Exhibit 3
AGREEMENT AND PLAN OF MERGER AND REORGANIZATION
BY AND AMONG
XXXXXXXXX ENTERPRISES, INC., a Florida corporation,
RANGER INDUSTRIES, INC., a Connecticut corporation
AND
BEI ACQUISITION CORPORATION, a Florida corporation
DATED: DECEMBER 29, 2000
TABLE OF CONTENTS
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RECITALS.......................................................................1
1 DEFINITIONS...........................................................1
1.1 "Affiliate..........................................1
1.4 "Best Efforts"......................................2
1.5 "Breach"............................................2
1.6 "Xxxxxxxxx Common Stock"............................2
1.7 "Xxxxxxxxx Disclosure Schedule".....................2
1.8 "Xxxxxxxxx Material Adverse Effect".................2
1.9 "Closing"...........................................2
1.10 "Closing Date"......................................2
1.11 "Code"..............................................2
1.13 "Consent"...........................................2
1.14 "Contemplated Transactions".........................3
1.15 "Contract"..........................................3
1.16 "Damages"...........................................3
1.18 "Effective Time"....................................3
1.19 "Encumbrance".......................................3
1.20 "Environmental Requirements"........................3
1.21 "ERISA".............................................3
1.22 "ERISA Affiliate"...................................3
1.23 "Exchange Act"......................................4
1.24 "Exchange Act Reports"..............................4
1.25 "Facilities"........................................4
1.26 "GAAP" .............................................4
1.27 "Governmental Authorization" .......................4
1.28 "Governmental Body" ................................4
1.29 "HSR Act" ..........................................4
1.30 "Intangible"........................................4
1.31 "IRS" ..............................................5
1.32 "Knowledge" ........................................5
1.33 "Legal Requirement" ................................5
1.34 "Order" ............................................6
1.35 "Ordinary Course of Business" ......................6
1.36 "Organizational Documents" .........................6
1.38 "Person" ...........................................6
"Proceeding" .........................................................6
1.40 "Ranger Common Stock"...............................6
1.41 "Ranger Disclosure Schedule" .......................6
1.42 "Ranger Material Adverse Effect" ...................6
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1.44 "Related Person" ...................................6
1.45 "Representative" ...................................7
1.46 "Securities Act" ...................................7
1.47 "Software" .........................................8
1.48 "Subsidiary" .......................................8
1.49 "Surviving Corporation".............................8
1.50 "Tax Returns" ......................................8
1.51 "Taxes" ............................................8
1.52 "Tender Offer"......................................8
1.54 "Threatened" .......................................8
2 MERGER................................................................8
2.1 The Merger..........................................8
2.2 Effective Time; Closing.............................9
2.3 Effect of the Merger................................9
2.4 Articles of Incorporation; Bylaws; Directors
and Officers........................................9
2.5 Effect on Capital Stock.............................9
(a) Conversion of Xxxxxxxxx Common Stock.......9
(b) Cancellation of Xxxxxxxxx-Owned Stock.....10
(c) Fractional Shares.........................10
(d) Dissenters Rights.........................10
2.6 Exchange of Certificates...........................11
(a) Ranger to Provide Common Stock............11
(b) Exchange Procedures.......................11
(c) Distributions With Respect to
Unexchanged Shares........................11
(d) Transfers of Ownership....................11
(e) Required Withholding......................12
(f) No Liability..............................12
2.7 Lost, Stolen or Destroyed Certificates.............12
2.8 No Further Ownership Rights in Xxxxxxxxx
Common Stock.......................................12
2.9 Additional Actions.................................13
2.10 Tax and Accounting Consequences....................13
3.1 Organization, Good Standing, Corporate Power.......13
3.2 Authority; No Conflict.............................13
3.3 Capitalization.....................................15
3.4 Books and Records..................................16
3.5 Real Property Interests............................16
3.6 Condition and Sufficiency of Assets................16
3.7 No Undisclosed Liabilities.........................16
3.8 Taxes..............................................16
3.9 No Xxxxxxxxx Material Adverse Effect...............17
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3.10 Non-Applicability of the HSR Act...................17
3.11 Employee Benefits Matters..........................18
3.12 Compliance With Legal Requirements; Governmental
Authorizations.....................................18
3.13 Legal Proceedings; Orders..........................18
3.14 Absence of Certain Changes and Events..............18
3.15 Contracts; No Defaults.............................19
3.16 Insurance..........................................19
3.17 Environmental Matters..............................19
3.18 Employees..........................................19
3.19 Intellectual Property Rights of Xxxxxxxxx..........19
3.20 Relationships With Related Persons.................19
3.21 Brokers or Finders.................................19
3.22 Disclosure Documents...............................19
3.23 Disclosure.........................................20
3.24 Vote Required......................................20
4 REPRESENTATIONS, WARRANTIES AND XXXXXXXXXXX OF BEI ACQUISITION
AND RANGER....................................................................20
4.2 Authority; No Conflict.............................20
4.3 Capitalization of Ranger and BEI Acquisition.......21
4.4 Books and Records..................................21
4.5 Real Property Interests............................21
4.6 Taxes..............................................21
4.7 No Ranger Material Adverse Effect..................22
4.8 Employee Benefits Matters..........................22
4.9 Compliance With Legal Requirements; Governmental
Authorizations.....................................22
4.10 Legal Proceedings; Orders..........................23
4.11 Absence of Certain Changes and Events..............23
4.12 Contracts; No Defaults.............................23
4.13 Insurance..........................................23
4.14 Environmental Matters..............................23
4.15 Employees..........................................23
4.16 Government Contracts...............................23
4.17 Intellectual Property Rights of Ranger.............24
4.18 Brokers or Finders.................................24
4.19 Disclosure Documents...............................24
4.20 Disclosure.........................................24
4.21 No Shareholder Vote Required.......................24
5 CERTAIN AGREEMENTS OF THE PARTIES....................................24
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5.1 No Solicitation....................................24
5.2 Public Disclosure..................................27
5.3 Reasonable Efforts; Notification...................27
5.4 Third Party Consents...............................28
5.5 Indemnification....................................28
6 ADDITIONAL COVENANTS OF THE PARTIES..................................29
6.1 Mutual Covenants...................................29
(a) Tax-Deferred Treatment....................29
(b) Confidentiality; Access to Information....29
(c) Shareholder Approval......................31
(d) Tender Offer..............................31
(e) ..........................................32
6.2 Covenants of Xxxxxxxxx.............................32
6.3 Covenants of Ranger................................32
6.4 Closing and Post-Closing Covenants.................33
(a) Resignation of Directors..................33
(b) Resignation of Officers...................33
(c) Consulting Agreement......................33
(d) Limitation on Related Party Transactions..33
7 CONDITIONS...........................................................34
7.1 Mutual Conditions..................................34
7.2 Conditions to Obligations of BEI Acquisition
and Ranger.........................................34
7.3 Conditions to Obligations of Xxxxxxxxx.............35
8 TERMINATION..........................................................37
8.1 Termination........................................37
8.2 Notice of Termination; Effect of Termination.......38
8.3 Fees and Expenses..................................38
8.4 Amendment..........................................38
8.5 Extension; Waiver..................................38
9 MISCELLANEOUS........................................................39
9.1 Survival of Representations and Warranties.........39
9.2 Notices............................................39
9.3 Further Assurances.................................40
9.4 Waiver.............................................40
9.5 Entire Agreement and Modification..................40
9.6 Assignments, Successors and No Third-Party Rights..40
9.7 Section Headings, Construction.....................41
9.8 Time of Essence....................................41
9.9 Governing Law......................................41
9.10 Counterparts.......................................41
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SIGNATURES....................................................................42
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AGREEMENT AND PLAN OF MERGER AND REORGANIZATION
THIS AGREEMENT AND PLAN OF MERGER AND REORGANIZATION (this "Agreement"), is
made and entered into as of this 29th day of December, 2000, by and among Ranger
Industries, Inc., a Connecticut corporation ("Ranger"), BEI Acquisition
Corporation, a Florida corporation and a wholly-owned subsidiary of Ranger ("BEI
Acquisition") and Xxxxxxxxx Enterprises, Inc., a Florida corporation
("Xxxxxxxxx").
RECITALS:
1. Upon the terms and subject to the conditions of this Agreement and in
accordance with the Florida Business Corporation Act ("Florida Law"),
Ranger, BEI Acquisition and Xxxxxxxxx intend to enter into a transaction
pursuant to which BEI Acquisition will be merged with and into Xxxxxxxxx.
2. The Board of Directors of Xxxxxxxxx (i) has determined that the Merger (as
defined in Section 2.1) is consistent with and in furtherance of the
long-term business strategy of Xxxxxxxxx and fair to, and in the best
interests of, Xxxxxxxxx and its shareholders; (ii) has approved and
declared advisable this Agreement, and has approved the Merger and the
other Contemplated Transactions; and (iii) has determined to recommend that
the shareholders of Xxxxxxxxx adopt and approve this Agreement and approve
the Merger.
3. The Board of Directors of Ranger (i) has determined that the Merger is
consistent with and in furtherance of the long-term business strategy of
Ranger and is fair to, and in the best interests of, Ranger and its
stockholders; (ii) has approved this Agreement, the Merger and the other
Contemplated Transactions; and (iii) has approved the issuance of shares of
common stock, $.01 par value per share, of Ranger ("Ranger Common Stock")
pursuant to the Merger.
4. The parties intend, by executing this Agreement, to adopt a plan of
reorganization within the meaning of Section 368 of the Internal Revenue
Code of 1986, as amended (the "Code").
NOW, THEREFORE, in consideration of the covenants, promises and
representations set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
1 DEFINITIONS. The following terms shall have the following meanings:
1.1 "Affiliate" is used in this Agreement to indicate a relationship with
one (1) or more persons and when used shall mean any corporation or organization
of which such person is an executive officer, director or partner or is directly
or indirectly the beneficial owner of ten percent (10%) or more of any class of
equity securities or financial interest therein; any trust or
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other estate in which such person has a beneficial interest or as to which such
person serves as trustee or in any similar fiduciary capacity; any relative or
spouse of such person, or any relative of such spouse (such relative being
related to the person in question within the second degree); or any person that
directly, or indirectly through one or more intermediaries, controls or is
controlled by, or is under common control with, the person specified.
1.2 "Acquisition Proposal" is defined in this Agreement in Section 5.1.
1.3 "Acquisition Transaction" is defined in this Agreement in Section 5.1.
1.4 "Best Efforts" means the efforts that a prudent Person desirous of
achieving a result would reasonably use in similar circumstances to ensure that
such result is achieved as expeditiously as possible; provided, however, that an
obligation to use Best Efforts under this Agreement does not require the Person
subject to that obligation to take actions that would result in a materially
adverse change in the benefits of this Agreement and the Contemplated
Transactions to such Person.
1.5 "Breach" means a "breach" of a representation, warranty, covenant,
obligation, or other provision of this Agreement and will be deemed to have
occurred if there is or has been any inaccuracy in or any failure to perform or
comply with, such representation, warranty, covenant, obligation, or other
provision.
1.6 "Xxxxxxxxx Common Stock" means the authorized shares of common stock of
Xxxxxxxxx.
1.7 "Xxxxxxxxx Disclosure Schedule" is defined in this Agreement in Section
3.
1.8 "Xxxxxxxxx Material Adverse Effect" means a material adverse effect on
the financial condition, results of operation, business or properties of
Xxxxxxxxx and its Subsidiaries taken as a whole.
1.9 "Closing" is defined in this Agreement in Section 2.2.
1.10 "Closing Date" is defined in this Agreement in Section 2.2.
1.11 "Code" means the Internal Revenue Code of 1986, as amended, including
regulations or other authoritative notices or rulings issued by the Internal
Revenue Service thereunder.
1.12 "Confidential Material" is defined in this Agreement in Section 6.1.
1.13 "Consent" means any approval, consent, ratification, waiver, or other
authorization (including any Governmental Authorization).
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1.14 "Contemplated Transactions" means all of the Contemplated
Transactions, including, without limitation:
(a) The Merger;
(b) The performance by BEI Acquisition, Ranger and Xxxxxxxxx of their
respective covenants and obligations under this Agreement; and
(c) The Tender Offer and the transactions contemplated by the Tender Offer
Statement.
1.15 "Contract" means any agreement, contract, subcontract, lease, binding
understanding, instrument, note, option, warranty, purchase order, license,
sublicense, insurance policy, benefit plan, commitment, obligation, promise or
undertaking (whether written or oral and whether express or implied) that is
legally binding.
1.16 "Damages" means any loss, liability, claim, damages, expense
(including, without limitation, costs of investigation and defense and
reasonable attorneys' fees) or diminution of value, whether or not involving a
third party.
1.17 "Delivering Company" is defined in this Agreement in Section 6.1.
1.18 "Effective Time" is defined in this Agreement in Section 2.2.
1.19 "Encumbrance" means any security interest, mortgage, lien, charge,
adverse claim or restriction of any kind, including, but not limited to, any
restriction on the use, voting, transfer, receipt of income or other exercise of
any attributes of ownership.
