AGREEMENT AND PLAN OF MERGER (Buye r Oriente d)

Transcription

1 AGREEMENT AND PLAN OF MERGER (Buye r Oriente d) AGREEMENT AND PLAN OF MERGER, dat ed Mar c h, 20 ( Agreement ), by an d amo n g ABC Cor por at ion, a Del awar e cor por at ion ( Parent ), ABC Ac q u is it ion Cor p., a Col or ado cor por at ion and a whol l yowned s ubs idiar y of Par ent ( Sub ), ABC, In c., a Col or ado cor por at ion (t he Company ), John Doe ( Doe ), and t he ot her s t ockhol der s of t he Comp an y s et f or t h on t he s ignat ur e pages her et o (t oget her wit h Doe, col l ect ivel y, t he Principal Stockholders ). Th e Comp an y and Sub ar e s ome t ime s her ein col l ect ivel y r e f e r r e d t o as t he Constituent Corporations. RECITALS A. Th e Comp an y is engaged in t he bus ines s of devel oping, man u f ac t u r ing and mar ke t ing high per f or man c e pr oduct s des igned t o enhance t he qual it y, c apac it y, cover age and f l exibil it y of cel l ul ar, per s onal commu n icat ion s er vices and ot her wir el es s t el ecommu n icat ions s er vices (t he Business ). B. Par ent, Sub and t he Comp an y des ir e t o ef f ect a me r ge r ( Merger ) of Sub int o t he Comp an y, pur s uant t o which (i) s ubject t o Sect ions 2.1(d) and 2.5 her eof, (a) each s har e of t he Comp an y s Non-Vot ing commo n s t ock, $.001 par val ue per s har e ( Company Common Stock ) wil l be conver t ed int o s har es of t he vot ing Commo n St ock of Par ent, $.001 par val ue per s har e ( Parent Common Stock ), and (b) each s har e of t he Comp an y s Vot ing Pr ef er r ed s t ock, $.001 par val ue ( Company Preferre d Stock ) wil l be conver t ed int o s har es of Par ent Commo n St ock and (ii) Par ent wil l become t he s ol e s t ockhol der of t he Sur vivin g Cor por at ion (as def ined bel ow). C. Th e Boar ds of Dir ect or s of Par ent, Sub and t he Comp an y have each appr oved t he Me r ge r upon t he t er ms and s ubject t o t he condit ions s et f or t h her ein and deem it advis abl e and in t he bes t int er es t s of t heir r es pect ive s t ockhol der s t hat t he Me r ge r be cons ummat e d. D. For f eder al income t ax pur pos es, it is int ended t hat t he Me r ge r s h al l qual if y as a r eor ganizat ion wit hin t he me an ing of Sect ion 368(a) of t he In t er n al Reven u e Code of 1986, as ame n d e d (t he Code ). E. Cer t ain of t he capit al ized t er ms us ed her ein ar e def ined in Sect ion AGREEMENTS NOW, THEREFORE, in cons ider at ion of t he r ecit al s (which ar e deeme d t o be a par t of t his Agr e e me n t ), mu t u al coven an t s, r epr es ent at ions, war r ant ies and agr eeme n t s cont ained her ein and ot her good and val uabl e cons ider at ion, t he r eceipt and s uf f iciency of which ar e her eby ac kn owl edged, t he par t ies her et o agr ee as f ol l ows :

2 ARTICLE I THE MERGER SECTION 1.1. Th e Me r ge r ; Sur vivin g Cor por at ion. Upon t he t er ms and s ubject t o t he condit ions her eof, and in accor dance wit h t he pr ovis ions of t he Col or ado Bus ines s Cor por at ion Ac t, as ame n d e d (t he CBCA ), Sub s hal l be me r ge d wit h and int o t he Comp an y as s oon as pr act icabl e af t er s at is f act ion or waiver of t he condit ions s et f or t h in Ar t icl e VII. Fol l owing t he Me r ge r, t he s epar at e exis t e n c e of Sub s hal l ceas e, and t he Comp an y s h al l cont inue as t he s ur vivin g cor por at ion in t he Me r ge r (t he Surviving Corporation ). SECTION 1.2. Ef f ect of t he Me r ge r. Th e Me r ge r s hal l have t