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$99	Preview Full Doc	2003	Agreement and Plan of Merger Agreement and Plan of Merger (400K) Doc #115761: Click preview link for longer preview. AGREEMENT AND PLAN OF MERGER among PENNSYLVANIA REAL ESTATE INVESTMENT TRUST, PREIT ASSOCIATES, L.P., CROWN AMERICAN REALTY TRUST, and CROWN AMERICAN PROPERTIES, L.P. Dated as of May 13, 2003 {PAGE} TABLE OF CONTENTS {TABLE} {CAPTION} Page ---- {S} {C} ARTICLE 1 THE MERGER...........................................................................................4 1.1 Pre-Merger Transactions...........................................................................4 1.2 The Merger........................................................................................5 1.3 Post-Merger Contribution Transactions.............................................................6 1.4 Closing...........................................................................................6 1.5 Effect of Merger on Trust Agreement and Bylaws....................................................6 1.6 Trustees of PREIT.................................................................................6 1.7 Effect on Shares..................................................................................8 1.8 Merger Consideration..............................................................................8 1.9 Partner Approval..................................................................................9 1.10 Appraisal or Dissenters Rights...................................................................10 1.11 Exchange of Certificates; Pre-Closing Dividends; Fractional Shares...............................10 ARTICLE 2 REPRESENTATIONS AND WARRANTIES OF CROWN AND CROWN PARTNERSHIP.......................................14 2.1 Organization, Standing and Power.................................................................14 2.2 Crown Subsidiaries...............................................................................15 2.3 Capital Structure................................................................................16 2.4 Other Interests..................................................................................18 2.5 Authority; Noncontravention; Consents............................................................19 2.6 SEC Documents; Financial Statements; Undisclosed Liabilities.....................................21 2.7 Absence of Certain Changes or Events.............................................................22 2.8 Litigation.......................................................................................23 2.9 Properties.......................................................................................23 2.10 Environmental Matters............................................................................27 2.11 Related Party Transactions.......................................................................29 2.12 Employee Benefits................................................................................29 2.13 Employee Plans and Employees.....................................................................32 2.14 Taxes............................................................................................33 2.15 No Payments to Employees, Officers or Trustees...................................................36 2.16 Broker; Schedule of Fees and Expenses............................................................37 2.17 Compliance with Laws.............................................................................37 2.18 Contracts; Debt Instruments......................................................................37 2.19 Opinions of Financial Advisor....................................................................40 2.20 State Takeover Statutes..........................................................................40 2.21 Rights Agreement.................................................................................40 2.22 Investment Company Act of 1940...................................................................41 2.23 Definition of Knowledge of Crown.................................................................41 2.24 Required Shareholder Approvals and Partner Approvals.............................................41 2.25 Intellectual Property............................................................................41 2.26 Documents........................................................................................41 {/TABLE} -i- {PAGE} {TABLE} {CAPTION} {S} {C} ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF PREIT AND PREIT PARTNERSHIP.......................................42 3.1 Organization, Standing and Power.................................................................42 3.2 PREIT Subsidiaries...............................................................................42 3.3 Capital Structure................................................................................43 3.4 Other Interests..................................................................................45 3.5 Authority; Noncontravention; Consents............................................................46 3.6 SEC Documents; Financial Statements; Undisclosed Liabilities.....................................48 3.7 Absence of Certain Changes or Events.............................................................48 3.8 Litigation.......................................................................................49 3.9 Properties.......................................................................................50 3.10 Environmental Matters............................................................................53 3.11 Related Party Transactions.......................................................................54 3.12 Employee Benefits................................................................................55 3.13 Employee Plans and Employees.....................................................................57 3.14 Taxes............................................................................................58 3.15 No Payments to Employees, Officers or Trustees...................................................60 3.16 Brokers; Schedule of Fees and Expenses...........................................................60 3.17 Compliance with Laws.............................................................................61 3.18 Contracts; Debt Instruments......................................................................61 3.19 Opinion of Financial Advisor.....................................................................63 3.20 State Takeover Statutes..........................................................................63 3.21 Intentionally omitted............................................................................63 3.22 Investment Company Act of 1940..................................................................63 3.23 Definition of Knowledge of PREIT.................................................................63 3.24 Required Shareholder Approvals and Partner Approvals.............................................63 3.25 Intellectual Property............................................................................63 3.26 Documents........................................................................................64 ARTICLE 4 COVENANTS...........................................................................................64 4.1 Conduct of Crown's and Crown Partnership's Business Pending Merger...............................64 4.2 Conduct of PREIT's and PREIT Partnership's Business Pending Merger...............................70 4.3 No Solicitation..................................................................................74 4.4 Affiliates.......................................................................................77 4.5 Other Actions....................................................................................78 ARTICLE 5 ADDITIONAL COVENANTS................................................................................78 5.1 Preparation of the Form S-4 and the Proxy Statement; Crown Shareholders Meeting, Crown Unitholders Consent Solicitation, PREIT Shareholders Meeting and PREIT Unitholders Consent Solicitation.................................................................78 5.2 Access to Information; Confidentiality...........................................................82 5.3 Commercially Reasonable Efforts; Notification....................................................82 5.4 Tax Matters......................................................................................83 5.5 Public Announcements.............................................................................83 {/TABLE} -ii- {PAGE} {TABLE} {CAPTION} {S} {C} 5.6 Listing..........................................................................................84 5.7 Transfer and Gains Taxes.........................................................................84 5.8 Benefit Plans and Other Employee Arrangements....................................................84 5.9 Indemnification..................................................................................90 5.10 Declaration of Dividends and Distributions.......................................................94 5.11 Resignations.....................................................................................95 5.12 Registration Rights Agreements and Exchange Agreements...........................................95 5.13 Merger Documents.................................................................................95 5.14 Performance of Pre-Merger Transactions...........................................................96 5.15 Performance of Post-Merger Transactions..........................................................96 5.16 Estoppel Certificates............................................................................96 5.17 Performance of Agreements........................................................................97 5.18 No Amendment or Modification.....................................................................97 ARTICLE 6 CONDITIONS..........................................................................................97 6.1 Conditions to Each Party's Obligation to Effect the Pre-Merger Transactions and the Merger.......................................................................................97 6.2 Conditions to Obligations of PREIT and PREIT Partnership to Effect the Pre-Merger Transactions and the Merger......................................................................98 6.3 Conditions to Obligations of Crown and Crown Partnership to Effect the Pre-Merger Transactions and the Merger.....................................................................100 6.4 Conditions of Each Party's Obligation to Effect the Closing Date Transactions...................102 ARTICLE 7 TERMINATION, AMENDMENT AND