Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Sound Revolution Inc. - Exhibit 10.7

Digital Music Distribution Agreement

 1. Nature of Agreement. This Digital Music Distribution Agreement ("Agreement")
  and the attached Exhibit is entered into between David Hersk d.b.a. Hersk &
  Associates, with an address at 18 Western Terrace, Minneapolis, MN, 55426 USA
  Tel: 763 300 3718 Fax: 763 544 6336 "Customer" and Sound Revolution Recordings
  Inc. ("Sound Revolution"), a corporation with offices at located at 3955 Graveley
  Street, Suite 507, Burnaby, British Columbia, Canada, V6C 3T4 and describes
  the terms and conditions to which Sound Revolution shall perform digital
  music distribution services for Customer. 

2. Reporting and Payments. In the event that more than $100 is owed to Customer by Sound Revolution for a calendar quarter, within thirty days of the end of the calendar quarter, Sound Revolution shall provide Customer with a written statement
detailing the songs distributed and remit Customer's portion of the proceeds collected from the sales of Customer's music, net of Sound Revolution's distribution fees which include third party costs described in paragraph 7 below.

3. Licensed Sound Recordings. The music licensed under this agreement is all of the songs described in Exhibit "A" attached (the "Song Recordings"). 

4. Customer's Obligations. Customer shall deliver, at Sound Revolution’s cost, the following: 2 complete sets of DVD Masters of the Song Recordings in MP3 format ripped and genre labeled at 160 and 2 complete sets of audition masters of the
Song Recordings in MP3 format ripped at 64 to Sound Revolution within 7 days of execution of this Agreement.

 Customer represents and warrants on a continuing basis: 

  (a) that it owns or has secured all necessary rights to reproduce, distribute,
  transmit, sell, or otherwise exploit the Sound Recordings and the materials
  provided by Customer hereunder; (b) that it owns or has secured all rights necessary
  to allow Sound Revolution to perform the services hereunder (c) that it will
  comply with any obligations it may have under third party performance rights
  and distribution agreements; and that the Sound Recordings, music, and other
  audio content and materials provided by Customer hereunder do not violate or
  infringe any right of privacy or publicity, or contain any libelous, defamatory,
  obscene or unlawful material, or otherwise violate or infringe any other right
  of any person or entity (d) that the DVD containing Sound Recordings are of
  good quality. If, after receiving the first set of Sound Recordings, Sound Revolution
  determines that the Sound Recordings are not of sufficiently high quality to
  use in its website www.charitytunes.com, Sound Revolution has the option
  of not making the second payment installment. Customer must notify Sound Revolution
  in writing of any restrictions that may apply to the distribution, sales or
  promotions of Customer's encoded music, sound recordings, and other audio content,
  including any geographical restrictions. Customer shall also ensure that copyright
  information and other metadata included in Customer's encoded music, sound recordings,
  and other audio content and materials is accurate. Sound Revolution reserves
  the right to report mechanical and performance rights information to agencies
  that the Customer is under contract with, or to any person, firm, corporation
  or other entity with which Sound Revolution has a contract relating to such
  reports. Such right however, does not relieve any existing contractual reporting
  or financial obligations the Customer may directly have with such rights agencies
  or other third parties. Sound Revolution reserves the right to suspend or terminate
  services immediately if Sound Revolution has reasonable grounds to believe that
  Customer is utilizing services illegally or is in violation of any agreement
  with Sound Revolution. 

 Initials: ___ SR ___ DH 

 SR Digital Music Distribution Agreement Jan 11, 2005

  Page 2 

5. Digital Distribution. In connection with Sound Revolution's exercise of
  its rights and obligations hereunder, Customer grants Sound Revolution the non-exclusive
  rights, within the territory of the world, to: (a) perform the Sound Recordings
  publicly by means of digital audio transmission; (b) distribute the Sound Recordings
  and other materials provided by Customer; and (c) otherwise make such items
  available as specified herein. The foregoing license shall include but shall
  not be limited to, the right to provide and transmit such music and other content
  through web sites, in-store kiosks, portable music players, mobile phones, personal
  digital assistants, wireless applications and other Internet enabled devices.
  Customer shall retain the selection and termination rights set forth above.
  Any retailer to whom Sound Revolution makes Customer's content available shall
  have the right to include or exclude such content from such retailer's inventory,
  and retailers shall have the right to market, advertise, promote and establish
  retail prices and any discounts for Customer's encoded music and audio content.

6. Compilation CD sales. Customer also grants Sound Revolution the right to distribute CDs composed of the Sound Recordings, in a CD containing a selection of songs predetermined by Sound Revolution or as a customized compilation, or as a
compilation of songs chosen by Sound Revolution. Customer grants Sound Revolution all synchronization rights and other rights necessary for Sound Revolution to make available for sale, produce and distribute CDs with a selection of songs
predetermined by Customer, customized compilation CDs, and other compilation CDs containing the Sound Recordings. Customer grants Sound Revolution the rights to synchronize the Sound Recordings with any other materials in any combination in order to
promote the sale of the Sound Recordings. 

7. Distribution Fees. Sound Revolution shall choose the price to download the Sound Recordings. For digital distribution, Sound Revolution shall deduct the following: (a) transaction processing fees, such as credit card transaction fees and other
electronic commerce processing, patent royalties or other fees, payable to or retained by unaffiliated third parties in connection with effecting a transaction or transmission, if any; (b) sales tax, if any; (c) returns and credits, including, but
not limited to, those on account of defective merchandise, errors in billing, and errors in transmission, if any; (d) mechanical royalties, if any; (e) public performance fees, if any; (f) shipping, if any; (g) union, guild or other third party fees
that may be required by contract or the Copyright Act, if any; (h) Internet advertising and promotion costs, such as banner ads on other web sites to promote the Sound Recordings, if any, provided that costs shall not exceed 10% of gross revenues;
(i) fees or donations payable to charities or other non-profit organizations pursuant to marketing or promotion programs implemented by the Distributor to promote the sale of digital Recordings; (j) Internet referral fees, such as fees payable to
any third party who, through their web site, email or other means, refers to us a purchaser of copy or phonorecord of a Recording, if any, provided that such costs shall not exceed 10% of gross revenues; (k) Charity fees paid to charities or
non-profit organizations as a payment or donation selected by music purchasers and in no case shall be more than 12% of the retail price; and (l) a $0.05 server/e-commerce charge from each single download, and an additional $0.15 fee for
each song where a hard copy CD is ordered; and the remainder of the purchase price shall be divided with 50% to Sound Revolution and 50% to the Customer. 

