Document:

Unassociated Document

    ASSET
      PURSCHASE AGREEMENT

    

    AGREEMENT
      dated as
      of August 22, 2006, by and between friendlyway Inc., a Nevada based publicly
      traded company with offices at 1255 Battery St. Suite 200, San Francisco, CA
      94111, hereinafter referred to as friendlyway and Ignition Media Group., Inc.,
      a
      Nevada based wholly owned subsidiary of friendlyway, with offices at 7222
      Commerce Center Drive, Suite 240, Colorado Springs, CO 80919 hereinafter
      referred to as “IMG” and collectively with friendlyway referred to as “Buyer”
and Ignition Media Group., LLC., with offices at 1760
      Market St., Philadelphia, PA 19103 hereinafter referred to as (“Seller”)

    

    Background

    

    Seller
      agrees, in principal, to sell to Buyer all of the assets of Seller set forth
      on
      Schedule A hereto (“Assets”).

    

    Therefore,
      for good and valuable consideration, the receipt and sufficiency of which are
      hereby acknowledged, the parties agree as follows, Seller desires to sell the
      Assets to Buyer and Buyer desires to purchase the Assets from Seller on the
      terms and conditions set forth below. 

    

    

    1. Purchase
      and Sale.
      

    

    (a)
      In
      consideration of Buyer’s payment of two million five hundred thousand dollars
      (US $2,500,000) (the “Purchase Price”), Seller hereby sells, assigns, transfers
      and delivers the Assets to Buyer. The Purchase Price shall be paid as follows:
      (i) cash in the amount of one million dollars ( US $1,000,000) to Seller, five
      hundred thousand dollars (US $500,000) of which shall be paid at the closing,
      and (ii) shares of friendlyway’s, common stock (having an agreed aggregate value
      of one million five hundred thousand dollars (US $1,500,000) (“Common Stock”).
      The number of shares to be issued shall be equal to dividing the agreed
      aggregate value above by the average closing bid price of the Buyer’s public
      stock during the ten days preceding closing. 

    

    (b) In
      connection with the sale of the Assets to Buyer, Seller shall execute and
      deliver to Buyer at Closing the bill of sale and the assignments of contracts
      and other assets attached hereto as Schedules A, B and C,
      respectively.

    

    (c)
      Buyer
      shall pay Seller a non-refundable deposit of twenty-five thousand dollars (US
      $25,000) at the execution of this agreement which shall be credited to the
      cash
      paid at closing. 

    

    (d)
      Seller shall pay Buyer twenty percent (20%) of the gross revenue generated
      from
      the operations of IMG commencing on the closing and ending on December 31,
      2006,
      hereinafter referred to as (“Revenue Payments”). The Revenue Payments shall
      automatically be paid to Seller as the revenue is collected by IMG on the first
      of each month.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (e) Seller
      shall pay Buyer an amount equal to five hundred thousand dollars (US $500,000)
      minus the amount of the Revenue Payments paid to Seller as defined in section
      1(d) hereinafter referred to as (“Primary Payment”). The Primary Payment shall
      me made on the first of the month and paid in increments of one hundred and
      fifty thousand dollars ($150,000) commencing on January 1, 2007.

    

    (d) On
      the
      one year anniversary of the closing of this Asset Purchase if the average
      closing bid price for the ten days preceding the anniversary date is lower
      than
      the average closing bid price defined in Par 1(a) above then the Seller will
      be
      entitle to an increase adjustment to the number of shares issued according
      to
      the following formula:

    

    (1,000,000
      / “x”) - (1,000,000 / “y”)

    

    where
      

    

    x:
      the
      average closing bid price for the ten days preceding the one year anniversary
      of
      the closing of this transaction

    

    y:
      the
      average closing bid price for the ten days preceding the closing of this
      transaction 

    

    2. Liabilities. 
      Buyer is
      not assuming any existing, contingent or future liability of Seller (the
“Excluded Liabilities”). Without limitations, the Excluded Liabilities
      include:

    

    (i) any
      liability for taxes of Seller;

    

    
      	 	 	
              (ii)

            	
              any
                obligations of Seller in respect of the assets of Seller not included
                in
                the Assets acquired hereunder; 

            

      	 	 	 	 

