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Title: |
Acquisition Agreement |
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Entities: |
StanCorp Financial Group Inc.; LeBoeuf, Lamb, Greene & MacRae LLP; Minnesota Life Insurance Company; Standard Insurance Company |
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Date: |
2001 |
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Size: |
Preview shows 21KB of 112KB total |
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Price: |
$41 |
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ID: |
#293034 |
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ACQUISITION AGREEMENT
by and between
MINNESOTA LIFE INSURANCE COMPANY
and
STANDARD INSURANCE COMPANY
Dated December 1, 2000
================================================================================
{PAGE}
TABLE OF CONTENTS
ARTICLE I DEFINITIONS.................................................... 2
Section 1.01. Definitions.......................................... 2
"Acquisition Proposals"............................................. 2
"Action"............................................................ 2
"Administered Contracts"............................................ 2
"Administrative Services Agreement"................................. 2
"Affiliate"......................................................... 2
"Ancillary Agreements".............................................. 2
"Anniversary Date".................................................. 2
"Appealed Claim".................................................... 2
"Bill of Sale and General Assignment"............................... 2
"Books and Records"................................................. 2
"Business".......................................................... 3
"Business Day"...................................................... 3
"Cash Equivalents".................................................. 3
"Ceded Reinsurance Agreements"...................................... 3
"Closing"........................................................... 3
"Closing Date"...................................................... 3
"Code".............................................................. 3
"Commissions"....................................................... 3
"Confidentiality Agreement"......................................... 3
"Effective Date".................................................... 3
"ERISA"............................................................. 3
"Excluded Contract"................................................. 3
"Excluded Liabilities".............................................. 3
"Final Cash Payment Amount"......................................... 4
"Final True-Up Report".............................................. 4
"Governmental Entity"............................................... 4
"Included Contracts"................................................ 4
"Indemnified Party"................................................. 4
"Indemnifying Party"................................................ 4
"Indemnity Reinsurance Agreements".................................. 4
"Insurance Contracts"............................................... 4
"Insurance Liabilities"............................................. 4
"Knowledge"......................................................... 4
"Lien".............................................................. 4
"Losses"............................................................ 5
"Material Business Contracts"....................................... 5
"Minnesota SAP"..................................................... 5
"NAIC".............................................................. 5
"National Marketing Agreement"...................................... 5
"Neutral Auditors".................................................. 5
-i-
{PAGE}
"90-Day Treasury Rate".............................................. 5
"One-Year Treasury Rate"............................................ 5
"Order"............................................................. 5
"Oregon SAP"........................................................ 5
"Person"............................................................ 5
"Post-Effective Date Contracts"..................................... 5
"Post-Effective Date Indemnity Reinsurance Agreement"............... 5
"Pre-Effective Date Indemnity Reinsurance Agreement"................ 6
"Preliminary Cash Payment Amount"................................... 6
"Proposed Cash Payment Amount"...................................... 6
"Proposed True-Up Report"........................................... 6
"Purchase Price".................................................... 6
"Purchaser Material Adverse Effect"................................. 6
"Purchaser SAP Statements".......................................... 6
"RBC"............................................................... 6
"Resolved Contract"................................................. 6
"Review Period"..................................................... 6
"Seller Extra Contractual Obligations".............................. 6
"Seller Material Adverse Effect".................................... 6
"Statutory Reserves"................................................ 7
"Subsidiary"........................................................ 7
"Tax"............................................................... 7
"Third Party Claim"................................................. 7
"Transfer Documents"................................................ 7
"Transition Services Agreement"..................................... 7
"True-Up Review Period"............................................. 7
"Trust Agreement"................................................... 7
ARTICLE II TRANSFER AND ACQUISITION OF ASSETS............................ 8
Section 2.01. Consideration........................................ 8
Section 2.02. Acquisition of Transferred Assets and Assumption of
Assumed liabilities.................................. 8
Section 2.03. Payments on Closing.................................. 8
Section 2.04. Place and Date of Closing............................ 10
Section 2.05. Transactions to be Effected at the Closing........... 10
ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER..................... 11
Section 3.01. Organization, Standing and Authority................. 11
