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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 17, 1998
VALLEY NATIONAL BANCORP
(Exact name of registrant as specified in its charter)
New Jersey
(State or other jurisdiction of incorporation)
0-11179 22-2477875
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(Commission File Number) (IRS Employer Identification No.)
1455 Valley Road
Wayne, New Jersey 07470
(Address of principal executive offices)
(973) 305-8800
(Registrant's telephone number, including area code)
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Item 5. Other Events
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On December 17, 1998, Valley National Bancorp ("VALLEY") and Ramapo
Financial Corporation ("Ramapo") jointly announced the signing of a definitive
merger agreement (the "Agreement") by which Valley will acquire Ramapo. Ramapo
is the holding company for The Ramapo Bank a state chartered commercial bank
headquartered in Wayne, New Jersey. A copy of the press release dated December
17, 1998 is attached as an Exhibit to this Form 8-K.
Under the terms of the Agreement, each of the 8,081,199 outstanding
shares of Ramapo Common Stock will be exchanged for 0.425 shares of Valley
Common Stock. The acquisition is expected to be treated as a tax-free exchange
to holders of Ramapo Common Stock and as a pooling-of-interest for accounting
purposes.
The acquisition is conditioned upon necessary bank regulatory
approvals, the approval of Ramapo's shareholders and other customary conditions.
The parties anticipate that the merger will be consummated in the second quarter
of 1999.
In connection with the execution of the Agreement, Ramapo has issued an
option to Valley which, under certain defined circumstances could result in the
issuance of 1,608,159 shares of Ramapo Common Stock, to Valley at an option
price of $7.50 per share.
Item 7. Exhibits
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Exhibit 2.1 Agreement and Plan of Merger dated December 17, 1998
among Valley National Bancorp, Inc., Valley National
Bank, Ramapo Financial Corporation and The Ramapo Bank.
Exhibit 2.2 Stock Option Agreement dated December 17, 1998 among
Valley National Bancorp, and Ramapo Financial Corporation.
Exhibit 99 Press Release dated December 17, 1998.
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
VALLEY NATIONAL BANCORP
Dated: December 21, 1998 By: ALAN D. ESKOW
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Alan D. Eskow
Corporate Secretary
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INDEX TO EXHIBITS
Exhibit No. Description
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2.1 Agreement and Plan of Merger dated December 17, 1998
among Valley National Bancorp, Inc., Valley National Bank,
Ramapo Financial Corporation and The Ramapo Bank.
2.2 Stock Option Agreement dated December 17, 1998 among
Valley National Bancorp, and Ramapo Financial
Corporation.
99 Press release dated December 17, 1998.
AGREEMENT AND PLAN OF MERGER
THIS AGREEMENT AND PLAN OF MERGER, dated as of December 17,
1998 ("Agreement"), is among Valley National Bancorp, a New Jersey corporation
and registered bank holding company ("Valley"), Valley National Bank, a national
banking association ("VNB"), Ramapo Financial Corporation, a New Jersey
corporation and registered bank holding company ("Ramapo") and The Ramapo Bank,
a state-chartered commercial bank (the "Bank").
RECITALS
Valley desires to acquire Ramapo and Ramapo's Board of
Directors has determined, based upon the terms and conditions hereinafter set
forth, that the acquisition is in the best interests of Ramapo and its
stockholders. The acquisition will be accomplished by merging Ramapo into Valley
with Valley as the surviving corporation and, at the same time, merging the Bank
into VNB with VNB as the surviving bank, and Ramapo stockholders receiving the
consideration hereinafter set forth. The Boards of Directors of Ramapo, Valley,
the Bank and VNB have duly adopted and approved this Agreement and the Board of
Directors of Ramapo has directed that it be submitted to its stockholders for
approval.
As a condition precedent to entering into this Agreement,
Valley has required that Ramapo grant it an option to purchase authorized but
unissued shares of Ramapo common stock and, as a consequence, Valley and Ramapo
have entered into a Stock Option Agreement, dated the date hereof (the "Valley
Stock Option").
NOW, THEREFORE, intending to be legally bound, the parties
hereto agree as follows:
ARTICLE I
THE MERGER
1.1. The Merger. Subject to the terms and conditions of this
Agreement, at the Effective Time (as hereafter defined), Ramapo shall be merged
with and into Valley (the "Merger") in accordance with the New Jersey Business
Corporation Act ("NJBCA") and Valley shall be the surviving corporation (the
"Surviving Corporation"). Immediately following the Effective Time, the Bank
shall be merged with and into VNB as provided in Section 1.7 hereof.