1.20 "Environmental Requirements" means federal, state and local laws
relating to pollution or protection of the environment, including laws or
provisions relating to emissions, discharges, releases or threatened releases of
pollutants, contaminants, or hazardous or toxic materials, substances, or wastes
into air, surface water, groundwater, or land, or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage, disposal,
transport, or handling of pollutants, contaminants or hazardous or toxic
materials, substances, or wastes.
1.21 "ERISA" means the Employee Retirement Income Security Act of 1974 or
any successor law, and regulations and rules issued pursuant to that Act or any
successor law.
1.22 "ERISA Affiliate" means any Person which would be required to be
aggregated with Xxxxxxxxx under Code ss. 414(b), (c), (m) and/or (o) and/or
under ERISA ss. 4001(a)(14) at any time during the period beginning seven (7)
years prior to the Closing Date and ending immediately prior to the Closing.
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1.23 "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder.
1.24 "Exchange Act Reports" shall mean all reports and other documents
which Ranger has filed with the Securities and Exchange Commission pursuant to
Sections 13(a) or 14 of the Exchange Act.
1.25 "Facilities" means any real property, leaseholds, or other interests
currently or formerly owned or operated by Xxxxxxxxx or any Subsidiary and any
buildings, plants, structures, or equipment (including motor vehicles, tank
cars, and rolling stock) currently or formerly owned or operated by Xxxxxxxxx or
any Subsidiary.
1.26 "GAAP" means generally accepted United States accounting principles,
applied on a basis consistent with the basis on which the financial statements
referred to in Section 3.4 were prepared.
1.27 "Governmental Authorization" means any approval, consent, license,
permit, waiver, or other authorization issued, granted, given, or otherwise made
available by or under the authority of any Governmental Body or pursuant to any
Legal Requirement.
1.28 "Governmental Body" means any national, state or municipal or other
local government, state or municipal or other local governmental body, any
subdivision, agency, commission or authority thereof, or any quasi-governmental
or private body exercising any regulatory or taxing authority thereunder.
1.29 "HSR Act" means the Xxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of
1976, as amended, 15 U.S.C.ss.18a, et seq.
1.30 "Intangible" means:
(a) Patents, patent applications, patent disclosures, all re-issues,
divisions, continuations, renewals, extensions and continuation-in-parts
thereof and improvements thereto;
(b) Trademarks, service marks, trade dress, logos, trade names, and
corporate names and registrations and applications for registration thereof
and all goodwill associated therewith;
(c) Copyrights and registrations and applications for registration thereof;
(d) Maskworks and registrations and applications for registration thereof;
(e) All right, title and interest in all computer software, data and
documentation (including, without limitation, modifications, enhancements,
revisions or versions of orto any of the foregoing and prior releases of
any of the foregoing applicable to any operating environment);
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(f) Trade secrets and confidential business information (including, without
limitation, ideas, formulas, compositions, inventions, whether patentable
or unpatentable and whether or not reduced to practice, know-how,
manufacturing and production processes and techniques, research and
development information, drawings, flow charts, processes ideas,
specifications, designs, plans, proposals, technical data, copyrightable
works, financial, marketing, and business data, pricing and cost
information, business and marketing plans, and customer and supplier lists
and information);
(g) Other proprietary rights;
(h) All rights necessary to prevent claims of invasion of privacy, right of
publicity, defamation, infringement of moral rights, or any other causes of
action arising out of the use, adaptation, modification, reproduction,
distribution, sale, or exhibition of the Software;
(i) All income, royalties, damages and payments due at Closing or
thereafter with respect to the Owned Software, Customer Software, Other
Software, or other Intangibles and all other rights thereunder including,
without limitation, damages and payments for past, present or future
infringements or misappropriations thereof, the right to xxx and recover
for past, present or future infringements or misappropriations thereof;
(j) All rights to use all of the foregoing forever; and
(k) All other rights in, to, and under the foregoing in all countries.
1.31 "IRS" means the United States Internal Revenue Service or any
successor agency, and, to the extent relevant, the United States Department of
the Treasury.
1.32 "Knowledge" means an individual will be deemed to have "Knowledge" of
a particular fact or other matter if such individual is actually aware of such
fact or other matter, or a prudent individual given his position with Xxxxxxxxx
could be expected to discover or otherwise become aware of such fact or other
matter. A Person (other than an individual) will be deemed to have "Knowledge"
of a particular fact or other matter if any individual who is serving or has
served within the last three (3) years as a director, executive, officer,
partner, executor or trustee of such Person (or in any similar capacity) has, or
at any time had, Knowledge of such fact or other matter.
1.33 "Legal Requirement" means any federal, state, local, municipal or
other administrative order, constitution, law, ordinance, principle of common
law, regulation, statute, or treaty.
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1.34 "Order" means any award, decision, injunction, judgment, order, ruling
or verdict entered, issued, made or rendered by any court, administrative agency
or other Governmental Body or by any arbitrator.
1.35 "Ordinary Course of Business" means an action taken by a Person will
be deemed to have been taken in the "Ordinary Course of Business" only if such
action is consistent with the past practices of such Person and is taken in the
ordinary course of the normal day-to-day operations of such Person.
1.36 "Organizational Documents" means (i) the Articles of Incorporation and
the Bylaws of a corporation; (ii) any charter or similar document adopted or
filed in connection with the creation, formation, or organization of a Person;
and (iii) any amendment to any of the foregoing.
1.37 "Other Filings" is defined in this Agreement in Section 6.1.
1.38 "Person" means any individual, corporation (including any non-profit
corporation), general or limited partnership, limited liability Xxxxxxxxx, joint
venture, estate, trust, association, organization, labor union, or other entity
or Governmental Body.
1.39 "Proceeding" means any action, arbitration, audit, hearing,
investigation, litigation, or suit (whether civil, criminal, administrative,
investigative, or informal) commenced, brought, conducted, or heard by or
before, or otherwise involving, any Governmental Body or arbitrator.
1.40 "Ranger Common Stock" means the authorized shares of common stock of
Ranger.
1.41 "Ranger Disclosure Schedule" is defined in this Agreement in Section
4.
1.42 "Ranger Material Adverse Effect" means a material adverse effect on
the financial condition, results of operation, business or properties of Ranger
and all of its Subsidiaries taken as a whole.
1.43 "Receiving Company" is defined in this Agreement in Section 6.1.
1.44 "Related Person" means
(a) with respect to a particular individual:
(i) each other member of such individual's Family;
(ii) any Person that is directly or indirectly controlled by such
individual or one (1) or more members of such individual's Family;
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(iii) any Person in which such individual or members of such individual's
Family hold (individually or in the aggregate) a Material Interest; and
(iv) any Person with respect to which such individual or one (1) or more
members of such individual's Family serves as a director, officer, partner,
executor, or trustee (or in a similar capacity).
(b) with respect to a specified Person other than an individual:
(i) any Person that directly or indirectly controls, is directly or
indirectly controlled by, or is directly or indirectly under common control
with such specified Person;
(ii) any Person that holds a Material Interest in such specified Person;
(iii) each Person that serves as a director, officer, partner, executor, or
trustee of such specified Person (or in a similar capacity);
(iv) any Person in which such specified Person holds a Material Interest;
(v) any Person with respect to which such specified Person serves as a
general partner or a trustee (or in a similar capacity); and
(vi) any Related Person of any individual described in clause (ii) or
(iii).
(c) for purposes of this definition,
(i) the "Family" of an individual includes (1) the individual's spouse and
(2) any other natural person who is related to the individual or the
individual's spouse within the second degree and
(ii) "Material Interest" means direct or indirect beneficial ownership (as
defined in Rule 13d-3 under the Securities Exchange Act of 1934) of voting
securities or other voting interests representing at least five percent
(5%) of the outstanding voting power of a Person or equity securities or
other equity interests representing at least five percent (5%) of the
outstanding equity securities or equity interests in a Person.
1.45 "Representative" means with respect to a particular Person, any
director, officer, employee, agent, consultant, advisor, or other representative
of such Person, including legal counsel, accountants, and financial advisors.
1.46 "Securities Act" means the Securities Act of 1933 or any successor
law, and regulations and rules issued pursuant to that Act or any successor law.
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1.47 "Software" means any computer program, operating system, applications
system, microcode, firmware or software of any nature, whether operational,
under development or inactive, including all object code, source code, technical
manuals, compilation procedures, execution procedures, flow charts, programmers
notes, user manuals and other documentation thereof, whether in machine-readable
form, programming language or any other language or symbols and whether stored,
encoded, recorded or written on disk, tape, film, memory device, paper or other
media of any nature.
1.48 "Subsidiary" shall mean any entity which is owned in whole or in part
by Ranger or Xxxxxxxxx, as the case may be.
1.49 "Surviving Corporation" is defined in this Agreement in Section 2.1.
1.50 "Tax Returns" means any return, report, information return or other
document (including any related or supporting information) filed or required to
be filed with any Governmental Body in connection with the determination,
assessment or collection of any Taxes or the administration of any laws,
regulations or administrative requirements relating to any Taxes.
1.51 "Taxes" means all taxes, charges, fees, levies, interest, penalties,
additions to tax or other assessments, including, but not limited to, income,
excise, property, sales, use, value added and franchise taxes and customs
duties, imposed by any Governmental Body and any payments with respect thereto
required under any tax-sharing agreement.
1.52 "Tender Offer" is defined in this Agreement in Section 6.1(d).
1.53 "Tender Offer Statement" is defined in this Agreement in Section
6.1(d).
1.54 "Threatened" means a claim, Proceeding, dispute, action, or other
matter will be deemed to have been "Threatened" if any demand or statement has
been made (orally or in writing) or any notice has been given (orally or in
writing), or any other event has occurred or any other circumstances exist, that
would lead a prudent Person to conclude that such a claim, Proceeding, dispute,
action or other matter is likely to be asserted, commenced, taken or otherwise
pursued in the future.
2 MERGER.
2.1 The Merger. At the Effective Time and subject to and upon the terms and
conditions of this Agreement, BEI Acquisition shall be merged with and into
Xxxxxxxxx (the "Merger"), the separate corporate existence of BEI Acquisition
shall cease and Xxxxxxxxx shall continue as the surviving corporation under the
corporate name it possesses immediately prior to the Effective Time. Xxxxxxxxx
as the surviving corporation after the Merger is sometimes hereinafter referred
to as the "Surviving Corporation."
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2.2 Effective Time; Closing. Subject to the provisions of this Agreement,
the parties hereto shall cause the Merger to be completed by filing Articles of
Merger with the Secretary of State of the State of Florida in accordance with
the relevant provisions of Florida Law (the "Articles of Merger") (the time of
such filing (or such later time as may be agreed in writing by Xxxxxxxxx and
Ranger and specified in the Articles of Merger) being the "Effective Time") as
soon as practicable on or after the Closing Date (as herein defined). The
closing of the Merger (the "Closing") shall take place at the offices of Paul,
Hastings, Xxxxxxxx & Xxxxxx LLP, 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, at a time
and date to be specified by the parties, which shall be no later than the second
(2nd) business day after the satisfaction or waiver of the conditions set forth
in Section 7, or at such other time, date and location as the parties hereto
agree in writing (the "Closing Date").
2.3 Effect of the Merger. At the Effective Time, the effect of the Merger
shall be as provided in this Agreement and the applicable provisions of Florida
Law. Without limiting the generality of the foregoing, and subject thereto, at
the Effective Time all the property, rights, privileges, powers and franchises
of Xxxxxxxxx and BEI Acquisition shall vest in the Surviving Corporation, and
all debts, liabilities and duties of Xxxxxxxxx and BEI Acquisition shall become
the debts, liabilities and duties of the Surviving Corporation.
2.4 Articles of Incorporation; Bylaws; Directors and Officers.
(a) At the Effective Time, the Articles of Incorporation of Xxxxxxxxx, as
in effect immediately prior to the Effective Time, shall be the Articles of
Incorporation of the Surviving Corporation and thereafter shall continue to
be its Articles of Incorporation (until amended as provided under Florida
Law).
(b) The Bylaws of Xxxxxxxxx, as in effect immediately prior to the
Effective Time, shall be the Bylaws of the Surviving Corporation and
thereafter shall continue to be its bylaws (until amended as provided
therein and under Florida Law).
(c) The initial directors and officers of the Surviving Corporation shall
be the directors and the officers of Xxxxxxxxx who are serving in such
capacities immediately prior to the Effective Time, and such directors and
officers shall continue to serve as the directors and officers of the
Surviving Corporation in accordance with the Bylaws of the Surviving
Corporation.