 Initials:___SR ___DH 

 SR Digital Music Distribution Agreement Jan 11, 2005

  Page 3 

 7.1 Advance. Sound Revolution shall pay to Customer a non-returnable advance,
  recoupable by Sound Revolution from royalties payable to Customer hereunder,
  the sum of $5,000, payable as follows: 

	 $2,800 by certified cheque or money upon full execution of this Agreement;
    and 
	 $2,200 by July 31, 2005. 

7.2 Delivery Costs. The costs of producing the DVDs are included in the advance. Sound Revolution shall cover all actual third party delivery costs (Fedex). 

8. Promotional & Test Trials. Customer acknowledges that from time to time new users on Sound Revolution will be given promotional credits or coupons. In no event shall Sound Revolution be liable to Customer for Sound Recordings that are
distributed through Sound Revolution as part of this or any other promotion or test trial where no payment is received by Sound Revolution. 

9. Subscription Services. Sound Revolution intends to include the Sound Recordings as part of genre based subscription services Sound Revolution intends to offer to its Internet consumers. Sound Revolution agrees that any songs for which Customer
must pay royalties, those songs will be divided into 6 sets and will be released to subscribers one set a month on a 6 month cycle. In order to calculate revenues where Customer's Sound Recordings are included with music from other companies, the
total revenues from a particular genre will be calculated and divided according to the prorated share of downloads from Customer's Sound Recordings. 

10. Term of Agreement. This Agreement is a non-exclusive agreement. The initial term of this Agreement is six years. Either party may terminate this Agreement due to breach if such breach is not cured within thirty days of receipt of written
notification. Upon termination of this Agreement, Sound Revolution shall return physical CDs and other materials used for encoding Customer's encoded music to Customer and disable all public links to Customer's encoded music. 

 11. Limitation of Liability and Disclaimer. IN NO EVENT SHALL SOUND REVOLUTION
  BE LIABLE FOR ANY LOSS OF DATA, LOSS OF PROFITS, COST OF COVER OR OTHER SPECIAL,
  INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES ARISING FROM OR IN RELATION TO
  THIS AGREEMENT OR THE USE OF THE SERVICES, HOWEVER CAUSED AND REGARDLESS OF
  THEORY OF LIABILITY. SOUND REVOLUTION SPECIFICALLY DISCLAIMS ALL WARRANTIES
  EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF
  MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT OF THE
  SYSTEM OR SERVICES PROVIDED BY SOUND REVOLUTION HEREUNDER. Customer shall indemnify,
  defend, and hold Sound Revolution harmless from and against any and all claims,
  demands, suits, objections, actions and causes of action arising out of any
  breach by Customer of this Agreement, or any it the representations, warranties,
  indemnities, covenants or undertakings made by Customer hereunder. 

12. Miscellaneous. This Agreement constitutes the entire agreement between the parties on the subject matter hereof. No amendment or modification hereof will be valid or binding upon the parties unless made in writing and signed by the duly
authorized representatives of both parties. The relationship of the parties hereunder is that of independent contractors, and this Agreement will not be construed to imply that either party is the agent, employee, or joint venturer of the other. In
the event that any provision of this Agreement is held to be unenforceable, this Agreement will 

 Initials:___SR ___DH 

 SR Digital Music Distribution Agreement Jan 11, 2005

  Page 4

continue in full force and effect without said provision and will be interpreted to reflect the original intent of the parties. This agreement shall be interpreted under the laws of the Province of British Columbia and both parties enure to the
exclusive jurisdiction of the Province of British Columbia. This Agreement may be assigned by either party. Waiver by either party of a breach of any provision of this Agreement or the failure by either party to exercise any right hereunder will not
operate or be construed as a waiver of any subsequent breach of that right or as a waiver of any other right. Except for the payment of fees hereunder, nonperformance of either party will be excused to the extent that performance is rendered
impossible by strike, fire, flood, earthquake, power outages, network failure, governmental acts or orders or restrictions, or any other reason when failure to perform is beyond the reasonable control of the nonperforming party. All currency in this
Agreement refers to US dollars. 

Customer Acceptance. Customer has read and agrees to the terms and conditions of this Agreement and Exhibit. 

 CUSTOMER: 

  DAVID HERSK d.b.a HERSK AND ASSOCIATES

	 x /s/ David Hersk   	  
	 Signature  	  
	  	 Jan 11, 2005  
	 David Hersk  	 Date  
	 Hersk & Associates  	  
	 
	 Sound Revolution Recordings Inc.:  
	  
	 x /s/ Penny Green  	 Jan 11, 2005  
	 Penny O. Green, Signing Officer  	 Date  

 Initials:___SR ___DH 

 SR Digital Music Distribution Agreement Jan 11, 2005

  Page 5

 Exhibit A 

 The Song Recordings hereunder shall include all 6,664 sound
  recordings contained in the song library which was sent as an attachment to
  an email sent from David Hersk to Penny Green on January 10, 2005 and which
  is described the Table of Contents of the music library listed below: 

