Document:

STOCK
      PLEDGE AGREEMENT

     

    This
      Stock Pledge Agreement (this "Agreement"), dated as of July 19, 2006, among
      Atlantic Professional Association, Inc., as agent (the “Agent”) of the
      purchasers listed on Schedule A annexed hereto (the “Purchasers”), friendlyway
      Corporation, a Nevada corporation (the "Company"), and Kenneth Upcraft (the
      "Pledgor").

     

    BACKGROUND

     

    The
      Company has entered into a Securities Purchase Agreement, dated as of June
      14,
      2006 (as amended, modified, restated or supplemented from time to time, the
      "Securities Purchase Agreement"), pursuant to which the Purchasers provided
      or
      will provide certain financial accommodations to the Company.

     

    In
      order
      to induce the Purchasers to provide the financial accommodations described
      in
      the Securities Purchase Agreement, the Pledgor, who expressly acknowledges
      good
      and valuable consideration based on his financial interest in the Company and
      the benefits that are derived from the SPA, has agreed to pledge and grant
      a
      security interest in the collateral described herein to the Agent on the terms
      and conditions set forth herein.

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and for other good and valuable consideration
      the
      receipt of which is hereby acknowledged, the parties hereto agree as
      follows:

     

    1.
       Defined
      Terms.
      All
      capitalized terms used herein which are not defined shall have the meanings
      given to them in the Securities Purchase Agreement.

     

    2.
       Pledge
      and Grant of Security Interest.
      To
      secure the full and punctual payment and performance of (the following clauses
      (a) and (b), collectively, the "Indebtedness") (a) the obligations under the
      Securities Purchase Agreement and the Related Agreements referred to in the
      Securities Purchase Agreement (the Securities Purchase Agreement and the Related
      Agreements, as each may be amended, restated, modified and/or supplemented
      from
      time to time, collectively, the "Documents") and (b) all other indebtedness,
      obligations and liabilities of the Pledgor to the Purchasers whether now
      existing or hereafter arising, direct or indirect, liquidated or unliquidated,
      absolute or contingent, due or not due and whether under, pursuant to or
      evidenced by a note, agreement, guaranty, instrument or otherwise (in each
      case,
      irrespective of the genuineness, validity, regularity or enforceability of
      such
      Indebtedness, or of any instrument evidencing any of the Indebtedness or of
      any
      collateral therefor or of the existence or extent of such collateral, and
      irrespective of the allowability, allowance or disallowance of any or all of
      such Indebtedness in any case commenced by or against the Pledgor under Title
      11, United States Code, including, without limitation, obligations or
      indebtedness of the Pledgor for post-petition interest, fees, costs and charges
      that would have accrued or been added to the Indebtedness but for the
      commencement of such case), the Pledgor hereby pledges, assigns, hypothecates,
      transfers and grants a security interest to Agent in all of the following (the
      "Collateral"):

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (a)
       the
      shares of stock set forth on Schedule
      A
      annexed
      hereto and expressly made a part hereof (together with any additional shares
      of
      stock or other equity interests acquired by the Pledgor, the "Pledged Stock"),
      the certificates representing the Pledged Stock and all dividends, cash,
      instruments and other property or proceeds from time to time received,
      receivable or otherwise distributed in respect of or in exchange for any or
      all
      of the Pledged Stock;

     

    (b)
       all
      additional shares of stock of any issuer (each, an "Issuer") of the Pledged
      Stock from time to time acquired by Pledgor in any manner, including, without
      limitation, stock dividends or a distribution in connection with any increase
      or
      reduction of capital, reclassification, merger, consolidation, sale of assets,
      combination of shares, stock split, spin-off or split-off (which shares shall
      be
      deemed to be part of the Collateral), and the certificates representing such
      additional shares, and all dividends, cash, instruments and other property
      or
      proceeds from time to time received, receivable or otherwise distributed in
      respect of or in exchange for any or all of such shares; and

     

    (c)
       all
      options and rights, whether as an addition to, in substitution of or in exchange
      for any shares of any Pledged Stock and all dividends, cash, instruments and
      other property or proceeds from time to time received, receivable or otherwise
      distributed in respect of or in exchange for any or all such options and
      rights.

     

    3.
       Delivery
      of Collateral.
      All
      certificates representing or evidencing the Pledged Stock shall be delivered
      to
      and held by or on behalf of the Agent pursuant hereto and shall be accompanied
      by duly executed instruments of transfer or assignment in blank, all in form
      and
      substance satisfactory to the Agent. The Pledgor hereby authorizes the Issuer
      upon demand by the Agent to deliver any certificates, instruments or other
      distributions issued in connection with the Collateral directly to the Agent,
      in
      each case to be held by the Agent, subject to the terms hereof. Upon an Event
      of
      Default (as defined below) under the Note that has occurred and is continuing
      beyond any applicable grace period, the Agent shall have the right, during
      such
      time in its discretion and without notice to the Pledgor, to transfer to or
      to
      register in the name of the Agent or any of its nominees any or all of the
      Pledged Stock. In addition, the Agent shall have the right at such time to
      exchange certificates or instruments representing or evidencing Pledged Stock
      for certificates or instruments of smaller or larger denominations.

     

    4.
       Representations
      and Warranties of the Company and Pledgor.
      The
      Company and Pledgor each, severally and not jointly, represents and warrants
      to
      the Agent (which representations and warranties shall be deemed to continue
      to
      be made until all of the Indebtedness has been paid in full and each Document
      and each agreement and instrument entered into in connection therewith has
      been
      irrevocably terminated) that:

     

    (a)
       the
      execution, delivery and performance by Company and Pledgor of this Agreement
      and
      the pledge of the Collateral hereunder do not and will not result in any
      material violation of any material agreement, indenture, instrument, license,
      judgment, decree, order, law, statute, ordinance or other governmental rule
      or
      regulation applicable to the Company or Pledgor;

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      (b)
         this
        Agreement constitutes the legal, valid, and binding obligation of the Company
        and Pledgor, enforceable against them in accordance with its terms;

       

    

    (c)
       (i)
      all
      Pledged Stock owned by Pledgor is set forth on Schedule
      A
      hereto
      and (ii) Pledgor is the direct and beneficial owner of each share of the Pledged
      Stock set forth opposite his name;

     

    (d)
       all
      of
      the shares of the Pledged Stock have been duly authorized, validly issued and
      are fully paid and nonassessable;

     

    (e)
       no
      consent or approval of any person, corporation, governmental body, regulatory
      authority or other entity, is or will be necessary for (i) the execution,
      delivery and performance of this Agreement, (ii) the exercise by the Agent
      of
      any rights with respect to the Collateral or (iii) the pledge and assignment
      of,
      and the grant of a security interest in, the Collateral hereunder;

     

