diff --git a/.gitignore b/.gitignore
index cde1e9f..cdc9c74 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,4 +1,3 @@
 node_modules
-jam
 assets
-records.json
\ No newline at end of file
+npm-debug.log
\ No newline at end of file
diff --git a/README.md b/README.md
index f3e9cf3..6bec634 100644
--- a/README.md
+++ b/README.md
@@ -1,16 +1,15 @@
 # webpack webapp example
 
-For demonstration this app uses `npm` and `jam` package manager.
+For demonstration this app uses `npm` package manager.
 
 Install and build this app with:
 
 ``` text
 # You need to have node.js installed
-npm install jamjs@0.2.x webpack@1.2.x webpack-dev-server@1.2.x -g
+npm install
 
 cd example-app
 npm install
-jam install
 
 webpack -p --progress --colors --devtool sourcemap --hot
 webpack -p --progress --colors --devtool sourcemap --hot --config webpack-update1.config.js
@@ -18,8 +17,6 @@ webpack -p --progress --colors --devtool sourcemap --hot --config webpack-update
 index.html
 ```
 
-NOTE: It's a production ready build, so it may take a while.
-
 For watching and debugging you can alternatively compile with:
 
 ``` text
diff --git a/app/app.js b/app/app.js
index 1d05df8..86401e2 100644
--- a/app/app.js
+++ b/app/app.js
@@ -1,8 +1,8 @@
 var $ = require("jquery");
 
 require("./style.css");
-var body = require("./body.jade")();
-require("bundle!./sources.jade")(function(sources) {
+var body = require("./body.pug")();
+require("bundle-loader!./sources.pug")(function(sources) {
 	$(function() {
 		$("#choosen-sources").html(sources());
 	});
@@ -46,7 +46,7 @@ function loading(name) {
 	isLoading = true;
 	$(".buttons").parent().removeClass("active");
 	$(".button-"+name).parent().addClass("active");
-	$(".content").html(require("./loading.jade"));
+	$(".content").html(require("./loading.pug"));
 }
 
 function finished() {
@@ -100,7 +100,7 @@ window.webpackJsonp = function(chunk, modules) {
 			if(list.length === 0) return;
 			var chunk = list.shift();
 			var li = $("<li>")
-				.html(require("./chunk.jade")
+				.html(require("./chunk.pug")
 					({chunk: chunk}));
 			$(".chunks").append(li);
 			append();
diff --git a/app/body.jade b/app/body.pug
similarity index 91%
rename from app/body.jade
rename to app/body.pug
index dd5a1c3..12df2fd 100644
--- a/app/body.jade
+++ b/app/body.pug
@@ -33,13 +33,13 @@ nav.navbar.navbar-default.navbar-top
 				b
 					| webpack on github
 			h2 Choosen sources
-			#choosen-sources!= require("./loading.jade")()
+			#choosen-sources!= require("./loading.pug")()
 		.col-md-4
 			.page-header
 				h1 status
 					small  loaded chunks
 			ul.chunks
-				li!= require("./chunk.jade")({chunk: 0})
+				li!= require("./chunk.pug")({chunk: 0})
 			if module.hot
 				.page-header
 					h1 HMR
diff --git a/app/chunk.jade b/app/chunk.pug
similarity index 100%
rename from app/chunk.jade
rename to app/chunk.pug
diff --git a/app/home.jade b/app/home.jade
deleted file mode 100644
index 6eeaaea..0000000
--- a/app/home.jade
+++ /dev/null
@@ -1,3 +0,0 @@
-.alert.alert-success You are on <em>Home</em>
-h2 home.jade
-pre: code= require("!raw!./home.jade")
\ No newline at end of file
diff --git a/app/home.pug b/app/home.pug
new file mode 100644
index 0000000..23fe694
--- /dev/null
+++ b/app/home.pug
@@ -0,0 +1,3 @@
+.alert.alert-success You are on <em>Home</em>
+h2 home.pug
+pre: code= require("!raw-loader!./home.pug")
\ No newline at end of file
diff --git a/app/loading.jade b/app/loading.pug
similarity index 100%
rename from app/loading.jade
rename to app/loading.pug
diff --git a/app/pages.js b/app/pages.js
index 16c3b53..1f4f438 100644
--- a/app/pages.js
+++ b/app/pages.js
@@ -3,7 +3,7 @@ module.exports = {
 		switch(name) {
 		case "home":
 			require([], function() {
-				callback(require("./home.jade"));
+				callback(require("./home.pug"));
 			});
 			break;
 		case "test1":
