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Title: |
Agreement and Plan of Merger |
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Entities: |
General Growth Properties Inc.; Mellon Investor Services LLC; UBS Warburg LLC |
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Date: |
2002 |
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Size: |
Preview shows 31KB of 548KB total |
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Price: |
$95 |
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ID: |
#336028 |
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AGREEMENT AND PLAN OF MERGER
AMONG
GENERAL GROWTH PROPERTIES, INC.
GGP LIMITED PARTNERSHIP
GGP ACQUISITION, L.L.C.
GGP ACQUISITION II, L.L.C.
JP REALTY, INC.
AND
PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
DATED AS OF MARCH 3, 2002
{PAGE}
TABLE OF CONTENTS
Page
ARTICLE 1 THE MERGERS...................................................2
1.1 The Merger.......................................................2
1.2 The Partnership Merger...........................................2
1.3 Closing..........................................................2
1.4 Effective Time...................................................2
1.5 Effect on Acquisition Operating Agreement and Certificate
of Formation.....................................................3
1.6 Effect of Partnership Merger on Agreement of Limited
Partnership and Certificate of Limited Partnership...............3
1.7 Conversion of Equity Securities in the Merger; Creation of
New Series of GGP Preferred Stock................................3
1.8 Surrender of Certificates........................................4
1.9 Conversion of Equity Securities in the Partnership Merger........7
1.10 Procedures for Exchange of PDC Common OP Units in the
Partnership Merger...............................................8
ARTICLE 2 REPRESENTATIONS AND WARRANTIES OF JP..........................9
2.1 Organization, Standing and Power.................................9
2.2 JP Subsidiaries..................................................9
2.3 Capital Structure...............................................10
2.4 Other Interests.................................................12
2.5 Authority; Noncontravention; Consents...........................12
2.6 SEC Documents; Financial Statements; Undisclosed Liabilities....13
2.7 Absence of Certain Changes or Events............................14
2.8 Litigation......................................................14
2.9 Properties......................................................15
2.10 Environmental Matters...........................................17
2.11 Related Party Transactions......................................18
2.12 Employee Benefits...............................................18
2.13 Employees; Employee Policies....................................20
2.14 Taxes...........................................................20
2.15 No Payments to Employees, Officers or Directors.................22
2.16 Broker..........................................................22
2.17 Compliance with Laws............................................22
2.18 Contracts; Debt Instruments.....................................22
2.19 Opinion of Financial Advisor....................................24
-i-
{PAGE}
TABLE OF CONTENTS
(continued)
Page
2.20 State Takeover Statutes; JP Rights Plan; Ownership Limits.......24
2.21 Investment Company Act of 1940..................................24
2.22 Definition of Knowledge of JP...................................24
2.23 Required Stockholder Approvals and Partner Approvals............24
2.24 Intellectual Property...........................................25
ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF GGP, GGP PARTNERSHIP
AND ACQUISITION..............................................25
3.1 Organization, Standing and Power of GGP, GGP Partnership,
Acquisition and Partnership Acquisition.........................25
3.2 Capital Stock...................................................26
3.3 Authority; Noncontravention; Consents...........................27
3.4 Litigation......................................................28
3.5 Interim Operations of Acquisition and Partnership
Acquisition.....................................................28
3.6 Capital Resources...............................................28
3.7 GGP SEC Documents; Information Supplied.........................29
3.8 Taxes...........................................................29
3.9 Definition of Knowledge of GGP..................................30
3.10 Broker..........................................................30
ARTICLE 4 COVENANTS....................................................30
4.1 Conduct of JP's and PDC LP's Business Pending Mergers...........30
4.2 No Solicitation.................................................33
4.3 Board Actions...................................................34
4.4 Conduct of GGP's and GGP Partnership's Business Pending
Mergers.........................................................34
4.5 Other Actions...................................................34
ARTICLE 5 ADDITIONAL COVENANTS.........................................35
5.1 Preparation of the Proxy Statement; Stockholders Meeting;
Partner Solicitation; Partner Approvals.........................35
5.2 Access to Information; Confidentiality..........................37
5.3 Commercially Reasonable Efforts; Notification...................37
5.4 Tax Matters.....................................................38
5.5 Public Announcements............................................38
5.6 Transfer and Gains Taxes........................................39
5.7 Benefit Plans and Other Employee Arrangements...................39
-ii-
{PAGE}
TABLE OF CONTENTS
(continued)
Page
5.8 Indemnification; Exculpation; Insurance.........................40
5.9 Declaration of Dividends and Distributions......................42
5.10 Resignations....................................................42
5.11 Registration Rights Agreements..................................42
5.12 Information Supplied............................................43
5.13 The JP Rights Plan..............................................43
5.14 Noncompetition Agreements.......................................43
ARTICLE 6 CONDITIONS...................................................43
6.1 Conditions to Each Party's Obligation to Effect the Merger......43
6.2 Conditions to Obligations of GGP, GGP Partnership,
Acquisition and Partnership Acquisition.........................43
6.3 Conditions to Obligations of JP and PDC LP......................44
ARTICLE 7 TERMINATION, AMENDMENT AND WAIVER; BOARD ACTIONS.............45
7.1 Termination.....................................................45
7.2 Certain Fees, Expenses and Rights...............................46
7.3 Effect of Termination...........................................48
7.4 Amendment.......................................................48
7.5 Extension; Waiver...............................................48
ARTICLE 8 GENERAL PROVISIONS...........................................49
8.1 Nonsurvival of Representations and Warranties...................49
8.2 Notices.........................................................49
8.3 Interpretation..................................................49