2.5 Effect on Capital Stock. Subject to the terms and conditions of this
Agreement, at the Effective Time, by virtue of the Merger and without any action
on the part of BEI Acquisition, Xxxxxxxxx or the holders of any of the following
securities, the following shall occur:
(a) Conversion of Xxxxxxxxx Common Stock. Ranger will issue 14,720,000
shares of Ranger Common Stock in exchange for 100% of the outstanding
shares of capital stock of Xxxxxxxxx (which consists solely of Xxxxxxxxx
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Common Stock). Therefore, each share of Xxxxxxxxx Common Stock issued and
outstanding immediately prior to the Effective Time, other than any shares
of Xxxxxxxxx Common Stock to be canceled pursuant to Section 2.5(b) will be
canceled and extinguished and automatically converted into the right to
receive one share of Ranger Common Stock, unless adjusted as provided for
herein ("Common Exchange Ratio").
(b) Cancellation of Xxxxxxxxx-Owned Stock. Each share of Xxxxxxxxx Common
Stock held by Xxxxxxxxx or any direct or indirect wholly-owned subsidiary
of Xxxxxxxxx immediately prior to the Effective Time shall be canceled and
extinguished without any conversion thereof.
(c) Fractional Shares. As of the Effective Time, all shares of Xxxxxxxxx
Common Stock in existence immediately prior to the Effective Time shall no
longer be outstanding and shall automatically be canceled and retired and
shall cease to exist, and each certificate previously representing any such
shares shall thereafter represent only the right to receive a certificate
representing a pro rata portion (rounded down to eliminate fractional
shares) of the shares of Ranger Common Stock into which Xxxxxxxxx Common
Stock was converted in the Merger.
(i) The holders of certificates previously evidencing shares of Xxxxxxxxx
Common Stock outstanding immediately prior to the Effective Time shall
cease to have any rights with respect to such shares of Xxxxxxxxx
Common Stock as of the Effective Time except as otherwise provided
herein or by law. The holders of shares of Xxxxxxxxx Common Stock not
represented by certificates will automatically, at the Effective Time,
be deemed to hold and be entitled to receive certificates representing
the appropriate number of whole shares of Ranger Common Stock.
(ii) Certificates representing shares of Xxxxxxxxx Common Stock shall be
exchanged for certificates representing whole shares of Ranger Common
Stock issued in consideration therefor upon the surrender of such
certificates in accordance with the provisions of Section 2.6, without
interest.
(iii) No fractional shares of Ranger Common Stock will be issued in
connection with the Merger and any holder of shares of Xxxxxxxxx Stock
who would otherwise have received a fractional share of Ranger Common
Stock shall not receive any share or fraction of a share of Ranger
Common Stock in respect of such fractional share.
(d) Dissenters Rights. It is a condition of the completion of the
Contemplated Transactions that no person holding shares of Xxxxxxxxx Common
Stock or Ranger Common Stock will exercise their rights to dissent from the
transaction under applicable law.
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2.6 Exchange of Certificates.
(a) Ranger to Provide Common Stock. Promptly after the Effective Time,
Ranger shall supply, or shall cause to be supplied, to the holders of
Xxxxxxxxx Common Stock for exchange in accordance with this Section 2.6,
certificates evidencing Ranger Common Stock issuable pursuant to Section
2.5 in exchange for outstanding shares of Xxxxxxxxx Common Stock.
(b) Exchange Procedures. As soon as reasonably practicable after the
Effective Time, Ranger shall:
(i) issue certificates representing the appropriate number of shares of
Ranger Common Stock to persons shown on the records of Xxxxxxxxx as
holding shares of Xxxxxxxxx Common Stock not represented by
certificates (uncertificated shares) without further action by such
holders; and
(ii) provide for procedures allowing the holders of Xxxxxxxxx Common Stock
who hold certificates representing shares of Xxxxxxxxx Common Stock at
the Effective Time to receive certificates for shares of Ranger Common
Stock upon surrender of such certificates of Xxxxxxxxx Common Stock in
accordance with such procedures.
(c) Distributions With Respect to Unexchanged Shares. No dividends or other
distributions declared or made after the Effective Time, with respect to
Ranger Common Stock with a record date after the Effective Time, shall be
paid to the holder of a certificate representing shares of Xxxxxxxxx Common
Stock which has not been surrendered until the holder of such certificate
shall surrender such certificate or comply with the lost instrument
procedure set forth in Section 2.7. Subject to applicable law, following
surrender of any such certificate, there shall be paid to the record holder
of the certificates representing whole shares of Ranger Common Stock issued
in exchange therefore, without interest, at the time of such surrender, the
amount of dividends or other distributions with a record date after the
Effective Time theretofore paid with respect to such whole shares of Ranger
Common Stock.
(d) Transfers of Ownership. If any certificate for shares of Ranger Common
Stock is to be issued in a name other than that in which the certificate
surrendered in exchange therefore is registered, it will be a condition of
the issuance thereof that the certificate so surrendered will be properly
endorsed and otherwise in proper form for transfer and that the person
requesting such exchange will have paid to Ranger or any person designated
by it any transfer or other taxes required by reason of the issuance of a
certificate for shares of Ranger Common Stock in any name other than that
of the registered holder of the certificate surrendered, or established to
the satisfaction of Ranger or any agent designated by it that such tax has
been paid or is not payable.
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(e) Required Withholding. Each of Ranger and the Surviving Corporation
shall be entitled to deduct and withhold from any consideration payable or
otherwise deliverable pursuant to this Agreement to any holder or former
holder of Xxxxxxxxx Common Stock such amounts as may be required to be
deducted or withheld therefrom under the Code or under any provision of
state, local or foreign tax law or under any other applicable legal
requirement. To the extent such amounts are so deducted or withheld, such
amounts shall be treated for all purposes under this Agreement as having
been paid to the person to whom such amounts would otherwise have been
paid.
(f) No Liability. Notwithstanding anything to the contrary in this Section
2.6, neither Ranger, BEI Acquisition, Xxxxxxxxx nor the Surviving
Corporation shall be liable to any holder of shares of Xxxxxxxxx Common
Stock, or Ranger Common Stock for any amount properly paid to a public
official pursuant to any applicable abandoned property, escheat or similar
law.
(g) Securities Act Restrictions. Shares of Ranger Common Stock issued
pursuant to Section 2.5 shall not be transferable except in a transaction
not requiring registration under the Securities Act. Ranger shall have the
right to refuse to recognize any transfer of such shares unless it obtains
an opinion in form and substance reasonably acceptable to Ranger, from
counsel reasonable acceptable to Ranger, that the transfer does not involve
a "sale" as defined in Section 5 of the Securities Act or that the transfer
is exempt from registration under the Securities Act. Certificates
evidencing shares of Ranger Common Stock issued pursuant to Section 2.5
shall bear the following legend:
"The shares evidenced by this certificate are "restricted shares" as
defined in Rule 144 under the Securities Act of 1933 and may not be
transferred except in compliance with Section 2.6(g) of the Agreement
and Plan of Merger and Reorganization, dated as of December 29, 2000,
by and among Xxxxxxxxx Enterprises, Inc., Ranger Industries, Inc. and
BEI Acquisition Corporation, a copy of which may be obtained from
Ranger Industries, Inc."
2.7 Lost, Stolen or Destroyed Certificates. In the event any Certificates
shall have been lost, stolen or destroyed, Ranger shall issue (or cause to be
issued) in exchange for such lost, stolen or destroyed Certificates, upon the
making of an affidavit of that fact by the holder thereof, such shares of Ranger
Common Stock as may be required pursuant to Section 2.5; provided, however, that
Ranger may, in its sole discretion and as a condition precedent to the issuance
thereof, require the owner of such lost, stolen or destroyed certificates to
deliver a bond in such sum as it may reasonably direct as indemnity against any
claim that may be made against Ranger with respect to the certificates alleged
to have been lost, stolen or destroyed.
2.8 No Further Ownership Rights in Xxxxxxxxx Common Stock. All shares of
Ranger Common Stock issued upon the surrender for exchange of shares of
Xxxxxxxxx Common Stock in accordance with the terms hereof shall be deemed to
have been issued in full satisfaction of all rights pertaining to such shares
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of Xxxxxxxxx Common Stock, and there shall be no further registration of
transfers on the records of the Surviving Corporation of shares of Xxxxxxxxx
Common Stock which were outstanding immediately prior to the Effective Time. If,
after the Effective Time, certificates are presented to the Surviving
Corporation for any reason, they shall be cancelled and exchanged as provided in
this Section 2.
2.9 Additional Actions. If, at any time after the Effective Time, the
Surviving Corporation or Ranger shall consider or be advised that any deeds,
bills of sale, assignments, assurances or any other actions or things are
necessary or desirable to vest, perfect or confirm of record or otherwise in the
Surviving Corporation its right, title or interest in, to or under any of the
rights, properties or assets of Xxxxxxxxx or otherwise to carry out the purposes
of this Agreement, the officers and directors of the Surviving Corporation shall
be authorized to execute and deliver, in the name and on behalf of Xxxxxxxxx,
all such deeds, bills of sale, assignments and assurances and to take and do, in
the name and on behalf of Xxxxxxxxx, all such other actions and things as may be
necessary or desirable to vest, perfect or confirm any and all right, title and
interest in, to and under such rights, properties or assets in the Surviving
Corporation or otherwise to carry out the purposes of this Agreement.
2.10 Tax and Accounting Consequences. It is intended by the parties hereto
that the Merger shall constitute a reorganization within the meaning of Section
368 of the Code. The parties hereto adopt this Agreement as a "plan of
reorganization" within the meaning of Sections 1.368-2(g) and 1.368-3(a) of the
United States Income Tax Regulations.
3 REPRESENTATIONS AND WARRANTIES OF XXXXXXXXX As of the date hereof and as of
the Closing Date, Xxxxxxxxx represents and warrants to BEI Acquisition and
Ranger, subject to such exceptions as are specifically disclosed in writing in
the disclosure schedule and referencing a specific representation supplied by
Xxxxxxxxx to the BEI Acquisition and Ranger (the "Xxxxxxxxx Disclosure
Schedule"), as follows:
3.1 Organization, Good Standing, Corporate Power.
(a) Xxxxxxxxx is a corporation duly organized, validly existing, and in
good standing under the laws of the State of Florida, with full corporate
power and authority to conduct its business as it is now being conducted
and to own or use the properties and assets that it purports to own or use.
Xxxxxxxxx has no Subsidiaries, and is not qualified or required to be
qualified, to do business in any other jurisdiction.
(b) Xxxxxxxxx has delivered to Ranger copies of the Organizational
Documents of Xxxxxxxxx, as currently in effect.
3.2 Authority; No Conflict.
(a) Xxxxxxxxx has all necessary corporate power and authority to execute
and deliver this Agreement and to perform its obligations hereunder and,
subject only to obtaining the approval of the shareholders of Xxxxxxxxx of
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the Merger ("Shareholder Approval"), to complete the Contemplated
Transactions. The execution and delivery of this Agreement by Xxxxxxxxx and
the completion by Xxxxxxxxx of the Contemplated Transactions have been duly
and validly approved by Xxxxxxxxx Board of Directors, as required by
applicable law.
(b) This Agreement, when executed and delivered by Xxxxxxxxx, will be a
valid and binding obligation of Xxxxxxxxx, enforceable against Xxxxxxxxx in
accordance with its terms, except as to the effect, if any, of
(i) applicable bankruptcy and other similar laws affecting the rights of
creditors generally and
(ii) rules of law governing specific performance, injunctive relief and
other equitable remedies.
(c) Neither the execution and delivery of this Agreement by Xxxxxxxxx nor,
after obtaining the Shareholder Approval, the completion or performance of
any of the Contemplated Transactions will, directly or indirectly (with or
without notice or lapse of time):
(i) Contravene, conflict with, or result in a violation of any provision
of the Organizational Documents of Xxxxxxxxx;
(ii) Contravene, conflict with, or result in a violation of, or give any
Governmental Body or, to the Knowledge of Xxxxxxxxx, other Person the
right to challenge any of the Contemplated Transactions or to exercise
any remedy or obtain any relief under, any Legal Requirement or any
Order to which Xxxxxxxxx or any of the assets owned or used by
Xxxxxxxxx may be subject;
(iii)Subject to the filing of the Articles of Merger with the Florida
Secretary of State, contravene, conflict with, or result in a
violation of any of the terms or requirements of, or give any
Governmental Body the right to revoke, withdraw, suspend, cancel,
terminate, or modify, any Governmental Authorization that is held by
Xxxxxxxxx or that otherwise relates to the business of, or any of the
assets owned or used by Xxxxxxxxx;
(iv) Cause Xxxxxxxxx to become subject to, or to become liable for the
payment of, any Tax;
(v) Cause any of the assets owned by Xxxxxxxxx to be reassessed or
revalued by any taxing authority or other Governmental Body;
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(vi) Contravene, conflict with, or result in a violation or breach of any
provision of, or give any Person the right to declare a default or
exercise any remedy under, or to accelerate the maturity or
performance of, or to cancel, terminate, or modify, any material
Contract to which Xxxxxxxxx is a party or by which Xxxxxxxxx or its
respective properties are bound or affected; or
(vii) Result in the imposition or creation of any Encumbrance upon or with
respect to any of the assets owned or used by Xxxxxxxxx.
