Agreement and Plan of Merger (2006)Full Document 

Start of Preview
                          AGREEMENT AND PLAN OF MERGER

                                  BY AND AMONG

                      GLOBAL DIVERSIFIED ACQUISITION CORP.

                              GD ACQUISITION CORP.

                           WESTVALE CONSULTANTS, LTD.
                                       AND

                            MK SECURE SOLUTIONS, LTD.










                            DATED: FEBRUARY 20, 2004

TABLE OF CONTENTS ----------------- ARTICLE I THE MERGER..............................................................................................1 1.1 The Merger......................................................................................1 1.2 Conversion of Stock; Conversion of Outstanding Warrants.........................................2 1.3 Merger Consideration............................................................................4 1.4 Additional Rights; Taking of Necessary Action; Further Action...................................4 1.5 No Further Rights or Transfers..................................................................5 ARTICLE II THE CLOSING............................................................................................5 2.1 Closing Date....................................................................................5 2.2 Closing Transactions............................................................................5 ARTICLE III CERTAIN CORPORATE ACTION..............................................................................7 3.1 MailKey Corporate Action; MailKey Shareholder Consent...........................................7 3.2 Acquiror and Sub Corporate Action...............................................................8 ARTICLE IV REPRESENTATIONS AND WARRANTIES.........................................................................8 4.1 Representations and Warranties of MailKey.......................................................8 4.2 Representations and Warranties of Acquiror and Sub.............................................17 ARTICLE V AGREEMENTS OF THE PARTIES..............................................................................22 5.1 Access to Information..........................................................................22 5.2 Confidentiality; No Solicitation...............................................................22 5.3 Interim Operations.............................................................................25 5.4 Intentionally Omitted..........................................................................27 5.5 All Reasonable Efforts.........................................................................27 5.6 Public Announcements...........................................................................28 5.7 Notification of Certain Matters................................................................28 5.8 Expenses.......................................................................................28 5.9 Intentionally Omitted..........................................................................28 5.10 Intentionally Omitted..........................................................................28 5.11 Issuance of Common Stock.......................................................................28 5.12 Prohibition on Trading in Acquiror Securities..................................................28 5.13 Board of Directors.............................................................................29 5.14 Acknowledgment of Approvals....................................................................29 5.15 MailKey Financial Statements...................................................................29 5.16 Certain Post-Closing Corporate Actions.........................................................30 5.17 Production of Schedules and Exhibits...........................................................30 ARTICLE VI CONDITIONS TO CONSUMMATION OF THE MERGER..............................................................30 6.1 Conditions to Obligations of MailKey...........................................................30
i
6.2 Conditions to Acquiror's Obligations...........................................................31 ARTICLE VII INDEMNIFICATION......................................................................................33 7.1 Indemnification by the Shareholder.............................................................33 7.2 Indemnification Procedures for Third-Party Claim...............................................33 7.3 Indemnification Procedures for Non-Third Party Claims..........................................34 7.4 Limitations on Indemnification.................................................................35 7.5 Exclusive Remedy...............................................................................35 ARTICLE VIII TERMINATION.........................................................................................35 8.1 Termination....................................................................................35 8.2 Notice and Effect of Termination...............................................................36 8.3 Extension; Waiver..............................................................................36 8.4 Amendment and Modification.....................................................................36 ARTICLE IX MISCELLANEOUS.........................................................................................36 9.1 Survival of Representations and Warranties; Remedies...........................................36 