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Agreement and Plan of Merger

 

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Title:

Agreement and Plan of Merger

Entities:

Date:

2002

Size:

Preview shows 10KB of 107KB total

Price:

$53

ID:

#960741

 

 

► Plans ► Agreements ► Agreements & Plans of Merger

 

 

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of Broadband, with an address at 1900 AM Drive, Quakertown, Pennsylvania

18951-2107 ("Sub"), NEX-LINK COMMUNICATIONS PROJECT SERVICES, LLC, a Florida
limited liability company (the "Company"), and all of the members (each a
"Member" and, collectively, the "Members") of the Company. The names, addresses
and membership interest of the Members, along with the consideration to be
received by each such Member, are set forth on Exhibit A attached hereto.

BACKGROUND

WHEREAS, the Members own all of the issued and outstanding membership
interests of the Company; and

WHEREAS, the Boards of Directors of Broadband and Sub, and the Members,
deem it advisable and in the best interests of their respective companies to
consummate, and have approved, the transaction provided for herein in which the
Company would merge with and into Sub, with Sub being the surviving corporation
and remaining a wholly-owned subsidiary of Broadband (the "Merger").

NOW, THEREFORE, in consideration of the foregoing recitals and the
respective representations, warranties, covenants and agreements set forth
herein, the parties hereto, intending to be legally bound, agree as follows:


ARTICLE I

THE MERGER

SECTION 1.01 Effective Time of the Merger. Subject to the provisions of
this Agreement, as soon as practicable on or after the Closing Date (as defined
in Section 1.02), (i) a certificate of merger (the "Certificate of Merger")
shall be duly prepared and executed by Sub (and, if required, executed by the
Company) and thereafter delivered to the Secretary of State of the State of
Delaware for filing, as provided in the Delaware General Corporation Law, as
amended (the "GCL"), and (ii) articles of merger (the "Articles of Merger")
shall be duly prepared and executed by the Company (and, if required, executed
by Sub) and thereafter delivered to the Department of State of the State of
Florida for filing, as provided in the Section 607.1105 of the Florida Business
Corporation Act (the "BCL"). The Merger shall become effective upon the filing
of the Articles of Merger with the Department of State of the State of Florida
and the filing of the Certificate of Merger with the Secretary of State of the
State of Delaware or at such time thereafter as is provided in the Articles of
Merger and Certificate of Merger (the "Effective Time").






<PAGE>


SECTION 1.02 Closing. The closing of the Merger (the "Closing") will
take place at 10:00 A.M. on a date to be specified by the parties, which shall
be no later than the second business day after satisfaction of the latest to
occur of the conditions set forth in Sections 6.01 and 6.02 (other than the
delivery of the officers' certificate referred to therein) (the "Closing Date"),
at the offices of Archer & Greiner, A Professional Corporation, One Centennial
Square, Haddonfield, New Jersey 08033, unless another date or place is agreed to
in writing by the parties hereto.

SECTION 1.03 Effects of the Merger.

(a) At the Effective Time (i) the separate existence of the
Company shall cease and Company shall be merged with and into Sub (Sub and the
Company are sometimes referred to herein as the "Constituent Corporations" and
Sub is sometimes referred to herein as the "Surviving Corporation"), (ii) the
Certificate of Incorporation of Sub as in effect immediately prior to the
Effective Time, with such amendments thereto as are effected by this Agreement,
shall be the Certificate of Incorporation of the Surviving Corporation, and
(iii) the By-laws of Sub as in effect immediately prior to the Effective Time
shall be the By-laws of the Surviving Corporation.