    (f)
       there
      are
      no pending or, to the best of the Company’s or Pledgor's knowledge, threatened
      actions or proceedings before any court, judicial body, administrative agency
      or
      arbitrator which may materially adversely affect the Collateral;

     

    (g)
       Pledgor
      has the requisite power and authority to enter into this Agreement and to pledge
      and assign the Collateral to the Agent in accordance with the terms of this
      Agreement;

     

    (h)
       Pledgor
      owns each item of the Collateral and, except for the pledge and security
      interest granted to the Agent hereunder, the Collateral shall be, immediately
      following the closing of the transactions contemplated by the Documents, free
      and clear of any other security interest, pledge, claim, lien, charge,
      hypothecation, assignment, offset or encumbrance whatsoever (collectively,
      "Liens");

     

    (i)
       there
      are
      no restrictions on transfer of the Pledged Stock contained in the certificate
      of
      incorporation or by-laws (or equivalent organizational documents) of the Issuer
      or otherwise which have not otherwise been enforceably and legally waived by
      the
      necessary parties;

     

    (j)
       none
      of
      the Pledged Stock has been issued or transferred in violation of the securities
      registration, securities disclosure or similar laws of any jurisdiction to
      which
      such issuance or transfer may be subject; and

     

    (k)
       the
      pledge and assignment of the Collateral and the grant of a security interest
      under this Agreement vest in the Agent all rights of Pledgor in the Collateral
      as contemplated by this Agreement.

     

    5.
       Covenants.
      Pledgor
      covenants that, until the Indebtedness shall be satisfied in full and each
      Document and each agreement and instrument entered into in connection therewith
      is irrevocably terminated:

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (a)
       Pledgor
      will not sell, assign, transfer, convey, or otherwise dispose of his rights
      in
      or to the Collateral or any interest therein; nor will Pledgor create, incur
      or
      permit to exist any Lien whatsoever with respect to any of the Collateral or
      the
      proceeds thereof other than that created hereby; 

     

    (b)
       Pledgor
      will, at his expense, defend the Agent's right, title and security interest
      in
      and to the Collateral against the claims of any other party; and

     

    (c)
       Pledgor
      shall at any time, and from time to time, upon the written request of the Agent,
      execute and deliver such further documents and do such further acts and things
      as the Agent may reasonably request in order to effect the purposes of this
      Agreement including, but without limitation, delivering to the Agent upon the
      occurrence of an Event of Default irrevocable proxies in respect of the
      Collateral in form satisfactory to the Agent. Until receipt thereof, upon an
      Event of Default that has occurred and is continuing beyond any applicable
      grace
      period, this Agreement shall constitute Pledgor's proxy to the Agent or its
      nominees to vote all shares of Collateral then registered in such Pledgor's
      name.

     

    6. Voting
      Rights and Dividends.
      In
      addition to the Agent's rights and remedies set forth in Section 8 hereof,
      in
      case an Event of Default shall have occurred and be continuing, beyond any
      applicable cure period, the Agent shall (i) be entitled to vote the Collateral,
      (ii) be entitled to give consents, waivers and ratifications in respect of
      the
      Collateral (Pledgor hereby irrevocably constituting and appointing the Agent,
      with full power of substitution, the proxy and attorney-in-fact of Pledgor
      for
      such purposes) and (iii) be entitled to collect and receive for its own use
      cash
      dividends paid on the Collateral. Pledgor shall not be permitted to exercise
      or
      refrain from exercising any voting rights or other powers if, in the reasonable
      judgment of the Agent, such action would have a material adverse effect on
      the
      value of the Collateral or any part thereof; and, provided, further, that
      Pledgor shall give at least five (5) days' written notice of the manner in
      which
      Pledgor intends to exercise, or the reasons for refraining from exercising,
      any
      voting rights or other powers other than with respect to any election of
      directors and voting with respect to any incidental matters. Following the
      occurrence of an Event of Default, all dividends and all other distributions
      in
      respect of any of the Collateral, shall be delivered to the Agent to hold as
      Collateral and shall, if received by Pledgor, be received in trust for the
      benefit of the Agent, be segregated from the other property or funds of Pledgor,
      and be forthwith delivered to the Agent as Collateral in the same form as so
      received (with any necessary endorsement).

     

    7.
       Event
      of Default.
      An Event
      of Default shall be deemed to have occurred and may be declared by the Agent
      upon the happening of any of the following events:

     

    (a)
      An
      "Event of Default" under any Document or any agreement or note related to any
      Document shall have occurred and be continuing beyond any applicable cure
      period;

     

    (b)
      Pledgor shall default in the performance of any of his obligations under any
      agreement between Pledgor and the Agent, including, without limitation, this
      Agreement, and such default shall not be cured for a period of forty-five (45)
      days after the occurrence thereof;

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

       (c)
      Any
      representation or warranty of Pledgor made herein, in any Document or in any
      agreement, statement or certificate given in writing pursuant hereto or thereto
      or in connection herewith or therewith shall be false or misleading in any
      material respect;

     

    (d)
      Any
      portion of the Collateral is subjected to levy of execution, attachment, or
      other judicial process; or any portion of the Collateral is the subject of
      a
      claim (other than by the Agent) of a Lien or other right or interest in or
      to
      the Collateral and such levy or claim shall not be cured, disputed or stayed
      within a period of fifteen (15) business days after the occurrence thereof;
      or

     

    (e)
      Pledgor shall (i) not apply for consent to, or suffer to exist the appointment
      of, or the taking of possession by, a receiver, custodian, trustee, liquidator
      or other fiduciary of itself or of all or a substantial part of its property,
      (ii) make a general assignment for the benefit of creditors, (iii) commence
      a
      voluntary case under any state or federal bankruptcy laws (as now or hereafter
      in effect), (iv) be adjudicated a bankrupt or insolvent, (v) file a petition
      seeking to take advantage of any other law providing for the relief of debtors,
      (vi) acquiesce to, or fail to have dismissed, within sixty (60) days, any
      petition filed against it in any involuntary case under such bankruptcy laws,
      or
      (vii) take any action for the purpose of effecting any of the
      foregoing.