9.2 Limitations on Liability.......................................................................37 9.3 Notices........................................................................................37 9.4 Agreement; Assignment..........................................................................38 9.5 Binding Effect; Benefit........................................................................38 9.6 Headings.......................................................................................38 9.7 Counterparts...................................................................................38 9.8 Governing Law..................................................................................38 9.9 Arbitration....................................................................................38 9.10 Severability...................................................................................39 9.11 Certain Definitions............................................................................39
ii
EXHIBITS -------- Exhibit 1.2(c) Form of Warrant Exhibit 1.2(d) Form of Option Exhibit 1.2(e) Form of Loan Unit Exhibit 2.2(a)(ii)(x) Form of U.S. Investment Letter Exhibit 2.2(a)(ii)(y) Form of Non-U.S. Investment Letter Exhibit 4.2(d)(i) Form of Acquiror Warrant SCHEDULES --------- 1.3(b) MailKey Shareholders and Allocation of Merger Consideration 2.2(a)(ii)(x) U.S. MailKey Security Holders 2.2(a)(ii)(y) Non-U.S. MailKey Security Holders 4.1(a) Articles of Association and Bylaws of MailKey and each Subsidiary 4.1(c) Consents 4.1(e) MailKey GAAP Financial Statements 4.1(f)(i) Location of Leased Property 4.1(f)(ii) Written Notice of Governmental Entity 4.1(f)(iv) MailKey as Landlord 4.1(g) No Contingent Liabilities 4.1(h) Litigation 4.1(i) Taxes 4.1(j) Insurance Coverage 4.1(n)(i) Intellectual Property 4.1(n)(vii) Licenses and Rights 4.1(o) Accounts Receivable 4.1(p) MailKey Material Contracts 4.1(q) Labor Relations 4.1(r) Suppliers and Customers 4.1(u) Absence of Certain Changes or Events 4.2(a)(ii) Articles of Incorporation and Bylaws of Sub 4.2(l) Issuances of Securities 5.11 Issuance of S-8 Shares
iii AGREEMENT AND PLAN OF MERGER THIS AGREEMENT AND PLAN OF MERGER (the "AGREEMENT"), is made and entered into as of February 20, 2004, by and among GLOBAL DIVERSIFIED ACQUISITION CORP., a Nevada corporation ("ACQUIROR"), GD ACQUISITION CORP., a Delaware corporation and wholly-owned subsidiary of Acquiror ("SUB"), MK SECURE SOLUTIONS LTD., a British Virgin Islands private limited company ("MAILKEY"), and WESTVALE CONSULTANTS, LTD, a principal shareholder of MailKey (the "SHAREHOLDER"). RECITALS WHEREAS, Acquiror and Sub have determined that it is in the best interests of their shareholders for Sub to merge with MailKey upon the terms and subject to the conditions set forth in this Agreement; and WHEREAS, the respective Boards of Directors of Acquiror, Sub and MailKey have each approved this Agreement and the consummation of the transactions contemplated hereby and approved the execution and delivery of this Agreement; and WHEREAS, for federal income tax purposes, it is intended that the merger shall qualify as a reorganization under the provisions of Section 368 of the Internal Revenue Code of 1986, as amended (the "CODE"); NOW, THEREFORE, in consideration of the foregoing premises and representations, warranties and agreements contained herein, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: ARTICLE I THE MERGER 1.1 THE MERGER. (a) Upon the terms and conditions of this Agreement, at the Effective Time (as defined herein), Sub shall be merged with and into MailKey (the "MERGER") in accordance with the provisions of the General Corporation Law of the State of Delaware (the "DGCL") and the corporate laws of the British Virgin Islands ("BVI"), the separate corporate existence of Sub shall cease and MailKey shall continue as the surviving corporation (the "SURVIVING CORPORATION") under the laws of the BVI. (b) The Merger shall become effective upon the later of (i) the filing and acceptance of a certificate of merger with the Secretary of State of the State of Delaware (the "CERTIFICATE OF MERGER") in accordance with the provisions of Section 252 of the DGCL; and (ii) the filing and acceptance of a certificate of merger with the Registrar of International Companies of BVI (the "BVI CERTIFICATE OF MERGER"). The date and time when the Merger shall become effective is referred to herein as the "EFFECTIVE TIME." (c) At the Effective Time: (i) MailKey shall continue its existence under the laws of the BVI as the Surviving Corporation; (ii) the separate corporate existence of Sub shall cease; (iii) all rights, title and interests to all assets, whether tangible or intangible and any property or property rights owned by Sub shall be allocated to and vested in the Surviving Corporation without reversion or impairment, without further act or deed, and without any transfer or assignment having occurred, but subject to any existing liens or other Encumbrances thereon, and all liabilities and obligations of Sub shall be allocated to the Surviving Corporation, which shall be the primary obligor therefor and, except as otherwise provided by law or contract, no other party to the Merger, other than the Surviving Corporation, shall be liable therefor; and (iv) Each of Sub and MailKey shall execute and deliver, and file or cause to be filed with the Secretary of State of the State of Delaware the Certificate of Merger, and with the Registrar of International Companies of the BVI the BVI Certificate of Merger with such amendments thereto
End of Preview