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Agreement and Plan of Merger [Amended and Restated]
Agreement and Plan of Merger [Amended and Restated] (353K)
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AMENDED AND RESTATED
AGREEMENT AND PLAN OF MERGER
dated as of December 6, 1998,
as amended as of January 29, 1999 and February 9, 1999,
and amended and restated as of February 23, 1999,
by and among
NEW SCOTTISH POWER PLC,
SCOTTISH POWER PLC,
NA GENERAL PARTNERSHIP
and
PACIFICORP
{PAGE}
TABLE OF CONTENTS
This Table of Contents is not part of the Agreement to
which it is attached but is inserted for convenience only.
{TABLE}
{CAPTION}
Page
No.
----
{S} {C}
ARTICLE I THE MERGER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
1.01 The Merger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
1.02 Closing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.03 Effective Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.04 Governing Instrument . . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.05 Directors and Officers of the Surviving Corporation. . . . . . . . . . . .3
1.06 Effects of the Merger. . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.07 Further Assurances . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
ARTICLE II CONVERSION OF SHARES. . . . . . . . . . . . . . . . . . . . . . . . . . .4
2.01 Conversion of Capital Stock. . . . . . . . . . . . . . . . . . . . . . . .4
2.02 Procedure for Election . . . . . . . . . . . . . . . . . . . . . . . . . .6
2.03 Exchange of Certificates.. . . . . . . . . . . . . . . . . . . . . . . . .7
2.04 Withholding Rights.. . . . . . . . . . . . . . . . . . . . . . . . . . . 10
ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY. . . . . . . . . . . . . 10
3.01 Organization and Qualification . . . . . . . . . . . . . . . . . . . . . 10
3.02 Capital Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.03 Authority Relative to this Agreement . . . . . . . . . . . . . . . . . . 13
3.04 Non-Contravention; Approvals and Consents. . . . . . . . . . . . . . . . 13
3.05 SEC Reports, Financial Statements and Utility Reports. . . . . . . . . . 15
3.06 Absence of Certain Changes or Events . . . . . . . . . . . . . . . . . . 15
3.07 Absence of Undisclosed Liabilities . . . . . . . . . . . . . . . . . . . 16
3.08 Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.09 Information Supplied . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.10 Permits; Compliance with Laws and Orders . . . . . . . . . . . . . . . . 17
3.11 Compliance with Agreements . . . . . . . . . . . . . . . . . . . . . . . 18
3.12 Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3.13 Employee Benefit Plans; ERISA. . . . . . . . . . . . . . . . . . . . . . 19
3.14 Labor Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
3.15 Environmental Matters. . . . . . . . . . . . . . . . . . . . . . . . . . 22
3.16 Intellectual Property Rights . . . . . . . . . . . . . . . . . . . . . . 25
3.17 Regulation as a Utility. . . . . . . . . . . . . . . . . . . . . . . . . 25
3.18 Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.19 Vote Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.20 [Intentionally Omitted]. . . . . . . . . . . . . . . . . . . . . . . . . 26
3.21 Ownership of HoldCo or ScottishPower Stock . . . . . . . . . . . . . . . 26
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3.22 Article VII of the Company's Articles of Incorporation and Sections
60.825-60.845 of the BCA Not Applicable. . . . . . . . . . . . . . . . . 26
3.23 Certain Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3.24 Year 2000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3.25 Joint Venture Representations. . . . . . . . . . . . . . . . . . . . . . 26
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF HOLDCO, SCOTTISHPOWER and the
partnership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
4.01 Organization and Qualification . . . . . . . . . . . . . . . . . . . . . 27
4.02 Capital Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
4.03 Authority Relative to this Agreement . . . . . . . . . . . . . . . . . . 30
4.04 Non-Contravention; Approvals and Consents. . . . . . . . . . . . . . . . 30
4.05 SEC Reports and Financial Statements . . . . . . . . . . . . . . . . . . 32
4.06 Absence of Certain Changes or Events . . . . . . . . . . . . . . . . . . 32
4.07 Absence of Undisclosed Liabilities . . . . . . . . . . . . . . . . . . . 33
4.08 Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
4.09 Information Supplied . . . . . . . . . . . . . . . . . . . . . . . . . . 33
4.10 Permits; Compliance with Laws and Orders . . . . . . . . . . . . . . . . 34
4.11 Compliance with Agreements . . . . . . . . . . . . . . . . . . . . . . . 35
4.12 Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
4.13 ScottishPower Employee Benefit Plans . . . . . . . . . . . . . . . . . . 36
4.14 Labor Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
4.15 Environmental Matters. . . . . . . . . . . . . . . . . . . . . . . . . . 38
4.16 Intellectual Property Rights . . . . . . . . . . . . . . . . . . . . . . 40
4.17 Vote Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
4.18 [Intentionally Omitted . . . . . . . . . . . . . . . . . . . . . . . . . 41
4.19 Ownership of Company Common Stock. . . . . . . . . . . . . . . . . . . . 41
4.20 Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
4.21 Year 2000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
4.22 Joint Venture Representations. . . . . . . . . . . . . . . . . . . . . . 42
ARTICLE V COVENANTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
5.01 Covenants of the Company . . . . . . . . . . . . . . . . . . . . . . . . 42
5.02 Covenants of HoldCo and ScottishPower. . . . . . . . . . . . . . . . . . 47
5.03 Joint Executive Committee. . . . . . . . . . . . . . . . . . . . . . . . 52
5.04 Tax Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
5.05 Discharge of Liabilities . . . . . . . . . . . . . . . . . . . . . . . . 52
5.06 Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
5.07 No Solicitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
5.08 Conduct of Business of Merger Sub. . . . . . . . . . . . . . . . . . . . 54
5.09 Third Party Standstill Agreements. . . . . . . . . . . . . . . . . . . . 54
5.10 Control of Other Party's Business. . . . . . . . . . . . . . . . . . . . 54
ARTICLE VI ADDITIONAL AGREEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . 55
6.01 Access to Information. . . . . . . . . . . . . . . . . . . . . . . . . . 55
6.02 Preparation of Registration Statement and Proxy Statement. . . . . . . . 55
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6.03 Approval of Shareholders.. . . . . . . . . . . . . . . . . . . . . . . . 56
6.04 Company Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
6.05 Auditors' Letters. . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
6.06 Stock Exchange Listing; Deposit Agreement. . . . . . . . . . . . . . . . 58
6.07 Restructuring of Merger. . . . . . . . . . . . . . . . . . . . . . . . . 58
6.08 Regulatory and Other Approvals . . . . . . . . . . . . . . . . . . . . . 59
6.09 Employee Benefit Plans . . . . . . . . . . . . . . . . . . . . . . . . . 59
6.10 Company Stock Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
6.11 Directors' and Officers' Indemnification and Insurance . . . . . . . . . 61
