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Agreement and Plan of Merger

 

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Title:

Agreement and Plan of Merger

Entities:

ASA International Ltd.

Date:

2002

Size:

Preview shows 17KB of 183KB total

Price:

$76

ID:

#1112797

 

 

► Plans ► Agreements ► Agreements & Plans of Merger
► Technology ► Computer Networks

 

 

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                          AGREEMENT AND PLAN OF MERGER

----------------------------

AGREEMENT AND PLAN OF MERGER (hereinafter called this "Agreement"),
dated as of January 3, 2002, among COMPUTRAC, INC., a Texas corporation (the
"Company"), ASA INTERNATIONAL LTD., a Delaware corporation (the "Parent"), and
RAINMAKER SOFTWARE, INC., a Delaware corporation and wholly-owned subsidiary of
the Parent (the "Purchaser"); the Company and the Purchaser sometimes being
hereinafter together referred to as the "Constituent Corporations"). Capitalized
terms used herein without definition shall be as defined in Section 10.2.

RECITALS
--------

WHEREAS, the respective Boards of Directors of each of the Parent, the
Purchaser and the Company have approved the merger of the Company with and into
the Purchaser (the "Merger") and approved the Merger upon the terms and subject
to the conditions set forth in this Agreement; and

WHEREAS, the Parent, the Purchaser and the Company intend that the
Merger will qualify as a reorganization under Section 368(a)(1)(A) of the Code,
and desire to make certain representations, warranties, covenants and agreements
in connection with the Merger and also to prescribe various conditions to the
Merger; and

WHEREAS, as an inducement and a condition to the Parent and the
Purchaser entering into this Agreement, contemporaneously with the execution and
delivery of this Agreement (i) the Company has entered into a management
agreement (the "Management Agreement") with Rainmaker Software, Inc. (the
"Manager") pursuant to which the Manager will manage the business of the Company
beginning effective January 1, 2002, upon the terms and subject to the
conditions set forth in the Management Agreement and (ii) certain stockholders
of the Company (the "Signatory Stockholders") have entered into a Stockholders
Agreement with the Parent and the Purchaser ("Stockholders Agreement"), pursuant
to which the Signatory Stockholders have, among other things, agreed with
respect to the shares of Common Stock, $.01 par value per share (the "Common
Stock") of the Company (the "Shares) owned by such holders (collectively, the
"Signatory Shareholder Shares"), to vote in favor of the Merger, granted to the
Parent a proxy with respect to the voting of the Signatory Stockholder Shares,
and granted to the Parent an option to purchase the Signatory Stockholder
Shares, in each case upon the terms and subject to the conditions set forth in
the Stockholders Agreement; and

WHEREAS, the Board of Directors of the Company (the "Company's Board"
has approved this Agreement, and the Management Agreement and has determined
that the consideration to be paid for each Share in the Merger is fair to the
holders of such Shares and to recommend that the holders of such Shares approve
this Agreement and the transactions contemplated hereby.

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



ARTICLE I

THE COMPANY ACTIONS

1.1. Approval and Recommendation.

The Company hereby approves of and consents to the Merger and
represents that the Company's Board, at a meeting duly called and held, has,
subject to the terms and conditions set forth herein, (i) determined that this
Agreement and the transactions contemplated hereby, including the Merger, taken
together, are fair to and in the best interests of the Company and its
stockholders (ii) approved this Agreement and the transactions contemplated
hereby, including the Merger, in all respects and such approval constitutes
approval of this Agreement and the Merger for purposes of Articles 5.03 and
13.03 of the Texas Business Corporation Act (the "TBCA"), and (iii) resolved to
recommend that the shareholders of the Company approve and adopt this Agreement
and the Merger; provided, however, that such recommendation and approval may be
withdrawn, modified or amended to the extent provided in Section 6.2(b). The
Company also represents that the Company's Board has reviewed the opinion of
Capital West Securities, Inc., financial advisor to the Company's Board (the
"Financial Advisor"), that, as of the date of this Agreement, the consideration
to be received pursuant to this Agreement is fair to the stockholders of the
Company from a financial point of view (the "Fairness Opinion"). The Company has
been authorized by the Financial Advisor to permit, subject to the prior review
and consent by the Financial Advisor (such consent not to be unreasonably
withheld), the inclusion of the Fairness Opinion (or a reference thereto) in the
Proxy/Registration Statement (as defined below).

