Exhibit 2.1
AGREEMENT AND PLAN OF MERGER
THIS AGREEMENT AND PLAN OF MERGER dated as of March 28, 2003
(the "Agreement"), by and between Xxxxxxx Holding, Inc., a Delaware corporation
("Buyer"), CVS Merger Co., a Delaware corporation and a wholly-owned subsidiary
of Buyer ("Transitory Subsidiary"), and CVS Holdings, Inc., a Delaware
corporation ("Target"). Buyer, Transitory Subsidiary, and Target are sometimes
collectively referred to herein as the "Constituent Corporations."
WITNESSETH:
WHEREAS, the capitalization of Buyer, Transitory Subsidiary,
and Target is set forth in Schedule A attached hereto.
WHEREAS, this Agreement contemplates a transaction in which
Buyer will acquire all of Target's outstanding stock in exchange for common
stock of Buyer through a reverse subsidiary merger of Buyer's Transitory
Subsidiary with and into Target;
WHEREAS, the respective Boards of Directors of the Constituent
Corporations deem it advisable that Transitory Subsidiary merge with and into
Target and that Target continue as the surviving corporation, upon the terms set
forth herein and in accordance with the laws of the State of Delaware (the
"Merger"), and that the shares of Transitory Subsidiary be converted upon
consummation of the Merger as set forth herein; and
WHEREAS, the respective Boards of Directors of the Constituent
Corporations have, by resolutions duly approved and adopted the provisions of
this Agreement, as the plan of merger required by Section 251 of the General
Corporation Law of the State of Delaware (the "Delaware Law").
NOW, THEREFORE, the parties hereto agree as follows:
ARTICLE 1
EFFECT OF THE MERGER; MANNER AND
BASIS OF CONVERTING SHARES.
Section 1.1. At the Effective Time (as hereinafter defined),
Transitory Subsidiary will merge with and into Target, and the separate
corporate existence of Transitory Subsidiary (except as may be continued by
operation of law) shall cease. Target shall be the corporation surviving the
Merger (the "Surviving Corporation").
Section 1.2. At and as of the Effective Time, (i) each Target
share of Class A Common shall be converted into the right to receive one (1)
share of Buyer's Class A Common, (ii) each Target share of Class B Common shall
be converted into the right to receive one (1) share of Buyer's Class B Common,
(iii) each Target share of Class C Common shall be
converted into the right to receive one (1) share of Buyer's Class C Common,
(iv) each Target share of Class D-1 Common shall be converted into the right to
receive one (1) share of Buyer's Class D-1 Common, (v) each Target share of
Class D-2 Common shall be converted into the right to receive one (1) share of
Buyer's Class D-2 Common, and (vi) each Target share of Class E Common shall be
converted into the right to receive one (1) share of Buyer's Class E Common;
accordingly, each Target shareholder's common stock in Target shall be converted
into Buyer's common stock in the number and class of stock as indicated on
Schedule B attached hereto (the "Merger Consideration").
Section 1.3 At and as of the Effective Time, each share of
Transitory Subsidiary's common stock, $0.01 par value per share, shall be
converted into one share of Surviving Corporation's common stock, $0.01 par
value per share. At and as of the Effective Time, the Surviving Corporation
shall issue shares of common stock, $0.01 par value per share, to Buyer in
consideration for Buyer's issuing its common stock to former stockholders of
Target pursuant to Section 1.2. The number of shares of Surviving Corporation's
common stock issued to Buyer pursuant to this Section 1.3 shall be equal to the
number of Target common shares outstanding immediately before the Effective Time
(other than such Target common stock held in Target's treasury, immediately
before the effective time, which shall be cancelled).
