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EXHIBIT 2
AGREEMENT AND PLAN OF MERGER
BY AND BETWEEN
FLORIDA BANKS, INC.
AND
FIRST NATIONAL BANK OF TAMPA
DATED AS OF MARCH 30, 1998
* The Registrant agrees to furnish supplementally to the Commission a copy of
any omitted Schedule or Exhibit upon request.
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TABLE OF CONTENTS
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PREAMBLE ..............................................................................1
ARTICLE 1 - TRANSACTIONS AND TERMS OF MERGER...........................................1
1.1 Merger...............................................................1
1.2 Time and Place of Closing............................................1
1.3 Effective Time.......................................................2
ARTICLE 2 - TERMS OF MERGER............................................................2
2.1 Charter..............................................................2
2.2 Bylaws...............................................................2
ARTICLE 3 - MANNER OF CONVERTING SHARES................................................2
3.1 Conversion of Shares.................................................2
3.2 Anti-Dilution Provisions............................................3
3.3 Fractional Shares....................................................3
3.4 Treatment of Options and Warrants....................................3
ARTICLE 4 - EXCHANGE OF SHARES.........................................................4
4.1 Exchange Procedures..................................................4
4.2 Rights of Former First National Shareholders.........................4
ARTICLE 5 - REPRESENTATIONS AND WARRANTIES OF FIRST NATIONAL...........................5
5.1 Organization, Standing, and Power....................................5
5.2 Authority; No Breach by Agreement....................................5
5.3 Capital Stock........................................................6
5.4 First National Subsidiaries..........................................6
5.5 Regulatory Filings; Financial Statements.............................6
5.6 Notes and Obligations. ..............................................7
5.7 Absence of Certain Changes or Events.................................7
5.8 Tax Matters..........................................................7
5.9 Assets...............................................................8
5.10 Environmental Matters................................................8
5.11 Compliance With Laws.................................................9
5.12 Labor Relations......................................................9
5.13 Employee Benefit Plans..............................................10
5.14 Material Contracts..................................................11
5.15 Legal Proceedings...................................................12
5.16 Reports.............................................................12
5.17 Statements True and Correct.........................................12
5.18 Accounting, Tax and Regulatory Matters..............................13
5.19 Articles of Association Provisions..................................13
5.20 Derivatives Contracts...............................................13
ARTICLE 6 - REPRESENTATIONS AND WARRANTIES OF FBI AND INTERIM.........................13
6.1 Organization, Standing, and Power...................................13
6.2 Authority; No Breach By Agreement...................................14
6.3 Capital Stock.......................................................14
6.4 FBI Subsidiaries....................................................15
6.5 Financial Statements................................................15
6.6 Absence of Certain Changes or Events................................15
6.7 Tax Matters.........................................................16
6.8 Compliance With Laws................................................16
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6.9 Assets..............................................................17
6.10 Legal Proceedings...................................................17
6.11 Reports.............................................................17
6.12 Statements True and Correct.........................................17
6.13 Accounting, Tax and Regulatory Matters..............................18
6.14 Environmental Matters...............................................18
6.15 Derivatives Contracts...............................................18
6.16 Outstanding First National Common Stock.............................18
ARTICLE 7 - CONDUCT OF BUSINESS PENDING CONSUMMATION..................................19
7.1 Affirmative Covenants of First National.............................19
7.2 Negative Covenants of First National................................19
7.3 Covenants of FBI....................................................21
7.4 Adverse Changes In Condition........................................21
7.5 Reports.............................................................21
ARTICLE 8 - ADDITIONAL AGREEMENTS.....................................................22
8.1 Registration Statement; Proxy Statement; Shareholder Approval.......22
8.2 Applications........................................................22
8.3 Agreement As To Efforts To Consummate...............................22
8.4 Access to Information; Confidentiality..............................22
8.5 Current Information.................................................23
8.6 Other Actions.......................................................24
8.7 Press Releases......................................................24
8.8 No Solicitation.....................................................24
8.9 Accounting and Tax Treatment........................................24
8.10 Articles of Association Provisions.....................................24
8.11 Agreement of Affiliates.............................................24
8.12 Employee Benefits and Contracts........................................25
8.14 Indemnification.......................................................25
ARTICLE 9 - CONDITIONS PRECEDENT TO OBLIGATIONS TO CONSUMMATE.........................26
9.1 Conditions to Obligations of Each Party.............................26
9.2 Conditions to Obligations of FBI....................................27
9.3 Conditions to Obligations of First National.........................28
ARTICLE 10 - TERMINATION..............................................................29
10.1 Termination.........................................................29
10.2 Effect of Termination...............................................30
10.3 Non-Survival of Representations and Covenants.......................32
ARTICLE 11 - MISCELLANEOUS............................................................32
11.1 Definitions.........................................................32
11.2 Expenses............................................................38
11.3 Brokers and Finders.................................................38
11.4 Entire Agreement....................................................38
11.5 Amendments..........................................................39
11.6 Obligations of FBI..................................................39
11.7 Waivers.............................................................39
11.8 Assignment..........................................................39
11.9 Notices.............................................................39
11.10 Governing Law; Arbitration..........................................40
11.11 Counterparts........................................................40
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11.12 Captions............................................................41
11.14 Enforcement of Agreement............................................41
LIST OF EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
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1. FORM OF AGREEMENT OF AFFILIATES OF FIRST NATIONAL (SECTION 8.12).
2. Form Opinion of Xxxxx & Xxxxxxxxx, P.A.
3. Form Opinion of Xxxxx, Xxxxxxxx & Xxxxxxx, LLP
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AGREEMENT AND PLAN OF MERGER
THIS AGREEMENT AND PLAN OF MERGER (this "Agreement") is made and
entered into as of March 30, 1998, by and between FLORIDA BANKS, INC. ("FBI"), a
Florida corporation having its principal office located in Jacksonville, Florida
to be joined in by Florida Interim Bank No. 1, N.A., a national bank to be
chartered under the laws of the United States and to become a wholly-owned
subsidiary of FBI ("Interim"); and FIRST NATIONAL BANK OF TAMPA ("First
National"), a national bank chartered under the laws of the United States having
its principal office located in Tampa, Florida.
PREAMBLE
The Boards of Directors of First National and FBI are of the opinion
that the acquisition described herein is in the best interests of the parties
and their respective shareholders. This Agreement provides for the acquisition
of First National by FBI pursuant to the merger of First National with and into
Interim (the "Merger"). At the effective time of such Merger, the outstanding
shares of the capital stock of First National shall be converted into the right
to receive shares of the common stock of FBI (except as provided herein). As a
result, shareholders of First National shall become shareholders of FBI. The
transactions described in this Agreement are subject to the approvals of the
shareholders of First National, the Board of Governors of the Federal Reserve
System, the Florida Department of Banking and Finance, the Office of the
Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the
satisfaction of certain other conditions described in this Agreement. It is the
intention of the parties to this Agreement that the Merger (as hereinafter
defined) for federal income tax purposes shall qualify as a "reorganization"
within the meaning of Section 368(a) of the Internal Revenue Code, and will be a
tax free exchange for the shareholders of First National except for cash
received.
Certain terms used in this Agreement are defined in Section 11.1 of
this Agreement.
NOW, THEREFORE, in consideration of the above and the mutual
warranties, representations, covenants, and agreements set forth herein, the
parties agree as follows:
ARTICLE 1
TRANSACTIONS AND TERMS OF MERGER
1.1 Merger. Subject to the terms and conditions of this Agreement,
at the Effective Time, First National shall be merged with and into Interim in
accordance with the provisions of the National Bank Act. The separate existence
of First National shall thereupon cease, and Interim, which shall be a wholly
owned subsidiary of FBI, shall be the Resulting Association resulting from the
Merger, shall have the name "Florida Bank, N.A.," and shall continue to be
governed by the National Bank Act. The Merger shall have the effects specified
in the National Bank Act. The Merger shall be consummated pursuant to the terms
of this Agreement, which has been approved and adopted by the respective Boards
of Directors of First National, FBI and Interim.
1.2 Time and Place of Closing. The closing of the transactions
contemplated by this Agreement (the "Closing") will be immediately prior to the
closing of FBI's public offering referred to Section 9.1(h) herein. The Closing
will take place at a time, place and date specified by the Parties as they,
acting through their chief executive officers or chief financial officers, may
mutually agree. In no event, however, will the Closing take place on or before
June 10, 1998, the date on which the outstanding Warrants to purchase First
National Common Stock expire.
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1.3 Effective Time. The Merger and other transactions contemplated
by this Agreement shall become effective on the date and at the time
certification of the Merger is received from the Comptroller of the Currency
(the "Effective Time"). Subject to the terms and conditions hereof, unless
otherwise mutually agreed upon in writing by each Party, the Parties shall use
their reasonable best efforts to cause the Effective Time to occur on the date
of Closing.
ARTICLE 2
TERMS OF MERGER
2.1 Charter. Pursuant to the Merger, the Articles of Association
of Interim in effect immediately prior to the Effective Time shall be the
Articles of Incorporation of the Resulting Association until otherwise amended
or repealed, except that the name of the Resulting Association shall be changed
to "Florida Bank, N.A."
2.2 Bylaws. The Bylaws of Interim in effect immediately prior to
the Effective Time shall be the Bylaws of the Resulting Association until
otherwise amended or repealed.
ARTICLE 3
MANNER OF CONVERTING SHARES
3.1 Conversion of Shares. Subject to the provisions of this
Article 3, at the Effective Time, by virtue of the Merger and without any action
on the part of FBI, Interim or First National, or the shareholders of any of the
foregoing, the shares of the constituent corporations shall be converted as
follows:
(a) Each share of common stock of the Resulting Association
issued and outstanding immediately prior to the Effective Time shall
remain outstanding and entirely issued to FBI.
(b) Each share of FBI Capital Stock issued and outstanding
immediately prior to the Effective Time shall remain issued and
outstanding from and after the Effective Time.
(c) Except for First National Common Stock issued and
outstanding immediately prior to the Effective Time as to which
dissenters' rights have been perfected and not withdrawn, and subject
to Section 3.4 relating to fractional shares, each share of First
National Common Stock issued and outstanding at the Effective Time
shall cease to be outstanding and shall be converted into and exchanged
for the number of shares of FBI Common Stock equal to the quotient
obtained by dividing 6.6586 by the initial public offering price per
share of FBI Common Stock as determined by FBI's underwriters in the
public offering referred to in Section 9.1(h), below, rounded to the
nearest third decimal point (the "Exchange Ratio"). Notwithstanding the
foregoing, in no event shall more than 2,065,000 shares of Common Stock
of First National be converted to FBI Common Stock.
(d) Notwithstanding Section 3.1(c) of this Agreement, First
National Common Stock issued and outstanding at the Effective Time
which is held by a holder who has not voted in favor of the Merger and
who has demanded payment of the fair cash value of such shares in
accordance with 12 U.S.C. ss. 215a ("Dissenting First National Shares")
shall not be converted into or represent the right to receive the FBI
Common Stock payable thereon pursuant to Section 3.1(c)
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of this Agreement, and shall be entitled only to such rights of
appraisal as are granted by 12 U.S.C. ss. 215a ("Dissent Provisions"),
unless and until such holder fails to perfect or effectively withdraws
or otherwise loses his right to appraisal. If after the Effective Time
any such holder fails to perfect or effectively withdraws or loses his
right to appraisal, such shares of First National Common Stock shall be
treated as if they had been converted at the Effective Time into the
right to receive the FBI Common Stock payable thereon pursuant to
Section 3.1(c) of this Agreement. First National shall give FBI prompt
notice upon receipt by First National of any written objection to the
Merger and such written demands for payment of the fair value of shares
of First National Common Stock, and the withdrawals of such demands,
and any other instruments provided to First National pursuant to the
Dissent Provisions (any shareholder duly making such demand being
hereinafter called a "Dissenting Shareholder"). Each Dissenting
Shareholder that becomes entitled, pursuant to the Dissent Provisions,
to payment for any shares of First National Common Stock held by such
Dissenting Shareholder shall receive such payment from FBI (but only
after the amount thereof shall have been agreed upon or at the times
and in the amounts required by the Dissent Provisions) and all of such
Dissenting Shareholders' shares of First National Common Stock shall be
canceled. First National shall not, except with the prior written
consent of FBI, voluntarily make any payment with respect to, or settle
or offer to settle, any demand for payment by any Dissenting
Shareholder.
3.2 Anti-Dilution Provisions. In the event FBI changes the number
of shares of FBI Common Stock issued and outstanding prior to the Effective Time
as a result of a stock split, stock dividend, recapitalization,
reclassification, or similar transaction with respect to such stock and the
record date therefor (in the case of a stock dividend) or the effective date
thereof (in the case of a stock split or similar recapitalization for which a
record date is not established) shall be prior to the Effective Time, the
Exchange Ratio shall be proportionately adjusted.
3.3 Fractional Shares. Notwithstanding any other provision of this
Agreement, each holder of shares of First National Common Stock exchanged
pursuant to the Merger who would otherwise have been entitled to receive a
fraction of a share of FBI Common Stock (after taking into account all
certificates delivered by such holder) shall receive, in lieu thereof, cash
(without interest) in an amount equal to such fractional part of a share of FBI
Common Stock multiplied by the market price of one share of FBI Common Stock at
the Effective Time. The market price of one share of FBI Common Stock at the
Effective Time shall be the initial public offering price of one share of FBI
Common Stock.
3.4 Treatment of Options and Warrants. At the Effective Time of
the Merger, all rights with respect to First National Common Stock issuable
pursuant to the exercise of options to purchase First National Common Stock (the
"First National Options") granted by First National pursuant to stock option
plans or other agreements of First National, which First National Options as of
the date hereof are listed and described in Section 5.3 and which First National
Options are outstanding at the Effective Time of the Merger, whether or not such
First National Options are then exercisable, shall be cancelled without the
holders thereof being entitled to receive any payment or consideration therefor.
Such holder of First National Options so surrendered shall execute a
cancellation agreement pursuant to which the rights held by such holder shall be
surrendered and the First National Options held by such holder shall be
cancelled and shall be of no further force or effect.
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ARTICLE 4
EXCHANGE OF SHARES
4.1 Exchange Procedures. At the Effective Time, FBI shall deposit
or shall cause to be deposited with the exchange agent selected by FBI and
agreed to by First National (the "Exchange Agent") certificates evidencing
shares of FBI Common Stock in such amount necessary to provide all consideration
required to be exchanged by FBI for First National Common Stock pursuant to the
terms of this Agreement. Within 15 business days after the Effective Time, FBI
shall cause the Exchange Agent to mail to the former shareholders of First
National appropriate transmittal materials (which shall specify that delivery
shall be effected, and risk of loss and title to the certificates theretofore
representing shares of First National Common Stock shall pass, only upon proper
delivery of such certificates to the Exchange Agent). After the Effective Time,
each holder of shares of First National Common Stock issued and outstanding at
the Effective Time shall surrender the certificate or certificates representing
such shares to the Exchange Agent and shall upon surrender thereof promptly
receive in exchange therefor the consideration provided in Section 3.1 of this
Agreement, together with all undelivered dividends or distributions in respect
of such shares (without interest thereon) pursuant to Section 4.2 of this
Agreement. To the extent required by Section 3.3 of this Agreement, each holder
of shares of First National Common Stock issued and outstanding at the Effective
Time also shall receive, upon surrender of the certificate or certificates
representing such shares, cash in lieu of any fractional share of FBI Common
Stock to which such holder may be otherwise entitled (without interest). FBI
shall not be obligated to deliver the consideration to which any former holder
of First National Common Stock is entitled as a result of the Merger until such
holder surrenders such holder's certificate or certificates representing the
shares of First National Common Stock for exchange as provided in this Section
4.1. The certificate or certificates of First National Common Stock so
surrendered shall be duly endorsed as the Exchange Agent may require. Any other
provision of this Agreement notwithstanding, neither FBI nor the Exchange Agent
shall be liable to a holder of First National Common Stock for any amounts paid
or property delivered in good faith to a public official pursuant to any
applicable abandoned property Law.
