Document:

Unassociated Document

    
      
        	
                DVERB
                  MEDIA ASSETS & GOODWILL 

                PURCHASE
                  AGREEMENT 

              
	 	
                Exhibit
                  10.3 10-Q

              

      

    

     

    THIS
      GOODWILL PURCHASE AGREEMENT (the "Agreement") dated as of the 24th
      day
      of April, 2008,
      is made
      and entered into by and between WinSonic
      Digital Media Group, Ltd.,
      a
      Nevada Corporation, located at 101 Marietta Street, Suite 2600, Atlanta, Georgia
      30303 (the "Buyer") and Dverb
      Media Group, Inc.,
      a
      Georgia corporation, located at 519 Connally Street, S.E., Atlanta, Georgia
      30312 (the "Seller") (the Buyer and the Seller are sometimes referred to herein
      collectively as the "Parties").

    

    WHEREAS,
      the Seller have independently developed, owned and will continue to own on
      the
      Closing Date (as defined in Section 2) close personal and ongoing business
      relationships, trade secrets and knowledge in connection with the Buyer's
      business of the sale of products and services related to Dverb, through his
      personal ability, personality, reputation, skill and integrity, and other
      information relating thereto (collectively, the "Goodwill"), which the Seller
      desires to sell to the Buyer as hereinafter provided; and

    

    WHEREAS,
      Seller is not subject to a non-competition or similar restrictive covenant
      agreement relating to the Goodwill; and

    

    WHEREAS,
      the Buyer desires to acquire all of the Goodwill, as hereinafter
      provided:

    

    NOW,
      THEREFORE, in consideration of the foregoing and of the mutual promises and
      covenants contained herein, and other good and valuable consideration, the
      receipt of which is hereby acknowledged, the Parties agree as
      follows:

    

    1.
      PURCHASE PRICE AND EXCHANGE OF CONSIDERATION. The
      Seller agrees to sell, assign, transfer, convey and deliver to the Buyer at
      the
      Closing the assets and Goodwill including, but not limited to, all of the
      Sellers' respective rights and benefits related to the assets and Goodwill
      (per
      attached Exhibit A.). In exchange for the Assets and Goodwill and subject to
      the
      terms and conditions of this agreement, the Buyer has issued to the Seller
      and
      its Parties, total of 1.5 Million common stock shares of WinSonic Digital Media
      Group, Ltd. (per attached Exhibit B.). The payment required by this Section
      1
      shall not be affected by the death or disability of either Seller or the breach
      or termination by Seller of any agreement (other than this Agreement) between
      Seller and the Buyer.

    

    2. CLOSING/TERMINATION.
      The sale
      and assignment of the Goodwill (the "Closing") shall take place at the offices
      of the Buyer on April
      24, 2008,
      or at
      such other time and date as the Buyer and the Seller may agree (the "Closing
      Date"). The effective time of the transactions contemplated hereby shall be
      12:01 a.m. on the Closing Date.

    

    3.
      REPRESENTATIONS AND WARRANTIES.
      The
      Seller personally represents and warrants to the Buyer as follows:

    

    3.1
      GOODWILL. All of the Goodwill is owned, and immediately prior to the Closing
      will be owned, by the Seller, free and clear of all liens, encumbrances, claims,
      options, security interests, calls and commitments of any kind. The Seller
      has
      full legal right, power and authority to enter into this Agreement and to sell,
      assign and transfer the Goodwill to the Buyer and, on the Closing Date, the
      sale
      and assignment of the Goodwill to the Buyer hereunder will transfer to the
      Buyer
      valid title thereto, free and clear of all liens, encumbrances, claims, options,
      security interests and commitments of any kind.

     

    
      
        
          Initials:
            ______

          Initials:
            ______

        

        
        

      

      
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                  DVERB
                    MEDIA ASSETS & GOODWILL 

                  PURCHASE
                    AGREEMENT 

                
	 	
                  Exhibit
                    10.3 10-Q

                

        

         

      

    

    3.2
       NO
      RESTRICTIONS. Seller is not currently a party to any contract, employment
      agreement, non-compete agreement or any other contract or agreement or subject
      to any other restriction or subject to any restriction or condition contained
      in
      any permit, license, judgment, order, writ, injunction, decree or award which,
      singly or in the aggregate, materially and adversely affects or restricts or
      is
      likely to materially and adversely affect or restrict the Goodwill or the
      Buyer's acquisition, use or enjoyment thereof.

    

    3.3
      APPROVAL AND AUTHORIZATION. The execution and delivery of this Agreement by
      Seller and the performance of the transactions contemplated herein have been
      duly and validly authorized by Seller, and this Agreement is a legal, valid
      and
      binding obligation of Seller, enforceable against each of them in accordance
      with its respective terms subject to bankruptcy, insolvency, reorganization,
      moratorium and similar laws of general application relating to or affecting
      creditor's rights and general equity principles.