1.2. Effect of the Merger. At the Effective Time, the
Surviving Corporation shall be considered the same business and corporate entity
as each of Ramapo and Valley and thereafter all the property, rights,
privileges, powers and franchises of each of Ramapo and Valley shall vest in the
Surviving Corporation and the Surviving Corporation shall be subject to and be
deemed to have assumed all of the debts, liabilities, obligations and duties of
each of Ramapo and Valley and shall have succeeded to all of each of their
relationships, fiduciary or otherwise, as fully and to the same extent as if
such property, rights, privileges, powers, franchises, debts, obligations,
duties and relationships had been originally acquired, incurred or entered into
by the Surviving Corporation.
1.3. Certificate of Incorporation. The certificate of
incorporation of Valley as it exists immediately prior to the Effective Time
shall not be amended by the Merger, but shall continue as the certificate of
incorporation of the Surviving Corporation until otherwise amended as provided
by law.
1.4. Bylaws. The bylaws of Valley as they exist immediately
prior to the Effective Date shall continue as the by-laws of the Surviving
Corporation until otherwise amended as provided by law.
1.5. Directors and Officers. The directors and officers of
Valley as of the Effective Time shall continue as the directors and officers of
the Surviving Corporation, with the addition provided for in Section 5.20
hereof.
1.6 Closing Date, Closing and Effective Time. Unless a
different date, time and/or place are agreed to by the parties hereto, the
closing of the Merger (the "Closing") shall take place at 10:00 a.m., at the
offices of Valley, 1445 Valley Road, Wayne, New Jersey, on a date (the "Closing
Date") which shall be within ten business days following the receipt of all
necessary regulatory and governmental approvals and consents and the expiration
of all statutory waiting periods in respect thereof and the satisfaction or
waiver of all of the conditions to the consummation of the Merger specified in
Article VI hereof (other than the delivery of certificates, opinions and other
instruments and documents to be delivered at the Closing), with the exact date
determined by Valley upon written notice to Ramapo. The Merger shall become
effective (and be consummated) upon the effective time specified by Valley and
Ramapo in the certificate of merger (the "Certificate of Merger"), which shall
be prepared by Valley, shall be in form and substance satisfactory to Valley and
Ramapo, and shall be filed with the Secretary of State of the State of New
Jersey. The parties currently anticipate that the Certificate of Merger shall
specify as the effective time the opening of business on the first business day
following the Closing Date. If no effective time is specified in the Certificate
of Merger, the Merger shall become effective (and be consummated) upon the
filing of the Certificate of Merger.
1.7. The Bank Merger. Immediately following the Effective
Time, the Bank shall be merged with and into VNB (the "Bank Merger") in
accordance with the provisions of the National Bank Act, New Jersey Banking Act
of 1948, as amended (the "NJ Banking Act") and/or the regulations of the New
Jersey Department of Banking and Insurance ("Department"), and VNB shall be the
surviving bank (the "Surviving Bank"). Upon the consummation of the Bank Merger,
the separate existence of the Bank shall cease and the Surviving Bank shall be
considered the same business and corporate entity as each of the Bank and VNB
and all of the property, rights, privileges, powers and franchises of each of
the Bank and VNB shall vest in the Surviving Bank and the Surviving Bank shall
be deemed to have assumed all of the debts, liabilities, obligations and duties
of each of the Bank and VNB and shall have succeeded to all of each of their
relationships, fiduciary or otherwise, as fully and to the same extent as if
such property, rights, privileges, powers, franchises, debts, obligations,
duties and relationships had been originally acquired, incurred or entered into
by the Surviving Bank. Upon the consummation of the Bank Merger, the articles of
association and bylaws of VNB shall become the articles of association and
bylaws of the Surviving Bank, the officers and employees of VNB and the officers
and employees of the Bank shall be the officers and employees of the Surviving
Bank with such additions as officers as the Board of Directors of VNB shall
determine, and the directors of VNB shall be the directors of the Surviving
Bank. In connection with the execution of this Agreement, the Bank and VNB shall
execute and deliver a separate merger agreement (the "Bank Merger Agreement") in
substantially the form of Exhibit A, annexed hereto, for delivery to the Office
of the Comptroller of the Currency ("OCC") and the Department for approval of
the Bank Merger.
