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Agreement and Plan of Merger

 

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Title:

Agreement and Plan of Merger

Entities:

Avaya Inc.; Celestica Inc.; Credit Suisse; Credit Suisse First Boston LLC; Lexmark International, Inc.; Rockwell Automation; SONICblue, Inc.; Bank of America, NA; Merrill Lynch & Co., Inc.; Kaye Scholer

Date:

2003

Size:

Preview shows 4KB of 368KB total

Price:

$99

ID:

#2398865

 

 

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                          AGREEMENT AND PLAN OF MERGER


This Agreement and Plan of Merger ("Agreement") is made and entered into
as of October 14, 2003, by and among CELESTICA Inc., a corporation organized
under the laws of the Province of Ontario, Canada ("Parent"); MSL ACQUISITION
SUB INC., a Delaware corporation and a wholly owned subsidiary of Parent
("Merger Sub"), and Manufacturers' Services Limited, a Delaware corporation
(the "Company"). Certain capitalized terms used in this Agreement are defined
in Exhibit A.

RECITALS

Parent, Merger Sub and the Company intend to effect a merger of the
Company with and into the Merger Sub in accordance with this Agreement and the
DGCL (the "Merger"). Upon consummation of the Merger, the Company will cease to
exist, and the Merger Sub will remain a wholly owned subsidiary of Parent.

It is intended that the Merger qualify as a reorganization within the
meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the
"Code").

The respective boards of directors of Parent, Merger Sub and the Company
have declared the advisability of and approved this Agreement and approved the
Merger.

As a condition to the willingness of Parent and Merger Sub to enter into
this Agreement and to consummate the Merger and the other transactions
contemplated hereby, Parent has required that (a) specified officers and
directors of the Company agree, among other things, to vote all shares of
Company Common Stock beneficially owned by such officers and directors in favor
of the adoption of this Agreement in the event that such matter is put to the
stockholders of the Company for a vote and (b) certain stockholders of the
Company agree, among other things (i) to vote all shares of Company Common
Stock, Series A Preferred and Series B Preferred beneficially owned by such
stockholders in favor of the adoption of this Agreement in the event that such
matter is put to the stockholders of the Company for a vote, and (ii) to grant
an option to Parent for the purchase, under certain circumstances, of a portion
of the shares of Company Common Stock beneficially owned by such stockholders
and representing 30% of the aggregate voting power of the outstanding capital
stock of the Company (the "Stockholder Options"), all as specified in, and in
accordance with, the terms and provisions of stockholder agreements, dated as
of the date hereof, among each stockholder (collectively, the "Stockholders"),
Parent and Merger Sub, the forms of which are attached hereto as Exhibit B-1
and Exhibit B-2 (the "Stockholder Agreements"); and in order to induce Parent
and Merger Sub to enter into this Agreement, the Stockholders are each
executing and delivering their respective Stockholder Agreements simultaneously
herewith.

AGREEMENT

The parties to this Agreement, intending to be legally bound, agree as
follows:

{PAGE}

SECTION 1: Description of Transaction.

1.1 Merger of the Company with and into Merger Sub. Upon the terms
and subject to the conditions set forth in this Agreement, at the Effective
Time, the Company shall be merged with and into Merger Sub, and the separate
existence of the Company shall cease. Following the Effective Time, Merger Sub
shall continue as the surviving corporation (the "Surviving Corporation").

1.2 Effect of the Merger. The Merger shall have the effects set forth
in this Agreement and in the applicable provisions of the DGCL.

1.3 Closing; Effective Time. The consummation of the transactions
contemplated by this Agreement (the "Closing") shall take place at the offices
of Hale and Dorr LLP, 60 State Street, Boston, Massachusetts 02109, at 10:00

 

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