration, acceleration, demand or otherwise
      (including without limitation the payment of amounts that would become due
      but
      for the operation of the automatic stay under Section 362(a) of the
      Bankruptcy Code), of all Secured Obligations of Company. “Secured
      Obligations”
      means
      all obligations and liabilities of Company to Secured Party now or hereafter
      existing, including all obligations and liabilities arising out of or in
      connection with the Note.

     

    
      
         

      

      
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    3.  Representations
      and Warranties.

     

    Company
      represents and warrants as follows:

     

    (a)  Ownership
      of Collateral.
      Company
      owns the Collateral free and clear of any Lien (as defined below), security
      interest, assignment, option or other charge or encumbrance, except for the
      Liens and security interests (i) set forth on Schedule
      A
      hereto,
      (ii) created by this Agreement or any other document in favor of Secured Party,
      (iii) resulting from taxes which have not yet been become delinquent, or (iv)
      that are minor liens, encumbrances and defects in title which do not materially
      detract from the value of the property subject thereto. This Agreement has
      been
      duly and validly authorized by Company and executed and delivered by Company
      and
      constitutes the legal, valid and binding obligation of Company, enforceable
      against Company in accordance with its terms (subject to applicable bankruptcy,
      reorganization, insolvency, moratorium or similar laws affecting creditors’
rights generally and subject, as to enforceability, to equitable principles
      of
      general application (regardless of whether enforcement is sought in a proceeding
      in equity or at law)) and, subject to the performance of the relevant procedures
      as specified in Section 6(a) herein with respect to such Collateral, creates
      a
      valid, binding, enforceable and perfected security interest in and Lien upon
      all
      of the Collateral, to the extent such security interest can be created by
      performance of the procedures specified in Section 6(a), and Company is duly
      authorized to make all filings and take all other actions necessary or desirable
      to perfect and to continue perfected such security interest. For purposes of
      this Agreement, “Lien”
      shall
      mean a pledge, assignment, lien, charge, mortgage, encumbrance, or other
      security interest obtained under this Agreement or under any other agreement
      or
      instrument with respect to any present or future assets, property, contract
      rights, or revenues in order to secure the payment of indebtedness of the party
      referred to in the context in which the term is used.

     

    4.  Further
      Assurances.

     

    (a)  Company
      agrees that from time to time, at its reasonable expense, Company will promptly
      execute and deliver to Secured Party one or more financing and continuation
      statements, and amendments thereto, relating to all or any part of the
      Collateral, and all further instruments and documents, and take all further
      action, that may be necessary or desirable, or that Secured Party may reasonably
      request, in order to perfect and protect any security interest granted or
      purported to be granted hereby or to enable Secured Party to exercise and
      enforce its rights and remedies hereunder with respect to any
      Collateral.

     

    (b)  Company
      will give prompt written notice to Secured Party of, and defend the Collateral
      against, any suit, action or proceeding related to the Collateral or which
      could
      adversely affect the security interests and Liens granted
      hereunder.

     

    
      
         

      

      
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    5.  Certain
      Covenants of Company.

     

    Company
      shall:

     

    (a)  give
      Secured Party 15 days’ prior written notice of any change in Company’s chief
      place of business, chief executive office or residence or the office where
      Company keeps its records regarding the Accounts and all originals of all
      chattel paper that evidence Accounts, prior to effectuating any change described
      in the preceding sentence, Company shall take or cause to be taken all actions
      deemed by Secured Party to be necessary or desirable to prevent any financing
      or
      continuation statement from becoming seriously misleading or rendered
      ineffective, or the security interests granted herein from becoming unperfected
      or the relative priority thereof otherwise impaired, as a result of such removal
      or change and, if reasonably requested by Secured Party, shall provide an
      opinion of nationally recognized counsel in form and substance reasonably
      satisfactory to Secured Party, describing such actions and confirming that
      such
      actions have been taken and are effective to prevent such results;

     

    (b)  maintain,
      or cause to be maintained, all items of the Collateral in good condition and
      repair, ordinary wear and tear excepted in the case of Equipment, and pay,
      or
      cause to be paid, the costs of repairs to or maintenance of that Collateral
      which is of a type that could be repaired or maintained;

     

    (c)  not
      use
      any Collateral in material violation of law or any applicable policy of
      insurance;

     

    (d)  pay
      or
      cause to be paid when due all taxes, assessments, and other charges relating
      to
      the Collateral or this Agreement and reimburse Secured Party for all reasonable
      costs of and reasonable fees incurred in connection with the filing of the
      documents and instruments referred to in Section 6(a) hereof; and

     

    (e)  furnish
      to Secured Party from time to time (but, unless an Event of Default (as defined
      in Section 6(b) below) shall have occurred and be continuing, no more frequently
      than quarterly) statements and schedules further identifying and describing
      the
      Intellectual Property Collateral and such other reports in connection with
      the
      Intellectual Property Collateral as Secured Party may reasonably request, all
      in
      reasonable detail.