     

    8.
       Remedies.
      In case
      an Event of Default shall have occurred and be declared by the Agent, the Agent
      may:

     

    (a)
      Transfer any or all of the Collateral into its name, or into the name of its
      nominee or nominees;

     

    (b)
      Exercise all corporate rights with respect to the Collateral including, without
      limitation, all rights of conversion, exchange, subscription or any other
      rights, privileges or options pertaining to any shares of the Collateral as
      if
      it were the absolute owner thereof, including, but without limitation, the
      right
      to exchange, at its discretion, any or all of the Collateral upon the merger,
      consolidation, reorganization, recapitalization or other readjustment of the
      Issuer thereof, or upon the exercise by the Issuer of any right, privilege
      or
      option pertaining to any of the Collateral, and, in connection therewith, to
      deposit and deliver any and all of the Collateral with any committee,
      depository, transfer agent, registrar or other designated agent upon such terms
      and conditions as they may determine, all without liability except to account
      for property actually received by it; and

     

    (c)
      Subject to any requirement of applicable law, sell, assign and deliver the
      whole
      or, from time to time, any part of the Collateral at the time held by the Agent,
      at any private sale or at public auction, with or without demand, advertisement
      or notice of the time or place of sale or adjournment thereof or otherwise
      (all
      of which are hereby waived, except such notice as is required by applicable
      law
      and cannot be waived), for cash or credit or for other property for immediate
      or
      future delivery, and for such price or prices and on such terms as the Agent
      in
      its sole discretion may determine, or as may be required by applicable
      law.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Pledgor
      hereby waives and releases any and all right or equity of redemption, whether
      before or after sale hereunder. At any such sale, unless prohibited by
      applicable law, the Agent may bid for and purchase the whole or any part of
      the
      Collateral so sold free from any such right or equity of redemption. All moneys
      received by the Agent hereunder whether upon sale of the Collateral or any
      part
      thereof or otherwise shall be held by the Agent and applied by it as provided
      in
      Section 9 hereof. No failure or delay on the part of the Agent in exercising
      any
      rights hereunder shall operate as a waiver of any such rights nor shall any
      single or partial exercise of any such rights preclude any other or future
      exercise thereof or the exercise of any other rights hereunder. The Agent shall
      have no duty as to the collection or protection of the Collateral or any income
      thereon nor any duty as to preservation of any rights pertaining thereto, except
      to apply the funds in accordance with the requirements of Section 9 hereof.
      The
      Agent may exercise its rights with respect to property held hereunder without
      resort to other security for or sources of reimbursement for the Indebtedness.
      In addition to the foregoing, the Agent shall have all of the rights, remedies
      and privileges of a secured party under the Uniform Commercial Code of New
      York
      regardless of the jurisdiction in which enforcement hereof is
      sought.

     

    9.
       Private
      Sale.
      Pledgor
      recognizes that the Agent may be unable to effect (or to do so only after delay
      which would adversely affect the value that might be realized from the
      Collateral) a public sale of all or part of the Collateral by reason of certain
      prohibitions contained in the Securities Act, and may be compelled to resort
      to
      one or more private sales to a restricted group of purchasers who will be
      obliged to agree, among other things, to acquire such Collateral for their
      own
      account, for investment and not with a view to the distribution or resale
      thereof. Pledgor agrees that any such private sale may be at prices and on
      terms
      less favorable to the seller than if sold at public sales and that such private
      sales shall be permitted if otherwise made in a commercially reasonable manner.
      Pledgor agrees that the Agent has no obligation to delay sale of any Collateral
      for the period of time necessary to permit the Issuer to register the Collateral
      for public sale under the Securities Act.

     

    10.
       Proceeds
      of Sale.
      The
      proceeds of any collection, recovery, receipt, appropriation, realization or
      sale of the Collateral shall be applied by the Agent as follows:

     

    (a)
      First, to the payment of all costs, reasonable expenses and charges of the
      Agent
      and to the reimbursement of the Agent for the prior payment of such costs,
      reasonable expenses and charges incurred in connection with the care and
      safekeeping of the Collateral (including, without limitation, the reasonable
      expenses of any sale or any other disposition of any of the Collateral), the
      expenses of any taking, attorneys' fees and reasonable expenses, court costs,
      any other fees or expenses incurred or expenditures or advances made by the
      Agent in the protection, enforcement or exercise of its rights, powers or
      remedies hereunder;

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (b)
      Second, to the payment of the Indebtedness, in whole or in part, in such order
      as the Agent may elect, whether or not such Indebtedness is then
      due;

     

    (c)
      Third, to such persons, firms, corporations or other entities as required by
      applicable law including, without limitation, Section 9-504(1)(c) of the UCC;
      and

     

    (d)
      Fourth, to the extent of any surplus to the Pledgor or as a court of competent
      jurisdiction may direct.

     

    In
      the
      event that the proceeds of any collection, recovery, receipt, appropriation,
      realization or sale are insufficient to satisfy the Indebtedness, Pledgor shall
      be liable for the deficiency plus the reasonable costs and fees of any attorneys
      employed by the Agent to collect such deficiency.

     

    11.
       Waiver
      of Marshaling.
      Pledgor
      hereby waives any right to compel any marshaling of any of the
      Collateral.

     

    12.
       No
      Waiver.
      Any and
      all of the Agent's rights with respect to the Liens granted under this Agreement
      shall continue unimpaired, and Pledgor shall be and remain obligated in
      accordance with the terms hereof, notwithstanding (a) the bankruptcy, insolvency
      or reorganization of Pledgor, (b) the release or substitution of any item of
      the
      Collateral at any time, or of any rights or interests therein, or (c) any delay,
      extension of time, renewal, compromise or other indulgence granted by the Agent
      in reference to any of the Indebtedness. Pledgor hereby waives all notice of
      any
      such delay, extension, release, substitution, renewal, compromise or other
      indulgence, and hereby consents to be bound hereby as fully and effectively
      as
      if Pledgor had expressly agreed thereto in advance. No delay or extension of
      time by the Agent in exercising any power of sale, option or other right or
      remedy hereunder, and no failure by the Agent to give notice or make demand,
      shall constitute a waiver thereof, or limit, impair or prejudice the Agent's
      right to take any action against Pledgor or to exercise any other power of
      sale,
      option or any other right or remedy.

     

    13.
       Expenses.
      The
      Collateral shall secure, and Pledgor shall pay to the Agent on demand, from
      time
      to time, all reasonable costs and expenses, (including but not limited to,
      reasonable attorneys' fees and costs, taxes, and all transfer, recording, filing
      and other charges) of, or incidental to, the custody, care, transfer,
      administration of the Collateral or any other collateral, or in any way relating
      to the enforcement, protection or preservation of the rights or remedies of
      the
      Agent under this Agreement or with respect to any of the
      Indebtedness.

     

    14.
       The
      Agent Appointed Attorney-In-Fact and Performance by the
      Agent.
      Upon the
      occurrence of an Event of Default, Pledgor hereby irrevocably constitutes and
      appoints the Agent as Pledgor's true and lawful attorney-in-fact, with full
      power of substitution, to execute, acknowledge and deliver any instruments
      and
      to do in Pledgor's name, place and stead, all such acts, things and deeds for
      and on behalf of and in the name of Pledgor, which Pledgor could or might do
      or
      which the Agent may deem necessary, desirable or convenient to accomplish the
      purposes of this Agreement, including, without limitation, to execute such
      instruments of assignment or transfer or orders and to register, convey or
      otherwise transfer title to the Collateral into the Agent's name. Pledgor hereby
      ratifies and confirms all that said attorney-in-fact may so do and hereby
      declares this power of attorney to be coupled with an interest and irrevocable.
      If Pledgor fails to perform any agreement herein contained, the Agent may
      themselves perform or cause performance thereof, and any costs and expenses
      of
      the Agent incurred in connection therewith shall be paid by the Pledgor as
      provided in Section 9 hereof.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    15.
      Waivers.

