Document:

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                                                                   EXHIBIT 10.29

                                 March 18, 2003

Mr. George Wallner
Hypercom Corporation
2851 West Kathleen Road
Phoenix, Arizona  85053

            Re: New Consulting Relationship

Dear George:

      First, we want to thank for your years of service in helping to build
Hypercom Corporation into a worldwide leader in point of sale systems. Your
expertise, vision and leadership have been instrumental.

      We look forward to your continued assistance in strategic and other
matters, in your new position as a principal consultant to the Company.

      We believe this will permit you the freedom to explore new avenues for us,
without the encumbrances of an officer position.

      With this in mind, the following sets forth our new arrangement with you:

1.    New Positions with the Company.

      (a)   You will serve as a consultant to the Company, advising the Chief
            Executive Officer on such strategic, product, market and other
            issues as he may request from time to time. You will work and
            communicate directly with the CEO, and such others, inside and
            outside the Company, as the CEO shall direct. You will be free to
            pursue other interests in addition to your consulting duties;
            however, your other interests shall not conflict with your
            non-compete, confidentiality and other obligations under this
            Agreement and must enable you to fulfill your consulting duties
            under this Agreement. You recognize, and agree, that contacts from
            the media, analysts, customers, or others regarding the Company, its
            operations or affairs shall be directed to the CEO, unless he has
            given prior specific authorization.

      (b)   We accept your resignation from the position of Chief Strategist and
            employee. You agree to provide whatever transitional assistance is
            required in connection with the termination of your employment
            (including removal from signing authority with respect to bank
            accounts, contracts and similar matters).

2.    Compensation. We will pay you the following compensation for your
      consulting services during the term of this Agreement:

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      (a)   You will receive a consulting fee at the rate of $250,000 per year,
            payable on the same regular payroll dates as our employees as in
            effect from time to time;

      (b)   You may participate in the Company's medical plan, if you remain
            eligible. If you are not eligible to participate in our plan, at our
            election, we will provide you, at our expense, with an alternative
            plan providing comparable benefits, or will reimburse you for COBRA
            payments for up to 18 months; and

      (c)   We will also pay or reimburse you for all ordinary and necessary
            business expenses incurred or paid by you in furtherance of the
            Company's business if approved in advance by the CEO.

3.    Term. This agreement will become effective upon your signature and will
      terminate on the second anniversary of that date, unless we each elect to
      renew it. We may terminate this Agreement at any time if you breach any of
      the terms of this Agreement. It will automatically terminate upon your
      death or disability. You may terminate this Agreement at any time. Upon
      any termination, we will pay you or your estate through the date of
      termination.

4.    Covenant Not to Compete; Confidentiality. During the term of this
      Agrement, you agree to the non-competition and non-solicitation
      limitations (standard form), and other provisions of Annex A, and the
      Company's standard form of confidentiality agreement attached as Annex B,
      to be signed concurrently with this letter agreement.

5.    Release. We and you agree to release one another, and in your case you
      also agree to release our officers, directors and agents, from (and each
      of us agrees not to sue the other in regard to) any claims, damages or
      penalties, as well as any attorneys' fees and costs, relating to or
      arising out of the change in your status from an officer/employee to a
      consultant, as described in this Agreement. This release is not a release
      of any claims in the future relating to our respective obligations under
      this Agreement.

6.    Time Period of Considering or Canceling This Agreement. You acknowledge
      that you have been advised to retain an attorney, and have been offered a
      period of time of at least 21 days to consider whether to sign this
      Agreement, which you have waived, and the Company agrees that you may
      cancel this Agreement at any time during the 7 days following the date on
      which this Agreement has been signed by both you and the Company. In order
      to cancel or revoke this Agreement, you must deliver to the CEO of the
      Company written notice stating that you are canceling or revoking this
      Agreement. If this Agreement is timely cancelled or revoked, none of the
      provisions of this Agreement shall be effective or enforceable and the
      Company shall not be obligated to make any payments to you or to provide
      you with the other benefits described in this Agreement.

7.    No Derogatory Comments. Each party agrees that, as part of the
      consideration for this Agreement, they will not make disparaging or
      derogatory remarks, whether oral or written, about the other party and, in
      the case of the Company, its various officers, directors, employees and
      other representatives.

