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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to Section 13 or 15(d) </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>of
      the Securities Exchange Act of 1934</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Date
      of Report (Date of earliest event reported): April 27,
      2006</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong><u>friendlyway
      Corporation </u></strong></font></div>
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      name of Registrant as Specified in its Charter) </font></div>
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                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Nevada</strong></font></div>
            </td>
            <td width="2%">&#160;</td>
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            <td width="2%">&#160;</td>
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            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                (State or Other Jurisdiction of </font></div>
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                or Organization)&#160;</font></div>
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            <td width="2%">&#160;</td>
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                file number)</font></div>
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            <td width="2%">&#160;</td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(I.R.S.
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1255
      Battery Street, Suite 200</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>San
      Francisco, California 94111</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>(415)
      288-3333 </u></strong></font></div>
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      Telephone Number, Including Area Code) </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="FONT-FAMILY: Wingdings">o</font>&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="FONT-FAMILY: Wingdings">o</font>&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      2.01 </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 45pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Completion
      of Acquisition or Disposition of Assets</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      May 2,
      2006, friendlyway Corporation (the &#8220;Company&#8221;) completed the acquisition of
      Pantel Systems, Inc., a Nevada corporation, pursuant to a Share Exchange
      Agreement (the &#8220;Agreement&#8221;) dated April 27, 2006 with Pantel Systems, Inc. and
      Kenneth J. Upcraft, its sole stockholder. The Business provides e-Banking kiosks
      systems and services to its customers. Under the terms of the Agreement, Mr.
      Upcraft has exchanged all of his shares of capital stock of Pantel Systems,
      Inc.
      for 20,000,000 shares of common stock of the Company, of which 5,000,000 shares
      are being held in escrow pursuant to the terms of an Escrow Agreement among
      the
      parties. The Company has assumed the liabilities of Pantel Systems, Inc.
      pursuant to the Agreement. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Farrand
      Investment Bankers acted as the financial advisor to the Company in connection
      with the foregoing Share Exchange Agreement and received compensation in the
      form of common stock of the Company in an amount equal to 5,753,635
      shares.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      purchase price was determined in arms-length negotiations between the parties.
      The assets acquired in this acquisition include without limitation office
      equipment, computer hardware and software, supplies, customer accounts,
      contracts, permits and licenses, trade secrets and other proprietary
      information. The assets will continue to be used in the Company&#8217;s business.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      terms
      and conditions of the foregoing are more fully set forth in the Share Exchange
      Agreement and Escrow Agreement, copies of which are attached hereto as Exhibits
      2.1 and 10.1, respectively. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      full
      text of a press release issued by the Company on May</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,
      2006
      regarding the foregoing is attached as Exhibit 99.1.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      3.02</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Unregistered
      Sales of Equity Securities</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      29, 2006, the Company entered into a Common Stock Purchase Agreement and Warrant
      Agreement for the sale of $350,000 of its common stock and warrants to certain
      purchasers. The registrant sold 2,740,000 restricted shares of its common stock
      at purchase prices ranging from $0.10 to $0.25 per share. Four of the five
      purchasers also received five-year warrants to purchase an aggregate of
      2,620,000 shares of common stock at exercise prices ranging from $0.10 to $0.25
      per share. The warrants are subject to the terms and conditions of the form
      of