@@ -13,12 +13,12 @@ module.exports = {
 			break;
 		case "test2":
 			require.ensure([], function() {
-				callback(require("./test2.jade"));
+				callback(require("./test2.pug"));
 			}, "test2+3");
 			break;
 		case "test3":
 			require.ensure([], function() {
-				callback(require("./test3.jade"));
+				callback(require("./test3.pug"));
 			}, "test2+3");
 			break;
 		default: callback(null);
diff --git a/app/sources.jade b/app/sources.pug
similarity index 64%
rename from app/sources.jade
rename to app/sources.pug
index fcfd3ed..12082cb 100644
--- a/app/sources.jade
+++ b/app/sources.pug
@@ -6,18 +6,18 @@ ul.nav.nav-tabs
 	li
 		a(href="#body", data-toggle="tab")
 			i.icon-leaf
-			|  body.jade
+			|  body.pug
 	li
 		a(href="#sources", data-toggle="tab")
 			i.icon-file
-			|  sources.jade
+			|  sources.pug
 .tab-content
 	#app.tab-pane.active
 		pre.pre-scrollable
-			code= require("!raw!./app.js")
+			code= require("!raw-loader!./app.js")
 	#body.tab-pane
 		pre.pre-scrollable
-			code= require("!raw!./body.jade")
+			code= require("!raw-loader!./body.pug")
 	#sources.tab-pane
 		pre.pre-scrollable
-			code= require("!raw!./sources.jade")
+			code= require("!raw-loader!./sources.pug")
diff --git a/app/style.css b/app/style.css
index 4c8df6c..e4ce427 100644
--- a/app/style.css
+++ b/app/style.css
@@ -1,9 +1,5 @@
 body {}
-------
+
 .navbar-default {
-	background: #FFA !important;
-}
-------
-.navbar-default {
-	background: #AFA !important;
-}
+	background: #dedede !important;
+}
\ No newline at end of file
diff --git a/app/test1/content.jade b/app/test1/content.jade
deleted file mode 100644
index e27a414..0000000
--- a/app/test1/content.jade
+++ /dev/null
@@ -1,6 +0,0 @@
-h1 three.js canvas - camera - orthographic example
-.three-container
-h2 test1/index.js
-pre.pre-scrollable: code= require("!raw!./index.js")
-h2 test1/content.jade
-pre: code= require("!raw!./content.jade")
\ No newline at end of file
diff --git a/app/test1/content.pug b/app/test1/content.pug
new file mode 100644
index 0000000..c9496ea
--- /dev/null
+++ b/app/test1/content.pug
@@ -0,0 +1,6 @@
+h1 three.js canvas - camera - orthographic example
+.three-container
+h2 test1/index.js
+pre.pre-scrollable: code= require("!raw-loader!./index.js")
+h2 test1/content.pug
+pre: code= require("!raw-loader!./content.pug")
\ No newline at end of file
diff --git a/app/test1/index.js b/app/test1/index.js
index 72511b3..2cf6e41 100644
--- a/app/test1/index.js
+++ b/app/test1/index.js
@@ -1,9 +1,9 @@
 exports.render = function() {
-	return require("./content.jade")();
+	return require("./content.pug")();
 };
 
 exports.start = function() {
-	var THREE = require("three");
+	var THREE = require("../../web_modules/three/index.js");
 	require("jquery");
 
 	// three.js canvas - camera - orthographic example
diff --git a/app/test2.jade b/app/test2.pug
similarity index 53%
rename from app/test2.jade
rename to app/test2.pug
index d031832..4283248 100644
--- a/app/test2.jade
+++ b/app/test2.pug
@@ -1,14 +1,14 @@
 .alert.alert-warning
 	span This is the <em>second</em> test.
-h2 test2.jade
-pre: code= require("!raw!./test2.jade")
-------
+h2 test2.pug
+pre: code= require("!raw-loader!./test2.pug")
+
 .alert.alert-warning
 	span This is the <b>second</b> test. (Updated Version 1)
-h2 test2.jade
-pre: code= require("!raw!./test2.jade")
-------
+h2 test2.pug
+pre: code= require("!raw-loader!./test2.pug")
+
 .alert.alert-warning
 	span This is the <em>second</em> test. (Updated Version 2)
-h2 test2.jade
-pre: code= require("!raw!./test2.jade")
+h2 test2.pug
+pre: code= require("!raw-loader!./test2.pug")
\ No newline at end of file
diff --git a/app/test3.jade b/app/test3.pug
similarity index 87%
rename from app/test3.jade
rename to app/test3.pug
index 44ecb83..f358fef 100644
--- a/app/test3.jade
+++ b/app/test3.pug
@@ -3,13 +3,13 @@
 	= " "
 	b last
 	|  test.