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8.    General.

      (a)   No Assignment. This Agreement and all rights and obligations are
            personal to you and may not be assigned by you without the Company's
            consent.

      (b)   Notices. Any notice, election or communication to be given under
            this Agreement shall be in writing and delivered in person or
            deposited, certified or registered, in the United States mail,
            postage prepaid, addressed as follows:

            If to the Company:

            2851 West Kathleen Road
            Phoenix, Arizona  85053
            Attn:  Chief Executive Officer

            If to you:

            Mr. George Wallner
            1928 Sunset Harbor Dr.
            Miami, Florida 33139

            or to such other addresses as the Company or you may from time to
            time designate by notice hereunder. Notices will be effective upon
            delivery in person or upon receipt of any facsimile or e-mail, or at
            midnight on the fourth business day after the date of mailing, if
            mailed.

      (c)   Entire Agreement. This Agreement embodies the full and complete
            understanding and agreement of the Company and you with respect to
            the subject matter, and replaces all prior understandings or
            agreements whether oral or in writing. This Agreement may be amended
            and its provisions waived only by a writing signed by you and the
            Company. This Agreement may be executed in different counterparts,
            each of which will be considered a duplicate original. Annex A and B
            are made a part of this Agreement and are incorporated by reference.

      (d)   Arbitration. Any controversy relating to this Agreement or relating
            to the breach hereof shall be settled by arbitration conducted in
            Phoenix, Arizona in accordance with the Commercial Arbitration Rules
            of the American Arbitration Association then in effect. The award
            rendered by the arbitrator(s) shall be final and judgment upon the
            award rendered by the arbitrator(s) may be entered upon it in any
            court having jurisdiction thereof. The arbitrator(s) shall have the
            powers to issue mandatory orders and restraining orders in
            connection with such arbitration. The expenses of the arbitration
            shall be borne by the losing party. This agreement to arbitrate
            shall be specifically enforceable under the prevailing arbitration
            law. During the continuance of any arbitration proceedings, the
            parties shall suspend their respective obligations, except for the
            provisions of paragraphs 4 and 5. In this regard, nothing in this
            Agreement precludes the Company from seeking equitable relief,
            including injunction or specific performance, in any court having

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            jurisdiction, in connection with the non-compete, assignment of
            inventions, confidentiality and standstill provisions.
            Notwithstanding anything to the contrary herein, absent malicious
            misconduct on your part, your liability for monetary damages under
            this Agreement shall not exceed $500,000.

      (e)   Governing Law. This Agreement shall be governed by and interpreted
            in accordance with the laws of the State of Arizona without respect
            to conflict of law principles.

      (f)   The Company. The "Company" or "we" shall mean Hypercom Corporation
            and its subsidiaries, successors and permitted assigns.

      George, please sign in the space below and return a signed copy to my
attention. On behalf of the entire Company, I want to again thank you for your
years of dedicated service and contributions to the Company. We look forward to
continuing to work with you in your new capacity.

                                    Very truly yours,

                                    Hypercom Corporation

                                    By: /s/ C.S. Alexander
                                        ---------------------------------
                                    Its: Chief Executive Officer

ACCEPTED:

/s/ George Wallner
------------------------------------
George Wallner

------------------------------------
Date:

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<PAGE>

                                     ANNEX A

                         (Non-Compete and Related Terms)

1.    Subject to the provisions of Sections 3 and 4 of this Agreement, during
      the term of this Agreement (including any renewal term), you shall not,
      directly or indirectly, for your own benefit or for, with or through any
      other individual, firm, corporation, partnership or other entity, whether
      acting in an individual, fiduciary or other capacity, (i) own, manage,
      operate, control, advise, invest in (except as a 1% or less shareholder of
      a public company), loan money to, or participate or assist in any way in
      the ownership, management, operation or control of or be associated as a
      director, officer, employee, partner, consultant, advisor, creditor,
      agent, independent contractor or otherwise with, or acquiesce in the use
      of your name by, any business enterprise that is in competition with the
      Company within the United States of America or any other country that the
      Company conducts business, or (ii) solicit or otherwise encourage or
      entice any of the Company's employees or consultants to leave or terminate
      their employment with the Company.

