Agreement and Plan of Merger (2007)Full Document 

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EXECUTION VERSION

AGREEMENT AND PLAN OF MERGER

by and between

SUNTRUST BANKS, INC.

and

GB&T BANCSHARES, INC.

DATED AS OF NOVEMBER 2, 2007



TABLE OF CONTENTS

 
   
  Page
ARTICLE I    THE MERGER   1
 
1.1

 

The Merger

 

1
  1.2   Effective Time   2
  1.3   Effects of the Merger   2
  1.4   Conversion of GB&T Common Stock   2
  1.5   Stock Options and Other Stock-Based Awards   2
  1.6   Tax Consequences   4
  1.7   Board of Directors; Officers   4
  1.8   Articles of Incorporation   4
  1.9   Bylaws   4

ARTICLE II    DELIVERY OF MERGER CONSIDERATION

 

4
 
2.1

 

Deposit of Merger Consideration

 

4
  2.2   Delivery of Merger Consideration   4

ARTICLE III    REPRESENTATIONS AND WARRANTIES OF GB&T

 

7
 
3.1

 

Corporate Organization

 

7
  3.2   Capitalization   7
  3.3   Authority; No Violation   9
  3.4   Consents and Approvals   9
  3.5   Reports; Regulatory Matters   10
  3.6   Financial Statements   11
  3.7   Broker's Fees   12
  3.8   Absence of Certain Changes or Events   12
  3.9   Legal Proceedings   13
  3.10   Taxes and Tax Returns   14
  3.11   Employee Matters   15
  3.12   Compliance with Applicable Law   18
  3.13   Certain Contracts   19
  3.14   Risk Management Instruments   19
  3.15   Investment Securities and Commodities   20
  3.16   Property   20
  3.17   Intellectual Property   21
  3.18   Environmental Liability   21
  3.19   Leases   21
  3.20   Securitizations   22
  3.21   Reorganization; Approvals   22
  3.22   Opinion   22
  3.23   GB&T Information   22
  3.24   State Takeover Law   22
  3.25   Loan Portfolio   22
  3.26   Administration of Fiduciary Accounts   23
  3.27   Internal Controls   23

ARTICLE IV    REPRESENTATIONS AND WARRANTIES OF SUNTRUST

 

24
 
4.1

 

Corporate Organization

 

24
  4.2   Capitalization   24

i


  4.3   Authority; No Violation   25
  4.4   Consents and Approvals   25
  4.5   Reports; Regulatory Matters   26
  4.6   Financial Statements   27
  4.7   Broker's Fees   28
  4.8   Absence of Certain Changes or Events   28
  4.9   Legal Proceedings   28
  4.10   Taxes and Tax Returns   28
  4.11   Compliance with Applicable Law   28
  4.12   Reorganization; Approvals   28
  4.13   SunTrust Information   29

ARTICLE V    COVENANTS RELATING TO CONDUCT OF BUSINESS

 

29
 
5.1

 

Conduct of GB&T's Business Before the Effective Time

 

29
  5.2   GB&T Forbearances   29
  5.3   SunTrust Covenants   32
  5.4   Loan Review   32

ARTICLE VI    ADDITIONAL AGREEMENTS

 

32
 
6.1

 

Regulatory Matters

 

32
  6.2   Access to Information; Confidentiality   33
  6.3   Shareholder Approval   34
  6.4   Affiliates   35
  6.5   NYSE Listing   35
  6.6   Employee Matters   35
  6.7   Indemnification; Directors' and Officers' Insurance   37
  6.8   Additional Agreements   38
  6.9   Advice of Changes   38
  6.10   No Solicitation   38
  6.11   Non-Compete Agreements   41
  6.12   Dividends   41
  6.13   Exemption from Liability Under Section 16(b)   41
  6.14   Procurement Contracts   41

ARTICLE VII    CONDITIONS PRECEDENT

 

41
 
7.1

 

Conditions to Each Party's Obligation to Effect the Merger

 

41
  7.2   Conditions to Obligations of SunTrust   42
  7.3   Conditions to Obligations of GB&T   43

ARTICLE VIII    TERMINATION AND AMENDMENT

 

43
 
8.1

 

Termination

 

43
  8.2   Effect of Termination   44
  8.3   Fees and Expenses   44
  8.4   Amendment   46
  8.5   Extension; Waiver   46

ARTICLE IX    GENERAL PROVISIONS

 

46
 
9.1

 

Closing

 

46
  9.2   Standard   46

ii


  9.3   Nonsurvival of Representations, Warranties and Agreements   47
  9.4   Notices   47
  9.5   Interpretation   47
  9.6   Counterparts   48
  9.7   Entire Agreement   48
  9.8   Governing Law; Jurisdiction   48
  9.9   Publicity   48
  9.10   Assignment; Third-Party Beneficiaries   48
  9.11   Enforcement of Agreement   49
  9.12   Severability   49