4.2 Rights of Former First National Shareholders. At the Effective
Time, the stock transfer books of First National shall be closed as to holders
of First National Common Stock immediately prior to the Effective Time and no
transfer of First National Common Stock by any such holder shall thereafter be
made or recognized. Until surrendered for exchange in accordance with the
provisions of Section 4.1 of this Agreement, each certificate theretofore
representing shares of First National Common Stock shall from and after the
Effective Time represent for all purposes only the right to receive the
consideration provided in Sections 3.1 and 3.3 of this Agreement in exchange
therefor, subject, however, to FBI's obligation to pay any dividends or make any
other distributions with a record date prior to the Effective Time which have
been declared or made by First National in respect of such shares of First
National Common Stock in accordance with the terms of this Agreement and which
remain unpaid at the Effective Time. Whenever a dividend or other distribution
is declared by FBI on the FBI Common Stock, the record date for which is at or
after the Effective Time, the declaration shall include dividends or other
distributions on all shares issuable pursuant to this Agreement, but beginning
30 days after the Effective Time no dividend or other distribution payable to
the holders of record of FBI Common Stock as of any time subsequent to the
Effective Time shall be delivered to the holder of any certificate representing
shares of First National Common Stock issued and outstanding at the Effective
Time until such holder surrenders such certificate for exchange as provided in
Section 4.1 of this Agreement. However, upon surrender of such First National
Common Stock certificate, both the FBI Common Stock certificate (together with
all such undelivered dividends or other distributions without interest) and any
undelivered dividends and cash payments to be paid for fractional share
interests (without interest) shall be delivered and paid with respect to each
share represented by such certificate. Any portion of the consideration
(including the proceeds
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of any investments thereof) which had been made payable to the Exchange Agent
pursuant to Section 4.1 of this Agreement that remain unclaimed by the
shareholders of First National for six (6) months after the Effective Time shall
be paid to FBI. Any shareholders of First National who have not theretofore
complied with this Article 4 shall thereafter look only to FBI for payment of
their shares of FBI Common Stock and cash in lieu of fractional shares and
unpaid dividends and distributions on the FBI Common Stock deliverable in
respect of each First National share of Common Stock such shareholder holds as
determined pursuant to this Agreement, in each case, without any interest
thereon.
ARTICLE 5
REPRESENTATIONS AND WARRANTIES OF FIRST NATIONAL
First National hereby represents and warrants to FBI as follows:
5.1 Organization, Standing, and Power. First National is a
national banking association duly organized, validly existing, and in good
standing under the laws of the United States, and has the corporate power and
authority to carry on its business as now conducted and to own, lease, and
operate its material Assets. First National is duly qualified or licensed to
transact business as a national bank as provided under the National Bank Act, as
amended, and is in good standing in each jurisdiction where the character of its
Assets or the nature or conduct of its business requires it to be so qualified
or licensed, except for such jurisdictions in which the failure to be so
qualified or licensed is not reasonably likely to have, individually or in the
aggregate, a Material Adverse Effect on First National.
5.2 Authority; No Breach by Agreement.
(a) First National has the corporate power and authority
necessary to execute and deliver this Agreement and, subject to the
approval and adoption of this Agreement by the shareholders of First
National, to perform its obligations under this Agreement and
consummate the transactions contemplated hereby. The execution,
delivery, and performance of this Agreement by First National and the
consummation by First National of the transactions contemplated herein,
including the Merger, have been duly and validly authorized by all
necessary corporate action in respect thereof on the part of First
National, subject to the approval of the OCC and the approval of this
Agreement by its shareholders as contemplated by Section 8.1 of this
Agreement. Subject to such requisite shareholder approval (and assuming
due authorization, execution and delivery by FBI and Interim), this
Agreement represents a legal, valid, and binding obligation of First
National, enforceable against First National in accordance with its
terms (except in all cases as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or
similar Laws affecting the enforcement of creditors' rights generally
and except that the availability of the equitable remedy of specific
performance or injunctive relief is subject to the discretion of the
court before which any proceeding may be brought). The First National
Board of Directors will have received from Xxxxxx Capital Management,
Inc. a letter dated on or about the date of the Proxy Statement to the
effect that, in the opinion of such firm, the Exchange Ratio is fair,
from a financial point of view, to the holders of First National Common
Stock.
(b) Neither the execution and delivery of this Agreement by
First National, nor the consummation by First National of the
transactions contemplated hereby, nor compliance by First National with
any of the provisions hereof, will (i) conflict with or result in a
breach of any provision of First National's Articles of Incorporation
or Bylaws, or, (ii) except as disclosed in Schedule 5.2(b), constitute
or result in a Default under, or require any Consent pursuant to, or
result in the creation of any Lien on any Asset of First National
under, any Contract or Permit
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of First National, where such Default or Lien, or any failure to obtain
such Consent, is reasonably likely to have, individually or in the
aggregate, a Material Adverse Effect on First National, or, (iii)
subject to receipt of the requisite Consents referred to in Section
9.1(b) of this Agreement, violate any Law or Order applicable to First
National or material Assets.
(c) Other than in connection or compliance with the provisions
of the Securities Laws, applicable state corporate and securities Laws,
and rules of the Nasdaq, and other than Consents required from
Regulatory Authorities, and other than notices to or filings with the
Internal Revenue Service or the Pension Benefit Guaranty Corporation
with respect to any employee benefit plans, and other than Consents,
filings, or notifications which, if not obtained or made, are not
reasonably likely to have, individually or in the aggregate, a Material
Adverse Effect on First National, no notice to, filing with, or Consent
of, any public body or authority is necessary for the consummation by
First National of the Merger and the other transactions contemplated in
this Agreement.
5.3 Capital Stock.
(a) The authorized capital stock of First National consists of
(i) 5,000,000 shares of First National Common Stock, of which 1,825,000
shares are issued and outstanding as of the date of this Agreement and
not more than 2,065,000 shares will be issued and outstanding at the
Effective Time, and (ii) zero shares of preferred stock will be issued
and outstanding. All of the issued and outstanding shares of capital
stock of First National are duly and validly issued and outstanding and
are fully paid and nonassessable under the National Bank Act (except
for the assessment contemplated by 12 U.S.C. ss. 55). None of the
outstanding shares of capital stock of First National has been issued
in violation of any preemptive rights. First National has reserved
300,000 shares of First National Common Stock for issuance under the
First National Stock Plans, pursuant to which options to purchase not
more than 240,000 shares of First National Common Stock are
outstanding. Warrants to purchase not more than 225,000 shares of First
National Common Stock are outstanding and expire on June 10, 1998.
(b) Except as set forth in Section 5.3(a) of this Agreement, or
as provided pursuant to the Stock Option Agreement, there are no shares
of capital stock or other equity securities of First National
outstanding and no outstanding Rights relating to the capital stock of
First National.
5.4 First National Subsidiaries. First National has no active or
inactive subsidiaries as of the date of this Agreement.
5.5 Regulatory Filings; Financial Statements. First National has
filed and made available to FBI copies of the First National Financial
Statements and all reports of any outside auditors, consultants or advisors to
First National. Each of the First National Financial Statements (including, in
each case, any related notes), including any First National Financial Statements
filed after the date of this Agreement until the Effective Time, was prepared in
accordance with GAAP applied on a consistent basis throughout the periods
involved (except as may be indicated in the notes to such financial statements),
and fairly present the consolidated financial position of First National and its
Subsidiaries at the respective dates and the consolidated results of its
operations and cash flows for the periods indicated, except that the unaudited
interim financial statements were or are subject to normal and recurring
year-end adjustments which were not or are not expected to be material in amount
and except for the absence of certain footnote information in the unaudited
interim financial statements.
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5.6 Notes and Obligations.
(a) Except as set forth in Schedule 5.6 or as provided in the
loss reserve described in subparagraph (b) below, without conducting
any independent investigation, First National is not aware of any facts
which would cause management of First National to believe that any
notes receivable or any other obligations owned by First National or
due to it, shown on the First National Financial Statements or any such
notes receivable and obligations on the date hereof and as of the
Effective Time have not been and will not be genuine, legal, valid and
collectible obligations of the respective makers thereof and are not
and will not be subject to any offset or counterclaim. Except as set
forth in subparagraph (b) below, all such notes and obligations are
evidenced by written agreements, true and correct copies of which will
be made available to FBI for examination prior to the Effective Time.
All such notes and obligations were entered into by First National in
the ordinary course of its business and in compliance with all
applicable laws and regulations, except as to any non-compliance which
has not and will not have a Material Adverse Effect on First National.
(b) First National has established a loss reserve on the First
National Financial Statements which is adequate to cover anticipated
losses which might result from such items as the insolvency or default
of borrowers or obligors on such loans or obligations, defects in the
notes or evidences of obligation (including losses of original notes or
instruments), offsets or counterclaims properly chargeable to such
reserve, or the availability of legal or equitable defenses which might
preclude or limit the ability of First National to enforce the note or
obligation, and the representations set forth in subparagraph (a) above
are qualified in their entirety by the aggregate of such loss reserves.
As of the Effective Time, the ratio of the loss reserve, as established
on such date in good faith by management of First National, to total
loans outstanding at such time, shall not be below 1.4% (except as
otherwise agreed to by First National and FBI).
5.7 Absence of Certain Changes or Events. Since December 31, 1997,
except as disclosed in Schedule 5.7, (i) there have been no events, changes, or
occurrences which have had, or are reasonably likely to have, individually or in
the aggregate, a Material Adverse Effect on First National, and (ii) First
National has not taken any action, or failed to take any action, prior to the
date of this Agreement, which action or failure, if taken after the date of this
Agreement, would represent or result in a material breach or violation of any of
the covenants and agreements of First National provided in Article 7 of this
Agreement.
5.8 Tax Matters.
(a) All Tax Returns required to be filed by or on behalf of
First National have been timely filed for periods ended on or before
December 31, 1996, and all Tax Returns filed are complete and accurate
in all material respects to the Knowledge of First National. All Taxes
shown on filed Tax Returns have been paid. There is no audit
examination, deficiency, or refund Litigation with respect to any Taxes
that is reasonably likely to result in a determination that would have,
individually or in the aggregate, a Material Adverse Effect on First
National, except as reserved against in the First National Financial
Statements delivered prior to the date of this Agreement or as
disclosed in Schedule 5.8(a). All Taxes and other Liabilities due with
respect to completed and settled examinations or concluded Litigation
have been paid.
(b) First National has not executed an extension or waiver of
any statute of limitations on the assessment or collection of any Tax
due that is currently in effect.
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(c) Adequate provision for any Taxes due or to become due for
First National for the period or periods through and including the date
of the First National Financial Statements has been made and is
reflected on the First National Financial Statements.
(d) Deferred Taxes of First National have been adequately
provided for in the First National Financial Statements.
(e) First National is in compliance with, and its records
contain all information and documents (including properly completed
Internal Revenue Service Forms W-9) necessary to comply with, all
applicable information reporting and Tax withholding requirements under
federal, state, and local Tax Laws, and such records identify with
specificity all accounts subject to backup withholding under Section
3406 of the Internal Revenue Code, except for such instances of
noncompliance and such omissions as are not reasonably likely to have,
individually or in the aggregate, a Material Adverse Effect on First
National.
(f) Except as disclosed in Schedule 5.8(f), First National has
not made any payments, is not obligated to make any payments, or is a
party to any contract, agreement, or other arrangement that could
obligate it to make any payments that would be disallowed as a
deduction under Section 280G or 162(m) of the Internal Revenue Code.
(g) There are no Liens with respect to Taxes upon any of the
Assets of First National.
(h) First National has not filed any consent under Section
341(f) of the Internal Revenue Code concerning collapsible corporation.
(i) All material elections with respect to Taxes affecting
First National as of the date of this Agreement have been or will be
timely made as set forth in Schedule 5.8. After the date hereof, other
than as set forth in Schedule 5.8(a) no election with respect to Taxes
will be made without the prior written consent of FBI, which consent
will not be unreasonably withheld.
5.9 Assets. Except as disclosed in Schedule 5.9, First National
has good and marketable title, free and clear of all Liens, to all of its
Assets. All tangible properties used in the business of First National are in
good condition, reasonable wear and tear excepted, and are usable in the
ordinary course of business consistent with First National's past practices. All
Assets which are material to First National's business that are held under
leases or subleases, are held under valid Contracts enforceable in accordance
with their respective terms (except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, or other Laws
affecting the enforcement of creditors' rights generally and except that the
availability of the equitable remedy of specific performance or injunctive
relief is subject to the discretion of the court before which any proceedings
may be brought), and each such Contract is in full force and effect. First
National currently maintains insurance in amounts, scope, and coverage as
disclosed in Schedule 5.9. First National has not received written notice from
any insurance carrier that (i) such insurance will be canceled or that coverage
thereunder will be reduced or eliminated, or (ii) premium costs with respect to
such policies of insurance will be substantially increased. Except as disclosed
in Schedule 5.9, there are presently no claims pending under such policies of
insurance and no notices have been given by First National under such policies.
The Assets of First National include all required assets, leases and Permits
necessary to operate its business as presently conducted.
5.10 Environmental Matters.
(a) To the Knowledge of First National, First National, its
Participation Facilities, and its Loan Properties are, and have been,
in compliance with all Environmental Laws, except for violations
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which are not reasonably likely to have, individually or in the
aggregate, a Material Adverse Effect on First National.
(b) Except as disclosed in Schedule 5.10(b), to the Knowledge
of First National, there is no Litigation pending or threatened before
any court, governmental agency, or authority or other forum in which
First National or any of its Loan Properties or Participation
Facilities has been or, with respect to threatened Litigation, may be
named as a defendant or potentially responsible party (i) for alleged
noncompliance (including by any predecessor) with any Environmental Law
or (ii) relating to the release into the environment of any Hazardous
Material, whether or not occurring at, on, under, or involving any of
its Loan Properties or Participation Facilities, except for such
Litigation pending or threatened that is not reasonably likely to have,
individually or in the aggregate, a Material Adverse Effect on First
National.
(c) To the Knowledge of First National, there is no reasonable
basis for any Litigation of a type described above in subsection (b),
except such as is not reasonably likely to have, individually or in the
aggregate, a Material Adverse Effect on First National.
(d) To the Knowledge of First National, there have been no
releases of Hazardous Material in, on, under, or affecting any
Participation Facility or Loan Property of First National, except such
as are not reasonably likely to have, individually or in the aggregate,
a Material Adverse Effect on First National.
5.11 Compliance With Laws. First National has in effect all Permits
necessary for it to own, lease, or operate its material Assets and to carry on
its business as now conducted, except for those Permits the absence of which are
not reasonably likely to have, individually or in the aggregate, a Material
Adverse Effect on First National, and there has occurred no Default under any
such Permit, other than Defaults which are not reasonably likely to have,
individually or in the aggregate, a Material Adverse Effect on First National.