    

    3.4
       ECONOMIC
      BENEFITS. To the best of his knowledge, Seller is not aware of any present
      facts
      or any pending events, which would prevent the Buyer from realizing the economic
      benefits associated with the Goodwill in the same manner as presently enjoyed
      by
      the Seller.

    

    3.5
      NO
      CONFLICTS. The execution and delivery of this Agreement by Seller does not,
      and
      his consummation of the transactions contemplated hereby does not and will
      not,
      violate or conflict with, or result (with the giving of notice or the lapse
      of
      time or both) in the violation of or constitute a default under any provision
      of, or result in the acceleration or termination of or entitle any party to
      accelerate or terminate (whether after giving of notice or lapse of time or
      both), any obligation or benefit under, or result in the creation or imposition,
      lien, pledge, security interest or other encumbrance upon the Goodwill pursuant
      to any material contract, law, ordinance, regulation, order, arbitration award,
      judgment or decree to which the Seller is a party or by which he or his
      respective assets (including the Goodwill) are bound and to his knowledge,
      does
      not and will not violate or conflict with any other material restriction of
      any
      kind or character to which the Seller is subject or by which his assets
      (including the Goodwill) may be bound.

    

    4.
       REPRESENTATIONS
      AND COVENANTS OF BUYER.
      The
      Buyer represents and warrants as follows:

    

    4.1
      EXISTENCE AND GOOD STANDING. The Buyer has been duly organized and validly
      exists in good standing under the laws of the State of Georgia.

    

    4.2
       NO
      DEFAULT. The execution of this Agreement by the Buyer and the performance of
      its
      obligations hereunder will not violate or result in a breach of or constitute
      a
      default under the Buyer's partnership agreement, as amended, or any material
      agreement to which the Buyer is a party or by which it or its assets are
      bound.

     

    
      
        
          Initials:
            ______

          Initials:
            ______

        

        
        

      

      
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                    DVERB
                      MEDIA ASSETS & GOODWILL 

                    PURCHASE
                      AGREEMENT 

                  
	 	
                    Exhibit
                      10.3 10-Q

                  

          

           

        

      

    

    4.3
      APPROVAL AND AUTHORIZATION. The execution and delivery of this Agreement and
      the
      performance of the transactions contemplated herein have been duly and validly
      authorized by all necessary action on the part of the Buyer and is a legal,
      valid and binding obligation of the Buyer, enforceable against the Buyer in
      accordance with its terms subject to bankruptcy, insolvency, reorganization,
      moratorium and similar laws of general application relating to or affecting
      creditor's rights and general equity principles.

    

    5.
       PRESERVATION
      AND MAINTENANCE OF GOODWILL.
      The
      Seller shall cooperate with the Buyer after the Closing Date in connection
      with
      all reasonable actions deemed necessary by the Buyer to transition the economic
      value of the Goodwill to the Buyer.

    

    6.
      SURVIVAL.
      The
      representations, warranties, covenants and agreements of the Parties contained
      in this Agreement or in any writing delivered pursuant to the provisions of
      this
      Agreement or in connection with this Agreement shall survive the Closing Date
      and for three (3) years thereafter, and shall not be affected by any examination
      made on behalf of the Parties.

    

    7.
      GENERAL.

    

    7.1
       FURTHER
      ASSURANCES. The Seller will cooperate with the Buyer on and after the Closing
      Date in furnishing information and other assistance in connection with any
      actions, proceedings, arrangements or disputes of any nature with respect to
      matters pertaining to all periods prior to the Closing Date and will take or
      cause to be taken such further action, and will execute, deliver and file such
      further documents and instruments as the Buyer reasonably requests in order
      to
      effectuate fully the purposes, terms and conditions of this
      Agreement.

    

    7.2
      ASSIGNMENT: BINDING EFFECT. This Agreement and the rights of the Buyer hereunder
      may be assigned by the Buyer. This Agreement and the rights of the Seller
      hereunder may not be assigned by Seller. This Agreement shall be binding upon
      and shall inure to the benefit of the Parties hereto, the successors and assigns
      of the Buyer and the heirs, beneficiaries and legal representatives of the
      Seller.

    

    7.3
       EXECUTION.
      This Agreement may be executed simultaneously in two or more counterparts,
      each
      of which shall be deemed an original and all of which together shall constitute
      but one and the same instrument. Execution and delivery of this Agreement by
      delivery of a facsimile copy bearing the facsimile signature of a party shall
      constitute a valid and binding execution and delivery of this Agreement by
      such
      party. Such facsimile copies shall constitute enforceable original
      documents.

    

    7.4
       BROKERS.
      Each party represents and warrants that it employed no broker or agent in
      connection with this transaction and agrees to indemnify the other against
      all
      loss, cost, damage or expense arising out of claims for fees or commissions
      of
      brokers or agents employed or alleged to have been employed by such indemnifying
      party.