(b) At and after the Effective Time, the Surviving Corporation
shall possess all the rights, privileges, powers and franchises and be subject
to all the restrictions, disabilities and duties of each of the Constituent
Corporations; and all and singular rights, privileges, powers and franchises of
each of the Constituent Corporations, and all property, real, personal and
mixed, and all debts due to either of the Constituent Corporations on whatever
account, as well as for stock and other securities subscriptions and all other
things in action or belonging to each of the Constituent Corporations, shall be
vested in the Surviving Corporation, and all property, rights, privileges,
powers and franchises, and all and every other interest shall be thereafter as
effectively the property of the Surviving Corporation as they were of the
Constituent Corporations, and the title to any real estate vested by deed or
otherwise, in either of the Constituent Corporations, shall not revert or be in
any way impaired; but all rights of creditors and all liens upon any property of
either of the Constituent Corporations shall be preserved unimpaired, and all
debts, liabilities and duties of the Constituent Corporations shall thenceforth
attach to the Surviving Corporation, and may be enforced against it to the same
extent as if said debts and liabilities had been incurred by it.

SECTION 1.04 Directors of the Surviving Corporation. The director(s) of
Sub at the Effective Time shall, from and after the Effective Time, be the
directors of the Surviving Corporation, until their successor(s) are duly
elected and qualified, or until their earlier death, resignation or removal in
accordance with the Surviving Corporation's Certificate of Incorporation and
By-laws.

SECTION 1.05 Certificate of Incorporation of the Surviving Corporation.
The Certificate of Incorporation of the Surviving Corporation shall be amended
as follows, effective as of the Effective Time:

Article FIRST shall be amended to read in its entirety as
follows:




2
<PAGE>

"FIRST: Name. The name of the Corporation is AM
Nex-Link Communications, Inc."

ARTICLE II

CONSIDERATION TO BE RECEIVED BY MEMBERS

SECTION 2.01 Consideration to be Received for Membership Interests.

(a) As of the Effective Time, by virtue of the Merger and
without any action on the part of the holders of any of the outstanding
membership interests of the Company (the "Membership Interests"), all of the
outstanding Membership Interests shall be converted into the right to receive,
in the aggregate, 7,000,000 restricted shares of common stock of AM
Communications, Inc., a Delaware corporation (the "Parent"), par value $.10 per
share (the "AM Shares"), to be delivered by Broadband to the Members at the
Closing. The AM Shares shall be allocated among the Members as set forth on
Exhibit A attached hereto. All of the Membership Interests, when so converted,
shall no longer be outstanding and shall automatically be canceled and retired
and shall cease to exist, and each holder of a certificate representing any such
Membership Interest shall cease to have any rights with respect thereto, except
the right to receive his pro rata share of the AM Shares.

(b) In addition to the AM Shares, the following consideration
shall be payable by Sub to the Members in conjunction with the Merger and shall
be allocated among the Members as set forth on Exhibit A attached hereto:

(i) $1,000,000 in cash, to be paid by Sub to the Members
(and allocated among the Members as set forth on Exhibit A attached hereto) in
weekly installments beginning no sooner than the week of July 1, 2002, each in
an amount equal to the amount of the Company's Account Receivables (as such term
is defined hereinafter), or new accounts receivable obtained by the Sub after
the Closing (to the extent such new accounts receivable do not exceed the
difference between the $1,000,000 and the total Account Receivables), which are
actually collected by Sub during the immediately preceding week, and continuing
until the Sub shall have paid an aggregate of $1,000,000 in cash to the Members;
and

(ii) $1,000,000 in the form of a subordinated promissory
note in the form attached hereto as Exhibit B (the "Purchase Note"), to be
delivered by Sub to the Members at the Closing.


SECTION 2.02 Closing Procedures.

(a) The Closing shall be effectuated as follows:

(i) The Members shall deliver to Sub for cancellation (A)
all certificates representing the Membership Interests, or (B) if the Membership
Interests are not represented by certificates, an acknowledgment of cancellation
of each of the Membership Interests in form and substance satisfactory to Sub in
its reasonable discretion. The Members will pay all federal, state, county and
local taxes (including all requisite transfer taxes) which may be due or payable
by reason of the surrender and cancellation of the Membership Interests in

 

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