Document:

THE
WARRANT EVIDENCED OR CONSTITUTED HEREBY, AND ALL SHARES OF SERIES A 12%
CUMULATIVE CONVERTIBLE PREFERRED STOCK ISSUABLE HEREUNDER, HAVE BEEN AND WILL BE
ISSUED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”) AND MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR
HYPOTHECATED WITHOUT REGISTRATION UNDER THE ACT UNLESS EITHER (i) THE COMPANY
HAS RECEIVED AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY
SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED IN
CONNECTION WITH SUCH DISPOSITION OR (ii) THE SALE OF SUCH SECURITIES IS MADE
PURSUANT TO RULE 144 PROMULGATED UNDER THE SECURITIES ACT.

     

    WARRANT
TO PURCHASE

    SERIES
A 12% CUMULATIVE CONVERTIBLE PREFERRED STOCK

    OF

    DIGITALFX
INTERNATIONAL, INC.

     

    December
22, 2008

     

    THIS CERTIFIES THAT, for value
received by DigitalFX International, Inc., a Florida corporation (the “Company”), Richard
Kall, or his permitted registered assigns (“Holder”), is
entitled, subject to the terms and conditions of this Warrant, at any time or
from time to time after the Exercise Date of this Warrant, and before the
Expiration Date, to purchase from the Company the Warrant Shares, exercisable at
the Purchase Price.  Both the number of shares of Preferred Stock
purchasable upon exercise of this Warrant and the Purchase Price are subject to
adjustment and change as provided herein.

     

    1.           CERTAIN
DEFINITIONS.  As used in this Warrant the following terms shall
have the following respective meanings:

     

    1.1           “Exercise Date” means
December 22, 2008.

     

    1.2           “Expiration Date”
means 5:00 p.m. Pacific Time on the fifth (5th)
anniversary of the Exercise Date.

     

    1.3           “Preferred Stock”
means the Series A 12% Cumulative Convertible Preferred Stock, par value
$0.01per share, of the Company and any other securities at any time receivable
or issuable upon exercise of this Warrant.

     

    1.4           “Purchase Price” means
$1.00 per share, to be paid by Holder upon exercise of this
Warrant.

     

    1.5           “Registered Holder”
means any Holder in whose name this Warrant is registered upon the books and
records maintained by the Company.

     

    1.6           “Warrant” as used
herein, shall include this Warrant and any warrant delivered in substitution or
exchange therefor as provided herein.

     

    1.7           “Warrant Shares” means
1,000,000 shares of Preferred Stock.

    
      
        
           

        

         

      

      
        
        

        
          

        

      

      
         

      

    

    2.           EXERCISE OF
WARRANT.

     

    2.1           Payment.  Subject
to compliance with the terms and conditions of this Warrant and applicable
securities laws, this Warrant may be exercised, in whole or in part at any time
or from time to time, from and after the Exercise Date and on or before the
Expiration Date by the delivery (including, without limitation, delivery by
facsimile) of the form of Notice of Exercise attached hereto as Exhibit A (the
“Notice of
Exercise”), duly executed by the Holder, at the principal office of the
Company, and as soon as practicable after such date, surrendering

     

    (a)           this
Warrant at the principal office of the Company, and

     

    (b)           payment,
(i) in cash (by cashier’s check) or by wire transfer, (ii) by
cancellation by the Holder of indebtedness of the Company to the Holder; or
(iii) by a combination of (i) and (ii), of an amount equal to the product
obtained by multiplying the number of shares of Preferred Stock being purchased
upon such exercise by the then effective Purchase Price (the “Exercise
Amount”).

     

    2.2           Stock Certificates;
Fractional Shares.  As soon as practicable on or after the date
of any exercise of this Warrant, the Company shall issue and deliver to the
person or persons entitled to receive the same a certificate or certificates for
the number of whole shares of Preferred Stock issuable upon such exercise,
together with cash in lieu of any fraction of a share equal to such fraction of
the Purchase Price of one whole share of Preferred Stock.  No
fractional shares or scrip representing fractional shares shall be issued upon
an exercise of this Warrant.

     

    2.3           Partial Exercise; Effective
Date of Exercise.  In case of any partial exercise of this
Warrant, the Company shall cancel this Warrant upon surrender hereof and shall
execute and deliver a new Warrant of like tenor and date for the balance of the
shares of Preferred Stock purchasable hereunder.  This Warrant shall
be deemed to have been exercised immediately prior to the close of business on
the date of its surrender for exercise as provided above.  The person
entitled to receive the shares of Preferred Stock issuable upon exercise of this
Warrant shall be treated for all purposes as the holder of record of such shares
as of the close of business on the date the Holder is deemed to have exercised
this Warrant.

     

    3.           VALID
ISSUANCE:  TAXES.  All shares of Preferred Stock
issued upon the exercise of this Warrant shall be validly issued, fully paid and
non-assessable, and the Company shall pay all taxes and other governmental
charges that may be imposed in respect of the issue or delivery
thereof.  The Company shall not be required to pay any tax or other
charge imposed in connection with any transfer involved in the issuance of any
certificate for shares of Preferred Stock in any name other than that of the
Registered Holder of this Warrant, and in such case the Company shall not be
required to issue or deliver any stock certificate or security until such tax or
other charge has been paid, or it has been established to the Company’s
reasonable satisfaction that no tax or other charge is due.

     

    4.           ADJUSTMENT OF PURCHASE PRICE AND
NUMBER OF SHARES.  The number of shares of Preferred Stock
issuable upon exercise of this Warrant (or any shares of stock or other
securities or property receivable or issuable upon exercise of this Warrant) and
the Purchase Price are subject to adjustment upon occurrence of the following
events:

    
      
        
        

         

      

      
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    4.1           Adjustment for Stock Splits,
Stock Subdivisions or Combinations of Shares.  The Purchase
Price of this Warrant shall be proportionally decreased and the number of shares
of Preferred Stock issuable upon exercise of this Warrant (or any shares of
stock or other securities at the time issuable upon exercise of this Warrant)
shall be proportionally increased to reflect any stock split or subdivision of
the Company’s Preferred Stock.  The Purchase Price of this Warrant
shall be proportionally increased and the number of shares of Preferred Stock
issuable upon exercise of this Warrant (or any shares of stock or other
securities at the time issuable upon exercise of this Warrant) shall be
proportionally decreased to reflect any combination of the Company’s Preferred
Stock.