(d) Xxxxxxxxx is not or will not be required to give any notice to or
obtain any Consent from any Person in connection with the execution and
delivery of this Agreement or the completion or performance of any of the
Contemplated Transactions.
3.3 Capitalization.
(a) The authorized capital stock of Xxxxxxxxx consists of 20,000,000 shares
of Xxxxxxxxx Common Stock and 10,000,000 shares of Preferred Stock
("Xxxxxxxxx Preferred Stock").
(b) As of the date of this Agreement,
(i) 14,720,000 shares of Xxxxxxxxx Common Stock were issued and
outstanding, all of which are validly issued, fully paid and
nonassessable held by the persons whose names, addresses and share
ownership are set forth on Schedule 3.3;
(ii) no shares of Xxxxxxxxx Preferred Stock are issued or outstanding, or
held in treasury by Xxxxxxxxx or by any Subsidiary; and
(iii)there are existing no subscriptions, options, warrants, equity
securities, partnership interests or similar ownership interests,
calls, rights (including preemptive rights), commitments or agreements
of any character to which Xxxxxxxxx is a party or by which it is bound
obligating Xxxxxxxxx to issue, deliver or sell, or cause to be issued,
delivered or sold, or repurchase, redeem or otherwise acquire, or
cause the repurchase, redemption or acquisition of, any shares of
capital stock, partnership interests or similar ownership interests of
Xxxxxxxxx or obligating Xxxxxxxxx to xxxxx, extend, accelerate the
vesting of or enter into any such subscription, option, warrant,
equity security, call, right, commitment or agreement.
(c) As of the date of this Agreement, except as contemplated by this
Agreement and except as set forth in Schedule 3.3, there are no
registration rights and there is no voting trust, proxy, rights plan,
anti-takeover plan or other agreement or understanding to which Xxxxxxxxx
is a party or by which it is bound with respect to any equity security of
any class of Xxxxxxxxx.
-15-
3.4 Books and Records. The books of account, stock record books, and other
records of Xxxxxxxxx, all of which have been made available to BEI Acquisition
and Ranger, are complete and correct in all material respects.
3.5 Real Property Interests. Xxxxxxxxx does not own or lease any real
property.Xxxxxxxxx'x sole asset is units ("Units") representing a 74.415%
working interest in the Henryetta Joint Venture (the "Joint Venture")
representing an equity interest in the right of Inter-Oil and Gas, Group, Inc.
("Inter-Oil") to find, remove, and sell all oil and gas reserves that exist
beneath or are accessible from xxxxx drilled on properties for which Inter-Oil
owns such rights. The Units were acquired by Xxxxxxxxx pursuant to the Joint
Venture Unit Purchase Agreement, dated as of September 29, 2000, between
Inter-Oil and Gas Group, Inc. and Xxxxxxxxx (the "Joint Venture Purchase
Agreement"). The Joint Venture Purchase Agreement remains in full force and
effect and has not been amended or modified.. In connection with that option
agreement, Xxxxxxxxx represents that it has delivered the following information
to Ranger which is true, accurate, and complete in all material respects:
(a) A copy of the Joint Venture Purchase Agreement and all letters of
intent, memoranda of understanding, and other documents which led to the
execution of the option agreement;
(b) A copy of all information Xxxxxxxxx has with respect to the ownership
of the property underlying the lands and mineral interests included within
the option agreement;
(c) A copy of all information Xxxxxxxxx has with respect to oil and gas
reserves relating to the mineral interests included within the option
agreement; and
(d) A copy of all other information Xxxxxxxxx has obtained relating to the
option agreement, the underlying lands and mineral interests, and the
transactions contemplated thereby.
3.6 Condition and Sufficiency of Assets. Xxxxxxxxx has no assets, other
than the Units, that are material to its financial condition.
3.7 No Undisclosed Liabilities. Xxxxxxxxx does not have any liabilities or
obligations of any nature (whether known or unknown and whether absolute,
accrued, contingent or otherwise) except for liabilities or obligations
reflected or reserved against in the Financial Statements and not heretofore
paid or discharged and current liabilities incurred in the Ordinary Course of
Business since January 1, 2000.
3.8 Taxes.
(a) Xxxxxxxxx has timely filed all Tax Returns that it was required to
file. All such Tax Returns were correct and complete in all material
respects. Xxxxxxxxx has paid in full or made adequate provision by the
-16-
establishment of reserves in accordance with GAAP for all Taxes which have
become due or which are attributable to the conduct of Xxxxxxxxx'x business
prior to January 1, 2000 (other than reserves for deferred Taxes and
without regard to the materiality thereof). Xxxxxxxxx will continue to make
adequate provision for all such Taxes in accordance with GAAP for all
periods through the Closing Date (other than reserves for deferred Taxes
and without regard to the materiality thereof). Xxxxxxxxx is not the
beneficiary of any extension of time within which to file any Tax Return.
(b) The Tax Returns of Xxxxxxxxx have never been audited by the IRS or
other Governmental Body, nor are any such audits in process. There are no
outstanding agreements or waivers extending the statute of limitations
applicable to any Tax Returns of Xxxxxxxxx for any period. No adjustment
relating to any Tax Return of the Company has been proposed formally or
informally by any Tax authority and, to the best knowledge of the Sellers
and the Company, no basis exists for any such adjustment. There are no Tax
liens on any assets of the Company.
(c) Xxxxxxxxx has not filed a consent under Code ss.341(f) concerning
collapsible corporations. Xxxxxxxxx has not made any material payments, is
not obligated to make any material payments, and is not a party to any
agreement that under any circumstances could obligate it to make any
material payments that will not be deductible under Code ss.280G. No
acceleration of the vesting schedule for any property that is substantially
unvested within the meaning of the regulations under Section 83 of the Code
will occur in connection with the transactions contemplated by this
Agreement. Xxxxxxxxx has not been a United States real property holding
corporation within the meaning of Code ss.897(c)(2) during the applicable
period specified in Code ss.897(c)(1)(A)(ii). Xxxxxxxxx is not a party to
any Tax allocation or sharing agreement. Xxxxxxxxx (i) has not been a
member of an affiliated group filing a consolidated federal income Tax
Return and (ii) has no liability for the Taxes of any Person under Reg.
ss.1.1502-6 (or any similar provision of state, local, or foreign law), as
a transferee or successor, by contract, or otherwise. The Company has not
been at any time a member of any partnership or joint venture or the holder
of a beneficial interest in any trust for any period for which the statute
of limitations for any Tax has not expired. The Company is not subject to
any accumulated earnings tax penalty or personal holding company tax.
3.9 No Xxxxxxxxx Material Adverse Effect. Since January 1, 2000, there has
not been any Xxxxxxxxx Material Adverse Effect, and to Xxxxxxxxx'x Knowledge, no
event has occurred and no circumstance exists that may result in a Xxxxxxxxx
Material Adverse Effect other than with respect to general domestic or
international economic conditions and other than the changes in Xxxxxxxxx'x
financial condition, business and operations as disclosed in Xxxxxxxxx'x reports
filed under the Exchange Act, which changes are continuing to date.
3.10 Non-Applicability of the HSR Act. The ultimate parent entity of
Xxxxxxxxx does not have either (i) total assets of $100,000,000 or more, as
stated on the last regularly prepared balance sheet of that person, or (ii)
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annual net sales of $100,000,000 or more, as stated on the last regularly
prepared annual statement of income and expense of that person, as those terms
are defined in the Federal Trade Commission's implementing regulations under the
HSR Act.
3.11 Employee Benefits Matters.
(a) Xxxxxxxxx has no plans, programs, or similar agreements, commitments or
arrangements (including, but not limited to, any bonus, profit sharing,
pension, deferred compensation, stock option, stock purchase, fringe
benefit, severance, post-retirement, scholarship, tuition reimbursement,
disability, sick leave, vacation, commission, retention or other
arrangements), whether oral or written, sponsored or maintained by or on
behalf of, or to which contributions are or were made by, Xxxxxxxxx and/or
any ERISA Affiliate.
(b) Xxxxxxxxx is not liable for and neither Xxxxxxxxx nor BEI Acquisition
nor Ranger will be liable for, any contribution, Tax, lien, penalty, cost,
interest, claim, loss, action, suit, damage, cost assessment or other
similar type of liability or expense of any ERISA Affiliate (including
predecessors thereof) with regard to any Plan maintained, sponsored or
contributed to by an ERISA Affiliate, including, without limitation,
withdrawal liability arising under Title IV of ERISA, liabilities to the
PBGC, or liabilities under Code ss.412 or ERISA ss.302.
3.12 Compliance With Legal Requirements; Governmental Authorizations.
(a) Xxxxxxxxx is, and at all times since January 1, 2000, has been, in full
compliance with each Legal Requirement that is or was applicable to it or
to the conduct or operation of its business or the ownership or use of any
of its assets except where the failure to comply with a Legal Requirement
would not have a Xxxxxxxxx Material Adverse Effect.
(b) Xxxxxxxxx has all Governmental Authorizations necessary to conduct its
business as presently conducted.
3.13 Legal Proceedings; Orders. There is no pending Proceeding or to the
Knowledge of Xxxxxxxxx, no such Proceeding has been Threatened and, no event has
occurred or circumstance exists that may give rise to or serve as a basis for
the commencement of any Proceeding.
3.14 Absence of Certain Changes and Events. Since January 1, 2000,
Xxxxxxxxx has conducted its business only in the Ordinary Course of Business
except the transactions provided for in the Joint Venture Purchase Agreement in
this Agreement and in the Tender Offer contemplated hereby.
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3.15 Contracts; No Defaults. Schedule 3.15 of Xxxxxxxxx Disclosure Schedule
contains a complete and accurate list, and Xxxxxxxxx has delivered to BEI
Acquisition and Ranger true and complete copies, of each Contract to which
Xxxxxxxxx is a party.
3.16 Insurance. Xxxxxxxxx has no insurance policies.
3.17 Environmental Matters. Xxxxxxxxx has obtained and is in compliance
with all permits, licenses and other authorizations (collectively, "Permits")
required to do business by Environmental Requirements. To Xxxxxxxxx'x Knowledge,
there are no conditions, circumstances, activities, practices, incidents, or
actions (collectively, "Conditions") resulting from the conduct of its business
which Conditions may reasonably form the basis of any claim or suit against
Xxxxxxxxx based on or related to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport, or handling by Xxxxxxxxx, or the
emission, discharge, release or Threatened release by Xxxxxxxxx into the
environment, of any pollutant, contaminant, or hazardous or toxic materials,
substances or wastes.
3.18 Employees. Xxxxxxxxx has no employees or commitments to pay any person
as an employee or independent contractor except payment obligations to Xxxxxxx
Xxxxxxx, as described in Schedule 3.18, and for professional assistance in
accomplishing the Transactions.
3.19 Intellectual Property Rights of Xxxxxxxxx. Xxxxxxxxx owns, leases, or
licenses, no "Software" or "Intangibles" that are material to its business. All
Software that Xxxxxxxxx uses is standard, off-the-shelf software which Xxxxxxxxx
has a legal right to use.
3.20 Relationships With Related Persons. Except for compensation payable to
Xxxxxxx Xxxxxxx, as described in Schedule 3.18, no Related Person of Xxxxxxxxx
has, or since January 1, 2000, has had, any interest in any property (whether
real, personal, or mixed and whether tangible or intangible), used in
Xxxxxxxxx'x businesses.
3.21 Brokers or Finders. Neither Xxxxxxxxx, nor its agents have incurred
any obligation or liability, contingent or otherwise, for brokerage or finders'
fees or agents' commissions or other similar payment in connection with this
Agreement.
3.22 Disclosure Documents. None of the information supplied or to be
supplied by Xxxxxxxxx for inclusion in or incorporation by reference in any
proxy statement or tender offer statement will, in the case of the Proxy
Statement, at the time of mailing of the Proxy Statement to stockholders of
Xxxxxxxxx, contain any untrue statement of a material fact or will omit to state
any material fact required to be stated therein or necessary in order to make
the statements therein, in light of the circumstances under which they are made,
not misleading or will, at the time the tender offer is being completed, contain
any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements made therein,
in light of the circumstances under which they were made, not misleading.
-19-
3.23 Disclosure. No representation or warranty made by Xxxxxxxxx in this
Agreement or any Exhibit hereto or in Xxxxxxxxx Disclosure Schedule, when taken
together, contains or contained (as of the date made) any untrue statement of a
material fact or omits to state a material fact necessary in order to make the
statements or facts contained herein or therein not misleading in light of the
circumstances under which they were made.
3.24 Vote Required. The affirmative vote of a majority of the votes that
holders of the outstanding shares of Xxxxxxxxx Common Stock are entitled to vote
with respect to the Merger is the only vote of the holders of any class or
series of Xxxxxxxxx'x capital stock necessary to approve this Agreement and the
Contemplated Transactions.