     

    
      
        
          Initials:
            ______

          Initials:
            ______

        

        
        

      

      
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                  DVERB
                    MEDIA ASSETS & GOODWILL 

                  PURCHASE
                    AGREEMENT 

                
	 	
                  Exhibit
                    10.3 10-Q

                

        

         

      

    

    7.5
       NOTICES.
      Any notice or communication required or permitted hereunder shall be
      sufficiently given if sent by first class mail, postage prepaid:

    

    (a)
      If to
      Buyer, addressed to it at:

    

    101
      Marietta Street, NW

    Centennial
      Tower, Suite 2600

    Atlanta,
      GA 30303

    Telephone
      #: (404) 230-5705

    Facsimile
      #: (404) 230-5710

    

    (b)
      If to
      the Sellers, addressed to him at:

    519
      Connally Street, S.E.

    Atlanta,
      GA 30312

    
 

    7.6
      APPLICABLE LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE
      INTERNAL LAWS OF THE STATE OF GEORGIA WITHOUT REGARD TO SUCH STATE'S CONFLICTS
      OF LAWS OR CHOICE OF LAW RULES.

    

    7.7
       CAPTIONS.
      The captions in this Agreement are for convenience only and shall not be
      considered a part hereof or affect the construction or interpretation of any
      provisions of this Agreement.

    

    7.8
       ENTIRE
      AGREEMENT. This Agreement (including the schedules and annexes hereto) and
      the
      documents delivered pursuant hereto or in connection herewith constitute the
      entire agreement and understanding between the Seller and the Buyer and
      supersedes any prior agreement and understanding, written or oral, relating
      to
      the subject matter of this Agreement. The Seller acknowledges that he has (a)
      had the opportunity to seek the advice of independent counsel, including
      independent tax counsel, regarding the consequences of this Agreement; and
      (b)
      received no representations from the Buyer or its counsel regarding the tax
      consequences of this Agreement. This Agreement may be modified or amended only
      by a written instrument executed by the Parties.

    

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

     

     

    
      	SELLER:	 	BUYER:
	
            	 	
            
	DVERB MEDIA GROUP,
              INC.	 	WINSONIC DIGITAL MEDIA GROUP,
              LTD.
	
            	 	
            
	By: _________________________	 	By:
              _______________________________
	
              James
                E. Thomas 

            	 	
              Winston
                Johnson

            
	
              President

            	 	
              Chairman/CEO

            

    

     

    
      
        
          Initials:
            ______

          Initials:
            ______

        

        
        

      

      
        Page
          4 of
          4Unassociated Document

    
      Exhibit
        10.5 10-Q

    

     

      

     

    LOAN
      AGREEMENT AND SECURITY ASSIGNMENT

     

    This
      loan
      agreement and security assignment ("Agreement") is entered into on this 30th
      day
      of April 2008 by and between WinSonic Digital Media Group, Ltd. (“WinSonic” or
“Obligor”) with an office located at 101 Marietta Street, NW, Suite 2600,
      Atlanta, Georgia
      30303
      and in
      the Event of Default (as defined below) Winston Johnson, an individual residing
      at 1341
      Audubon Court SW, Atlanta, Georgia 30311
      and
      First Philadelphia, LLC , having offices at 400 Viewpoint Lane, Front Royal,
      Virginia 22630, MarchFive Associates, LLC having offices at 3795 Redcoat Way,
      Alpharetta, Georgia 30022, Crystal Beach Web Solutions, LLC, having offices
      at
      P.O. Box 71, 300 Florida Blvd., Crystal Beach, Florida 34681, Blue Ridge Allied
      Technical Services, having offices at P.O. Box 1683, Blue Ridge, Georgia 30513,
      David D. Lasier, having his principal residence at 16 Dinghy Court, Salem,
      South
      Carolina, 29676, Debra McNew, having her principal residence at 5010 Hurt Bridge
      Drive, Cumming, Georgia 30028, and Kevin O’Quinn, having his principal residence
      at 81 Heather Lane, Blue Ridge, Georgia 30513 (collectively
      "Obligee"):

     

    1. Loan
      Amount: Obligee
      hereby agrees to lend to Obligor the sum of One Hundred and Sixteen Thousand,
      Eight Hundred Ninety Seven and Twenty Three One Hundredth’s Dollars
      ($116,897.23)
      (the
“Loan Amount”), and Obligor does hereby borrow and promise to repay this Senior
      Debt Loan Amount and to be retired by the earlier of (1) close of the Company’s
      next Funding of a minimum of $3.0 million, or (2) for the amounts on the dates
      as provided for below, for which each payment shall reduce the Loan Amount
      pro
      rata ("Installment Payments"). Either of (1) or (2) above shall be defined
      as
      the “Due Date”. 

    

    Obligor
      and Obligee acknowledge that Obligor with the execution of this Note has, within
      three business days therefrom, paid in legally available funds the amount of
      ten
      percent (10%) of the original total amount outstanding, or $8,067.80, net of
      applicable withholding taxes, owing by Obligor to Obligee.

