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Agreement and Plan of Merger

 

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Title:

Agreement and Plan of Merger

Entities:

Kirshner Entertainment & Technologies Inc.

Date:

2003

Size:

Preview shows 5KB of 87KB total

Price:

$42

ID:

#1167770

 

 

► Plans ► Agreements ► Agreements & Plans of Merger
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                          AGREEMENT AND PLAN OF MERGER


AGREEMENT AND PLAN OF MERGER ("Agreement"), dated as of the 5th day of
June, 2003, by and among HBOA HOLDINGS, INC., a Florida corporation bearing
document number P00000095861 ("HBOA"), LEXSYS SOFTWARE CORP., a Florida
corporation bearing document number P94000007829 ("LSC") and the LSC
shareholders listed on the signature page hereof (collectively the "LSC
Shareholders"). HBOA and LSC are sometimes hereinafter referred to collectively
as the "Companies," or individually as a "Company." The Companies and the LSC
Shareholders are sometimes hereinafter referred to collectively as the
"Parties".

WHEREAS, the respective Boards of Directors of the Companies deem it
advisable and in the best interests of their respective shareholders that LSC be
acquired by and become a wholly owned subsidiary of HBOA, and in furtherance
thereof, the Boards of Directors of the Companies have approved the merger of a
Florida corporation (to be formed as a wholly owned subsidiary of HBOA
("Acquisition Sub")) with and into LSC, upon the terms and subject to the
conditions set forth herein; and

WHEREAS, the Parties intend that this Agreement constitute a "plan of
reorganization" and that such plan qualify as a reorganization within the
meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the
"Code"), as a reverse triangular merger under Code Sections 368(a)(1)(A) and
368(a)(2)(E), and provide for the representations, warranties, agreements and
conditions applicable to the Merger.

NOW, THEREFORE, in consideration of the foregoing and the respective
representations, warranties, covenants, and agreements set forth herein, the
Parties hereto agree as follows:

ARTICLE I

THE MERGER

1.1 The Merger. Subject to the terms and conditions of this Agreement,
at the Effective Time (as defined in Section 1.2 hereof), Acquisition Sub shall
be merged with and into LSC (the "Merger"), with LSC being the surviving
corporation in the Merger (the "Surviving Corporation") and the separate
existence of Acquisition Sub shall thereupon cease. The name of the Surviving
Corporation will be LexSys Corporation or any other name agreed upon by the
parties hereto. The Merger shall have the effects set forth in the Florida
Business Corporation Act (the "FBCA").

1.2 Effective Time of the Merger. The Merger shall become effective
(the "Effective Time") upon the completion of the filing of properly executed
Articles of Merger with the Secretary of State of the State of Florida, which
filing shall be made at the Closing which shall take place after satisfaction of
the conditions set forth herein.

1.3 Merger Consideration. At the Effective Time, by virtue of the
Merger and without any action on the part of any holder of capital stock of LSC,
HBOA or Acquisition Sub, the shares of common stock of LSC (the "LSC Share(s)")
issued and outstanding immediately prior to the Effective Time, shall be
exchangeable for and converted at the Effective Time into the right to receive
in the aggregate 1,000,000 validly issued, fully paid and non-assessable shares
of restricted common stock of HBOA (the "HBOA Shares"). The HBOA Shares will be
placed in escrow, pursuant to the terms and conditions of an escrow agreement
attached hereto as Exhibit 1.3, until the Closing.

1.4 Escrow of Shares of the Principals. Robert Cox and Charles Taylor
each agree that they will each place 186,844 and 186,915, respectively, shares
of HBOA's common stock (the "Escrowed Shares), an aggregate of 373,759 shares of
HBOA's common stock in escrow, on the Closing Date, pursuant to the terms and
conditions of certain escrow agreements attached hereto as Exhibit 1.4A and
1.4B.

1.5 Funding of LexSys and Liabilities. LSC and its shareholders have
represented and warranted that their liabilities do not exceed $150,000 and
these liabilities and the creditors are listed on Schedule 3.6 attached hereto.
Within one hundred twenty (120) days after the Closing, HBOA has agreed that it
will pay these liabilities on behalf of LexSys.

<PAGE>


1.6 Articles of Incorporation of the Surviving Corporation. The
Articles of Incorporation of Acquisition Sub shall be the Articles of
Incorporation of the Surviving Corporation.

1.7 Bylaws of the Surviving Corporation. The Bylaws of Acquisition Sub
as in effect at the Effective Time shall be the Bylaws of the Surviving
Corporation until thereafter amended in accordance with applicable law.

1.8 Directors and Officers of the Surviving Corporation and Board Seat
on HBOA.

 

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