     

    4.2           Adjustment for Dividends or
Distributions of Stock or Other Securities or Property.  In
case the Company shall make or issue, or shall fix a record date for the
determination of eligible holders entitled to receive, a dividend or other
distribution with respect to the Preferred Stock (or any shares of stock or
other securities at the time issuable upon exercise of the Warrant) payable in
(a) securities of the Company or (b) assets (excluding cash dividends paid or
payable solely out of retained earnings), then, in each such case, the Holder of
this Warrant on exercise hereof at any time after the consummation, effective
date or record date of such dividend or other distribution, shall receive, in
addition to the shares of Preferred Stock (or such other stock or securities)
issuable on such exercise prior to such date, and without the payment of
additional consideration therefor, the securities or such other assets of the
Company to which such Holder would have been entitled upon such date if such
Holder had exercised this Warrant on the date hereof and had thereafter, during
the period from the date hereof to and including the date of such exercise,
retained such shares and all such additional securities or other assets
distributed with respect to such shares as aforesaid during such period giving
effect to all adjustments called for by this Section
4.

     

    4.3           Reclassification.  If
the Company, by reclassification of securities or otherwise, shall change any of
the securities as to which purchase rights under this Warrant exist into the
same or a different number of securities of any other class or classes, this
Warrant shall thereafter represent the right to acquire such number and kind of
securities as would have been issuable as the result of such change with respect
to the securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change, and the Purchase
Price therefor shall be appropriately adjusted, all subject to further
adjustment as provided in this Section
4.  No adjustment shall be made pursuant to this Section 4.3 upon any
conversion or redemption of the Preferred Stock which is the subject of Section
4.5.

     

    4.4           Adjustment for Capital
Reorganization, Merger or Consolidation.  In case of any
capital reorganization of the capital stock of the Company (other than a
combination, reclassification, exchange or subdivision of shares otherwise
provided for herein), or any merger or consolidation of the Company with or into
another corporation, or the sale of all or substantially all the assets of the
Company then, and in each such case, as a part of such reorganization, merger,
consolidation, sale or transfer, lawful provision shall be made so that the
Holder of this Warrant shall thereafter be entitled to receive upon exercise of
this Warrant, during the period specified herein and upon payment of the
Purchase Price then in effect, the number of shares of stock or other securities
or property of the successor corporation resulting from such reorganization,
merger, consolidation, sale or transfer that a holder of the shares deliverable
upon exercise of this Warrant would have been entitled to receive in such
reorganization, consolidation, merger, sale or transfer if this Warrant had been
exercised immediately before such reorganization, merger, consolidation, sale or
transfer, all subject to further adjustment as provided in this Section
4.  The foregoing provisions of this Section 4.4 shall
similarly apply to successive reorganizations, consolidations, mergers, sales
and transfers and to the stock or securities of any other corporation that are
at the time receivable upon the exercise of this Warrant.  If the
per-share consideration payable to the Holder hereof for shares in connection
with any such transaction is in a form other than cash or marketable securities,
then the value of such consideration shall be determined in good faith by the
Company’s Board of Directors.  In all events, appropriate adjustment
(as determined in good faith by the Company’s Board of Directors) shall be made
in the application of the provisions of this Warrant with respect to the rights
and interests of the Holder after the transaction, to the end that the
provisions of this Warrant shall be applicable after that event, as near as
reasonably may be, in relation to any shares or other property deliverable after
that event upon exercise of this Warrant.

    
      
        
           

        

         

      

      
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    4.5           Conversion of Preferred
Stock.  In case all or any portion of the authorized and
outstanding shares of Preferred Stock of the Company are redeemed or converted
or reclassified into other securities or property pursuant to the Company’s
Articles of Incorporation, as amended, or otherwise, or the Preferred Stock
otherwise ceases to exist, then, in such case, the Holder of this Warrant, upon
exercise hereof at any time after the date on which the Preferred Stock is so
redeemed or converted, reclassified or ceases to exist (the “Termination Date”),
shall receive, in lieu of the number of shares of Preferred Stock that would
have been issuable upon such exercise immediately prior to the Termination Date,
the securities or property that would have been received if this Warrant had
been exercised in full and the Preferred Stock received thereupon had been
simultaneously converted immediately prior to the Termination Date, all subject
to further adjustment as provided in this Warrant.  Additionally, the
Purchase Price shall be immediately adjusted to equal the quotient obtained by
dividing (x) the aggregate Purchase Price of the maximum number of shares of
Preferred Stock for which this Warrant was exercisable immediately prior to the
Termination Date by (y) the number of shares of Preferred Stock of the Company
for which this Warrant is exercisable immediately after the Termination Date,
all subject to further adjustment as provided herein.

     

    5.           CERTIFICATE AS TO
ADJUSTMENTS.  In each case of any adjustment in the Purchase
Price, or number or type of shares issuable upon exercise of this Warrant, the
Chief Financial Officer or Controller of the Company shall compute such
adjustment in accordance with the terms of this Warrant and prepare a
certificate setting forth such adjustment and showing in detail the facts upon
which such adjustment is based, including a statement of the adjusted Purchase
Price.  The Company shall promptly send (by facsimile and by either
first class mail, postage prepaid or overnight delivery) a copy of each such
certificate to the Holder.

     

    6.           LOSS OR
MUTILATION.  Upon receipt of evidence reasonably satisfactory
to the Company of the ownership of and the loss, theft, destruction or
mutilation of this Warrant, and of indemnity reasonably satisfactory to it, and
(in the case of mutilation) upon surrender and cancellation of this Warrant, the
Company will execute and deliver in lieu thereof a new Warrant of like tenor as
the lost, stolen, destroyed or mutilated Warrant.

