|
|
|
|
Document Preview Agreement and Plan of Merger |
||||
|
|
||||
|
Click "Add to Cart" button to purchase document. |
||||
|
|
||||
|
Title: |
Agreement and Plan of Merger |
|||
|
Entities: |
||||
|
Date: |
2002 |
|||
|
Size: |
Preview shows 14KB of 271KB total |
|||
|
Price: |
$91 |
|||
|
ID: |
#809786 |
|||
|
|
||||
|
||||
|
|
||||
|
Start of Preview |
||||
AGREEMENT AND PLAN OF MERGER
AMONG
HEADWATERS INCORPORATED,
HEADWATERS OLYSUB CORPORATION,
INDUSTRIAL SERVICES GROUP, INC.
AND
ISG RESOURCES, INC.
DATED AS OF JULY 15, 2002
{PAGE}
TABLE OF CONTENTS
Page
ARTICLE I. DEFINITIONS........................................................2
SECTION 1.1 Definitions..............................................2
ARTICLE II. THE MERGER.......................................................11
SECTION 2.1 The Merger..............................................11
SECTION 2.2 Closing.................................................11
SECTION 2.3 Effective Time..........................................11
SECTION 2.4 Effects of the Merger...................................12
SECTION 2.5 Certificate of Incorporation and Bylaws; Officers
and Directors.....................12
ARTICLE III. EFFECT OF THE MERGER ON THE STOCK OF THE CONSTITUENT
CORPORATIONS; EXCHANGE OF CERTIFICATES..........................12
SECTION 3.1 Effect on Capital Stock.................................12
SECTION 3.2 Phantom Stock Right and CVC Warrants....................13
SECTION 3.3 Post-Closing Adjustment.................................14
SECTION 3.4 Exchange of Certificates for the Stock Merger
Consideration..........................................15
SECTION 3.5 Dissenters' Rights......................................17
ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND PUBLIC SUB.....18
SECTION 4.1 Organization............................................18
SECTION 4.2 Subsidiaries............................................18
SECTION 4.3 Capital Structure.......................................19
SECTION 4.4 Authority...............................................19
SECTION 4.5 Consent and Approvals; No Violations....................20
SECTION 4.6 SEC Documents; Financial Statements.....................20
SECTION 4.7 Accounts Receivable.....................................22
SECTION 4.8 Absence of Changes......................................22
SECTION 4.9 Properties..............................................24
SECTION 4.10 Environmental Matters...................................25
SECTION 4.11 Compliance with Laws; Permits...........................26
SECTION 4.12 Tax Matters.............................................26
SECTION 4.13 Employee Benefit Plans; ERISA...........................29
SECTION 4.14 Labor Matters/Workers' Compensation.....................30
SECTION 4.15 Legal Proceedings.......................................31
SECTION 4.16 Intellectual Property...................................31
SECTION 4.17 Contracts...............................................33
SECTION 4.18 No Default..............................................33
SECTION 4.19 Insurance...............................................34
SECTION 4.20 Books and Records.......................................35
SECTION 4.21 Board Approval..........................................35
SECTION 4.22 Stockholder Approval....................................35
SECTION 4.23 Affiliate Transactions..................................35
Merger Agmt - i -
{PAGE}
SECTION 4.24 Brokers.................................................35
SECTION 4.25 Laidlaw Promissory Notes................................35
SECTION 4.26 Full Disclosure.........................................35
SECTION 4.27 Customers; Clients......................................36
SECTION 4.28 Acknowledgment by Company and Public Sub................36
ARTICLE V. REPRESENTATIONS AND WARRANTIES OF PARENT..........................36
SECTION 5.1 Organization............................................36
SECTION 5.2 Sub Capital Structure...................................36
SECTION 5.3 Authority...............................................37
SECTION 5.4 Consents and Approvals; No Violations...................37
SECTION 5.5 Parent Stock to be Issued in the Merger.................38
SECTION 5.6 SEC Documents; Financial Statements.....................38
SECTION 5.7 Commitment Financing....................................39
SECTION 5.8 Capital Structure.......................................39
SECTION 5.9 Absence of Changes......................................39
SECTION 5.10 Compliance with Laws; Permits...........................39
SECTION 5.11 Legal Proceedings.......................................40
SECTION 5.12 Customers; Clients......................................40
SECTION 5.13 Acknowledgment by Parent................................40
SECTION 5.14 Contracts...............................................41
SECTION 5.15 No Default..............................................41
SECTION 5.16 Board Approval..........................................42
SECTION 5.17 Brokers.................................................42
SECTION 5.18 Full Disclosure.........................................42
ARTICLE VI. COVENANTS........................................................42
SECTION 6.1 Interim Operations......................................42
SECTION 6.2 No Solicitation.........................................46
SECTION 6.3 Third Party Standstill Agreements.......................47
SECTION 6.4 Other Actions; Notification.............................47
SECTION 6.5 Nasdaq Listing..........................................49
SECTION 6.6 Indemnification of Company Directors and Officers.......49