ARTICLE II
CONVERSION OF RAMAPO COMMON STOCK AND OPTIONS
Each share of common stock, $1.00 par value, of Ramapo
("Ramapo Common Stock"), issued and outstanding immediately prior to the
Effective Time, and each option to purchase shares of Ramapo Common Stock
validly issued pursuant to any of the Ramapo Financial Corporation 1995
Stock-Option Plan for Non-employee Directors (the "Ramapo Non-Employee Director
Option Plan") or the Ramapo Financial Corporation 1995 Employee Stock Option
Plan (the "Ramapo Employee Option Plan") or the Ramapo Financial Corporation
Non-statutory Stock Option Agreement of Mortimer J. O'Shea, dated March 17, 1994
(the "O'Shea Non-statutory Plan") and outstanding immediately prior to the
Effective Time (each a "Ramapo Option" and collectively, the "Ramapo Options")
shall, by virtue of the Merger and without any action on the part of the holder
thereof, be converted or cancelled at the Effective Time in accordance with this
Article II.
2.1 Conversion of Ramapo Common Stock; Exchange Ratio; Cash in
Lieu of Fractional Shares. Each share of Ramapo Common Stock issued and
outstanding immediately prior to the Effective Time, other than shares to be
cancelled pursuant to Section 2.4 hereof, shall be converted into the right to
receive 0.425 (the "Exchange Ratio") shares of Common Stock, no par value, of
Valley ("Valley Common Stock"), subject to adjustment as set forth in Section
2.6 below. No fractional shares of Valley Common Stock will be issued, and in
lieu thereof, each holder of Ramapo Common Stock who would otherwise be entitled
to a fractional interest will receive an amount in cash determined by
multiplying such fractional interest by the Average Pre-Closing Price of Valley
Common Stock. "Average Pre-Closing Price of Valley Common Stock" means the
average of the Closing Prices of Valley Common Stock for the ten consecutive
full trading days in which such shares are quoted on the New York Stock Exchange
(the "NYSE") ending with (and including) the Determination Date. "Closing Price"
of Valley Common Stock means the daily closing sales price of such stock as
reported on the NYSE (as reported in The Wall Street Journal or, if not reported
thereby, another authoritative source as chosen by Valley). "Determination Date"
means the date five days prior to the Closing.
2.2. Exchange of Shares.
(a) Ramapo and Valley hereby appoint Valley National Bank,
Trust Department as the exchange agent (the "Exchange Agent") for purposes of
effecting the conversion of Ramapo Common Stock and Ramapo Options. As soon as
practicable after the Effective Time, the Exchange Agent shall mail to each
holder of record (a "Record Holder") of a Certificate or Certificates which,
immediately prior to the Effective Time represented outstanding shares of Ramapo
Common Stock (the "Certificates"), a mutually agreed upon letter of transmittal
(which shall specify that delivery shall be effected, and risk of loss and title
to the Certificates shall pass, only upon delivery of the Certificates to the
Exchange Agent), and instructions for use in effecting the surrender of the
Certificates in exchange for Valley Common Stock (and cash in lieu of fractional
shares) as provided in Section 2.1 hereof.
(b) Upon surrender of Certificates for exchange and
cancellation to the Exchange Agent, together with such letter of transmittal,
duly executed, the Record Holder shall be entitled to promptly receive in
exchange for such Certificates the consideration as provided in Section 2.1
hereof and the Certificates so surrendered shall be canceled. The Exchange Agent
shall not be obligated to deliver or cause to be delivered to any Record Holder
the consideration to which such Record Holder would otherwise be entitled until
such Record Holder surrenders the Certificates for exchange or, in default
thereof, an appropriate Affidavit of Loss and Indemnity Agreement and/or a bond
as may be reasonably required in each case by Valley. Notwithstanding the time
of surrender of the Certificates, Record Holders shall be deemed stockholders of
Valley for all purposes from the Effective Time, except that Valley shall
withhold the payment of dividends from any Record Holder until such Record
Holder effects the exchange of Certificates for Valley Common Stock. (Such
Record Holder shall receive such withheld dividends, without interest, upon
effecting the share exchange.)
(c) After the Effective Time, there shall be no transfers on
the stock transfer books of Ramapo of the shares of Ramapo Common Stock which
were outstanding immediately prior to the Effective Time and, if any
Certificates representing such shares are presented for transfer, they shall be
canceled and exchanged for the consideration as provided in Section 2.1 hereof.