     

    7.           RESERVATION OF PREFERRED
STOCK.  The Company hereby covenants that at all times there
shall be reserved for issuance and delivery upon exercise of this Warrant such
number of shares of Preferred Stock or other shares of capital stock of the
Company as are from time to time issuable upon exercise of this Warrant and,
from time to time, will take all steps necessary to amend its Articles of
Incorporation, as amended, to provide sufficient reserves of shares of Preferred
Stock issuable upon exercise of this Warrant.  All such shares shall
be duly authorized, and when issued upon such exercise, shall be validly issued,
fully paid and non-assessable, free and clear of all liens, security interests,
charges and other encumbrances or restrictions on sale and free and clear of all
preemptive rights, except encumbrances or restrictions arising under federal or
state securities laws. Issuance of this Warrant shall constitute full authority
to the Company’s officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for shares of
Preferred Stock upon the exercise of this Warrant.

    
      
        
           

        

         

      

      
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    8.           TRANSFER AND
EXCHANGE.  Subject to the terms and conditions of this Warrant
and compliance with all applicable securities laws, this Warrant and all rights
hereunder may be transferred to any Registered Holder’s parent, subsidiary or
affiliate, or, if the Registered Holder is a partnership, to any partner of such
Registered Holder, in whole or in part, on the books of the Company maintained
for such purpose at the principal office of the Company referred to above, by
the Registered Holder hereof in person, or by duly authorized attorney, upon
surrender of this Warrant properly endorsed and upon payment of any necessary
transfer tax or other governmental charge imposed upon such
transfer.  Upon any permitted partial transfer, the Company will issue
and deliver to the Registered Holder a new Warrant or Warrants with respect to
the shares of Preferred Stock not so transferred.  Each taker and
holder of this Warrant, by taking or holding the same, consents and agrees that
when this Warrant shall have been so endorsed, the person in possession of this
Warrant may be treated by the Company, and all other persons dealing with this
Warrant, as the absolute owner hereof for any purpose and as the person entitled
to exercise the rights represented hereby, any notice to the contrary
notwithstanding; provided, however that until a transfer of this Warrant is duly
registered on the books of the Company, the Company may treat the Registered
Holder hereof as the owner for all purposes.

     

    9.           RESTRICTIONS ON
TRANSFER.  The Holder, by acceptance hereof, agrees that,
absent an effective registration statement filed with the Securities and
Exchange Commission (the “SEC”) under the
Securities Act of 1933, as amended (the “Securities Act”)
covering the disposition or sale of this Warrant or the Preferred Stock issued
or issuable upon exercise hereof, as the case may be, and registration or
qualification under applicable state securities laws, such Holder will not sell,
transfer, pledge, or hypothecate any or all of this Warrant or such Preferred
Stock, as the case may be, unless either (i) the Company has received an opinion
of counsel, in form and substance reasonably satisfactory to the Company, to the
effect that such registration is not required in connection with such
disposition, or (ii) the sale of such securities is made pursuant to Rule
144.

     

    10.           COMPLIANCE WITH SECURITIES
LAWS.  By acceptance of this Warrant, the Holder hereby
represents, warrants and covenants that any shares of stock purchased upon
exercise of this Warrant shall be acquired for investment only and not with a
view to, or for sale in connection with, any distribution thereof; that the
Holder has had such opportunity as such Holder has deemed adequate to obtain
from representatives of the Company such information as is necessary to permit
the Holder to evaluate the merits and risks of its investment in the Company;
that the Holder is able to bear the economic risk of holding such shares as may
be acquired pursuant to the exercise of this Warrant for an indefinite period;
that the Holder understands that the shares of stock acquired pursuant to the
exercise of this Warrant will not be registered under the Securities Act (unless
otherwise required pursuant to exercise by the Holder of the registration
rights, if any, granted to the Registered Holder) and will be “restricted
securities” within the meaning of Rule 144 under the Securities Act and that the
exemption from registration under Rule 144 will not be available for at least
six (6) months from the date of exercise of this Warrant, subject to any special
treatment by the SEC for exercise of this Warrant pursuant to Section 2.2, and even
then will not be available unless a public market then exists for the stock,
adequate information concerning the Company is then available to the public, and
other terms and conditions of Rule 144 are complied with; and that all stock
certificates representing shares of stock issued to the Holder upon exercise of
this Warrant or upon conversion of such shares may have affixed thereto a legend
substantially in the following form:

    
      
        
           

        

         

      

      
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    THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY
STATE.  THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON
TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS
PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO
REGISTRATION OR EXEMPTION THEREFROM.  INVESTORS SHOULD BE AWARE THAT
THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME.  THE ISSUER OF THESE SECURITIES MAY REQUIRE
AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE
EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND
ANY APPLICABLE STATE SECURITIES LAWS.

     

    11.           NO RIGHTS OR LIABILITIES AS
STOCKHOLDERS.  This Warrant shall not entitle the Holder to any
voting rights or other rights as a stockholder of the Company.  In the
absence of affirmative action by such Holder to purchase Preferred Stock by
exercise of this Warrant or Preferred Stock upon conversion thereof, no
provisions of this Warrant, and no enumeration herein of the rights or
privileges of the Holder hereof shall cause such Holder hereof to be a
stockholder of the Company for any purpose.

     

    12.           NOTICES.  Except as
may be otherwise provided herein, all notices, requests, waivers and other
communications made pursuant to this Agreement shall be in writing and shall be
conclusively deemed to have been duly given (a) when hand delivered to the other
party; (b) when received when sent by facsimile at the address and number set
forth below; (c) three business days after deposit in the U.S. mail with first
class or certified mail receipt requested postage prepaid and addressed to the
other party as set forth below; or (d) the next business day after deposit with
a national overnight delivery service, postage prepaid, addressed to the parties
as set forth below with next-business-day delivery guaranteed, provided that the
sending party receives a confirmation of delivery from the delivery service
provider.

     

    
      
        	
                To
    Holder:

              	
                To the
      Company:

              
	
                Richard
      Kall

              	
                DigitalFX
      International, Inc.

              
	
                9000
      Players Club Drive

                Las
      Vegas, Nevada 89120

              	
                3035
      East Patrick Lane, Suite #9

                Las
      Vegas, Nevada 89120

              
	
                Attn:  Richard
      Kall

              	
                Attn:  Board
      of Directors; President

              
	
                Fax
      Number:

              	
                Fax
      Number:  (702) 938-4052

              
	 
      	 
      

      

    

    Each
person making a communication hereunder by facsimile shall promptly confirm by
telephone to the person to whom such communication was addressed each
communication made by it by facsimile pursuant hereto but the absence of such
confirmation shall not affect the validity of any such
communication.  A party may change or supplement the addresses given
above, or designate additional addresses, for purposes of this Section 12 by giving
the other party written notice of the new address in the manner set forth
above.

