Agreement and Plan of Merger (2006)Full Document 

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AGREEMENT AND PLAN OF MERGER

by and among

ENVIROSOURCE HOLDINGS LLC

EI ACQUISITION CO.,

ENVIROSOURCE, INC.,

THE PRINCIPAL COMPANY STOCKHOLDERS NAMED HEREIN,

THE STOCKHOLDER REPRESENTATIVE NAMED HEREIN,

and

WELLSPRING CAPITAL PARTNERS III, L.P.

 

Dated as of September 23, 2004


TABLE OF CONTENTS

 

         Page
ARTICLE I         THE MERGER   1

1.1

   The Merger   1

1.2

   Closing; Effective Time   2

1.3

   Effects of the Merger   2

1.4

   Further Assurances   3
ARTICLE II       EFFECT ON CAPITAL STOCK; SURRENDER OF CERTIFICATES AND PAYMENT   3

2.1

   Effect on Capital Stock   3

2.2

   Surrender of Stock Certificates and Payment   5

2.3

   Withholding Rights   7

2.4

   Lost, Stolen or Destroyed Certificates   7

2.5

   Dissenting Shares   8

2.6

   Payment of Indebtedness, SARs Payment and Transaction Expenses   8
ARTICLE III      REPRESENTATIONS AND WARRANTIES OF THE COMPANY   9

3.1

   Organization and Good Standing   9

3.2

   Capitalization   10

3.3

   Subsidiaries of the Company   10

3.4

   Authority and Enforceability   11

3.5

   No Conflict; Authorizations   12

3.6

   Financial Statements   13

3.7

   No Undisclosed Liabilities   13

3.8

   Accounts Receivable   13

3.9

   Taxes   14

3.10

   Compliance with Applicable Laws   19

3.11

   Authorizations   19

3.12

   Title to Personal Properties   20

3.13

   Condition of Tangible Assets   20

3.14

   Real Property   20

3.15

   Intellectual Property   21

3.16

   Absence of Certain Changes or Events   23


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3.17

   Material Contracts   25

3.18

   Litigation   27

3.19

   Employee Benefits   27

3.20

   Labor and Employment Matters   30

3.21

   Environmental   32

3.22

   Related Party Transactions   35

3.23

   Insurance   36

3.24

   Books and Records   36

3.25

   Brokers or Finders   36

3.26

   No Illegal Payments   36

3.27

   Suppliers and Customers   37

3.28

   Anti-takeover Statutes   37

3.29

   No Other Representations or Warranties; Schedules   37
ARTICLE IV       REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB   37

4.1

   Organization and Good Standing   37

4.2

   Authority and Enforceability   38

4.3

   No Conflicts; Authorizations   38

4.4

   Brokers or Finders   38

4.5

   Litigation   39

4.6

   Interim Operations of Parent and Merger Sub   39

4.7

   Financing   39
ARTICLE V         COVENANTS OF THE COMPANY OR THE PRINCIPAL COMPANY STOCKHOLDERS   39

5.1

   Conduct of Business   39

5.2

   Negative Covenants   40

5.3

   Access to Information; Confidentiality   42

5.4

   Resignations   43

5.5

   Consents   43

5.6

   Notification of Certain Matters   43

5.7

   Exclusivity   43

 

ii


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5.8

   Section 262 Notice; Section 228(e) Notice   44

5.9

   FIRPTA Certificate   44

5.10

   Termination of Contracts   44

5.11

   Waiver of Appraisal Rights   44

5.12

   Section 280G of the Code   44
ARTICLE VI       COVENANTS OF THE COMPANY, PARENT AND MERGER SUB   44

6.1

   Efforts; Regulatory Approvals   44

6.2

   Public Announcements   46

6.3

   Expenses   46

6.4

   Certain Actions   46

6.5

   Financing   46

6.6

   Employee Matters   46

6.7

   Directors’ and Officers’ Indemnification   47
ARTICLE VII      CONDITIONS TO MERGER   48

7.1

   Conditions to Each Party’s Obligation to Effect the Merger   48

7.2

   Conditions to Obligations of Parent and Merger Sub to Effect the Merger   49

7.3

   Conditions to Obligation of the Company to Effect the Merger   50
ARTICLE VIII     TERMINATION   50

8.1

   Termination   50

8.2

   Effect of Termination   51
ARTICLE IX       INDEMNIFICATION   52

9.1

   Survival   52

9.2

   Indemnification by the Principal Company Stockholders   52

9.3

   Indemnification by Parent   54

9.4

   Third Party Claims   55

9.5

   Non-Third Party Claims   58

9.6

   Effect of Investigation; Waiver   58

9.7

   Losses Net of Collateral Sources   59

9.8

   No Special or Punitive Damages   59

9.9

   Exclusive Remedy   59

 

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         Page
ARTICLE X       MISCELLANEOUS   60

10.1

   Guaranty   60

10.2

   Stockholder Representative   60

10.3

   Notices   64

10.4

   Amendments and Waivers   65

10.5

   Successors and Assigns   66

10.6

   Governing Law   66

10.7

   Arbitration   66

10.8

   Counterparts   67

10.9

   Third Party Beneficiaries   67

10.10

   Entire Agreement   67

10.11

   Captions   67

10.12

   Severability   67

10.13

   Specific Performance   68

10.14

   Transfer Taxes   68
ARTICLE XI      DEFINITIONS   68

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