he ef f ect s s et f or t h in t he CBCA. Fr om and af t er t he Ef f ect ive Time (as def ined bel ow), t he Sur vivin g Cor por at ion s hal l be a whol l yowned s ubs idiar y of Par ent. SECTION 1.3. Ar t icl es of In cor por at ion of t he Sur vivin g Cor por at ion. Th e Ar t icl es of In cor por at ion of t he Comp an y, as in ef f ect imme diat el y pr ior t o t he Ef f ect ive Time of t he Me r ge r, s hal l be ame n d e d as of t he Ef f ect ive Time wit hout any f ur t her act ion on t he par t of t he Con s t it uent Cor por at ions t o r ead in it s ent ir et y as t he Ar t icl es of In cor por at ion of Sub (exc e pt t hat t he name of t he Sur vivin g Cor por at ion s hal l be Spect r al Sol ut ions, In c.), and, as s o ame n d e d, s uch Ar t icl es of In cor por at ion s hal l be t he Ar t icl es of In cor por at ion of t he Sur vivin g Cor por at ion unt il t her eaf t er changed or ame n d e d as pr ovided t her ein or by appl icabl e l aw. SECTION 1.4. Byl aws of t he Sur vivin g Cor por at ion. At t he Ef f ect ive Time and wit hout any f ur t her act ion on t he par t of t he Con s t it uent Cor por at ions, t he Byl aws of Sub s hal l be t he Byl aws of t he Sur vivin g Cor por at ion. SECTION 1.5. Boar d of Dir ect or s and Of f icer s of t he Sur vivin g Cor por at ion. At t he Ef f ect ive Time, t he per s ons l is t ed on Schedul e 1.5(a) s hal l be t he dir ect or s of t he Sur vivin g Cor por at ion and t he per s ons l is t ed on Schedul e 1.5(b) s hal l be t he init ial of f icer s of t he Sur vivin g Cor por at ion each hol ding s uch pos it ions as indicat ed on s uch Schedul e, each of s uch dir ect or s and of f icer s t o hol d of f ice unt il t heir r es pect ive s u cces s or s ar e dul y el ect ed and qual if ied, or t heir ear l ier deat h, r es ignat ion or r emo val. SECTION 1.6. Ef f ect ive Time of t he Me r ge r. Th e Con s t it uent Cor por at ions wil l caus e ar t icl es of me r ge r and s uch ot her docume n t s as ar e r equir ed by t he CBCA t o be dul y f il ed wit h t he Secr et ar y of St at e of t he St at e of Col or ado (t he Colorado Authority ). Th e Me r ge r s hal l become e f f e c t ive upon t he f il ing of ar t icl es of me r ge r s ubs t ant ial l y in t he f or m at t ac h e d her et o as Exh ibit A wit h t he Col or ado Au t h or it y (t he t ime of s uch f il ing being t he Effective Time ). ARTICLE II

3 CONVERSION OF SHARES SECTION 2.1. Con ver s ion of Capit al St ock. As of t he Ef f ect ive Time, by vir t u e of t he Me r ge r and wit hout any act ion on t he par t of t he hol der s of t he capit al s t ock of t he Con s t it uent Cor por at ions : (a) Sub Commo n St ock. Al l of t he is s ued and out s t anding s har es of Sub commo n s t ock, $.001 par val ue per s har e ( Sub Common Stock ), s hal l be conver t ed int o and become one f ul l y paid and nonas s es s abl e s har e of commo n s t ock of t he Sur vivin g Cor por at ion. (b) Can c e l l at ion of Tr eas u r y St ock. Al l s har es of Comp an y Commo n S t o c k and/or Comp an y Pr ef er r ed St ock ( Company Securities ) t hat ar e owned dir ect l y or indir ect l y by t he Comp an y s hal l be cancel l ed, and no cons ider at ion s hal l be del iver ed in exc h an ge t her ef or. (c) Con ver s ion of Comp an y Commo n St ock. Except as pr ovided in Sect ions 2.2 and 2.3 and s ubject t o Sect ion 2.1(e), each is s ued and out s t anding s har e of Comp an y Commo n St ock is s ued and out s t anding imme diat el y pr ior t o t he Ef f ect ive Time s hal l be