AGREEMENT AND PLAN OF REORGANIZATION
EXHIBIT 2.1
AGREEMENT AND PLAN OF REORGANIZATION
THIS AGREEMENT AND PLAN OF REORGANIZATION (this "Agreement") is made and entered into as of December 19, 2005 by and between GB&T Bancshares, Inc. ("GB&T"), a corporation organized and existing under the laws of the State of Georgia, with its principal office located in Gainesville, Georgia, and Mountain Bancshares, Inc. ("Mountain"), a corporation organized and existing under the laws of the State of Georgia, with its principal office located in Dawsonville, Georgia.
PREAMBLE
The Boards of Directors of GB&T and Mountain are of the opinion that the transactions described herein are in the best interests of the parties and their respective shareholders. Β This Agreement provides for the merger of Mountain with and into GB&T, with GB&T being the surviving corporation of the merger. Β At the effective time of such merger, the outstanding shares of capital stock of Mountain will be converted into the right to receive shares of capital stock of GB&T and cash. Β As a result, shareholders of Mountain will become shareholders of GB&T, and the wholly-owned subsidiary of Mountain, Mountain State Bank (βMSBβ), will continue to conduct business and operations as a wholly-owned subsidiary of GB&T. The transactions described in this Agreement are subject to the approvals of the Boards of Directors of both GB&T and Mountain, the shareholders of Mountain, the Board of Governors of the Federal Reserve System, the Georgia Department of Banking and Finance and the satisfaction of certain other conditions described in this Agreement. Β It is the intention of the Parties that the merger for federal income tax purposes shall qualify as a "reorganization" within the meaning of Section 368(a) of the Internal Revenue Code.
As a condition and inducement to GB&T's willingness to consummate the transactions contemplated by this Agreement, each of the directors of Mountain will execute and deliver to GB&T an agreement (a "Support Agreement") within ten (10) calendar days of the date of this Agreement, in substantially the form of Exhibit 6 to this Agreement.
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 receipt and legal sufficiency of which are hereby acknowledged, the Parties agree as follows:
ARTICLE I
TRANSACTIONS AND TERMS OF MERGER
1.1
Merger. Β Subject to the terms and conditions of this Agreement, at the Effective Time, Mountain shall be merged with and into GB&T in accordance with the provisions of Sections 14-2-1101, 14-2-1103, and 14-2-1105 of the GBCC and with the effect provided in Section 14-2-1106 of the GBCC (the "Merger"). GB&T shall be the Surviving Corporation resulting from the Merger. 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 GB&T and Mountain.
1.2
Time and Place of Closing. Β The Closing will take place at 10:00 a.m. on the date that the Effective Time occurs (or the immediately preceding day if the Effective Time is earlier than 10:00 a.m.), or at such other time as the Parties, acting through their Designated Officers may mutually agree. The place of Closing shall be at the offices of Xxxxxx, Xxxxxx & Xxxxx, LLP, Gainesville, Georgia, or such other place as may be mutually agreed upon by the Parties.
1.3
Effective Time. The Merger and the other transactions contemplated by this Agreement shall become effective on the date and at the time the Articles of Merger reflecting the Merger shall become effective with the Secretary of State of the State of Georgia (the "Effective Time"). Β Subject to the terms and conditions hereof, unless otherwise mutually agreed upon in writing by the Designated Officer of each Party, the Parties shall use their reasonable efforts to cause the Effective Time to occur on the last business day of the month in which occurs the last to occur of (a) the effective date (including expiration of any applicable waiting period) of the last required Consent of any Regulatory Authority having authority over and approving or exempting the Merger, (b) the date on which the shareholders of Mountain approve this Agreement to the extent such approval is required by applicable Law; or such later date as may be mutually agreed upon in writing by the Designated Officer of each Party.
1.4
Execution of Support Agreements. Β Within ten (10) calendar days of the execution of this Agreement and as a condition hereto, each of the directors of Mountain will execute and deliver to GB&T a Support Agreement, in substantially the form of Exhibit 6 to this Agreement.
ARTICLE II
TERMS OF MERGER
Β
2.1
Articles of Incorporation. The Articles of Incorporation of GB&T in effect immediately prior to the Effective Time shall be the Articles of Incorporation of the Surviving Corporation from and after the Effective Time until otherwise amended or repealed.
2.2
Bylaws. Β The Bylaws of GB&T in effect immediately prior to the Effective Time shall be the Bylaws of the Surviving Corporation from and after the Effective Time until otherwise amended or repealed.
2.3
Directors and Officers.
(a)
The officers and directors of the Surviving Corporation from and after the Effective Time shall consist of the officers and directors of GB&T immediately preceding the Effective Time, together with a director from the present Mountain board of directors to be selected by and approved by the GB&T board of directors after consultation with the Mountain board of directors. Such officers and directors shall serve in accordance with the Articles of Incorporation and Bylaws of the Surviving Corporation.
(b)
The directors of MSB from and after the Effective Time shall consist of the directors of MSB immediately preceding the Effective Time, except for Xxx Xxxxxx, together with a director from the GB&T board of directors as selected by the GB&T board of directors. Such directors shall serve in accordance with the Articles of Incorporation and Bylaws of MSB.
ARTICLE III
MANNER OF CONVERTING SHARES
3.1
Conversion of Shares. Β Β Subject to the provisions of this Article III, at the Effective Time, by virtue of the Merger and without any action on the part of GB&T or Mountain, or the shareholders of either of the foregoing, the shares of the constituent corporations shall be converted as follows:
(a)
Each share of GB&T Common Stock issued and outstanding immediately prior to the Effective Time shall remain issued and outstanding from and after the Effective Time.
(b)
Each share of Mountain Common Stock (excluding shares held by GB&T or Mountain or any of their respective Subsidiaries, in each case other than in a fiduciary capacity or as a result of debts previously contracted) issued and outstanding at the Effective Time shall cease to be outstanding and shall be converted into and exchanged for the right to receive (1) cash, and (2) shares of GB&T Common Stock, as stated hereinafter. Β Individual shareholders of Mountain will be given cash in the amount of $8.40 for each share of Mountain stock and 0.8911 shares of GB&T Common Stock for each share of Mountain stock (βthe Exchange Ratioβ).
(c)
If on the Effective Time, the average closing price of GB&T Common
Stock (adjusted proportionately for any stock split, stock dividend, recapitalization, reclassification, or similar transaction that is effected, or for which a record date occurs) for the twenty (20) preceding trading days as reported in the NASDAQ (corrected for any typographical errors) (the βAverage Closing Priceβ) is less than $19.00 per share Mountain may demand re-negotiation of the exchange rate and if such 20-day average is greater than $26.00 per share, GB&T may demand re-negotiation of the exchange rate, and if such re-negotiation is unsuccessful after fifteen (15) days of good faith discussions, the dissatisfied party may withdraw and declare the agreement terminated, without penalty to either party. Β Each side will be responsible for paying its own expenses in the event that the deal is terminated.
3.2
Anti-Dilution Provisions. Β In the event GB&T or Mountain changes the number of shares of GB&T Common Stock or Mountain Common Stock, respectively, issued and outstanding prior to the Effective Time as a result of a stock split, reverse stock split, stock dividend or similar recapitalization with respect to such stock and the record date therefor (in the case of a stock dividend) or the effective date therefor (in the case of a stock split or similar recapitalization) shall be after the date hereof and prior to the Effective Time, the Exchange Ratio shall be proportionately adjusted.
3.3
Shares Held by GB&T or Mountain. Β Each of the shares of Mountain Common Stock held by any GB&T Company or by any Mountain Company, in each case other than in a fiduciary capacity or as a result of debts previously contracted, shall be canceled and retired at the Effective Time and no consideration shall be issued in exchange therefor.
3.4
Conversion of Stock Options; Restricted Stock.
(a)
Each option or warrant to purchase Mountain Common Stock (either, a βMountain Optionβ) outstanding at the Effective Time shall be converted into and become rights with respect to GB&T Common Stock and GB&T shall assume each such option in accordance with the terms of the stock option plan under which it was issued and the stock option or other agreement by which it is evidenced. Β From and after the Effective Time (all subject to appropriate adjustment for any transactions described in Section 3.2 if the record date with respect to such transaction is on or after the Effective Time), (i) each Mountain Option assumed by GB&T may be exercised solely for GB&T Common Stock, (ii) the number of shares of GB&T Common Stock subject to each Mountain Option shall be equal to the number of shares of Mountain Common Stock subject to each such Mountain Option immediately prior to the Effective Time, multiplied by 1.273 (the βOption Exchange Ratioβ) and (iii) the per share exercise price of the GB&T Common Stock subject to the Mountain Options shall be determined by dividing the per share exercise price of the Mountain Common Stock subject to each such Mountain Option by the Option Exchange Ratio and rounding down to the nearest cent. Β It is intended that the foregoing assumption of Mountain Options shall be undertaken in a manner that will not constitute a βmodificationβ as defined in Section 424 of the Internal Revenue Code as to any Mountain Option which is an incentive stock option as defined in Section 422 of the Internal Revenue Code. Β GB&T will modify each stock option that it assumes (as long as in the opinion of counsel for Mountain such βmodificationβ will not constitute a modification as defined in Section 424 of the Internal Revenue Code for options which are incentive stock options) to provide that the options may be exercised, in addition to the other payment methods set out in the relevant option plan, by the reduction of the number of shares subject to the option so that the difference between the option exercise price for such shares and the fair market value of such shares on the option exercise date shall equal the option exercise price of the total number of shares for which the option is being exercised.
(b)
At all times after the Effective Time, GB&T shall reserve for issuance such number of GB&T Common Stock as shall be necessary to permit the exercise of Mountain Options in the manner contemplated by this Agreement. Β At or prior to, or at the election of GB&T within a reasonable time (not to exceed 30 days) after, the Effective Time, GB&T shall file a Registration Statement on Form S-3 or Form S-8, as the case may be (or any successor or other appropriate form), with respect to the GB&T Common Stock subject to the Mountain Options and shall use its best efforts to maintain the effectiveness of such registration statement or registration statements (and maintain the current status of the prospectus or prospectuses contained therein) for so long as any of the Mountain Options remain outstanding. Β GB&T shall make any filings required under any applicable state securities laws to qualify the GB&T Common Stock subject to such Mountain Options for resale thereunder.
3.5
Dissenting Shareholders. Β Any holder of shares of Mountain Β Common Stock who perfects such holder's dissenters' rights of appraisal in accordance with and as contemplated by Article 13 of the GBCC shall be entitled to receive the value of such shares in cash as determined pursuant to such provision of the GBCC; provided, that no such payment shall be made to any dissenting shareholder unless and until such dissenting shareholder has complied with the applicable provisions of the GBCC and has surrendered to GB&T the certificate or certificates representing shares for which payment is being made. In the event that after the Effective Time a dissenting shareholder of Mountain fails to perfect, or effectively withdraws or loses, such holder's right to appraisal and of payment for such holder's shares, GB&T shall issue and deliver the consideration to which such holder of shares of Mountain Common Stock is entitled under this Article III (without interest) upon surrender by such holder of the certificate or certificates representing shares of Mountain Common Stock held by such holder.
3.6
Fractional Shares. Β Notwithstanding any other provision of this Agreement, each holder of shares of Mountain Common Stock exchanged pursuant to the Merger, or of options to purchase shares of Mountain Common Stock, who would otherwise have been entitled to receive a fraction of a share of GB&T Common Stock or the right to purchase a fraction of a share (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 GB&T Common Stock multiplied by $22.00. Β No such holder will be entitled to dividends, voting rights, or any other rights as a stockholder in respect of any fractional shares.
