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Title: |
Agreement and Plan of Merger |
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Date: |
2004 |
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$48 |
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#879971 |
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AGREEMENT AND PLAN OF MERGER
BY AND AMONG
CONSTELLATION BRANDS, INC.,
RMD ACQUISITION CORP.,
A WHOLLY-OWNED DIRECT SUBSIDIARY OF CONSTELLATION BRANDS, INC.,
AND
THE ROBERT MONDAVI CORPORATION
November 3, 2004
<PAGE>
TABLE OF CONTENTS
PAGE
ARTICLE I THE MERGER......................................................2
1.1 The Merger.........................................................2
1.2 Closing; Effective Time............................................2
1.3 Effects of the Merger..............................................2
1.4 Articles of Incorporation and Bylaws...............................2
1.5 Directors and Officers of the Surviving Corporation................2
1.6 Mondavi Shareholders' Meeting......................................3
1.7 Additional Actions.................................................3
ARTICLE II CONVERSION OF SECURITIES........................................4
2.1 Effect on Capital Stock............................................4
2.2 Surrender and Payment..............................................6
2.3 Treatment of Stock Options; Employee Stock Purchase Plan...........8
2.4 Adjustments to Prevent Dilution....................................9
ARTICLE III REPRESENTATIONS AND WARRANTIES OF CONSTELLATION
AND MERGER SUB..................................................9
3.1 Organization and Standing..........................................9
3.2 Corporate Power and Authority......................................9
3.3 Conflicts; Consents and Approval..................................10
3.4 Information Supplied..............................................11
3.5 Available Funds...................................................11
3.6 Merger Sub........................................................11
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF MONDAVI......................11
4.1 Organization and Standing.........................................11
4.2 Subsidiaries......................................................12
4.3 Corporate Power and Authority.....................................12
4.4 Capitalization of Mondavi.........................................12
4.5 Conflicts; Consents and Approvals.................................13
4.6 Brokerage and Finders' Fees; Expenses.............................14
4.7 Mondavi SEC Documents.............................................14
4.8 Undisclosed Liabilities...........................................16
4.9 Information Supplied..............................................16
4.10 Absence of Certain Changes or Events..............................16
4.11 Taxes.............................................................16
4.12 Intellectual Property.............................................17
4.13 Employee Benefit Plans............................................18
<PAGE>
4.14 Environmental Matters.............................................19
4.15 Compliance with Applicable Laws; Regulatory Matters...............20
4.16 Litigation........................................................20
4.17 Real Property.....................................................20
4.18 Inventory and Equipment...........................................20
4.19 Opinions of Financial Advisor.....................................21
4.20 Board Recommendation; Required Vote...............................21
4.21 State Takeover Statutes...........................................21
ARTICLE V COVENANTS OF THE PARTIES.......................................22
5.1 Mutual Covenants..................................................22
(a) Reasonable Best Efforts..................................22
(b) HSR Act..................................................22
(c) Public Announcements.....................................23
(d) Taxes....................................................23
(e) Notice of Certain Events.................................24
5.2 Covenants of Constellation........................................24
(a) Indemnification; Directors' and Officers' Insurance......24
(b) Employees and Employee Benefits..........................25
5.3 Covenants of Mondavi..............................................25
(a) Conduct of Mondavi's Operations..........................25
(b) Acquisition Proposals....................................28
(c) Third Party Standstill Agreements........................30
(d) Access...................................................31
(e) Subsequent Financial Statements..........................31
ARTICLE VI CONDITIONS TO THE MERGER.......................................31
6.1 Conditions to the Obligations of Each Party.......................31
6.2 Conditions to Obligations of Constellation and Merger Sub.........32
6.3 Conditions to Obligation of Mondavi...............................32
ARTICLE VII TERMINATION; FEES AND EXPENSES.................................33
7.1 Termination by Mutual Consent.....................................33
7.2 Termination by Either Constellation or Mondavi....................33
7.3 Termination by Mondavi............................................33
7.4 Termination by Constellation......................................34
7.5 Effect of Termination and Abandonment.............................34
7.6 Fees and Expenses.................................................34
ARTICLE VIII MISCELLANEOUS..................................................36
8.1 Non-Survival of Representations and Warranties; No Other
Representations and Warranties....................................36
8.2 Notices...........................................................36
8.3 Interpretation....................................................37
-ii-
<PAGE>
8.4 Counterparts......................................................37
8.5 Entire Agreement..................................................37
8.6 Third-Party Beneficiaries.........................................38
8.7 Governing Law.....................................................38
8.8 Consent to Jurisdiction; Venue....................................38
8.9 Specific Performance..............................................38
8.10 Assignment........................................................38
8.11 Amendment.........................................................39
