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Document Preview Agreement and Plan of Merger |
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Title: |
Agreement and Plan of Merger |
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Entities: |
Bear, Stearns & Co. Inc.; Novartis AG; Novartis Pharma AG; Ocular Sciences, Inc.; Shearman & Sterling; Skadden, Arps, Slate, Meagher & Flom LLP |
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Date: |
2000 |
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Size: |
Preview shows 22KB of 180KB total |
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Price: |
$68 |
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ID: |
#305745 |
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AGREEMENT AND
PLAN OF MERGER
by and among
NOVARTIS AG,
WJ ACQUISITION CORP.
and
WESLEY JESSEN VISIONCARE, INC.
dated as of May 30, 2000
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
Page
----
ARTICLE I
THE OFFER
{S} {C}
1.1 The Offer............................................................................... 2
1.2 Company Action.......................................................................... 4
1.3 Directors............................................................................... 6
{/TABLE}
ARTICLE II
THE MERGER
{TABLE}
{S} {C}
2.1 The Merger.............................................................................. 8
2.2 Effective Time.......................................................................... 8
2.3 Closing of the Merger................................................................... 8
2.4 Effects of the Merger................................................................... 8
2.5 Certificate of Incorporation and By-laws................................................ 8
2.6 Directors............................................................................... 9
2.7 Officers................................................................................ 9
2.8 Conversion of Shares.................................................................... 9
2.9 Delivery of Merger Consideration........................................................ 9
2.10 Dissenting Shares...................................................................... 12
2.11 Treatment of Company Options........................................................... 12
2.12 Adjustments............................................................................ 13
2.13 Shareholders Meeting................................................................... 13
2.14 Merger Without Meeting of Shareholders................................................. 14
{/TABLE}
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
{TABLE}
{S} {C}
3.1 Organization, Standing and Power; Subsidiaries.......................................... 14
3.2 Capital Structure....................................................................... 15
3.3 Authority; No Conflicts................................................................. 17
3.4 Reports and Financial Statements........................................................ 18
3.5 Litigation; Compliance with Laws........................................................ 19
3.6 Absence of Certain Changes or Events.................................................... 19
3.7 Environmental Matters................................................................... 20
3.8 Intellectual Property................................................................... 21
3.9 Brokers or Finders...................................................................... 22
3.10 Employment Agreements.................................................................. 22
{/TABLE}
-i-
{PAGE}
{TABLE}
{S} {C}
3.11 Taxes.................................................................................. 22
3.12 Certain Contracts...................................................................... 24
3.13 Company Shareholder Rights Plan........................................................ 24
3.14 ERISA Compliance....................................................................... 24
3.15 Schedule 14D-9; Proxy Statement; Schedule TO........................................... 27
{/TABLE}
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF PARENT AND PURCHASER
{TABLE}
{S} {C}
4.1 Organization, Standing and Power........................................................ 28
4.2 Authority; No Conflicts................................................................. 28
4.3 Financial Capability.................................................................... 29
4.4 Capitalization of Purchaser............................................................. 29
4.5 No Prior Activities..................................................................... 29
4.6 Offer Documents......................................................................... 29
{/TABLE}
ARTICLE V
COVENANTS
{TABLE}
{S} {C}
5.1 Conduct of Business by the Company Pending the Merger................................... 30
5.2 No Solicitation......................................................................... 33
5.3 Access to Information; Confidentiality.................................................. 35
5.4 Consents; Approvals..................................................................... 36
5.5 Indemnification and Insurance........................................................... 37
5.6 Employee Benefits....................................................................... 38
5.7 Notification of Certain Matters......................................................... 40
5.8 Other Cooperation and Further Assurances................................................ 40
5.9 Public Announcements.................................................................... 40