    

    Obligee
      agrees that payments made pursuant to this Note, shall be paid to First
      Philadelphia, LLC, on behalf of the all of the parties comprising Obligee,
      which
      in turn shall distribute the respective amounts paid to the respective
      party.

    

    A. Definition
      Funding:

    

    1. Senior
      Debt: WinSonic debt instruments that provide financing take primary security
      against either specific or all assets of Obligor, have fixed terms of repayment
      and charge fixed or floating interest rates.  Debt that must be repaid
      before subordinated debt receives any payment in the event of default. 
Debt whose terms in the event of bankruptcy, require it to be repaid before
      subordinated debt receives any payment; or

     

    
      
        Loan
          Security

        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
       

      Exhibit
        10.5 10-Q

    

     

    2. Equity
      Securities: WinSonic securities whether they be in the form of common or
      preferred equity or any instrument convertible into common or preferred
      equity.

    

    B. Definition
      Installment Payments:

    

    1. Ten
      percent (10%) of the Loan Amount, or $9,400.52 on the May 31, 2008;

    2. Twenty
      percent (20%) of the Loan Amount, or $20,133.77 on June 30, 2008; 

    3. Fifty
      percent (50%) of the Loan Amount, or $47,002.60 on July 31, 2008;
      and

    4. Ten
      percent (10%) of the Loan Amount, or $9,400.52 on August 15, 2008.

    

    2.
      Payroll
      Taxes:
      Obligor
      and Obligee agree that of the payments made pursuant to this Note, that Obligor
      shall first offset said respective payment by any applicable payroll tax, if
      any.

    

    3.
      Interest:
       The
      loan
      shall bear 6% interest per annum up to and including the Due Date. If
      the
      loan is not paid by the (“Due Date”), the unpaid balance (principal and
      interest) shall bear interest at the rate
      of
      12% per annum until paid in full. Interest
      on this Note shall be payable monthly on the last Business Day of each calendar
      month (commencing April 30, 2008 and upon the Due Date). 

    

    4.
      Security
      & Assignment:
      

    

    Grant
      of
      Security Interest. As an inducement for the Obligor to purchase the Notes and
      to
      secure the complete and timely payment, performance and discharge in full,
      as
      the case may be, of all of the Obligations, WinSonic hereby, unconditionally
      and
      irrevocably, pledges, grants and hypothecates to the Obligee, a continuing
      security interest in and to the Collateral (the “Security Interest”).

    

    “Collateral”
      means the collateral in which the Obligee is granted a security interest by
      this
      Agreement and which shall include the following, whether presently owned or
      existing or hereafter acquired or coming into existence, and all additions
      and
      accessions thereto and all substitutions and replacements thereof, and all
      proceeds, products and accounts thereof, including, without limitation, all
      proceeds from the sale or transfer of the Collateral and of insurance covering
      the same and of any tort claims in connection therewith:

     

    A. All
      Goods
      of Obligor, including, without limitations, all machinery, equipment, computers,
      motor vehicles, trucks, tanks, boats, ships, appliances, furniture, special
      and
      general tools, fixtures, test and quality control devices and other equipment
      of
      every kind and nature and wherever situated, together with all documents of
      title and documents representing the same, all additions and accessions thereto,
      replacements therefor, all parts therefor, and all substitutes for any of the
      foregoing and all other items used and useful in connection with the Company’s
      businesses and all improvements thereto (collectively, the “Equipment”);
      and

     

    B. All
      Receivables of Obligor, including all insurance proceeds, and rights to refunds
      or indemnification whatsoever owing, together with all instruments, all
      documents of title representing any of the foregoing, all rights in any
      merchandising, goods, equipment, motor vehicles and trucks which any of the
      same
      may represent, and all right, title, security and guaranties with respect to
      each Receivable.

     

    
      
        Loan
          Security

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      Exhibit
        10.5 10-Q

       

    

    In
      the
      Event of Default, pursuant to and as defined in the Note, by WinSonic, Winston
      D. Johnson, personally guarantees the Loan Amount pursuant to the Note, plus
      the
      12% interest (the “Default Rate”). 

    

    Further,
      in the Event of Default, pursuant to the Note, then Obligor shall additionally
      owe Mr. David D. Lasier the amount of $100,750.00, pursuant to the provisions
      of
      the employment agreement entered into between WinSonic and Mr. Lasier, for
      a
      then total amount owing pursuant to the Note of $120,900.00, for which the
      Loan
      Amount shall be increased accordingly.

    

    5.
      Warranties
      of Obligor:
      Obligor
      warrants and represents that it has full power and authority to enter into
      this
      agreement and that this agreement is not in violation of any other agreement
      nor
      of any covenant or restriction contained in any agreement to which Obligor
      is
      bound. 

    

    Obligor
      further warrants that WinSonic has obtained all requisite corporate authority
      and approval, and has complied with the necessary corporate formalities in
      entering into this Agreement.