     

    13.           HEADINGS.  The
headings in this Warrant are for purposes of convenience in reference only, and
shall not be deemed to constitute a part hereof.

     

    14.           GOVERNING LAW.  This
Warrant shall be construed and enforced in accordance with, and governed by, the
laws of the State of Nevada, with regard to conflict of law principles of such
state.

    
      
        
           

        

         

      

      
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    15.           NO IMPAIRMENT.  The
Company will not, by amendment of its Articles of Incorporation, as amended, or
bylaws, or through reorganization, consolidation, merger, dissolution, issue or
sale of securities, sale of assets or any other voluntary action, avoid or seek
to avoid the observance or performance of any of the terms of this Warrant, but
will at all times in good faith assist in the carrying out of all such terms and
in the taking of all such action as may be necessary or appropriate in order to
protect the rights of the Registered Holder of this Warrant against
impairment.  Without limiting the generality of the foregoing, the
Company (a) will not increase the par value of any shares of stock issuable upon
the exercise of this Warrant above the amount payable therefor upon such
exercise, and (b) will take all such action as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and
non-assessable shares of Preferred Stock upon exercise of this
Warrant.

     

    16.           NOTICES OF RECORD
DATE.  In case:

     

    16.1           the
Company shall take a record of the holders of its Preferred Stock (or other
stock or securities at the time receivable upon the exercise of this Warrant),
for the purpose of entitling them to receive any dividend or other distribution,
or any right to subscribe for or purchase any shares of stock of any class or
any other securities or to receive any other right; or

     

    16.2           of
any consolidation or merger of the Company with or into another corporation, any
capital reorganization of the Company, any reclassification of the capital stock
of the Company, or any conveyance of all or substantially all of the assets of
the Company to another corporation in which holders of the Company’s stock are
to receive stock, securities or property of another corporation; or

     

    16.3           of
any voluntary dissolution, liquidation or winding-up of the Company;
or

     

    16.4           of
any redemption or conversion of all outstanding Preferred Stock;

     

    then, and
in each such case, the Company will mail or cause to be mailed to the Registered
Holder of this Warrant a notice specifying, as the case may be, (i) the date on
which a record is to be taken for the purpose of such dividend, distribution or
right, or (ii) the date on which such reorganization, reclassification,
consolidation, merger, conveyance, dissolution, liquidation, winding-up,
redemption or conversion is to take place, and the time, if any is to be fixed,
as of which the holders of record of Preferred Stock or (such stock or
securities as at the time are receivable upon the exercise of this Warrant),
shall be entitled to exchange their shares of Preferred Stock (or such other
stock or securities), for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, conveyance,
dissolution, liquidation or winding-up.  The Company shall use all
reasonable efforts to ensure such notice shall be delivered at least thirty (30)
days prior to the date therein specified.

     

    17.           SEVERABILITY.  If
any term, provision, covenant or restriction of this Warrant is held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions of this Warrant shall remain
in full force and effect and shall in no way be affected, impaired or
invalidated.

     

    18.           COUNTERPARTS.  For
the convenience of the parties, any number of counterparts of this Warrant may
be executed by the parties hereto and each such executed counterpart shall be,
and shall be deemed to be, an original instrument.

    
      
        
           

        

         

      

      
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    19.           NO INCONSISTENT
AGREEMENTS.  The Company will not on or after the date of this
Warrant enter into any agreement with respect to its securities which is
inconsistent with the rights granted to the Holder of this Warrant or otherwise
conflicts with the provisions hereof.  The rights granted to the
Holder hereunder do not in any way conflict with and are not inconsistent with
the rights granted to holders of the Company’s securities under any other
agreements, except rights that have been waived.

     

    20.           SATURDAYS, SUNDAYS AND
HOLIDAYS.  If the Expiration Date falls on a Saturday, Sunday
or legal holiday, the Expiration Date shall automatically be extended until 5:00
p.m. the next business day.

     

    21.           ENTIRE
AGREEMENT.  This Warrant is issued pursuant to that certain
Series A 12% Cumulative Convertible Preferred Stock Purchase Agreement entered
into between Holder and Company, and together with such agreement, contains the
sole and entire agreement and understanding of the parties with respect to the
entire subject matter of this Warrant, and any and all prior discussions,
negotiations, commitments and understandings, whether oral or otherwise, related
to the subject matter of this Warrant are hereby merged herein and
therein.

     

    22.           ACKNOWLDGEMENT.  Kall
acknowledges that the preferred stock issued under this agreement cannot be
converted into common stock prior to the receipt of the AMEX approval, which is
expected to be obtained based on the application for additional listings that
was filed on December 15, 2008.

    
      
        
           

        

         

      

      
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    IN WITNESS WHEREOF, the
parties hereto have executed this Warrant as of the Effective Date.

     

    
      
        
          
            
              
                
                  	
                          HOLDER:

                        	 	
                          COMPANY:

                        
	 	 	 
	 
      	 
      	 	
                          DIGITALFX
      INTERNATIONAL, INC.

                        
	 
      	 
      	 	 
      	 
      
	
                          By: 

                        	
                          /s/ Richard Kall

                        	 	
                          By:

                        	
                          /s/ Abraham Sofer

                        
	 
      	
                          Richard
      Kall

                        	 	 
      	
                          Abraham
      Sofer,
President

                        

                

              

            

          

        

      

    

     

    SIGNATURE
PAGE TO WARRANT

     

    
      
        
        

      

      
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    EXHIBIT
A

     

    NOTICE
OF EXERCISE

     

    (To be
executed upon exercise of Warrant)

     

    DigitalFX
International, Inc.

    3035 East
Patrick Lane, Suite #9

    Las
Vegas, Nevada 89120

     

    The
undersigned hereby irrevocably elects to exercise the right of purchase
represented by the within Warrant for, and to purchase thereunder, the
securities of DigitalFX International, Inc., as provided for therein, and
tenders herewith payment of the exercise price in full in the form of cash or a
certified or official bank check in same-day funds in the amount of
$____________ for _________ such securities.