WAIVER..................................................................102 7.1 Termination.....................................................................................102 7.2 Termination After the Pre-Merger Transfer Date..................................................107 7.3 Certain Fees and Expenses.......................................................................107 7.4 Effect of Termination...........................................................................111 7.5 Amendment.......................................................................................111 7.6 Extension; Waiver...............................................................................111 ARTICLE 8 GENERAL PROVISIONS.................................................................................112 8.1 Nonsurvival of Representations and Warranties...................................................112 8.2 Notices.........................................................................................112 8.3 Interpretation..................................................................................114 8.4 Counterparts....................................................................................114 8.5 Entire Agreement; No Third-Party Beneficiaries..................................................114 8.6 Governing Law...................................................................................114 8.7 Assignment......................................................................................114 8.8 Enforcement.....................................................................................115 8.9 Severability....................................................................................115 8.10 Exculpation.....................................................................................115 8.11 Joint and Several Obligations...................................................................115 {/TABLE} -iii- {PAGE} EXHIBITS Exhibit A -- Form of Pennsylvania Articles of Merger Exhibit B -- Form of Maryland Articles of Merger Exhibit C-1 -- Form of Amendment to CFLP Limited Partnership Agreement Exhibit C-2 -- Form of Amendment to WCLP Limited Partnership Agreement Exhibit D -- Form of Crown Partnership Amendment and Restatement Exhibit E -- Form of PREIT Trust Amendment Exhibit F-1 -- Form of Assumed Registration Rights Agreement Exhibit F-2 -- Form of Assumed Exchange Agreement Exhibit G -- Form of Shareholder Agreement Exhibit H -- Form of Non-Competition Agreement Exhibit I -- Form of Pasquerilla Registration Rights Agreement Exhibit J -- Form of Standstill Agreement Exhibit K -- Form of Pasquerilla Tax Protection Agreement Exhibit L -- Form of Crown Estoppel Certificate Exhibit M -- Form of PREIT Estoppel Certificate -iv- {PAGE} List of Schedules Schedule 1.6(a) Schedule 2.2(a) Schedule 2.2(b) Schedule 2.2(l) Schedule 2.3(b) Schedule 2.3(e) Schedule 2.3(f) Schedule 2.3(g) Schedule 2.4 Schedule 2.5(c)(1) Schedule 2.5(c)(2) Schedule 2.6(a) Schedule 2.6(b) Schedule 2.7 Schedule 2.8 Schedule 2.9(a) Schedule 2.9(b) Schedule 2.9(c) Schedule 2.9(d) Schedule 2.9(f) Schedule 2.9(h) Schedule 2.9(i) Schedule 2.10(b)(iv) Schedule 2.10(b)(v) Schedule 2.11 Schedule 2.12 Schedule 2.12(a) Schedule 2.13 Schedule 2.13(b)(1) Schedule 2.13(b)(2) Schedule 2.14(a) Schedule 2.15 Schedule 2.18(a) Schedule 2.18(b) Schedule 2.18(c) Schedule 2.18(d) Schedule 2.18(e) Schedule 2.18(f) Schedule 2.18(g) Schedule 2.18(h) Schedule 2.18(i) Schedule 2.18(j) Schedule 2.23 -v- {PAGE} Schedule 2.25 Schedule 3.2(a) Schedule 3.2(b) Schedule 3.3(b) Schedule 3.3(e) Schedule 3.3(f) Schedule 3.3(g) Schedule 3.4 Schedule 3.5(c)(1) Schedule 3.5(c)(2) Schedule 3.6(a) Schedule 3.6(b) Schedule 3.6(c) Schedule 3.7 Schedule 3.7(f) Schedule 3.8 Schedule 3.9(a) Schedule 3.9(b) Schedule 3.9(c) Schedule 3.9(d) Schedule 3.9(f) Schedule 3.9(h) Schedule 3.10(b)(v) Schedule 3.11 Schedule 3.13 Schedule 3.13(b) Schedule 3.15 Schedule 3.18(b) Schedule 3.18(c) Schedule 3.18(d) Schedule 3.18(e)(1) Schedule 3.18(e)(2) Schedule 3.18(h) Schedule 3.18(i) Schedule 3.18(j) Schedule 3.23 Schedule 3.25 Schedule 4.1(j) Schedule 4.1(dd) Schedule 4.2(j) Schedule 4.2(o) Schedule 5.3(a)(ii) Schedule 5.12 Schedule 5.16(a) Schedule 5.16(b) Schedule 6.1(g)(i) Schedule 6.1(g)(ii) -vi- {PAGE} Index of Defined Terms 3rd Amendment to CFSA...............................................Recital P 4th Amendment to CFSA...............................................Recital P 7th Amendment to Crown Partnership Agreement........................Recital P 8th Amendment to Crown Partnership Agreement........................Recital P 1940 Act.................................................................2.22 Acquiring Person.........................................................2.21 Acquisition Proposal................................................4.3(a)(i) Affiliate................................................................2.11 Agreement............................................................Preamble AICPA Statement........................................................5.1(b) Alternative Proposal...................................................7.1(j) Anchor Tenants.........................................................2.9(e) Assumed Employee Plans.................................................5.8(c) Assumed Exchange Agreement...............................................5.12 Assumed Registration Rights Agreement....................................5.12 Base Expense Amount....................................................7.3(e) Base Fee Amount........................................................7.3(d) Board Right Termination Date...........................................1.6(a) Break-Up Expenses......................................................7.3(e) Break-Up Expenses Recipient............................................7.3(e) Break-Up Expenses Tax Opinion..........................................7.3(e) Break-Up Fee...........................................................7.3(d) Break-Up Fee Recipient.................................................7.3(c) Break-Up Fee Tax Opinion...............................................7.3(d) Capital Expenditure Budget.............................................4.1(j) CAIC................................................................Recital M CASC..................................................................2.13(b) CDHC................................................................Recital O CERCLA................................................................2.10(a) Certificate............................................................1.8(c) CFLP................................................................Recital P CIT.................................................................Recital G Claims.................................................................5.9(a) Class B Designee..........................................................1.6 Closing Date..............................................................1.4 Closing...................................................................1.4 COBRA.................................................................2.12(a) Code................................................................Recital E Commitment.............................................................4.1(j) Confidentiality Agreement..............................................4.3(b) Corresponding PREIT Dividends and Distributions...................1.11(d)(ii) -vii- {PAGE} Crown................................................................Preamble Crown Acquisition Agreement............................................7.3(a) Crown Bylaws..............................................................2.1 Crown Common Share.....................................................1.8(a) Crown Controlled Group Member............................................2.12 Crown Declaration of Trust................................................2.1 Crown Disclosure Letter................................................Art. 2 Crown Employee Plan......................................................2.12 Crown Estoppel Certificates...........................................5.16(a) Crown Financial Statement Date............................................2.7 Crown Ground Lease.....................................................2.9(a) Crown Insured Parties..................................................5.9(c) Crown Material Adverse Effect.............................................2.1 Crown OP Units......................................................Recital M Crown Options..........................................................2.3(b) Crown Other Interests.....................................................2.4 Crown Partner Approvals...................................................1.9 Crown Partnership....................................................Preamble Crown Partnership Agreement...............................................1.9 Crown Partnership Amendment and Restatement...............................1.3 Crown Partnership Contribution Agreement............................Recital K Crown Partnership Distribution Agreement............................Recital H Crown Partnership Option...............................................2.3(b) Crown Permitted Title Exceptions.......................................2.9(a) Crown Pre-Merger Conditions Certificate................................6.2(j) Crown Properties.......................................................2.9(a) Crown Reciprocal Operating Agreements..................................2.9(f) Crown Rent Roll........................................................2.9(e) Crown Representative...............................................4.3(a)(ii) Crown Rights.............................................................2.21 Crown Rights Agreement...................................................2.21 Crown SEC Documents.......................................................2.6 Crown Senior Preferred OP Units.....................................Recital J Crown Senior Preferred Share...........................................1.8(b) Crown Share Rights.....................................................2.3(b) Crown Shareholder Approval.............................................2.5(a) Crown Shareholders Meeting.............................................5.1(d) Crown Space Lease......................................................2.9(e) Crown Subsidiaries.....................................................2.2(a) Crown Tax Protection Agreement........................................2.18(j) Crown Trustee Option...................................................2.3(b) Crown Voting Agreements.............................................Recital M Department.............................................................1.2(b) Distribution Date........................................................2.21 DRIP...................................................................2.7(c) Effective