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Title: |
Merger Agreement |
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Date: |
2002 |
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Preview shows 26KB of 154KB total |
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$49 |
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ID: |
#357990 |
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MERGER AGREEMENT
AMONG
STATESRAIL, INC.,
RAILAMERICA, INC.,
STATESRAIL ACQUISITION CORP.
AND
THE STOCKHOLDERS OF STATESRAIL, INC.
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DATED AS OF OCTOBER 12, 2001
---------------------
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
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{S} {C} {C}
ARTICLE I
AGREEMENT OF MERGER
1.01. The Merger...............................................................................................1
1.02. Closing..................................................................................................2
1.03. Effective Time and Effect of the Merger..................................................................2
1.04. Certificate of Incorporation and Bylaws..................................................................2
1.05. Directors................................................................................................2
1.06. Officers.................................................................................................2
1.07. Supplementary Action.....................................................................................2
ARTICLE II
EFFECT OF THE MERGER ON THE CAPITAL STOCK OF THE CONSTITUENT CORPORATIONS;
EXCHANGE OF CERTIFICATES
2.01. Effect on Capital Stock..................................................................................3
2.02. Closing Procedures.......................................................................................4
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF BUYER
3.01. Due Organization.........................................................................................5
3.02. Due Authorization........................................................................................5
3.03. Brokers, Finders and Financial Advisors..................................................................6
3.04. Investment Intent........................................................................................6
3.05. Buyer Shares.............................................................................................6
3.06. Buyer Information........................................................................................6
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF KAURI AND THE COMPANY
4.01. Capitalization...........................................................................................7
4.02. Other Rights to Acquire Capital Stock....................................................................7
4.03. Due Organization.........................................................................................7
4.04. Subsidiaries.............................................................................................7
4.05. Due Authorization........................................................................................8
4.06. Financial Statements.....................................................................................9
4.07. Conduct of Business; Certain Actions.....................................................................9
4.08. Ownership of Properties.................................................................................10
4.09. Environmental Matters...................................................................................11
4.10. Licenses and Permits....................................................................................11
4.11. Intellectual Rights.....................................................................................12
4.12. Compliance with Laws....................................................................................13
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4.13. Insurance...............................................................................................13
4.14. ERISA Compliance........................................................................................13
4.15. Contracts and Agreements................................................................................14
4.16. Claims and Proceedings..................................................................................14
4.17. Taxes...................................................................................................15
4.18. Personnel...............................................................................................18
4.19. Business Relations......................................................................................18
4.20. Accounts Receivable.....................................................................................18
4.21. Bank Accounts...........................................................................................18
4.22. Agents..................................................................................................19
4.23. Indebtedness To and From Officers, Directors, Shareholders and Employees................................19
4.24. Certain Consents........................................................................................19
4.25. Brokers.................................................................................................19
4.26. Interest in Competitors, Suppliers and Customers........................................................19
4.27. Inventory...............................................................................................20
4.28. Transactions With Affiliates............................................................................20
4.29. Absence of Certain Payments.............................................................................20
4.30. Equipment...............................................................................................20
4.31. Current Assets..........................................................................................21
ARTICLE V
ADDITIONAL REPRESENTATIONS AND WARRANTIES OF THE SELLERS
5.01. Ownership of Shares/No Liens............................................................................21
5.02. Other Rights to Acquire Capital Stock...................................................................21
5.03. Due Authorization.......................................................................................21
5.04. Brokers.................................................................................................22
5.05. Purchase of Buyer Shares for Investment.................................................................22
5.06. Tax Status of Such Seller...............................................................................22
ARTICLE VI
COVENANTS
6.01. Inspection..............................................................................................22
6.02. Compliance by the Company and Sellers...................................................................23
6.03. Satisfaction of All Conditions Precedent to the Obligations of Buyer....................................23
6.04. No Solicitation.........................................................................................23
6.05. Notice of Developments..................................................................................23
6.06. Notice of Breach........................................................................................24
6.07. Notice of Litigation....................................................................................24
6.08. Continuation of Insurance Coverage......................................................................24
