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EXHIBIT 2.4
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PLAN AND AGREEMENT OF REORGANIZATION
by merger of
EQUAL INVESTMENT COMPANY
and
ASCENSION RESORTS, LTD.
with and into
ASCENSION CAPITAL CORPORATION,
which is renamed
"SILVERLEAF VACATION CLUB, INC."
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C O N T E N T S
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ARTICLE I
PLAN OF REORGANIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Section 1.1. Plan Adopted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
(a) Simultaneous Merger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
(b) Name of Survivor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
(c) Transfer of Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
(d) Continuance of Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
(e) Surrender of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
(f) Issuance of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
(g) Retention of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
(h) Cancellation of Partnership Interests . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Section 1.2. Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
ARTICLE II
REPRESENTATIONS AND WARRANTIES
OF CONSTITUENT ENTITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Section 2.1. Nonsurvivors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
(a) Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
(b) Authority to Execute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Section 2.2. Survivor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
(a) Status of Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
(b) Authority to Execute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
ARTICLE III
SUBMISSION TO SHAREHOLDERS AND FILING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
ARTICLE IV
MANNER AND BASIS OF CONVERTING SHARES
AND CANCELLATION OF OTHER INTERESTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Section 4.1. Manner of Converting Shares of Equal . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Section 4.2. Basis of Conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Section 4.3. Manner of Converting Partnership Interests . . . . . . . . . . . . . . . . . . . . . . . . 4
ARTICLE V
DIRECTORS AND OFFICERS OF SURVIVOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
ARTICLE VI
ARTICLES OF INCORPORATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Section 6.1. Name Change of Survivor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
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Section 6.2. Survivor's Articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
ARTICLE VII
BYLAWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
ARTICLE VIII
TERMINATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Section 8.1. Circumstances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
(a) Mutual Consent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
(b) Election of Any Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Section 8.2. Notice of Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Section 8.3. Liability on Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
ARTICLE IX
INTERPRETATION AND ENFORCEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
ARTICLE X
MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 10.1. Entire Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 10.2. Severability of Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 10.3. Headings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 10.4. Applicable Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 10.5. Execution in Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 10.6. Attorneys' Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 10.7. Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Section 10.8. Binding Effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Section 10.9. Gender and Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Section 10.10. Strict Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Section 10.11. Date of Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
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PLAN AND AGREEMENT OF REORGANIZATION
BY MERGER OF
EQUAL INVESTMENT COMPANY
AND
ASCENSION RESORTS, LTD.
WITH AND INTO
ASCENSION CAPITAL CORPORATION,
WHICH IS RENAMED
"SILVERLEAF VACATION CLUB, INC."
EQUAL INVESTMENT COMPANY, a Texas corporation ("Equal"), and ASCENSION
RESORTS, LTD., a Texas limited partnership ("ARL") (collectively referred to as
the "Nonsurvivors"), and ASCENSION CAPITAL CORPORATION, a Texas corporation
("ACC") (also referred to as the "Survivor"), agree as follows:
ARTICLE I
PLAN OF REORGANIZATION
Section 1.1. PLAN ADOPTED. A plan of reorganization of
Nonsurvivors and Survivor pursuant to the provisions of Articles 5.01 through
5.13 of the Texas Business Corporation Act, Section 2.11 of the Texas Revised
Limited Partnership Act and Sections 368(a)(1)(A) and 731 of the Internal
Revenue Code of 1986, as amended, (the "Plan"), is adopted as follows:
(a) SIMULTANEOUS MERGER: Nonsurvivors shall be
simultaneously merged with and into Survivor, to exist and be governed
by the laws of the State of Texas.
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(b) NAME OF SURVIVOR: The name of the Survivor shall be
ASCENSION CAPITAL CORPORATION, the Articles of Incorporation of which
are hereinafter amended to change its name to "SILVERLEAF VACATION
CLUB, INC."
(c) TRANSFER OF ASSETS: When this Plan shall become
effective, the separate existence of each of the Nonsurvivors shall
cease, and the Survivor shall succeed to all the rights, title and
interests to all property of each Nonsurvivor, without reversion or
impairment, without any further act, and without any transfer or
assignment having occurred, but subject to all existing liens or other
encumbrances thereon. The Survivor shall also be subject to and
become the primary obligor for all the liabilities and obligations of
the Nonsurvivors.
(d) CONTINUANCE OF BUSINESS: Survivor will carry on
business with the assets of Nonsurvivors, as well as with the assets
of Survivor.
(e) SURRENDER OF SHARES: The shareholder of Equal will
surrender all of her shares in the manner hereinafter set forth.