Time.........................................................1.2(b) -viii- {PAGE} Employee Plan..........................................................5.8(c) Enabling Trust Agreement Amendment........................................1.7 Encumbrances...........................................................2.9(a) Environmental Law.....................................................2.10(a) Environmental Mitigation...............................................2.9(d) Environmental Permits.............................................2.10(b)(iv) ERISA....................................................................2.12 Exchange Act..............................................................2.6 Exchange Agent........................................................1.11(a) Exchange Agreement..................................................Recital G Exchange Fund.........................................................1.11(b) Final Crown Dividend...............................................1.11(d)(i) Final Crown Partnership Distribution...............................1.11(d)(i) Flip-Over Entity.........................................................2.21 Form S-4...............................................................5.1(a) Former Crown Properties...........................................2.10(b)(ii) Former PREIT Properties...........................................3.10(b)(ii) GAAP......................................................................2.6 Governmental Entity....................................................2.5(c) Hazardous Materials...................................................2.10(a) Hired Employees........................................................5.8(a) HSR Act................................................................2.5(c) Indebtedness..........................................................2.18(b) Indemnification Agreement...........................................Recital O Indemnification Parties................................................5.9(b) Indemnified Parties....................................................5.9(a) Indemnifying Parties...................................................5.9(a) IRS..............................................................2.12(b)(iii) Joint Proxy Statement..................................................5.1(a) Knowledge of Crown.......................................................2.23 Knowledge of PREIT.......................................................3.23 Laws...................................................................2.5(c) Liens..................................................................2.2(b) Maryland Articles of Merger ........................................Recital D Merger..............................................................Recital A Merger Consideration......................................................1.8 Merger Documents.........................................................5.13 Minimum Acquisition Proposal Percentage.............................4.3(a)(i) MSDAT..................................................................1.2(b) Non-Competition Agreement.............................................5.13(b) NYSE......................................................................5.6 Operating Budget.......................................................4.1(j) Option Date............................................................5.8(g) Other Tenants..........................................................2.9(e) Partner Approvals.........................................................1.9 Pasquerilla Group......................................................1.6(a) -ix- {PAGE} Pasquerilla Registration Rights Agreement.............................5.13(c) Pasquerilla Tax Protection Agreement..................................5.13(e) Payor..................................................................7.3(c) Pennsylvania Articles of Merger.....................................Recital C Pennsylvania Code......................................................1.2(a) Pension Plan.............................................................2.12 Person.................................................................2.2(a) Post-Merger Contribution Transactions.....................................1.3 PREIT................................................................Preamble PREIT Bylaws..............................................................1.5 PREIT Class A Units.................................................Recital J PREIT Class B Units.................................................Recital K PREIT Common Shares....................................................1.8(a) PREIT Contribution Agreement........................................Recital J PREIT Controlled Group Member.........................................3.12(a) PREIT Counter Proposal.................................................4.3(c) PREIT Disclosure Letter.............................................Article 3 PREIT Employee Plan...................................................3.12(a) PREIT Estoppel Certificates...........................................5.16(b) PREIT Financial Statement Date............................................3.7 PREIT Ground Lease.....................................................3.9(a) PREIT Material Adverse Effect.............................................3.1 PREIT OP Units....................................................1.11(d)(ii) PREIT Options..........................................................3.3(b) PREIT Other Interests.....................................................3.4 PREIT Partner Approvals...................................................1.9 PREIT Partnership....................................................Preamble PREIT Partnership Agreement...............................................1.9 PREIT Partnership Amendment...............................................1.9 PREIT Permitted Title Exceptions.......................................3.9(a) PREIT Pre-Merger Conditions Certificate................................6.3(i) PREIT Properties.......................................................3.9(a) PREIT Reciprocal Operating Agreements..................................3.9(f) PREIT Rent Roll........................................................3.9(e) PREIT Rights...........................................................1.8(a) PREIT Rights Agreement.................................................1.8(a) PREIT SEC Documents.......................................................3.6 PREIT Senior Preferred OP Units.....................................Recital J PREIT Senior Preferred Share...........................................1.8(b) PREIT Shareholder Approval.............................................3.5(a) PREIT Shareholders Meeting.............................................5.1(c) PREIT Space Lease......................................................3.9(c) PREIT Subsidiaries.....................................................3.2(a) PREIT Tax Protection Agreement........................................3.18(j) PREIT Trust Agreement.....................................................1.5 PREIT Trust Amendment.....................................................1.7 -x- {PAGE} PREIT Voting Agreements.............................................Recital N Pre-Merger Transactions...................................................1.1 Pre-Merger Transfer Date..................................................6.1 Property Restrictions..................................................2.9(a) Qualified Crown Acquisition............................................7.3(a) Qualifying Income......................................................7.3(d) REIT..................................................................2.14(b) REIT Requirements......................................................7.3(d) Release...............................................................2.10(a) Reserved PREIT OP Units.............................................Recital K Retained LP Interests...............................................Recital K SEC....................................................................2.5(c) Securities Act.........................................................2.3(g) Share Acquisition Date...................................................2.21 Shareholder Agreement.................................................5.13(a) Shareholder Approvals..................................................3.5(a) Solicited Employees....................................................5.8(a) Standstill Agreement..................................................5.13(d) Subsidiary.............................................................2.2(a) Substituted Partnership Option.........................................5.8(g) Substituted Trustee Option.............................................5.8(f) Successor Employer.....................................................5.8(a) Superior Acquisition Proposal..........................................4.3(d) Surviving Trust........................................................1.2(a) Takeover Statute.........................................................2.20 Taxes.................................................................2.14(a) Third Party Provisions....................................................8.5 Title 3................................................................1.2(a) Title 8................................................................1.2(a) Top-Hat Plans..........................................................5.8(e) Transfer............................................................4.3(a)(i) Transfer and Gains Taxes..................................................5.7 WARN Act...........................................................2.13(b)(1) WCLP................................................................Recital K Welfare Plan.............................................................2.12 -xi- {PAGE} AGREEMENT AND PLAN OF MERGER THIS AGREEMENT AND PLAN OF MERGER (this "Agreement"), dated as of May 13, 2003, is entered into by and among PENNSYLVANIA REAL ESTATE INVESTMENT TRUST, a Pennsylvania business trust ("PREIT"), PREIT ASSOCIATES, L.P., a Delaware limited partnership ("PREIT Partnership"), CROWN AMERICAN REALTY TRUST, a Maryland real estate investment trust ("Crown"), and CROWN AMERICAN PROPERTIES, L.P., a Delaware limited partnership ("Crown Partnership"). R E C I T A L S: A. The Board of Trustees of PREIT and the Board of Trustees of Crown deem it advisable and, among other appropriate considerations, in the best interests of each of PREIT and Crown, respectively, and their respective shareholders, upon the terms and subject to the conditions contained herein, that Crown shall merge with and into PREIT (the "Merger"). B. PREIT, as the sole general partner of PREIT Partnership, and Crown, as the sole general partner of Crown Partnership, deem it advisable and, among other appropriate considerations, in the best interests of each of PREIT Partnership and Crown Partnership, respectively, and