Document:

Unassociated Document

    Exhibit
      10.32

     

    THIRD
      LEASE MODIFICATION AGREEMENT

     

    AGREEMENT
      made this 1st day of July 2004 between JOSEPH P. DAY RELATY CORP., as agent
      for
      800 Third Avenue Associates, LLC (“Owner”), 9 East 40th
      Street,
      New York, New York 10016, and ASSET ALLIANCE CORPORATION (“Tenant”), 800 Third
      Avenue, New York, New York 10022;

     

    W
      I T N E
      S S E T H :

     

    WHEREAS,
      the parties are Owner and Tenant respectively under lease dated September 12,
      1996, as modified by Lease Modification Agreement dated December 8, 1997 and
      Second Lease Modification Agreement dated April 14, 2000 (the lease as modified
      is hereinafter referred to as the “Lease”), covering the entire 22nd
      Floor
      and Room 2302 (the “demised premises”) at 800 Third Avenue, New York, New York
      (the “Building”) for a term ending July 31, 2008; and

     

    WHEREAS,
      the parties wish to extend the term of the Lease;

     

    NOW,
      THEREFORE, the parties agree as follows:

     

    1. The
      term
      of the Lease is extended for a period commencing August 1, 2004 and ending
      July
      31, 2014 (the “Extended Term”).

     

    2. During
      the Extended Term Tenant agrees to pay and Owner agrees to accept the following
      rent and additional rent:

     

    (a) Tenant
      shall pay annual rental (as set forth on page 1, of the Lease) during the
      Extended Term in the mount of $561,758.88 per annum;

     

    (b) Tenant
      shall pay real estate tax escalation during the Extended Term pursuant to
      Article 19 of the Lease; the “Base Tax” during the Extended Term shall mean
      Taxes, as finally determined by settlement, court decision or otherwise, for
      the
      fiscal Tax Year ending June 30, 2005; Tenant’s Share for the demised premises
      shall be 2.720%;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) Tenant
      shall pay wage formula increase during the extended Term pursuant to Article
      40
      of the Lease; the “Base Labor Rate” during the Extended Term shall be the Labor
      Rate at December 31, 2004; the Wage Rate Multiple for the demised premises
      shall
      be 12808;

     

    (d) in
      the
      event Owner exercises Owner’s option pursuant to Article 41 of the Lease, Tenant
      shall pay operating expense escalation for the Extended Term pursuant to Article
      41 of the Lease; the “Base Year” referred to therein shall be 2004; the
      percentage referred to therein shall be 2.720%;

     

    (e) Tenant
      shall pay Heating Costs escalations during the Extended Term pursuant to Article
      42 of the Lease, in the event Heating Costs during the Extended Term exceed
      Heating Costs for the calendar year 2004; the percentage referred to therein
      shall be 2.720%;

     

    (f) Tenant
      shall pay local laws escalation during the Extended Term pursuant to Article
      43
      of the Lease; the percentage referred to therein shall be 2.720%;

     

    (g) Owner
      shall furnish electricity in the demised premise4s during the Extended Term
      pursuant to Article 66 of the Lease; pending an electrical survey and/pr
      adjustment pursuant to Article 66 of the Lease, the Electrical Inclusion Factor
      for the demised premises shall be $51,232 per annum; the annual rental for
      the
      demised premises referred to in subparagraph (a) above shall be increased by
      the
      Electrical Inclusion Factor and shall be payable in monthly installments in
      advance on the first day of each month; in no event shall the Electrical
      Inclusion Factor for the demised premises be decreased below $51,232 per annum
      during the Extended Term.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    3. Owner
      approves the installation of a toilet, sink and accessories in the Sauna Room
      located on the 22nd
      Floor of
      the Building and agrees to reimburse the Tennant for installation costs up
      to
      $15,000. Owner agrees to reimburse Tenant for alterations and improvements
      Tenant has already performed on the 22nd
      Floor of
      the demised premises in an amount not exceeding $65,000 on presentation by
      Tenant to Owner of paid receipts therefore; Owner agrees Owner will at Owner’s
      expense do the work in Room 2302 set forth in the plan attached
      hereto.

     

    4. The
      balance of the 23rd
      Floor of
      the Building is presently leased to two other tenants. The space leased to
      each
      such tenant is shown on the attached floor, and marked Option Space A and
      Options Space B.

     

