Document:

kl06075_ex10-1.htm

    
      

    

    Exhibit
      10.1

     

     

     Date:  As
      of June 13, 2007

    

     

     

    
      CONFIDENTIAL
        TREATMENT REQUESTED

       

      INFORMATION
        FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED AND IS IDENTIFIED
        BY THREE ASTERISKS, AS FOLLOWS “* * *”.  AN UNREDACTED VERSION OF THIS
        DOCUMENT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
        COMMISSION.

    

    
 

    LICENSE
      AGREEMENT

    

    

    Between:     (a)           NORTHERN
      FOODS plc, Northern Foods plc, 2180 Century Way, Thorpe Park, Leeds LS15 8ZB,
      United Kingdom, Attention: Carol Berry ("Licensee"),

    

    and

    

                                               (b)           GEORGE
      FOREMAN VENTURES, LLC, 100 North Wilkes-Barre Blvd., 4th Floor, Wilkes-Barre,
      PA
      18702, Attention: Efrem Gerszberg ("Licensor").

    

    PRINCIPAL
      TERMS

    

    Licensor
      grants to Licensee, its subsidiaries and affiliated entities under its own
      ownership or control the nonexclusive right during the Term to manufacture
      and
      the exclusive right during the Term to distribute and sell the Licensed Products
      to the Distribution Channels in the Territory subject to and in accordance
      with
      the terms and conditions set out below and in the Standard Terms and Conditions
      annexed hereto and incorporated herein by reference.

    

    These
      Principal Terms, and the Standard Terms and Conditions and all Exhibits, which
      are hereby incorporated by reference, shall be collectively referred to as
      the
      "Agreement."

    

    
      	
               

            	
              A.

            	
              "Licensed
                Property": The name, image and likeness of the boxing celebrity George
                Foreman.

            

    

    

    
      	
               

            	
              B.

            	
              "Licensed
                Products": Frozen meats, poultry and fish that utilize, use  or
                otherwise feature the Licensed Property on packaging or other sales
                materials.

            

    

    

    C.           "Territory":
      The United Kingdom and the Republic of Ireland.

    

    
      	
            	
              D.

            	
              "Distribution
                Channels": All food stores (including, withoutlimitation, supermarkets,
                grocery stores, produce markets, greengrocers, convenience stores
                and
                delicatessens) and food wholesalers operating in the
                Territory.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
               

            	
              E.

            	
              "Term":  The
                period commencing on the date of this Agreement and expiring on the
                second
                anniversary of the Date of Distribution, together with any extensions
                thereof as permitted herein.

            

    

    

    
      	
               

            	
              F.

            	
              “Initial
                Term”:  The period commencing on the date of this Agreement and
                expiring on the second anniversary of the Date of
                Distribution.

            

    

    

    
      	
               

            	
              G.

            	
              "Date
                of Distribution":  September 30, 2007 or, if earlier, the date
                on which the Licensee sells, distributes or otherwise makes available
                for
                immediate purchase, reasonable commercial quantities of the Licensed
                Products for sale in the Distribution
                Channels.

            

    

    

    
      	
               

            	
              H.

            	
              The
                "Advances":

            

    

    

    
      	
               

            	
               (i)

            	
              The
                "Year One Advance":  The sum of *** United States Dollars
                (US$***) of which *** United States Dollars (US$***) shall be paid
                to
                Licensor on or before the execution of this Agreement and of which
                ***
                United States Dollars (US$***) shall be paid to Licensor within five
                (5)
                days of the Date of Distribution.

            

    

    

    
      	
               

            	
              (ii)

            	
              The
                "Year Two Advance": The additional sum of *** United States Dollars
                (US$***) which shall be paid to Licensor on the later of (a) June
                1, 2008
                or (b) the first anniversary of the Date of
                Distribution.

            

    

    

    
      	
               

            	
               (iii)

            	
              Notwithstanding
                anything herein to the contrary:

            

    

    

    
      	
               

            	
              (a)
                only *** of the Year One Advance and *** of the Year Two Advance
                shall be recoupable against Royalties payable hereunder (i.e., ***
                United
                States Dollars (US$***) of each of the Year One Advance and the Year
                Two
                Advance shall be entirely
                non-recoupable);

            

    

    

    
      	
               

            	
               (b)
                subject to clause (a) above, only Royalties payable hereunder in
                connection with sales of Licensed Products during the period commencing
                on
                the Date of Distribution and continuing up to but excluding the first
                anniversary of the Date of Distribution (the "First Royalty Period")
                shall
                be recoupable against the Year One Advance (i.e., there shall not
                be any
                cross-collateralization with sales of Licensed Products during the
                Second
                Royalty Period); and

            

    

    
    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	 

    

    
      	
               

            	
              (c)
                subject to clause (a) above, only Royalties payable hereunder in
                connection with sales of Licensed Products during the period commencing
                on
                the first anniversary of the Date of Distribution and continuing
                up to but
                excluding the second anniversary of the Date of Distribution (the
                "Second
                Royalty Period") shall be recoupable against the Year Two Advance
                (i.e.,
                there shall not be any cross-collateralization with sales of Licensed
                Products during the First Royalty
                Period).

            

    

    

    
      	
               

            	
              I.

            	
              "Royalties":  All
                royalty payments to Licensor during the Initial Term shall be calculated
                and paid at the royalty rate of *** of the Net Invoice Amount (as
                such
                term is defined in Paragraph 9.1 of the Standard Terms and Conditions),
                and reported on a royalty report in a form subject to the approval
                of
                Licensor (such approval not to be unreasonably withheld or delayed).
                No
                Royalties for the Initial Term shall be due or payable by the Licensee
                under this Agreement until such time as the recoupable portion of
                the
                applicable Advance has been recouped as provided in Paragraph G
                above.  During the Option Period, all royalty payments shall be
                calculated and paid at the royalty rate of *** of the Net Invoice
                Amount
                and reported on a royalty report in a form subject to the approval
                of
                Licensor.

            

    

    

    J.           "Minimum
      Guaranteed Sum": Not applicable.

    

                           
      K.          
Services:

    

    
      	
               

            	
              (i)

            	
              Licensor
                shall cause George Foreman ("Celebrity") to perform the following
                services
                (the "Services") during the Term: Press/media appearances and photo
                shoots
                for Licensed Products and advertising of Licensed
                Products.

            

    

    

    
      	
               

            	
              (ii)

            	
              Celebrity
                shall perform the Services at times and places reasonably convenient
                to
                Celebrity and subject to Celebrity's other commitments; provided,
                however,
                that (a) in no event will Celebrity be required to perform more than
                ***
                days of Services during any period of 12 consecutive calendar months
                during the Term, (b) Celebrity shall not be required to
                render

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      the
        Services in connection with any such day(s) outside of Houston,
        Texas.  Licensee acknowledges that Celebrity shall not be required to
        perform services on any Saturday or Sunday, nor to perform services that
        would
        conflict with Celebrity's community and religious
        obligations.

    

     

    
      	
               

            	
              (iii)

            	
              Licensor
                shall have the right of approval over the general format of (e.g.,
                appearance on a talk-show), principal people involved with (e.g.,
                host of
                a talk-show) and any other celebrities with whom Celebrity may be
                asked to
                appear (but specifically excluding other celebrities appearing at
                different times at the same event or on the same program), if any,
                in
                connection with each personal appearance required of Celebrity pursuant
                to
                this Agreement.  Celebrity may, in his sole discretion, refuse
                to appear with any other celebrity at a personal appearance contemplated
                herein for any reason.  Celebrity will be given, within five
                days of a scheduled appearance, the name of any other celebrity with
                whom
                he will be asked to appear.  Celebrity will communicate his
                approval or disapproval of the joint appearance within 72 hours of
                the
                schedule personal appearance.

            

    

    

    
      	
               

            	
              (iv)

            	
              All
                reasonable out-of-pocket travel and other costs and expenses, including
                the cost of transportation, lodging and meals, incurred by Celebrity
                and
                Licensor in connection with Celebrity's appearances on behalf of
                Licensee
                shall be reimbursed by Licensee within forty-five (45) days of Licensee's
                receipt of documentation, including receipts, of such costs and
                expenses.  Licensee acknowledges that, to the extent Celebrity
                is required to travel more than 50 miles outside of Houston, Texas
                in
                connection with the performance of his services, Celebrity will be
                given a
                roundtrip first class ticket and, if used, a companion roundtrip
                first
                class ticket in an adjoining seat to Celebrity  (by air, if
                appropriate, and between Houston, Texas and the destination), exclusive
                limousine ground transportation and five-star first class hotel (suite,
                if
                available plus a separate room for Celebrity's companion)
                accommodations.  

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Notwithstanding
      the foregoing, Celebrity may elect to arrange for alternate means of
      transportation in lieu of any air transportation otherwise to be provided for
      by
      Licensee pursuant to the preceding sentence, for which Celebrity shall be
      entitled to be reimbursed, for his actual alternative transportation costs
      but
      in no event to exceed the costs of the first class air transportation offered
      by
      Licensee.

    
      	
            	
              L.

            	
              Payments
                and Statements of Account:  All statements of account required
                hereunder, and copies of all amounts payable hereunder shall be sent
                to:  George Foreman Ventures, LLC, 100 North Wilkes-Barre Blvd.,
                4th Floor, Wilkes-Barre, PA 18702, Attention: Efrem
                Gerszberg."  All amounts payable hereunder shall be paid by
                SWIFT international wire transfer in accordance with reasonably detailed
                instructions (such instructions to include, but not be limited to
                account
                number, SWIFT Code, bank address and sort code) to be furnished by
                Licensor from time to time.

            

    

    

    
      	
            	
              M.

            	
              “Option”:
                Licensee shall have the option on giving at lease six (6) months
                advance
                written notice to Licensor to extend the term of this Agreement for
                three
                (3) successive one (1) year periods (collectively the “Option Period”,
                with each yearly option being referred to as an “Option Year”) provided
                that:

            

    

    

    (i)           this
      Agreement has not been terminated as provided herein;

    (ii)           there
      is no event of default by Licensee that has not been cured at the time Licensee
      notifies Licensor that it elects to exercise its option or at the time the
      applicable Option Year commences; and

    (iii)           the
      conditions to extend the term for the applicable Option Year as set out below
      are satisfied in full as of the commencement of the Option Year.

    

    
      	
              (A)  

            	
              With
                regard to the First Option Year (being a period of 12 calendar months
                immediately following the expiration of the Initial Term) and conditional
                upon the Licensee having paid the Licensor Royalties during the First
                Royalty Period and Second Royalty Period in an amount equal to or
                greater
                than US$*** in aggregate, the Licensee shall pay the Licensor on
                or before
                commencement of the First Option Year the non-refundable sum of US$***
                (the “First Option Payment”). The First Option Payment shall be recoupable
                against Royalties payable by the Licensee during the First Option
                Year
                only. No Royalties

            

    

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    applicable
      to the First Option Year shall be due or payable by the
      Licensee until such time as an amount equal to US$*** has been recouped by
      the
      Licensee in full. By way of example, if the Royalties for the First Option
      Year
      are US$***, Licensee would pay Licensor Royalties of US$*** after recouping
      an
      amount equal to the First Option Payment (US$***).  Royalties shall be
      calculated and paid at a royalty rate of *** of the Net Invoice Amount for
      the
      duration of the First Option Year and the provisions of clause (H) shall be
      construed accordingly

    
 

    
      	
            	
              (B)

            	
              With
                regard to the Second Option Year (being a period of 12 calendar months
                immediately following the expiration of the First Option Year), and
                conditional upon the Licensee having paid the Licensor Royalties
                during
                the First Option Year equal to the greater of US$*** or the amount
                of
                Royalties payable during the Second Royalty Period, the Licensee
                shall pay
                the Licensor on or before commencement of the Second Option Year
                a
                non-refundable sum being the greater of (i) US$*** or (ii) the aggregate
                Royalties properly paid or payable by Licensee during the First Option
                Year (the “Second Option Payment”). The Second Option Payment shall be
                recoupable against Royalties payable by the Licensee during the Second
                Option Year only. No Royalties applicable to the Second Option Year
                shall
                be due or payable by the Licensee until such time as a sum equal
                to the
                Second Option Payment has been recouped by the Licensee. Royalties
                shall
                be calculated and paid at a royalty rate of *** of the Net Invoice
                Amount
                for the duration of the Second Option Year and the provisions of
                clause
                (H) shall be construed accordingly;
                and

            

    

     

    
      	
            	
              (C)

            	
              With
                regard to the Third Option Year (being a period of 12 calendar months
                immediately following the expiration of the Second Option Year),
                and
                conditional upon the Licensee having paid the Licensor Royalties
                during
                the Second Option Year  equal to or greater than the amount of
                Royalties properly paid or payable by Licensee in the First Option
                Year,
                the Licensee shall pay the Licensor on or before commencement of
                the Third
                Option Year the non-refundable sum of US$*** (the “Third Option Payment”).
                The Third Option Payment shall be recoupable against Royalties payable
                by
                the Licensee during the Third Option Year only. No Royalties applicable
                to
                the Third Option Year shall be due or payable by the Licensee until
                such
                

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    time as
      an
      amount equal to US$*** has been recouped by Licensee. Royalties shall be
      calculated and paid at a royalty rate of *** of the Net Invoice Amount for
      the
      duration of the Third Option Year and the provisions of clause (H) shall be
      construed accordingly.