(f) ISSUANCE OF SHARES: In exchange for the shares of
Equal surrendered by its shareholder, the Survivor will issue and
transfer to such shareholder on the basis hereinafter set forth shares
of its common stock.
(g) RETENTION OF SHARES: The shareholder of Survivor
will retain his shares as shares of Survivor.
(h) CANCELLATION OF PARTNERSHIP INTERESTS: Each general
and limited partnership interest in ARL shall be cancelled.
Section 1.2. EFFECTIVE DATE. The effective date of the
merger, hereinafter referred to as the "Effective Date," shall be December 29,
1995, at 5:00 p.m.
ARTICLE II
REPRESENTATIONS AND WARRANTIES
OF CONSTITUENT ENTITIES
Section 2.1. NONSURVIVORS. As a material inducement to
the Survivor to execute this Agreement and perform its obligations hereunder,
each of the Nonsurvivors represents and warrants to Survivor as follows:
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(a) STATUS: Each Nonsurvivor is a corporation or limited
partnership, as set forth herein, which is duly organized, validly
existing, and in good standing under the laws of the state of Texas,
with power and authority to own property and carry on its business as
it is now being conducted.
(b) AUTHORITY TO EXECUTE: The execution, delivery and
performance of this Plan has been duly authorized by all requisite
actions.
Section 2.2. SURVIVOR. As a material inducement to
Nonsurvivors to execute this Agreement and perform their obligations hereunder,
Survivor represents and warrants to Nonsurvivors as follows:
(a) STATUS OF CORPORATION: Survivor is a corporation
duly organized, validly existing, and in good standing under the laws
of the state of Texas, with corporate power and authority to own
property and carry on its business as it is now being conducted.
(b) AUTHORITY TO EXECUTE: The execution, delivery and
performance of this Agreement has been duly authorized by all
requisite corporate actions.
ARTICLE III
SUBMISSION TO SHAREHOLDERS AND FILING
This Plan shall be submitted separately to the respective shareholders
and partners of the constituent corporations and the limited partnership in the
manner provided by the laws of the State of Texas.
ARTICLE IV
MANNER AND BASIS OF CONVERTING SHARES
AND CANCELLATION OF OTHER INTERESTS
Section 4.1. MANNER OF CONVERTING SHARES OF EQUAL. On the
Effective Date, the holder of shares of Equal shall surrender her shares to the
Secretary of Survivor promptly
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after this Agreement shall become effective, in exchange for shares of Survivor
to which she is entitled.
Section 4.2. BASIS OF CONVERSION. The shareholder of
Equal shall be entitled to receive one hundred twenty (120) shares of common
stock of the Survivor, each of $0.10 par value, being one and 12/100th percent
(1.12%) of the total outstanding common stock of Survivor.
Section 4.3. MANNER OF CONVERTING PARTNERSHIP INTERESTS.
At the Effective Time of the merger, all general and limited partnership
interests in ARL shall be cancelled and cease to exist, and all of its assets
and liabilities shall be transferred to Survivor as its sole partner by virtue
of the merger of ARL and Equal into Survivor as set forth herein.
ARTICLE V
DIRECTORS AND OFFICERS OF SURVIVOR
The present Board of Directors of Survivor shall continue to
serve as the Board of Directors of Survivor until the next annual meeting or
until such time as their successors have been elected and qualified. All
persons who at the Effective Date shall be executive or administrative officers
of Survivor shall remain as officers of Survivor until the Board of Directors
of Survivor shall otherwise determine. The Board of Directors of Survivor may
elect or appoint such additional officers as it may determine.
ARTICLE VI
ARTICLES OF INCORPORATION
Section 6.1. NAME CHANGE OF SURVIVOR. Article One of
Survivor's Articles of Incorporation, as previously amended, is hereby further
amended to read as follows:
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"ARTICLE ONE
The name of the Corporation is SILVERLEAF VACATION CLUB, INC."
Section 6.2. SURVIVOR'S ARTICLES. Except as amended in
Section 6.1, the Articles of Incorporation of Survivor, as existing on the
Effective Date, shall continue in full force until altered, amended, or
repealed as provided therein or as provided by law.
ARTICLE VII
BYLAWS
The Bylaws of Survivor, as existing on the Effective Date,
shall continue in full force until altered, amended, or repealed as provided
therein or as provided by law.