4 REPRESENTATIONS, WARRANTIES AND XXXXXXXXXXX OF BEI ACQUISITION AND RANGER.
As of the date of this Agreement and as of the Closing Date, BEI Acquisition and
Ranger, jointly and severally, hereby represent and warrant to Xxxxxxxxx,
subject to such exceptions as are specifically disclosed in writing in the
disclosure letter and referenced by a specific representation supplied by Ranger
to Xxxxxxxxx dated as of the date of this Agreement and certified by a duly
authorized officer of Ranger (the "Ranger Disclosure Schedule") or as otherwise
disclosed in the Exchange Act Reports, as follows:
4.1 Exchange Act Reports. Ranger has a class of securities registered under
Section 12(g) of the Exchange Act and has filed all Exchange Act Reports
required to be filed by Ranger as of the date hereof. The Exchange Act Reports:
(a) were prepared in accordance with the requirements of the Exchange Act,
and
(b) did not at the time they were filed (or if amended or superseded by a
filing prior to the date of this Agreement, then on the date of such
filing) contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make
the statements therein, in light of the circumstances under which they were
made, not misleading, and no event has occurred since the date Ranger filed
its annual report on Form 10-KSB for the year ended December 31, 1999,
which renders Ranger's Exchange Act reports (or the financial statements
contained therein) inaccurate or incomplete in any Material respect, except
to the extent disclosed in a subsequently filed Exchange Act Report.
4.2 Authority; No Conflict.
(a) Ranger and BEI Acquisition each has all necessary corporate power and
authority to execute and deliver this Agreement and to perform its
respective obligations hereunder and to complete the Contemplated
Transactions. Without limitation of the foregoing sentence, Ranger
represents and warrants that the approval of the shareholders of Ranger is
not required for the completion of the Contemplated Transactions. The
execution and delivery of this Agreement by Ranger and BEI Acquisition and
the completion by Rangerand BEI Acquisition of the Contemplated
Transactions have been duly and validly approved by Ranger's Board of
Directors.
-20-
(b) This Agreement is, or when executed and delivered by Ranger and BEI
Acquisition will be, a valid and binding obligation of Ranger and BEI
Acquisition, enforceable against Ranger and BEI Acquisition in accordance
with its terms, except as to the effect, if any, of
(i) applicable bankruptcy and other similar laws affecting the rights of
creditors generally and
(ii) rules of law governing specific performance, injunctive relief and
other equitable remedies.
4.3 Capitalization of Ranger and BEI Acquisition. The authorized capital
stock of Ranger consists of 20,000,000 shares of common stock, $.01 par value
per share of which 5,278,644 shares were issued and outstanding as of November
30, 2000 and no shares of preferred stock are authorized, issued and
outstanding. The authorized capital stock of BEI Acquisition consists of 1,000
shares of common stock, par value $.01 per share, all of which, as of the date
hereof, are issued and outstanding. The shares of Ranger Common Stock to be
issued pursuant to this Agreement have been duly authorized and, when issued,
will be validly issued, fully paid and nonassessable. Neither Ranger nor BEI
Acquisition have any plans or intentions to issue any additional shares of its
capital stock or any instruments convertible into or exchangeable for shares of
the capital stock of either.
4.4 Books and Records. The books of account, stock record books, and other
records of Ranger, all of which have been made available to the BEI Acquisition
and Ranger, are complete and correct in all material respects.
4.5 Real Property Interests. Ranger does not own or lease any real
property, other than as described in Schedule 4.5.
4.6 Taxes.
(a) Ranger has timely filed all Tax Returns that it was required to file.
All such Tax Returns were correct and complete in all material respects.
Ranger has paid in full or made adequate provision by the establishment of
reserves in accordance with GAAP for all Taxes which have become due or
which are attributable to the conduct of Ranger's business.
(b) Ranger has not filed a consent under Code ss.341(f) concerning
collapsible corporations. Ranger has not made any material payments, is not
obligated to make any material payments, and is not a party to any
agreement that under any circumstances could obligate it to make any
material payments that will not be deductible under Code ss.280G. No
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acceleration of the vesting schedule for any property that is substantially
unvested within the meaning of the regulations under Section 83 of the Code
will occur in connection with the transactions contemplated by this
Agreement. Ranger has not been a United States real property holding
corporation within the meaning of Code ss.897(c)(2) during the applicable
period specified in Code ss.897(c)(1)(A)(ii). Ranger is not a party to any
Tax allocation or sharing agreement. Ranger (i) has not been a member of an
affiliated group filing a consolidated federal income Tax Return and (ii)
has no liability for the Taxes of any Person under Reg. ss.1.1502-6 (or any
similar provision of state, local, or foreign law), as a transferee or
successor, by contract, or otherwise. The Parent has not been at any time a
member of any partnership or joint venture or the holder of a beneficial
interest in any trust for any period for which the statute of limitations
for any Tax has not expired.
4.7 No Ranger Material Adverse Effect. Since January 1, 2000, there has not
been any Ranger Material Adverse Effect, and to Ranger's Knowledge, no event has
occurred and no circumstance exists that may result in a Ranger Material Adverse
Effect other than with respect to general domestic or international economic
conditions and other than the changes in Ranger's financial condition, business
and operations as disclosed in Ranger's reports filed under the Exchange Act,
which changes are continuing to date.
4.8 Employee Benefits Matters.
(a) Ranger and BEI Acquisition have no plans, programs, or similar
agreements, commitments or arrangements (including, but not limited to, any
bonus, profit sharing, pension, deferred compensation, stock option, stock
purchase, fringe benefit, severance, post-retirement, scholarship, tuition
reimbursement, disability, sick leave, vacation, commission, retention or
other arrangements), whether oral or written, sponsored or maintained by or
on behalf of, or to which contributions are or were made by, Ranger, BEI
Acquisition and/or any ERISA Affiliate other than its employment agreement
with Xxxxxx Xxxxxx.
(b) Ranger and BEI Acquisition are not liable for and neither Xxxxxxxxx nor
BEI Acquisition nor Ranger will be liable for, any contribution, Tax, lien,
penalty, cost, interest, claim, loss, action, suit, damage, cost assessment
or other similar type of liability or expense of any ERISA Affiliate
(including predecessors thereof) with regard to any Plan maintained,
sponsored or contributed to by an ERISA Affiliate, including, without
limitation, withdrawal liability arising under Title IV of ERISA,
liabilities to the PBGC, or liabilities under Code ss.412 or ERISA ss.302.
4.9 Compliance With Legal Requirements; Governmental Authorizations.
(a) Ranger and BEI Acquisition are, and at all times since January 1, 2000,
have been, in full compliance with each Legal Requirement that is or was
applicable to each or to the conduct or operation of each's business or the
ownership or use of any of either of its assets except where the failure to
comply with a Legal Requirement would not have a Ranger Material Adverse
Effect.
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(b) Ranger and BEI Acquisition each have all Governmental Authorizations
necessary to conduct its business as presently conducted.
4.10 Legal Proceedings; Orders. There is no pending Proceeding or to the
Knowledge of Ranger or BEI Acquisition (i) no such Proceeding has been
Threatened and (ii) no event has occurred or circumstance exists that may give
rise to or serve as a basis for the commencement of any Proceeding.
4.11 Absence of Certain Changes and Events. Since January 1, 2000, Ranger
and BEI Acquisition have each conducted its business only in the Ordinary Course
of Business.
4.12 Contracts; No Defaults. Ranger and the BEI Acquisition have delivered
to Xxxxxxxxx a complete and accurate list, and true and complete copies, of each
Contract to which either Ranger or the BEI Acquisition is a party. No such
contract is in default, and no event has occurred pursuant to which any such
contract, with or without notice, could be declared in default.
4.13 Insurance. Ranger has obtained no insurance policies except as
described in Ranger Disclosure Schedule. All such policies are in full force and
effect.
4.14 Environmental Matters. Ranger has obtained and is in compliance with
all permits, licenses and other authorizations (collectively, "Permits")
required to do business by Environmental Requirements. To Ranger's Knowledge,
there are no conditions, circumstances, activities, practices, incidents, or
actions (collectively, "Conditions") resulting from the conduct of its business
which Conditions may reasonably form the basis of any claim or suit against
Ranger based on or related to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport, or handling by Ranger, or the emission,
discharge, release or Threatened release by Ranger into the environment, of any
pollutant, contaminant, or hazardous or toxic materials, substances or wastes.
4.15 Employees. Ranger has no employees or commitments to pay any person as
an employee or independent contractor except payment obligations to S&H
Consulting, Ltd. pursuant to an agreement dated as of May 20, 2000 (the "S&H
Agreement") and pursuant to its employment agreement with Xxxxxx Xxxxxx and for
professional assistance in accomplishing the Transactions.
4.16 Government Contracts. Ranger has no business contracts with any
independent or executive agency, division, subdivision, audit group or procuring
office of the federal government or of a state government, including any prime
contractor of the federal government and any higher level subcontractor of a
prime contractor of the federal government, and including any employees or
agents thereof, in each case acting in such capacity.
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4.17 Intellectual Property Rights of Ranger. Ranger owns, leases, or
licenses, no "Software" or "Intangibles" that are material to its business. All
Software that Ranger uses is standard, off-the-shelf software which Ranger has a
legal right to use.
4.18 Brokers or Finders. Neither Ranger, nor its agents have incurred any
obligation or liability, contingent or otherwise, for brokerage or finders' fees
or agents' commissions or other similar payment in connection with this
Agreement, other than pursuant to the S&H Agreement.
4.19 Disclosure Documents. None of the information supplied or to be
supplied by Ranger for inclusion in or incorporation by reference in any proxy
statement or tender offer statement will, in the case of the Proxy Statement, at
the time of mailing of the Proxy Statement to stockholders of Ranger, contain
any untrue statement of a material fact or will omit to state any material fact
required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they are made, not misleading
or will, at the time the tender offer is being completed, contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements made therein, in light of the
circumstances under which they were made, not misleading.
4.20 Disclosure. No representation or warranty made by Ranger in this
Agreement or any Exhibit hereto or in Ranger Disclosure Schedule, when taken
together, contains or contained (as of the date made) any untrue statement of a
material fact or omits to state a material fact necessary in order to make the
statements or facts contained herein or therein not misleading in light of the
circumstances under which they were made.
4.21 No Shareholder Vote Required. Approval of the holders of the
outstanding shares of Ranger Common Stock are not entitled to vote with respect
to the Merger.
5 CERTAIN AGREEMENTS OF THE PARTIES.
5.1 No Solicitation.
(a) From and after the date of this Agreement until the Effective Time or
termination of this Agreement pursuant to Section 8, neither Xxxxxxxxx nor
Ranger will, nor will either authorize or permit any of their respective
officers, directors, affiliates or employees or any investment banker,
attorney or other advisor or representative retained by any of them to,
directly or indirectly,
(i) solicit, initiate, encourage or induce the making, submission or
announcement of any Acquisition Proposal;
(ii) participate in any discussions or negotiations regarding, or furnish
to any person any information with respect to, or take any other
action to facilitate any inquiriesor the making of any proposal that
constitutes or may reasonably be expected to lead to, any Acquisition
Proposal;
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(iii)engage in discussions with any person with respect to any
Acquisition Proposal;
(iv) approve, endorse or recommend any Acquisition Proposal or
(v) enter into any letter of intent or similar document or any
contract, agreement or commitment contemplating or otherwise
relating to any Acquisition Transaction;
(b) provided, however, that nothing contained in this Section 5.1. shall
prohibit the Board of Directors of Xxxxxxxxx or Ranger from complying with
Rule 14d-9 or 14e-2(a) promulgated under the Exchange Act with regard to a
tender or exchange offer not made in violation of this Section 5.1 or the
Tender Offer; provided, however, that nothing in this Agreement shall
prohibit the Board of Directors of Ranger from furnishing information to,
or entering into discussions or negotiations with, any person (other than
an Affiliate of Ranger) that makes an unsolicited Acquisition Proposal
after the date hereof, if the Board of Directors of Ranger, after
consultation with outside legal counsel, determines in good faith that the
failure to engage in such negotiations or discussions, or disclose such
non-public information, would be reasonably expected to be a breach of, or
would be inconsistent with, the Board of Directors' fiduciary duties under
applicable law. Without limiting the foregoing, it is understood that any
violation of the restrictions set forth in this Section 5.1. by any
officer, director or employee of Xxxxxxxxx or Ranger, or any of its
subsidiaries or any investment banker, attorney or other advisor or
representative of Xxxxxxxxx or Ranger or any of its subsidiaries shall be
deemed to be a breach of this Section 5.1. by Xxxxxxxxx or Ranger,
respectively.
(c) If Ranger completes an Acquisition Transaction notwithstanding the
foregoing, Ranger will, immediately prior to completing the Acquisition
Transaction, pay Xxxxxxxxx $500,000 in cash as liquidated damages and in
lieu of any other liability that Ranger or any of its Affiliates might have
to Xxxxxxxxx. Ranger may not, directly or indirectly, complete any
Acquisition Transaction unless simultaneously or prior thereto.
