Looking for an agreement? Search from over 1 million agreements now.

Stock Purchase And Merger Agreement

This is an actual contract by Momentive Specialty Chemicals.

Save time and money with our Premium Packages.
Buy all (8) recommended agreements for
$140.00 (50% savings)
Agreement Preview
Sectors: Materials and Construction
Governing Law: Delaware, View Delaware State Laws
Effective Date: May 22, 1997
Search This Document
STOCK PURCHASE AND MERGER AGREEMENT


DATED AS OF MAY 22, 1997


AMONG


MID-AMERICA DAIRYMEN, INC.,


BORDEN/MEADOW GOLD DAIRIES HOLDINGS, INC.,


BDH TWO, INC.


AND


BORDEN, INC.


2


TABLE OF CONTENTS


Page
ARTICLE I
THE STOCK PURCHASE AND MERGER....................................2 1.1 Stock Purchase...................................................2 1.2 The Merger.......................................................3 1.3 Surviving Entity.................................................4 1.4 Closing..........................................................4 1.5 Effective Time...................................................5 1.6 Certificate of Incorporation and By-Laws.........................5 1.7 Directors........................................................6 1.8 Officers.........................................................6


ARTICLE II
STATUS AND CONVERSION OF SECURITIES..............................6 2.1 Conversion of Securities.........................................6 2.2 Stock Options and Related Matters................................7 2.3 Exchange of Certificates.........................................8


ARTICLE III
REPRESENTATIONS AND WARRANTIES................................. 11


3.1 Representation and Warranties of Borden.........................11 3.2 Representations and Warranties of Holdings......................13 3.3 Representations and Warranties of Parent........................43 3.4 Representations and Warranties of the Parties...................46 3.5 Survival of Representations and Warranties......................46 3.6 Schedules and Exhibits..........................................47


ARTICLE IV
COVENANTS...................................................... 47 4.1 Access; Information and Records; Confidentiality............... 47 4.2 Conduct of the Businesses of Holdings Prior to
the Closing Date............................................ 49 4.3 Antitrust Laws................................................. 50 4.4 Non-Solicitation............................................... 55 4.5 Equipment...................................................... 57 4.6 Earnings....................................................... 58 4.7 Termination of Affiliate Relations............................. 63 4.8 Further Actions................................................ 64 4.9 Preparation of Returns and Payment of Taxes.................... 66 4.10 No Shopping.................................................... 67 4.11 USDA Compliance Agreement...................................... 67 4.12 Post-Closing Services.......................................... 68 4.13 Financing Best Efforts......................................... 68


ARTICLE V
CONDITIONS PRECEDENT........................................... 69 5.1 Conditions Precedent to Obligations of Parties................. 69 5.2 Conditions Precedent to Obligation of Parent................... 69 5.3 Conditions Precedent to the Obligation of
Holdings and Borden......................................... 72


3


Page
ARTICLE VI
PROVISIONS AS TO TAXES......................................... 73 6.1 Access to Records Following Closing.............................73 6.2 Section 338 Elections...........................................74 6.3 Post-Closing Cooperation........................................77 6.4 Tax Indemnification.............................................79 6.5 Other Tax Matters...............................................85


ARTICLE VII
LABOR MATTERS, EMPLOYEE
RELATIONS AND BENEFITS......................................... 86 7.1 Conduct Prior to the Closing................................... 86 7.2 Continuity of Employment....................................... 87 7.3 Collective Bargaining Agreements............................... 87 7.4 Comparable Benefits............................................ 88 7.5 Business Plan Participation.................................... 88 7.6 Business Plan Liabilities...................................... 89 7.7 Defined Benefit Plan........................................... 90 7.8 Defined Contribution Plans..................................... 92 7.9 Withdrawal Liability........................................... 96 7.10 Post-Retirement Benefits....................................... 96 7.11 Welfare Plans.................................................. 96 7.12 Accrued Vacation............................................... 97 7.13 Severance...................................................... 97 7.14 Service Credit................................................. 98 7.15 WARN Act....................................................... 98 7.16 COBRA.......................................................... 98 7.17 No Rights Conferred on Employees............................... 98


ARTICLE VIII
ASSUMPTION OF CERTAIN OBLIGATIONS
AND LIABILITIES; INDEMNIFICATION............................... 99 8.1 Assumption and Indemnification................................. 99 8.2 Procedure......................................................102


ARTICLE IX
MISCELLANEOUS..................................................104 9.1 Termination and Abandonment....................................104 9.2 Fees and Expenses..............................................108 9.3 Notices........................................................108 9.4 Entire Agreement...............................................110 9.5 No Third Party Beneficiaries...................................110 9.6 Assignability..................................................110 9.7 Amendment and Modification; Waiver.............................112 9.8 Public Announcements...........................................112 9.9 Section Headings...............................................113 9.10 Counterparts...................................................113 9.11 Enforcement....................................................113 9.12 Governing Law..................................................115


