Agreement and Plan of Merger (2000)Full Document 

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                          AGREEMENT AND PLAN OF MERGER

                                   dated as of

                               September 29, 2000

                                      among

                            SIMPSON INDUSTRIES, INC.

                         SIMMER ACQUISITION COMPANY LLC

                                       and

                         SIMMER ACQUISITION CORPORATION






   2




                                TABLE OF CONTENTS

Page ---- ARTICLE 1 DEFINITIONS..............................................................................................2 SECTION 1.01. Definitions......................................................................2 ARTICLE 2 THE MERGER...............................................................................................5 SECTION 2.01. The Merger......................................................................5 SECTION 2.02. The Effective Time..............................................................6 SECTION 2.03. Effect of the Merger............................................................6 SECTION 2.04. Effect on Capital Stock.........................................................6 SECTION 2.05. Payment for Shares..............................................................7 SECTION 2.06. Stock Options; Restricted Stock.................................................8 SECTION 2.07. Stock Transfer Books............................................................9 SECTION 2.08. No Further Ownership Rights in the Shares.......................................9 SECTION 2.09. Lost, Stolen or Destroyed Certificates..........................................9 SECTION 2.10. Further Action. ...............................................................9 ARTICLE 3 THE SURVIVING CORPORATION................................................................................9 SECTION 3.01. Articles of Incorporation.......................................................10 SECTION 3.02. Bylaws..........................................................................10 SECTION 3.03. Directors and Officers..........................................................10 ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE COMPANY...........................................................10 SECTION 4.01. Corporate Existence and Power...................................................10 SECTION 4.02. Corporate Authorization.........................................................10 SECTION 4.03. Governmental Authorization......................................................11 SECTION 4.04. Non-contravention...............................................................11 SECTION 4.05. Capitalization..................................................................12 SECTION 4.06. Subsidiaries....................................................................12 SECTION 4.07. SEC Filings.....................................................................13 SECTION 4.08. Financial Statements............................................................14 SECTION 4.09. Disclosure Documents............................................................14 SECTION 4.10. Absence of Certain Changes......................................................14 SECTION 4.11. No Undisclosed Material Liabilities.............................................16 SECTION 4.12. Compliance with Laws and Court Orders...........................................16 SECTION 4.13. Litigation......................................................................16
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Page ---- SECTION 4.14. Finders' Fees...................................................................16 SECTION 4.15. Taxes...........................................................................17 SECTION 4.16. Employee Benefit Plans..........................................................18 SECTION 4.17. Environmental Matters...........................................................20 SECTION 4.18. Antitakeover Statutes and Rights Agreement......................................20 SECTION 4.19. Opinion of Financial Advisor....................................................21 ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF PARENT................................................................21 SECTION 5.01. Corporate Existence and Power...................................................21 SECTION 5.02. Authorization...................................................................22 SECTION 5.03. Governmental Authorization......................................................22 SECTION 5.04. Non-contravention...............................................................22 SECTION 5.05. Disclosure Documents............................................................23 SECTION 5.06. Finders' Fees...................................................................23 SECTION 5.07. Financing.......................................................................23 ARTICLE 6 COVENANTS OF THE COMPANY................................................................................24 SECTION 6.01. Conduct of the Company..........................................................24 SECTION 6.02. Shareholder Meeting; Proxy Material.............................................27 SECTION 6.03. Access to Information...........................................................27 SECTION 6.04. No Solicitation.................................................................28 SECTION 6.05. State Takeover Laws.............................................................28 SECTION 6.06. Reports.........................................................................28 ARTICLE 7 COVENANTS OF PARENT.....................................................................................29 SECTION 7.01. Obligations of Merger Sub.......................................................29 SECTION 7.02. Voting of Shares................................................................29 SECTION 7.03. Director and Officer Liability..................................................29 SECTION 7.04. Employee Benefits after the Merger..............................................30 SECTION 7.05. Financing Arrangements..........................................................31 ARTICLE 8 COVENANTS OF PARENT AND THE COMPANY.....................................................................32 SECTION 8.01. Commercially Reasonable Efforts.................................................32 SECTION 8.02. Certain Filings.................................................................33 SECTION 8.03. Public Announcements............................................................33 SECTION 8.04. Confidentiality.................................................................33 SECTION 8.05. Notices of Certain Events.......................................................33
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Page ---- ARTICLE 9 CONDITIONS TO THE MERGER................................................................................34 SECTION 9.01. Conditions to Obligations of Each Party........................................34 SECTION 9.02. Conditions to Obligations of Parent and Merger Sub.............................35 SECTION 9.03. Conditions to Obligations of the Company.......................................35 ARTICLE 10 TERMINATION.............................................................................................36 SECTION 10.01. Termination....................................................................36 SECTION 10.02. Effect of Termination..........................................................37 ARTICLE 11 MISCELLANEOUS...........................................................................................37 SECTION 11.01. Notices........................................................................37 SECTION 11.02. Survival of Representations and Warranties.....................................38 SECTION 11.03. Amendments; No Waivers.........................................................38 SECTION 11.04. Expenses; Topping Fee..........................................................39 SECTION 11.05. Successors and Assigns.........................................................40 SECTION 11.06. Governing Law..................................................................40 SECTION 11.07. Jurisdiction...................................................................40 SECTION 11.08. WAIVER OF JURY TRIAL...........................................................40 SECTION 11.09. Counterparts; Effectiveness; Benefit...........................................40 SECTION 11.10. Entire Agreement...............................................................41 SECTION 11.11. Captions.......................................................................41 SECTION 11.12. Severability...................................................................41 SECTION 11.13. Specific Performance...........................................................41
-iii- 5 AGREEMENT AND PLAN OF MERGER AGREEMENT AND PLAN OF MERGER (the "AGREEMENT") dated as of September 29, 2000 among Simpson Industries, Inc, a Michigan corporation (the "COMPANY"), Simmer Acquisition Company LLC, a Delaware limited liability company ("PARENT"), and Simmer Acquisition Corporation, a Michigan corporation and a wholly owned subsidiary of Parent ("MERGER SUB"). BACKGROUND WHEREAS, the Boards of Directors of Merger Sub and the Company have each determined that it is advisable and in the best interests of their respective shareholders for the Company and Merger Sub to enter into a business combination upon the terms and subject to the conditions set forth herein; WHEREAS, the managers and members of Parent have determined that it is advisable and in the best interests of its members for the Company and Merger Sub to enter into a business combination upon the terms and subject to the conditions set forth herein; WHEREAS, in furtherance of such combination, the Boards of Directors of Merger Sub and the Company have each approved the merger of Merger Sub with and into the Company in accordance with the applicable provisions of the Michigan Business Corporation Act and upon the terms and subject to the conditions set forth herein, and the Board of Directors of the Company has resolved and agreed to recommend that holders of outstanding Shares (as defined herein), approve the Merger; WHEREAS, in furtherance of such combination, the members and managers
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