(d) For purposes of this Agreement,
(i) "Acquisition Proposal" shall mean any offer or proposal (other
than the Contemplated Transactions) relating to any Acquisition
Transaction.
(ii) "Acquisition Transaction" shall mean any transaction or series of
related transactions other than the Contemplated Transactions
involving:
(A) any acquisition or purchase from Xxxxxxxxx by any person or
"group" (as defined under Section 13(d) of the Exchange Act
and the rules and regulations thereunder) of more than a
five percent (5%) interest in the total outstanding voting
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total outstanding voting securities of Ranger or Xxxxxxxxx,
as the case may be, or any of their respective subsidiaries
or any tender offer or exchange offer that if completed
would result in any person or "group" (as defined under
Section 13(d) of the Exchange Act and the rules and
regulations thereunder) beneficially owning five percent
(5%) or more of the total outstanding voting securities of
Ranger or Xxxxxxxxx, as the case may be, or any of their
respective subsidiaries or any merger, consolidation,
business combination or similar transaction involving Ranger
or Xxxxxxxxx pursuant to which the shareholders of Ranger or
Xxxxxxxxx, as the case may be, immediately preceding such
transaction hold less than ninety-five percent (95%) of the
equity interests in the surviving or resulting entity of
such transaction;
(B) any sale, lease (other than in the ordinary course of
business), exchange, transfer, license (other than in the
ordinary course of business), acquisition or disposition of
more than five percent (5%) of the assets of Xxxxxxxxx or
(3) any liquidation, dissolution, recapitalization or other
significant corporate reorganization of Ranger or Xxxxxxxxx
and
(e) In addition to the obligations of Xxxxxxxxx and Ranger, respectively,
set forth in this Section 5.1, Xxxxxxxxx and Ranger, as promptly as
practicable, and in any event within 24 hours, shall advise the other party
orally and in writing of any request for information or inquiry which
Xxxxxxxxx or Ranger reasonably believes constitutes or could reasonably be
expected to lead to an Acquisition Proposal or of any Acquisition Proposal,
the material terms and conditions of such inquiry, request, or Acquisition
Proposal, and the identity of the person or group making any such inquiry,
request, or Acquisition Proposal. Xxxxxxxxx will keep Ranger informed, and
Ranger will keep Xxxxxxxxx informed, in all material respects of the status
and details (including material amendments or proposed amendments) or any
such inquiry, request, or Acquisition Proposal. In addition to the
foregoing, Xxxxxxxxx and Ranger shall each:
(i) provide the other party with at least 48 hours prior notice (or such
lesser prior notice as provided to the members of Xxxxxxxxx'x or
Ranger's Board of Directors, but in no event less than eight hours) of
any meeting of Xxxxxxxxx'x or Ranger's Board of Directors at which
Board of Directors is reasonably expected to consider an Acquisition
Proposal, and
(ii) provide the other party with at least two business days prior written
notice of a meeting of Xxxxxxxxx'x or Ranger's Board of Directors at
which Board of Directors is reasonably expected to recommend an
Acquisition Proposal to its shareholders and together with such notice
a copy of the definitive documentation relating to such Acquisition
Proposal.
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5.2 Public Disclosure. Ranger and Xxxxxxxxx will consult with each other
and agree before issuing any press release or otherwise making any public
statement with respect to the Merger, this Agreement or an Acquisition Proposal
and will not issue any such press release or make any such public statement
prior to such agreement, except as may be required by law or any listing
agreement with a national securities exchange, in which case reasonable efforts
to consult with the other party will be made prior to any such release or public
statement. The parties have agreed to the text of the joint press release
announcing the signing of this Agreement.
5.3 Reasonable Efforts; Notification.
(a) Upon the terms and subject to the conditions set forth in this
Agreement, each of the parties agrees to use all reasonable efforts to
take, or cause to be taken, all actions, and to do, or cause to be done,
and to assist and cooperate with the other parties in doing, all things
necessary, proper or advisable to complete and make effective, in the most
expeditious manner practicable, the Merger and the other Contemplated
Transactions, including using reasonable efforts to accomplish the
following:
(i) the taking of all reasonable acts necessary to cause the conditions
precedent set forth in Section 7 to be satisfied;
(ii) the obtaining of all necessary actions or nonactions, waivers,
consents, approvals, orders and authorizations from Governmental
Bodies and the making of all necessary registrations, declarations and
filings (including registrations, declarations and filings with
Governmental Bodies, if any) and the taking of all reasonable steps as
may be necessary to avoid any suit, claim, action, investigation or
proceeding by any Governmental Body;
(iii) the obtaining of all necessary consents, approvals or waivers from
third parties;
(iv) the defending of any suits, claims, actions, investigations or
proceedings, whether judicial or administrative, challenging this
Agreement or the completion of the Contemplated Transactions,
including seeking to have any stay or temporary restraining order
entered by any court or other Governmental Body vacated or reversed
and
(v) the execution or delivery of any additional instruments necessary to
complete the transactions contemplated by, and to fully carry out the
purposes of, this Agreement.
(vi) (A) In connection with and without limiting the foregoing, Xxxxxxxxx
and its Board of Directors on the one hand, and Ranger and its
Board of Directors on the other hand, shall, if any state
takeover statute or similar statute or regulation is or becomes
applicable to the Merger, this Agreement or any of the
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Contemplated Transactions, use all reasonable efforts to ensure
that the Merger and the other Contemplated Transactions may be
completed as promptly as practicable on the terms contemplated by
this Agreement and otherwise to minimize the effect of such
statute or regulation on the Merger, this Agreement and the
Contemplated Transactions.
(B) Notwithstanding anything herein to the contrary, nothing in this
Agreement shall be deemed to require Ranger or Xxxxxxxxx or any
Subsidiary or Affiliate thereof to agree to any divestiture by
itself or any of its affiliates of shares of capital stock or of
any business, assets or property, or the imposition of any
material limitation on the ability of any of them to conduct
their business or to own or exercise control of such assets,
properties and stock.
(b) Xxxxxxxxx shall give prompt notice to Ranger of any representation or
warranty made by it contained in this Agreement becoming untrue or
inaccurate, or any failure of Xxxxxxxxx to comply with or satisfy in any
material respect any covenant, condition or agreement to be complied with
or satisfied by it under this Agreement, in each case, such that the
conditions set forth in Section 7.2 would not be satisfied; provided,
however, that no such notification shall affect the representations,
warranties, covenants or agreements of the parties or the conditions to the
obligations of the parties under this Agreement.
(c) Ranger shall give prompt notice to Xxxxxxxxx of any representation or
warranty made by it or BEI Acquisition contained in this Agreement becoming
untrue or inaccurate, or any failure of Ranger or BEI Acquisition to comply
with or satisfy in any material respect any covenant, condition or
agreement to be complied with or satisfied by it under this Agreement, in
each case, such that the conditions set forth in Section 7.3 would not be
satisfied; provided, however, that no such notification shall affect the
representations, warranties, covenants or agreements of the parties or the
conditions to the obligations of the parties under this Agreement.
5.4 Third Party Consents. As soon as practicable following the date hereof,
Ranger and Xxxxxxxxx will each use its commercially reasonable efforts to obtain
any consents, waivers and approvals under any of its or its subsidiaries'
respective agreements, contracts, licenses or leases required to be obtained in
connection with the completion of the Contemplated Transactions.
5.5 Indemnification. From and after the Effective Time, Ranger will cause
the Surviving Corporation to fulfill and honor in all respects the obligations
of Xxxxxxxxx pursuant to any indemnification agreements between Xxxxxxxxx and
its directors and officers in effect immediately prior to the Effective Time and
any indemnification provisions under Xxxxxxxxx Organizational Documents as in
effect on the date hereof. The Certificate of Incorporation and Bylaws of the
Surviving Corporation will contain provisions with respect to exculpation and
indemnification that are at least as favorable to the indemnified parties
thereunder (the "Indemnified Parties") as those contained in Xxxxxxxxx
Organizational Documents as in effect on the date hereof, which provisions will
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not be amended, repealed or otherwise modified for a period of four years from
the Effective Time in any manner that would adversely affect the rights
thereunder of the Indemnified Parties, unless such modification is required by
law.
6 ADDITIONAL COVENANTS OF THE PARTIES. The parties hereto hereby agree as
follows with respect to the period from and after the date of this Agreement.
6.1 Mutual Covenants.
(a) Tax-Deferred Treatment. Each of the parties shall use its reasonable efforts
to cause the Merger to constitute a tax-deferred "reorganization" under Section
368(a) of the Code.
(b) Confidentiality; Access to Information.
(i) Prior to the Effective Time and after any termination of this
Agreement each party hereto will hold, and will use its best efforts
to cause its officers, directors, employees, accountants, counsel,
consultants, advisors, affiliates (as such term is used in Rule 12b-2
under the Exchange Act) and representatives (collectively, the
"Representatives"), to hold, in confidence all confidential documents
and information concerning the other parties hereto and the Subsidiary
furnished to such party in connection with the Contemplated
Transactions, including, without limitation, all analyses,
compilations, studies or records prepared by the party receiving the
information or by such party's Representatives, that contain or
otherwise reflect or are generated from such information
(collectively, the "Confidential Material"). The party furnishing any
Confidential Material is herein referred to as the "Delivering
Company" and the party receiving any Confidential Material is herein
referred to as the "Receiving Company."
(ii) The Receiving Company agrees that the Confidential Material will not
be used other than for the purpose of the transaction contemplated by
this Agreement, and that such information will be kept confidential by
the Receiving Company and its Representatives; provided, however, that
(1) any of such information may be disclosed to the Representatives
who need to know such information for the purpose described above (it
being understood that each such Representative shall be informed by
the Receiving Company of the confidential nature of such information,
shall be directed by the Receiving Company to treat such information
confidentially and not to use it other than for the purpose described
above and shall agree to be bound by the terms of this Section 6.1 in
any event, the Receiving Company shall be responsible for any breach
of this Agreement by any of its Representatives) and (2) any other
disclosure of such information may be made if the Delivering Company
has, in advance, consented to such disclosure in writing. The
Receiving Company will make all reasonable, necessary andappropriate
efforts to safeguard the Confidential Material from disclosure to
anyone other than as permitted hereby.
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(iii)Notwithstanding the foregoing, if the Receiving Company or any of its
Representatives is requested or required (by oral question or request
for information or documents in legal proceedings, interrogatories,
subpoena, civil investigative demand or similar process) to disclose
any Confidential Material, the Receiving Company will promptly notify
the Delivering Company of such request or requirement so that the
Delivering Company may seek an appropriate protective order and/or
waive the Receiving Company's compliance with the provisions or this
Agreement. If, in the absence of a protective order or the receipt of
a waiver hereunder, the Receiving Company or any of its
Representatives is nonetheless, in the reasonable written opinion of
the Receiving Company's counsel, compelled to disclose Confidential
Material to any tribunal, the Receiving Company or such
Representative, after notice to the Delivering Company, may disclose
such information to such tribunal. The Receiving Party shall exercise
reasonable efforts to obtain reliable assurance that confidential
treatment will be accorded the Confidential Material so disclosed. The
Receiving Company or such Representative shall not be liable for the
disclosure of Confidential Material hereunder to a tribunal compelling
such disclosure unless such disclosure to such tribunal was caused by
or resulted from a previous disclosure by the Receiving Company or any
of its Representatives not permitted by this Agreement.
(iv) This Section 6.1(iv) shall be inoperative as to particular portions of
the Confidential Material if such information (1) is or becomes
generally available to the public other than as a result of a
disclosure by the Receiving Company or its Representatives; (2) was
available to the Receiving Company on a non- confidential basis prior
to its disclosure to the Receiving Company by the Delivering Company
or the Delivering Company's Representatives or (3) becomes available
to the Receiving Company on a non-confidential basis from a source
other than the Delivering Company or the Delivering Company's
Representatives, provided that such source is not known by the
Receiving Company, after reasonable inquiry, to be bound by a
confidentiality agreement with the Delivering Company or the
Delivering Company's Representatives and is not otherwise prohibited
from transmitting the information to the Receiving Company by a
contractual, legal or fiduciary obligation. The fact that information
included in the Confidential Material is or becomes otherwise
available to the Receiving Company or its Representatives under
clauses (1) and (2) above shall not relieve the Receiving Company or
its Representatives of the prohibitions of the confidentiality
provisions of this Section 6.1(iv) with respect to the balance of the
Confidential Material.
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(v) If this Agreement is terminated, each party hereto will, and will use
its best efforts to cause its officers, directors, employees,
accountants, counsel, consultants, advisors and agents to, destroy or
deliver to the party from whom such Confidential Material was
obtained, upon request, all documents and other materials, and all
copies thereof, obtained by such party or on its behalf from any such
other parties in connection with this Agreement that are subject to
such confidence.