8.4 Counterparts....................................................50
8.5 Entire Agreement; No Third-Party Beneficiaries..................50
8.6 Governing Law...................................................50
8.7 Assignment......................................................50
8.8 Enforcement.....................................................50
8.9 Severability....................................................51
8.10 Exculpation.....................................................51
8.11 Joint and Several Obligations...................................51
8.12 Waiver of Jury Trial............................................51
8.13 Knowledge of GGP................................................51
-iii-
{PAGE}
EXHIBITS
Exhibit A - Form of Maryland Articles of Merger
Exhibit B - Form of Delaware Certificate of Merger
Exhibit C - Form of Maryland Articles of Partnership Merger
Exhibit D - Form of Voting Agreement
Exhibit E - Form of Amendment to GGP Partnership Agreement providing for the
creation of the GGP Series B Preferred OP Units
Exhibit F - Form of Redemption Rights Agreement relating to the GGP Series B
Preferred OP Units
Exhibit G - Form of Redemption Rights Agreement relating to the GGP Common
OP Units
Exhibit H - Form of Certificate of Designations providing for the creation of
GGP Series C Preferred Stock
Exhibit I - Tax Matters Agreement
Exhibit J - Severance Matters
Exhibit K - Form of Noncompetition and Confidentiality Agreement
-iv-
{PAGE}
INDEX OF DEFINED TERMS
1940 Act..................................................................2.21
Acquisition...........................................................Preamble
Affiliate.................................................................2.11
Agreement.............................................................Preamble
Allocable Consideration.................................................5.4(a)
Base Amount................................................................7.2
CERCLA.................................................................2.10(a)
Certificate.........................................................1.7(c)(iv)
Closing....................................................................1.3
Closing Date...............................................................1.3
Code...................................................................2.12(a)
Commitment..............................................................4.1(j)
Competing Transaction...................................................4.2(c)
Confidentiality Agreement..............................................2.18(i)
Contributing Holders of PDC Common OP Units .........................Recital B
Controlled Group Member...................................................2.12
Delaware Certificate of Merger.......................................Recital D
Department.................................................................1.4
DGCL................................................................1.7(c)(ii)
DLLCA......................................................................1.1
Effective Time.............................................................1.4
Employee Plan.............................................................2.12
Encumbrances............................................................2.9(a)
Environmental Law......................................................2.10(a)
Environmental Permits..............................................2.10(b)(iv)
ERISA.....................................................................2.12
ERISA Affiliate........................................................2.12(d)
Excess Stock............................................................2.3(a)
Exchange Act...............................................................2.6
Exchange Fund...........................................................1.8(a)
Existing Title Policies.................................................2.9(b)
Final JP Dividend....................................................1.8(d)(i)
Final PDC LP Distribution............................................1.8(d)(i)
Form of Election....................................................5.1(c)(iv)
Former JP Properties...............................................2.10(b)(ii)
GAAP.......................................................................2.6
GGP...................................................................Preamble
GGP Break-Up Expenses......................................................7.2
GGP Break-Up Expenses Tax Opinion..........................................7.2
GGP Break-Up Fee...........................................................7.2
GGP Break-Up Fee Tax Opinion...............................................7.2
GGP By-Laws.............................................................3.1(a)
GGP Charter.............................................................3.1(a)
GGP Common OP Units.....................................................3.2(b)
GGP Common OP Units Redemption Agreement............................1.9(b)(ii)
GGP Common Stock........................................................3.2(a)
GGP Disclosure Letter..................................................Art. 3
GGP Material Adverse Effect.............................................3.1(b)
GGP OP Units............................................................3.2(b)
-v-
{PAGE}
GGP Partnership.......................................................Preamble
GGP Partnership Agreement...............................................3.1(b)
GGP Preferred Stock.....................................................3.2(a)
GGP SEC Documents.......................................................3.7(a)
GGP Series A Junior Preferred Stock.....................................3.2(a)
GGP Series A Preferred OP Units.........................................3.2(b)
GGP Series A Preferred Stock............................................3.2(a)
GGP Series B Preferred OP Units......................................1.9(b)(i)
GGP Series B Preferred OP Units Redemption Agreement................1.9(b)(ii)
GGP Series B Preferred Stock............................................3.2(a)
GGP Series C Preferred Stock........................................1.9(b)(ii)
GGP Series D Preferred Stock........................................1.7(c)(ii)
GGP Series E Preferred Stock........................................1.7(c)(ii)
GGP Series F Preferred Stock........................................1.7(c)(ii)
GGP Stockholders Meeting................................................5.1(b)
GGP Subsidiaries........................................................3.1(b)
Governmental Entity.....................................................2.2(a)
Ground Lease............................................................2.9(f)
Hazardous Materials....................................................2.10(a)
HSR Act.................................................................2.5(b)
Indebtedness...........................................................2.18(a)
Indemnified Parties..................................................5.8(a)(i)
Indemnifying Parties.................................................5.8(a)(i)
IRS GGP Break-Up Expenses Ruling...........................................7.2
IRS GGP Partnership Break-Up Fee Ruling....................................7.2
JP....................................................................Preamble