(d) If payment of the consideration pursuant to Section 2.1
hereof is to be made in a name other than that in which the Certificates
surrendered in exchange therefor is registered, it shall be a condition of such
payment that the Certificates so surrendered shall be properly endorsed (or
accompanied by an appropriate instrument of transfer) and otherwise in proper
form for transfer, and that the person requesting such payment shall pay to the
Exchange Agent in advance any transfer or other taxes required by reason of the
payment to a person other than that of the registered holder of the Certificates
surrendered, or required for any other reason, or shall establish to the
satisfaction of the Exchange Agent that such tax has been paid or is not
payable.
(e) With respect to each outstanding Ramapo Option the
Exchange Agent shall, after the Effective Time, distribute to the Optionee an
amendment to the option grant evidencing the conversion of the grant to an
option to purchase Valley Common Stock in accordance with Section 2.7 hereof.
2.3. No Dissenters' Rights. Consistent with the provisions of
the NJBCA, no stockholder of Ramapo shall have appraisal rights with respect to
the Merger.
2.4. Cancelled Shares. Each share of Ramapo Common Stock (i)
which is held by Ramapo as treasury stock or (ii) which is held by the Bank or
any other direct or indirect subsidiary of the Bank (except as trustee or in a
fiduciary capacity) or (iii) which is held by Valley, shall be canceled and
retired at the Effective Time.
2.5. Valley Shares. The shares of Valley Common Stock
outstanding at the Effective Time shall not be affected by the Merger, but along
with the additional shares of Valley Common Stock to be issued as provided in
Section 2.1 hereof, shall become the outstanding common stock of the Surviving
Corporation.
2.6 Anti-Dilution Adjustments. The Exchange Ratio and the
Average Pre-Closing Price of Valley Common Stock shall be appropriately adjusted
for any stock split, stock dividend, stock combination, reclassification or
similar transaction ("Capital Change") effected by Valley with respect to Valley
Common Stock between the date hereof and the Effective Time.
2.7. Ramapo Stock Options. At the Effective Time, each
outstanding Ramapo Option granted to an eligible individual (an "Optionee")
under any of the Ramapo Non-Employee Director Option Plan or the Ramapo Employee
Option Plan or the O'Shea Non-statutory Plan shall be converted into an option
to purchase Valley Common Stock (a "Stock Option"), wherein (x) the right to
purchase shares of Ramapo Common Stock pursuant to the Ramapo Option shall be
converted into the right to purchase that same number of shares of Valley Common
Stock multiplied by the Exchange Ratio, (y) the option exercise price per share
of Valley Common Stock shall be the previous option exercise price per share of
Ramapo Common Stock divided by the Exchange Ratio and (z) in all other material
respects the option shall be subject to the same terms and conditions as
governed the Ramapo Option on which it was based, including the length of time
within which the option may be exercised and for any options which are
"incentive stock options" (as defined in Section 422 of the Internal Revenue
Code of 1986, as amended (the "Code"), the adjustments shall be and are intended
to be effected in a manner which is consistent with Section 424(a) of the Code.
Shares of Valley Common Stock issuable upon exercise of Stock Options shall be
covered by an effective registration statement on Form S-8, and Valley shall
file a registration statement on Form S-8 covering such shares as soon as
practicable after the Effective Time.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF RAMAPO
References herein to "Ramapo Disclosure Schedule" shall mean
all of the disclosure schedules required by this Article III, dated as of the
date hereof and referenced to the specific sections and subsections of Article
III of this Agreement, which have been delivered on the date hereof by Ramapo to
Valley or will be delivered within 15 days of the date hereof pursuant to
Section 5.11(a) by Ramapo to Valley. Ramapo hereby represents and warrants to
Valley as follows:
3.1. Corporate Organization.
(a) Ramapo is a corporation duly organized, validly existing
and in good standing under the laws of the State of New Jersey. Ramapo has the
corporate power and authority to own or lease all of its properties and assets
and to carry on its business as it is now being conducted and is duly licensed
or qualified to do business in each jurisdiction in which the nature of the
business conducted by it or the character or location of the properties and
assets owned or leased by it makes such licensing or qualification necessary,
except where the failure to be so licensed or qualified would not have a
material adverse effect on the business, operations, assets or financial
condition of Ramapo on a consolidated basis. Ramapo is registered as a bank
holding company under the BHCA.