     

    Licensee
      must notify Licensor in writing not less than six (6) months prior to the
      expiration of the current Term that Licensee elects to extend the Term of this
      Agreement as provided herein and upon giving such notice, the Term of this
      Agreement shall be automatically extended upon satisfaction of the conditions
      set forth above without the necessity of the execution of any further
      documentation.  If Licensee does not exercise its option to extend
      this Agreement for any renewal period as provided herein, the option to extend
      the term of this Agreement for future renewal periods shall automatically
      terminate and be null and void.  For example, if Licensee fails to
      exercise the option for the First Option Year as provided herein, the Agreement
      shall automatically terminate on expiry of the Initial Term and the options
      to
      extend the term for additional Option Years shall automatically
      expire.

    

    The
      First
      Option Payment, Second Option Payment and Third Option Payment (collectively
      “Option Payments”) are non-refundable, but shall be recoupable against Royalties
      payable during the respective years of the Option Period.  For the
      avoidance of doubt, Royalties payable for the First Option Year shall only
      be
      recoupable against the First Option Payment, Royalties payable for the Second
      Option Year shall only be recoupable against the Second Option Payment and
      Royalties payable for the Third Option Year shall only be recoupable against
      the
      Third Option Payment.  For example, Royalties payable for the Second
      Option Year shall not be recoupable against the First Option Payment or Third
      Option Payment.

    

    If
      the
      Licensee exercises its option to extend the term of this Agreement pursuant
      to
      this clause (L) the provisions of these Principal Terms and the Standard Terms
      and Conditions shall continue to apply in relation to the applicable Option
      Year
      the subject of the notice to extend. In the event of any conflict between this
      clause (L) and the other Principal Terms (including the Standard Terms and
      Conditions), the provisions of this clause (L) shall prevail.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
               

            	
              N.

            	
              Approvals:  Licensee
                shall obtain Licensor's prior written approval over each of the Licensed
                Products and any and all artwork, packaging, advertising, promotion,
                publicity and other materials using or embodying the Licensed Property
                or
                otherwise in connection with the Licensed Products prior to the
                distribution or use of any of such materials.  Licensee shall
                comply with the approval procedures described in Exhibit A annexed
                hereto.

            

    

    

    
      	
               

            	
              O.

            	
              Licensee
                Restrictions:  During the Term, Licensor shall have the right to
                approve Licensee's use of any spokesperson other than Celebrity to
                promote
                the Licensed Products or the Services.  Licensee represents and
                covenants to Licensor that none of the business operations of Licensee
                currently involves or shall involve the sale or distribution of alcohol
                or
                tobacco products, firearms, political statements or sexual content
                and
                that the Licensee shall not use the Licensed Property in connection
                with
                any product containing, or in any other context involving, alcohol,
                tobacco, firearms, political statements or sexual
                content.

            

    

    

    
      	
               

            	
              P.

            	
              Promotion
                Commitment:  Licensee shall use all reasonable endeavors to
                market, promote and advertise the Licensed Products.  Without
                limitation of the foregoing, as a material inducement for Licensor
                to
                enter into this Agreement, Licensee agrees to expend (i) no less
                than *** Pounds Sterling (£***) in respect of the First Royalty
                Period to market the Licensed Products, such expenses to consist
                of
                actual, direct, out-of-pocket expenses that have been approved in
                advance
                in writing by Licensor (such approval not to be unreasonably withheld)
                and
                (ii) a reasonable amount in respect of the Second Royalty Period
                to market
                the Licensed Products.

            

    

    
      	
               

            	 

    

    
      	
               

            	
              Q.

            	
              Controlling
                Provisions:  In the event of any inconsistency between the
                provisions of these Principal Terms and the Standard Terms and Conditions,
                the provisions of these Principal Terms will control and
                prevail.

            

    

    

    
      	
               

            	
              R.

            	
              Intentionally
                Deleted.

            

    

     

    
      	
            	
              S.

            	
              Without
                limitation of Paragraph 13 of the Standard Terms and Conditions of
                this
                Agreement, all Intellectual Property Rights in the Licensed Products
                (including all food recipes, techniques, trade secrets and know how),
                other than the Licensed Property or
                any

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      element(s)
        of the Licensed Property, are and shall at all times remain, as between the
        Licensor and the Licensee, the exclusive property of the Licensee. For the
        purposes of this clause, "Intellectual Property Rights" means all intellectual
        property rights wherever in the world arising, whether registered or
        unregistered (and including any application), including without limitation
        copyright, know-how,  trade secrets, patents, utility models, design
        rights and database rights.

    

    
 

    

    
      	
              NORTHERN
                FOODS plc:

            	
              GEORGE
                FOREMAN VENTURES, LLC:

            
	
              By:                                                              

            	
              By:                                                              

            
	
              Name:                                                              

            	
              Name:                                                              

            
	
              Title:                                                              

            	
              Title:                                                              

            

    

    

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

     

    EXHIBIT
      A

    

    Approval
      Procedures for Licensed Products and Artwork, Packaging, Advertising, Promotion,
      Publicity and Other Materials Using or Embodying the Licensed Property or
      Otherwise in Connection with the Licensed Products.

    

    

               Licensee
      shall not use or distribute any Licensed Product or artwork, packaging,
      advertising, promotion, publicity or other materials using or embodying the
      Licensed Property or otherwise in connection with the Licensed Products that
      has
      not been approved in writing in advance by Licensor.

    

    

               Licensor
      and Licensee shall use their respective reasonable efforts to arrange face
      to
      face meetings from time to time at a location reasonably designated by Licensor
      in the United States to enable Licensee to present to Licensor any artwork,
      packaging, advertising, promotion, publicity and other materials using or
      embodying the Licensed Property or otherwise in connection with the Licensed
      Products that Licensee intends to use.

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    GEORGE
      FOREMAN VENTURES, LLC

    

    Licensee:
      Northern Foods plc                                                               Date:  As
      of June 13, 2007

    

    

    STANDARD
      TERMS AND CONDITIONS

    

    1.       Grant
      of Rights.  Subject to all of the terms and conditions contained
      herein, upon the full execution of this Agreement and the granting by Licensor
      of all approvals as described herein, Licensee and Licensee’s subsidiaries and
      affiliated entitles under Licensee’s own ownership or control shall have the
      nonexclusive right solely during the Term to manufacture and the exclusive
      right
      solely during the Term to distribute, advertise and promote and sell in the
      Territory through the Distribution Channels the Licensed Products using the
      Licensed Property.

    

    2.       Approval
      of the Licensed Products and the
      Licensed Property.

    

    2.1        Licensee
      shall from time to time submit proposed Licensed Products to Licensor for
      approval and the Licensed Property and all related artwork, labels, hangtags,
      packaging and advertising materials and all promotional and publicity materials
      (including press releases) to Licensor for approval as set forth in Exhibit
      A
      hereto, in all cases prior to production, which shall not begin before
      Licensor's written approval has been given.  Without limitation, the
      Licensed Products, Licensed Property and all of said related materials shall
      be
      subject to Licensor's requirements, including limitations, at Licensor's sole
      discretion, as to the manner in which the Licensed Property and the trademarks
      associated therewith, and other elements licensed hereunder, may be presented.
      Without limitation of the foregoing, to the extent that Licensee utilizes any
      fonts on any materials, Licensee shall be solely responsible for obtaining
      any
      and all necessary licenses from the applicable third parties that own or control
      the rights to such fonts, as well as for satisfying all obligations that may
      arise in connection therewith.  If Licensor supplies forms or
      directions for use in applying for approval of artwork, mock-ups, comps, models,
      preproductions and production samples of the Licensed Products or Licensed
      Property, wherever appearing, Licensee shall use such forms and directions
      when
      submitting anything for Licensor's approval.

    

    2.2        Licensee
      agrees to manufacture the Licensed Products, and to at all times procure that
      its subsidiaries and affiliated entitles under its own ownership or control
      manufacture the Licensed Products in strict conformity with the approved sample
      and in accordance with the terms of this Agreement.  Licensee will, on
      reasonable written notice from the Licensor (such notice not to be less than
      ten
      (10) working days), afford Licensor access during normal business hours in
      England to the premises of Licensee including Licensee's production facilities
      for the purpose of confirming Licensee's adherence to the quality and other
      requirements imposed on Licensee pursuant to this Agreement.  If, at
      any time, Licensee desires to have the Licensed Product manufactured by a third
      party (excluding for the avoidance of doubt any of Licensee’s subsidiaries and
      affiliated entitles under its own ownership or control), Licensee must, as
      a
      condition to the continuation of this Agreement, notify Licensor of its said
      desire together with the name and address of the proposed manufacturer, and
      must
      obtain Licensor's prior written consent to do so.  If Licensor is
      prepared to grant such consent, it will be conditioned on the requirement that
      Licensee obtain a consent agreement in a form approved by Licensor (such
      approval not to be unreasonably withheld or delayed).

    

    2.3        For
      quality control Licensee shall furnish Licensor with twenty-four (24) samples
      of
      all styles of the Licensed Products and all packaging material manufactured
      under this Agreement in each year of the Term, or part thereof, free of charge
      with shipping charges prepaid.

    

    2.4        With
      respect to all approvals requested of Licensor pursuant to this Agreement,
      if
      Licensor does not approve or disapprove any submission in writing within fifteen
      (15) business days of its receipt thereof, such submission shall be deemed
      disapproved.

    

    2.5        Notwithstanding
      anything to the contrary herein contained, Licensee hereby warrants, covenants
      and agrees that the Licensed Products manufactured in connection with this
      Agreement shall be produced in full compliance with all applicable laws of
      the
      country of manufacture and without the use of child labor (as defined under
      the
      United States Fair Labor Standards Act, as amended from time to time; or, in
      the
      event of manufacture overseas, as defined under the International Labor
      Organization, convention 138, of 1973, as may be amended from time to time;
      but
      in no event under the age of fifteen (15)), prison labor or slave
      labor.  Licensee further warrants, covenants and agrees that it has a
      business policy, code of ethics, or other form of procedure by which it complies
      with and monitors compliance with applicable labor
      regulations.  Notwithstanding anything herein to the contrary,
      Licensee's failure to strictly comply with this provision shall be deemed a
      breach of a material term hereof, and Licensor shall have the right to
      immediately terminate this Agreement without the necessity of serving notice
      upon Licensee and Licensee hereby waives any right to cure such
      breach.  If pursuant to paragraph 2.2 above the Licensed Products are
      manufactured by a third party, then Licensee shall provide in its agreement
      with
      such third party that such party will comply with this paragraph
      2.5.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    3.       Advertising.

    

    3.1        Licensee
      is entitled solely during the Term in the Territory to use the Licensed Property
      in advertising material (such as press advertising, catalogs, price tags, etc.)
      to promote the sale of the Licensed Products through the Distribution Channels
      provided that in all events prior to the publication of such advertising
      material, Licensee shall submit all advertising materials, as well as all
      promotion and publicity materials, to Licensor for prior written
      approval.  The right to advertise does not include the permission to
      name any entity in connection with the Licensed Property, to advertise on
      television without Licensor's prior written consent or to associate other
      trademarks with the Licensed Property.

    

    3.2        Licensee
      warrants that all advertising and promotional materials shall comply with all
      applicable laws and regulations.  Licensor's  approval of
      copy or storyboards for such advertising will not imply a representation or
      belief by Licensor that such copy or storyboards are sufficient to meet any
      applicable law, code, standard or other obligation.

    

    4.       Granting
      Rights to Third Parties.  Subject to paragraph 2.2 above, Licensee
      may not sublicense, assign, or encumber the rights granted to it hereunder
      or
      delegate its obligations hereunder, in whole or in part without Licensor's
      prior
      written consent which in each such instance shall be at Licensor's sole
      discretion. For the avoidance of doubt Licensor’s consent shall not be required
      where Licensee is sublicensing or assigning or delegating to its subsidiaries
      and affiliated entitles under its own ownership or control, and subject to
      the
      foregoing any sublicense, assignment or encumbrance in derogation of the
      foregoing shall be null and void.  The requirement of consent shall
      also apply in the case of total or partial sale or other alienation of a
      substantial portion of Licensee's assets, stock or business.