     

    6.  Secured
      Party Appointed Attorney-in-Fact.

     

    Company
      hereby irrevocably appoints Secured Party as Company’s attorney-in-fact, with
      full authority in the place and stead of Company and in the name of Company,
      Secured Party or otherwise, from time to time in Secured Party’s discretion to
      take any of the following actions:

     

    (a)  file
      one
      or more financing or continuation statements, and amendments thereto, relating
      to all or any part of the Collateral;

     

    (b)  upon
      the
      occurrence and during the continuance of any of the default events described
      in
      the Note (an “Event
      of Default”),
      to
      ask for, demand, collect, sue for, recover, compound, receive and give
      acquaintance and receipts for moneys due and to become due under or in respect
      of any of the Collateral;

     

    
      
         

      

      
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    (c)  upon
      the
      occurrence and during the continuance of an Event of Default, to receive,
      endorse and collect any drafts or other instruments, documents and chattel
      paper
      in connection with clause (b) above;

     

    (d)  upon
      the
      occurrence and during the continuance of an Event of Default, to file any claims
      or take any action or institute any proceedings that Secured Party may deem
      necessary or desirable for the collection of any of the Collateral or otherwise
      to enforce the rights of Secured Party with respect to any of the
      Collateral;

     

    (e)  to
      pay or
      discharge taxes or Liens (other than Liens permitted under this Agreement or
      the
      Note) levied or placed upon or threatened against the Collateral, the legality
      or validity thereof and the amounts necessary to discharge the same to be
      determined by Secured Party in its sole discretion, any such payments made
      by
      Secured Party to become obligations of Company to Secured Party, due and payable
      immediately upon demand;

     

    (f)  upon
      the
      occurrence and during the continuance of an Event of Default, to sign and
      endorse any invoices, freight or express bills, bills of lading, storage or
      warehouse receipts, drafts against debtors, assignments, verifications and
      notices in connection with Accounts and other documents relating to the
      Collateral; and

     

    (g)  upon
      the
      occurrence and during the continuance of an Event of Default, generally to
      sell,
      transfer, pledge, make any agreement with respect to or otherwise deal with
      any
      of the Collateral as fully and completely as though Secured Party were the
      absolute owner thereof for all purposes, and to do, at Secured Party’s option
      and Company’s expense, at any time or from time to time, all acts and things
      that Secured Party deems necessary to protect, preserve or realize upon the
      Collateral and Secured Party’s security interest therein in order to effect the
      intent of this Agreement, all as fully and effectively as Company might
      do.

     

    The
      appointment set forth in this Section 6 is coupled with an interest and is
      irrevocable until such time as the Secured Party gives the Company express
      written notice the Note is paid in full.

     

    
      
         

      

      
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    7.  Remedies.

     