6.12 HoldCo Governance; Additional Matters. . . . . . . . . . . . . . . . . . 61
6.13 Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
6.14 Brokers or Finders . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
6.15 Takeover Statutes. . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
6.16 Conveyance Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
6.17 Rate Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
6.18 Tax Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
6.19 Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
ARTICLE VII CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
7.01 Conditions to Each Party's Obligation to Effect the Merger . . . . . . . 65
7.02 Conditions to Obligation of HoldCo, ScottishPower and Merger Sub to
Effect the Merger. . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
7.03 Conditions to Obligation of the Company to Effect the Merger . . . . . . 69
ARTICLE VIII TERMINATION, AMENDMENT AND WAIVER . . . . . . . . . . . . . . . . . . 70
8.01 Termination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
8.02 Effect of Termination. . . . . . . . . . . . . . . . . . . . . . . . . . 72
8.03 Amendment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
8.04 Waiver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
ARTICLE IX GENERAL PROVISIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . 73
9.01 Non-Survival of Representations, Warranties, Covenants and Agreements. . 73
9.02 Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
9.03 Entire Agreement; Incorporation of Exhibits. . . . . . . . . . . . . . . 75
9.04 [Intentionally Omitted.] . . . . . . . . . . . . . . . . . . . . . . . . 75
9.05 Public Announcements . . . . . . . . . . . . . . . . . . . . . . . . . . 75
9.06 No Third Party Beneficiary . . . . . . . . . . . . . . . . . . . . . . . 76
9.07 No Assignment; Binding Effect. . . . . . . . . . . . . . . . . . . . . . 76
9.08 Headings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
9.09 Invalid Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
9.10 Governing Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
9.11 Submission to Jurisdiction; Waivers. . . . . . . . . . . . . . . . . . . 76
9.12 Enforcement of Agreement . . . . . . . . . . . . . . . . . . . . . . . . 77
9.13 Certain Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . 77
9.14 Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
9.15 WAIVER OF JURY TRIAL . . . . . . . . . . . . . . . . . . . . . . . . . . 79
{/TABLE}
iii
{PAGE}
SCHEDULES
SCHEDULE I Scheme Consents
SCHEDULE II Articles of Association of Holdco
EXHIBITS
EXHIBIT A Scheme of Arrangement
EXHIBIT B Allotment of Shares
EXHIBIT C Form of Affiliate Agreement
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{PAGE}
GLOSSARY OF DEFINED TERMS
The following terms, when used in this Agreement, have the meanings
ascribed to them in the corresponding Sections of this Agreement listed below:
{TABLE}
{S} {C} {C}
"1935 Act" -- Section 3.02(c)
"ADR Depositary" -- Section 2.01(e)
"ADR Holder Proposal -- Section 6.03(c)
"ADS Consideration" -- Section 2.01(c)(i)
"Advisory Board" -- Section 6.12(b)
"affiliate" -- Section 9.12 (a)
"Affiliate Agreement" -- Section 6.04
"Agreement" -- Preamble
"Alternative Proposal" -- Section 5.08
"Antitrust Division" -- Section 6.08
"Articles of Merger" -- Section 1.03
"BCA" -- Section 1.01
"beneficially" -- Section 9.12(b)
"business day" -- Section 9.12(c)
"Certificates" -- Section 2.03(b)
"Circular" -- Section 3.09(b)
"Closing" -- Section 1.02
"Closing Date" -- Section 1.02
"Code" -- Preamble
"Companies Act" -- Section 4.02(a)
"Company" -- Preamble
"Company Affiliates" -- Section 6.04
"Company Budget" -- Section 5.01(e)
"Company Common Stock" -- Preamble
"Company Disclosure Letter" -- Section 3.01(a)
"Company Employee Benefit Plan" -- Section 3.13(b)(i)
"Company Financial Statements" -- Section 3.05(a)
"Company Joint Venture" -- Section 3.01(b)(ii)
"Company Option" -- Section 2.01(f)
"Company Option Plan" -- Section 2.01(f)
"Company Permits" -- Section 3.10
"Company Preferred Stock" -- Section 3.02(a)
"Company SEC Reports" -- Section 3.05(a)
"Company Stock Option" -- Section 6.10(a)
"Company Stockholders' Approval" -- Section 6.03(b)
"Company Stockholders' Meeting" -- Section 6.03(b)
"Confidentiality Agreement" -- Section 6.01
"Constituent Corporations" -- Section 1.01
"Contracts" -- Section 3.04(a)
"control," "controlling," "controlled
by" and "under common control with" -- Section 9.12(a)
v
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"Converted Shares" -- Section 2.01(c)(i)
"DOE" -- Section 3.05(b)
"Effective Time" -- Section 1.03
"Election Date" -- Section 2.02(a)
"Environmental Claims" -- Section 3.15(g)(i)
"Environmental Laws" -- Section 3.15(g)(ii)
"Environmental Permits" -- Section 3.15(b)
"ERISA" -- Section 3.13(b)(i)
"ERISA Affiliate" -- Section 3.13(b)(iii)
"Exchange Act" -- Section 3.04(b)
"Exchange Agent" -- Section 2.03(a)
"Exchange Fund" -- Section 2.03(a)
"FERC" -- Section 3.05(b)
"FSA" -- Section 3.09(b)
"FTA" -- Section 7.01(k)
"FTC" -- Section 6.08
"Governmental or Regulatory Authority" -- Section 3.04(a)
"group" -- Section 9.12(f)
"Hazardous Materials" -- Section 3.15(g)(iii)
"HoldCo ADRs" -- Preamble
"HoldCo ADSs" -- Preamble
"HoldCo Employee Benefit Plans -- Section 4.13(b)
"HoldCo Group" -- Section 5.02(k)
"HoldCo Ordinary Shares" Preamble
"HoldCo Share Schemes" -- Section 4.02(a)
"HoldCo Special Share" -- Schedule II
"HSR Act" -- Section 3.04(b)
"Intellectual Property" -- Section 3.16
"Joint Executive Committee" -- Section 5.03(a)
"Joint Venture" -- Section 301(b)(i)
"knowledge" -- Section 9.13(d)
"laws" -- Section 3.04(a)
"Lien" -- Section 3.02(b)
"Listing Particulars" -- Section 3.09(b)
"LSE" -- Section 2.03(e)
"material adverse effect" -- Section 9.12(e)
"Merger" -- Preamble
"Merger Consideration" -- Section 2.01(c)(i)
"Merger Ordinary Shares" -- Preamble
"Merger Sub" -- Preamble
"Merger Sub Common Stock" -- Section 2.01
"MMC" -- Section 7.01(k)
"New Facilities" -- Section 9.13(f)
"NYSE" -- Section 2.03(e)
"OFFER" -- Section 7.01(l)
"OFT" -- Section 7.01(k)
vi
{PAGE}
"OFWAT" -- Section 7.01(l)
"Options" -- Section 3.02(a)
"orders" -- Section 3.04(a)
"Ordinary Share Consideration" -- Section 2.01(c)(i)
"Ordinary Share Election" -- Section 2.02
"Ordinary Share Election Form" -- Section 2.02
"Original Agreement" -- Preamble
"Partnership" -- Preamble
"Partnership Agreement" -- Section 4.01(a)
"Partnership Loan Note" -- Section 2.01(e)
"person" -- Section 9.13(g)
"Plan" -- Section 3.12(b)(ii)
"Policies" -- Section 4.14(b)
"Power Act" -- Section 3.05(b)
"Proxy Statement" -- Section 3.09(a)
"qualified stock options" -- Section 6.10(a)
"RCF" -- Section 9.13(h)
"Registration Statement" -- Section 4.09
"Release" -- Section 3.15(g)(iv)
"Representatives" -- Section 9.13(i)
"Review Material" -- Section 6.01
"Sales Price" -- Section 2.03(e)
"Scheme of Arrangement" -- Preamble
"Scheme Consents" -- Section 9.13(k)
"Scheme Date" -- Section 2.01(c)
"Scheme Document" -- Section 9.13(l)
"ScottishPower" -- Preamble
"ScottishPower ADRs" -- Preamble
"ScottishPower ADSs" -- Preamble
"ScottishPower Budget" -- Section 5.02(e)
"ScottishPower Disclosure Documents" -- Section 3.09(b)
"ScottishPower Disclosure Letter" -- Section 4.01(a)