ARTICLE IV
EXCHANGE OF SHARES
4.1
Exchange Procedures. Β Promptly after the Effective Time, GB&T and Mountain shall cause the exchange agent selected by GB&T (the "Exchange Agent") to mail to the former holders of Mountain Common Stock appropriate transmittal materials (which shall specify that delivery shall be effected, and risk of loss and title to the certificates theretofore representing shares of Mountain Common Stock shall pass, only upon proper delivery of such certificates to the Exchange Agent). Β After the Effective Time, each holder of shares of Mountain Common Stock (other than shares to be canceled pursuant to Section 3.3 of this Agreement or shares as to which dissenters' rights have been perfected as provided in Section 3.5 of this Agreement) issued and outstanding at the Effective Time, shall surrender the certificate or certificates representing such shares to the Exchange Agent and shall promptly upon surrender thereof receive in exchange therefor the consideration provided in Section 3.1 and 3.6 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. Β Neither GB&T nor the Exchange Agent shall be obligated to deliver the consideration to which any former holder of Mountain Common Stock is entitled as a result of the Merger until such holder surrenders his or her certificate or certificates representing the shares of Mountain Common Stock for exchange, as provided in this Section 4.1 or appropriate affidavits and indemnity agreements in the event such share certificates have been lost, mutilated, or destroyed. Β The certificate or certificates of Mountain Common Stock so surrendered shall be duly endorsed as GB&T may require. Any other provision of this Agreement notwithstanding, neither GB&T nor the Exchange Agent shall be liable to a holder of Mountain 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 Mountain Shareholders. Β The stock transfer books of Mountain shall be closed as to holders of Mountain Common Stock immediately prior to the Effective Time and no transfer of Mountain 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 Mountain Common Stock (other than shares to be canceled pursuant to Section 3.3 or shares as to which dissenters' rights have been perfected as provided in Section 3.5 of this Agreement) shall from and after the Effective Time represent for all purposes only the right to receive the consideration provided in Section 3.1 and 3.6 of this Agreement in exchange therefor. Β To the extent permitted by Law, former holders of record of Mountain Common Stock shall be entitled to vote after the Effective Time at any meeting of GB&T shareholders the number of whole shares of GB&T Common Stock into which their respective shares of Mountain Common Stock are converted, regardless of whether such holders have exchanged their certificates representing Mountain Common Stock for certificates representing GB&T Common Stock in accordance with the provisions of this Agreement. Β Whenever a dividend or other distribution is declared by GB&T on the GB&T 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 no dividend or other distribution payable to the holders of record of GB&T Common Stock as of any time subsequent to the Effective Time shall be delivered to the holder of any certificate representing shares of Mountain 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 Mountain Common Stock certificate, both GB&T Common Stock certificate (together with all such undelivered dividends or other distributions without interest) and any undelivered 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.
ARTICLE V
REPRESENTATIONS AND WARRANTIES OF MOUNTAIN
Mountain hereby represents and warrants to GB&T as follows:
5.1
Organization, Standing, and Power. Β Mountain is a corporation duly organized, validly existing, and in good standing under the Laws of the State of Georgia and is duly registered as a bank holding company under the BHC Act and under Georgia law. Β Mountain has the corporate power and authority to carry on its business as now conducted and to own, lease and operate its Assets. Β Mountain is duly qualified or licensed to transact business as a foreign corporation in good standing in the states of the United States and foreign jurisdictions 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 Mountain.
5.2
Authority; No Breach By Agreement.
(a)
Mountain has the corporate power and authority necessary to execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. Β 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 Mountain, subject to the approval of this Agreement by the holders of a majority of the outstanding shares of Mountain Common Stock, which is the only shareholder vote required for approval of this Agreement and consummation of the Merger by Mountain. Subject to such requisite shareholder approval, this Agreement represents a legal, valid and binding obligation of Mountain, enforceable against Mountain 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 Mountain, nor, except as described in Section 5.2 of the Mountain Disclosure Memorandum, Β the consummation by Mountain of the transactions contemplated hereby, nor compliance by Mountain with any of the provisions hereof will (i) conflict with or result in a breach of any provision of Mountain's Articles of Incorporation or Bylaws, or (ii) to the Knowledge of Mountain subject to the receipt of the requisite approvals referred to in Section 9.1(b) of this Agreement, 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 Mountain Company under, any Contract or Permit of any Mountain Company, 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 Mountain, or (iii) to the Knowledge of Mountain subject to receipt of the requisite approvals referred to in Section 9.1 (b) of this Agreement, violate any Law or Order applicable to any Mountain Company or any of their respective Assets.
(c)
Other than in connection or compliance with the provisions of the Securities Laws, applicable state corporate and securities Laws, 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 Mountain, no notice to, filing with, or Consent of any public body or authority is necessary for the consummation by Mountain of the Merger and the other transactions contemplated in this Agreement.
5.3
Capital Stock.
(a)
The authorized capital stock of Mountain consists of 10,000,000 shares of Mountain Common Stock, of which 1,222,000 shares are issued and outstanding as of the date of this Agreement and not more than 1,565,000 shares will be issued and outstanding at the Effective Time. All of the issued and outstanding shares of capital stock of Mountain are duly and validly issued and outstanding and are fully paid and nonassessable under the GBCC. None of the outstanding shares of capital stock of Mountain have been issued in violation of any preemptive rights of the current or past shareholders of Mountain.
(b)
Except as set forth in Section 5.3 of this Agreement, or as disclosed in Section 5.3 of the Mountain Disclosure Memorandum, there are no shares of capital stock or other equity securities of Mountain outstanding and no outstanding Rights relating to the capital stock of Mountain.
5.4
Mountain Subsidiaries. Β Mountain has disclosed in Section 5.4 of the Mountain Disclosure Memorandum all of the Mountain Subsidiaries as of the date of this Agreement. Β Except as disclosed in Section 5.4 of the Mountain Disclosure Memorandum, Mountain or one of its Subsidiaries owns all of the issued and outstanding shares of capital stock of each Mountain Subsidiary. Β No equity securities of any Mountain Subsidiary are or may become required to be issued (other than to another Mountain Company) by reason of any Rights, and there are no Contracts by which any Mountain Subsidiary is bound to issue (other than to another Mountain Company) additional shares of its capital stock or Rights, or by which any Mountain Company is or may be bound to transfer any shares of the capital stock of any Mountain Subsidiary (other than to another Mountain Company). Β There are no Contracts relating to the rights of any Mountain Company to vote or to dispose of any shares of the capital stock of any Mountain Subsidiary. All of the shares of capital stock of each Mountain Subsidiary held by a Mountain Company are fully paid and nonassessable under the applicable Law of the jurisdiction in which such Subsidiary is incorporated or organized and are owned by a Mountain Company free and clear of any Lien except as disclosed by the Mountain Disclosure Memorandum. Each Mountain Subsidiary is either a bank, a savings association 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 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. Each Mountain Subsidiary is duly qualified or licensed to transact business as a foreign corporation in good standing in the states of the United States and foreign jurisdictions 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 Mountain. Each Mountain 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, as appropriate.
5.5
Financial Statements. Β Mountain has included in Section 5.5 of the Mountain Disclosure Memorandum copies of all Mountain Financial Statements for periods ended prior to the date hereof and will deliver to GB&T copies of all Mountain Financial Statements prepared subsequent to the date hereof. Β The Mountain Financial Statements (as of the dates thereof and for the periods covered thereby) (a) are, or if dated after the date of this Agreement will be, in accordance with the books and records of the Mountain Companies, which are or will be, as the case may be, complete and correct in all Material respects and which have been or will have been, as the case may be, maintained in accordance with good business practices, and (b) present or will present, as the case may be and in all Material respects, fairly the consolidated financial position of the Mountain Companies as of the dates indicated and the consolidated results of operations, changes in shareholders' equity, and cash flows of the Mountain Companies for the periods indicated, in accordance with GAAP (subject to any exceptions as to consistency specified therein or as may be indicated in the notes thereto or, in the case of interim financial statements, to normal recurring year-end adjustments that are not Material in amount or effect).
5.6
Absence of Undisclosed Liabilities. Β Β No Mountain Company has any Liabilities that are reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on Mountain except (i) Liabilities which are accrued or reserved against in the consolidated balance sheets of Mountain as of November 30, 2005, included in the Mountain Financial Statements or reflected in the notes thereto. Β No Mountain Company has incurred or paid any Liability since November 30, 2005 except for such Liabilities incurred or paid in the ordinary course of business consistent with past business practice and which are not reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on Mountain.
5.7
Absence of Certain Changes or Events. Β Since November 30, 2005, except as disclosed in Section 5.7 of the Mountain Disclosure Memorandum and to the Knowledge of Mountain, (a) 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 Mountain, and (b) the Mountain 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 Mountain provided in Article VII of this Agreement and which would likely have a Material Adverse Effect on Mountain.
5.8
Tax Matters.
(a)
All Tax returns required to be filed by or on behalf of any of the Mountain Companies have been timely filed or requests for extensions have been timely filed, granted, and have not expired, except to the extent that all such failures to file, taken together, are not reasonably likely to have a Material Adverse Effect on Mountain and all returns filed are complete and accurate in all Material respects to the Knowledge of Mountain. All Taxes shown on filed returns have been paid or adequate provision for the payment thereof has been made. As of the date of this Agreement, to the Knowledge of Mountain, 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 Mountain, except as reserved against in the Mountain Financial Statements delivered prior to the date of this Agreement or as disclosed in Section 5.8(a) of the Mountain Disclosure Memorandum. Β All Taxes and other Liabilities due with respect to completed and settled examinations or concluded Litigation have been paid.
(b)
Except as disclosed in Section 5.8(b) of the Mountain Disclosure Memorandum, none of the Mountain Companies has executed an extension or waiver of any statute of limitations on the assessment or collection of any Tax due that is currently in effect, and no unpaid tax deficiency has been asserted in writing against or with respect to any Mountain Company, which deficiency is reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on Mountain.
(c)
Adequate provision for any Taxes due or to become due for any of the Mountain Companies for the period or periods through and including the date of the respective Mountain Financial Statements has been made and is reflected on such Mountain Financial Statements.
(d)
Deferred Taxes of the Mountain Companies have been provided for in accordance with GAAP.
(e)
To the Knowledge of Mountain, each of the Mountain Companies is in compliance with, and its records contain all information and documents (including, without limitation, properly completed IRS 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 Mountain.
5.9
Allowance for Possible Loan Losses. The allowance for possible loan or credit losses (the "Allowance") shown on the balance sheet of MSB included in the most recent Mountain Financial Statements dated prior to the date of this Agreement was, and the Allowance shown on the balance sheet of MSB included in the Mountain Financial Statements as of dates subsequent to the execution of this Agreement will be, as of the dates thereof, adequate to the Knowledge of Mountain (within the meaning of GAAP and applicable regulatory requirements or guidelines) to provide for losses relating to or inherent in the loan and lease portfolios (including accrued interest receivables) of MSB and other extensions of credit (including letters of credit and commitments to make loans or extend credit) by MSB as of the dates thereof except where the failure of such Allowance to be so adequate is not reasonably likely to have a Material Adverse Effect on Mountain.
5.10
Β Assets. Β Except as disclosed in Section 5.10 of the Mountain Disclosure Memorandum or as disclosed or reserved against in the Mountain Financial Statements, the Mountain Companies have good and marketable title, and to the Knowledge of Mountain, free and clear of all Liens, to all of their respective Assets indicated as owned by the respective Company as of the date of the respective Mountain Statement. Β To the Knowledge of Mountain, all Material tangible properties used in the businesses of the Mountain Companies are in good condition, reasonable wear and tear excepted, and are usable in the ordinary course of business consistent with Mountain's past practices. Β All Assets which are Material to the business of the Mountain Companies and held under leases or subleases by any of the Mountain Companies 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. Β The policies of fire, theft, liability and other insurance maintained with respect to the Assets or businesses of the Mountain Companies provide adequate coverage under current industry practices against loss or Liability, and the fidelity and blanket bonds in effect as to which any of the Mountain Companies is a named insured are reasonably sufficient. Β The Assets of the Mountain Companies include all assets required to operate the business of the Mountain Companies as presently conducted.
5.11
Environmental Matters. Β Except as disclosed in Section 5.11 of the Mountain Disclosure Memorandum:
(a)
To the Knowledge of Mountain, each Mountain Company, its Participation Facilities and its Loan Properties are, and have been, in compliance with all Environmental Laws, except for noncompliance which is not reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on Mountain.