    In
      the
      event the tenant of Option Space A shall quit and surrender Option Space A,
      then
      provided Tenant shall not then be in default under the Lease as modified by
      this
      Agreement, or the lease for any other space occupied by tenant in the Building,
      Owner will notify Tenant thereof and Tenant shall have the option to lease
      Option Space A for the balance of the Extended Term upon the terms and
      conditions set forth hereinafter. In the event tenant exercises such option,
      Tenant shall during the option term pay annual rental and escalations for Option
      Space A equal to 43.93% of the annual rental and escalations payable by Tenant
      for the demised premises during the option term. Tenant shall have thirty (30)
      days to notify Owner of Tenant’s exercise of this option. The failure of Tenant
      so to notify Owner within said thirty (30) days shall be conclusively deemed
      a
      rejection by Tenant. Tenant agrees within 14 days after notifying Owner that
      Tenant exercises such option to execute a lease modification for Option Space
      A
      at the rent and with the escalations set forth above and otherwise upon the
      terms and conditions set forth in the Lease as modified by this Agreement except
      that such Lease shall not contain a rent concession, any reimbursement of Tenant
      for alterations, any work to be performed by Owner (Tenant agreeing to take
      the
      space “as is”) or any right to end the term of the Lease. However, in the event
      Tenant exercises this option or the following option with respect to Option
      Space B, Owner will install an internal staircase connecting the 22nd
      floor
      with either Option Space A or Option Space B or Room 2302 as Tenant may elect;
      Owner shall pay the cost of such internal staircase, not exceeding $20,000
      and
      Tenant agrees to pay the balance of such cost; in the event Tenant shall fail
      to
      pay such balance, the same shall be due from Tenant to Owner as additional
      rent.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    In
      the
      event the tenant of Option Space B shall quit and surrender Option Space B,
      then
      provided Tenant shall not then be in default under the Lease as modified by
      this
      Agreement or the lease for any other space occupied by Tenant in the Building,
      Owner will notify tenant thereof and Tenant shall have the option to lease
      Option Space B for the balance of the Extended Term upon the terms and
      conditions set forth hereinafter. In the event Tenant exercises such option,
      Tenant shall during the option term pay annual rental and escalations for Option
      Space B equal to 20.57% of the annual rental and escalations payable by Tenant
      for the demised premises during the option term. Tenant shall have thirty (30)
      days to notify Owner of Tenant’s exercise of this option. The failure of Tenant
      so to notify Owner in writing within said thirty (30) days shall be conclusively
      deemed a rejection by Tenant. Tenant agrees within 15 days after notifying
      Owner
      that Tenant exercises such option to execute a lease modification for Option
      Space B at the rent and with the escalations set forth above and otherwise
      upon
      the terms and conditions set forth in the Lease as modified by this Agreement
      except that such Lease shall not contain a rent concession, any reimbursement
      of
      Tenant for alterations, any work to be performed by Owner (Tenant agreeing
      to
      take the space “as is” except for the internal staircase referred to above) or
      any right to end the term of the Lease.

     

    5. Articles
      67, 68, 69, 73 and 75 of the Lease and the work letter attached to the Lease
      and
      the Lease Modification Agreement and paragraphs 4, 7, and 8 of the Lease
      Modification Agreement dated December 8, 1997 shall not apply during the
      Extended Term.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    6. This
      Agreement is offered to Tenant for signature by the managing agent of the
      Building solely in its capacity as such agent and subject to Owner’s acceptance
      and approval. Tenant shall affix its signature hereto with the understanding
      that such act shall not, in any way, bind Owner or its agent until such time
      as
      this Agreement shall have been approved and executed by the managing agent
      or
      the Owner and delivered to the Tenant.

     

    7. Tenant
      covenants, warrants and represents that there was no broker except Joseph P.
      Day
      Realty Corp. instrumental in consummating this Agreement and that no
      conversations or negotiations were had with any broker except Joseph P. Day
      Realty Corp. concerning the terms of this Agreement. Tenant agrees to hold
      Owner
      harmless against any claims for a brokerage commission arising out of any
      conversations or negotiations had by tenant with any broker except Joseph P.
      Day
      Realty Corp.

     

    8. Except
      as
      specifically modified herein, Owner and Tenant ratify, confirm, accept and
      agree
      to all of the terms, covenants and conditions of the Lease.

     

    9. This
      Agreement shall inure to the benefit of and bind the parties hereto, their
      legal
      representatives, successors and assigns.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have hereunto set their hands and seals the day
      and
      year first above written.

     

    
      	
              JOSEPH
                P. DAY REALTY CORP., as agent

            
	 	 
	
              (Owner)

            	
              /s/Richard
                Teichman

            
	 	 
	
              ASSET
                ALLIANCE CORPORATION

            
	 	 
	
              (Tenant)

            	
              /s/Arnold
                L. Mintz

            

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    RIDERS
      to
      THIRD LEASE MODIFICATION AGREEMENT

    Between

     

    JOSEPH
      P.
      DAY REALTY CORP., as Agent

    for
      800
      Third Avenue Associates

     

    And

     

    Asset
      Alliance Corporation, a Delaware Corporation

    Dated
      as
      of July, 2004.

     

     

    
      

    

     

    
      	
              1.

            	
              Owner
                approves the installation of a toilet, sink and accessories in the
                Sauna
                Room located on the 22nd
                Floor of the Building and agrees to reimburse the Tenant for installation
                costs up to $15,000;

            

    

    
      	 	 

      	
              2.

            	
              $65,000

            

      	 	 

    

    
      	
              3.

            	
              thirty
                (30)

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FLOOR
      PLAN

     

    
      

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Bennett
      Design Group, Inc.

    108
      West
      39th Street

    New
      York,
      NY 10018

    212
      391-0431

    212
      391-0622 FAX

     

    April
      29,
      2004

     

    Asset
      Alliance Corporation

    800
      Third
      Avenue

    Part
      of
      23rd
      Floor

    New
      York,
      NY 10022

     

    WORK
      LETTER

     

    Landlord
      agrees, at it’s sole expense and without charge to tenant, shall cause to be
      prepared the following architectural drawings and specifications:

     

    
      	
              A.

            	
              GENERAL
                CONSTRUCTION:

            

    

     

    
      	 	
              1.

            	
              DEMOLITION;

            

    

     

    As
      per
      plan approved #A-1, dated May 5, 2004.

     

    
      	 	
              2.

            	
              PARTITIONS:

            

    

     

    
      	 	
              a)

            	
              Building
                standard partitioning as per approved Preliminary Plan #A-1 dated
                May 5,
                2004.