     

    (a)
      EACH
      PARTY HERETO HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
      DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR ANY OTHER
      INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH,
      OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF
      THE
      PARTIES HERETO OR ANY OTHER AGREEMENT EXECUTED OR DELIVERED BY THEM IN
      CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH
      CASE
      WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT
      OR
      TORT OR OTHERWISE AND EACH PARTY HERETO HEREBY AGREES AND CONSENTS THAT ANY
      CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT
      A JURY, AND THAT ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
      SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH PARTY TO
      THE
      WAIVER OF ITS RIGHT TO TRIAL BY JURY.

     

    16.
       Recapture.
      Notwithstanding anything to the contrary in this Agreement, if the Agent receive
      any payment or payments on account of the Indebtedness, which payment or
      payments or any part thereof are subsequently invalidated, declared to be
      fraudulent or preferential, set aside and/or required to be repaid to a trustee,
      receiver, or any other party under the United States Bankruptcy Code, as
      amended, or any other federal or state bankruptcy, reorganization, moratorium
      or
      insolvency law relating to or affecting the enforcement of creditors' rights
      generally, common law or equitable doctrine, then to the extent of any sum
      not
      finally retained by the Agent, Pledgor's obligations to the Agent shall be
      reinstated and this Agreement shall remain in full force and effect (or be
      reinstated) until payment shall have been made to the Agent, which payment
      shall
      be due on demand.

     

    17.
       Captions.
      All
      captions in this Agreement are included herein for convenience of reference
      only
      and shall not constitute part of this Agreement for any other
      purpose.

     

    18.
       Miscellaneous.

     

    (a)
      This
      Agreement constitutes the entire and final agreement among the parties with
      respect to the subject matter hereof and may not be changed, terminated or
      otherwise varied except by a writing duly executed by the parties
      hereto.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (b)
      No waiver of any term or condition of this
      Agreement, whether by delay, omission or otherwise, shall be effective unless
      in
      writing and signed by the party sought to be charged, and then such waiver
      shall
      be effective only in the specific instance and for the purpose for which
      given.

     

    (c)
      In
      the event that any provision of this Agreement or the application thereof to
      Pledgor or any circumstance in any jurisdiction governing this Agreement shall,
      to any extent, be invalid or unenforceable under any applicable statute,
      regulation, or rule of law, such provision shall be deemed inoperative to the
      extent that it may conflict therewith and shall be deemed modified to conform
      to
      such statute, regulation or rule of law, and the remainder of this Agreement
      and
      the application of any such invalid or unenforceable provision to parties,
      jurisdictions, or circumstances other than to whom or to which it is held
      invalid or unenforceable shall not be affected thereby, nor shall the same
      affect the validity or enforceability of any other provision of this
      Agreement.

     

    (d)
      This
      Agreement shall be binding upon Pledgor, and Pledgor's successors and assigns,
      and shall inure to the benefit of the Agent and their successors and
      assigns.

     

    (e)
      Any
      notice or other communication required or permitted pursuant to this Agreement
      shall be given in accordance with the Securities Purchase
      Agreement.

     

    (f)
      This
      Agreement shall be governed by and construed and enforced in all respects in
      accordance with the laws of the State of New York applied to contracts to be
      performed wholly within the State of New York.

     

    (g)
      PLEDGOR EXPRESSLY CONSENTS TO THE JURISDICTION AND VENUE OF EACH COURT OF
      COMPETENT JURISDICTION LOCATED IN THE STATE OF NEW YORK FOR ALL PURPOSES IN
      CONNECTION WITH THIS AGREEMENT. ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY
      OR
      INDIRECTLY, ANY MATTER OR CLAIM IN ANY WAY ARISING OUT OF, RELATED TO OR
      CONNECTED WITH THIS AGREEMENT SHALL BE BROUGHT ONLY IN A STATE COURT LOCATED
      IN
      THE COUNTY OF NEW YORK, STATE OF NEW YORK. PLEDGOR FURTHER CONSENTS THAT ANY
      SUMMONS, SUBPOENA OR OTHER PROCESS OR PAPERS (INCLUDING, WITHOUT LIMITATION,
      ANY
      NOTICE OR MOTION OR OTHER APPLICATION TO EITHER OF THE AFOREMENTIONED COURTS
      OR
      A JUDGE THEREOF) OR ANY NOTICE IN CONNECTION WITH ANY PROCEEDINGS HEREUNDER,
      MAY
      BE SERVED INSIDE OR OUTSIDE OF THE STATE OF NEW YORK OR THE SOUTHERN DISTRICT
      OF
      NEW YORK BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY
      PERSONAL SERVICE PROVIDED A REASONABLE TIME FOR APPEARANCE IS PERMITTED, OR
      IN
      SUCH OTHER MANNER AS MAY BE PERMISSIBLE UNDER THE RULES OF SAID COURTS. PLEDGOR
      WAIVES ANY OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED HEREON
      AND SHALL NOT ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION OR VENUE OR
      BASED
      UPON FORUM NON CONVENIENS.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (h)
      It is
      understood and agreed that any person or entity that desires to become a Pledgor
      hereunder, or is required to execute a counterpart of this Stock Pledge
      Agreement after the date hereof pursuant to the requirements of any Document,
      shall become a Pledgor hereunder by (x) executing a Joinder Agreement in form
      and substance satisfactory to the Agent, (y) delivering supplements to such
      exhibits and annexes to such Documents as the Agent shall reasonably request
      and
      (z) taking all actions as specified in this Agreement as would have been taken
      by such Pledgor had it been an original party to this Agreement, in each case
      with all documents required above to be delivered to the Agent and with all
      documents and actions required above to be taken to the reasonable satisfaction
      of the Agent.

     

    (i)
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original and all of which when taken together shall constitute one
      and
      the same agreement. Any signature delivered by a party by facsimile transmission
      shall be deemed an original signature hereto.

     

    (j)
      All
      rights of the Purchasers hereunder may be exercised by the Agent, as their
      agent.

     

    [Remainder
      of Page Intentionally Left Blank]

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have duly executed this Agreement as of the day
      and
      year first written above.

     

    
      	 	 	 
	 	
            	/S/
              KEN
              UPCRAFT
	 	
              

              Kenneth
                Upcraft

            

     

    
      	 	 	 
	 	
              FRIENDLYWAY
                CORPORATION

            
	 
 	 
 	 
 
	
            	By:  	/S/
              KEN
              UPCRAFT
	 	
              

              Kenneth
                Upcraft, President & CEO

            

    

     

    
      	 	 	 
	 	ATLANTIC
              PROFESSIONAL ASSOCIATION,
              INC.
	 