(b)
There is no Litigation pending or to the Knowledge of Mountain threatened before any court, governmental agency or authority or other forum in which any Mountain Company, or to the Knowledge of Mountain, 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 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 a site owned, leased or operated by any Mountain Company or any of its Loan Properties or Participation Facilities, except for such Litigation pending or threatened the resolution of which is not reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on Mountain, and to the Knowledge of Mountain, there is no reasonable basis for any such Litigation.
(c)
To the Knowledge of Mountain, there have been no releases of Hazardous Material in, on, under or affecting any Participation Facility or Loan Property, except such as are not reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on Mountain.
5.12
Compliance with Laws. Β To the Knowledge of Mountain, each Mountain Company has in effect all Permits necessary for it to own, lease or operate its 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 Mountain, and, to the Knowledge of Mountain, 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 Mountain. Β Except as disclosed in Section 5.12 of the Mountain Disclosure Memorandum, no Mountain Company:
(a)
to the Knowledge of Mountain, is 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 Mountain; and
(b)
to the Knowledge of Mountain, has 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 any Mountain Company 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 Mountain, (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 Mountain, or (iii) requiring any Mountain Company 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.
5.13
Labor Relations. Β No Mountain Company is the subject of any Litigation asserting that it or any other Mountain Company has committed an unfair labor practice (within the meaning of the National Labor Relations Act or comparable state law) or seeking to compel it or any other Mountain Company to bargain with any labor organization as to wages or conditions of employment, nor is there any strike or other labor dispute involving any Mountain Company, pending or, to its Knowledge, threatened, nor, to its Knowledge, is there any activity involving any Mountain Company's employees seeking to certify a collective bargaining unit or engaging in any other organization activity.
5.14
Employee Benefit Plans.
(a)
Mountain has disclosed in Section 5.14 of the Mountain Disclosure Memorandum and delivered or made available to GB&T 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, without limitation, "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 any Mountain Company or Affiliate thereof 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 "Mountain Benefit Plans"). Β Any of the Mountain 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 "Mountain ERISA Plan." Β Each Mountain ERISA Plan which is also a "defined benefit plan" (as defined in Section 414(j) of the Internal Revenue Code) is referred to herein as a "Mountain Pension Plan." Β No Mountain Pension Plan is or has been a multi-employer plan within the meaning of Section 3(37) of ERISA.
(b)
To the Knowledge of Mountain, all Mountain 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 Mountain. Each Mountain 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 to the Knowledge of Mountain, there are no circumstances likely to result in revocation of any such favorable determination letter. Β To the Knowledge of Mountain, no Mountain Company nor any other party has engaged in a transaction with respect to any Mountain Benefit Plan that, assuming the taxable period of such transaction expired as of the date hereof, would subject any Mountain Company to a tax or penalty 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 Mountain.
(c)
Neither Mountain nor any ERISA Affiliate of Mountain maintains an "employee pension benefit plan," within the meaning of Section 3(2) of ERISA that is or was subject to Title IV of ERISA.
(d)
Neither Mountain nor any ERISA Affiliate of Mountain has any past, present or future obligation or liability to contribute to any multi-employer plan, as defined in Section 3(37) of ERISA.
(e)
Except as disclosed in Section 5.14(e) of the Mountain Disclosure Memorandum, (i) no Mountain Company has any obligations for retiree health and life benefits under any of the Mountain Benefit Plans, except as required by Section 601 of ERISA and Section 4980B of the Code; (ii)there are no restrictions on the rights of any Mountain Company to amend or terminate any such Plan; and (iii) any amendment or termination of any such Plan will not cause any Mountain Company to incur any Liability that is reasonably likely to have a Material Adverse Effect on Mountain.
(f)
Except as disclosed in Section 5.14(f) of the Mountain Disclosure Memorandum, neither the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby will (i) result in any payment (including, without limitation, severance, unemployment compensation, golden parachute or otherwise) becoming due to any director or any employee of any Mountain Company from any Mountain Company under any Mountain Benefit Plan or otherwise, (ii) increase any benefits otherwise payable under any Mountain Benefit Plan, or (iii) result in any acceleration of the time of payment or vesting of any such benefit.
(g)
The actuarial present values of all accrued deferred compensation entitlements (including, without limitation, entitlements under any executive compensation, supplemental retirement, or employment agreement) of employees and former employees of any Mountain Company and their respective beneficiaries have been fully reflected on the Mountain Financial Statements to the extent required by and in accordance with GAAP, in all Material respects.
(h)
To the Knowledge of Mountain, Mountain and each ERISA Affiliate of Mountain has complied with the continuation of coverage requirements of Section 1001 of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and ERISA Sections 601 through 608 in a manner that will not cause any Mountain Company to incur any Liability that is reasonably likely to have a Material Adverse Effect on Mountain.
(i)
Except as disclosed in Section 5.14(i) of the Mountain Disclosure Memorandum, neither Mountain nor any ERISA Affiliate of Mountain is obligated, contingently or otherwise, under any agreement to pay any amount which would be treated as a "parachute payment," as defined in Section 280G(b) of the Internal Revenue Code (determined without regard to Section 280G(b)(2)(A)(ii) of the Internal Revenue Code).
(j)
Other than routine claims for benefits, to the Knowledge of Mountain, there are no actions, audits, investigations, suits or claims pending against any Mountain Benefit Plan, any trust or other funding agency created thereunder, or against any fiduciary of any Mountain Benefit Plan or against the assets of any Mountain Benefit Plan.
5.15
Material Contracts. Β Except as disclosed in Section 5.15 of the Mountain Disclosure Memorandum or otherwise reflected in the Mountain Financial Statements, none of the Mountain Companies, nor any of their respective Assets, businesses or operations, is a party to, or is bound or affected by, or receives benefits under, (a) any employment, severance, termination, consulting or retirement Contract providing for aggregate payments to any Person in any calendar year in excess of $25,000, excluding "at will" employment arrangements, (b) any Contract relating to the borrowing of money by any Mountain Company or the guarantee by any Mountain Company of any such obligation (other than Contracts evidencing deposit liabilities, purchases of federal funds, Federal Home Loan Bank advances, fully-secured repurchase agreements, trade payables, and Contracts relating to borrowings or guarantees made in the ordinary course of business), (c) any Contracts between or among Mountain Companies, and (d) any other Contract (excluding this Agreement) or amendment thereto that is required to be filed as an Exhibit to Β Form 10-KSB or Form 10-QSB filed by Mountain with the SEC as of the date of this Agreement that has not been filed as an exhibit to any Mountain Form 10-KSB or 10-QSB filed with the SEC (together with all Contracts referred to in Sections 5.10 and 5.14(a) of this Agreement, the "Mountain Contracts"). Β None of the Mountain Companies is in Default under any Mountain Contract, other than Defaults which are not reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on Mountain. All of the indebtedness of any Mountain Company for money borrowed is prepayable at any time by such Mountain Company without penalty or premium except as disclosed in Mountain Disclosure Memorandum.
5.16
Β Legal Proceedings. Β Except as disclosed in Section 5.16 of the Mountain Disclosure Memorandum, there is no Litigation instituted or pending, or, to the Knowledge of Mountain, threatened (or unasserted but considered probable of assertion and which if asserted would have at least a reasonable probability of an unfavorable outcome) against any Mountain Company, 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 Mountain, nor are there any Orders of any Regulatory Authorities, other governmental authorities, or arbitrators outstanding against any Mountain Company, that are reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on Mountain.
5.17
Reports. Β Since January 1, 2003, each Mountain Company has timely filed all reports and statements, together with any amendments required to be made with respect thereto, that it was required to file with (a) the Regulatory Authorities, and (b) any applicable federal and state securities or banking 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 Mountain). Β 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. Β As of its respective date, each such report and document to Mountain's Knowledge did not, in any Material respect, 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.
5.18
Statements True and Correct. Β To the Knowledge of Mountain, no statement, certificate, instrument or other writing furnished or to be furnished by any Mountain Company or any Affiliate thereof to GB&T pursuant to this Agreement or any other document, agreement or instrument referred to herein contains or will contain any untrue statement of Material fact or will omit to state a Material fact necessary to make the statements therein, in light of the circumstances under which they were made, not Materially misleading. Β To the Knowledge of Mountain, none of the information supplied or to be supplied by any Mountain Company or any Affiliate thereof for inclusion in the Registration Statement to be filed by GB&T 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. Β To the Knowledge of Mountain, none of the information supplied or to be supplied by any Mountain Company or any Affiliate thereof for inclusion in the Proxy Statement to be mailed to Mountain's shareholders in connection with the Mountain Shareholders' Meeting, and any other documents to be filed by a Mountain Company or any Affiliate thereof 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 Mountain, 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 Mountain 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 Mountain Shareholders' Meeting. Β All documents that any Mountain Company or any Affiliate thereof are 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.
5.19
Tax and Regulatory Matters. Β No Mountain Company, to the Knowledge of Mountain, or any Affiliate thereof has taken any action, or agreed to take any action, or has any Knowledge of any fact or circumstance that is reasonably likely to (a) prevent the transactions contemplated hereby, including the Merger, from qualifying for Β treatment as a reorganization within the meaning of Section 368(a) of the Internal Revenue Code, or (b) 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 second sentence of such Section. Β To the Knowledge of Mountain, there exists no fact, circumstance, or reason why the requisite Consents referred to in Section 9.1(b) of this Agreement cannot be received in a timely manner without the imposition of any condition or restriction of the type described in the second sentence of such Section 9.1(b).
5.20
Charter Provisions. Β Each Mountain Company 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 the grant of any rights to any Person under the Articles of Incorporation, Bylaws or other governing instruments of any Mountain Company or restrict or impair the ability of GB&T to vote, or otherwise to exercise the rights of a shareholder with respect to, shares of any Mountain Company that may be acquired or controlled by it.
5.21
State Anti-Takeover Laws. Β Each Mountain Company has taken all necessary action to exempt the transactions contemplated by this Agreement from any applicable "moratorium," "control share," "fair price," "business combination," or other anti-takeover laws and regulations of the State of Georgia including those laws contained within Sections 14-2-1110 et seq. and 14-2-1131 et seq. of the GBCC.
ARTICLE VI
REPRESENTATIONS AND WARRANTIES OF GB&T
GB&T hereby represents and warrants to Mountain as follows:
6.1
Organization, Standing, and Power. Β GB&T is a corporation duly organized, validly existing, and in good standing under the Laws of the State of Georgia, and is duly registered as a bank holding company under the BHC Act and under Georgia law. Β GB&T has the corporate power and authority to carry on its business as now conducted and to own, lease and operate its Assets. Β GB&T is duly qualified or licensed to transact business as a foreign corporation in good standing in the states of the United States and foreign jurisdictions 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 GB&T.
6.2
Authority; No Breach By Agreement.
(a)
Subject to the actions required for listing by NASDAQ of the shares to be issued to Mountain shareholders, which GB&T shall promptly undertake, GB&T has the corporate power and authority necessary to execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. Β 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 GB&T. Β Subject to the approval of this Agreement by the holders of a majority of the outstanding shares of GB&T, this Agreement represents a legal, valid and binding obligation of GB&T, enforceable against GB&T 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)
Except as described in Section 6.2 of the GB&T Disclosure Memorandum, neither the execution and delivery of this Agreement by GB&T, nor the consummation by GB&T of the transactions contemplated hereby, nor compliance by GB&T with any of the provisions hereof will (i) conflict with or result in a breach of any provision of GB&T's Articles of Incorporation or Bylaws, 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 GB&T Company under, any Contract or Permit of any GB&T Company, 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 GB&T, or (iii) subject to receipt of the requisite approvals referred to in Section 9.1(b) of this Agreement, violate any Law or Order applicable to any GB&T Company or any of their respective 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 GB&T, no notice to, filing with, or Consent of, any public body or authority is necessary for the consummation by GB&T of the Merger and the other transactions contemplated in this Agreement.