(a) To the Knowledge of First National, it is not in violation
of any Laws, Orders, or Permits applicable to its business or employees
conducting its business, except for violations which are not reasonably
likely to have, individually or in the aggregate, a Material Adverse
Effect on First National; and
(b) First National has not received any written notification or
communication from any agency or department of federal, state, or local
government or any Regulatory Authority or the staff thereof (i)
asserting that First National is not in substantial compliance with any
of the Laws or Orders which such governmental authority or Regulatory
Authority enforces, where such noncompliance is reasonably likely to
have, individually or in the aggregate, a Material Adverse Effect on
First National, (ii) threatening to revoke any Permits, the revocation
of which is reasonably likely to have, individually or in the
aggregate, a Material Adverse Effect on First National , or (iii)
requiring First National to enter into or consent to the issuance of a
cease and desist order, formal agreement, directive, commitment, or
memorandum of understanding, or to adopt any Board resolution or
similar undertaking, which restricts materially the conduct of its
business, or in any manner relates to its capital adequacy, its credit
or reserve policies, its management, or the payment of dividends.
5.12 Labor Relations. First National is not the subject of any
Litigation asserting that it has committed an unfair labor practice (within the
meaning of the National Labor Relations Act or comparable state law) or seeking
to compel it to bargain with any labor organization as to wages or conditions of
employment, nor is there any strike or other labor dispute involving First
National, pending or, to the
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Knowledge of First National, threatened, nor is there any activity involving
First National's employees seeking to certify a collective bargaining unit or
engaging in any other organization activity.
5.13 Employee Benefit Plans.
(a) First National has disclosed in Schedule 5.13(a) and has
delivered or made available to FBI prior to the execution of this
Agreement, copies in each case of, all pension, retirement,
profit-sharing, deferred compensation, stock option, employee stock
ownership, severance pay, vacation, bonus, or other incentive plans,
all other written employee programs, arrangements, or agreements, all
medical, vision, dental, or other health plans, all life insurance
plans, and all other employee benefit plans or fringe benefit plans,
including "employee benefit plans" (as that term is defined in Section
3(3) of ERISA), currently adopted, maintained by, sponsored in whole or
in part by, or contributed to by First National for the benefit of
employees, retirees, dependents, spouses, directors, independent
contractors, or other beneficiaries and under which employees,
retirees, dependents, spouses, directors, independent contractors, or
other beneficiaries are eligible to participate (collectively, the
"First National Benefit Plans"). Any of the First National Benefit
Plans which is an "employee pension benefit plan" (as that term is
defined in Section 3(2) of ERISA), is referred to herein as a "First
National ERISA Plan." No First National Pension Plan is or has been a
multiemployer plan within the meaning of Section 3(37) of ERISA.
(b) All First National Benefit Plans are in compliance with the
applicable terms of ERISA, the Internal Revenue Code, and any other
applicable Laws the breach or violation of which are reasonably likely
to have, individually or in the aggregate, a Material Adverse Effect on
First National, and each First National ERISA Plan which is intended to
be qualified under Section 401(a) of the Internal Revenue Code has
received a favorable determination letter from the Internal Revenue
Service, and First National is not aware of any circumstances likely to
result in revocation of any such favorable determination letter. Except
as disclosed in Schedule 5.13(b), to the Knowledge of First National,
it has not engaged in a transaction with respect to any First National
Benefit Plan that, assuming the taxable period of such transaction
expired as of the date hereof, would subject it to a Tax imposed by
either Section 4975 of the Internal Revenue Code or Section 502(i) of
ERISA in amounts which are reasonably likely to have, individually or
in the aggregate, a Material Adverse Effect on First National.
(c) Except as disclosed in Schedule 5.13(c), no First National
Pension Plan has any "unfunded current liability" (as that term is
defined in Section 302[d][8][A] of ERISA) and the fair market value of
the assets of any such plan exceeds the plan's "benefit liabilities,"
as that term is defined in Section 4001(a)(16) of ERISA, when
determined under actuarial factors that would apply if the plan
terminated in accordance with all applicable legal requirements. Except
as disclosed in Schedule 5.13(c), since the date of the most recent
actuarial valuation, there has been (i) no material change in the
financial position of any First National Pension Plan, (ii) no change
in the actuarial assumptions with respect to any First National Pension
Plan, and (iii) no increase in benefits under any First National
Pension Plan as a result of plan amendments or changes in applicable
Law which is reasonably likely to have, individually or in the
aggregate, a Material Adverse Effect on First National or materially
adversely affect the funding status of any such plan. Neither any First
National Pension Plan nor any "single- employer plan," within the
meaning of Section 4001(a)(15) of ERISA, currently or formerly
maintained by First National, or the single-employer plan of any entity
which is considered one employer with First National under Section 4001
of ERISA or Section 414 of the Internal Revenue Code or Section 302 of
ERISA (whether or not waived) (an "ERISA Affiliate") has
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an "accumulated funding deficiency" within the meaning of Section 412
of the Internal Revenue Code or Section 302 of ERISA, which is
reasonably likely to have a Material Adverse Effect on First National.
First National has not provided, and is not required to provide,
security to an First National Pension Plan or to any single-employer
plan of an ERISA Affiliate pursuant to Section 401(a)(29) of the
Internal Revenue Code.
(d) Within the six-year period preceding the Effective Time, no
Liability under Subtitle C or D of Title IV of ERISA has been or is
expected to be incurred by First National with respect to any ongoing,
frozen, or terminated single-employer plan or the single-employer plan
of any ERISA Affiliate, which Liability is reasonably likely to have a
Material Adverse Effect on First National. First National has not
incurred any withdrawal Liability with respect to a multiemployer plan
under Subtitle B of Title IV of ERISA (regardless of whether based on
contributions of an ERISA Affiliate), which Liability is reasonably
likely to have a Material Adverse Effect on First National. No notice
of a "reportable event," within the meaning of Section 4043 of ERISA
for which the 30- day reporting requirement has not been waived, has
been required to be filed for any First National Pension Plan or by any
ERISA Affiliate within the 12-month period ending on the date hereof
(e) Except as disclosed in Schedule 5.13(e), First National has
no Liability for retiree health and life benefits under any of the
First National Benefit Plans and there are no restrictions on the
rights of First National to amend or terminate any such plan without
incurring any Liability thereunder, which Liability is reasonably
likely to have a Material Adverse Effect on First National.
(f) Neither the execution and delivery of this Agreement nor
the consummation of the transactions contemplated hereby will (i)
result in any payment (including severance, unemployment compensation,
golden parachute, or otherwise) becoming due to any director or any
employee of any First National under any First National Benefit Plan or
otherwise, (ii) increase any benefits otherwise payable under any First
National Benefit Plan, or (iii) result in any acceleration of the time
of payment or vesting of any such benefit, where such payment,
increase, or acceleration is reasonably likely to have, individually or
in the aggregate, a Material Adverse Effect on First National.
(g) The actuarial present values of all accrued deferred
compensation entitlements (including entitlements under any executive
compensation, supplemental retirement, or employment agreement) of
employees and former employees of First National and their respective
beneficiaries, other than entitlements accrued pursuant to funded
retirement plans subject to the provisions of Section 412 of the
Internal Revenue Code or Section 302 of ERISA, have been fully
reflected on the First National Financial Statements to the extent
required by and in accordance with GAAP.
5.14 Material Contracts. Except as disclosed in Schedule 5.14A,
First National is not a party to or subject to the following: (i) any
employment, severance, termination, consulting, or retirement Contract providing
for aggregate payments to any Person in any calendar year in excess of $50,000,
(ii) any Contract relating to the borrowing of money by First National or the
guarantee by First National of any such obligation exceeding $50,000 (other than
Contracts evidencing deposit liabilities, purchases of federal funds,
fully-secured repurchase agreements, and Federal Home Loan Bank advances of
depository institution Subsidiaries, trade payables, and Contracts relating to
borrowings or guarantees made in the ordinary course of business), and (iii) any
other Contract or amendment thereto as of the date of this Agreement not made in
the ordinary course of business to which First National is a party or by which
it is bound (together with all Contracts referred to in Sections 5.9 and 5.13(a)
of this Agreement, the "First National Contracts"). With respect to each First
National Contract and except as disclosed in Schedule 5.14B: (i) the Contract is
in full force and effect;
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(ii) First National is not in Default thereunder, other than Defaults which are
not reasonably likely to have, individually or in the aggregate, a Material
Adverse Effect on First National; (iii) First National has not repudiated or
waived any material provision of any such Contract; and (iv) no other party to
any such Contract is, to the Knowledge of First National, in Default in any
respect, other than Defaults which are not reasonably likely to have,
individually or in the aggregate, a Material Adverse Effect on First National,
or has repudiated or waived any material provision thereunder. Except for
Federal Home Loan Bank advances, all of the indebtedness of First National for
money borrowed is prepayable at any time by First National without penalty or
premium.
5.15 Legal Proceedings. Except as disclosed in Schedule 5.15A,
there is no Litigation instituted or pending, or, to the Knowledge of First
National, threatened (or unasserted but considered probable of assertion and
which if asserted would have at least a reasonable probability of an unfavorable
outcome) against First National, or against any Asset, employee benefit plan,
interest, or right of any of them, that is reasonably likely to have,
individually or in the aggregate, a Material Adverse Effect on First National,
nor are there any Orders of any Regulatory Authorities, other governmental
authorities, or arbitrators outstanding against First National Company, that are
reasonably likely to have, individually or in the aggregate, a Material Adverse
Effect on First National. Schedule 5.15B is a summary report of all Litigation
as of the date of this Agreement to which any First National Company is a party
and which names a First National as a defendant or cross-defendant and where the
estimated maximum exposure to be $10,000 or more.
5.16 Reports. For the three years ended December 31, 1997, 1996 and
1995, and since January 1, 1998, or the date of organization if later, First
National has timely filed and to the extent permitted by Law has made available
for FBI to review, all reports and statements, together with any amendments
required to be made with respect thereto, that it was required to file with any
Regulatory Authorities. As of their respective dates, each of such reports and
documents, including the financial statements, exhibits, and schedules thereto,
complied in all material respects with all applicable Laws. As of its respective
date, each such report and document did not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements made therein, in light of the circumstances
under which they were made, not misleading.
5.17 Statements True and Correct. None of the information supplied
or to be supplied by First National for inclusion in the Registration Statement
to be filed by FBI with the SEC will, when the Registration Statement becomes
effective, be false or misleading with respect to any material fact, or omit to
state any material fact necessary to make the statements therein not misleading.
None of the information supplied by First National for inclusion in the Proxy
Statement to be mailed to First National's shareholders in connection with the
Shareholders' Meeting, and any other documents to be filed by a First National
with any Regulatory Authority in connection with the transactions contemplated
hereby, will, at the respective time such documents are filed, and with respect
to the Proxy Statement, when first mailed to the shareholders of First National,
be false or misleading with respect to any material fact, or omit to state any
material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, or, in the case of the
Proxy Statement or any amendment thereof or supplement thereto, at the time of
the Shareholders' Meeting, be false or misleading with respect to any material
fact, or omit to state any material fact necessary to correct any statement in
any earlier communication with respect to the solicitation of any proxy for the
Shareholders' Meeting. All documents that First National is responsible for
filing with any Regulatory Authority in connection with the transactions
contemplated hereby will comply as to form in all material respects with the
provisions of applicable Law.
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5.18 Accounting, Tax and Regulatory Matters. To the knowledge of
First National, First National has not taken or agreed to take any action or has
any Knowledge of any fact or circumstance that is reasonably likely to (i)
prevent the transactions contemplated hereby, including the Merger, from
qualifying as a reorganization within the meaning of Section 368(a) of the
Internal Revenue Code, or (ii) materially impede or delay receipt of any
Consents of Regulatory Authorities referred to in Section 9.1(b) of this
Agreement or result in the imposition of a condition or restriction of the type
referred to in the last sentence of such Section.
5.19 Articles of Association Provisions. First National has taken
all action so that the entering into of this Agreement and the consummation of
the Merger and the other transactions contemplated by this Agreement do not and
will not result in any super-majority voting requirement or the grant of any
rights to any Person under the Articles of Association, Bylaws, or other
governing instruments of First National.
5.20 Derivatives Contracts. First National is not a party to nor
has it agreed to enter into an exchange-traded or over-the-counter swap,
forward, future, option, cap, floor, or collar financial contract, or any other
interest rate or foreign currency protection contract not included on its
balance sheet which is a financial derivative contract (including various
combinations thereof) (each a "Derivatives Contract").
ARTICLE 6
REPRESENTATIONS AND WARRANTIES OF FBI AND INTERIM
FBI hereby represents and warrants to First National, and Interim, when
formed, will represent and warrant to First National, as follows:
6.1 Organization, Standing, and Power.
(a) FBI is a corporation duly organized, validly existing, and
in active status under the Laws of the State of Florida, and has the
corporate power and authority to carry on its business as now conducted
and to own, lease, and operate its material Assets. FBI is in good
standing in the State of Florida which is where the character of its
Assets or the nature or conduct of its business requires it to be so
qualified or licensed except for such jurisdictions in which the
failure to be so qualified or licensed is not reasonably likely to
have, individually or in the aggregate, a Material Adverse Effect on
FBI.
(b) Interim will be a national bank organized under the
National Bank Act (as a wholly owned subsidiary of FBI), after the
execution of this Agreement and prior to the Effective Time and shall
have the corporate power and authority to carry on the business of
banking. Interim shall become duly qualified or licensed to transact
business as a foreign corporation, and shall maintain its corporate
status in good standing, in the States of the United States and foreign
jurisdictions where the character of the assets or the nature or
conduct of the business, to be purchased, received or operated by
Interim, shall require it to be so qualified or licensed, except for
such jurisdictions in which the failure to be so qualified or licensed
is not reasonably likely to have, individually or in the aggregate, a
Material Adverse Effect on Interim.
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6.2 Authority; No Breach By Agreement.
(a) FBI has, and upon its formation Interim will have, the
corporate power and authority necessary to execute, deliver, and
perform its obligations under this Agreement and to consummate the
transactions contemplated hereby. The execution, delivery, and
performance of this Agreement and the consummation of the transactions
contemplated herein, including the Merger, have been duly and validly
authorized by all necessary corporate action in respect thereof on the
part of FBI and will be duly and validly authorized by all necessary
corporate action in respect thereof by Interim upon its formation. This
Agreement represents a legal, valid, and binding obligation of FBI, and
shall become such an obligation of Interim upon its formation,
enforceable against FBI, and to become enforceable against Interim upon
its formation, in accordance with its terms (except in all cases as
such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, or similar Laws affecting the
enforcement of creditors' rights generally and except that the
availability of the equitable remedy of specific performance or
injunctive relief is subject to the discretion of the court before
which any proceeding may be brought).
(b) Neither the execution and delivery of this Agreement by
FBI, or, upon its formation, Interim, nor the consummation by FBI or
Interim of the transactions contemplated hereby, nor compliance by FBI
or Interim with any of the provisions hereof, will (i) conflict with or
result in a breach of any provision of the Articles of Incorporation or
Bylaws of FBI or, upon its formation, Interim, or (ii) constitute or
result in a Default under, or require any Consent pursuant to, or
result in the creation of any Lien on any Asset of any FBI Company or
Interim under, any Contract or Permit of any FBI Company or Interim,
where such Default or Lien, or any failure to obtain such Consent, is
reasonably likely to have, individually or in the aggregate, a Material
Adverse Effect on FBI or Interim, or, (iii) subject to receipt of the
requisite Consents referred to in Section 9.1(b) of this Agreement,
violate any Law or Order applicable to any FBI Company or, upon its
formation, Interim or any of their respective material Assets.
