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Agreement and Plan of Merger

 

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Title:

Agreement and Plan of Merger

Entities:

Bear, Stearns & Co. Inc.; Chase Securities Inc.; Credit Suisse First Boston Corp.; Morgan Stanley & Co. Inc.; Nabisco Inc; UBS Warburg LLC; Davis Polk & Wardwell; Wachtell, Lipton, Rosen & Katz

Date:

2000

Size:

Preview shows 11KB of 142KB total

Price:

$73

ID:

#1582463

 

 

► Plans ► Agreements ► Agreements & Plans of Merger
► Financial
► Services ► Legal

 

 

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                          AGREEMENT AND PLAN OF MERGER


dated as of

June 25, 2000

among

NABISCO HOLDINGS CORP.,

PHILIP MORRIS COMPANIES INC.,

and

STRIKE ACQUISITION CORP.


TABLE OF CONTENTS

PAGE
----
ARTICLE 1
DEFINITIONS

SECTION 1.01. DEFINITIONS................................................1

ARTICLE 2
THE MERGER

SECTION 2.01. THE MERGER.................................................5
SECTION 2.02. CONVERSION OF SHARES.......................................6
SECTION 2.03. SURRENDER AND PAYMENT......................................6
SECTION 2.04. DISSENTING SHARES..........................................7
SECTION 2.05. STOCK OPTIONS..............................................8
SECTION 2.06. ADJUSTMENTS................................................8
SECTION 2.07. WITHHOLDING RIGHTS.........................................8
SECTION 2.08. LOST CERTIFICATES..........................................9

ARTICLE 3
THE SURVIVING CORPORATION

SECTION 3.01. CERTIFICATE OF INCORPORATION...............................9
SECTION 3.02. BYLAWS.....................................................9
SECTION 3.03. DIRECTORS AND OFFICERS.....................................9

ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF THE COMPANY

SECTION 4.01. CORPORATE EXISTENCE AND POWER..............................9
SECTION 4.02. CORPORATE AUTHORIZATION...................................10
SECTION 4.03. GOVERNMENTAL AUTHORIZATION................................10
SECTION 4.04. NON-CONTRAVENTION.........................................10
SECTION 4.05. CAPITALIZATION............................................11
SECTION 4.06. SUBSIDIARIES..............................................11
SECTION 4.07. SEC FILINGS...............................................12
SECTION 4.08. FINANCIAL STATEMENTS......................................13
SECTION 4.09. DISCLOSURE DOCUMENTS......................................13
SECTION 4.10. ABSENCE OF CERTAIN CHANGES................................13
SECTION 4.11. NO UNDISCLOSED LIABILITIES................................15
SECTION 4.12. COMPLIANCE WITH LAWS AND COURT ORDERS.....................15
SECTION 4.13. LITIGATION................................................16
SECTION 4.14. FINDERS' FEES.............................................16
SECTION 4.15. OPINION OF FINANCIAL ADVISORS.............................16
SECTION 4.16. TAXES.....................................................16
SECTION 4.17. EMPLOYEE BENEFIT PLANS....................................17
SECTION 4.18. ENVIRONMENTAL MATTERS.....................................20
SECTION 4.19. INTELLECTUAL PROPERTY.....................................21
SECTION 4.20. ANTITAKEOVER STATUTE......................................21
SECTION 4.21. REAL PROPERTY.............................................21
SECTION 4.22. CONTRACTS; JOINT VENTURES.................................21
SECTION 4.23. INDEBTEDNESS..............................................22


i


ARTICLE 5
REPRESENTATIONS AND WARRANTIES OF PARENT

SECTION 5.01. CORPORATE EXISTENCE AND POWER.............................22
SECTION 5.02. CORPORATE AUTHORIZATION...................................23
SECTION 5.03. GOVERNMENTAL AUTHORIZATION................................23
SECTION 5.04. NON-CONTRAVENTION.........................................23
SECTION 5.05. DISCLOSURE DOCUMENTS......................................23
SECTION 5.06. FINDERS' FEES.............................................24
SECTION 5.07. FINANCING.................................................24

ARTICLE 6
COVENANTS OF THE COMPANY

SECTION 6.01. CONDUCT OF THE COMPANY....................................24
SECTION 6.02. STOCKHOLDER ACTION BY WRITTEN CONSENT; INFORMATION
MATERIAL..................................................27
SECTION 6.03. ACCESS TO INFORMATION.....................................28
SECTION 6.04. NO SOLICITATION; OTHER OFFERS.............................28
SECTION 6.05. THIRD PARTY STANDSTILL AGREEMENTS.........................29