Β
6.3
Capital Stock.
(a)
The authorized capital stock of GB&T consists of 20,000,000 shares of GB&T Common Stock, of which 12,782.397 shares were issued and outstanding as of the date of this Agreement. Β All of the issued and outstanding shares of GB&T Common Stock are, and all of the shares of GB&T Common Stock to be issued in exchange for shares of Mountain Common Stock upon consummation of the Merger, 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 GBCC or otherwise. Β None of the outstanding shares of GB&T Common Stock have been, and none of the shares of GB&T Common Stock to be issued in exchange for shares of Mountain Common Stock upon consummation of the Merger will be, issued in violation of any preemptive rights of the current or past shareholders of GB&T or any other party.
(b)
[Reserved]
(c)
Except as set forth in Sections 6.3(a) of this Agreement, or as disclosed in Section 6.3(c) of the GB&T Disclosure Memorandum, there are no other shares of capital stock or other equity securities of GB&T outstanding and no outstanding Rights relating to the capital stock of GB&T.
6.4
GB&T Subsidiaries. Β GB&T has disclosed in Section 6.4 of the GB&T Disclosure Memorandum all of the GB&T Subsidiaries as of the date of this Agreement. Β Except as disclosed in Section 6.4 of the GB&T Disclosure Memorandum, GB&T owns all of the issued and outstanding shares of capital stock of each GB&T Subsidiary. Β No equity securities of any GB&T Subsidiary are or may become required to be issued (other than to another GB&T Company) by reason of any Rights, and there are no Contracts by which any GB&T Subsidiary is bound to issue (other than to another GB&T Company) additional shares of its capital stock or Rights, or by which any GB&T Company is or may be bound to transfer any shares of the capital stock of any GB&T Subsidiary (other than to another GB&T Company). There are no Contracts relating to the rights of any GB&T Company to vote or to dispose of any shares of the capital stock of any GB&T Subsidiary. All of the shares of capital stock of each GB&T Subsidiary held by a GB&T Company are fully paid and nonassessable under the applicable Law of the jurisdiction in which such Subsidiary is incorporated or organized and are owned by GB&T free and clear of any Lien. Β Each GB&T Subsidiary is either a bank, a savings association, a corporation or a limited liability company and is duly organized, validly existing, and (as to corporations) in good standing under the Laws of the jurisdiction in which it is 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. Β Each GB&T Subsidiary is duly qualified or licensed to transact business as a foreign corporation in good standing in the states of the United States and foreign jurisdictions 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 GB&T. Β Each GB&T 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, as appropriate.
6.5
Financial Statements. Β GB&T has included in Section 6.5 of the GB&T Disclosure Memorandum copies of all GB&T Financial Statements for periods beginning January 1, 2001 and ending prior to the date hereof and will deliver to Mountain copies of all GB&T Financial Statements prepared subsequent to the date hereof. Β The GB&T Financial Statements (as of the dates thereof and for the periods covered thereby) (a) are, or if dated after the date of this Agreement will be, in accordance with the books and records of the GB&T Companies, which are or will be, as the case may be, complete and correct and which have been or will have been, as the case may be, maintained in accordance with good business practices, and (b) present or will present, as the case may be, fairly the consolidated financial position of the GB&T Companies as of the dates indicated and the consolidated results of operations, changes in shareholders' equity, and cash flows of the GB&T Companies for the periods indicated, in accordance with GAAP (subject to exceptions as to consistency specified therein or as may be indicated in the notes thereto or, in the case of interim financial statements, to normal recurring year-end adjustments that are not Material in amount or effect).
6.6
Absence of Undisclosed Liabilities. Β Β No GB&T Company has any Liabilities that are reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on GB&T, except Liabilities which are accrued or reserved against in the consolidated balance sheets of GB&T as of September 30, 2005, included in the GB&T Financial Statements or reflected in the notes thereto. Β No GB&T Company has incurred or paid any Liability since September 30, 2005, except for such Liabilities incurred or paid in the ordinary course of business consistent with past business practice and which are not reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on GB&T.
6.7
Absence of Certain Changes or Events. Β Since September 30, 2005, except as disclosed in Section 6.7 of the GB&T Disclosure Memorandum, (a) 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 GB&T, and (b) the GB&T 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 GB&T provided in Article VII of this Agreement.
6.8
Tax Matters.
(a)
All Tax returns required to be filed by or on behalf of any of the GB&T Companies have been timely filed or requests for extensions have been timely filed, granted, and have not expired, except to the extent that all such failures to file, taken together, are not reasonably likely to have a Material Adverse Effect on GB&T, and all returns filed are complete and accurate to the Knowledge of GB&T. All Taxes shown on filed returns have been paid or adequate provision for payment thereof has been made. As of the date of this Agreement, to the Knowledge of GB&T, 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 GB&T, except as reserved against in the GB&T Financial Statements delivered prior to the date of this Agreement or as disclosed in Section 6.8(a) of the GB&T Disclosure Memorandum. All Taxes and other Liabilities due with respect to completed and settled examinations or concluded Litigation have been paid.
(b)
Except as disclosed in Section 6.8(b) of the GB&T Disclosure Memorandum, none of the GB&T Companies has executed an extension or waiver of any statute of limitations on the assessment or collection of any Tax due that is currently in effect, and no unpaid tax deficiency has been asserted in writing against or with respect to any GB&T Company, which deficiency is reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on GB&T.
(c)
Adequate provision for any Taxes due or to become due for any of the GB&T Companies for the period or periods through and including the date of the respective GB&T Financial Statements has been made and is reflected on such GB&T Financial Statements.
(d)
Deferred Taxes of the GB&T Companies have been provided for in accordance with GAAP.
(e)
Each of the GB&T Companies is in compliance with, and its records contain all information and documents (including, without limitation, properly completed IRS 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 GB&T.
6.9
Allowance for Possible Loan Losses. Β The Allowance shown on the consolidated balance sheets of GB&T included in the most recent GB&T Financial Statements dated prior to the date of this Agreement was, and the Allowance shown on the consolidated balance sheets of GB&T included in the GB&T Financial Statements as of dates subsequent to the execution of this Agreement will be, as of the dates thereof, adequate (within the meaning of GAAP and applicable regulatory requirements or guidelines) to provide for losses relating to or inherent in the loan and lease portfolios (including accrued interest receivables) of the GB&T Companies and other extensions of credit (including letters of credit and commitments to make loans or extend credit) by the GB&T Companies as of the dates thereof except where the failure of such Allowance to be so adequate is not reasonably likely to have a Material Adverse Effect on GB&T.
6.10
Assets. Β Except as disclosed in Section 6.10 of the GB&T Disclosure Memorandum or as disclosed or reserved against in the GB&T Financial Statements, the GB&T Companies have good and marketable title free and clear of all Liens, to all of their respective Assets indicated as owned by the respective GB&T Company as of the date of the respective GB&T statement. Β All Material tangible properties used in the businesses of the GB&T Companies are in good condition, reasonable wear and tear excepted and are usable in the ordinary course of business consistent with GB&Tβs past practices. Β All Assets which are Material to the business of the GB&T Companies and held under leases or subleases by any of the GB&T Companies 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 creditorsβ 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. Β The policies of fire, theft, liability any other insurance maintained with respect to the Assets or businesses of the GB&T Companies provide adequate coverage under current industry practices against loss or Liability, and the fidelity and blanket bonds in effect as to which any of the GB&T Companies is a named insured are reasonably sufficient. Β The Assets of the GB&T Companies include all assets required to operate the business of the GB&T Companies as presently conducted. Β GB&T has adequate financial resources to consummate the transactions contemplated by this Agreement.
6.11
Environmental Matters. Β Except as disclosed in Section 6.11 of the GB&T Disclosure Memorandum:
(a)
To the Knowledge of GB&T, each GB&T Company, its Participation Facilities and its Loan Properties are, and have been, in compliance with all Environmental Laws, except for noncompliance which is not reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on GB&T.
(b)
There is no Litigation pending or to the Knowledge of GB&T threatened before any court, governmental agency or authority or other forum in which any GB&T Company or, to the Knowledge of GB&T, 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 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 a site owned, leased or operated by any GB&T Company or any of its Loan Properties or Participation Facilities, except for such Litigation pending or threatened the resolution of which Β is not reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on GB&T and to the Knowledge of GB&T, there is no reasonable basis for any such Litigation.
(c)
To the Knowledge of GB&T, there have been no releases of Hazardous Material in, on, under or affecting any Participation Facility or Loan Property, except such as are not reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on GB&T.
6.12
Compliance with Laws. Β Each GB&T Company has in effect all Permits necessary for it to own, lease or operate its 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 GB&T, 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 GB&T. Except as disclosed in Section 6.12 of the GB&T Disclosure Memorandum, no GB&T Company:
(a)
is 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 GB&T; and
(b)
has 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 any GB&T Company 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 GB&T, (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 GB&T, or (iii) requiring any GB&T Company 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.
6.13
Labor Relations. Β No GB&T Company is the subject of any Litigation asserting that it or any other GB&T Company has committed an unfair labor practice (within the meaning of the National Labor Relations Act or comparable state law) or seeking to compel it or any other GB&T Company to bargain with any labor organization as to wages or conditions of employment, nor is there any strike or other labor dispute involving any GB&T Company, pending or, to its Knowledge, threatened, nor, to its Knowledge, is there any activity involving any GB&T Company's employees seeking to certify a collective bargaining unit or engaging in any other organization activity.
6.14
Employee Benefit Plans. Β
(a)
Β GB&T has disclosed in Section 6.14 of the GB&T Disclosure Memorandum and delivered or made available to Mountain 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, without limitation, βemployee benefit plansβ 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 any GB&T Company or Affiliate thereof 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 βGB&T Benefit Planβ). Β Any of the GB&T Benefit Plans which is an βemployee pension benefit planβ, as that term is defined in Section 3(2) of ERISA, is referred to herein as a βGB&T ERISA Planβ. Β Each GB&T ERISA Plan which is also a βdefined benefit planβ (as defined in Section 414(j) of the Internal Revenue Code) is referred to herein as a βGB&T Pension Planβ. Β No GB&T Pension Plan is or has been a multi-employer plan within the meaning of Section 3(37) of ERISA.
(b)
All GB&T 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 Mountain. Β Each GB&T 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 GB&T is not aware of any circumstances likely to result in revocation of any such favorable determination letter. Β To the Knowledge of GB&T, no GB&T Company nor any other party has engaged in a transaction with respect to any GB&T Benefit Plan that, assuming the taxable period of such transaction expired as of the date hereof, would subject any GB&T Company to a tax or penalty 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 GB&T.
(c)
Neither GB&T nor any ERISA Affiliate of GB&T maintains an βemployee pension benefit planβ, within the meaning of Section 3(2) of ERISA that is or was subject to Title IV of ERISA.
(d)
Neither GB&T nor any ERISA Affiliate of GB&T has any past, present or future obligation or liability to contribute to any multi-employer plan, as defined in Section 3(37) of ERISA.
(e)
Except as disclosed in Section 6.14(e) of the GB&T Disclosure Memorandum, (i) no GB&T Company has any obligations for retiree health and live benefits under any of the GB&T Benefit Plans, except as required by Section 601 of ERISA and Section 4980B of the Code; (ii) there are no restrictions on the rights of any GB&T Company to amend or terminate any such Plan; and (iii) any amendment or termination of any such Plan will not cause any GB&T Company to incur any Liability that is reasonably likely to have a Material Adverse Effect on GB&T. Β
(f)
Except as disclosed in Section 6.14(f) of the GB&T Disclosure Memorandum, neither the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby will (i) result in any payment (including, without limitation, severance, unemployment compensation, golden parachute or otherwise) becoming due to any director or any employee of any GB&T Company from any GB&T Company under any GB&T Benefit Plan or otherwise, (ii) increase any benefits otherwise payable under any GB&T Benefit Plan, or (iii) result in any acceleration of the time of payment or vesting of any such benefit. Β
(g)
The actuarial present values of all accrued deferred compensation entitlements (including, without limitation, entitlements under any executive compensation, supplemental retirement, or employment agreement) of employees and former employees of any GB&T Company and their respective beneficiaries have been fully reflected on the GB&T Financial Statements to the extent required by and in accordance with GAAP. Β
(h)
GB&T and each ERISA Affiliate of GB&T has complied with the continuation of coverage requirements of Section 1001 of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and ERISA Sections 601 through 608 in a manner that will not cause any GB&T Company to incur any Liability that is reasonably likely to have a Material Adverse Effect on GB&T.