    

    Obligor
      also warrants that it will not obtain Funding that would prohibit the repayment
      of this obligation. This Agreement is intended to be retired by the Obligor’s
      next Funding, or pursuant to the Installment Payments, and is required to be
      repaid before other debt receives any payment.

     

    6.
      Further
      Documents:
      Obligor
      agrees to execute such other and further documents as shall be reasonable
      necessary or required by Obligee to carry out the provisions of this
      agreement.

     

    7.
      Collection
      Costs: In
      the
      event that Obligee shall be required to take legal action to enforce the
      provisions hereof, Obligee shall be entitled to recover all costs of collection,
      including reasonable attorney's fees and costs, whether or not a legal
      proceeding is commenced, if the Obligation is not paid as and when
      due.

    

    8.
      Miscellaneous:
      This
      agreement shall be governed by Georgia Law and any action to enforce the
      provisions hereof shall be resolved by binding and expedited Arbitration in
      accordance with the rules and procedures of the American Arbitration Association
      (AAA) in Fulton County, Georgia, with a limited right of discovery consisting
      of
      not more that two depositions and one set each of written requests for
      admissions, production of documents, form interrogatories and special
      interrogatories in compliance with the Code of Civil Procedure. In the event
      any
      provision hereof is declared to be invalid or unenforceable, the parties agree
      in good faith to replace said provision with a valid and enforceable provision
      that as nearly as possible reflects the agreement and intent of the parties
      hereunder. This Agreement may not be modified except by a written instrument
      executed by both parties. This Agreement shall be binding upon and inure to
      the
      benefit of the parties and their respective heirs, representatives and
      assigns.

     

    These
      signatures of the parties below confirm the foregoing as their entire
      understanding and agreement, superseding all prior representations,
      understandings and agreements, written or oral, between the
      parties.

     

    Executed
      this ________ day of April, 2008. 

     

    WinSonic
      Digital Media Group, Ltd. (Obligor) 

     

    
      
        Loan
          Security

        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
       

      Exhibit
        10.5 10-Q

       

    

    By:_________________________________  

    Winston
      D. Johnson, Chairman and CEO 

    

    By:_________________________________  

    Winston
      D. Johnson 

    1341
      Audubon Court SW

    Atlanta,
      Georgia 30311

    

    (Obligee)

     

    By:
      __________________________

    Thomas
      P.
      Tanis, Jr., Chairman

    First
      Philadelphia, LLC

    

    By:
      __________________________

    Phillip
      Griffith

    MarchFive
      Associates 

    

    By:
      __________________________

    Raymond
      Cannon

    Crystal
      Beach Web Solutions, LLC 

    

    By:
      __________________________

    Kevin
      O’Quinn

    Blue
      Ridge Allied Technical Services 

    

    By:
      __________________________

    David
      D.
      Lasier 

    

    By:
      __________________________

    Debra
      McNew 

    

    By:
      __________________________

    Kevin
      O’Quinn

    

    
      
        Loan
          Security

        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Exhibit
      10.5 10-Q

     

      

    

    PROMISSORY
      NOTE

    (the
      “Note”)

     

    
      
        
          	U.S. $116,897.23	 	Atlanta, Georgia
	 	 	April 30,
                  2008

        

      

    

     

     

    FOR
      VALUE
      RECEIVED, WINSONIC DIGITAL MEDIA GROUP, INC., a corporation organized under
      the
      laws of the State of Nevada (“WinSonic” or “Obligor”), and in the Event of
      Default (as defined below) Winston Johnson, an individual residing at
1341
      Audubon Court SW, Atlanta, Georgia 30311,
      hereby
      promises to pay to the order of First Philadelphia, LLC, having offices at
      400
      Viewpoint Lane, Front Royal, Virginia 22630, MarchFive Associates, LLC having
      offices at 3795 Redcoat Way, Alpharetta, Georgia 30022, Crystal Beach Web
      Solutions, LLC, having offices at P.O. Box 71, 300 Florida Blvd., Crystal Beach,
      Florida 34681, Blue Ridge Allied Technical Services, having offices at P.O.
      Box
      1683, Blue Ridge, Georgia 30513, David D. Lasier, having his principal residence
      at 16 Dinghy Court, Salem, South Carolina, 29676, Debra McNew, having her
      principal residence at 5010 Hurt Bridge Drive, Cumming, Georgia 30028, and
      Kevin
      O’Quinn, having his principal residence at 81 Heather Lane, Blue Ridge, Georgia
      30513 (collectively, the “Obligee”) in lawful money of the United States of
      America in immediately available funds transmitted via electronic bank wire
      transfer the Loan Amount, as defined below, on the Due Date as defined below.
      The respective components of the Loan Amount are detailed for each of the
      parties listed above under the Obligee are provided for and incorporated herein
      on Exhibit A.

