AGREEMENT AND PLAN OF
REORGANIZATION
AGREEMENT AND PLAN OF
REORGANIZATION (“Agreement”) dated as of September
9, 2008, by and between Old Berliner, Inc ., a
Delaware corporation (“OBI”), and Berliner
Communications , Inc ., a Delaware
corporation (“BCI”).
WHEREAS
, OBI wishes to transfer its
business and substantially all of its assets to BCI solely in
exchange for voting shares of BCI in a transaction intended to
qualify as a “reorganization” within the meaning of
Section 368(a)(l)(C) of the Internal Revenue Code of 1954, as
amended (the “Code”), it being contemplated by BCI and
OBI that OBI will thereafter, as an integral part of the
transaction, distribute the shares of BCI received in the
transaction to OBI’s shareholders in complete liquidation of
OBI and dissolve; and BCI wishes to acquire the business and
substantially all of the assets of OBI on the terms and conditions
set out herein; and
WHEREAS
, BCI desires to complete the
transaction in order to facilitate OBI’s distribution of
shares of common stock of BCI, par value $.01 per share (“BCI
Common Stock”) to OBI’s shareholders so that the
outstanding shares of BCI Common Stock will be held by a
significantly larger number of record shareholders, which will
increase the “public float” of BCI Common
Stock.
NOW,
THEREFORE , BCI and
OBI, agree as follows:
1.01
Exchange of
Assets. On the
terms and subject to the conditions set forth herein, at the
Closing (as defined in Section 4.01), effective as of the Closing
Date (as defined in Section 4.01), BCI shall acquire from OBI, and
OBI shall assign, transfer, convey and deliver to BCI, all of
OBI’s right, title and interest in and to all of the assets
and properties of OBI including, without limitation, 13,104,644
shares of the Common Stock of BCI registered in the name of OBI
(the “OBI Transferred Shares”) as the same shall exist
on the Closing Date, except for the Excluded Assets as described in
Section 1.02, all of such assets and properties being hereinafter
collectively referred to as the “Transferred Assets,”
which Transferred Assets constitute (and on the Closing Date will
constitute) substantially all of the assets of OBI.
1.02.
Excluded
Assets .
Notwithstanding anything to the contrary which may be contained
herein, the Transferred Assets shall not include:
(a) cash in an amount equal to $400,000 less the
amount of cash expended by OBI from and after the date hereof to
and including the Closing Date for the expenses and costs incurred
by OBI in connection with this Agreement and the transactions
contemplated herein, including its liquidation and
dissolution.
(b) OBI’s minutes of meetings of its board of
directors and shareholders, tax records, shareholder records and
share ledgers; and
(c)
OBI’s rights under or
pursuant to this Agreement.
1.03
Instruments of
Transfer . On
the Closing Date, OBI shall deliver, or cause to be delivered, to
BCI (a) duly executed instruments of transfer and assignment,
including, without limitation, bills of sale and assignments and
the certificate(s) representing the OBI Transferred Shares endorsed
in blank, in form and substance reasonably satisfactory to BCI and
its counsel, sufficient to vest in BCI valid title to all of OBI's
right, title and interest in and to the Transferred Assets, free
and clear of all mortgages, claims, liens, charges or encumbrances
of any kind or nature whatsoever, and (b) a check in the amount of
all cash and cash equivalents included in the Transferred
Assets.
1.04
Assumption of
Liabilities .
BCI does not and shall not assume any liabilities or obligations of
OBI.
1.05.
Tax-Free
Reorganization .
The transactions contemplated by this Agreement are intended to
qualify as a “reorganization” within the meaning of
Section 368(a)(1)(C) of the Code, all of the Issued Shares (as
defined below) are intended to constitute consideration issued in
connection with the reorganization, and this Agreement is intended
to constitute a “plan of reorganization” within the
meaning of the regulations promulgated under Section 368 of the
Code. The parties hereto agree to prepare and file tax returns that
are consistent with the intention of having the transactions
contemplated by this Agreement constitute a reorganization within
the meaning of Section 368 of the Code.
2.
Exchange
Consideration .
2.01
Exchange
Consideration . In exchange for, and in consideration of, the
assignment, conveyance and transfer of the Transferred Assets as
provided herein, BCI shall convey and deliver to OBI at the Closing
a certificate or certificates for 13,104,644 shares (as may be
hereafter be adjusted as provided in Section 2.02 hereof) of the
common stock, par value $.01 per share, of BCI (the “Issued
Shares”).
2.02
Adjustment of Number of
Issued Shares .
