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Document Preview Merger Agreement |
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Title: |
Merger Agreement |
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Entities: |
Apollo Gold Corp.; Citibank, NA; Salomon Smith Barney Inc.; Smith Barney Inc.; Preston Gates & Ellis LLP |
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Date: |
2003 |
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Size: |
Preview shows 23KB of 132KB total |
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Price: |
$63 |
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ID: |
#828989 |
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Start of Preview |
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NEVORO GOLD CORPORATION
NEVORO GOLD USA INC.
APOLLO GOLD, INC.
================================================================================
MERGER AGREEMENT
================================================================================
DATED AS OF JANUARY 31, 2002
{PAGE}
TABLE OF CONTENTS
PAGE
ARTICLE I THE MERGER . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Effective Time of the Merger . . . . . . . . . . . . . . 1
1.2 Closing. . . . . . . . . . . . . . . . . . . . . . . . . 1
1.3 Effects of the Merger. . . . . . . . . . . . . . . . . . 1
1.4 Purchase Price . . . . . . . . . . . . . . . . . . . . . 1
1.5 Conversion of Company Shares . . . . . . . . . . . . . . 2
1.5.1. Company Shares . . . . . . . . . . . . . . . . 2
1.5.2 Delivery of Conversion Payment . . . . . . . . 2
1.6 Company Obligations To Be Paid At Closing;
Extinguishment of Warrants . . . . . . . . . . 3
1.6.1 Company Obligations to be Paid at Closing. . . 3
1.6.2 Extinguishment of Warrants . . . . . . . . . . 5
1.7 No Further Ownership Rights in the Company . . . . . . . 5
1.8 Dissenters' Rights . . . . . . . . . . . . . . . . . . . 5
ARTICLE II REPRESENTATIONS AND WARRANTIES . . . . . . . . . . . . . . 5
2.1 Representations and Warranties of the Company. . . . . . 5
2.1.1 Organization and Standing; Company Subsidiaries 6
2.1.2 Capital Structure. . . . . . . . . . . . . . . 7
2.1.3 Authority. . . . . . . . . . . . . . . . . . . 7
2.1.4 Compliance with Laws and Other Instruments . . 8
2.1.5 Financial Statements . . . . . . . . . . . . . 9
2.1.6 No Material Adverse Change . . . . . . . . . . 9
2.1.7 Taxes. . . . . . . . . . . . . . . . . . . . . 10
2.1.8 Employees. . . . . . . . . . . . . . . . . . . 11
2.1.9 Employee Benefit Plans . . . . . . . . . . . . 11
2,1.10 Certain Agreements . . . . . . . . . . . . . . 12
2.1.11 Litigation . . . . . . . . . . . . . . . . . . 12
2.1.12 Title to and Condition of Assets . . . . . . . 13
2.1.13 Real Property. . . . . . . . . . . . . . . . . 13
2.1.14 Environmental Matters. . . . . . . . . . . . . 14
2.1.15 Technology and Intellectual Property . . . . . 15
2.1.16 Insurance and Banking Facilities . . . . . . . 15
2.1.17 Major Contracts. . . . . . . . . . . . . . . . 15
2.1.18 Brokers and Finders. . . . . . . . . . . . . . 16
2.1.19 No Other Representations or Warranties . . . . 16
2.2 Representations and Warranties of Buyer and Sub. . . . . 16
2.2.1 Organization; Standing and Power . . . . . . . 16
2.2.2 Authority. . . . . . . . . . . . . . . . . . . 17
2.2.3 Compliance with Laws and Other Instruments . . 17
2.2.4 Buyer Financing. . . . . . . . . . . . . . . . 17
2.2.5 Brokers and Finders. . . . . . . . . . . . . . 18
-i-
{PAGE}
ARTICLE III COVENANTS OF COMPANY. . . . . . . . . . . . . . . . . . . 18
3.1 Conduct of Business. . . . . . . . . . . . . . . . . . . 18
3.2 Dividends, Issuance of or Changes in Securities. . . . . 19
3.3 Governing Documents. . . . . . . . . . . . . . . . . . . 19
3.4 No Acquisitions. . . . . . . . . . . . . . . . . . . . . 19
3.5 No Dispositions. . . . . . . . . . . . . . . . . . . . . 19
3.6 Indebtedness . . . . . . . . . . . . . . . . . . . . . . 19
3.7 Compensation . . . . . . . . . . . . . . . . . . . . . . 19
3.8 Claims . . . . . . . . . . . . . . . . . . . . . . . . . 20
3.9 Access to Properties and Records . . . . . . . . . . . . 20
3.10 Breach of Representation and Warranties. . . . . . . . . 20
3.11 Consents . . . . . . . . . . . . . . . . . . . . . . . . 20
3.12 Tax Returns. . . . . . . . . . . . . . . . . . . . . . . 20
3.13 Preparation of Disclosure and Solicitation Materials . . 21
3.14 Exclusivity; Acquisition Proposals . . . . . . . . . . . 21
3.15 Notice of Events . . . . . . . . . . . . . . . . . . . . 22
3.16 Efforts. . . . . . . . . . . . . . . . . . . . . . . . . 22
3.17 Board Approval . . . . . . . . . . . . . . . . . . . . . 22
ARTICLE IV COVENANTS OF BUYER AND SUB . . . . . . . . . . . . . . . . 22