4


INDEX OF DEFINED TERMS


Term Page Accounting Period .........................................................58 Acquisition ................................................................1 Aggregate Earnings Payment.................................................62 Antitrust Authorities......................................................54 Antitrust Division ........................................................50 Antitrust Improvements Act.................................................12 Antitrust Law .......................................................55 Applicable Antitrust Conditions...........................................107 Applicable Funding Conditions.............................................107 BDH ........................................................................1 BMGD .....................................................................111 Borden ..................................................................1, 4 Borden Corporation .......................................................25 Borden Indemnified Liabilities............................................100 Borden Indemnified Parties.................................................99 Borden Names ..............................................................65 Borden Pension Plan .......................................................90 Borden Shares ..............................................................1 Borden, Inc. ...............................................................1 Borden's Actuary ..........................................................90 Business Employees ........................................................38 Business Plans ............................................................38 Certificate of Merger.......................................................5 Clause (iv) Termination Date..............................................106 Closing ....................................................................4 Closing Date ...............................................................5 Closing Date Statement.....................................................58 Closing Payment Amount.....................................................59 Closing Period ............................................................60 COBRA .....................................................................98 Code ......................................................................29 Collective Bargaining Agreements...........................................87 Common Share ...............................................................3 Common Share Consideration..................................................3 Common Stock ...............................................................1 Company Intellectual Property..............................................37 Conclusive Earnings Statement..............................................62 Contemplated Assignment...................................................110 Controlled Group ..........................................................40 Damages ...................................................................80 December 31, 1996 Balance Sheet............................................22 Dissenting Shares ..........................................................7 Earliest Borden Antitrust Termination Date.................................53 Earnings ..................................................................59 Earnings Statement ........................................................60 Effective Time .............................................................5 Electing Subsidiaries......................................................74 Elections .................................................................74


5


Term Page Employee Pension Benefit Plan..............................................38 Equipment .................................................................57 ERISA .....................................................................38 Establishment Date .......................................................62 Exchange Act ..............................................................12 Final Determination .......................................................74 Final Payment Amount.......................................................62 Financial Statements.......................................................17 FTC .......................................................................50 GCL ........................................................................1 Governmental Authority.....................................................33 Group .....................................................................25 Health and Environmental Laws..............................................35 Holdings ...................................................................1 Indemnified Liabilities...................................................102 Indemnified Parties ......................................................100 Insurance Matters Agreement................................................71 Interim Period ............................................................79 IRS .......................................................................39 Leases ....................................................................24 Licenses and Permits.......................................................34 Master Lease Agreement.....................................................57 Master Services Agreement Amendment........................................71 Material Adverse Effect....................................................14 Material Contracts ........................................................32 Meadow Gold Trademark License Agreement....................................72 Merger .....................................................................1 Merger Consideration........................................................6 Neutral Auditors ..........................................................61 Newco ....................................................................111 Option .....................................................................8 Option Plan ................................................................8 Option Settlement Amount....................................................8 Parcel ....................................................................22 Parent .....................................................................1 Parent Indemnified Liabilities............................................102 Parent Indemnified Parties................................................100 Parent Indemnitees .......................................................80 Parent Pension Plan .......................................................90 Parent Savings Plan .......................................................93 Parent Termination Notice.................................................105 PBGC ......................................................................40 Permitted Assignee ......................................................111 Post-Closing Period .......................................................79 Post-Retirement Benefits...................................................96 Pre-Closing Period ........................................................78 Preferred Share ............................................................2 Preferred Stock ............................................................1 Real Estate Transfer Tax...................................................85 Real Property Gains Tax....................................................85 Related Transaction Parties................................................51


6


Term Page Required Consents .........................................................69 Resolution Period .........................................................61 Returns ...................................................................26 Savings Plans .............................................................93 Section 338 Allocation.....................................................76 Section 338 Forms .........................................................75 Shares .....................................................................7 Short Period ..............................................................78 Stock Purchase .............................................................1 Subsidiaries ..............................................................14 Surviving Entity ...........................................................3 Tax Claim .................................................................81 Tax Sharing Agreement......................................................28 Taxes .....................................................................26 Terminated Services .......................................................68 Total Transfer Amount......................................................94 Trademark License Agreement................................................71 Transaction-Based Taxes....................................................78 Transfer Date .............................................................94 Transfer Taxes ............................................................85 Vacation Policy ...........................................................97 WARN ......................................................................98


7


STOCK PURCHASE AND MERGER AGREEMENT


STOCK PURCHASE AND MERGER AGREEMENT dated as of May 22, 1997 among MID-AMERICA DAIRYMEN, INC., a Kansas cooperative marketing association ("Parent"), BORDEN/MEADOW GOLD DAIRIES HOLDINGS, INC., a Delaware corporation ("Holdings"), BDH TWO, INC., a Delaware corporation ("BDH"), and BORDEN, INC., a New Jersey corporation ("Borden, Inc."; together with BDH, "Borden").