"ScottishPower Employee Benefit Plans" -- Section 4.13
"ScottishPower Financial Statements" -- Section 4.05
"ScottishPower Joint Venture" -- Section 3.01(b)(iii)
"ScottishPower Ordinary Shares" -- Preamble
"ScottishPower Permits" -- Section 4.10
"ScottishPower SEC Reports" -- Section 4.05
"ScottishPower Share Schemes" -- Section 4.02(a)
"ScottishPower Shareholders' Approval" -- Section 6.03(a)
"ScottishPower Shareholders' Meeting" -- Section 6.03(a)
"ScottishPower Special Share" -- Section 4.02(a)
"SEC" -- Section 3.04(b)
"Secretary of State" -- Section 1.03
"Securities Act" -- Section 3.04(b)
"Share Transfer" -- Preamble
vii
{PAGE}
"SOS" -- Section 7.01(k)
"Subsidiary" -- Section 9.13(j)
"Surviving Corporation" -- Section 1.01
"Surviving Corporation Common Stock" -- Section 2.01
"taxes" -- Section 3.12(g)
"Trading Day" -- Section 2.03(e)
"UK Code" -- Section 6.03(a)
{/TABLE}
viii
{PAGE}
This AMENDED AND RESTATED AGREEMENT AND PLAN OF MERGER, dated as of
December 6, 1998 and amended as of January 29, 1999 and February 9, 1999, and
amended and restated as of February 23, 1999 (this "AGREEMENT"), is made and
entered into by and among NEW SCOTTISH POWER PLC, a public limited company
incorporated under the laws of Scotland ("HOLDCO"), SCOTTISH POWER PLC, a
public limited company incorporated under the laws of Scotland
("SCOTTISHPOWER"), NA GENERAL PARTNERSHIP, a Nevada general partnership
indirectly wholly owned by ScottishPower (the "PARTNERSHIP"), and PACIFICORP,
an Oregon corporation (the "COMPANY"), and, with respect to SECTION 2.01
hereof only, Scottish Power NA 1 Limited, a limited liability company
incorporated under the laws of Scotland ("UKSUB1") and Scottish Power NA 2
Limited, a limited liability company incorporated under the laws of Scotland
("UKSUB2").
WHEREAS, ScottishPower, the Partnership, UKSub1, UKSub2 and the
Company entered into an Agreement and Plan of Merger dated as of December 6,
1998 and amended as of January 29, 1999 and February 9, 1999 (the "ORIGINAL
AGREEMENT");
WHEREAS, HoldCo, ScottishPower, the Partnership, UKSub1, UKSub2 and
the Company wish to amend and restate the Original Agreement in its entirety,
effective as of the date set forth in SECTION 9.03(c);
WHEREAS, the Board of Directors of ScottishPower intends to
recommend to its shareholders a proposal to introduce HoldCo as a new holding
company for the ScottishPower group pursuant to a scheme of arrangement
sanctioned by the Court of Session, Edinburgh (the "SCHEME OF ARRANGEMENT"),
substantially in the form of the draft Scheme of Arrangement attached hereto
as Exhibit A subject to such amendments as ScottishPower may reasonably deem
necessary or desirable; PROVIDED, that if such amendments would have a
material adverse effect on the benefits of the Merger for the holders of
Company Common Stock, such amendments may only be effected with the prior
written consent of the Company;
WHEREAS, pursuant to the Scheme of Arrangement, (A) all ordinary
shares of 50 pence each of ScottishPower ("SCOTTISHPOWER ORDINARY SHARES")
will be cancelled and the holders thereof will receive in place of the
ScottishPower Ordinary Shares then held by them an identical number of
ordinary shares of 50 pence each of HoldCo ("HOLDCO ORDINARY SHARES"), and
(B) all ScottishPower Ordinary Shares represented by American Depositary
Shares of ScottishPower ("SCOTTISHPOWER ADSS"), each representing four (4)
ScottishPower Ordinary Shares and evidenced by American Depositary Receipts
("SCOTTISHPOWER ADRS"), will be cancelled and the holders thereof will
receive in place of the ScottishPower ADSs then held by them an identical
number of American Depositary Shares of HoldCo ("HOLDCO ADSS"), each
representing four (4) HoldCo Ordinary Shares and evidenced by American
Depositary Receipts ("HOLDCO ADRS");
WHEREAS, after the Scheme Date (as defined in SECTION 2.01) and
prior to the Closing Date (as defined in SECTION 1.02) ScottishPower shall
transfer to HoldCo all of the outstanding shares of UKSub 1 and UKSub 2
("SHARE TRANSFER");
WHEREAS, the Boards of Directors of HoldCo, ScottishPower and the
Company and the partners of the Partnership, have each determined that it is
advisable and in the best
{PAGE}
interests of their respective stockholders and partners, as the case may be,
to consummate, and have approved, the business combination transaction
provided for herein in which Merger Sub (as defined below) would merge with
and into the Company and the Company would become an indirect, wholly-owned
subsidiary of HoldCo (the "MERGER") pursuant to the terms of this Agreement,
whereby each issued and outstanding share of common stock of the Company (the
"COMPANY COMMON STOCK"), other than shares owned directly or indirectly by
HoldCo, ScottishPower, the Partnership, Merger Sub or the Company, will be
converted into the right to receive either (i) HoldCo ADSs evidenced by
HoldCo ADRs or (ii) HoldCo Ordinary Shares (the "MERGER ORDINARY SHARES");
WHEREAS, immediately prior to the Closing Date (as defined in
SECTION 1.02), an Oregon corporation wholly-owned by the Partnership ("MERGER
SUB") will be formed for the purpose of effectuating the Merger;
WHEREAS, the respective Boards of Directors of HoldCo,
ScottishPower and the Company, and the partners of the Partnership, have
determined that the Merger is in furtherance of and consistent with their
respective long-term business strategies and is fair to and in the best
interests of their respective shareholders and stockholders, each of HoldCo
and ScottishPower has approved this Agreement and the Merger, UKSub 1 and
UKSub 2 in their capacity as general partners of the Partnership and as
parties to SECTION 2.01 have approved this Agreement and the Merger, and the
Partnership has agreed that, immediately following the formation of Merger
Sub, it will approve this Agreement and the Merger as the sole stockholder of
Merger Sub;
WHEREAS, for federal income tax purposes, it is intended that the
Merger shall qualify as a reorganization within the meaning of Section 368(a)
of the Internal Revenue Code of 1986, as amended (the "CODE"); and
WHEREAS, HoldCo, ScottishPower, the Partnership and the Company
desire to make certain representations, warranties and agreements in
connection with the Merger and also to prescribe various conditions to the
Merger;
NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:
ARTICLE I
THE MERGER
1.01 THE MERGER. Upon the terms and subject to the conditions of
this Agreement, at the Effective Time (as defined in SECTION 1.03), Merger
Sub shall be merged with and into the Company in accordance with the Business
Corporation Act of the State of Oregon (the "BCA"). At the Effective Time,
the separate existence of Merger Sub shall cease and the Company shall
continue as the surviving corporation in the Merger (the "SURVIVING
CORPORATION"). Merger Sub and the Company are sometimes referred to herein
as the "CONSTITUENT CORPORATIONS". As a result of the Merger, the
outstanding shares of capital stock of
109250
|
 Chase Manhattan
As referenced in this Agreement and Plan of Merger [Amended and Restated]:
Chase Manhattan
Bank – fees and expenses) in connection with such suit, together with
interest on the amount of the fee at the prime rate of The Chase Manhattan
Bank in effect on the date such payment was required to be made.
