Exhibits 10.1
 
AMENDMENT NO.1 TO
 
SECURITIES PURCHASE AGREEMENT
 
This AMENDMENT NO.1 TO SECURITIES PURCHASE AGREEMENT (this “Amendment”) dated as
of May 31, 2011 (the “Effective Date”) is entered into by and among Ads In
Motion, Inc., a Delaware corporation (the “Company”), and each of the several
purchasers signatory hereto (each such purchaser, an “Original Purchaser” and,
collectively, the “Original Purchasers”).
 
Recitals
 
WHEREAS, pursuant to an offering by the Company of its securities (the
“Offering”), the parties hereto entered into a Securities Purchase Agreement,
dated as of March 25, 2011 (the “Original Agreement”), pursuant to which the
Company sold to the Original Purchasers (i) Senior Subordinated Secured
Convertible Notes in the aggregate principal amount of $2,019,783 (the “Notes”);
(ii) five-year warrants to purchase an aggregate of 1,732,229 shares of common
stock at an initial exercise price of $0.67 per share (the “A Warrants”); and
(iii) five-year warrants to purchase an aggregate of 1,732,229 shares of common
stock at an initial exercise price of $0.73 per share (the “B Warrants” and
together with the A Warrants, the “Warrants”);
 
WHEREAS, as an incentive to prospective investors to subscribe to the Offering,
the Company desires to issue shares of its Common Stock to subscribers in the
Offering whose subscriptions are accepted by the Company on or after the
Effective Date;
 
WHEREAS, as an inducement and a condition to the Original Purchasers entering
into this Amendment, the Company has agreed to grant shares of Common Stock to
the Original Purchasers;
 
WHEREAS, an amendment of the Original Agreement requires the approval of the
Company and the holders of at least 67% of the Registrable Securities (excluding
any Registrable Securities held by the Company or any of its Subsidiaries)
issued or issuable under the Original Agreement or pursuant to the Notes and/or
the Warrants; and
 
WHEREAS, the Original Purchasers, as the holders of all of the Registrable
Securities, and the Company now desire to amend the Original Agreement on the
terms and conditions set forth in this Amendment.
 
NOW, THEREFORE, in consideration of the foregoing, and of the mutual
representations, warranties, covenants, and agreements herein contained, the
parties hereto agree as follows:
 
Agreement
 
Section 1. Defined Terms. Unless otherwise indicated herein, all terms which are
capitalized but are not otherwise defined herein shall have the meaning ascribed
to them in the Original Agreement.
 
 
 
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Section 2. Amendment to Original Agreement.  The Original Agreement is hereby
amended to add a new Section 4.29 to Article IV of the Original Agreement, which
Section 4.29 shall read in its entirety as follows:
 
“4.29           Incentive Shares.  Each Purchaser whose subscription to the
Offering is accepted by the Company on or after May 5, 2011 (each, a “Subsequent
Purchaser”) shall be entitled to receive that number of shares of Common Stock
equal to the product of (y) such Subsequent Purchaser’s Principal Amount
multiplied by (z) 75% (the “Incentive Shares”).  The Incentive Shares, when
issued in accordance with the terms of this Agreement, will be validly issued,
fully paid and nonassessable, free and clear of all Liens imposed by the
Company.  Each such Subsequent Purchaser agrees and acknowledges that (i) the
Incentive Shares shall be deemed “Securities” for purposes of Sections 3.2 and
4.1 of this Agreement; and (ii) the Incentive Shares shall not be Registrable
Securities.”
 
Section 3. Issuance of Consideration Shares.  To induce the Original Purchasers
to enter into this Amendment, the Company shall issue to each Original Purchaser
that number of shares of Common Stock equal to the product of (y) such Original
Purchaser’s Principal Amount multiplied by (z) 75% (the “Consideration
Shares”).  The Consideration Shares, when issued in accordance with the terms of
this Amendment, will be validly issued, fully paid and nonassessable, free and
clear of all Liens imposed by the Company.  The parties hereto agree and
acknowledge that the Consideration Shares shall be deemed “Securities” for
purposes of Sections 3.2 and 4.1 of the Original Agreement and each Original
Purchaser hereby reaffirms to the Company the representations and warranties set
forth in Section 3.2 of the Original Agreement with respect to the Consideration
Shares.  Each Original Purchaser agrees and acknowledges that the Consideration
Shares are not Registrable Securities.
 
Section 4. Acknowledgement; Waiver.  The parties hereto agree and acknowledge
that: (i) neither the issuance of the Incentive Shares nor the issuance of the
Consideration Shares constitute a Subsequent Financing or a Dilutive Issuance
(as defined in the Notes and the Warrants); (ii) no adjustments to the
Conversion Price or Exercise Price (as defined in the Warrants) shall be made
with respect to the issuance of the Incentive Shares or the issuance of the
Consideration Shares; (iii) Section 4.10 of the Original Agreement is not
applicable to the issuance of the Incentive Shares or the issuance of the
Consideration Shares; and (iv) neither the issuance of the Incentive Shares nor
the issuance of the Consideration Shares constitutes an Event of Default under
any of the Transaction Documents.  The Original Purchasers shall and do hereby
waive all rights and remedies, if any, that would otherwise be available to the
Original Purchasers under the Original Agreement, Notes, Warrants or any of the
other Transaction Documents as a result of the issuance of the Incentive Shares
or the Consideration Shares.
 