    

    5.       Territory.  Licensee
      shall take all reasonable steps to avoid any sale of Licensed Products to any
      entity which Licensee knows or reasonably should know may directly or indirectly
      result in sale of the Licensed Products outside the Territory or outside the
      Distribution Channels. Licensor shall take all reasonable steps to avoid any
      sale of Licensed Products by itself or through a licensee, which may directly
      or
      indirectly result in the sale of the Licensed Products within the Territory
      during the Term.  However, nothing in this Agreement shall be deemed
      to restrict "passive sales" of the Licensed Products by Licensee or Licensor
      within the European Economic Area, to the extent that restricting same would
      constitute a violation of the laws of the European Union.

    

    6.       Term;
      Sell-Off.

    

    6.1        Provided
      Licensee is not in breach hereof, this Agreement is not terminated, and Licensee
      complies with the remaining provisions of this Paragraph 6, Licensee is entitled
      on a nonexclusive basis to sell finished units of the Licensed Products which
      it
      may still have in stock (but it may not manufacture additional Licensed
      Products) only through the Distribution Channels in the Territory for a maximum
      period of one hundred twenty (120) days after the expiration (but not the
      termination) of the Term of this Agreement.

    

    6.2        Licensee
      shall not manufacture Licensed Products during the last six (6) months of the
      Term in excess of the amount the Licensee (in its reasonable discretion but
      based on past sales figures of the Licensed Products) reasonably anticipates
      will be sold prior to the expiration of the Term.  Immediately upon
      the expiration or termination of the Term, for any reason, Licensee shall
      furnish Licensor a certificate of Licensee's existing inventory of Licensed
      Products.  In addition, Licensor shall have the right to conduct a
      physical inventory of the Licensed Products in Licensee's possession or control
      during normal working hours in England on giving not less than ten (10) working
      days notice in writing to the Licensee.

    

    6.3        Upon
      expiration of the Term, and Licensee's right to sell Licensed Products in
      accordance with Paragraph 6.1 above, or upon earlier termination for any reason,
      Licensee agrees that Licensor shall have the right (but not the obligation)
      to
      purchase from Licensee all or part of Licensee's then existing inventory of
      Licensed Products at Licensee's actual manufacturing cost
      therefore.  If Licensor elects not to so purchase all or part of such
      inventory within the period of one hundred twenty (120) days following
      expiration or termination, Licensee shall thereupon promptly arrange for such
      inventory to be donated to one (1) or more charities preapproved in writing
      by
      Licensor; and Licensee shall promptly furnish Licensor with evidence reasonably
      satisfactory to Licensor of such charitable donation(s).

    

    6.4        Royalties
      payable on account of sales following expiration of this Agreement shall not
      be
      recoupable against the Advances payable hereunder.  For the avoidance
      of doubt, no Royalties shall be payable by the Licensee on account of sales
      of
      Licensed Products sold at or below Licensee's cost therefore as herein provided
      following the expiration of this Agreement.

    

    6.5        Upon
      the expiration or termination of this Agreement, the rights granted to Licensee
      hereunder shall revert to Licensor, except as provided in

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Paragraph
      6.1, and Licensee shall return all artwork which may have been used or created
      by Licensee in connection with this Agreement.  Upon expiration of
      this Agreement, Licensee agrees that Licensor shall have the right (but not
      the
      obligation) within ninety (90) days after the end of the Term, to purchase
      molds, dies, plates, tools, silkscreens and/or other technical materials owned
      by Licensee that solely, exclusively and directly relate to and embody
      representations of any of the Licensed Property at their actual cost less
      depreciation.  In the event this Agreement is terminated by the
      Licensor (and does not expire by its terms), Licensor shall be deemed to acquire
      automatically (and Licensee shall take whatever reasonable action is required
      to
      transfer physical possession to Licensor) the aforesaid molds, dies, plates,
      tools and other technical materials at no cost, and without limiting Licensor's
      other rights and remedies.  It is understood, however, that Licensor
      or Licensor's designee shall not manufacture any Licensed Products using
      Licensee's name or trademarks without Licensee's prior written consent, and
      will, if Licensor elects to use the aforesaid technical materials, adjust same
      to remove Licensee's name or trademark.  If Licensor does not acquire
      such materials, they shall be destroyed in accordance with Paragraph
      6.3.

    

    7.       Notices
      and Credits.  All Licensed Products and any packaging, advertising
      and promotional materials therefore shall bear any notices or credits required
      by Licensor.  Licensee's name, tradename or trademark and address
      shall appear on permanently affixed labeling on each Licensed Product or the
      packaging therefore.

    

    8.       Obligation
      of Performance, Date
      of  Distribution, Contractual Penalty.

    

    8.1        Licensee
      shall manufacture and distribute the Licensed Products in accordance with
      customary business practices and shall use its reasonable efforts to always
      maintain adequate inventory of the Licensed Products.

    

    8.2        Licensee
      shall commence distribution of Licensed Products in reasonable commercial
      quantities (being more than sample lots) through the Distribution Channels
      no
      later than the Date of Distribution specified in this Agreement.

    

    9.       Royalty.

    

    9.1        Licensee
      shall pay to Licensor Royalties at the royalty rate set forth in this Agreement
      based on the Net Invoice Amount for the Licensed Product.  If Licensee
      sells to any entity which is directly or indirectly controlled by Licensee
      or
      related to Licensee in any way, the Net Invoice Amount to which the royalty
      rate
      shall be applied shall be the greater of the Net Invoice Amount from such sales
      or the highest Net Invoice Amount invoiced to entities not directly or
      indirectly controlled by Licensee for Licensed Product.  For the
      purposes of this Agreement, the Net Invoice Amount is the gross catalog or
      list
      selling price after deducting any retailer support payments (such payments
      to
      exclude marketing or advertising support (if any)) given in the ordinary course
      of Licensee's business, as reflected in Licensee's invoices to wholesalers
      and
      retailers (as the case may be), For the avoidance of doubt the amount of
      retailer support payment shall not exceed *** percent of the
      gross catalog or list selling price on any invoice.

    

    9.2        No
      later than the date(s) in the Principal Terms, Licensee shall pay the
      nonreturnable Advance and Option Payments set forth in this
      Agreement.  Such Advance shall be an advance only chargeable against
      the Royalties earned during the applicable periods set forth in the Principal
      Terms and only during the Term of the Agreement and not any other
      period.  Furthermore, as specified in Paragraph G, only *** of each Advance payment shall be recoupable.  All
      Option Payments paid by Licensee to Licensor to extend the Term of this
      Agreement as provided herein are guaranteed minimum payments and are
      non-refundable but may be recoupable against Royalties earned during the
      applicable periods set forth in the Principal Terms and not for any other
      period.

    

    10.       Accounting
      and Payment.

    

    10.1                        The
      Royalties shall be accounted for on a calendar quarter
      basis.  Statements of account accompanied by payments, if any, shown
      to be due shall be delivered to Licensor or such party or parties as Licensor
      shall designate, no later than thirty (30) days after the end of each calendar
      quarter.

    

    10.2                        The
      statements of account shall be reasonably detailed so as to enable the Licensor
      to understand the aggregate amount and calculation of Royalties
      payable.  Licensee shall keep and preserve for at least two (2) years
      after the expiration of this Agreement accurate records of all transactions
      relating to this Agreement.  On giving reasonable notice in writing
      (such notice not to be less than 20 working days) the Licensor, or such party
      or
      parties as Licensor shall designate, shall be entitled during the Licensee’s
      normal business hours to inspect and make copies of Licensee's books and records
      that relate to the subject matter of this Agreement and the computation of
      Royalties hereunder, provided, however, for the avoidance of doubt, Licensee
      shall not be obligated to disclose information that is subject to a
      confidentiality agreement between Licensee and a third party unrelated to the
      sale of the Licensed Products, unless otherwise compelled by a court of
      competent jurisdiction as herein provided.  In the event of an error
      in the accounting of Royalties in

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    favor
      of
      Licensee of *** or more, the cost of such inspection shall
      be borne by Licensee.  Royalties on sales of Licensed Products which
      have been returned to Licensee for credit or refund may be credited against
      Royalties thereafter due to Licensor from sales of Licensed Products, but in
      no
      event shall Licensee be entitled to a refund or return of Royalties from
      Licensor.

    

    10.3                        If
      Licensee is in default with the payment of the Advance or the Royalties then
      without limiting any of Licensor's rights or remedies, Licensee shall pay
      Licensor interest on such unpaid amount at a rate equal to two percent (2%)
      above the then current "prime" rate quoted by the Chase Manhattan Bank, in
      New
      York, or the highest interest rate allowed by law, if less.

    

    10.4                        If
      any Royalties are frozen or are not remittable by virtue of any local law,
      then
      Licensee shall deposit, in Licensor's name, in a bank account designated by
      Licensor, in the applicable country of the Territory, at Licensee's expense,
      that part of the Royalties to which Licensor would be entitled if the funds
      were
      transmitted and paid in the United States in accordance with the terms hereof,
      provided the foregoing shall not be construed as requiring Licensee to violate
      any applicable law in the Territory.

    

    10.5                        All
      payments to Licensor shall be in United States Dollars based upon the foreign
      exchange rate set forth in The Wall Street Journal on the business day
      immediately preceding the date of payment; provided, however, if any payment
      of
      sums due Licensor is not timely made, then without limiting any of Licensor's
      rights or remedies, the foreign exchange rate to be used for the sums due shall
      be the foreign exchange rate most favorable to Licensor between the date said
      payment first became due and the date said payment is paid.  All
      payments shall be made without deduction of taxes or withholdings.

    

    11.       Warranty.

    

    11.1                        Licensee
      warrants and represents, as applicable, that (i) except with respect to the
      Licensed Property, the Licensed Products (including, without limitation, any
      and
      all artwork, packaging, advertising and promotional materials in connection
      therewith) and the engagement of Celebrity's services hereunder will not
      infringe upon or violate the rights (including copyright, trademark, privacy
      or
      any other rights) of any person or entity; (ii)  the manufacture,
      distribution, advertisement, promotion and sale of the Licensed Products and
      the
      engagement of Celebrity's services hereunder will comply with all applicable
      laws, rules and regulations; (iii) Licensee will use all reasonable endeavors
      to
      maximize sales of the Licensed Products; (iv) the Licensed Products will be
      in
      all respects of a high quality and safe and noninjurious for the person intended
      to use such product in the manner in which it is intended; (v) Licensee will
      not
      permit, do or commit any act or thing that would degrade, tarnish or deprecate
      Celebrity, George Foreman Productions, Inc. ("GFPI") or Licensor, or
      Celebrity's, GFPI's or Licensor's public image in society or standing in the
      community; and (vi) Licensee has the right to enter into and perform this
      Agreement.  Licensee warrants it shall not sell or distribute or
      permit the sale or distribution of the Licensed Products as "remainders," or
      other than as specifically authorized hereunder.

    

    11.2                        Licensor
      represents and warrants that (a) it has the right to enter into this Agreement
      and to grant the rights herein granted to Licensee in connection with the
      Licensed Property, subject to the terms hereof, (b) to the best of Licensor’s
      knowledge neither the validity or subsistence of the Licensed Property nor
      its
      right, title and interest thereto is the subject of any current, pending or
      threatened challenge, claim or proceeding, and (c) the Licensed Property has
      not
      during the period of twelve (12) months prior to the date of this Agreement
      been
      the subject of any challenge, claim or proceeding.

    

    12.       Infringements.  Licensee
      shall promptly notify Licensor, in writing, of any imitations or infringements
      of the Licensed Property or the rights licensed hereunder which may come to
      Licensee's attention.  Licensor shall have the sole right to determine
      whether or not any demand, suit or other action shall be taken on account of
      or
      with reference to any such infringements or imitations; and Licensee shall
      not
      institute any suit or take any action on account of any such infringements
      or
      imitations without first obtaining the express written consent of Licensor
      to do
      so.  Licensor shall have the right (but not the obligation) to
      commence or prosecute any suits or make any such demands in its own name or
      in
      the name of Licensee or join Licensee as a party thereto.  Subject to
      the Licensee being indemnified by the Licensor in respect of any costs, fees
      (including legal fees) and expenses it may incur in connection therewith, the
      Licensee shall cooperate with Licensor as a party thereto and/or in any manner
      that Licensor may request in connection with any such demand, suits, claims
      or
      other actions.  With respect to all claims and suits, including suits
      in which Licensee is joined as a party, Licensor shall have the sole right
      to
      employ counsel of its choosing, and to direct the handling of the litigation
      and
      any settlement thereof.  Licensor shall be entitled to receive and
      retain all amounts awarded as damages, profits or otherwise in connection with
      such suits, subject to the payment of Licensee's costs and expenses as provided
      above.  Nothing herein shall be construed as imposing any duty or
      obligation upon Licensor to take any action against any alleged infringer,
      nor
      to relieve Licensee from full compliance with any of the terms of this Agreement
      in the event that Licensor does not take any such action or is unsuccessful
      in
      its action against any alleged infringer.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
                  12.1  

            	
               Notwithstanding
                anything to the contrary

            

    

    in
      this
      Agreement, under no circumstances shall Licensor or Licensee be liable to the
      other for any loss of profit or consequential loss in respect of a breach of
      any
      representation, warranty, obligation, undertaking, commitment or other provision
      in the Principal Terms or these Standard Terms and Conditions.