	 Table of Contents  	  	  
	 Children's  	  	  
	                  
                     Disney Instrumental
      Favorites  	 33  	 5  
	                  
                     Disney Vocal Favorites 
    	 43  	 5  
	                  
                     Lullabies  	 6  	 7  
	                  
                     Nursery Rhymes -
      Instrumental  	 26  	 7  
	                  
                     Nursery Rhymes -
      Vocal  	 115  	 7  
	                  
                     Sing-A-Long, Camping
      Songs  	 26  	 10  
	                  
                     Songs of Faith 
    	 24  	 11  
	                  
                     Songs Of Inspiration 
    	 199  	 12  
	                  
                     Adventure Stories 
    	 8  	 17  
	                  
                     Aesop's Fables 
    	 81  	 17  
	                  
                     Cooking Courses 
    	 10  	 20  
	                  
                     Fairy Tales 
    	 25  	 20  
	                  
                     Interactive Role
      Playing  	 7  	 21  
	                  
                     Totals 
    	 603  	  
	  
	 Children's Alternative Versions  	  	  
	                  
                     Lullabies  	 6  	 22  
	                  
                     Nursery Rhymes -
      Instrumental  	 1  	 22  
	                  
                     Nursery Rhymes -
      Vocal  	 95  	 22  
	                  
                     Sing-A-Long, Camping
      Songs  	 4  	 25  
	                  
                     Totals 
    	 106  	  
	  
	 Classical Music  	  	  
	                  
                     Bach  	 29  	 27  
	                  
                     Beethoven  	 56  	 27  
	                  
                     Berlioz  	 6  	 29  
	                  
                     Bizet  	 28  	 29  
	                  
                     Brahms  	 16  	 29  
	                  
                     Chopin  	 16  	 30  
	                  
                     Debussy  	 8  	 30  
	 Table of Contents  

 Initials:___SR ___DH 

 SR Digital Music Distribution Agreement Jan 11, 2005 

  Page 6 

	  	 # of Selections  	 Page#  
	 Classical Music  	  	  
	                  
                     Dvorak 	 24 	 31
	                  
                     Handel  	 49 	 31 
	                  
                     Haydn  	 8 	 32 
	                  
                     John Strauss 
    	 10 	 32
	                  
                     Mendelssohn 
    	 14 	 33 
	                  
                     Mozart  	 18 	 33 
	                  
                     Ravel  	 8 	 33 
	                  
                     Schubert  	 11 	 34 
	                  
                     Tchaikovsky 
    	 12	 34
	                  
                     Verdi  	 12 	 34 
	                  
                     Vivaldi  	 29 	 35
	                  
                     Wagner  	 5 	 35 
	                  
                     Totals 
    	 359 	  
	  
	 Classical Vocals  	  	  
	                  
                     Opera  	 52 	 36 
	                  
                     Virtuosos  	 75 	 37 
	                  
                     Totals 
    	 127 	  
	  
	 Country  	  	  
	                  
                     Dance Collections 
    	 37  	 40 
	                  
                     Totals 
    	 37  	  
	  
	 Dance Music  	  	  
	                  
                     Big Band  	 110  	 41 
	                  
                     Dance Collections 
    	 197  	 43 
	                  
                     Latino  	 235  	 48 
	                  
                     Polkas & Waltzes 
    	 247  	 54 
	                  
                     Totals 
    	 789  	  
	  
	 Easy Listening  	  	  
	                  
                     Candle Light Favorites 
    	 113  	 62 
	                  
                     Romantic Themes 
    	 303  	 65 
	                  
                     Sounds Of Nature 
    	 28  	 73 
	                  
                     Totals 
    	 444  	  
	 Table of Contents  

 Initials:___SR ___DH 

 SR Digital Music Distribution Agreement Jan 11, 2005 

  Page 7 

	 

		
# of Selections 
		
Page# 
	
	
Holiday Favorites 
		 

		 

	
	
                                  Christmas - Instrumental 
		
752 
		
74 
	
	
                                  Christmas - Vocal 
		
422 
		
94 
	
	
                                  Totals 
		
1174 
		 

	
	 

	
	
Inspirational 
		 

		 

	
	
                                  Inspirational - Contemporary 
		
262 
		
105 
	
	
                                  Inspirational - Vocal 
		
187 
		
111 
	
	
                                  Totals 
		
449 
		 

	
	
Jazz 
		 

		 

	
	
                                  Original Recordings 
		
135 
		
117 
	
	
                                  Totals 
		
135 
		 

	
	 

	
	
Rock & Pop 
		 

		 

	
	
                                  Alternative Rock 
		
18 
		 121  
	
                                  Electronic 
		
34 
		
121 
	
	
                                  Rap 
		
26 
		 122  
	
                                  Reggae 
		
58 
		
123 
	
	
                                  Rhythm & Blues 
		
259 
		 124  
	
                                  Symphonic Rock 
		
118 
		 131  
	
                                  Techno - Jungle 
		
28 
		 134  
	
                                  Tributes To - Instrumental 
		
109 
		 135  
	
                                  Tributes To - Vocal 
		
301 
		 141  
	
                                  Vintage Rock - Original Artists - New Recordings 
		
297 
		
148 
	
	
                                  Vintage Rock - Original Recordings 
		
256 
		
156 
	
	
                                  Vintage Rock - Sound Alikes 
		
49 
		
163 
	
	
                                  Totals 
		
1553 
		 

	
	 

	
	
Specialty 
		 

		 

	
	
                                  Wedding Music 
		
13 
		 165  
	
                                  Wrestling Music 
		
32 
		
165 
	
	
                                  Totals 
		
45 
		 

	
	 

	
	
Stage & Screen 
		 

		 

	
	
                                  Movie Themes 
		
316 
		
167 
	
	
                                  Stage & Screen Music 
		
165 
		 175  
	
                                  Totals 
		
481 
		 

	

 Initials:___SR ___DH 

 SR Digital Music Distribution Agreement Jan 11, 2005 

  Page 8 

	 

		
# of Selections 
		
Page# 
	
	
World Music 
		 

		 

	
	
                                  African 
		 22  	 181  
	
                                  American 
		
111 
		
181 
	
	
                                  American Songwriters 
		
38 
		 184  
	
                                  Asia 
		
11 
		
185 
	
	
                                  Celtic 
		 93  	 186  
	
                                  England 
		
11 
		
188 
	
	
                                  Folk Music 
		 22  	 188  
	
                                  Gypsy Music 
		 29  	
189 
	
	
                                  Hawaiian Melodies 
		
14 
		
190 
	
	
                                  Mediterranean 
		 11  	 190  
	
                                  Totals 
		
362 
		 

	

 Initials:___SR ___DHFiled by Automated Filing Services Inc. (604) 609-0244 - Sound Revolution Inc. - Exhibit 10.8

 Page 1 of 19 

 gravit-e technologies 

 May 3, 2005

  Re: Engagement of Services 

 Sound Revolution Recordings Inc.