ARTICLE VIII
TERMINATION
Section 8.1. CIRCUMSTANCES. This Agreement may be
terminated and the merger herein provided for may be abandoned at any time
prior to the Effective Date:
(a) MUTUAL CONSENT: By mutual consent of the Board of
Directors of the constituent corporations and the partners of the
limited partnership;
(b) ELECTION OF ANY CORPORATION: At the election of the
Boards of Directors of any constituent corporation, but only as to
their participation in the Agreement, if:
(i) The number of shareholders of any constituent
corporation dissenting from the merger shall be so large as to
make the merger, in the opinion of either such Board of
Directors, inadvisable or undesirable; and
(ii) Any legislation shall be enacted which, in the
opinion of either such Board of Directors, renders the merger
inadvisable or undesirable.
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Section 8.2. NOTICE OF TERMINATION. In the event an
election is made to terminate this Agreement and abandon the merger provided
for herein, the President or any Vice-President of the constituent corporation
whose Board of Directors has made such election shall give written notice
thereof to the other constituent corporations and the limited partnership.
Section 8.3. LIABILITY ON TERMINATION. Upon the giving of
such notice as provided in Section 8.2 above, this Agreement shall terminate
and the proposed merger be abandoned and, except for payment of their own costs
and expenses incident to this Agreement, there shall be no liability on the
part of either constituent corporation or the limited partnership as a result
of such termination and abandonment.
ARTICLE IX
INTERPRETATION AND ENFORCEMENT
Each Nonsurvivor hereby agrees that from time to time, as and
when requested by the Survivor or by its successors or assigns, it will execute
and deliver or cause to be executed and delivered, all such deeds and other
instruments, and will take or cause to be taken such further or other actions
as the Survivor may deem necessary or desirable in order to vest or perfect in,
or conform of record or otherwise to, the Survivor title to and possession of
all the property, rights, privileges, powers, and franchises referred to in
Article I hereof, and otherwise carry out the intent and purposes of this
Agreement.
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ARTICLE X
MISCELLANEOUS
Section 10.1. ENTIRE AGREEMENT. This Agreement constitutes
the entire understanding of the parties and supersedes all prior
understandings, whether written or oral, between the parties with respect to
the subject matter of this Agreement.
Section 10.2. SEVERABILITY OF PROVISIONS. If any term or
provision of this Agreement is illegal or invalid for any reason, such
illegality or invalidity shall not affect the validity or enforceability of the
remainder of this Agreement.
Section 10.3. HEADINGS. No heading or caption contained in
this Agreement shall be considered in interpreting any of its terms or
provisions.
Section 10.4. APPLICABLE LAW. This Agreement shall be
governed exclusively by the laws of the State of Texas, and the obligations of
the parties to this Agreement are performable in Dallas, Dallas County, Texas.
Section 10.5. EXECUTION IN COUNTERPARTS. This Agreement
and any amendment may be executed in any number of counterparts, with the same
effect as if all parties had signed the same document.
Section 10.6. ATTORNEYS' FEES. If any action at law or in
equity, including an action for declaratory relief, is brought to enforce or
interpret the provisions of this Agreement, the prevailing party shall be
entitled to recover reasonable attorneys' fees and all other costs and expenses
of litigation from the other party, which amounts may be set by the court in
the trial of such action or may be enforced in a separate action brought for
that purpose, and which amounts shall be in addition to any other relief which
may be awarded.
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Section 10.7. AMENDMENT. No amendment, modification or
alteration of the terms of this Agreement shall be binding unless in writing,
dated subsequent to the date of this Agreement, and executed by the parties.
Section 10.8. BINDING EFFECT. Each and all of the
covenants, terms and provisions of this Agreement shall be binding upon and
inure to the benefit of the successors, transferees, heirs and assigns of the
respective parties.
Section 10.9. GENDER AND NUMBER. Wherever the context
shall so require, all words herein in the male gender shall be deemed to
include the female or neuter gender, all singular words shall include the
plural and all plural words shall include the singular.
Section 10.10. STRICT CONSTRUCTION. This Agreement shall not
be strictly construed against any party hereto.
Section 10.11. DATE OF EXECUTION. This Agreement is executed
the 29th day of December, 1995, to be effective as stated in Section 1.2
hereof.
NONSURVIVORS:
EQUAL INVESTMENT COMPANY, a Texas corporation
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇, Vice-President
ASCENSION RESORTS, LTD., a Texas limited partnership
By: ASCENSION CAPITAL CORPORATION, its sole
general partner, a Texas corporation
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇,
Chief Executive Officer
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By: EQUAL INVESTMENT COMPANY, its sole
limited partner, a Texas corporation
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇, Vice-President
SURVIVOR:
ASCENSION CAPITAL CORPORATION, a Texas corporation
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇, Chief Executive Officer
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