(c) Other than in connection or compliance with the provisions
of the Securities Laws, applicable state corporate and securities Laws,
and rules of Nasdaq, and other than Consents required from Regulatory
Authorities, and other than notices to or filings with the Internal
Revenue Service or the Pension Benefit Guaranty Corporation with
respect to any employee benefit plans, and other than Consents,
filings, or notifications which, if not obtained or made, are not
reasonably likely to have, individually or in the aggregate, a Material
Adverse Effect on FBI, Southwest and, upon its formation, Interim, no
notice to, filing with, or Consent of, any public body or authority is
necessary for the consummation by FBI, Southwest and Interim of the
Merger and the other transactions contemplated in this Agreement.
6.3 Capital Stock. The authorized capital stock of FBI consists of
9,000,000 shares of FBI Common Stock, of which 377,800 shares were issued and
outstanding as of the date of this Agreement and (ii) 1,000,000 shares of FBI
Preferred Stock, of which 60,600 shares were issued and outstanding as of the
date of this Agreement. All of the issued and outstanding shares of FBI Capital
Stock are authorized and validly issued, and all of the FBI Common Stock to be
issued in exchange for First National Common Stock upon consummation of the
Merger, will be authorized and reserved for issuance prior to the Effective Time
and, when issued in accordance with the terms of this Agreement, will be, duly
and validly issued and outstanding and fully paid and nonassessable under the
FBCA. None of the outstanding shares of FBI Capital Stock has been, and none of
the shares of FBI Common Stock to be issued in exchange for shares of First
National Common Stock upon consummation of the Merger will be, issued in
violation of any preemptive
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rights of the current or past shareholders of FBI. FBI will issue no additional
Common Stock or Preferred Stock until the Effective Time.
6.4 FBI Subsidiaries. Upon its formation, Interim will become
FBI's only Subsidiary. At the Effective Time First National will be merged with
and into Interim and Interim will be the Resulting Association. Except as
disclosed in Schedule 6.4, FBI owns all of the issued and outstanding shares of
capital stock of each FBI Subsidiary. No equity securities of any FBI Subsidiary
are or may become required to be issued (other than to another FBI Company) by
reason of any Rights, and there are no Contracts by which any FBI Subsidiary is
bound to issue (other than to another FBI Company) additional shares of its
capital stock or Rights or by which any FBI Company is or may be bound to
transfer any shares of the capital stock of any FBI Subsidiary (other than to
another FBI Company). There are no Contracts relating to the rights of any FBI
Company to vote or to dispose of any shares of the capital stock of any FBI
Subsidiary. All of the shares of capital stock of each FBI Subsidiary held by a
FBI Company are fully paid and nonassessable under the applicable corporation
Law of the jurisdiction in which such Subsidiary is incorporated or organized
(except, in the case of Subsidiaries that are national banks, for the assessment
contemplated by 12 U.S.C. ss. 55), and are owned by the FBI Company free and
clear of any Lien. Each FBI Subsidiary is either a bank or a corporation, and is
duly organized, validly existing, and (as to corporations) in good standing
under the Laws of the jurisdiction in which it is incorporated or organized, and
has the corporate power and authority necessary for it to own, lease, and
operate its Assets and to carry on its business as now conducted. Interim, when
formed, will be a national banking association formed under the laws of the
United States, and, through the Effective Time, shall be a wholly owned direct
subsidiary of FBI. Each FBI Subsidiary is duly qualified or licensed to transact
business as a foreign corporation and is in good standing in each jurisdiction
where the character of its Assets or the nature or conduct of its business
requires it to be so qualified or licensed, except for such jurisdictions in
which the failure to be so qualified or licensed is not reasonably likely to
have, individually or in the aggregate, a Material Adverse Effect on FBI. Each
FBI Subsidiary that is a depository institution is an "insured institution" as
defined in the Federal Deposit Insurance Act and applicable regulations
thereunder, and the deposits in which are insured by the Bank Insurance Fund or
the Savings Association Insurance Fund.
6.5 Financial Statements.
FBI has delivered to First National prior to the execution of
this Agreement copies of the FBI Financial Statements as of December 31, 1997.
FBI shall provide First National with its unaudited Financial Statements for the
stub period ending March 31, 1998, as soon as practicable after same become
available.
The FBI Financial Statements (as of the dates thereof): (i) are
in accordance with the books and records of FBI, which are complete and accurate
in all material respects and which have been maintained in accordance with good
business practices, and (ii) present fairly the financial position of FBI as of
December 31, 1997 in accordance with GAAP.
6.6 Absence of Certain Changes or Events. Since January 1, 1998,
except as disclosed in the FBI Financial Statements delivered prior to the date
of this Agreement, (i) there have been no events, changes or occurrences which
have had, or are reasonably likely to have, individually or in the aggregate, a
Material Adverse Effect on FBI, and (ii) the FBI Companies have not taken any
action, or failed to take any action, prior to the date of this Agreement, which
action or failure, if taken after the date of this Agreement, would represent or
result in a material breach or violation of any of the covenants and agreements
of FBI provided in Articles 7 or 8 of this Agreement.
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6.7 Tax Matters.
(a) As of the date of this Agreement, no federal, state, local
and foreign Tax Returns have been required to be filed by or on behalf
of the Company. There is no audit examination, deficiency, or refund
Litigation with respect to any Taxes that is reasonably likely to
result in a determination that would have, individually or in the
aggregate, a Material Adverse Effect on FBI, except as reserved against
in the FBI Financial Statements delivered prior to the date of this
Agreement. All Taxes and other liabilities due with respect to
completed and settled examinations or concluded Litigation have been
paid.
(b) Adequate provision for any Taxes due or to become due for
any of the FBI Companies for the period or periods through and
including the date of the respective FBI Financial Statements has been
made and is reflected on such FBI Financial Statements.
(c) Deferred Taxes of the FBI Companies have been adequately
provided for in the FBI Financial Statements.
(d) To the Knowledge of FBI, each of the FBI Companies is in
compliance with, and its records contain all information and documents
(including properly completed Internal Revenue Service Forms W-9)
necessary to comply with, all applicable information reporting and Tax
withholding requirements under federal, state, and local Tax Laws, and
such records identify with specificity all accounts subject to backup
withholding under Section 3406 of the Internal Revenue Code, except for
such instances of noncompliance and such omissions as are not
reasonably likely to have, individually or in the aggregate, a Material
Adverse Effect on FBI.
6.8 Compliance With Laws. Prior to the consummation of the
transactions contemplated by this Agreement FBI will become duly registered as a
bank holding company under the BHC Act. Each FBI Company has in effect all
Permits necessary for it to own, lease, or operate its material Assets and to
carry on its business as now conducted, except for those Permits the absence of
which are not reasonably likely to have, individually or in the aggregate, a
Material Adverse Effect on FBI. FBI is not presently in Default under or in
violation of any such Permit, other than Defaults which are not reasonably
likely to have, individually or in the aggregate, a Material Adverse Effect on
FBI. FBI:
(a) is not in violation of any Laws, Orders, or Permits
applicable to its business or employees conducting its business, except
for violations which are not reasonably likely to have, individually or
in the aggregate, a Material Adverse Effect on FBI; and
(b) has not received any notification or communication from any
agency or department of federal, state, or local government or any
Regulatory Authority or the staff thereof (i) asserting that FBI is not
in compliance with any of the Laws or Orders which such governmental
authority or Regulatory Authority enforces, where such noncompliance is
reasonably likely to have, individually or in the aggregate, a Material
Adverse Effect on FBI, (ii) threatening to revoke any Permits, the
revocation of which is reasonably likely to have, individually or in
the aggregate, a Material Adverse Effect on FBI, or (iii) requiring FBI
to enter into or consent to the issuance of a cease and desist order,
formal agreement, directive, commitment, or memorandum of
understanding, or to adopt any board resolution or similar undertaking,
which restricts materially the conduct of its business, or in any
manner relates to its capital adequacy, its credit or reserve policies,
its management or the payment of dividends.
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6.9 Assets. Except as disclosed in Schedule 6.9A, FBI has good and
marketable title, free and clear of all Liens (except for those Liens which are
not likely to have a Material Adverse Effect on FBI), to all of its respective
material Assets, reflected in FBI Financial Statements as being owned by FBI as
of the date hereof. All material tangible properties used in the business of FBI
are in good condition, reasonable wear and tear excepted, and are usable in the
ordinary course of business consistent with FBI's past practices. All Assets
which are material to FBI's business on a consolidated basis, held under leases
or subleases by FBI, are held under valid Contracts enforceable in accordance
with their respective terms (except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, or other Laws
affecting the enforcement of creditors' rights generally and except that the
availability of the equitable remedy of specific performance or injunctive
relief is subject to the discretion of the court before which any proceedings
may be brought), and each such Contract is in full force and effect. FBI
currently maintains insurance in amounts, scope, and coverage as disclosed in
Schedule 6.9B. FBI has not received written notice from any insurance carrier
that (i) such insurance will be canceled or that coverage thereunder will be
reduced or eliminated, or (ii) premium costs with respect to such policies of
insurance will be substantially increased. Except as disclosed in Schedule 6.9C,
to the Knowledge of FBI there are presently no occurrences giving rise to a
claim under such policies of insurance and no notices have been given by FBI
under such policies.
6.10 Legal Proceedings. There is no Litigation instituted or
pending, or, to the Knowledge of FBI, threatened (or unasserted but considered
probable of assertion and which if asserted would have at least a reasonable
probability of an unfavorable outcome) against FBI, or against any Asset,
interest, or right of any of them, that is reasonably likely to have,
individually or in the aggregate, a Material Adverse Effect on FBI, nor are
there any Orders of any Regulatory Authorities, other governmental authorities,
or arbitrators outstanding against FBI, that are reasonably likely to have,
individually or in the aggregate, a Material Adverse Effect on FBI.
6.11 Reports. Since its incorporation, FBI has filed all reports
and statements, together with any amendments required to be made with respect
thereto, that it was required to file with Regulatory Authorities (except, in
the case of state securities authorities, failures to file which are not
reasonably likely to have, individually or in the aggregate, a Material Adverse
Effect on FBI). As of their respective dates, each of such reports and
documents, including the financial statements, exhibits, and schedules thereto,
complied in all material respects with all applicable Laws. As of its respective
date, each such report and document did not, in all material respects, contain
any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements made therein,
in light of the circumstances under which they were made, not misleading.
6.12 Statements True and Correct. None of the information supplied
or to be supplied by FBI for inclusion in the Registration Statement to be filed
by FBI with the SEC, will, when the Registration Statement becomes effective, be
false or misleading with respect to any material fact, or omit to state any
material fact necessary to make the statements therein not misleading. None of
the information supplied or to be supplied by FBI for inclusion in the Proxy
Statement to be mailed to First National's shareholders in connection with the
Shareholders' Meeting, and any other documents to be filed by FBI or with the
SEC or any other Regulatory Authority in connection with the transactions
contemplated hereby, will, at the respective time such documents are filed, and
with respect to the Proxy Statement, when first mailed to the shareholders of
First National, be false or misleading with respect to any material fact, or
omit to state any material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, or, in
the case of the Proxy Statement or any amendment thereof or supplement thereto,
at the time of the Shareholders' Meeting, be false or misleading with respect to
any material fact, or omit to state any material fact necessary to correct any
statement in any earlier communication with respect to the
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solicitation of any proxy for the Shareholders' Meeting. All documents that FBI
is responsible for filing with any Regulatory Authority in connection with the
transactions contemplated hereby will comply as to form in all material respects
with the provisions of applicable Law.
6.13 Accounting, Tax and Regulatory Matters. FBI has not taken or
agreed to take any action or has any Knowledge of any fact or circumstance that
is reasonably likely to (i) prevent the transactions contemplated hereby,
including the Merger, from qualifying as a reorganization within the meaning of
Section 368(a)(2)(D) of the Internal Revenue Code, or (ii) materially impede or
delay receipt of any Consents referred to in Section 9.1(b) of this Agreement or
result in the imposition of a condition or restriction of the type referred to
in the last sentence of such Section.
6.14 Environmental Matters.
(a) To the Knowledge of FBI, except as disclosed in Schedule
6.14(a), FBI, its Participation Facilities, and its Loan Properties
are, and have been, in compliance with all Environmental Laws, except
for violations which are not reasonably likely to have, individually or
in the aggregate, a Material Adverse Effect on FBI.
(b) Except as disclosed in Schedule 6.14(b), there is no
Litigation pending, or, to the Knowledge of FBI, threatened before any
court, governmental agency, or authority or other forum in which any
FBI Company or any of its Loan Properties or Participation Facilities
(or any FBI Company in respect of any such Loan Property or
Participation Facility) has been or, with respect to threatened
Litigation, may be named as a defendant or potentially responsible
party (i) for alleged noncompliance (including by any predecessor) with
any Environmental Law or (ii) relating to the release into the
environment of any Hazardous Material, whether or not occurring at, on,
under, or involving any of its Loan Properties or Participation
Facilities, except for such Litigation pending or threatened that is
not reasonably likely to have, individually or in the aggregate, a
Material Adverse Effect on FBI.
(c) To the Knowledge of FBI, except as disclosed in Schedule
6.14(c), there is no reasonable basis for any Litigation of a type
described above in Section 6.14(b), except such as is not reasonably
likely to have, individually or in the aggregate, a Material Adverse
Effect on FBI.
(d) To the Knowledge of FBI, except as disclosed in Schedule
6.14(d), during the period of (i) FBI's ownership or operation of any
of their respective properties, (ii) FBI's participation in the
management of any Participation Facility, or (iii) FBI's holding a
security interest in a Loan Property, to the Knowledge of FBI there
have been no releases of Hazardous Material in, on, under, or affecting
any Participation Facility or Loan Property of FBI, except such as are
not reasonably likely to have, individually or in the aggregate, a
Material Adverse Effect on FBI.
6.15 Derivatives Contracts. FBI is not a party to or has agreed to
enter into a Derivatives Contract, except for those Derivatives Contracts.
6.16 Outstanding First National Common Stock. As of the date of
this Agreement, FBI does not beneficially own any shares of First National
Common Stock. During the term of this Agreement, FBI shall not purchase or
otherwise acquire beneficial ownership of any First National Common Stock except
pursuant to the terms of this Agreement.
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6.17 Material Contracts. All material Contracts to which FBI is a
party and which are required to be filed as exhibits to the Registration
Statement will be filed with the SEC in connection with the filing of the
Registration Statement and Proxy Statement.
ARTICLE 7
CONDUCT OF BUSINESS PENDING CONSUMMATION
7.1 Affirmative Covenants of First National. Unless the prior
written consent of FBI shall have been obtained, and except as otherwise
expressly contemplated herein, First National shall: (i) operate its business
only in the usual, regular, and ordinary course, (ii) use its reasonable best
efforts to preserve intact its business organization and Assets and maintain its
rights and franchises, (iii) use its reasonable best efforts to maintain its
current employee relationships, and (iv) take no action which would materially
adversely affect the ability of any Party to obtain any Consents required for
the transactions contemplated hereby without imposition of a condition or
restriction of the type referred to in the last sentence of Section 9.1(b) of
this Agreement, or materially adversely affect the ability of any Party to
perform its covenants and agreements under this Agreement.