 	 
 	 
 
	
            	By:  	/S/
              LAWRENCE S. ACKERMAN
	 	
              
Larry
              Ackerman, President

    

       

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A to the Stock Pledge Agreement

     

    Pledged
      Stock

    

      
        	
                Pledgor

              	
                 

              	
                Issuer

              	
                 

              	
                Class
                  of Stock

              	
                 

              	
                Stock
                  Certificate Number

              	
                 

              	
                Par
                  Value

              	
                 

              	
                Number
                  of Shares

              
	 	 	 	 	 	 	 	 	 	 	 
	
                Kenneth
                  Upcraft

              	
                 

              	
                friendlyway
                  Corporation

              	
                 

              	
                Common

              	 	
                10004

              	
                 

              	
                $.001

              	
                 

              	
                7,000,000

              

      

       

       

      
        
          
          

        

        
          12SUBSIDIARY
      GUARANTY 

     

    To:
      Atlantic Professional Association, Inc., as Agent for
      Purchasers

     

    New
      York, New York July 19, 2006

     

    FOR
      VALUE
      RECEIVED, and in consideration of note purchases from, loans made or to be
      made
      or credit otherwise extended or to be extended by Purchasers, as defined in
      the
      Securities Purchase Agreement described below (each a "Purchaser" and together
      the "Purchasers") to or for the account of friendlyway Corporation, a Nevada
      corporation ("Debtor"), from time to time and at any time and for other good
      and
      valuable consideration and to induce the Purchasers, in their discretion, to
      purchase such notes, make such loans or extensions of credit and to make or
      grant such renewals, extensions, releases of collateral or relinquishments
      of
      legal rights as the Purchasers or the Agent, as defined in the Securities
      Purchase Agreement, may deem advisable, the undersigned (and each of them if
      more than one, the liability under this Guaranty being joint and several)
      (jointly and severally referred to as "Guarantors" or "the undersigned")
      unconditionally guaranties to the Purchasers, their successors, endorsees and
      assigns the prompt payment when due (whether by acceleration or otherwise)
      of
      all present and future obligations and liabilities of any and all kinds of
      Debtor to the Purchasers and of all instruments of any nature evidencing or
      relating to any such obligations and liabilities upon which Debtor is or may
      become liable to the Purchasers, whether incurred by Debtor as maker, endorser,
      drawer, acceptor, guarantor, accommodation party or otherwise, and whether
      due
      or to become due, secured or unsecured, absolute or contingent, joint or
      several, and however or whenever acquired by the Purchasers, whether arising
      under, out of, or in connection with (i) that certain Securities Purchase
      Agreement dated as of the date hereof by and between Debtor and the Purchasers
      (the "Securities Purchase Agreement") and (ii) each Related Agreement referred
      to in the Securities Purchase Agreement, (the Securities Purchase Agreement
      and
      each Related Agreement, as each may be amended, modified, restated or
      supplemented from time to time, are collectively referred to herein as the
      "Documents"), or any documents, instruments or agreements relating to or
      executed in connection with the Documents or any documents, instruments or
      agreements referred to therein or otherwise, or any other indebtedness,
      obligations or liabilities of Debtor to the Purchasers or the Agent, whether
      now
      existing or hereafter arising, direct or indirect, liquidated or unliquidated,
      absolute or contingent, due or not due and whether under, pursuant to or
      evidenced by a note, agreement, guaranty, instrument or otherwise (all of which
      are herein collectively referred to as the "Obligations"), and irrespective
      of
      the genuineness, validity, regularity or enforceability of such Obligations,
      or
      of any instrument evidencing any of the Obligations or of any collateral
      therefor or of the existence or extent of such collateral, and irrespective
      of
      the allowability, allowance or disallowance of any or all of the Obligations
      in
      any case commenced by or against Debtor under Title 11, United States Code,
      including, without limitation, obligations or indebtedness of Debtor for
      post-petition interest, fees, costs and charges that would have accrued or
      been
      added to the Obligations but for the commencement of such case. Terms not
      otherwise defined herein shall have the meaning assigned such terms in the
      Securities Purchase Agreement. In furtherance of the foregoing, the undersigned
      hereby agrees as follows: 

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1.
      No
      Impairment.
      The
      Agent, on behalf of the Purchasers and if authorized to do so pursuant to the
      terms of the Documents, may at any time and from time to time, either before
      or
      after the maturity thereof, without notice to or further consent of the
      undersigned, extend the time of payment of, exchange or surrender any collateral
      for, renew or extend any of the Obligations or increase or decrease the interest
      rate thereon, or enter into any other agreement with Debtor or with any other
      party to or person liable on any of the Obligations, or interested therein,
      for
      the extension, renewal, payment, compromise, discharge or release thereof,
      in
      whole or in part, or for any modification of the terms thereof or of any
      agreement between the Purchasers, Debtor and/or the Agent or any such other
      party or person, or make any election of rights the Purchasers may deem
      desirable under the United States Bankruptcy Code, as amended, or any other
      federal or state bankruptcy, reorganization, moratorium or insolvency law
      relating to or affecting the enforcement of creditors' rights generally (any
      of
      the foregoing, an "Insolvency Law") without in any way impairing or affecting
      this Guaranty. This instrument shall be effective regardless of the subsequent
      incorporation, merger or consolidation of Debtor, or any change in the
      composition, nature, personnel or location of Debtor and shall extend to any
      successor entity to Debtor, including a debtor in possession or the like under
      any Insolvency Law. 

     