     

    1. Loan
      Amount: Obligee
      hereby agrees to lend to Obligor the sum of One Hundred and Sixteen Thousand,
      Eight Hundred Ninety Seven and Twenty Three One Hundredth’s Dollars
      ($116,897.23)
      (the
“Loan Amount”), and Obligor does hereby borrow and promise to repay this Senior
      Debt Loan Amount and to be retired by the earlier of (1) close of the Company’s
      next Funding of a minimum of $3.0 million, or (2) for the amounts on the dates
      as provided for below, for which each payment shall reduce the Loan Amount
      pro
      rata ("Installment Payments"). Either of (1) or (2) above shall be defined
      as
      the “Due Date”. 

    

    Obligor
      and Obligee acknowledge that Obligor with the execution of this Note has, within
      three business days therefrom, paid in legally available funds the amount of
      ten
      percent (10%) of the original total amount outstanding, or $8,067.80, net of
      applicable withholding taxes, owing by Obligor to Obligee.

    

    Obligee
      agrees that payments made pursuant to this Note, shall be paid to First
      Philadelphia, LLC, on behalf of the all of the parties comprising Obligee,
      which
      in turn shall distribute the respective amounts paid to the respective
      party.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Exhibit
        10.5 10-Q

       

    

    A. Definition
      Funding:

    

    1. Senior
      Debt: WinSonic debt instruments that provide financing take primary security
      against either specific or all assets of Obligor, have fixed terms of repayment
      and charge fixed or floating interest rates.  Debt that must be repaid
      before subordinated debt receives any payment in the event of default. 
Debt whose terms in the event of bankruptcy, require it to be repaid before
      subordinated debt receives any payment; or

    

    2. Equity
      Securities: WinSonic securities whether they be in the form of common or
      preferred equity or any instrument convertible into common or preferred
      equity.

    

    B. Definition
      Installment Payments:

    

    1. Ten
      percent (10%) of the Loan Amount, or $9,400.52 on the May 31, 2008;

    2. Twenty
      percent (20%) of the Loan Amount, or $20,133.77 on June 30, 2008; 

    3. Fifty
      percent (50%) of the Loan Amount, or $47,002.60 on July 31, 2008;
      and

    4. Ten
      percent (10%) of the Loan Amount, or $9,400.52 on August 15, 2008.

    

    2.
      Payroll
      Taxes:
      Obligor
      and Obligee agree that of the payments made pursuant to this Note, that Obligor
      shall first offset said respective principal payment by any applicable payroll
      tax, if any.

     

    3.
      Interest:
       The
      loan
      shall bear 6% interest per annum up to and including the Due Date. If
      the
      loan is not paid by the Due Date, the unpaid balance (principal and interest)
      shall bear interest at the rate of 12% per annum until paid in full.
Interest
      on this Note shall be payable monthly on the last Business Day of each calendar
      month (commencing April 30, 2008 and upon the Due Date). 

    

    4.
      Security
      & Assignment:
      

    

    Grant
      of
      Security Interest. As an inducement for the Obligor to purchase the Notes and
      to
      secure the complete and timely payment, performance and discharge in full,
      as
      the case may be, of all of the Obligations, WinSonic hereby, unconditionally
      and
      irrevocably, pledges, grants and hypothecates to the Obligee, a continuing
      security interest in and to the Collateral (the “Security Interest”).

    

    “Collateral”
      means the collateral in which the Obligee is granted a security interest by
      this
      Agreement and which shall include the following, whether presently owned or
      existing or hereafter acquired or coming into existence, and all additions
      and
      accessions thereto and all substitutions and replacements thereof, and all
      proceeds, products and accounts thereof, including, without limitation, all
      proceeds from the sale or transfer of the Collateral and of insurance covering
      the same and of any tort claims in connection therewith:

     

    A. All
      Goods
      of Obligor, including, without limitations, all machinery, equipment, computers,
      motor vehicles, trucks, tanks, boats, ships, appliances, furniture, special
      and
      general tools, fixtures, test and quality control devices and other equipment
      of
      every kind and nature and wherever situated, together with all documents of
      title and documents representing the same, all additions and accessions thereto,
      replacements therefor, all parts therefor, and all substitutes for any of the
      foregoing and all other items used and useful in connection with the Company’s
      businesses and all improvements thereto (collectively, the “Equipment”);
      and

     

    
      
        Promissory
          Note

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      Exhibit
        10.5 10-Q

       

    

    B. All
      Receivables of Obligor, including all insurance proceeds, and rights to refunds
      or indemnification whatsoever owing, together with all instruments, all
      documents of title representing any of the foregoing, all rights in any
      merchandising, goods, equipment, motor vehicles and trucks which any of the
      same
      may represent, and all right, title, security and guaranties with respect to
      each Receivable.