8.03 AMENDMENT. This Agreement may be amended, supplemented or
modified
_____________
dt 101520
;
Royal Bank
As referenced in this Agreement and Plan of Merger [Amended and Restated]:
Royal Bank of Scotland plc – 3) of the Exchange Act);
(h) the term "RCF" means the Revolving Credit Facility dated June
24, 1996 between, INTER ALIA, ScottishPower, the Royal Bank of Scotland plc
and Union Bank of Switzerland (the "RCF");
(i) the "REPRESENTATIVES" of any entity means such entity's
directors, officers, employees, legal, investment
_____________
dt 225436
;
Morgan Stanley
As referenced in this Agreement and Plan of Merger [Amended and Restated]:
Morgan Stanley Dean Witter – 14 of the Company Disclosure Letter and except for any
reasonable fees and expenses that may be paid by HoldCo or ScottishPower to
Morgan Stanley Dean Witter Discover, Inc. in connection with the Scheme of
Arrangement, no agent, broker, investment banker, financial advisor or other
firm or person is or
_____________
Morgan Stanley Dean Witter – such firm (a true and complete copy of which has been
delivered by the Company to ScottishPower prior to December 6, 1998), and
Morgan Stanley Dean Witter Discover Inc. whose fees and expenses will be paid
by ScottishPower in accordance with ScottishPower's agreement with such firm
(a true and
_____________
dt 126356
;
|
 LeBoeuf Lamb
As referenced in this Agreement and Plan of Merger [Amended and Restated]:
LeBoeuf, Lamb – of the Company, HoldCo and
ScottishPower, of Stoel Rives LLP, counsel to the Company, and LeBoeuf, Lamb ,
Greene & MacRae, LLP, special counsel to the
69
{PAGE}
Company, dated on or about
LeBoeuf, Lamb – Oregon 97232
Facsimile No.: (503) 220-2480
74
{PAGE}
Attn: Dexter E. Martin
and to:
LeBoeuf, Lamb , Greene & MacRae, LLP
125 West 55th Street
New York, NY 10019
Facsimile No.: (212)
dt 38041
;
Milbank Tweed
As referenced in this Agreement and Plan of Merger [Amended and Restated]:
Milbank, Tweed – VII, the consummation of the Merger (the
"CLOSING") will take place at the offices of Milbank, Tweed , Hadley & McCloy,
1 Chase Manhattan Plaza, New York, New York 10005, at 10:00
Milbank, Tweed – have received the opinion, based on appropriate representations of the
Company, HoldCo and ScottishPower, of Milbank, Tweed , Hadley & McCloy LLP,
special counsel to HoldCo and ScottishPower, dated on or about the
Milbank, Tweed – 8FP
Facsimile No.: 011-44-141-248-8300
Attn: Company Secretary
with a copy to:
Milbank, Tweed , Hadley & McCloy LLP
1 Chase Manhattan Plaza
New York, N.Y. 10005
Facsimile No.: (
dt 38298
;
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Agreement and Plan of Merger
Agreement and Plan of Merger (425K)
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================================================================================
AGREEMENT AND PLAN OF MERGER
among
IMC GLOBAL INC.,
SALT HOLDINGS CORPORATION,
YBR HOLDINGS LLC
and
YBR ACQUISITION CORP.
Dated as of October 13, 2001
================================================================================
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TABLE OF CONTENTS
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ARTICLE I DEFINITION OF TERMS
Section 1.1 Certain Definitions......................................................................... 1
Section 1.2 Other Terms................................................................................. 22
Section 1.3 Other Definitional Provisions............................................................... 22
ARTICLE II PRELIMINARY TRANSFERS, THE MERGER; CONVERSION OF SHARES
Section 2.1 Preliminary Transfers....................................................................... 23
Section 2.2 Sale and Purchase........................................................................... 24
Section 2.3 The Merger.................................................................................. 24
Section 2.4 Effective Time.............................................................................. 24
Section 2.5 Closing..................................................................................... 25
Section 2.6 Certificate of Incorporation: By-laws....................................................... 25
Section 2.7 Directors and Officers of the Surviving Corporation and Certain Subsidiaries................ 25
Section 2.8 Conversion of Capital Stock................................................................. 25
Section 2.9 Distribution of Merger Consideration; Payment of Estimated Closing Date
Contribution Amount......................................................................... 27
Section 2.10 Contribution; Adjustment Procedure.......................................................... 28
Section 2.11 Binding Commitment.......................................................................... 32
Section 2.12 Canadian Holdback........................................................................... 32
ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER
Section 3.1 Organization of Seller and the Company; Authority........................................... 32
Section 3.2 Organization of Acquired Companies; Authority............................................... 32
Section 3.3 Authorization; Binding Effect............................................................... 33
Section 3.4 Capitalization; Title to Shares............................................................. 34
Section 3.5 Non-Contravention........................................................................... 34
Section 3.6 Consents and Approvals...................................................................... 35
Section 3.7 Financial Information....................................................................... 35
Section 3.8 Absence of Undisclosed Liabilities.......................................................... 36
Section 3.9 Absence of Certain Changes or Events........................................................ 36
Section 3.10 Title to Properties; Sufficiency of Assets.................................................. 37
Section 3.11 Mines....................................................................................... 38
Section 3.12 Intellectual Property....................................................................... 40
Section 3.13 Litigation; Proceedings..................................................................... 40
Section 3.14 Compliance with Laws........................................................................ 41
Section 3.15 Environmental Matters....................................................................... 42
Section 3.16 Contracts and Commitments................................................................... 44
Section 3.17 Taxes....................................................................................... 46
Section 3.18 Employee Benefit Plans...................................................................... 50
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Section 3.19 Employees................................................................................... 53
Section 3.20 Insurance................................................................................... 55
Section 3.21 Affiliate Transactions...................................................................... 55
Section 3.22 Accounts Receivable......................................................................... 55
Section 3.23 Inventory................................................................................... 55
Section 3.24 Investment Representations.................................................................. 56
Section 3.25 Brokers, Finder's Fees...................................................................... 56
Section 3.26 State Takeover Statutes..................................................................... 56
Section 3.27 WTO Investor; ICA Filing.................................................................... 57
Section 3.28 Business of the Company..................................................................... 57
Section 3.29 Corporate Existence......................................................................... 57
Section 3.30 No Liabilities of the Company............................................................... 57
Section 3.31 No Other Representations or Warranties...................................................... 57
Section 3.32 Disclosure.................................................................................. 57
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PURCHASER
Section 4.1 Organization and Qualification; Authority................................................... 58
Section 4.2 Authority of Purchaser; Binding Effect...................................................... 58
Section 4.3 Non-Contravention........................................................................... 58
Section 4.4 Consents and Approvals...................................................................... 59
Section 4.5 Financial Capability........................................................................ 59
Section 4.6 Securities; Capitalization of Merger Sub.................................................... 59
Section 4.7 Litigation; Proceedings..................................................................... 60
Section 4.8 Compliance with Laws........................................................................ 60
Section 4.9 Business of Merger Sub and Purchaser........................................................ 60
Section 4.10 No Liabilities of Merger Sub................................................................ 61
Section 4.11 Brokers, Finders Fees....................................................................... 61
Section 4.12 Investment Representations.................................................................. 61
Section 4.13 Purchaser Intention......................................................................... 62
Section 4.14 Corporate Existence......................................................................... 62
Section 4.15 No Other Representations or Warranties...................................................... 62
Section 4.16 Disclosure.................................................................................. 62
ARTICLE V COVENANTS
Section 5.1 Access...................................................................................... 62
Section 5.2 Affirmative Covenants for the Conduct of Business........................................... 63
Section 5.3 Negative Covenants for the Conduct of Business.............................................. 64
Section 5.4 Commercially Reasonable Efforts............................................................. 66