6.09. Maintenance of Credit Terms.............................................................................24
6.10. Updating Information....................................................................................24
6.11. Financial Statements....................................................................................24
6.12. Interim Operations of the Company.......................................................................25
6.13. Surface Transportation Board............................................................................26
{/TABLE}
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6.14. Resignations of Directors and Officers..................................................................26
6.15. Compliance by Buyer and Sub.............................................................................26
6.16. Satisfaction of All Conditions Precedent to the Obligations of Sellers and the Company..................26
6.17. Notice by Buyer and Sub of Breach.......................................................................26
6.18. Notice by Buyer and Sub of Litigation...................................................................27
6.19. Termination of Employees................................................................................27
6.20. Filing of Tax Returns...................................................................................27
6.21. Delivery of Schedules...................................................................................28
ARTICLE VII
CONDITIONS TO CLOSING
7.01. Conditions to Obligations of Buyer and Sub..............................................................28
7.02. Conditions to Obligations of Sellers and the Company....................................................30
ARTICLE VIII
TERMINATION
8.01. Termination.............................................................................................31
8.02. Effect of Termination...................................................................................32
8.03. Waiver..................................................................................................32
ARTICLE IX
MISCELLANEOUS
9.01. Collateral Agreements, Amendments and Waivers...........................................................32
9.02. Interpretation and Certain Definitions..................................................................33
9.03. Successors and Assigns..................................................................................33
9.04. Expenses................................................................................................33
9.05. Invalid Provisions......................................................................................34
9.06. Information and Confidentiality.........................................................................34
9.07. Waiver..................................................................................................34
9.08. Notices.................................................................................................34
9.09. Public Announcement.....................................................................................35
9.10. Waiver of Certain Rights................................................................................35
9.11. Further Assurances......................................................................................36
9.12. No Third-Party Beneficiaries............................................................................36
9.13. Governing Law...........................................................................................36
9.14. Prevailing Party........................................................................................36
9.15. Counterparts............................................................................................36
9.16. Dispute Resolution......................................................................................36
9.17. Remedies in Indemnification Agreement Control...........................................................37
{/TABLE}
(iii)
{PAGE}
SCHEDULES
3.02 No Conflicts
4.03 Foreign Qualification of the Company
4.04 Subsidiaries and Foreign Qualification Thereof
4.06(b) Undisclosed Liabilities
4.07 Conduct of Business
4.07(c) Capital Expenditures
4.08 Real and Personal Properties
4.09 Environmental Matters
4.10 Licenses and Permits
4.11 Intellectual Rights
4.12 Compliance With Laws
4.13 Insurance
4.14 ERISA
4.15 Contracts and Agreements
4.16 Claims and Proceedings
4.17 Taxes
4.18 Personnel
4.19 Business Relations
4.20 Accounts Receivable
4.21 Bank Accounts
4.22 Agents
4.23 Indebtedness to and from Officers, Directors, Shareholders and
Employees
4.24 Required Consents
4.25 Brokers
4.26 Interest in Competitors, Suppliers and Customers
4.27 Inventory
4.28 Transactions with Affiliates
4.30 Equipment
5.01 List of Sellers
6.19 Corporate Employees
9.02 Directors, officers and General Managers
EXHIBITS
A - Form of Escrow Agreement
B - Legal Opinion Matters of Fish & Richardson P.C., counsel for the Company
and the Sellers
C - Legal Opinion Matters of Greenberg Traurig, P.A., counsel for Buyer
D - Form of Registration Rights Agreement
E - Form of Indemnification Agreement
(iv)
{PAGE}
MERGER AGREEMENT
THIS MERGER AGREEMENT (this "AGREEMENT") is entered into as of October
12, 2001, among RailAmerica, Inc., a Delaware corporation ("BUYER"), StatesRail
Acquisition Corp., a Delaware corporation ("SUB"), StatesRail, Inc., a Delaware
corporation (the "COMPANY"), and all of the stockholders of the Company (the
"SELLERS"), all of whom are identified on SCHEDULE 5.01 attached hereto.
WHEREAS, the Sellers are all of the stockholders of the Company as of
the date hereof;
WHEREAS, the Sellers and the respective Boards of Directors of Buyer
and the Company have each determined that it is in the best interests of their
respective companies and stockholders that Buyer acquire the business of the
Company pursuant to the terms and subject to the conditions set forth in this
Agreement; and
WHEREAS, the Sellers and the respective Boards of Directors of Buyer,
Sub and the Company have each approved the merger of the Company into Sub (the
"MERGER"), upon the terms and subject to the conditions set forth in this
Agreement whereby each outstanding share of the Company (including the Class A
Shares, Class B Shares and the Preferred Shares, all as defined herein) (each a
"COMPANY SHARE") of capital stock of the Company ("COMPANY CAPITAL STOCK"),
other than those shares of Company Capital Stock held as treasury stock by the
Company, will be converted into the right to receive cash and shares of common
stock, par value $.001, of Buyer (each whole share a "BUYER SHARE"), as set
forth in this Agreement;
WHEREAS, the Sellers and the respective Boards of Directors of the
Company and Buyer have each determined that the Merger is fair to, and in the
best interests of, their respective companies and stockholders, and have
approved the Merger; and
WHEREAS, the Sellers, the Buyer, Sub and the Company desire to make
certain representations, warranties, covenants and agreements in connection with
the Merger and also to prescribe various conditions to the Merger.
NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and agreements herein contained, and intending to be legally bound
hereby, the Sellers, Buyer, Sub and the Company hereby agree as follows:
ARTICLE I
AGREEMENT OF MERGER
1.01. THE MERGER. Upon the terms and subject to the conditions set
forth in this Agreement, and in accordance with the Delaware General Corporation
Law (the "DELAWARE CORPORATION LAW"), the Company shall be merged with and into
the Sub at the Effective Time (as defined in Section 1.03). Following the
{PAGE}
Effective Time, the separate corporate existence of the Company shall cease and
the Sub shall continue as the surviving corporation (the "SURVIVING
CORPORATION") and shall succeed to and assume all the rights and obligations of
the Company in accordance with the Delaware Corporation Law.
