Document:

Exhibit 10.22

 

AMENDMENT NO. 1 TO

 

AGREEMENT AND PLAN OF REORGANIZATION

 

This Amendment No. 1 to AGREEMENT AND PLAN OF REORGANIZATION (the “Amendment”) is made and entered into as of May 1, 2011 by and among:

 

·                  Velti plc, a company organized under the laws of the Bailiwick of Jersey (“Buyer”); and

 

·                  Mobclix, Inc., a Delaware corporation (“Seller).

 

RECITALS

 

A.            Seller, Buyer and Merger Sub are parties to that certain Agreement and Plan of Reorganization dated as of September 30, 2010 (the “Original Agreement”) pursuant to which Seller and Vortex Acquisition Sub, Inc., a Delaware corporation (“Merger Sub”), a wholly-owned subsidiary of Buyer, combined into a single company through the statutory merger of Merger Sub with and into Seller (the “Merger”).  Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Original Agreement for such terms.

 

B.            Pursuant to the Merger, among other things, the outstanding shares of Seller common stock, $0.0001 par value (“Seller Common Stock”), were converted into the right to receive the Merger Consideration upon the terms and subject to the conditions set forth in the Original Agreement.

 

C.            Pursuant to Section 8.10 of the Original Agreement, the Original Agreement may be amended by a writing executed by the party to be charged by the amendment.

 

D.            Seller and Buyer, the parties to be charged by the waiver, believe it is in the best interests of their respective companies and the stockholders or shareholders, as the case may be, of their respective companies that the parties amend the Original Agreement as set forth herein in this Amendment.

 

NOW, THEREFORE, in consideration of the covenants and representations set forth herein, and for other good and valuable consideration, the parties agree as follows:

 

1.                                       Section 2.6(t) of the Original Agreement is hereby amended in its entirety to provide as follows:

 

(t)            “Contingent Amount” shall equal the sum of (a) $17,280,000 and (b) the Additional Contingent Merger Consideration.  Payment of such Contingent Amount shall not be subject to achievement of the Gross Profit Component and the EBITDA Component.

 

2.                                       Sections 2.6(o), Section 2.6(q) and Section 2.6(r) are hereby deleted in their entirety.

 

3.                                       Section 2.6(s) is hereby amended in its entirety to provide as follows:

 

(s)           “Contingent Shares” shall equal the quotient, rounded up, of that number of whole shares of Buyer determined by dividing 99.2899% of the Contingent Amount by the Applicable Average closing Price on the Contingent Payment Date.

 

4.                                       Section 2.6(u) is hereby amended in its entirety to provide as follows:

 

(u)           “Contingent Bonus Pool” shall equal 0.7101% of the Contingent Amount, which amount is payable by the Seller pursuant to the terms of the Seller’s 2010 Sale Incentive Plan.

 

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5.                                       Section 2.6(v) is hereby amended in its entirety to provide as follows:

 

(v)           “Contingent Allen Fee” shall equal $720,000.

 

6.                                       Section 2.6(w) is hereby deleted in its entirety.

 

7.                                       Section 2.6(x) is hereby amended in its entirety to provide as follows:

 

Buyer shall pay Additional Contingent Merger Consideration (“Additional Contingent Merger Consideration”) on the Contingent Payment Date of $5 million if EBITDA of the Mobile Advertising Business Unit is more than $4.7 million for the year ended December 31, 2011.  Should EBITDA be less than $3.2 million, no Additional Contingent Merger Consideration shall be payable.  Provided EBITDA exceeds $3.2mm, then for every $0.94 of EBITDA generated, $1.00 of Additional Contingent Merger Consideration shall be payable up to a maximum Additional Contingent Merger Consideration of $5 million.  For purposes of this Section, “EBITDA” shall equal the amount determined as the Mobile Advertising Business Unit’s earnings before interest, taxes, depreciation and amortization under GAAP for the year ending December 31, 2011, provided that EBITDA, for purposes of the calculation of the Additional Contingent Merger Consideration, shall (i) exclude any and all accounting charges, whether compensation or otherwise, that are related, directly or indirectly, to the Deferred Share Awards, (ii) exclude the compensation costs of the product, engineering and research and development organization but (iii) include 50% of the customer development organization which shall be used to support the Mobile Advertising Business Unit other than the compensation costs of the product, engineering and research and development organization of the existing Mobclix business.  For purposes of this Section, “Mobile Advertising Business Unit” means the current mobile advertising business operated by the Buyer, including the Buyer’s Exchange and Marketplace business, and shall include the existing Mobclix exchange, the Velti ad server and ad router, and SDKs for the foregoing three as needed, and that portion of the media planner as it relates to accessing supply side inventory.