    2.
      Guaranty
      Absolute.
      Each of
      the undersigned jointly and severally guarantees that the Obligations will
      be
      paid strictly in accordance with the terms of the Documents and/or any other
      document, instrument or agreement creating or evidencing the Obligations,
      regardless of any law, regulation or order now or hereafter in effect in any
      jurisdiction affecting any of such terms or the rights of Debtor with respect
      thereto. Guarantors hereby knowingly accept the full range of risk encompassed
      within a contract of "continuing guaranty" which risk includes the possibility
      that Debtor will contract additional indebtedness for which Guarantors may
      be
      liable hereunder after Debtor's financial condition or ability to pay its lawful
      debts when they fall due has deteriorated, whether or not Debtor has properly
      authorized incurring such additional indebtedness. The undersigned acknowledge
      that (i) no oral representations, including any representations to extend credit
      or provide other financial accommodations to Debtor, have been made by the
      Purchasers or Agent to induce the undersigned to enter into this Guaranty and
      (ii) any extension of credit to Debtor shall be governed solely by the
      provisions of the Documents. The liability of each of the undersigned under
      this
      Guaranty shall be absolute and unconditional, in accordance with its terms,
      and
      shall remain in full force and effect without regard to, and shall not be
      released, suspended, discharged, terminated or otherwise affected by, any
      circumstance or occurrence whatsoever, including, without limitation: (a) any
      waiver, indulgence, renewal, extension, amendment or modification of or
      addition, consent or supplement to or deletion from or any other action or
      inaction under or in respect of the Documents or any other instruments or
      agreements relating to the Obligations or any assignment or transfer of any
      thereof, (b) any lack of validity or enforceability of any Document or other
      documents, instruments or agreements relating to the Obligations or any
      assignment or transfer of any thereof, (c) any furnishing of any additional
      security to the Purchasers, the Agent or their assignees or any acceptance
      thereof or any release of any security by the Purchasers, the Agent or their
      assignees, (d) any limitation on any party's liability or obligation under
      the
      Documents or any other documents, instruments or agreements relating to the
      Obligations or any assignment or transfer of any thereof or any invalidity
      or
      unenforceability, in whole or in part, of any such document, instrument or
      agreement or any term thereof, (e) any bankruptcy, insolvency, reorganization,
      composition, adjustment, dissolution, liquidation or other like proceeding
      relating to Debtor, or any action taken with respect to this Guaranty by any
      trustee or receiver, or by any court, in any such proceeding, whether or not
      the
      undersigned shall have notice or knowledge of any of the foregoing, (f) any
      exchange, release or nonperfection of any collateral, or any release, or
      amendment or waiver of or consent to departure from any guaranty or security,
      for all or any of the Obligations or (g) any other circumstance which might
      otherwise constitute a defense available to, or a discharge of, the undersigned.
      Any amounts due from the undersigned to the Purchasers shall bear interest
      until
      such amounts are paid in full at the highest rate then applicable to the
      Obligations. Obligations include post-petition interest whether or not allowed
      or allowable. 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    3.
      Waivers.
      

     

    (a)
      This
      Guaranty is a guaranty of payment and not of collection. The Agent, acting
      on
      behalf of the Purchasers, shall be under no obligation to institute suit,
      exercise rights or remedies or take any other action against Debtor or any
      other
      person liable with respect to any of the Obligations or resort to any collateral
      security held by them to secure any of the Obligations as a condition precedent
      to the undersigned being obligated to perform as agreed herein and each
      Guarantor hereby waives any and all rights which it may have by statute or
      otherwise which would require the Agent or the Purchasers to do any of the
      foregoing. Each Guarantor further consents and agrees that the Agent, acting
      on
      behalf of the Purchasers, shall be under no obligation to marshal any assets
      in
      favor of Guarantors, or against or in payment of any or all of the Obligations.
      The undersigned hereby waives all suretyship defenses and any rights to
      interpose any defense, counterclaim or offset of any nature and description
      which the undersigned may have or which may exist between and among the
      Purchasers, the Agent, Debtor and/or the undersigned with respect to the
      undersigned's obligations under this Guaranty, or which Debtor may assert on
      the
      underlying debt, including but not limited to failure of consideration, breach
      of warranty, fraud, payment (other than cash payment in full of the
      Obligations), statute of frauds, bankruptcy, infancy, statute of limitations,
      accord and satisfaction, and usury. 

     

    (b)
      Each
      of the undersigned further waives (i) notice of the acceptance of this Guaranty,
      of the making of any such loans or extensions of credit, and of all notices
      and
      demands of any kind to which the undersigned may be entitled, including, without
      limitation, notice of adverse change in Debtor's financial condition or of
      any
      other fact which might materially increase the risk of the undersigned and
      (ii)
      presentment to or demand of payment from anyone whomsoever liable upon any
      of
      the Obligations, protest, notices of presentment, non-payment or protest and
      notice of any sale of collateral security or any default of any sort.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (c)
      Notwithstanding any payment or payments made by the undersigned hereunder,
      or
      any setoff or application of funds of the undersigned by the Purchasers, the
      undersigned shall not be entitled to be subrogated to any of the rights of
      the
      Purchasers or the Agent against Debtor or against any collateral or guarantee
      or
      right of offset held by the Purchasers or Agent for the payment of the
      Obligations, nor shall the undersigned seek or be entitled to seek any
      contribution or reimbursement from Debtor in respect of payments made by the
      undersigned hereunder, until all amounts owing to the Purchasers by Debtor
      on
      account of the Obligations are paid in full. If, notwithstanding the foregoing,
      any amount shall be paid to the undersigned on account of such subrogation
      rights at any time when all of the Obligations shall not have been paid in
      full,
      such amount shall be held by the undersigned in trust for the Purchasers,
      segregated from other funds of the undersigned, and shall forthwith upon, and
      in
      any event within two (2) business days of, receipt by the undersigned, be turned
      over to the Purchasers or Agent in the exact form received by the undersigned
      (duly endorsed by the undersigned to the Purchasers or Agent, if required),
      to
      be applied against the Obligations, whether matured or unmatured, in such order
      as the Agent may determine, subject to the provisions of the Documents. Any
      and
      all present and future debts and obligations of Debtor to any of the undersigned
      are hereby waived and postponed in favor of, and subordinated to the full
      payment and performance of, all present and future debts and Obligations of
      Debtor to the Purchasers. 

     

    4.
      Security.
      All
      sums at any time to the credit of the undersigned and any property of the
      undersigned in the Agent’s possession or in the possession of any bank,
      financial institution or other entity that directly or indirectly, through
      one
      or more intermediaries, controls or is controlled by, or is under common control
      with, the Agent (each such entity, an "Affiliate") shall be deemed held by
      Agent
      on behalf of the Purchasers or such Affiliate, as the case may be, as security
      for any and all of the undersigned's obligations to the Purchasers and to any
      Affiliate of the Purchasers, no matter how or when arising and whether under
      this or any other instrument, agreement or otherwise. In addition, this Guaranty
      is secured by that certain Security Agreement as of even date herewith in favor
      of the Purchasers.

     

    5.
      Representations
      and Warranties.
      Each of
      the undersigned respectively, hereby jointly and severally represents and
      warrants (all of which representations and warranties shall survive until all
      Obligations are indefeasibly satisfied in full and the Documents have been
      irrevocably terminated), that: 

     

    (a)
      Corporate
      Status.
      It is a
      corporation, partnership or limited liability company, as the case may be,
      duly
      organized, validly existing and in good standing under the laws of its
      jurisdiction of organization indicated on the signature page hereof and has
      full
      power, authority and legal right to own its property and assets and to transact
      the business in which it is engaged. 