2.    You agree that the Company owns all patent rights, copyrights, trade
      secret rights, mask work rights, trademark rights, and all other
      intellectual and industrial property rights of any sort throughout the
      world relating to any and all inventions (whether or not patentable),
      works of authorship, mask works, designations, designs, know-how, ideas
      and information made or conceived or reduced to practice by you at any
      time prior to and during the term of this Agreement, that relate to the
      Company's products or potential products and improvements or any Company
      confidential information. You agree to promptly disclose and provide all
      such inventions to the Company. As work made for hire, you will make all
      assignments necessary to vest ownership of them in the Company. You also
      agree to assist the Company (and appoint Company as your agent and
      attorney in fact) to further record and perfect such assignments and to
      enforce and defend any rights assigned. .

3.    You and the Company consider the restrictions contained in subparagraphs 1
      and 2 above to be reasonable for the purpose of preserving the Company's
      rights and interests. If a court makes a final judicial determination that
      any of these restrictions are unreasonable or otherwise unenforceable
      against you, you and the Company agree to modify the provisions held to be
      unenforceable to preserve each party's anticipated benefits to the maximum
      extent legal.

4.    You agree that the Company's remedies at law for breach of any of the
      provisions of this Annex A would be inadequate. Therefore, you agree that
      in the event of a breach by you of the provisions in this Annex A, the
      Company shall be entitled to, in addition to its remedies at law and
      without posting any bond, equitable relief in the form of specific
      performance, a temporary restraining order, a preliminary and/or permanent
      injunction, or any other equitable remedy that may then be available. You
      further agree that you will not oppose the Company's request for such
      equitable relief. Notwithstanding anything to the contrary herein, absent
      malicious misconduct on your part, your liability for monetary damages
      under this Agreement shall not exceed $500,000.

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                                     ANNEX B

                         MUTUAL NON-DISCLOSURE AGREEMENT

On this 18th day of March, 2003, Hypercom Corporation, a Delaware corporation,
including its worldwide, wholly-owned subsidiaries, with headquarters at 2851
West Kathleen Road, Phoenix, Arizona 85053 ("Hypercom") and George Wallner, an
individual residing at 1928 Sunset Harbor Dr., Miami, Florida 33139
("Individual"), agree as follows:

1. For use in discussions between the parties concerning a potential business
relationship, and/or in the conduct of business between the parties, (the
"Purposes") either party may disclose to the other certain information which it
deems proprietary or confidential, and may include, but is not limited to,
discoveries, ideas, concepts, know-how, intellectual property, techniques,
designs, specifications, drawings, blueprints, diagrams, flow charts, data,
costs, prices, customer lists, marketing plans, goals, sales figures, revenue,
profits, and other technical, financial or business information respecting
existing or planned business, products, services, point of sale terminals,
network access controllers, integrated enterprise network devices, and/or
telecommunications devices or software which has been or may be developed,
manufactured, or marketed by either party (the "Information"). Information shall
be deemed confidential and proprietary and subject to restricted use and limited
distribution as provided herein if plainly marked "confidential" or
"proprietary" or with language of similar meaning, or otherwise disclosed under
circumstances which reasonably suggest the confidential nature of the
Information, whether provided in written, encoded, graphic or other tangible
form, including any electronic or magnetic form. Information provided orally
shall also be deemed confidential and proprietary if identified as such at the
time of disclosure and confirmed in writing to be so by the disclosing party
(Discloser) to the receiving party (Recipient) at the time of disclosure or
within a reasonable time thereafter.