JP Acquisition Agreement...................................................7.2
JP Articles................................................................2.1
JP Break-Up Expenses.......................................................7.2
JP Budget...............................................................4.1(j)
JP Bylaws..................................................................2.1
JP Common Stock.........................................................2.3(a)
JP Disclosure Letter...................................................Art. 2
JP Financial Statement Date................................................2.7
JP Junior Preferred Stock...............................................2.3(a)
JP Material Adverse Effect.................................................2.1
JP Other Interests.........................................................2.4
JP Partner Approvals....................................................2.5(a)
JP Preferred Stock......................................................1.7(b)
JP Properties...........................................................2.9(a)
JP Rent Roll............................................................2.9(e)
JP Representative.......................................................4.2(a)
JP Rights.................................................................2.20
JP Rights Agreement.......................................................2.20
JP SEC Documents...........................................................2.6
JP Series A Preferred Stock.............................................2.3(a)
JP Series B Preferred Stock.............................................2.3(a)
JP Series C Preferred Stock.............................................2.3(a)
JP Space Lease..........................................................2.9(e)
JP Stock Options........................................................2.3(b)
JP Stock Rights.........................................................2.3(b)
-vi-
{PAGE}
JP Stockholder Approval.................................................2.5(a)
JP Stockholders Meeting.................................................5.1(b)
JP Subsidiaries.........................................................2.2(a)
Knowledge of GGP...........................................................3.9
Knowledge of JP...........................................................2.22
Laws....................................................................2.5(b)
Liens...................................................................2.2(b)
Maryland Articles of Merger..........................................Recital C
Maryland Articles of Partnership Merger..............................Recital E
Material Contract......................................................2.18(a)
Maximum Amount.............................................................7.2
Merger...............................................................Recital A
Merger Consideration....................................................1.7(c)
Mergers..............................................................Recital I
MRULPA.....................................................................1.2
Partner Solicitation Materials.......................................5.1(c)(i)
Partnership Acquisition...............................................Preamble
Partnership Merger...................................................Recital B
Partnership Merger Consideration........................................1.9(b)
Paying Agent............................................................1.8(a)
PDC Common OP Units.....................................................2.3(d)
PDC LP................................................................Preamble
PDC LP Agreement...........................................................1.6
PDC LP Amendment..........................................................1.11
PDC OP Units............................................................2.3(e)
PDC Preferred OP Units..................................................2.3(d)
PDC Series A OP Units...................................................2.3(d)
PDC Series B OP Units...................................................2.3(d)
PDC Series C OP Units...................................................2.3(d)
Pension Plan..............................................................2.12
Permitted Title Exceptions..............................................2.9(a)
Person..................................................................2.2(a)
Price Group Stock.......................................................2.3(a)
Property Permits........................................................2.9(h)
Property Restrictions...................................................2.9(a)
Proxy Statement.........................................................5.1(a)
Qualified Pension Plan.................................................2.12(b)
Qualifying Income..........................................................7.2
REA.....................................................................2.9(g)
REIT...................................................................2.14(b)
REIT Requirements..........................................................7.2
Related Agreements..................................................5.1(c)(iv)
Release................................................................2.10(a)
Required Funding...........................................................3.6
SEC.....................................................................2.5(b)
Secretary of State.........................................................1.4
Securities Act..........................................................2.3(g)
Selling Holders of PDC Common OP Units...............................Recital B
Subsidiary..............................................................2.2(a)
Superior Competing Transaction..........................................4.2(d)
Surviving Company..........................................................1.1
-vii-
{PAGE}
Surviving Partnership......................................................1.2
Takeover Statute..........................................................2.20
Taxes..................................................................2.14(a)
Tax Protection Agreement...............................................2.18(h)
Title 3....................................................................1.1
Transfer and Gains Taxes...................................................5.6
Voting Agreement.....................................................Recital J
Welfare Plan..............................................................2.12
-viii-
{PAGE}
AGREEMENT AND PLAN OF MERGER
THIS AGREEMENT AND PLAN OF MERGER (this "Agreement"), dated as of March 3,
2002, by and among GENERAL GROWTH PROPERTIES, INC., a Delaware corporation
("GGP"), GGP LIMITED PARTNERSHIP, a Delaware limited partnership ("GGP
Partnership"), GGP ACQUISITION, L.L.C., a Delaware limited liability company and
a wholly-owned subsidiary of GGP Partnership ("Acquisition"), GGP ACQUISITION
II, L.L.C., a Maryland limited liability company and a wholly-owned subsidiary
of GGP Partnership ("Partnership Acquisition"), JP REALTY, INC., a Maryland
corporation ("JP"), and PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP, a
Maryland limited partnership ("PDC LP").