Section 5. Ratifications; Inconsistent Provisions. Except as otherwise expressly
provided herein, the Original Agreement, is, and shall continue to be, in full
force and effect and is hereby ratified and confirmed in all respects, except
that on and after the Effective Date: (i) all references in the Original
Agreement to “this Agreement”, “hereto”, “hereof”, “hereunder” or words of like
import referring to the Original Agreement shall mean the Original Agreement as
amended by this Amendment and  (ii) all references in the other Transaction
Documents, to “the Securities Purchase Agreement”, “the Purchase Agreement”,
“thereto”, “thereof”, “thereunder” or words of like import referring to the
Original Agreement shall mean the Original Agreement as amended by this
Amendment.  Notwithstanding the foregoing to the contrary, to the extent that
there is any inconsistency between the provisions of the Original Agreement and
this Amendment, the provisions of this Amendment shall control and be binding.
 
 
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Section 6. Counterparts. This Amendment may be executed in any number of
counterparts, all of which will constitute one and the same instrument and shall
become effective when one or more counterparts have been signed by each of the
parties and delivered to the other party.  Facsimile or other electronic
transmission of any signed original document shall be deemed the same as
delivery of an original.
 
[Signatures follow on next page]
 
 
 
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IN WITNESS WHEREOF, each Original Purchaser and the Company have caused their
respective signature page to this Amendment to be duly executed as of the date
first written above.
 
Company:

ADS IN MOTION, INC.

By:    /s/ Jordan Glatt                                                        
Name: Jordan Glatt
Title: President and Chief Executive Officer
 
 
 
[Amendment No. 1 to Securities Purchase Agreement]
 
 

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IN WITNESS WHEREOF, each Original Purchaser and the Company have caused their
respective signature page to this Amendment to be duly executed as of the date
first written above.
 
Original Purchaser:

BRIO CAPITAL L.P.
 
By:    /s/ Shaye Hirsch                                                      
   
Name: Shaye Hirsch
Title: Managing Partner
 
 
 
[Amendment No. 1 to Securities Purchase Agreement]
 
 

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IN WITNESS WHEREOF, each Original Purchaser and the Company have caused their
respective signature page to this Amendment to be duly executed as of the date
first written above.
 
Original Purchaser:

BRIO CAPITAL SELECT LLC

By:    /s/ Shaye Hirsch                                                      
           
Name: Shaye Hirsch
Title: Managing Member
 
 
 
[Amendment No. 1 to Securities Purchase Agreement]
 
 

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IN WITNESS WHEREOF, each Original Purchaser and the Company have caused their
respective signature page to this Amendment to be duly executed as of the date
first written above.
 
Original Purchaser:

CAPE ONE FINANCIAL MASTER FUND, LTD.
 
By:    /s/ Reid Drescher                                                     
Name: Reid Drescher
Title: Director
 
 
 
[Amendment No. 1 to Securities Purchase Agreement]
 
 

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IN WITNESS WHEREOF, each Original Purchaser and the Company have caused their
respective signature page to this Amendment to be duly executed as of the date
first written above.
 
Original Purchaser:

BERDON VENTURE ASSOCIATES, LLC

By:    /s/ Frederick Berdon                                               
Name: Frederick Berdon
Title: Managing Member
 
 
 
[Amendment No. 1 to Securities Purchase Agreement]
 
 

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IN WITNESS WHEREOF, each Original Purchaser and the Company have caused their
respective signature page to this Amendment to be duly executed as of the date
first written above.
 
Original Purchaser:
 
/s/ Herbert
Glatt                                                                          
HERBERT GLATT
 
 
 
[Amendment No. 1 to Securities Purchase Agreement]
 
 

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IN WITNESS WHEREOF, each Original Purchaser and the Company have caused their
respective signature page to this Amendment to be duly executed as of the date
first written above.
 
Original Purchaser:
 
/s/ Lee
Karls                                                                       
            
LEE KARLS
 
 
 
[Amendment No. 1 to Securities Purchase Agreement]
 
 

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IN WITNESS WHEREOF, each Original Purchaser and the Company have caused their
respective signature page to this Amendment to be duly executed as of the date
first written above.
 
Original Purchaser:

ROSTA, LLC
 
By:    /s/ R.J. Goldfein                                                        
Name: R.J. Goldfein
Title: Managing
 
 
 
[Amendment No. 1 to Securities Purchase Agreement]
 

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