2. With respect to Information provided by either party to the other, Recipient
shall:

      a. hold Information in confidence and protect it with the same degree of
      care with which it protects its own Information of like importance, but in
      no event less than reasonable care;

      b. use Information only for the Purposes described in Section 1, except as
      otherwise provided by prior written agreement between the parties;

      c. except for use consistent with Section 1, not copy or otherwise
      duplicate Information, or knowingly allow its copying or duplication
      without Discloser's prior written approval;

      d. segregate such Information and not commingle it with the Information of
      others;

      e. restrict disclosure of Information to those employees with a need to
      know and who are notified of, and required to comply with, this Agreement
      by contract, employee policies, work rules or other appropriate methods,
      and not disclose it to any third party;

      f. limit disclosure to subcontractors, consultants, agents and the like to
      a need-to-know basis and not disclose unless and until a confidentiality
      agreement expressing substantially the same terms contained in this
      Agreement is executed by the person prior to receiving the Information;

      g. not reverse engineer, decompile, disassemble, duplicate performance
      characteristics of, or create derivative works based upon, the
      Information;

      h. promptly and informatively notify Discloser in the event Recipient
      appears likely to become compelled, or in the opinion of counsel prudently
      should, according to law, regulation, or judicial, administrative or
      governmental proceeding, disclose any of Discloser's Information, so
      Discloser, at its expense, may seek a protective order or other
      appropriate remedy and/or waive compliance with this Agreement. Recipient
      shall reasonably cooperate with Discloser in connection with seeking

<PAGE>

      such a court order or other remedy as Discloser may reasonably request, at
      Discloser's expense, and Recipient agrees to fully comply with any such
      protective order or other remedy; and

      i. treat any doubtful information as confidential and proprietary until
      any doubts concerning its nature are resolved after reasonable inquiry.

3. Upon Discloser's written request, Recipient shall: (1) promptly return any
and all Information along with any copies, variations or derivative works,
whether or not authorized, and/or (2) provide a corporate officer's written
certification that all notes, memoranda, analyses, reports, evaluations or other
documents or data created, developed, modified or otherwise generated by
Recipient or at its request, involving Information whether in tangible form or
in electronic or magnetic storage format, have been destroyed.

4. Recipient has no obligation to preserve the confidential or proprietary
nature of Information which:

      a. is already known to Recipient;

      b. is or becomes generally known to the public through no wrongful act of
      Recipient;

      c. is received by Recipient from a third party without either an
      obligation of non-disclosure or breach of an obligation of confidentiality
      in such third party's receipt or transmission of the Information;

      d. is independently developed by Recipient, or for Recipient by a third
      party which has not had any access whatsoever to the Information; or

      e. is approved in advance for release by written authorization of an
      officer of Discloser.

5. Individual shall not issue a press release, public announcement or other
statement concerning Hypercom, its operations or affairs, without Hypercom's
prior written consent. Hypercom shall not issue a press release, public
announcement or other statement mentioning Individual by name without his prior
written consent.

6. Each party shall be entitled at any time, and without notice to the other
party, to negotiate, disclose and otherwise deal in any manner and for any
purpose with third parties regarding its own Information.

7. Nothing contained in this Agreement shall be construed as, and there is no
granting or conferring to Recipient, whether by sale, license or otherwise, any
right, title or interest in any Information, nor in any intellectual property of
Discloser.

8. Recipient acknowledges the Information is valuable property of Discloser and
Recipient's breach or threatened breach of this Agreement would cause
irreparable injury for which remedies at law alone would be inadequate. In
addition to all other remedies available as a result of breach or threatened
breach of this Agreement, a party injured hereunder shall have the right to seek
equitable and injunctive relief, and the Recipient in such an action hereby
waives any requirement for posting of a bond or security.

9. Both parties represent the Information provided is believed by Discloser to
be generally accurate; however, in no event shall Discloser, its directors,
officers, agents or employees be liable for errors, omissions or inaccuracies of
any kind in the Information and Recipient shall be responsible for verifying the
accuracy of the Information disclosed. NO WARRANTY OF ANY KIND IS GIVEN
REGARDING THE INFORMATION, THE SAME BEING AS IS, WHERE IS AND WITH ALL FAULTS,
AND THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, TO
THE EXTENT APPLICABLE, ARE EXCLUDED. THE FOREGOING IN NO WAY MODIFIES THE
RETENTION BY DISCLOSER OF ALL RIGHT, TITLE AND INTEREST IN THE INFORMATION
DISCLOSED BY SUCH PARTY.