     

    (b)
      Authority
      and Execution.
      It has
      full power, authority and legal right to execute and deliver, and to perform
      its
      obligations under, this Guaranty and has taken all necessary corporate,
      partnership or limited liability company, as the case may be, action to
      authorize the execution, delivery and performance of this Guaranty.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (c)
      Legal,
      Valid and Binding Character.
      This
      Guaranty constitutes its legal, valid and binding obligation enforceable in
      accordance with its terms, except as enforceability may be limited by applicable
      bankruptcy, insolvency, reorganization, moratorium or other laws of general
      application affecting the enforcement of creditor's rights and general
      principles of equity that restrict the availability of equitable or legal
      remedies. 

     

    (d)
      Violations.
      The
      execution, delivery and performance of this Guaranty will not violate any
      requirement of law applicable to it or any contract, agreement or instrument
      to
      which it is a party or by which it or any of its property is bound or result
      in
      the creation or imposition of any mortgage, lien or other encumbrance other
      than
      to the Purchasers on any of its property or assets pursuant to the provisions
      of
      any of the foregoing, which, in any of the foregoing cases, would reasonably
      be
      expected to have, either individually or in the aggregate, a Material Adverse
      Effect. 

     

    (e)
      Consents
      or Approvals.
      No
      consent of any other person or entity (including, without limitation, any
      creditor of the undersigned) and no consent, license, permit, approval or
      authorization of, exemption by, notice or report to, or registration, filing
      or
      declaration with, any governmental authority is required in connection with
      the
      execution, delivery, performance, validity or enforceability of this Guaranty
      by
      it, except to the extent that the failure to obtain any of the foregoing would
      not reasonably be expected to have, either individually or in the aggregate,
      a
      Material Adverse Effect. 

     

    (f)
      Litigation.
      No
      litigation, arbitration, investigation or administrative proceeding of or before
      any court, arbitrator or governmental authority, bureau or agency is currently
      pending or, to the best of its knowledge, threatened (i) with respect to this
      Guaranty or any of the transactions contemplated by this Guaranty or (ii)
      against or affecting it, or any of its property or assets, which, in each of
      the
      foregoing cases, if adversely determined, would reasonably be expected to have
      a
      Material Adverse Effect. 

     

    (g)
      Financial
      Benefit.
      It has
      derived or expects to derive a financial or other advantage from each and every
      loan, advance or extension of credit made under the Documents or other
      Obligation incurred by Debtor to the Purchasers. 

     

    6.
      Acceleration.
      

     

    (a)
      If
      any breach of any covenant or condition or other event of default shall occur
      and be continuing under any agreement made by Debtor or any of the undersigned
      to the Purchasers or the Agent, or either Debtor or any of the undersigned
      should at any time become insolvent, or make a general assignment, or if a
      proceeding in or under any insolvency law shall be filed or commenced by, or
      in
      respect of, any of the undersigned, or if a notice of any lien, levy, or
      assessment is filed of record with respect to any assets of any of the
      undersigned by the United States of America or any department, agency, or
      instrumentality thereof, or if any taxes or debts owing at any time or times
      hereafter to any one of them becomes a lien or encumbrance upon any assets
      of
      the undersigned in the Agent’s possession, or otherwise, any and all Obligations
      shall for purposes hereof, at the Agent’s option, be deemed due and payable
      without notice notwithstanding that any such Obligation is not then due and
      payable by Debtor. 

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (b)
      Each
      of the undersigned will promptly notify the Agent of any default by such
      undersigned in its respective performance or observance of any term or condition
      of any agreement to which the undersigned is a party if the effect of such
      default is to cause, or permit the holder of any obligation under such agreement
      to cause, such obligation to become due prior to its stated maturity and, if
      such an event occurs, the Agent shall have the right to accelerate such
      undersigned's obligations hereunder. 

     

    7.
      Payments
      from Guarantors.
      The
      Agent, in its sole and absolute discretion, with or without notice to the
      undersigned, may apply on account of the Obligations any payment from the
      undersigned or any other Guarantors, or amounts realized from any security
      for
      the Obligations, or may deposit any and all such amounts realized in a
      non-interest bearing cash collateral deposit account to be maintained as
      security for the Obligations. 

     

    8.
      Costs.
      The
      undersigned shall pay on demand, all costs, fees and expenses (including
      reasonable expenses for legal services of every kind) relating or incidental
      to
      the enforcement or protection of the rights of the Purchasers or Agent hereunder
      or under any of the Obligations. 

     

    9.
      No
      Termination.
      This is
      a continuing irrevocable guaranty and shall remain in full force and effect
      and
      be binding upon the undersigned, and each of the undersigned’s successors and
      assigns, until all of the Obligations have been paid in full and the Purchasers'
      obligation to extend credit pursuant to the Documents has been irrevocably
      terminated. If any of the present or future Obligations are guarantied by
      persons, partnerships or corporations in addition to the undersigned, the death,
      release or discharge in whole or in part or the bankruptcy, merger,
      consolidation, incorporation, liquidation or dissolution of one or more of
      them
      shall not discharge or affect the liabilities of any undersigned under this
      Guaranty. 

     

    10.
      Recapture.
      Anything in this Guaranty to the contrary notwithstanding, if the Purchasers
      or
      Agent receive any payment or payments on account of the liabilities guaranteed
      hereby, which payment or payments or any part thereof are subsequently
      invalidated, declared to be fraudulent or preferential, set aside and/or
      required to be repaid to a trustee, receiver, or any other party under any
      Insolvency Law, common law or equitable doctrine, then to the extent of any
      sum
      not finally retained by the Purchasers or Agent, the undersigned's obligations
      to the Purchasers shall be reinstated and this Guaranty shall remain in full
      force and effect (or be reinstated) until payment shall have been made to the
      Purchasers or Agent, which payment shall be due on demand. 

     

    11.
      Books
      and Records.
      The
      books and records of the Agent showing the account between the Purchasers and
      Debtor shall be admissible in evidence in any action or proceeding, shall be
      binding upon the undersigned for the purpose of establishing the items therein
      set forth and shall constitute prima facie proof thereof. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    12.
      No
      Waiver.
      No
      failure on the part of the Purchasers or Agent to exercise, and no delay in
      exercising, any right, remedy or power hereunder shall operate as a waiver
      thereof, nor shall any single or partial exercise by the Purchasers or Agent
      of
      any right, remedy or power hereunder preclude any other or future exercise
      of
      any other legal right, remedy or power. Each and every right, remedy and power
      hereby granted to the Purchasers or allowed them by law or other agreement
      shall
      be cumulative and not exclusive of any other, and may be exercised by the
      Purchasers or Agent at any time and from time to time. 

     

    13.
      Waiver
      of Jury Trial.
      EACH OF
      THE UNDERSIGNED DOES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
      THE
      RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR WITH RESPECT
      TO
      THIS GUARANTY OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR RELATING OR
      INCIDENTAL HERETO. THE UNDERSIGNED DOES HEREBY CERTIFY THAT NO REPRESENTATIVE
      OR
      AGENT OF THE PURCHASERS HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE
      PURCHASERS WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS WAIVER
      OF
      RIGHT TO JURY TRIAL PROVISION. 

