Document:

Unassociated Document

     

    
      THESE
        SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED
        (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
        THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES
        UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
        REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF THE
        ACT.

       

      SENIOR
        SECURED CONVERTIBLE PROMISSORY NOTE 

      

        
          	
                  $225,000.00

                	
                  June
                    8,
                    2007

                

        

      

      

      FOR
        VALUE
        RECEIVED, SAYSWAP,
        INC.,
        a
        Delaware corporation (“Borrower”) promises to pay to the order of DIGITALFX
        INTERNATIONAL, INC.,
        a
        Florida corporation (“Lender”), the sum of Two Hundred Twenty-Five Thousand
        Dollars and No One-Hundredths ($225,000.00) together with interest thereon
        at a
        rate of eight percent (8%) per annum on the unpaid balance, with interest
        to be
        compounded semi-annually. 

      

      The
        Borrower and Lender hereby further set forth their rights and obligations
        to one
        another under this Note and agree to be legally bound as follows:

      

      1. Repayment
        Terms; Mandatory Prepayment.
        Borrower hereby agrees to pay in full all unpaid principal and unpaid accrued
        interest due hereunder, on April 24, 2008 (the “Maturity Date”); provided
        that,
        in the
        event of the consummation of a transaction pursuant to which the Borrower
        or any
        of its subsidiaries receives any cash from the issuance of any equity
        securities (including pursuant
        to an initial public offering of equity securities) in excess of $2,500,000
        (a
“Qualified Financing”), prior
        to
        the
        Maturity Date, then on a date no later than ten (10) business days following
        the
        consummation of the Qualified Financing (the “Mandatory Prepayment Date”),
        Borrower shall immediately prepay in full the outstanding amount of the all
        unpaid principal and interest due hereunder. The earlier to occur of Maturity
        Date or the Mandatory Prepayment Date shall be referred to herein as the
“Loan
        Termination Date”). 

      

      Notwithstanding
        the foregoing,
        with
        respect to Borrower’s repayment on the Loan Termination Date, Lender shall
        notify the Borrower in writing (the “Election Notice”), not less than thirty
        (30) days prior to the Maturity Date or three (3) days prior to the date
        of the
        consummation of the Qualified Financing, as applicable, as to whether the
        Lender
        desires to (i) obtain a cash payment in full for the amount of the unpaid
        principal and interest due under this Note, or (ii) convert the unpaid principal
        and interest of this Note (the “Conversion”) into shares of common stock, no par
        value per share, of Borrower (the “Common Stock”) (with anti-dilution protection
        to the same extent provided to holders of Warrants issued by Borrower on
        even
        date herewith), at the rate of 26.1 shares of common stock for each $100,000
        of
        principal and interest due hereunder (the “Conversion Option”). In the event
        that Lender’s Election Notice specifies that Lender chooses the Conversion
        Option, then on the Loan Termination Date, Borrower shall issue stock
        certificate(s) to Lender and execute such other documents and take such further
        action as is necessary to consummate the Conversion. 

       

      
        
           

        

        
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      In
        the
        event Lender chooses the Conversion Option as provided herein, then,
        notwithstanding anything in the foregoing, for purposes of calculating the
        number of shares to be issued to Lender as a result of such conversion, the
        interest rate of this Note shall be deemed to be 12% per annum from the date
        of
        issuance of this Note to the date the conversion is effective. 

      

      In
        the
        event Lender chooses the Conversion Option as provided herein, Lender agrees
        that Lender shall, concurrent with such conversion, become a signatory to
        and be
        bound by all of the terms and conditions of that certain Shareholders Agreement,
        dated as of April 25, 2006, by and among Borrower and the shareholders set
        forth
        therein.

      

      2. Optional
        Prepayment of Note.
        Borrower
        may, at its discretion and without penalty, elect to prepay all or any portion
        of the amount of principal and interest due under the Note at any time prior
        to
        the Loan Termination Date. 

      

      3. Security
        Interest.
        To
        secure the prompt payment and performance to Lender of the Obligations (as
        hereinafter defined), Borrower hereby assigns, pledges and grants to Lender
        for
        its benefit and for the ratable benefit of Lender a continuing first priority
        security interest in and to and lien on all of its assets (the “Collateral”),
        whether now owned or existing or hereafter acquired or arising and wheresoever
        located. Borrower shall mark its books and records as may be necessary or
        appropriate to evidence, protect and perfect Lender’s security interest and lien
        and shall cause its financial statements to reflect such security interest
        and
        lien. 

       

      “Obligations”
shall
        mean all amounts due hereunder of any kind or nature, present or future.
        This
        term includes all principal, interest (including all interest that accrues
        after
        the commencement of any case or proceeding by or against Borrower in bankruptcy,
        whether or not allowed in such case or proceeding), expenses, attorneys’ fees
        and any other sum chargeable to Borrower hereunder.