their respective limited partners, subject to the conditions and other provisions contained herein, that PREIT Partnership and Crown Partnership shall consummate certain transactions contemplated in connection with the Merger and further described herein. C. Upon the terms and subject to the conditions set forth herein, immediately prior to the Merger, PREIT and Crown shall execute Articles of Merger (the "Pennsylvania Articles of Merger") in substantially the form attached hereto as Exhibit A and shall file such Pennsylvania Articles of Merger in accordance with Pennsylvania law to effectuate the Merger. D. Upon the terms and subject to the conditions set forth herein, immediately prior to the Merger, PREIT and Crown shall execute Articles of Merger (the "Maryland Articles of Merger") in substantially the form attached hereto as Exhibit B and shall file such Maryland Articles of Merger in accordance with Maryland law to effectuate the Merger. E. For federal income tax purposes, it is intended that the Merger shall qualify as a reorganization under Section 368(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and that this Agreement shall constitute a plan of reorganization under Section 368(a) of the Code. F. No later than the fourth business day following the date on which the Form S-4 to be filed in connection with the Merger is declared effective by the SEC, Crown and PREIT will prepare and mail to their respective shareholders of record the Joint Proxy Statement contained in the Form S-4. {PAGE} G. Concurrently with the execution of this Agreement, Crown Investments Trust ("CIT"), on the one hand, and Crown Partnership, on the other hand, have entered into an agreement (the "Exchange Agreement") pursuant to which, among other things, Crown Partnership has agreed to convey to CIT the property known as Pasquerilla Plaza in exchange for the conveyance by CIT of certain out-parcels to Crown Partnership. H. On the day immediately preceding the Closing Date, Crown Partnership will distribute to Crown, in complete liquidation of all of Crown's partnership interests in Crown Partnership, Crown's proportionate interest in any and all of Crown Partnership's assets, subject to Crown's proportionate share of substantially all of the liabilities of Crown Partnership, and admit a new general partner designated by the other partners of Crown Partnership, all as provided in the Distribution Agreement of even date herewith by and between Crown and Crown Partnership (the "Crown Partnership Distribution Agreement"). I. On the Closing Date, Crown will merge with and into PREIT, with PREIT surviving as a Pennsylvania business trust. J. Immediately following the Merger, PREIT will contribute to PREIT Partnership substantially all of the assets transferred from Crown Partnership to Crown pursuant to the Crown Partnership Distribution Agreement in exchange for (i) a number of Class A Limited Partner Interest Units of PREIT Partnership ("PREIT Class A Units") equal to the number of PREIT Common Shares issued to the former Crown shareholders in the Merger and a number of preferred units of partnership interest in PREIT Partnership (the "PREIT Senior Preferred OP Units") equal to the number of preferred units of partnership interest in Crown Partnership (the "Crown Senior Preferred OP Units") outstanding immediately prior to consummation of the transactions contemplated by the Crown Partnership Distribution Agreement, the right, preference, privilege and voting power of which PREIT Senior Preferred OP Units will be identical in all material respects to that of the Crown Senior Preferred OP Units, and (ii) the assumption by PREIT Partnership of the liabilities assumed by Crown pursuant to the Crown Partnership Distribution Agreement, all as provided in a contribution agreement of even date herewith between PREIT and PREIT Partnership (the "PREIT Contribution Agreement"). -2- {PAGE} K. Concurrently with the transactions contemplated by the PREIT Contribution Agreement, (i) Crown Partnership will contribute to PREIT Partnership 100% of its assets other than an 11% interest in the capital and a 1% interest in the profits of each of CFLP and Washington Crown Center Associates L.P. ("WCLP"), a Pennsylvania limited partnership and a direct and indirect wholly-owned subsidiary of Crown Partnership (the "Retained LP Interests"), in exchange for (a) 2,044,511 Class B Limited Partner Interest Units of PREIT Partnership (the "PREIT Class B Units") (subject to reduction and adjustment as set forth in the Crown Partnership Contribution Agreement) minus 341,297 PREIT Class B Units (subject to reduction and adjustment as set forth in the Crown Partnership Contribution Agreement) (the "Reserved PREIT OP Units") and (b) the assumption by PREIT Partnership of substantially all of the remaining liabilities of Crown Partnership, all as provided in the Contribution Agreement of even date herewith between Crown Partnership and PREIT Partnership (the "Crown Partnership Contribution Agreement"), and (ii) also as provided in the Crown Partnership Contribution Agreement, Crown Partnership will grant to PREIT Partnership an option to acquire at any time after the end of the 36th month following the Effective Time the Retained LP Interests in exchange for the Reserved PREIT OP Units, subject to a potential cash adjustment, and PREIT Partnership will grant to Crown Partnership an option exercisable at any time after the end of the 40th month following the Effective Time to contribute the Retained LP Interests to PREIT Partnership in exchange for the Reserved PREIT OP Units, subject to a potential cash adjustment; provided, that, during such time as Crown Partnership holds the Retained LP Interests, Crown Partnership shall receive a quarterly preferred return from CFLP and WCLP, all as set forth in amendments to the CFLP and WCLP limited partnership agreements, substantially in the forms attached hereto as Exhibit C-1 and Exhibit C-2, which shall each be subject to the receipt of any consents or approvals required to adopt and approve such amendments. L. PREIT, PREIT Partnership, Crown and Crown Partnership desire to make certain representations, warranties, covenants and agreements in connection with the Merger and the other transactions contemplated hereunder. M. Concurrently with the execution and delivery of this Agreement and as an inducement to PREIT and PREIT Partnership to enter into this Agreement, Mark E. Pasquerilla, CIT and Crown American Investment Company ("CAIC") and the executive officers and trustees of Crown and Crown Partnership have entered into voting agreements (the "Crown Voting Agreements"), pursuant to which they have agreed, among other things, to vote their Crown Common Shares and common units of Crown Partnership (the "Crown OP Units") to approve this Agreement, the Merger and any other matter which requires their vote in connection with the transactions contemplated by this Agreement. N. Concurrently with the execution and delivery of this Agreement and as an inducement to Crown and Crown Partnership to enter into this Agreement, Ronald Rubin and all other executive officers and trustees of PREIT and PREIT Partnership have entered into voting agreements (the "PREIT Voting Agreements"), pursuant to which they have agreed, among other things, to vote their PREIT Common Shares to approve this Agreement, the Merger and any other matter which requires their vote in connection with the transactions contemplated by this Agreement. -3- {PAGE} O. Concurrently with the execution and delivery of this Agreement and as an inducement to PREIT to enter into this Agreement, PREIT, PREIT Partnership, Mark E. Pasquerilla, CAIC and CIT, and Crown Delaware Holding Company ("CDHC"), as guarantor, have entered into an Indemnification Agreement of even date herewith with and for the benefit of PREIT and its Affiliates (the "Indemnification Agreement"). P. On March 31, 2003, (i) CIT, on the one hand, and Crown Partnership, on the other hand, entered into the Third Amendment to the Amended and Restated Cash Flow Support Agreement (the "3rd Amendment to CFSA") and (ii) Crown, CIT and CAIC entered into the Seventh Amendment to Amended and Restated Agreement of Limited Partnership of Crown Partnership (the "7th Amendment to Crown Partnership Agreement"). Concurrently with the execution and delivery of this Agreement, (x) CIT, on the one hand, and Crown Partnership and Crown American Financing Partnership, L.P., a Delaware Limited Partnership ("CFLP"), on the other hand, will enter into the Fourth Amendment to Amended and Restated Cash Flow Support Agreement (the "4th Amendment to CFSA") and (y) Crown, CIT and CAIC will enter into the Eighth Amendment to Amended and Restated Agreement of Limited Partnership of Crown Partnership (the "8th Amendment to Crown Partnership Agreement"). Q. On March 31, 2003, CIT and Crown Partnership entered into an agreement, pursuant to which CIT purchased from Crown Partnership the property known as Oak Ridge Mall. NOW, THEREFORE, in consideration of the premises and the mutual representations, warranties, covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: ARTICLE 1 THE MERGER 1.1 Pre-Merger Transactions. Upon the terms and subject to the conditions set forth in this Agreement and the other agreements contemplated hereby: (a) On the first business day following the satisfaction of the conditions in Sections 6.1, 6.2 and 6.3 hereof (provided that the next calendar day is a business day), the transactions contemplated by the Exchange Agreement shall be performed; and 115761	PREIT Pennsylvania Real Estate Investment Trust ( Real Estate ) As referenced in this Agreement and Plan of Merger: PENNSYLVANIA REAL ESTATE INVESTMENT TRUST, – {DOCUMENT} {TYPE}EX-2 {SEQUENCE}3 {PAGE} Exhibit 2.1 AGREEMENT AND PLAN OF MERGER among PENNSYLVANIA REAL ESTATE INVESTMENT TRUST, PREIT ASSOCIATES, L.P., CROWN AMERICAN REALTY TRUST, and CROWN AMERICAN PROPERTIES, L.P. Dated as of May 13, 2003 {PAGE} TABLE _____________ PENNSYLVANIA REAL ESTATE INVESTMENT TRUST, – PLAN OF MERGER THIS AGREEMENT AND PLAN OF MERGER (this "Agreement"), dated as of May 13, 2003, is entered into by and among PENNSYLVANIA REAL ESTATE INVESTMENT TRUST, a Pennsylvania business trust ("PREIT"), PREIT ASSOCIATES, L.P., a Delaware limited partnership ("PREIT Partnership"), CROWN AMERICAN REALTY TRUST, a Maryland real _____________ Pennsylvania Real Estate Investment Trust – telecopy number for a party as shall be specified by like notice) from such party: (a) if to PREIT or PREIT Partnership, to: Pennsylvania Real Estate Investment Trust 200 South Broad Street Philadelphia, PA 19102 Attention: Bruce Goldman Executive Vice President and General Counsel Fax No.: (215) 546-7311 with a _____________ Pennsylvania Real Estate Investment Trust, – PENNSYLVANIA REAL ESTATE NVESTMENT TRUST By: Bruce Goldman --------------------- Name: Bruce Goldman Title: Executive Vice President and General Counsel PREIT ASSOCIATES, L.P. By: Pennsylvania Real Estate Investment Trust, as general partner By: Bruce Goldman ------------------- Name: Bruce Goldman Title: Executive Vice President and General Counsel CROWN AMERICAN REALTY TRUST By: Mark _____________ dt 110020 ; Lehman Brothers Lehman Brothers Inc. ( Financial ) As referenced in this Agreement and Plan of Merger: Lehman Brothers Inc – payments to such individuals. 