(c) Shareholder Approval. Following the execution of this Agreement,
Xxxxxxxxx will promptly either convene a special meeting of its
stockholders for the purpose of approving the Contemplated Transactions or
will obtain promptly such approval by written consent without a meeting. In
connection with seeking such approval, Xxxxxxxxx will distribute to its
stockholders such materials prepared by Ranger as Ranger reasonably deems
necessary to assure that the issuance of the Ranger Common Stock referred
to in Section 2.5 is exempt from registration under the Securities Act and
applicable state securities laws.
(d) Tender Offer. Promptly following the execution of this Agreement,
Xxxxxxxxx will file with the SEC the tender offer statement separately
agreed upon prior to the execution of this Agreement (the "Tender Offer
Statement") and Xxxxxxxxx will offer to purchase up to 4,225,000 shares of
the currently outstanding 5,278,644 shares of Ranger Common Stock in a
public tender offer for a price of $2.00 per share as contemplated by the
Tender Offer Statement (the "Tender Offer"). The parties agree not to
complete the Tender Offer unless the Merger is also completed
simultaneously; the parties agree not to complete the Merger unless the
Tender Offer is also completed simultaneously.
(i) In connection therewith, Ranger, BEI Acquisition and Xxxxxxxxx will
prepare and file the tender offer statement and any other filings
required under the Exchange Act, the Securities Act or any other
Federal or blue sky laws relating to the Merger and the Contemplated
Transactions (the "Other Filings"). Each party will notify the other
party promptly upon the receipt of any comments from the SEC or its
staff and of any supplements to the tender offer statement, or any
Other Filing or for additional information and will supply the other
party with copies of all correspondence between such party or any of
its representatives, on the one hand, and the SEC, or its staff or
other government officials, on the other hand, with respect to the
tender offer statement, the Merger or any Other Filing.
(ii) The tender offer statement and the Other Filings will comply in all
material respects with all applicable requirements of law and the
rules and regulations promulgated thereunder. Each party agrees to
cooperate with the other to provide all materials, documents, exhibits
and other requested information necessary to assure such compliance.
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(iii)The tender offer statement will also include the approval of this
Agreement and the Merger and an agreement by the Board of Directors
not to oppose the tender offer, subject to the right of the Board of
Directors of Xxxxxxxxx to withdraw its recommendation.
(iv) Whenever any event occurs which is required to be set forth in an
amendment or supplement to the tender offer statement or any Other
Filing, Ranger or Xxxxxxxxx, as the case may be, will promptly inform
the other party of such occurrence and cooperate in filing with the
SEC or its staff or any other government officials, and/or mailing to
stockholders of Xxxxxxxxx, such amendment or supplement.
(v) The Tender Offer will be completed at the Effective Time
simultaneously with the completion of the Merger.
(vi) Simultaneously with the closing of the Tender Offer, Ranger will
cooperate with Xxxxxxxxx to provide Xxxxxxxxx with sufficient capital
to permit it to complete the Tender Offer, including providing cash
collateral to permit Xxxxxxxxx to borrow the necessary funds from
another party.
(e) Reasonable Best Efforts. Upon the terms and subject to the conditions
and other agreements set forth in this Agreement, each of Xxxxxxxxx, Ranger
and BEI Acquisition agrees to use its Best Efforts to take, or cause to be
taken, all actions, and to do, or cause to be done, and to assist and
cooperate with the other parties in doing, all things necessary, proper or
advisable to consummate and make effective, in the most expeditious manner
practicable, the Contemplated Transactions, including the satisfaction of
the respective conditions set forth in Article 7 .
6.2 Covenants of Xxxxxxxxx. During the period from the date of this
Agreement to the Effective Time or the date of termination of this Agreement,
Xxxxxxxxx shall use its reasonable efforts to maintain and preserve its business
organization and to retain the services of its officers and key employees and
maintain relationships with customers, suppliers and other third parties to the
end that their goodwill and ongoing business shall not be impaired in any
material respect, and will take no actions which are intended or reasonably
likely to cause any representations in this Agreement to become untrue.
6.3 Covenants of Ranger. During the period from the date of this Agreement
to the Effective Time or the date of termination of this Agreement, Ranger shall
use its reasonable efforts to maintain and preserve its business organizations
and to retain the services of its respective officers and key employees and
maintain relationships with customers, suppliers and other third parties to the
end that their goodwill and ongoing business shall not be impaired in any
material respect, and will take no actions which are intended or reasonably
likely to cause any representations in this Agreement to become untrue.
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6.4 Closing and Post-Closing Covenants.
(a) Resignation of Directors. At the Closing, the directors of Ranger will
appoint designees of Xxxxxxxxx to serve as directors of Ranger commencing
at the Effective Time, and the persons who served as directors of Ranger
prior to the Effective Time will resign.
(b) Resignation of Officers. The officers of Ranger will resign effective
as of the Effective Time.
(c) Consulting Agreement.
(i) Xxxxxx Xxxxxx and Ranger will enter into a new consulting agreement in
the form attached hereto as Exhibit 6.4(c)(i), Ranger will pay the
consulting fee provided in that agreement at the Effective Time, and
the existing employment agreement between Xxxxxx Xxxxxx and Ranger
will be terminated thereby.
(ii) At the Effective Time, Ranger and S&H Consulting will enter into an
amendment to the existing consulting agreement, in the form attached
hereto as Exhibit 6.4(c)(ii) and Ranger will pay the fees provided in
that agreement at the Effective Time.
(d) Limitation on Related Party Transactions. For a period of two years
following the Effective Time, Ranger will not, and will not permit any of
its Affiliates to, engage in any transaction with Ranger or any of its
Subsidiaries in which the amount involved exceeds $100,000 unless Ranger
receives a fairness opinion from an independent firm experienced in the
industry in which Ranger is then principally engaged and which is regularly
engaged as part of its business in rendering fairness opinions, which
concludes that the proposed transaction is fair to Ranger except:
(i) Entering into an agreement to pay compensation to Xxxxxxx X. Xxxxxxx
at the rate of $10,000 per month for services to be rendered to Ranger
on a substantially full- time basis; and
(ii) Performing its obligations under the Henryetta Joint Venture
Agreement, including any drilling opportunities that may be presented
to the joint venturers, on the same terms as offered to the other
joint venturers (with a promotional interest to the manager of the
joint venture not less favorable to the joint venture than paid to the
manager in connection with the first four xxxxx described in the Offer
to Purchase), and adding property to the joint venture for additional
exploratory or development drilling, provided that (subject to a
promotional interest to the manager as described above) all joint
venturers are treated in accordance with the joint venture agreement.
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7 CONDITIONS.
7.1 Mutual Conditions. The obligations of the parties hereto to complete
the Merger shall be subject to the satisfaction at or prior to the Closing Date
of the following conditions:
(a) No temporary restraining order, preliminary or permanent injunction or
other order or decree which prevents the completion of the Merger shall
have been issued and remain in effect, and no statute, rule or regulation
shall have been enacted by any Governmental Body which prevents the
completion of the Merger.
(b) No Proceeding shall be instituted by any Governmental Body which seeks
to prevent completion of the Merger or seeking material damages in
connection with the Contemplated Transactions which continues to be
outstanding.
(c) Shareholder Approval shall have been obtained.
(d) The Tender Offer shall have been completed by, or will be completed at,
the Effective Time.
(e) Xxxxxxxxx shall have received a written opinion from its tax counsel in
the form and substance reasonably satisfactory to it, to the effect that
the Merger will constitute a reorganization within the meaning of Section
368(a) of the Code and such opinion shall not have been withdrawn.
7.2 Conditions to Obligations of BEI Acquisition and Ranger. The
obligations of BEI Acquisition and Ranger to complete and effect the Merger
shall be subject to the satisfaction at or prior to the Closing Date of each of
the following conditions, any of which may be waived, in writing, exclusively by
Ranger:
(a) Each representation and warranty of Xxxxxxxxx contained in this
Agreement
(i) shall have been true and correct as of the date hereof and
(ii) shall be true and correct on and as of the Closing Date with the same
force and effect as if made on and as of the Closing Date
except (1) for such failures to be true and correct that do not in the
aggregate constitute a Xxxxxxxxx Material Adverse Effect; and (2) for those
representations and warranties which address matters only as of a
particular date (which representations shall have been true and correct
(subject to the qualifications set forth in the preceding clause (1)) as of
such particular date) (it being understood that, for purposes of
determining the accuracy of such representations and warranties, (i) all
"Xxxxxxxxx Material Adverse Effect" qualifications and other qualifications
based on the word "material" or similar phrases contained in such
representations and warranties shall be disregarded and (ii) any update of
or modification to Xxxxxxxxx Disclosure Schedule made or purported to have
been made after the date of this Agreement shall be disregarded).
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(b) Xxxxxxxxx shall have performed in all material respects each obligation
and agreement and shall have complied in all material respects with each
covenant to be performed and complied with by such parties hereunder prior
to the Effective Time.
(c) Since the date of this Agreement, there shall not have been any
Xxxxxxxxx Material Adverse Effect or any material adverse effect on the
ability of Xxxxxxxxx to complete the Contemplated Transactions.
(d) Xxxxxxxxx shall have furnished BEI Acquisition and Ranger with a
certificate dated the Closing Date signed on behalf of it by its President
to the effect that the conditions set forth in Sections 7.2(a), (b), and
(c) have been satisfied.
(e) BEI Acquisition and Ranger shall have received a customary legal
opinion of counsel to Xxxxxxxxx, dated the Closing Date, in form reasonably
acceptable to Ranger to the effect that this Agreement has been duly
authorized, executed and delivered by Ranger, that Shareholder Approval has
been obtained and that the Merger has become effective.
(f) Xxxxxxxxx shall have obtained all material consents, waivers,
approvals, authorizations or orders, and made all filings in connection
with the authorization, execution and delivery of this Agreement by
Xxxxxxxxx and the completion by each of the Contemplated Transactions.
(g) Xxxxxxxxx shall have fully complied with all of their obligations and
covenants set forth in Section 6 above.
(h) Ranger shall be reasonably satisfied that the issuance of shares of
Ranger Common Stock to be issued in the Merger, as provided in Section 2.5,
is exempt from registration under the Securities Act and applicable state
securities laws.
7.3 Conditions to Obligations of Xxxxxxxxx. The obligations of Xxxxxxxxx to
complete and effect the Merger shall be subject to the satisfaction at or prior
to the Closing Date of each of the following conditions, any of which may be
waived, in writing, exclusively by Xxxxxxxxx:
(a) Each representation and warranty of Ranger and BEI Acquisition
contained in this Agreement
(i) shall have been true and correct as of the date hereof and
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(ii) shall be true and correct on and as of the Closing Date with the same
force and effect as if made on and as of the Closing Date
except (1) for such failures to be true and correct that do not in the
aggregate constitute a Ranger Material Adverse Effect; and (2) for
those representations and warranties which address matters only as of
a particular date (which representations shall have been true and
correct (subject to the qualifications set forth in the preceding
clause (1)) as of such particular date) (it being understood that, for
purposes of determining the accuracy of such representations and
warranties, (i) all "Ranger Material Adverse Effect" qualifications
and other qualifications based on the word "material" or similar
phrases contained in such representations and warranties shall be
disregarded and (ii) any update of or modification to Ranger
Disclosure Schedule made or purported to have been made after the date
of this Agreement shall be disregarded).
(b) Ranger and BEI Acquisition shall have each performed in all
material respects each obligation and agreement and shall have
complied in all material respects with each covenant to be performed
and complied with by such parties hereunder prior to the Effective
Time.
(c) Since the date of this Agreement, there shall not have been any
Ranger Material Adverse Effect or any material adverse effect on the
ability of Ranger or BEI Acquisition to complete the Contemplated
Transactions.
(d) Ranger shall have furnished Xxxxxxxxx with a certificate dated the
Closing Date signed on behalf of it by its President to the effect
that the conditions set forth in Sections 7.3(a), (b), and (c) have
been satisfied.
(e) Xxxxxxxxx shall have received a customary legal opinion, dated the
Closing Date, of counsel to Ranger, in form reasonably acceptable to
Xxxxxxxxx to the effect that this Agreement has been duly authorized,
executed and delivered by Xxxxxxxxx, and that the shares of Ranger
Common Stock to be issued in the Merger, as provided in Section 2.5,
have been duly authorized and, when so issued, will be validly issued,
fully paid and non- assessable.
(f) Ranger shall have obtained all material consents, waivers,
approvals, authorizations or orders, and made all filings in
connection with the authorization, execution and delivery of this
Agreement by Xxxxxxxxx and the completion by each of the Contemplated
Transactions.
(g) Ranger shall have fully complied with all of their obligations and
covenants set forth in Section 6 above.
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8 TERMINATION.