(i)
Except as disclosed in Section 6.14(i) of the GB&T Disclosure Memorandum, neither GB&T nor any ERISA Affiliate of GB&T is obligated, contingently or otherwise, under any agreement to pay any amount which would be treated as a βparachute paymentβ, as defined in Section 280G(b) of the Internal Revenue Code (determined without regard to Section 280G(b) (2) (A) (ii) of the Internal Revenue Code). Β
(j)
Other than routine claims for benefits, to the Knowledge of GB&T, there are no actions, audits, investigations, suits or claims pending against any GB&T Benefit Plan, any trust or other funding agency created thereunder, or against any fiduciary of any GB&T Benefit Plan or against the assets of any GB&T Benefit Plan.
6.15
Material Contracts. Β Except as disclosed in Section 6.15 of the GB&T Disclosure Memorandum or otherwise reflected in the GB&T Financial Statements, none of the GB&T Companies, nor any of their respective Assets, businesses or operations, is a party to, or is bound or affected by, or receives benefits under, (a) any Contract relating to the borrowing of money by any GB&T Company or the guarantee by any GB&T Company of any such obligation (other than Contracts evidencing deposit liabilities, purchases of federal funds, Federal Home Loan Bank advances, fully-secured repurchase agreements, trade payables, and Contracts relating to borrowings or guarantees made in the ordinary course of business), and (b) any other Contract (excluding this Agreement) or amendment thereto that is required to be filed as an Exhibit to a Form 10-K or Form 10-Q filed by GB&T with the SEC as of the date of this Agreement that has not been filed as an Exhibit to any GB&T Form 10-K or 10-Q filed with the SEC (the "GB&T Contracts"). Β None of the GB&T Companies is in Default under any GB&T Contract, other than Defaults which are not reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on GB&T.
6.16
Legal Proceedings. Β Except as disclosed in Section 6.16 of the GB&T Disclosure Memorandum, there is no Litigation instituted or pending, or, to the Knowledge of GB&T, threatened (or unasserted but considered probable of assertion and which if asserted would have at least a reasonable probability of an unfavorable outcome) against any GB&T Company, 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 GB&T, nor are there any Orders of any Regulatory Authorities, other governmental authorities, or arbitrators outstanding against any GB&T Company, that are reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on GB&T.
6.17
Reports. Β Except as disclosed in the GB&T Disclosure Memorandum since January 1, 2001, each GB&T Company has timely filed all reports and statements, together with any amendments required to be made with respect thereto, that it was required to file with (a) the SEC, including, but not limited to, Forms 10-KSB, Forms 10-QSB, Forms 8-K, and Proxy Statements, (b) other Regulatory Authorities, and (c) any applicable state securities or banking 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 GB&T). As of their respective dates, each of such reports and documents, including the financial statements, Exhibits, and schedules thereto, complied in all Material respect with all applicable Laws. Β As of its respective date, each such report and document to GB&T's Knowledge did not, in any 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.
6.18
Statements True and Correct. Β No statement, certificate, instrument or other writing furnished or to be furnished by any GB&T Company or any Affiliate thereof to Mountain pursuant to this Agreement or any other document, agreement or instrument referred to herein contains or will contain any untrue statement of Material fact or will omit to state a Material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. Β None of the information supplied or to be supplied by any GB&T Company or any Affiliate thereof for inclusion in the Registration Statement to be filed by GB&T 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. Β None of the information supplied or to be supplied by any GB&T Company or any Affiliate thereof for inclusion in the Proxy Statement to be mailed to GB&T shareholders in connection with the GB&T Shareholdersβ Meeting, and any other documents to be filed by a GB&T Company or any Affiliate thereof 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 GB&T, 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 GB&T Shareholdersβ Meeting, be false or misleading with respect to any Material fact, or omit to state any Material fact necessary to correct any statement in an earlier communication with respect to the solicitation of any proxy for the GB&T Shareholdersβ Meeting. Β All documents that any GB&T Company or any Affiliate thereof are 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.
6.19
Tax and Regulatory Matters. Β No GB&T Company or any Affiliate thereof has taken any action, or agreed to take any action, or has any Knowledge of any fact or circumstance that is reasonably likely to (a) prevent the transactions contemplated hereby, including the Merger, from qualifying for treatment as a reorganization within the meaning of Section 368(a) of the Internal Revenue Code, or (b) materially impede or delay receipt of any Consents of Regulatory Authorities referred to in Section 9.1(b) of this Agreement. Β To the Knowledge of GB&T, there exists no fact, circumstance, or reason why the requisite Consents referred to in Section 9.1(b) of this Agreement cannot be received in a timely manner without the imposition of any condition or restriction of the type described in the second sentence of such Section 9.1(b).
6.20
Charter Provisions. Β Each GB&T Company 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 the grant of any rights to any Person under the Articles of Incorporation, Bylaws or other governing instruments of any GB&T Company or restrict or impair the ability of GB&T to vote, or otherwise to exercise the rights of a shareholder with respect to, shares of any GB&T Company that may be acquired or controlled by it.
ARTICLE VII
CONDUCT OF BUSINESS PENDING CONSUMMATION
7.1
Affirmative Covenants of Mountain. Β Unless the prior written consent of GB&T shall have been obtained, and except as otherwise contemplated herein or disclosed in the Mountain Disclosure Memorandum, Mountain shall, and shall cause each of its Subsidiaries, from the date of this Agreement until the Effective Time or termination of this Agreement: (a) to operate its business in the usual, regular and ordinary course; (b) to preserve intact its business organization and Assets and maintain its rights and franchises; (c) to use its reasonable efforts to cause its representations and warranties to be correct at all times; and (d) to take no action which would reasonably be expected to (i) 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) or 9.1(c) of this Agreement or (ii) adversely affect in any Material respect the ability of either Party to perform its covenants and agreements under this Agreement.
7.2
Negative Covenants of Mountain. Β Except as disclosed in the Mountain Disclosure Memorandum, from the date of this Agreement until the earlier of the Effective Time or the termination of this Agreement, Mountain covenants and agrees that it will not do or agree or commit to do, or permit any of its Subsidiaries to do or agree or commit to do, any of the following without the prior written consent of the chief executive officer of GB&T, which consent shall not be unreasonably withheld:
(a)
amend the Articles of Incorporation, Bylaws or other governing instruments of any Mountain Company, or
(b)
incur any additional debt obligation or other obligation for borrowed money (other than indebtedness of a Mountain Company to another Mountain Company) in excess of an aggregate of $50,000 (for the Mountain Companies on a consolidated basis) except in the ordinary course of the business of the Mountain Companies consistent with past practices (which shall include, for any of its Subsidiaries, 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 any Mountain Company of any Lien or permit any such Lien to exist (other than in connection with deposits, repurchase agreements, bankers acceptances, Federal Home Loan Bank advances, "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 that are disclosed in the Mountain Disclosure Memorandum); 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 Mountain Company, or declare or pay any dividend or make any other distribution in respect of Mountain'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 Section 7.2(d) of the Mountain Disclosure Memorandum, issue, sell, pledge, encumber, authorize the issuance of or enter into any Contract to issue, sell, pledge, encumber, or authorize the issuance of or otherwise permit to become outstanding, any Β additional shares of Mountain Common Stock or any other capital stock of any Mountain Company, or any stock appreciation rights, or any option, warrant, conversion, or other right to acquire any such stock, or any security convertible into any such stock; or
(e)
except as disclosed in Section 7.2(e) of the Mountain Disclosure Memorandum, adjust, split, combine or reclassify any capital stock of any Mountain Company or issue or authorize the issuance of any other securities in respect of or in substitution for shares of Mountain Common Stock or sell, lease, mortgage or otherwise dispose of or otherwise encumber (i) any shares of capital stock of any Mountain Subsidiary (unless any such shares Β of stock are sold or otherwise transferred to another Mountain Company) or (ii) any Asset having a book value in excess of $25,000 other than in the ordinary course of business for reasonable and adequate consideration; or
(f)
except for purchases of U.S. Treasury securities or U.S. Government agency securities or securities of like maturity or grade or general obligations of states and municipalities, 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 other than a wholly-owned Mountain Subsidiary; or otherwise acquire direct or indirect control over any Person, other than in connection with (i) foreclosures in the ordinary course of business, or (ii) acquisitions of control in its fiduciary capacity; or
(g)
grant any increase in compensation or benefits to any employees whose annual salary exceeds $35,000 of any Mountain Company (including such discretionary increases as may be contemplated by existing employment agreements), except in accordance with past practice or previously approved by the Board of Directors of Mountain, in each case as disclosed in Section 7.2(g) of the Mountain Disclosure Memorandum or as required by Law; 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 disclosed in Section 7.2(g) of the Mountain Disclosure Memorandum; enter into or amend any severance agreements with officers of any Β Mountain Company; grant any general increase in compensation to all employees except as disclosed in Section 7.2(g) of the Mountain Disclosure Memorandum; grant any increase in fees or other increases in compensation or other benefits to directors of any Mountain Company; 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 any Mountain Company and any Person (unless such amendment is required by Law) that the Mountain Company 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 any Mountain Company or make any material change in or to any existing employee benefit plans of any Mountain Company 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, settle any Litigation involving any Liability of any Mountain Company for money damages in excess of $50,000 or which imposes Material restrictions upon the operations of any Mountain Company;
(l)
except in the ordinary course of business, modify, amend or terminate any Material Contract or waive, release, compromise or assign any Material rights or claims.
7.3
(a) Β
Affirmative Covenants of GB&T. Unless the prior written consent of Mountain shall have been obtained, and except as otherwise contemplated herein or as disclosed in the GB&T Disclosure Memorandum, GB&T shall, and shall cause each of its Subsidiaries to, from the date of this Agreement until the Effective Time or termination of this Agreement: Β (a) operate its business in the usual, regular and ordinary course; (b) preserve intact its business organization and Assets and maintain its rights and franchises; (c) use its reasonable efforts to cause its representations and warranties to be correct at all times; and (d) take no action which would reasonably be expected to (i) 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) or 9.1(c) of this Agreement or (ii) adversely affect in any Material respect the ability of either Party to perform its covenants and agreements under this Agreement.
(b)
Negative Covenants of GB&T. Β GB&T will not amend its Articles of Incorporation or bylaws, or take any other action with respect to its capital structure, in each case in a manner which is adverse to and discriminates against the holders of Mountain 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 or any of its Subsidiaries which (a) is reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on it or (b) is reasonably likely to cause or constitute a Material breach of any of its representations, warranties, or covenants contained herein, and to use its reasonable efforts to prevent or promptly to remedy the same.
7.5
Reports. Β Each Party and its Subsidiaries shall file all reports required to be filed by it with Regulatory Authorities between the date of this Agreement and the Effective Time and shall deliver to the other Party copies of all such reports promptly after the same are filed.
ARTICLE VIII
ADDITIONAL AGREEMENTS
8.1
Registration Statement; Proxy Statement; Shareholder Approval.
(a)
As soon as reasonably practicable after execution of this Agreement, GB&T shall file the Registration Statement with the SEC, and shall use its reasonable 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 GB&T Common Stock upon consummation of the Merger. Β Mountain shall furnish all information concerning it and the holders of its capital stock as GB&T may reasonably request in connection with such action.
(b)
Mountain shall call a shareholders' meeting (the βMountain Shareholdersβ Meetingβ), to be held as soon as reasonably 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 Mountain deems appropriate.