Section 1.4. At and as of the Effective Time, the Surviving
Corporation shall possess all the rights, privileges, immunities and franchises,
of both a public and private nature, and be subject to all the duties and
liabilities of Transitory Subsidiary; and all rights, privileges, immunities and
franchises of Transitory Subsidiary and all property, real, personal and mixed,
and all debts due on whatever accounts, including subscriptions to shares, and
all other choses in action, and all and every other interest, of or belonging to
Transitory Subsidiary shall be taken and deemed to be transferred to and vested
in the Surviving Corporation without further act or deed; and title to any real
estate, or any interest therein, vested in Transitory Subsidiary shall not
revert or be in any way impaired by reason of the Merger; and the Surviving
Corporation shall thenceforth be responsible and liable for all liabilities and
obligations of Transitory Subsidiary and any claim existing or action or
proceeding pending by or against Transitory Subsidiary may be prosecuted to
judgment as if the Merger had not taken place or the Surviving Corporation may
be substituted in its place; all with the effect set forth in Section 251 of the
Delaware Law. The authority of the officers of Transitory Subsidiary shall
continue with respect to the due execution in the name of each respective
corporation of tax returns, instruments of transfer or conveyance and other
documents where the execution thereof is required or convenient to comply with
any provision of the Delaware Law or any contract to which Transitory Subsidiary
was a party or this Agreement.
Section 1.5. The name of the Surviving Corporation shall be
"CVS Holdings, Inc."
ARTICLE 2
EFFECTIVE TIME.
Section 2.1. Upon fulfillment or waiver of the conditions
specified in Article 4 hereof, Target shall cause a Certificate of Merger to be
executed and delivered for filing to the
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Secretary of State of the State of Delaware, all as provided in and in
accordance with Section 251 of the Delaware Law (the "Target Certificate of
Merger").
Section 2.2. The Merger shall become effective on March __,
2003, the date of filing of the Target Certificate of Merger and the Transitory
Subsidiary Certificate of Merger, as provided by applicable law (the "Effective
Time").
ARTICLE 3
CERTIFICATE OF INCORPORATION AND
BY-LAWS; BOARD OF DIRECTORS.
Section 3.1. The Certificate of Incorporation of Surviving
Corporation shall be the Certificate of Incorporation of CVS Holdings, Inc.,
attached hereto as Exhibit A.
Section 3.2. The By-laws of Surviving Corporation shall be
amended and restated at and as of the Effective Time to read as did the Bylaws
of Transitory Subsidiary immediately prior to the Effective Time (except that
the name of the Surviving Corporation shall remain unchanged).
Section 3.3. The directors and officers of Transitory
Subsidiary shall become the directors and officers of Surviving Corporation at
and as of the Effective Time (retaining their respective positions and terms of
office).
ARTICLE 4
CONDITIONS.
Section 4.1. The respective obligations of each of Constituent
Corporations to consummate the Merger under this Agreement is subject to the
fulfillment of the following conditions:
(a) At the option of Transitory Subsidiary, Buyer, or Target, any third
party consents which are required in order to avoid a breach, violation,
conflict or default under any agreement, contract, statute, rule or regulation
shall have been obtained;
(b) There shall have been no law, statute, rule or regulation, domestic
or foreign, enacted or promulgated which would make consummation of the Merger
illegal; and
(c) No preliminary or permanent injunction or other order by any
federal or state court of competent jurisdiction that makes illegal or otherwise
prevents the consummation of the Merger shall have been issued and shall remain
in effect.
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ARTICLE 5
MISCELLANEOUS
Section 5.1. This Agreement may be executed in one or more
counterparts, all of which taken together shall constitute one and the same
instrument.
Section 5.2. The internal law, not the law of conflicts, of
the State of Delaware will govern all questions concerning the construction,
validity and interpretation of this Agreement.
Section 5.3. This Agreement is not intended to confer upon any
person (other than the parties hereto and their respective successors and
assigns) any rights or remedies hereunder or by reason hereof; provided however,
that the provisions in Section 1.2 above concerning payment of the Merger
Consideration are intended for the benefit of Target's shareholders
Section 5.4 The Schedules and Exhibits identified in this
Agreement are incorporated herein by reference and made a part hereof.
* * * *
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IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be signed by their respective officers thereunto duly authorized,
all as of the day and year first written above.
XXXXXXX HOLDING, INC.