7.2 Negative Covenants of First National. From the date of this
Agreement until the earlier of the Effective Time or the termination of this
Agreement, First National covenants and agrees that it will not do or agree or
commit to do, any of the following without the prior written consent of the
chief executive officer of FBI:
(a) amend the Articles of Incorporation, Bylaws, or other
governing instruments of First National or, except as expressly
contemplated by this Agreement; or
(b) incur any additional debt obligation or other obligation
for borrowed money in excess of an aggregate of $50,000 except in the
ordinary course of the business of First National consistent with past
practices (it being understood and agreed that the incurrence of
indebtedness in the ordinary course of business shall include, without
limitation, creation of deposit liabilities, purchases of federal
funds, advances from the Federal Reserve Bank or Federal Home Loan
Bank, and entry into repurchase agreements fully secured by U.S.
government or agency securities), or impose, or suffer the imposition,
on any Asset of First National of any Lien or permit any such Lien to
exist (other than in connection with deposits, repurchase agreements,
bankers acceptances, "treasury tax and loan" accounts established in
the ordinary course of business, the satisfaction of legal requirements
in the exercise of trust powers, and Liens in effect as of the date
hereof; or
(c) repurchase, redeem, or otherwise acquire or exchange (other
than exchanges in the ordinary course under employee benefit plans),
directly or indirectly, any shares, or any securities convertible into
any shares, of the capital stock of any First National Company, or
declare or pay any dividend or make any other distribution in respect
of First National's capital stock; or
(d) except for this Agreement, or pursuant to the exercise of
stock options outstanding as of the date hereof and pursuant to the
terms thereof in existence on the date hereof, or as disclosed in
Schedule 7.2(d), issue, sell, pledge, encumber, authorize the issuance
of, enter into any Contract to issue, sell, pledge, encumber, or
authorize the issuance of, or otherwise permit to become outstanding,
any additional shares of First National Common Stock, or any stock
appreciation rights,
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or any option, warrant, conversion, or other right to acquire any such
stock, or any security convertible into any such stock; or
(e) adjust, split, combine, reclassify or declare and pay any
dividend or other distribution on any capital stock of First National
or issue or authorize the issuance of any other securities in respect
of or in substitution for shares of First National Common Stock, or
sell, lease, mortgage, or otherwise dispose of or otherwise encumber
(x) any shares of capital stock of any First National, or (y) any Asset
other than in the ordinary course of business for reasonable and
adequate consideration; or
(f) except for purchases of United States Treasury securities
or United States Government agency securities, which in either case
have maturities of five years or less, purchase any securities or make
any material investment, either by purchase of stock or securities,
contributions to capital, Asset transfers, or purchase of any Assets,
in any Person, or otherwise acquire direct or indirect control over any
Person, other than in connection with (i) foreclosures in the ordinary
course of business, (ii) acquisitions of control by First National, in
its fiduciary capacity, or (iii) the creation of new wholly owned
Subsidiaries organized to conduct or continue activities otherwise
permitted by this Agreement; or
(g) grant any increase in compensation or benefits to the
officers or directors of First National, (provided, however, that First
National may increase the compensation of non-officer employees by not
more than 5% of such employees' annual compensation if such increase is
consistent with past practice); pay any severance or termination pay or
any bonus other than pursuant to written policies or written Contracts
in effect on the date of this Agreement and as disclosed in Schedule
7.2(g); enter into or amend any severance agreements with officers of
First National; or voluntarily accelerate the vesting of any stock
options or other stock-based compensation or employee benefits; or
(h) enter into or amend any employment Contract between First
National and any Person (unless such amendment is required by Law) that
First National does not have the unconditional right to terminate
without Liability (other than Liability for services already rendered),
at any time on or after the Effective Time; or
(i) adopt any new employee benefit plan of First National or
make any material change in or to any existing employee benefit plans
of First National other than any such change that is required by Law or
that, in the opinion of counsel, is necessary or advisable to maintain
the tax qualified status of any such plan; or
(j) make any significant change in any Tax or accounting
methods or systems of internal accounting controls, except as may be
appropriate to conform to changes in Tax Laws or regulatory accounting
requirements or GAAP; or
(k) commence any Litigation other than in accordance with past
practice or settle any Litigation involving any Liability of First
National for material money damages or restrictions upon the operations
of First National without first consulting with FBI; or
(l) except in the ordinary course of business, modify, amend,
or terminate any material Contract other than renewals without material
adverse change of terms, or waive, release, compromise, or assign any
material rights or claims; or
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(m) make any investment in excess of $50,000 either by purchase
of stock or securities, contributions to capital, property transfers,
or purchase of any property or assets of any other individual,
corporation or other entity other than a wholly owned Subsidiary
thereof; or
(n) sell, transfer, mortgage, encumber or otherwise dispose of
any of its material properties or assets to any individual, corporation
or other entity other than a direct or indirect wholly owned
Subsidiary, or cancel, release or assign any indebtedness to any such
Person or any claims held by any such Person, except in the ordinary
course of business consistent with past practice or pursuant to
contracts or agreements in force at the date of this Agreement.
7.3 Covenants of FBI. From the date of this Agreement until the
earlier of the Effective Time or the termination of this Agreement, FBI
covenants and agrees that it shall (i) continue to conduct its business and the
business of its Subsidiaries in a manner designed in its reasonable judgment, to
enhance the long-term value of the FBI Common Stock and the business prospects
of FBI, and (ii) take no action which would (a) materially adversely affect the
ability of any Party to obtain any Consents required for the transactions
contemplated hereby without imposition of a condition or restriction of the type
referred to in the last sentence of Section 9.1(b) of this Agreement, or (b)
materially adversely affect the ability of any Party to perform its covenants
and agreements under this Agreement; provided, that the foregoing shall not
prevent FBI from discontinuing or disposing of any of its Assets or business if
such action is, in the judgment of FBI, desirable in the conduct of the business
of FBI. FBI further covenants and agrees that it will not, without the prior
written consent of the Chairman and Chief Executive Officer of First National,
which consent shall not be unreasonably withheld, amend the Articles of
Incorporation or Bylaws of FBI, in each case in any manner adverse to the
holders of First National Common Stock.
7.4 Adverse Changes In Condition. Each Party agrees to give
written notice promptly to the other Party upon becoming aware of the occurrence
or impending occurrence of any event or circumstance relating to it which (i) is
reasonably likely to have, individually or in the aggregate, a Material Adverse
Effect on it or (ii) would cause or constitute a material breach of any of its
representations, warranties, or covenants contained herein, and to use its
reasonable best efforts to prevent or promptly to remedy the same.
7.5 Reports. First National, FBI and Interim shall file all
reports required to be filed by each of them with Regulatory Authorities between
the date of this Agreement and the Effective Time and shall deliver to each
other copies of all such reports promptly after the same are filed. If financial
statements are contained in any such reports filed with the SEC, such financial
statements will fairly present the consolidated financial position of the entity
filing such statements as of the dates indicated and the consolidated results of
operations, changes in shareholders' equity, and cash flows for the periods then
ended in accordance with GAAP (subject in the case of interim financial
statements to normal recurring year-end adjustments that are not material and
except for the absence of certain footnote information in the unaudited
financial statements). As of their respective dates, such reports filed with the
SEC will comply in all material respects with the Securities Laws and will not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading. Any financial statements contained in any other reports to another
Regulatory Authority shall be prepared in accordance with Laws applicable to
such reports.
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ARTICLE 8
ADDITIONAL AGREEMENTS
8.1 Registration Statement; Proxy Statement; Shareholder Approval.
As soon as practicable after execution of this Agreement (in no event later than
April 30, 1998), FBI shall file the Registration Statement with the SEC, and
shall use its reasonable best efforts to cause the Registration Statement to
become effective under the 1933 Act and take any action required to be taken
under the applicable state blue sky or securities Laws in connection with the
issuance of the shares of FBI Common Stock upon consummation of the Merger.
First National shall furnish all information concerning it and the holders of
its capital stock as FBI may reasonably request in connection with such action.
First National shall call a Shareholders' Meeting, to be held on a date that is
determined by the Parties to be a mutually desirable date, which date shall be
as soon as practicable after the Registration Statement is declared effective by
the SEC, for the purpose of voting upon approval of this Agreement and such
other related matters as it deems appropriate. In connection with the
Shareholders' Meeting, (i) First National shall prepare a Proxy Statement
relating to the Merger and mail such Proxy Statement to its shareholders, (ii)
the Parties shall furnish to each other all information concerning them that
they may reasonably request in connection with such Proxy Statement, (iii) the
Board of Directors of First National shall recommend (subject to compliance with
their fiduciary duties under applicable law as advised by counsel) to its
shareholders the approval of this Agreement, (iv) each member of the Board of
Directors of First National shall vote all First National Common Stock
beneficially owned by each in favor of the approval of this Agreement, and (v)
the Board of Directors and officers of First National shall (subject to
compliance with their fiduciary duties under applicable law as advised by
counsel) use their reasonable best efforts to obtain such shareholders'
approval.
8.2 Applications. FBI shall promptly prepare and file, and First
National shall cooperate in the preparation and, where appropriate, filing of,
applications with all Regulatory Authorities having jurisdiction over the
transactions contemplated by this Agreement seeking the requisite Consents
necessary to consummate the transactions contemplated by this Agreement and
thereafter use its reasonable best efforts to cause the Merger to be consummated
as expeditiously as possible.
8.3 Agreement As To Efforts To Consummate. Subject to the terms
and conditions of this Agreement, each Party agrees to use, and to cause its
Subsidiaries to use, its reasonable best efforts to take, or cause to be taken,
all actions, and to do, or cause to be done, all things necessary, proper, or
advisable under applicable Laws to consummate and make effective, as soon as
practicable after the date of this Agreement, the transactions contemplated by
this Agreement, including the use of their respective reasonable best efforts to
lift or rescind any Order adversely affecting its ability to consummate the
transactions contemplated herein and to cause to be satisfied the conditions
referred to in Article 9 of this Agreement; provided, that nothing herein shall
preclude either Party from exercising its rights under this Agreement. First
National, FBI and Interim shall use their reasonable best efforts to obtain all
Permits and Consents necessary or desirable for the consummation of the
transactions contemplated by this Agreement.
8.4 Access to Information; Confidentiality.
(a) From the date hereof to the Effective Time or termination
pursuant to Article 10 of this Agreement, upon reasonable notice and
subject to applicable Laws, FBI and First National shall afford each
other, and each other's accountants, counsel, and other
representatives, during normal working hours for the period of time
prior to the Effective Time, reasonable access to all of its and its
Subsidiaries' properties, books, contracts, commitments, and records
and, during such period, each
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shall furnish promptly to the other party (i) a copy of each report,
schedule, and other document filed or received by it or any of its
Subsidiaries during such period pursuant to the requirements of the
Securities Laws, (ii) a copy of all filings made with any Regulatory
Authorities or other governmental entities in connection with the
transactions contemplated by this Agreement and all written
communications received from such Regulatory Authorities and
governmental entities related thereto, and (iii) all other information
concerning its or its Subsidiaries' business, properties and personnel
as such other party may reasonably request, including reports of
condition filed with Regulatory Authorities. In this regard, without
limiting the generality of the foregoing, each of the parties hereto
shall notify the other parties hereto promptly upon the receipt by it
of any comments from the SEC, or its staff, and of any requests by the
SEC for amendments or supplements to the Registration Statement or the
Proxy Statement or for additional information and will supply the other
parties hereto with copies of all correspondence between it and its
representatives, on the one hand, and the SEC or the members of its
staff or any other government official, on the other hand, with respect
to the Registration Statement or the Proxy Statement. Each party hereto
shall, and shall cause its advisors and representatives to (x) conduct
its investigation in such a manner which will not unreasonably
interfere with the normal operations, customers or employee relations
of the other and shall be in accordance with procedures established by
the parties having the due regard for the foregoing, and (y) refrain
from using for any purposes other than as set forth in this Agreement,
and shall treat as confidential, all information obtained by each
hereunder or in connection herewith and not otherwise known to them
prior to the Effective Time.
(b) FBI and its Affiliates will hold, and will use their best
efforts to cause their officers, directors, employees, consultants,
advisors, representatives, and agents to hold, in confidence, unless
compelled by judicial or other legal process, all confidential
documents and information concerning First National furnished to FBI
and its Affiliates in connection with the transactions contemplated by
this Agreement, including information provided in accordance with this
Section 8.4, except to the extent that such information can clearly be
demonstrated by FBI to have been (i) previously known on a
nonconfidential basis by FBI, (ii) in the public domain other than as a
result of disclosure by FBI and any of its Affiliates, or (iii) later
lawfully acquired by FBI from sources other than First National;
provided, however, that FBI may disclose such information to its
officers, directors, employees, consultants, advisors, representatives,
and agents in connection with the transactions contemplated by this
Agreement only to the extent that such Persons who, in FBI's reasonable
judgment, need to know such information for the purpose of evaluating
First National (provided that such Persons shall be informed of the
confidential nature of such information and shall agree to be bound by
the terms of this provision) and, in any event, such disclosures shall
be made only to the extent necessary for such purposes. If this
Agreement is terminated in accordance with Article 10 hereof, FBI and
its Affiliates shall maintain the confidence of such information and
will, and will use their best efforts to cause its officers, directors,
employees, consultants, advisors, representatives, and agents to,
return to First National all documents and other materials, and all
copies made thereof, obtained by FBI or any of its Affiliates in
connection with this Agreement that are subject to this Section 8.4.
8.5 Current Information. During the period from the date of this
Agreement until the Effective Time or termination of this Agreement pursuant to
Article 10 hereof, each of First National and FBI shall, and shall cause its
representatives to, confer on a regular and frequent basis with representatives
of the other. Each of First National and FBI shall promptly notify the other of
(i) any material change in its business or operations, (ii) any material
complaints, investigations, or hearings (or communications indicating that the
same may be contemplated) of any Regulatory Authority, (iii) the institution or
threat of material Litigation involving such party, or (iv) the occurrence or
nonoccurrence, of an event or condition, the occurrence, or
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nonoccurrence, of which would be reasonably expected to cause any of such
party's representations or warranties set forth herein to be false or untrue in
any respect as of the Effective Time; and in each case shall keep the other
fully informed with respect thereto.
8.6 Other Actions. No Party shall, or shall permit any of its
Subsidiaries, if any, to, take any action, except in every case as may be
required by applicable Law, that would or is intended to result in (i) any of
its representations and warranties set forth in this Agreement that are
qualified as to materiality being or becoming untrue, (ii) any of such
representations and warranties that are not so qualified become untrue in any
material manner having a Material Adverse Effect, (iii) any of the conditions
set forth in this Agreement not being satisfied or in a violation of any
provision of this Agreement, or (iv) adversely affecting the ability of any of
them to obtain any of the Consents or Permits from Regulatory Authorities
(unless such action is required by sound banking practice).
8.7 Press Releases. Prior to the Effective Time, First National
and FBI shall consult with each other as to the form and substance of any press
release or other public disclosure materially related to this Agreement or any
other transaction contemplated hereby; provided, that nothing in this Section
8.7 shall be deemed to prohibit any Party from making any disclosure which its
counsel deems necessary or advisable in order to satisfy such Party's disclosure
obligations imposed by Law.
8.8 No Solicitation. Except with respect to this Agreement and the
transactions contemplated hereby, from the date of this Agreement until the
Effective Time or termination pursuant to Article 10, neither First National nor
any of its Representatives shall directly or indirectly solicit any Acquisition
Proposal by any Person. Except to the extent necessary to comply with the
fiduciary duties of First National's Board of Directors determined after
consultation with counsel neither First National nor any Affiliate or
Representative of First National shall furnish any nonpublic information that it
is not legally obligated to furnish or negotiate with respect to, any
Acquisition Proposal, but First National may communicate information about such
an Acquisition Proposal to its shareholders if and to the extent that it is
required to do so in order to comply with its legal obligations as advised by
counsel. First National shall promptly notify FBI orally and in writing in the
event that it receives any inquiry or proposal relating to any such transaction.
First National shall (i) immediately cease and cause to be terminated any
existing activities, discussions, or negotiations with any Persons conducted
heretofore with respect to any of the foregoing, and (ii) direct and use its
reasonable best efforts to cause of all its Representatives not to engage in any
of the foregoing.