8.12 Extension; Waiver.................................................39
8.13 Severability......................................................39
Exhibit A: Agreement of Merger
-iii-
<PAGE>
INDEX OF DEFINED TERMS
DEFINED TERM SECTION
------------ -------
Acquiror........................................................ 5.3(b)(viii)(B)
Acquisition Proposal............................................ 5.3(b)(viii)(A)
Action.......................................................... 4.14
Agreement....................................................... Preamble
Applicable Laws................................................. 2.2(d)
Appraisal Shares................................................ 2.1(d)
Approvals....................................................... 5.1(a)
Board........................................................... Recitals
California Secretary of State................................... 1.2
CGCL............................................................ 1.1
Certificates.................................................... 2.1(b)(ii)
Class A Certificate............................................. 2.1(b)(i)
Class B Certificate............................................. 2.1(b)(ii)
Class A Merger Consideration.................................... 2.1(b)(i)
Class B Merger Consideration.................................... 2.1(b)(ii)
Closing......................................................... 1.2
Closing Date.................................................... 1.2
Code............................................................ 2.2(g)
Commission...................................................... 1.6(b)
Confidentiality Agreement....................................... 5.3(d)
Constellation................................................... Preamble
Covered Proposal................................................ 7.6(a)(i)
Effective Time.................................................. 1.2
Environmental Laws.............................................. 4.14
Environmental Permit............................................ 4.14
ERISA........................................................... 4.13(a)
ERISA Affiliate................................................. 4.13(a)
ESPP............................................................ 2.3(c)
Exchange Act.................................................... 4.7(a)
Exchange Fund................................................... 2.2(a)
Foreign Antitrust Laws.......................................... 3.3(d)
GAAP............................................................ 4.7(a)
Governmental Authority.......................................... 3.3(d)
Hazardous Materials............................................. 4.14
HSR Act......................................................... 3.3(d)
Intellectual Property Right..................................... 4.12(a)(i)
Material Adverse Effect......................................... 8.3
Merger.......................................................... Recitals
Merger Agreement................................................ 1.2
Merger Consideration............................................ 2.1(b)(ii)
Merger Sub...................................................... Preamble
Mondavi......................................................... Preamble
Mondavi 10-K.................................................... 4.2
-iv-
<PAGE>
DEFINED TERM SECTION
------------ -------
Mondavi Articles................................................ 1.6(a)
Mondavi Benefit Plans........................................... 4.13(a)
Mondavi Board Recommendation.................................... 4.20
Mondavi Bylaws.................................................. 1.6(a)
Mondavi Class A Common Stock................................... Recitals
Mondavi Class B Common Stock................................... Recitals
Mondavi Common Stock............................................ Recitals
Mondavi Disclosure Schedule..................................... 4.4(c)
Mondavi Employees............................................... 5.2(b)(ii)x
Mondavi Intellectual Property Right............................. 4.12(a)(ii)
Mondavi Option.................................................. 2.3(a)
Mondavi Permits................................................. 4.15
Mondavi SEC Documents........................................... 4.7(a)
Mondavi Shareholders............................................ 1.6(a)
Mondavi Shareholders' Meeting................................... 1.6(a)
Mondavi Stock Unit Award........................................ 2.3(b)
Non-Transferred Employees....................................... 5.2(b)(ii)
Paying Agent.................................................... 2.2(a)
Permitted Liens................................................. 4.17
Person.......................................................... 5.3(b)(i)
Proxy Statement................................................. 1.6(b)
Related Party................................................... 5.3(a)(13)
Representatives................................................. 5.3(b)(i)
Section 1300.................................................... 2.1(b)(i)
Securities Act.................................................. 4.4(c)
Stock Plan Termination Date..................................... 2.3(c)
subsidiary...................................................... 8.3
Superior Proposal............................................... 5.3(b)(viii)(B)
Superior Proposal Notice........................................ 5.3(b)(iii)
Support Agreement............................................... Recitals
Surviving Corporation........................................... 1.1
Surviving Corporation Common Stock.............................. 2.1(a)
Tax Returns..................................................... 4.11(b)
Taxes........................................................... 4.11(c)
Termination Date................................................ 7.2
Termination Fee................................................. 7.6(a)
Waiting Period.................................................. 5.3(b)(iii)
-v-
<PAGE>
AGREEMENT AND PLAN OF MERGER
This Agreement and Plan of Merger (this "AGREEMENT") is made and
entered into as of the 3rd day of November, 2004, by and among Constellation
Brands, Inc., a Delaware corporation ("CONSTELLATION"), RMD Acquisition Corp., a
California corporation and a wholly-owned subsidiary of Constellation ("MERGER
SUB"), and The Robert Mondavi Corporation, a California corporation ("MONDAVI").