By: /s/ Xxxxxx X. Xxxxxx
-------------------------------
Name: Xxxxxx X. Xxxxxx
Title: Vice President and
Assistant Secretary
CVS HOLDINGS, INC.
By: /s/ Xxxxxx X. Xxxxxx
-------------------------------
Name: Xxxxxx X. Xxxxxx
Title: Vice President and
Assistant Secretary
CVS MERGER CO.
By:
-------------------------------
Name: Xxxxxx X. Xxxxxx
Title:
[Signature Page to Agreement and Plan of Merger]
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EXHIBIT A
CERTIFICATE OF INCORPORATION
OF
CVS HOLDINGS, INC.
ARTICLE ONE
The name of the corporation is CVS Holdings, Inc.
ARTICLE TWO
The address of the corporation's registered office in the
State of Delaware is 0 Xxxx Xxxxxxxxxx Xxxxxx, Xxxxx 0X, Xxxx xx Xxxxx, Xxxxxx
of Xxxx, 00000. The name of its registered agent at such address is National
Registered Agents, Inc.
ARTICLE THREE
The nature of the business or purposes to be conducted or
promoted is to engage in any lawful act or activity for which corporations may
be organized under the General Corporation Law of the State of Delaware.
ARTICLE FOUR
The total number of shares of stock which the corporation has
authority to issue is 125,000 shares of Common Stock, with a par value of $.01
per share.
ARTICLE FIVE
The corporation is to have perpetual existence.
ARTICLE SIX
In furtherance and not in limitation of the powers conferred
by statute, the board of directors of the corporation is expressly authorized to
make, alter or repeal the by-laws of the corporation.
ARTICLE SEVEN
Meetings of stockholders may be held within or without the
State of Delaware, as the by-laws of the corporation may provide. The books of
the corporation may be kept outside the State of Delaware at such place or
places as may be designated from time to time by the board of directors or in
the by-laws of the corporation. Election of directors need not be by written
ballot unless the by-laws of the corporation so provide.
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ARTICLE EIGHT
To the fullest extent permitted by the General Corporation Law
of the State of Delaware as the same exists or may hereafter be amended, a
director of this corporation shall not be liable to the corporation or its
stockholders for monetary damages for a breach of fiduciary duty as a director.
Any repeal or modification of this ARTICLE NINE shall not adversely affect any
right or protection of a director of the corporation existing at the time of
such repeal or modification.
ARTICLE NINE
The corporation expressly elects not to be governed by Section
203 of the General Corporation Law of the State of Delaware.
ARTICLE TEN
The corporation reserves the right to amend, alter, change or
repeal any provision contained in this certificate of incorporation in the
manner now or hereafter prescribed herein and by the laws of the State of
Delaware, and all rights conferred upon stockholders herein are granted subject
to this reservation.
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SCHEDULE A
CAPITALIZATION OF BUYER, TARGET,
AND TRANSITORY SUBSIDIARY.
XXXXXXX HOLDING, INC.
AUTHORIZED, PAR VALUE ISSUED AND
ITEM CLASS OF STOCK $0.01 PER SHARE OUTSTANDING
---- -------------- --------------- -----------
1 Class A Common 75,000 4,051
2 Class B Common 150,000 71,296
3 Class C Common 40,000 17,824
4 Class D-1 Common 125,000 50,371
5 Class D-2 Common 25,000 0
6 Class E Common 25,000 12,593
CVS HOLDINGS, INC.
AUTHORIZED, PAR VALUE ISSUED AND
ITEM CLASS OF STOCK $0.01 PER SHARE OUTSTANDING
---- -------------- --------------- -----------
1 Class A Common 10,000 2,917
2 Class B Common 100,000 50,000
3 Class C Common 25,000 12,500
4 Class D-1 Common 60,000 29,074
5 Class D-2 Common 40,000 18,519
6 Class E Common 25,000 11,898
CVS MERGER CO.
AUTHORIZED, PAR VALUE ISSUED AND
ITEM CLASS OF STOCK $0.01 PER SHARE OUTSTANDING
---- -------------- --------------- -----------
1 Common 1,000 1,000
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SCHEDULE B
MERGER CONSIDERATION.