W I T N E S S E T H :


WHEREAS, Borden owns 14,754,429 shares of Holdings' Common Stock, par value $0.01 per share (the "Common Stock"), and 3,400,000 shares of Holdings' Preferred Stock, par value $0.01 per share (the "Preferred Stock"), and Parent desires to purchase (the "Stock Purchase") from Borden such shares (the "Borden Shares") pursuant to this Agreement;


WHEREAS, immediately after the Stock Purchase, Parent intends to effect the merger of a newly formed wholly owned subsidiary of Parent (referred to herein as "Acquisition") with and into Holdings in accordance with the General Corporation Law of the State of Delaware (the "GCL") and the provisions of this Agreement (the "Merger"), pursuant to which the other holders of shares of Common Stock shall receive the merger consideration set forth herein and Holdings will become a wholly owned subsidiary of Parent;


NOW, THEREFORE, in consideration of the mutual terms, conditions and other agreements set forth herein and intending to be legally bound hereby, the parties hereto hereby agree as follows:


1


8


ARTICLE I


THE STOCK PURCHASE AND MERGER


1.1 Stock Purchase. (a) In consideration of Borden, Inc. entering into this Agreement, on the date hereof, Parent shall pay to Borden, Inc. by wire transfer in immediately available funds $40,000,000. Except as provided in Section 9.11(b), such amount shall be non-refundable regardless of whether or not any of the transactions contemplated by this Agreement is consummated but, upon the consummation of the Stock Purchase, shall be credited towards the amounts payable to Borden, Inc. pursuant to Section 1.1(b).


(b) Upon the terms and subject to the conditions of this Agreement, at the Closing (as defined below) and prior to the Effective Time (as defined below), Borden shall sell to Parent, and Parent shall purchase from Borden, the Borden Shares. In consideration for the sale and transfer of the Borden Shares and, in part, for the right to license certain trademarks from Borden pursuant to the Trademark License Agreement (as defined herein), and upon the terms and subject to the conditions of this Agreement, on the Closing Date, Parent shall pay or cause to be paid to Borden by wire transfer in immediately available funds (in full satisfaction of Parent's obligations to Borden, Inc. and BDH Two, Inc. under this Section 1.1) (subject to the credit described in Sections 1.1(a) and 4.3(f)), (x) for each share of Preferred Stock (a "Preferred Share"), an amount equal to $25, plus the amount of accrued and unpaid dividends on such share to and including the Closing Date, and (y) for each share of Common


2


9


Stock (a "Common Share") owned by Borden, an amount equal to the Common Share Consideration (as defined below). On the Closing Date, upon the terms and subject to the conditions of this Agreement, Borden shall deliver to Parent certificates representing the Borden Shares, duly endorsed, or accompanied by stock powers duly executed, with all necessary stock transfer stamps attached thereto and cancelled. The "Common Share Consideration" shall be determined in accordance with the following formula:


CSC = $435,000,000 - ($25 x PS) - [(CSC x OPT) - ($5 x OPT)]
------------------------------------------------------
CS


where CS = Number of Common Shares outstanding on the
Closing Date


CSC = Common Share Consideration


OPT = Number of Options outstanding on the Closing
Date


PS = Number of Preferred Shares outstanding on the
Closing Date


1.2 The Merger. At the Effective Time, and subject to the terms and conditions of this Agreement and the GCL, Parent shall cause the Merger of Acquisition with and into Holdings to occur, the separate corporate existence of Acquisition shall thereupon cease, and Holdings shall be the surviving corporation in the Merger. Holdings hereinafter sometimes is referred to as the "Surviving Entity". Notwithstanding anything to the contrary in this Agreement, but subject to Section 8.1(a) and the receipt of Borden, Inc.'s prior written consent, which consent shall not be unreasonably withheld, the Merger may be structured so that Acquisition is the Surviving Entity, and Borden, Inc. and BDH


3


10


agree to enter into such amendment to this Agreement as shall be required to effect such change to the structure of the Merger; provided that Borden, Inc. may withhold its consent to any such change to the structure of the Merger if such change would have an adverse tax or other consequence to Borden, Inc. or any of its affiliates.