4.1 Breach of Representations and Warranties . . . . . . . . 22
4.2 Consents . . . . . . . . . . . . . . . . . . . . . . . . 22
4.3 Efforts. . . . . . . . . . . . . . . . . . . . . . . . . 22
4.4 Buyer Financing. . . . . . . . . . . . . . . . . . . . . 23
ARTICLE V ADDITIONAL AGREEMENTS . . . . . . . . . . . . . . . . . . . 23
5.1 Legal Conditions to the Merger . . . . . . . . . . . . . 23
5.2 Employee Benefits. . . . . . . . . . . . . . . . . . . . 23
5.3 Transaction Expenses . . . . . . . . . . . . . . . . . . 23
5.4 Additional Agreements. . . . . . . . . . . . . . . . . . 23
5.5 Officers and Directors . . . . . . . . . . . . . . . . . 24
5.6 Public Announcements . . . . . . . . . . . . . . . . . . 24
ARTICLE VI CONDITIONS PRECEDENT . . . . . . . . . . . . . . . . . . . 24
6.1 Conditions to Each Party's Obligation to Effect the Merger 24
6.1.1 Governmental Approvals . . . . . . . . . . . . 24
6.1.2 No Restraints. . . . . . . . . . . . . . . . . 24
6.2 Conditions of Obligations of Buyer and Sub . . . . . . . 24
6.2.1 Representations and Warranties of the Company. 25
6.2.2 Performance of Obligations of the Company. . . 25
6.2.3 Legal Action . . . . . . . . . . . . . . . . . 25
6.2.4 Opinion of Counsel . . . . . . . . . . . . . . 25
6.2.5 Consents . . . . . . . . . . . . . . . . . . . 25
6.2.6 Termination of Rights and Certain Securities . 26
6.2.7 No Casualty. . . . . . . . . . . . . . . . . . 26
6.2.8 Shareholder Approvals. . . . . . . . . . . . . 26
-ii-
{PAGE}
6.3 Conditions of Obligation of the Company. . . . . . . . . 26
6.3.1 Representations and Warranties of Buyer and Sub 26
6.3.2 Performance of Obligations of Buyer and Sub. . 26
6.3.3 Closing Certificate of Buyer and Sub . . . . . 26
6.3.4 Legal Action . . . . . . . . . . . . . . . . . 26
6.3.5 Shareholder Approval . . . . . . . . . . . . . 27
6.3.6 Satisfaction of Obligations. . . . . . . . . . 27
6.3.7 Schedule of Incumbent Terminating Officers and
Employees. . . . . . . . . . . . . . . . . . . 27
6.3.8 Warrant Notice . . . . . . . . . . . . . . . . 27
6.3.9 Director and Officer Tail Coverage . . . . . . 27
ARTICLE VII TERMINATION . . . . . . . . . . . . . . . . . . . . . . . 27
7.1 Mutual Agreement . . . . . . . . . . . . . . . . . . . . 27
7.2 Termination by Buyer; Financing Out. . . . . . . . . . . 27
7.2.1 Termination by Buyer . . . . . . . . . . . . . 27
7.2.2 Financing Out. . . . . . . . . . . . . . . . . 27
7.3 Termination by the Company . . . . . . . . . . . . . . . 28
7.4 Outside Date . . . . . . . . . . . . . . . . . . . . . . 28
7.5 Effect of Termination. . . . . . . . . . . . . . . . . . 28
ARTICLE VIII GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . 28
8.1 Entire Agreement . . . . . . . . . . . . . . . . . . . . 28
8.2 Governing Law; Consent to Jurisdiction . . . . . . . . . 28
8.3 Notices. . . . . . . . . . . . . . . . . . . . . . . . . 28
8.4 Severability . . . . . . . . . . . . . . . . . . . . . . 29
8.5 Assignment . . . . . . . . . . . . . . . . . . . . . . . 29
8.6 Counterparts . . . . . . . . . . . . . . . . . . . . . . 30
8.7 Amendment. . . . . . . . . . . . . . . . . . . . . . . . 30
8.8 Extension; Waiver. . . . . . . . . . . . . . . . . . . . 30
8.9 Interpretation . . . . . . . . . . . . . . . . . . . . . 30
8.10 Confidentiality. . . . . . . . . . . . . . . . . . . . . 30
-iii-
{PAGE}
INDEX OF DEFINED TERMS
PAGE
Aboveground Storage Tank. . . . . . . . . . . . . . . . . . . . . . . 14
Acquisition Financing . . . . . . . . . . . . . . . . . . . . . . . . 18
Acquisition Transaction . . . . . . . . . . . . . . . . . . . . . . . 21
Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Break-up Fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Business Condition. . . . . . . . . . . . . . . . . . . . . . . . . . 6
Buyer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Charter Documents . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Citibank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Citibank L/C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Citibank L/C Agreement. . . . . . . . . . . . . . . . . . . . . . . . 3
Citibank Obligations. . . . . . . . . . . . . . . . . . . . . . . . . 3
Closing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Closing Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Code. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Company Financial Statements. . . . . . . . . . . . . . . . . . . . . 9
Company Required Statutory Approvals. . . . . . . . . . . . . . . . . 8
Company Shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Company Subsidiaries. . . . . . . . . . . . . . . . . . . . . . . . . 6
Company Voting Debt . . . . . . . . . . . . . . . . . . . . . . . . . 7