      

      Borrower
        shall take all action that may be necessary or desirable, or that Lender
        may
        reasonably request, so as at all times to maintain the validity, perfection,
        enforceability and priority of Lender’s security interest in and lien on the
        Collateral or to enable Lender to protect, exercise or enforce its rights
        hereunder and in the Collateral, including, but not limited to, (i) immediately
        discharging all liens other than encumbrances reasonably permitted by Lender,
        (ii) obtaining landlords’ or mortgagees’ lien waivers, (iii) delivering to
        Lender, endorsed or accompanied by such instruments of assignment as Lender
        may
        specify, and stamping or marking, in such manner as Lender may specify, any
        and
        all chattel paper, instruments, letters of credits and advices thereof and
        documents evidencing or forming a part of the Collateral, (iv) delivering
        to
        Lender, such lien, judgment, litigation and bankruptcy searches as Lender
        shall
        request, (v) entering into warehousing, blocked account and other custodial
        arrangements satisfactory to Lender, and (vi) executing and delivering financing
        statements, control agreements, instruments of pledge, mortgages, notices
        and
        assignments, in each case in form and substance satisfactory to Lender, relating
        to the creation, validity, perfection, maintenance or continuation of Lender’s
        security interest and lien under the Uniform Commercial Code or other applicable
        law. Lender is hereby authorized to file financing statements signed by Lender
        instead of Borrower in accordance with the Uniform Commercial Code. By its
        signature hereto, Borrower hereby authorizes Lender to file against Borrower,
        one or more financing continuation or amendment statements pursuant to the
        Uniform Commercial Code in form and substance satisfactory to Lender (which
        statements may have a description of collateral which is broader than that
        set
        forth herein). 

       

      
        
           

        

        
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      4. Representations
        and Warranties of Borrower.
        Borrower
represents
        and warrants to the Lender that (i) it is duly organized, validly existing
        and
        in good standing under the laws of the jurisdiction of its organization,
        (ii) it
        has the requisite power and authority to enter into and carry out the terms
        of,
        and to perform its obligations under, this Note and the transactions related
        hereto, (iii) it has good and marketable title, or a valid and binding leasehold
        or license interest in, all of the Collateral, free and clear of all liens;
        (iv)
        the execution, delivery and performance of this Note, and the related
        transactions, do not and shall not conflict with or violate any organizational
        documents of Borrower or the terms of any agreement between it and a third
        party, and (v) other than this Note, Borrower has no material liability or
        obligation, absolute or contingent (individually or in the aggregate), except
        as
        previously disclosed to Lender.

      

      5. Default.
        Borrower
        will be in default if (i) it fails to perform any agreement hereunder or
        pay any
        obligation secured hereby when due or if the representations and warranties
        of
        Borrower hereunder prove to be false in any material respect; (ii) there
        is a
        filing of any petition of bankruptcy by or against Borrower; or (iii) there
        is
        an application for appointment of a receiver for, making a general assignment
        for the benefit of creditors by, or insolvency of the Borrower (each of which
        shall be referred to herein as an “Event of Default”). 

      

      6. Remedies
        in Case of an Event of Default. In
        case
        an Event of Default shall have occurred and be continuing, then
        the
        Lender hereof may, at its option, declare the whole sum then remaining unpaid
        immediately due and payable. In
        such
        event, the Lender shall be entitled to exercise all of the rights, powers
        and
        remedies for the protection and enforcement of its rights in respect of the
        Collateral, including, without limitation, all the rights and remedies of
        a
        secured party upon default under the Uniform Commercial Code, and the Lender
        shall be entitled, without limitation, to exercise any or all of the following
        rights, which the Borrower hereby agrees to be commercially
        reasonable:

      

      (i) to
        receive all amounts payable in respect of the Collateral otherwise payable
        to
        the Borrower;

      

      (ii) to
        transfer all or any part of the Collateral into the Lender’s name or the name of
        its nominee or nominees;

       

      
        
           

        

        
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      (iii) at
        any
        time or from time to time to sell, assign and deliver, or grant options to
        purchase, all or any part of the Collateral, or any interest therein, at
        any
        public or private sale, without demand of performance or advertisement or
        to
        redeem or otherwise (all of which are hereby waived by the Borrower), for
        cash,
        on credit or for other property, for immediate or future delivery without
        any
        assumption of credit risk, and for such price or prices and on such terms
        as the
        Lender in its reasonable discretion may determine, provided that at least
        ten
        (10) days’ notice of the time and place of any such sale shall be given to the
        Borrower. Lender shall not be obligated to make such sale of Collateral
        regardless of whether any such notice of sale has theretofore been given.
        Each
        purchaser at any such sale shall hold the property so sold absolutely free
        from
        any claim or right on the part of Borrower, and Borrower hereby waives and
        releases to the fullest extent permitted by law any right or equity of
        redemption with respect to the Collateral, whether before or after sale
        hereunder, and all rights, if any, of marshalling the Collateral and any
        other
        security for the obligations under this Note or otherwise. At any such sale,
        unless prohibited by applicable law, Lender may bid for and purchase all
        or any
        part of the Collateral so sold free from any such right or equity of redemption.
        Lender shall not be liable for failure to collect or realize upon any or
        all of
        the Collateral or for any delay in so doing nor shall it be under any obligation
        to take any action whatsoever with regard thereto.