(c)
In connection with the Mountain Shareholders' Meeting, (i) GB&T shall prepare and file with the SEC on Mountainβs behalf a Proxy Statement (which shall be included in the Registration Statement) and mail it to Mountain's 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 Mountain shall recommend (subject to compliance with the fiduciary duties of the members of the Board of Directors as advised by counsel) to their shareholders the approval of this Agreement and (iv) the Board of Directors and officers of Mountain shall use their reasonable efforts to obtain such shareholders' approval (subject to compliance with their fiduciary duties as advised by counsel).
8.2
Exchange Listing. GB&T shall list, as of the Effective Time, on the NASDAQ the shares of GB&T Common Stock to be issued to the holders of Mountain Common Stock pursuant to the Merger.
8.3
Applications. Β GB&T shall promptly prepare and file, and Mountain shall cooperate in the preparation and, where appropriate, filing of, applications with the Board of Governors of the Federal Reserve System and the Georgia Department of Banking and Finance seeking the requisite Consents necessary to consummate the transactions contemplated by this Agreement. Β GB&T shall permit Mountain to review (and approve with respect to information relating to Mountain) such applications prior to filing same and shall provide copies of such applications to Mountain and its counsel.
8.4
Filings with State Offices. Β Upon the terms and subject to the conditions of this Agreement, GB&T shall promptly execute and file the Georgia Certificate of Merger with the Secretary of State of the State of Georgia in connection with the Closing.
8.5
Agreement as to Efforts to Consummate. Β Subject to the terms and conditions of this Agreement, each Party agrees to use, and to cause its Subsidiaries to use, its reasonable 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, as promptly as practicable so as to permit consummation of the Merger at the earliest possible date and to otherwise enable consummation of the transactions contemplated hereby and shall cooperate fully with the other Party hereto to that end (it being understood that any amendments to the Registration Statement filed by GB&T in connection with the GB&T Common Stock to be issued in the Merger shall not violate this covenant), including, without limitation, using its reasonable 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. Β Each Party shall use, and shall cause each of its Subsidiaries to use, its reasonable efforts to obtain all Consents necessary or desirable for the consummation of the transactions contemplated by this Agreement.
8.6
Investigation and Confidentiality.
(a)
Prior to the Effective Time, each Party will keep the other Party advised of all Material developments relevant to its business and to consummation of the Merger and shall permit the other Party to make or cause to be made such investigation of the business and properties of it and its Subsidiaries and of their respective financial and legal conditions as the other Party reasonably requests, provided that such investigation shall be reasonably related to the transactions contemplated hereby and shall not interfere unnecessarily with normal operations. No investigation by a Party shall affect the representations and warranties of the other Party.
(b)
Each Party shall, and shall cause its advisers and agents to, maintain the confidentiality of all information furnished to it by the other Party concerning its and its Subsidiaries' businesses, operations, and financial positions and shall not use such information for any purpose except in furtherance of the transactions contemplated by this Agreement. Β If this Agreement is terminated prior to the Effective Time, each Party shall promptly return or certify the destruction of all documents and copies thereof and all work papers containing information received from the other Party.
(c)
Each Party agrees to give the other Party notice as soon as practicable after any determination by it of any fact or occurrence relating to the other Party which it has discovered through the course of its investigation and which represents, or is reasonably likely to represent, either a Material breach of any representation, warranty, covenant or agreement of the other Party or which has had or is reasonably likely to have a Material Adverse Effect on the other Party.
8.7
Press Releases. Prior to the Effective Time, GB&T and Mountain shall agree 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, however, 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
Acquisition Proposals. Β Except with respect to this Agreement and the transactions contemplated hereby, neither Mountain nor any Affiliate thereof nor any investment banker, attorney, accountant or other representative (collectively, "Representatives") retained by Mountain shall directly or indirectly solicit any Acquisition Proposal by any Person. Β Except to the extent necessary to comply with the fiduciary duties of Mountain's Board of Directors as advised by counsel, neither Mountain nor any Affiliate or Representative thereof shall furnish any non-public information that it is not legally obligated to furnish, negotiate with respect to, or enter into any Contract with respect to, any Acquisition Proposal, but Mountain 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. Β Mountain shall promptly notify GB&T orally and in writing in the event that it receives any inquiry or proposal relating to any such transaction. Β Unless the prior written consent of GB&T is obtained, Mountain shall (a) 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 (b) direct and use its reasonable efforts to cause all of its Representatives not to engage in any of the foregoing.
8.9
Accounting and Tax Treatment. Β Each of the Parties undertakes and agrees to use its reasonable efforts to cause the Merger to qualify, 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. Β
8.10
Agreement of Affiliates. Β Mountain has disclosed in Section 8.10 of the Mountain Disclosure Memorandum all Persons whom it reasonably believes is an "affiliate" of Β Mountain for purposes of Rule 145 under the 1933 Act. Β Mountain shall use its reasonable efforts to cause each such Person to deliver to GB&T and Mountain, not later than thirty (30) days after the date of this Agreement, a written agreement, substantially in the form of Exhibit 1, providing that such Person will not sell, pledge, transfer or otherwise dispose of the shares of Mountain 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 GB&T 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. GB&T shall be entitled to place restrictive legends upon certificates for shares of GB&T Common Stock issued to Affiliates of Mountain pursuant to this Agreement to enforce the provisions of this Section 8.10. GB&T shall not be required to maintain the effectiveness of the Registration Statement under the 1933 Act for the purposes of resale of GB&T Common Stock by such Affiliates.
8.11
Employee Benefits, Contracts and Deferred Compensation Plan.
(a)
Following the Effective Time, GB&T shall provide generally to officers and employees of the Mountain Companies who continue employment with GB&T or its Subsidiaries following the Effective Time employee benefits under employee benefit plans, on terms and conditions which when taken as a whole are substantially similar to those currently provided by the GB&T Companies to their similarly situated officers and employees. For purposes of participation and vesting of benefits under such employee benefit plans, the service of the employees of the Mountain Companies prior to the Effective Time shall be treated as service with a GB&T Company participating in such employee benefit plans, provided that, with respect to any employee benefit plan where the benefits are funded through insurance, the granting of such benefits shall be subject to the consent of the appropriate insurer and may be conditioned upon an employee's participation in a Mountain Benefit Plan of the same type immediately prior to the Effective Time. Β GB&T shall waive, under its medical plan, any pre-existing condition exclusion for any Mountain employee who continues in employment after the Effective Time and becomes covered under such medical plan, to the extent that such pre-existing condition would have been covered under the comparable Mountain employee benefit plan and the individual with the pre-existing condition was covered under such plan.
(b)
GB&T and its Subsidiaries also shall honor in accordance with their terms all employment, severance, consulting and other compensation Contracts and deferred compensation plans disclosed in Section 8.11 of the Mountain Disclosure Memorandum to GB&T between any Mountain Company and any current or former director, officer, or employee thereof and all provisions for vested benefits accrued through the Effective Time under the Mountain Benefit Plans. GB&T acknowledges and agrees that pursuant to the Merger it shall assume and have the obligations and liabilities set out in those certain Employment Agreements described on Exhibit 5 attached hereto, if any (the βEmployment Agreementsβ). Β
8.12
D&O Insurance Coverage and Indemnification. Β Immediately prior to Closing, Mountain shall obtain from its regular insurance carrier βtailβ coverage for its officers and directors under its current policy terms and conditions, the expense for which shall be paid by Mountain, but is pre-approved by GB&T. Β Further, GB&T shall assume all liability (to the extent Mountain was so liable) for claims for indemnification arising under Mountainβs Articles of Incorporation or Bylaws or under any indemnification contract disclosed to GB&T, as existing on November 30, 2005.
ARTICLE IX
CONDITIONS PRECEDENT TO OBLIGATIONS TO CONSUMMATE
9.1
Conditions to Obligations of Each Party. Β 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 11.6 of this Agreement:
(a)
Shareholder Approval. Β The shareholders of Mountain shall have approved this Agreement, and the consummation of the transactions contemplated hereby, including the Merger, as and to the extent required by Law, NASDAQ or by the provisions of any governing instruments, and the Shareholders shall also have approved an amendment to the Mountain Stock Incentive Plan so as to provide for full vesting on a βchange of controlβ of Mountain to the extent such plan does not so already provide.
(b)
Regulatory Approvals. Β Β 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. Β 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, without limitation, 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 as to render inadvisable the consummation of the Merger.
(c)
Consents and Approvals. Β 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 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. Β No Consent so obtained which is necessary to consummate the transactions contemplated hereby shall be conditioned or restricted in a manner 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 as to render inadvisable the consummation of the Merger.
(d)
Registration Statement. Β The Registration Statement shall be effective under the 1933 Act, no stop orders suspending the effectiveness of the Registration Statement shall have been issued, 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 GB&T Common Stock issuable pursuant to the Merger shall have been received.
(e)
Exchange Listing. Β The shares of GB&T Common Stock issuable pursuant to the Merger shall have been approved for listing on the NASDAQ.
(f)
Tax Matters. Β GB&T and Mountain shall have received a written opinion of counsel from Xxxxxx, Xxxxxx & Xxxxx, LLP, in form reasonably satisfactory to them (the "Tax Opinion"), to the effect that for federal income tax purposes (i) the Merger will constitute a reorganization within the meaning of Section 368(a) of the Internal Revenue Code, (ii) the exchange in the Merger of Mountain Common Stock for GB&T Common Stock will not give rise to gain or loss to the shareholders of Mountain with respect to such exchange (except to the extent of any cash received), (iii) neither GB&T nor Mountain will recognize gain or loss as a consequence of the Merger (except for income and deferred gain recognized pursuant to Treasury regulations issued under Section 1502 of the Internal Revenue Code); and (iv) the assumption by GB&T of Mountain Options qualifying as βincentive stock optionsβ under Section 422 of the Internal Revenue Code will satisfy the requirements of Section 424(a) of the Internal Revenue Code and will not constitute a modification of such options under Section 424(h) of the Internal Revenue Code. Β In rendering such Tax Opinion, counsel shall be entitled to rely upon representations of officers of GB&T and Mountain reasonably satisfactory in form and substance to such counsel.
(g)
Affiliate Agreements. Β The Parties shall have received from each affiliate of Mountain the affiliates letter referred to in Section 8.10 hereof.
Β 9.2
Conditions to Obligations of GB&T. Β The obligations of GB&T 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 GB&T pursuant to Section 11.6(a) of this Agreement:
(a)
Representations and Warranties. Β For purposes of this Section 9.2(a), the accuracy of the representations and warranties of Mountain set forth or referred to 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). Β The representations and warranties of Mountain set forth in Section Five of this Agreement shall be true and correct in all Material respects (except for inaccuracies which are de minimis in amount). Β There shall not exist inaccuracies in the representations and warranties of Mountain set forth in this Agreement such that the aggregate effect of such inaccuracies would have, or is reasonably likely to have, a Material Adverse Effect on Mountain; 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. Β Each and all of the agreements and covenants of Mountain 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. Β Mountain shall have delivered to GB&T (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 Sections 9.2(a) and 9.2(b) of this Agreement have been satisfied, and (ii) certified copies of resolutions duly adopted by Mountainβs 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 consummation of the transactions contemplated hereby, all in such reasonable detail as GB&T and its counsel shall request.
(d)
Opinion of Counsel. Β Mountain shall have delivered to GB&T an opinion of Xxxxxx Xxxxxxxxx LLP, counsel to Mountain, dated as of the Effective Time, in form reasonably satisfactory to GB&T, as to the matters set forth in Exhibit 2 hereto.
(e)
Claims/Indemnification Letters. Β Each of the directors and officers of Mountain shall have executed and delivered to GB&T letters in substantially the form of Exhibit 3 hereto.