      Warrant attached hereto as Exhibit 10.4. The terms of the foregoing financing
      transaction are more fully set forth in the Common Stock Purchase Agreement
      attached hereto as Exhibit 10.3.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Farrand
      Investment Bankers acted as the financial advisor to the Company in connection
      with the foregoing Share Exchange Agreement and received compensation in the
      form of common stock of the Company in an amount equal to 5,753,635
      shares.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      issuance of the shares of common stock and warrants was exempt from the
      registration requirements under the Securities Act of 1933, as amended (the
      &#8220;Securities Act&#8221;), pursuant to Section 4(2) thereof. Each of the purchasers and
      Farrand Investment Bankers represented to the Company its status as an
&#8220;accredited investor&#8221;, as that term is defined in Rule 501 promulgated under the
      Securities Act. Each of the purchasers and Farrand Investment Bankers
      represented his or its intention to acquire such shares for investment only
      and
      not with a view to sell such shares in connection with any distribution thereof,
      and an appropriate restrictive legend was affixed to the stock
      certificates.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.02 Departure of Directors or Principal Officers; Election of Directors;
      Appointment of Principal Officers.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      27, 2006, Mr. Upcraft was appointed the Company&#8217;s President and Chief Executive
      Officer and a director and has entered into an Employment Agreement with the
      Company for his services, including a confidentiality agreement and covenant
      not
      to compete with the Company. The Employment Agreement has a term of two years
      and provides for annual base salary compensation in the amount of $200,000,
      bonus compensation and a performance award payable on an earn-out basis for
      a
      period of three years. The amount of future consideration, if any, to be paid
      by
      the Company to Mr. Upcraft under the performance award will be based on the
      gross profits of Pantel Systems, Inc. Mr. Upcraft is eligible to participate
      in
      the Company&#8217;s insurance, benefit and compensation plans available to employees
      generally, including the Company&#8217;s stock option plan. The terms of Mr. Upcraft&#8217;s
      employment are more fully set forth in the Employment Agreement with the Company
      attached hereto as Exhibit 10.2.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><br></font>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since
        its
        inception in February 2005, Mr. Upcraft has served as president and chief
        executive of Pantel Systems, Inc. Mr. Upcraft served as president of USURF
        America, Inc. from April 2002 until August 2004. Mr. Upcraft served as vice
        president of Netbeam from February 2001 until March 2002. From June 1993
        until
        March 2001, Mr. Upcraft operated a consultancy focused on providing professional
        services to telecommunications and Internet service providers, including
        wireless Internet access providers.</font></div>
    </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Concurrently
      with the appointment of Mr. Upcraft, Alexander von Welczeck has resigned as
      the
      Company&#8217;s Chief Executive Officer.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      9.01. Financial Statements and Exhibits.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)
      &#160;&#160;&#160;Exhibits. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following are filed as exhibits to this report on Form 8-K: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;2.1</font></div>
              </td>
              <td align="left" valign="top" width="88%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Share
                  Exchange Agreement dated as of April 27, 2006 among friendlyway
                  Corporation, Pantel Systems, Inc. and Kenneth J. Upcraft
                  </font></div>
              </td>
            </tr>
            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="7%">&#160;</td>
              <td align="left" valign="top" width="88%">&#160;</td>
            </tr>
            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></div>
              </td>
              <td align="left" valign="top" width="88%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Escrow
                  Agreement among friendlyway Corporation, Kenneth J. Upcraft and
                  Law
                  Offices of Michael H. Hoffman, P.A., as escrow agent </font></div>
              </td>
            </tr>
            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="7%">&#160;</td>
              <td align="left" valign="top" width="88%">&#160;</td>
            </tr>
            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.2</font></div>
              </td>
              <td align="left" valign="top" width="88%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employment
                  Agreement between friendlyway Corporation and Kenneth J.