       

      7. Remedies
        Cumulative.
        Each
        right, power and remedy of the Lender provided for in this Note or now or
        hereafter existing at law or in equity or by statute shall be cumulative
        and
        concurrent and shall be in addition to every other such right, power or remedy.
        The exercise or beginning of the exercise by Lender of any one or more of
        the
        rights, powers or remedies provided for in this Note or now or hereafter
        existing at law or in equity or by statute or otherwise shall not preclude
        the
        simultaneous or later exercise by the Lender of all such other rights, powers
        or
        remedies, and no failure or delay on the part of the Lender to exercise any
        such
        right, power or remedy shall operate as a waiver thereof. No notice to or
        demand
        on the Borrower in any case shall entitle it to any other or further notice
        or
        demand in similar or other circumstances or constitute a waiver of any of
        the
        rights of the Lender to any other further action in any circumstances without
        demand or notice.

       

      8. Application
        of Proceeds.
        All
        moneys collected by the Lender upon any sale or other disposition of the
        Collateral pursuant to the terms of this Agreement, together with all other
        moneys received by the Lender hereunder, shall be applied as follows: first,
        to
        the reasonable cost, expenses and attorney’s fees and expenses incurred by
        Lender for collection and for acquisition, completion, protection, removal,
        storage, sale and delivery of the Collateral; second, to interest due upon
        this
        Note; and, third, to the principal of this Note. It is understood and agreed
        that the Borrower shall remain liable to the extent of any deficiency between
        (x) the amount of the obligations under this Note for which it is responsible
        that are satisfied with proceeds of the Collateral and (y) the aggregate
        outstanding amount of such obligations. It is further understood and agreed
        that
        Borrower shall be entitled to receive any and all proceeds of the Collateral
        remaining following the application of proceeds as contemplated in this Section
        8.

       

      9. Purchasers
        of Collateral.
        Upon any
        sale of the Collateral by the Lender hereunder (whether by virtue of the
        power
        of sale herein granted, pursuant to judicial process or otherwise), the receipt
        of the Lender or the officer making the sale shall be a sufficient discharge
        to
        the purchaser or purchasers of the Collateral so sold, and such purchaser
        or
        purchasers shall not be obligated to see to the application of any part of
        the
        purchase money paid over to the Lender or such officer or be answerable in
        any
        way for the misapplication or nonapplication thereof.

       

      
        
           

        

        
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      10.
         Indemnity.
        The
        Borrower hereby agrees (i) to indemnify and hold harmless the Lender from
        and
        against any and all claims, demands, losses, judgments and liabilities
        (including liabilities for penalties) of whatsoever kind or nature, and (ii)
        to
        reimburse the Lender for all reasonable costs and expenses, including reasonable
        attorneys’ fees, in each case growing out of or resulting from the exercise by
        Lender of any right or remedy granted to it hereunder except, with respect
        to
        clauses (i) and (ii) above, to the extent arising from the Lender’s gross
        negligence or willful misconduct. In no event shall the Lender be liable,
        in the
        absence of gross negligence or willful misconduct on its part, for any matter
        or
        thing in connection with this Note other than to account for moneys or other
        property actually received by it in accordance with the terms hereof. If
        and to
        the extent that the obligations of Borrower hereunder are unenforceable for
        any
        reason, the Borrower hereby agrees to make the maximum contribution to the
        payment and satisfaction of such obligations which is permissible under
        applicable law.

       

      11. Transfer
        of Collateral by Borrower. The
        Borrower will not mortgage, pledge or otherwise encumber any of the Collateral.
        Borrower will safeguard and protect all Collateral for Lender’s general account
        and make no disposition thereof whether by sale, lease or otherwise except
        (a)
        the sale of Inventory in the ordinary course of business and (b) the disposition
        or transfer of obsolete and worn-out Equipment in the ordinary course of
        business during any fiscal year having an aggregate fair market value of
        not
        more than $10,000. 

      

      12. Demand
        for Payment and Notice. Borrower
        waives protest of this Note. Any demand upon or notice to Borrower shall
        be
        sufficiently served for all purposes if personally delivered or placed in
        the
        mail addressed to the address for Borrower shown on Lender’s
        record.

      

      13. Delay
        in Enforcement. Lender can
        delay
        enforcement of any rights under this Note without losing them.

      

      14. No
        Invalidation. Any
        provisions hereof found to be invalid or unenforceable shall not invalidate
        the
        remainder of this Note.