Section 5.5 Employee Matters............................................................................ 67
Section 5.6 Insurance Matters........................................................................... 72
Section 5.7 Intercompany Accounts....................................................................... 72
Section 5.8 Financial Information....................................................................... 72
Section 5.9 Announcement................................................................................ 73
Section 5.10 Notification by Purchaser................................................................... 73
Section 5.11 Further Assurances.......................................................................... 74
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Section 5.12 Post-Closing Cooperation................................................................... 74
Section 5.13 Certain Transactions....................................................................... 75
Section 5.14 Release of Certain Liens................................................................... 75
Section 5.15 Exclusivity................................................................................ 75
Section 5.16 Non-Competition, Non-Solicitation and Confidentiality...................................... 76
Section 5.17 Change of Corporate Name................................................................... 80
Section 5.18 Seller's Trademarks........................................................................ 81
Section 5.19 Ancillary Agreements....................................................................... 82
Section 5.20 Bank Consent............................................................................... 82
Section 5.21 Goderich Mine Lease........................................................................ 82
ARTICLE VI CERTAIN TAX MATTERS
Section 6.1 Transfer Taxes............................................................................. 83
Section 6.2 Termination of Tax Sharing Agreement....................................................... 83
Section 6.3 Liability for Taxes and Indemnity.......................................................... 83
Section 6.4 Tax Returns................................................................................ 87
Section 6.5 Refunds, Credits, Adjustments and Allocations of Tax Attributes............................ 88
Section 6.6 Mutual Cooperation......................................................................... 90
Section 6.7 Contests................................................................................... 91
Section 6.8 Resolution of Disagreements................................................................ 91
Section 6.9 Payments................................................................................... 92
Section 6.10 Purchase Price and Contribution Adjustments................................................ 92
Section 6.11 Amendment of Tax Returns................................................................... 92
Section 6.12 Certain Taxes.............................................................................. 92
ARTICLE VII CONDITIONS TO CLOSING
Section 7.1 Conditions to the Obligations of Purchaser and Seller...................................... 93
Section 7.2 Conditions to the Obligations of Purchaser................................................. 94
Section 7.3 Conditions to the Obligations of Seller.................................................... 95
ARTICLE VIII SURVIVAL AND INDEMNIFICATION
Section 8.1 Survival................................................................................... 96
Section 8.2 Indemnification by Purchaser............................................................... 96
Section 8.3 Indemnification by Seller.................................................................. 97
Section 8.4 Limitations on Indemnity................................................................... 98
Section 8.5 Indemnification Procedures................................................................. 99
Section 8.6 Computation of Losses Subject to Indemnification........................................... 101
Section 8.7 Certain Other Matters...................................................................... 102
ARTICLE IX TERMINATION
Section 9.1 Termination............................................................................... 102
Section 9.2 Effect of Termination..................................................................... 103
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3
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ARTICLE X MISCELLANEOUS
Section 10.1 Notices.................................................................................... 104
Section 10.2 Amendment; Waiver.......................................................................... 105
Section 10.3 Assignment................................................................................. 105
Section 10.4 Entire Agreement........................................................................... 105
Section 10.5 Parties in Interest........................................................................ 105
Section 10.6 Expenses................................................................................... 106
Section 10.7 Invalid Provisions......................................................................... 106
Section 10.8 GOVERNING LAW.............................................................................. 106
Section 10.9 Severability............................................................................... 107
Section 10.10 Counterparts............................................................................... 107
Section 10.11 Interpretation............................................................................. 107
{/Table}
4
{Page}
Index of Defined Terms
{Table}
{Caption}
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{S} {C}
Accrued Liability .............................................................. 2, 77
Accrued Liability Determination Date ........................................... 2, 77
Acquired Ancillary Salt Business ............................................... 2, 85
Acquired Companies ............................................................. 2
Acquisition Proposal ........................................................... 3, 83
Actions ........................................................................ 3, 45
Actual Retention Bonuses ....................................................... 3, 34
Actual Sales Bonuses ........................................................... 3, 34
Actual U.K. Funding Amount ..................................................... 3
Additional Acquired Assets ..................................................... 3
Adjustment Demand .............................................................. 3, 93
Affiliate ...................................................................... 3
Affiliated Group ............................................................... 3
Agreement ...................................................................... 2, 4
Apollo ......................................................................... 4
Appraiser ...................................................................... 4, 103
Arbitrator ..................................................................... 4, 78
Attribute Adjustment Payment ................................................... 4, 92
Audited Financial Statements ................................................... 4, 40
Auditor ........................................................................ 4, 35
Bank Commitment Letter ......................................................... 4
Belle Plaine Contract .......................................................... 4, 84
Bridge Commitment Letter ....................................................... 4
Bridge Financing Fee ........................................................... 4, 114
Business Day ................................................................... 4
Business Intellectual Property ................................................. 4
Canadian Plan .................................................................. 4, 56
Canadian Target Tax Amount ..................................................... 4
Capital Expenditure Budget ..................................................... 5
Capital Stock .................................................................. 5
Cash Merger Consideration ...................................................... 5
CERCLA ......................................................................... 5
Certificate of Merger .......................................................... 5, 28
Changes ........................................................................ 5, 96
Claim .......................................................................... 5, 108
Claim Notice ................................................................... 5, 108
Clean Policies ................................................................. 5, 82
Closing ........................................................................ 5, 29
Closing Balance Sheet .......................................................... 5, 33
Closing Date ................................................................... 6, 29
Closing Indebtedness ........................................................... 6, 34
Closing Net Working Capital Amount ............................................. 6, 33
COBRA .......................................................................... 6
Code ........................................................................... 6
Commissioner ................................................................... 6
Commitment Letters ............................................................. 6, 65
Common Stock Certificate ....................................................... 6, 31
Company ........................................................................ 2, 6
Company Common Stock ........................................................... 6
Company Contribution Adjustment ................................................ 6, 36
Company Financial Statements ................................................... 6, 40
Company Material Adverse Effect ................................................ 6, 102
{/Table}
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{Table}
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Company Preferred Stock ........................................................ 6