Company's Counsel . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Company's Counsel Obligations . . . . . . . . . . . . . . . . . . . . 5
Consent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Conversion Payment. . . . . . . . . . . . . . . . . . . . . . . . . . 2
Current Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . 9
DGCL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Effective Time. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Eligible Dissenting Shares. . . . . . . . . . . . . . . . . . . . . . 5
Environmental Laws. . . . . . . . . . . . . . . . . . . . . . . . . . 15
Environmental Site Assessment . . . . . . . . . . . . . . . . . . . . 15
ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Exclusivity Period Termination Date . . . . . . . . . . . . . . . . . 18
FCM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Fixed Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
FY 2000 Financial Statements. . . . . . . . . . . . . . . . . . . . . 9
GECC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
GECC Credit Agreement . . . . . . . . . . . . . . . . . . . . . . . . 3
GECC Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . 3
GECC L/Cs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Governmental Entity . . . . . . . . . . . . . . . . . . . . . . . . . 8
Hazardous Substances. . . . . . . . . . . . . . . . . . . . . . . . . 15
Income Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Incumbent CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Incumbent CEO Obligations . . . . . . . . . . . . . . . . . . . . . . 4
Incumbent Outside Directors . . . . . . . . . . . . . . . . . . . . . 4
Incumbent Outside Directors Obligations . . . . . . . . . . . . . . . 4
Incumbent Terminating Officers and Employees. . . . . . . . . . . . . 4
Intellectual Property Rights. . . . . . . . . . . . . . . . . . . . . 15
IRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Knowledge of the Company. . . . . . . . . . . . . . . . . . . . . . . 5
Leased Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Leased Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Leased Properties . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Licenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Material Adverse Effect . . . . . . . . . . . . . . . . . . . . . . . 9
Merger. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Merger Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Minimum Acquisition Financing Amount. . . . . . . . . . . . . . . . . 18
MTM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
multiemployer plan. . . . . . . . . . . . . . . . . . . . . . . . . . 12
Nesbitt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Owned Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Owned Premises. . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Owned Properties. . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Paying Agent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Paying Agent Agreement. . . . . . . . . . . . . . . . . . . . . . . . 2
Per Share Conversion Payment. . . . . . . . . . . . . . . . . . . . . 2
Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Plan of Reorganization. . . . . . . . . . . . . . . . . . . . . . . . 7
Proceeding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
prohibited transaction. . . . . . . . . . . . . . . . . . . . . . . . 11
Purchase Price. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
reasonable inquiry and investigation. . . . . . . . . . . . . . . . . 6
Return Periods. . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Salomon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Salomon Obligations . . . . . . . . . . . . . . . . . . . . . . . . . 3
-iv-
{PAGE}
Section 262 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
single-employer plan. . . . . . . . . . . . . . . . . . . . . . . . . 12
Sub . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Subsidiary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Surviving Corporation . . . . . . . . . . . . . . . . . . . . . . . . 1
Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Tax Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Terminating Officers and Employees Obligations. . . . . . . . . . . . 4
Termination Allowance Plans . . . . . . . . . . . . . . . . . . . . . 4
Warrants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
-ii-
{PAGE}
SCHEDULES AND EXHIBITS INDEX
NAME OF SCHEDULE
Schedule 1.5.1 Company Shareholders and Company Shares
Company Disclosure Schedule
NAME OF EXHIBIT
Exhibit 1.1 Form of Certificate of Merger
Exhibit 2.1.5 Company Financial Statements
Capitalized terms in the Schedules and Exhibits have the same meanings as
in the Merger Agreement, dated as of January 31, 2002, by and between Buyer, Sub
and the Company.