 

8.                                       Section 5.11 is hereby deleted in its entirety.

 

9.                                       Section 5.12 is hereby amended in its entirety to provide as follows:

 

5.12 Calculation of Additional Contingent Merger Consideration Statement.  As soon as reasonably practical after January, 1, 2012, but in any event no later than March 31, 2012, Buyer shall furnish to the Stockholder Representative a statement (the “Component Statement”) setting forth the Buyer’s determination of Additional Contingent Merger Consideration.  Unless, within the ten (10) Business Day period following the Stockholder Representative’s receipt of the Component Statement, the Stockholder Representative delivers written notice to the Buyer (the “Component Dispute Notice”) setting forth in reasonable detail any and all items of disagreement related to the Component Statement (each, an “Item of Dispute”), the Component Statement shall be conclusive and binding upon the Stockholder Representative and all stockholders of the Seller.  After the delivery of the Component Statement, the Stockholder Representative and his or her representatives shall be permitted reasonable access, during normal business hours, to books and records and working papers of the Buyer and Surviving Corporation that are substantially relevant to the Buyer’s preparation of the Component Statement; provided, that such access shall be for the sole purpose of reviewing the accuracy of the Component Statement, and provided further, that the Stockholder Representative and his or her representatives shall maintain all such books and records and working papers in strict confidence.

 

10.                                 Section 5.16 is hereby deleted in its entirety.

 

11.                                 Section 5.18 is hereby amended in its entirety to provide as follows:

 

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Deferred Share Awards.  Within fourteen (14) days after the Contingent Payment Date, Buyer shall issue deferred share awards in accordance with the standard terms,  provisions and conditions of Buyer’s current equity incentive plan to the individuals set forth on EXHIBIT I attached hereto.  The amount of deferred shares issuable shall be calculated by dividing the amount adjacent to each such individual’s name listed on EXHIBIT I by the average closing price of Buyer’s ordinary shares on the Buyer’s primary equity trading market for the ten (10) trading days preceding the Contingent Payment Date; provided, however, that (i) the amounts listed on EXHIBIT I shall be proportionately adjusted proportionately downward such that the aggregate amount issuable shall equal 11.739% of the Contingent Amount (but shall not in any event in the aggregate exceed the amounts set forth on EXHIBIT I; and (ii) all such awards are subject to vesting contingent upon continued service with the Surviving Corporation (the “Deferred Share Awards”)

 

12.                                 A new Section 5.19 is hereby added as follows:

 

The Management Team shall be responsible for integrating and managing the Mobile Advertising Business Unit, including the existing Mobclix exchange, the Velti ad server and ad router, and SDKs for the foregoing three as needed, and that portion of the media planner as it relates to accessing supply side inventory.  Although certain functions of the Mobile Advertising Business Unit shall be managed from Seller’s offices in Palo Alto, California, the Management Team shall operate the management and a significant portion of the other the operations of this Mobile Advertising Business Unit, other than certain engineering functions, from the Buyer’s offices in San Francisco, California.

 

13.                                 A new Section 5.20 is hereby added as follows:

 

Buyer agrees to pay to each member of the Management Team a cash retention bonus in the sum of $1.5 million each (the “Retention Bonus”), for an aggregate payment of $6 million,  subject to the continued employment of each such member of the Management Team from the date of this Amendment through December 31, 2012 (the “Employment Term”).  The Retention Bonus shall be payable upon January 31, 2013.  Should the employment of any member of the Management Team terminate prior to December 31, 2012 other than by the Company without Cause or by such member for Good Reason, the Retention Bonus payable to such person shall be forfeited in its entirety; should the member of the Management Team be terminated without Cause or should such member resign for Good Reason prior to December 31, 2012, then the Retention Bonus shall still be payable on January 31, 2013.  Any forfeited Retention Bonus shall not be available for redistribution to other members of the Management Team.  During the period of the Employment Term, Buyer or its affiliates will not (i) terminate the employment of any member of the Management Team other than for Cause or (ii) create the circumstances for voluntary resignation by any member of the Management Team for Good Reason (as each is defined below).  In the event the employment of any member of the Management Team is terminated for Cause prior to the Contingent Payment Date, such person shall not be entitled to receive any portion of the Retention Bonus.

