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PREAMBLE | 1 | |||||
ARTICLE 1 TRANSACTIONS AND TERMS OF MERGER | 2 | |||||
1.1 | Merger | 2 | ||||
1.2 | Time and Place of Closing | 2 | ||||
1.3 | Effective Time | 2 | ||||
1.4 | Restructure of Transaction | 2 | ||||
ARTICLE 2 TERMS OF MERGER | 3 | |||||
2.1 | Charter | 3 | ||||
2.2 | Bylaws | 3 | ||||
2.3 | Directors and Officers | 3 | ||||
2.4 | Consolidation of Banking Operations | 4 | ||||
ARTICLE 3 MANNER OF CONVERTING SHARES | 4 | |||||
3.1 | Conversion of Shares | 4 | ||||
3.2 | Anti-Dilution Provisions | 5 | ||||
3.3 | Fractional Shares | 5 | ||||
3.4 | Conversion of Stock Rights | 5 | ||||
ARTICLE 4 EXCHANGE OF SHARES | 7 | |||||
4.1 | Exchange Procedures | 7 | ||||
4.2 | Rights of Former BOE Stockholders | 8 | ||||
ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF BOE | 8 | |||||
5.1 | Organization, Standing, and Power | 8 | ||||
5.2 | Authority of BOE; No Breach By the Agreement | 9 | ||||
5.3 | Capital Stock | 10 | ||||
5.4 | BOE Subsidiaries | 10 | ||||
5.5 | Exchange Act Filings; Securities Offerings; Financial Statements | 11 | ||||
5.6 | Absence of Undisclosed Liabilities | 13 | ||||
5.7 | Absence of Certain Changes or Events | 13 | ||||
5.8 | Tax Matters | 14 | ||||
5.9 | Allowance for Possible Loan Losses; Loan and Investment Portfolio, etc. | 16 | ||||
5.10 | Assets | 17 | ||||
5.11 | Intellectual Property | 18 | ||||
5.12 | Environmental Matters | 18 | ||||
5.13 | Compliance with Laws | 19 | ||||
5.14 | Labor Relations | 21 | ||||
5.15 | Employee Benefit Plans | 22 | ||||
5.16 | Material Contracts | 26 | ||||
5.17 | Privacy of Customer Information | 27 | ||||
5.18 | Legal Proceedings | 27 | ||||
5.19 | Reports | 27 |
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5.20 | Books and Records | 28 | ||||
5.21 | Loans to Executive Officers and Directors | 28 | ||||
5.22 | Independence of Directors | 28 | ||||
5.23 | Tax and Regulatory Matters; Consents | 28 | ||||
5.24 | State Takeover Laws | 28 | ||||
5.25 | Stockholders’ Support Agreements | 29 | ||||
5.26 | Brokers and Finders; Opinion of Financial Advisor | 29 | ||||
5.27 | Board Recommendation | 29 | ||||
5.28 | Statements True and Correct | 29 | ||||
ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF CBAC | 30 | |||||
6.1 | Organization, Standing, and Power | 30 | ||||
6.2 | Authority; No Breach By the Agreement | 31 | ||||
6.3 | Capital Stock | 32 | ||||
6.4 | CBAC Subsidiaries | 32 | ||||
6.5 | Exchange Act Filings; Financial Statements | 32 | ||||
6.6 | Absence of Undisclosed Liabilities | 34 | ||||
6.7 | Absence of Certain Changes or Events | 34 | ||||
6.8 | Tax Matters | 34 | ||||
6.9 | Compliance with Laws | 36 | ||||
6.10 | Employment Benefit Plans | 37 | ||||
6.11 | Material Contracts | 41 | ||||
6.12 | Legal Proceedings | 42 | ||||
6.13 | Reports | 42 | ||||
6.14 | Brokers and Finders; Opinion of Financial Advisor | 42 | ||||
6.15 | Board Recommendation | 43 | ||||
6.16 | Statements True and Correct | 43 | ||||
6.17 | Tax and Regulatory Matters; Consents | 44 | ||||
ARTICLE 7 CONDUCT OF BUSINESS PENDING CONSUMMATION | 44 | |||||
7.1 | Affirmative Covenants of BOE | 44 | ||||
7.2 | Negative Covenants of the Parties | 44 | ||||
7.3 | Affirmative Covenants of CBAC | 47 | ||||
7.4 | Adverse Changes in Condition | 48 | ||||
7.5 | Reports | 48 | ||||
7.6 | Claims Against Trust Account | 48 | ||||
ARTICLE 8 ADDITIONAL AGREEMENTS | 49 | |||||
8.1 | Registration Statement; Joint Proxy Statement | 49 | ||||
8.2 | Stockholder Approvals | 50 | ||||
8.3 | Other Offers | 51 | ||||
8.4 | Consents of Regulatory Authorities | 52 | ||||
8.5 | Agreement as to Efforts to Consummate | 52 | ||||
8.6 | Investigation and Confidentiality | 53 | ||||
8.7 | Press Releases | 53 | ||||
8.8 | Charter Provisions | 54 | ||||
8.9 | Employee Benefits and Contracts | 54 |
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8.10 | Indemnification | 55 | ||||
8.11 | Employee Non-Solicitation | 57 | ||||
8.12 | Dividends | 57 | ||||
ARTICLE 9 CONDITIONS PRECEDENT TO OBLIGATIONS TO CONSUMMATE | 57 | |||||
9.1 | Conditions to Obligations of Each Party | 57 | ||||
9.2 | Conditions to Obligations of CBAC | 59 | ||||
9.3 | Conditions to Obligations of BOE | 60 | ||||
ARTICLE 10 TERMINATION | 61 | |||||
10.1 | Termination | 61 | ||||