10. This Agreement shall inure and accrue to the benefit and detriment of, and
be binding upon, the parties' successors and assigns; however, no disclosure of
Information may be made to any of Recipient's successors or assigns without
Discloser's prior, express written consent, which shall not be unreasonably

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withheld. For purposes of this paragraph, reorganization of Recipient's
corporate structure does not create an unauthorized assignment. However, in the
event such a reorganization results in a competitor or potential competitor of
Discloser having access to Discloser's Information, Recipient shall immediately
notify Discloser in writing of such reorganization. Within thirty (30) days of
receipt of such notice, Discloser shall notify Recipient whether Recipient shall
be allowed continued use or access to Information pursuant to this Agreement, or
whether Recipient shall return and/or certify destruction of any Information in
its possession, consistent with Section 3.

11. This Agreement shall be governed, construed and interpreted exclusively in
accordance with the laws of the State of Arizona, United States of America,
applicable to transactions wholly performed within Arizona and without regard to
choice of law provisions. Notwithstanding the preceding sentence, either party
may bring an action in any jurisdiction or forum provided such action is solely
to enjoin the actual or anticipated wrongful disclosure of any Information with
respect to which such party is the initial Discloser, and the jurisdiction and
forum is that in which the wrongful disclosure has or is anticipated to occur.
If any provision of this Agreement shall be held by a court of competent
jurisdiction to be illegal, invalid or unenforceable, the remaining provisions
shall remain in full force and effect.

12. This Agreement shall be effective on the date first shown above and both the
Agreement and duties of confidentiality shall continue for a period of three (3)
years after the last disclosure of Information, after which the duties of each
party with respect to the Information shall be governed by applicable law,
except in the case of product and software design specifications for which the
obligations shall continue until the occurrence of any circumstances listed in
Section 4, and except for the duty to return or destroy Information pursuant to
Section 3.

13. No waiver of any breach hereof shall constitute a waiver of any subsequent
breach. No waiver of any breach or modification or amendment hereto shall be
effective unless in writing referring hereto and signed by the waiving party.

14. This Agreement represents the full and complete agreement of the parties
with respect to the use and confidentiality of Information and supersedes all
prior communications, agreements or proposals with respect to such subject
matter. All Information disclosed between the parties subsequent to the
effective date hereof shall be covered hereby unless expressly stated to the
contrary, in a writing referencing this Agreement, signed by the Discloser at
the time of disclosure.

ACCEPTED AND AGREED TO AS OF THE DATE FIRST SHOWN ABOVE.

HYPERCOM CORPORATION                      GEORGE WALLNER
"Hypercom"                                "Individual"

By: /s/ C.S. Alexander                    /s/ George Wallner
   ---------------------------------      ------------------------------------

Name: C.S. Alexander
     -------------------------------

Title: Chairman and CEO
      ------------------------------

Telephone:                                Telephone:
          --------------------------                --------------------------

Facsimile:                                Facsimile:
          --------------------------                --------------------------

                                       3<PAGE>

                              SMARTDISK CORPORATION

                               SECOND AMENDMENT TO

                         SERIES A REDEEMABLE CONVERTIBLE

                       PREFERRED STOCK PURCHASE AGREEMENT

      THIS SECOND AMENDMENT (this "Amendment"), is made and entered into as of
the 21st day of February, 2003, among SMARTDISK CORPORATION, a Delaware
corporation (the "Company"), on the one hand, and ADDISON M. FISCHER and PHOENIX
HOUSE INVESTMENTS, LP (collectively the "Investors" and each individually an
"Investor"), on the other hand.

                                    RECITALS

      A. The Company and the Investors are parties to that certain Series A
Redeemable, Convertible Preferred Stock Purchase Agreement dated as of December
9, 2002 (the "Purchase Agreement"), pursuant to which the Company agreed to
issue and sell to the Investors 2,552,364.8 shares (the "Shares") of Series A
Redeemable Convertible Preferred Stock par value $.001 per share (the "Preferred
Stock"), at a per share purchase price of $1.00.

      B. The Company and the Investors amended the Purchase Agreement pursuant
to that certain First Amendment to Series A Redeemable Convertible Preferred
Stock Purchase Agreement dated as of December 24, 2002 (the "First Amendment").

      C. The transactions contemplated by the Purchase Agreement and the First
Amendment were consummated on December 24, 2002, and the Company and the
Investors desire to amend the Purchase Agreement and First Amendment to revise
the terms of the Preferred Stock.