ARTICLE II

THE MERGER; CLOSING; EFFECTIVE TIME

2.1. The Merger. Upon the terms and subject to the conditions set forth in
this Agreement, at the Effective Time (as defined in Section 2.3), the Company
shall be merged with and into the Purchaser and the separate corporate existence
of the Company shall thereupon cease. The Purchaser shall be the surviving
entity in the Merger (sometimes hereinafter referred to as the "Surviving
Corporation") and shall continue to be governed by the laws of the State of
Delaware, and the separate corporate existence of the Purchaser with all its
rights, privileges, immunities, powers and franchises shall continue unaffected
by the Merger, except as set forth in Article III. At the election of the
Parent, to the extent that such action would not cause a failure of a condition
to the Merger, the Merger may be structured so that the Purchaser shall be
merged with and into the Company with the result that the Company shall become
the "Surviving Corporation." The Merger shall have the effects specified in the
Delaware General Corporation Law ("DGCL"). The Parent, as the sole stockholder
of the Purchaser, hereby approves the Merger and this Agreement.

2.2. Closing. The closing of the Merger (the "Closing") shall take place
(i) at the offices of Epstein Becker & Green, P.C., 75 State Street, Boston,
Massachusetts 02109 at 9:00 a.m., Boston time, on the first Business Day after
the day on which the last to be fulfilled or waived of the conditions set forth

2

in Article VII (other than those conditions that by their nature are to be
satisfied at the Closing, but subject to the satisfaction or waiver of those
conditions) shall be satisfied or waived in accordance with this Agreement or
(ii) at such other place and time and/or on such other date as the Company and
the Parent may agree in writing (the "Closing Date").

2.3. Effective Time. As soon as practicable following the Closing, the
Company and the Parent will cause (i) a Certificate of Merger (the "Delaware
Certificate of Merger") to be executed, acknowledged and filed with the
Secretary of State of Delaware as provided in Section 251 of the DGCL, and (ii)
Articles of Merger (the "Texas Articles of Merger") to be executed, acknowledged
and filed with the Texas Secretary of State as provided in Article 5.04 of the
TBCA. The Merger shall become effective at the time when the Delaware
Certificate of Merger has been duly filed with the Secretary of State of
Delaware and the Texas Articles of Merger have been duly filed with the
Secretary of State of Texas (the "Effective Time").

2.4. Options. At the Effective Time, all the Company Options (as defined
in Section 5.1(b))(whether vested or unvested) that remain unexercised shall be
cancelled and terminated, and shall be of no further force or effect. The
Company agrees that the foregoing treatment of the Company Options will be in
accordance with the terms of the Stock Option Plans (as defined in Section
5.1(b)) or interpretations thereof by the Company's Board.

2.5. The Company Employee Stock Purchase Plans. The Company's Board shall
take the following actions with respect to its 1981 and 1995 Employee Stock
Purchase Plans (the "Stock Purchase Plans"): (1) terminate or suspend the Stock
Purchase Plans with respect to all periods after December 31, 2001 (the "Plan
Termination Date") and (2) return to each participant all funds contributed to
the Stock Purchase Plan by such participant which have not been used to purchase
shares of Common Stock as of the Plan Termination Date. Such funds shall be
returned, without interest, as soon as administratively feasible after the Plan
Termination Date.

ARTICLE III

CERTIFICATE OF INCORPORATION, BYLAWS
AND BOARD OF DIRECTORS OF THE SURVIVING CORPORATION

3.1. Certificate of Incorporation. The certificate of incorporation of the
Purchaser in effect immediately prior to the Effective Time shall be the
certificate of incorporation of the Surviving Corporation (the "Charter"), until
duly amended as provided therein or by applicable Law (as defined in Section
5.1(i)).

3.2. Bylaws. The bylaws of the Purchaser in effect at the Effective Time
shall be the bylaws of the Surviving Corporation (the "Bylaws"), until
thereafter amended as provided therein or by applicable Law.

3.3. Board of Directors and Officers. The board of directors and the officers
of the Purchaser at the Effective Time shall, from and after the Effective Time,
be the board of directors and the officers of the Surviving Corporation until
their successors have been duly elected or appointed and qualified or until
their earlier resignation or removal in accordance with the Charter and Bylaws.

3

ARTICLE IV

EFFECT OF THE MERGER ON CAPITAL STOCK; EXCHANGE OF
CERTIFICATES FOR MERGER CONSIDERATION

4.1. Effect on Capital Stock. At the Effective Time, as a result of the Merger
and without any action on the part of the holder of any Capital Stock of the
Company:

(a) The Purchaser. The sole issued and outstanding capital stock of the
Purchaser shall remain outstanding and constitute the sole capital stock of the
Surviving Corporation.

