EXHIBIT 10.1

 
AMENDMENT NO. 2 TO AGREEMENT AND PLAN OF MERGER
 
AND INTERESTS PURCHASE AGREEMENT
 
This Amendment (this “Amendment”) is entered into as of August 1, 2008, by and
among FORTISSIMO ACQUISITION CORP., a Delaware corporation (“Parent”); FAC
ACQUISITION SUB CORP., a New York corporation and a wholly-owned subsidiary of
Parent (“Merger Sub”); PSYOP, INC., a New York corporation (the “Company”);
PSYOP SERVICES, LLC, dba Blacklist (“Blacklist”); JUSTIN BOOTH-CLIBBORN, HEJUNG
MARIE HYON, JUSTIN LANE, KYLIE MATULICK, EBEN MEARS, ROBERT TODD MUELLER, SAMUEL
SELINGER, MARCO SPIER AND CHRISTOPHER STAVES (individually, a “Stockholder” and
collectively, the “Stockholders”); and JUSTIN BOOTH-CLIBBORN (the “Stockholders’
Representative”) as agent and attorney-in-fact for each Stockholder.
 
WHEREAS, the parties to this Amendment are parties to the Agreement and Plan of
Merger and Interests Purchase Agreement, dated as of January 15, 2008, by and
among Parent, Merger Sub, the Company, Blacklist, the Stockholders and the
Stockholders’ Representative, as amended by Amendment No. 1 thereto dated as of
May 12, 2008 (together, the “Merger Agreement”);
 
WHEREAS, the parties to this Amendment wish to make certain modifications to the
Merger Agreement as set forth herein;
 
NOW, THEREFORE, in consideration of the premises, covenants and representations
set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereby agree to amend
the Merger Agreement as set forth below:
 
1.  Definitions. Unless otherwise specified, capitalized terms used and not
otherwise defined in this Amendment shall have the same meanings as set forth in
the Merger Agreement.
 
2.  Interpretation. The rules of construction set forth in Section 1.02 of the
Merger Agreement shall apply mutatis mutandis to this Amendment as if set forth
in full in this Section 2.
 
3.  Amendment to Section 1.01; Definition of Combined Financial Statements. The
definition of “Combined Financial Statements” is hereby deleted from Section
1.01 of the Merger Agreement.
 
4.  Amendment to Section 1.01; Definition of Consolidated Financial Statements.
The definition of “Consolidated Financial Statements” is hereby deleted from
Section 1.01 of the Merger Agreement.
 
5.  Amendment to Section 1.01; Definition of Financial Statements. The following
definition of “Financial Statements” is hereby inserted immediately after the
definition of “Expenses” and immediately prior to the definition of “GAAP” in
Section 1.01 of the Merger Agreement:
 

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“Financial Statements” has the meaning set forth in Section 3.07(a).
 
6.  Amendment to Section 2.13. A new Section 2.13(d) is hereby added to the
Merger Agreement, to read as follows:
 
(d) Notwithstanding anything to the contrary in this Section 2.13 or elsewhere
in this Agreement, including Exhibit A hereto, Samuel Selinger shall not receive
any Contingent Consideration with respect to the Annual Contingent Consideration
Period ending December 31, 2010 and the Stock Contingent Consideration and Cash
Contingent Consideration that he otherwise would be entitled to receive with
respect to such Annual Contingent Consideration Period shall be allocated among
the other Stockholders pro rata in accordance with their stock ownership
percentages set forth in Table D of Exhibit A, which allocation is reflected in
Tables B and C of Exhibit A with respect to such Annual Contingent Consideration
Period.
 
7.  Amendment to Section 3.07. Section 3.07 of the Merger Agreement is hereby
replaced in its entirety with the following:
 
(a) The Company has delivered to the Parent copies of (i) the audited
consolidated and combined balance sheet of the Company (including the Company
Subsidiary) and Blacklist at December 31, 2007, together with the related
statements of operations, stockholders’ equity and cash flows for the year then
ended and the notes thereto and (ii) the unaudited consolidated and combined
balance sheet of the Company (including the Company Subsidiary) and Blacklist at
March 31, 2008, together with the related statements of operations,
stockholders’ equity and cash flows for the three months then ended and the
notes thereto (collectively, the “Financial Statements”). The Financial
Statements (x) were prepared in accordance with GAAP (except, with respect to
such thereof that are unaudited, for the absence of notes thereto and for
year-end adjustments) applied on a consistent basis throughout the periods
covered thereby; (y) present fairly the financial position, results of
operations and cash flows of the Company (including the Company Subsidiary) and
Blacklist as of such dates and for the periods then ended; and (z) are correct
and complete in all material respects and can be reconciled with the books of
account and records of the Company (including the Company Subsidiary) and
Blacklist. Each of the Company (including the Company Subsidiary) and Blacklist
maintains and will continue to maintain an adequate system of internal controls
established and administered in accordance with GAAP.