  345 West 11th Avenue, Unit 4

  Vancouver, BC V5Y 1T3

  Attention: Penny Green 

 Dear Ms. Green: 

 As discussed and agreed upon, Gravit-e Technologies Inc. (“Gravit-e”)
  is prepared to develop the charitytunes.com website for Sound Revolution Recordings
  Inc. (“The Client”) in accordance with the proposal dated April
  14 (“The Proposal”) and including a feature allowing music listeners
  to post ratings and reviews for songs based on acceptance of the following terms
  and conditions: 

	 1)      	 Gravit-e has quoted the development costs for the charitytunes.com website
      at $11,550, including custom development, standard application hosting
      and necessary hardware purchases. These costs do not include fees for SSL
      certificate registration, credit card processing service or any other item
      not explicitly defined in The Proposal. The quoted costs are broken down
      as follows: 
	 

	   	Description		 Price 
	 Application Licensing  	 	 $ 	 170 per month plus $1,300 setup 
	 Custom Development  	 	 $ 	 7,500 
	 Custom Application  	 	 $ 	 750 
	 Documentation  		 	  
	 Custom Application Support  	 	 $ 	 375 per year, starting year two 
	 Hardware  	 	 $ 	 2,000 
	 Total  	 	 $ 	 170 per month plus $11,550 setup, development and hardware
	  		 	 

	 2)      	 The development period is estimated to be three months (including beta
      testing), after which the site will be ready for public launch. 
	 
	 3)      	 Gravit-e is willing to accept payment for $4950 of the total costs
      of $11,550 in the form of free trading stock, and $825 of the total
      costs in stock which is restricted from sale for a period of one year. All
      stock references in this agreement refer to the common stock of Sound Revolution,
      Inc. 
	 

 Page 2 of 19 

	 4)      	 Payment of the $11,550 is to be made with an initial cash deposit
      of $3,300 for standard application setup and hardware procurement. Payment
      for the balance of $8,250 is to be made in installments, with the first
      payment occurring one month following the start of development and consisting
      of $2,475 in cash and $825 in restricted stock. A second payment
      consisting of $2,475 in free trading stock will occur two months following
      the start of development. A final payment of $2,475 in free trading
      stock will be made upon substantial completion of development. 
	 
	 5)      	 If free trading stock is unavailable by the date of substantial completion
      or Gravit-e is unable to sell the free trading stock to cover the amount
      owed within one month of substantial completion The Client will provide
      a cash payment for the outstanding balance within thirty days. 
	 
	 6)      	 Monthly licensing/hosting fees of $170 will commence following the
      earliest of either initial public access to the website or substantial completion
      of development. This fee includes 50 MB of web storage, 1 GB of Traffic
      and 2 IMAP Email accounts. Costs for exceeding these included amounts are
      based on the following schedule of fees: 
	 

	 	 Description  		 Price  
	 50 MB Web/Database  	 	 $ 	 5 per month 
	 Storage  		 	  
	 1 GB Bulk Storage  	 	 $ 	 10 per month 
	 Additional Email Accounts  	 	 $ 	 2 per address per month 
	 Additional Traffic  	 	 $ 	 2 per GB 
	 Email Archiving Service  	 	 $ 	 3 per address per month plus storage costs 
	 Domain Alias/Forward  	 	 $ 	 20 setup 
	 Additional Domain Setup  	 	 $ 	 20 setup 
	 Archived Mail Retrieval  	 	 $ 	 50 per incident 
	 Restoration from Backups  	 	 $ 	 50 per incident 

	 	 Because The Client is purchasing storage hardware, there will be no monthly
      charges for storage of the files in the song library itself. 
	 
	 7)      	 Exclusive ownership and copyright for source code for any applications
      or modules which are entirely custom developed by Gravit-e on behalf of
      The Client is held by the Client. In exchange, The Client grants Gravit-e
      an unrestricted license to continue to use source code in any fashion so
      long as it does not result in direct competition to The Client. 
	 

 Page 3 of 19 

	 8)      	 Additional conditions regarding ownership and licensing of source code
      are defined for the following three scenarios: 
	 

	 	 1.	 The client wishes to use Gravit-e's applications
      in an Intranet environment or on self-hosted servers. In this situation
      Gravit-e will provide the client with the option to license the source code.
      Upgrades and support will continue to be provided for the software for a
      reduced regular monthly fee. 
	  
	 	 2. 	 The client wishes to use a hosting provider other than
      Gravit-e. In this situation Gravit-e will provide the client with the
      ability to license source code and take their web site and business applications
      with them to another web host. Upgrades will be on a case-by-case version.
    
	  
	  	 3.	 The client wishes to have a third party customize their
      Gravit-e hosted site. This will be permitted only under certain strict
      conditions (see below). 
	  
	  	Licensing fees will be based on the
      following formulas. Upgrade fees do not apply to clients using applications
      in an Intranet or self-hosted environment (Scenario 1) who will instead
      be required to pay a monthly fee – equal to half the standard monthly
      licensing fee – for maintenance and support of the software. 
	 
	  	Monthly License Fee (Applications)
	 	 Initial Licensing – 24 * Monthly Fee (Max
      Users)  
	 	 Major Upgrades – 18 * Monthly Fee (Max Users).
      Not applicable in  Scenario 1.  
	  
	 	 One-Time Fee (Modules)  
	 	 Initial Licensing – 2 * Setup Fee  
	 	 Major Upgrades – Setup Fee. Not applicable
      in Scenario 1.  
	  
	 	 Depending on scenario, licensed code will be subject
      to some or all of  the following conditions:  

  	
      Licensed source code will be permitted to be used in
        a production environment for the domain(s) specified at the time of licensing.
        If required, copies of the source code will also be permitted to be used
        in development and staging environments.

    

  

 
Page 4 of 19

  

     Ownership and copyright of source code for standard applications 
      resides in Gravit-e, and further copying and/or distribution of the 
      source code is strictly forbidden. 

    	Unobfuscated source code will be provided only for the specific 
      applications you have licensed. If necessary, encoded source code 
      will also be provided for any external code the application may  depend
      on. 

    

    	 Licensing of the source code constitutes a branch of the  software,
      and upgrades and bug fixes will not be provided for the  newer versions.
      Should the licensee wish to obtain such upgrades,  updated source code
      may be obtained for an additional licensing  fee.  

    

    	Basic installation and configuration instructions for the licensed 
      applications will be included in the licensing fee. Additional services 
      and support for installation are available at standard hourly rates. 