8.9 Accounting and Tax Treatment. Each of the Parties undertakes
and agrees to use its reasonable best efforts to cause the Merger, and to take
no action which would cause the Merger not, to qualify for treatment as a
"reorganization" within the meaning of Section 368(a) of the Internal Revenue
Code for federal income tax purposes.
8.10 Articles of Association Provisions. First National shall take
all necessary action to ensure that the entering into of this Agreement and the
consummation of the Merger and the other transactions contemplated hereby do not
and will not result in any super-majority voting requirements or the grant of
any rights to any Person under the Articles of Association, Bylaws, or other
governing instruments of First National.
8.11 Agreement of Affiliates. First National has disclosed in
Schedule 8.11 all Persons whom it reasonably believes are "affiliates" of First
National for purposes of Rule 145 under the 1933 Act. First National shall use
its reasonable best efforts to cause each such Person to deliver to FBI not
later than 30 days prior to the Effective Time, a written agreement,
substantially in the form of Exhibit 2 attached hereto,
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providing that such Person will not sell, pledge, transfer, or otherwise dispose
of the shares of First National Common Stock held by such Person, except as
contemplated by such agreement or by this Agreement and will not sell, pledge,
transfer, or otherwise dispose of the shares of FBI Common Stock to be received
by such Person upon consummation of the Merger except in compliance with
applicable provisions of the 1933 Act and the rules and regulations thereunder
(and FBI shall be entitled to place restrictive legends upon certificates for
shares of FBI Common Stock issued to affiliates of First National pursuant to
this Agreement to enforce the provisions of this Section 8.11). FBI shall not be
required to maintain the effectiveness of the Registration Statement under the
1933 Act for the purposes of resale of FBI Common Stock by such affiliates.
8.12 Employee Benefits and Contracts. Following the Effective Time,
FBI shall provide generally to continuing officers and employees of First
National employee benefits under employee benefit plans (other than stock option
or other plans involving the potential issuance of FBI Common Stock), on terms
and conditions which when taken as a whole are no less favorable than those
currently provided by First National or those currently provided by FBI to their
similarly situated officers and employees. For purposes of participation and
vesting (but not benefit accrual under any employee benefit plans of FBI other
than the First National Benefit Plans) under such employee benefit plans, the
service of the employees of First National prior to the Effective Time shall be
treated as service with FBI participating in such employee benefit plans. FBI
shall honor in accordance with their terms all employment, severance,
consulting, and other compensation Contracts disclosed in Schedule 8.12 between
First National and any current or former director, officer, or employee thereof,
and all provisions for vested benefits or other vested amounts earned or accrued
through the Effective Time under the First National Benefit Plans.
8.13 Management Contracts. FBI has agreed to provide written
employment contracts to Xxxx X. XxXxxxxx and T. Xxxxx Xxxxxxx, Xx., which shall
take effect at the Effective Time of the Merger. The employment contracts must
be executed within 30 days following the date of this Agreement. If the Parties
are not able to execute the respective employment contracts within that period,
Messrs. XxXxxxxx and Xxxxxxx shall retain and be governed by their respective
employment agreements with First National.
8.14 Indemnification.
(a) FBI shall, and shall cause the Resulting Association (and
its successors and assigns) to, indemnify, defend, and hold harmless
the present and former directors, officers, employees, and agents of
First National (each, an "Indemnified Party") against all costs, fees
or expenses (including reasonable attorneys' fees), judgments, fines,
penalties, losses, claims, damages, liabilities and amounts paid in
settlement in connection with any Litigation arising out of actions or
omissions occurring at or prior to the Effective Time (including the
transactions contemplated by this Agreement) to the full extent
permitted under Florida Law and by First National's Articles of
Association and Bylaws as in effect on the date hereof, including
provisions relating to advances of expenses incurred in the defense of
any Litigation. Without limiting the foregoing, in any case in which
approval by FBI is required to effectuate any indemnification, FBI
shall direct, at the election of the Indemnified Party, that the
determination of any such approval shall be made by independent counsel
mutually agreed upon between FBI and the Indemnified Party.
(b) If FBI or the Resulting Association or any of their
successors or assigns shall consolidate with or merge into any other
Person and shall not be the continuing or surviving corporation of such
consolidation or merger or shall transfer all or substantially all of
its assets to any Person, then and in each case, proper provision shall
be made so that the successors and assigns of FBI shall assume the
obligations set forth in this Section 8.14.
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(c) The provisions of this Section 8.14 are intended to be for
the benefit of and shall be enforceable by, each Indemnified Party, his
or her heirs and representatives and shall survive the consummation of
the Merger and be binding on all successors and assigns of FBI and the
Resulting Association.
ARTICLE 9
CONDITIONS PRECEDENT TO OBLIGATIONS TO CONSUMMATE
9.1 Conditions to Obligations of Each Party. The respective
obligations of each Party to perform this Agreement and consummate the Merger
and the other transactions contemplated hereby are subject to the satisfaction
of the following conditions, unless waived by both Parties pursuant to Section
11.7 of this Agreement:
(a) Shareholder Approval. The shareholders of First National
shall have approved this Agreement by the requisite 662/3% vote, and
the consummation of the transactions contemplated hereby, including the
Merger, as and to the extent required by Law.
(b) Regulatory Approvals. All Consents of, filings and
registrations with, and notifications to, all Regulatory Authorities
required for consummation of the Merger shall have been obtained or
made and shall be in full force and effect and all waiting periods
required by Law shall have expired. No Consent obtained from any
Regulatory Authority which is necessary to consummate the transactions
contemplated hereby shall be conditioned or restricted in a manner
(including requirements relating to the raising of additional capital
or the disposition of Assets) which in the reasonable judgment of the
Board of Directors of either Party would so materially adversely impact
the economic or business benefits of the transactions contemplated by
this Agreement that, had such condition or requirement been known, such
Party would not, in its reasonable judgment, have entered into this
Agreement.
(c) Consents and Approvals. Other than filing the Certificate
to Merge and receipt of a certification of the Merger, each Party shall
have obtained any and all Consents required for consummation of the
Merger (other than those referred to in Section 9.1(b) of this
Agreement or listed in Schedule 9.1[c]) or for the preventing of any
Default under any Contract or Permit of such Party which, if not
obtained or made, is reasonably likely to have, individually or in the
aggregate, a Material Adverse Effect on such Party.
(d) Legal Proceedings. No court or governmental or regulatory
authority of competent jurisdiction shall have enacted, issued,
promulgated, enforced, or entered any Law or Order (whether temporary,
preliminary, or permanent) or taken any other action which prohibits,
restricts, or makes illegal consummation of the transactions
contemplated by this Agreement.
(e) Registration Statement. The Registration Statement shall
have been declared effective under the 1933 Act, and no stop orders
suspending the effectiveness of the Registration Statement shall have
been issued, and no action, suit, proceeding, or investigation by the
SEC to suspend the effectiveness thereof shall have been initiated and
be continuing, and all necessary approvals under state securities Laws
or the 1933 Act or 1934 Act relating to the issuance or trading of the
shares of FBI Common Stock issuable pursuant to the Merger shall have
been received.
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(g) Tax Matters. Each Party shall have received a written
opinion or opinions from Xxxxx, Xxxxxxxx & Xxxxxxx, LLP, and in a form
reasonably satisfactory to such Parties (the "Tax Opinion"), to the
effect that (i) the Merger will constitute a reorganization within the
meaning of Section 368(a) of the Internal Revenue Code and (ii) the
exchange in the Merger of First National Common Stock for FBI Common
Stock will not give rise to gain or loss to the shareholders of First
National with respect to such exchange (except to the extent of any
cash received). In rendering such Tax Opinion, such counsel shall be
entitled to rely upon representations of officers of First National and
FBI reasonably satisfactory in form and substance to such counsel.
(h) Public Offering. FBI shall have executed a definitive
underwriting agreement with The Xxxxxxxx-Xxxxxxxx Company, LLC (or such
other investment banking firm equivalent in stature and reputation as
determined in the sole discretion of the Board of Directors of FBI)
providing for the firm commitment underwriting of shares of FBI Common
Stock having an aggregate gross purchase price of at least $30 million.
9.2 Conditions to Obligations of FBI. The obligations of FBI to
perform this Agreement and consummate the Merger and the other transactions
contemplated hereby are subject to the satisfaction of the following conditions,
unless waived by FBI pursuant to Section 11.6(a) of this Agreement:
(a) Representations and Warranties. For purposes of this
Section 9.2(a), the accuracy of the representations and warranties of
First National set forth in this Agreement shall be assessed as of the
date of this Agreement and as of the Effective Time with the same
effect as though all such representations and warranties had been made
on and as of the Effective Time (provided that representations and
warranties which are confined to a specified date shall speak only as
of such date). The representations and warranties of First National set
forth in Section 5.3 of this Agreement shall be true and correct
(except for inaccuracies which are de minimus in amount). The
representations and warranties of First National set forth in Sections
5.17, 5.18, 5.19, and 5.20 of this Agreement shall be true and correct
in all material respects. There shall not exist inaccuracies in the
representations and warranties of First National set forth in this
Agreement (including the representations and warranties set forth in
Sections 5.3, 5.17, 5.18, 5.19, and 5.20) such that the aggregate
effect of such inaccuracies has, or is reasonably likely to have, a
Material Adverse Effect on First National; provided that, for purposes
of this sentence only, those representations and warranties which are
qualified by references to Immaterial" or "Material Adverse Effect"
shall be deemed not to include such qualifications.
(b) Performance of Agreements and Covenants. Each and all of
the agreements and covenants of First National to be performed and
complied with pursuant to this Agreement and the other agreements
contemplated hereby prior to the Effective Time shall have been duly
performed and complied with in all respects.
(c) Certificates. First National shall have delivered to FBI
(i) a certificate, dated as of the Effective Time and signed on its
behalf by its chief executive officer and its chief financial officer,
to the effect that the conditions of its obligations set forth in
Section 9.2(a) and 9.2(b) of this Agreement have been satisfied, and
(ii) certified copies of resolutions duly adopted by First National's
Board of Directors and shareholders evidencing the taking of all
corporate action necessary to authorize the execution, delivery, and
performance of this Agreement, and the
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consummation of the transactions contemplated hereby, all in such
reasonable detail as FBI and its counsel shall request.
(d) Affiliates Agreements. FBI shall have received from each
affiliate of First National the affiliates letter referred to in
Section 8.12 of this Agreement.
(e) Opinion of Counsel. FBI shall have received a written
opinion of Xxxxx & Xxxxxxxxx, P.A., Tallahassee, Florida, counsel to
First National, dated as of the Effective Time, with respect to such
matters and in such form as shall be agreed upon between such firm and
FBI in substantially the form that is attached as Exhibit 3.
(f) Options Cancellation Agreements. FBI shall have received
from each holder of First National Options the cancellation agreement
referred to in Section 3.4 of this Agreement.
(g) Opinion of Accountants. First National shall have received
an opinion from Deloitte & Touche, dated as of the Effective Time, a
copy of which shall be provided to FBI and the contents of which shall
be acceptable to FBI in its sole discretion, to the effect that there
has not been an ownership change, as defined in Internal Revenue Code
Section 382(g), of First National that occurred during or after any
Taxable Period in which First National incurred a net operating loss
that carries over to any Taxable Period ending after December 31, 1996.
9.3 Conditions to Obligations of First National. The obligations
of First National to perform this Agreement and consummate the Merger and the
other transactions contemplated hereby are subject to the satisfaction of the
following conditions, unless waived by First National pursuant to Section 11.7
of this Agreement:
(a) Representations and Warranties. For purposes of this
Section 9.3(a), the accuracy of the representations and warranties of
FBI set forth in this Agreement shall be assessed as of the date of
this Agreement and as of the Effective Time with the same effect as
though all such representations and warranties had been made on and as
of the Effective Time (provided that representations and warranties
which are confined to a specified date shall speak only as of such
date). The representations and warranties of FBI set forth in Section
6.3 of this Agreement shall be true and correct (except for
inaccuracies which are de minimus in amount). The representations and
warranties of FBI set forth in Section 6.11 of this Agreement shall be
true and correct in all material respects. There shall not exist
inaccuracies in the representations and warranties of FBI set forth in
this Agreement (including the representations and warranties set forth
in Sections 6.3 and 6.11) such that the aggregate effect of such
inaccuracies has, or is reasonably likely to have, a Material Adverse
Effect on FBI; provided that, for purposes of this sentence only, those
representations and warranties which are qualified by references to
"material" or "Material Adverse Effect" shall be deemed not to include
such qualifications.
(b) Performance of Agreements and Covenants. Each and all of
the agreements and covenants of FBI to be performed and complied with
pursuant to this Agreement and the other agreements contemplated hereby
prior to the Effective Time shall have been duly performed and complied
with in all material respects.
(c) Certificates. FBI shall have delivered to First National
(i) a certificate, dated as of the Effective Time and signed on its
behalf by its chief executive officer and its chief financial officer,
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to the effect that the conditions of its obligations set forth in
Section 9.3(a) and 9.3(b) of this Agreement have been satisfied, and
(ii) certified copies of resolutions duly adopted by FBI's Board of
Directors evidencing the taking of all corporate action necessary to
authorize the execution, delivery, and performance of this Agreement,
and the consummation of the transactions contemplated hereby, all in
such reasonable detail as First National and its counsel shall request.
(d) Fairness Opinion. First National shall have received from
Xxxxxx Capital Management, Inc. a letter, dated not more than five
business days prior to the date of the Proxy Statement, to the effect
that, in the opinion of such firm, the Exchange Ratio is fair, from a
financial point of view, to the holders of First National Common Stock.
(e) Payment of Consideration. FBI shall have delivered to the
Exchange Agent the consideration to be paid to holders of the First
National Common Stock pursuant to Sections 3.1 and 3.3 of this
Agreement.
(f) Opinion of Counsel. First National shall have received a
written opinion of Xxxxx, Xxxxxxxx & Xxxxxxx, LLP, counsel to FBI,
dated as of the Effective Time, with respect to such matters and in
substantially the form that is attached hereto as Exhibit 4.
ARTICLE 10
TERMINATION
10.1 Termination. Notwithstanding any other provision of this
Agreement, and notwithstanding the approval of this Agreement by the
shareholders of First National, this Agreement may be terminated and the Merger
abandoned at any time prior to the Effective Time:
(a) By mutual written consent of the Board of Directors of FBI
and the Board of Directors of First National; or
(b) By the Board of Directors of either FBI or First National
(provided that the terminating Party is not then in breach of any
representation or warranty contained in this Agreement under the
applicable standard set forth in Section 9.2(b) of this Agreement in
the case of First National and Section 9.3(a) in the case of FBI or in
material breach of any covenant or other agreement contained in this
Agreement) in the event of an inaccuracy of any representation or
warranty of the other Party contained in this Agreement which cannot be
or has not been cured within 30 days after the giving of written notice
to the breaching Party of such inaccuracy and which inaccuracy would
provide the terminating Party the ability to refuse to consummate the
Merger under the applicable standard set forth in Section 9.2(b) of
this Agreement in the case of First National and Section 9.3(a) of this
Agreement in the case of FBI; or
(c) By the Board of Directors of either FBI or First National
in the event of a material breach by the other Party of any covenant,
agreement, or obligation contained in this Agreement which breach
cannot be or has not been cured within 30 days after the giving of
written notice to the breaching Party of such breach; or
(d) By the Board of Directors of either FBI or First National
in the event (i) any Consent of any Regulatory Authority required for
consummation of the Merger and the other transactions
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contemplated hereby shall have been denied by final nonappealable
action of such authority or if any action taken by such authority is
not appealed within the time limit for appeal; or (ii) the shareholders
of First National fail to vote their approval of this Agreement and the
transactions contemplated hereby as required by the FBCA at the
Shareholders' Meeting where the transactions were presented to such
shareholders for approval and voted upon; or
(e) By the Board of Directors of either FBI or First National
in the event that the Merger shall not have been consummated by
September 30, 1998, if the failure to consummate the transactions
contemplated hereby on or before such date is not caused by any breach
of this Agreement by the Party electing to terminate pursuant to this
Section 10.1(e); or
(f) By FBI in the event dissenters' rights are claimed,
pursuant to the applicable provisions of the FBCA, by persons owning in
the aggregate more than 10% of the issued and outstanding First
National Common Stock; or
(g) By the Board of Directors of either FBI or First National
(provided that the terminating Party is not then in breach of any
representation or warranty contained in this Agreement under the
applicable standard set forth in Section 9.2(b) of this Agreement in
the case of First National and Section 9.3(a) in the case of FBI or in
material breach of any covenant or other agreement contained in this
Agreement) in the event that any of the conditions precedent to the
obligations of such Party to consummate the Merger cannot be satisfied
or fulfilled by the date specified in Section 10.1(e) of this
Agreement; or
(h) By First National, if at any time prior to the Effective
Time, the fairness opinion of Xxxxxx Capital Management, Inc., is
withdrawn.
