AGREEMENT AND PLAN OF MERGER
This AGREEMENT AND PLAN OF MERGER (hereinafter called this
"Agreement"), dated as of August 27, 2007, is entered into between
Discovery
Technologies, Inc., a Nevada corporation (the "Discovery
Technologies Nevada")
and Discovery Technologies, Inc., a Kansas corporation (the
"Company")
RECITALS
WHEREAS, the board of directors of each of Discovery
Technologies
Nevada and the Company deems it advisable, upon the terms and
subject to the
conditions herein stated, that the Company be merged with and into
Discovery
Technologies Nevada, and that Discovery Technologies Nevada be the
surviving
corporation (the "Reincorporation Merger"); and
WHEREAS, the Company will submit this Agreement for approval by
separate vote of the holders of shares of common stock, no par
value, of the
Company ("common stock") at a special meeting.
NOW, THEREFORE, in consideration of the premises and of the
agreements
of the parties hereto contained herein, the parties hereto agree as
follows:
ARTICLE I
THE REINCORPORATION MERGER; EFFECTIVE TIME
1.1. The Reincorporation Merger. Upon the terms and subject to
the
conditions set forth in this Agreement, at the Effective Time (as
defined in
Section 1.2), the Company shall be merged with and into Discovery
Technologies
Nevada, whereupon the separate existence of the Company shall
cease. Discovery
Technologies Nevada shall be the surviving corporation (sometimes
hereinafter
referred to as the "Surviving Corporation") in the Reincorporation
Merger and
shall continue to be governed by the laws of the State of Nevada.
The
Reincorporation Merger shall have the effects specified in the
Kansas General
Corporation Code of the State of Kansas as amended (the "KGCC") and
in the
Nevada Revised Statutes as amended (the "NRS") and the Surviving
Corporation
shall succeed, without other transfer, to all of the assets and
property
(whether real, personal or mixed), rights, privileges, franchises,
immunities
and powers of the Company, and shall assume and be subject to all
of the duties,
liabilities, obligations and restrictions of every kind and
description of the
Company, including, without limitation, all outstanding
indebtedness of the
Company.
1.2. Effective Time. Provided that the condition set forth in
Section
5.1 has been fulfilled or waived in accordance with this Agreement
and that this
Agreement has not been terminated or abandoned pursuant to Section
6.1, on the
date of the closing of the Reincorporation Merger, the Company and
Discovery
Technologies Nevada shall cause Articles of Merger to be executed
and filed with
the Secretary of State of Nevada (the "Nevada Articles of Merger")
and a
Articles of Merger to be executed and filed with the Secretary of
State of
Kansas (the "Kansas Articles of Merger") . The Reincorporation
Merger shall
become effective upon the date and time specified in the Nevada
Articles of
Merger and the Kansas Articles of Merger (the "Effective Time")
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ARTICLE II
CHARTER AND BYLAWS OF THE SURVIVING CORPORATION
2.1. The Certificate of Incorporation. The certificate of
incorporation
of Discovery Technologies Nevada in effect at the Effective Time
shall be the
certificate of incorporation of the Surviving Corporation, until
amended in
accordance with the provisions provided therein or applicable
law.
2.2. The Bylaws. The bylaws of Discovery Technologies Nevada in
effect
at the Effective Time shall be the bylaws of the Surviving
Corporation, until
amended in accordance with the provisions provided therein or
applicable law.
ARTICLE III
OFFICERS
AND DIRECTORS OF THE SURVIVING CORPORATION
3.1. Officers. The officers of the Company at the Effective Time
shall,
from and after the Effective Time, be the officers of the Surviving
Corporation,
until their successors have been duly elected or appointed and
qualified or
until their earlier death, resignation or removal.
3.2. Directors. The directors of the Company at the Effective
Time
shall, from and after the Effective Time, be the directors of the
Surviving
Corporation, until their successors have been duly elected or
appointed and
qualified or until their earlier death, resignation or removal.
ARTICLE IV
EFFECT OF MERGER ON CAPITAL STOCK
4.1. Effect of Merger on Capital Stock. At the Effective Time, as
a
result of the
Reincorporation Merger
and without any action on the part of the
Company, Discovery Technologies Nevada or the shareholders of the
Company:
(a) Each share of common stock (other than shares ("Dissenting
Shares")
that are owned by shareholders ("Dissenting Shareholders")
exercising
dissenters' rights pursuant to Section 17-6712 of the KGCC), issued
and
outstanding immediately prior to the Effective Time shall be
converted at a
ratio of nine (9) shares of common stock, no par value, for one (1)
share of
Discovery Technologies Nevada Common Stock, par value $.01,
("Nevada Common
Stock"), with the same rights, powers and privileges as the shares
so converted
and all shares of common stock shall be cancelled and retired and
shall cease to
exist. No fractional shares will be issued and all Nevada Common
Stock ownership
will be rounded to the nearest full share.
(b) Each option, warrant or other security of the Company issued
and
outstanding immediately prior to the Effective Time shall be (i)
converted into
and shall be an identical security of Discovery Technologies Nevada
at the ratio
of nine (9) shares of com