      	 	 	(iii)  	any liability of Seller pursuant to any employee
              benefit
              plan; 

    

    

    
      	 	 	
              (iv)

            	
              any
                liabilities or obligations of Seller to affiliates of
                Seller;

            

    

    

    
      	 	 	
              (v)

            	
              all
                claims, liabilities, or obligations of Seller as an employer, including,
                without limitation, liabilities for wages, supplemental unemployment
                benefits, vacation benefits, severance benefits, retirement benefits,
                Federal Consolidated Omnibus Budget Reconciliation Act of 1985 benefits,
                Federal Family and Medical Leave Act of 1993 benefits, Federal Workers
                Adjustment and Retraining Notification Act obligations and liabilities,
                or
                any other employee benefits, withholding tax liabilities, workers’
                compensation, or unemployment compensation benefits or premiums,
                hospitalization or medical claims, occupational disease or disability
                claims, or other claims attributable in whole or in part to employment
                or
                termination by Seller or arising out of any labor matter involving
                Seller
                as an employer, and any claims, liabilities and obligations arising
                from
                or relating to any employee benefit
                plans;

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	 	
              (vi)

            	
              all
                claims, liabilities, losses, damages, or expenses relating to any
                litigation, proceeding, or investigation of any nature arising out
                of the
                Business or ownership of the Assets on or prior to the Closing Date
                including, without limitation, any claims against or any liabilities
                for
                injury to, or death of, persons or damage to or destruction of property,
                any workers’ compensation claims, and any warranty
                claims;

            

    

     

    
      	 	 	
              (vii)

            	
              except
                as may otherwise be provided herein, any accounts payable, other
                indebtedness, obligations or accrued liabilities of Seller;
                and

            

    

    

    3.
      Remedies.
      In the
      event Buyer is unable to make Primary Payment to Seller, Seller shall be
      entitled to thirty percent of the gross revenue derived from the operation
      of
      IMG, hereinafter referred to as Secondary Payments. Secondary Payments shall
      me
      made to seller on the first of each month. Buyer shall no longer receive
      Secondary Payments when the sum of the Revenue Payments, Primary Payment, and
      Secondary Payments is equal to five hundred thousand dollars (US $500,000).
      

    

    4. Representations
      and Warranties of Seller.
      Seller
      hereby represents and warrants to Buyer as follows:

    

    	(a)  	
            As
              of the Closing, Seller is a limited liability company duly organized
              and
              validly existing under the laws of the State of Pennsylvania; Seller
              has
              full power and authority to execute and deliver this Agreement and
              all
              other agreements to be executed and delivered by Seller hereunder or
              in
              connection herewith (the “Ancillary Agreements”) and to consummate the
              transactions hereby or thereby contemplated; all necessary corporate
              action has been taken to authorize Seller to enter into this Agreement
              and
              the Ancillary Agreements;

          

    

    	(b)  	
            This
              Agreement and the Ancillary Agreements have been duly executed and
              delivered by Seller and each such agreement constitutes the legal,
              valid
              and binding obligations of Seller enforceable against it in accordance
              with its terms, except as enforceability may be limited by bankruptcy,
              insolvency or other laws for the protection of
              debtors;

          

    

    	(c)  	
            Neither
              the execution, delivery or performance of this Agreement, the Ancillary
              Agreements, nor the transactions contemplated hereby or thereby will
              violate Seller’s operating agreement or any other agreements or
              instruments, law, regulation, judgment or order by which Seller is
              bound;

          

    

    	(d)  	
            At
              the Closing, Seller will transfer to the Buyer good and valid title
              to all
              the Assets, free and clear of all liens, claims or other
              encumbrances.

          

    

    
      	 	
              (e)  
                

            	
              Consents.
                No consent, authorization, approval, order, license, certificate
                or permit
                of or from, or declaration or filing with, any federal, state, local
                or
                other governmental authority or any court or other tribunal, and
                no
                consent or waiver of any party to any contract to which Seller is
                a party
                is required or declaration to or filing with any governmental or
                regulatory authority, or any other third party is required to: (i)
                execute
                this Agreement or any Ancillary Agreement, (ii) consummate this Agreement
                or any Ancillary Agreement and the transactions contemplated hereby
                or
                thereby, or (iii) permit Seller to assign or transfer the Assets
                (including without limitation, the Material Contracts) to Buyer.
                