    (a)  If
      any
      Event of Default shall have occurred and be continuing, Secured Party may
      exercise in respect of the Collateral, in addition to all other rights and
      remedies provided for herein or otherwise available to it, all the rights and
      remedies of a secured party on default under the UCC (whether or not the UCC
      applies to the affected Collateral), and also may (i) require Company to,
      and Company hereby agrees that it will at its expense and upon request of
      Secured Party forthwith, assemble all or part of the Collateral as directed
      by
      Secured Party and make it available to Secured Party at a place to be designated
      by Secured Party that is reasonably convenient to both parties, (ii) enter
      onto the property where any Collateral is located and take possession thereof
      with or without judicial process, (iii) prior to the disposition of the
      Collateral, store, process, repair or recondition the Collateral or otherwise
      prepare the Collateral for disposition in any manner to the extent Secured
      Party
      deems appropriate, (iv) take possession of Company’s premises or place
      custodians in exclusive control thereof, remain on such premises and use the
      same and any of Company’s equipment for the purpose of completing any work in
      process, taking any actions described in the preceding clause (iii) and
      collecting any Secured Obligation, or (v) without notice except as
      specified below, sell the Collateral or any part thereof in one or more parcels
      at public or private sale, at any of Secured Party’s offices or elsewhere, for
      cash, on credit or for future delivery, at such time or times and at such price
      or prices and upon such other terms as Secured Party may deem commercially
      reasonable. Secured Party may be the purchaser of any or all of the Collateral
      at any such sale and Secured Party shall be entitled, for the purpose of bidding
      and making settlement or payment of the purchase price for all or any portion
      of
      the Collateral sold at any such public sale, to use and apply any of the Secured
      Obligations as a credit on account of the purchase price for any Collateral
      payable by Secured Party at such sale. Each purchaser at any such sale effected
      in accordance with the provisions of this Section 7 and applicable law shall
      hold the property sold absolutely free from any claim or right on the part
      of
      Company, and Company hereby waives (to the extent permitted by applicable law)
      all rights of redemption, stay and/or appraisal which it now has or may at
      any
      time in the future have under any rule of law or statute now existing or
      hereafter enacted. Company agrees that, to the extent notice of sale shall
      be
      required by law, at least ten days’ notice to Company of the time and place of
      any public sale or the time after which any private sale is to be made shall
      constitute reasonable notification. Secured Party shall not be obligated to
      make
      any sale of Collateral regardless of notice of sale having been given. Secured
      Party may adjourn any public or private sale from time to time by announcement
      at the time and place fixed therefor, and such sale may, without further notice,
      be made at the time and place to which it was so adjourned. Company hereby
      waives any claims against Secured Party arising by reason of the fact that
      the
      price at which any Collateral may have been sold at such a private sale was
      less
      than the price which might have been obtained at a public sale, even if Secured
      Party accepts the first offer received and does not offer such Collateral to
      more than one offeree. If the proceeds of any sale or other disposition of
      the
      Collateral are insufficient to pay all the Secured Obligations, Company shall
      liable for the deficiency and the fees and costs of any attorneys employed
      by
      Secured Party to collect such deficiency. 

     

    8.  Application
      of Proceeds.

     

    Except
      as
      expressly provided elsewhere in this Agreement, all proceeds received by Secured
      Party in respect of any sale of, collection from, or other realization upon
      all
      or any part of the Collateral shall be applied in the following order of
      priority:

     

    FIRST:
      To
      the payment of all costs and expenses of such sale, collection or other
      realization, including reasonable compensation to Secured Party and its agents
      and counsel, and all other reasonable expenses, liabilities and advances made
      or
      incurred by Secured Party in connection therewith, and all amounts for which
      Secured Party is entitled to indemnification hereunder and all advances made
      by
      Secured Party hereunder for the account of Company, and to the payment of all
      reasonable costs and expenses paid or incurred by Secured Party in connection
      with the exercise of any right or remedy hereunder;

     

    SECOND:
      To the payment of all other Secured Obligations and, as to obligations arising
      under the Note, as provided in the Note; and

     

    THIRD:
      To
      the payment to or upon the order of Company, or to whosoever may be lawfully
      entitled to receive the same or as a court of competent jurisdiction may direct,
      of any surplus then remaining from such proceeds.

     

    
      
         

      

      
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    9.  Continuing
      Security Interest; Transfer of Loans; Termination and
      Release.

     

    (a) This
      Agreement shall create a continuing security interest in the Collateral and
      shall (i) remain in full force and effect until the payment in full of the
      Secured Obligations or the cancellation, termination or conversion into Company
      equity securities of the Note, (ii) be binding upon Company and its
      successors and assigns, and (iii) inure, together with the rights and
      remedies of Secured Party hereunder, to the benefit of Secured Party and their
      respective successors, transferees and assigns. 

     

    (b) Upon
      the
      payment in full of all Secured Obligations or the cancellation, expiration
      or
      conversion of the Note, the security interest granted hereby shall terminate
      and
      all rights to the Collateral shall revert to Company. Upon any such payment
      in
      full of all Secured Obligations or cancellations, termination or conversion,
      Secured Party will, at Company’s expense, execute and deliver to Company such
      documents as Company shall reasonably request to evidence such termination.
      

     

    10.  Exculpation
      of Secured Party.

     

    (a)  Secured
      Party shall not be responsible in any manner for the validity or transferability
      of any of the Collateral conveyed or held pursuant to the terms of this
      Agreement, nor for any representation or warranty made by any other party to
      this Agreement. Nothing contained herein shall be deemed to obligate Secured
      Party to deliver any funds or evidences of ownership of any asset, tangible
      or
      otherwise, nor anything else, to any person or entity, unless the same shall
      first have been received by Secured Party pursuant to this
      Agreement.

