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Agreement and Plan of Merger

 

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Title:

Agreement and Plan of Merger

Entities:

Citicorp USA, Inc.; Morgan Stanley Senior Funding Inc.; URS Corp.; Wells Fargo Bank, NA; Merrill Lynch & Co., Inc.; Cooley Godward LLP; Latham & Watkins

Date:

2002

Size:

Preview shows 9KB of 251KB total

Price:

$93

ID:

#280182

 

 

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     Agreement and Plan of Merger (this "Agreement"), dated as of July 16, 2002,

by and among URS Corporation, a Delaware corporation ("Parent"); URS Holdings,
Inc., a Delaware corporation and wholly owned subsidiary of Parent ("EG&G Merger
Sub"); URS-LSS Holdings, Inc., a Delaware corporation and a wholly owned
subsidiary of Parent ("Lear Merger Sub" and together with EG&G Merger Sub, the
"Merger Subs"); Carlyle-EG&G Holdings Corp., a Delaware corporation ("EG&G" or a
"Target Company"); Lear Siegler Services, Inc., a Delaware corporation ("Lear"
or a "Target Company" and, together with EG&G, the "Target Companies"); and EG&G
Technical Services Holdings, L.L.C. (the "Holder Representative").

W I T N E S S E T H:

Whereas, the respective Boards of Directors of Parent, the EG&G Merger Sub
and EG&G have approved the merger of EG&G with and into the EG&G Merger Sub (the
"EG&G Merger"), upon the terms and subject to the conditions set forth in this
Agreement;

Whereas, the respective Boards of Directors of Parent, the Lear Merger Sub
and Lear have approved the merger of Lear with and into the Lear Merger Sub (the
"Lear Merger" and, together with the EG&G Merger, the "Mergers"), upon the terms
and subject to the conditions set forth in this Agreement;

Whereas, the respective Boards of Directors of Parent, the Merger Subs and
the Target Companies have each determined that the Mergers and the other
transactions contemplated hereby are consistent with, and in furtherance of,
their respective business strategies and goals;

Whereas, Parent, the Merger Subs and the Target Companies desire to make
certain representations, warranties, covenants and agreements in connection with
the Mergers and also to prescribe various conditions to the Mergers; and

Whereas, for federal income tax purposes, it is intended that the Mergers
will qualify as tax-free reorganizations under the provisions of Section 368(a)
of the Internal Revenue Code of 1986, as amended (the "Code");

Now, Therefore, in consideration of the representations, warranties,
covenants and agreements contained in this Agreement, the parties agree as
follows:

ARTICLE I

THE MERGERS

Section 1.01 The Mergers. Upon the terms and subject to the conditions set
forth in this Agreement, and in accordance with the Delaware General Corporation
Law (the "DGCL"), EG&G shall be merged with and into the EG&G Merger Sub at the
Effective Time (as defined in Section 1.03). Following the Effective Time, the
EG&G Merger Sub shall be a surviving corporation (the "EG&G Surviving
Corporation") and shall succeed to and assume all the rights

1.

{PAGE}

and obligations of EG&G in accordance with the DGCL. Upon the terms and subject
to the conditions set forth in this Agreement, and in accordance with the DGCL,
Lear shall be merged with and into the Lear Merger Sub at the Effective Time (as
defined in Section 1.03). Following the Effective Time, the Lear Merger Sub
shall be a surviving corporation (the "Lear Surviving Corporation" and together
with the EG&G Surviving Corporation, the "Surviving Corporations") and shall
succeed to and assume all the rights and obligations of Lear in accordance with
the DGCL. At the election of Parent, any direct wholly owned subsidiary of
Parent may be substituted for the EG&G Merger Sub or the Lear Merger Sub as a
constituent corporation in the Mergers; provided that any such substitute must
first agree in writing to be bound by the representations, warranties, covenants
and agreements set forth in this Agreement.

Section 1.02 Closing. The closing of the Mergers (the "Closing") will take
place at the offices of Cooley Godward LLP, One Maritime Plaza, 20/th/ Floor,
San Francisco, California at 10:00 a.m. on a date to be specified by the parties
(the "Closing Date"), which shall be no later than the second business day after
satisfaction or waiver of the conditions set forth in Article VI, unless another
time or date is agreed to by the parties hereto.

