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Agreement and Plan of Merger

 

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Title:

Agreement and Plan of Merger

Entities:

Reinhold Industries Inc.

Date:

2006

Size:

Preview shows 45KB of 173KB total

Price:

$78

ID:

#2633782

 

 

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

by and among

Reinhold Industries, Inc.,

Reinhold Holdings, Inc.

and

Reinhold Acquisition Corp.

November 2, 2006








TABLE OF CONTENTS



Page


RECITALS

1

ARTICLE I

THE TENDER OFFER

1

1.1

The Offer

1

1.2

Offer Documents

3

1.3

Company Actions

3

1.4

Directors

5

1.5

Termination or Withdrawal of the Offer

6

ARTICLE II

THE MERGER

6

2.1

The Merger

6

2.2

The Closing

6

2.3

Effective Time

6

2.4

Certificate of Incorporation and Bylaws of the Surviving Corporation

6

2.5

Directors and Officers of the Surviving Corporation

7

2.6

Conversion of Securities

7

2.7

Surrender of Shares, Stock Transfer Books

8

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

11

3.1

Organization of the Company

11

3.2

Authorization

11

3.3

Validity; Binding Effect

11

3.4

Noncontravention

11

3.5

Capitalization

11

3.6

SEC Documents; Financial Statements

12

3.7

Undisclosed Liabilities

13

3.8

Real Estate

13

3.9

Tax Matters

13

3.10

Litigation

14

3.11

Legal Compliance

14

3.12

Environmental Laws and Regulations

14

3.13

Labor and Employment Matters

16

3.14

Employee Benefits and Arrangements

16

3.15

Brokers Fees and Company Transition Fees and Costs

18

3.16

Opinion of Company Financial Adviser

18

3.17

State Takeover Statutes

19

3.18

Voting Requirements

19

3.19

Offer Documents; Proxy Statement

19

3.20

Intellectual Property

19

3.21

Insurance

20

3.22

Product Liability and Warranty

20

3.23

Customers and Suppliers

21

3.24

Backlog

21

3.25

Contracts

21



i





3.26

Bank Accounts

23

3.27

Information Supplied

23

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF PARENT

AND PURCHASER

23

4.1

Organization

23

4.2

Authorization

24

4.3

Validity, Binding Effect

24

4.4

Noncontravention

24

4.5

Financing

24

4.6

Brokers Fees

24

4.7

Offer Documents; Proxy Statement

25

4.8

Litigation

25

ARTICLE V

COVENANTS

25

5.1

General

25

5.2

Notices and Consents

25

5.3

The Companys Operation of the Business

26

5.4

Advice of Changes

28

5.5

No Solicitation

29

5.6

Publicity

31

5.7

Proxy Statement; Shareholders Meeting

31

5.8

Shareholders Agreement

31

5.9

Potential Litigation

32

5.10

Company Transaction Fees and Costs

32

5.11

Assistance with Financing

32

5.12

Delivery of Monthly Financial Statements

32

5.13

Conveyance Taxes

32

5.14

Inspection of Records

33

ARTICLE VI

CONDITIONS PRECEDENT

33

6.1

Conditions to Each Partys Obligation to Effect the Merger

33

ARTICLE VII

TERMINATION

33

7.1

Termination by Mutual Consent

33

7.2

Termination by Either Purchaser or Company

34

7.3

Termination by Company

34

7.4

Termination by Purchaser

34

7.5

Effect of Termination and Abandonment; Termination Fee

35

ARTICLE VIII

GENERAL PROVISIONS

36

8.1

Nonsurvival of Representations and Warranties

36

8.2

Notices

36

8.3

Assignment; Binding Effect

37

8.4

Entire Agreement

37

8.5

Amendment

37

8.6

Governing Law

37

8.7

Enforcement; Venue; Waiver of Jury Trial

37

8.8

Counterparts

38

8.9

Headings

38

8.10

Waivers

38



ii




8.11

Incorporation of Annex A

38

8.12

Severability

38

8.13

Enforcement of Agreement

39

8.14

Expenses

39

8.15

Insurance; Indemnity

39

8.16

Employee Benefits Matters

39

8.17

Definitions

40

8.18

Interpretations

48



iii





AGREEMENT AND PLAN OF MERGER

THIS AGREEMENT AND PLAN OF MERGER (this Agreement), dated as of November 2, 2006, is entered into by and among Reinhold Industries, Inc., a Delaware corporation (the Company), Reinhold Holdings Inc., a Delaware corporation (the Parent), and Reinhold Acquisition Corp., a Delaware corporation (Purchaser).