 

For purposes of this Section, “Cause” means (a) acts or omissions constituting gross negligence, recklessness or willful misconduct on the part of such person with respect to such person’s obligations or otherwise relating to the business of Buyer or its affiliates; (b)  such person’s material breach of his employment agreement with Buyer or its affiliates and his failure to reasonably cure such breach after provision of 30 days written notice from Buyer of such alleged breach; (c) his conviction or entry of a plea of nolo contendere for fraud, misappropriation or embezzlement, or any felony or crime of moral turpitude; or. (d) his willful neglect of duties as reasonably determined by Buyer’s Board of Directors, including failure to reasonably complete the reasonable business objectives established for the Mobile Advertising Business Unit. that have previously been communicated by Buyer in writing to him, provided that termination for failure to meet such objectives shall not occur until after he has been notified in writing that he has failed to meet such objectives and been given a reasonable opportunity to cure such failure of not less than one quarter.  For purposes hereof, the Mobile Advertising Business Unit initially

 

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shall include the existing Mobclix exchange, the Velti ad server and ad router, and SDKs for the foregoing three as needed, and that portion of the media planner as it relates to accessing supply side inventory.  To the extent that any business objectives are reasonably added in the future to the Mobile Advertising Business Unit, each member of the Management Team shall be provided at least six months to achieve such new objectives prior to determining that the failure to meet any such objectives shall constitute Cause for purposes of termination of his employment.

 

Grounds for “Good Reason” shall exist in the following circumstances, provided that such person has provided Buyer with 30 days written notice thereof and an opportunity to cure such circumstances during such 30 day period: (a) Buyer’s or its affiliates material breach of such person’s employment agreement; (b) such person’s position and/or duties are materially reduced so that his duties are no longer consistent with the duties of a senior executive of an organization, similar in size and scope, in the business of the Buyer; (c) such person’s level of compensation is materially reduced, unless such reduction occurs in connection with a general reduction in compensation payable to all of Buyer’s or its affiliates employees, or (d) Buyer relocates his principal place of work to a location more than fifty (50) miles from his Work Location, as defined in the employment agreement with such member of the Management Team, without his prior written approval.

 

14.                                 On and after the date hereof, each reference in the Original Agreement to “this Agreement,” “herein,” “hereof,” “hereunder” or words of similar import shall mean and be a reference to the Original Agreement as amended hereby.  Except as otherwise expressly provided herein, all of the terms and conditions of the Original Agreement remain unchanged and continue in full force and effect. This Amendment is limited precisely as written and shall not be deemed to be an amendment to any other term or condition of the Original Agreement or any of the documents referred to therein.

 

15.                                 This Amendment shall form a part of the Original Agreement for all purposes, and each party hereto and thereto shall be bound hereby. From and after the execution of this Amendment by the parties hereto, any reference to the Original Agreement shall be deemed a reference to the Original Agreement as amended hereby. This Amendment shall be deemed to be in full force and effect from and after the execution of this Amendment by the parties hereto.

 

16.                                 This Amendment may be executed in one or more counterparts, all of which shall be considered 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 each of the other parties, it being understood that all parties need not sign the same counterpart.

 

17.                                 This Amendment shall be governed in all respects, including validity, interpretation and effect, by the laws of the State of California.

 

18.                                The descriptive headings of the several Sections of this Amendment were formulated, used and inserted in this Amendment for convenience only and shall not be deemed to affect the meaning or construction of any of the provisions hereof.

 

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IN WITNESS WHEREOF, Buyer, Seller and Merger Sub have caused this Agreement to be executed and delivered by their respective officers thereunto duly authorized, all as of the date first written above.

 

	
SELLER:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   SUMIT RAI
    	
 
    
	
 
    	
Sumit   Rai
    	
 
    
	
 
    	
President
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
BUYER:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   ALEX MOUKAS
    	
 
    
	
 
    	
Alex   Moukas
    	
 
    
	
 
    	
Chief   Executive Officer
    	
 
    

 

5Exhibit 10.13.7

 

	

    	
PERFORMANCE GROWTH AWARD   AGREEMENT
    	
 
    

 

1.        The Grant.  Alliant Techsystems Inc., a Delaware corporation (the “Company”), hereby grants to you, on the terms and conditions set forth in this Performance Award Agreement (this “Agreement”) and in the Alliant Techsystems Inc. 2005 Stock Incentive Plan (the “Plan”), a Performance Award as of the date, and for the number of Shares (the “Performance Shares”), which the Company or its agent provided to you separately in writing through an electronic notice and on-line award acceptance web page (the “Electronic Notice and On-Line Award Acceptance”).

