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Title: |
Agreement and Plan of Merger |
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Entities: |
National Bancshares Corp /OH/; Vorys, Sater, Seymour and Pease LLP |
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Date: |
2001 |
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Size: |
Preview shows 19KB of 193KB total |
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Price: |
$61 |
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ID: |
#1541701 |
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AGREEMENT AND PLAN OF MERGER
Between
NATIONAL BANCSHARES CORPORATION
And
PEOPLES FINANCIAL CORPORATION
Dated as of October 2, 2001
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<Caption>
PAGE
----
<S> <C>
ARTICLE I
DEFINITIONS......................................................................................1
ARTICLE II
THE MERGERS
2.1 The Cash-Out Merger............................................................9
2.2 Effective Time; Closing........................................................9
2.3 Treatment of Capital Stock of Merger Sub, Seller and Buyer.....................9
2.4 Shareholder Rights, Stock Transfers...........................................10
2.5 Options.......................................................................10
2.6 Exchange Procedures...........................................................10
2.7 Dissenting Shares.............................................................12
2.8 Holding Company and Financial Institution Mergers.............................12
2.9 Additional Actions............................................................13
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF SELLER
3.1 Capital Structure.............................................................13
3.2 Organization, Standing and Authority of Seller................................14
3.3 Seller Subsidiaries...........................................................14
3.4 Authorized and Effective Agreement............................................15
3.5 Securities Documents and Regulatory Reports...................................16
3.6 Financial Statements..........................................................16
3.7 Material Adverse Change.......................................................17
3.8 Environmental Matters.........................................................17
3.9 Tax Matters...................................................................18
3.10 Legal Proceedings.............................................................19
3.11 Compliance with Laws..........................................................19
3.12 Certain Information...........................................................20
3.13 Employee Benefit Plans........................................................20
3.14 Material Contracts............................................................21
3.15 Brokers and Finders...........................................................22
3.16 Insurance.....................................................................22
3.17 Properties....................................................................22
3.18 Labor.........................................................................22
3.19 Allowance for Loan Losses.....................................................23
</TABLE>
<PAGE> 3
<TABLE>
<S> <C>
3.20 Material Interests of Certain Persons.........................................23
3.21 Fairness Opinion..............................................................23
3.22 Disclosures...................................................................23
3.23 Indemnification...............................................................24
3.24 Loan Portfolio................................................................24
3.25 Investment Portfolio..........................................................24
3.26 Corporate Records.............................................................24
3.27 Interest Rate Risk Management Instruments.....................................24
3.28 Interim Events................................................................25
3.29 Waiver........................................................................25
3.30 Conversion-Related Restrictions Have Lapsed...................................25
3.31 CRA Public Comment File.......................................................25
3.32 Affiliate Transactions........................................................25
3.33 Beneficial Owner..............................................................25
3.34 Soldier's and Sailors' Civil Relief Act.......................................26
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF BUYER
4.1 Organization, Standing and Authority of Buyer.................................26
4.2 Authorized and Effective Agreement............................................26
4.3 Securities Documents and Regulatory Rights....................................27
4.4 Financial Statements..........................................................27
4.5 Material Adverse Change.......................................................28
4.6 Legal Proceedings.............................................................28
4.7 Certain Information...........................................................28
4.8 Disclosures...................................................................28
4.9 Financial Resources...........................................................29
4.10 Beneficial Owner..............................................................29
ARTICLE V
COVENANTS
5.1 Reasonable Best Efforts.......................................................29
5.2 Shareholder Meeting...........................................................29
5.3 Regulatory Matters............................................................30
5.4 Investigation and Confidentiality.............................................30
5.5 Press Releases................................................................32
5.6 Business of the Parties.......................................................32
5.7 Certain Actions...............................................................35
5.8 Current Information...........................................................35
5.9 Indemnification; Insurance....................................................36
5.10 Environmental Reports.........................................................36
5.11 Employees and Employee Benefit Plans..........................................37
</TABLE>
ii
<PAGE> 4
<TABLE>
<S> <C>
5.12 Litigation Matters............................................................39
5.13 Organization of Merger Sub....................................................39
5.14 Conforming Entries............................................................39
5.15 Integration of Policies.......................................................39
5.16 Disclosure Supplements........................................................40
5.17 Disclosure of Change in Conditions............................................40
5.18 Disclosure of Merger Related Expenses.........................................40
5.19 Liquidation Account...........................................................40
ARTICLE VI
CONDITIONS PRECEDENT
6.1 Conditions Precedent - Buyer and Seller.......................................41
6.2 Conditions Precedent - Seller.................................................41
6.3 Conditions Precedent - Buyer..................................................42
ARTICLE VII
TERMINATION, WAIVER AND AMENDMENT
7.1 Termination...................................................................43
7.2 Effect of Termination.........................................................43
7.3 Survival of Representations, Warranties and Covenants.........................44
7.4 Waiver........................................................................44
7.5 Amendment or Supplement.......................................................44
7.6 Break-Up Fee..................................................................45
ARTICLE VIII
MISCELLANEOUS
8.1 Expenses......................................................................46
8.2 Entire Agreement..............................................................46
8.3 No Assignment.................................................................46
8.4 Notices.......................................................................46
8.5 Alternative Structure.........................................................47
8.6 Interpretation................................................................48
8.7 Counterparts..................................................................48
8.8 Governing Law.................................................................48
8.9 Severability..................................................................48
</TABLE>
iii
<PAGE> 5
LIST OF EXHIBITS
Exhibit A Form of Voting Agreement
Exhibit B Agreement and Plan of Holding Company Merger of Peoples
Financial Corporation with and into National Bancshares
Corporation
Exhibit C Agreement and Plan of Financial Institution Merger of Peoples
Federal Savings and Loan Association of Massillon with and into
First National Bank
Exhibit D Option Cancellation Agreement
iv
<PAGE> 6
AGREEMENT AND PLAN OF MERGER
Agreement and Plan of Merger (this "Agreement") dated effective as of
October 2, 2001, by and between National Bancshares Corporation, an Ohio
corporation ("Buyer"), and Peoples Financial Corporation, an Ohio corporation
("Seller").