10.2 | Effect of Termination | 64 | ||||
10.3 | Non-Survival of Representations and Covenants | 64 | ||||
ARTICLE 11 MISCELLANEOUS | 64 | |||||
11.1 | Definitions | 64 | ||||
11.2 | Expenses | 77 | ||||
11.3 | Brokers, Finders and Financial Advisors | 79 | ||||
11.4 | Entire Agreement | 79 | ||||
11.5 | Amendments | 79 | ||||
11.6 | Waivers | 79 | ||||
11.7 | Assignment | 80 | ||||
11.8 | Notices | 80 | ||||
11.9 | Governing Law | 81 | ||||
11.10 | Counterparts | 81 | ||||
11.11 | Captions; Articles and Sections | 82 | ||||
11.12 | Interpretations | 82 | ||||
11.13 | Enforcement of Agreement | 82 | ||||
11.14 | Severability | 82 | ||||
11.15 | No Third Party Beneficiaries | 82 | ||||
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Exhibit | Description | |
A | Certificate of Incorporation of the Surviving Corporation | |
B | Bylaws of the Surviving Corporation | |
C | Officers of the Surviving Corporation | |
D | Officers of the Surviving Bank | |
E | Form of Support Agreement | |
F-1 | Form of Employment Agreement of George M. Longest, Jr. | |
F-2 | Form of Employment Agreement of Bruce E. Thomas | |
G | Form of Retention Agreement of Alexander F. Dillard, Jr. | |
H | Form of Retention Agreement of Members of the Surviving Corporation’s Board of Directors | |
I | List of Affiliates | |
J | Form of Affiliate Agreement | |
K | Form of BOE’s Legal Opinion | |
L | Form of CBAC’s Legal Opinion |
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TRANSACTIONS AND TERMS OF MERGER
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TERMS OF MERGER
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MANNER OF CONVERTING SHARES
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EXCHANGE OF SHARES
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REPRESENTATIONS AND WARRANTIES OF BOE
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REPRESENTATIONS AND WARRANTIES OF CBAC
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CONDUCT OF BUSINESS PENDING CONSUMMATION
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ADDITIONAL AGREEMENTS
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CONDITIONS PRECEDENT TO OBLIGATIONS TO CONSUMMATE
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TERMINATION
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MISCELLANEOUS
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Term | Section | |||
Agreement | Introduction | |||
Allowance | 5.9(a) | |||
Bank | Preamble | |||
BHCA | 5.1 | |||
BOE | Introduction | |||
BOE Benefits Plans | 5.15(a) | |||
BOE Contracts | 5.16(a) | |||
BOE ERISA Plan | 5.15(a) | |||
BOE Exchange Act Reports | 5.5(a) | |||
BOE Rights | 3.5(a) | |||
CBAC | Introduction | |||
CBAC Benefit Plan | 6.10(a) | |||
CBAC Exchange Act Reports | 6.5(a) | |||
CBAC Contracts | 6.11 | |||
CBAC ERISA Plan | 6.10(a) | |||
CBAC Other Plan | 6.10(a) | |||
CERCLA | 11.1(a) | |||
Closing | 1.2 | |||
Claims | 7.6 | |||
Conversion Rights | 3.1(a) | |||
Customer Information | 5.17(a) | |||
DOL | 5.15(b) | |||
Effective Time | 1.3 | |||
Exchange Agent | 4.1(a) | |||
Exchange Ratio | 3.1(b) | |||
Excluded Shares | 3.1(b) | |||
GLB Act | 11.1(a) | |||
Indemnified Party | 8.10(a) | |||
IRS | 5.2(c) | |||
Maximum Amount | 8.10(b) | |||
Merger | Preamble | |||
Merger Consideration | 3.1(b) | |||
Other Plan | 5.15(a) | |||
RCRA | 11.1(a) | |||
Takeover Laws | 5.24 | |||
Tax Opinion | 9.2(f) | |||
TFC | Preamble | |||
TFC Agreement | Preamble | |||
WARN Act | 5.14(c) |
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CBAC: | Community Bankers Acquisition Corp. | |||
9912 Georgetown Pike, Suite D-203 | ||||
Great Falls, Virginia 22066 | ||||
Attention: Gary A. Simanson | ||||
Copy to Counsel: | Nelson Mullins Riley & Scarborough LLP | |||
Suite 900 | ||||
101 Constitution Avenue, N.W. | ||||
Washington, D.C. 20001 | ||||
Facsimile Number: (202) 712-2856 | ||||
Attention: Jonathan H. Talcott | ||||
and | ||||
Ellenoff Grossman & Schole LLP | ||||
1627 K Street, N.W., 10th Floor | ||||
Washington, D.C. 20006 | ||||
Facsimile Number: (240) 478-1640 | ||||
Attention: Kathleen L. Cerveny | ||||
BOE: | BOE Financial Services of Virginia, Inc. | |||
1325 Tappahannock Boulevard | ||||
Tappahannock, Virginia 22560 | ||||
Facsimile Number: (804) 443-9365 | ||||
Attention: George M. Longest, Jr. | ||||