            

    

     

    
      	 	
              b)

            	
              Furnish
                and install wood base and chair rail on new partition to match
                existing.

            

    

     

    
      	 	
              c)

            	
              Furnish
                and install approximately 6’-0” X 5’-0” + high of glass partition in wood
                frame to match existing.

            

    

     

    NOTE:
      Glass
      to have applied sheets of obscured (acid etched look) vinyl    
      to match
      22nd floor in dimension and design. 

     

    
      	 	
              3.

            	
              DOORS,
                FRAMES & HARDWARE:

            

    

     

    
      	 	
              a)

            	
              Retrofit
                existing wood doors and frames as per approved Plan #A-1, dated May
                5,
                2004.

            

    

     

    
      	 	
              b)

            	
              Clean,
                repair and refinish existing doors and panels as may be
                required.

            

    

     

    
      	 	
              4.

            	
              CEILINGS:

            

    

     

    
      	 	
              a)

            	
              Patch
                existing ceilings as required by demolition and new construction.
                The
                large open area must have one continuous grid pattern and uniform
                height.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              b)

            	
              Speckle
                and sand smooth all rough and uneven surfaces / edges of regress
                sheetrock
                light coves.

            

    

     

    
      	 	
              5.

            	
              AIR
                CONDITIONING:

            

    

     

    
      	 	
              a)

            	
              Modify
                existing air supply diffusers and return air grills to conform with
                new
                partition layout.

            

    

     

    
      	 	
              6.

            	
              LIGHTING
                / ELECTRIC:

            

    

     

    
      	 	
              a)

            	
              Remove
                and retrofit existing wall sconces and recessed ceiling lights as
                shown on
                approved Reflected Ceiling Plan, dated May 5,
                2004.

            

    

     

    
      	 	
              (b)

            	
              Recircuit
                lights and switches as required by demolition and new
                partitions.

            

    

     

    
      	 	
              7.

            	
              POWER
                / ELECTRIC:

            

    

     

    
      	 	
              a)

            	
              Existing
                outlets to remain. Recircuit as required by demolition and new
                construction.

            

    

     

    
      	 	
              b)

            	
              Furnish
                and install up to four (4) fluorescent Duplex Electric and Voice
                Data
                outlets in Conference Room.

            

    

     

    
      	 	
              c)

            	
              Furnish
                and install up to four (4) Duplex outlets in Convection and (4) four
                Duplex outlets in sheetrock walls.

            

    

     

    
      	 	
              d)

            	
              Furnish
                and install one (1) 20 amp Dedicated Quad Electric outlet for computer
                server.

            

    

     

    
      	 	
              e)

            	
              Furnish
                and install one (1) ceiling exhaust fan with thermostatic control
                for
                computer server closet, approximately 60
                CFM.

            

    

     

    
      	 	
              8.

            	
              PAINTING:

            

    

     

    
      	 	
              a)

            	
              Paint
                entire premises to match existing.

            

    

     

    
      	 	
              b)

            	
              Furnish
                and install wall covering to match
                existing.

            

    

     

    
      	 	
              9.

            	
              FLOOR
                COVERING:

            

    

     

    
      	 	
              a)

            	
              Furnish
                and install new carpet and base to match
                existing.

            

    

     

    
      	 	
              10.

            	
              WINDOW
                TREATMENTS:

            

    

     

    
      	 	
              a)

            	
              Existing
                window treatments to remain.

            

    

     

    
      	
              NOTE:

            	
              All
                work done by landlord and or tenant shall comply with the New York
                State
                Building Department Code
                Requirements.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Any
      additional equipment or work over and above that specified in the Work Letter
      must receive approval of lessor, in advance, and shall be performed at lessees
      expense.

     

    B. WORK
      AT
      TENANTS SOLE COST AND EXPENSE:

    (Unless
      specified in above Work Letter)

     

    
      	 	
              1.

            	
              New
                Furniture and Furnishings.

            

    

     

    
      	 	
              2.

            	
              New
                Custom Cabinetwork

            

    

     

    
      	 	
              3.

            	
              Voice
                and Data Equipment and Cabling.

            

    

     

    
      	 	
              4.

            	
              Moving
                Expenses.

            

    

     

    
      	 	
              5.

            	
              Signage
                and Accessories.

            

    

     

    
      
        
        

      

      
        3Unassociated Document

    AMENDMENT
      NO. 1 TO AGREEMENT AND PLAN OF MERGER

    AND
      INTERESTS PURCHASE AGREEMENT

     

    This
      Amendment (this “Amendment”)
      is
      entered into as of May 12, 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 (the
“Merger
      Agreement”),
      by
      and among Parent, Merger Sub, the Company, Blacklist, the Stockholders and
      the
      Stockholders’ Representative;

     

    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 Blacklist Interests Amount.
      The
      definition of Blacklist Interests Amount is hereby replaced in its entirety
      with
      the following: 

     

    “Blacklist
      Interests Amount”
      means
      $1,500,000.

     

    4.  Amendment
      to Section 1.01; Definition of Cash Escrow Amount.
      The
      definition of Cash Escrow Amount is hereby replaced in its entirety with the
      following:

     

    “Cash
      Escrow Amount”
      means
      Four Hundred Fourteen Thousand and Eight Dollars ($414,008) to be deposited
      with
      the Escrow Agent to be held in escrow subject to the terms and conditions of
      the
      Escrow Agreement. 