The following table provides the amount and class of Buyer common stock
that each Target shareholder shall receive as consideration in exchange for
its or his or her common stock in Target.
THE MERGER
CONSIDERATION
PRE-MERGER CVS PRE-MERGER POST CONVERSION SHAREHOLDER'S
HOLDINGS, INC. COMMON SHARES OF XXXXXXX HOLDING, INC. AGGREGATE STOCK IN
ITEM SHAREHOLDER CVS HOLDINGS, INC. COMMON STOCK XXXXXXX HOLDING, INC. *
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1 X. X. Xxxxxxx 1,166.70 Class A 1,166.70 Class A 2,666.57 Class A
-----------------------------------------------------------------------------------------------------------------------------------
2 Xxxxx X. Xxxx 350.00 Class A 350.00 Class A 755.10 Class A
-----------------------------------------------------------------------------------------------------------------------------------
3 Xxxx X. Read 291.70 Class A 291.70 Class A 696.80 Class A
-----------------------------------------------------------------------------------------------------------------------------------
4 J. Xxxx Xxxxxx 233.40 Class A 233.40 Class A 557.48 Class A
-----------------------------------------------------------------------------------------------------------------------------------
5 Xxxx X. Xxxxxx 116.70 Class A 116.70 Class A 278.74 Class A
-----------------------------------------------------------------------------------------------------------------------------------
6 Xxxxx X. Xxxx 116.70 Class A 116.70 Class A 278.74 Class A
-----------------------------------------------------------------------------------------------------------------------------------
7 Xxxxxx X. Xxxxxx 72.93 Class A 72.93 Class A 174.20 Class A
-----------------------------------------------------------------------------------------------------------------------------------
8 Xxxxxx X. Xxxxxx 72.93 Class A 72.93 Class A 101.28 Class A
-----------------------------------------------------------------------------------------------------------------------------------
9 Hidden Creek Industries 437.60 Class A 437.60 Class A 1,146.53 Class A
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10 Xxxx-Xxxxxx X. Xxxxxxx
and her successors in
trust, as Trustee of the
Xxxx-Xxxxxx X. Xxxxxxx
Revocable Trust under
Agreement dated November
12, 2001 58.35 Class A 58.35 Class A 139.37 Class A
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11 ONEX Advisor LLC 3,766.52 Class B 3,766.52 Class B 9,137.30 Class B
-----------------------------------------------------------------------------------------------------------------------------------
12 1170821 Ontario Inc. 145.77 Class B 145.77 Class B 353.63 Class B
-----------------------------------------------------------------------------------------------------------------------------------
13 1170809 Ontario Inc. 108.64 Class B 108.64 Class B 263.57 Class B
-----------------------------------------------------------------------------------------------------------------------------------
14 1170810 Ontario Inc. 207.17 Class B 207.17 Class B 502.58 Class B
-----------------------------------------------------------------------------------------------------------------------------------
15 1170812 Ontario Inc. 290.50 Class B 290.50 Class B 646.98 Class B
-----------------------------------------------------------------------------------------------------------------------------------
16 Kyzalea Company 40.50 Class B 40.50 Class B 98.25 Class B
-----------------------------------------------------------------------------------------------------------------------------------
17 1170697 Ontario Inc. 35.44 Class B 35.44 Class B 85.98 Class B
-----------------------------------------------------------------------------------------------------------------------------------
18 1170819 Ontario Inc. 35.44 Class B 35.44 Class B 85.98 Class B
-----------------------------------------------------------------------------------------------------------------------------------
19 1170698 Ontario Inc. 21.60 Class B 21.60 Class B 52.40 Class B
-----------------------------------------------------------------------------------------------------------------------------------
20 1301449 Ontario Inc. 33.55 Class B 33.55 Class B 81.38 Class B
-----------------------------------------------------------------------------------------------------------------------------------
21 1352536 Ontario Inc. 16.88 Class B 16.88 Class B 40.94 Class B