If after the date of this Agreement and prior to the Closing Date,
BCI shall (a) declare any dividend payable in shares of BCI Common
Stock to its common stockholders of record prior to the Closing
Date; or (b) split, combine, reclassify or make a similar change in
the outstanding shares of BCI Common Stock, an equitable adjustment
shall be made in the number of Issued Shares deliverable to OBI
hereunder on the Closing Date under Section 2.01.
3.01
Closing. The closing of the transactions to be effected
hereunder (the “Closing”) shall be held at the offices
of Morse, Zelnick, Rose & Lander, LLP, 405 Park Avenue, New
York, NY 10022 at 10:00 A.M. on the third business day after all of
the conditions to Closing as set forth in Articles 7 and 8, shall
have been satisfied, or at such other place or at such other time
as BCI and OBI may mutually agree (the “Closing
Date”).
4.
Representations and
Warranties of OBI. OBI represents and warrants to and agrees with
BCI as follows:
4.01
Organization and Good
Standing . OBI
is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware. OBI has full
corporate power and authority to conduct its business as now
conducted and to own or lease and operate the assets and properties
now owned or leased and operated by it. OBI is duly qualified to do
business and is in good standing in each jurisdiction in which the
nature of its business or the character of its properties requires
such qualification.
4.02
Capitalization of
OBI. All of the
outstanding shares of capital stock of OBI are owned beneficially
and of record as set forth on Schedule 4.02 hereof.
4.03
Authority and
Compliance . OBI has full corporate power and authority to
execute and deliver this Agreement. The consummation and
performance by OBI of the transactions contemplated by this
Agreement have been duly and validly authorized by all necessary
corporate actions (except for the approval of the shareholders of
OBI). This Agreement has been duly and validly executed and
delivered on behalf of OBI and constitutes a valid obligation of
OBI, enforceable in accordance with its terms, except to the extent
that such enforceability may be limited by applicable insolvency,
bankruptcy, reorganization or similar laws affecting the
enforcement of creditors' rights generally and by general equity
principles. No consent, authorization or approval of, exemption by,
or filing with, any domestic governmental or administrative
authority, or any court, is required by OBI or any of its
shareholders to be obtained or made in connection with the
execution, delivery and performance of this Agreement or the
consummation of the transactions contemplated hereby.
4.04
No
Conflict . The
performance of this Agreement and the consummation of the
transactions contemplated hereby will not result in a breach or
violation of any of the terms or provisions of, or constitute a
default under the articles of incorporation or by-laws of the
OBI.
4.05
Title
. OBI has good and valid title to
the Transferred Assets free and clear of all liens, security
interest and other encumbrances of any kind or nature
whatsoever.
5.
Representations and
Warranties of BCI . BCI
hereby represents and warrants to OBI as follows:
5.01
Organization and Good
Standing . BCI
is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware, with full
corporate power and authority to conduct its business as now
conducted and to own or lease and operate the assets and properties
now owned or leased and operated by it.
5.02
Authority and
Compliance . BCI
has full corporate power and authority to execute and deliver this
Agreement. The consummation and performance by BCI of the
transactions contemplated by this Agreement have been duly and
validly authorized by all necessary corporate and other
proceedings. This Agreement has been duly and validly executed and
delivered on behalf of BCI and constitutes a valid obligation of
BCI, enforceable in accordance with its terms, except to the extent
that such enforceability may be limited by applicable insolvency,
bankruptcy, reorganization or similar laws affecting the
enforcement of creditors' rights generally and by general equity
principles. Except for filings and approvals under applicable
federal and states securities laws, no consent, authorization or
approval of, exemption by, or filing with, any domestic
governmental or administrative authority, or any court, is required
to be obtained or made by BCI in connection with the execution,
delivery and performance of this Agreement or the consummation of
the transactions contemplated hereby.
5.03
No
Conflict . The
performance of this Agreement and the consummation of the
transactions herein contemplated will not result in a breach or
violation of any of the terms or provisions of, or constitute a
default under (i) any contract or other agreement or instrument to
which BCI is a party or by which BCI or any of its properties or
assets is bound; (ii) the certificate of incorporation or by-laws
of BCI; or (iii) any law, order, rule, regulation, writ, injunction
or decree applicable to BCI.
5.04
SEC
Filings. BCI has
delivered to OBI (i) its annual report on Form 10-K with respect to
the fiscal year ended June 30, 2007 and (ii) its quarterly report
on Form 10-Q with respect to the quarter ended March 31, 2008 (the
“SEC Filings’”). The SEC Filings are true,
complete and correct in all material respects. The financial
statements contained in the