      

      15. Additional
        Financing. For
        the
        avoidance of doubt,
        nothing
        in this Note shall restrict the Borrower from obtaining, and Borrower will
        not
        require Lender’s approval to obtain, additional financing through the issuance
        of equity securities or securities convertible into equity securities; provided
        that Borrower shall require the written consent of Lender before issuing
        any
        additional debt that is pari passu or senior to the security of this Note.
        Notwithstanding the foregoing, Live Universe may invest up to $225,000 in
        convertible secured notes having the same terms as this Note, and Borrower
        may
        raise an additional aggregate amount of up to $200,000 from Cottle Properties
        and/or K5 Leisure Products, Inc. or one of their nominees, through the issuance
        of convertible secured notes having the same terms as this Note. Upon the
        payment in full of all Obligations under this Note, all of the terms hereof
        shall be terminated.

       

      
        
           

        

        
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      16. Construction.
        This
        Note
        shall be governed and construed in accordance with the laws of the defendant’s
        Home State, as applicable, in any action arising in connection herewith.
        Lender
        and Borrower each irrevocably submit to the exclusive jurisdiction of the
        state
        and federal courts located in the defendant’s Home State, as applicable, for the
        purpose of any suit, action, proceeding or judgment relating to or arising
        out
        of this Note and the transactions contemplated hereby. For purposes of this
        Note, “Home State” shall mean the State of Minnesota with respect to Borrower
        and the State of Nevada with respect to Lender and shall include, for purposes
        of jurisdiction, Hennepin County with respect to Borrower and Clark County
        with
        respect to Lender. Whenever the context requires, the singular shall include
        the
        plural and the plural shall include the singular, the whole shall include
        any
        part thereof, and any gender shall include all other genders. The headings
        of
        this Note are for the purpose of convenience only and shall not limit, enlarge,
        or otherwise affect any of the terms of this Note. 

      

      Borrower
        has caused this Note to be issued as of the date first set forth
        above.

      

      BORROWER

      

      SAYSWAP,
        INC.,
        a
        Delaware corporation

      

      

      By:      /s/
        Mickey Elfenbein  

        Mickey
        Elfenbein

        Its:
President

      

      Subscribed
        and sworn to before me this 

      _____
        day
        of June, 2007

      by
        Mickey
        Elfenbein, who executed the

      same
        in
        the capacity described. 

      _________________________________   

      Notary
        Public

      

      LENDER

      

      Accepted
        by DIGITALFX
        INTERNATIONAL, INC. on
        June
        8, 2007.

      

      

      By:      /s/
        Craig
        Ellins          

        Craig
        Ellins

        Its:
Chief
        Executive Officer

       

      
        
           

        

        
          6
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      SOFTWARE
        LICENSE AND
        SERVICES AGREEMENT

       

      THIS
        SOFTWARE LICENSE AND SERVICES AGREEMENT (this "Agreement") is made and entered
        into this 8th
        day of
        June, 2007 (the "Effective Date") by and between TRANSPARENSEE
        SYSTEMS, INC.,
        a
        Delaware corporation having its principal place of business at 225 East
        6th
        Street,
        #5H, New York, New York 10003 ("Licensor"), and DIGITALFX
        INTERNATIONAL, INC.,
        a
        Florida corporation having its principal place of business at 3035 East Patrick
        Lane, Suite #9, Las Vegas, Nevada 89120 ("Licensee").

       

      RECITALS

       

      A.
        Licensor is the owner of, or has acquired rights to, the Software and
        Documentation (as defined below).

       

      B.
        Licensor desires to grant to Licensee and Licensee desires to obtain from
        Licensor a nonexclusive license to use the Software and Documentation solely
        in
        accordance with the terms and on the conditions set forth in this
        Agreement.

       

      C.
        Licensor desires to provide to Licensee the Services (as defined below),
        and
        Licensee desires to obtain from Licensor such Services. 

       

      D.
        Licensee desires to resell the technology products offered by Licensor to
        end
        users under a private label, in accordance with the terms and conditions
        set
        forth herein.

       

      NOW,
        THEREFORE, the parties hereto agree as follows:

       

      1.
        DEFINITIONS.

       

      1.1
        "Documentation" shall mean all manuals, user documentation, and other related
        materials pertaining to the Software which are furnished to Licensee by Licensor
        in connection with the Software.

       

      1.2
        "Integration Services" shall mean the technical services required to integrate
        the Software with the Licensee’s proprietary software to enable Licensee to run
        the Software on Licensee’s primary systems of designated equipment, to showcase
        the Software on Licensee’s web site, and to resell products developed from the
        Software as provided herein.

       

      1.3
        "Software" shall mean the computer programs in machine readable object code
        form
        listed in Exhibit A attached hereto and any subsequent error corrections
        or
        updates supplied to Licensee by Licensor pursuant to this Agreement. Exhibit
        "A"
        may be amended from time to time by the parties in writing.