(f)
Litigation. Β No preliminary or permanent injunction or other order by any federal or state court which prevents the consummation of the Merger shall have been issued and shall remain in effect, nor any action therefor initiated which, in the good faith judgment of the Board of Directors of GB&T, is not in the best interests of the shareholders of GB&T to contest; and there shall not have been instituted or be pending any action or proceeding by any United States federal or state government or governmental agency or instrumentality (i) challenging or seeking to restrain or prohibit the consummation of the Merger or seeking Material damages in connection with the Merger; or (ii) seeking to prohibit GB&T's or the Surviving Corporation's ownership or operation of all or a Material portion of GB&T's or Mountainβs business or assets, or compel GB&T or the Surviving Corporation to dispose of or hold separate all or a Material portion of GB&T's or Mountainβs business or assets as a result of the Merger, which, in any case, in the reasonable judgment of GB&T based upon a legal opinion from legal counsel, could result in the relief sought being obtained.
(g)
Support Agreements. Β Within ten (10) calendar days of the execution of this Agreement, each of the directors of Mountain shall have executed and delivered to GB&T a Support Agreement substantially in the form of Exhibit 6 to this Agreement.
(h)
Non-Compete Agreements. Β Noncompete Agreements shall have been entered into between all Mountain outside directors and GB&T substantially in the form of Exhibit 7 to this Agreement.
(i)
Employment Agreements. Β Employment Agreements shall have been entered into between GB&T, as Employer, and Xxxx Xxxxx, Xxxxxxx Xxxxxxxxxx, and Xxxxxx Xxxxx, Mountain employees substantially in the form of Exhibit 8 to this Agreement.
9.3
Conditions to Obligations of Mountain. Β The obligations of Mountain 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 Mountain pursuant to Section 11.6(b) of this Agreement:
(a)
Representations and Warranties. Β For purposes of this Section 9.3(a), the accuracy of the representations and warranties of GB&T set forth or referred to 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). Β There shall not exist inaccuracies in the representations and warranties set forth in this Agreement such that the aggregate effect of such inaccuracies would have, or is reasonably likely to have a Material Adverse Effect on GB&T; provided that, for purposes of this sentence only, those representations and warranties which are qualified by reference to "Material" or "Material Adverse Effect" shall be deemed not to include such qualifications.
(b)
Β Performance of Agreements and Covenants. Β Each and all of the agreements and covenants of GB&T 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. Β GB&T shall have delivered to Mountain (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 9.3(a) and 9.3(b) of this Agreement have been satisfied, and (ii) certified copies of resolutions duly adopted by GB&T'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 Mountain and its counsel shall request.
(d)
Opinion of Counsel. Β GB&T shall have delivered to Mountain an opinion of Xxxxxx, Xxxxxx & Xxxxx, LLP, counsel to GB&T, dated as of the Effective Time, in form reasonably acceptable to Mountain, as to matters set forth in Exhibit 4 hereto.
(e)
Intentionally Omitted.
(f)
Litigation. Β No preliminary or permanent injunction or other order by any federal or state court which prevents the consummation of the Merger shall have been issued and shall remain in effect, nor any action therefor initiated which, in the good faith judgment of the Board of Directors of Mountain, it is not in the best interests of the shareholders of Mountain to contest; and there shall not have been instituted or be pending any action or proceeding by any United States federal or state government or governmental agency or instrumentality (i) challenging or seeking to restrain or prohibit the consummation of the Merger or seeking material damages in connection with the Merger; or (ii) seeking to prohibit GB&T's or the Surviving Corporation's ownership or operation of all or a Material portion of GB&T's or Mountain's business or assets, or compel GB&T or the Surviving Corporation to dispose of or hold separate all or a Material portion of GB&T's or Mountain's business or assets as a result of the Merger, which, in any case, in the reasonable judgment of Mountain based upon a legal opinion from legal counsel, could result in the relief sought being obtained.
(g)
Change in Control Agreements. Β GB&T will honor the current change in control agreement between Xxxx Xxxxxx and Mountain and will fulfill Mountainβs obligations under said change in control agreement.
ARTICLE X
TERMINATION
10.1
Termination. Β Notwithstanding any other provision of this Agreement, and notwithstanding the approval of this Agreement by the shareholders of Mountain, or GB&T this Agreement may be terminated and the Merger abandoned at any time prior to the Effective Time:
(a)
By mutual consent of the Board of Directors of Mountain and the Board of Directors of GB&T; or
(b)
By the Board of Directors of either Party (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(a) of this Agreement in the case of Mountain and Section 9.3(a) in the case of GB&T or in Material breach of any covenant or agreement contained in this Agreement) in the event of a Material breach by the other Party of any representation or warranty contained in this Agreement which cannot be or has not been cured within thirty (30) days after the giving of written notice to the breaching Party of such breach and which breach would provide the non-breaching Party the ability to refuse to consummate the Merger under the standard set forth in Section 9.2(a) of this Agreement in the case of GB&T and Section 9.3(a) of this Agreement in the case of Mountain; or
(c)
By the Board of Directors of either Party (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(a) of this Agreement in the case of Mountain and Section 9.3(a) in the case of GB&T or in the Material breach of any covenant or other agreement contained in this Agreement) in the event of a Material breach by the other Party of any covenant or agreement contained in this Agreement which cannot be or has not been cured within thirty (30) days after the giving of written notice to the breaching Party of such breach; or
(d)
By the Board of Directors of either Party in the event (i) any Consent of any Regulatory Authority required for consummation of the Merger and the other transactions 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 Mountain fail to vote their approval of this Agreement and the transactions contemplated hereby as required by the GBCC 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 Party in the event that the Merger shall not have been consummated on or before June 30, 2006, but only 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 the Board of Directors of either Party (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(a) of this Agreement in the case of Mountain and Section 9.3(a) in the case of GB&T or in the Material breach of any covenant or other Β agreement contained in this Agreement) in the event that any of the conditions precedent to the obligations of such Party to consummate the Merger (other than as contemplated by Section 10.1(d) of this Agreement) cannot be satisfied or fulfilled by the date specified in Section 10.1(e) of this Agreement; or
(g)
By the Board of Directors of either party in accordance with the provisions of Section 3.1(c) hereof, dealing with stock price fluctuations.
10.2
Effect of Termination. Β 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 the provisions of this Section 10.2 and Article 11 and Section 8.6(b) of this Agreement shall survive any such termination and abandonment.
10.3
Non-Survival of Representations and Covenants.
The respective
representations, warranties, obligations, covenants, and agreements of the Parties shall not survive the Effective Time except for this Section 10.3 and Articles II, III, IV and XI and Sections 8.10, 8.11 and 8.12 of this Agreement.
ARTICLE XI
MISCELLANEOUS
11.1
Definitions. Β Except as otherwise provided herein, the capitalized terms set forth below (in their singular and plural forms as applicable) 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" shall mean any tender offer or exchange offer or any proposal for a merger (other than the Merger), acquisition of all of the stock or Assets of, or other business combination involving Mountain or any of its Subsidiaries or the acquisition of a substantial equity interest in, or a substantial portion of the Assets of Mountain or any of its Subsidiaries.
"Affiliate" of a Person shall mean: Β (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, or direct or indirect beneficial owner of any 10% or greater equity or voting interest of such Person; or (iii) any other Person for which a Person described in clause (ii) acts in such capacity.
"Agreement" shall mean this Agreement and Plan of Reorganization, including the Exhibits delivered pursuant hereto and incorporated herein by reference.
"Allowance" shall have the meaning provided in Section 5.9 of this Agreement.
"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 federal Bank Holding Company Act of 1956, as amended.
"Closing" shall mean the closing of the transactions contemplated hereby, as described in Section 1.2 of this Agreement.
"Closing Date" shall mean the date on which the Closing occurs.
"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 or oral agreement, arrangement, authorization, commitment, contract, indenture, instrument, lease, obligation, plan, practice, restriction, understanding or undertaking 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, Assets or business.
"Default" shall mean (a) any breach or violation of or default under any Contract, Order or Permit, (b) 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, Order or Permit, or (c) 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, Order or Permit.
βDesignated Officerβ shall be the officer of GB&T and Mountain who is designated by their respective Boards of Directors to make such decisions as are specified herein.
"Effective Time" shall mean the date and time at which the Merger becomes effective as defined in Section 1.3 of this Agreement.
"Environment" shall have the meaning specified in the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Β§ 9601(8).
"Environmental Laws" shall mean all Laws pertaining to pollution or protection of the Environment and which are administered, interpreted or enforced by the United States Environmental Protection Agency and state and local agencies with primary jurisdiction over pollution or protection of the environment, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Β§ 9601 et. seq., the Resource, Conservation and Recovery Act, 42 U.S.C. Β§ 6901 et. seq., the Toxic Substance Control Act, 15 U.S.C. Β§ 2601, et. seq., and all implementing regulations and state counterparts of such acts.
"ERISA" shall mean the Employee Retirement Income Security Act of 1974, as amended.
"ERISA Affiliate" shall refer to a relationship between entities such that the entities would, now or at any time in the past, constitute a "single employer" within the meaning of Section 414 of the Internal Revenue Code.
"ERISA Plan" shall have the meaning provided in Section 5.14 of this Agreement.
"Exchange Ratio" shall have the meaning provided in Section 3.1 of this Agreement.
"Exhibits" 1 through 8, inclusive (but excluding Exhibit 5 which has been intentionally omitted), shall mean the Exhibits so marked, copies of which are attached to this Agreement. Β 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.
"GAAP" shall mean generally accepted accounting principles, consistently
applied during the periods involved.
"GBCC" shall mean the Georgia Business Corporation Code.
"GB&T Common Stock" shall mean the no par value common stock of GB&T.
"GB&T Companies" shall mean, collectively, GB&T and all GB&T Subsidiaries.
"GB&T Disclosure Memorandum" shall mean the written information entitled "GB&T Disclosure Memorandum" delivered on or prior to the date of this Agreement to Mountain describing in reasonable detail the matters contained therein and, with respect to each disclosure made therein, specifically referencing each Section of this Agreement under which such disclosure is being made.
"GB&T Financial Statements" shall mean (a) the consolidated balance sheets (including related notes and schedules, if any) of GB&T as of December 31, 2003, 2004, and 2005, and the related statements of income, changes in shareholders' equity, and cash flows (including related notes and schedules, if any) for each of the three years ended December 31, 2003, 2004, and 2005, and (b) the consolidated balance sheets (including related notes and schedules, if any) of GB&T and related statements of income, changes in shareholders' equity, and cash flows (including related notes and schedules, if any) included in SEC Documents filed with respect to periods ended subsequent to December 31, 2005.
"GB&T Stock Plans" shall mean the existing stock option and other stock-based compensation plans of GB&T.
"GB&T Subsidiaries" shall mean the Subsidiaries of GB&T at the Effective Time.
"Georgia Certificate of Merger" shall mean the Certificate of Merger to be executed by GB&T and filed with the Secretary of State of the State of Georgia relating to the Merger as contemplated by Section 1.1 of this Agreement.
"Hazardous Material" shall mean any substance which is a "hazardous substance" or "toxic substance" as defined in the Comprehensive Environment Response, Compensation, and Liability Act, 42 U.S.C. Β§ 9601 et seq., or any other substance or material defined, designated, classified or regulated as hazardous or toxic under any Environmental Law, specifically including asbestos requiring abatement, removal or encapsulation pursuant to the requirements of Environmental Laws of polychlorinated biphenyls, and petroleum and petroleum products, provided, notwithstanding the foregoing or any other provision in this Agreement to the contrary, the words βHazardous Materialβ shall not mean or include any such Hazardous Material used, generated, manufactured, stored or otherwise handled in normal quantities in the ordinary course of business in compliance with all applicable Environmental Laws, or such that may be naturally occurring in any ambient air, surface water, ground water, land surface or subsurface strata.
"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 shall mean the knowledge after due inquiry of the Chairman, President, Chief Financial Officer, Chief Accounting Officer, Chief Credit Officer, or any Executive Vice President of such Person.
"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, without limitation, those promulgated, interpreted or enforced by any of the Regulatory Authorities.