    

    	Licensee will be responsible for ensuring that any third party  programmers
      who work on the source code adhere to the restrictions on distribution outlined
      above. If specifically requested  by Gravit-e, third party programmers
      may be required to sign a non-  disclosure agreement.  

    

    	Code altered by third party programmers must either be hosted  on
      a dedicated or specially designated shared server, or alternately 
      be submitted to Gravit-e for an auditing and/or automated application testing
      prior to being placed on live servers. Any necessary code audits will be
      billed to the client at standard hourly  rates.  

  

	9)	 Any violation of these conditions will constitute
      breach of the licensing conditions and will result in termination of the
      client's license for use of the source code. 
	 	  
	10)	 Any hardware purchased by Gravit-e on behalf of
      The Client will be owned in name by Gravit-e. If service is discontinued,
      The Client may purchase the hardware from Gravit-e for one dollar. 
	 	  
	11)	 Gravit-e reserves the right to increase monthly
      fees as necessary. Application licensing fees will not be increased by an
      amount exceeding ten percent per year. 

 Page 5 of 19 

	12)	 All figures are quoted in CAD $. 

We look forward to working with you on this project. If you have any questions
  or concerns, please do not hesitate to call me at (604) 637-6567.

 Please indicate your agreement of these terms by completing the acceptance
  on the accompanying copy of this letter and returning it to us at your earliest
  convenience. 

 Yours Truly, 

 /s/ Nick Oostveen 

 Nick Oostveen

  President & CEO

  Gravit-e Technologies Inc. 

 The terms of engagement in this letter are accepted. 

	 Name:  	 )  	  
	     Sound Revolution  	 )  	  
	 Title/Position:  	 )  	  
	     Recordings Inc.  	 )  	  
	 Date:  	 )  	 /s/ Penny Green  
	     May 3, 2005 	)  	  
	 Purchase Order #:  	 )  	 per: Penny Green  

 Page 6 of 19 

	1.0	  Document Overview  	2  
	  
	2.0	  Project Brief  	2  
	2.1	 Project Components  	 2  
	2.1.1	 Artist Database 	 2 
	2.1.2	  Song Database  	 3  
	2.1.3	 Charity Database  	 3  
	2.1.4	 Static Website Content  	 3  
	2.1.5	 Charity Tunes Engine  	 3  
	2.1.6	 Tracking and Reporting  	 4  
	2.1.7	 Other Functionality  	 4  
	2.2	 Standard Applications  	 4  
	2.3	 Custom Development  	 5 
	2.4	 Recommendations  	 5 
	2.5	 Future Growth  	 5 
	  
	3.0	  Benefits and Advantages  	6  
	  
	4.0	  Hosting  	6 
	  
	5.0	  Background Information  	7  
	5.1	 Development Team  	 7 
	5.2	 Development Methodology  	 8  
	5.3	 Technology Platform  	 9  
	  
	 Appendix A – Breakdown
      of Costs	9
	  
	 Appendix B – Source
      Code Licensing, Distribution and Ownership	11
	  
	 Appendix C – Glossary
      of Terms	13

 Page 7 of 19 

 1.0 Document Overview 

   This document consists of five primary sections, the first of which contains
    this overview. The second and third sections contain a detailed breakdown
    of the project and its components, recommended solutions and information on
    the unique advantages which Gravit-e has to offer. Section 4 contains information
    and recommendations on hosting your website and applications. Section 5 offers
    background information on Gravit-e as a company, our development methodologies
    and the team who will be working with you to ensure the success of your project.
  

   This proposal and the prices within will be honored for a period of one
    month from the date of issue. This proposal does not include any graphic design
    work. 

 2.0 Project Brief 

   Charity Tunes will have a library of music available for sale online, as
    well as provide a portal to information on artists who are featured on the
    site. Partial proceeds from each sale will be donated to various charities
    which have signed up to be a part of the Charity Tunes network. 

 2.1 Project Components 

   The project consists of a number of major components. Core features and
    functionality of each are outlined in the following sub-sections. 

	 2.1.1 Artist Database 
	 
	 	 13)      	 Artists and Artist Managers self-manage their music, pictures and bio
      information. 
	 
	 	 14)      	 Changes to artist database must be approved prior to appearing on the
      website. 
	 
	 	 15)      	 Web site will automatically create artist pages based on the information
      they have entered. 
	 
	 	 16)      	 Artists will have the ability to sign themselves up on the web site.
    
	 
	 	 17)      	 Artists will be able to restrict their music to go to only certain charities.
    
	 
	 	 18)      	 Artists can be grouped and managed by an Artist Manager. Artists whose
      accounts are controlled by a manager will not be able to self-manage themselves,
      changes will have to go through the Manager. 
	 

 Page 8 of 19 

	 2.1.2 Song Database 
	 
	 	 19)      	 Current database contains approximately 7,000 songs, will grow significantly.
    
	 
	 	 20)      	 Preview clips (20 seconds) of songs will automatically be created when
      a new song is added to the database. These auto-created clips will be able
      to be overridden by manually uploaded preview clips. 
	 
	 	 21)      	 Songs will be searchable by a variety of criteria. 
	 
	 	 22)      	 The percentage of sale for each song which goes to charity will be user
      definable (for example, artists will be able to donate 100% of their proceeds
      from a sale to charity). 
	 
	 2.1.3 Charity Database 
	 
	 	 23)      	 Charities will register themselves through the website and self manage
      their information, including logo and description. 
	 
	 	 24)      	 Changes to charity database must be approved prior to appearing on the
      website. 
	 
	 	 25)      	 Web site will automatically create charity pages based on the information
      they have entered. 
	 
	 2.1.4 Static Website Content 
	 
	 	 26)      	 Static pages (ie. Home, About US, FAQ) will be managed and updated through
      the CMS. 
	 
	 	 27)      	 Dynamic CMS blocks will allow songs and artists to be easily embedded
      into static pages. 
	 
	 2.1.5 Charity Tunes Engine 
	 
	 	 28)      	 The e-commerce interface to the song database, allowing users to purchase
      music. 
	 
	 	 29)      	 Users must register and log in before being able to listen to previews.
    
	 
	 	 30)      	 Email address will be confirmed prior to activation of a newly registered
      account. 
	 
	 	 31)      	 Songs will be able to be browsed by genre or searched for based on various
      criteria. 
	 
