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Document Preview Agreement and Plan of Reorganization |
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Title: |
Agreement and Plan of Reorganization |
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Date: |
2007 |
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Preview shows 7KB of 71KB total |
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Price: |
$50 |
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ID: |
#2880403 |
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AGREEMENT AND PLAN OF REORGANIZATION
THIS AGREEMENT AND PLAN OF REORGANIZATION ("Agreement") is
made as of this 8th day of September, 2006, by and among LEGG
MASON PARTNERS AGGRESSIVE GROWTH FUND, INC., a Maryland
corporation, with its principal place of business at 125 Broad
Street, New York, New York 10004, (the "Acquiring Fund"), LEGG
MASON PARTNERS SECTOR SERIES, INC., a Maryland corporation
(the "Acquired Entity"), with its principal place of business
at 125 Broad Street, New York, New York 10004, on behalf of
its series Legg Mason Partners Health Sciences Fund (the
"Acquired Fund"), and, solely for purposes of paragraph 10.2
hereof, Legg Mason Partners Fund Advisor, LLC.
WHEREAS, each of the Acquired Fund and the Acquiring Fund
is a series or the sole series of an open-end management
investment company registered pursuant to the Investment
Company Act of 1940, as amended (the "1940 Act");
WHEREAS, it is intended that, for United States federal
income tax purposes (i) the transactions contemplated by this
Agreement shall qualify as a "reorganization" within the
meaning of Section 368(a) of the Internal Revenue Code of
1986, as amended (the "Code") and (ii) this Agreement shall
constitute a plan of reorganization within the meaning of
Treasury Regulation Section 1.368-2(g);
WHEREAS, the reorganization will consist of (1) the sale,
assignment, conveyance, transfer and delivery of all of the
property and assets of the Acquired Fund to the Acquiring Fund
in exchange solely for classes of shares of common stock of
the Acquiring Fund (the "Acquiring Fund Shares") corresponding
to the classes of outstanding shares of common stock of the
Acquired Fund (the "Acquired Fund Shares"), as described
herein, (2) the assumption by the Acquiring Fund of all
liabilities of the Acquired Fund, and (3) the subsequent
distribution of the Acquiring Fund Shares and any of the
remaining properties and assets to the shareholders of the
Acquired Fund and the termination of the Acquired Fund, as
provided herein (the "Reorganization"), all upon the terms and
conditions hereinafter set forth in this Agreement;
WHEREAS, the Acquired Fund currently owns securities that
are generally assets of the character in which the Acquiring
Fund is permitted to invest;
WHEREAS, the Board of Directors of the Acquiring Fund (the
"Acquiring Fund Board") has determined, with respect to the
Acquiring Fund, that the sale, assignment, conveyance,
transfer and delivery of all of the property and assets of the
Acquired Fund for Acquiring Fund Shares and the assumption of
all liabilities of the Acquired Fund by the Acquiring Fund is
in the best interests of the Acquiring Fund and its
shareholders and that the interests of the existing
shareholders of the Acquiring Fund will not be diluted as a
result of this transaction;
WHEREAS, the Board of Directors of the Acquired Entity (the
"Acquired Entity Board") has determined, with respect to the
Acquired Fund, that the sale, assignment, conveyance, transfer
and delivery of all of the property and assets of the Acquired
Fund for Acquiring Fund Shares and the assumption of all
liabilities of the Acquired Fund by the Acquiring Fund is in
the best interests of the Acquired Fund and its shareholders
and that the interests of the existing shareholders of the
Acquired Fund will not be diluted as a result of this
transaction;
NOW, THEREFORE, in consideration of the premises and of the
covenants and agreements hereinafter set forth, the parties
hereto covenant and agree as follows:
1
.
TRANSFER OF THE ASSETS OF THE ACQUIRED FUND TO THE ACQUIRING
FUND IN EXCHANGE FOR ACQUIRING FUND SHARES, THE ASSUMPTION
OF ALL ACQUIRED FUND LIABILITIES, THE SUBSEQUENT
DISTRIBUTION OF ACQUIRING FUND SHARES AND THE TERMINATION OF
THE ACQUIRED FUND
1.1 Subject to requisite approvals and the other terms and
conditions herein set forth and on the basis of the
representations and warranties contained herein, the Acquired
Entity, on behalf of the Acquired Fund, agrees to sell,
assign, convey, transfer and deliver all of its property and
assets, as set forth in paragraph 1.2, to the Acquiring Fund,
and the Acquiring Fund agrees in exchange therefor: (a) to
deliver to the Acquired Fund the number of full and fractional
Acquiring Fund Shares corresponding to each class of the
Acquired Fund Shares as of the time and date set forth in
paragraph 3.1, determined by dividing the value of the
Acquired Fund's net assets with respect to each class of the
Acquired Fund (computed in the manner and as of the time and
date set forth in paragraph 2.1) by the net asset value of one
share of the corresponding class of Acquiring Fund Shares
(computed in the manner and as of the time and date set forth
in paragraph 2.2); and (b) to assume all liabilities of the
Acquired Fund. Such transactions shall take place on a closing
date as provided for in paragraph 3.1 (the "Closing Date").
1.2 The property and assets of the Acquired Entity,
attributable to the Acquired Fund, to be sold, assigned,
conveyed, transferred and delivered to and acquired by the
Acquiring Fund, shall consist of all assets and property of
every kind and nature of the Acquired Fund, including, without
limitation, all rights, receivables (including dividend,
interest and other receivables), cash, cash equivalents,
claims (whether absolute or contingent, known or unknown),
securities, commodities and futures interests, good will and
other intangible property, any deferred or prepaid expenses
and all interests, rights, privileges and powers, the Acquired
Fund owns at the Valuation Date (as defined in paragraph 2.1)
(collectively, "Assets"). The Acquiring Fund shall assume all
of the liabilities and obligations of the Acquired Fund,
including, without limitation, all indemnification obligations
of the Acquired Fund with respect to the current and former
members of the Acquired Entity Board and officers of the
Acquired Entity, whether accrued or contingent, known or
unknown, existing at the Valuation Date (collectively,
"Liabilities"). The Acquired Fund will sell, assign, convey,
transfer and deliver to the Acquiring Fund any rights, stock
dividends, or other securities received by the Acquired Fund
after the Closing Date as stock dividends or other
distributions on or with respect to the property and assets
transferred, which rights, stock dividends, and other
securities shall be deemed included in the property and assets
transferred to the Acquiring Fund at the Closing Date and
shall not be separately valued, in which case any such
distribution that remains unpaid as of the Closing Date shall
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