       

      2.
        GRANT
        OF RIGHTS; PURCHASE OF SERVICES.

       

      2.1
        The
        License granted for Software under this Agreement authorizes Licensee on
        a
        nonexclusive basis to use the Software for the license term set forth on
        Exhibit
        A. In addition, Licensor hereby grants to Licensee the right to resell the
        products derived from the Software pursuant to the terms and conditions set
        forth in the Reseller Agreement between the Parties hereto attached to this
        Agreement as Exhibit B (the "Reseller Agreement").

       

      2.2 Licensee
        shall purchase from Licensor, and Licensor shall sell to Licensee, the
        Integration Services as set forth on Exhibit A. Licensee will pay Licensor
        the
        fee for the Integration Services set forth on Exhibit A. 

       

      3.
        DELIVERY OF SOFTWARE AND DOCUMENTATION.

       

      Licensor
        shall deliver to Licensee a master copy of the Software licensed hereunder
        in
        object code form, suitable for reproduction, in electronic files
        only. Licensor
        shall also deliver copies of Documentation in electronic files.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      4.
        MODIFICATIONS.  

       

      4.1
        Error
        Corrections and Updates. Licensor will provide Licensee, at no cost to Licensee,
        with error corrections, bug fixes, patches or other updates to the Software
        licensed hereunder in object code form to the extent available in accordance
        with Licensee's release schedule for a period of one (1) year from the date
        of
        shipment.

       

      4.2
        Other
        Modifications. Licensee may, from time to time, request that Licensor
        incorporate certain features, enhancements or modifications into the Software,
        on terms to be mutually agreed.

       

      4.3
        Title
        to Modifications. All such error corrections, bug fixes, patches, updates
        or
        other modifications shall be the sole property of Licensor.

       

      5.
        COPIES.

       

      5.1
        Printed Matter. Except as specifically set forth herein, no Software or
        Documentation which is provided by Licensee pursuant to this Agreement in
        human
        readable form, such as written or printed documents, shall be copied in whole
        or
        in part by Licensee without Licensor's prior written agreement. Additional
        copies of printed materials may be obtained from Licensor at the charges
        then in
        effect.

       

      5.2
        Machine Readable Matter. Except as specifically set forth herein or in the
        Reseller Agreement, any Software provided in machine readable form may not
        be
        copied by Licensee in whole or in part, except for Licensee's backup or archive
        purposes. Licensee agrees to maintain appropriate records of the number and
        location of all copies of the Software and make such records available upon
        Licensor's request. Licensee further agrees to reproduce all copyright and
        other
        proprietary notices on all copies of the Software in the same form and manner
        that such copyright and other proprietary notices are originally included
        on the
        Software.

       

      6.
        LICENSE FEES.

       

      In
        consideration of the license rights granted in Article 2 above, Licensee
        shall
        pay the License Fees or other consideration for the Software and Documentation
        as set forth on Exhibit A attached hereto.

       

      7.
        PROTECTION OF SOFTWARE.

       

      7.1
        Proprietary Notices. Licensee agrees to respect and not to remove, obliterate,
        or cancel from view any copyright, trademark, confidentiality or other
        proprietary notice, mark, or legend appearing on any of the Software or output
        generated by the Software, and to reproduce and include same on each copy
        of the
        Software.

       

      7.2
        No
        Reverse Engineering. Licensee agrees not to modify, reverse engineer,
        disassemble, or decompile the Software, or any portion thereof.

       

      7.3
        Ownership. Licensee further acknowledges that all copies of the Software
        in any
        form provided by Licensor or made by Licensor are the sole property of Licensor
        and/or its suppliers. Licensee shall not have any right, title, or interest
        to
        any such Software or copies thereof except as provided in this Agreement,
        and
        further shall secure and protect all Software and Documentation consistent
        with
        maintenance of Licensor’s proprietary rights therein.

       

      8.
        CONFIDENTIALITY.

       

      8.1
        Acknowledgement. Licensee hereby acknowledges and agrees that the Software
        and
        Documentation constitute and contain valuable proprietary products and trade
        secrets of Licensor and/or its suppliers, embodying substantial creative
        efforts
        and confidential information, ideas, and expressions. Accordingly, Licensee
        agrees to treat (and take precautions to ensure that its employees treat)
        the
        Software and Documentation as confidential in accordance with the
        confidentiality requirements and conditions set forth below.