Exhibit A—Form of Affiliate Letter

Schedule A—List of Individuals for Voting Agreements

Schedule B—List of Individuals for Non-Compete Agreements

iii


Defined Term

  Section
1997 Plan   1.5(a)
2007 Plan   1.5(a)
Adjusted Option   1.5(c)
Agreement   Preamble
Alternative Proposal   6.10(a)
Alternative Transaction   6.10(a)
Assumed Stock-Based Award   1.5(e)
BHC Act   3.1(b)
Certificate   1.4(d)
Claim   6.7(a)
Closing   9.1
Closing Date   9.1
COBRA   6.6(c)
Code   Recitals
Confidentiality Agreement   6.2(c)
Covered Employees   6.6(a)
DBF   3.4
Derivative Transactions   3.14(a)
DPC Common Shares   1.4(b)
Effective Time   1.2
EGTRRA   3.11(c)
Environmental Laws   3.18
ERISA   3.11(a)
Exchange Act   3.5(c)
Exchange Agent   2.1
Exchange Agent Agreement   2.1
Exchange Fund   2.1
Exchange Ratio   1.4(c)
Expense Reimbursement   8.3(b)
FDIC   3.1(d)
Federal Reserve Board   3.4
Form S-4   3.4
GAAP   3.1(c)
GB&T   Preamble
GB&T Articles   3.1(b)
GB&T Benefit Plans   3.11(a)
GB&T Board   3.3(a)
GB&T Bylaws   3.1(b)
GB&T Capitalization Date   3.2(a)
GB&T Common Stock   1.4(b)
GB&T Contract   3.13(a)
GB&T Disclosure Schedule   Art. III
GB&T Insiders   6.13
GB&T Options   1.5(c)
GB&T Regulatory Agreement   3.5(b)
GB&T Requisite Regulatory Approvals   7.3(d)
GB&T SEC Reports   3.5(c)
GB&T Shareholder Meeting   6.3(a)
GB&T Stock-Based Award   1.5(e)

iv


GB&T Stock Plans   1.5(a)
GB&T Subsidiary   3.1(c)
GBCC   1.1(a)
Georgia Certificate of Merger   1.2
Governmental Entity   3.4
Holder   2.2(a)
HSR Act   3.4
Indemnified Parties   6.7(a)
Injunction   7.1(d)
Insurance Amount   6.7(c)
Intellectual Property   3.17
IRS   3.10(a)
knowledge   9.4
Leased Properties   3.16
Letter of Transmittal   2.2(a)
Liens   3.2(b)
Loan(s)   3.25(a)
Market Price   2.2(f)
Material Adverse Effect   3.8(a)
Materially Burdensome Regulatory Condition   6.1(b)
Merger   Recitals
Merger Consideration   1.4(c)
NYSE   2.2(f)
Notice Period   6.10(c)
Other Regulatory Approvals   3.4
Owned Properties   3.16
Permitted Encumbrances   3.16
Per Share Amount   1.4(c)
person   9.4
Policies, Practices and Procedures   3.15(b)
Property Lease   3.19
Proxy Statement   3.4
Public Proposal   8.3(b)
Real Property   3.16
Regulatory Agencies   3.5(a)
Sarbanes-Oxley Act   3.5(c)
SEC   3.4
Section 16 Information   6.13
Securities Act   3.2(a)
SERP   3.11(c)
Subsidiary   3.1(c)
SunTrust   Preamble
SunTrust Articles   4.1(b)
SunTrust Bylaws   4.1(b)
SunTrust Capitalization Date   4.2(a)
SunTrust Common Stock   1.4(a)
SunTrust Disclosure Schedule   Art. IV
SunTrust Preferred Stock   4.2(a)
SunTrust Regulatory Agreement   4.5(b)
SunTrust Requisite Regulatory Approvals   7.2(d)

v


SunTrust SEC Reports   4.5(c)
SunTrust Stock Plans   4.2(a)
SunTrust Subsidiary   3.1(c)
Superior Proposal   6.10(a)
Surviving Corporation   Recitals
Tax(es)   3.10(b)
Tax Return   3.10(c)
Termination Fee   8.3(b)
Trust Account Common Shares   1.4(b)
Voting Agreements   Recitals
Voting Debt   3.2(a)
WARN Act   6.6(c)

vi



AGREEMENT AND PLAN OF MERGER

        This AGREEMENT AND PLAN OF MERGER is dated as of November 2, 2007 (this "Agreement"), by and among GB&T BANCSHARES, INC., a Georgia corporation ("GB&T"), and SUNTRUST BANKS, INC. ("SunTrust"), a Georgia corporation.

W I T N E S S E T H:

        WHEREAS, the Boards of Directors of GB&T and SunTrust have determined that it is in the best interests of their respective companies and their shareholders to consummate the strategic business combination transaction provided for in this Agreement in which GB&T will, on the terms and subject to the conditions set forth in this Agreement, merge with and into SunTrust (the "Merger"), so that SunTrust is the surviving corporation in the Merger (sometimes referred to in such capacity as the "Surviving Corporation");

        WHEREAS, for federal income Tax purposes, it is intended that the Merger shall qualify as a reorganization under the provisions of Section 368(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and this Agreement is intended to be and is adopted as a "plan of reorganization" for purposes of Sections 354 and 361 of the Code and within the meaning of Treasury Regulation Section 1.368-2(g);

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