RECITALS:
A. The Board of Directors of GGP and the Board of Directors of JP deem it
advisable and in the best interests of their respective stockholders, upon the
terms and subject to the conditions contained herein, that JP shall merge with
and into Acquisition (the "Merger"), with each issued and outstanding share of
JP Common Stock and Price Group Stock, each as defined herein, to be converted
into the right to receive $26.10 in cash without interest.
B. GGP Partnership, as the sole member of Partnership Acquisition, and JP,
as the sole general partner of PDC LP, deem it advisable and in the best
interests of their respective member and limited partners, upon the terms and
subject to the conditions contained herein, that, immediately prior to the
Merger, Partnership Acquisition shall merge with and into PDC LP (the
"Partnership Merger"), with the holders of PDC Common OP Units (as defined
herein) in PDC LP at the time of the Partnership Merger receiving (except as
otherwise provided herein) GGP Series B Preferred OP Units (as defined herein)
(such holders being the "Contributing Holders of PDC Common OP Units"), as set
forth herein, or $26.10 cash without interest (such holders being the "Selling
Holders of PDC Common OP Units").
C. Upon the terms and subject to the conditions set forth herein,
Acquisition and JP shall execute Articles of Merger (the "Maryland Articles of
Merger") in substantially the form attached hereto as Exhibit A and shall file
such Maryland Articles of Merger in accordance with Maryland law to effectuate
the Merger.
D. Upon the terms and subject to the conditions set forth herein,
Acquisition and JP shall execute a Certificate of Merger (the "Delaware
Certificate of Merger") in substantially the form attached hereto as Exhibit B
and, concurrently with the filing of the Maryland Articles of Merger, shall file
such Delaware Certificate of Merger in accordance with Delaware law to
effectuate the Merger.
E. Upon the terms and subject to the conditions set forth herein,
immediately prior to the Merger, PDC LP and Partnership Acquisition shall
execute Articles of Merger (the "Maryland Articles of Partnership Merger") in
substantially the form attached hereto as Exhibit C and shall file such Maryland
Articles of Partnership Merger in accordance with Maryland law to effectuate the
Partnership Merger.
F. JP has received a fairness opinion relating to the Merger contemplated
hereby as more fully described herein.
G. For federal income tax purposes, it is intended that the Merger will be
treated as a taxable sale of assets by JP in exchange for cash and the
assumption of liabilities and a distribution of such cash to the JP stockholders
in liquidation of JP.
{PAGE}
H. For federal income tax purposes, it is intended that the Partnership
Merger, regardless of form, be treated as a tax-free contribution by the
Contributing Holders of PDC Common OP Units of their PDC Common OP Units to GGP
Partnership in exchange for GGP Series B Preferred OP Units, under Section 721
of the Code, and a sale by the Selling Holders of PDC Common OP Units of their
PDC Common OP Units to GGP Partnership in exchange for cash.
I. GGP, GGP Partnership, Acquisition, Partnership Acquisition, JP and PDC
LP desire to make certain representations, warranties and agreements in
connection with the Merger and the Partnership Merger (collectively, the
"Mergers").
J. As an inducement to GGP and GGP Partnership to enter into this
Agreement, certain stockholders of JP and certain holders of PDC Common OP Units
have entered into a voting agreement (the "Voting Agreement"), in substantially
the form attached hereto as Exhibit D, pursuant to which each such Person (as
defined herein) has agreed, among other things, to vote his or its shares of JP
Common Stock, Price Group Stock and PDC Common OP Units to approve, as
applicable, this Agreement, the Mergers, the PDC LP Amendment (as defined
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