(i) By First National if prior to the Effective Time, a
corporation, partnership, person, or other entity or group shall have
made a bona fide Acquisition Proposal that the First National Board
determines in its good faith judgment and in the exercise of its
fiduciary duties, with respect to legal matters on the written opinion
of legal counsel and as to financial matters on the written opinion of
an investment banking firm of national reputation, is more favorable to
the First National shareholders and that the failure to terminate this
Agreement and accept such alternative Acquisition Proposal would be
inconsistent with the proper exercise of such fiduciary duties.
(j) By FBI, if First National has not received the opinion
referenced in Section 9.2(g).
10.2 Effect of Termination. (a) In the event of the termination and
abandonment of this Agreement pursuant to Section 10.1 of this Agreement, this
Agreement shall become void and have no effect, except that (i) the provisions
of this Section 10.2 and Sections 8.5 and 11.1 of this Agreement shall survive
any such termination and abandonment, and (ii) a termination pursuant to
Sections 10.1(b) or 10.1(c) or 10.1 (f), of this Agreement shall not relieve the
breaching Party from liability for an uncured willful breach of a
representation, warranty, covenant, or agreement giving rise to such
termination; provided, further, that in the event of any termination of this
Agreement following the occurrence of an Initial Triggering Event (as defined
below) other than termination due to: (A) the failure of FBI to satisfy a
condition to closing, (B) determination of FBI pursuant to Section 9.2(a) not to
perform this Agreement, (C) withdrawal of the fairness opinion of Xxxxxx Capital
Management, Inc. (so long as such withdrawal is not due to materially inaccurate
or fraudulent information provided by First National to Xxxxxx Capital
Management, Inc.), or (D) the failure to satisfy the conditions set forth in
Section 9.1 paragraphs (b), (d),
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(e), (f) and (g), FBI shall be entitled to a cash payment from First National in
an amount equal to $1,000,000 upon the occurrence of any Subsequent Triggering
Event (as defined below) within twelve (12) months following the date of such
termination. In the event this Agreement is terminated as a result of FBI's or
First National's failure to satisfy any of its representations, warranties or
covenants set forth herein, the non-terminating party shall reimburse the
terminating party for its reasonable out-of-pocket expenses relating to the
Merger in an amount not to exceed $250,000.
(b) The term "Initial Triggering Event" shall mean any of the
following events or transactions occurring after the date of this Agreement:
(i) First National, without having received FBI's prior
written consent, shall have entered into an agreement to engage in an
Acquisition Transaction (as hereinafter defined) with any Person (the term
"Person" for purposes of this Section also having the meaning assigned thereto
in Sections 3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934 (the
"1934 Act"), and the rules and regulations thereunder) other than FBI or any of
its Subsidiaries (each a "FBI Subsidiary") or the Board of Directors of First
National shall have recommended that the shareholders of First National approve
or accept any Acquisition Transaction other than as contemplated by this
Agreement. For purposes of this Agreement, (a) "Acquisition Transaction" shall
mean (x) a merger or consolidation, or any similar transaction, involving First
National, (y) a purchase, lease or other acquisition of all or substantially all
of the assets or deposits of First National, or (z) a purchase or other
acquisition (including by way of merger, consolidation, share exchange or
otherwise) of securities representing 15% or more of the voting power of First
National, and (b) "Subsidiary", for purposes of this Section, also shall have
the meaning set forth in Rule 12b-2 under the 1934 Act;
(ii) Any Person (excluding the officers, directors and
existing shareholders of First National), other than FBI or any FBI Subsidiary
acting in a fiduciary capacity, shall have acquired beneficial ownership or the
right to acquire beneficial ownership of 15% or more of the outstanding First
National Common Stock (the term "beneficial ownership" for purposes of this
Agreement having the meaning assigned thereto in Section 13(d) of the 1934 Act,
and the rules and regulations thereunder) and such Person does not vote such
First National Common Stock in favor of this Agreement at the meeting
contemplated in clause (iii) below or such meeting is not held or is cancelled;
(iii) The meeting of shareholders of First National to be held
for the purpose of approving the transaction contemplated by this Agreement
shall not have been held or shall have been canceled prior to termination of
this Agreement, or First National, without having received FBI's prior written
consent, shall have authorized, recommended, proposed (or publicly announced its
intention to authorize, recommend or propose, or its interest in authorizing,
recommending or proposing) an agreement to engage in an Acquisition Transaction,
with any person other than FBI or a FBI Subsidiary;
(iv) Any Person other than FBI or any FBI Subsidiary shall
have made a bona fide proposal to First National or its shareholders by public
announcement or written communication (a copy of which shall be provided to FBI)
to engage in an Acquisition Transaction, which proposal has an economic value
equivalent to or in excess of that of FBI.
(v) After a proposal is made by a third party to First
National to engage in an Acquisition Transaction, First National shall have
willfully and materially breached any material covenant or obligation
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contained in this Agreement in anticipation of engaging in an Acquisition
Transaction, and such breach would entitle FBI to terminate this Agreement and
such breach is not cured; or
(vi) Any person other than FBI or any FBI Subsidiary, other
than in connection with a transaction to which FBI has given its prior written
consent, shall have filed an application or notice with the Federal Reserve
Board or other federal or state bank regulatory authority, which application or
notice has been accepted for processing, for approval to engage in an
Acquisition Transaction.
(c) The term "Subsequent Triggering Event" shall mean any of the
following events or transactions occurring after the date hereof:
(i) The acquisition by any person (excluding the officers,
directors and existing shareholders of First National) of beneficial ownership
of 25% or more of the then outstanding First National Common Stock; or
(ii) The closing of the Acquisition Transaction described in
clause (i) of subsection (b) of this Section 10.2, except that the percentage
referred to in clause (z) shall be 25%.
(d) First National shall notify FBI promptly upon the occurrence
of any Initial Triggering Event or Subsequent Triggering Event.
10.3 Non-Survival of Representations and Covenants. The respective
representations and warranties of the Parties shall not survive the Effective
Time. All agreements of the Parties to this Agreement which by their terms are
to be performed following the Effective Time shall survive the Effective Time
until performed in accordance with their terms.
ARTICLE 11
MISCELLANEOUS
11.1 Definitions.
(a) Except as otherwise provided herein, the capitalized terms set
forth below shall have the following meanings:
"1933 Act" shall mean the Securities Act of 1933, as amended.
"1934 Act" shall mean the Securities Exchange Act of 1934, as
amended.
"Acquisition Proposal" with respect to a Party shall mean any
tender offer or exchange offer or any proposal for a merger,
acquisition of all of the stock or assets of, or other business
combination involving such Party or any of its Subsidiaries or any
proposal or offer to acquire in any manner a substantial equity
interest in, or a substantial portion of the assets of, such Party or
any of its Subsidiaries (other than the transactions contemplated or
permitted by this Agreement).
"Affiliate" of a Person shall mean: (i) any other Person directly,
or indirectly through one or more intermediaries, controlling,
controlled by or under common control with such Person; (ii) any
officer, director, partner, employer, or direct or indirect beneficial
owner of any 10% or greater equity
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or voting interest of such Person; or (iii) any other Person for which
a Person described in clause (ii) acts in any such capacity.
"Agreement" shall mean this Agreement and Plan of Merger,
including the Exhibits delivered pursuant hereto and incorporated
herein by reference.
"Assets" of a Person shall mean all of the assets, properties,
businesses, and rights of such Person of every kind, nature, character,
and description, whether real, personal, or mixed, tangible or
intangible, accrued or contingent, or otherwise relating to or utilized
in such Person's business, directly or indirectly, in whole or in part,
whether or not carried on the books and records of such Person, and
whether or not owned in the name of such Person or any Affiliate of
such Person and wherever located.
"BHC Act" shall mean the Bank Holding Company Act of 1956, as
amended.
"Certificate of Merger" shall mean the Certificate of Merger filed
with the OCC to consummate the Merger.
"Consent" shall mean any consent, approval, authorization,
clearance, exemption, waiver, or similar affirmation by any Person
pursuant to any Contract, Law, Order, or Permit.
"Contract" shall mean any written agreement, commitment, contract,
note, bond, mortgage, indenture, instrument, lease, obligation,
license, or plan of any kind or character, or other document to which
any Person is a party or that is binding on any Person or its capital
stock or Assets.
"Default" shall mean (i) any breach or violation of or default
under any Contract, (ii) any occurrence of any event that with the
passage of time or the giving of notice or both would constitute a
breach or violation of or default under any Contract, or (iii) any
occurrence of any event that with or without the passage of time or the
giving of notice would give rise to a right to terminate or revoke,
change the current terms of, or renegotiate, or to accelerate,
increase, or impose any liability under, any Contract where, in any
such event, such default is reasonably likely to have a Material
Adverse Effect on a Party.
"Derivatives Contract" shall have the meaning set forth in Section
5.20 of this Agreement.
"Effective Time" shall have the meaning set forth in Section 1.3
of this Agreement.
"Environmental Laws" shall mean all Laws relating to pollution or
protection of human health or the environment (including ambient air,
surface water, ground water, land surface, or subsurface strata) and
which are administered, interpreted, or enforced by the United States
Environmental Protection Agency and state and local agencies with
jurisdiction over, and including common law in respect of, pollution or
protection of the environment, including the Comprehensive
Environmental Response Compensation and Liability Act, as amended, 42
U.S.C. 9601 et seq., the Resource Conservation and Recovery Act, as
amended, 42 U.S.C. 6901 et seq., and other Laws relating to emissions,
discharges, releases, or threatened releases of any Hazardous Material,
or otherwise relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport, or handling of any
Hazardous Material.
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"ERISA" shall mean the Employee Retirement Income Security Act of
1974, as amended.
"ERISA Affiliate" shall have the meaning set forth in Section
5.13(c) of this Agreement.
"Exchange Agent" shall have the meaning set forth in Section 4.1
of this Agreement.
"Exchange Ratio" shall have the meaning set forth in Section
3.1(c)of this Agreement.
"Exhibits" 1, 2 and 3 shall mean the Exhibits so marked, copies of
which are attached to this Agreement. Such Exhibits are hereby
incorporated by reference herein and made a part hereof, and may be
referred to in this Agreement and any other related instrument or
document without being attached hereto.
"FBCA" shall mean the Florida Business Corporation Act.
"FBI" shall have the meaning set forth in the first paragraph of
this Agreement.
"FBI Capital Stock" shall mean, collectively, the FBI Common
Stock, the FBI Preferred Stock, and any other class or series of
capital stock of FBI.
"FBI Common Stock" shall mean the $.01 par value common stock of
FBI.
"FBI Companies" shall mean, collectively, FBI and all FBI
Subsidiaries.
"FBI Financial Statements" shall mean the unaudited consolidated
balance sheets (including related notes and schedules, if any) of FBI
as of March 31, 1998, and as of December 31, 1997, and the related
statements of income, changes in shareholders' equity, and cash flows
(including related notes and schedules, if any) for the three months
ended March 31, 1998, and for year ended December 31, 1997.
"FBI Preferred Stock" shall mean the $10.00 par value preferred
stock of FBI.
"First National" shall have the meaning set forth in the first
paragraph of this Agreement.
"First National Benefits Plans" shall have the meaning set forth
in Section 5.13(a) of this Agreement.
"First National Common Stock" shall mean the $1.00 par value
common stock of First National.
"First National Contract" shall have the meaning set forth in
Section 5.14.
"First National Financial Statements" shall mean (i) the
consolidated balance sheets (including related notes and schedules, if
any) of First National as of March 31, 1998, and as of December 31,
1997, 1996 and 1995, and the related statements of income, changes in
shareholders' equity, and cash flows (including related notes and
schedules, if any) for the three months ended March 31, 1998, and for
each of the three fiscal years ended December 31, 1997, 1996, and 1995,
as filed by First National with the Comptroller of the Currency and
(ii) the consolidated balance sheets of First National (including
related notes and schedules, if any) and related statements of income,
changes in
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shareholders' equity, and cash flows (including related notes and
schedules, if any) included in First National's Call Reports filed and
published in accordance with applicable federal regulation with respect
to periods ended subsequent to December 31, 1997.
"First National Pension Plan" shall have the meaning set forth in
Section 5.13(a) of this Agreement.
"First National Stock Plans" shall mean the existing stock option
and other stock-based compensation plans and warrant instruments of
First National set forth in Schedule 3.4.
"First National Options" shall have the meaning set forth in
Section 3.4(a) of this Agreement.
"GAAP" shall mean generally accepted accounting principles in the
United States, consistently applied during the periods involved
applicable to banks or bank holding companies, as the case may be.
"Hazardous Material" shall mean (i) any hazardous substance,
hazardous material, hazardous waste, regulated substance, or toxic
substance (as those terms are defined by any applicable Environmental
Laws) and (ii) any chemicals, pollutants, contaminants, petroleum,
petroleum products, or oil (and specifically shall include asbestos
requiring abatement, removal, or encapsulation pursuant to the
requirements of governmental authorities and any polychlorinated
biphenyls).
"Indemnified Party" shall have the meaning set forth in Section
8.14 of this Agreement.
"Internal Revenue Code" shall mean the Internal Revenue Code of
1986, as amended, and the rules and regulations promulgated thereunder.
"Knowledge" as used with respect to a Person (including references
to such Person being aware of a particular matter) shall mean the
personal knowledge of the chairman, president, chief financial officer,
chief accounting officer, chief credit officer, general counsel, any
assistant or deputy general counsel, or any senior or executive vice
president of such Person and the knowledge of any such persons obtained
or which would have been obtained from a reasonable investigation,
except as otherwise stated in this Agreement.
"Law" shall mean any code, law, ordinance, regulation, reporting
or licensing requirement, rule, or statute applicable to a Person or
its Assets, Liabilities, or business, including those promulgated,
interpreted, or enforced by any Regulatory Authority.
"Lien" with respect to any Asset, shall mean any conditional sale
agreement, default of title, easement, encroachment, encumbrance,
hypothecation, infringement, lien, mortgage, pledge, reservation,
restriction, security interest, title retention, or other security
arrangement, or any adverse right or interest, charge, or claim of any
nature whatsoever of, on, or with respect to any property or property
interest, other than (i) Liens for current property Taxes not yet due
and payable, (ii) for depository institution Subsidiaries of a Party,
pledges to secure deposits, and (iii) other Liens incurred in the
ordinary course of the banking business.
