Document:

fs1a22011ex10ii_aivtech.htm

Exhibit 10.2

 

AMENDMENT AGREEMENT

TO

SUBSCRIPTION AGREEMENT

This Amendment Agreement (this “Amendment”) is made effective as of May 31, 2011 (the “Effective Date”) by and between _________________, a Hong Kong limited liability company (the “Investor”), and AIVtech International Group Co., a Nevada corporation (the “Company”).

WITNESSETH:

WHEREAS, the Company and the Investor are parties to that certain Subscription Agreement dated as of December 29, 2010 (the “Subscription Agreement”);

WHEREAS, the Company and the Investor now desire to amend the Subscription Agreement to reflect mutually agreed upon revised terms in accordance with the provisions of this Amendment.

NOW THEREFORE, in consideration of the promises and mutual covenants contained herein, and intending to be legally bound hereby, the parties hereto agree as follows:

	
1.  

	
Definitions. Capitalized terms used herein, but not otherwise defined, shall have the meanings ascribed to them in the Subscription Agreement.

	
2.  

	
Demand Registration Rights. The Company and the Investor agree to amend the Investor’s registration rights solely for the purpose of removing the language “for resale and distribution.” As such, Section 8(a) of the Subscription Agreement shall be amended and restated in its entirety to read as follow:

  

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Registration Statement Requirements.  The Company shall file with the Commission a Form S-1 registration statement (the “Registration Statement”) (or such other form that it is eligible to use) in order to register all or such portion of the Registrable Shares as permitted by the Commission (provided that the Company shall use diligent efforts to advocate with the Commission for the registration of all of the Registrable Shares) pursuant to Rule 415 under the 1933 Act on or before the date (the “Required Filing Date”) which is thirty (30) calendar days after the Closing Date, and use its best efforts to cause the Registration Statement to be declared effective by the date (the “Required Effective Date”) which is not later than one hundred eighty (180) calendar days after the Closing Date. The Company will register not less than 100% of the Purchased Shares and the Warrant Shares in the aforedescribed Registration Statement (the “Registrable Shares”).  In the event that the Company is required by the Commission to cutback the number of shares being registered in the Registration Statement pursuant to Rule 415, then the Company shall reduce the Registrable Shares pro rata, and unless otherwise directed in writing by the Subscriber as to its Registrable Shares, the number of Registrable Shares to be registered on such Registration Statement will first be reduced by Registrable Shares represented by Warrant Shares and second by Registrable Shares represented by Purchased Shares.  Notwithstanding anything to the contrary contained in this Section 8, if the Company receives Commission Comments, and following discussions with and responses to the Commission in which the Company uses its reasonable best efforts and time to cause as many Registrable Shares for as many Subscribers as possible to be included in the Registration Statement filed pursuant to Section 8(a) without characterizing any Subscriber as an underwriter, the Company is unable to cause the inclusion of all Registrable Shares in such Registration Statement, then the Company may, following not less than three (3) Trading Days prior written notice to the Subscribers, (x) remove from the Registration Statement such Registrable Shares (the “Cut Back Shares”) and/or (y) agree to such restrictions and limitations on the registration and resale of the Registrable Shares, in each case as the Commission may require in order for the Commission to allow such Registration Statement to become effective; provided, that in no event may the Company name any Subscriber as an underwriter without such Subscriber’s prior written consent (collectively, the “Commission Restrictions”). Unless the Commission Restrictions otherwise require, any cut-back imposed pursuant to this Section 8(a) shall be allocated among the Registrable Shares of the Subscribers on a pro rata basis. No liquidated damages under Section 8(d) shall accrue on or as to any Cut Back Shares, and the required Commission Effectiveness Date for such additional Registration Statement including the Cutback Shares will be tolled, until such time as the Company is able to effect the registration of the Cut Back Shares in accordance with any Commission Restrictions (such date, the “Restriction Termination Date”). From and after the Restriction Termination Date, all provisions of this Section 8 (including, without limitation, the liquidated damages provisions, subject to tolling as provided above) shall again be applicable to the Cut Back Shares (which, for avoidance of doubt, retain their character as “Registrable Shares”) so that the Company will be required to file with and cause to be declared effective by the Commission such additional Registration Statements in the time frames set forth herein as necessary to ultimately cause to be covered by effective Registration Statements all Registrable Shares (if such Registrable Shares cannot at such time be resold by the Subscribers thereof pursuant to Rule 144).