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	 	
              (f)  
                

            	
              Litigation.
                There are no actions, suits, proceedings, orders or claims pending
                or
                threatened against Seller,
                or pending or threatened by Seller against any third party, at law
                or in
                equity, or before or by any governmental department, commission,
                board,
                bureau, agency or instrumentality which relate to, or in any way
                affect,
                the Business or the Assets (including, without limitation, any actions,
                suits, proceedings or investigations with respect to the transactions
                contemplated by this Agreement or any Ancillary Agreement). Seller
                is not
                subject to any judgment, order or decree of any court or other
                governmental agency, and Seller has received no written opinion or
                memorandum from legal counsel to the effect that it is exposed, from
                a
                legal standpoint, to any liability which relates to the Business
                or the
                Assets.

            

    

     

    
      	 	
              (g)  
                

            	
              Intellectual
                Property.
                The Seller does not use any third party patent, trademark, copyright,
                trade secrets or other intellectual or industrial property rights,
                other
                than non-exclusively licensed use of commercially available software,
                in
                the Business. 

            

    

    

    
      	 	
              (h)  
                

            	
              Material
                Contracts.
                Each Material Contract is valid and binding on and enforceable against
                Seller and, to the knowledge of Seller, each other party thereto
                and is in
                full force and effect. Seller is not in breach or default under any
                Material Contract. Seller does not know of, and has not received
                notice
                of, any violation or default under (nor, to the knowledge of Seller,
                does
                there exist any condition which with the passage of time or the giving
                of
                notice or both would result in such a violation or default under)
                any
                Material Contract by any other party thereto. Prior to the date hereof,
                Seller has made available to Buyer true and complete copies of all
                Material Contracts. 

            

    

    

    5. Representations
      and Warranties of Buyer.
      Buyer
      represents and warrants to Seller as follows:

    

    
      	 	
              (a)  
                

            	
              Buyer
                is a corporation duly organized and validly existing under the laws
                of the
                State of Nevada; Buyer has full power and authority to execute and
                deliver
                this Agreement and all other agreements to be executed and delivered
                by
                Buyer hereunder or in connection herewith the “Ancillary Agreements” and
                to consummate the transactions hereby or thereby contemplated; all
                necessary corporate action has been taken to authorize Buyer to enter
                into
                this Agreement and the Ancillary
                Agreements;

            

    

    

    
      	 	
              (b)  
                

            	
              This
                Agreement and the Ancillary Agreements have been duly executed and
                delivered by Buyer and each such agreement constitutes the legal,
                valid
                and binding obligations of Buyer enforceable against it in accordance
                with
                its terms, except as enforceability may be limited by bankruptcy,
                insolvency or other laws for the protection of
                debtors;

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	 	
              (c)  
                

            	
              Neither
                the execution, delivery or performance of this Agreement, the Ancillary
                Agreements, nor the transactions contemplated hereby or thereby will
                violate Buyer’s Articles of Incorporation or by-laws or any other
                agreements or instruments, law, regulation, judgment or order by
                which
                Buyer is bound;

            

    

    

    6.
      Closing.
      Provided that all consents set forth in Section 3 have been obtained or waived
      by the Buyer, the closing of the transactions contemplated hereby (the
“Closing”) shall occur on or before July 31, 2006 at 3:00 PM. If closing does
      not occur by the time and date noted above, friendlyway shall pay the Seller
      an
      additional $50,000 in full satisfaction of any damages realized or not realized
      by the failure for the Buyer to close. Unless both parties agree in writing,
      this agreement shall not survive past July 31, 2006 and shall become null and
      void without recourse (except as noted herein). If the parties agree to extend
      the closing date, then all funds advanced to the Seller shall be credited to
      the
      cash component of the purchase. 

    

    7.
      Accounts Payable and Accounts Receivable.
      (a) It
      is the intention of the parties that all rights to and the benefit of the
      accounts receivable from the Business shall be included in the Assets
      transferred by Seller to Buyer. Accordingly, all accounts receivable outstanding
      on the Closing Date shall be collected by Buyer. At Closing, Seller shall
      deliver to Buyer a complete statement of each account receivable as of the
      Closing Date. Seller agrees to cooperate with Buyer to effect the purpose and
      intent of this Section 6, including, but not limited to, immediately turning
      over to Buyer any and all such accounts receivable which are received or
      collected by Seller. 