 

2.        Measuring Period.  The Measuring Period for purposes of determining whether the Company will pay you the Performance Shares shall be fiscal years 2012 through 2014.

 

3.         Performance Goals.  The Performance Goals for purposes of determining whether the Company will pay you the Performance Shares are set forth in the Performance Accountability Chart, which the Company provided to you separately in writing.

 

4.         Payment.  The Company will pay you the Performance Shares if and to the extent that the Performance Goals are achieved, as set forth in the Performance Accountability Chart and as determined by the Personnel and Compensation Committee of the Company’s Board of Directors (the “Committee”) in its sole discretion.  Notwithstanding the foregoing, the Committee has the discretion to adjust the payment level downward from the level of performance actually achieved.

 

5.        Form and Timing of Payment. The Company will pay you any shares payable pursuant to this Agreement in shares of common stock of the Company (the “Shares”), with one Share issued for each Performance Share earned.  The Company will pay you the Performance Shares as soon as practicable after the Committee determines, in its sole discretion, after the end of the Measuring Period, whether, and the extent to which, the Performance Goals have been achieved, but in no event later than 2 1⁄2 months after the end of the Measuring Period.

 

6.        Change in Control.  After a Change in Control (as defined in Appendix A to this Agreement), the Performance Shares shall immediately be payable at the threshold performance level, but prorated for your active service time with the Company during the Measuring Period.  However, if you are or become a participant in the Company’s Income Security Plan or any successor or substitute plan (the “ISP”), the terms of payment of the Performance Shares shall be governed by the provisions of the ISP.

 

7.         Forfeiture.  In the event of your termination of employment prior to the end of the Measuring Period, other than by reason of death, Disability (as defined in Appendix A to this Agreement), retirement, or voluntary or involuntary layoff, all of your Performance Shares and rights to payment of any Shares shall be immediately and irrevocably forfeited.  In the event of your termination of employment prior to the end of the Measuring Period by reason of Disability, retirement, or voluntary or involuntary layoff, you shall be entitled to receive, after the end of the Measuring Period, the number of Shares determined by the Committee pursuant to this Agreement, but prorated for your active service time with the Company during the Measuring Period.  In the event of your death prior to the end of the Measuring Period, your estate shall be entitled to receive, within a practicable time after your death, payment of the Performance Shares at the threshold performance level, but prorated for your active service time with the Company during the Measuring Period.  In the event you are reassigned to a position and as a result you are no longer eligible for Performance Shares, you shall be entitled to receive, after the end of the Measuring Period, the number of Shares determined by the Committee pursuant to this Agreement, but prorated for your service time as an eligible participant during the Measuring Period.  The Committee reserves the right to recoup Awards, or the value of Awards, from you in the event there is a material restatement of the Company’s financial results.  If the Committee determines a recoupment is appropriate in the exercise of its discretion, considering all the facts and circumstances, you shall forfeit and pay back such portion, or all, of the outstanding or previously awarded Awards as determined by the Committee in its sole discretion.This recoupment provision includes Awards deferred into the ATK Nonqualified Deferred Compensation Plan.

 

8.         Holding Requirement. As long as you serve as an “executive officer” of the Company, as defined by federal securities regulations, you will be required to retain at least 30% of the total number of Shares earned under the terms of this Agreement.  See the Stock Holding policy for additional information.

 

9.         Rights.  Nothing herein shall be deemed to grant you any rights as a holder of Shares unless and until the Company actually issues the Shares to you as provided herein.