SECTION 6.7 Access..................................................50
SECTION 6.8 Publicity...............................................51
SECTION 6.9 Employee Benefits; Treatment of Plans...................51
SECTION 6.10 Fees and Expenses.......................................52
SECTION 6.11 Form 10-Qs..............................................52
SECTION 6.12 State Takeover Laws.....................................53
SECTION 6.13 Accountant's Letter.....................................53
SECTION 6.14 Tax-Free Reorganization.................................53
SECTION 6.15 Commitment Financing....................................54
SECTION 6.16 Company Financial Data Schedule.........................54
SECTION 6.17 Transaction Expenses....................................55
SECTION 6.18 Debt; Warrants..........................................55
SECTION 6.19 Debt Tender Offer and Consent Solicitation..............55
SECTION 6.20 Closing Preferred Liquidation Value.....................55
Merger Agmt - ii -
{PAGE}
SECTION 6.21 Registration Rights Agreement...........................55
SECTION 6.22 FIRPTA..................................................56
ARTICLE VII. CONDITIONS PRECEDENT............................................56
SECTION 7.1 Conditions to Each Party's Obligation to Effect
the Merger.............................................56
SECTION 7.2 Conditions to Obligations of Parent and the Sub.........56
SECTION 7.3 Conditions to Obligation of the Company.................58
ARTICLE VIII. INDEMNIFICATION, ESCROW AND HOLDERS' REPRESENTATIVE............60
SECTION 8.1 Survival................................................60
SECTION 8.2 Indemnification by the Company Stockholders.............60
SECTION 8.3 Indemnification by Parent...............................61
SECTION 8.4 Calculation of Indemnifiable Damages....................62
SECTION 8.5 Sole Remedy.............................................62
SECTION 8.6 Indemnification Procedures..............................62
SECTION 8.7 Holders' Representatives................................63
ARTICLE IX. TERMINATION AND AMENDMENT........................................65
SECTION 9.1 Termination.............................................65
SECTION 9.2 Effect of Termination...................................66
SECTION 9.3 Amendment...............................................66
SECTION 9.4 Extension; Waiver.......................................66
ARTICLE X. GENERAL PROVISIONS................................................67
SECTION 10.1 Survival of Covenants and Agreements....................67
SECTION 10.2 Notices.................................................67
SECTION 10.3 Interpretation..........................................68
SECTION 10.4 Counterparts............................................68
SECTION 10.5 Entire Agreement; No Third-Party Beneficiaries..........68
SECTION 10.6 Governing Law...........................................69
SECTION 10.7 Assignment..............................................69
SECTION 10.8 Severability............................................69
SECTION 10.9 Enforcement of This Agreement...........................69
SECTION 10.10 Obligations of Subsidiaries.............................69
SECTION 10.11 Waiver of Right to Jury Trial...........................69
Merger Agmt - iii -
{PAGE}
ANNEXES AND EXHIBITS
Annex A Company Knowledge Persons
Annex B Parent Knowledge Persons
Annex C Calculation of Net Asset Value
Annex D Calculation of Net Working Capital
Exhibit A Form of Noncompetition Agreement
Exhibit B Form of Escrow Agreement
Exhibit C Form of Registration Rights Agreement
Exhibit D Form of Opinion of Company's Legal Counsel
Exhibit E Form of Opinion of Parent's Legal Counsel
Merger Agmt - iv -
{PAGE}
AGREEMENT AND PLAN OF MERGER
AGREEMENT AND PLAN OF MERGER, dated as of July 15, 2002 (this
"Agreement"), among Headwaters Incorporated, a Delaware corporation ("Parent"),
Headwaters Olysub Corporation, a Delaware corporation and a wholly-owned
subsidiary of Parent (the "Sub"), Industrial Services Group, Inc., a Delaware
corporation (the "Company") (the Sub and the Company being hereinafter
collectively referred to as the "Constituent Corporations"), and ISG Resources,
Inc., a Utah corporation and a wholly-owned subsidiary of the Company (the
"Public Sub"),
W I T N E S S E T H:
WHEREAS, the respective boards of directors of each of Parent, the Sub,
the Company and the Public Sub have approved this Agreement, pursuant to which
the Company will merge with and into the Sub (the "Merger");
WHEREAS, concurrently with the execution and delivery of this
Agreement, each holder of an equity or economic interest in the Company or its
Subsidiaries has entered into an Equityholder Agreement (the "Equityholder
Agreement"), pursuant to which, among other things, such holder has waived any
and all redemption rights such holder may have under the Company's certificate
of incorporation, consented to and approved the Merger, this Agreement and the
Transactions, and made certain investment representations;
WHEREAS, in connection with and in consideration for the exchange of
the Merger Consideration pursuant to the Merger, concurrently with the execution
and delivery of this Agreement, Parent and each of R Steve Creamer, Jean I.
Everest and Raul A. Deju have entered into an agreement not to compete in the
form of Exhibit A attached hereto (each a "Noncompetition Agreement");
WHEREAS, concurrently with or prior to the execution and delivery of
this Agreement, holders of a majority in aggregate principal amount of the Notes
|
End of Preview |
Home Intelligence Services Subscriptions News About Us