     

    (b)  Anything
      in this Agreement to the contrary notwithstanding, in no event shall Secured
      Party be liable for any special, incidental, or consequential loss or damage
      of
      any kind whatsoever (including but not limited to lost profits), even if Secured
      Party has been advised of the likelihood of such loss or damage and regardless
      of the form of action. 

     

    (c)  Secured
      Party shall not be liable for any action taken or omitted by it in its
      reasonable discretion under or in connection with this Agreement, the Note,
      or
      any other applicable document or the transactions contemplated hereby (except
      for its own gross negligence or willful misconduct).

     

    (d)  Secured
      Party shall be entitled to rely, and shall be fully protected in relying, upon
      advice and statements of legal counsel selected by Secured Party. 

     

    (e)  In
      the
      event that any notice or instruction required to be delivered to Secured Party
      hereunder is not so delivered, Secured Party may hold any funds in its
      possession pursuant to this Agreement, or the interest in any Collateral,
      pending delivery to it of such written notice or instruction and, if an Event
      of
      Default occurs while such funds are in its possession may exercise all other
      rights and remedies of Secured Party under this Agreement.

     

    (f)  It
      is
      understood and agreed that should any dispute arise with respect to the delivery
      or ownership, or right of possession of or to any of the Collateral, or to
      any
      funds received by Secured Party hereunder or in connection herewith, or the
      due
      and proper performance by any party of its obligations hereunder, Secured Party
      is authorized and directed to retain in its possession without liability to
      anyone all or any of the Collateral or funds delivered to it pursuant hereto
      until such dispute shall have been settled by mutual and unanimous agreement
      by
      the parties concerned, or by a final order, decree or judgment of a court of
      competent jurisdiction and from which no appeal has been taken and as to which
      the time the right to appeal has expired. Secured Party shall be entitled,
      but
      shall be under no duty whatsoever, to institute an action in interpleader or
      similar proceedings in order to determine the rights of the respective parties
      to the Collateral, any funds held pursuant hereto, or to defend any such
      proceedings.

     

    
      
         

      

      
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    (g)  Notwithstanding
      any representation or warranty or other statement set forth herein that the
      documents and instruments executed and delivered by Company hereunder or
      pursuant hereto (including without limitation any UCC financing statements)
      are
      adequate in form and substance to create and perfect a lien against the
      Collateral, Secured Party bears no responsibility for investigating whether
      or
      not such documents and instruments do effectively create such an interest,
      and
      Secured Party bears no responsibility or liability therefor or for the failure
      of such document or instruments so to create or perfect such an
      interest.

     

    11.  Indemnification
      of Secured Party.

     

    Company
      hereby indemnifies and agrees to hold Secured Party harmless from and against
      any and all damage, cost, liability, or expenses (including, but not limited
      to,
      reasonable legal fees and court costs) that Secured Party incurs by reason
      of
      acting in such capacity hereunder, without prejudice to any right that any
      party
      may have to recover from the other party for any such damage, cost, liability,
      or expense. It is expressly agreed and acknowledged by the parties hereto that
      the foregoing indemnity shall apply to such reasonable legal fees and expenses
      incurred by Secured Party in defending any action brought by any party hereto
      alleging misconduct or negligence by Secured Party, unless there shall have
      been
      finally concluded by a court of competent jurisdiction that Secured Party was
      responsible for, or committed, gross negligence or willful misconduct in
      discharging or in failing to discharge its duties hereunder. The indemnification
      obligations in this Section shall survive the payment of all obligations
      hereunder and the resignation or replacement of Secured Party.

     

    12.  Amendments.
      

     

    No
      amendment, modification, termination or waiver of any provision of this
      Agreement, and no consent to any departure by Company therefrom, shall in any
      event be effective unless the same shall be in writing and signed by Secured
      Party and by Company. Any such waiver or consent shall be effective only in
      the
      specific instance and for the specific purpose for which it was
      given.

     

    13.  Notices.

     

    Any
      notice or other communication herein required or permitted to be given shall
      be
      in writing and may be personally served, or sent by telefacsimile or United
      States mail or courier service and shall be deemed to have been given when
      delivered in person or by courier service, upon receipt of telefacsimile, or
      three business days after depositing it in the United States mail with postage
      prepaid and properly addressed to the addresses set forth on the signature
      pages
      hereto. 