conver t ed int o and exc h an ge d s ol el y f or t he Pr o Rat a Numb e r of s har es of Par ent Commo n St ock; pr ovided, however t hat each of t he Pr incipal St ockhol der s who is t he r ecor d hol der of any s har es of Comp an y Commo n St ock which wer e gr ant ed t o s uch Pr incipal St ockhol der s pur s uant t o one of t he St ock Gr ant Agr e e me n t s bet ween t he Comp an y and t he Pr incipal St ockhol der s l is t ed on Schedul e 2.1(c) her et o ( the Re stricted Stock Agreements ) her eby waives any accel er at ion of t he ves t ing of s uch s har es of Comp an y Commo n St ock which woul d ot her wis e be r equir ed in connect ion wit h t he cons ummat ion of t he Me r ge r and any s har es of Par ent Commo n St ock r eceived upon conver s ion of s uch s har es of Comp an y Commo n St ock ( Re stricted Parent Stock ) pur s uant her et o s hal l ves t on t he s ame s chedul e as s uch Comp an y Commo n St ock (quant if ied on an as conver t ed bas is ) exc e pt t hat al l of s uch s har es s hal l become f ul l y ves t ed upon an In vol u n t ar y Ter min at ion of Empl oyme n t of s uch Pr incipal St ockhol der. (d) Con ver s ion of Comp an y Pr ef er r ed St ock. Except as pr ovided in Sect ions 2.2 and 2.3 and s ubject t o Sect ion 2.1(e), each is s ued and out s t anding s har e of Comp an y Pr ef er r ed St ock is s ued and out s t anding imme diat el y pr ior t o t he Ef f ect ive Time s hal l be conver t ed int o and exc h an ge d s ol el y f or t he Pr o Rat a Numb e r of s har es of Par ent Commo n S t o c k (e) Es cr ow Shar es. Not wit hs t anding t he f or egoing, Par ent s hal l depos it int o t he Es cr ow (as def ined bel ow) 30% of t he aggr egat e numb e r of s har es of Par ent Commo n St ock ot her wis e payabl e pur s uant t o Sect ion 2.1(c) and Sect ion 2.1(d) her eof (t he Escrow Shares ), which Es cr ow Shar es s hal l s imu l t an e ou s l y wit h t he Cl os ing wit hout any f ur t her act ion by any P e r s on, become s ubject t o t he t er ms and condit ions of, t he es cr ow (t he Escrow ) es t abl is hed pur s uant t o an es cr ow agr eeme n t amo n g Par ent, Sub, and t he Es cr ow Age n t s ubs t ant ial l y in t he f or m of Exh ibit B (t he Escrow Agreement ). Th e Es cr ow Shar es s hal l be al l ocat ed amo n g t he hol der s of

4 Comp an y Secur it ies (ot her t han Dis s ent ing Shar es ) on a pr o r at a bas is bas ed upon t he aggr egat e numb e r of s har es of Par ent Commo n St ock each s uch hol der is ent it l ed t o r eceive under Sect ions 2.1(c) and 2.1(d). (f ) Equit abl e Adj u s t me n t s. Not wit hs t anding t he f or egoing, t he numb e r o f s har es of Par ent Commo n St ock t o be is s ued pur s uant t o Sect ions 2.1(c) and 2.1(d) of t his Agr e e me n t (and t he numb e r of Es cr ow Shar es ) s hal l be equit abl y adjus t ed t o t he ext e n t t hat s uch adjus t me n t is neces s ar y t o pr es er ve t he economic val ue of s uch s har es as det er min e d by an independent account ing f ir m s el ect ed by Par ent in t he even t of a change in t he numb e r of out s t anding s har es of Par ent s capit al s t ock r es ul t ing f r om a s t ock dividend, s t ock s pl it, r ever s e s t ock s pl it, s har e comb inat ion, r ecapit al izat ion, me r ge r, cons ol idat ion, acquis it ion of pr oper t y or s har es, as s et s pinof f, s pl it -of f, r eor ganizat ion, s t ock r ight s of f er ing, l iquidat ion or s imil ar even t, of or by Par ent bet ween t he dat e her eof and t he dat e s uch s har es ar e dis t r