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Title: |
Agreement and Plan of Merger |
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Date: |
2001 |
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Preview shows 9KB of 86KB total |
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$52 |
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ID: |
#1536508 |
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AGREEMENT AND PLAN OF MERGER
DATED OCTOBER 16, 2001,
AMONG
SYNERGY 2000, INC.,
INFINITY TECHNOLOGY SOLUTIONS, INC.,
CONVERT-TECH, INC.,
CHARLES R. CRONIN, JR.
CRONIN FAMILY REVOCABLE TRUST,
COLLEEN RENE CRONIN,
BONNIE LYNN CRONIN,
AILEEN MARY CRONIN,
AND
JEFFREY D. SEGAL
-------------------------------------------------------
<PAGE>
AGREEMENT AND PLAN OF MERGER (this "Agreement"), dated October 16,
2001, among Synergy 2000, Inc., a Delaware corporation ("Parent"); Infinity
Technology Solutions, Inc., a Delaware corporation and a subsidiary of Parent
("Sub"); Convert-Tech, Inc., a California corporation (the "Company"); Charles
R. Cronin, Jr. ("Principal"), and those entities and persons listed on Exhibit A
(the "Shareholders").
RECITALS
A. Parent, Sub and the Company intend to effect a merger of the Company
into Sub (the "Merger") in accordance with this Agreement, the General
Corporation Law of the State of Delaware (the "DGCL") and the General
Corporation Law of the State of California ("CGCL"). Upon consummation of the
Merger, the Company will cease to exist and Sub will continue as a wholly-owned
subsidiary of Parent.
B. This Agreement has been approved by the respective boards of
directors of Parent, Sub and the Company.
C. The parties intend that the Merger will be treated as a tax free
reorganization as described in Section 368 of the Internal Revenue Code of 1986,
as amended (the "Code").
D. The Shareholders (as defined herein) have voted for approval of this
Agreement and the Merger in accordance with all legal requirements for
shareholder approval under the CGCL.
AGREEMENT
The parties to this Agreement hereby agree as follows:
ARTICLE I
THE MERGER
1.1 THE MERGER
Upon the terms and subject to the conditions set forth in this
Agreement, and in accordance with the DGCL and the CGCL, the Company shall be
merged with and into Sub at the Effective Time (as defined below). At the
Effective Time, the separate existence of the Company shall cease, and Sub shall
continue as the surviving corporation (the "Surviving Corporation") under the
name Infinity Technology Solutions, Inc.
1.2 CLOSING
The closing of the Merger (the "Closing") shall take place at the
offices of Parent at 30 North Raymond Avenue, Suite 804, Pasadena, California,
91103, as soon as practicable (but in any event within three business days)
following the execution and delivery of this Agreement, or at such other date,
time and place as Parent and the Shareholders may agree. The date on which the
Closing takes place is referred to herein as the "Closing Date".
<PAGE>
1.3 EFFECTIVE TIME OF THE MERGER. The Company shall file a Certificate
of Merger conforming to the requirements of Section 252(c) of the DGCL with the
Secretary of State of the State of Delaware and an Agreement of Merger
conforming to the requirements of Section 1103 of the CGCL with the Secretary of
State of the State of California (collectively, the "Certificates of Merger").
The Merger shall become effective at such time as all Certificates of Merger are
duly filed with the Secretary of State of the State of Delaware and the
Secretary of State of the State of California, respectively (the "Effective
Time").
1.4 EFFECTS OF THE MERGER . The Merger shall have the effects set forth
in this Agreement and in the applicable provisions of the DGCL and the CGCL.
1.5 CERTIFICATE OF INCORPORATION; BY-LAWS (a) The certificate of
incorporation of Sub, as in effect immediately prior to the Effective Time,
shall be the certificate of incorporation of the Surviving Corporation until
thereafter amended as provided therein or by applicable law, a true copy thereof
is attached as Exhibit B hereto.
(b) The By-laws of Sub, as in effect immediately prior to the Effective
Time, which are attached as Exhibit C hereto shall be the By-laws of the
Surviving Corporation until thereafter amended as provided therein or by
applicable law.
ARTICLE II
CANCELLATION OF THE CAPITAL STOCK OF THE COMPANY AND PAYMENT
WITH RESPECT THERETO
2.1 CONSIDERATION. At the Effective Time, by virtue of the Merger and
without any action by the parties (1) all of the outstanding shares of capital
stock of the Company (the "Company Shares") shall be converted into the right to
receive, in the aggregate, five million (5,000,000) shares of Common Stock of
the Parent ("Parent Common Stock") (the aggregate number of such shares of
Parent Common Stock, collectively, the "Merger Consideration"); and (2) all of
the outstanding shares of Company Shares shall cease to be outstanding, and
shall be cancelled and retired and shall cease to exist, and each holder of
certificates representing Company Shares (the "Company Share Certificates")
shall cease to have any rights with respect thereto, except the right to receive
its pro rata portion of the Merger Consideration upon the surrender of the
Company Share Certificates in accordance with this Section.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS AND THE PRINCIPAL
Whenever any representation and warranties set forth in this Agreement
are qualified as to the "knowledge", such term means the actual knowledge, after
due and diligent inquiry, of such party's officers, directors and other
managers, provided that such persons shall have made due and diligent inquiry of
those employees whom such officers, directors and managers reasonably believe
would have actual knowledge of the matters represented.
<PAGE>
In this Agreement, any reference to any event, change, condition or
effect being "material" with respect to any entity or group of entities means
any material event, change, condition or effect related to the financial
condition, property, assets (including intangible assets), liabilities,
business, operations or results of operations of the Company. In this Agreement,
any reference to a "Material Adverse Effect" with respect to the Company means
any event, change or effect that is materially adverse to the financial
condition, properties, assets, liabilities, business, operations or results of
operations of, the Company.
Each of the Shareholders and the Principal, jointly and severally,
hereby represents and warrants to Parent the following, except as set forth in a
disclosure schedule delivered to Parent at the Closing, a copy of which is
attached as Exhibit D hereto (the "Company Disclosure Schedule"):
3.1 ORGANIZATION, GOOD STANDING AND QUALIFICATION. The Company is a
corporation duly incorporated, duly organized, validly existing and in good
standing under the laws of the State of California. The Company has all
requisite corporate power and authority to own and operate its properties and
assets, to execute and deliver this Agreement and to carry on its business as
presently conducted and as presently proposed to be conducted. The Company is
duly qualified and is authorized to do business and is in good standing as a
foreign corporation in all jurisdictions in which the nature of its activities
and of its properties (both owned and leased) makes such qualification necessary
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