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Title: |
Agreement and Plan of Merger |
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Date: |
2000 |
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Preview shows 17KB of 126KB total |
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$53 |
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ID: |
#1271077 |
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<SEQUENCE>2
<FILENAME>0002.txt
<DESCRIPTION>EXHIBIT 2.1
<TEXT>
<PAGE>
AGREEMENT AND PLAN OF MERGER
This AGREEMENT AND PLAN OF MERGER (the "Agreement") is dated
as of September __, 2000 among Vertex Interactive, Inc., a New Jersey
corporation ("Parent"), Rensoft Acquisition Corp., a Delaware corporation and a
wholly-owned subsidiary of Parent ("Merger Sub"), and Renaissance Software,
Inc., a Delaware corporation (the "Company"). Certain capitalized terms used
herein are defined in Section 13.13.
W I T N E S E T H:
WHEREAS, each of the stockholders of the Company owns the
number of shares of capital stock of the Company set forth opposite such
stockholder's name on Exhibit A;
NOW, THEREFORE, in consideration of the premises and of the
mutual covenants and agreements herein contained and for other good and valuable
consideration, the receipt whereof is hereby acknowledged, the parties hereto
agree as follows:
ARTICLE I
MERGER
1.1 MERGER. The parties have executed this Agreement for
purposes of setting forth a plan of reorganization under the provisions of
Section 368(a)(1)(A) and (a)(2)(D) of the Code and the rules and regulations
promulgated thereunder. To that end, each of the stockholders of the Company
shall exchange such stockholder's shares of Company Stock by virtue of this plan
of merger for shares of common stock, par value $.005 per share, of Parent (the
"Parent Common"), all in accordance with the terms of this Agreement.
1.2 SURVIVING CORPORATION. At the Effective Date of the Merger
(as defined in Section 1.3), Merger Sub shall be merged (the "Merger") with and
into the Company in accordance with this Agreement and the General Corporation
Law of the State of Delaware (the "GCL"), whereupon the separate existence of
Merger Sub shall cease (except as it may be continued by operation of law), and
the Company shall continue as the surviving corporation under the name
"Renaissance Software, Inc.". The Company, in its capacity as the corporation
surviving the Merger, sometimes is referred to herein as the "Surviving
Corporation".
1.3 CONSUMMATION OF THE MERGER. On the Closing Date (as
defined in Section 4.1), the Company and Merger Sub shall file or cause to be
filed a certificate of merger with the Secretary of State of the State of
Delaware and make all other filings or recordings required by the GCL in
connection with the Merger. The Merger shall be effective at such time as the
certificate of merger is duly filed with the Secretary of State of the State of
Delaware or at such later time, not later than five business days thereafter, as
may (with the consent of Parent
<PAGE>
and the Company) be specified in such certificate of merger (the "Effective Date
of the Merger").
1.4 FURTHER ASSURANCES. At and after the Effective Date of the
Merger, the officers and directors of the Surviving Corporation will be
authorized to execute and deliver, in the name and on behalf of the Company or
Merger Sub, any deeds, bills of sale, assignments or assurances and to take and
do, in the name and on behalf of the Company or Merger Sub, any other actions
and things to vest, perfect or confirm of record or otherwise in the Surviving
Corporation any and all right, title and interest in, to and under any of the
rights, properties or assets of the Company acquired or to be acquired by Merger
Sub as a result of, or in connection with, the Merger.
ARTICLE II
CERTIFICATES OF INCORPORATION;
BY-LAWS; BOARD OF DIRECTORS; OFFICERS
2.1 CERTIFICATE OF INCORPORATION. The Certificate of
Incorporation of Merger Sub, as amended by the Certificate of Merger, shall be
the Certificate of Incorporation of the Surviving Corporation until further
amended in accordance with applicable law; provided that such Certificate of
Incorporation shall be amended to change the name of such corporation to
"Renaissance Software, Inc.".
2.2 BY-LAWS. The By-laws of Merger Sub as in effect at the
Effective Date of the Merger shall be the By-laws of the Surviving Corporation
until amended in accordance with applicable law.