     

    Please
issue a certificate or certificates for such securities in the name of, and pay
any cash for any fractional share to (please print name, address and social
security number):

     

    
      
        
          	
                  Name:

                	 
      
	 
      	 
      
	
                  Address:

                	 
      
	 
      	 
      
	
                  Signature:

                	 
      

        

      

    

     

    Note:  The
above signature should correspond exactly with the name on the first page of the
Warrant or with the name of the assignee appearing in the assignment form
attached to the Warrant.

     

    If said
number of shares shall not be all the shares purchasable under the within
Warrant, a new Warrant is to be issued in the name of said undersigned for the
balance remaining of the shares purchasable thereunder rounded up to the next
higher whole number of shares.

    
      
        
        

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    ASSIGNMENT

     

    (To be
executed only upon assignment of Warrant)

     

    For value
received, the undersigned hereby sells, assigns and transfers unto
______________________ the within Warrant, together with all right, title and
interest therein, and does hereby irrevocably constitute and appoint
_________________________ attorney, to transfer said Warrant on the books of the
within-named Company with respect to the number of shares of Series A 12%
Cumulative Convertible Preferred Stock underlying the Warrant set forth below,
with full power of substitution in the premises:

     

    
      
        
          
            
              
                
                  
                    	
                            Name(s) of Assignee(s)

                          	 
      	
                            Address

                          	 
      	
                            # of shares of Series A 12%

                            Cumulative Convertible

                            Preferred Stock underlying

                            Warrant

                          
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      

                  

                

              

            

          

        

      

    

     

    And if
said number of shares shall not be all the shares represented by the Warrant, a
new Warrant is to be issued in the name of said undersigned for the balance
remaining of the shares of Series A 12% Cumulative Convertible Preferred Stock
underlying the Warrant.

     

    
      	 
      	 
      
	
              Dated:

            	 
      
	 
      	 
      
	
              Signature:

            	 
      

    

     

    Notice:  The
signature to the foregoing Assignment must correspond to the name as written
upon the face of this security in every particular, without alteration or any
change whatsoever; signature(s) must be guaranteed by an eligible guarantor
institution (banks, stock brokers, savings and loan associations and credit
unions with membership in an approved signature guarantee medallion program)
pursuant to Securities and Exchange Commission Rule 17Ad-15.AGREEMENT

    

    This
Agreement (this “Agreement”) is made as of the 22nd day of
December, 2008 by and between DIGITALFX INTERNATIONAL, Inc., a Florida
corporation (the “Corporation”) and Mr. RICHARD
KALL of 9000 Players Club Drive, Las Vegas, Nevada  89134 (“Kall”).

     

    WHEREAS, the Corporation and
certain investors (“Investors”) are parties to
that certain Securities Purchase Agreement, dated as of November 29, 2007 (the
“Original Securities Purchase
Agreement”), as amended by those certain Amendment and Exchange
Agreements dated as of March 24, 2008 (the “Amendment and Exchange
Agreements” and together with the Original Securities Purchase Agreement,
the “Amended
Agreement”);

     

    WHEREAS, as a consequence of
the occurrence of an Event of Default under the Amended and Restated Senior
Secured Convertible Notes (the “Amended Notes”), issued
pursuant to the Amended Agreement, by reason of the occurrence of one or more
Financial Covenant Failures (as defined in the Amended Notes) with respect to
the Corporation’s fiscal quarter ended June 30, 2008, the Corporation, each
Investor and Kall entered into a Note Purchase Agreement on October 15, 2008
pursuant to which Kall purchased from each Investor its pro rata share of (i) an
aggregate of $350,000 of the unpaid principal amount of the Amended Notes, (ii)
Amended and Restated Warrants to purchase an aggregate of 90,518 shares of the
Corporation’s Common Stock (“Common Stock”) and (iii) an
aggregate of 120,000 shares of Common Stock, in consideration for, among other
things, each Investor’s forbearance from enforcing any rights regarding
redemption of the Amended Notes that may have arisen by reason of the
aforementioned Financial Covenant Failures for a period of 30 days;

     

    WHEREAS, the principal owed on
the Amended Notes to the Investors as of the date of this Agreement is
$2,550,000 and the interest owed on this principal amount is $67,912.46
(together, the “Debt”);

     

    WHEREAS, Kall has agreed to
purchase (i) Two Million shares of Series A 12% Cumulative Convertible Preferred
Stock of the Corporation at $1 per share and (ii) a Series A Warrant to purchase
One Million shares of Series A 12% Cumulative Convertible Preferred Stock via a
Stock Purchase Agreement for a total of $2,000,000, per Schedule “A” (the “Investment”), and has
conditioned his Investment on the restructuring of the Debt, as more fully
provided hereunder;

     

    WHEREAS, Kall advanced to the
Corporation the sum of $700,000 on account of the Investment ( $500,000 on
November 15, 2008 and $200,000 on December 18, 2008);

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    WHEREAS, the Corporation and
each Investor, upon the closing of Amendment and Exchange Agreements dated
December 22, 2008 (the “December Agreements”), will
facilitate the Corporation’s repayment of the Debt through a cash payment in the
aggregate amount of $650,000 (the “Debt Reduction Cash Amount”),
and the payment of the balance of the Debt as follows: (i) $800,000 of the Debt
will be exchanged for 5,520,000 shares of the common stock of WoozyFly Inc. (the
“WoozyFly Shares”), (ii)
$600,000 through the issuance of 5,149,440 (assuming Closing on such date, or
such other amount to be issued upon the Second Closing Date as defined in the
December Agreements) shares of Common Stock (the “Common Shares”), and (iii) the
balance of $572,274.02 (assuming a Closing on December 22, 2008) through the
exchange of Amended Notes for Second Amended and Restated Senior Secured
Convertible Notes substantially in the form attached hereto as Schedule “B” (the “Notes”) having an aggregate
principal amount of $572,274.02 (assuming a Closing on December 22, 2008); and
such repayment is more fully described on Schedule “C” (the “Securities
Schedule”);

     

    WHEREAS, the Corporation and
Kall desire to exchange Kall’s Amended Notes for a new note having a principal
balance of $357,929.65 (assuming a Closing on December 22, 2008) and having
terms identical to the Notes described on Schedule “B” (the “New Kall Note”):

     

    WHEREAS, to maintain
compliance with listing requirements, any issuance of new shares of common stock
by the Corporation as contemplated by this Agreement must be pre-approved by the
American Stock Exchange (“AMEX”) by filing an
application for additional listing (the “AMEX Approval”), and such
application has been submitted by counsel to the Corporation on Monday December
15, 2008 with a petition for expedited review,

     

    NOW, THEREFORE, in
consideration of the premises, and the mutual terms and conditions hereinbelow
set forth, the Parties agree, as follows:

     

    ARTICLE
1.