Section 1.03 Effective Time. Subject to the provisions of this Agreement,
as soon as practicable on or after the Closing Date, the parties shall file a
certificate of merger for each of the Mergers (the "Certificates of Merger")
executed in accordance with the relevant provisions of the DGCL and shall make
all other filings or recordings required under the DGCL. The Mergers shall
become effective at such time as the Certificates of Merger are duly filed with
the Secretary of State of the State of Delaware (the time the Mergers become
effective being hereinafter referred to as the "Effective Time").

Section 1.04 Effects of the Mergers. Each of the Mergers shall have the
effects set forth in Section 259 of the DGCL.

Section 1.05 Certificate of Incorporation and Bylaws of the Surviving
Corporations. The Restated Certificate of Incorporation and Bylaws of the EG&G
Merger Sub shall be the certificate of incorporation and bylaws, respectively,
of the EG&G Surviving Corporation until thereafter changed or amended as
provided therein or by applicable law. The Restated Certificate of Incorporation
and Bylaws of the Lear Merger Sub shall be the certificate of incorporation and
bylaws, respectively, of the Lear Surviving Corporation until thereafter changed
or amended as provided therein or by applicable law.

Section 1.06 Directors and Officers of the Surviving Corporations. The
directors and officers of the EG&G Surviving Corporation immediately after the
Effective Time shall be the respective individuals who are directors and
officers of the EG&G Merger Sub immediately prior to the Effective Time. The
directors and officers of the Lear Surviving Corporation immediately after the
Effective Time shall be the respective individuals who are directors and
officers of the Lear Merger Sub immediately prior to the Effective Time.

2.

{PAGE}

ARTICLE II

EFFECT OF THE MERGERS ON THE CAPITAL STOCK
OF THE CONSTITUENT CORPORATIONS;
EXCHANGE OF CERTIFICATES

Section 2.01 Effect on Capital Stock. As of the Effective Time, by virtue
of the Mergers and without any action on the part of Parent, the Merger Subs,
the Target Companies or any stockholder of the Target Companies:

(a) Conversion of Stock of the Merger Subs. Each share of the common
stock, $0.001 par value per share, of the EG&G Merger Sub then outstanding shall
be converted into one share of common stock, par value $0.001 per share, of the
EG&G Surviving Corporation. Each share of the common stock, $0.001 par value per
share, of the Lear Merger Sub then outstanding shall be converted into one share
of common stock, par value $0.001 per share, of the Lear Surviving Corporation.

(b) Merger Consideration. The "Merger Consideration" shall consist of
(i) the "Cash Merger Consideration," (ii) the "Common Stock Merger
Consideration" and (iii) the "Bridge Preferred Stock Merger Consideration," each
as defined below.

(i) The "Cash Merger Consideration" shall (subject to
adjustment as provided in Section 2.02(b)) equal $331,500,000, less the
Estimated Net Debt at Closing (as defined in Section 2.02(a)), less, except for
purposes of Section 4.04, the Aggregate Cash Out Amount.

(ii) The "Common Stock Merger Consideration" shall equal
4,957,359 shares of Common Stock, par value $0.01 per share of Parent ("Parent
Common Stock").

(iii) The "Bridge Preferred Stock Merger Consideration" shall
equal 100,000 shares of the Series D Convertible Participating Preferred Stock
of Parent, par value $0.01 per share ("Bridge Preferred Stock").

(iv) The "Liquidation Preference" (as defined in the
Certificate of Designations of the Bridge Preferred Stock and the Certificate of
Designations for the Permanent Preferred Stock, respectively) of each share of
Bridge Preferred Stock or Permanent Preferred Stock, as the case may be, at the
Effective Time shall equal the quotient of (A) (x) $168,500,000 multiplied by
the greater of (i) the quotient of the Parent Closing Stock Price (as defined
below) divided by the Parent Stock Price (as defined below) and (ii) 93% less
(y) the Common Stock Merger Consideration multiplied by the Parent Closing Stock

 

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