     

    5.  Amendment
      to Section 1.01; Definition of Cash Merger Consideration.
      The
      definition of Cash Merger Consideration is hereby replaced in its entirety
      with
      the following:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Cash
      Merger Consideration”
      means
      $2,640,079.

     

    6.  Amendment
      to Section 2.04(a).
      Section
      2.04(a) of the Merger Agreement is hereby replaced in its entirety with the
      following:

     

    (a) Consideration.
      The
      aggregate consideration to be paid by Parent and Merger Sub in respect of the
      Subsidiary Merger and the Upstream Merger hereunder shall consist of (i) the
      Stock Merger Consideration, and (ii) the Cash Merger Consideration
      (collectively, the “Merger
      Consideration”),
      (iii)
      the Cash Bonus Consideration, if any, as described in Section 2.07, (iv) the
      Contingent Consideration, if any, as described in Section 2.13, and (v) the
      Additional Consideration, if any, as described in Section 2.14. Each share
      of
      Company Common Stock and Company Class B Common Stock issued and outstanding
      immediately prior to the Effective Time (excluding treasury stock and those
      owned by any wholly-owned subsidiary of the Company) and all right in respect
      thereof shall automatically be canceled and retired and shall forthwith cease
      to
      exist, and each holder of a certificate which immediately prior to the Effective
      Time represented any such shares of Company Common Stock or Company Class B
      Common Stock shall cease to have any rights with respect thereto, except, in
      the
      case of Company Common Stock and Company Class B Common Stock, the right to
      receive a portion of the Merger Consideration as provided in Section 2.04(c)
      and
      Section 2.04(d) below, the right to potentially receive a portion of the Cash
      Bonus Consideration as provided in Section 2.07 below, the right to potentially
      receive a portion of the Contingent Consideration as described in Section 2.13
      below and the right to potentially receive a portion of the Additional
      Consideration as described in Section 2.14 below.

     

    7.  Amendment
      to Section 2.04(c).
      Section
      2.04(c) of the Merger Agreement is hereby replaced in its entirety with the
      following:

     

    (c)
       Company
      Common Stock.
      At the
      Effective Time and on the terms and subject to the conditions of this Agreement,
      each share of Company Common Stock issued and outstanding immediately prior
      to
      the Effective Time shall, by virtue of the Subsidiary Merger and without any
      action on the part of Parent, Merger Sub, or the Company, be cancelled and
      shall
      be converted into the right to receive the portions of the Merger Consideration,
      the Cash Bonus Consideration, the Contingent Consideration and the Additional
      Consideration as set forth in the Merger Consideration Allocation
      Certificate.

     

    8.  Amendment
      to Section 2.04(d).
      Section
      2.04(d) of the Merger Agreement is hereby replaced in its entirety with the
      following:

     

    (d) Company
      Class B Common Stock.
      At the
      Effective Time and on the terms and subject to the conditions of this Agreement,
      each share of Company Class B Common Stock issued and outstanding immediately
      prior to the Effective Time shall, by virtue of the Subsidiary Merger and
      without any action on the part of Parent, Merger Sub, or the Company, be
      converted into the right to receive the portions of the Merger Consideration,
      the Cash Bonus Consideration, the Contingent Consideration and the Additional
      Consideration as set forth in the Merger Consideration Allocation
      Certificate.

     

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

     

    9.  Amendment
      to Section 2.04(f).
      Section
      2.04(f) of the Merger Agreement is hereby replaced in its entirety with the
      following:

     

    (f) Company
      Capitalization Schedules.
      On the
      Closing Date, the Company shall deliver to Parent and Merger Sub separate
      schedules reflecting (i) a true and complete list of record holders of the
      issued and outstanding Company Common Stock, including the number of shares
      of
      Common Stock held by such record holders, and (ii) a true and complete list
      of
      record holders of the issued and outstanding Company Class B Common Stock,
      including the number of shares of each series of Company Class B Common Stock
      held by such record holders. Prior to Parent making payment of the Merger
      Consideration, the Company shall execute and deliver to Parent a certificate
      setting forth the good faith calculation of the Company of the Per Share Merger
      Consideration, the aggregate Per Share Merger Consideration, the percentage
      of
      the Cash Bonus Consideration, the percentage of the Contingent Consideration
      and
      the percentage of the Additional Consideration payable to each of the holders
      of
      Company Common Stock and Company Class B Common Stock (the “Merger
      Consideration Allocation Certificate”).
      The
      Merger Consideration Allocation Certificate shall be deemed to be a
      representation and warranty of the Company hereunder. In no event shall Parent
      be required to transfer the Merger Consideration unless and until the Merger
      Consideration Allocation Certificate has been executed and delivered by the
      Company and approved by Parent. Parent shall be entitled to rely entirely upon
      the Merger Consideration Allocation Certificate in connection with making
      payment of the Merger Consideration and no holder of Company Common Stock or
      Company Class B Common Stock shall be entitled to make any claim in respect
      of
      the allocation of the Merger Consideration made by Parent to or for the benefit
      of any holder of Company Common Stock or Company Class B Common Stock to the
      extent that the payment is made in a manner consistent with the Merger
      Consideration Allocation Certificate.

