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Agreement and Plan of Merger

 

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Title:

Agreement and Plan of Merger

Entities:

BWC Financial Corp.; First Republic Bank; Sheppard, Mullin, Richter & Hampton

Date:

2006

Size:

294KB total

Price:

$95

ID:

#1737971

 

 

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

 

 

Start of Preview


 

 

 

AGREEMENT AND PLAN OF MERGER

BY AND AMONG

FIRST REPUBLIC BANK,

BWC FINANCIAL CORP.

AND

BANK OF WALNUT CREEK

Dated as of May 20, 2006

 

 

 

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TABLE OF CONTENTS

 

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ARTICLE I DEFINITIONS                                                                                                                                                1

Section 1.1Definitions                                                                                                                                    1

ARTICLE II        THE MERGER                                                                                                                                   11

Section 2.1       The Company Merger                                                                                                           11

Section 2.2       The Bank Merger                                                                                                                    11

Section 2.3Closing                                                                                                                                         11

Section 2.4       Company Merger Effective Time                                                                                   11

Section 2.5       Bank Merger Effective Time                                                                                             11

Section 2.6       Effect of the Company Merger                                                                                         12

Section 2.7       Effect of the Bank Merger                                                                                                  12

Section 2.8       Articles of Incorporation of the Surviving Corporation After Company Merger                                                                                                                    12

Section 2.9       Articles of Incorporation of the Surviving Corporation After Bank Merger                                                                                                                              12

Section 2.10    Bylaws of the Surviving Corporation After Company Merger                        12

Section 2.11    Bylaws of the Surviving Corporation After Bank Merger                                 12

Section 2.12    Directors and Officers of the Surviving Corporation                                            12

Section 2.13    Alternative Structure                                                                                                             13

ARTICLE III      CONSIDERATION; CONVERSION OF SECURITIES; EXCHANGE OF CERTIFICATES                                                                                                              13

Section 3.1       Conversion of Securities                                                                                                      13

Section 3.2       Fractional Shares                                                                                                                     14

Section 3.3       Shares of Dissenting Holders                                                                                            14

Section 3.4       Surrender and Exchange of Certificates                                                                      15

Section 3.5       Stock Options                                                                                                                            17

Section 3.6       Adjustment Resulting from BWC Real Estate Sale.                                             18

Section 3.7       Cancellation of Bank Capital Stock                                                                              18

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND BANK                                                                                                                         TOC26                18

Section 4.1       Organization and Qualification of Company and Subsidiaries                        18

Section 4.2       Certificate of Incorporation and Bylaws; Corporate Books and Records                                                                                                                               19

Section 4.3Capitalization                                                                                                                           19

Section 4.4Subsidiaries                                                                                                                               20

Section 4.5Authority.                                                                                                                                    20

Section 4.6       No Conflict; Required Filings and Consents                                                             22

Section 4.7       Permits; Compliance with Law.                                                                                       22

Section 4.8       SEC Filings; Financial Statements                                                                                 23

Section 4.9       Regulatory Matters                                                                                                                 25

Section 4.10    Absence of Certain Changes or Events                                                                       26

Section 4.11    Employee Benefit Plans                                                                                                       26

Section 4.12    Labor and Other Employment Matters                                                                        29

Section 4.13    Transactions with Interested Persons                                                                            30

Section 4.14    Material Contracts                                                                                                                  30

Section 4.15Litigation                                                                                                                                     30

Section 4.16    Environmental Matters                                                                                                         31

Section 4.17    Intellectual Property                                                                                                               31

Section 4.18Taxes                                                                                                                                             32

Section 4.19Insurance                                                                                                                                     35

Section 4.20Properties                                                                                                                                    35

Section 4.21    Derivative Transactions                                                                                                       36

Section 4.22    FDIC Offering Circular and Proxy Statement                                                          36

Section 4.23    Opinion of Financial Advisor                                                                                            37

Section 4.24 Brokers                                                                                                                                         37

Section 4.25    No Other Merger or Business Combination Agreements                                   37

Section 4.26    Allowance For Loan Losses                                                                                               37

Section 4.27    Voting Agreements                                                                                                                37

Section 4.28    No Brokered Deposits                                                                                                           37

Section 4.29    Member in Good Standing..                                                                                               37

Section 4.30    Loan Portfolio                                                                                                                           37

Section 4.31    Dissenting Shareholders                                                                                                      38

