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Title:

Merger Agreement

Entities:

Date:

2000

Size:

Preview shows 17KB of 207KB total

Price:

$64

ID:

#993209

 

 

► M&A ► Merger Agreements

 

 

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MERGER AGREEMENT


AMONG


FIRST BANCORP

AND

CENTURY BANCORP, INC.









Dated as of October 19, 2000



--------------------------------------------------------------------------------



<PAGE> 2

TABLE OF CONTENTS

PAGE
----
ARTICLE I

DEFINED TERMS

1.1 Definitions...........................................................1

ARTICLE II

THE HOLDING COMPANY MERGER;

CONVERSION AND EXCHANGE OF COMPANY SHARES

2.1 The Holding Company Merger............................................9
2.2 Company Shares.......................................................10
2.3 Merger Consideration.................................................11
2.4 Election and Allocation Procedures...................................12
2.5 Closing Payment......................................................14
2.6 Exchange Procedures..................................................14
2.7 Dissenting Shares....................................................15
2.8 Company Stock Options................................................16

ARTICLE III

THE BANK MERGER;

CONVERSION AND EXCHANGE OF COMPANY BANK SHARES

3.1 The Bank Merger......................................................17
3.2 Company Bank Shares..................................................17

ARTICLE IV

THE CLOSING

4.1 Closing..............................................................17
4.2 Deliveries by the Company............................................18
4.3 Deliveries by the Buyer..............................................18

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

5.1 Organization, Standing and Power.....................................18
5.2 Authority; No Conflicts..............................................19
5.3 Capital Stock; Subsidiaries..........................................19
5.4 SEC Filings; Company Financial Statements............................20
5.5 Absence of Undisclosed Liabilities...................................21
5.6 Absence of Certain Changes or Events.................................21

i
<PAGE> 3

5.7 Tax Matters..........................................................21
5.8 Assets...............................................................22
5.9 Securities Portfolio and Investments.................................23
5.10 Environmental Matters................................................23
5.11 Compliance with Laws.................................................24
5.12 Labor Relations......................................................24
5.13 Employee Benefit Plans...............................................25
5.14 Material Contracts...................................................26
5.15 Legal Proceedings....................................................27
5.16 Reports..............................................................27
5.17 Registration Statement; Proxy Statement..............................27
5.18 Accounting, Tax, and Regulatory Matters..............................28
5.19 State Takeover Laws..................................................28
5.20 Charter Provisions...................................................28
5.21 Records..............................................................28
5.22 Derivatives..........................................................28
5.23 Certain Regulated Businesses.........................................28
5.24 Commissions..........................................................28

ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF THE BUYER

6.1 Organization.........................................................29
6.2 Authority; No Conflicts..............................................29
6.3 Buyer's Stock; Subsidiaries..........................................30
6.4 SEC Filings; Buyer Financial Statements..............................30
6.5 Absence of Undisclosed Liabilities...................................31
6.6 Absence of Certain Changes or Events.................................31
6.7 Tax Matters..........................................................31
6.8 Assets...............................................................32
6.9 Securities Portfolio and Investments.................................33
6.10 Environmental Matters................................................33
6.11 Compliance with Laws.................................................34
6.12 Labor Relations......................................................34
6.13 Employee Benefit Plans...............................................35
6.14 Material Contracts...................................................37
6.15 Legal Proceedings....................................................37
6.16 Reports..............................................................37
6.17 Registration Statement; Proxy Statement..............................38
6.18 Accounting, Tax, and Regulatory Matters..............................38
6.19 Derivatives..........................................................38
6.20 Certain Regulated Businesses.........................................38
6.21 Commissions..........................................................38

ARTICLE VII

COVENANTS

7.1 Covenants of the Company.............................................39
7.2 Covenants of the Buyer...............................................42

ii
<PAGE> 4

7.3 Covenants of All Parties to the Agreement............................45

ARTICLE VIII

DISCLOSURE OF ADDITIONAL INFORMATION

8.1 Access to Information................................................47
8.2 Access to Premises...................................................47
8.3 Environmental Survey.................................................47
8.4 Confidentiality......................................................47
8.5 Publicity............................................................48

ARTICLE IX

CONDITIONS TO CLOSING

9.1 Mutual Conditions....................................................48
9.2 Conditions to the Obligations of the Company.........................50
9.3 Conditions to the Obligations of the Buyer...........................51

ARTICLE X

TERMINATION

10.1 Termination..........................................................52
10.2 Procedure and Effect of Termination..................................53

ARTICLE XI

MISCELLANEOUS PROVISIONS

11.1 Expenses.............................................................54
11.2 Survival of Representations..........................................54
11.3 Amendment and Modification...........................................54
11.4 Waiver of Compliance; Consents.......................................54
11.5 Notices..............................................................54
11.6 Assignment...........................................................55
11.7 Separable Provisions.................................................55
11.8 Governing Law........................................................55
11.9 Counterparts.........................................................56
11.10 Interpretation.......................................................56
11.11 Entire Agreement.....................................................56

iii
<PAGE> 5

EXHIBITS

Exhibit A Form of Plan of Merger in respect of the Holding Company Merger
Exhibit B Form of Employment Agreement of James G. Hudson, Jr.
Exhibit C Form of Company Option Agreement