     

    10.  Amendment
      to Section 2.07.
      Section
      2.07 of the Merger Agreement is hereby replaced in its entirety with the
      following:

     

    Section
      2.07. Cash
      Bonus Consideration.
      In
      addition to the Merger Consideration, Parent shall pay to the Stockholders,
      on a
      pro rata basis, a cash bonus relating to the financial performance of the
      Company for each of the fiscal years ended December 31, 2008 and December 31,
      2009 of up to $3,000,000, respectively. With respect to each of these fiscal
      years, each Stockholder shall be eligible to receive a cash bonus calculated
      as
      follows (terms not defined in the Merger Agreement itself are defined in Exhibit
      A hereto):

     

    (a) If
      the
      Actual EBITDA Percentage for such fiscal year equals or exceeds 100% of the
      Annual EBITDA Target for such fiscal year, then such Stockholder shall receive
      an amount in cash equal to such Stockholder’s pro rata share of $3,000,000 for
      such fiscal year.

     

    (b) If
      the
      Actual EBITDA Percentage for such fiscal year equals or exceeds 90% and is
      less
      than 100% of the Annual EBITDA Target for such fiscal year, then such
      Stockholder shall receive an amount in cash equal to such Stockholders’ pro rata
      share of the product of (A) $3,000,000 and (B) (i) the Actual EBITDA for such
      fiscal year divided by (ii) the Annual EBITDA Target for such fiscal
      year.

     

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

     

    (c) If
      the
      Actual EBITDA Percentage for such fiscal year is less than 90% of the Annual
      EBITDA Target for such fiscal year, then such Stockholder shall receive no
      cash
      bonus for such fiscal year.

     

    (d) Notwithstanding
      the foregoing, if the Company achieves more than 50% but less than
      100% of the specified EBITDA milestone for 2008, and if the Company achieves
      in
      excess of 100% of the specified EBITDA milestone for 2009, then such Stockholder
      will receive his or her pro rata share of a “catch-up” bonus payment for 2008,
      calculated as described below. The “catch-up pro rata percentage” shall be equal
      to a fraction, the numerator of which is the dollar amount by which the
      Company’s 2009 actual EBIDTA exceeds the specified EBITDA milestone for 2009 and
      the denominator of which shall be the dollar amount by which the Company’s 2008
      actual EBIDTA falls short of the specified EBITDA milestone for 2008, provided,
      however, that under no circumstances shall the “catch-up pro rata percentage”
exceed 100%. If the Company achieves more than 50%, but less than 75%, of the
      specified EBITDA milestone for 2008, and if the Company achieves in excess
      of
      100% of the specified EBITDA milestone for 2009, then such Stockholder will
      receive his or her pro rata share, following the determination of the Company’s
      2009 year-end financial results, of a cash bonus payment in an amount equal
      to
      the product of (A) the catch-up pro rata percentage and (B) $3,000,000, up
      to a
      maximum of $2,250,000. If the Company achieves 75% or more, but less than 100%,
      of the specified EBITDA milestone for 2008, and if the Company achieves in
      excess of 100% of the specified EBITDA milestone for 2009, then such Stockholder
      will receive his or her pro rata share, following the determination of the
      Company’s 2009 year-end financial results, of a cash bonus payment in an amount
      equal to the product of (A) the catch-up pro rata percentage and
      (B) $3,000,000, up to a maximum of $3,000,000; provided,
      however,
      that
      under no circumstances will the aggregate amount of the 2008 EBITDA cash bonus
      consideration (aggregating both amounts paid following the determination of
      the
      Company’s 2008 year-end financial results and amounts paid following the
      determination of the Company’s 2009 year-end financial results) exceed
      $3,000,000.

     

    (e) The
      Annual EBITDA Target for each of the fiscal years ended December 31, 2008 and
      December 31, 2009 are set forth in Table A of Exhibit A to this
      Agreement.

     

    11.  Amendment
      to Section 2.13(b).
      Section
      2.13(b) of the Merger Agreement is hereby replaced in its entirety with the
      following:

     

    (b) In
      addition to the Merger Consideration and the Stock Contingent Consideration
      paid
      at the Closing, Parent shall pay to the Stockholders additional, aggregate
      contingent consideration in cash in an amount up to (i) the amount of the
      Maximum Revenue Contingent Cash and (ii) the amount of Maximum EBITDA Contingent
      Cash, in each case calculated in accordance with the terms set forth in
Exhibit
      A
      of this
      Agreement (the amount of contingent cash payments, if any, made pursuant to
      this
      subsection of the Agreement referred to collectively as the “Cash
      Contingent Consideration”
and,
      together with the Stock Contingent Consideration, the “Contingent
      Consideration”).
      

     

    12.  Addition
      of Subsection (c) to Section 2.13.
      The
      following provision is hereby added as subsection (c) to Section 2.13 of the
      Merger Agreement to read in its entirety as follows:

     

    (c) Notwithstanding
      anything to the contrary contained in this Agreement or in Exhibit A to this
      Agreement, the calculation of the Contingent Consideration pursuant to this
      Section 2.13 shall include the financial results of operations of the business
      of the Company and the financial results of operations of any businesses or
      divisions that the Company shall acquire at any point in time following the
      Closing Date, unless the board of directors determines otherwise after
      evaluating the impact of each acquisition on the Company.

     

    13.  Amendment
      to Section 5.07(b).
      Section
      5.07(b) of the Merger Agreement is hereby replaced in its entirety with the
      following:

     

    (b)
       Merger
      Sub is a corporation duly incorporated, validly existing and in good standing
      under the laws of the State of New York and has the requisite corporate power
      and authority to own, lease and operate its assets and properties and to carry
      on its business as it is now being or currently planned by Parent to be
      conducted. Complete and correct copies of the charter documents of Merger Sub,
      as amended and currently in effect, have been delivered to the Company or its
      counsel. Merger Sub is not in violation of any of the provisions of the Merger
      Sub’s charter documents.