2.3 BOARD OF DIRECTORS; OFFICERS. From and after the Effective
Date of the Merger, until their successors shall have been duly elected or
appointed in accordance with applicable law, the officers of the Surviving
Corporation shall be the officers of the Company except that each of Nicholas
Toms and Hugo Biermann shall be joint Chairman, and Raymond Broek shall be Chief
Financial Officer and Treasurer. The directors of Merger Sub at the Effective
Date of the Merger, which shall include Louis Schilt and Robert Schilt, shall be
the directors of the Surviving Corporation.
ARTICLE III
CONVERSION OF STOCK
3.1 CONVERSION OF STOCK. On the Effective Date of the Merger,
by virtue of the Merger and without any action on the part of Parent, Merger
Sub, the Company or the holder of any of the securities described below:
(a) each share of Company Stock held by the Company as
treasury stock, if any, shall be canceled, without the payment of any
consideration therefor;
2
<PAGE>
(b) each share of Company Stock which is outstanding shall be
converted into the right to receive 0.85 shares of Parent Common (such number
being referred to as the "Exchange Ratio"); and
(c) each share of Merger Sub Common which is outstanding shall
be canceled and extinguished and converted into one share of Common Stock of the
Surviving Corporation ("Surviving Company Common").
3.2 CLOSING OF COMPANY TRANSFER BOOKS. On the Effective Date
of the Merger, the stock transfer books of the Company shall be closed with
respect to shares of the Company Stock outstanding immediately prior to the
Effective Date of the Merger and no transfer of such shares of the Company Stock
shall thereafter be made on such stock transfer books. If, on or after the
Effective Date of the Merger, valid certificates representing any such shares of
the Company Stock are presented to Parent, they shall be exchanged as provided
in Section 3.3.
3.3 EXCHANGE OF CERTIFICATES. (a) On and after the Effective
Date of the Merger, each holder of shares of Company Stock shall be entitled to
receive a certificate or certificates representing the aggregate number of
shares of Parent Common to which such stockholder is entitled as a holder of the
shares of Company Stock immediately prior to the Effective Date of the Merger
reduced, in the case of each stockholder, by such stockholder's Pro Rata Share
(as defined in Section 13.13) of the Escrow Shares (as defined below) to be
deposited in escrow as set forth below (the amount of Parent Shares to which
such stockholder is so entitled and such stockholder's Pro Rata Share of the
Escrow Shares is set forth in Section 5.2 of the Disclosure Schedule). On the
Effective Date of the Merger, certificates representing 20% of Robert Schilt's
and Louis Schilt's shares and 5% of all other stockholders' shares (the "Escrow
Shares") shall be delivered to the Escrow Agent as provided in the Escrow
Agreement (as both of those terms are defined in Section 9.5).
(b) As soon as reasonably practicable after the Effective Date
of the Merger, Parent shall mail or otherwise deliver to each holder of record
of a certificate or certificates which immediately prior to the Effective Time
represented outstanding shares of Company Stock (the "Certificates") whose
shares are converted pursuant to Section 3.1(b) into the right to receive shares
of Parent Common (i) a letter of transmittal (which shall specify that delivery
shall be effected, and risk of loss and title to the Certificates shall pass,
only upon delivery of the Certificates to Parent and shall be in such form and
have such other provisions as Parent may reasonably specify) and (ii)
instructions for use in effecting the surrender of the Certificates in exchange
for certificates representing shares of Parent Common. Upon surrender of a
Certificate for cancellation to Parent, together with such letter of transmittal
duly executed and completed in accordance with its terms, the holder of such
Certificate shall be entitled to receive in exchange therefor a certificate
representing that number of shares of Parent Common which such holder has the
right to receive pursuant to the provisions of this Article III, and the
Certificate so surrendered shall forthwith be canceled. In no event shall the
holder of any Certificate be entitled to receive interest on any funds to be
received in the Merger. In the event of a transfer of ownership of Company Stock
which is not registered in the transfer records of the Company, a certificate
representing that number of shares of Parent Common may be issued to a
transferee if the Certificate representing such Company Stock is presented to
Parent accompanied by all
3
<PAGE>
documents required to evidence and effect such transfer and by evidence that any
applicable stock transfer taxes have been paid.