3.16 Brokers; Schedule of Fees and Expenses. No broker, investment banker, financial advisor or other Person, other than Lehman Brothers Inc . and Salomon Smith Barney Inc., the fees and expenses of which will be paid by PREIT and are described in the engagement _____________ Lehman Brothers Inc – of which will be paid by PREIT and are described in the engagement letters dated April 1, 2002 and March 5, 2003 between Lehman Brothers Inc . and PREIT and Salomon Smith Barney Inc. and PREIT, respectively, true, correct and complete copies of which have previously been given to _____________ Lehman Brothers Inc – in default under any PREIT Tax Protection Agreement. -62- {PAGE} 3.19 Opinion of Financial Advisor. PREIT has received the written opinion of Lehman Brothers Inc ., PREIT's financial advisor, to the effect that the consideration to be paid by PREIT and PREIT Partnership in connection with the _____________ dt 104895 ; Salomon Salomon Smith Barney Inc. ( Financial ) As referenced in this Agreement and Plan of Merger: Salomon Smith Barney – 3.16 Brokers; Schedule of Fees and Expenses. No broker, investment banker, financial advisor or other Person, other than Lehman Brothers Inc. and Salomon Smith Barney Inc., the fees and expenses of which will be paid by PREIT and are described in the engagement letters dated April 1, 2002 _____________ Salomon Smith Barney – PREIT and are described in the engagement letters dated April 1, 2002 and March 5, 2003 between Lehman Brothers Inc. and PREIT and Salomon Smith Barney Inc. and PREIT, respectively, true, correct and complete copies of which have previously been given to Crown, is entitled to any broker' _____________ dt 87293 ;	Smith Barney Smith Barney Inc. ( Financial ) As referenced in this Agreement and Plan of Merger: Smith Barney Inc – 16 Brokers; Schedule of Fees and Expenses. No broker, investment banker, financial advisor or other Person, other than Lehman Brothers Inc. and Salomon Smith Barney Inc ., the fees and expenses of which will be paid by PREIT and are described in the engagement letters dated April 1, 2002 _____________ Smith Barney Inc – and are described in the engagement letters dated April 1, 2002 and March 5, 2003 between Lehman Brothers Inc. and PREIT and Salomon Smith Barney Inc . and PREIT, respectively, true, correct and complete copies of which have previously been given to Crown, is entitled to any broker's, _____________ dt 142641 ; Drinker Biddle Drinker Biddle & Reath LLP ( Legal ) As referenced in this Agreement and Plan of Merger: Drinker Biddle – SEC. Each of PREIT and PREIT Partnership shall use commercially reasonable efforts to cause (a) Drinker Biddle & Reath LLP or other counsel reasonably satisfactory to Crown to have delivered an opinion, Drinker Biddle – the opinion delivered pursuant to clause (i)(A) above; and (ii) (X) an opinion of Drinker Biddle & Reath LLP or other counsel reasonably satisfactory to PREIT, dated as of the date Drinker Biddle – of counsel to Crown described in clause (i)(A) above), and (Y) an opinion of Drinker Biddle & Reath LLP or other counsel reasonably satisfactory to PREIT, dated as of the Pre- Drinker Biddle – Relating to REIT Status and Partnership Status. Crown shall have received (i) an opinion of Drinker Biddle & Reath LLP or other counsel reasonably satisfactory to PREIT, dated as of the date Drinker Biddle – customary exceptions, assumptions and qualifications and based upon customary representations), and (ii) an opinion of Drinker Biddle & Reath LLP or other counsel reasonably satisfactory to PREIT, dated as of the Pre- dt 35777 ; More...
$99	Preview Full Doc	2003	Agreement and Plan of Merger Agreement and Plan of Merger (350K) Doc #119983: Click preview link for longer preview. THIS AGREEMENT AND PLAN OF MERGER (this "Agreement"), dated as of May 13, 2003, is entered into by and among PENNSYLVANIA REAL ESTATE INVESTMENT TRUST, a Pennsylvania business trust ("PREIT"), PREIT ASSOCIATES, L.P., a Delaware limited partnership ("PREIT Partnership"), CROWN AMERICAN REALTY TRUST, a Maryland real estate investment trust ("Crown"), and CROWN AMERICAN PROPERTIES, L.P., a Delaware limited partnership ("Crown Partnership"). R E C I T A L S: A. The Board of Trustees of PREIT and the Board of Trustees of Crown deem it advisable and, among other appropriate considerations, in the best interests of each of PREIT and Crown, respectively, and their respective shareholders, upon the terms and subject to the conditions contained herein, that Crown shall merge with and into PREIT (the "Merger"). B. PREIT, as the sole general partner of PREIT Partnership, and Crown, as the sole general partner of Crown Partnership, deem it advisable and, among other appropriate considerations, in the best interests of each of PREIT Partnership and Crown Partnership, respectively, and their respective limited partners, subject to the conditions and other provisions contained herein, that PREIT Partnership and Crown Partnership shall consummate certain transactions contemplated in connection with the Merger and further described herein. C. Upon the terms and subject to the conditions set forth herein, immediately prior to the Merger, PREIT and Crown shall execute Articles of Merger (the "Pennsylvania Articles of Merger") in substantially the form attached hereto as Exhibit A and shall file such Pennsylvania Articles of Merger in accordance with Pennsylvania law to effectuate the Merger. D. Upon the terms and subject to the conditions set forth herein, immediately prior to the Merger, PREIT and Crown shall execute Articles of Merger (the "Maryland Articles of Merger") in substantially the form attached hereto as Exhibit B and shall file such Maryland Articles of Merger in accordance with Maryland law to effectuate the Merger. E. For federal income tax purposes, it is intended that the Merger shall qualify as a reorganization under Section 368(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and that this Agreement shall constitute a plan of reorganization under Section 368(a) of the Code. F. No later than the fourth business day following the date on which the Form S-4 to be filed in connection with the Merger is declared effective by the SEC, Crown and PREIT will prepare and mail to their respective shareholders of record the Joint Proxy Statement contained in the Form S-4. G. Concurrently with the execution of this Agreement, Crown Investments Trust ("CIT"), on the one hand, and Crown Partnership, on the other hand, have entered into an agreement (the "Exchange Agreement") pursuant to which, among other things, Crown Partnership has agreed to convey to CIT the property known as Pasquerilla Plaza in exchange for the conveyance by CIT of certain out-parcels to Crown Partnership. H. On the day immediately preceding the Closing Date, Crown Partnership will distribute to Crown, in complete liquidation of all of Crown's partnership interests in Crown Partnership, Crown's proportionate interest in any and all of Crown Partnership's assets, subject to Crown's proportionate share of substantially all of the liabilities of Crown Partnership, and admit a new general partner designated by the other partners of Crown Partnership, all as provided in the Distribution Agreement of even date herewith by and between Crown and Crown Partnership (the "Crown Partnership Distribution Agreement"). I. On the Closing Date, Crown will merge with and into PREIT, with PREIT surviving as a Pennsylvania business trust. J. Immediately following the Merger, PREIT will contribute to PREIT Partnership substantially all of the assets transferred from Crown Partnership to Crown pursuant to the Crown Partnership Distribution Agreement in exchange for (i) a number of Class A Limited Partner Interest Units of PREIT Partnership ("PREIT Class A Units") equal to the number of PREIT Common Shares issued to the former Crown shareholders in the Merger and a number of preferred units of partnership interest in PREIT Partnership (the "PREIT Senior Preferred OP Units") equal to the number of preferred units of partnership interest in Crown Partnership (the "Crown Senior Preferred OP Units") outstanding immediately prior to consummation of the transactions contemplated by the Crown Partnership Distribution Agreement, the right, preference, privilege and voting power of which PREIT Senior Preferred OP Units will be identical in all material respects to that of the Crown Senior Preferred OP Units, and (ii) the assumption by PREIT Partnership of the liabilities assumed by Crown pursuant to the Crown Partnership Distribution Agreement, all as provided in a contribution agreement of even date herewith between PREIT and PREIT Partnership (the "PREIT Contribution Agreement"). K. Concurrently with the transactions contemplated by the PREIT Contribution Agreement, (i) Crown Partnership will contribute to PREIT Partnership 100% of its assets other than an 11% interest in the capital and a 1% interest in the profits of each of CFLP and Washington Crown Center Associates L.P. ("WCLP"), a Pennsylvania limited partnership and a direct and indirect wholly-owned subsidiary of Crown Partnership (the "Retained LP Interests"), in exchange for (a) 2,044,511 Class B Limited Partner Interest Units of PREIT Partnership (the "PREIT Class B Units") (subject to reduction and adjustment as set forth in the Crown Partnership Contribution Agreement) minus 341,297 PREIT Class B Units (subject to reduction and adjustment as set forth in the Crown Partnership Contribution Agreement) (the "Reserved PREIT OP Units") and (b) the assumption by PREIT Partnership of substantially all of the remaining liabilities of Crown Partnership, all as provided in the Contribution Agreement of even date herewith between Crown Partnership and PREIT Partnership (the "Crown Partnership Contribution Agreement"), and (ii) also as provided in the Crown Partnership Contribution Agreement, Crown Partnership will grant to PREIT Partnership an option to acquire at any time after the end of the 36^th month following the Effective Time the Retained LP Interests in exchange for the Reserved PREIT OP Units, subject to a potential cash adjustment, and PREIT Partnership will grant to Crown Partnership an option exercisable at any time after the end of the 40^th month following the Effective Time to contribute the Retained LP Interests to PREIT Partnership in exchange for the Reserved PREIT OP Units, subject to a potential cash adjustment; provided, that, during such time as Crown Partnership holds the Retained LP Interests, Crown Partnership shall receive a quarterly preferred return from CFLP and WCLP, all as set forth in amendments to the