	 	 32)      	 Enable purchase of individual songs or pre-set packages. 
	 
	 	 33)      	 Offer option for a subscription package, where subscribers are emailed
      a package of songs on a regular basis. 
	 

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	 	 34)      	 Secure download/delivery of songs, ensuring that each user downloads
      a song only once. 
	 
	 	 35)      	 Gift purchases, where songs are emailed to a user to download. 
	 
	 	 36)      	 Charity affiliate-style program where users directed to the site from
      a particular charity will have all their purchases automatically set to
      benefit that charity. 
	 
	 	 37)      	 Ability to view listing of top songs. 
	 
	 	 38)      	 Song recommendation engine. 
	 
	 2.1.6 Tracking and Reporting 
	 
	 	 39)      	 Track various aggregate statistics, including sales, preview listens
      and hits on artist pages. 
	 
	 	 40)      	 Allow artists and artist managers to log in and view account balances.
    
	 
	 	 41)      	 Allow charities to log in and view account balances. 
	 
	 2.1.7 Other Functionality 
	 
	 	 42)      	 Mailing list sign-up and email broadcast capabilities. 
	 
	 	 43)      	 Management functionality to view orders, view account balances for charities,
      artists and artist managers and indicate that payments have been made against
      their accounts. 
	 

 2.2 Standard Applications 

   A majority of the required functionality can be handled by Gravit-e's standard
    applications and modules. All standard software packages are web based applications,
    allowing users to maintain their website directly from their browser. With
    Gravit-e's web based applications updates are automatic – you'll never
    face the issues and costs traditionally associated with software upgrades.

   The following applications will be used: 

   4. Gravit-e CMS: Content Management System which allow users with
    very little training or technical knowledge to manage and maintain their website.
    Gravit-e CMS is designed to be extremely flexible and has extensive support
    for modules and integration with custom applications. The CMS acts as a base
    architecture for all publicly accessible applications and content. 

 Page 10 of 19 

   5. E-Commerce Engine: Gravit-e's E-Commerce engine is the foundation
    for every e-commerce website we develop. This engine differs from standard
    “shopping cart” style applications in its flexibility, ability
    to be customized, and because it does not make any assumptions about how things
    should function for your business. The E-Commerce engine integrates seamlessly
    with our CMS and upcoming CRM and Accounting (revenue sub-ledger and reporting)
    applications. 

   6. E-Mail Broadcast Suite: Sometimes referred to as a listserv, this
    application enables customers to manage large groups of contacts and to organize
    and send out email marketing campaigns and newsletters. In addition to this
    core functionality, basic informational statistics on customer contacts are
    made available.

 2.3 Custom Development 

   In order to achieve the desired functionality, custom development will be
    required. In some cases, custom developed items are not absolutely necessary.
    As such, if cost is prohibitive these items can be reduced in scope or put
    on hold until the budget is available. Detailed pricing is outlined in Appendix
    B. 

 2.4 Recommendations 

   Because of the size of the music library and potential for growth it is
    strongly recommended that a dedicated Network Attached Storage (NAS) device
    or Storage Server be purchased. This server would be owned by Sound Revolution
    and managed by Gravit-e. It would store only the music library; web and database
    files would be hosted on Gravit-e's servers. The recommended configuration
    for this machine would include 2x250GB hard drives configured in a RAID 1
    array for fail-over protection. This would result in 250GB of available storage,
    or enough for approximately 62,500 songs (calculated based on 4MB per song).
  

 2.5 Future Growth

   Gravit-e's application and server infrastructure is designed around a 3-tier
    architecture. Our servers are designed to function as a cluster, which each
    tier being responsible for a specific type of task. As the need to increase
    capacity arises, servers will be seamlessly added into the cluster to address
    bottlenecks on the tier which they occur. This approach ensures that your
    applications and website are always running at peak efficiency, and that growing
    pains are reduced to the absolute minimum possible. 

 Page 11 of 19 

	 3.0 Benefits and Advantages 
	 
	 	 44)      	 Monthly licensing of standard applications means lower up-front costs
      and never having to worry about upgrade costs or out of date software. 
	 
	 	 45)      	 Gravit-e's investment in Zend Platform means your website and applications
      are running on top of a tried-and-tested, enterprise- ready platform. 
	 
	 	 46)      	 Gravit-e's E-Commerce Engine is designed to handle electronic media and
      to not have any preconceived notions of what a “product” is,
      resulting in reduced customization costs and a smoother working system.
    
	 
	 	 47)      	 Zend Platform's download engine provides a secure and efficient method
      of delivering files which can increase the number of simultaneous downloads
      per server up to ten times, reducing hardware costs. 
	 
	 	 48)      	 3-tier architecture allows for smooth and seamless upgrades, and in many
      cases means our standard hosting plans provide better performance and fail-over
      support than our competitors' more expensive dedicated server plans. 
	 
	 	 49)      	 Because Gravit-e is responsible for both development and application
      hosting it ensures that problems never arise due to different platform versions
      or configurations as is frequently the case when using third-party hosts.
    
	 
	 	 50)      	 All of Gravit-e's software applications have been designed from the ground
      up for PHP 5, the most current and powerful version of the popular programming
      language. The majority of our competitors' applications are designed for
      PHP4, a platform which has not received a major upgrade since 2002. 
	 
	 	 51)      	 Gravit-e is willing to offer bandwidth at wholesale costs for high- usage
      clients. 
	 

 4.0 Hosting 

   Over the last several years website hosting has become commoditized, resulting
    in an extremely competitive, high volume, low margin business where quality
    tends to suffer. Because of this, Gravit-e instead focuses on application
    hosting for the software we develop. Gravit-e does offer standard hosting
    packages for clients on a limited basis if the situation warrants it. 

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   Gravit-e offers a variety of value-added services for our application hosting
    packages, including staging domains, spam filtering, virus scanning and optional
    email archiving. We also offer dedicated servers – typically to be used
    in conjunction with our shared server infrastructure – to clients with
    specific needs which are not met by our shared server farm. 