-------
+
 .alert.alert-error
 	| This is the
 	= " "
 	i last
 	|  test. (Updated Version 1)
-------
+
 .alert.alert-error
 	| This is the
 	= " "
diff --git a/fake-update.js b/fake-update.js
deleted file mode 100644
index 8f2e96e..0000000
--- a/fake-update.js
+++ /dev/null
@@ -1,11 +0,0 @@
-module.exports = function(content) {
-	var version = this.options.fakeUpdateVersion;
-	var versions = content.split("\n------");
-	var current = "";
-	while(!current) {
-		current = versions[version--];
-		if(current) current = current.replace(/^[\r\n]*|[\r\n]*$/g, "");
-	}
-	this.cacheable();
-	return current;
-}
\ No newline at end of file
diff --git a/package.json b/package.json
index aff07df..9b00074 100644
--- a/package.json
+++ b/package.json
@@ -1,41 +1,37 @@
-{
-	"name": "example-app",
-	"version": "0.11.0",
-	"author": "Tobias Koppers @sokra",
-	"description": "example web app for webpack",
-	"dependencies": {
-		"webpack": "1.2.x",
-		"webpack-dev-server": "1.3.x",
-		"bootstrap": "https://github.com/twbs/bootstrap/archive/v3.0.2.tar.gz",
-		"jade-loader": "0.6.x",
-		"json-loader": "0.5.x",
-		"url-loader": "0.5.x",
-		"file-loader": "0.5.x",
-		"coffee-loader": "0.7.x",
-		"jshint-loader": "0.6.x",
-		"bundle-loader": "0.5.x",
-		"style-loader": "0.6.x",
-		"css-loader": "0.6.x",
-		"less-loader": "0.7.x",
-		"exports-loader": "0.6.x",
-		"raw-loader": "0.5.x"
-	},
-	"jam": {
-		"dependencies": {
-			"jquery": "1.9.1"
-		}
-	},
-	"licenses": [
-		{
-			"type": "MIT",
-			"url": "http://www.opensource.org/licenses/mit-license.php"
-		}
-	],
-	"scripts": {
-		"start": "webpack-dev-server -d --colors"
-	},
-	"engines": {
-		"node":  ">=0.1.30"
-	},
-	"homepage": "http://github.com/webpack/webpack-example"
-}
\ No newline at end of file
+{
+  "name": "example-app",
+  "version": "0.12.0",
+  "author": "Tobias Koppers @sokra",
+  "description": "example web app for webpack",
+  "dependencies": {
+    "bootstrap": "https://github.com/twbs/bootstrap/archive/v3.0.2.tar.gz",
+    "bundle-loader": "^0.5.4",
+    "coffee-loader": "^0.7.2",
+    "css-loader": "^0.26.1",
+    "exports-loader": "^0.6.3",
+    "extract-text-webpack-plugin": "^2.0.0-beta.4",
+    "file-loader": "^0.9.0",
+    "jquery": "^3.1.1",
+    "jshint-loader": "^0.8.3",
+    "json-loader": "^0.5.4",
+    "less": "^2.7.1",
+    "less-loader": "^2.2.3",
+    "pug": "^2.0.0-beta6",
+    "pug-loader": "^2.3.0",
+    "raw-loader": "^0.5.1",
+    "style-loader": "^0.13.1",
+    "url-loader": "^0.5.7",
+    "webpack": "^2.2.0-rc.2",
+    "webpack-dev-server": "^2.2.0-rc.0"
+  },
+  "licenses": [
+    {
+      "type": "MIT",
+      "url": "http://www.opensource.org/licenses/mit-license.php"
+    }
+  ],
+  "scripts": {
+    "start": "webpack-dev-server -d --colors"
+  },
+  "homepage": "http://github.com/webpack/webpack-example"
+}
diff --git a/web_modules/mybootstrap/bootstrap.js b/web_modules/mybootstrap/bootstrap.js
old mode 100644
new mode 100755
diff --git a/web_modules/mybootstrap/bootstrap.less b/web_modules/mybootstrap/bootstrap.less
old mode 100644
new mode 100755
diff --git a/web_modules/mybootstrap/index.js b/web_modules/mybootstrap/index.js
old mode 100644
new mode 100755
diff --git a/web_modules/mybootstrap/variables.less b/web_modules/mybootstrap/variables.less
old mode 100644
new mode 100755
diff --git a/web_modules/three/index.js b/web_modules/three/index.js
index 6026a04..8cbf2d7 100644
--- a/web_modules/three/index.js
+++ b/web_modules/three/index.js
@@ -1 +1 @@
-module.exports = require("exports?THREE!./Three.min.js");
\ No newline at end of file
+module.exports = require("exports-loader?THREE!./Three.min.js");
\ No newline at end of file
diff --git a/webpack-update1.config.js b/webpack-update1.config.js
