In Arkansas, a Merger Agreement is a legally binding contract formalizing the merger or acquisition between two entities, Bay Micro Computers, Inc. and BMC Acquisition Corporation. This agreement outlines the terms and conditions under which the merger or acquisition will be carried out, ensuring transparency and protection of the rights and interests of all parties involved. The Arkansas Merger Agreement between Bay Micro Computers, Inc. and BMC Acquisition Corporation typically includes various clauses and provisions that are essential for a successful merger or acquisition. Some key terms addressed in this agreement are as follows: 1. Parties Involved: The agreement clearly identifies Bay Micro Computers, Inc. as the acquiring company and BMC Acquisition Corporation as the target company being merged or acquired. 2. Consideration: The Merger Agreement specifies the form and amount of consideration to be paid to the shareholders of BMC Acquisition Corporation. Consideration can be in the form of cash, stock, securities, or a combination thereof, as agreed upon by both parties. 3. Closing and Effective Date: This provision establishes the date on which the merger or acquisition will be considered legally effective, providing a timeframe for the completion of necessary procedures and documentation. 4. Representations and Warranties: Both parties offer assurances regarding the accuracy and completeness of information provided during the negotiation and execution process. These representations and warranties serve to protect the interests of both Bay Micro Computers, Inc. and BMC Acquisition Corporation. 5. Governing Law: The Merger Agreement specifies that it will be governed and construed in accordance with the laws of the state of Arkansas, ensuring compliance with the legislative framework of the jurisdiction. 6. Termination Rights: The agreement may include provisions outlining certain circumstances under which either party has the right to terminate the merger or acquisition process. This allows for flexibility and protection in case unforeseen events occur. 7. Confidentiality: To maintain the confidentiality of sensitive information shared during the negotiation and due diligence process, the Merger Agreement may contain confidentiality clauses restricting disclosure of such information to third parties. It's important to note that while the above provisions are commonly found in Arkansas Merger Agreements, there may be different types of agreements tailored to specific circumstances. For example, a Stock-for-Stock Merger Agreement may be used if the consideration consists solely of stock or securities. Alternatively, a Cash Merger Agreement would be applicable if the consideration is solely in the form of cash. These different types of agreements ensure the specific terms and requirements of the merger or acquisition are accurately reflected, thus meeting the needs and objectives of Bay Micro Computers, Inc. and BMC Acquisition Corporation.