                  Upcraft</font></div>
              </td>
            </tr>
            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="7%">&#160;</td>
              <td align="left" valign="top" width="88%">&#160;</td>
            </tr>
            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.3</font></div>
              </td>
              <td align="left" valign="top" width="88%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Common Stock Purchase Agreement dated as of April 29, 2006
                  </font></div>
              </td>
            </tr>
            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="7%">&#160;</td>
              <td align="left" valign="top" width="88%">&#160;</td>
            </tr>
            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.4</font></div>
              </td>
              <td align="left" valign="top" width="88%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Warrant Agreement dated as of April 29, 2006</font></div>
              </td>
            </tr>
            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="7%">&#160;</td>
              <td align="left" valign="top" width="88%">&#160;</td>
            </tr>
            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
              </td>
              <td align="left" valign="top" width="88%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  release dated May 2, 2006</font></div>
              </td>
            </tr>
            <tr>
              <td width="5%">&#160;</td>
              <td align="left" valign="top" width="7%">&#160;</td>
              <td align="left" valign="top" width="88%">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div>&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FRIENDLYWAY
                CORPORATION</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(Registrant)</em></font></div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font size="2">Dated: May 3, 2006</font></td>
            <td>&#160;</td>
            <td>&#160;</td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td>&#160;</td>
            <td>&#160;</td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;Kenneth
              J. Upcraft</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <div>
                <hr style="COLOR: black" align="left" noshade size="2" width="80%">
              </div>
              <div>&#160;</div>
              <div><font size="2">Kenneth J. Upcraft</font></div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: "><em>President
              and
              Chief Executive Officer</em></font></td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INDEX
      TO EXHIBITS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibits
      </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
        <div align="left">
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td width="5%">&#160;</td>
                <td align="left" valign="top" width="7%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;2.1</font></div>
                </td>
                <td align="left" valign="top" width="88%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Share
                    Exchange Agreement dated as of April 27, 2006 among friendlyway
                    Corporation, Pantel Systems, Inc. and Kenneth J. Upcraft
                    </font></div>
                </td>
              </tr>
              <tr>
                <td width="5%">&#160;</td>
                <td align="left" valign="top" width="7%">&#160;</td>
                <td align="left" valign="top" width="88%">&#160;</td>
              </tr>
              <tr>
                <td width="5%">&#160;</td>
                <td align="left" valign="top" width="7%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></div>
                </td>
                <td align="left" valign="top" width="88%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Escrow
                    Agreement among friendlyway Corporation, Kenneth J. Upcraft and
                    Law
                    Offices of Michael H. Hoffman, P.A., as escrow agent </font></div>
                </td>
              </tr>
              <tr>
                <td width="5%">&#160;</td>
                <td align="left" valign="top" width="7%">&#160;</td>
                <td align="left" valign="top" width="88%">&#160;</td>
              </tr>
              <tr>
                <td width="5%">&#160;</td>
                <td align="left" valign="top" width="7%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.2</font></div>
                </td>
                <td align="left" valign="top" width="88%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employment
                    Agreement between friendlyway Corporation and Kenneth J.
                    Upcraft</font></div>
                </td>
              </tr>
              <tr>
                <td width="5%">&#160;</td>
                <td align="left" valign="top" width="7%">&#160;</td>
                <td align="left" valign="top" width="88%">&#160;</td>
              </tr>
              <tr>
                <td width="5%">&#160;</td>
                <td align="left" valign="top" width="7%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.3</font></div>
                </td>
                <td align="left" valign="top" width="88%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
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                </td>
              </tr>
              <tr>
                <td width="5%">&#160;</td>
                <td align="left" valign="top" width="7%">&#160;</td>
                <td align="left" valign="top" width="88%">&#160;</td>
              </tr>
              <tr>
                <td width="5%">&#160;</td>
                <td align="left" valign="top" width="7%">
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                </td>
                <td align="left" valign="top" width="88%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
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                </td>
              </tr>
              <tr>
                <td width="5%">&#160;</td>
                <td align="left" valign="top" width="7%">&#160;</td>
                <td align="left" valign="top" width="88%">&#160;</td>
              </tr>
              <tr>
                <td width="5%">&#160;</td>
                <td align="left" valign="top" width="7%">
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
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                </td>
              </tr>
              <tr>
                <td width="5%">&#160;</td>
                <td align="left" valign="top" width="7%">&#160;</td>
                <td align="left" valign="top" width="88%">&#160;</td>
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{"company-data": {"conformed-name": "Friendlyway CORP", "cik": "0000888702", "assigned-sic": "9995", "irs-number": "880270266", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-20317", "film-number": "06805124"}, "business-address": {"street1": "1244 MAIN STREET", "city": "LINFIELD", "state": "PA", "zip": "19498", "phone": "6104958413"}, "mail-address": {"street1": "1255 BATTERY STREET", "street2": "SUITE 200", "city": "SAN FRANCISCO", "state": "CA", "zip": "94111"}, "former-company": [{"former-conformed-name": "BIOFARM INC", "date-changed": "19981123"}, {"former-conformed-name": "GLOBAL SPILL MANAGEMENT INC /NV/", "date-changed": "19930328"}]}
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d)
of
      the Securities Exchange Act of 1934
Date
      of Report (Date of earliest event reported): April 27,
      2006
friendlyway
      Corporation
(Exact
      name of Registrant as Specified in its Charter)
Nevada
0-20317
88-0270266
(State or Other Jurisdiction of
Incorporation
                or Organization)
(Commission
                file number)
(I.R.S.