    CONSTRUCTION
AND DEFINED TERMS

     

    1.1           Articles and
Sections.  The Article and Section headings and captions in
this Agreement are for convenience only and shall not affect the construction or
interpretation of this Agreement.  The references in this Agreement to
Articles and Sections shall be read as Articles or Sections of this Agreement
unless otherwise specifically provided.

     

    1.2           Defined
Terms.  Unless otherwise expressly stated in this Agreement,
capitalized terms used in this Agreement shall have the following
meanings:

     

    (a)           “Board” means the Board of
Directors of the Corporation.

     

    (b)           “Closing” means the closing of
the transactions contemplated by this Agreement.  The Closing shall be
10:00 a.m., Pacific Time, on the Business Day on which the conditions set forth
in Article 5 are satisfied (or waived) (or such other time and date as is
mutually agreed to by the Parties).

     

    (c)           “Closing Date” means the date
and time of the Closing.

     

    (d)           “Party” means any of the
Corporation or Kall considered individually as the context may require, and
“Parties” means all of
them considered together.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (e)           “Person” means any natural
person, corporation, limited liability company, partnership, joint venture,
entity, association, joint-stock company, trust or unincorporated organization
and any governmental authority.

     

    ARTICLE
2.

    EXCHANGE

     

    The
Investment is conditioned upon the exchange of the notes held by Kall, as
described below:

     

    2.1           Exchange of Kall Amended
Notes. Kall shall surrender to the Corporation his three Amended Notes
totaling in the aggregate $350,000 and in consideration therefore the
Corporation shall issue and deliver to Kall a New Kall Note in the principal
amount of $357,331.

     

    ARTICLE
3.

    AMENDMENTS
TO TRANSACTION DOCUMENTS

     

    3.1           Reaffirmation.  The
Corporation hereby confirms and agrees that, except as otherwise expressly
provided herein:

     

    (a)           The
Amended Agreement, the December Agreements and each other Transaction Document
(as defined in the Amended Agreement) is, and shall continue to be, in full
force and effect and is hereby ratified and confirmed in all respects, except
that on and after the Closing Date (i) all references in the Amended Agreement
to “this Agreement,” “hereto,” “hereof,” “hereunder” or words of like import
referring to the Amended Agreement shall mean the Amended Agreement as amended
by this Agreement, and (ii) all references in the other Transaction
Documents to the “Securities Purchase Agreement,” “thereto,” “thereof,”
“thereunder” or words of like import referring to the Amended Agreement shall
mean the Amended Agreement as amended by this Agreement.  REFERENCES
TO NOTES IN ALL TRANSACTION DOCUMENTS MEANS NOTES AND THE NEW KALL NOTE UNDER
THIS AGREEMENT;

     

    (b)           To
the extent that the Amended Agreement or any other Transaction Document purports
to assign or pledge to the Collateral Agent for the Investors and Kall
(collectively the “Note
Holders”), or to grant to the Collateral Agent a security interest in or
lien on, any collateral as security for the obligations of the Corporation from
time to time existing in respect of the Amended Notes and any other existing
Transaction Document, such pledge, assignment and/or grant of the security
interest or lien is hereby ratified and confirmed in all respects, and shall
apply with respect to the obligations under the Notes and the New Kall Note and
no additional filing is required to be made in order to maintain the perfection
of the security interest in, or lien, on such collateral, except that the
Corporation shall be permitted to grant liens or security interests with
seniority over any and all the liens and / or  liens under the Amended
Agreement; and

     

    (c)           the
execution, delivery and effectiveness of this Agreement shall not operate as an
amendment of any right, power or remedy of the Collateral Agent or the Note
Holders under any Transaction Document, nor constitute an amendment of any
provision of any Transaction Document.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.2           Amendment to Transaction
Documents.  Each of the Transaction Documents is hereby amended
as follows:

     

    (a)           All
references to “Notes” shall be amended to mean the Notes and the New Kall Note
as defined in this Agreement.

     

    (b)           The
defined term “Transaction Documents” is hereby amended to include this
Agreement.

     

    3.3           Amendment to Amendment and
Exchange Agreement.  Each of Section 4(d), Section 4(e) and
Section 4(h) of the Amendment and Exchange Agreement is hereby amended in its
entirety to read as follows:

     

    “Intentionally
omitted.”

     

    ARTICLE
4.

    ACTIONS
AT CLOSING

     

    4.1                      Actions by the
Corporation.  The Corporation shall deliver to Kall (i) a share
certificate for 2,000,000 shares of Series A 12% Cumulative Convertible
Preferred Stock of the Corporation, (ii) an executed copy of this Agreement,
(iii) copies of the December Agreements signed by each of the Investors, (iv)
confirmation of payment of the Debt Reduction Cash Amount via wire transfers to
the accounts of the Investors, (v) an executed Series A 12% Cumulative
Convertible Preferred Stock Purchase Agreement, and (vi) an Executed Exhibit B
to the Series A 12% Cumulative Convertible Preferred Stock Purchase Agreement
granting Kall the Series A Warrant.

     

    No more
than three (3) Business Days following the earlier of (i) the Company’s receipt
of the AMEX Approval and (ii) the Company’s Common Stock being listed on the OTC
Bulletin Board, and only if the AMEX Approval or OTC Bulletin Board listing has
been completed, the Company shall deliver to Kall the New Kall Note with a
principal amount of [$357,331].