Competition Act ................................................................ 7
Confidential Information ....................................................... 7, 86
Confidentiality Agreement ...................................................... 7
Contribution ................................................................... 7, 27
Controlled Group ............................................................... 7, 56
Copyrights ..................................................................... 7
Covered Affiliated Group ....................................................... 7
Determination Date ............................................................. 7, 35
DGCL ........................................................................... 2, 7
EBITDA ......................................................................... 7
Effective Time ................................................................. 7, 29
Employee Trust ................................................................. 7
Employee Trust Common Stock .................................................... 8
Employee Trust Company Stock ................................................... 8
Employee Trust Preferred Stock ................................................. 8
Employee(s) .................................................................... 7
Encumbrance Releases ........................................................... 8, 82
Environmental Law .............................................................. 8, 49
Equity Rights .................................................................. 8
ERISA .......................................................................... 8
ERISA Affiliate ................................................................ 8
Escrow Agent ................................................................... 8
Escrow Agreement ............................................................... 8
Esterhazy Loan ................................................................. 8
Estimated Closing Date Company Contribution Adjustment ......................... 8
Estimated Closing Date Contribution Adjustment ................................. 9
Estimated Closing Date Seller Contribution Adjustment .......................... 9
Estimated Closing Indebtedness ................................................. 9, 33
Estimated Closing Net Working Capital Amount ................................... 9, 33
Estimated Interim Period Adjustment Amount ..................................... 9
Estimated Retention Bonuses .................................................... 9, 33
Estimated Sales Bonuses ........................................................ 9, 33
Estimated U.K. Funding Amount .................................................. 9, 33
European Competition Laws ...................................................... 9, 46
Excluded Assets ................................................................ 9
Excluded Liabilities ........................................................... 9
Excluded Subsidiaries .......................................................... 10
Existing Inventory ............................................................. 10, 88
Expired Leases ................................................................. 10, 90
Extended Termination Date ...................................................... 10, 111
Financing ...................................................................... 10, 65
Financing Documents ............................................................ 10, 66
Foreign Acquired Company ....................................................... 10
Foreign Title Assurances ....................................................... 10, 70
GAAP ........................................................................... 10
Governmental Authority ......................................................... 10
Governmental Order ............................................................. 10
GSL ............................................................................ 11
Hazardous Materials ............................................................ 11
Health and Safety Laws ......................................................... 11, 47
HSR Act ........................................................................ 11
ICA ............................................................................ 11
Identified Expenses ............................................................ 11, 107
IMC Savings Plan ............................................................... 11, 75
Improvements ................................................................... 11, 43
{/Table}
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{Table}
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Included Subsidiaries .......................................................... 11
Income Tax ..................................................................... 11
Income Tax Returns ............................................................. 11
Income Taxes ................................................................... 11
Indebtedness ................................................................... 11
Indemnifying Party ............................................................. 12, 108
Initial Termination Date ....................................................... 12, 111
Inorganics ..................................................................... 12
Insurance Policies ............................................................. 12, 60
Intellectual Property .......................................................... 12
Interim Period ................................................................. 12
Interim Period Adjustment Amount ............................................... 12
Interim Period Capital Expenditures ............................................ 12
Interim Period EBITDA .......................................................... 12
Interim Period Interest Adjustment Amount ...................................... 12
Interim Period Taxes ........................................................... 12
Knowledge of Purchaser ......................................................... 13
Knowledge of Seller ............................................................ 13
Laguna Grande .................................................................. 13, 84
Laguna Grande Contract ......................................................... 13, 84
Latest Balance Sheet ........................................................... 13
Law(s) ......................................................................... 13
Leased Real Property ........................................................... 13
Leases ......................................................................... 13
Letter Agreement ............................................................... 13
Liens .......................................................................... 14
Losses ......................................................................... 14, 105
Management Agreements .......................................................... 14, 74
Management Rollover Amount ..................................................... 14
Management Rollover Common Amount .............................................. 14
Management Rollover Common Share Number ........................................ 14
Management Rollover Preferred Amount ........................................... 14
Management Rollover Preferred Share Number ..................................... 14
Merger ......................................................................... 2, 14
Merger Consideration ........................................................... 14, 31
Merger Sub ..................................................................... 2, 14
Mine ........................................................................... 14
Mines .......................................................................... 14
Minister ....................................................................... 14
Multiemployer Plan ............................................................. 15, 56
Net Interim Period Adjustment Amount ........................................... 15
Net Working Capital Amount ..................................................... 15
New Mexico Salt Contract ....................................................... 15
Non-Compete Period ............................................................. 15, 83
Non-Purchased Common Stock ..................................................... 15, 30
Notice Period .................................................................. 15, 108
Objection Notice ............................................................... 16, 93
Offering Materials ............................................................. 16, 79
Offerings ...................................................................... 16, 79
Offset Period .................................................................. 16
Offset Period Start Date ....................................................... 16
OHSA ........................................................................... 60
Orders ......................................................................... 16
Ordinary Course of Business .................................................... 16, 70
OSHA ........................................................................... 16
Other Existing Leases .......................................................... 16, 90
{/Table}
3
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{Table}
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Other Minerals ................................................................. 16
Other Plan Participant ......................................................... 16, 77
Overland Transition Agreement .................................................. 16
Owned Real Property ............................................................ 16
Paid Canadian Tax Amount ....................................................... 16
Patents ........................................................................ 17
PBGC ........................................................................... 17, 57
Permits ........................................................................ 17
Permitted Competitive Activities ............................................... 17, 84
Permitted Encumbrances ......................................................... 17
Permitted Liens ................................................................ 17
Person ......................................................................... 18
Plaintiff ...................................................................... 18, 106
