Stock Purchase Agreement (2007)Full Document 

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EXECUTION COPY

STOCK PURCHASE AGREEMENT

BY AND BETWEEN

GENWORTH FINANCIAL, INC.

AND

SUN LIFE FINANCIAL INC.

January 10, 2007


TABLE OF CONTENTS

 

            Page

ARTICLE I DEFINITIONS

   1

1.1.

     Affiliate.    2

1.2.

     Agreement.    2

1.3.

     Ancillary Agreements.    2

1.4.

     Applicable SAP.    2

1.5.

     Approval.    2

1.6.

     Baylor Litigation.    2

1.7.

     Books and Records.    2

1.8.

     Business Day.    3

1.9.

     Buyer.    3

1.10.

     Buyer Closing Certificate.    3

1.11.

     Buyer Indemnified Persons.    3

1.12.

     CA Benefits.    3

1.13.

     CA Benefits Stock.    3

1.14.

     Capital Stock.    3

1.15.

     Closing.    3

1.16.

     COBRA.    3

1.17.

     Code.    4

1.18.

     COLI Liabilities.    4

1.19.

     Confidential Information.    4

1.20.

     Contracts.    5

1.21.

     Damages.    5

1.22.

     DHI.    5

1.23.

     DHI Purchase Price.    5

1.24.

     DHI Stock.    5

1.25.

     Environmental Claim.    5

1.26.

     Environmental Laws.    6

1.27.

     ERISA.    6

1.28.

     GAAP.    6

1.29.

     GEGA.    6

1.30.

     GEGA Stock.    6

1.31.

     Genworth.    6

1.32.

     Genworth Closing Certificate.    7

1.33.

     Genworth Indemnified Persons.    7

1.34.

     GLHIC.    7

1.35.

     GLHIC Stock.    7

1.36.

     Governmental Authority.    7

1.37.

     Hazardous Material.    7

1.38.

     HSR Act.    7

1.39.

     Income Tax or Income Taxes.    7

1.40.

     Insurance Companies.    8

1.41.

     Intellectual Property.    8

1.42.

     IRS.    8

1.43.

     Knowledge of Genworth.    8

 

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1.44.

     Laws.    8

1.45.

     Liens.    8

1.46.

     Material Adverse Effect.    8

1.47.

     Multiemployer Plan.    9

1.48.

     Owned Intellectual Property.    9

1.49.

     Permits.    9

1.50.

     Permitted Liens.    9

1.51.

     Person.    9

1.52.

     PIC.    9

1.53.

     PIC Stock.    10

1.54.

     Post-Closing Tax Period.    10

1.55.

     Pre-Closing Tax Period.    10

1.56.

     Producers    10

1.57.

     Purchase Price.    10

1.58.

     Purchased Stock.    10

1.59.

     Regulated Companies.    10

1.60.

     Return.    10

1.61.

     Securities Act.    10

1.62.

     Service Providers.    11

1.63.

     Stock Sale Business.    11

1.64.

     Stock Sale Companies.    11

1.65.

     Subsidiary.    11

1.66.

     Tax or Taxes.    11

1.67.

     Tax Proceeding.    11

1.68.

     Tax Sharing Agreement.    11

1.69.

     Third Party Accountants.    12

1.70.

     Trademark License Agreement.    12

1.71.

     Transition Services Agreement.    12

1.72.

     WARN.    12

1.73.

     Windsor Sublease Amendment.    12

1.74.

     Other Terms.    12
ARTICLE II PURCHASE AND SALE OF STOCK    14

2.1.

     Transfer of Stock.    14

2.2.

     Resignations of Directors and Officers.    14

2.3.

     Closing Date.    15

2.4.

     Allocation of Purchase Price.    15

2.5.

     Second Closing.    15

2.6.

     Purchase Price Adjustment.    15
ARTICLE III REPRESENTATIONS AND WARRANTIES OF GENWORTH    18

3.1.

     Incorporation.    18

3.2.

     Corporate Status and Authority of the Stock Sale Companies.    19

3.3.

     No Conflicts; Consents and Approvals, etc.    20

3.4.

     Authorization.    20

3.5.

     Capital Stock of the Stock Sale Companies.    21

3.6.

     Financial Statements.    21

 

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3.7.

     Reserves.    22

3.8.

     Absence of Undisclosed Liabilities.    23

3.9.

     Absence of Changes.    24

3.10.

     Property; Assets.    26

3.11.

     Contracts.    27

3.12.

     Employee Benefits.    29

3.13.

     Employees; Labor Matters.    30

3.14.

     Technology and Intellectual Property.    32

3.15.

     Governmental Authorizations; Compliance with Law; Forms and Policies.    33

3.16.

     Litigation.    36

3.17.

     Brokers.    37

3.18.

     Insurance.    37

3.19.

     Environmental Matters.    37

3.20.

     Bank Accounts.    38

3.21.

     Regulatory Qualifications.    39

3.22.

     Investment Assets.    39

3.23.

     Investment Company.    39

3.24.

     Affiliate Transactions.    39

3.25.

     Phoenix Reinsurance Agreements.    40

3.26.

     Finite Insurance.    40

3.27.

     Internal Controls and Procedures.    41

3.28.

     Disclosure.    41
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE BUYER    41

4.1.

     Organization.    42

4.2.

     Authorization.    42

4.3.