                Employer Identification Number)
1255
      Battery Street, Suite 200
San
      Francisco, California 94111
(Address
      of Principal Executive Offices including Zip Code)
(415)
      288-3333
(Registrant's
      Telephone Number, Including Area Code)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions:
o
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
o
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
o
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
o
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
Item
      2.01
Completion
      of Acquisition or Disposition of Assets
On
      May 2,
      2006, friendlyway Corporation (the "Company") completed the acquisition of
      Pantel Systems, Inc., a Nevada corporation, pursuant to a Share Exchange
      Agreement (the "Agreement") dated April 27, 2006 with Pantel Systems, Inc. and
      Kenneth J. Upcraft, its sole stockholder. The Business provides e-Banking kiosks
      systems and services to its customers. Under the terms of the Agreement, Mr.
      Upcraft has exchanged all of his shares of capital stock of Pantel Systems,
      Inc.
      for 20,000,000 shares of common stock of the Company, of which 5,000,000 shares
      are being held in escrow pursuant to the terms of an Escrow Agreement among
      the
      parties. The Company has assumed the liabilities of Pantel Systems, Inc.
      pursuant to the Agreement.
Farrand
      Investment Bankers acted as the financial advisor to the Company in connection
      with the foregoing Share Exchange Agreement and received compensation in the
      form of common stock of the Company in an amount equal to 5,753,635
      shares.
The
      purchase price was determined in arms-length negotiations between the parties.
      The assets acquired in this acquisition include without limitation office
      equipment, computer hardware and software, supplies, customer accounts,
      contracts, permits and licenses, trade secrets and other proprietary
      information. The assets will continue to be used in the Company's business.
The
      terms
      and conditions of the foregoing are more fully set forth in the Share Exchange
      Agreement and Escrow Agreement, copies of which are attached hereto as Exhibits
      2.1 and 10.1, respectively.
The
      full
      text of a press release issued by the Company on May
2,
      2006
      regarding the foregoing is attached as Exhibit 99.1.
Item
      3.02
Unregistered
      Sales of Equity Securities
On
      April
      29, 2006, the Company entered into a Common Stock Purchase Agreement and Warrant
      Agreement for the sale of $350,000 of its common stock and warrants to certain
      purchasers. The registrant sold 2,740,000 restricted shares of its common stock
      at purchase prices ranging from $0.10 to $0.25 per share. Four of the five
      purchasers also received five-year warrants to purchase an aggregate of
      2,620,000 shares of common stock at exercise prices ranging from $0.10 to $0.25
      per share. The warrants are subject to the terms and conditions of the form
      of
      Warrant attached hereto as Exhibit 10.4. The terms of the foregoing financing
      transaction are more fully set forth in the Common Stock Purchase Agreement
      attached hereto as Exhibit 10.3.
Farrand
      Investment Bankers acted as the financial advisor to the Company in connection
      with the foregoing Share Exchange Agreement and received compensation in the
      form of common stock of the Company in an amount equal to 5,753,635
      shares.