Plan Employee .................................................................. 18, 75
Plans .......................................................................... 18, 56
Post-Closing Period ............................................................ 18, 92
Pre-Closing Period ............................................................. 18, 92
Preferred Stock Certificate .................................................... 18, 31
Preliminary Transfer Documents ................................................. 18, 102
Preliminary Transfers .......................................................... 18, 27
Present Value .................................................................. 18, 94
Pro Forma Basis ................................................................ 18
PSO ............................................................................ 19
Purchase Consideration ......................................................... 19
Purchased Common Stock ......................................................... 19
Purchased Company Stock ........................................................ 20
Purchased Preferred Stock ...................................................... 20
Purchaser ...................................................................... 20
Purchaser Disclosure Letter .................................................... 20
Purchaser Indemnified Parties .................................................. 20, 105, 106
Purchaser Material Adverse Effect .............................................. 20, 103
Purchaser Pension Plan ......................................................... 20, 76
Purchaser Plans ................................................................ 20, 74
Purchaser's Knowledge .......................................................... 13
Push-back Days ................................................................. 20
Push-back Event ................................................................ 20
Rail Car Lease ................................................................. 21
Real Property .................................................................. 21
Recipient ...................................................................... 21, 98
Release ........................................................................ 21, 49
Renewed Lease .................................................................. 21, 90
Restated Certificate of Incorporation .......................................... 21
Retention Bonuses .............................................................. 21
Sales Bonuses .................................................................. 21
Sales Tax ...................................................................... 21
Salt ........................................................................... 21
Salt Account Plan .............................................................. 22, 75
Secretary of State ............................................................. 22, 28
Securities Act ................................................................. 22
Seller ......................................................................... 2, 22
Seller Confidential Information ................................................ 22, 87
Seller Contribution Adjustment ................................................. 22, 35
Seller Disclosure Letter ....................................................... 22
Seller Group ................................................................... 22
Seller Indemnified Parties ..................................................... 22, 105
Seller Pension Plan ............................................................ 22, 76
{/Table}
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Seller Retained Common Stock.................................................... 22, 32
Seller's Knowledge.............................................................. 13
Seller's Marks.................................................................. 22, 88
Senior Executive Plan........................................................... 22, 79
Shares.......................................................................... 22
Solvency Letter ................................................................ 22, 103
SOP ............................................................................ 22
SOP Agreement .................................................................. 22
Specified Manager .............................................................. 23
Specified Managers ............................................................. 102
Split Tax Period ............................................................... 23, 92
Stock Purchase ................................................................. 23
Stock Rights Agreement ......................................................... 23
Subsidiary ..................................................................... 23
Supply Agreements .............................................................. 23
Surviving Corporation .......................................................... 23, 28
Surviving Corporation Common Stock ............................................. 23
Surviving Corporation Notes .................................................... 23
Surviving Corporation Preferred Stock .......................................... 23
Target Net Working Capital ..................................................... 24
Tax ............................................................................ 24
Tax Attribute .................................................................. 24, 92
Tax Attribute Deficiency ....................................................... 24, 93
Tax Claim ...................................................................... 24, 98
Tax Rate ....................................................................... 24, 94
Tax Return ..................................................................... 24
Taxable Income ................................................................. 24
Taxes .......................................................................... 24
Third Party Consent ............................................................ 24
Title Commitments .............................................................. 25
Title Policies ................................................................. 25
Trademarks ..................................................................... 25
Transaction .................................................................... 25
Transaction Claims ............................................................. 25, 106
Transaction Documents .......................................................... 25
Transaction Expenses ........................................................... 25
Transferred Accounts ........................................................... 25, 75
Transition Services Agreement .................................................. 25
U.K. Acquired Company .......................................................... 25, 55
U.K. Loans ..................................................................... 26
U.K. Plan ...................................................................... 26, 56
U.K. Tax ....................................................................... 26
U.S. Plan ...................................................................... 26, 56
Unaudited Financial Statements ................................................. 26, 40
United Salt Contract ........................................................... 26
WARN ........................................................................... 26, 59, 75
WTO Investor ................................................................... 26
YPS ............................................................................ 49
{/Table}
5
{Page}
AGREEMENT AND PLAN OF MERGER, among IMC Global Inc., a Delaware
corporation ("Seller"), and Salt Holdings Corporation, a Delaware corporation
and an indirect, wholly owned subsidiary of Seller (the "Company"), on the one
hand, and on the other hand, YBR Holdings LLC, a Delaware limited liability
company ("Purchaser"), and YBR Acquisition Corp., a Delaware corporation, a
wholly-owned subsidiary of Purchaser ("Merger Sub"), dated as of October 13,
2001 (this "Agreement").
WHEREAS, the boards of directors of Seller, the Company,
Purchaser and Merger Sub have approved this Agreement and determined this
Agreement to be advisable and have approved the transactions contemplated
hereby, including the merger of Merger Sub with and into the Company (the
"Merger") in accordance with the terms of this Agreement and the General
Corporation Law of the State of Delaware (the "DGCL"); and
WHEREAS, the board of directors of the Company has approved the
form of amendment to the Company's restated certificate of incorporation giving
effect to the Restated Certificate of Incorporation (as defined herein) and
determined it to be advisable; and
NOW, THEREFORE, in consideration of the covenants and
undertakings contained herein, and on the terms and subject to the conditions
herein set forth, the parties hereto, intending to be legally bound, agree as
follows:
ARTICLE I
DEFINITION OF TERMS
Section 1.1 CERTAIN DEFINITIONS. As used in this Agreement, the
following terms shall have the meanings set forth or as referenced below:
"ACCRUED LIABILITY" shall have the meaning set forth in Section
5.5(h).
"ACCRUED LIABILITY DETERMINATION DATE" shall have the meaning set
forth in Section 5.5(h).
"ACQUIRED ANCILLARY SALT BUSINESS" shall have the meaning set
forth in Section 5.16(a)(v).
"ACQUIRED COMPANIES" shall mean (i) the Company and (ii) each of
the following entities (which shall be subsidiaries of the Company following the
Preliminary Transfers): IMC Inorganic Chemicals Inc.; GSL Corporation; IMC
Kalium Ogden Corp.; NAMSCO INC.; IMC Salt Inc.; Carey Salt Company; Sifto Canada
Inc.; IMC Global (Europe) Limited; IMC Global (U.K.) Limited; Salt Union
Limited; London Salt Limited; Direct Salt Supplies Limited; J.T. Lunt & Co.
(Nantwich) Limited.
"ACQUISITION PROPOSAL" shall have the meaning set forth in
Section 5.15(a).
"ACTIONS" shall have the meaning set forth in Section 3.13(a).
"ACTUAL RETENTION BONUSES" shall have the meaning set forth in
Section 2.10(c).
{Page}
"ACTUAL SALES BONUSES" shall have the meaning set forth in
Section 2.10(c).
"ACTUAL U.K. FUNDING AMOUNT" shall mean the amount, if any, as
determined by the Salt Union Limited's actuary, that would be necessary to bring
the funding level of the U.K. Plan to a 90% level on a Minimum Funding
Requirement basis pursuant to Section 56 of the Pensions Act 1995 at Closing.