CFLP and WCLP limited partnership agreements, substantially in the forms attached hereto as Exhibit C-1 and Exhibit C-2, which shall each be subject to the receipt of any consents or approvals required to adopt and approve such amendments. L. PREIT, PREIT Partnership, Crown and Crown Partnership desire to make certain representations, warranties, covenants and agreements in connection with the Merger and the other transactions contemplated hereunder. M. Concurrently with the execution and delivery of this Agreement and as an inducement to PREIT and PREIT Partnership to enter into this Agreement, Mark E. Pasquerilla, CIT and Crown American Investment Company ("CAIC") and the executive officers and trustees of Crown and Crown Partnership have entered into voting agreements (the "Crown Voting Agreements"), pursuant to which they have agreed, among other things, to vote their Crown Common Shares and common units of Crown Partnership (the "Crown OP Units") to approve this Agreement, the Merger and any other matter which requires their vote in connection with the transactions contemplated by this Agreement. N. Concurrently with the execution and delivery of this Agreement and as an inducement to Crown and Crown Partnership to enter into this Agreement, Ronald Rubin and all other executive officers and trustees of PREIT and PREIT Partnership have entered into voting agreements (the "PREIT Voting Agreements"), pursuant to which they have agreed, among other things, to vote their PREIT Common Shares to approve this Agreement, the Merger and any other matter which requires their vote in connection with the transactions contemplated by this Agreement. O. Concurrently with the execution and delivery of this Agreement and as an inducement to PREIT to enter into this Agreement, PREIT, PREIT Partnership, Mark E. Pasquerilla, CAIC and CIT, and Crown Delaware Holding Company ("CDHC"), as guarantor, have entered into an Indemnification Agreement of even date herewith with and for the benefit of PREIT and its Affiliates (the "Indemnification Agreement"). P. On March 31, 2003, (i) CIT, on the one hand, and Crown Partnership, on the other hand, entered into the Third Amendment to the Amended and Restated Cash Flow Support Agreement (the "3^rd Amendment to CFSA") and (ii) Crown, CIT and CAIC entered into the Seventh Amendment to Amended and Restated Agreement of Limited Partnership of Crown Partnership (the "7^th Amendment to Crown Partnership Agreement"). Concurrently with the execution and delivery of this Agreement, (x) CIT, on the one hand, and Crown Partnership and Crown American Financing Partnership, L.P., a Delaware Limited Partnership ("CFLP"), on the other hand, will enter into the Fourth Amendment to Amended and Restated Cash Flow Support Agreement (the "4^th Amendment to CFSA") and (y) Crown, CIT and CAIC will enter into the Eighth Amendment to Amended and Restated Agreement of Limited Partnership of Crown Partnership (the "8^th Amendment to Crown Partnership Agreement"). Q. On March 31, 2003, CIT and Crown Partnership entered into an agreement, pursuant to which CIT purchased from Crown Partnership the property known as Oak Ridge Mall. NOW, THEREFORE, in consideration of the premises and the mutual representations, warranties, covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: ARTICLE 1 THE MERGER 1.1 Pre-Merger Transactions. Upon the terms and subject to the conditions set forth in this Agreement and the other agreements contemplated hereby: (a) On the first business day following the satisfaction of the conditions in Sections 6.1, 6.2 and 6.3 hereof (provided that the next calendar day is a business day), the transactions contemplated by the Exchange Agreement shall be performed; and (b) Immediately following the consummation of the transactions contemplated by the Exchange Agreement, (i) Crown and Crown Partnership shall consummate the transactions contemplated by the Crown Partnership Distribution Agreement and (ii) Crown shall cease to be a partner in Crown Partnership and CIT and CAIC shall cause a new general partner to be admitted as the general partner of Crown Partnership. All of such transactions described in this Section 1.1 are referred to collectively herein as the "Pre-Merger Transactions." 1.2 The Merger. (a) Upon the terms and subject to the conditions set forth in this Agreement, and in accordance with Chapter 95 of the Pennsylvania Associations Code (the "Pennsylvania Code"), Title 3 of the Corporations and Associations Article of the Annotated Code of Maryland, as amended ("Title 3"), and Title 8 of the Corporations and Associations Article of the Annotated Code of Maryland, as amended ("Title 8"), Crown shall be merged with and into PREIT, with PREIT surviving as a Pennsylvania business trust (the "Surviving Trust"). (b) As soon as practicable on the Closing Date, PREIT and Crown shall execute and file the Pennsylvania Articles of Merger, executed in accordance with Chapter 95 of the Pennsylvania Code, with the Department of State of Pennsylvania (the "Department"), and shall execute and file the Maryland Articles of Merger, executed in accordance with Title 3 and Title 8, with the State Department of Assessments and Taxation of Maryland (the "MSDAT"), and shall make all other filings and recordings required under the Pennsylvania Code, Title 3 and Title 8. The Merger shall become effective (the "Effective Time") upon the later of (i) the filing of the Pennsylvania Articles of Merger with the Department or (ii) the filing of the Maryland Articles of Merger with the MSDAT. 1.3 Post-Merger Contribution Transactions. Immediately following the Effective Time and concurrently with each other, (i) PREIT and PREIT Partnership shall consummate the transactions contemplated by the PREIT Contribution Agreement, (ii) Crown Partnership and PREIT Partnership shall consummate the transactions contemplated by the Crown Partnership Contribution Agreement, and (iii) the new general partner of Crown Partnership shall amend and restate the Crown Partnership Agreement (the "Crown Partnership Amendment and Restatement") in the form attached hereto as Exhibit D. All of such transactions described in this Section 1.3 are referred to collectively herein as the "Post-Merger Contribution Transactions." 1.4 Closing. The closing of the Merger (the "Closing") shall take place commencing at 9:00 a.m., local time, on the date to be specified by the parties, which (subject to satisfaction or waiver of the conditions set forth in Section 6.4) shall be no later than the third business day after satisfaction or waiver of the conditions set forth in Section 6.4 (the "Closing Date"), at the offices of Hogan & Hartson L.L.P., 555 13^th Street, NW, Washington, DC 20004, unless another date or place is agreed to in writing by the parties. 1.5 Effect of Merger on Trust Agreement and Bylaws. The Trust Agreement, as amended and restated on December 16, 1997, of PREIT (the "PREIT Trust Agreement"), and as further amended pursuant to Section 1.7 hereof and as in effect as of the Effective Time, and the Bylaws, as amended, of PREIT (the "PREIT Bylaws"), as in effect as of the Effective Time, shall continue in full force and effect after the Merger and shall be the trust agreement and bylaws of PREIT, as the survivor of the Merger, until further amended in accordance with applicable Pennsylvania law and the terms thereof. 119983	PREIT Pennsylvania Real Estate Investment Trust ( Real Estate ) As referenced in this Agreement and Plan of Merger: PENNSYLVANIA REAL ESTATE INVESTMENT TRUST, – 0230830.01 EX-2 3 ex21.htm EXHIBIT 2.1 EXHIBIT 2.1 AGREEMENT AND PLAN OF MERGER among PENNSYLVANIA REAL ESTATE INVESTMENT TRUST, PREIT ASSOCIATES, L.P., CROWN AMERICAN REALTY TRUST, and CROWN AMERICAN PROPERTIES, L.P. Dated as of May 13, 2003 NOTE: The _____________ PENNSYLVANIA REAL ESTATE INVESTMENT TRUST, – PLAN OF MERGER THIS AGREEMENT AND PLAN OF MERGER (this "Agreement"), dated as of May 13, 2003, is entered into by and among PENNSYLVANIA REAL ESTATE INVESTMENT TRUST, a Pennsylvania business trust ("PREIT"), PREIT ASSOCIATES, L.P., a Delaware limited partnership ("PREIT Partnership"), CROWN AMERICAN REALTY TRUST, a Maryland real _____________ Pennsylvania Real Estate Investment Trust – telecopy number for a party as shall be specified by like notice) from such party: (a) if to PREIT or PREIT Partnership, to: Pennsylvania Real Estate Investment Trust 200 South Broad Street Philadelphia, PA 19102 Attention: BG General Counsel Fax No.: (215) 546-7311 with a copy (which shall not _____________ PENNSYLVANIA REAL ESTATE INVESTMENT TRUST – this Agreement to be signed by their respective officers (or general partners) thereunto duly authorized all as of the date first written above. PENNSYLVANIA REAL ESTATE INVESTMENT TRUST By: /s/Bruce Goldman Name: Bruce Goldman Title: Executive Vice President and General Counsel PREIT ASSOCIATES, L.P. By: Pennsylvania Real Estate _____________ Pennsylvania Real Estate Investment Trust, – REAL ESTATE INVESTMENT TRUST By: /s/Bruce Goldman Name: Bruce Goldman Title: Executive Vice President and General Counsel PREIT ASSOCIATES, L.P. By: Pennsylvania Real Estate Investment Trust, as general partner By: /s/Bruce Goldman Name: Bruce Goldman Title: Executive Vice President and General Counsel CROWN AMERICAN REALTY TRUST By: / _____________ dt 110037 ; Lehman Brothers Lehman Brothers Inc. ( Financial ) As referenced in this Agreement and Plan of Merger: Lehman Brothers Inc – payments to such individuals. 3.16 Brokers; Schedule of Fees and Expenses. No broker, investment banker, financial advisor or other Person, other than Lehman Brothers Inc . and Salomon Smith Barney Inc., the fees and expenses of which will be paid by PREIT and are described in the engagement _____________ Lehman Brothers Inc – of which will be paid by PREIT and are described in the engagement letters dated April 1, 2002 and March 5, 2003 between Lehman Brothers Inc . and PREIT and Salomon Smith Barney Inc. and PREIT, respectively, true, correct and complete copies of which have previously been given to _____________ Lehman Brothers Inc – of or in default under any PREIT Tax Protection Agreement. 