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    14.  Failure
      or Indulgence Not Waiver; Remedies Cumulative.

     

    No
      failure or delay on the part of Secured Party in the exercise of any power,
      right or privilege hereunder shall impair such power, right or privilege or
      be
      construed to be a waiver of any default or acquiescence therein, nor shall
      any
      single or partial exercise of any such power, right or privilege preclude any
      other or further exercise thereof or of any other power, right or privilege.
      All
      rights and remedies existing under this Agreement are cumulative to, and not
      exclusive of, any rights or remedies otherwise available.

     

    15.  Severability.

     

    In
      case
      any provision in or obligation under this Agreement shall be invalid, illegal
      or
      unenforceable in any jurisdiction, the validity, legality and enforceability
      of
      the remaining provisions or obligations, or of such provision or obligation
      in
      any other jurisdiction, shall not in any way be affected or impaired
      thereby.

     

    16.  Headings.

     

    Section
      and subsection headings in this Agreement are included herein for convenience
      of
      reference only and shall not constitute a part of this Agreement for any other
      purpose or be given any substantive effect.

     

    17.  Governing
      Law; Terms.

     

    THIS
      AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
      GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
      INTERNAL LAWS OF THE STATE OF NEW
      YORK,
      WITHOUT
      REGARD TO CONFLICTS OF LAWS PRINCIPLES.

     

    18.  Consent
      to Jurisdiction and Service of Process.

     

    ALL
      JUDICIAL PROCEEDINGS BROUGHT AGAINST COMPANY ARISING OUT OF OR RELATING TO
      THIS
      AGREEMENT, OR ANY OBLIGATIONS HEREUNDER, SHALL EXCLUSIVELY BE, BROUGHT IN STATE
      COURT IN THE STATE OF NEW
      YORK.
      BY
      EXECUTING AND DELIVERING THIS AGREEMENT, COMPANY, FOR ITSELF AND IN CONNECTION
      WITH ITS PROPERTIES, IRREVOCABLY
      (I) ACCEPTS
      GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH
      COURTS;
      AND
      (II) WAIVES
      ANY DEFENSE OF FORUM
      NON CONVENIENS.

     

    19.  Waiver
      of Jury Trial.

     

    COMPANY
      AND SECURED PARTY HEREBY AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL
      OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT.
      

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    20.  Counterparts.

     

    This
      Agreement may be delivered by facsimile transmission and be executed in one
      or
      more counterparts and by different parties hereto in separate counterparts,
      each
      of which when so executed and delivered shall be deemed an original, but all
      such counterparts together shall constitute but one and the same instrument;
      signature pages may be detached from multiple separate counterparts and attached
      to a single counterpart so that all signature pages are physically attached
      to
      the same document.

     

    

     

    [Remainder
      of Page Intentionally Left Blank. Signature Page
      Follows.]

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      Company
      and Secured Party have caused this Agreement to be duly executed and delivered
      by their respective officers thereunto duly authorized as of the date first
      written above.

     

    

    
      	 	 	FUSION TELECOMMUNICATIONS INTERNATIONAL,
              INC. 
	 	 	 
	 	 	By: ________________
	 	 	Name: 
	 	 	Title: 
	 	 	 
	 	 	If to Secured Party:
	 	 	 
	 	 	1475 West Cypress Creek
              Road 
	 	 	Fort Lauderdale, Fl 33309 
	 	 	 
	 	 	Fax 954 493 8499 
	 	 	 
	 	 	IFREEDOM COMMUNICATIONS INTERNATIONAL
              HOLDINGS, LIMITED
	 	 	 
	 	 	By: ________________
	 	 	Name: 
	 	 	Title: 
	 	 	 
	 	 	IFREEDOM COMMUNICATIONS
              CORPORATION 
	 	 	 
	 	 	By: ________________
	 	 	Name:
	 	 	Title:

    

     

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      	 	 	IFREEDOM COMMUNICATIONS (MALAYSIA) Sdn.
              Bhd.
	 	 	 
	 	 	By: ________________
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 	IFREEDOM COMMUNICATIONS, INC.
	 	 	 
	 	 	By: ________________
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 	IFREEDOM COMMUNICATIONS HONG KONG,
              LIMITED
	 	 	 
	 	 	By: ________________
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 	IFREEDOM UK, LTD.
	 	 	 