 

	
3.  

	
Counterparts; Facsimile Signatures. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute a single instrument.  This Agreement may be executed by facsimile signatures.

 

  

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to the Subscription Agreement to be executed by their duly authorized representatives as of the date first indicated above.

 

	 	The Investor:	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

 

	 	AIVTECH INTERNATIONAL GROUP CO.	 
	 	 	 	 
	
 

	
By: 

	/s/ Jinlin Guo	 
	 	 	Name: Jinlin Guo	 
	 	 	Title: Chief Executive Officer	 
	 	 	 	 

 

 

 

 

 

 3f8k053111ex10i_adsinmotion.htm

Exhibits 10.1

 

AMENDMENT NO.1 TO

 

SECURITIES PURCHASE AGREEMENT

 

This AMENDMENT NO.1 TO SECURITIES PURCHASE AGREEMENT (this “Amendment”) dated as of May 31, 2011 (the “Effective Date”) is entered into by and among Ads In Motion, Inc., a Delaware corporation (the “Company”), and each of the several purchasers signatory hereto (each such purchaser, an “Original Purchaser” and, collectively, the “Original Purchasers”).

 

Recitals

 

WHEREAS, pursuant to an offering by the Company of its securities (the “Offering”), the parties hereto entered into a Securities Purchase Agreement, dated as of March 25, 2011 (the “Original Agreement”), pursuant to which the Company sold to the Original Purchasers (i) Senior Subordinated Secured Convertible Notes in the aggregate principal amount of $2,019,783 (the “Notes”); (ii) five-year warrants to purchase an aggregate of 1,732,229 shares of common stock at an initial exercise price of $0.67 per share (the “A Warrants”); and (iii) five-year warrants to purchase an aggregate of 1,732,229 shares of common stock at an initial exercise price of $0.73 per share (the “B Warrants” and together with the A Warrants, the “Warrants”);

 

WHEREAS, as an incentive to prospective investors to subscribe to the Offering, the Company desires to issue shares of its Common Stock to subscribers in the Offering whose subscriptions are accepted by the Company on or after the Effective Date;

 

WHEREAS, as an inducement and a condition to the Original Purchasers entering into this Amendment, the Company has agreed to grant shares of Common Stock to the Original Purchasers;

 

WHEREAS, an amendment of the Original Agreement requires the approval of the Company and the holders of at least 67% of the Registrable Securities (excluding any Registrable Securities held by the Company or any of its Subsidiaries) issued or issuable under the Original Agreement or pursuant to the Notes and/or the Warrants; and

 

WHEREAS, the Original Purchasers, as the holders of all of the Registrable Securities, and the Company now desire to amend the Original Agreement on the terms and conditions set forth in this Amendment.

 

NOW, THEREFORE, in consideration of the foregoing, and of the mutual representations, warranties, covenants, and agreements herein contained, the parties hereto agree as follows:

 

Agreement

 

Section 1. Defined Terms. Unless otherwise indicated herein, all terms which are capitalized but are not otherwise defined herein shall have the meaning ascribed to them in the Original Agreement.

 

 

  

1

  

 

Section 2. Amendment to Original Agreement.  The Original Agreement is hereby amended to add a new Section 4.29 to Article IV of the Original Agreement, which Section 4.29 shall read in its entirety as follows:

 

“4.29           Incentive Shares.  Each Purchaser whose subscription to the Offering is accepted by the Company on or after May 5, 2011 (each, a “Subsequent Purchaser”) shall be entitled to receive that number of shares of Common Stock equal to the product of (y) such Subsequent Purchaser’s Principal Amount multiplied by (z) 75% (the “Incentive Shares”).  The Incentive Shares, when issued in accordance with the terms of this Agreement, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company.  Each such Subsequent Purchaser agrees and acknowledges that (i) the Incentive Shares shall be deemed “Securities” for purposes of Sections 3.2 and 4.1 of this Agreement; and (ii) the Incentive Shares shall not be Registrable Securities.”