     No Conflicts; Consents and Approvals, etc.    42

4.4.

     Purchase for Investment; Restricted Shares.    43

4.5.

     No Broker.    43

4.6.

     Financing.    43
ARTICLE V COVENANTS OF THE BUYER AND GENWORTH    43

5.1.

     Satisfaction of Closing Conditions.    43

5.2.

     Publicity.    43

5.3.

     Cooperation; Regulatory Filings; Other Consents.    44

5.4.

     Certain Notices.    46

5.5.

     Confidentiality and Non-Solicitation.    46

5.6.

     Investigations: Pre-Closing Access.    48

5.7.

     Operation in Ordinary Course.    49

5.8.

     Compliance with Law.    52

5.9.

     Intercompany Accounts.    52

5.10.

     Insurance.    52

5.11.

     Additional Information.    53

5.12.

     Transfers of Intellectual Property ; Use of Certain Owned Intellectual Property.    53

5.13.

     Ancillary Agreements.    54

5.14.

     Non-Competition.    54

5.15.

     Post-Closing Cooperation.    56

 

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5.16.

     COLI Liabilities.    57

5.17.

     Genworth Guarantees.    57

5.18.

     Facilities Sublease.    57
ARTICLE VI CONDITIONS PRECEDENT TO CLOSING    57

6.1.

     Conditions Precedent to Each Party’s Obligations.    57

6.2.

     Conditions Precedent to Obligations of the Buyer.    58

6.3.

     Conditions Precedent to Obligations of Genworth.    59

6.4.

     Conditions to Second Closing.    60
ARTICLE VII TAX MATTERS    60

7.1.

     Tax Representations.    60

7.2.

     Tax Returns.    62

7.3.

     Tax Payments.    63

7.4.

     Refunds.    64

7.5.

     Cooperation.    64

7.6.

     Tax Indemnification.    65

7.7.

     Section 338 Elections    68

7.8.

     Termination of Existing Tax Sharing Agreements.    69

7.9.

     Survival and Exclusivity.    70
ARTICLE VIII COVENANTS REGARDING EMPLOYEES    70

8.1.

     Employee Benefit Matters.    70
ARTICLE IX TERMINATION    72

9.1.

     Termination.    72

9.2.

     Effect of Termination.    72
ARTICLE X INDEMNIFICATION    73

10.1.

     Indemnification by Genworth.    73

10.2.

     Indemnification By Buyer.    74

10.3.

     Indemnification Procedures.    75

10.4.

     Insurance Proceeds.    76

10.5.

     After-Tax Calculation.    76

10.6.

     Treatment of Indemnification; Certain Reserves.    76

10.7.

     Survival of Representations and Warranties.    76

10.8.

     Exclusivity of Rights and Procedures.    77
ARTICLE XI MISCELLANEOUS    77

11.1.

     Entire Agreement.    77

11.2.

     Amendment.    77

11.3.

     Certain Limitations.    77

11.4.

     Extension; Waiver.    78

11.5.

     Expenses.    78

11.6.

     Bulk Sales Waiver.    78

11.7.

     Governing Law.    78

11.8.

     Assignment.    78

 

iv


11.9.

     Notices.    78

11.10.

     Counterparts; Headings.    79

11.11.

     Interpretation; Construction.    79

11.12.

     Severability.    80

11.13.

     No Reliance.    80

11.14.

     Retention of and Access to Records.    80

11.15.

     Cooperation.    81

11.16.

     Further Assurances.    81

11.17.

     Specific Performance.    81

11.18.

     Consent to Jurisdiction; Waiver of Jury Trial.    82

EXHIBITS*

 

Exhibit A    Form of Buyer Closing Certificate
Exhibit B    Form of Genworth Closing Certificate
Exhibit C    Form of Trademark License Agreement
Exhibit D    Form of Transition Services Agreement
Exhibit E    Form of Tax Sharing Agreements Release
Exhibit F    Form of Windsor Sublease Amendment

 

v


SCHEDULES*

 

Schedule 2.2      Resignations of Directors and Officers
Schedule 2.4      Allocation of Purchase Price
Schedule 3.2(a)      GLHIC: Corporate Status
Schedule 3.2(b)      GEGA: Corporate Status
Schedule 3.2(c)      CA Benefits: Corporate Status
Schedule 3.2(d)      DHI: Corporate Status
Schedule 3.2(e)      PIC: Corporate Status
Schedule 3.3(a)      Genworth Conflicts
Schedule 3.3(b)      Genworth Required Jurisdictions
Schedule 3.5      Capital Stock; Options
Schedule 3.6(c)      Deficiencies and Adjustments
Schedule 3.7(a)      Reserves: Statutory Practices and Policies
Schedule 3.7(b)      Reserves: GAAP Practices and Policies
Schedule 3.8      Undisclosed Liabilities
Schedule 3.9      Absence of Changes
Schedule 3.10      Properties; Assets; Leases
Schedule 3.11(a)      Contracts
Schedule 3.11(b)      Reinsurance Agreements
Schedule 3.12(b)      Employee Benefit Plans
Schedule 3.12(c)      IRS Determination Letters
Schedule 3.12(e)      Compensation Obligations
Schedule 3.13(a)      Employee Information
Schedule 3.13(e)      Labor Matters
Schedule 3.14(a)      Registered Intellectual Property and Common Law Trademarks
Schedule 3.14(b)      Material Computer Programs

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