     

    Upon
      the
      occurrence of any of the following specified events (each an “Event of
      Default):

     

    a)  The
      Obligor shall (i) default the payment then due of any principal of any of this
      Note; or (ii) default, and such default shall continue unremedied for five
      or
      more Business Days in the payment when due of any interest on this Note or
      the
      principal hereof;

     

    b)  One
      or
      more judgments or decrees shall be hereafter entered against the Obligor or
      any
      of WinSonic subsidiaries, involving in the aggregate for the Obligor and its
      subsidiaries, the liability (if not fully covered by insurance) of $100,000
      or
      more;

     

    c)  The
      Obligor or any of WinSonic subsidiaries shall hereafter incur any indebtedness
      senior to the indebtedness under this Note;

     

    d)  Obligor,
      or any of WinSonic subsidiaries makes a general assignment of substantially
      all
      of its assets for the benefit of creditors, or a
      petition in bankruptcy or under any insolvency law is filed by or against
      Obligor or any WinSonic subsidiaries and such petition is not dismissed within
      sixty (60) days after it has been filed;.

     

    e)  In
      the
      event of the sale of substantially all of the assets of the Obligor or, if
      the
      successor is not as financially secure as the Obligor, upon the merger,
      consolidation or reorganization of the Obligor or any of WinSonic subsidiaries
      or there is a change in control of the Obligor or any of WinSonic
      subsidiaries.

     

    then,
      upon the occurrence of any such Event of Default, and at any time thereafter,
      if
      any Event of Default shall then be continuing; then the Obligee may declare
      that
      the entirety of the principal hereof, and the interest due hereunder, to be
      immediately due and payable. Further Obligee shall immediately foreclose on
      the
      Collateral to which Obligor shall not impede in any fashion; Obligee’s rights to
      liquidate said Collateral in any order of priority Obligee believes in its
      best
      interest to collect the total obligation of Obligor as provided for
      herein.

    

    In
      the
      event of default by WinSonic, Winston D. Johnson, personally guarantees the
      Loan
      Amount pursuant to the Note, plus the 12% interest (the “Default Rate”).

    

    Further,
      in the Event of Default, then Obligor shall additionally owe Mr. David D. Lasier
      the amount of $100,750.00, pursuant to the provisions of the employment
      agreement entered into between WinSonic and Mr. Lasier, for a then total amount
      owing pursuant to this Note for Mr. Lasier of $120,900.00, for which the Loan
      Amount shall be increased accordingly.

     

    
      
        Promissory
          Note

        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      Exhibit
        10.5 10-Q

       

    

    The
      Obligor shall have the right to prepay the principal amount of this Note at
      any
      time, or from time to time, without penalty or premium, provided that each
      such
      payment shall be with accrued interest to the date of prepayment.

     

    A
      Business Day when used herein shall mean any day other than a Saturday, Sunday
      or a day on which commercial banks are closed in the City of Atlanta. If a
      payment is due hereunder on a day which is not a Business Day then payment
      shall
      be made on the preceding Business Day.

     

    Any
      fees,
      including attorney’s fees of the Obligee, costs or expenses incurred by the
      Obligee in collecting or enforcing the obligations of the Obligor under this
      Note shall be due and payable by the Obligor when incurred after notice thereof
      to Obligor. Any unpaid portion of the amounts set forth in the preceding
      sentence shall bear interest at the Default Rate.

     

    Any
      notice required or permitted hereunder shall be in writing and delivered either
      personally or in writing, by certified mail, return receipt requested or by
      facsimile transmission, or via the Internet at the addresses set forth at the
      outset hereof or to such other address as either shall give notice to the
      other.

     

    
      	To the Obligee:	 	To the
              Obligor(s):
	
            	 	
            
	Mr. Thomas P. Tanis, Jr.	 	Mr. Winston Johnson 
	First Philadelphia, LLC	 	WinSonic Digital Media Group,
              Ltd.
	Phone: (540) 636-4190	 	Phone: (404)-230-5705 
	Fax: (540) 636-3360	 	Cell: (404)
              202-6396
	Email: ttanis@hughes.net 	 	Fax::  (404)
              230-5710
	 	 	
              Email:
                winston@winsonic.net

            

    

    

    The
      Obligor hereby waives presentment, demand protest or notice of any kind in
      connection with this Note.

     

    
      	 	 	 
	 	WINSONIC DIGITAL MEDIA GROUP, LTD.
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
Winston
              Johnson, Chief Executive
              Officer

    

    
       

      
        	 	 	 
	 	WINSTON JOHNSON
	 
 	 
 	 
 
	
              	By:  	 
	 	
                
Winston
                Johnson

      

       

      
        
          Promissory
            Note

          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      
         

        Exhibit
          10.5 10-Q

      

    

    

    ACKNOWLEDGMENT

    

    )

    )
      ss.

    
      	 	
              )

            

    

    

    Before
      me, the undersigned, a Notary Public in and for said Fulton County and State
      of
      Georgia on this _________________, 2008, personally appeared Winston D.
      Johnson,
      to me
      known to be the identical person who subscribed his name to the foregoing
      instrument and acknowledged to me that he executed the same as his free and
      voluntary act and deed for the uses and purposes therein set forth.

    

    Witness
      my hand and seal the day and year set forth above.