     

    4.2                      Actions by
Kall.  Kall shall deliver to the Corporation (i) an executed
copy of this Agreement, (ii) an executed copy of a Series A 12% Cumulative
Convertible Preferred Stock Purchase Agreement, (iii) three Kall Amended Notes
totaling $350,000 (to be held in escrow pending the AMEX Approval or OTC
Bulletin Board listing of the Common Stock), and (iv) proof of wire transfer of
$1,300,000 into the trust account of Stubbs Alderton & Markiles, LLP,
outside counsel to the Corporation, or to a bank account of the
Corporation.

     

    ARTICLE
5.

    CONDITIONS
TO CLOSING

     

    5.1           Conditions to Kall’s
Obligations.  The obligations of Kall hereunder are subject to
the satisfaction of each of the following conditions, provided that these
conditions are for Kall’s sole benefit and may be waived by Kall at any time in
his sole discretion by providing the Corporation and/or the Investors, as
applicable, with prior written notice thereof:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a)           The
Corporation shall have executed this Agreement, all schedules, and delivered the
same to Kall.

     

    (b)           Each
of the Investors shall have (i) executed the December Agreement and (ii)
surrendered their Amended Notes for cancellation in exchange for the Notes and
their pro rata share of the WoozyFly Shares and the Exchange
Shares.

     

    (c)           The
Corporation shall have executed and delivered to Kall a share certificate for
2,000,000 shares of Series A 12% Cumulative Convertible Preferred Stock of the
Corporation, and the Stock Purchase Warrant for 1,000,000 shares of Preferred
Stock.

     

    (d)           The
Corporation shall have delivered to Kall a certificate, executed by the
Secretary of the Corporation and dated as of the Closing Date, as to the
resolutions approving the transactions contemplated hereby as adopted by the
Board.

     

    (e)           Each
of the Investors and the Corporation shall have performed, satisfied and
complied in all material respects with the covenants, agreements and conditions
required by this Agreement and the December Agreement to be performed, satisfied
or complied with by such Party at or prior to the Closing Date and after giving
effect to the terms of this Agreement

     

    5.2           Conditions to Corporation’s
Obligations.  The obligations of the Corporation to Kall are
subject to the satisfaction of each of the following conditions, provided that
these conditions are for the Corporation’s sole benefit and may be waived by the
Corporation at any time in its sole discretion by providing Kall, as applicable,
with prior written notice thereof:

     

    (a)           Kall
shall have executed this Agreement, all schedules, and delivered the same to the
Corporation.

     

    (b)           Each
Investor shall have executed the December Agreement and shall have delivered to
the Corporation such Investor’s Amended Note for cancellation.

     

    (c)           Each
Investor shall have performed, satisfied and complied in all material respects
with the covenants, agreements and conditions required by the December Agreement
to be performed, satisfied or complied with by such Investor at or prior to the
Closing Date.

     

    (d)           Kall
shall have performed, satisfied and complied in all material respects with the
covenants, agreements and conditions required by this Agreement to be performed,
satisfied or complied with by Kall at or prior to the Closing Date.

     

    (e)           Kall
shall have delivered to the Corporation three Amended Notes totaling
$350,000.

     

    (f)           Each
of the Investors shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required by the December
Agreements to be performed, satisfied or complied with by such Party at or prior
to the Closing Date and after giving effect to the terms of this
Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (g)           Kall
shall have advanced no later than Wednesday, December 22, 2008 the sum of
$1,300,000 to a trust account of Stubbs Alderton & Markiles, LLP, outside
counsel to the Corporation, or to a bank account of the
Corporation.

     

    ARTICLE
6

    TERMINATION

     

    6.1           Termination. This
Agreement may be terminated and the transactions contemplated hereby may be
abandoned at any time by the mutual agreement of the Parties; or by any of the
Parties in the event that the conditions to such Parties’ obligations under this
Agreement are not satisfied.

     

    6.2           Effect of
Termination.  If this Agreement is terminated pursuant to
Section 6.1, all obligations of the Parties under this Agreement shall terminate
and this Agreement shall thereupon be deemed to be null, void and unenforceable
ab initio.

     

    ARTICLE
7

    MISCELLANEOUS

     

    7.1           Notices. Any notices,
consents, waivers or other communications required or permitted to be given
under the terms of this Agreement must be in writing and will be deemed to have
been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
when sent by facsimile or electronic mail (provided confirmation of transmission
is mechanically or electronically generated and kept on file by the sending
party); or (iii) one Business Day (as defined in the Amended Agreement) after
deposit with an overnight courier service, in each case properly addressed to
the Party to receive the same. The addresses and facsimile numbers or email
addresses for such communications shall be:

     

    If to the
Corporation:                     
  DigitalFX International, Inc.

    3035 East Patrick Lane, Suite
9

    Las Vegas,
Nevada  89120

    Attn:  Abraham, Sofer, Esq.,
President

    Facsimile
No.:  702-938-4052

    

    With a copy to:

    

    If to
Kall:                                          9000
Players Club Drive

    Las Vegas,
Nevada  89134

    Email:
riichard@vmdirect.com

    

    7.2           Amendments, Waivers and
Consents; Successors and Assigns.  Neither this Agreement nor
any of the terms hereof may be amended, changed, waived or discharged, nor shall
any consent be given, unless such amendment, change, waiver, discharge or
consent is in writing and signed by the Parties hereto.  This
Agreement shall inure to the benefit of and be binding upon each Party hereto
and each Party’s successors and assigns.  This Agreement may not be
assigned by any Party hereto without the prior written consent of each of the
other Parties hereto.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.3           Governing Law; Jurisdiction;
Venue.  All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of
law or conflict of law provision or rule (whether of the State of New York or
any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of New York.  Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in The City of New York, Borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is brought in an inconvenient forum or that the
venue of such suit, action or proceeding is improper.  Each party
hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof to
such party at the address for such notices to it under this Agreement and agrees
that such service shall constitute good and sufficient service of process and
notice thereof.  Nothing contained herein shall be deemed to limit in
any way any right to serve process in any manner permitted by law.