    

    
      	
                  12.2  

            	
               Each
                party’s maximum aggregate liability

            

    

    to
      the
      other under this Agreement, whether in respect of a breach of the Principal
      Terms or these Standard Terms and Conditions (other than in connection with
      Licensee's warranty or undertaking regarding (a) product liability claims
      related to the Licensed Products and/or claims involving injury or death, and
      (b) damage or injury to the Licensed Property and/or any goodwill associated
      therewith), shall be limited to *** Pounds Sterling (£***).

    

    13.       Rights
      in the Licensed Products and
      Trademarks.

    

    13.1                        All
      rights not specifically granted to Licensee are hereby reserved by Licensor,
      including, without limitation, the rights set forth in Paragraph 13.2
      below.  Licensee shall not be entitled to have design patents,
      trademarks, or any other rights in connection with the Licensed Property
      registered nor to claim any such rights without the prior written consent of
      Licensor, which may be withheld in its sole discretion.

    

    13.2                        Without
      limiting the other provisions hereof, Licensee is not hereby granted, and
      Licensor hereby reserves for itself, the right to manufacture, advertise,
      promote, distribute and otherwise exploit the Licensed Products outside the
      Territory; provided, however, that nothing in this Agreement shall be deemed
      to
      restrict "passive sales" of the Licensed Products by Licensor within the
      European Economic Area, to the extent that restricting same would constitute
      a
      violation of the laws of the European Union.  Notwithstanding anything
      to the contrary herein contained, Licensee may only sell the Licensed Products
      through normal wholesale and retail channels within the Distribution Channels
      and may not sell or use the Licensed Products as premiums and/or in connection
      with the sale of any other product or service.

    

    13.3                        Licensee
      acknowledges that as between Licensor and Licensee, Licensor is the owner of
      all
      right, title and interest in and to the Licensed Property and in all copyrights,
      trademarks, and other rights associated therewith, and in all artwork,
      packaging, copy, literary text, advertising and promotional material of any
      sort
      which utilize the foregoing (including all such materials developed by or under
      the authority of Licensee), and the goodwill pertaining to all of the foregoing;
      Licensee hereby assigns to Licensor all right, title and interest including
      all
      copyrights, and renewals and extensions of copyright, in and to any and all
      such
      materials developed by or under the authority of Licensee, and warrants that
      Licensor will have the right to use and exploit and authorize the exploitation
      of such materials in any manner as Licensor elects without obligation to
      Licensee or any other entity whatsoever.  Licensor may use any such
      materials developed by or under the authority of Licensee as Licensor may
      determine in its sole discretion.  Licensee further acknowledges the
      value of the goodwill associated with the Licensed Property which has acquired
      secondary meaning in the minds of the public; Licensee will not during or after
      the Term attack the validity of the license granted hereunder, or do or cause
      to
      be done any act which impairs or tends to impair Licensor's right and title
      to
      the Licensed Property.  Licensee shall not acquire and shall not claim
      any title to the Licensed Property by virtue or through the license granted
      to
      Licensee or through Licensee's use thereof.  Licensee's use of the
      Licensed Property shall accrue exclusively to the benefit of
      Licensor.  Licensee shall not use any Licensed Property on any
      business sign, business card, stationery or form (except as licensed hereunder),
      or as the name of Licensee's business or division thereof without Licensor's
      prior written approval.

    

    14.       Termination
      of this Agreement.

    

    14.1(i)              Should
      Licensee default on any of its warranties, representations or agreements
      hereunder, including, without limitation, rendering statements of account and/or
      payments on the dates specified in Paragraph 10 above or failing to distribute
      and sell each of the Licensed Products throughout the Territory on or before
      the
      Date of Distribution in accordance with Paragraph 8.2 above, Licensor may
      terminate this Agreement upon notice to Licensee, which termination shall be
      effective sixty (60) days following the giving of such notice, except with
      respect to the payment of sums due and/or furnishing accounting statements
      hereunder, in which case such termination shall be effective fifteen (15) days
      following such notice, unless such default shall have been cured by Licensee
      within such period; provided, however, that Licensee shall only have the right
      to cure any defaults twice in any twelve (12) month period.

    

           (ii)     Any
      breach of the agreements under Paragraph 2 entitles Licensor, notwithstanding
      clause (i) above, to terminate this Agreement upon notice to Licensee, which
      termination shall be effective upon the date of giving of such
      notice.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    (iii)    If
      proceedings for bankruptcy or insolvency are filed or instituted by or against
      Licensee or Licensor, or if either party becomes insolvent or fails to pay
      its
      debts generally as they become due, or if a substantial portion of the assets
      or
      controlling stock in either party's business is sold or transferred (other
      than
      by way of reorganization within or to such party's affiliated entities with
      common ownership or control for bona fide business reasons), or if Licensee
      ceases to be actively involved in the business of distributing Licensed
      Products, then either party, as applicable, may terminate this Agreement upon
      notice to the other party, which termination shall be effective on the date
      of
      giving such notice.

    

    14.2              In
      the event of termination, without limiting any of Licensor's or Licensee's
      rights or remedies (as applicable) including, without limitation, Licensor's
      right to injunctive or other equitable relief, any and all Advances shall become
      immediately due and payable to Licensor upon such termination, and the rights
      granted hereunder shall automatically terminate and revert immediately to
      Licensor.

    

    14.3           If
      during the Term:

    

    
      	
              (i)  

            	
              a
                claim is commenced against Licensee (or any of Licensee’s subsidiaries and
                affiliated entitles under Licensee’s own ownership or control) by a third
                party as a result of the breach of Licensor’s warranties and
                representations in this Agreement and such claim prevents Licensee
                (i.e.,
                as a result of the issuance of an injunction) from manufacturing,
                distributing and selling the Licensed Products or would
                subject Licensee to substantial damages; and/
                or

            

    

    

    
      	
              (ii)  

            	
              based
                on written or explicit verbal statements made by a potential claimant,
                the
                Licensee has reasonable grounds to believe that a claim might be
                made
                against Licensee (or any of Licensee’s subsidiaries and affiliated
                entitles under Licensee’s own ownership or control) by a third party as a
                result of the breach of Licensor’s warranties and representations in this
                Agreement and such claim would prevent Licensee (i.e., as a result
                of the
                issuance of an injunction) from manufacturing, distributing and selling
                the Licensed

            

    

    

    Products
      or that such claims, if issued, would subject Licensee to substantial
      damages,

    

    and
      the
      Licensor is unable to resolve or settle such claim or potential claim to the
      Licensee’s satisfaction (acting reasonably) then, without limiting any of
      Licensee's other rights or remedies Licensee may terminate this Agreement upon
      notice to Licensor which termination shall be effective sixty (60) days
      following the giving of such notice.

    

    15.       Indemnity
      and Insurance.

    

    15.1                        Licensee
      hereby indemnifies Licensor and its parents, affiliates, subsidiaries, officers,
      employees, agents and representatives against all claims, damages, suits and
      expenses (including reasonable attorneys' fees) arising out of a breach or
      alleged breach of any of Licensee's warranties, representations and agreements
      herein contained.  Under no circumstances shall Licensee be liable for
      loss of profits or consequential damages to the Licensor.

    

    15.2                        Licensor
      hereby indemnifies Licensee and its parents, affiliates, subsidiaries, officers,
      employees, agents and representatives, and will defend Licensee against any
      claim letters, claims or lawsuits resulting in an award of monetary damages,
      suits and expenses (including reasonable attorneys' fees) arising out of a
      claim
      by a third party which if proven would constitute a breach of any
      representations, warranties and agreements made by Licensor
      hereunder.  Licensor shall be accorded full control of the defense
      and/or settlement of any claims (including the right to settle by agreeing
      that
      Licensor and Licensee will discontinue distribution of the allegedly infringing
      items) and the right to designate counsel.  Under no circumstances
      shall Licensor or Licensee be liable for loss of profits or consequential
      damages.

    

    15.3                        Licensee
      shall obtain and maintain at Licensee's expense, during the Term, and for three
      (3) years thereafter, product liability and completed operations insurance
      from
      a qualified insurance carrier in the amount of at least Three Million United
      States Dollars (US$3,000,000) per claim and at least Five Million United States
      Dollars (US$5,000,000) in the aggregate for product liability and identical
      additional amounts for property damage.  This policy shall specify
      that it covers all products manufactured by Licensee (including for the
      avoidance of doubt the Licensed Products manufactured or distributed
      hereunder).  If such policy is cancelled or the policy's coverage is
      diminished in any way without an equivalent policy being taken out by Licensee,
      then Licensor may terminate this Agreement as provided in Paragraph
      14.  Prior to manufacturing or distributing any of the Licensed
      Products, Licensee shall provide Licensor with written confirmation of such
      insurance from Licensee's insurance broker, together with a copy of such
      policy.  Compliance herewith in no way limits Licensee's obligations
      hereunder.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    15.4  Without
      limitation of paragraphs 15.1 and 15.2 above, the maximum aggregate liability
      under either party's indemnity herein (other than in connection with Licensee's
      indemnity in respect of (a) product liability claims related to the Licensed
      Products and/or claims involving injury or death, and (b) damage or injury
      to
      the Licensed Property and/or any goodwill associated therewith) shall be limited
      to *** Pounds Sterling (£***).

    

    16.       Other
      Rights.  Any charges, fees or royalties payable for any rights not
      covered by this contract shall be additional to the Royalties and covered by
      separate agreement.

    

    17.       Miscellaneous.

    

    17.1                        This
      Agreement comprising the Principal Terms, these Standard Terms and Conditions
      and any exhibits and schedules attached hereto constitutes the entire agreement
      of the parties concerning the subject matter hereof and supersedes all prior
      agreements and understandings.  Modifications of or amendments to this
      Agreement shall be in writing signed by the parties hereto.  No waiver
      of any term, condition or covenant contained in this Agreement or any breach
      of
      this Agreement shall be held to be a continuing waiver of the same or any other
      term, condition or covenant hereof or of any other subsequent breach
      hereof.

    

    17.2                        If
      parts of this Agreement are or become invalid, the remaining parts of this
      Agreement shall in no way be affected.

    

    17.3                        This
      Agreement shall be governed by the laws of New York State, applicable to
      agreements made and to be wholly performed therein, without reference to choice
      of law principles.  Licensee irrevocably consents to the exclusive
      jurisdiction of the state and federal courts located in New York, New York
      in
      connection with any action or proceeding brought by either party which arises
      out of or relates to this Agreement.  Notwithstanding the foregoing,
      while the parties hereto agree that they will not challenge the exclusive
      jurisdiction of the state and federal courts located in New York, New York,
      if,
      for any reason, the state and federal courts located in New York, New York
      refuse jurisdiction, then Licensee consents to the exclusive jurisdiction of
      the
      state and federal courts located in Philadelphia,
      Pennsylvania.  Furthermore, while the parties hereto agree that they
      will not challenge the fact that this Agreement shall be governed by the laws
      of
      New York State, if, for any reason whatsoever, the court exercising jurisdiction
      does not permit this Agreement to be governed by the laws of New York State,
      then this Agreement shall be governed by the laws of the Commonwealth of
      Pennsylvania applicable to agreements made and to be wholly performed therein,
      without reference to choice of law principles.  In any litigation or
      proceeding, Licensee waives personal service and agrees that service of any
      pleading, notice, complaint, etc. may be served by certified or registered
      mail
      to Licensee at Licensee's address set forth above, and such service shall be
      deemed effective as if personally served upon Licensee at Licensee's principal
      place of business.  Licensor shall be entitled to recover its
      attorneys' fees and all costs in connection with any claim and/or action to
      collect any sums due to Licensor hereunder by Licensee.

    

    17.4                        In
      resolving any dispute or construing any provision in the Agreement, there shall
      be no presumption made or inference drawn (i) because the attorneys for one
      of
      the parties drafted the Agreement, (ii) because of the drafting history of
      the
      Agreement, or (iii) because of the inclusion of a provision not contained in
      a
      prior draft or the deletion of a provision contained in a prior
      draft.

    

    17.5                        All
      notices shall be in writing and shall be given at the respective addresses
      for
      the parties set forth above, or at such changed address as the recipient shall
      have provided in writing.  All notices shall be deemed given three (3)
      days after mailing certified or registered mail, return receipt requested or
      the
      first business day following transmission by facsimile transfer.  All
      notices to Licensor shall also be sent to GEORGE FOREMAN VENTURES, LLC, 100
      North Wilkes-Barre Blvd., 4th Floor, Wilkes-Barre, PA 18702, Attention: Efrem
      Gerszberg and with an additional copy to Franklin, Weinrib, Rudell &
Vassallo, P.C., 488 Madison Avenue, New York, New York 10022,
      Attention:  Kenneth M. Weinrib, Esq.