1.02. CLOSING. The closing (the "CLOSING") of the Merger will take
place at 1:00 p.m. (E.S.T.) on a date to be specified by Buyer and Kauri (as
defined in Section 2.02(b)), which shall be no later than the last day of the
month in which satisfaction or waiver of the conditions set forth in Article VII
shall have occurred, but in any event not later than the Termination Date (as
defined in Section 8.01) (the "CLOSING DATE"), at the offices of Greenberg
Traurig, P.A., counsel to Buyer, unless another date, time or place is agreed to
in writing by the parties hereto.
1.03. EFFECTIVE TIME AND EFFECT OF THE MERGER. 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 or other appropriate
documents (in any such case, the "CERTIFICATE OF MERGER") executed in accordance
with the relevant provisions of the Delaware Corporation Law and shall make all
other filings or recordings required under the Delaware Corporation Law. The
Merger shall become effective at such time as the Certificate of Merger is duly
filed with the Delaware Secretary of State, or at such later time as Sub and the
Company shall agree and as is specified in the Certificate of Merger (the time
the Merger becomes effective being hereinafter referred to as the "EFFECTIVE
TIME"). The Merger shall have the effects set forth in the applicable provisions
of the Delaware Corporation Law.
1.04. CERTIFICATE OF INCORPORATION AND BYLAWS.
(a) The Certificate of Incorporation of the Surviving
Corporation shall be the same as the Certificate of Incorporation of Sub as in
effect immediately prior to the Effective Time until thereafter changed or
amended as provided therein or by applicable law; provided that Article I
thereof shall be amended to provide that the corporate name of the Surviving
Corporation is "StatesRail, Inc."
(b) The bylaws of Sub as in effect immediately prior to the
Effective Time shall be the bylaws of the Surviving Corporation until thereafter
changed or amended as provided therein or by applicable law.
1.05. DIRECTORS. The directors of Sub immediately prior to the
Effective Time shall be the directors of the Surviving Corporation until the
earlier of their resignation or removal or until their respective successors are
duly elected and qualified, as the case may be.
1.06. OFFICERS. The officers of Sub immediately prior to the Effective
Time or such other persons as Buyer shall designate shall be the officers of the
Surviving Corporation until the earlier of their resignation or removal or until
their respective successors are duly elected and qualified, as the case may be.
1.07. SUPPLEMENTARY ACTION. If at any time after the Effective Time,
any further assignments or assurances are necessary or desirable to vest or to
perfect or confirm of record in the Surviving Corporation the title to any
property or rights of the Company or Sub, or otherwise to carry out the
provisions of this Agreement, the officers and directors of the Surviving
2
{PAGE}
Corporation are hereby authorized and empowered in the name of and on behalf of
the Company and the Sub to execute and deliver any and all things necessary or
proper to vest or to perfect or confirm title to such property or rights in the
Surviving Corporation, and otherwise to carry out the purposes and provisions of
this Agreement.
ARTICLE II
EFFECT OF THE MERGER ON THE CAPITAL STOCK OF THE CONSTITUENT CORPORATIONS;
EXCHANGE OF CERTIFICATES
2.01. EFFECT ON CAPITAL STOCK. As of the Effective Time, by virtue of
the Merger and without any action on the part of the holder of any Company
Shares or any shares of capital stock of Sub:
(a) CAPITAL STOCK OF SUB. Each issued and outstanding share of
capital stock of Sub shall be converted into and become one fully paid and
nonassessable share of common stock, par value $0.01 per share, of the Surviving
Corporation.
(b) CANCELLATION OF COMPANY OWNED STOCK. All Company Shares
(if any) that are held in the treasury of the Company shall be canceled and no
consideration shall be delivered in exchange therefor.
(c) AGGREGATE CONSIDERATION. The Sellers shall receive, in
consideration of the Company Shares, according to the terms and conditions set
forth in this Agreement and the Letter Agreement, dated as of the date hereof
(the "LETTER AGREEMENT"), by and among Buyer, Sub, the Sellers, West Texas and
Lubbock Railroad Company, Inc., a Texas corporation ("WEST TEXAS"), New
StatesRail Holdings, Inc., a Delaware corporation ("NEW STATESRAIL"), StatesRail
L.L.C., a Delaware limited liability company ("STATESRAIL LLC") and the members
of StatesRail LLC (the "MEMBERS"), total consideration of $51,186,000, subject
to the adjustments set forth in the Letter Agreement (the "MERGER
CONSIDERATION"). The Merger Consideration shall be paid in a combination of cash
(the "CASH CONSIDERATION") and Buyer Shares (the "STOCK CONSIDERATION") valued
as provided in the Letter Agreement.
(d) CONVERSION OF COMPANY CAPITAL STOCK. At the Effective
Time, each Company Share shall be converted into the right to receive that
portion of the Merger Consideration determined in accordance with the Allocation
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