ibut ed. (g) Pr o Rat a Numb e r. For t he pur pos es of t his Agr e e me n t, t he t er m Pro Rata Number s hal l me an a numb e r equal t o t he quot ient of (x) 3,500,000 min u s t he numb e r of s har es of Par ent Commo n St ock is s ued t o t he Financial Ad vis er in accor dance wit h Sect ion 6.8 her eof divided by (y) t he aggr egat e numb e r of out s t anding s har es of Comp an y Pr ef er r ed St ock and Comp an y Commo n St ock pl us t he aggr egat e numb e r of s har es of Comp an y Commo n S t o c k is s uabl e upon exe r c is e of t he Opt ions (whet her ves t ed or unves t ed). (h) De f init ion of Me r ge r Con s ider at ion. Th e s har es of Par ent Commo n S t o c k (incl uding, wit hout l imit at ion, t he Es cr ow Shar es ) t o be r eceived pu r s u an t t o Sect ions 2.1(c) and t his 2.1(d) upon t he conver s ion of t he Comp an y Secur it ies s hal l be r ef er r ed t o as t he Merger Consideration. S ECTION 2.2. Dis s en t er s Right s. Th e Hol der s of Comp an y Secur it ies as t o which dis s ent er s r ight s s hal l have been dul y deman d e d under appl icabl e l aw ( Dissenting Shares ), if any, s hal l be ent it l ed t o payme n t by t he Sur vivin g Cor por at ion onl y of t he f air val ue of s uch s har es pl us accr ued int er es t t o t he ext e n t per mit t e d by and in accor dance wit h t he pr ovis ions of appl icabl e l aw; pr ovided, however, t hat (i) if any hol der of Dis s ent ing Shar es s hal l, under t he cir cums t an c e s per mit t e d by appl icabl e l aw, s ubs equent l y del iver a wr it t en wit hdr awal of s uch hol der s deman d or (ii) if any hol der f ail s t o es t abl is h s uch hol der s ent it l eme n t t o deman d or r eceive payme n t as pr ovided under appl icabl e l aw, s uch hol der or hol der s (as t he cas e may be) s hal l f or f eit s uch r ight t o payme n t f or s uch Comp an y S e c u r it ies and s uch s t ock s hal l t her eupon be deeme d t o have been conver t ed int o Par ent Commo n St ock as of t he Ef f ect ive Dat e in accor dance wit h Sect ion 2.1 her eof (incl uding, wit hout l imit at ion, t hat 30% of s uch s har es of Par ent Commo n St ock s hal l cons t it ut e addit ional Es cr ow Shar es s ubject t o t he t er ms of t he Es cr ow in accor dance wit h Sect ion 2.1(e)). SECTION 2.3. No Fr act ional Shar es. No cer t if icat es r epr es ent ing f r act ional s har es of Par ent Commo n St ock s hal l be is s ued upon t he s ur r ender f or exc h an ge of cer t if icat es f or me r l y r epr es ent ing Comp an y S e c u r it ies or depos it ed int o t he Es cr ow pur s uant t o t his Ar t icl e II. In l ieu of any s uch f r act ional s har es, t he r ecipient wil l be paid cas h or cas h wil l

5 be depos it ed int o t he Es cr ow in an amo u n t equal t o s uch f r act ion mu l t ipl ied by t he aver age cl os ing pr ice of Par ent Commo n St ock f or t he t en cons ecut ive t r ading days imme diat el y pr eceding t he s econd bus ines s day pr ior t o t he Ef f ect ive Time as r epor t ed on t he pr incipal nat ional s t ock exc h an ge or aut omat e d quot at ion s ys t e m of a nat ional s ecur it ies as s ociat ion on which Par ent Commo n St ock is t hen l is t ed or qual if ied f or t r ading, or if t her e Par ent Commo n St ock is not t hen s o l is t ed, as r epor t ed on t he Nat ional As s oc iat ion of Secur it ies Deal er s el ect r onic bul l et in boar d. SECTION 2.4. As s u mp t ion of Opt ions. Th e Comp an y s obl igat ions wit h r es pect t o each out s t anding opt ion, as s et f or t