       

      8.2
        Maintenance of Confidential Information. Each party agrees to keep confidential
        all confidential information disclosed to it by the other party in accordance
        herewith (the other party’s "Confidential Information"), and to protect the
        confidentiality thereof in the same manner it protects the confidentiality
        of
        similar information and data of its own (at all times exercising at least
        a
        reasonable degree of care in the protection of the Confidential Information);
        provided, however, that neither party shall have any such obligation with
        respect to use or disclosure to others not parties to this Agreement of such
        Confidential Information as can be established to: (a) have been known publicly;
        (b) have been known generally in the industry before communication by the
        disclosing party to the recipient; (c) have become know publicly, without
        fault
        on the part of the recipient, subsequent to disclosure by the disclosing
        party;
        (d) have been known otherwise by the recipient before communication by the
        disclosing party; or (e) have been received by the recipient without any
        obligation of confidentiality from a source (other than the disclosing party)
        lawfully having possession of such information.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      8.3
        Injunctive Relief. Each party hereto acknowledges that the unauthorized use,
        transfer or disclosure of the other party’s Confidential Information will (i)
        substantially diminish the value to the disclosing party of the trade secrets
        and other proprietary interests that are or relate to the subject of this
        Agreement; (ii) render the disclosing party's remedy at law for such
        unauthorized use, disclosure or transfer inadequate; and (iii) cause irreparable
        injury in a short period of time. If either party hereto breaches any of
        its
        obligations with respect to the use or confidentiality of the other party’s
        Confidential Information, the disclosing party shall be entitled to equitable
        relief to protect its interests therein, including, but not limited to,
        preliminary and permanent injunctive relief.

       

      8.4
        Survival. Each party's obligations under this Article 8 will survive the
        termination of this Agreement or of any license granted under this Agreement
        for
        whatever reason.

       

      9.
        WARRANTIES; SUPERIOR RIGHTS.

       

      9.1
        Ownership. Licensor represents that it is the owner of the entire right,
        title,
        and interest in and to Software, and that it has the sole right to grant
        licenses thereunder, and that it has not granted licenses thereto to any
        other
        entity that would restrict rights granted hereunder except as expressly stated
        herein.

       

      9.2
        Limited Warranty. Licensor represents and warrants to Licensee that the Software
        will perform substantially as described in Licensor's then current Documentation
        for such Software for the length of the Term.

       

      9.3
        Limitations. Notwithstanding the warranty provisions set forth in Section
        9.2
        above, all of Licensor's obligations with respect to such warranties shall
        be
        contingent on Licensee's use of the Software in accordance with this Agreement
        and in accordance with Licensor's instructions as provided by Licensor in
        the
        Documentation, as such instructions may be amended, supplemented, or modified
        by
        Licensor from time to time. Licensor shall have no warranty obligations with
        respect to any failures of the Software which are the result of accident,
        abuse,
        misapplication, extreme power surge or extreme electromagnetic
        field.

       

      9.4
        Licensee's Sole Remedy. Licensor's entire liability and Licensee's exclusive
        remedy shall be, at Licensee's option, either (a) repair or replacement of
        the
        Software upon its return to Licensor, or (b) damages following return of
        the
        Software in the amount of $75,000, prorated over the Initial Term of this
        Agreement (e.g. if the breach of warranty occurs on the System Activation
        Date,
        the amount of the damages would be $75,000; if such breach occurred on the
        first
        anniversary of the System Activation Date the damages would be $37,500, and
        if
        such breach occurred on the last day of the Initial Term the damages would
        be
        $0); provided Licensor receives written notice from Licensee during the warranty
        period of a breach of warranty. Any replacement Software will be warranted
        for
        the remainder of the Term.

       

      9.5
        Disclaimer of Warranties. LICENSOR DOES NOT REPRESENT OR WARRANT THAT ALL
        ERRORS
        IN THE SOFTWARE AND DOCUMENTATION WILL BE CORRECTED. THE WARRANTIES STATED
        IN
        SECTION 9.2 ABOVE ARE THE SOLE AND THE EXCLUSIVE WARRANTIES OFFERED BY LICENSOR.
        THERE ARE NO OTHER WARRANTIES RESPECTING THE SOFTWARE AND DOCUMENTATION OR
        SERVICES PROVIDED HEREUNDER, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT
        LIMITED TO ANY WARRANTY OF DESIGN, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR
        PURPOSE, EVEN IF LICENSOR HAS BEEN INFORMED OF SUCH PURPOSE. NO AGENT OF
        LICENSOR IS AUTHORIZED TO ALTER OR EXCEED THE WARRANTY OBLIGATIONS OF LICENSOR
        AS SET FORTH HEREIN.

       

