EXHIBIT 10.1
AMENDMENT NO. 1
TO
AGREEMENT AND PLAN OF
REORGANIZATION
This Amendment No. 1 (this
“Amendment”), dated as of January 9 th ,
2007 to that certain Agreement and Plan of Reorganization (the
“Agreement”), dated as of July 26, 2006, is made and
entered into by and among, PSI Corporation (f/k/a Friendlyway
Corporation), a Nevada corporation (“ PSI
”), Big Fish Marketing Group, Inc., a Colorado corporation
(“ Big Fish ”) and the stockholders of
Big Fish identified in the signature page hereto (the “
Stockholders ”). Capitalized terms not
defined herein shall have the meanings given to them in the
Agreement.
Whereas, as an inducement to Big Fish and the
Stockholders to forbear until February 7, 2007 from taking any
legal action to collect any unpaid Cash Consideration scheduled to
be paid prior to the date hereof, (which forbearance is hereby
acknowledged and agreed by Big Fish and the Stockholders), the
parties desire to amend the Agreement to provide certain additional
rights to Big Fish and the Stockholders.
Now, therefore, PSI, Big Fish and the
Stockholders have agreed to amend the Agreement on the terms and
conditions set forth below.
(a)
Termination and Unwinding
of Agreement . Section 8 of the Agreement is hereby deleted in
its entirety and in substitution thereof the following new Section
8 is hereby added:
“ 8A.
Termination and Unwinding of
Transaction .
(i) The parties acknowledge that Big Fish
is engaging in this transaction expecting that PSI will achieve
certain financial objectives with respect to sales and gross
revenues. Accordingly, the parties agree that, if PSI’s total
gross revenues as of the first anniversary of the Closing Date (the
“Performance Date”) are less than $2,858,345.00, Big
Fish shall have the limited unilateral right to terminate and
unwind this transaction. In the event Big Fish elects to terminate
this transaction, it shall, within thirty (30) days after the
Performance Date, provide PSI with written notice of such election.
The date on which such election notice is received by PSI is
hereafter referred to as the “Notice Date.” Within
sixty (60) days after the Notice Date, (i) PSI shall return all of
the Assets to Big Fish, (ii) Big Fish shall return the Stock
Consideration and any Contingent Stock Consideration to PSI; and
(iii) each party will execute and deliver all other documents
required by paragraph 12 of this Agreement ((i), (ii) and (iii) are
collectively the “ Unwinding Procedures
”).
(ii) In addition, Big Fish may elect to
terminate and unwind the transactions contemplated by this
Agreement upon the occurrence of either the following
events:
a. Any "Person" (as defined in Section 13(d)(3)
under the Securities Exchange Act of 1934, as amended (the
"Exchange Act")), other than Ken Upcraft