R E C I T A L S:
WHEREAS, the Boards of Directors of Buyer and Seller have determined
that it is in their respective best interests for Buyer to acquire Seller
pursuant to the terms of this Agreement; and
WHEREAS, to effect the acquisition, Buyer will form a new corporation
("Merger Sub") under the laws of the State of Ohio, which will be a
wholly-owned, first-tier subsidiary of Buyer, and Merger Sub will be merged with
and into Seller (the "Cash-Out Merger"), with Seller being the surviving
corporation (the "Surviving Corporation"). Immediately after the Cash-Out Merger
becomes effective, the Board of Directors of Buyer, acting on behalf of Buyer as
the sole shareholder of the Surviving Corporation, shall adopt a merger
resolution and the Holding Company Plan of Merger (as defined in Article I) for
the merger of the Surviving Corporation with and into the Buyer (the "Holding
Company Merger") and Buyer shall file a certificate of merger with the Secretary
of State of Ohio with respect to the Holding Company Merger. Thereafter, at a
time determined by Buyer in its sole discretion, all necessary corporate action
will be taken to effect the merger (the "Financial Institution Merger") of
Peoples Federal (as defined in Article I) with and into First National (as
defined in Article I). The Cash-Out Merger, the Holding Company Merger and the
Financial Institution Merger are sometimes hereinafter collectively referred to
as the "Merger"; and
WHEREAS, as an inducement and condition to Buyer's willingness to enter
into this Agreement, Buyer and certain of the Directors and officers of Seller
and Peoples Federal will concurrently enter into voting agreements in the form
attached hereto as EXHIBIT A; and
NOW, THEREFORE, in consideration of such inducements and of the mutual
covenants and agreements contained herein, the Parties (as defined in Article I)
hereby agree as follows:
ARTICLE I
DEFINITIONS
The following terms shall have the meanings ascribed to them for all
purposes of this Agreement:
"Affiliate" shall have the meaning ascribed by Rule 12b-2 promulgated
under the Exchange Act.
<PAGE> 7
"Agreement" shall mean this Agreement, as the same may be amended or
modified in accordance with its terms, and shall include any Exhibits and
Schedules attached hereto.
"Associate" shall have the meaning ascribed by Rule 12b-2 promulgated
under the Exchange Act.
"Alternative Proposal" shall mean any bona fide, written proposal for a
merger, consolidation or other business combination involving Seller or any
Seller Subsidiary or the acquisition of a 25% or greater equity interest in
Seller or any Seller Subsidiary, or for the purchase, lease or other acquisition
of a substantial portion of the assets of Seller or any Seller Subsidiary (other
than the sale of loans or securities by Seller or Peoples Federal in the
ordinary course of business).
"Buyer" has the meaning set forth in the preamble to this Agreement.
"Buyer Financial Statements" shall mean (i) the consolidated balance
sheets (including related notes and schedules, if any) of Buyer as of December
31, 2000, 1999 and 1998 and the consolidated statements of income, changes in
shareholders' equity and cash flows (including related notes and schedules, if
any) of Buyer for each of its fiscal years in the three-year period ended
December 31, 2000 as filed by Buyer in its Securities Documents and (ii) the
consolidated balance sheets of Buyer (including related notes and schedules, if
any) and the consolidated statements of income, changes in shareholders' equity
and cash flows (including related notes and schedules, if any) of Buyer included
in Securities Documents filed by Buyer with respect to each quarterly and annual
period ended subsequent to December 31 , 2000.
"Cash-Out Merger" has the meaning set forth in the Recitals of this
Agreement.
"Cause" shall mean, in relation to employment termination, termination
because of the employee's personal dishonesty, incompetence, willful misconduct,
breach of fiduciary duty involving personal profit, failure to perform stated
duties or willful violation of any law, rule or regulation (other than traffic
violations or similar offenses).
"Certificate" shall mean any certificate that prior to the Effective
Time represented shares of Seller Common Stock.
"Certificate of Merger" shall mean the certificate of merger to be
filed with the Secretary of State of Ohio with respect to the Cash-Out Merger.
"Closing" shall mean the closing of the Cash-Out Merger at a time and
place mutually determined by Buyer and Seller following the satisfaction or
waiver of all conditions set forth in Article VI of this Agreement.
"Closing Date" shall mean the date on which the Closing occurs.
"Code" shall mean the Internal Revenue Code of 1986, as amended.
2
<PAGE> 8
"Contract" shall mean any written or oral contract, agreement, lease,
license, mortgage, guaranty, instrument or understanding.
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