h on Schedul e 2.4 her et o, t o pur chas e s har es of Comp an y Commo n St ock, whet her ves t ed or unves t ed (t he O ptions ), s hal l, by vir t ue of t his Agr e e me n t, and wit hout f ur t her act ion of t he Comp an y, t he Par ent or t he hol der s of any Opt ion, be as s ume d b y Par ent under it s Ame n de d and Res t at ed 1993 St ock Opt ion Pl an (as ame n d e d, t he Parent Stock O ption Plan ). Unl es s ot her wis e el ect ed by Par ent pr ior t o t he Ef f ect ive Time, Par ent s hal l make s uch as s ump t ion in s uch man n e r t hat (i) Par ent is a cor por at ion as s umin g a s t ock opt ion in a t r ans act ion t o which Sect ion 424(a) appl ies wit hin t he me an ing of Sect ion 424 of t he Code or (ii) t o t he ext e n t t hat Sect ion 424 of t he Code does not appl y t o s uch Opt ion, Par ent woul d be s uch a cor por at ion wer e Sect ion 424 of t he Code appl icabl e t o s uch Opt ion. Each Opt ion s o as s ume d by Par ent under t his Agr e e me n t s hal l cont inue t o have, and be s ubject t o, s imil ar t e r ms and condit ions s et f or t h t her ein imme diat el y pr ior t o t he Ef f ect ive Time, exc e pt t hat (i) s uch Opt ion s hal l be gover n ed by t he Par ent St ock Opt ion Pl an, (ii) s uch Opt ion wil l be exe r c is abl e f or t hat numb e r of s har es of Par ent Commo n St ock equal t o t he pr oduct of t he numb e r of s har es of Comp an y Commo n St ock t hat wer e pur chas abl e under s uch Opt ion imme diat el y pr ior t o t he Ef f ect ive Time mu l t ipl ied by t he Pr o Rat a Numb e r, and (iii) t he per s har e exe r c is e pr ice f or t he s har es of Par ent Commo n St ock is s uabl e upon exe r c is e of s uch as s ume d Opt ion wil l be equal t o t he exe r c is e pr ice per s har e of Comp an y Commo n St ock at which s uch Opt ion was exe r c is abl e imme diat el y pr ior t o t he Ef f ect ive Time mu l t ipl ied by t he quot ient det er min e d by dividing t he f air mar ke t val ue of t he Par ent Commo n S t o c k by t he f air mar ke t val ue of t he Comp an y Commo n St ock, and r ounding t he r es ul t ing exe r c is e pr ice up t o t he near es t whol e cent. For pur pos es of t his Sect ion 2.4, t he f air mar ke t val ue of a s har e of Par ent Commo n St ock is bas ed on t he cl os ing pr ice per s har e on t he t r ading day imme diat el y f ol l owing t he dat e on which t he Ef f ect ive Time occur s, as r epor t ed on t he Nat ional As s oc iat ion of Secur it ies Deal er s el ect r onic bul l et in boar d (or in t he Wal l St r eet Jour nal if s uch cl os ing pr ice is r epor t ed t her ein), and t he f air mar ke t val ue of t he Comp an y Commo n St ock is bas ed on t he f air mar k e t val ue of t he numb e r of s har es of Par ent Commo n St ock is s uabl e in exc h an ge f or each s uch s har e of Comp an y Commo n St ock pur s uant t o Sect ion 2.1 her eof (incl uding any Es cr ow Shar es is s ued on account t her eof ). As s oon as r eas onabl y pr act icabl e af t er t he Ef f ect ive Time, t he Comp an y wil l del iver t o Opt ion hol der s appr opr iat e not ices s et t ing f or t h s uch hol der s r ight s pur s uant t o t he Par ent St ock Opt ion Pl an and conf ir min g t hat t he Opt ions have been as s ume d by Par ent under t he Par ent St ock Opt ion Pl an in accor dance wit h t he t er ms and condit ions of t his Sect ion 2.4. Each of t he Pr incipal St ockhol der s who hol d Opt ions her eby waives any accel er at ion of t he ves t ing of s uch Opt ions which woul d ot her wis e be r equir ed in