RECITALS

A.

The Board of Directors of the Company has determined that it is in the best interests of the Company and its shareholders for Purchaser to acquire the Company on the terms and subject to the conditions set forth herein (the Acquisition).

B.

As a first step in the Acquisition, the Company, Parent and Purchaser each desire that Purchaser commence a cash tender offer (the Offer) to purchase the Companys issued and outstanding Class A common shares, par value $0.01 per share (the Shares), for the Per Share Amount, on the terms and subject to the conditions set forth in this Agreement.

C.

The Board of Directors of the Company (the Company Board), and the Board of Directors of Purchaser, have approved, and the Company Board has unanimously resolved to recommend that the holders of the Shares (Shareholders) approve, the merger of Purchaser with and into the Company (the Merger), wherein the Company shall survive such merger and any issued and outstanding Shares not tendered and purchased by Purchaser pursuant to the Offer (other than Shares described in Section 2.6(b)) will be converted into the right to receive the Per Share Amount, on the terms and subject to the conditions of this Agreement and in accordance with the Delaware General Corporation Law (the DGCL).

D.

In order to induce Parent and Purchaser to enter into this Agreement, concurrently with the execution and delivery hereof, Purchaser, the Company and certain Shareholders, whose names and number of shares are set forth in Section 5.8 of the Company Disclosure Letter and who on a combined basis beneficially own approximately 49.8% of the outstanding Shares, are entering into a Shareholders Agreement, dated as of the date hereof (the Shareholders Agreement).  

NOW THEREFORE, in consideration of the representations, warranties and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the parties agree as follows:

ARTICLE I.
THE TENDER OFFER

1.1

The Offer.

(a)

Provided that (i) this Agreement shall not have been terminated in accordance with Article VII and (ii) none of the events or conditions set forth in Annex A shall have occurred or be existing and not have been waived, as promptly as practicable (but in any event not later than five (5) business days after the public announcement of the execution and delivery of this Agreement), Purchaser shall commence (within the meaning of Rule 14d-2 under the Securities Exchange Act of 1934, as amended (the Exchange Act)), the Offer whereby Purchaser will offer to purchase for cash all of the Shares at the Per Share Amount (subject to







reduction for any stock transfer taxes payable by the holders of such Shares, if payment is to be made to a Person other than the Person in whose name the certificate for such Shares is registered, or any applicable federal back-up withholding); provided, however, that Parent may designate another direct or indirect Subsidiary of Parent as the bidder thereunder (within the meaning of Rule 14d-1(c) under the Exchange Act, in which case references herein to Purchaser will be deemed to apply to such Subsidiary, as applicable).  Purchaser shall keep, and Parent shall cause Purchaser to keep, the Offer open for a period of at least twenty (20) business days after the commencement of the Offer (such period, the First Offer Period).  In the event that the Minimum Condition has not been satisfied pursuant to the Offer during the First Offer Period, Purchaser shall keep, and Parent shall cause Purchaser to keep, the Offer open for a period of at least ten (10) business days after the expiration of the First Offer Period (such period, the Second Offer Period and together with the First Offer Period, the Offer Period).  In the event that, immediately prior to the Expiration Date, the Minimum Condition has not been met, the Company shall have the right to require Purchaser to extend the Expiration Date for an additional period not to exceed twenty (20) business days.


 

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