AGREEMENT BETWEEN POWER PHONE INC. ("POWER") R.T. MARKETING, INC. ("RT") and H. GUS MECHALAS ("GM") FOR PURCHASE OF SOFTWARE FOR VALUE RECEIVED, the receipt of which is acknowledged by the undersigned, it is hereby agreed by and between the parties hereto as follows: 1. R.T. and GM hereby represent and warrant that RT is possessed of professional commercial grade computer software known as "ASAP" which is salable in the over-the-counter consumer software market having a minimum wholesale appraised value of one million five hundred thousand ($1,500,000). RT has full legal assignable title and unencumbered ownership of the "ASAP" software and has full authority and power to transfer such to POWER. 2. RT hereby transfers to POWER all rights, title and interest to the software known as "ASAP". RT, if needed, shall execute and transfer all documentation and items necessary to effectuate such transfer. 3. RT represents and warrants that the software is free of all liabilities and encumbrances. RT will hold POWER harmless from all claims and liabilities asserted against POWER in breach of this warranty and will make POWER whole for all damages and losses arising from such claims and liabilities. 4. In consideration for the transfer of the software to POWER, POWER hereby agrees to issue to RT fifty thousand (50,000) shares of Series A Redeemable Convertible Preferred Stock. 5. Each share of the Series A Preferred Stock shall be convertible into ten (10) common shares of POWER. 6. The Preferred Stock shall have a priority for dividends over the common stock of POWER. 7. The Preferred Stock is redeemable in whole or in part at any time, at the option of POWER, at a redemption price of twenty five dollars ($25.00) per share plus accrued and unpaid dividends, if such exist. 8. RT shall provide an appraisal of the software from a reputable appraiser. 9. Both parties have fully satisfied themselves as to the nature of this transaction together with its complete details and implications. 10. RT and GM agree to provide services to POWER and subsidiaries for a minimum of ten (10) years from the time this agreement becomes effective, as per consulting contract. They shall provide services part-time or full-time and from time to time or on a continuing basis as shall be required at POWER's sole determination all at a reasonable compensation as provided for in such consulting contract. IN WITNESS WHEREOF, the designated Officers of the respective corporations and GM have affixed their signatures and Corporate Seals on this 19th day of June, 1995. PHONE POWER, INC. R.T. MARKETING, INC. by: /s/Noah Steinberg by: /s/H. Gus Mechalas ------------------------- ------------------------------ Noah Steinberg, President H. Gus Mechalas /s/H. Gus Mechalas ------------------------------ H. Gus Mechalas ADDENDUM TO AGREEMENT BETWEEN POWER PHONE INC., R.T. MARKETING, INC. and H. GUS MECHALAS FOR PURCHASE OF SOFTWARE FOR VALUE RECEIVED, the receipt of which is acknowledged by the undersigned, it is hereby agreed by and between the parties hereto as follows: 1. As additional consideration for the transfer of the software to POWER, and in accordance with the letter of intent that provides for consideration from POWER in the amount of 80,000 preferred shares, POWER hereby agrees to issue to Beryl Wolk thirty thousand (30,000) shares of Series A Redeemable Convertible Preferred Stock. 2. Each share of the Series A Preferred Stock shall be convertible into ten (10) common shares of POWER. 3. The Preferred Stock shall have a priority for dividends over the common stock of POWER. 4. The Preferred Stock is redeemable in whole or in part at any time, at the option of POWER, at a redemption price of twenty five dollars ($25.00) per share plus accrued and unpaid dividends, if such exist. 5. These preferred shares are subject to restriction as to sale and convertibility to common stock for the period of two years from the time of their issuance. The preferred shares are further subject to cancellation as provided in the main agreement herein. IT WITNESS WHEREOF, the designated Officers of POWER and GM personally have affixed their signatures on this 19th day of June, 1995. PHONE POWER, INC. R.T. MARKETING, INC. by: /s/Noah Steinberg by: /s/H. Gus Mechalas ------------------------- ------------------------------ Noah Steinberg, President H. Gus Mechalas /s/H. Gus Mechalas ------------------------------ H. Gus Mechalas