3.19 Opinion of Financial Advisor. PREIT has received the written opinion of Lehman Brothers Inc ., PREIT's financial advisor, to the effect that the consideration to be paid by PREIT and PREIT Partnership in connection with the _____________ dt 104907 ; Salomon Salomon Smith Barney Inc. ( Financial ) As referenced in this Agreement and Plan of Merger: Salomon Smith Barney – 3.16 Brokers; Schedule of Fees and Expenses. No broker, investment banker, financial advisor or other Person, other than Lehman Brothers Inc. and Salomon Smith Barney Inc., the fees and expenses of which will be paid by PREIT and are described in the engagement letters dated April 1, 2002 _____________ Salomon Smith Barney – PREIT and are described in the engagement letters dated April 1, 2002 and March 5, 2003 between Lehman Brothers Inc. and PREIT and Salomon Smith Barney Inc. and PREIT, respectively, true, correct and complete copies of which have previously been given to Crown, is entitled to any broker's, _____________ dt 87304 ;	Smith Barney Smith Barney Inc. ( Financial ) As referenced in this Agreement and Plan of Merger: Smith Barney Inc – 16 Brokers; Schedule of Fees and Expenses. No broker, investment banker, financial advisor or other Person, other than Lehman Brothers Inc. and Salomon Smith Barney Inc ., the fees and expenses of which will be paid by PREIT and are described in the engagement letters dated April 1, 2002 _____________ Smith Barney Inc – and are described in the engagement letters dated April 1, 2002 and March 5, 2003 between Lehman Brothers Inc. and PREIT and Salomon Smith Barney Inc . and PREIT, respectively, true, correct and complete copies of which have previously been given to Crown, is entitled to any broker's, _____________ dt 142648 ; Drinker Biddle Drinker Biddle & Reath LLP ( Legal ) As referenced in this Agreement and Plan of Merger: Drinker Biddle – SEC. Each of PREIT and PREIT Partnership shall use commercially reasonable efforts to cause (a) Drinker Biddle & Reath LLP or other counsel reasonably satisfactory to Crown to have delivered an Drinker Biddle – the opinion delivered pursuant to clause (i)(A) above; and (ii) (X) an opinion of Drinker Biddle & Reath LLP or other counsel reasonably satisfactory to PREIT, dated as of the Drinker Biddle – of counsel to Crown described in clause (i)(A) above), and (Y) an opinion of Drinker Biddle & Reath LLP or other counsel reasonably satisfactory to PREIT, dated as of the Drinker Biddle – Relating to REIT Status and Partnership Status. Crown shall have received (i) an opinion of Drinker Biddle & Reath LLP or other counsel reasonably satisfactory to PREIT, dated as of the Drinker Biddle – customary exceptions, assumptions and qualifications and based upon customary representations), and (ii) an opinion of Drinker Biddle & Reath LLP or other counsel reasonably satisfactory to PREIT, dated as of the dt 35787 ; More...
$58	Preview Full Doc	2002	Agreement and Plan of Merger Agreement and Plan of Merger (230K) Doc #124878: Click preview link for longer preview. AGREEMENT AND PLAN OF MERGER BY AND AMONG YAHOO! INC. DECEMBER 2002 ACQUISITION CORP. AND INKTOMI CORPORATION DATED AS OF DECEMBER 22, 2002 {PAGE} TABLE OF CONTENTS {TABLE} {S} {C} ARTICLE I THE MERGER............................................................................................. 1 1.1 The Merger........................................................................................... 1 1.2 Effective Time; Closing.............................................................................. 2 1.3 Effect of the Merger................................................................................. 2 1.4 Certificate of Incorporation and Bylaws.............................................................. 2 1.5 Directors and Officers............................................................................... 2 1.6 Effect on Capital Stock.............................................................................. 2 1.7 Surrender of Certificates............................................................................ 3 1.8 Dissenting Shares.................................................................................... 5 1.9 No Further Ownership Rights in Company Common Stock.................................................. 5 1.10 Lost, Stolen or Destroyed Certificates............................................................... 5 1.11 Further Action....................................................................................... 6 ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE COMPANY......................................................... 6 2.1 Organization of the Company.......................................................................... 6 2.2 Company Capital Structure............................................................................ 7 2.3 Obligations With Respect to Capital Stock............................................................ 8 2.4 Authority; Non-Contravention; Necessary Consents..................................................... 9 2.5 SEC Filings; Company Financial Statements............................................................ 10 2.6 Absence of Certain Changes or Events................................................................. 11 2.7 Taxes................................................................................................ 14 2.8 Title to Properties; Absence of Liens and Encumbrances............................................... 16 2.9 Intellectual Property................................................................................ 16 2.10 Compliance with Laws; Permits; Restrictions.......................................................... 21 2.11 Litigation........................................................................................... 21 2.12 Employee Benefit Plans............................................................................... 21 2.13 Environmental Matters................................................................................ 26 2.14 Agreements, Contracts and Commitments................................................................ 26 2.15 Information in Proxy Statement....................................................................... 28 2.16 Rights Plan.......................................................................................... 28 2.17 State Takeover Statutes.............................................................................. 29 2.18 Board Approval....................................................................................... 29 2.19 Brokers' and Finders' Fees........................................................................... 29 2.20 Opinion of Financial Advisor......................................................................... 29 2.21 Insurance............................................................................................ 29 2.22 Personnel............................................................................................ 29 2.23 Potential Conflict of Interest....................................................................... 30 ARTICLE III REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB.............................................. 30 3.1 Organization of Parent and Merger Sub................................................................ 30 3.2 Authority; Non-Contravention; Necessary Consents..................................................... 30 3.3 Information in Proxy Statement....................................................................... 31 3.4 Merger Sub........................................................................................... 32 {/TABLE} i {PAGE} {TABLE} {S} {C} 3.5 Financing............................................................................................ 32 ARTICLE IV CONDUCT PRIOR TO THE EFFECTIVE TIME................................................................... 32 4.1 Conduct of Business by the Company................................................................... 32 4.2 Acquisition Proposals................................................................................ 36 ARTICLE V ADDITIONAL AGREEMENTS.................................................................................. 39 5.1 Proxy Statement...................................................................................... 39 5.2 Meeting of Company Stockholders; Board Recommendation................................................ 39 5.3 Confidentiality; Access to Information............................................................... 40 5.4 Public Disclosure.................................................................................... 41 5.5 Regulatory Filings; Reasonable Efforts............................................................... 41 5.6 Notification of Certain Matters...................................................................... 42 5.7 Company Option Plans; Employee Stock Purchase Plan................................................... 42 5.8 Form S-8............................................................................................. 44 5.9 Company Rights Agreement............................................................................. 44 5.10 Subsequent Financial Statements...................................................................... 44 5.11 Conveyance Taxes..................................................................................... 44 5.12 Indemnification...................................................................................... 45 5.13 Silicon Valley Bank Facility......................................................................... 45 ARTICLE VI CONDITIONS TO THE MERGER.............................................................................. 46 6.1 Conditions to the Obligations of Each Party to Effect the Merger..................................... 46 6.2 Additional Conditions to the Obligations of the Company.............................................. 46 6.3 Additional Conditions to the Obligations of Parent................................................... 47 ARTICLE VII TERMINATION, AMENDMENT AND WAIVER.................................................................... 48 7.1 Termination.......................................................................................... 48 7.2 Notice of Termination; Effect of Termination......................................................... 50 7.3 Fees and Expenses.................................................................................... 50 7.4 Amendment............................................................................................ 51 7.5 Extension; Waiver.................................................................................... 51 ARTICLE VIII GENERAL PROVISIONS.................................................................................. 51 8.1 Non-Survival of Representations and Warranties....................................................... 51 8.2 Notices.............................................................................................. 52 8.3 Interpretation; Certain Defined Terms................................................................ 52 8.4 Counterparts......................................................................................... 54 8.5 Entire Agreement; Third Party Beneficiaries.......................................................... 54 8.6 Severability......................................................................................... 54 8.7 Other Remedies; Specific Performance................................................................. 54 8.8 Governing Law........................................................................................ 54 8.9 Rules of Construction................................................................................ 