 

Section 3. Issuance of Consideration Shares.  To induce the Original Purchasers to enter into this Amendment, the Company shall issue to each Original Purchaser that number of shares of Common Stock equal to the product of (y) such Original Purchaser’s Principal Amount multiplied by (z) 75% (the “Consideration Shares”).  The Consideration Shares, when issued in accordance with the terms of this Amendment, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company.  The parties hereto agree and acknowledge that the Consideration Shares shall be deemed “Securities” for purposes of Sections 3.2 and 4.1 of the Original Agreement and each Original Purchaser hereby reaffirms to the Company the representations and warranties set forth in Section 3.2 of the Original Agreement with respect to the Consideration Shares.  Each Original Purchaser agrees and acknowledges that the Consideration Shares are not Registrable Securities.

 

Section 4. Acknowledgement; Waiver.  The parties hereto agree and acknowledge that: (i) neither the issuance of the Incentive Shares nor the issuance of the Consideration Shares constitute a Subsequent Financing or a Dilutive Issuance (as defined in the Notes and the Warrants); (ii) no adjustments to the Conversion Price or Exercise Price (as defined in the Warrants) shall be made with respect to the issuance of the Incentive Shares or the issuance of the Consideration Shares; (iii) Section 4.10 of the Original Agreement is not applicable to the issuance of the Incentive Shares or the issuance of the Consideration Shares; and (iv) neither the issuance of the Incentive Shares nor the issuance of the Consideration Shares constitutes an Event of Default under any of the Transaction Documents.  The Original Purchasers shall and do hereby waive all rights and remedies, if any, that would otherwise be available to the Original Purchasers under the Original Agreement, Notes, Warrants or any of the other Transaction Documents as a result of the issuance of the Incentive Shares or the Consideration Shares.

 

Section 5. Ratifications; Inconsistent Provisions. Except as otherwise expressly provided herein, the Original Agreement, is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that on and after the Effective Date: (i) all references in the Original Agreement to “this Agreement”, “hereto”, “hereof”, “hereunder” or words of like import referring to the Original Agreement shall mean the Original Agreement as amended by this Amendment and  (ii) all references in the other Transaction Documents, to “the Securities Purchase Agreement”, “the Purchase Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Original Agreement shall mean the Original Agreement as amended by this Amendment.  Notwithstanding the foregoing to the contrary, to the extent that there is any inconsistency between the provisions of the Original Agreement and this Amendment, the provisions of this Amendment shall control and be binding.

 

  

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Section 6. Counterparts. This Amendment may be executed in any number of counterparts, all of which will constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party.  Facsimile or other electronic transmission of any signed original document shall be deemed the same as delivery of an original.

 

[Signatures follow on next page]

 

 

  

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

 

Company:

ADS IN MOTION, INC.

By:    /s/ Jordan Glatt                                                        

Name: Jordan Glatt

Title: President and Chief Executive Officer

 

 

 

[Amendment No. 1 to Securities Purchase Agreement]

  

  

  

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

 

Original Purchaser:

BRIO CAPITAL L.P.

 

By:    /s/ Shaye Hirsch                                                          

Name: Shaye Hirsch

Title: Managing Partner

 

 

 

[Amendment No. 1 to Securities Purchase Agreement]

  

  

  

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

 

Original Purchaser:

BRIO CAPITAL SELECT LLC

By:    /s/ Shaye Hirsch                                                                  

Name: Shaye Hirsch

Title: Managing Member

 

 

 

[Amendment No. 1 to Securities Purchase Agreement]

  

  

  

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

 

Original Purchaser:

CAPE ONE FINANCIAL MASTER FUND, LTD.

 

By:    /s/ Reid Drescher                                                      

Name: Reid Drescher

Title: Director

 

 

 

[Amendment No. 1 to Securities Purchase Agreement]

  

  

  

 

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

 

Original Purchaser:

BERDON VENTURE ASSOCIATES, LLC

By:    /s/ Frederick Berdon                                                

Name: Frederick Berdon

Title: Managing Member

 

 

 

[Amendment No. 1 to Securities Purchase Agreement]

  

  

  

 

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

 

Original Purchaser:

 

/s/ Herbert Glatt                                                                          

HERBERT GLATT

 

 

 

[Amendment No. 1 to Securities Purchase Agreement]

  

  

  

 

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

 

Original Purchaser:

 

/s/ Lee Karls                                                                                    

LEE KARLS

 

 

 

[Amendment No. 1 to Securities Purchase Agreement]

  

  

  

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

 

Original Purchaser:

ROSTA, LLC

 

By:    /s/ R.J. Goldfein                                                        

Name: R.J. Goldfein

Title: Managing

 

 

 

[Amendment No. 1 to Securities Purchase Agreement]

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