    

    17.6                        This
      Agreement shall not be construed to create a partnership, joint venture or
      the
      relationship of principal and agent between the parties hereto, or any other
      relationship other than that of licensor and licensee, it being understood
      and
      agreed neither party shall have the right to act as the agent for or to bind
      the
      other.

    

    17.7  Licensor
      and Licensee agree that neither they, nor their respective employees, officers,
      agents or representatives, will disclose to any third party any confidential
      or
      proprietary information obtained from the other party pursuant to this
      Agreement, provided, however, the foregoing shall not apply to information
      that
      was independently developed by the recipient, is or becomes part of the public
      domain through no act in violation of this paragraph by the recipient, was
      known
      by, or lawfully received by, the recipient on a non-confidential basis, used
      to
      enforce the recipient's rights hereunder or as required by law (including,
      without limitation, any filings required by law to be made by publicly traded
      companies).

    
 

    17.8  Notwithstanding
      anything contained herein to the contrary, Licensee shall pay to Licensor the
      sum of US$40,000.00 for its legal fees and expenses incurred in connection
      with
      this transaction, which amount shall be paid on or before the execution of
      this
      Agreement.

    

    END
      OF STANDARD TERMS AND CONDITIONSExhibit 4.1

                       COMMON STOCK PURCHASE AGREEMENT

                                   BETWEEN

                               RAPID LINK INC.

                                     AND

                             WESTSIDE CAPITAL LLC

                                    DATED

                                June 15, 2007

<PAGE>

                       COMMON STOCK PURCHASE AGREEMENT
                       -------------------------------

      This COMMON  STOCK PURCHASE  AGREEMENT (the  "Agreement") is  made  and
 entered into as of  the 15th day of  June, 2007 between  Rapid Link Inc.,  a
 corporation organized and existing under the  laws of the State of  Delaware
 ("RPID" or  the "Company")  and Westside  Capital  LLC, a  Delaware  limited
 liability company ("Investor").

                            PRELIMINARY STATEMENT
                            ---------------------

      WHEREAS, the Investor  wishes to purchase  from the  Company, upon  the
 terms and subject to the conditions of this Agreement, Three Hundred  Twelve
 Thousand Five Hundred (357,143)  shares of common stock  of the Company  for
 the Purchase Price  set forth  in Section  1.3.13 hereof.  In addition,  the
 Company will issue to the Investor three Common Stock Purchase Warrants (the
 "Warrants") to  purchase  up to  an  additional Fifty  Million  (50,000,000)
 shares of common stock of  the Company at exercise  prices as stated in  the
 Warrants; and

      WHEREAS, the parties  intend to memorialize  the purchase  and sale  of
 such Common Stock and the Warrants.

      NOW, THEREFORE, in consideration of  the mutual covenants and  premises
 contained herein, and for other good and valuable consideration, the receipt
 and adequacy  of which  are hereby  conclusively acknowledged,  the  parties
 hereto, intending to be legally bound, agree as follows:

                                  ARTICLE I

            INCORPORATION BY REFERENCE, SUPERSEDER AND DEFINITIONS
            ------------------------------------------------------

 1.1  Incorporation by Reference. The foregoing recitals and the Exhibits and
 Schedules attached hereto and referred to herein, are hereby acknowledged to
 be true and accurate, and are incorporated herein by this reference.

 1.2  Superseder. This Agreement, to the extent that it is  inconsistent with
 any other  instrument  or  understanding among  the  parties  governing  the
 affairs of the Company, shall supersede such instrument or understanding  to
 the fullest extent  permitted by law.  A  copy  of this  Agreement shall  be
 filed at the Company's principal office.

 1.3  Certain Definitions.  For purposes  of  this Agreement,  the  following
 capitalized terms shall have the  following meanings (all capitalized  terms
 used in this Agreement that are not defined in this Article 1 shall have the
 meanings set forth elsewhere in this Agreement):

      1.3.1     "1933 Act" means the Securities Act of 1933, as amended.

      1.3.2     "1934 Act"  means the  Securities Exchange  Act of  1934,  as
 amended.

      1.3.3     "Affiliate" means a Person or Persons directly or indirectly,
 through one  or more  intermediaries, controlling,  controlled by  or  under
 common control with the Person(s) in question.  The term "control," as  used
 in the immediately preceding sentence, means, with respect to a Person  that
 is a corporation, the right to the exercise, directly or indirectly, of more
 than 50 percent  of the  voting rights attributable  to the  shares of  such
 controlled corporation  and,  with  respect  to  a  Person  that  is  not  a
 corporation, the possession, directly or indirectly, of the power to  direct
 or cause the  direction of  the management  or policies  of such  controlled
 Person.

      1.3.4     "Articles" means  the  Certificate of  Incorporation  of  the
 Company, as the same may be amended from time to time.

      1.3.5     "CEO" shall mean John Jenkins

      1.3.6     "Closing"  shall  mean  the   Closing  of  the   transactions
 contemplated by this Agreement on the Closing Date.

      1.3.7     "Closing Date" means  the date on  which the  payment of  the
 Purchase Price  (as  defined herein)  by  the  Investor to  the  Company  is
 completed pursuant  to  this Agreement  to  purchase the  Common  Stock  and
 Warrants, which shall occur on or after June 15, 2007.

      1.3.8     "Common Stock" means shares of  common stock of the  Company,
 par value $0.001 per share.

      1.3.9     "Exempt Issuance" means the issuance of (a) shares of  Common
 Stock or options to  employees, officers, consultants,  or directors of  the
 Company pursuant to any stock or option  plan duly adopted by a majority  of
 the non-employee  members of  the Board  of Directors  of the  Company or  a
 majority of the members of a committee of non-employee directors established
 for such purpose, (b) securities upon  the exercise of or conversion of  any
 securities issued hereunder or issued prior to the date hereof and disclosed
 in the  Company's  SEC Documents,  and  (c) securities  issued  pursuant  to
 acquisitions or  strategic transactions,  provided any  such issuance  shall
 only be  to  a Person  which  is, itself  or  through its  subsidiaries,  an
 operating company in a business synergistic with the business of the Company
 and in which the Company receives benefits in addition to the investment  of
 funds, but shall not include a  transaction in which the Company is  issuing
 securities primarily for  the purpose  of raising  capital or  to an  entity
 whose primary business is investing in securities.

      1.3.10    "Material Adverse Effect"  shall mean any  adverse effect  on
 the business, operations, properties or  financial condition of the  Company
 that is  material  and adverse  to  the  Company and  its  subsidiaries  and
 affiliates,  taken  as  a  whole  and/or  any  condition,  circumstance,  or
 situation that would  prohibit or  otherwise materially  interfere with  the
 ability of the Company to perform any of its material obligations under this
 Agreement or the Registration Rights Agreement or to perform its obligations
 under any other material agreement.

      1.3.11    "Delaware Act" means the Delaware General Corporation Law, as
 amended.

      1.3.12    "Person" means  an  individual,  partnership,  firm,  limited
 liability company, trust,  joint venture, association,  corporation, or  any
 other legal entity.

      1.3.13    "Purchase  Price"  means  the  Twenty-Five  Thousand  Dollars
 ($25,000.00) paid by the  Investor to the Company  for the Common Stock  and
 the Warrants.

      1.3.14    "Registration Rights Agreement"  shall mean the  registration
 rights agreement between  the Investor and  the Company  attached hereto  as
 Exhibit A.

      1.3.15    "Registration  Statement"   shall   mean   the   registration
 statement under the 1933  Act to be filed  with the Securities and  Exchange
 Commission for the registration of the  Shares pursuant to the  Registration
 Rights Agreement attached hereto as Exhibit A.

      1.3.16    "SEC" means the Securities and Exchange Commission.

      1.3.17    "SEC Documents" shall mean the Company's latest Form 10-K  or
 10-KSB as of the time in  question, all Forms 10-Q  or 10-QSB and 8-K  filed
 thereafter, and the  Proxy Statement for  its latest fiscal  year as of  the
 time in question until such time as the Company no longer has an  obligation
 to maintain the effectiveness  of a Registration Statement  as set forth  in
 the Registration Rights Agreement.

      1.3.18 "Shares" shall mean, collectively, the shares of Common Stock of
 the Company and those shares of  Common Stock issuable to the Investor  upon
 exercise of the Warrants.

      1.3.19 "Subsequent Financing" shall mean any  offer and sale of  shares
 of Preferred Stock  or debt  that is  initially convertible  into shares  of
 Common Stock.

      1.3.20 "Transaction Documents" shall mean this Agreement, all Schedules
 and  Exhibits  attached  hereto and all  other  documents and instruments to
 be executed  and  delivered  by  the  parties  in  order  to  consummate the
 transactions  contemplated  hereby,  including,  but  not  limited  to   the
 documents listed in Sections 3.2 and 3.3 hereof.

      1.3.21    "Warrants" shall mean the  Common Stock Purchase Warrants  in
 the form attached hereto Exhibit B.

                                  ARTICLE II

         SALE AND PURCHASE OF RAPID LINK INC. COMMON STOCK AND WARRANTS
                                PURCHASE PRICE

 2.1   Sale of Common Stock and Issuance of Warrants.

      (a)  Upon the terms and subject to the conditions set forth herein, and
 in accordance  with  applicable law,  the  Company  agrees to  sell  to  the
 Investor, and  the Investor  agrees to  purchase from  the Company,  on  the
 Closing Date 357,143 shares  of Common Stock and  the Warrants for  the (the
 "Purchase  Price")  of  Twenty-Five  Thousand  Dollars   ($25,000.00).   The
 Purchase Price shall be paid by the  Investor to the Company on the  Closing
 Date by a wire transfer or check of  the Purchase Price.  The Company  shall
 cause the Common Stock and  the Warrants to be  issued to the Investor  upon
 receipt of the wire by the Company.  The  Company shall register the  shares
 of Common Stock and the shares underlying the Warrants pursuant to the terms
 and conditions of a Registration Rights Agreement attached hereto as Exhibit
 A.

      (b)  Upon execution and  delivery of this  Agreement and the  Company's
 receipt of the Purchase Price, the  Company shall issue to the Investor  the
 Warrant to purchase  an aggregate of  50,000,000 shares of  Common Stock  at
 exercise prices as  stated in the  Warrants, all pursuant  to the terms  and
 conditions of the form of Warrants  attached hereto as Exhibit B;  provided,
 however, that the Investor  shall not be entitled  to exercise the  Warrants
 and receive shares of Common Stock that would result in beneficial ownership
 by the Investor and its affiliates of more than 4.9% of the then outstanding
 number of shares  of Common Stock  on such date.  For  the  purposes of  the
 immediately preceding sentence, beneficial ownership shall be determined  in
 accordance with Section  13(d) of the  Securities Exchange Act  of 1934,  as
 amended, and Regulation 13d-3 thereunder.

 2.2  Purchase Price.  The Purchase Price shall be delivered by  the Investor
 in  the  form of a check  or wire transfer  made payable to  the Company  in
 United States Dollars from the Investor to the Company on the Closing Date.

                                 ARTICLE III

                    CLOSING DATE AND DELIVERIES AT CLOSING

 3.1  Closing Date.  The closing  of the  transactions contemplated  by  this
 Agreement (the "Closing"), unless expressly determined herein, shall be held
 at the offices of the Company, at 5:00 P.M. local time, on the Closing  Date
 or on such other date and at such other  place as may be mutually agreed  by
 the parties,  including  closing  by facsimile  with  originals  to  follow.
 Conversion of Securities

 3.2  Deliveries by  the Company.  In  addition  to  and without limiting any
 other provision of  this Agreement, the Company  agrees to deliver, or cause
 to be delivered the following:

      (a) At or prior to Closing, an executed Agreement with all exhibits and
          schedules attached hereto;

      (b) At or prior  to Closing, an  executed Warrant  in the  name of  the
          Investor in the form attached hereto as Exhibit B;

      (c) The executed Registration Rights Agreement;

      (d) Evidence of approval of the Board of Directors and Shareholders  of
          the  Company  of the Transaction  Documents  and  the  transactions
          contemplated hereby;

      (e) An opinion from the  Company's counsel  concerning the  Transaction
          Documents  and  the transactions  contemplated  hereby in form  and
          substance reasonably acceptable to Investor; and;

      (f) Stock Certificate in  the name  of Investor  evidencing the  Common
          Stock; and

 3.3  Deliveries by Investor.  In addition to and without limiting any  other
 provision of this Agreement, the Investor  agrees to deliver, or cause to be
 delivered, the following:

      (a) A deposit in the amount of the Investor Funds;

      (b) The executed Agreement  with all  Exhibits and  Schedules  attached
          hereto; and

      (c) The executed Registration Rights Agreement.

 In the event any document provided to the other party in Paragraphs 3.2  and
 3.3 herein are provided  by facsimile, the party  shall forward an  original
 document to the other party within seven (7) business days.