RECITALS
WHEREAS, Constellation and Mondavi desire that Constellation combine
its businesses with the businesses operated by Mondavi through the merger of
Merger Sub with and into Mondavi, with Mondavi as the surviving corporation (the
"MERGER"), pursuant to which (1) each share of Class A Common Stock of Mondavi,
without par value (the "MONDAVI CLASS A COMMON Stock") issued and outstanding at
the Effective Time (as defined in Section 1.2), other than the shares of Mondavi
Class A Common Stock owned by Constellation, Merger Sub or Mondavi (or any of
their respective direct or indirect wholly-owned subsidiaries (as defined in
Section 8.3)) and other than the Appraisal Shares (as defined in Section
2.1(d)), will be converted into the right to receive the Class A Merger
Consideration (as defined in Section 2.1(b)), and (2) each share of Class B
Common Stock of Mondavi, without par value (the "MONDAVI CLASS B COMMON STOCK,"
and together with the Mondavi Class A Common Stock, the "MONDAVI COMMON STOCK")
issued and outstanding at the Effective Time (as defined in Section 1.2), other
than the shares of Mondavi Class B Common Stock owned by Constellation, Merger
Sub or Mondavi (or any of their respective direct or indirect wholly-owned
subsidiaries (as defined in Section 8.3)) and other than the Appraisal Shares
(as defined in Section 2.1(d)), will be converted into the right to receive the
Class B Merger Consideration (as defined in Section 2.1(b)), all as more fully
provided in this Agreement; and
WHEREAS, concurrently with the execution of this Agreement, as a
condition and inducement to Constellation's willingness to enter into this
Agreement, Constellation and certain Mondavi Shareholders (as defined in Section
1.6(a)) are entering into a Support Agreement, of even date herewith, in respect
of shares of Mondavi Common Stock beneficially owned by such shareholders (the
"SUPPORT AGREEMENT"); and
WHEREAS, the Board of each of Merger Sub and Mondavi has
determined that the Merger upon the terms and subject to the conditions set
forth in this Agreement is just and reasonable to their respective
shareholders; and
WHEREAS, Constellation, Merger Sub and Mondavi desire to make
those representations, warranties, covenants and agreements specified herein
in connection with this Agreement.
NOW, THEREFORE, in consideration of the premises, and of the
representations, warranties, covenants and agreements contained herein,
Constellation, Merger Sub and Mondavi agree as follows:
<PAGE>
ARTICLE I
THE MERGER
1.1. THE MERGER. Upon the terms and subject to the conditions of this
Agreement, and in accordance with the provisions of the California General
Corporation Law (the "CGCL"), Merger Sub shall be merged with and into Mondavi
at the Effective Time. As a result of the Merger, the separate corporate
existence of Merger Sub shall cease and Mondavi shall continue its existence as
a wholly-owned subsidiary of Constellation under the laws of the State of
California and shall succeed to and assume all the rights and obligations of
Merger Sub in accordance with the CGCL. Mondavi, in its capacity as the
corporation surviving the Merger, is hereinafter sometimes referred to as the
"SURVIVING CORPORATION."
1.2. CLOSING; EFFECTIVE TIME. A closing (the "CLOSING") shall be held
at the offices of Wachtell, Lipton, Rosen & Katz, 51 West 52nd Street, New York,
N.Y. 10019, or such other place as the parties hereto may agree, as soon as
practicable following the date upon which all conditions set forth in Article VI
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