 
(b) Except as and to the extent set forth or reserved against on the audited
balance sheet of the Company at December 31, 2007, none of the Company,
Blacklist or the Company Subsidiary has any liabilities or obligations of any
nature (whether accrued, absolute, contingent or otherwise) that would be
required to be reflected on a balance sheet or in notes thereto prepared in
accordance with GAAP, except for immaterial liabilities or obligations incurred
in the ordinary course of business consistent with past practice since December
31, 2007.
 
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8.  Amendment to Section 8.02(g). Section 8.02(g) of the Merger Agreement is
hereby replaced in its entirety with the following:
 
(g)  SAS 100. Parent shall have received a review report, reasonably
satisfactory in form and substance to Parent, from the Company’s independent
public accountants, pursuant to Statement of Accounting Standards No. 100,
relating to the unaudited consolidated and combined balance sheet of the Company
(including the Company Subsidiary) and Blacklist at the end of the most recent
quarter for which financial statements are included in the proxy statement,
together with the related statements of operations, stockholders’ equity and
cash flows for the interim period then ended and the notes thereto.
 
9.  Amendment to Section 11.02. Section 11.02 of the Merger Agreement is hereby
replaced in its entirety with the following:
 
Section 11.02. Notices. All notices which are required or may be given pursuant
to the terms of this Agreement shall be in writing and shall be sufficient and
deemed to be received if (i) on the date of delivery, if delivered personally,
(ii) 3 days after mailing, if mailed by registered or certified mail, return
receipt requested and postage prepaid, (iii) the day after mailing, if sent via
a nationally recognized overnight courier service or (iv) the day after
transmission, if sent via facsimile or e-mail confirmed in writing to the
recipient, in each case as follows:
 
if to Parent, to:
 

   
Fortissimo Acquisition Corporation

   
14 Hamelacha Street

   
Park Afek PO Box 11704

   
Rosh Haayin 48091

   
Israel

   
Attention: Marc S. Lesnick

Telephone: 011-972-3-915-7466  

   
Facsimile: 011-972-3-915-7411

   
E-mail: marc@ffcapital.com

with a copy (which shall not constitute notice) to:
 

   
Wilmer Cutler Pickering Hale and Dorr LLP

399 Park Avenue
New York, New York 10022
Attention: Brian B. Margolis, Esq.

   
Telephone: (212) 937-7239

   
Facsimile: (212) 230-8888

E-mail: brian.margolis@wilmerhale.com
 
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if to the Company, to:
 
Psyop, Inc.
124 Rivington Street
New York, NY 10002
Attention: Justin Booth-Clibborn
Telephone: (212) 533-9055
Facsimile: (212) 533-9112
E-mail: justin@psyop.tv

with a copy (which shall not constitute notice) to:

Graubard Miller
405 Lexington Avenue

   
New York, NY 10174

Attention: David A. Miller, Esq.
Telephone: 212-818-8661
Facsimile: 646-227-5439
E-mail: dmiller@graubard.com

 
if to any Stockholder, to the address appearing under the name of such
Stockholder in Schedule I hereto;
 
or such other address or addresses as any party shall have designated by notice
in writing to the other parties.
 
10.  Amendment to Tables B, C and D of Exhibit A. Tables B, C and D of Exhibit A
are hereby replaced in their entirety by the following:
 
TABLE B
Stockholder Maximum Revenue Contingent Stock and Maximum Revenue
Contingent Cash By Fiscal Year
               
Maximum Revenue Contingent Stock
Maximum Revenue Contingent Cash
 
(shares)
($)
Fiscal Year
2008
2009
2010
2008
2009
2010
Justin Booth-Clibborn 
12,145.93
12,145.93
9,500.97
$ 35,041.00
$ 35,041.00
$ 27,410.28
Hejung Marie Hyon 
50,769.97
50,769.97
39,714.02
$146,471.37
$146,471.37
$114,574.96
Justin Lane 
9,109.44
9,109.44
7,125.72
$ 26,280.75
$ 26,280.75
$ 20,557.71
Kylie Matulick 
32,368.89
32,368.89
25,320.07
$ 93,384.26
$ 93,384.26
$ 73,048.38
Eben Mears 
50,769.97
50,769.97
39,714.02
$146,471.37
$146,471.37
$114,574.96
Robert Todd Mueller 
50,769.97
50,769.97
39,714.02
$146,471.37
$146,471.37
$114,574.96
Samuel Selinger 
11,903.01
11,903.01
0.00
$ 34,340.18
$ 34,340.18
$ 0.00
Marco Spier 
50,769.97
50,769.97
39,714.02
$146,471.37
$146,471.37
$114,574.96
Christopher Staves 
20,243.21
20,243.21
15,834.94
$ 58,401.66
$ 58,401.66
$ 45,683.79
Maximum Total 
288,850.38
288,850.38
216,637.78
$833,333.33
$833,333.33
$625,000.00