 3.4  Further Assurances.  The  Company and the Investor shall, upon request,
 on or after the Closing Date, cooperate with each  other (specifically,  the
 Company shall cooperate with the Investor, and the Investor shall  cooperate
 with  the Company)  by furnishing  any additional information, executing and
 delivering any additional documents and/or  other  instruments and doing any
 and all such things as may be reasonably  required by the parties  or  their
 counsel  to consummate or  otherwise implement the transactions contemplated
 by this Agreement.

 3.5  Waiver.  The Investor may waive any of the requirements of Section  3.2
 of this Agreement, and the  Company at its discretion  may waive any of  the
 provisions of Section 3.3 of this Agreement.

                                  ARTICLE IV

                      REPRESENTATIONS AND WARRANTIES OF
                               RAPID LINK INC.

      Except as set forth in the  Disclosure Schedule and the SEC  Documents,
 the Company represents and  warrants to the Investor  as of the date  hereof
 and as of Closing  (which warranties and  representations shall survive  the
 Closing regardless  of  what  examinations, inspections,  audits  and  other
 investigations the Investor has heretofore made or may hereinafter make with
 respect to such warranties and representations) as follows:

 4.1  Organization and Qualification.  The  Company  is  a  corporation  duly
 organized, validly existing and in good standing under the laws of the State
 of Delaware,  and has the  requisite corporate power  and authority to  own,
 lease  and  operate  its  properties  and  to  carry on  its  business as it
 is  now  being  conducted and is duly qualified  to do business in any other
 jurisdiction  by  virtue of  the  nature  of  the businesses conducted by it
 or the ownership or leasing of its properties, except  where  the failure to
 be so qualified will not, when taken together with all  other such failures,
 have  a  Material  Adverse  Effect on the business,  operations, properties,
 assets,  financial  condition or  results  of operation  of  the Company and
 its subsidiaries taken as a whole.

 4.2  Articles of Incorporation and By-Laws.  The complete and correct copies
 of  the  Company's Articles  and  By-Laws,  as  amended or restated to  date
 which have been  filed with the  Securities  and  Exchange Commission  are a
 complete and correct  copy of such document as  in effect on the date hereof
 and as of the Closing Date.

 4.3  Capitalization.

           4.3.1  The authorized and outstanding capital stock of the Company
 is set forth in the Company's Quarterly Report on Form 10-QSB, filed on June
 14, 2007 with  the Securities  and Exchange  Commission and  updated on  all
 subsequent SEC  Documents.   All  shares of  capital  stock have  been  duly
 authorized and are validly issued, and are fully paid and no assessable, and
 free of preemptive rights.

           4.3.2    As of the date of this Agreement,  the authorized capital
 stock of the Company is as outlined in the most recent SEC Documents.

           4.3.3   Except pursuant  to this  Agreement and  as set  forth  in
 Schedule 4.3 hereto, and as set forth in the Company's SEC Documents,  filed
 with the SEC, as of the  date hereof and as of  the Closing Date, there  are
 not now outstanding  options, warrants, rights  to subscribe  for, calls  or
 commitments of any character whatsoever relating to, or securities or rights
 convertible into or exchangeable for, shares  of any class of capital  stock
 of the Company, or agreements, understandings  or arrangements to which  the
 Company is a party,  or by which the  Company is or may  be bound, to  issue
 additional shares of its capital stock or options, warrants, scrip or rights
 to subscribe for, calls or commitment  of any character whatsoever  relating
 to, or securities or rights convertible into or exchangeable for, any shares
 of any  class of  its capital  stock.   The  Company  agrees to  inform  the
 Investors in writing of any additional warrants granted prior to the Closing
 Date.

           4.3.4   The Company on the Closing Date (i) will have full  right,
 power, and authority to  sell, assign, transfer, and  deliver, by reason  of
 record and  beneficial  ownership,  to  the  Investor,  the  Company  Shares
 hereunder, free and clear of all  liens, charges, claims, options,  pledges,
 restrictions, and encumbrances whatsoever; and (ii) upon proper exercise  of
 the Warrants, the Investor  will acquire good and  marketable title to  such
 Shares, free and clear  of all  liens,  charges,  claims, options,  pledges,
 restrictions, and encumbrances whatsoever,  except as otherwise provided  in
 this Agreement as to the limitation on  the voting rights of such Shares  in
 certain circumstances.

 4.4  Authority. The Company has all requisite corporate power and  authority
 to execute and deliver this Agreement,  the Common Stock, and the  Warrants,
 to perform its obligations  hereunder and thereunder  and to consummate  the
 transactions contemplated hereby and thereby.  The execution and delivery of
 this Agreement  by the  Company and  the  consummation of  the  transactions
 contemplated hereby have  been duly  authorized by  all necessary  corporate
 action and no  other corporate  proceedings on the  part of  the Company  is
 necessary to  authorize this  Agreement or  to consummate  the  transactions
 contemplated hereby except as disclosed in  this Agreement.  This  Agreement
 has been duly  executed and  delivered by  the Company  and constitutes  the
 legal, valid and binding obligation of the Company, enforceable against  the
 Company in accordance with its terms.

 4.5  No Conflict; Required Filings and Consents.  The execution and delivery
 of this  Agreement by the  Company  does  not,  and  the  performance by the
 Company of their respective obligations  hereunder  will not:  (i)  conflict
 with or violate the Articles or By-Laws of the Company; (ii) conflict  with,
 breach  or  violate  any  federal,  state,  foreign  or  local law, statute,
 ordinance,  rule,  regulation,  order,  judgment  or  decree  (collectively,
 "Laws") in effect as of the date of this  Agreement  and  applicable  to the
 Company; or (iii) result in any breach of, constitute a default (or an event
 that with notice  or lapse  of time  or both  would become a default) under,
 give to any other entity any right of  termination,  amendment, acceleration
 or  cancellation  of,  require payment under,  or  result  in  the  creation
 of a lien or encumbrance  on any of the properties or  assets of the Company
 pursuant  to,  any  note,  bond,  mortgage, indenture,  contract, agreement,
 lease,  license,  permit,  franchise  or  other  instrument or obligation to
 which  the  Company  is a party or  by the Company or any of  its properties
 or  assets is  bound.  Excluding  from  the foregoing  are  such violations,
 conflicts,  breaches,  defaults,  terminations,  accelerations, creations of
 liens,  or incumbency that  would not,  in the aggregate,  have  a  Material
 Adverse Effect.

 4.6  Report  and  Financial  Statements.  The  Company's  Annual  Report  on
 Form  10-K, filed  on  January 29, 2007  with the SEC  contains  the audited
 financial statements of the Company.  The Company has previously provided to
 the  Investor  the  reviewed  financial  statements of the  Company  for the
 three  months  ended  June 14, 2007  (the "Financial Statements").  Each  of
 the  balance  sheets  contained  in  or incorporated by  reference into  any
 such  Financial  Statements  (including  the  related  notes  and  schedules
 thereto) fairly presented the financial position  of the Company, as of  its
 date, and each  of the  statements of  income and  changes in  stockholders'
 equity and cash flows or equivalent statements in such Financial  Statements
 (including any related notes and schedules thereto) fairly presents, changes
 in stockholders' equity and changes  in cash flows, as  the case may be,  of
 the Company,  for  the  periods  to  which they  relate,  in  each  case  in
 accordance with  United  States  generally  accepted  accounting  principles
 ("U.S. GAAP") consistently  applied during the  periods involved, except  in
 each case  as  may  be  noted therein,  subject  to  normal  year-end  audit
 adjustments in the case of unaudited  statements.  The books and records  of
 the Company have been, and are being, maintained in all material respects in
 accordance with  U.S. GAAP  and any  other applicable  legal and  accounting
 requirements and reflect only actual transaction.

 4.7  Compliance with Applicable Laws.  The Company is not  in  violation of,
 or, to the knowledge of the Company is under  investigation with respect  to
 or  has been  given notice  or has  been charged  with  the violation of any
 Law of a  governmental agency, except for violations  which  individually or
 in the aggregate do not have a Material Adverse Effect.

 4.8  Brokers.  Except as  set forth  on Schedule  4.8, no  broker, finder or
 investment banker is  entitled to any  brokerage, finder's or  other fee  or
 Commission  in  connection  with  the  transactions  contemplated  by   this
 Agreement based upon arrangements made by or on behalf of the Company.

 4.9  SEC  Documents.   The  Company  acknowledges  that  the  Company  is  a
 publicly held  company and has  made available to the Investor after  demand
 true and complete  copies of any  requested SEC Documents.  The Company  has
 registered its Common Stock pursuant to  Section 12(d) or 15(d) of the  1934
 Act, and the Common Stock is quoted and traded on the OTC Bulletin Board  of
 the National  Association  of Securities  Dealers,  Inc.   The  Company  has
 received no notice, either  oral or written, with  respect to the  continued
 quotation or trading  of the  Common Stock on  the OTC  Bulletin Board.  The
 Company has not provided to the Investor any information that, according  to
 applicable law,  rule or  regulation, should  have been  disclosed  publicly
 prior to  the  date  hereof by  the  Company,  but which  has  not  been  so
 disclosed. As of their respective dates,  the SEC Documents complied in  all
 material respects  with the  requirements of  the 1934  Act, and  rules  and
 regulations of the SEC promulgated thereunder and the SEC Documents did  not
 contain any untrue statement of a material fact or omit to state a  material
 fact required  to  be stated  therein  or necessary  in  order to  make  the
 statements therein,  in light  of the  circumstances under  which they  were
 made, not misleading.

 4.10 Litigation.  Except  as outlined  in  the  Company's  most  recent  SEC
 Documents, to the knowledge of the  Company, no litigation, claim, or  other
 proceeding before any  court or  governmental agency  is pending  or to  the
 knowledge of the Company, threatened against the Company, the prosecution or
 outcome of which may have a Material Adverse Effect.

 4.11 Exemption from Registration.  Subject to the accuracy of the Investor's
 representations  in  Article   V,  except  as   required  pursuant  to   the
 Registration Rights Agreement, the sale of the Common Stock and Warrants  by
 the Company to  the Investor will  not require registration  under the  1933
 Act, but may  require registration under  New York state  securities law  if
 applicable to the  Investor.  Upon  exercise of the  Warrants in  accordance
 with their  terms, the  Shares  underlying the  Warrants  will be  duly  and
 validly issued, fully paid, and non-assessable.  The Company is issuing  the
 Common Stock and the  Warrants in accordance with  and in reliance upon  the
 exemption from securities  registration afforded,  inter alia,  by Rule  506
 under Regulation D  as promulgated  by the SEC  under the  1933 Act,  and/or
 Section 4(2) of the  1933 Act; provided, however,  that certain filings  and
 registrations may  be  required  under  state  securities  "blue  sky"  laws
 depending upon the residency of the Investor.

 4.12 No General Solicitation or Advertising  in Regard to this  Transaction.
 Assuming that the representations and warranties of the Investors in Section
 5 are complete and accurate, neither  the Company nor any of its  Affiliates
 nor, to the  knowledge of the  Company, any Person  acting on  its or  their
 behalf (i) has conducted or will  conduct any general solicitation (as  that
 term is used in Rule 502(c) of Regulation D as promulgated by the SEC  under
 the 1933 Act) or general advertising with respect to the sale of the  Common
 Stock or Warrants,  or (ii)  made any  offers or  sales of  any security  or
 solicited any offers to buy any security under any circumstances that  would
 require registration of the  Common Stock or Warrants,  under the 1933  Act,
 except as required herein.

 4.13 No Material  Adverse  Effect.  Except  as  set forth  in  Schedule 4.13
 attached hereto, since June 14, 2007, no event or circumstance resulting  in
 a Material  Adverse  Effect has  occurred  or  exists with  respect  to  the
 Company. No material supplier or customer has given notice, oral or written,
 that it intends  to cease  or reduce  the volume  of its  business with  the
 Company  from  historical  levels.  Since  June   14,  2007,  no  event   or
 circumstance has  occurred or  exists with  respect to  the Company  or  its
 businesses, properties, prospects, operations or financial condition,  that,
 under any applicable law, rule or regulation, requires public disclosure  or
 announcement prior to the date hereof by the Company but which has not  been
 so publicly announced or disclosed in writing to the Investor.

 4.14 Material Non-Public Information.  The Company has not disclosed to  the
 Investors any material non-public information  that (i) if disclosed,  would
 reasonably be expected to have a material effect on the price of the  Common
 Stock or (ii) according to applicable  law, rule or regulation, should  have
 been disclosed publicly by  the Company prior to  the date hereof but  which
 has not been so disclosed.

 4.15 Internal Controls  And  Procedures.  The Company  maintains  books  and
 records and internal accounting controls which provide reasonable  assurance
 that (i) all transactions to which the Company or any subsidiary is a  party
 or by  which  its  properties  are  bound  are  executed  with  management's
 authorization; (ii) the  recorded accounting of  the Company's  consolidated
 assets is compared with existing assets  at regular intervals; (iii)  access
 to the Company's consolidated  assets is permitted  only in accordance  with
 management's authorization; and (iv) all  transactions to which the  Company
 or any  subsidiary is  a party  or by  which its  properties are  bound  are
 recorded as necessary to permit preparation  of the financial statements  of
 the  Company  in   accordance  with  U.S.   generally  accepted   accounting
 principles.