    

    8.
      Indemnification by Seller.
      Seller
      agrees to indemnify, defend and hold Buyer and its affiliates harmless from
      and
      against any and all losses, liabilities, obligations, suits, proceedings,
      demands, judgments, damages, claims, expenses and costs, including, without
      limitation, reasonable fees, expenses and disbursements of counsel
      (collectively, “Damages”), which any of them may suffer, incur or pay in
      connection with (i) any breach of a representation or warranty made by Seller,
      (ii) any liability accruing prior to the Closing Date incurred in connection
      with the Business or Assets other than those constituting Assumed Liabilities,
      (iii) the non-fulfillment by Seller of any covenant contained herein or in
      the
      Ancillary Agreements or (iv) any Excluded Liabilities. 

    

    9. Indemnification
      by Buyer.
      Buyer
      agrees to indemnify defend and hold Seller and its affiliates harmless from
      and
      against any and all Damages which any of them may suffer, incur or pay in
      connection with (i) any breach of a representation or warranty made by Buyer
      herein, (ii) any liability arising under or in connection with the use and/or
      ownership of the Assets arising on or after the Closing Date, (iii) the
      non-fulfillment by Buyer of any covenant contained herein or in the Ancillary
      Agreements or (iv) any Assumed Liabilities.

    

    10.
      Survival.
      The
      representations, warranties, indemnification, covenants and agreements of Seller
      and Buyer contained in this Agreement shall survive the execution and delivery
      hereof for a period of three years.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    11.
      Severability.
      If any
      provision of this Agreement is determined to be invalid, illegal or incapable
      of
      being enforced by reason of any rule of law or public policy, all other
      provisions of this agreement shall remain in full force and effect.

    

    12.
      No Waiver.
      No
      waiver by any party of any breach or nonperformance of any provision or
      obligation of this Agreement shall be deemed to be a waiver of any preceding
      or
      succeeding breach of the same or any provision of this agreement.

    

    13.
      Entire Agreement.
      This
      Agreement is the entire agreement of the parties with respect to the subject
      matter hereof, supersedes all prior agreements and understandings, oral and/or
      written, relating to the subject matter hereof, and may not be amended,
      supplemented, or modified, except by written instrument executed by all parties
      hereto. This Agreement shall be binding upon and inure to the benefit of the
      parties hereto, their successors and permitted assigns. Where the context so
      requires, the singular shall include the plural and vice versa.

    

    14.
      Execution in Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      constitute an original and all of which shall constitute one and the same
      document.

    

    15.
      Governing Law; Counsel.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Nevada, without giving effect to conflict of laws principles. The
      parties acknowledge that they have each had an opportunity to be represented
      by
      legal counsel of their choice and that they enter into this Agreement and the
      transactions contemplated hereby freely and voluntarily with full knowledge
      and
      understanding of its contents.

    

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this Agreement as of the date first written
      above.

     

    
 

    
      	Ignition Media Group, LLC 	 	Friendlyway Corporation 
	 	 	 
	By: /s/ Thaddeus Bartkowski 	 	By:
              /s/ Ken Upcraft 
	Name: Tahddeus
              Bartkowski 	 	Name: Kenneth Upcraft 
	Title: 	 	Title: Chief Executive
              Officer 
	 	 	 
	 	 	Ignition Media Group, Inc 
	 	 	 
	 	 	By: /s/ Thaddeus
              Bartkowski 
	 	 	Name: Thaddeus Bartkowski 
	 	 	Title:
              President 

    

        

       

    

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    SCHEDULE
      A

    ASSETS
      TO BE TRANSFERRED

    

    The
      following should be attached:

    	1.  	
            Ignition
              Media Group Agreements with Save Mart, Ingles, and Brookshire Grocery
              Company. 