      D. Pursuant to Section 5.06 of the Purchase Agreement and Section 2.04 of
the First Amendment, modification or amendment to the Purchase Agreement or the
First Amendment requires the written consent of the Company and the Investors.

      E.  The Company and the Investors desire to amend the Purchase
Agreement and the First Amendment as provided herein;

      F.  Capitalized terms used herein and not otherwise defined herein
shall have the meanings assigned to them in the Purchase Agreement.

                                    AGREEMENT

      NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained in this Agreement and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound, the parties agree as follows:

                                   ARTICLE 1

      1.01 Amendment. The Company shall file an Amended and Restated Certificate
of Designations with respect to the Preferred Stock in the form attached hereto
as Exhibit A (the "Amended and Restated Certificate of Designations"). The
Company and the Investors agree to the amended and restated terms of the
Preferred Stock as set forth on Exhibit A. The Investors shall retain their
certificates evidencing the Shares purchased at the Closing and agree that upon
filing of the Amended and Restated Certificate of Designations, such
certificates shall evidence the rights, obligations, and preferences, and other
terms of the Preferred Stock as set forth on Exhibit A.
<PAGE>
      1.02 Representations and Warranties. The Company hereby represents and
warrants to each Investor as follows:

                  (a) the execution and delivery by the Company of this
Amendment, and the performance by the Company of its obligations hereunder, have
been authorized by all requisite corporate action and will not (x) violate (i)
any provision of any applicable law, or any order of any court or other agency
of government applicable to the Company, (ii) the Certificate of Incorporation
or Bylaws of the Company, (iii) any provision of any material agreement or other
instrument to which the Company is bound, or (iv) any Marketplace Rule of the
NASDAQ Stock Market applicable to the listing of the Company's Common Stock; or
(y) conflict with, result in a breach of, or constitute (with due notice or
lapse of time or both) a default under any such material agreement, other
instrument, or any Marketplace Rule of the NASDAQ Stock Market applicable to the
listing of the Company's Common Stock.

                  (b) The tender of shares of Preferred Stock as payment of the
subscription price for the purchase of shares of the Company's Common Stock
pursuant to the Company's pending rights offering, as further described in
Amendment No. 1 to the Registration Statement on Form S-1 (Reg. No. 333-99727),
without such tender having been approved by the Company's stockholders, will not
violate or conflict with any Marketplace Rule of the NASDAQ Stock Market
applicable to the listing of the Company's Common Stock.

      1.03 Force and Effect. Except to the extent expressly modified above, the
Purchase Agreement and the First Amendment shall remain in full force and effect
as originally executed.

                                   ARTICLE 2

      2.01 Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of Florida for all purposes and in all
respects, without regard to the conflict of law provisions of such state.

      2.02 Entire Agreement. This Amendment, the Purchase Agreement, the First
Amendment, the Registration Rights Agreement, and the Amended and Restated
Certificate of Designations constitute the sole and entire agreement of the
parties with respect to the subject matter hereof.

      2.03 Counterparts. This Amendment may be executed in counterparts, each of
which shall be deemed an original, but all of which together shall constitute
the same instrument.

      2.04 Amendments and Waivers. This Amendment may be amended or modified,
and provisions hereof may be waived, with the written consent of the Company and
the Investors.

      2.05 Titles and Subtitles. The titles and subtitles used in this Amendment
are for convenience only and are not to be considered in construing or
interpreting any term or provision of this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
      IN WITNESS WHEREOF, the Company and the Investors have executed this
Amendment as of the date first above written.

                                    THE COMPANY:

                                    SMARTDISK CORPORATION

                                    By: /s/ Michael S. Battaglia
                                       ---------------------------------------
                                       Michael S. Battaglia, President
                                        and Chief Executive Officer

                                    THE INVESTORS:
                                    /s/ Addison M. Fischer
                                    ------------------------------------------
                                    ADDISON M. FISCHER, individually

                                    PHOENIX HOUSE INVESTMENTS, LP

                                       By: PHOENIX HOUSE INVESTMENTS GP, INC.,
                                           its general partner

                                           By: /s/ Addison M. Fischer
                                              ---------------------------------
                                              Addison M. Fischer, President

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