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"Litigation" shall mean any action, arbitration, cause of action,
claim, complaint, criminal prosecution, demand letter, governmental or
other examination or investigation, hearing, inquiry, administrative or
other proceeding, or notice by any Person alleging potential liability.
"Loan Property" shall mean any property owned, leased, or operated
by the Party in question or by any of its Subsidiaries or in which such
Party or its Subsidiary holds a security or other interest (including
an interest in a fiduciary capacity), and, where required by the
context, includes the owner or operator of such property, but only with
respect to such property.
"Material Adverse Effect" on a Party shall mean an event, change,
or occurrence which, individually or together with any other event,
change, or occurrence, (i) would in the aggregate result in an adverse
impact of $200,000 or more on the financial position or results of
operations of such Party, or (ii) would impair the ability of such
Party to perform its obligations under this Agreement or to consummate
the Merger or the other transactions contemplated by this Agreement,
provided that "Material Adverse Effect" shall not be deemed to include
the impact of (a) changes in banking and similar Laws of general
applicability or interpretations thereof by courts or governmental
authorities, (b) changes in GAAP or regulatory accounting principles
generally applicable to banks and their holding companies, (c) actions
and omissions of a Party (or any of its Subsidiaries) taken with the
prior informed consent of the other Party in contemplation of the
transactions contemplated hereby, (d) circumstances affecting regional
bank holding companies generally, and (e) the Merger and compliance
with the provisions of this Agreement on the operating performance of
the Parties.
"Merger" shall have the meaning set forth in Section 1.1 of this
Agreement.
"Nasdaq" shall mean the Nasdaq Stock Market.
"National Bank Act" shall mean 12 U.S.C. ss. 1, et seq.
"OCC" shall mean the Office of the Comptroller of the Currency.
"Order" shall mean any decree, injunction, judgment, order,
decision or award, ruling, or writ of any federal, state, local, or
foreign or other court, arbitrator, mediator, tribunal, administrative
agency, or Regulatory Authority.
"Participation Facility" shall mean any facility or property in
which the Party in question or any of its Subsidiaries participates in
the management and, where required by the context, said term means the
owner or operator of such facility or property, but only with respect
to such facility or property.
"Party" shall mean either First National or FBI, and "Parties"
shall mean both First National and FBI.
"Permit" shall mean any federal, state, local, and foreign
governmental approval, authorization, certificate, easement, filing,
franchise, license, notice, permit, or right to which any Person is a
party or that is or may be binding upon or inure to the benefit of any
Person.
"Person" shall mean a natural person or any legal, commercial, or
governmental entity, such as, but not limited to, a corporation,
general partnership, joint venture, limited partnership, limited
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liability company, trust, business association, group acting in
concert, or any person acting in a representative capacity.
"Proxy Statement" shall mean the proxy statement used by First
National to solicit the approval of its shareholders of the
transactions contemplated by this Agreement, which shall include the
prospectus of FBI relating to the issuance of the FBI Common Stock to
holders of First National Common Stock.
"Registration Statement" shall mean the Registration Statement on
Form S-4, or other appropriate form, including any pre-effective or
post-effective amendments or supplements thereto, filed with the SEC by
FBI under the 1933 Act with respect to the shares of FBI Common Stock
to be issued to the shareholders of First National in connection with
the transactions contemplated by this Agreement.
"Regulatory Authorities" shall mean, collectively, the Office of
the Comptroller of the Currency, the United States Department of
Justice, the Board of the Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, the SEC, NASD, Nasdaq and all
state regulatory agencies having jurisdiction over the Parties and
their respective Subsidiaries.
"Resulting Association" shall mean the surviving corporation in
the Merger, First National, which will operate under the new name
"Florida Bank, N.A."
"Rights" shall mean all arrangements, calls, Contracts, options,
rights to subscribe to, scrip, understandings, warrants, or other
binding obligations of any character whatsoever relating to, or
securities or rights convertible into or exchangeable for, shares of
the capital stock of a Person or any Contract, commitments or other
arrangements by which a Person is or may be bound to issue additional
shares of its capital stock or options, warrants, rights to purchase or
acquire any additional shares of its capital stock, or other Rights.
"SEC" shall mean the Securities and Exchange Commission.
"SEC Documents" shall mean all forms, proxy statements,
registration statements, reports, schedules, and other documents filed,
or required to be filed, by a Party or any of its Subsidiaries with any
Regulatory Authority pursuant to the Securities Laws.
"Securities Laws" shall mean the 1933 Act, the 1934 Act, the
Investment Company Act of 1940, as amended, the Investment Advisors Act
of 1940, as amended, the Trust Indenture Act of 1939, as amended, and
the rules and regulations of any Regulatory Authority promulgated
thereunder.
"Shareholders' Meeting" shall mean the meeting of the shareholders
of First National to be held pursuant to Section 8.1 of this Agreement,
including any adjournment or adjournments thereof.
"Subsidiaries" shall mean all those corporations, banks,
associations, or other entities of which the entity in question owns or
controls 50% or more of the outstanding equity securities either
directly or through an unbroken chain of entities as to each of which
50% or more of the outstanding equity securities is owned directly or
indirectly by its parent; provided, there shall not be included any
such entity acquired through foreclosure or any such entity the equity
securities of which are owned or controlled in a fiduciary capacity.
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"Tax" or "Taxes" shall mean all federal, state, local, and foreign
taxes, charges, fees, levies, imposts, duties, or other assessments,
including income, gross receipts, excise, employment, sales, use,
transfer, license, payroll, franchise, severance, stamp, occupation,
windfall profits, environmental, federal highway use, commercial rent,
customs duties, capital stock, paid-up capital, profits, withholding,
Social Security, single business and unemployment, disability, real
property, personal property, registration, ad valorem, value added,
alternative or add-on minimum, estimated, or other tax or governmental
fee of any kind whatsoever, imposed or required to be withheld by the
United States or any state, local, foreign government or subdivision or
agency thereof, including any interest, penalties or additions thereto.
"Tax Opinion" shall have the meaning set forth in Section 9.1(g)
of this Agreement.
"Taxable Period" shall mean any period prescribed by any
governmental authority, including the United States or any state,
local, foreign government or subdivision or agency thereof for which a
Tax Return is required to be filed or Tax is required to be paid.
"Tax Return" shall mean any report, return, information return, or
other information required to be supplied to a taxing authority in
connection with Taxes, including any return of an affiliated or
combined or unitary group that includes a Party or its Subsidiaries.
(b) Any singular term in this Agreement shall be deemed to include
the plural, and any plural term the singular. Whenever the words
"include," "includes," or "including" are used in this Agreement, they
shall be deemed followed by the words "without limitation."
11.2 Expenses.
(a) Except as otherwise provided in this Section 11.2, each of FBI
and First National shall bear and pay all direct costs and expenses
incurred by it or on its behalf in connection with the transactions
contemplated hereunder, including filing, registration, and application
fees, printing fees, and fees and expenses of its own financial or
other consultants, investment bankers, accountants, and counsel, except
that each of FBI and First National shall bear and pay one-half of the
printing costs incurred in connection with the printing of the
Registration Statement and the Proxy Statement.
(b) Nothing contained in this Section 11.2 shall constitute or
shall be deemed to constitute liquidated damages for the willful breach
by a Party of the terms of this Agreement or otherwise limit the rights
of the nonbreaching Party.
11.3 Brokers and Finders. Each of the Parties represents and
warrants that neither it nor any of its officers, directors, employees, or
Affiliates has employed any broker or finder in connection with this Agreement
or the transactions contemplated hereby. In the event of a claim by any broker
or finder based upon his or its representing or being retained by or allegedly
representing or being retained by First National or FBI, each of First National
and FBI, as the case may be, agrees to indemnify and hold the other Party
harmless of and from any Liability in respect of any such claim.
11.4 Entire Agreement. Except as otherwise expressly provided
herein, this Agreement constitutes the entire agreement between the Parties with
respect to the transactions contemplated hereunder and
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supersedes all prior arrangements or understandings with respect thereto,
written or oral (except for the Confidentiality Agreements).
11.5 Amendments. To the extent permitted by Law, this Agreement may
be amended by a subsequent writing signed by each of the Parties upon the
approval of the Boards of Directors of each of the Parties, whether before or
after shareholder approval of this Agreement has been obtained; provided, that
after any such approval by the holders of First National Common Stock, there
shall be made no amendment that reduces or modifies in any material respect the
consideration to be received by holders of First National Common Stock, without
the further approval of such shareholders.
11.6 Obligations of FBI. Whenever this Agreement requires FBI
(including the Resulting Association) to take any action, such requirement shall
be deemed to include an undertaking by FBI to cause the FBI Subsidiaries to take
such action.
11.7 Waivers.
(a) Prior to or at the Effective Time, FBI, acting through its
Board of Directors, chief executive officer, president or other
authorized officer, shall have the right to waive any default in the
performance of any term of this Agreement by First National, to waive
or extend the time for the compliance or fulfillment by First National
of any and all of its obligations under this Agreement, and to waive
any or all of the conditions precedent to the obligations of FBI under
this Agreement, except any condition which, if not satisfied, would
result in the violation of any Law. No such waiver shall be effective
unless in writing signed by a duly authorized officer of FBI.
(b) Prior to or at the Effective Time, First National, acting
through its Board of Directors, chief executive officer, president or
other authorized officer, shall have the right to waive any default in
the performance of any term of this Agreement by FBI, to waive or
extend the time for the compliance or fulfillment by FBI of any and all
of its obligations under this Agreement, and to waive any or all of the
conditions precedent to the obligations of First National under this
Agreement, except any condition which, if not satisfied, would result
in the violation of any Law. No such waiver shall be effective unless
in writing signed by a duly authorized officer of First National.
(c) The failure of any Party at any time or times to require
performance of any provision hereof shall in no manner affect the right
of such Party at a later time to enforce the same or any other
provision of this Agreement. No waiver of any condition or of the
breach of any term contained in this Agreement in one or more instances
shall be deemed to be or construed as a further or continuing waiver of
such condition or breach or a waiver of any other condition or of the
breach of any other term of this Agreement.
11.8 Assignment. Except as expressly contemplated hereby, neither
this Agreement nor any of the rights, interests, or obligations hereunder shall
be assigned by any Party hereto (whether by operation of Law or otherwise)
without the prior written consent of the other Party. Subject to the preceding
sentence, this Agreement will be binding upon, inure to the benefit of, and be
enforceable by the Parties and their respective successors and assigns.
11.9 Notices. All notices or other communications which are
required or permitted hereunder shall be in writing and sufficient if delivered
by hand, by facsimile transmission, by registered or certified mail, postage
pre-paid, or by courier or overnight carrier, to the persons at the addresses
set forth below (or at such
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other address as may be provided hereunder), and shall be deemed to have been
delivered as of the date so delivered:
First National: First National Bank of Tampa
000 Xxxx Xxxxxxx Xxxxxxxxx
Xxxxx, Xxxxxxx 00000
Telephone Number:(000) 000-0000
Telecopy Number:(000) 000-0000
Attention: W. Xxxxxx Xxxxxx, Xx., Chairman
and Xxxx X. XxXxxxxx, President
Copy to Counsel: Xxxxx & Xxxxxxxxx, P.A.
0000 Xxxx Xxxxxx Xxxx
Xxxxxxxxxxx, Xxxxxxx 00000
Telephone Number: (000) 000-0000
Telecopy Number: (000) 000-0000
Attention: A. Xxxxxx Xxxxx, Esq.
FBI and Interim: Xxxxxxx X. Xxxxxx, Xx.
Florida Banks, Inc.
Suite 000, Xxxxxxxxxx Xxxxxx XX
Xxxxxxxxxxxx, Xxxxxxx 00000-0000
Telephone Number: (000) 000-0000
Telecopy Number: (000) 000-0000
Attention: President and Chief Executive Officer
Copy to Counsel: Xxxxx, Xxxxxxxx & Xxxxxxx, XXX
Xxxxx 0000, Xxxxxxxxx XX
0000 Xxxxxxxxx Xxxxxx
Xxxxxxx, Xxxxxxx 00000-0000
Telephone Number: (000) 000-0000
Telecopy Number: (000) 000-0000
Attention: Xxxxxx X. Xxxxxxxx, Esq.
11.10 Governing Law; Arbitration. This Agreement shall be governed
by and construed in accordance with the Laws of the State of Florida, without
regard to any applicable conflicts of Laws, except to the extent that the Laws
of the United States. Any and all disputes arising out of or in connection with
this Agreement shall be submitted to arbitration, and finally settled, under the
Rules of the American Arbitration Association ("AAA") by one arbitrator
appointed in accordance with the said Rules. Any such arbitration shall be
conducted in Hillsborough County, Florida. Each party of this Agreement shall be
bound by the result of such arbitration. Each party shall bear its own expenses
relating to such disputes or disagreements so arbitrated, and the parties hereto
shall share equally the fees and charges of the arbitrators for conducting such
arbitration. Such arbitration shall be governed by the Federal Arbitration Act,
9 U.S.C. ss. 1 et seq; provided however, that the substantive law of the State
of Florida shall govern any and all such disputes. The Parties agree that any
action to confirm an arbitration award shall be brought in any competent court
in Hillsborough County, Florida, and that such court may enforce or compel
compliance with such award.
11.11 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument.
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11.12 Captions. The captions contained in this Agreement are for
reference purposes only and are not part of this Agreement.
11.13 Severability. Any term or provision of this Agreement which is
invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction. If any provision of this
Agreement is so broad as to be unenforceable, the provision shall be interpreted
to be only so broad as is enforceable.
11.14 Enforcement of Agreement. The Parties hereto agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement was not performed in accordance with its specific terms or was
otherwise breached. It is accordingly agreed that the Parties shall be entitled
to an injunction or injunctions to prevent breaches of this Agreement and to
enforce specifically the terms and provisions hereof in any court of the United
States or any state having jurisdiction, this being in addition to any other
remedy to which they are entitled at law or in equity.
11.15 Directors' Termination Fee. At the Effective Time, any
director of First National who will not become an advisory director of the
Resulting Association or become a director or executive officer of FBI, shall
receive a cash payment from FBI in the amount of $25,000, provided that such
director of First National execute and deliver to FBI an agreement containing a
representation that such director of First National will not compete with FBI or
any of its Affiliates for a period of one year from the Effective Time and
containing a general release by which such director releases the Resulting
Association, FBI, the directors and officers of the Resulting Association and
FBI and the former directors and officers of First National from any claims or
causes of action (whether known or unknown) which may have arisen or occurred at
any time prior to the Effective Time.
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be
executed on its behalf and its corporate seal to be hereunto affixed and
attested by officers thereunto as of the day and year first above written.
FLORIDA BANKS, INC.
By: /s/ Xxxxxxx X. Xxxxxx, Xx.
--------------------------------------
Name: Xxxxxxx X. Xxxxxx, Xx.
Title: President and Chief Executive Officer
FIRST NATIONAL BANK OF TAMPA
By: /s/ W. Xxxxxx Xxxxxx, Xx.
--------------------------------------
Name: W. Xxxxxx Xxxxxx, Xx.
Title: Chairman of the Board
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Florida Interim Bank No. 1 hereby joins in the foregoing Agreement,
undertakes that it will be bound thereby and that it will duly perform all the
acts and things therein referred to or provided to be done by it.
IN WITNESS WHEREOF, Florida Interim Bank No. 1 has caused this
undertaking to be made in counterparts by its duly authorized officers and its
corporate seal to be hereunto affixed as of this ___ day of ___________, 1998.
FLORIDA INTERIM BANK NO. 1
By:
----------------------------
Name:
Title: President
Attest:
---------------------------------
Secretary
[Corporate Seal]
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