          

    	2.  	
            The
              spreadsheet which list’s the hardware that is installed in each
              Supermarket and the corresponding address
              location

          

     

    

     

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    SCHEDULE
      B

    

    ASSUMED
      LIABILITIES

    

     The
      following should be attached:

    Attach
      loan documents relating to Existing Equipment currently installed in the
      Supermarkets

     

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    SCHEDULE
      C

     

    ASSIGNMENT
      AND ASSUMPTION AGREEMENT

     

    THIS
      ASSIGNMENT AND ASSUMPTION AGREEMENT (this
      “Agreement”) is
      made
      and entered into this August 22, 2006 by and among Ignition Media Group, LLC,
      a
      Pennsylvania limited liability company (“Assignor”)
      and
      Ignition Media Group, Inc, a Nevada based corporation (“Assignee”).
      Capitalized terms used but not defined herein shall have the meanings ascribed
      to such terms in the Purchase Agreement (as hereinafter defined).

     

    WHEREAS,
      Assignor and Assignee entered into that certain Asset Purchase Agreement dated
      as of August 22, 2006 (the “Purchase
      Agreement”),
      the
      terms of which are incorporated herein by reference, which provides, among
      other
      things, for the sale by Assignor to Assignee of certain assets, property and
      rights, tangible and intangible, of Assignor used or useful in the Business
      (as
      defined in the Purchase Agreement); and

     

    WHEREAS,
      pursuant to the Purchase Agreement, Assignor desires to transfer to Assignee,
      and Assignee desires to assume, all of Assignor’s right, title and interest in
      and to all Material Contracts (collectively, the “Assumed
      Contracts”).

     

    NOW,
      THEREFORE, in
      consideration of
      the
      mutual promises contained in the Purchase Agreement, and for other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged by Assignor, and subject to the terms and conditions of the
      Purchase Agreement:

     

    1. Assignment
      and Assumption.
      Assignor hereby assigns, transfers and conveys to Assignee all of Assignor’s
      right, title and interest in and to the Assumed Material Contracts the
Assumed
      Contracts, and Assignee hereby assumes and agrees to perform any and all
      obligations and liabilities of Assignor under the Assumed Contracts
      arising
      after the Closing (as defined in the Purchase Agreement). Without limiting
      the
      foregoing, Assignor shall remain liable for all Excluded Liabilities (as defined
      in the Purchase Agreement), and all obligations and liabilities under the
      Assumed Contracts which arose or are incurred prior to Closing.

    

    2. Successors.
      All of
      the covenants, terms and conditions set forth herein shall be binding upon,
      and
      shall inure to the benefit of, the parties hereto and their respective heirs,
      successors and assigns.

     

    3. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Nevada, without giving effect to conflict of laws principles. The
      parties hereby consent to the jurisdiction of the courts of the State of Nevada
      and shall be subject to service of process in the State of Nevada with respect
      to any disputes arising, directly or indirectly, out of this
      Agreement.

     

    4. Counterparts.
      This
      Agreement may be executed in one or more counterparts, all of which together
      shall for all purposes constitute one and the same instrument.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    5. Further
      Assurances.
      From
      time to time after the date hereof, without further consideration, Assignor
      shall execute and deliver such other instruments of assignment, transfer and
      conveyance and shall take such other action as Assignee may reasonably request
      to more effectively assign, transfer and convey to Assignee, all of Assignor’s
      right, title and interest in and to any of the Assumed Contracts, or to enable
      it to exercise and enjoy all rights and benefits of Assignor with respect
      thereto.

     

    [remainder
      of page left intentionally blank; signature page follows]

     

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    WITNESS
      WHEREOF,
      and
      intending to be legally bound hereby, each of Assignor and Assignee has caused
      this Agreement to be executed and delivered by its duly authorized
      representative as of the day and year first above written.

     

     

    
      	ASSIGNOR	 	ASSIGNEE 
	 	 	 
	Ignition Media Group, LLC 	 	Friendlyway Corporation 
	 	 	 
	By: /s/ Thaddeus Bartkowski 	 	By: /s/ Ken Upcraft 
	Name: 
              Tahddeus Bartkowski 	 	Name: Kenneth Upcraft 
	Title: 	 	Title:
              Chief Executive Officer
	 	 	 
	 	 	Ignition Media Group, Inc 
	 	 	 
	 	 	By: /s/ Thaddeus
              Bartkowski 
	 	 	Name: Thaddeus Bartkowski 
	 	 	Title:
              President