1.3 Surviving Entity. At the Effective Time, the Surviving Entity shall continue its corporate existence under the laws of the State of Delaware. The Merger shall have the effects set forth in the GCL. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, all the properties, rights, privileges, powers and franchises of a public as well as of a private nature of Holdings and Acquisition shall vest in the Surviving Entity, and all debts, liabilities and duties of Holdings and Acquisition shall become the debts, liabilities and duties of the Surviving Entity. The name of the Surviving Entity shall be such name as shall be set forth in the Certificate of Merger (as defined below) by Parent, with the prior written consent of Borden, Inc., which consent shall not be unreasonably withheld if such name does not include the word "Borden" or any name similar thereto or derivative thereof.


1.4 Closing. Unless this Agreement shall have been terminated and the transactions herein contemplated shall have been abandoned pursuant to Section 9.1, and subject to the satisfaction or waiver of the conditions set forth in Article V, the closing of the Stock Purchase and the Merger (the "Closing") will take place at 10:00 a.m. on the 28th day (or, if such day is


4


11


not a business day, the immediately succeeding business day) following the date on which the last to be satisfied or waived of the conditions set forth in Article V hereof shall be satisfied or waived in accordance with this Agreement (the "Closing Date"), at the offices of Simpson Thacher & Bartlett, New York, New York, unless another date, time or place is agreed to in writing by the parties hereto.


1.5 Effective Time. On the Closing Date, immediately after the consummation of the Stock Purchase, Parent shall file, or shall cause the filing of, a certificate of merger (the "Certificate of Merger") with the Secretary of State of the State of Delaware, and shall make or cause to be made all other filings or recordings required by the GCL in connection with the Merger. The Merger shall become effective at such time as the Certificate of Merger is duly filed with the Secretary of State of the State of Delaware, or at such later time as shall be specified in the Certificate of Merger with the prior written consent of Borden, Inc. (the "Effective Time").


1.6 Certificate of Incorporation and By-Laws. (a) The Certificate of Incorporation of Acquisition in effect at the Effective Time shall be attached to the Certificate of Merger as an amendment to the Certificate of Incorporation of Holdings, with the effect that such Certificate of Incorporation shall become the Certificate of Incorporation of the Surviving Entity, until thereafter amended as provided therein and under the GCL.


5


12


(b) The By-laws of Acquisition in effect at the Effective Time shall be the By-laws of the Surviving Entity until thereafter amended in accordance with applicable law.


1.7 Directors. The directors of Acquisition at the Effective Time shall be the initial directors of the Surviving Entity, each to hold office in accordance with the Certificate of Incorporation and By-laws of the Surviving Entity and until his or her successor is duly elected and qualified.


1.8 Officers. The officers of Acquisition at the Effective Time shall be the initial officers of the Surviving Entity, each to hold office in accordance with the Certificate of Incorporation and By-laws of the Surviving Entity and until his or her successor is duly appointed and qualified.


ARTICLE II


STATUS AND CONVERSION OF SECURITIES


2.1 Conversion of Securities. At the Effective Time, by virtue of the Merger and without any action on the part of Acquisition, Holdings or the holders of any of the following securities:


(a) Each Common Share issued and outstanding immediately prior to the Effective Time (other than Common Shares to be cancelled pursuant to Section 2.1(b) hereof and Dissenting Shares (as hereinafter defined)) shall be converted into the right to receive in cash an amount equal to the Common Share Consideration (the "Merger Consideration"), without any interest thereon, upon the surrender of the certificate representing such Common Share.


6


13


(b) Each Share (as defined below) which is held in the treasury of Holdings or its Subsidiaries (as defined below) or which is held by Parent or any of its subsidiaries (including the Borden Shares purchased by Parent pursuant to Section 1.1(b)) shall be cancelled and retired and no payment shall be made with respect thereto. Preferred Shares and Common Shares are herein together referred to as the "Shares".


(c) Each share of common stock of Acquisition issued and outstanding immediately prior to the Effective Time shall be converted into one share of common stock, par value $0.01 per share, of the Surviving Entity.


(d) Notwithstanding anything in this Agreement to the contrary, Shares outstanding immediately prior to the Effective Time and held by a holder who has not voted in favor of the Merger and who has demanded appraisal for such Shares in accordance with the GCL, if the GCL provides for appraisal rights for such Shares in the Merger ("Dissenting Shares"), shall not be converted into a right to receive the Merger Consideration unless such holder fails to perfect or withdraws or otherwise loses such holder's right to ap
-- End of Preview --
Home| About Us| FAQ| Subscription | Contact Us |

Privacy Policy   Terms of Service  3.85.10.62