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Agreement and Plan of Merger

 

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Title:

Agreement and Plan of Merger

Entities:

Hanover Direct, Inc.; Dechert LLP

Date:

2006

Size:

141KB total

Price:

$67

ID:

#2646267

 

 

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Start of Preview


 

 

 

AGREEMENT AND PLAN OF MERGER

 

AMONG

 

CHELSEY DIRECT, LLC,

 

CHELSEY ACQUISITION, INC.

 

AND

 

HANOVER DIRECT, INC.

 

 

DATED: AS OF NOVEMBER 27, 2006

 

 


TABLE OF CONTENTS

 

 

Page

 

ARTICLE 1

THE MERGER

1

 

Section 1.1

The Merger

1

 

Section 1.2

Closing

1

 

Section 1.3

Effective Time

2

 

Section 1.4

Effects of the Merger

2

 

Section 1.5

Certificate of Incorporation and Bylaws of the Surviving Corporation

2

 

Section 1.6

Directors of the Surviving Corporation

2

 

Section 1.7

Officers of the Surviving Corporation

2

 

Section 1.8

Additional Actions

2

ARTICLE 2

EFFECT OF THE MERGER ON THE CAPITAL STOCK OF THE

CONSTITUENT CORPORATIONS; EXCHANGE OF CERTIFICATES; COMPANY

 

STOCK OPTIONS

2

 

Section 2.1

Effect on Capital Stock

3

 

Section 2.2

Appraisal Rights

3

 

Section 2.3

Surrender of Certificates

3

 

Section 2.4

Company Stock Options

5

 

Section 2.5

Withholding Taxes

5

 

Section 2.6

Adjustments

5

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

6

 

Section 3.1

Organization, Standing and Corporate Power

6

 

Section 3.2

Capitalization

6

 

Section 3.3

Authority; Noncontravention; Stock Approval

7

 

Section 3.4

Governmental Approvals

8

 

Section 3.5

Company SEC Documents; Undisclosed Liabilities.

8

 

Section 3.6

Legal Proceedings

9

 

Section 3.7

Compliance With Laws

9

 

Section 3.8

Tax Matters

9

 

Section 3.9

Valuation Analysis

9

 

Section 3.10

Brokers and Other Advisors

9

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF PURCHASER AND

 

MERGER SUB

10

 

Section 4.1

Organization, Standing and Corporate Power

10

 

Section 4.2

Authority; Noncontravention

10

 

Section 4.3

Governmental Approvals

10

 

Section 4.4

Ownership and Operations of Merger Sub

11

 

Section 4.5

Availability of Funds

11

 

Section 4.6

Brokers and Other Advisors

11

 

 

 

 


TABLE OF CONTENTS

(continued)

 

Page

 

ARTICLE 5

COVENANTS AND AGREEMENTS

11

 

Section 5.1

Preparation of the Proxy Statement; Schedule 13E-3; Stockholder

 

Meeting

11

 

Section 5.2

Conduct of Business of the Company

12

 

Section 5.3

Further Action; Efforts

15

 

Section 5.4

Public Announcements

16

 

Section 5.5

Access to Information; Confidentiality

16

 

Section 5.6

Notification of Certain Matters

16

 

Section 5.7

Indemnification and Insurance

17

 

Section 5.8

Securityholder Litigation

18

 

Section 5.9

Fees and Expenses

18

 

Section 5.10

Purchaser Vote

18

 

Section 5.11

Approval by Chelsey Finance

18

 

ARTICLE 6

CONDITIONS PRECEDENT

18

 

Section 6.1

Conditions to Each Partys Obligation to Effect the Merger

18

 

Section 6.2

Conditions to Obligations of Purchaser and Merger Sub

18

 

Section 6.3

Conditions to Obligations of the Company

19

ARTICLE 7

TERMINATION

19

 

Section 7.1

Termination

19

 

Section 7.2

Effect of Termination

21

ARTICLE 8

MISCELLANEOUS

22

 

Section 8.1

Effect of Action of Knowledge of Purchaser Group

22

 

Section 8.2

Nonsurvival of Representations and Warranties

22

 

Section 8.3

Amendment or Supplement

23

 

Section 8.4

Extension of Time, Waiver, Etc

23

 

Section 8.5

Assignment

23

 

Section 8.6

Counterparts; Facsimile; Electronic Transmission

23

 

Section 8.7

Entire Agreement; No Third-Party Beneficiaries

23

 

Section 8.8

Governing Law; Waiver of Jury Trial

23

 

Section 8.9

Specific Enforcement

23

 

Section 8.10

Consent to Jurisdiction

24

 

Section 8.11

Notices

24

 

Section 8.12

Severability

25

 

Section 8.13

Definitions

25


 

 

Section 8.14

Interpretation

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