"ADDITIONAL ACQUIRED ASSETS" shall mean (i) the contracts solely
relating to, and copies of customer lists, other contracts, data bases, sales
records and books and records (or portions of such data bases, sales records and
books and records), in each case only to the extent used by Seller or its
Subsidiaries in connection with, the sales and marketing of SOP produced or sold
by the Acquired Companies or (to the extent of copies only) IMC USA, Inc. or its
affiliates (excluding such information with respect to the Royster, Scott and
Howards accounts); (ii) certain assets located at Seller's premises in
Hutchinson, Kansas, which assets are listed in Section 1.1(a) of the Purchaser
Disclosure Letter; (iii) the right to proceeds or benefits from insurance
policies of Seller or any of its subsidiaries covering Losses by any of the
Acquired Companies with respect to any event or condition that occurred or
existed prior to the date of this Agreement (other than those proceeds and
benefits described in clause (iv) of the definition of Excluded Assets); and
(iv) the right to proceeds or benefits from insurance policies of the Seller or
any of its Affiliates covering Losses by any of the Acquired Companies with
respect to any event or condition that occurred or came into existence between
the date of this Agreement and the Closing Date, net of any expenditures made by
the Seller or any of its subsidiaries to remedy such Loss after the date of this
Agreement, which benefits will not be removed from the appropriate Acquired
Company prior to the Closing Date, provided that no netting of expenditures will
be made to the extent that any such proceeds or benefits (that would have been
reimbursed to Seller or any of its Affiliates) are necessary to remedy such Loss
following the Closing Date.
"ADJUSTMENT DEMAND" shall have the meaning set forth in Section
6.3(f)(i).
"AFFILIATE" shall mean, with respect to any Person, any other
Person directly or indirectly controlling, controlled by, or under common
control with, such Person at any time during the period for which the
determination of affiliation is being made.
"AFFILIATED GROUP" shall mean an affiliated group as defined in
Code ss. 1504 (or any similar combined, consolidated or unitary group defined
under state, local or foreign Income Tax law).
"AGREEMENT" shall have the meaning ascribed to it in the preamble
hereto, as amended or supplemented from time to time in accordance with the
terms hereof.
"APOLLO" shall mean Apollo Management, L.P.
"APPRAISER" shall have the meaning set forth in Section 7.3(d).
"ARBITRATOR" shall have the meaning set forth in Section 5.5(h).
113063
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Chase Manhattan
As referenced in this Agreement and Plan of Merger:
Chase Manhattan Bank, – the meaning set forth in Section 2.10(c).
"BANK COMMITMENT LETTER" shall mean the commitment letter for the
Bank financing from The Chase Manhattan Bank, J.P. Morgan Securities, Inc.
Deutsche Banc Alex Brown Inc. and Bankers Trust Company dated October 13, 2001
attached to Section 4.
_____________
Chase Manhattan Bank, – Section 5.16(a)(i).
"BRIDGE COMMITMENT LETTER" shall mean the commitment letter for
the bridge financing from Credit Suisse First Boston, The Chase Manhattan Bank,
J.P. Morgan Securities, Inc. and Bankers Trust Company dated October 13, 2001
attached to Section 4.5 of the Purchase Disclosure
_____________
dt 101531
;
Chicago Title
As referenced in this Agreement and Plan of Merger:
Chicago Title
Insurance – Company.
"TITLE COMMITMENTS" shall mean a commitment for a 1999 ALTA
Owner's Title Insurance Policy or other form of policy issued by Chicago Title
Insurance Company for each parcel of Real Property, together with a copy of all
documents referenced therein.
"TITLE POLICIES" shall mean title insurance policies
_____________
Chicago
Title Insurance – for each parcel of Real Property, together with a copy of all
documents referenced therein.
"TITLE POLICIES" shall mean title insurance policies from Chicago
Title Insurance Company (which may be in the form of a mark-up of the pro forma
Title Commitments), insuring the appropriate Acquired Company's
_____________
Chicago Title Insurance – or, in
the event such Encumbrance Releases are not available on or prior to the Closing
Date, use its best efforts to cause Chicago Title Insurance Company or its agent
to insure over or omit such Liens from the Title Policies or Foreign Title
Assurance to be obtained by
_____________
Chicago Title
Insurance – Foreign Title
Assurance to be obtained by the Purchaser in connection with any Real Property
("Clean Policies"), (including providing an indemnity to the Chicago Title
Insurance Company, if so requested, regarding any payments that may be due under
the Liens set forth in Section 5.14 of the Seller
_____________
dt 157760
;
Citibank
As referenced in this Agreement and Plan of Merger:
Citibank, N.A. – shall mean the present
value, on the date on which such Attribute Adjustment Payment is due, calculated
by using the "base rate" of Citibank, N.A. then in effect as the discount rate
and calculated from the due date of the Income Tax Returns for the periods in
_____________
Citibank, N.A. – such portion shall
bear interest from the date of such payment, if earlier) until the date of
payment at the "base rate" of Citibank, N.A. or any successor thereto in New
York. All payments made pursuant to this Article VI shall be adjusted as
provided in Section
_____________
dt 145766
;
|
IMC Global
As referenced in this Agreement and Plan of Merger:
IMC GLOBAL – 1
{SEQUENCE}3
{Page}
Exhibit 2.1
EXECUTION COPY
================================================================================
AGREEMENT AND PLAN OF MERGER
among
IMC GLOBAL INC.,
SALT HOLDINGS CORPORATION,
YBR HOLDINGS LLC
and
YBR ACQUISITION CORP.
Dated as of October
IMC Global – 75
WTO Investor ................................................................... 26
YPS ............................................................................ 49
{/Table}
5
{Page}
AGREEMENT AND PLAN OF MERGER, among IMC Global Inc., a Delaware
corporation ("Seller"), and Salt Holdings Corporation, a Delaware corporation
and an indirect,
IMC Global – IMC
Kalium Ogden Corp.; NAMSCO INC.; IMC Salt Inc.; Carey Salt Company; Sifto Canada
Inc.; IMC Global (Europe) Limited; IMC Global (U.K.) Limited; Salt Union
Limited; London Salt Limited; Direct
IMC Global – NAMSCO INC.; IMC Salt Inc.; Carey Salt Company; Sifto Canada
Inc.; IMC Global (Europe) Limited; IMC Global (U.K.) Limited; Salt Union
Limited; London Salt Limited; Direct Salt Supplies Limited; J.
IMC Global – Chemicals North America, Inc., The Hutchinson & Northern Railway Company,
IMC Chemicals
17
{Page}
Inc. and IMC Global Inc., providing for the sublease or assignment of leases by
Harris Chemicals North America, Inc.,
dt 21780
;
PRP
As referenced in this Agreement and Plan of Merger:
Phosphate Resource
Partners – the mining, production, processing, sale, barter,
trade, distribution, and marketing of Salt and SOP by Phosphate Resource
Partners Limited Partnership, IMC Phosphates Company and their respective
subsidiaries; provided that Seller Group shall not
Phosphate Resource Partners – that Seller Group shall not directly or indirectly supply
or sell Salt or SOP to Phosphate Resource Partners Limited Partnership, IMC
Phosphates Company or their respective subsidiaries, except that the Seller
Group may
Phosphate Resource Partners – to be increased by two percent on each twelve month anniversary of this
Agreement) to Phosphate Resource Partners Limited Partnership, IMC Phosphates
Company and their respective subsidiaries if such SOP is not resold
dt 27277
;
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