 4.16 Full Disclosure.  No representation or warranty made by the Company  in
 this Agreement and no certificate or  document furnished or to be  furnished
 to the Investor  pursuant to  this Agreement  contains or  will contain  any
 untrue statement  of a  material fact,  or omits  or will  omit to  state  a
 material fact necessary to make the  statements contained herein or  therein
 not misleading.

                                  ARTICLE V

                REPRESENTATIONS AND WARRANTIES OF THE INVESTORS

 The Investor represents and warrants to the Company that:

 5.1  Organization and Standing of  the Investor.  The Investor is a  limited
 liability company duly formed, validly existing  and in good standing  under
 the laws of the State of Delaware. The state in which any offer to  purchase
 shares hereunder was made or accepted by such Investor is the state shown as
 such Investor's address.  The Investor  was not  formed for  the purpose  of
 investing solely in the Common Stock,  the Warrants or the shares of  Common
 Stock which are the subject of this Agreement.

 5.2  Authorization and  Power.  The Investor  has  the requisite  power  and
 authority to  enter into  and perform  this Agreement  and to  purchase  the
 securities  being  sold  to  it  hereunder.  The  execution,  delivery   and
 performance of this Agreement  by the Investor and  the consummation by  the
 Investor of the transactions contemplated  hereby have been duly  authorized
 by all necessary  partnership action where  appropriate. This Agreement  and
 the Registration Rights Agreement have been  duly executed and delivered  by
 the  Investor  and  at  the  Closing  shall  constitute  valid  and  binding
 obligations of the Investor enforceable  against the Investor in  accordance
 with  their  terms,  except  as  such  enforceability  may  be  limited   by
 applicable bankruptcy, insolvency,  reorganization, moratorium, liquidation,
 conservatorship, receivership  or similar  laws  relating to,  or  affecting
 generally the enforcement  of, creditors' rights  and remedies  or by  other
 equitable principles of general application.

 5.3  No Conflicts. The execution, delivery and performance of this Agreement
 and the consummation by the Investor of the transactions contemplated hereby
 or relating hereto do  not and will not  (i) result in  a violation of  such
 Investor's charter documents  or bylaws where  appropriate or (ii)  conflict
 with, or constitute a  default (or an  event which with  notice or lapse  of
 time or both would become a default) under, or give to others any rights  of
 termination, amendment,  acceleration  or  cancellation  of  any  agreement,
 indenture or instrument to  which the Investor  is a party,  or result in  a
 violation of any law, rule, or regulation, or any order, judgment or  decree
 of any  court or  governmental  agency applicable  to  the Investor  or  its
 properties (except for such conflicts, defaults and violations as would not,
 individually or in  the aggregate, have  a Material Adverse  Effect on  such
 Investor). The Investor is not required to obtain any consent, authorization
 or order  of,  or  make  any  filing or  registration  with,  any  court  or
 governmental agency in order  for it to execute,  deliver or perform any  of
 such  Investor's  obligations  under  this  Agreement  or  to  purchase  the
 securities from the Company  in accordance with  the terms hereof,  provided
 that for purposes of the representation made in this sentence, the  Investor
 is assuming and relying  upon the accuracy  of the relevant  representations
 and agreements of the Company herein.

 5.4  Financial Risks. The Investor acknowledges  that such Investor is  able
 to bear the financial risks associated with an investment in the  securities
 being purchased by the Investor from the Company and that it has been  given
 full access to such records of the  Company and the subsidiaries and to  the
 officers of the Company and the  subsidiaries as it has deemed necessary  or
 appropriate to  conduct its  due diligence  investigation. The  Investor  is
 capable of  evaluating  the  risks  and  merits  of  an  investment  in  the
 securities being purchased by the Investor from the Company by virtue of its
 experience as an investor and its knowledge, experience, and  sophistication
 in financial and business matters and the Investor is capable of bearing the
 entire loss  of its  investment in  the securities  being purchased  by  the
 Investor from the Company.

 5.5  Accredited Investor.  The Investor is (i)  an "accredited investor"  as
 that term is defined in Rule 501 of Regulation D promulgated under the  1933
 Act by  reason  of  Rule  501(a)(3) and  (6),  (ii)  experienced  in  making
 investments of  the  kind  described  in  this  Agreement  and  the  related
 documents, (iii) able, by reason of the business and financial experience of
 its  officers  (if  an  entity)  and  professional  advisors  (who  are  not
 affiliated with or  compensated in  any way  by the  Company or  any of  its
 affiliates or selling agents),  to protect its  own interests in  connection
 with  the  transactions  described  in  this  Agreement,  and  the   related
 documents, and (iv) able to afford the entire loss of its investment in  the
 securities being purchased by the Investor from the Company.

 5.6  Brokers.  Except as set forth  in Schedule  4.8, no  broker, finder  or
 investment banker is  entitled to any  brokerage, finder's or  other fee  or
 Commission  in  connection  with  the  transactions  contemplated  by   this
 Agreement based upon arrangements made by or on behalf of the Investor.

 5.7  Knowledge of Company.  The Investor  and such  Investor's advisors,  if
 any, have been, upon request, furnished  with all materials relating to  the
 business, finances and operations of the  Company and materials relating  to
 the offer and sale  of the securities being  purchased by the Investor  from
 the Company.  The Investor and  such Investor's advisors, if any, have  been
 afforded the opportunity to ask questions  of the Company and have  received
 complete and satisfactory answers to any such inquiries.

 5.8  Risk Factors.  The Investor understands that such Investor's investment
 in the securities being purchased by the Investor from the Company  involves
 a high  degree of  risk.   The Investor  understands that  no United  States
 federal or state agency or any  other government or governmental agency  has
 passed on or made any recommendation or endorsement of the securities  being
 purchased by the Investor from the Company. The Investor warrants that  such
 Investor is able to bear the complete loss of such Investor's investment  in
 the securities being purchased by the Investor from the Company.

 5.9  Full Disclosure.  No representation or warranty made by the Investor in
 this Agreement and no certificate or document furnished  or  to be furnished
 to  the  Company  pursuant  to  this  Agreement contains or will contain any
 untrue statement of a material fact, or  omits  or  will  omit  to  state  a
 material fact necessary  to  make the statements contained herein or therein
 not  misleading.  Except  as  set  forth  or  referred to in this Agreement,
 Investor  does  not  have  any  agreement  or  understanding with any person
 relating to acquiring, holding, voting or disposing of any equity securities
 of the Company.

                                  ARTICLE VI

                           COVENANTS OF THE COMPANY

 6.1  Registration Rights.  The Company shall cause  the Registration  Rights
 Agreement to remain in full force and effect according to the provisions  of
 the Registration  Rights  Agreement and  the  Company shall  comply  in  all
 material respects with the terms thereof.

 6.2  Reservation of Common Stock.  As of  the date hereof,  the Company  has
 reserved and the Company shall continue to reserve and keep available at all
 times, free of preemptive rights, shares of Common Stock for the purpose  of
 enabling the Company to issue the shares  of Common Stock and the shares  of
 Common Stock underlying the Warrants.

 6.3  Compliance with Laws.  The  Company  hereby  agrees to  comply  in  all
 respects with the  Company's reporting, filing  and other obligations  under
 the Laws.

 6.4  Exchange Act Registration. The Company (a) will continue its obligation
 to report to the SEC under Section  12(g) of  the 1934 Act and will use  its
 best efforts  to  comply in  all  respects  with its  reporting  and  filing
 obligations under the 1934  Act, and will  not take any  action or file  any
 document (whether or not permitted by the 1934 Act or the rules  thereunder)
 to terminate or suspend any such registration or to terminate or suspend its
 reporting and filing obligations under the 1934 Act until the Investors have
 disposed of all of their Shares.

 6.5  Preferred Stock . On or prior  to the  Closing Date,  the Company  will
 cause to be cancelled all  preferred stock in the  Company. For a period  of
 two years from the closing the Company will not issue any preferred stock of
 the Company.

 6.6  Independent Directors. The Company shall have caused the appointment of
 the  majority  of  the  board  of  directors  to  be  qualified  independent
 directors, as defined by the NASD within six months post closing.

 6.7  Independent  Directors  Become  Majority  of  Audit  and   Compensation
 Committees.  The Company will cause the appointment of a majority of outside
 directors to the audit and compensation committees of the board of directors
 within six months post Closing.

 6.8 Insider  Selling.  The earliest any "Insiders" can  start selling  their
 shares shall be two years from Closing. Insiders shall include John Jenkins,
 as CEO and  Chris Canfield, as  President and CFO  of the Company.  Westside
 Capital LLC shall not be considered "Insiders".

 6.9 Employment  and  Consulting Contracts.  For two years  after the Closing
 Company  must  have  a  current  unanimous  opinion  from  the  Compensation
 Committee of the Board  of Directors that any  awards other than salary  are
 usual, appropriate and  reasonable for  any officer,  director, employee  or
 consultant holding  a  similar  position in  other  public  fully  reporting
 companies   with   independent   majority   boards   with   similar   market
 capitalizations in the same  industry with securities  listed on the  OTCBB,
 AMEX, NYSE or NASDAQ.

 6.10 Stock Splits.  All forward and reverse  stock splits  shall effect  all
 equity and derivative holders proportionately.

                                 ARTICLE VII

                          COVENANTS OF THE INVESTOR

 7.1  Compliance with Law.  The Investor's trading activities with respect to
 shares of  the  Company's  Common  Stock will  be  in  compliance  with  all
 applicable state  and federal  securities laws,  rules and  regulations  and
 rules and regulations  of any public  market on which  the Company's  Common
 Stock is listed.

 7.2  Transfer Restrictions.  The Investor's  acknowledge that (1) the Common
 Stock, Warrants  and  shares underlying Warrants  have not  been  registered
 under the provisions of the 1933 Act, and may not be transferred unless  (A)
 subsequently registered thereunder or (B) the Investor shall have  delivered
 to the Company an opinion of counsel, reasonably satisfactory in form, scope
 and substance to the Company, to the effect that the Common Stock,  Warrants
 and shares underlying  Warrants to  be sold or  transferred may  be sold  or
 transferred pursuant to  an exemption from  such registration;  and (2)  any
 sale of the Common Stock, Warrants  and shares underlying the Warrants  made
 in reliance on Rule 144 promulgated under the  1933 Act may be made only  in
 accordance with the  terms of said  Rule and further,  if said  Rule is  not
 applicable, any resale of such securities  under circumstances in which  the
 seller, or the person through whom the sale is made, may be deemed to be  an
 underwriter, as that term  is used in the  1933 Act, may require  compliance
 with some other exemption under the 1933 Act or the rules and regulations of
 the SEC thereunder.

 7.3  Restrictive Legend.  The  Investor  acknowledges and  agrees  that  the
 Common Stock,  the Warrants  and the  Shares underlying  the Warrants,  and,
 until such time as the Common Stock and Shares underlying and Warrants  have
 been registered under the 1933 Act and sold in accordance with an  effective
 Registration Statement, certificates and other instruments representing  any
 of the  Shares,  shall  bear  a  restrictive  legend  in  substantially  the
 following form (and a stop-transfer order may be placed against transfer  of
 any such securities):

           "THE SECURITIES  REPRESENTED BY  THIS CERTIFICATE  HAVE NOT
      BEEN REGISTERED  UNDER THE  SECURITIES ACT  OF 1933,  AS AMENDED
      (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND NEITHER
      SUCH SHARES  NOR  ANY  INTEREST THEREIN  MAY  BE  OFFERED, SOLD,
      PLEDGED,  ASSIGNED  OR   OTHERWISE  TRANSFERRED  UNLESS   (1)  A
      REGISTRATION STATEMENT WITH  RESPECT THERETO IS  EFFECTIVE UNDER
      THE SECURITIES ACT AND ANY APPLICABLE  STATE SECURITIES LAWS, OR
      (2) IN ACCORDANCE  WITH THE PROVISIONS  OF REGULATION S,  OR (3)
      PURSUANT TO AN EXEMPTION FROM  REGISTRATION UNDER THE SECURITIES
      ACT."

                                 ARTICLE VIII

               CONDITIONS PRECEDENT TO THE COMPANY'S OBLIGATIONS

      The  obligation  of   the  Company  to   consummate  the   transactions
 contemplated hereby shall  be subject  to the  fulfillment, on  or prior  to
 Closing Date, of the following conditions:

 8.1  No Termination. This Agreement shall not have been  terminated pursuant
 to Article X hereof.

 8.2  Representations True  and  Correct.  The representations and warranties
 of the Investor contained in this Agreement shall be true and correct in all
 material  respects  on  and  as of the  Closing Date with the same force and
 effect as if made on as of the Closing Date.