The
      issuance of the shares of common stock and warrants was exempt from the
      registration requirements under the Securities Act of 1933, as amended (the
      "Securities Act"), pursuant to Section 4(2) thereof. Each of the purchasers and
      Farrand Investment Bankers represented to the Company its status as an
"accredited investor", as that term is defined in Rule 501 promulgated under the
      Securities Act. Each of the purchasers and Farrand Investment Bankers
      represented his or its intention to acquire such shares for investment only
      and
      not with a view to sell such shares in connection with any distribution thereof,
      and an appropriate restrictive legend was affixed to the stock
      certificates.
Item
      5.02 Departure of Directors or Principal Officers; Election of Directors;
      Appointment of Principal Officers.
On
      April
      27, 2006, Mr. Upcraft was appointed the Company's President and Chief Executive
      Officer and a director and has entered into an Employment Agreement with the
      Company for his services, including a confidentiality agreement and covenant
      not
      to compete with the Company. The Employment Agreement has a term of two years
      and provides for annual base salary compensation in the amount of $200,000,
      bonus compensation and a performance award payable on an earn-out basis for
      a
      period of three years. The amount of future consideration, if any, to be paid
      by
      the Company to Mr. Upcraft under the performance award will be based on the
      gross profits of Pantel Systems, Inc. Mr. Upcraft is eligible to participate
      in
      the Company's insurance, benefit and compensation plans available to employees
      generally, including the Company's stock option plan. The terms of Mr. Upcraft's
      employment are more fully set forth in the Employment Agreement with the Company
      attached hereto as Exhibit 10.2.
2
Since
        its
        inception in February 2005, Mr. Upcraft has served as president and chief
        executive of Pantel Systems, Inc. Mr. Upcraft served as president of USURF
        America, Inc. from April 2002 until August 2004. Mr. Upcraft served as vice
        president of Netbeam from February 2001 until March 2002. From June 1993
        until
        March 2001, Mr. Upcraft operated a consultancy focused on providing professional
        services to telecommunications and Internet service providers, including
        wireless Internet access providers.
Concurrently
      with the appointment of Mr. Upcraft, Alexander von Welczeck has resigned as
      the
      Company's Chief Executive Officer.
Item
      9.01. Financial Statements and Exhibits.
(c)
         Exhibits.
The
      following are filed as exhibits to this report on Form 8-K:
2.1
Share
                  Exchange Agreement dated as of April 27, 2006 among friendlyway
                  Corporation, Pantel Systems, Inc. and Kenneth J. Upcraft
10.1
Escrow
                  Agreement among friendlyway Corporation, Kenneth J. Upcraft and
                  Law
                  Offices of Michael H. Hoffman, P.A., as escrow agent
10.2
Employment
                  Agreement between friendlyway Corporation and Kenneth J.
                  Upcraft
10.3
Form
                  of Common Stock Purchase Agreement dated as of April 29, 2006
10.4
Form
                  of Warrant Agreement dated as of April 29, 2006
99.1
Press
                  release dated May 2, 2006
3
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
FRIENDLYWAY
                CORPORATION
(Registrant)
Dated: May 3, 2006
By:
/s/ Kenneth
              J. Upcraft
Kenneth J. Upcraft
President
              and
              Chief Executive Officer
4
INDEX
      TO EXHIBITS
Exhibits
2.1
Share
                    Exchange Agreement dated as of April 27, 2006 among friendlyway
                    Corporation, Pantel Systems, Inc. and Kenneth J. Upcraft
10.1
Escrow
                    Agreement among friendlyway Corporation, Kenneth J. Upcraft and
                    Law
                    Offices of Michael H. Hoffman, P.A., as escrow agent
10.2
Employment
                    Agreement between friendlyway Corporation and Kenneth J.
                    Upcraft
10.3
Form
                    of Common Stock Purchase Agreement dated as of April 29, 2006
10.4
Form
                    of Warrant Agreement dated as of April 29, 2006
99.1
Press
                    release dated May 2, 2006