-ii-
{PAGE}
MERGER AGREEMENT
THIS MERGER AGREEMENT (this "AGREEMENT") is made effective as of January
31, 2002, by and among NEVORO GOLD CORPORATION, a Canadian federal corporation
("BUYER"), NEVORO GOLD USA INC., a Delaware corporation and wholly-owned
subsidiary of Buyer ("SUB"), and APOLLO GOLD, INC., a Delaware corporation (the
"COMPANY"). Buyer, Sub and the Company are sometimes referred to collectively
herein as the "PARTIES."
INTENDING TO BE LEGALLY BOUND, and in consideration of the premises and the
mutual representations, warranties, covenants and agreements contained herein,
Buyer, Sub and the Company hereby agree as follows:
ARTICLE I
THE MERGER
1.1 EFFECTIVE TIME OF THE MERGER. Subject to the provisions of this
Agreement, Sub will be merged with and into the Company (the "MERGER"). A
Certificate of Merger and any other required documents (collectively, the
"MERGER DOCUMENTS"), substantially in the form attached as Exhibit 1.1, shall be
duly prepared, executed, and acknowledged by the Company and Sub, and thereafter
delivered to the Secretary of State of Delaware for filing, as provided in the
Delaware General Corporation Law (the "DGCL"), as soon as practicable on or
after the Closing Date (as defined in Section 1.2). The Merger shall become
effective at such time as the Merger Documents have been filed with the
Secretary of State of Delaware or at such time thereafter as is provided in the
Merger Documents (the "EFFECTIVE TIME").
1.2 CLOSING. The closing of the Merger (the "Closing") will take place
at the offices of Preston Gates & Ellis LLP, Seattle, Washington at 10:00 A.M.,
local time, on March 29, 2002, or such earlier date as all conditions to Closing
set forth in Article VI have been met; provided, however, that if any of the
conditions which are set forth in Article VI of this Agreement have not been
satisfied (or waived) by said date, then the Closing shall take place on a
subsequent date, which shall be determined by the mutual agreement of Buyer and
the Company as soon as practicable after such date (the "CLOSING DATE").
1.3 EFFECTS OF THE MERGER. At the Effective Time: (i) Sub shall be
merged with and into the Company (the Company after the Merger is sometimes
referred to herein as the "SURVIVING CORPORATION"), (ii) the Certificate of
Incorporation of the Company shall be the Certificate of Incorporation of the
Surviving Corporation until duly amended, (iii) the Bylaws of the Company shall
be the Bylaws of the Surviving Corporation until duly amended, (iv) the
directors of Sub shall be the directors of the Surviving Corporation, (v) the
officers of Sub shall be the officers of the Surviving Corporation, (vi) the
issued and outstanding capital stock of Sub shall become the issued and
outstanding capital stock of the Surviving Corporation, and (vii) the Merger
shall, from and after the Effective Time, have all the effects provided by
applicable law.
1.4 PURCHASE PRICE. The parties have agreed on a purchase price of FIVE
HUNDRED THOUSAND AND NO HUNDREDTHS UNITED STATES DOLLARS ($500,000.00) (the
"PURCHASE PRICE"). The Purchase Price is not subject to adjustment.
{PAGE}
1.5 CONVERSION OF COMPANY SHARES
1.5.1 COMPANY SHARES. Each of the issued and outstanding Company
Shares (as defined in Section 2.1.2) other than Eligible Dissenting Shares (as
defined in Section 1.8) held by the persons listed on Schedule 1.5.1 (the
"COMPANY SHAREHOLDERS"), shall, as of the Effective Time, by virtue of the
Merger, be converted, without any action on the part of the holders thereof,
into the right to receive cash in the amount determined by dividing the
Purchase Price by the aggregate number of Company Shares issued and outstanding
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