 

10.   Income Taxes.  You are liable for any federal, state and local income or other taxes applicable upon the grant of the Performance Shares, the receipt of the Shares, or subsequent disposition of the Shares, and you acknowledge that you should consult with your own tax advisor regarding the applicable tax consequences.  Upon payment of the Performance Shares and/or issuance of the Shares to you, the Company will pay your required minimum statutory withholding taxes by withholding Shares otherwise to be delivered upon the payment of the Performance Shares with a Fair Market Value (as defined in the Plan) equal to the amount of such taxes.  Alternatively, if you notify the Company prior to the end of the Measuring Period, you may elect to pay all or a portion of the minimum statutory withholding taxes by (a) delivering to the Company Shares other than Shares issuable upon the payment of the Performance Shares with a Fair Market Value equal to the amount of such taxes or (b) paying cash, provided that if you do not deliver such Shares or cash to the Company by the second business day after the payment date of the Performance Shares, the Company will pay your required minimum statutory withholding taxes by withholding Shares otherwise to be delivered upon the payment of the Performance Shares with a Fair Market Value equal to the amount of such taxes.

 

11.   Acknowledgment.  This Award of Performance Shares shall not be effective until you agree to the terms and conditions of this Agreement and the Plan, and acknowledge receipt of a copy of the Prospectus relating to the Plan, by accepting this Award in writing or electronically as specified by the Company or its agent in the Electronic Notice and On-Line Award Acceptance.

 

ALLIANT TECHSYSTEMS INC.

Mark W. DeYoung

	
President & Chief Executive Officer
    

 

 

Alliant Techsystems Inc. 2005 Stock Incentive Plan

 

Appendix A to Award Agreement

 

“Change in Control” means any of the following:

 

·                  The acquisition by any “person” or group of persons (a “Person”), as such terms are used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than the Company or a “Subsidiary” (as defined below) or any Company employee benefit plan (including its trustee)) of “beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act) (“Beneficial Ownership”), directly or indirectly, of securities of the Company representing, directly or indirectly, more than 50% of the total number of shares of the Company’s then outstanding “Voting Securities” (as defined below);

 

·                  consummation of a reorganization, merger or consolidation of the Company, or the sale or other disposition of all or substantially all of the Company’s assets (a “Business Combination”), in each case, unless, following such Business Combination, the individuals and entities who were the beneficial owners of the total number of shares of the Company’s outstanding Voting Securities immediately prior to both (1) such Business Combination, and (2) any “Change Event” (as defined below) occurring within 12 months prior to such Business Combination, beneficially own, directly or indirectly, more than 50% of the total number of shares of the outstanding Voting Securities of the resulting corporation, or the acquiring corporation, as the case may be, immediately following such Business Combination (including, without limitation, the outstanding Voting Securities of any corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the total number of shares of the Company’s outstanding Voting Securities; or

 

·                  any other circumstances (whether or not following a Change Event) which the Company’s Board of Directors (the “Board”) determines to be a Change in Control for purposes of this Plan after giving due consideration to the nature of the circumstances then represented and the purposes of this Plan.  Any such determination made by the Board shall be irrevocable except by vote of a majority of the members of the Board who voted in favor of making such determination.

 

For purposes of this definition, a “Change in Control” shall not result from any transaction precipitated by the Company’s insolvency, appointment of a conservator, or determination by a regulatory agency that the Company is insolvent.

 

For purposes of this definition:

 

·                  “Change Event” means

 

(1)          the acquisition by any Person (other than the Company or a Subsidiary or any Company employee benefit plan (including its trustee)) of Beneficial Ownership, directly or indirectly, of securities of the Company directly or indirectly representing 15% or more of the total number of shares of the Company’s then outstanding Voting Securities (excluding the sale or issuance of such securities directly by the Company, or where the acquisition of such securities is made by such Person from five or fewer stockholders in a transaction or transactions approved in advance by the Board);

 

 

(2)          the public announcement by any Person of an intention to acquire the Company through a tender offer, exchange offer, or other unsolicited proposal; or

 

(3)          the individuals who are members of the Board (the “Incumbent Board”) as of the Grant Date set forth in the Award Agreement cease for any reason to constitute at least a majority of the Board; provided, however, that if the nomination for election of any new director was approved by a vote of a majority of the Incumbent Board, such new director shall, for purposes of this definition, be considered a member of the Incumbent Board.

 

·                  “Subsidiary” means a corporation as defined in Section 424(f) of the Internal Revenue Code with the Company being treated as the employer corporation for purposes of this definition.

 

·                  “Voting Securities” means any shares of the capital stock or other securities of the Company that are generally entitled to vote in elections for directors.

 

*                              *                              *                              *

 

“Disability” means that you have been determined to have a total and permanent disability either by

 

·                  being eligible for disability for Social Security purposes, or

 

·                  being totally and permanently disabled under the Company’s long-term disability plan.

 

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