      9.6
        Limitation of Liability. LICENSEE ACKNOWLEDGES AND AGREES THAT THE CONSIDERATION
        WHICH LICENSOR IS CHARGING HEREUNDER DOES NOT INCLUDE ANY CONSIDERATION FOR
        ASSUMPTION BY LICENSOR OF THE RISK OF LICENSEE'S CONSEQUENTIAL OR INCIDENTAL
        DAMAGES WHICH MAY ARISE IN CONNECTION WITH LICENSEE'S USE OF THE SOFTWARE
        AND
        DOCUMENTATION. ACCORDINGLY, LICENSEE AGREES THAT LICENSOR SHALL NOT BE
        RESPONSIBLE TO LICENSEE FOR ANY LOSS-OF-PROFIT, INDIRECT, INCIDENTAL, SPECIAL,
        OR CONSEQUENTIAL DAMAGES ARISING OUT OF THE LICENSING OR USE OF THE SOFTWARE
        OR
        DOCUMENTATION. Any provision herein to the contrary notwithstanding, the
        maximum
        liability of Licensor to any person, firm or corporation whatsoever arising
        out
        of or in connection with any license, use or other employment of any Software
        delivered to Licensee hereunder, whether such liability arises from any claim
        based on breach or repudiation of contract, warranty, tort or otherwise,
        shall
        in no case exceed the actual price paid to Licensor by Licensee for the Software
        whose license, use, or other employment gives rise to the liability. The
        essential purpose of this provision is to limit the potential liability of
        Licensor arising out of this Agreement. The parties acknowledge that the
        limitations set forth in this Article 9 are damages in the amount of $75,000,
        prorated over the Initial Term of this Agreement, and that, were Licensor
        to
        assume any further liability other than as set forth herein, such consideration
        would of necessity be set substantially higher.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      10.
        INDEMNIFICATION 

       

      10.1
        Licensor shall indemnify, hold harmless and defend Licensee against any action
        brought against Licensee to the extent that such action is based on a claim
        that
        the unmodified Software, when used in accordance with this Agreement, infringes
        a United States copyright or patent, and Licensor shall pay all costs (including
        attorneys’ fees), and any damages finally awarded or settlements approved by
        Licensor; provided, that Licensee promptly notifies Licensor in writing of
        any
        claim, gives Licensor sole control of the defense and settlement thereof
        and
        provides all reasonable assistance in connection therewith. If any Software
        is
        finally adjudged to so infringe, or in Licensor's opinion is likely to become
        the subject of such a claim, Licensor shall, at its option, either: (i) procure
        for Licensee the right to continue using the Software (ii) modify or replace
        the
        Software to make it noninfringing, or (iii) permit the Licensee to return
        the
        Software and receive damages in the amount of $75,000, prorated over the
        Initial
        Term of this Agreement (e.g. if the Software is returned pursuant to this
        Section 10.1 on the System Activation Date, the amount of the damages would
        be
        $75,000; if the Software was returned on the first anniversary of the System
        Activation Date the damages would be $37,500, and if the Software was returned
        on the last day of the Initial Term the damages would be $0). Licensor shall
        have no liability regarding any claim arising out of: (w) use of other than
        a
        current, unaltered release of the Software unless the infringing portion
        is also
        in the then current, unaltered release, (x) use of the Software in combination
        with non-Licensor software, data or equipment if the infringement was caused
        by
        such use or combination, (y) any modification or derivation of the Software
        not
        specifically authorized in writing by Licensor or (z) use of third party
        software. THE FOREGOING STATES THE ENTIRE LIABILITY OF LICENSOR AND THE
        EXCLUSIVE REMEDY FOR LICENSEE RELATING TO INFRINGEMENT OR CLAIMS OF INFRINGEMENT
        OF ANY COPYRIGHT OR OTHER PROPRIETARY RIGHT BY THE SOFTWARE.

       

      10.2
        Except for the foregoing infringement claims, Licensee shall indemnify and
        hold
        harmless Licensor and its officers, agents and employees from and against
        any
        claims, demands, or causes of action whatsoever, including without limitation
        those arising on account of Licensee's modification or enhancement of the
        Software or otherwise caused by, or arising out of, or resulting from, the
        exercise or practice of the license granted hereunder by Licensee, its
        sublicensees, if any, its subsidiaries or their officers, employees, agents
        or
        representatives.

       

      11.
        RESELLER AGREEMENT. The parties agree that they shall enter into a Reseller
        Agreement pursuant to which Licensee shall resell products of Licensor, on
        the
        terms set forth in the Reseller Agreement, a copy of which is attached hereto
        as
        Exhibit B.

       

      12.
        DEFAULT AND TERMINATION.

       

      12.1
        Events of Default. This Agreement may be terminated by the nondefaulting
        party
        if any of the following events of default occur: (1) if a party materially
        fails
        to perform or comply with this Agreement or any provision hereof; (2) if
        either
        party fails to strictly comply with the provisions of Section 9
        (Confidentiality) or makes an assignment in violation of Section 14
        (Nonassignability); (3) if a party becomes insolvent or admits in writing
        its
        inability to pay its debts as they mature, or makes an assignment for the
        benefit of creditors; (4) if a petition under any foreign, state, or United
        States bankruptcy act, receivership statute, or the like, as they now exist,
        or
        as they may be amended, is filed by a party; or (5) if such a petition is
        filed
        by any third party, or an application for a receiver is made by anyone and
        such
        petition or application is not resolved favorably within ninety (90)
        days.

       

      12.2
        Effective Date of Termination. Termination due to a material breach of Articles
        2 (Grant of Rights), 5 (Copies), 7 (Protection of Software), or 8
        (Confidentiality) shall be effective on notice. In all other cases, termination
        shall be effective thirty (30) days after notice of termination to the
        defaulting party if the defaults have not been cured within such thirty (30)
        day
        period.

