RE:Bad Bad Bad On August 29, 2013, the Company received notice fro
m Alimenation Couche-Tard ("Couche-Tard") alleging
the Company was in breach of
contractual obligations under the Virtual Private A
dvertising Network Services Agreement (“VPAN”) as f
ollows: (i) the Company had failed to
pay to Couche-Tard the minimum royalty due and paya
ble in July 2013 of $500,000; and, (ii) the Company
was deficient on maintaining
minimum standards of network servicing and repairs.
The Company is responding to the notice, to refute
specific allegations of open service
tickets numbers and to propose a payment plan. Unde
r the VPAN agreement the failure of the Company to
pay two consecutive years results in
the title to the Digital Network assets reverting t
o Couche-Tard.