     

    14.  Amendment
      to Section 6.01(d).
      Section
      6.01(d) of the Merger Agreement is hereby replaced in its entirety with the
      following:

     

    (d)
       declare,
      set aside, make or pay any dividend or other distribution, payable in cash,
      stock, property or otherwise, with respect to any of its capital
      stock;

     

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

     

    

     

    15.  Amendment
      to Section 6.01(h).
      Section
      6.01(h) of the Merger Agreement is hereby replaced in its entirety with the
      following:

     

    (h)
       pay,
      discharge or satisfy any claims, liabilities or obligations (absolute, accrued,
      asserted or unasserted, contingent or otherwise), other than the payment,
      discharge or satisfaction in the ordinary course of business and consistent
      with
      past practice, and with respect to the Company only, such payment of liabilities
      reflected or reserved against on the audited consolidated balance sheet of
      the
      Company dated as of December 31, 2007 previously presented to Parent and only
      to
      the extent of such reserves;

     

    16.  Amendment
      to Section 6.22.
      Section
      6.22 of the Merger Agreement is hereby replaced in its entirety with the
      following:

     

    Section
      6.22. [intentionally omitted] 

     

    17.  Amendment
      to Section 9.05.
      Section
      9.05 of the Merger Agreement is hereby replaced in its entirety with the
      following:

     

    Section
      9.05. Threshold
      for Damages.
      Except
      in the case of Damages in respect of fraud, the representations set forth in
      Section 3.03 (Capitalization),
      Section 3.09 (Employee
      and Labor Matters),
      Section 3.12 (Environmental
      Matters),
      Section 3.14 (Taxes),
      Section 4.03 (Title
      to Shares/Membership Interests),
      Section 5.02 (Capitalization),
      Section 5.13 (Employee
      Benefit Plans),
      Section 5.17 (Taxes)
      and
      Section 5.18 (Environmental
      Matters),
      an
      Indemnified Person may not make a claim for Damages until the aggregate amount
      of claims by Indemnified Persons exceeds $250,000; provided, however, that
      once
      the aggregate amount of Damages of Indemnified Persons exceed such threshold
      amount, then the Indemnified Persons shall have the right to recover the full
      amounts due without regard to the threshold. In determining the amount of any
      Damage attributable to a breach, any materiality standard contained in a
      representation, warranty or covenant of the Stockholders or the Company shall
      be
      disregarded.

     

    18.  Amendment
      to Schedule 6.06(i).
      Schedule 6.06(i) of the Merger Agreement is hereby replaced in its entirety
      with
      the following:

     

    
      
        	
                Allocation
                  Schedule

              
	 	 	 	 	 
	 	 	 	 	 
	
                Checking
                  / Savings

              	 	
                $

              	
                122,652

              	 
	
                Accounts
                  Receivable

              	 	 	
                118,876

              	 
	
                Undeposited
                  Funds

              	 	 	
                90,967

              	 
	
                Total
                  Current Assets

              	 	 	
                332,495

              	 
	
                Goodwill

              	 	 	
                835,010

              	 
	
                Total

              	 	
                $

              	
                1,500,000

              	 

      

    

     

    19.  Amendment
      to Exhibit A; Definition of EBITDA.
      The
      definition of EBITDA is hereby replaced in its entirety with the
      following:

     

    “EBITDA”
      means
      earnings before interest, taxes, depreciation and amortization, as calculated
      in
      accordance with GAAP to the extent that GAAP applies; provided, however, that
      with respect to the calculation of Actual EBITDA for the Annual Contingent
      Consideration Period ending December 31, 2008, EBITDA shall be adjusted to
      exclude the following items from expenses: (i) up to an aggregate of $750,000
      in
      costs incurred by the Company in connection with (A) the Closing and (B) those
      legal, accounting and other similar costs incurred by the Company solely as
      a
      result of its operation as a public company; (ii) up to an aggregate of $375,000
      of general and administrative costs incurred in connection with the
      establishment of a new office in Los Angeles, CA; (iii) up to an aggregate
      of
      $330,000 in costs associated with market research and investments in new
      business initiatives; and (iv) the Black-Scholes valuation of any stock-based
      awards granted during 2008 under the equity incentive plan that will be
      implemented, subject to stockholder approval, at the time of the consummation
      of
      the Merger;
      and
      provided further that with respect to the calculation of Actual EBITDA for
      the
      Annual Contingent Consideration Periods ending December 31, 2009 and December
      31, 2010, EBITDA shall be adjusted to exclude from expenses the Black-Scholes
      valuation of any stock-based awards granted during 2008, 2009 or 2010, as
      applicable, under the equity incentive plan that will be implemented, subject
      to
      stockholder approval, at the time of the consummation of the Merger.

     

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

    

     

    20.  Addition
      of Definition of Maximum EBITDA Target to Exhibit A.
      The
      following provision is hereby added as the definition of Maximum EBITDA Target
      to Exhibit A of the Merger Agreement to read in its entirety as
      follows:

     

    “Maximum
      EBITDA Target”
      means
      125% of the Annual EBITDA Target for each of Annual Contingent Consideration
      Periods ending December 31, 2008, December 31, 2009 and December 31,
      2010.

