Exhibit
2.1
AMENDMENT NO. 5 TO
PLAN OF
REORGANIZATION
AND
STOCK PURCHASE
AGREEMENT
This Amendment
No. 5 to the Plan of Reorganization and Stock Purchase
Agreement entered into by and among Modavox, Inc.
(“Buyer”), a Delaware corporation, New Aug, LLC, a
Delaware limited liability company (“Seller”) and Augme
Mobile, Inc. (to be formed) (“Newco”) as of January 16,
2009, and as amended as of March 3, 2009 (“Amendment No.
1”), March 31, 2009 (“Amendment No. 2”), June 4,
2009 (“Amendment No. 3”) and June 30, 2009
(“Amendment No. 4”) (collectively, the
“Agreement”), is approved and entered into as of July
__, 2009 (“Amendment Effective
Date”). Capitalized terms used but not defined
herein have the meanings assigned to them in the
Agreement.
Recitals
WHEREAS, Buyer,
Seller and Newco (to be formed by Seller) previously entered into
the Agreement, the purpose of which was to facilitate the
acquisition of up to one hundred percent (100%) of Seller’s
mobile marketing business and related assets, subject to
Seller’s rights to retain minority ownership of the assets
under certain conditions and Seller’s right to re-acquire
transferred assets under certain conditions;
WHEREAS, under
the Agreement as originally contemplated, Seller would transfer
assets of the business to a new entity (“Newco”) and
Buyer would subsequently acquire 100% of the stock of
Newco;
WHEREAS, under
the Agreement, the Purchase Price to be paid by Buyer at Closing
includes (but is not limited to) transferring to Newco one million
dollars ($1,000,000) in operating cash (“Majority
Cash”) as well as the issuance to Seller of certain common
stock of Buyer;
WHEREAS,
Section 15.10 of the Agreement (“Amendment &
Waivers”) permits the amendment of the Agreement by mutual
written agreement;
WHEREAS, in order to assist Seller with certain
cash flow needs prior to Closing, which Closing was originally
required under the Agreement to occur no later than March 31, 2009,
Buyer, Seller and Newco previously executed an Amendment to the
Plan of Reorganization and Stock Purchase Agreement, effective as
of March 3, 2009, pursuant to which Buyer transferred to Seller
twenty five thousand dollars ($25,000) as an advance on the
Majority Cash, reducing the outstanding Majority Cash required to
Close to nine hundred and seventy five thousand dollars ($975,000)
(“Amendment No. 1”);
WHEREAS, in recognition of the fact that the
conditions required to Close the Transaction, including the
Majority Cash requirement, would not be satisfied on or before the
Closing Date (to be no later than March 31, 2009), Buyer, Seller
and Newco previously executed a second Amendment to the Plan of
Reorganization and Stock Purchase Agreement, effective as of March
31, 2009, pursuant to which Buyer transferred to Seller two hundred
and fifty thousand dollars ($250,000), as an advance on the
Majority Cash, reducing the outstanding Majority Cash required to
Close to seven hundred and twenty five thousand dollars ($725,000),
and extending the Closing Date until June 30, 2009
(“Amendment No. 2”);
WHEREAS, in order to assist Seller with certain
cash flow needs prior to Closing, which Closing was required under
the Agreement to have occurred no later than June 30, 2009, Buyer,
Seller and Newco previously executed a third Amendment to the Plan
of Reorganization and Stock Purchase Agreement, effective as of
June 4, 2009, pursuant to which Buyer transferred to Seller fifty
thousand dollars ($50,000) as an advance on the Majority Cash,
reducing the outstanding Majority Cash required to Close to six
hundred and seventy five thousand dollars ($675,000)
(“Amendment No. 3”);
WHEREAS, in order to give the parties additional
time to close, Buyer, Seller and Newco previously executed a fourth
Amendment to the Plan of Reorganization and Stock Purchase
Agreement, effective as of June 30, 2009, pursuant to which the
last date for Closing was extended from June 30, 2009 to July 10,
2009 (“Amendment No. 4”);
WHEREAS, the parties remain interested in
pursuing the business consolidation contemplated by the Agreement
(specifically, accelerated acquisition by Buyer from Seller of the
Business and the 100% of the Acquired Assets) under modified and
simplified terms (without requiring Buyer to fund the remaining
$675,000 of the Majority Cash as a condition to Close), pursuant to
which the Acquired Assets will be transferred directly from Seller
to Buyer as of July ___, 2009 (in lieu of the transfer of the
Acquired Assets to Newco and the subsequent acquisition of Newco by
Buyer, per the terms of the original Agreement), according to the
terms and conditions described below.
The Parties
hereto consent and agree as follows:
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The name of the
Agreement is changed to the “Asset Purchase Agreement Between
Modavox, Inc. and New Aug, LLC” and references throughout the
Agreement are hereby modified accordingly and any references to
Newco in the Agreement will be construed as references to
Seller.
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The Recitals in
the Agreement are superseded by the Recitals in this Amendment No.
4. Section 1 of the Agreement is hereby amended to add,
in alphabetical order, the following definition: “
Business shall mean the technology and software company
operated by Seller that specializes in mobile marketing solutions
and services.”
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In Section 1,
the definition of “Acquired Assets” is amended to
delete the words “excluding Cash (except that cash deposits
and pre-pays form customers for work yet to be done post-Closing by
Newco will be a transferred Acquired Asset)” and to
substitute in lieu thereof the words “including
Cash”.
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Section 2 of
the Agreement (“Basic Transaction”), as previously
amended by Amendment No. 1, Amendment No. 2, Amendment No. 3 and
Amendment No. 4, is hereby further amended to read, in its
entirety, as follows:
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2.1
Sale of Acquired Assets to Buyer . Subject to the
terms and conditions of this Agreement, upon the Closing Date
Seller will transfer to Buyer, free and clear of all Encumbrances,
all of the Acquired Assets, but not the Excluded Assets, in
exchange for the Acquired Asset Purchase Price described
below.
2.2
No Assumption of Liabilities . Buyer will not
assume or have any responsibility with respect to any obligation or
any of the Liabilities of either Seller or the Business except for
any Liability under existing contracts related to the current and
ongoing delivery of services and management of Seller’s
Business which will be transferred to and honored by
Buyer. For the avoidance of any doubt, Buyer will not
assume or be responsible for Seller’s debt obligation or loan
payable to Joe Leahy.
2.3
Acquired Asset Purchase Price . The total
purchase price, payable or transferable to Seller by Buyer, for the
Acquired Assets (the “Acquired Asset Purchase Price”)
is (i) the portion of the Majority Cash already transferred to
Seller under Amendment No. 1 ($25,000), Amendment No. 2 ($250,000)
and Amendment No. 3 ($50,000); (ii) issuance to Seller of shares of
Buyer’s common stock (MDVX: Modavox “Commons
Stock”) as defined in Section 2.4(c)
below (“Seller Equity”); and (iii)
Buyer’s previous grant to Seller, as of the original
Agreement Date (January 16, 2009), of an exclusive, fully paid,
perpetual and irrevocable license to use (but not to
sublicen