Link Exchange makes it easier to exchange links with other sites by avoiding you the whole contact-wait-contract-wait-agree-post link process.
Who wants to exchange link with you has to submit a form and you are then notified. You can review their proposal and accept it or reject it.
All you have to do is to send your link exchange form page to other webmasters if you are the one contacting them.
Once you approve a request, that site will be automatically posted on your site.
Use the shortcode [link-exchange-form] where you want to show the request form.
Use the shortcode [link-exchange-list] where you want to show the list of approved links.