 5.0 Background Information 

   Gravit-e Technologies was created to solve a problem. For years the IT infrastructure
    of small and mid-sized business has been disadvantaged when compared to large
    enterprises. Traditionally smaller companies have had the advantage when it
    comes to quickly responding to change, giving them a competitive advantage
    over their larger counterparts. Modern information technology has changed
    this, providing companies with unprecedented real-time insight into their
    day-to-day operations. Small and mid-sized organizations could benefit just
    as much from these tools and technologies, however the difficulty in finding
    a solution somewhere between the extreme costs of large enterprise systems
    and the limited flexibility of off the shelf applications has forced millions
    of small enterprises to continue operating with an inadequate IT infrastructure.
  

   Today there are a number of companies that specialize in custom software
    applications for the SMB (Small to Mid-size Business) marketplace. Unfortunately,
    while effective, the entirely custom nature of these solutions makes them
    far more costly then necessary. Gravite's founders recognized the problems
    inherent in this approach, and developed a model to provide custom business
    solutions which are based on a library of standardized applications allowing
    Gravit-e to quickly and affordably deliver effective, functional solutions
    to its customers. 

 5.1 Development Team 

   Prior to founding Gravit-e, Nick Oostveen held the position of Operations
    Manager at a small Surrey based software development company; HI-PERformance
    Enterprises. There, he successfully led development teams on a number of business-critical
    projects, including application development for high-profile clients such
    as the Government of Ontario and Leading Edge BC. E-commerce applications
    designed and developed by Nick are currently responsible for processing several
    million dollars in transactions per month. Nick was educated at Simon Fraser
    University where he received a Bachelor of Arts in Communication and a Certificate
    in Computing Studies. 

 Page 13 of 19 

   Tyler Thiessen has been working with Linux based computers for nearly a
    decade. Tyler has been employed as a lead Systems Administrator for nearly
    four years, successfully maximizing uptime and maintaining security for a
    numerous mission critical servers. Tyler’s systems administration experience
    is all-encompassing, including web, mail, application and database servers.
    Prior to holding this position, Tyler was employed by two separate organizations
    as a programmer for Linux-based applications. 

   Over the past eight years Lee Miller was employed by several organizations
    in variety of technical roles; including senior software engineer, software
    architect, and independent consultant. During this time he worked on several
    large e-commerce websites, internal portals for Fortune 500 companies, complex
    systems integration projects, and has had his work featured on CNN and MSNBC.
    Lee received a Bachelor of Science degree from Dalhousie University, with
    an advanced double major in Computer Science and Economics. 

 5.2 Development Methodology 

   Gravit-e utilizes an iterative development process. Quite simply this means
    that we never leave our clients out of the loop, and that every few weeks
    a development cycle is completed. Each cycle has a well-defined set of objectives,
    and produces a partial implementation of the final system. Successive iteration
    builds on previous iterations, acting to evolve and refine the system until
    the final product is complete. Iterative development also greatly helps in
    controlling changes to requirements and feature creep – major sources
    of trouble for projects which can lead to late delivery, dissatisfied customers,
    and frustrated developers. 

   All software developed by Gravit-e resides on an internal staging server
    where automated tests are performed nightly. All development is controlled
    through the use of a source code management system, providing protection against
    accidental deletion or overwriting of files, and the ability to smoothly roll-back
    to a previous version of the software or your web site if the need arises.
  

 Page 14 of 19 

 5.3 Technology Platform 

   Gravit-e's applications are predominately based on open source software.
    This allows us to pass the savings from avoiding costly licensing fees onto
    our you, and helps to ensure the security and stability of our servers. All
    of Gravit-e's servers are Linux based, with web applications primarily based
    on Apache, MySQL and PHP (commonly referred to as LAMP). All web and application
    servers are further equipped with the Zend Platform – an integrated
    platform for PHP which delivers enhanced reliability, scalability and interoperability
    for mission critical applications. 

   All of Gravit-e's hardware is purchased from tier-1 manufacturers who are
    known for quality and reliability. Currently Gravit-e's server infrastructure
    is making exclusive use of Dell equipment. Our entire network has been designed
    to allow for seamless growth as needed. 

 Appendix A – Breakdown of Costs 

   A more detailed description of each of these items is available in Section
    2. The Schedule of Fees may or may not be applicable to this project, and
    are included for reference only. 

	 	 Application Licensing  		 	  
	  
	 Description  		 Price  
	 CMS (1-5 Users)  		$ 	 110 per month plus $250 setup  
	 (50 MB Storage, 1 GB Traffic, 2  		 	  
	 Email Accounts)  		 	  
	 Email Broadcast Software  		$ 	 20 per month plus $250 setup  
	 E-Commerce Engine  		$ 	 40 per month plus $800 setup  
	  
	 	 Custom Development  		 	  
	  
	 Description  		 Price  
	 Transaction Processor (Moneris)  	 	$ 	 100  
	 Integration  		 	  
	 Song Database/Product Type  	 	$ 	 300  
	 Restrict Songs to Particular  	 	$ 	 300  
	 Charities  		 	  
	 CMS Dynamic Artist/Song Blocks  	 	$ 	 500  
	 Auto-Creation of Preview Clips  	 	$ 	 500  

 Page 15 of 19 

	 Music Subscription Packages  	 	 $ 	  1,000  
	 Song Download Protection  	 	 $ 	  300  
	 Artist and Artist Manager  	 	 $ 	  1,500  
	 Database  		 	  
	 Charity Database  	 	 $ 	  500  
	 Database Driven Artist Pages  	 	 $ 	  200  
	 Database Driven Charity Pages  	 	 $ 	  100  
	 “Select Charity” on Checkout 
    	 	 $ 	  1,000  
	 Self-Management Approval  	 	 $ 	  400  
	 Artist/Charity Royalty Calculation  	 	 $ 	  800  
	 Engine  		 	  
	 Custom Application Support  		 	 5% of total development cost per year  
	 Custom Application  		 	 10% of total custom development cost.  
	 Documentation  		 	  
	  
	 	 Hardware  		 	  
	  
	 Description  		 	 Price  
	 Network Attached Storage  		$ 	 2000 including setup  
	 (500GB)  		 	  
	 	 Totals  		 	  
	  
	 Description  		 	 Price  
	 Application Licensing  		$ 	 170 per month plus $1,300 setup  
	 Custom Development  	 	 $ 	  7,500  
	 Custom Application  	 	 $ 	  750  
	 Documentation  		 	  
	 Custom Application Support  		$ 	 375 per year, starting year two  
	 Hardware  	 	 $ 	  2,000  
	 Total  		$ 	 170 per month plus $11,550 setup,  
	  		 	 development and hardware  
	  