index 9f77175..17cf7cf 100644
--- a/webpack-update1.config.js
+++ b/webpack-update1.config.js
@@ -1,4 +1,2 @@
 module.exports = require("./webpack.config.js");
 module.exports.output.filename = "ignored";
-module.exports.recordsPath = module.exports.recordsOutputPath;
-module.exports.fakeUpdateVersion = 1;
diff --git a/webpack-update2.config.js b/webpack-update2.config.js
index 5bdfc72..7927d67 100644
--- a/webpack-update2.config.js
+++ b/webpack-update2.config.js
@@ -1,2 +1 @@
 module.exports = require("./webpack-update1.config.js");
-module.exports.fakeUpdateVersion = 2;
diff --git a/webpack.config.js b/webpack.config.js
index c511e5d..3574298 100644
--- a/webpack.config.js
+++ b/webpack.config.js
@@ -1,5 +1,6 @@
 var webpack = require("webpack");
 var path = require("path");
+
 module.exports = {
 	context: __dirname,
 	entry: "./app/app.js",
@@ -7,47 +8,35 @@ module.exports = {
 		path: path.join(__dirname, "assets"),
 		publicPath: "assets/", // relative path for github pages
 		filename: "main.js", // no hash in main.js because index.html is a static page
-		chunkFilename: "[hash]/js/[id].js",
-		hotUpdateMainFilename: "[hash]/update.json",
-		hotUpdateChunkFilename: "[hash]/js/[id].update.js"
+		chunkFilename: "[hash]/js/[id].js"
 	},
-	recordsOutputPath: path.join(__dirname, "records.json"),
 	module: {
-		loaders: [
-			{ test: /\.json$/,   loader: "json-loader" },
+		rules: [
+			{ test: /\.json$/, loader: "json-loader" },
 			{ test: /\.coffee$/, loader: "coffee-loader" },
-			{ test: /\.css$/,    loader: "style-loader!css-loader" },
-			{ test: /\.less$/,   loader: "style-loader!css-loader!less-loader" },
-			{ test: /\.jade$/,   loader: "jade-loader?self" },
-			{ test: /\.png$/,    loader: "url-loader?prefix=img/&limit=5000" },
-			{ test: /\.jpg$/,    loader: "url-loader?prefix=img/&limit=5000" },
-			{ test: /\.gif$/,    loader: "url-loader?prefix=img/&limit=5000" },
-			{ test: /\.woff$/,   loader: "url-loader?prefix=font/&limit=5000" },
-			{ test: /\.eot$/,    loader: "file-loader?prefix=font/" },
-			{ test: /\.ttf$/,    loader: "file-loader?prefix=font/" },
-			{ test: /\.svg$/,    loader: "file-loader?prefix=font/" },
+			{ test: /\.css$/,  loader: "style-loader!css-loader" },
+      { test: /\.less$/, use: [
+        'style-loader',
+        'css-loader',
+        'less-loader'
+      ]
+      },
+			{ test: /\.pug$/,  loader: "pug-loader" },
+			{ test: /\.png$/,  loader: "url-loader?prefix=img/&limit=5000" },
+			{ test: /\.jpg$/,  loader: "url-loader?prefix=img/&limit=5000" },
+			{ test: /\.gif$/,  loader: "url-loader?prefix=img/&limit=5000" },
+			{ test: /\.woff$/, loader: "url-loader?prefix=font/&limit=5000" },
+			{ test: /\.eot$/,  loader: "file-loader?prefix=font/" },
+			{ test: /\.ttf$/,  loader: "file-loader?prefix=font/" },
+			{ test: /\.svg$/,  loader: "file-loader?prefix=font/" },
 		],
-		preLoaders: [
-			{
-				test: /\.js$/,
-				include: pathToRegExp(path.join(__dirname, "app")),
-				loader: "jshint-loader"
-			},
-			{
-				// Simulate updates to showcase the hot module replacement
-				test: pathToRegExp(path.join(__dirname, "app")),
-				loader: path.join(__dirname, "fake-update.js")
-			}
-		]
 	},
-	resolve: {
-		fallback: path.join(__dirname, "jam")
-	},
-	amd: { jQuery: true },
+  resolve: {
+      alias: {
+          jquery: "jquery/src/jquery"
+      }
+  },
 	plugins: [
 		new webpack.optimize.LimitChunkCountPlugin({ maxChunks: 20 })
-	],
-	fakeUpdateVersion: 0
-};
-function escapeRegExpString(str) { return str.replace(/[\-\[\]\/\{\}\(\)\*\+\?\.\\\^\$\|]/g, "\\$&"); }
-function pathToRegExp(p) { return new RegExp("^" + escapeRegExpString(p)); }
\ No newline at end of file
+	]
+};
\ No newline at end of file