(b) Conversion of Shares. Each issued and outstanding Share immediately prior
to the Effective Time, including each Option Share, other than a Dissenting
Share or an Excluded Share, each as hereinafter defined, is sometimes referred
to as a "Participating Share." Each Participating Share shall be cancelled and
converted into the right to receive, subject to the terms and conditions of this
Agreement, a pro rata share of the Merger Consideration (as defined in Section
4.2(a)) payable to the holder thereof, without interest thereon, upon the
surrender of the certificate formerly representing such Participating Share
"Certificates", less any required withholding of taxes. "Excluded Share" shall
mean a Share owned by the Parent or the Purchaser or any wholly-owned subsidiary
thereof at the Effective Time.

(c) Treasury Shares. Each Share held in the treasury of the Company, or any
direct or indirect wholly-owned subsidiary of the Company, immediately prior to
the Effective Time shall by virtue of the Merger and without any action on the
part of the holder thereof, cease to be outstanding, be canceled and retired
without payment of any consideration therefor and cease to exist.

(d) Excluded Shares. Each Excluded Share shall by virtue of the Merger and
without any action on the part of the holder thereof, cease to be outstanding,
be canceled and retired without payment of any consideration therefor and cease
to exist and shall not be converted into the right to receive the Merger
Consideration.

(e) Company Options. At the Effective Time, each outstanding Company Option
(as defined in Section 5.1(b)) as to which the holder has delivered no later
than one (1) business day prior to the Closing Date a duly executed Option
Exercise Agreement in form and substance reasonably satisfactory to the Company
and the Purchaser, shall be exercised as of the Effective Time pursuant to and
in accordance with the terms of the applicable Option Exercise Agreement and
each Share issuable upon the exercise of such Company Option (an "Option Share")
shall be deemed to have been issued and outstanding immediately prior to the
Effective Time and to constitute a Participating Share for purposes of this
Agreement. All the Company Options that are not exercised prior to the Effective
Time shall be cancelled as of the Effective Time.

4

4.2. Exchange of Certificates for Payment.

(a) Exchange Agent. As of the Effective Time, the Parent shall deposit, or
shall cause to be deposited, with an exchange agent selected by the Parent and
acceptable to the Company in its reasonable discretion (the "Exchange Agent"),
for the benefit of the holders of Shares, the merger consideration (the "Merger
Consideration"), which shall consist of

(i) 1,370,679 shares of Common Stock, $.01 par value per share, of the
Parent ("ASA Common Stock"), plus

(ii) cash in an aggregate amount to be determined by the following formula:

(A) The amount of cash and marketable securities of the Company as of
the close of business on December 31, 2001 plus an amount equal to the
aggregate exercise price for all Company Options exercised after
December 31, 2001; less

(B) The sum of the following items:

(1) The unpaid amount of the Margolis Note (as defined in
Section 9.1);

(2) The unpaid portion of a reserve for severance compensation
payable to one employee in the aggregate amount of $33,605
as set forth in the Management Agreement;

(3) An amount equal to $16,500 for prepaid annual maintenance
(to the extent such amount was not previously delivered to
the Manager pursuant to the Management Agreement);

(4) An amount equal to all unpaid legal, accounting, financial
advisory, printing, mailing and other expenses incurred by
the Company in connection with the Merger and the
transactions contemplated by this Agreement ("Transaction
Expenses");

(5) The sum of $349,000 (to the extent such amount was not
previously delivered to the Manager pursuant to the
Management Agreement);

(6) The amount equal to the premium for the Tail Policy to be
purchased by the Company; and

(7) Any other amounts required to be paid by the Company
pursuant to this Agreement or the Management Agreement.

The Merger Consideration shall be paid pursuant to Section 4.1(b) in exchange
for outstanding Shares upon due surrender of the Certificates (or affidavits of
loss in lieu thereof) pursuant to the provisions of this Article IV (such shares
and cash, so when deposited with the Exchange Agent, together with any cash
delivered pursuant to Section 4.2(b) in lieu of fractional shares, being
hereinafter referred to as the "Merger Fund").

5

(b) Exchange Procedures. Promptly after the Effective Time, the Surviving
Corporation shall cause the Exchange Agent to mail to each holder of record of
Shares (other than holders of Excluded Shares) (i) a letter of transmittal
(which shall, among other matters, specify that delivery of the Certificates
shall be effected, and risk of loss and title to the Certificates shall pass,
only upon actual receipt of the Certificates (or affidavits of loss in lieu
thereof) by the Exchange Agent) and (ii) instructions for use in effecting the
surrender of the Certificates in exchange for the Merger Consideration due and
payable to such holder. Upon surrender of a Certificate for cancellation to the

 

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