Copy to Counsel: | LeClairRyan | |||
951 East Byrd Street, 8th Floor | ||||
Richmond, Virginia 23219 | ||||
Facsimile Number: (804) 783-2294 | ||||
Attention: George P. Whitley |
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COMMUNITY BANKERS ACQUISITION CORP. | ||||
By: | /s/ Gary A. Simanson | |||
Its: President | ||||
BOE FINANCIAL SERVICES OF VIRGINIA, INC. | ||||
By: | /s/ Alexander F. Dillard, Jr. | |||
Its: Chairman of the Board |
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CERTIFICATE OF INCORPORATION
OF
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9912 Georgetown Pike, Suite D-203
Great Falls, VA 22066
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BYLAWS
OF
OFFICES
MEETINGS OF STOCKHOLDERS
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BOARD OF DIRECTORS
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NOTICES
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OFFICERS
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STOCK
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GENERAL PROVISIONS
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INDEMNIFICATION
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Bruce B. Nolte | Chief Executive Officer* | |
George M. Longest, Jr. | President† | |
Bruce E. Thomas | Chief Financial Officer | |
Gary A. Simanson | Chief Strategic Officer |
* | Bruce B. Nolte shall serve as Chief Executive Officer through December 31, 2009. | |
† | Commencing on January 1, 2010, George M. Longest, Jr. shall serve as President and Chief Executive Officer. |
George M. Longest, Jr. | Chief Executive Officer | |
Bruce E. Thomas | Chief Financial Officer | |
Patrick J. Tewell | Chief Accounting Officer | |
M. Andrew McLean | President | |
William E, Saunders, Jr. | Chief Risk Officer | |
Richard C. Stonbraker | Chief Credit Officer | |
K. Wayne Aylor | Chief Lending Officer | |
Suzanne S. Reynolds | Officer in Charge of Human Resources |
SUPPORT AGREEMENT
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Community Bankers Acquisition Corp. | ||||
By: | ||||
Name: | ||||
Title: | ||||
BOEFinancial Services Of Virginia, Inc. | ||||
By: | ||||
Name: | ||||
Title: | ||||
“Shareholder” | ||||||||
Name: | ||||||||
Address: | ||||||||
Number of Shares Beneficially Owned and Capacity of Ownership: | ||||||||
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Community Bankers Acquisition Corp. | ||||
By: | ||||
Name: | ||||
Title: | ||||
Employee | ||||
George M. Longest, Jr. | ||||
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Community Bankers Acquisition Corp. | ||||
By: | ||||
Name: | ||||
Title: | ||||
Employee | ||||
Bruce E. Thomas | ||||
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To CBAC/Surviving Corporation: | Community Bankers Acquisition Corp. | |||||
9912 Georgetown Pike, Suite D-203 | ||||||
Great Falls, Virginia 22066 | ||||||
Facsimile Number (703) 759-0751 | ||||||
Attention: Gary A. Simanson | ||||||
To Director: | See signature page of this Agreement |
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Community Bankers Acquisition Corp. | ||||
By: | ||||
Name: | ||||
Title: | ||||
Director | ||||||
Name: | Alexander F. Dillard, Jr. | |||||
Address: | ||||||
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To CBAC/Surviving Corporation: | Community Bankers Acquisition Corp. 9912 Georgetown Pike, Suite D-203 | |||||
Great Falls, Virginia 22066 | ||||||
Facsimile Number (703) 759-0751 | ||||||
Attention: Gary A. Simanson | ||||||
To Director: | See signature page of this Agreement |
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Community Bankers Acquisition Corp. | ||||
By: | ||||
Name: | ||||
Title: | ||||
Director | ||||||
Name: | ||||||
Address: | ||||||
R. Tyler Bland, III
L. McCauley Chenault
L. Edelyn Dawson
Alexander F. Dillard, Jr.
George B. Elliott
Frances H. Ellis
Page Emerson Hughes, Jr.
George M. Longest, Jr.
Philip T. Minor
Bonnie S. Courtney
Suzanne S. Reynolds
William E. Saunders, Jr.
Bruce E. Thomas
Terrell D. Vaughan
9912 Georgetown Pike, Suite D-203
Great Falls, Virginia 22066
, 2007
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, 2007
Page 3
Very truly yours, | ||||
By: | ||||
Name: | ||||
Its: |
BOE FINANCIAL SERVICES OF VIRGINIA, INC. COUNSEL
COMMUNITY BANKERS ACQUISITION CORP. COUNSEL