Section 3.02. Authorization........................................ 11
Section 3.03. No Conflict or Violation, etc........................ 11
Section 3.04. Books and Records.................................... 12
Section 3.05. Absence of Certain Changes........................... 12
Section 3.06. Material Contracts................................... 12
Section 3.07. Transferred Assets................................... 13
Section 3.08. Litigation; Orders................................... 13
Section 3.09. Compliance with Laws................................. 13
-ii-
{PAGE}
Section 3.10. Brokers.............................................. 13
Section 3.11. Excluded Contracts................................... 13
Section 3.12. Licenses and Franchises.............................. 13
Section 3.13. Insurance Contracts.................................. 13
Section 3.14. Regulatory Filings................................... 14
Section 3.15. Statutory Reserves................................... 14
Section 3.16. ERISA Compliance of Included Contracts............... 14
Section 3.17. Ratings.............................................. 14
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PURCHASER................... 14
Section 4.01. Organization, Standing and Authority................. 14
Section 4.02. Authorization........................................ 14
Section 4.03. No Conflict or Violation, etc........................ 15
Section 4.04. Compliance with Laws................................. 15
Section 4.05. Brokers.............................................. 15
Section 4.06. Ratings.............................................. 16
Section 4.07. Licenses and Franchises.............................. 16
Section 4.08. Purchaser Financial Statements....................... 16
Section 4.09. Absence of Certain Changes........................... 16
Section 4.10. Risk Based Capital................................... 16
Section 4.11. Sufficient Funds..................................... 16
Section 4.12. Resources............................................ 16
ARTICLE V COVENANTS...................................................... 17
Section 5.01. Conduct of Business.................................. 17
Section 5.02. Exclusivity.......................................... 17
Section 5.03. Access to Information; Confidentiality............... 17
Section 5.04. Reasonable Best Efforts.............................. 18
Section 5.05. Consents, Approvals and Filings...................... 18
Section 5.06. Representations and Warranties....................... 18
Section 5.07. Notification......................................... 19
Section 5.08. Further Assurances................................... 19
Section 5.09. Expenses............................................. 19
Section 5.10. Resources............................................ 19
Section 5.11. Resolved Contracts................................... 19
Section 5.12. Interim Reserve Transfers............................ 20
Section 5.13. Novation............................................. 20
Section 5.14. Use of Name.......................................... 20
ARTICLE VI CONDITIONS PRECEDENT TO THE OBLIGATIONS OF PURCHASER.......... 20
Section 6.01. Representations and Covenants........................ 20
Section 6.02. Secretary's Certificate.............................. 21
Section 6.03. Other Agreements..................................... 21
Section 6.04. Governmental and Regulatory Consents and Approvals... 21
Section 6.05. Third Party Consents................................. 21
Section 6.06. No Injunctions or Restraints......................... 21
-iii-
{PAGE}
Section 6.07. Possession of Assets; Instruments of Conveyance...... 21
ARTICLE VII CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLER............ 22
Section 7.01. Representations and Covenants........................ 22
Section 7.02. Secretary's Certificate.............................. 22
Section 7.03. Other Agreements..................................... 22
Section 7.04. Governmental and Regulatory Consents and Approvals... 22
Section 7.05. Third Party Consents................................. 23
Section 7.06. No Injunctions or Restraints......................... 23
ARTICLE VIII FURTHER AGREEMENTS.......................................... 23
Section 8.01. Access to Books and Records.......................... 23
Section 8.02. Cooperation.......................................... 23
Section 8.03. Notification......................................... 23
ARTICLE IX SURVIVAL OF REPRESENTATIONS AND WARRANTIES.................... 24
Section 9.01. Survival of Representations and Warranties........... 24
ARTICLE X INDEMNIFICATION................................................ 24
Section 10.01. Obligation to Indemnify.............................. 24
Section 10.02. Indemnification Procedures........................... 25
ARTICLE XI TERMINATION PRIOR TO CLOSING.................................. 26
Section 11.01. Termination of Agreement............................. 26
Section 11.02. Survival............................................. 27
ARTICLE XII GENERAL PROVISIONS........................................... 27
Section 12.01. Publicity............................................ 27
Section 12.02. Dollar References.................................... 27
Section 12.03. Notices.............................................. 27
Section 12.04. Entire Agreement..................................... 28
Section 12.05. Waivers and Amendments; Non-Contractual Remedies;
Preservation of Remedies............................. 29
Section 12.06. Governing Law........................................ 29
Section 12.07. Binding Effect; Assignment........................... 29
Section 12.08. Interpretation....................................... 29
Section 12.09. No Third Party Beneficiaries......................... 30
Section 12.10. Counterparts......................................... 30
Section 12.11. Exhibits and Schedules............................... 30
Section 12.12. Headings............................................. 30
-iv-
{PAGE}
SCHEDULES
Schedule 1.01(a) Commissions
Schedule 1.01(b) Insurance Contracts
Schedule 1.01(c)(i) Seller's Knowledge
Schedule 1.01(c)(ii) Purchaser's Knowledge
Schedule 1.01(d) Cash Payment Amount
Schedule 1.01(e) Purchase Price Adjustment
Schedule 1.01(f) September 30, 2000 Reserves
Schedule 3.03 Necessary Consents, etc.