 8.3  Compliance  with  Covenants.  The  Investor  shall  have performed  and
 complied  in  all  material  respects  with  all  covenants, agreements, and
 conditions  required by this  Agreement to  be performed  or  complied by it
 prior to or at the Closing Date.

 8.4  No Adverse Proceedings.  On the Closing Date,  no action or  proceeding
 shall be pending by any public authority or individual or entity before  any
 court or administrative body to restrain,  enjoin, or otherwise prevent  the
 consummation of this Agreement or the transactions contemplated hereby or to
 recover any damages or obtain other  relief as a result of the  transactions
 proposed hereby.

                                  ARTICLE IX

                 CONDITIONS PRECEDENT TO INVESTOR'S OBLIGATIONS

      The  obligation  of  the  Investors  to  consummate  the   transactions
 contemplated hereby shall  be subject  to the  fulfillment, on  or prior  to
 Closing Date unless specified otherwise, of the following conditions:

 9.1  No Termination. This Agreement shall not have been  terminated pursuant
 to Article X hereof.

 9.2  Representations  True and Correct.  The  representations and warranties
 of the Company contained in this  Agreement shall be true and correct in all
 material  respects  on  and  as of the  Closing Date with the same force and
 effect as if made on as of the Closing Date.

 9.3  Compliance  with  Covenants.   The  Company  shall  have performed  and
 complied  in  all  material  respects  with  all  covenants, agreements, and
 conditions  required by this  Agreement to  be performed  or  complied by it
 prior to or at the Closing Date.

 9.4  No Adverse Proceedings.  On the Closing Date,  no action or  proceeding
 shall be pending by any public authority or individual or entity before  any
 court or administrative body to restrain,  enjoin, or otherwise prevent  the
 consummation of this Agreement or the transactions contemplated hereby or to
 recover any damages or obtain other  relief as a result of the  transactions
 proposed hereby.

                                  ARTICLE X

                      TERMINATION, AMENDMENT AND WAIVER

 10.1 Termination. This Agreement may be terminated at any time prior to  the
 Closing Date:

      10.1.1    by mutual written consent of the Investor and the Company;

      10.1.2    by the Company upon a material breach of any  representation,
 warranty, covenant or  agreement on the  part of the  Investor set forth  in
 this  Agreement,   or  the   Investor  upon   a  material   breach  of   any
 representation, warranty, covenant or agreement on  the part of the  Company
 set forth in  this Agreement, or  if any representation  or warranty of  the
 Company or the Investor, respectively, shall  have become untrue, in  either
 case such that any of the conditions set forth in Article VIII or Article IX
 hereof would  not be  satisfied (a  "Terminating Breach"),  and such  breach
 shall, if capable of cure, not have been cured within five (5) business days
 after receipt by  the party  in breach of  a notice  from the  non-breaching
 party setting forth in detail the nature of such breach.

 10.2 Effect of  Termination.  Except  as  otherwise  provided herein, in the
 event  of  the  termination  of  this  Agreement  pursuant  to  Section 10.1
 hereof,  there shall  be  no  liability  on  the part of the  Company or the
 Investor or any  of their respective  officers,  directors, agents  or other
 representatives and  all rights and  obligations of  any party  hereto shall
 cease.

 10.3 Amendment. This Agreement may be amended by the parties hereto any time
 prior to the Closing Date by an instrument in writing signed by the  parties
 hereto.

 10.4 Waiver.  At any  time prior to the Closing  Date, the  Company and  the
 Investor by mutual consent, may: (a) extend the time for the performance  of
 any of  the obligations  or other  acts of  other party  or; (b)  waive  any
 inaccuracies in the  representations and warranties  contained herein or  in
 any document delivered pursuant hereto which  have been made to it or  them;
 or (c) waive compliance with any  of the agreements or conditions  contained
 herein for its  or their benefit.   Any such  extension or  waiver shall  be
 valid only if set forth in an instrument  in writing signed by the party  or
 parties to be bound hereby.

                                  ARTICLE XI

                              GENERAL PROVISIONS

 11.1 Transaction Costs.  Except  as  otherwise provided herein, each  of the
 parties shall  pay all of his or its costs and expenses  (including attorney
 fees and  other legal costs  and  expenses and  accountants' fees  and other
 accounting costs  and  expenses) incurred  by  that party in connection with
 this Agreement.

 11.2 Indemnification.  The Investor agrees to indemnify, defend and hold the
 Company (following the Closing Date) and its officers and directors harmless
 against and  in respect  of  any and  all  claims, demands,  losses,  costs,
 expenses, obligations, liabilities or damages, including interest, penalties
 and reasonable attorney's fees, that it  shall incur or suffer, which  arise
 out of or  result from  any breach  of this  Agreement by  such Investor  or
 failure  by  such  Investor   to  perform  with  respect   to  any  of   its
 representations, warranties or covenants contained  in this Agreement or  in
 any exhibit or  other instrument  furnished or  to be  furnished under  this
 Agreement.  The Company  agrees to indemnify, defend  and hold the  Investor
 harmless against and  in respect  of any  and all  claims, demands,  losses,
 costs, expenses, obligations,  liabilities or  damages, including  interest,
 penalties and reasonable  attorney's fees, that  it shall  incur or  suffer,
 which arise out of, result from or relate to any breach of this Agreement or
 failure  by  the   Company  to   perform  with   respect  to   any  of   its
 representations, warranties or covenants contained  in this Agreement or  in
 any exhibit or  other instrument  furnished or  to be  furnished under  this
 Agreement.  In no event  shall the Company or  the Investors be entitled  to
 recover consequential  or  punitive  damages  resulting  from  a  breach  or
 violation of this Agreement nor shall any party have any liability hereunder
 in the event of  gross negligence or willful  misconduct of the  indemnified
 party.  In  the event of  a breach of  this Agreement by  either party,  the
 other party shall  be entitled to  pursue a remedy  of specific  performance
 upon tender into  the Court an  amount equal to  the Purchase  Price or  the
 securities being sold hereunder. The indemnification by the Investor and the
 Company shall be limited to $10,000.00.

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

 11.4 Entire Agreement. This Agreement (together with the Schedule, Exhibits,
 Warrants and documents referred  to herein) constitute the  entire agreement
 of the parties  and  supersede  all prior agreements  and undertakings, both
 written and  oral, between the parties,  or any of them, with respect to the
 subject matter hereof.

 11.5 Notices.  All notices  and other  communications hereunder  shall be in
 writing and shall  be deemed to  have been given  (i) on the  date they  are
 delivered if delivered  in person; (ii)  on the date  initially received  if
 delivered by facsimile transmission followed by registered or certified mail
 confirmation; (iii) on the date delivered  by an overnight courier  service;
 or (iv)  on the  third business  day after  it is  mailed by  registered  or
 certified mail, return receipt requested with postage and other fees prepaid
 as follows:

                If to the Company:
                -----------------

                Rapid Link, Inc.
                17383 Sunset Boulevard, Suite 350
                Los Angeles, CA 90272
                Attn: John Jenkins

                With a copy to:
                --------------

                RICHARDSON & PATEL LLP
                10900 Wilshire Blvd, Suite 500
                Los Angeles, CA 90024
                Facsimile No.: (310) 208-1154
                Attn:  Ryan Hong, Esq.

                If to the Investor:
                ------------------

                Westside Capital LLC
                302 West 79th Street, Suite 6D
                New York, New York 10024
                Attn: Thomas Sauve

 11.6 Severability.  If any term  or other  provision  of this  Agreement  is
 invalid, illegal or incapable of being enforced by any rule of law or public
 policy,  all  other  conditions  and  provisions  of  this  Agreement  shall
 nevertheless remain in  full force  and effect so  long as  the economic  or
 legal substance of the transactions contemplated  hereby is not affected  in
 any manner materially adverse  to any party.   Upon such determination  that
 any such term or other provision  is invalid, illegal or incapable of  being
 enforced, the parties hereto  shall negotiate in good  faith to modify  this
 Agreement so as to effect the original  intent of the parties as closely  as
 possible  in  an  acceptable  manner  to  the  end  that  the   transactions
 contemplated hereby are fulfilled to the extent possible.

 11.7 Binding Effect.  All the terms and provisions of this Agreement whether
 so expressed or not, shall be binding upon, inure to the benefit of, and  be
 enforceable by the parties  and their respective administrators,  executors,
 legal representatives, heirs, successors and assignees.

 11.8 Preparation of Agreement.  This Agreement  shall  not be construed more
 strongly  against  any  party  regardless  of  who  is  responsible  for its
 preparation.  The  parties  acknowledge  each  contributed  and  is  equally
 responsible for its preparation.

 11.9 Governing  Law.  This  Agreement shall be governed by, and construed in
 accordance with, the laws of the State of California, without giving  effect
 to applicable principles of conflicts of law.

 11.10 Jurisdiction.  This Agreement  shall be  exclusively governed  by  and
 construed in accordance  with the laws  of the State  of California. If  any
 action is  brought among  the  parties with  respect  to this  Agreement  or
 otherwise, by way of a claim or counterclaim, the parties agree that in  any
 such action, and on all issues, the parties irrevocably waive their right to
 a trial by jury. Exclusive jurisdiction and venue for any such action  shall
 be the Federal Courts serving the State of California. In the event suit  or
 action is brought by any  party under this Agreement  to enforce any of  its
 terms, or in any  appeal therefrom, it is  agreed that the prevailing  party
 shall  be  entitled  to  reasonable  attorneys  fees  to  be  fixed  by  the
 arbitrator, trial court, and/or appellate court.

 11.11 Preparation and Filing of Securities and Exchange Commission  filings.
 The Investor shall reasonably assist  and  cooperate with the Company in the
 preparation of all filings with the SEC after the Closing Date due after the
 Closing Date.

 11.12   Further Assurances,  Cooperation.  Each party shall, upon reasonable
 request by the  other party, execute  and deliver  any additional  documents
 necessary or desirable to complete the  transactions herein pursuant to  and
 in the manner contemplated by this  Agreement.  The parties hereto agree  to
 cooperate  and  use  their  respective   best  efforts  to  consummate   the
 transactions contemplated by this Agreement.

 11.13     Survival.   The   representations,   warranties,   covenants   and
 agreements  made  herein  shall  survive  the  Closing  of  the  transaction
 contemplated hereby.

 11.14     Third Parties.  Except as disclosed in this Agreement, nothing  in
 this Agreement, whether express or implied, is intended to confer any rights
 or remedies under or by reason of  this Agreement on any persons other  than
 the parties  hereto and  their respective  administrators, executors,  legal
 representatives, heirs, successors and assignees.  Nothing in this Agreement
 is intended to relieve or discharge the obligation or liability of any third
 persons to any  party to this  Agreement, nor shall  any provision give  any
 third persons any right of subrogation  or action over or against any  party
 to this Agreement.

 11.15     Failure or Indulgence Not Waiver; Remedies Cumulative.  No failure
 or delay on the  part  of  any  party  hereto  in  the exercise of any right
 hereunder  shall  impair  such right or be construed to be a waiver  of,  or
 acquiescence  in, any  breach  of any representation, warranty,  covenant or
 agreement  herein, nor shall  nay  single or  partial exercise  of any  such
 right preclude other or further exercise thereof or of any other right.  All
 rights and remedies existing under this Agreement are cumulative to, and not
 exclusive of, any rights or remedies otherwise available.

 11.16     Counterparts.  This Agreement  may  be executed  in  one  or  more
 counterparts, and by the different parties hereto in separate  counterparts,
 each of which when executed shall  be deemed to be  an original, but all  of
 which taken  together  shall  constitute  one  and  the  same  agreement.  A
 facsimile transmission of this signed Agreement  shall be legal and  binding
 on all parties hereto.

                        [SIGNATURES ON FOLLOWING PAGE]

<PAGE>

      IN WITNESS WHEREOF, the Investors and  the Company have as of the  date
 first written above executed this Agreement.

 THE COMPANY:

 RAPID LINK INC.

         /s/ John Jenkins
 ------------------------------
 By:            John Jenkins
     --------------------------
 Title: Chief Executive Officer
        -----------------------

 INVESTOR:

 Westside Capital LLC

         /s/ Thomas M. Sauve
 ------------------------------
 Thomas M. Sauve
 Managing Member
 302 West 79th Street, Suite 6D
 New York NY 10024

<PAGE>

                                  Schedule A
                                  ----------

                                                            NUMBER OF SHARES
                           AMOUNT OF     NUMBER OF SHARES      UNDERLYING
 NAME AND ADDRESS          INVESTMENT    OF COMMON STOCK        WARRANTS
 ----------------          ----------    ---------------        --------

 Westside Capital LLC
 302 West 79th Street,
 Suite 6D                  $25,000.00        357,143           50,000,000
 New York, NY 10024

<PAGE>

                                  Exhibit A
                                  ---------

                        Registration Rights Agreement
                        -----------------------------

<PAGE>

                                  Exhibit B
                                  ---------

                                   Warrants
                                   --------

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