Section 4.32    BWC Real Estate.                                                                                                                   38

Section 4.33    Cumulative Breach                                                                                                                 38

ARTICLE V        REPRESENTATIONS AND WARRANTIES OF ACQUIROR                             38

Section 5.1       Organization and Qualification; Articles of Incorporation and Bylaws.                                                                                                                                 39

Section 5.2Capitalization                                                                                                                           39

Section 5.3Subsidiaries                                                                                                                               39

Section 5.4Authority                                                                                                                                     40

Section 5.5       No Conflict; Required Filings and Consents                                                             40

Section 5.6Litigation                                                                                                                                     41

Section 5.7       Compliance With Law.                                                                                                        41

Section 5.8       FDIC Filings; Financial Statements; Regulatory Reports                                  41

Section 5.9       Regulatory Matters                                                                                                                 43

Section 5.10    Absence of Certain Changes or Events                                                                       43

Section 5.11Taxes                                                                                                                                             43

Section 5.12    Derivative Transactions                                                                                                       44

Section 5.13    FDIC Offering Circular and Proxy Statement                                                          44

Section 5.14    No Brokers                                                                                                                                  45

ARTICLE VI      MUTUAL COVENANTS OF THE PARTIES                                                                 45

Section 6.1       Reasonable Best Efforts                                                                                                       45

Section 6.2       Preparation of FDIC Offering Circular and Proxy Statement                           45

Section 6.3       Appropriate Actions; Consents; Filings                                                                      46

Section 6.4       Public Announcements                                                                                                         47

Section 6.5       Tax Treatment of the Company Merger and the Bank Merger                        47

Section 6.6       Notification of Certain Matters                                                                                        47

Section 6.7       Antitrust Laws                                                                                                                          48

Section 6.8       Control of the Companys Business                                                                              48

Section 6.9       Takeover Statutes                                                                                                                    49

ARTICLE VII    COVENANTS OF THE COMPANY AND THE BANK                                           49

Section 7.1       Access to Information Concerning Properties and Records                              49

Section 7.2       Conduct of the Business of the Company and the Bank Pending the Closing Date                                                                                                    49

Section 7.3       No Solicitation of Other Offers                                                                                        54

Section 7.4       Company Shareholder Meeting and Approval                                                         56

Section 7.5       Pre-Closing Adjustments                                                                                                     56

Section 7.6       Human Resources Issues                                                                                                     57

Section 7.7       BWC Real Estate Sale                                                                                                          57

Section 7.8ESOP.                                                                                                                                           57

Section 7.9       Fee Schedule and Estimate                                                                                                 58

Section 7.10    Closing Financial Statements                                                                                            59

Section 7.11Filings                                                                                                                                           59

Section 7.12    Non-USRPHC Certificate                                                                                                   59

Section 7.13    Stockholder Litigation                                                                                                          59

ARTICLE VIII   COVENANTS OF ACQUIROR                                                                                               60

Section 8.1       Reservation and Issuance of Acquiror Shares                                                          60

Section 8.2NYSE                                                                                                                                            60

Section 8.3       Directors and Officers Insurance                                                                                 60

Section 8.4       Advisory Board                                                                                                                        61

ARTICLE IX      CONDITIONS PRECEDENT                                                                                                    61

Section 9.1       Conditions Precedent to Each Partys Obligation to Effect the Company Merger and Bank Merger                                                                      61

Section 9.2       Conditions Precedent to Companys Obligation to Effect the Company Merger and the Bank Merger                                                                      62

Section 9.3       Conditions Precedent to Acquirors Obligation to Effect the Company Merger and the Bank Merger                                                                      63

ARTICLE X        TERMINATION AND ABANDONMENT                                                                       65

Section 10.1Termination                                                                                                                               65

Section 10.2    Effect of Termination                                                                                                            67

ARTICLE XI                      MISCELLANEOUS                                                                                                                       69

Section 11.1    Fees and Expenses                                                                                                                  69

Section 11.2    Representations and Warranties                                                                                       69

Section 11.3    Extension; Waiver                                                                                                                  69

Section 11.4Notices                                                                                                                                         70

Section 11.5    Entire Agreement                                                                                                                    71

Section 11.6    Binding Effect; Benefit; Assignment                                                                            71

Section 11.7    Amendment and Modification                                                                                          71

Section 11.8    Further Actions                                                                                                                        71

Section 11.9    Table of Contents; Headings                                               &