Schedule 3.05 Absence of Certain Changes
Schedule 3.06 Ceded Reinsurance Agreements and Material Contracts
Schedule 3.07 Liens on Transferred Assets
Schedule 3.08 Litigation; Orders
Schedule 3.09 Compliance with Laws
Schedule 3.11 Excluded Contracts
Schedule 3.12 Licenses
Schedule 3.13 Contract Forms
Schedule 3.14 Regulatory Filings
Schedule 4.03 Necessary Consents, etc.
Schedule 4.04 Compliance with Laws
Schedule 4.07 Licenses
Schedule 5.01 Conduct of Business
-v-
{PAGE}
EXHIBITS
Exhibit A Form of Administrative Services Agreement
Exhibit B Form of Pre-Effective Date Indemnity Reinsurance Agreement
Exhibit C Form of Post-Effective Date Indemnity Reinsurance Agreement
Exhibit D Form of National Marketing Agreement
Exhibit E Form of Transition Services Agreement
Exhibit F Form of Trust Agreement
Exhibit G Form of Bill of Sale and General Assignment
-vi-
{PAGE}
ACQUISITION AGREEMENT
---------------------
This ACQUISITION AGREEMENT (this "Agreement"), dated December 1, 2000,
is entered into by and between Minnesota Life Insurance Company, a Minnesota
stock life insurance company ("Seller") and Standard Insurance Company, an
Oregon stock life insurance company ("Purchaser").
W I T N E S S E T H:
--------------------
WHEREAS, upon the terms and subject to the conditions of this
Agreement, Seller desires to sell, and Purchaser desires to acquire, certain of
the individual disability insurance business written by Seller; and
WHEREAS, in order to effectuate the foregoing, it is contemplated
that, upon the terms and subject to the conditions of this Agreement: (i) Seller
and Purchaser will enter into the Pre-Effective Date Indemnity Reinsurance
Agreement providing, among other things, for the indemnity reinsurance as of the
Effective Date of the Insurance Liabilities arising out of the Included
Contracts (all capitalized terms used in these recitals and not otherwise
defined having the respective meanings assigned to them in Section 1.01 hereto);
(ii) Seller and Purchaser will enter into the Post-Effective Date Indemnity
Reinsurance Agreement, providing, among other things, for the indemnity
reinsurance as of the Effective Date of the Insurance Liabilities arising out of
the Post-Effective Date Contracts; (iii) Seller and Purchaser will enter into
the Administrative Services Agreement providing for Purchaser's provision of
certain administrative services on behalf of Seller with respect to the
Administered Contracts as of the Effective Date; (iv) Seller and Purchaser will
enter into the Transition Services Agreement providing for Seller's provision of
certain administrative services on behalf of Purchaser with respect to the
Administered Contracts as of the Effective Date; (v) Seller and Purchaser will
enter into the National Marketing Agreement providing for, among other things,
the distribution by Seller of Purchaser's individual disability insurance
products; (vi) Seller, Purchaser and Trustee will enter into the Trust Agreement
providing, among other things, for the establishment of a trust account for the
benefit of Seller to assure that Seller will have access to assets in the event
that Purchaser becomes unable to meet its obligations to Seller under the
Indemnity Reinsurance Agreements; and (vii) Seller and Purchaser will execute
and deliver such other agreements, instruments and documents as are described
herein.
NOW, THEREFORE, in consideration of the foregoing premises and the
representations, warranties and mutual covenants and agreements contained herein
and upon the terms and conditions set forth herein, the parties hereto agree as
follows:
{PAGE}
ARTICLE I
DEFINITIONS
Section 1.01. Definitions. The following terms shall have the
respective meanings set forth below throughout this Agreement:
"Acquisition Proposals" shall have the meaning set forth in Section
5.02 hereof.
"Action" shall have the meaning set forth in Section 3.08 hereof.
"Administered Contracts" means the Insurance Contracts and the Post-
Effective Date Contracts.
"Administrative Services Agreement" means an Administrative Services
Agreement substantially in the form of Exhibit A hereto.
"Affiliate" means, with respect to any person, at the time in
question, any other person controlling, controlled by or under common control
with such person. For purposes of the foregoing, "control", including the terms
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