     

    

    __________________________________

    Notary
      Public

    My
      Commission Expires:

    

    

    ___________________________

     

    
      
        Promissory
          Note

        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    OBLIGEES
      & AMOUNTS DUE

     

    
      
        	
                Name

              	 	
                Gross
                  Amount Due $

              	 	
                Gross
                  Less Prior Payment Net Amount

              	 	
                Net
                  Amount (exclude Payroll Taxes as Applicable)

              	 	
                Less
                  Prior In-Process Payment $ *

              	 	
                Net
                  $ Amount Loan To Pay

              	 	
                10%
                  Upfront Date

              	 	
                Date
                  maining Due & Pay

              	 	
                Due
                  May 31, 2008

              	 	
                 

                Due
                  June 30, 2008 

              	 	
                Due
                  July 31, 2008

              	 	
                Due
                  Aug. 15, 2008

              	 
	 	 	 	 	 	 	 	 	 	 	 	 	
                10.0%

              	 	
                90.0%

              	 	
                10.0%

              	 	
                20.0%

              	 	
                50.0%

              	 	
                10%

              	 
	
                First
                  Philadelphia, LLC

              	 	 	
                17,729.23

              	 	 	
                14,729.23

              	 	 	
                17,729.23

              	 	 	
                3,000.00

              	 	 	
                14,729.23

              	 	 	
                1,472.92

              	 	 	
                13,256.31

              	 	 	
                1,472.92

              	 	 	
                2,945.85

              	 	 	
                7,364.62

              	 	 	
                1472.923

              	 
	
                MarchFive
                  Associates, LLC

              	 	 	
                15,000.00

              	 	 	
                15,000.00

              	 	 	
                15,000.00

              	 	 	 	 	 	
                15,000.00

              	 	 	
                1,500.00

              	 	 	
                13,500.00

              	 	 	
                1,500.00

              	 	 	
                3,000.00

              	 	 	
                7,500.00

              	 	 	
                1500

              	 
	
                Crystal
                  Beach Web Solutions, LLC

              	 	 	
                4,762.30

              	 	 	
                4,762.30

              	 	 	
                4,762.30

              	 	 	 	 	 	
                4,762.30

              	 	 	
                476.23

              	 	 	
                4,286.07

              	 	 	
                476.23

              	 	 	
                952.46

              	 	 	
                2,381.15

              	 	 	
                476.23

              	 
	
                Blue
                  Ridge Allied Technical Services

              	 	 	
                1,164.70

              	 	 	
                664.70

              	 	 	
                1,164.70

              	 	 	
                500.00

              	 	 	
                664.70

              	 	 	
                66.47

              	 	 	
                598.23

              	 	 	
                66.47

              	 	 	
                132.94

              	 	 	
                332.35

              	 	 	
                66.47

              	 
	
                Kevin
                  O'Quinn

              	 	 	
                8,089.76

              	 	 	
                8,089.76

              	 	 	
                6,305.11

              	 	 	 	 	 	
                6,305.11

              	 	 	
                630.51

              	 	 	
                5,674.60

              	 	 	
                630.51

              	 	 	
                1,261.02

              	 	 	
                3,152.56

              	 	 	
                630.51125

              	 
	
                David
                  D. Lasier 1 **

              	 	 	
                50,301.24

              	 	 	
                49,801.24

              	 	 	
                36,016.62

              	 	 	
                500.00

              	 	 	
                35,516.62

              	 	 	
                3,551.66

              	 	 	
                31,964.96

              	 	 	
                3,551.66

              	 	 	
                7,103.32

              	 	 	
                17,758.31

              	 	 	
                3551.662

              	 
	
                David
                  D. Lasier 2

              	 	 	
                20,150.00

              	 	 	
                20,150.00

              	 	 	
                13,327.24

              	 	 	 	 	 	
                13,327.24

              	 	 	
                0.00

              	 	 	
                13,327.24

              	 	 	
                1,332.72

              	 	 	
                3,998.17

              	 	 	
                6,663.62

              	 	 	
                1332.724224

              	 
	
                Debbie
                  McNew 3

              	 	 	
                4,200.00

              	 	 	
                3,700.00

              	 	 	
                4,200.00

              	 	 	
                500.00

              	 	 	
                3,700.00

              	 	 	
                370.00

              	 	 	
                3,330.00

              	 	 	
                370.00

              	 	 	
                740.00

              	 	 	
                1,850.00

              	 	 	
                370

              	 
	
                TOTAL

              	 	 	
                121,397.23

              	 	 	
                116,897.23

              	 	 	
                98,505.20

              	 	 	
                4,500.00

              	 	 	
                94,005.20

              	 	 	
                8,067.80

              	 	 	
                85,937.41

              	 	 	
                9,400.52

              	 	 	
                20,133.77

              	 	 	
                47,002.60

              	 	 	
                9,400.52

              	 

      

    

     

    
      
        Promissory
          Note

        
        

      

      
        6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]