       

      12.3
        Obligations on Expiration of Termination. Within ten (10) days after termination
        of this Agreement, Licensee shall cease and desist all use of the Software
        and
        Documentation and shall return to Licensor all full or partial copies of
        the
        Software and Documentation in Licensee's possession or under its
        control.

       

      13.
        NOTICES. All notices, authorizations, and requests in connection with this
        Agreement shall be deemed given (i) five days after being deposited in the
        U.S.
        mail, postage prepaid, certified or registered, return receipt requested;
        or
        (ii) one day after being sent by overnight courier, charges prepaid, with
        a
        confirming fax; and addressed as first set forth above or to such other address
        as the party to receive the notice or request so designates by written notice
        to
        the other.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      14.
        NONASSIGNABILITY. Neither party hereto shall assign this Agreement or its
        rights
        hereunder without the prior written consent of the other party; except that
        a
        party may assign this Agreement to any parent company or subsidiary, any
        affiliate under common control with the party, any successor to the assets
        of
        the party as a result of a merger, or any purchaser of all or substantially
        all
        of the assets or equity of the party. 

       

      15.
        GOVERNING LAW; JURISDICTION AND VENUE. The validity, interpretation,
        construction and performance of this Agreement shall be governed by the laws
        of
        the State of New York.

       

      16.
        SEVERABILITY. If any provision of this Agreement shall be held by a court
        of
        competent jurisdiction to be illegal, invalid or unenforceable, the remaining
        provisions shall remain in full force and effect.

       

      17.
        MISCELLANEOUS. This Agreement and its exhibits contain the entire understanding
        and agreement between the parties respecting the subject matter hereof. This
        Agreement may not be supplemented, modified, amended, released or discharged
        except by an instrument in writing signed by each party's duly authorized
        representative. All captions and headings in this Agreement are for purposes
        of
        convenience only and shall not affect the construction or interpretation
        of any
        of its provisions. Any waiver by either party of any default or breach hereunder
        shall not constitute a waiver of any provision of this Agreement or of any
        subsequent default or breach of the same or a different kind.

       

      IN
        WITNESS WHEREOF, the parties have caused their duly authorized representatives
        to execute this Agreement as of the date first set forth above.

       

      Transparensee
        Systems, Inc.

      

       

      By:     /s/
        Steven D. Lavine   

      Name:
        Steven D. Lavine

      Title:
        Chief Executive Officer

      

      

      DigitalFX
        International, Inc.

      

      

      By:     /s/
        Craig
        Ellins       

      Name:
        Craig Ellins

      Title:
        Chairman, CEO & President

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      EXHIBIT
        A

       

      SOFTWARE
        AND CONSIDERATION

       

      Description
        of Software

       

      A
        search
        engine that indexes information held in a database and allows users to: (1)
        increase the speed of database queries; (2) query data more flexibly than
        can be
        done with an SQL query; and (3) perform "closest to" and "most similar to"
        queries on structured data.

       

      Description
        of the Integration Services

       

      Licensor
        shall provide the appropriately qualified personnel to perform the Front-End
        and
        Back-End technical services required to integrate the Software with Licensee’s
        proprietary software to enable Licensee to run the Software on Licensee’s
        primary systems of designated equipment, to showcase the Software on Licensee’s
        web site, and to resell products developed from the Software as provided
        herein.
        The Integration Services will be complete on the date (the "System Activation
        Date") on which Licensee’s system is activated with the Software running on it
        as warranted in this Agreement. 

       

      All
        reasonable travel expenses incurred by Licensor personnel in connection with
        the
        performance of the Integration Services shall be paid by Licensee.

       

      License
        Fee and Fees for Integration Services

       

      The
        license fee for the Initial Term (as hereinafter defined) and the fee for
        Integration Services, including (i) Back-End Integration, and (ii) Front
        End
        Integration up to a maximum of $*****, shall be $*****. The license fee for
        the
        Renewal Term, if any, shall be $***** per year. For purposes of calculating
        the
        cost of Front-End Integration, the cost per day, per person, shall be $*****.
        Any fees for Front-End Integration in excess of $***** shall be paid by
        Licensee.

       

      License
        Term

       

      This
        Agreement shall become effective and the Parties’ obligations shall commence
        upon the Effective Date, and continue for a period of two (2) years from
        the
        System Activation Date unless sooner terminated as provided in this Agreement
        (the "Initial Term"). This Agreement will be automatically renewed for an
        additional two (2) year term (the "Renewal Term") after the expiration of
        the
        Initial Term unless Licensee shall give Licensor written notice of its intent
        to
        cancel at least thirty (30) days prior to the expiration of the Initial Term.
        The Initial Term and the Renewal Term, if any, shall be referred to hereunder,
        collectively, as the "Term" of this Agreement.

       

      
        
           

        

        
          6

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