55 8.10 Assignment........................................................................................... 55 8.11 No Waiver; Remedies Cumulative....................................................................... 55 8.12 Waiver of Jury Trial................................................................................. 55 {/TABLE} ii {PAGE} INDEX OF EXHIBITS Exhibit A Form of Voting Agreement Exhibit B Form of Amended Certificate of Incorporation iii {PAGE} INDEX OF DEFINED TERMS {TABLE} {S} {C} ACQUISITION...................................................................................................... 51 ACQUISITION PROPOSAL............................................................................................. 38 ACTION OF DIVESTITURE............................................................................................ 42 AFFILIATES....................................................................................................... 53 AGREEMENT........................................................................................................ 1 BALANCE SHEET DATE............................................................................................... 11 CERTIFICATE OF MERGER............................................................................................ 2 CERTIFICATES..................................................................................................... 4 CHANGE OF RECOMMENDATION......................................................................................... 37 CHANGE OF RECOMMENDATION NOTICE.................................................................................. 37 CLOSING.......................................................................................................... 2 CLOSING DATE..................................................................................................... 2 COBRA............................................................................................................ 21 CODE............................................................................................................. 4 COMPANY.......................................................................................................... 1 COMPANY BALANCE SHEET............................................................................................ 11 COMPANY BOARD OF DIRECTORS....................................................................................... 1 COMPANY COMMON STOCK............................................................................................. 2 COMPANY DISCLOSURE LETTER........................................................................................ 6 COMPANY EMPLOYEE PLAN............................................................................................ 21 COMPANY FINANCIAL STATEMENTS..................................................................................... 11 COMPANY INSIDER.................................................................................................. 43 COMPANY INTELLECTUAL PROPERTY RIGHTS............................................................................. 16 COMPANY OPTION................................................................................................... 42 COMPANY OPTION PLAN.............................................................................................. 43 COMPANY OPTIONS.................................................................................................. 42 COMPANY PERMITS.................................................................................................. 21 COMPANY PREFERRED STOCK.......................................................................................... 7 COMPANY RIGHTS................................................................................................... 2 COMPANY RIGHTS AGREEMENT......................................................................................... 2 COMPANY SEC REPORTS.............................................................................................. 11 COMPANY STOCKHOLDERS' MEETING.................................................................................... 39 COMPUTER SOFTWARE................................................................................................ 16 CONFIDENTIALITY AGREEMENT........................................................................................ 37 COPYRIGHTS....................................................................................................... 17 CURRENT ANNUAL PREMIUM AMOUNT.................................................................................... 45 DGCL............................................................................................................. 1 DISCONTINUED BUSINESS............................................................................................ 53 DISSENTING SHARES................................................................................................ 5 DOJ.............................................................................................................. 41 DOL.............................................................................................................. 22 DOMAIN NAMES..................................................................................................... 17 EC MERGER REGULATION............................................................................................. 10 EFFECTIVE TIME................................................................................................... 2 {/TABLE} i {PAGE} {TABLE} {S} {C} EMPLOYEE......................................................................................................... 22 EMPLOYEE AGREEMENT............................................................................................... 22 END DATE......................................................................................................... 48 ERISA............................................................................................................ 22 ERISA AFFILIATE.................................................................................................. 22 ESPP............................................................................................................. 43 EXCHANGE ACT..................................................................................................... 10 FMLA............................................................................................................. 22 FTC.............................................................................................................. 41 GAAP............................................................................................................. 11 GOVERNMENTAL ENTITY.............................................................................................. 10 GROUP............................................................................................................ 38 HAZARDOUS MATERIAL............................................................................................... 26 HAZARDOUS MATERIALS ACTIVITIES................................................................................... 26 HSR ACT.......................................................................................................... 10 INDEBTEDNESS..................................................................................................... 27 INDEMNIFIED PARTIES.............................................................................................. 45 INTELLECTUAL PROPERTY RIGHTS..................................................................................... 17 IRS.............................................................................................................. 22 KNOWLEDGE........................................................................................................ 53 LEGAL REQUIREMENT................................................................................................ 9 LICENSE AGREEMENTS............................................................................................... 17 LICENSED INTELLECTUAL PROPERTY RIGHTS............................................................................ 17 LIENS............................................................................................................ 7 MATERIAL ADVERSE EFFECT.......................................................................................... 53 MERGER........................................................................................................... 1 MERGER CONSIDERATION............................................................................................. 3 MERGER FUND...................................................................................................... 3 MERGER SUB....................................................................................................... 1 MERGER SUB COMMON STOCK.......................................................................................... 3 MULTIEMPLOYER PLAN............................................................................................... 22 MULTIPLE EMPLOYER PLAN........................................................................................... 22 NASDAQ........................................................................................................... 12 NECESSARY CONSENTS............................................................................................... 10 NEW EXERCISE DATE................................................................................................ 43 NON-PLAN OPTION AGREEMENTS....................................................................................... 7 OPTION EXCHANGE RATIO............................................................................................ 43 PARENT........................................................................................................... 1 PARENT DISCLOSURE LETTER......................................................................................... 30 PARKSIDE LEASE TERMINATION AGREEMENT............................................................................. 16 PATENTS.......................................................................................................... 17 PAYING AGENT..................................................................................................... 3 PENSION PLAN..................................................................................................... 22 PERMITTED LEINS.................................................................................................. 16 PERSON........................................................................................................... 53 PORTFOLIO COMPANIES.............................................................................................. 6 {/TABLE} ii {PAGE} {TABLE} {S}