 
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TABLE C
Stockholder Maximum EBITDA Contingent Stock and Maximum EBITDA
Contingent Cash By Fiscal Year
               
Maximum EBITDA Contingent Stock
Maximum EBITDA Contingent Cash
 
(shares)
($)
Fiscal Year
2008
2009
2010
2008
2009
2010
Justin Booth-Clibborn 
12,145.93
12,145.93
9,500.97
$ 35,041.00
$ 35,041.00
$ 27,410.28
Hejung Marie Hyon 
50,769.97
50,769.97
39,714.02
$146,471.37
$146,471.37
$114,574.96
Justin Lane 
9,109.44
9,109.44
7,125.72
$ 26,280.75
$ 26,280.75
$ 20,557.71
Kylie Matulick 
32,368.89
32,368.89
25,320.07
$ 93,384.26
$ 93,384.26
$ 73,048.38
Eben Mears 
50,769.97
50,769.97
39,714.02
$146,471.37
$146,471.37
$114,574.96
Robert Todd Mueller 
50,769.97
50,769.97
39,714.02
$146,471.37
$146,471.37
$114,574.96
Samuel Selinger 
11,903.01
11,903.01
0.00
$ 34,340.18
$ 34,340.18
$ 0.00
Marco Spier 
50,769.97
50,769.97
39,714.02
$146,471.37
$146,471.37
$114,574.96
Christopher Staves 
20,243.21
20,243.21
15,834.94
$ 58,401.66
$ 58,401.66
$ 45,683.79
Maximum Total 
288,850.38
288,850.38
216,637.78
$833,333.33
$833,333.33
$625,000.00

TABLE D
Stockholder Ownership Percentages*
Stockholder
Percentage
Justin Booth-Clibborn
4.2049%
Hejung Marie Hyon
17.5766%
Justin Lane
3.1537%
Kylie Matulick
11.2061%
Eben Mears
17.5766%
Robert Todd Mueller
17.5766%
Samuel Selinger
4.1208%
Marco Spier
17.5766%
Christopher Staves
7.0082%

* Ownership is calculated as of the date of the Closing. Numbers in table D do
not equal 100.0000% due to rounding.
 
11.  Acknowledgment Regarding Section 2(b) of Exhibit A. The parties acknowledge
that the termination of Samuel Selinger’s employment with the Company, which
termination was effective as of June 30, 2008, shall not be deemed to be a
Disqualifying Termination for purposes of the Merger Agreement.
 
12.  Conflict. In the event of conflict between this Amendment and the Merger
Agreement, this Amendment shall prevail.
 
13.  No Other Amendment. Except as expressly provided in this Amendment, no
other amendments to the Merger Agreement are made by this Amendment.
 
14.  Continuing Effectiveness. Except as amended by this Amendment, the Merger
Agreement shall continue in full force and effect in accordance with its terms.
 
15.  Governing Law. This Amendment shall be governed by, and construed and
enforced in accordance with, the law of the State of New York other than
conflicts of law principles thereof directing the application of any law other
than that of New York.
 
16.  Counterparts; Facsimiles. This Amendment may be executed in two (2) or more
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument. This Amendment may be
executed by facsimile signature.
 
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IN WITNESS WHEREOF, the undersigned have executed this Amendment or have caused
this Amendment to be duly executed and delivered by their proper and duly
authorized representatives as of the day and year first above written.
 

       
FORTISSIMO ACQUISITION CORP.
 
   
   
    By:   /s/ Yuval Cohen  

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Name: Yuval Cohen
Title: President and Chief Executive Officer
   

       
FAC ACQUISITION SUB CORP.
 
   
   
    By:   /s/ Yuval Cohen  

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Name: Yuval Cohen
Title: President
   

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PSYOP, INC.
 
   
   
    By:   /s/ Justin Booth-Clibborn  

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Name: Justin Booth-Clibborn
Title: Chief Executive Officer
   

       
PSYOP SERVICES, LLC
 
   
   
    By:   /s/ Justin Booth-Clibborn  

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Name: Justin Booth-Clibborn
Title: Member and Chief Executive Officer
   

                    /s/ Justin Booth-Clibborn  

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JUSTIN BOOTH-CLIBBORN
   

                     /s/ Hejung Marie Hyon  

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HEJUNG MARIE HYON
   

                    /s/ Justin Lane  

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JUSTIN LANE
   

                    /s/ Kylie Matulick  

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KYLIE MATULICK
   

                     /s/ Eben Mears  

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EBEN MEARS
   

                     /s/ Robert Todd Mueller  

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ROBERT TODD MUELLER
   

                    /s/ Samuel Selinger  

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SAMUEL SELINGER
   

                    /s/ Marco Spier  

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MARCO SPIER
   

                    /s/ Christopher Staves  

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CHRISTOPHER STAVES
   

       
STOCKHOLDERS’ REPRESENTATIVE
 
   
   
    By:   /s/ Justin Booth-Clibborn  

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Justin Booth-Clibborn
   

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