ARTICLE 7
COVENANTS OF PARENT

SECTION 7.01. CONFIDENTIALITY...........................................30
SECTION 7.02. OBLIGATIONS OF MERGER SUBSIDIARY..........................30
SECTION 7.03. DIRECTOR AND OFFICER LIABILITY............................30
SECTION 7.04. EMPLOYEE MATTERS..........................................31

ARTICLE 8
COVENANTS OF PARENT AND THE COMPANY

SECTION 8.01. REASONABLE BEST EFFORTS...................................33
SECTION 8.02. CERTAIN FILINGS...........................................33
SECTION 8.03. PUBLIC ANNOUNCEMENTS......................................33
SECTION 8.04. FURTHER ASSURANCES........................................33
SECTION 8.05. NOTICES OF CERTAIN EVENTS.................................34

ARTICLE 9
CONDITIONS TO THE MERGER

SECTION 9.01. CONDITIONS TO OBLIGATIONS OF EACH PARTY...................34
SECTION 9.02. CONDITIONS TO THE OBLIGATIONS OF PARENT AND MERGER
SUBSIDIARY................................................35
SECTION 9.03. CONDITIONS TO THE OBLIGATIONS OF THE COMPANY..............35

ARTICLE 10
TERMINATION

SECTION 10.01. TERMINATION..............................................36
SECTION 10.02. EFFECT OF TERMINATION....................................38

ARTICLE 11
MISCELLANEOUS

SECTION 11.01. NOTICES..................................................38
SECTION 11.02. NON-SURVIVAL OF REPRESENTATIONS AND WARRANTIES...........39
SECTION 11.03. AMENDMENTS; NO WAIVERS...................................40
SECTION 11.04. EXPENSES.................................................40
SECTION 11.05. SUCCESSORS AND ASSIGNS...................................41
SECTION 11.06. GOVERNING LAW............................................41
SECTION 11.07. JURISDICTION.............................................41
SECTION 11.08. WAIVER OF JURY TRIAL.....................................42
SECTION 11.09. COUNTERPARTS; EFFECTIVENESS; BENEFIT.....................42
SECTION 11.10. ENTIRE AGREEMENT.........................................42
SECTION 11.11. CAPTIONS.................................................42
SECTION 11.12. SEVERABILITY.............................................42
SECTION 11.13. SPECIFIC PERFORMANCE.....................................42


ii


AGREEMENT AND PLAN OF MERGER

AGREEMENT AND PLAN OF MERGER dated as of June 25, 2000, among Nabisco
Holdings Corp., a Delaware corporation (the "Company"), Philip Morris Companies
Inc., a Virginia corporation ("Parent"), and Strike Acquisition Corp., a
Delaware corporation and a wholly-owned subsidiary of Parent ("Merger
Subsidiary").

WHEREAS, the respective Boards of Directors of Parent, Merger Subsidiary
and the Company have approved this Agreement, and deem it advisable and in the
best interests of their respective stockholders to consummate the merger of
Merger Subsidiary with and into the Company on the terms and conditions set
forth herein; and

WHEREAS, as a condition and inducement to Parent entering this Agreement,
concurrently with the execution and delivery of this Agreement, Parent and
Nabisco Group Holdings Corp., a Delaware corporation ("NGH"), a significant
stockholder of the Company, are entering into a voting and indemnity agreement
(the "NGH Voting Agreement") pursuant to which, among other things, NGH has
agreed to vote its Shares in favor of the above-described merger, subject to
approval by NGH's stockholders.

NOW, THEREFORE, the parties hereto agree as follows:


ARTICLE 1
DEFINITIONS


SECTION 1.01. Definitions. (a) The following terms, as used herein, have
the following meanings:

"Affiliate" means, with respect to any Person, any other Person directly
or indirectly controlling, controlled by or under common control with such
Person.

"Benefit Arrangement" means any employment, severance or similar contract,
plan, policy, fund or arrangement (whether or not written) providing for
compensation, bonus, profit-sharing, stock option, or other stock-related rights
or other forms of incentive or deferred compensation, perquisites, vacation
benefits, insurance coverage (including any self-insured arrangements), health
or medical benefits, disability benefits, worker's compensation, supplemental

 

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