	 	 Schedule of Fees  		 	  
	  
	 	 Description  		 	 Price  
	 	 50 MB Web/Database Storage  		 	 $5 per month  
	 	 1 GB Bulk Storage  		 	 $10 per month  
	 	 Additional Email Accounts  		 	 $2 per address per month  

 Page 16 of 19 

	 	 Additional Traffic  		$ 	 2 per GB  
	 	 Email Archiving Service  		$ 	 3 per address per month plus storage  
	 	  		 	 costs  
	 	 Domain Alias/Forward  	 	 $ 	  20  	 setup  
	 	 Additional Domain Setup  	 	 $ 	  20  	 setup  
	 	 Archived Mail Retrieval  	 	 $ 	  50  	 per incident  
	 	 Restoration from Backups  	 	 $ 	  50  	 per incident  

 Appendix B – Source Code Licensing, Distribution and Ownership 

   While the vast majority of clients make use of Gravit-e's application hosting
    services, there is a minority – particularly larger organizations –
    who may wish to self-host applications. In order to satisfy these clients,
    Gravit-e offers provisions for direct licensing of its source code and applications
    to clients for use on external servers. 

   The are three scenarios which Gravit-e will address: 

   The client wishes to use Gravit-e's applications in an Intranet environment
    or on self-hosted servers. In this situation Gravit-e will provide the
    client with the option to license the source code. Upgrades and support will
    continue to be provided for the software for a reduced regular monthly fee.
  

   The client wishes to use a hosting provider other than Gravit-e.
    In this situation Gravit-e will provide the client with the ability to license
    source code and take their web site and business applications with them to
    another web host. Upgrades will be on a case-by-case version. 

   The client wishes to have a third party customize their Gravit-e hosted
    site. This will be permitted only under certain strict conditions (see
    below). 

   Licensing fees will be based on the following formulas. Upgrade fees do
    not apply to clients using applications in an Intranet or self-hosted environment
    (Scenario 1) who will instead be required to pay a monthly fee – equal
    to half the standard monthly licensing fee – for maintenance and support
    of the software. 

   Monthly License Fee (Applications) 

    Initial Licensing – 24 * Monthly Fee (Max Users)

 Page 17 of 19 

   Major Upgrades – 18 * Monthly Fee (Max Users). Not applicable in Scenario
    1. 

   One-Time Fee (Modules)

    Initial Licensing – 2 * Setup Fee

    Major Upgrades – Setup Fee. Not applicable in Scenario 1. 

   Depending on scenario, licensed code will be subject to some or all of the
    following conditions: 

  	
       Licensed source code will be permitted to be used
        in a production environment for the domain(s) specified at the time of
        licensing. If required, copies of the source code will also be permitted
        to be used in development and staging environments. Ownership and copyright
        of source code for standard applications resides in Gravit-e, and further
        copying and/or distribution of the source code is strictly forbidden.

      

    

    	
      Source code for any custom modifications made directly
        to standard applications by Gravit-e on behalf of the client will be provided
        free of charge subject to the same restrictions as above.

    

  	
       If requested by the client, ownership and copyright
        for source code for any applications or modules which were entirely custom
        developed on behalf of the client will be signed over in exchange for
        an unrestricted license for Gravit-e to continue to use the source code
        as it sees fit. 

    

    	
       Unobfuscated source code will be provided only for
        the specific applications you have licensed. If necessary, encoded source
        code will also be provided for any external code the application may depend
        on.

    

  	
       Licensing of the source code constitutes a branch
        of the software, and upgrades and bug fixes will not be provided for the
        newer versions. Should the licensee wish to obtain such upgrades, updated
        source code may be obtained for an additional licensing fee.

      

    

    	 Basic installation and configuration instructions for the licensed applications
      will be included in the licensing fee. Additional services and support for
      installation are available at standard hourly rates.

    

  

 Page 18 of 19 

  	
       Licensee will be responsible for ensuring that any
        third party programmers who work on the source code adhere to the restrictions
        on distribution outlined above. If specifically requested by Gravit-e,
        third party programmers may be required to sign a non-disclosure agreement.
      

    

	
       Code altered by third party programmers must either
        be hosted on a dedicated or specially designated shared server, or alternately
        be submitted to Gravit-e for an auditing and/or automated application
        testing prior to being placed on live servers. Any necessary code audits
        will be billed to the client at standard hourly rates. 

    

	
       Any violation of these conditions will constitute
        breach of the licensing conditions and will result in termination of the
        client's license for use of the source code. 

    

 Appendix C – Glossary of Terms 

   Application Hosting: Typically provided by an Application Service
    Provider (ASP), refers to the management and distribution of software-based
    services and solutions to customers from a central data center. 

   Back End: Refers to private, administrative portions of the website,
    accessible only by those responsible for maintaining the website and its services
    (the client). This section is always password protected, and will often be
    further secured so that only specific IP Addresses are permitted to connect.
  

   BIS: Business Information Systems 

   Colocation: Housing one or more servers at a third party data center.

  CMS: Content Management System.

  CRM: Customer Relations Management. 

   Data Center: Dedicated facility which includes resources such as
    a secured cage or cabinet, regulated power, dedicated Internet connection,
    security and support. 

   Extranet: Portion of a company’s Intranet to which access is
    granted to a limited subset of outside users. Typically users of an extranet
    would be a company’s customers, suppliers, etc. 

 Page 19 of 19 

   Front End: Refers to publicly accessible portions of the website.
    This may include password protected areas were visitors are required to log
    in to. 

   Intranet: Web site or web based applications which run on a private
    service located inside of a company’s local network. 

   IP Address: A unique identifier for an individual computer or Internet
    connection. Can be used to identify the physical location a web site user
    is connecting from. 

   SMB: Small to Mid-size Business. 

   Web Based Application: Software which runs on a remote server and
    is accessed through a web browser. Web based software has the benefit of being
    completely platform independent and of allowing rapid development. Typically
    these applications are executed over the Internet but may also be Intranet
    based. 

   Web Hosting: Providing customers with resources on and access to
    one or more servers to do with as they please (within limits, restrictions
    typically prohibit illegal or illicit content).

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