5.10 Financial Information.................................................................. 41
{/TABLE}
ARTICLE VI
CONDITIONS TO THE MERGER
{TABLE}
{S} {C}
6.1 Offer................................................................................... 41
6.2 Shareholder Approval.................................................................... 41
6.3 No Injunction or Action................................................................. 41
{/TABLE}
ARTICLE VII
TERMINATION
{TABLE}
{S} {C}
7.1 Termination............................................................................ 41
{/TABLE}
-ii-
{PAGE}
{TABLE}
{S} {C}
7.2 Effect of Termination.................................................................. 44
7.3 Fees and Expenses...................................................................... 44
{/TABLE}
ARTICLE VIII
GENERAL PROVISIONS
{TABLE}
{S} {C}
8.1 Nonsurvival of Representations, Warranties and Agreements............................... 45
8.2 Notices................................................................................. 45
8.3 Assignment; Binding Effect.............................................................. 47
8.4 Entire Agreement........................................................................ 47
8.5 Amendment............................................................................... 48
8.6 Governing Law; Consent to Jurisdiction.................................................. 48
8.7 Counterparts............................................................................ 48
8.8 Headings................................................................................ 48
8.9 Interpretation.......................................................................... 48
8.10 Waivers................................................................................ 49
8.11 Incorporation of Company Disclosure Letter............................................. 49
8.12 Severability........................................................................... 49
8.13 Enforcement of Agreement............................................................... 50
8.14 Waiver of Jury Trial................................................................... 50
8.15 Company Disclosure Letter.............................................................. 50
8.16 Execution.............................................................................. 50
8.17 Personal Liability..................................................................... 50
8.18 Date for any Action.................................................................... 51
8.19 Obligation of Parent and the Company................................................... 51
8.20 Certain Definitions.................................................................... 51
ANNEX A....................................................................................Annex A-1
{/TABLE}
-iii-
{PAGE}
AGREEMENT AND PLAN OF MERGER
This AGREEMENT AND PLAN OF MERGER (this "Agreement") dated as of May
---------
30, 2000, is by and among Novartis AG, a Swiss corporation ("Parent"), WJ
------
Acquisition Corp., a Delaware corporation and an indirect wholly owned
subsidiary of Parent ("Purchaser"), and Wesley Jessen VisionCare, Inc., a
---------
Delaware corporation (the "Company").
-------
RECITALS
WHEREAS, the Company and Parent have determined to engage in the
transactions (the "Transactions") contemplated by this Agreement, including (a)
------------
the commencement of an Offer (as defined below) by Purchaser to purchase for
cash all of the outstanding shares of common stock, $.01 par value, of the
Company (the "Company Common Stock") together with the associated rights to
--------------------
purchase preferred stock (the "Rights"), issued pursuant to the Rights
------
Agreement, dated as of November 16, 1999, as amended (the "Rights Agreement"),
----------------
between the Company and American Stock Transfer and Trust Company, as Rights
Agent, and (b) a business combination whereby Purchaser will be merged with and
into the Company in accordance with the Delaware General Corporation Law (the
"DGCL"), with the Company continuing as the surviving corporation of such
-----
merger and an indirect wholly-owned subsidiary of Parent (the "Merger");
------
WHEREAS, the respective boards of directors of the Company, Parent and
Purchaser have each approved and declared advisable this Agreement and the
Transactions;
WHEREAS, the Board of Directors of the Company (the "Board") (i) has
-----
determined that the Merger is advisable and in the best interests of the Company
and its shareholders, (ii) has approved the Merger, the Offer, this Agreement
and the other transactions contemplated hereby and (iii) recommends that the
Company's shareholders adopt this Agreement and the Merger and that the
Company's shareholders tender their shares pursuant to the Offer;
WHEREAS, the Agreement and Plan of Merger (the "Ocular Merger
-------------
Agreement"), dated as of March 19, 2000, among the Company, OSI Acquisition
---------
Corp. and Ocular Sciences, Inc. ("Ocular") has been terminated;
------
WHEREAS, the Company has entered into an agreement to pay Ocular a fee
of $25,000,000 (the "Ocular Fee") in connection with the termination of the
----------
Ocular Merger Agreement;
{PAGE}
WHEREAS, the Company, Parent and Purchaser desire to make certain
representations, warranties, covenants and agreements in connection with the
Offer and the Merger and also to prescribe various conditions to the Offer and
the Merger.
NOW, THEREFORE, in consideration of the premises and of the mutual
covenants, representation, warranties and agreements contained herein, the
parties hereto agree as follows:
ARTICLE I
THE OFFER
1.1 The Offer.
----------
(a) Provided that this Agreement shall not have been terminated in
accordance with Article VII and none of the events set forth in Annex A hereto
-------
shall have occurred or be existing, Purchaser shall, and Parent shall cause
Purchaser to, as promptly as practicable after the date hereof (but in no event
later than the fifth business day after the public announcement of the terms of
this Agreement), commence (within the meaning of Rule 14d-2(a) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act")), an offer (the "Offer")
------------ -----
to purchase all of the outstanding shares of Company Common Stock (and
associated Rights) at a price of 38.50 United States Dollars ($38.50) per share
and associated Right (the "Offer Price"), net to the seller in cash, subject to
-----------
reduction for any applicable withholding taxes and, but only if such payment is
to be made other than to the registered holder, any applicable stock transfer
taxes payable by such holder. The Offer will be made pursuant to an Offer to
Purchase and related Letter of Transmittal containing the terms and conditions
set forth in this Agreement. The initial expiration date of the Offer shall be
the twentieth business day from and after the date the Offer is commenced (the
"Initial Expiration Date"). The obligation of Purchaser to accept for payment,
-----------------------
purchase and pay for any shares of Company Common Stock (and associated Rights)
tendered pursuant to the Offer shall be subject, except as provided in Section
1.1(b), only to the satisfaction of (i) the condition that a number of shares of
Company Common Stock representing not less than fifty-one percent (51%) of the
total issued and outstanding shares of Company Common Stock on a diluted basis
(after giving effect to the conversion or exercise of all outstanding options,
warrants and other rights or securities convertible into shares of Company
Common Stock) (excluding any shares of Company Common Stock held by the Company
or any of its Subsidiaries (as defined below)) on the date such shares are
purchased pursuant to the Offer have been validly tendered and not withdrawn
prior to the expiration of the Offer (the "Minimum Condition") and (ii) the
-----------------
other conditions set forth in Annex A hereto; provided, however, that Purchaser
------- -------- -------
expressly reserves the right to waive any of the conditions to the Offer (other
than the
2
{PAGE}
Minimum Condition) and to make any change in the terms or conditions of the
Offer in its sole discretion, subject to Section 1.1(b).
(b) Without the prior written consent of the Company, neither Parent
nor Purchaser will (i) decrease the price per share of Company Common Stock
payable in the Offer, (ii) decrease the number of shares of Company Common Stock
sought in the Offer, (iii) change the form of consideration payable in the
Offer, (iv) impose conditions to the Offer in addition to those set forth in
Annex A, (v) except as provided below or required by any rule, regulation,
-------
interpretation or position of the Securities and Exchange Commission (the
"SEC") applicable to the Offer, change the expiration date of the Offer, or (vi)
---
otherwise amend or change any term or condition of the Offer in a manner
materially adverse to the holders of shares of Company Common Stock.
Notwithstanding anything in this Agreement to the contrary, without the consent
of the Company, Purchaser shall have the right to extend the Offer beyond the
Initial Expiration Date in the following events: (i) from time to time if, at
the Initial Expiration Date (or extended expiration date of the Offer, if
applicable), any of the conditions to the Offer (other than the Minimum
Condition to which this clause does not apply) shall not have been satisfied or
waived, until such conditions are satisfied or waived; (ii) for any period
required by any rule, regulation, interpretation or position of the SEC or the
Staff thereof applicable to the Offer or any period required by applicable law;
(iii) if all conditions to the Offer other than the Minimum Condition are
satisfied or waived, but the Minimum Condition has not been satisfied, for one
or more periods not to exceed ten (10) business days each (or an aggregate of
thirty (30) business days for all such extensions); or (iv) if all of the condi-
tions to the Offer are satisfied or waived but the number of shares of Company
Common Stock validly tendered and not withdrawn is less than ninety percent
(90%) of the then outstanding number of shares of Company Common Stock on a
diluted basis, for an aggregate period not to exceed twenty (20) business days
(for all such extensions), provided that Purchaser shall accept and promptly pay
--------
for all securities tendered prior to the date of such extension and shall
otherwise meet the requirements of Rule 14d-11 under the Exchange Act in
connection with each such extension. In addition, Parent and Purchaser agree
that Purchaser shall from time to time extend the Offer, if requested by the Com
pany, if at the Initial Expiration Date (or any extended expiration date of the
Offer, including pursuant to this sentence, if applicable), all of the
conditions to the Offer other than the Minimum Condition and/or the conditions
set forth in clause (a) or clause (b) of Annex A shall have been waived or
satisfied and the Minimum Condition and/or the conditions set forth in clause
(a) or clause (b) of Annex A shall not have been satisfied, until the earlier of
ten (10) business days after such expiration date or September 30, 2000 in the
case of the Minimum Condition or November 30, 2000 in the case of clause (a) or
clause (b) or such earlier date upon which either such condition shall not be
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