    

      

    

        

     

    
      
         

      

      
        12Unassociated Document

     

    ADDENDUM
      TO AGREEMENT

    

    This
      Addendum is made and entered into this 1st
      day of
      August, 2006, by and between Pantel Systems Inc., a.k.a friendlyway Inc., a
      Nevada based publicly traded company with offices at 7222 Commerce Center Drive,
      Suite 240, Colorado Springs, CO 80919, hereinafter referred to as (“PSI”), and
      Ignition Media Group., Inc., a Nevada based wholly owned subsidiary of PSI
      ,
      with offices at 7222 Commerce Center Drive, Suite 240, Colorado Springs, CO
      80919, hereinafter referred to as (“IMG”) and collectively with PSI referred to
      as (“Buyer”) and Ignition Media Group., LLC., with offices at 307 Clairemont Rd.
      Villanova PA 19085 hereinafter referred to as (“Seller”). The parties having
      executed an Asset Purchase Agreement on May 18, 2006, hereinafter referred
      to as
      (“APA”) having verbally agreed to amend, extend, and supplement the APA on July
      28, 2006 enter into this written Addendum to amend, extend, and supplement
      the
      APA which, in the event of inconsistency with the APA this Addendum will
      control, as follows:

    

    l.
      References:
      Buyer
      and Seller incorporate any and all references to the APA as if stated herein
      at
      length.

    

    2.
      Pursuant
      to Section 6. of the APA, Closing:
      The
      closing of the transactions contemplated hereby (the “Closing”) shall occur on
      August 15, 2006. The fifty thousand dollar ($50,000) payment shall be paid
      to
      Seller by Buyer on or before August 3, 2006 and shall be credited to the
      Purchase Price as defined in Section 3. 

    

    3.
      Pursuant
      to Section 1. of the APA, Purchase and Sale:
      

    

    (a)
       In
      consideration of Buyer’s payment of two million five hundred thousand dollars
      (US $2,500,000) (the “Purchase Price”), Seller hereby sells, assigns, transfers
      and delivers the Assets to Buyer. The Purchase Price shall be paid as follows:
      (i) cash in the amount of one million dollars (US $1,000,000) which shall be
      paid by Buyer to Seller, which shall be documented in the form of a Promissory
      Note which Buyer and Seller shall execute at Closing consistent with the
      following structure: 

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    Buyer
      shall make the following payments on the following dates to Seller, timeliness
      of the essence:

    

    
      	
              Payment
                Due Date from Buyer to Seller

            	 	
              Installment
                Payment of 
Purchase Price (USD)

            
	
              August
                15, 2006

            	 	
              75,000.00

            
	
              September
                15, 2006

            	 	
              75,000.00

            
	
              October
                15, 2006

            	 	
              75,000.00

            
	
              November
                15, 2006

            	 	
              90,000.00

            
	
              December
                15, 2006

            	 	
              90,000.00

            
	
              January
                15, 2007

            	 	
              90,000.00

            
	
              February
                15, 2007

            	 	
              90,000.00

            
	
              March
                15, 2007

            	 	
              90,000.00

            
	
              April
                15, 2007

            	 	
              90,000.00

            
	
              May
                15, 2007

            	 	
              90,000.00

            
	
              June
                15, 2007

            	 	
              35,000.00

            
	
              July
                15, 2007

            	 	
              35,000.00

            

    

     

    and
      (ii)
      shares of PSI’s common stock having an agreed aggregate value of one million
      five hundred thousand dollars (US $1,500,000) hereinafter referred to as
      (“Common Stock”). The number of shares to be issued shall be equal to dividing
      one million five hundred thousand dollars (US $1,500,000) by the average closing
      bid price of the Buyer’s public stock during the ten days preceding Closing.