     

    14.
      Governing
      Law; Jurisdiction; Amendments.
      THIS
      INSTRUMENT CANNOT BE CHANGED OR TERMINATED ORALLY AND SHALL BE GOVERNED,
      CONSTRUED AND INTERPRETED AS TO VALIDITY, ENFORCEMENT AND IN ALL OTHER RESPECTS
      IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT HAVING EFFECT
      TO
      PRINCIPLES OF CONFLICTS OF LAWS. EACH OF THE UNDERSIGNED EXPRESSLY CONSENTS
      TO
      THE JURISDICTION AND VENUE OF THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY
      OF NEW YORK, AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT
      OF NEW YORK FOR ALL PURPOSES IN CONNECTION HEREWITH. ANY JUDICIAL PROCEEDING
      BY
      THE UNDERSIGNED AGAINST THE PURCHASERS OR AGENT INVOLVING, DIRECTLY OR
      INDIRECTLY, ANY MATTER OR CLAIM IN ANY WAY ARISING OUT OF, RELATED TO OR
      CONNECTED HEREWITH SHALL BE BROUGHT ONLY IN THE SUPREME COURT OF THE STATE
      OF
      NEW YORK, COUNTY OF NEW YORK OR THE UNITED STATES DISTRICT COURT FOR THE
      SOUTHERN DISTRICT OF NEW YORK. THE UNDERSIGNED FURTHER CONSENTS THAT ANY
      SUMMONS, SUBPOENA OR OTHER PROCESS OR PAPERS (INCLUDING, WITHOUT LIMITATION,
      ANY
      NOTICE OR MOTION OR OTHER APPLICATION TO EITHER OF THE AFOREMENTIONED COURTS
      OR
      A JUDGE THEREOF) OR ANY NOTICE IN CONNECTION WITH ANY PROCEEDINGS HEREUNDER,
      MAY
      BE SERVED INSIDE OR OUTSIDE OF THE STATE OF NEW YORK OR THE SOUTHERN DISTRICT
      OF
      NEW YORK BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY
      PERSONAL SERVICE PROVIDED A REASONABLE TIME FOR APPEARANCE IS PERMITTED, OR
      IN
      SUCH OTHER MANNER AS MAY BE PERMISSIBLE UNDER THE RULES OF SAID COURTS. EACH
      OF
      THE UNDERSIGNED WAIVES ANY OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION
      INSTITUTED HEREON AND SHALL NOT ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION
      OR VENUE OR BASED UPON FORUM NON CONVENIENS. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    15.
      Severability.
      To the
      extent permitted by applicable law, any provision of this Guaranty which is
      prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
      be ineffective to the extent of such prohibition or unenforceability without
      invalidating the remaining provisions hereof, and any such prohibition or
      unenforceability in any jurisdiction shall not invalidate or render
      unenforceable such provision in any other jurisdiction. 

     

    16.
      Amendments,
      Waivers.
      No
      amendment or waiver of any provision of this Guaranty nor consent to any
      departure by the undersigned therefrom shall in any event be effective unless
      the same shall be in writing executed by each of the undersigned directly
      affected by such amendment and/or waiver and the Agent. 

     

    17.
      Notice.
      All
      notices, requests and demands to or upon the undersigned, shall be in writing
      and shall be deemed to have been duly given or made (a) when delivered, if
      by
      hand, (b) three (3) days after being sent, postage prepaid, if by registered
      or
      certified mail, (c) when confirmed electronically, if by facsimile, or (d)
      when
      delivered, if by a recognized overnight delivery service in each event, to
      the
      numbers and/or address set forth beneath the signature of the undersigned.
      

     

    18.
      Becoming
      a Guarantor.
      It is
      understood and agreed that any person or entity that desires to become a
      Guarantor hereunder, or is required to execute a counterpart of this Guaranty
      after the date hereof pursuant to the requirements of any Document, shall become
      a Guarantor hereunder by (x) executing a Joinder Agreement in form and substance
      satisfactory to the Agent, (y) delivering supplements to such exhibits and
      annexes to such Documents as the Agent shall reasonably request and (z) taking
      all actions as specified in this Guaranty as would have been taken by such
      Guarantor had it been an original party to this Guaranty, in each case with
      all
      documents required above to be delivered to the Agent and with all documents
      and
      actions required above to be taken to the reasonable satisfaction of the Agent.
      

     

    19.
      Release.
      Nothing
      except cash payment in full of the Obligations shall release any of the
      undersigned from liability under this Guaranty. 

     

    20.
      Limitation
      of Obligations under this Guaranty.
      Each
      Guarantor and the Purchasers (by their acceptance of the benefits of this
      Guaranty) hereby confirm that it is their intention that this Guaranty not
      constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy
      Code, the Uniform Fraudulent Conveyance Act or any similar Federal or state
      law.
      To effectuate the foregoing intention, each Guarantor and the Purchasers (by
      their acceptance of the benefits of this Guaranty) hereby irrevocably agree
      that
      the Obligations guaranteed by such Guarantor shall be limited to such amount
      as
      will, after giving effect to such maximum amount and all other (contingent
      or
      otherwise) liabilities of such Guarantor that are relevant under such laws
      and
      after giving effect to any rights to contribution pursuant to any agreement
      providing for an equitable contribution among such Guarantor and the other
      Guarantors (including this Guaranty), result in the Obligations of such
      Guarantor under this Guaranty in respect of such maximum amount not constituting
      a fraudulent transfer or conveyance. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    [REMAINDER
      OF THIS PAGE IS BLANK. 

     

    SIGNATURE
      PAGE IMMEDIATELY FOLLOWS.] 

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, this Guaranty has been executed by the undersigned this
      19th
      day of
      July, 2006. 

     

    
      	FRIENDLYWAY TECHNOLOGIES,
              INC. 	 	 
	 	 	 	 
	 	 	 	 
	By:	/S/
              KEN UPCRAFT  	 	 
	
            	
              
Kenneth
              Upcraft, President &
              CEO  	 	
            
	 	 	 	
            
	 	 	 	 
	PANTEL
              FINANCIAL CENTERS, INC.   	 	 
	 	 	 	 
	 	 	 	 
	By: 	/S/ KEN UPCRAFT  	 	 
	 	
              

              Kenneth
                Upcraft, President & CEO 

            	 	 
	 	 	 	 
	 	 	 	 
	PANTEL SYSTEMS,
              INC.   	 	 
	 	 	 
	 	 	 
	By:  	/S/ KEN UPCRAFT  	 	 
	 	
              
Kenneth
              Upcraft, President & CEO  	 	 

    

     

    
      
        
        

      

      
        9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}]]