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Title: |
Separation Agreement |
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Date: |
2000 |
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Preview shows 14KB of 146KB total |
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$63 |
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ID: |
#222647 |
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SEPARATION AGREEMENT
BY AND BETWEEN
PHARMACIA CORPORATION
AND
MONSANTO COMPANY
DATED AS OF SEPTEMBER 1, 2000
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
Page
----
ARTICLE I
{S} {C} {C}
DEFINITIONS................................................................................2
1.01 General..............................................................2
1.02 References to Time..................................................15
ARTICLE II
THE SEPARATION............................................................................15
2.01 Transfer of Assets and Assumption of Liabilities....................15
2.02 Certificate of Incorporation; Bylaws................................16
2.03 Financing Arrangements Effective on Separation Date.................16
2.04 Intercompany Accounts...............................................16
2.05 Monsanto Support Agreements.........................................17
ARTICLE III
SURVIVAL, ASSUMPTION AND INDEMNIFICATION..................................................17
3.01 Survival of Agreements..............................................17
3.02 Taxes...............................................................17
3.03 Assumption and Indemnification; Effect of Recovery Rights
Against Insurers or Other Third Parties.............................17
3.04 Procedure for Assumption or Indemnification.........................20
ARTICLE IV
CERTAIN ADDITIONAL COVENANTS..............................................................21
4.01 Further Assurances..................................................21
4.02 Pharmacia Employee Political Action Committee.......................24
4.03 Receivables Collection and Other Payments...........................24
4.04 Limited Leases, Licenses and Benefits of Certain Assets.............25
4.05 Monsanto's Use of Monsanto Assets Subject to IRBS...................25
{/TABLE}
-i-
{PAGE}
{TABLE}
{CAPTION}
ARTICLE V
{S} {C} {C}
ACCESS TO INFORMATION.....................................................................25
5.01 Provision of Corporate Records......................................25
5.02 Access to Information...............................................26
5.03 Litigation Support and Production of Witnesses......................26
5.04 Reimbursement.......................................................27
5.05 Retention of Records................................................27
5.06 Privileged Information..............................................27
5.07 Confidentiality.....................................................29
ARTICLE VI
DISPUTE RESOLUTION........................................................................29
6.01 Step Process........................................................29
6.02 Negotiation.........................................................29
6.03 Mediation...........................................................30
6.04 Arbitration.........................................................30
6.05 Injunctive Relief...................................................30
6.06 Remedies............................................................30
6.07 Expenses............................................................30
ARTICLE VII
NO REPRESENTATIONS OR WARRANTIES; EXCEPTIONS..............................................30
7.01 No Representations or Warranties; Exceptions........................30
ARTICLE VIII
INSURANCE.................................................................................31
8.01 Insurance Policies and Rights.......................................31
8.02 Administration and Reserves.........................................32
8.03 Allocation of Insurance Proceeds; Cooperation.......................32
8.04 Reimbursement of Expenses...........................................33
8.05 Attempt to Obtain Insurer Endorsements..............................33
8.06 No Reduction of Coverage............................................33
{/TABLE}
-ii-
{PAGE}
{TABLE}
{CAPTION}
ARTICLE IX
{S} {C} {C}
SHARED CONTINGENT GAINS AND LIABILITIES....................................................33
9.01 Shared Contingent Gains.............................................33
9.02 Shared Contingent Liabilities.......................................34
9.03 Payments............................................................34
9.04 Procedures to Determine Status of Shared Contingent Gains
and Liabilities.....................................................35
ARTICLE X
NON-COMPETITION............................................................................35
10.01 Monsanto Non-Compete................................................35
10.02 Pharmacia Non-Compete...............................................36
ARTICLE XI
MISCELLANEOUS..............................................................................36
11.01 Conditions to Obligations...........................................36
11.02 Complete Agreement..................................................36
11.03 Other Agreements....................................................36
11.04 Expenses............................................................36
11.05 Governing Law.......................................................36
11.06 Notices.............................................................36
11.07 Amendment and Modification..........................................37
11.08 Successors and Assigns; No Third Party Beneficiaries................37
11.09 Counterparts........................................................38
11.10 Interpretation......................................................38
11.11 Legal Enforceability................................................38
11.12 References; Construction............................................38
{/TABLE}
-iii-
{PAGE}
SEPARATION AGREEMENT
THIS SEPARATION AGREEMENT, dated as of September 1, 2000 (as amended
and supplemented pursuant to the terms hereof, this "Agreement"), is by and
between Pharmacia Corporation, a Delaware corporation ("Pharmacia"), and
Monsanto Company, a Delaware corporation ("Monsanto").