8.1 Termination. This Agreement may be terminated at any time prior to the
Effective Time:
(a) By mutual written consent duly authorized by the Boards of Directors of
Ranger and Xxxxxxxxx;
(b) By either Xxxxxxxxx or Ranger if the Merger shall not have been
completed by March 31, 2001, for any reason; provided, however, that the
right to terminate this Agreement under this Section 8.1(b) shall not be
available to any party whose action or failure to act has been a principal
cause of or resulted in the failure of the Merger to occur on or before
such date and such action or failure to act constitutes a breach of this
Agreement;
(c) By either Xxxxxxxxx or Ranger if a Governmental Body shall have issued
an order, decree or ruling or taken any other action, in any case having
the effect of permanently restraining, enjoining or otherwise prohibiting
the Merger, which order, decree, ruling or other action is final and
nonappealable;
(d) By Xxxxxxxxx, upon a breach of any representation, warranty, covenant
or agreement on the part of Ranger set forth in this Agreement, or if any
representation or warranty of Ranger shall have become untrue, in either
case such that the conditions set forth in Section 7.3(a), (b), or (c)
would not be satisfied as of the time of such breach or as of the time such
representation or warranty shall have become untrue, provided, that if such
inaccuracy in Ranger's representations and warranties or breach by Ranger
is curable by Ranger, then Xxxxxxxxx may not terminate this Agreement under
this Section 8.1(d) for 30 days after delivery of written notice from
Xxxxxxxxx to Ranger of such breach, provided Ranger continues to exercise
best efforts to cure such breach (it being understood that Xxxxxxxxx may
not terminate this Agreement pursuant to this paragraph 8.1(d) if such
breach by Ranger is cured during such 30 day period);
(e) By Ranger, upon a breach of any representation, warranty, covenant or
agreement on the part of Xxxxxxxxx set forth in this Agreement, or if any
representation or warranty of Xxxxxxxxx shall have become untrue, in either
case such that the conditions set forth in Section 7.2.(a), (b), or (c)
would not be satisfied as of the time of such breach or as of the time such
representation or warranty shall have become untrue, provided, that if such
inaccuracy in Xxxxxxxxx'x representations and warranties or breach by
Xxxxxxxxx is curable by Xxxxxxxxx, then Ranger may not terminate this
Agreement under this Section 8.1(e) for 30 days after delivery of written
notice from Ranger to Xxxxxxxxx of such breach, provided Xxxxxxxxx
continues to exercise best efforts to cure such breach (it being understood
that Ranger may not terminate this Agreement pursuant to this paragraph
8.1(e) if such breach by Xxxxxxxxx is cured during such 30 day period);
(f) By Ranger, if it shall have received an Acquisition Proposal (other
than from an Affiliate of Ranger), and (i) Ranger's Board of Directors
determines (1) in its good faith judgment that such Acquisition Transaction
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proposal represents a more favorable financial alternative to Xxxxxxxxx'x
stockholders than the Merger and (2) after consultation with outside legal
counsel, determines in good faith that failure to accept such Acquisition
Proposal would be reasonably expected to be a breach of, or would be
inconsistent with, the Board of Directors' fiduciary duties under
applicable law, provided that Ranger has complied with its agreements in
Section 5.1, including payment of the amount referred to in Section 5.1(c).
8.2 Notice of Termination; Effect of Termination. Any termination of this
Agreement under Section 8.1. above will be effective immediately upon the
delivery of written notice of the terminating party to the other parties hereto
(or such later time as may be required by Section 8.1.). In the event of the
termination of this agreement as provided in Section 8.2., this Agreement shall
be of no further force or effect, except (i) as set forth in this Section 8.2.,
Section 6.1, Section 8.3, and Section 9, each of which shall survive the
termination of this Agreement and (ii) nothing herein shall relieve any party
from liability for fraud in connection with, or any willful breach of, this
Agreement.
8.3 Fees and Expenses. All fees and expenses incurred in connection with
this Agreement and the Contemplated Transactions shall be paid by the party
incurring such expenses whether or not the Merger is completed; provided,
however, that Ranger and Xxxxxxxxx shall share equally all fees and expenses,
other than attorneys' and accountants' fees and expenses, incurred in relation
to the printing and filing of the tender offer statement (including any
preliminary materials related thereto) and any amendments or supplements
thereto.
8.4 Amendment. Subject to applicable law, this Agreement may be amended by
the parties hereto at any time by execution of an instrument in writing signed
on behalf of each of Ranger, BEI Acquisition and Xxxxxxxxx.
8.5 Extension; Waiver. At any time prior to the Effective Time, any party
hereto may, to the extent legally allowed,
(a) extend the time for the performance of any of the obligations or other
acts of the other parties hereto;
(b) waive any inaccuracies in the representations and warranties made to
such party contained herein or in any document delivered pursuant hereto;
and
(c) waive compliance with any of the agreements or conditions for the
benefit of such party contained herein.
(d) Any agreement on the part of a party hereto to any such extension or
waiver shall be valid only if set forth in an instrument in writing signed
on behalf of such party. Delay in exercising any right under this Agreement
shall not constitute a waiver of such right.
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9 MISCELLANEOUS.
9.1 Survival of Representations and Warranties. The representations and
warranties of Xxxxxxxxx, Ranger and BEI Acquisition contained in this Agreement
shall terminate at the Effective Time, and only the covenants that by their
terms survive the Effective Time shall survive the Effective Time.
9.2 Notices. Except as otherwise set forth herein, all notices given in
connection with this Agreement shall be in writing and shall be delivered either
by personal delivery, by telecopy or similar facsimile means, by certified or
registered mail, return receipt requested, or by express courier or delivery
service, addressed to the parties hereto at the following addresses:
Xxxxxxxxx: Xxxxxxxxx Enterprises, Inc.
c/o Xxxxxxx X. Xxxxxxx
0000 00xx Xxx Xxxxx
Xx. Xxxxxxxxxx, XX 00000
Telephone No.: (000) 000-0000
Telecopy No.: (000) 000-0000
With a copy to: Norton Xxxxxxxx, P.C.
0000 XXX Xxxxxxx
Xxx Xxxxxxxx, Xxxxx 000
Xxxxxxxxx Xxxxxxx, XX 00000
Attention: Xxxxxxx X. Xxxxxxxx,
Xx., Esq.
Telephone No.: (000) 000-0000
Telecopy No.: (000) 000-0000
BEI Acquisition and Ranger: Ranger Industries, Inc. and BEI
Acquisition Corporation
Xxx Xxxxxxx Xxxxx
Xxxxxxxxxx, XX 00000
Attention: President
Telephone No.: (000) 000-0000
Telecopy No.: (000) 000-0000
With a copy to: Xxxx Xxxxxxxx, Esq.
Paul, Hastings, Xxxxxxxx &
Xxxxxx LLP
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Telephone No.: (000) 000-0000
Telecopy No.: (000) 000-0000
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or at such other address and number as either party shall have previously
designated by written notice given to the other party in the manner hereinabove
set forth. Notices shall be deemed given (i) when received, if sent by telecopy
or similar facsimile means (confirmation of such receipt by confirmed facsimile
transmission being deemed receipt of communications sent by telecopy or other
facsimile means) and (ii) when delivered and receipted for (or upon the date of
attempted delivery where delivery is refused), if hand-delivered, sent by
express courier or delivery service, or sent by certified or registered mail,
return receipt requested.
9.3 Further Assurances. The parties hereto agree to furnish upon request to
each other such further information, to execute and deliver to each other such
other documents, and to do such other acts and things, all as the other party
hereto may at any time reasonably request for the purpose of carrying out the
intent of this Agreement and the documents referred to herein.
9.4 Waiver. The rights and remedies of the parties to this Agreement are
cumulative and not alternative. Neither the failure nor any delay on the part of
any party in exercising any right, power or privilege under this Agreement or
the documents referred to herein shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right, power or privilege preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege. To the maximum extent permitted by applicable law, no claim or
right arising out of this Agreement or the documents referred to herein can be
discharged by one party hereto, in whole or in part, by a waiver or renunciation
of the claim or right unless in writing signed by the other party hereto; no
waiver which may be given by a party hereto shall be applicable except in the
specific instance for which it is given; and no notice to or demand on one party
hereto shall be deemed to be a waiver of any obligation of such party or of the
right of the party giving such notice or demand to take further action without
notice or demand as provided in this Agreement or the documents referred to
herein.
9.5 Entire Agreement and Modification. This Agreement, including all
exhibits and schedules hereto, are intended by the parties to this Agreement as
a final expression of their agreement with respect to the subject matter hereof,
and are intended as a complete and exclusive statement of the terms and
conditions of that agreement. This Agreement may not be modified, rescinded or
terminated orally, and no modification, rescission, termination or attempted
waiver of any of the provisions hereof (including this Section) shall be valid
unless in writing and signed by the party against whom the same is sought to be
enforced.
9.6 Assignments, Successors and No Third-Party Rights. This Agreement shall
apply to and be binding in all respect upon, and shall inure to the benefit of,
the successors and assigns of the parties hereto. Nothing expressed or referred
to in this Agreement is intended or shall be construed to give any person or
entity other than the parties to this Agreement any legal or equitable right,
remedy or claim under or with respect to this Agreement, or any provision
hereof, it being the intention of the parties hereto that this Agreement and all
of its provisionsand conditions are for the sole and exclusive benefit of the
parties to this Agreement, their successors and assigns, and for the benefit of
no other person or entity.
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9.7 Section Headings, Construction. The headings of articles and sections
contained in this Agreement are provided for convenience only. They form no part
of this Agreement and shall not affect its construction or interpretation. All
references to articles and sections in this Agreement refer to the corresponding
articles and sections of this Agreement. All words used herein shall be
construed to be of such gender or number as the circumstances require. Unless
otherwise specifically noted, the words "herein," "hereof," "hereby,"
"hereinabove," "hereinbelow," "hereunder," and words of similar import, refer to
this Agreement as a whole and not to any particular section, subsection,
paragraph, clause or other subdivision hereof.
9.8 Time of Essence. With regard to all time periods set forth or referred
to in this Agreement, time is of the essence.
9.9 Governing Law. Except to the extent mandatorily governed by the laws of
the State of Connecticut, this Agreement shall be governed by and construed in
accordance with the laws of the State of Florida, regardless of the laws that
might otherwise govern under applicable principles of conflicts of law thereof.
9.10 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original copy of this
Agreement, and all of which, when taken together, shall be deemed to constitute,
but one and the same agreement.
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SIGNATURES
IN WITNESS WHEREOF, Xxxxxxxxx, BEI Acquisition and Ranger, by their duly
authorized officers, have each caused this Agreement to be executed as of the
date first written above.
Ranger:
Ranger Industries, Inc.
By:
---------------------------------
Name: Xxxxxx Xxxxxx
Title: President
BEI Acquisition:
BEI Acquisition Corporation
By:
---------------------------------
Name: Xxxxxx Xxxxxx
Title: President
Xxxxxxxxx:
Xxxxxxxxx Enterprises, Inc.
By:
---------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: President
-42-
Amendment
to
Agreement and Plan of Merger and Reorganization
THIS AMENDMENT is made as of this 23rd day of January 2001 to that certain
Agreement and Plan of Merger and Reorganization dated as of December 29, 2000 by
and among Xxxxxxxxx Enterprises, Inc., a Florida corporation ("Xxxxxxxxx"),
Ranger Industries, Inc., a Connecticut corporation ("Ranger"), and BEI
Acquisition Corporation, a Florida corporation ("BEI") (the "Merger Agreement").
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which both parties hereby acknowledge and agree as follows:
1. All capitalized terms used in this Amendment have the meanings set forth in
the Merger Agreement unless otherwise defined in this Amendment.
2. The last sentence of the introductory paragraph to Section 6.1(d) is hereby
deleted in its entirety and the following shall be inserted in its place:
"The parties agree to complete the Tender Offer immediately after the
Effective Time; the parties agree that the Tender Offer will not be
completed unless the Merger is completed prior thereto."
3. Section 6.1(d)(v) is hereby deleted in its entirety, and the following
shall be inserted in its place:
"The Tender Offer will be completed immediately after the Effective Time."
4. Section 6.4 is hereby amended to add the following subsection (e):
"The parties hereto agree to complete the Tender Offer immediately after
the Effective Time."
5. Section 7.1(d) is hereby deleted in its entirety, and the following shall
be inserted in its place:
"[INTENTIONALLY OMITTED.]"
6. This Amendment may be executed in one or more counterparts, each of which
shall be deemed to be an original copy of this Amendment, and all of which,
when taken together, shall be deemed to constitute, but one and the same
agreement.
7. The Merger Agreement remains in full force and effect except as
specifically modified hereby.
8. The boards of directors of Xxxxxxxxx, Ranger, and BEI have each approved
and declared advisable this Amendment, and have approved the Merger and the
other transactions contemplated by the Merger Agreement.
IN WITNESS WHEREOF, the Xxxxxxxxx, Ranger, and BEI, by their duly
authorized officers, have each caused this Amendment to be executed as of the
date first written above.
RANGER INDUSTRIES, INC.
By:
----------------------------------
Xxxx X. Xxxxxxxx, Secretary
BEI ACQUISITION CORPORATION
By:
----------------------------------
Xxxx X. Xxxxxxxx, Secretary
XXXXXXXXX ENTERPRISES, INC.
By:
----------------------------------
Xxxxxxx X. Xxxxxxx, President