"Liability" shall mean any direct or indirect, primary or secondary, liability, indebtedness, obligation, penalty, cost or expense (including, without limitation, costs of investigation, collection and defense), claim, deficiency, guaranty or endorsement of or by any Person (other than endorsements of notes, bills, checks, and drafts presented for collection or deposit in the ordinary course of business) of any type, whether accrued, absolute or contingent, liquidated or unliquidated, matured or unmatured, or otherwise.
"Lien" shall mean any conditional sale agreement, 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 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.
"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 (written or oral) by any Person alleging potential Liability or requesting information relating to or affecting a Party, its business, its Assets (including, without limitation, Contracts related to it), or the transactions contemplated by this Agreement, but shall not include regular, periodic examinations of depository institutions and their Affiliates by Regulatory Authorities other than the violations of law section from such reports.
"Loan Property" shall mean any property owned by the Party in question or by any of its Subsidiaries or in which such Party or Subsidiary holds a security interest, and, where required by the context, includes the owner or operator of such property, but only with respect to such property.
"Material" for purposes of this Agreement shall be determined in light of the facts and circumstances of the matter in question; provided that any specific monetary amount stated in this Agreement shall determine materiality in that instance.
"Material Adverse Effect" on a Party shall mean an event, change or occurrence which has a material adverse impact on (a) the financial position, business, or results of operations of such Party and its Subsidiaries, taken as a whole, or (b) 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 impact" shall not be deemed to include the impact of (w) changes in banking and similar Laws of general applicability or interpretations thereof by courts or governmental authorities, (x) changes in GAAP or regulatory accounting principles generally applicable to banks and their holding companies, (y) 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, or (z) the Merger and compliance with the provisions of this Agreement on the operating performance of the Parties.
"Merger" shall mean the merger of Mountain with and into GB&T referred to in Section 1.1 of this Agreement.
"Mountain Benefit Plans" shall have the meaning set forth in Section 5.14 of this Agreement.
"Mountain Common Stock" shall mean the Five Dollars and 00/100 ($5.00) par value common stock of Mountain.
"Mountain Companies" shall mean, collectively, Mountain and all Mountain Subsidiaries, and βMountain Companyβ shall mean, individually, any of them.
"Mountain Disclosure Memorandum" shall mean the written information entitled "Mountain Disclosure Memorandum" delivered on or prior to the date of this Agreement to GB&T describing in reasonable detail the matters contained therein, specifically referencing each Section of this Agreement under which such disclosure is being made.
βMountain Financial Statements" shall mean (a) the consolidated balance sheets (including related notes and schedules, if any) of Mountain as of December 31, 2003, 2004, 2005 and the related statements of income, changes in shareholders' equity, and cash flows (including related notes and schedules, if any) for each of the three fiscal years ended December 31, 2003, 2004, and 2005, included in the Mountain Disclosure Memorandum, and (b)the consolidated balance sheets (including related notes and schedules, if any) of Mountain and related statements of income, changes in shareholders' equity, and cash flows (including related notes and schedules, if any) with respect to periods ended subsequent to December 31, 2005.
"Mountain Option" shall have the meaning set forth in Section 3.4 of this Agreement, if any such options exist.
"Mountain Shareholders' Meeting" shall mean the meeting of the shareholders of Mountain to be held pursuant to Section 8.1 of this Agreement, including any adjournment or adjournments thereof.
"Mountain Stock Plans" shall mean the existing stock option and other stock-based compensation plans of Mountain disclosed in Section 5.14 of the Mountain Disclosure Memorandum.
"Mountain Subsidiaries" shall mean the subsidiaries of Mountain.
βMSBβ shall mean Mountain State Bank, a bank chartered under the banking laws of the United States and a Mountain Subsidiary.
"NASDAQβ shall mean the National Association of Security Dealers Automated Quotation System.
"Option Exchange Ratio" shall have the meaning provided in Section 3.4 of this Agreement.
"Order" shall mean any administrative decision or award, decree, injunction, judgment, order, quasi-judicial 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 (including any property or facility held in a joint venture) 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 GB&T or Mountain, and "Parties" shall mean both GB&T and Mountain.
"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 or its securities, Assets, Liabilities, or business.
"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 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 Mountain to solicit the approval of its shareholders of the transactions contemplated by this Agreement which shall be included in the prospectus of GB&T relating to shares of GB&T Common Stock to be issued to the shareholders of Mountain.
"Registration Statement" shall mean the Registration Statement on Form S-4, or other appropriate form, filed with the SEC by GB&T under the 1933 Act with respect to the shares of GB&T Common Stock to be issued to the shareholders of Mountain in connection with the transactions contemplated by this Agreement and which shall include the Joint Proxy Statement.
"Regulatory Authorities" shall mean, collectively if applicable, the Federal Trade Commission, the United States Department of Justice, the Board of the Governors of the Federal Reserve System, the Office of Thrift Supervision (including its predecessor, the Federal Home Loan Bank Board), the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, all state regulatory agencies having jurisdiction over the Parties and their respective Subsidiaries, the NASD and the SEC.
"Rights" shall mean all arrangements, calls, commitments, 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 by which a Person is or may be bound to issue additional shares of its capital stock or other Rights.
"SEC" shall mean the United States 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.
"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 Β outstanding equity securities is owned directly or indirectly by its parent; provided, however, 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.
"Support Agreements" shall mean the various Support Agreements, each in substantially the form of Exhibit 6 to this Agreement.
"Surviving Corporation" shall mean GB&T as the surviving corporation resulting from the Merger.
"Taxes" shall mean any federal, state, county, local or foreign income, profits, franchise, gross receipts, payroll, sales, employment, use, property, withholding, excise, occupancy and other taxes, assessments, charges, fares or impositions, including interest, penalties and additions imposed thereon or with respect thereto.
Any singular term in this Agreement shall be deemed to include the plural, and any plural term the singular. Β 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 the Parties 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 the Parties shall bear and pay (i) one-half of the filing fees payable in connection with the Registration Statement and the applications filed with other Regulatory Authorities, and (ii) one-half of the costs incurred in connection with the printing or copying of the Joint Proxy Statement.
(b)
Notwithstanding the provisions of Section 11.2(a) of this Agreement, if for any reason this Agreement is terminated pursuant to Sections 10.1(b) or 10.1(c) of this Agreement, the breaching Party agrees to pay the non-breaching Party an amount equal to the reasonable and documented fees and expenses incurred by such non-breaching Party in connection with the examination and investigation of the breaching Party, the preparation and negotiation of this Agreement and related agreements, regulatory filings and other documents related to the transactions contemplated hereunder, including, without limitation, fees and expenses of investment banking consultants, accountants, attorneys and other agents. Β Final settlement with respect to payment of such fees and expenses shall be made within thirty (30) days after the termination of this Agreement.
11.3
Brokers and Finders. Β 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 or incurred any Liability for any financial advisory fees, investment bankers' fees, brokerage fees, commissions, or finders' fees in connection with this Agreement or the transactions contemplated hereby, other than as identified in Section 11.3 of each partyβs Disclosure Memorandum, and GB&T specifically acknowledges its understanding that the fee owed by Mountain as disclosed in Mountainβs Disclosure Memorandum will be paid immediately following closing. Β 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 GB&T or Mountain, each of GB&T and Mountain, 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. Β Except as otherwise expressly provided herein, this Agreement (including the Exhibits, documents and instruments referred to herein) constitutes the entire agreement between the Parties with respect to the transactions contemplated hereunder Β and supersedes all prior arrangements or understandings with respect thereto, written or oral. Β Nothing in this Agreement expressed or implied, is intended to confer upon any Person, other than the Parties or their respective successors, any rights, remedies, obligations, or liabilities under or by reason of this Agreement, other than as provided in Section 8.10 of this Agreement.
11.5
Amendments. Β 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; provided, however, that after any such approval by the holders of Mountain Common Stock, there shall be made no amendment that pursuant to the GBCC requires further approval by such shareholders without the further approval of such shareholders.
11.6
Waivers.
(a)
Prior to or at the Effective Time, GB&T, acting through its Board of Directors, chief executive officer or Designated Officer, shall have the right to waive any Default in the performance of any term of this Agreement by Mountain, to waive or extend the time for the compliance or fulfillment by Mountain of any and all of its obligations under this Agreement, and to waive any or all of the conditions precedent to the obligations of GB&T under this Agreement, except any condition which, if not satisfied, would result in the violation of any Law. Β No such waiver shall be effective unless in writing and signed by a duly authorized officer of GB&T.
(b)
Prior to or at the Effective Time, Mountain, acting through its Board of Directors, chief executive officer or Designated Officer, shall have the right to waive any Default in the performance of any term of this Agreement by GB&T, to waive or extend the time for the compliance or fulfillment by GB&T of any and all of its obligations under this Agreement, and to waive any or all of the conditions precedent to the obligations of Mountain 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 and signed by a duly authorized officer of Mountain.
(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.
11.7
Assignment. Β 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.
11.8
Notices. Β All notices or other communications which are required or permitted hereunder shall be in writing and sufficient if delivered by hand, by facsimile transmission, or by courier or overnight carrier, to the persons at the addresses set forth below (or at such other address as may be provided hereunder), and shall be deemed to have been delivered as of the date so delivered:
GB&T: | GB&T Bancshares, Inc. P. O. Box 2760 000 Xxxxx Xxxxxx Xxxxxxx Xxxxxxxxxxx, Xxxxxxx 00000 Telecopy No: 000-000-0000 Attn: Xxxxxxx X. Xxxx, President |
| Β | Β |
Copy to Counsel: | Xxxxxx, Xxxxxx & Xxxxx, LLP 000 X. X. Xxxxxx Xxxxxxx P. O. Box 1457 Xxxxxxxxxxx, Xxxxxxx 00000 Telecopy No: 000-000-0000 Attention: Xxxxxx X. Xxxxxx, Esq. |
| Β | Β |
Mountain: | Mountain Bancshares, Inc. 0000 Xxxxxxx 00 Xxxx X.X. Xxx 000 Xxxxxxxxxxx, Xxxxxxx 00000 Telecopy No: 000-000-0000 Attention: Β Xxxx X. Xxxxx, President |
| Β | Β |
Copy to Counsel: | Xxxxxx Xxxxxxxxx LLP 0000 Xxxx Xxxxxxxxx Xxxxxx XX, 00xx Xxxxx Xxxxxxx, Xxxxxxx 00000 Telecopy No.: 000-000-0000 Attention: Xxxxx X. Xxxxxxx, Esq. |
11.9
Governing Law. Β This Agreement shall be governed by and construed in accordance with the Laws of the State of Georgia, without regard to any applicable conflicts of Laws, except to the extent that the federal laws of the United States may apply to the Merger.
11.10
Counterparts. Β This Agreement may be executed in one 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.
11.11
Captions. Β The captions contained in this Agreement are for reference purposes only and are not part of this Agreement.
11.12
Enforcement of Agreement. Β 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.
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11.13
Severability. Β 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. Β 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.
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.
| Β | GB&T BANCSHARES, INC. By: _________________________________ Β Β Β Β Β Β Β Β Β Β Β Β Xxxxxxx X. Xxxx Β Β Β Β Β Β Β Β Β Β Β Β President and CEO Attest: ______________________________ Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Secretary (Affix Corporate Seal) |
| Β | MOUNTAIN BANCSHARES, INC. By: _________________________________ Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Xxxx X. Xxxxx, President Attest: ______________________________ Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Β Secretary (Affix Corporate Seal) |
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GB&T/Mountain Merger Agreement
Schedule of Exhibits | Β | |
| Β | Β | |
1 | Affiliate Agreement | (Section 8.10) |
2 | Xxxxxx Xxxxxxxxx Opinion Letter | (Section 9.2(d)) |
3 | Claims/Indemnification Letters | (Section 9.3(e)) |
4 | Xxxxxx, Xxxxxx & Xxxxx Opinion Letter | (Section 9.3(d)) |
5 | Intentionally Omitted | Β |
6 | Support Agreement | (Preamble, Section 1.4; Section 9.2(g)) |
7 | Noncompete Agreements | (Section 9.3(h)) |
8 | Employment Agreement | (Section 9.2(i)) |
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