Sample Contracts - Agreement and Plans of Mergers - Accoona Corp., Skynet Communications Corp. and Zylonet Systems Inc.

AGREEMENT AND PLANS OF MERGERS

dated

March 15, 2006

by and among

Accoona Corp., a Delaware corporation,

as the Parent,

SN Acquisition Corp., a Delaware corporation,

ZS Acquisition Corp., a Delaware corporation,

as the Merger Subs,

Skynet Communications Corp.

a New York corporation,

Zylonet Systems Inc.

a New York corporation,

as the Companies,

the Shareholders named herein

and

Allen Benzaken,

as Representative

TABLE OF CONTENTS

			Page

ARTICLE I DEFINITIONS			1
	1.1.	Definitions	1

ARTICLE II THE CLOSINGS			8

	2.1.	Effective Time of the Mergers	8
	2.2.	Closings .	9
	2.3.	Effects of the Mergers.	9
	2.4.	Effect on Capital Stock	10
	2.5.	Computation of Merger Consideration	11
	2.6.	Procedure to Establish Net Profits, Indebtedness, Tangible Personal Property and Minimum Required EBITDA.	14

ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANIES AND SHAREHOLDERS			16

	3.1.	Corporate Existence and Power	16
	3.2.	Corporate Authorization.	16
	3.3.	Charter Documents; Legality	17
	3.4.	Capitalization and Ownership of the Companies	17
	3.5.	Subsidiaries	17
	3.6.	Affiliates	17
	3.7.	Assumed Names	18
	3.8.	Governmental Authorization	18
	3.9.	Consents	18
	3.10.	Financial Statements.	18
	3.11.	Accounts Receivable	20
	3.12.	Books and Records.	20
	3.13.	Absence of Certain Changes.	20
	3.14.	Real Property.	21
	3.15.	Tangible Personal Property.	21
	3.16.	Intellectual Property.	22
	3.17.	Inventory.	22
	3.18.	Suppliers and Business Relationships.	23
	3.19.	Litigation	24
	3.20.	Contracts.	24
	3.21.	Licenses and Permits	26
	3.22.	Compliance with Laws	26
	3.23.	Pre-payments	26
	3.24.	Employees	26
	3.25.	Compliance with Labor Laws and Agreements	26
	3.26.	Pension and Benefit Plans	27
	3.27.	Employment Matters	27
	3.28.	Tax Matters	28
	3.29.	Finders’ Fees	28
	3.30.	Investment Representations.	29

			Page

	3.31.	Software.	33
	3.32.	Business Operations; Servers.	34
	3.33.	Powers of Attorney and Suretyships	35
	3.34.	Other Information	35

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PARENT			35

	4.1.	Due Incorporation	35
	4.2.	Corporate Authorization	35
	4.3.	Governmental Authorization	36
	4.4.	No Violation	36
	4.5.	Charter Documents	36
	4.6.	Consents	36
	4.7.	Issuance of Parent Class C Common Stock	37
	4.8.	Finders’ Fees	37
	4.9.	Other Information	37

ARTICLE V COVENANTS OF THE COMPANIES AND THE SHAREHOLDERS PENDING CLOSING			37

	5.1.	Conduct of the Business	37
	5.2.	Access to Information.	40
	5.3.	Notices of Certain Events	40

ARTICLE VI COVENANTS OF THE COMPANIES AND THE SHAREHOLDERS			40

	6.1.	Confidentiality	40
	6.2.	Conduct of the Business	41
	6.3.	Exclusivity	42
	6.4.	Reporting and Compliance With Law	42
	6.5.	Injunctive Relief	42
	6.6.	Covenants with respect to Parent Class C Common Stock.	43

ARTICLE VII COVENANTS OF ALL PARTIES HERETO			45

	7.1.	Best Efforts; Further Assurances	45
	7.2.	Confidentiality of Transaction	45
	7.3.	Best Efforts to Obtain Consents	45
	7.4.	Tax Matters.	46

ARTICLE VIII CONDITIONS TO CLOSING			47

	8.1.	Condition to the Obligations of Parent, Merger Subs and the Companies	47
	8.2.	Conditions to Obligations of Parent and Merger Subs	48
	8.3.	Conditions to Obligations of Companies	50

			Page

ARTICLE IX RELIANCE ON REPRESENTATIONS AND WARRANTIES			51

	9.1.	Reliance on Representations and Warranties of each Company and the Shareholders	51
	9.2.	Reliance on Representations and Warranties of Parent	51

ARTICLE X INDEMNIFICATION			52

	10.1.	Indemnification of Parent, Merger Subs and Surviving Corporations.	52
	10.2.	Indemnification of Shareholders	53
	10.3.	Procedure	53
	10.4.	Periodic Payments	55
	10.5.	Right of Set Off	55
	10.6.	Payment of Indemnification by Shareholders	55
	10.7.	Insurance	56
	10.8.	Survival of Indemnification Rights	56

ARTICLE XI DISPUTE RESOLUTION			56

	11.1.	Arbitration.	56
	11.2.	Waiver of Jury Trial; Exemplary Damages	58
	11.3.	Attorneys' Fees	58

ARTICLE XII TERMINATION			58

	12.1.	Termination Without Default	58
	12.2.	Termination Upon Default.	58
	12.3.	Survival	59

ARTICLE XIII MISCELLANEOUS			59

	13.1.	Notices	59
	13.2.	Amendments; No Waivers.	60
	13.3.	Ambiguities	60
	13.4.	Publicity	60

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