     

    21.  Addition
      of Definition of Minimum EBITDA Target to Exhibit A.
      The
      following provision is hereby added as the definition of Minimum EBITDA Target
      to Exhibit A of the Merger Agreement to read in its entirety as
      follows:

     

    “Minimum
      EBITDA Target”
      means
      85% of the Annual EBITDA Target for each of Annual Contingent Consideration
      Periods ending December 31, 2008, December 31, 2009 and December 31,
      2010.

     

    22.  Addition
      of Definition of Maximum Revenue Target to Exhibit A.
      The
      following provision is hereby added as the definition of Maximum Revenue Target
      to Exhibit A of the Merger Agreement to read in its entirety as
      follows:

     

    “Maximum
      Revenue Target”
      means
      125% of the Annual Revenue Target for each of Annual Contingent Consideration
      Periods ending December 31, 2008, December 31, 2009 and December 31,
      2010.

     

    23.  Addition
      of Definition of Minimum Revenue Target to Exhibit A.
      The
      following provision is hereby added as the definition of Minimum Revenue Target
      to Exhibit A of the Merger Agreement to read in its entirety as
      follows:

     

    “Minimum
      Revenue Target”
      means
      90% of the Annual Revenue Target for the Annual Contingent Consideration Period
      ending December 31, 2008, and 85% of the Annual Revenue Target for each of
      the
      Annual Contingent Consideration Periods ending December 31, 2009 and December
      31, 2010.

     

    24.  Amendment
      to Section 2(a)(i)(1).
      Section
      2(a)(i)(1) of Exhibit A of the Merger Agreement is hereby replaced in its
      entirety with the following:

     

    
      
        
        

      

      
        -
          6
          -

        
          

        

      

      
        
        

      

    

     

    
      	 	
              1)

            	
              If
                revenue, as calculated in accordance with GAAP, for an Annual Contingent
                Consideration Period (the “Actual
                Revenue”) equals
                or exceeds the Maximum Revenue Target for such fiscal year, then
                (1) the
                number of shares of Parent Common Stock equal to the Maximum Revenue
                Contingent Stock for such Stockholder with respect to such fiscal
                year, as
                set forth in Table B, shall vest and (2) such Stockholder shall receive
                an
                amount in cash equal to such Stockholder’s Maximum Revenue Contingent Cash
                with respect to such fiscal year, as set forth in Table B.
                

            

    

     

    25.  Amendment
      to Section 2(a)(i)(2).
      Section
      2(a)(i)(2) of Exhibit A of the Merger Agreement is hereby replaced in its
      entirety with the following:

     

    
      	 	
              2)

            	
              If
                the Actual Revenue for a fiscal year equals or exceeds the Minimum
                Revenue
                Target and is less than the Maximum Revenue Target for such fiscal
                year,
                then (1) with respect to each Stockholder, a number of shares of
                Parent
                Common Stock shall vest equal to the product of (A) such Stockholder’s
                Maximum Revenue Contingent Stock for such fiscal year, as set forth
                in
                Table B, and (B) (i) the Actual Revenue for such fiscal year divided
                by
                (ii) 125% of the Annual Revenue Target for such fiscal year (the
                “Annual Revenue
                Percentage”)
                and (2) each Stockholder shall receive an amount in cash equal to
                the
                product of (A) the Stockholder’s respective Maximum Revenue Contingent
                Cash for such fiscal year, as set forth in Table B, and (B) the Annual
                Revenue Percentage for such fiscal year; and any remainder of such
                Stockholder’s Maximum Revenue Contingent Stock or Maximum Revenue
                Contingent Cash shall be forfeited.

            

    

     

    26.  Amendment
      to Section 2(a)(i)(3).
      Section
      2(a)(i)(3) of Exhibit A of the Merger Agreement is hereby replaced in its
      entirety with the following:

     

    
      	 	
              3)
                

            	
              If
                the Actual Revenue for a fiscal year is less than the Minimum Revenue
                Target for such fiscal year, then (1) none of a Stockholder’s Maximum
                Revenue Contingent Stock for such fiscal year shall vest and all
                such
                shares shall be forfeited and (2) no Stockholder shall receive any
                cash
                payment with respect to his or her Maximum Revenue Contingent Cash
                for
                such fiscal year and such Maximum Revenue Contingent Cash shall be
                forfeited. 

            

    

     

    27.  Amendment
      to Section 2(a)(ii)(1).
      Section
      2(a)(ii)(1) of Exhibit A of the Merger Agreement is hereby replaced in its
      entirety with the following:

     

    
      	 	
              1)
                

            	
              If
                Actual EBITDA for an Annual Contingent Consideration Period  equals
                or exceeds the Maximum EBITDA Target for such fiscal year, then (1)
                the
                number of shares of Parent Common Stock equal to the Maximum EBITDA
                Contingent Stock for such fiscal year with respect to such Stockholder,
                as
                set forth on Table C, shall vest and (2) such Stockholder shall receive
                an
                amount in cash equal to such Stockholder’s Maximum EBITDA Contingent Cash
                for such fiscal year, as set forth in Table C.