     

    EACH
PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

     

    7.4           Counterparts;
Facsimile.  This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.  This
Agreement shall become effective when each Party hereto shall have received a
counterpart, or facsimile of a counterpart, of the Agreement, signed by the
other Party or Parties hereto.  Delivery of an executed copy of this
Agreement by facsimile transmission or in digital image format shall have the
same effect as delivery of an originally executed copy of this Agreement,
whether an originally executed copy shall be delivered subsequent
thereto.

     

    7.5           Amendments; No
Waivers.  No provision of this Agreement may be amended other
than by an instrument in writing signed by each Party hereto.  No
provision hereof may be waived other than by an instrument in writing signed by
the party against whom enforcement is sought.  No consideration shall
be offered or paid to any Party to amend or consent to a waiver or modification
of any provision of this Agreement unless the same consideration also is offered
to all of the other Parties hereto.

     

    7.6           Expenses.  Each
of the Parties shall pay all of its, his or her own fees, costs and expenses
(including, without limitation, fees, costs and expenses of legal counsel)
incurred in connection with the negotiation of this Agreement, the performance
of its, his or her obligations hereunder, and the consummation of the
transactions contemplated hereby.

     

    7.7           Successors and
Assigns.  No Party to this Agreement may assign his, her or its
rights or delegate his, her or its obligations hereunder without the prior
written consent of the other Parties.  The provisions of this
Agreement shall be binding upon and inure to the benefit of the Parties hereto
and their respective successors and assigns.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.8           Severability.  If
any provision of this Agreement is prohibited by law or otherwise determined to
be invalid or unenforceable by a court of competent jurisdiction, the provision
that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable,
and the invalidity or unenforceability of such provision shall not affect the
validity of the remaining provisions of this Agreement so long as this Agreement
as so modified continues to express, without material change, the original
intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not
substantially impair the respective expectations or reciprocal obligations of
the parties or the practical realization of the benefits that would otherwise be
conferred upon the parties.  The parties will endeavor in good faith
negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to
that of the prohibited, invalid or unenforceable provision(s).

     

    7.9           Entire
Agreement.  This Agreement constitutes the entire agreement
among the Parties with respect to the subject matter hereof and supersedes all
prior agreements, understandings and negotiations, both written and oral, among
the Parties with respect to the subject matter hereof.  No
representation, inducement, promise, understanding, condition or warranty not
set forth herein has been made or relied upon by any Party
hereto.  None of the provisions of this Agreement is intended to
confer upon any Person other than the Parties hereto any rights or remedies
hereunder.

     

    7.10           Waiver.  Effective
as of the Closing, Kall hereby irrevocably waives forever any past, present and
future claims he might be entitled to against the Company as a result of a
failure to meet any and/or all of the Financial Covenants (as defined in Kall’s
Amended Notes) prior to the date hereof.  For the avoidance of doubt,
Kall does not waive any rights he has under the New Kall Note being issued
pursuant to this Agreement.

     

    7.11           Acknowledgement and
Waiver.   Kall (i) acknowledges that the preferred stock
issued under this agreement cannot be converted into common stock prior to the
receipt of the AMEX Approval and (ii) hereby waives any rights he may have to
participate in the transactions contemplated by the December
Agreements.

    

    [Signature Page
Follows]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, and intending to be legally bound hereby, each of the Parties
hereto executes this Agreement under seal as of the date first above
written.

     

    
      
        
          
            	
                    DIGITALFX INTERNATIONAL, INC.

                  
	 
      	 
      
	
                    By:

                  	
                    /s/
      Abraham Sofer

                  
	 
      	
                    
                      Abraham
      Sofer, President

                    

                  
	 
      	 
      
	
                    RICHARD
      KALL

                  
	 
      
	
                    /s/ Richard
Kall

                  

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
A

    

    Stock Purchase
Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
B

    

    Form of a Note and the New
Kall Note

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
C

    

    Securities
Schedule

    

    
      
        
          
            
              	 	
                      (1)

                    	 	 	 	
                      (2)

                    	 	 	 	
                      (3)

                    	 	 	 	
                      (4)

                    	 	 	 	
                      (5)

                    	 	 	 	
                      (6)

                    	 
	
                      Investor

                    	 	 	
                      Address
      and Facsimile

                       Number

                    	 	 	
                      Debt
      

                      Reduction
      

                      Cash
      Amount

                    	 	 	
                      Number
      of 

                      WoozyFly
      

                      Shares

                    	 	 	
                      Number
      of 

                      Common
      

                      Shares

                    	 	 	
                      Principal
      of 

                      New
      Notes

                    	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Portside
      Growth and

                       Opportunity
      Fund

                    	 	 	
                      c/o
      Ramius LLC

                      599 Lexington Ave., 20th 

                      Floor

                      New York, New York 10022

                      Attention: Jeffrey Smith

                                         Owen Littman

                      Facsimile:  (212) 201-4802

                                        (212) 845-7986

                      Telephone: (212) 845-7955

                                          (212) 201-4841

                       Residence: Cayman Islands

                    	 	 	$	464,285.71 	 	 	 	3,942,857
    	 	 	 	3,678,172
    	 	 	$	408,767.15
    	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Highbridge
      International 

                      LLC

                    	 	 	
                      c/o
      Highbridge Capital

                      Management,
      LLC

                      9
      West 57th St, 27th Floor

                      New
      York, NY 10019

                      Attn:
      Ari J. Storch /

                           
      Adam J. Chill

                      Tel:
      212-287-4720

                      Fax:
      212-751-0755

                      Residence:
      Cayman Islands

                    	 	 	$	139,285.71
    	 	 	 	1,182,857
    	 	 	 	1,103,451
    	 	 	$	122,630.15
    	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Iroquois
      Master 

                      Fund,
      Ltd.

                    	 	 	
                      641
      Lexington Avenue,

                      26th
      Floor

                      New
      York, New York 10022

                      Attention: Joshua
      Silverman

                      Facsimile: (212)
      207-3452

                      Telephone:
      (212) 974-3070

                      Residence: Cayman
      Islands

                    	 	 	$	46,428.58
    	 	 	 	394,286
    	 	 	 	367,817
    	 	 	$	40,876.72
    	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Total

                    	 	 	 	 	 	 	$	650,000.00
    	 	 	 	5,520,000
    	 	 	 	5,147,440
    	 	 	$	572,274.02

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00151-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00151-of-00352.parquet"}]]