-----------------------------------------------------------------------------------------------------------------------------------
22 1376653 Ontario Inc. 6.75 Class B 6.75 Class B 16.37 Class B
-----------------------------------------------------------------------------------------------------------------------------------
23 1376654 Ontario Inc. 6.75 Class B 6.75 Class B 16.37 Class B
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24 1352537 Ontario Inc. 2.03 Class B 2.03 Class B 4.92 Class B
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THE MERGER
CONSIDERATION
PRE-MERGER CVS PRE-MERGER POST CONVERSION SHAREHOLDER'S
HOLDINGS, INC. COMMON SHARES OF XXXXXXX HOLDING, INC. AGGREGATE STOCK IN
ITEM SHAREHOLDER CVS HOLDINGS, INC. COMMON STOCK XXXXXXX HOLDING, INC. *
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25 Xxx Xxxxxxxxx 8.33 Class B 8.33 Class B 20.21 Class B
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26 3-G Investments Limited 250 Class B 250.00 Class B 606.48 Class B
-----------------------------------------------------------------------------------------------------------------------------------
27 Xxxxx Xxxxx 166.67 Class B 166.67 Class B 404.32 Class B
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28 Xxxxx Xxxx 25.00 Class B 25.00 Class B 60.65 Class B
-----------------------------------------------------------------------------------------------------------------------------------
29 J.W.E. Xxxxx 16.67 Class B 16.67 Class B 40.44 Class B
-----------------------------------------------------------------------------------------------------------------------------------
30 Xxxxxx Xxxxxxxx 83.33 Class B 83.33 Class B 202.16 Class B
-----------------------------------------------------------------------------------------------------------------------------------
31 1299039 Ontario Inc. 16.67 Class B 16.67 Class B 40.44 Class B
-----------------------------------------------------------------------------------------------------------------------------------
32 2668921 Manitoba Ltd. 50.00 Class B 50.00 Class B 121.30 Class B
-----------------------------------------------------------------------------------------------------------------------------------
33 CVS Partners, LP 709.41 Class B 709.41 Class B 709.41 Class B
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34 CVS Executive Investco LLC 3,046.05 Class B 3,046.05 Class B 3,046.05 Class B
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35 Onex Corporation 40,910.32 Class B 40,910.32 Class B 99,245.55 Class B
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36 J2R Partners VI 12,500 Class C 12,500 Class C 12,500.00 Class C
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37 Xxxxx Capital Partners
III Limited Partnership 15,447.10 Class D-1 15,447.10 Class D-1 27,860.00 Class D-1
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38 BCP III Affiliates Fund
Limited Partnership 3,089.40 Class D-1 3,089.40 Class D-1 5,572.40 Class D-1
-----------------------------------------------------------------------------------------------------------------------------------
39 BCP III Special
Affiliates Limited
Partnership 2,204.20 Class D-1 2,204.20 Class D-1 3,975.20 Class D-1
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40 Xxxxx Capital Partners II
Limited Partnership 4,675.10 Class D-1 4,675.10 Class D-1 5,811.10 Class D-1
-----------------------------------------------------------------------------------------------------------------------------------
41 BCP II Affiliates Fund
Limited Partnership 2,732.20 Class D-1 2,732.20 Class D-1 3,448.20 Class D-1
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00 Xxxxxxxx Xxxxxx Partners II 926.00 Class D-1 926.00 Class D-1 1,667.00 Class D-1
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43 Norwest Equity Partners
VII, LP 18,519.00 Class D-1 18,519.00 Class D-1 49,630.00 Class D-1
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44 J2R Partners VI 11,898.00 Class E 11,898.00 Class E 24,491.00 Class E
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* This column, entitled Shareholder's Aggregate Stock in Xxxxxxx Holding, Inc.
("Xxxxxxx"), contains each Shareholder's aggregate ownership of Xxxxxxx stock,
that is, the sum of any pre-merger holdings of Xxxxxxx stock and Xxxxxxx stock
received herein as Merger Consideration.
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