3.4 NO FRACTIONAL SHARES. No scrip or fractional share
certificates of Parent Common shall be issued as a result of the Merger, but in
lieu of each fractional interest, Parent shall issue one full share of Parent
Common for each fractional share equal to one-half or more of one share, and
each fractional share equal to less than one-half of one share shall be
eliminated.
3.5 STOCK OPTIONS. (a) Subject to the terms and conditions of
the Company's 1998 Renaissance Software, Inc. Employee Stock Option Plan and the
Warrant Agreements between the Company and each of Robert Schilt and Louis
Schilt (together, the "Company Option Plans") and the stock option agreements
executed and the warrants outstanding pursuant thereto, the Company Option Plans
and each option or warrant to purchase Company Stock granted thereunder that is
outstanding on the Effective Date of the Merger shall be assumed by Parent and
continued in accordance with its respective terms and each such option or
warrant shall become a right to purchase a number of shares of Parent Common, as
more fully described below.
(b) At the Effective Date of the Merger, each outstanding
option or warrant to purchase shares of Company Stock (a "Company Stock Option")
under the Company Option Plans, whether vested or unvested, shall be deemed to
constitute an option to acquire, on the same terms and conditions as were
applicable under such Company Stock Option, a number of shares of Parent Common
equal to the product (rounded down to the nearest whole share) of (i) the number
of shares of Company Stock issuable upon exercise of the option or warrant
immediately prior to the Effective Date of the Merger and (ii) the Exchange
Ratio; and the exercise price per share of Parent Common at which such option or
warrant is exercisable shall be the amount (rounded up to the nearest whole
cent) obtained by dividing (x) the exercise price per share of Company Stock at
which such option or warrant is exercisable immediately prior to the Effective
Date of the Merger by (y) the Exchange Ratio; provided, however, that, in the
case of any Company Stock Option to which Section 421 of the Code applies by
reason of its qualification under any of Sections 422-424 of the Code
("qualified stock options"), the exercise price, the number of shares
purchasable pursuant to such option and the terms and conditions of exercise of
such option shall be determined in order to comply with Section 425(a) of the
Code.
(c) As soon as practicable after the Effective Date of the
Merger, Parent shall deliver to the participants in the Company Option Plans
appropriate notices setting forth such participants' rights pursuant thereto and
that the grants pursuant to the Company Option Plans shall continue in effect on
the same terms and conditions (subject to the adjustments required by this
Section after giving effect to the Merger), and providing for the assumption by
Parent of such participant options. Parent shall comply with the terms of the
Company Option Plans and ensure, to the extent required by, and subject to the
provisions of, the Company Option Plans, that the Company Stock Options which
qualified as qualified stock options prior to the Effective Date of the Merger
continue to qualify as qualified stock options after the Effective Date of the
Merger.
(d) Parent shall take all corporate action necessary to
reserve for issuance a sufficient number of shares of Parent Common for delivery
under the Company Option Plans as
4
<PAGE>
adjusted in accordance with this Section. Parent shall, within 15 days after
such time as financial results covering at least 30 days of combined operations
of Parent and the Company have been published by Parent in its annual report to
the SEC, file a registration statement on Form S-8 promulgated by the SEC under
the Securities Act (or any successor or other appropriate form) with respect to
the Parent Common subject to the Company Stock Options and shall use its
reasonable best efforts to maintain the effectiveness of such registration
statement or registration statements (and maintain the current status of the
prospectus or prospectuses contained therein) for so long as such options remain
outstanding. With respect to those individuals who subsequent to the Merger will
be subject to the reporting requirements under Section 16(a) of the Exchange
Act, where applicable, Parent shall administer the Company Option Plans in a
manner that complies with Rule 16b-3 promulgated under the Exchange Act.
ARTICLE IV
CLOSING
4.1 CLOSING. The closing of the transactions contemplated
hereby (the "Closing") shall take place on the first business day (the "Closing
Date") following satisfaction of all of the conditions to closing set forth in
Articles VIII and IX, at the offices of Milbank, Tweed, Hadley & McCloy LLP, One
Chase Manhattan Plaza, New York, New York 10005, or at such other time and such
other location as may be agreed upon by the parties.
4.2 DELIVERIES AT CLOSING.
(a) At the Closing, the Company shall deliver to Parent:
(i) certified copies of the Company's Certificate of
Incorporation, By-laws and corporate resolutions with respect to the
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