    

    4.
      In
      Addition to and Pursuant
      to Section 3. of the APA, Remedies:
      

    

    (b)
      In
      the event Buyer defaults in making any Installment Payments of the Purchase
      Price to Seller on the due date as outlined in the APA and this Addendum Buyer
      shall be in default of the APA. Upon receipt of written notice from Seller,
      Buyer shall have fifteen days (15) to remedy the default by providing Seller
      with that installment payment that is past due. In the event Buyer does not
      remedy such default within the fifteen day (15) period, Seller at Seller’s sole
      discretion may provide written notification, hereinafter referred to as
      (“Re-Assignment Notification”) to Buyer requiring Buyer to assign ownership of
      the Agreements Buyer has with Brookshire Grocery Company Inc., Ingles Markets
      Inc., and Save Mart Supermarkets Inc. hereinafter collectively referred to
      as
      (“Retail Agreements”), in addition to any digital signage equipment owned by
      Buyer that is installed in any retail locations which are owned, operated,
      or
      managed by Brookshire Grocery Company Inc., Ingles Markets Inc., and or Save
      Mart Supermarkets Inc., hereinafter collectively referred to as (“Retail
      Partners”). Upon receipt of Re-Assignment Notification Buyer shall immediately
      thereupon assign clear title to the Retail Agreements, additionally Seller
      shall
      be responsible for any outstanding lease payments held by Buyer related to
      any
      digital signage equipment installed in retail locations owned, operated, or
      managed by the Retail Partners. In the event Buyer has fulfilled lease payments
      for digital signage Equipment installed in retail locations owned, operated,
      or
      managed by the Retail Partners, wherein the value of the lease payments that
      Buyer has made plus the amount of the Promissory Note which Buyer has paid
      to
      Seller exceeds the total value of the Promissory Note hereinafter referred
      to as
      (“Excess Lease Value”), Seller shall be obligated to repay Buyer the Excess
      Lease Value. In the event Buyer has purchased digital signage equipment
      installed in retail locations owned, operated, or managed by the Retail
      Partners, wherein the purchase price of the digital signage equipment plus
      the
      amount of the Promissory Note which Buyer has paid to Seller exceeds the total
      value of the Promissory Note, hereinafter referred to as (“Excess Purchase
      Value”), Seller shall be obligated to repay Buyer the Excess Purchase Value. The
      rate at which Seller shall pay Buyer both Excess Purchase Value and Excess
      Lease
      Value shall be calculated by adding the Excess Lease Value and the Excess
      Purchase Value, dividing it by the number of locations owned, operated, or
      managed by the Retail Partners wherein digital signage Equipment is installed
      and dividing it by twenty-four equal payments (24) to be paid by Seller to
      Buyer
      on the first of each month commencing thirty days (30) after the date of
      default. In exercising the aforementioned remedies, the Seller in no way becomes
      obligated to refund any part of the Purchase Price which has been previously
      been paid.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    5.
      Deployment:
      Consistent with the Sellers representations made to the Retail Partners at
      the
      request of Buyer, Buyer agrees to procure the necessary Equipment to deploy
      the
      following locations in the time period specified below:

    

    
      	
              Deployment,
                Number of locations, by Retail Partner

            
	
               

            	
              Brookshire
                Grocery 
Company Inc. 

            	
              Ingles
                
Markets Inc.

            	
              Save
                Mart 
Supermarkets Inc.

            
	
              September
                1, 2006

            	
              30

            	
              20

            	
              25

            
	
              October
                1, 2006

            	
              50

            	
               

            	
              25

            
	
              November
                1, 2006

            	
              78

            	
               

            	
              12

            
	
              December
                1, 2006

            	
               

            	
              40

            	
               

            
	
              January
                1, 2007

            	
               

            	
              40

            	
               

            
	
              February
                1, 2007

            	
               

            	
              40

            	
               

            
	
              March
                1, 2007

            	
               

            	
              40

            	
               

            

    

    

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Addendum to be executed by their respective
      duly
      authorized officers or representatives as of the last date set forth
      below.

    

    
      	Ignition Media Group,
              LLC	 	Pantel Systems, Inc
              
	 	 	 
	By: /s/
              Thaddeus Bartkowski 	 	By:  /s/
              Ken Upcraft 
	Name: Thaddeus Bartkowski 	 	Name: Ken Upcraft 
	Title: President Title:
              Chief Executive Officer 	 	 
	 	 	Ignition Media Group,
              Inc 
	 	 	 
	 	 	By: /s/ Thaddeus
              Bartkowski 
	 	 	Name: Thaddeus Bartkowski 
	 	 	Title:
              President

    

      

    

    

         

    
      
         

      

      
        3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]