W I T N E S S E T H:
--------------------
WHEREAS, the Boards of Directors of Pharmacia and Monsanto have each
determined that it would be appropriate and desirable for Pharmacia to
contribute and transfer to Monsanto, and for Monsanto to receive and assume,
directly or indirectly, certain assets and liabilities, as hereinafter described
(the "Separation");
WHEREAS, Pharmacia currently owns all of the issued and outstanding
common stock of Monsanto;
WHEREAS, Pharmacia and Monsanto currently contemplate that Monsanto
will make an initial public offering ("IPO") of an amount of its common stock
pursuant to a registration statement on Form S-1 filed under the Securities Act
of 1933, as amended (the "IPO Registration Statement"), that will reduce
Pharmacia's ownership of Monsanto to not less than 80.1%;
WHEREAS, Monsanto intends to use the proceeds of the IPO (including
any proceeds from any sale of shares pursuant to the exercise of the managing
underwriters' over-allotment option), net of underwriting discounts and
commissions, to repay a portion of the commercial paper obligations issued by
Pharmacia that Monsanto will assume from Pharmacia at the closing of the IPO
(the "IPO Closing Date");
WHEREAS, Pharmacia and Monsanto intend that the contribution and
assumption of assets and liabilities will qualify as a tax-free reorganization
under Section 368(a)(1)(D) of the Internal Revenue Code of 1986, as amended
(together with the regulations promulgated thereunder, the "Code"), and that
this Agreement is intended to be, and is hereby adopted as, a plan of
reorganization under Section 368 of the Code; and
WHEREAS, the parties intend in this Agreement, including the
Exhibits and Schedules hereto, and the Other Agreements (as defined below) to
set forth the principal arrangements between them regarding the Separation.
NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained and intending to be legally bound hereby, the parties
hereto agree as follows:
{PAGE}
ARTICLE I
DEFINITIONS
1.01 GENERAL. As used in this Agreement, the following terms shall
have the following meanings (such meanings to be equally applicable to both the
singular and plural forms of the terms defined):
Action: any demand, action, suit, countersuit, arbitration, inquiry,
------
proceeding or investigation by or before any Governmental Authority or any
arbitration or mediation tribunal.
Affiliate: with respect to any specified Person, a Person that
---------
directly, or indirectly through one or more intermediaries, controls, is
controlled by, or is under common control with, such specified Person; provided,
however, that for purposes of this Agreement, no member of either Group shall be
deemed to be an Affiliate of any member of the other Group.
Arbitration Act: the United States Arbitration Act, 9 U.S.C.
---------------
ss.ss. 1-14, 201-208, as the same may be amended from time to time.
Assets: any and all assets, properties and rights (including
------
goodwill), wherever located (including in the possession of vendors or other
third parties or elsewhere), whether real, personal or mixed, tangible,
intangible or contingent, in each case whether or not recorded or reflected or
required to be recorded or reflected on the books and records or financial
statements of any Person, including, without limitation, the following:
(i) all accounting and other books, records and files
whether in paper, microfilm, microfiche, computer tape or disc,
magnetic tape or any other form;
(ii) all apparatus, computers and other electronic data
processing equipment, fixtures, trade fixtures, machinery,
equipment, capital and other spares, furniture, office equipment,
automobiles, trucks, aircraft, rolling stock, vessels, motor
vehicles, trailers and other transportation equipment, special and
general tools, test devices, prototypes and models and any other
tangible personal property;
(iii) all inventories of materials, raw materials,
catalysts, precious metals, stores inventories, supplies,
work-in-process, consigned goods and finished goods and products and
product samples;
(iv) all interests in real property of whatever nature,
including easements, leases and licenses, whether as owner,
mortgagee or holder of a Security Interest in real property, lessor,
sublessor, lessee, sublessee or otherwise;
(v) all buildings and other improvements to real
property and all leasehold improvements;
(vi) all interests in any capital stock, bonds, notes,
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