COMPANY'S DISCLOSURE SCHEDULE

Section 5.2 Authority; No Conflicts
Section 5.3 Subsidiaries
Section 5.5 Absence of Undisclosed Liabilities
Section 5.6 Absence of Certain Changes or Events
Section 5.7 Tax Matters
Section 5.9 Securities Portfolio and Investments
Section 5.11 Compliance with Laws
Section 5.13 Employee Benefit Plans
Section 5.14 Material Contracts
Section 5.19 State Takeover Laws
Section 5.24 Commissions


BUYER'S DISCLOSURE SCHEDULE

Section 6.3 Subsidiaries
Section 6.5 Absence of Undisclosed Liabilities
Section 6.6 Absence of Certain Changes or Events
Section 6.7 Tax Matters
Section 6.8 Assets
Section 6.9 Securities Portfolio and Investments
Section 6.13 Employee Benefit Plans
Section 6.14 Material Contracts
Section 6.22 Commissions


iv
<PAGE> 6

MERGER AGREEMENT


THIS MERGER AGREEMENT (this "AGREEMENT"), dated as of the 19th day of
October, 2000, is by and among:

FIRST BANCORP, a North Carolina corporation and a holding company
registered with the Board of Governors of the Federal Reserve System under the
Bank Holding Company Act of 1956, as amended, and a North Carolina bank holding
company (the "BUYER"); and

CENTURY BANCORP, INC., a North Carolina corporation and a holding
company registered with the Board of Governors of the Federal Reserve System
under the Bank Holding Company Act of 1956, as amended, and a North Carolina
bank holding company (the "COMPANY").

BACKGROUND STATEMENT

The Buyer and the Company desire to effect a merger pursuant to which
the Company will merge into the Buyer, with the Buyer being the surviving
corporation (the "HOLDING COMPANY MERGER"); and subsequent to the Holding
Company Merger, it is expected that the Buyer Bank and the Company Bank will
effect a merger pursuant to which the Company Bank will merge and combine into
the Buyer Bank, with the Buyer Bank being the surviving corporation (the "BANK
MERGER," and together with the Holding Company Merger, the "MERGERS"). In
consideration of the Holding Company Merger, the shareholders of the Company
will receive shares of common stock of the Buyer and/or cash. It is intended
that the Mergers qualify as tax-free reorganizations under Section 368 of the
Internal Revenue Code. The Mergers are expected to be accounted for under the
purchase method.

STATEMENT OF AGREEMENT

In consideration of the premises and the mutual representations,
warranties, covenants, agreements and conditions contained herein, the parties
hereto agree as follows:

ARTICLE I


DEFINED TERMS

1.1 DEFINITIONS. As used in this Agreement, the following terms have
the following meanings:

"AFFILIATE" means, with respect to any Person, each of the Persons that
directly or indirectly, through one or more intermediaries, owns or controls, or
is controlled by or under common control with, such Person. For the purpose of
this Agreement, "CONTROL" means the possession, directly or indirectly, of the
power to direct or cause the direction of management and policies, whether
through the ownership of voting securities, by contract or otherwise. Without
limiting the foregoing, as used with respect to the Company, the term
"AFFILIATES" includes its subsidiaries.


<PAGE> 7

"AGREEMENT" means this Merger Agreement.

"ASSETS" means all of the assets, properties, businesses and rights of
a Person of every kind, nature, character and description, whether real,
personal or mixed, tangible or intangible, accrued or contingent, whether or not
carried on any books and records of such Person, whether or not owned in such
Person's name and wherever located.

"AVERAGE CLOSING PRICE" has the meaning given to it in SECTION 10.1(F).

"BANK MERGER" has the meaning given to it in the Background Statement
hereof.

"BENEFIT PLANS" means all pension, retirement, profit-sharing, deferred
compensation, stock option, employee stock ownership, restricted stock,
severance pay, vacation, bonus, or other incentive plan, all other written
employee programs or agreements, all medical, vision, dental, or other health
plans, all life insurance plans, and all other employee benefit plans or fringe
benefit plans, including without limitation "employee benefit plans" as that
term is defined in Section 3(3) of ERISA maintained by, sponsored in whole or in
part by, or contributed to by, a Person or any of its subsidiaries for the
benefit of employees, retirees, dependents, spouses, directors, independent
contractors, or other beneficiaries and under which employees, retirees,
dependents, spouses, directors, independent contractors, or other beneficiaries
are eligible to participate.

"BUSINESS DAY" means any day excluding (a) Saturday, (b) Sunday and (c)
any day that shall be a legal holiday in the State of North Carolina.

"BUYER" has the meaning given to it in the introductory paragraph
hereof.

"BUYER BANK" means First Bank, a North Carolina bank and a wholly owned
subsidiary of the Buyer.

"BUYER CONTRACTS" has the meaning given to it in SECTION 6.14.

"BUYER ERISA AFFILIATE" has the meaning given to it in SECTION 6.13.

"BUYER FINANCIAL STATEMENTS" means, with respect to the Buyer and its
subsidiaries, the consolidated audited statements of income and stockholder's
equity and cash flows for the years ended December 31, 1999, 1998 and 1997 and
consolidated audited balance sheets as of December 31, 1999, 1998 and 1997, as
well as the interim unaudited consolidated statements of income and

 

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