	 	 	By: ________________
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 	If to Company:
	 	 	 
	 	 	 
	 	 	iFreedom Communications, Inc.
	 	 	3 Holland
	 	 	Irvine,
              CA 92618 
	 	 	 
	 	 	Facsimile:
              949-461-9267

    

     

     

    
      
         

      

      
        13EXHIBIT
      10.18

    VirtualScopics,
      LLC

    350
      Linden Oaks

    Rochester,
      New York

    14625

    

    November
      5, 2005

    

    Robert
      Klimasewski

    19
      Junction Road

    Honeoye
      Falls, NY 14472 

    

    Dear
      Robert Klimasewski:

    

    Pursuant
      to the terms and conditions of the company's stock option Plan (to be approved
      by Company's Board of Directors), you have been granted a Non-Qualified Stock
      Option to purchase 350,000 shares (the 'Option') of stock as outlined
      below.

     

     

    
      	Granted To:	 	Robert Klimasewski	 
	 	 	
            	 
	Grant Date:	 	November 5, 2005	 
	 	 	 	 
	Options Granted:	 	350,000	 
	Option Price per Share:	 	$2.5000	Total Cost to Exercise:$875,000.0000
	 	 	 	 
	Expiration Date:	 	November 5, 2015	 
	 	 	 	 
	Vesting Schedule:	 	
              87,500 on 11/05/2006

              
                87,500
                  on 11/05/2007

                87,500
                  on 11/05/2008

                87,500
                  on 11/05/2009

              

            	 

    

    

    

    By
      my
      signature below, I hereby acknowledge receipt of this Option granted on the
      date
      shown above, which
      has
      been issued to me under the terms and conditions of the Plan. I further
      acknowledge receipt
      of the copy of the Plan (when finalized) and agree to conform to all of the
      terms and conditions
      of the Option and the Plan.

    
      
         

        
          	 	 	 	 
	Signature: 	/s/ Robert
                  Klimasewski	 	Date:
November
                  5, 2005
	 	
                  
Robert
                  Klimasewski	 	
                

        

         

        
          	Employer Authorized Signature: 	/s/ Warren Bagatelle	 	Date: November
                  5, 2005
	 	
                  
Warren
                  Bagatelle	 	 

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    VirtualScopics,
      LLC

    350
      Linden Oaks

    Rochester,
      New York

    14625

    

    November
      5, 2005

    

    Robert
      Klimasewski

    19
      Junction Road

    Honeoye
      Falls, NY 14472 

    

    Dear
      Robert Klimasewski:

    

    Pursuant
      to the terms and conditions of the company's stock option Plan (to be approved
      by the Company's Board of Directors), you have been granted a Non-Qualified
      Stock Option to purchase 350,000 shares (the 'Option') of stock as outlined
      below.

    
       

       

      
        	Granted To:	 	Robert Klimasewski	 
	 	 	
              	 
	Grant Date:	 	November 5, 2005	 
	 	 	 	 
	Options Granted:	 	350,000	 
	Option Price per Share:	 	$2.5000 	Total
                Cost to Exercise:$875,000.0000
	 	 	 	 
	Expiration Date:	 	November 5, 2015	 
	 	 	 	 
	Vesting Schedule:	 	Special Vesting	 
	 	 	 	 
	 	 	
                87,500
                  on 11/05/2007

                87,500
                  on 11/05/2008

                87,500
                  on 11/05/2009

                87,500
                  on 11/05/2010

              	 

      

      
 

    

    This
      option grant is in full force and effect should optionee be required by the
      Board of Directors to
      participate in the Active Management of VirtualScopics beyond November 1, 2006.
      Active Management
      is defined as at least 25 hours per week.

    

    By
      my
      signature below, I hereby acknowledge receipt of this Option granted on the
      date
      shown above, which
      has
      been issued to me under the terms and conditions of the Plan. I further
      acknowledge receipt
      of the copy of the Plan (when finalized) and agree to conform to all of the
      terms and conditions
      of the Option and the Plan.

    
       

      
        	 	 	 	 
	Signature: 	/s/ Robert
                Klimasewski	 	Date:
November
                5, 2005
	 	
                
Robert
                Klimasewski	 	
              

      

       

      
        	Employer Authorized Signature: 	/s/ Warren Bagatelle	 	Date: November
                5, 2005
	 	
                
Warren
                Bagatelle

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