            

    

     

    
      
        
        

      

      
        -
          7
          -

        
          

        

      

      
        
        

      

    

     

    28.  Amendment
      to Section 2(a)(ii)(2).
      Section
      2(a)(ii)(2) of Exhibit A of the Merger Agreement is hereby replaced in its
      entirety with the following:

     

    
      	 	
              2)
                

            	
              If
                the Actual EBITDA for a fiscal year equals or exceeds the Minimum
                EBITDA
                Target and is less than the Maximum EBITDA Target for such fiscal
                year,
                then (1) with respect to each Stockholder, a number of shares of
                Parent
                Common Stock shall vest equal to the product of (A) such Stockholder’s
                Maximum EBITDA Contingent Stock for such fiscal year, as set forth
                on
                Table C, and (B) (i) the Actual EBITDA for such fiscal year divided
                by
                (ii) 125% of the Annual EBITDA Target for such fiscal year (the
                “Annual EBITDA
                Percentage”)
                and (2) each Stockholder shall receive an amount in cash equal to
                the
                product of (A) the Stockholder’s respective Maximum EBITDA Contingent Cash
                for such fiscal year, as set forth on Table C, and (B) the Annual
                EBITDA
                Percentage for such fiscal year; and any remainder of such Stockholder’s
                Maximum EBITDA Contingent Stock or Maximum EBITDA Contingent Cash
                shall be
                forfeited.

            

    

     

    29.  Amendment
      to Section 2(a)(ii)(3).
      Section
      2(a)(ii)(3) of Exhibit A of the Merger Agreement is hereby replaced in its
      entirety with the following:

     

    
      	 	
              3)

            	
              If
                the Actual EBITDA for a fiscal year is less than the Minimum EBITDA
                Target
                for such fiscal year, then (1) none of a Stockholder’s Maximum EBITDA
                Contingent Stock for such fiscal year shall vest and all such shares
                shall
                be forfeited and (2) no Stockholder shall receive any cash payment
                with
                respect to his or her Maximum EBITDA Contingent Cash for such fiscal
                year
                and such Maximum EBITDA Contingent Cash shall be forfeited.
                

            

    

     

    30.  Amendment
      to Footnote 1 to Table A of Exhibit A.
      Footnote 1 to Table A of Exhibit A of the Merger Agreement is hereby replaced
      in
      its entirety with the following:

     

    1
      The
      numbers in these tables assume (1) $5.77 stock price (although the actual price
      used for this calculation will be the Trailing Closing Average Price), (2)
      $11M
      total contingent consideration ($4M in 2008, $4M in 2009 and $3M in 2010),
      (3)
      cash/stock split = 1/3 and 2/3, (4) Revenue/EBITDA split = 1/2 and 1/2. Numbers
      in tables B and C don’t add due to rounding.

    

    31.  Conflict.
      In the
      event of conflict between this Amendment and the Merger Agreement, this
      Amendment shall prevail.

     

    32.  No
      Other Amendment.
      Except
      as expressly provided in this Amendment, no other amendments to the Merger
      Agreement are made by this Amendment.

     

    
      
        
        

      

      
        -
          8
          -

        
          

        

      

      
        
        

      

    

     

    33.  Continuing
      Effectiveness.
      Except
      as amended by this Amendment, the Merger Agreement shall continue in full force
      and effect in accordance with its terms.

     

    34.  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. 

     

    35.  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.

     

     

    

    [Remainder
      of Page Intentionally Left Blank]

     

    
      
        
        

      

      
        -
          9
          -

        
          

        

      

      
        
        

      

    

     

    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 / /s/ Marc Lesnick
	 	
              Name:
                Yuval Cohen / Marc Lesnick

            
	 	
              Title:
                CEO / V.P.

            

    

     

     

    
      
        	 	
                FAC
                  ACQUISITION SUB CORP.

              
	 	 	 
	
              	By:  	/s/ Yuval
                Cohen /
                /s/ Marc Lesnick
	 	
                Name:
                  Yuval Cohen / Marc Lesnick

              
	 	
                Title:
                  CEO / V.P.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    
      	 	
              PSYOP,
                INC.

            
	 	 	 
	
            	By:  	/s/
              Eben Mears
	 	
              Name:
                Eben Mears

            
	 	
              Title:
                President

            

    

     

     

    
      	 	
              PSYOP
                SERVICES, LLC

            
	 	 	 
	
            	By:  	/s/
              Eben Mears
	 	
              Name:
                Eben Mears

            
	 	
              Title:
                President

            

    

     

    
      	 	/s/
              Justin Booth-Clibborn 
	 	
              JUSTIN
                BOOTH-CLIBBORN

            
	 	 
	 	/s/
              Hejung Marie Hyon
	 	
              HEJUNG
                MARIE HYON

            
	 	 
	 	/s/
              Justin Lane
	 	
              JUSTIN
                LANE

            
	 	 
	 	/s/
              Kylie Matulick
	 	
              KYLIE
                MATULICK

            
	 	 
	 	/s/
              Eben Mears
	 	
              EBEN MEARS

            
	 	 
	 	/s/
              Robert Todd Mueller
	 	
              ROBERT
                TODD MUELLER

            
	 	 
	 	/s/
              Samuel Selinger
	 	
              SAMUEL
                SELINGER

            
	 	 
	 	/s/
              Marco Spier
	 	
              MARCO
                SPIER

            
	 	 
	 	/s/
              Christopher Staves
	 	
              CHRISTOPHER
                STAVES

            
	 	 
	 	 
	 	
              STOCKHOLDERS’
                REPRESENTATIVE

            
	 	 
	 	
              By: 
                

            	/s/
              Justin Booth-Clibborn
	 	 	
              Justin
                Booth-Clibborn

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