(b) All of the Subsidiaries of Ramapo are listed in the Ramapo
Disclosure Schedule. The term "Subsidiary", when used in this Agreement with
respect to Ramapo, means any corporation, joint venture, association,
partnership, trust or other entity in which Ramapo has, directly or indirectly
at least a 50% interest or acts as a general partner. Each Subsidiary of Ramapo
is duly organized, validly existing and in good standing under the laws of its
state of incorporation. The Bank is a state-chartered commercial bank whose
deposits are insured by Bank Insurance Fund ("BIF") of the Federal Deposit
Insurance Corporation ("FDIC") to the fullest extent permitted by law. Each
Subsidiary of Ramapo has the corporate power and authority to own or lease all
of its properties and assets and to carry on its business as it is now being
conducted and is duly licensed or qualified to do business in each jurisdiction
in which the nature of the business conducted by it or the character or location
of the properties and assets owned or leased by it makes such licensing or
qualification necessary, except where the failure to be so licensed or qualified
would not have a material adverse effect on the business, operations, assets or
financial condition of Ramapo and its Subsidiaries on a consolidated basis. The
Ramapo Disclosure Schedule sets forth true and complete copies of the
Certificates of Incorporation or Charter, as the case may be, and Bylaws of
Ramapo and each Ramapo Subsidiary as in effect on the date hereof. Except as set
forth in the Ramapo Disclosure Schedule, Ramapo does not own or control,
directly or indirectly, any equity interest in any corporation, company,
association, partnership, joint venture or other entity and owns no real estate,
except (i) residential real estate acquired through foreclosure or deed in lieu
of foreclosure in each individual instance with a fair market value less than
$500,000 and (ii) real estate used for its banking premises.
3.2. Capitalization.
The authorized capital stock of Ramapo consists of 15,000,000
shares of Ramapo Common Stock and 1,000,000 shares of stock, no par value per
share ("Ramapo No Par Stock") which may be divided into classes and into series
within any class or classes as determined by the Board of Directors. As of the
date hereof, there were 8,081,199 shares of Ramapo Common Stock issued and
outstanding, and no shares issued and held in the treasury, and no shares of
Ramapo No Par Stock outstanding. As of the date hereof, there were 966,884
shares of Ramapo Common Stock issuable upon exercise of outstanding Ramapo
Options (the "Option Shares") granted to, directors and officers of Ramapo or
the Bank pursuant to the Ramapo Non-Employee Director Option Plan or the Ramapo
Employee Option Plan or the O'Shea Non-statutory Plan. The Ramapo Disclosure
Schedule sets forth (i) all options which may be exercised for issuance of
Ramapo Common Stock and the terms upon which the options may be exercised, and
(ii) true and complete copies of each of the Ramapo Non-Employee Director Option
Plan and the Ramapo Employee Option Plan and the O'Shea Non-statutory Plan and a
specimen of each form of agreement pursuant to which any outstanding stock
option was granted, including a list of each outstanding stock option issued
pursuant thereto. All issued and outstanding shares of Ramapo Common Stock, and
all issued and outstanding shares of capital stock of each Ramapo Subsidiary,
have been duly authorized and validly issued, are fully paid, and nonassessable.
The authorized capital stock of the Bank consists of 2,000,000 shares of common
stock, $2.00 par value. All of the outstanding shares of capital stock of each
Ramapo Subsidiary are owned by Ramapo and are free and clear of any liens,
encumbrances, charges, restrictions or rights of third parties. Except for the
Ramapo Options and the Valley Stock Option, neither Ramapo nor any Ramapo
Subsidiary has or is bound by any outstanding subscriptions, options, warrants,
calls, commitments or agreements of any character calling for the transfer,
purchase or issuance of any shares of capital stock of Ramapo or any Ramapo
Subsidiary or any securities representing the right to purchase or otherwise
receive any shares of such capital stock or any securities convertible into or
representing the right to purchase or subscribe for any such shares, and there
are no agreements or understandings with respect to voting of any such shares.
3.3. Authority; No Violation.
(a) Subject to the approval of this Agreement and the
transactions contemplated hereby by the stockholders of Ramapo, and subject to
the parties obtaining all necessary regulatory approvals, Ramapo and the Bank
have full corporate power and authority to execute and deliver this Agreement
and to consummate the transactions contemplated hereby in accordance with the
terms hereof. The execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby have been duly and validly approved by
the Board of Directors of each of Ramapo and the Bank. The execution and
delivery of the Bank Merger Agreement has been duly and validly approved by the
Board of Directors of the Bank. Except for the approvals described in paragraph
(b) below, no other corporate proceedings on the part of Ramapo or the Bank are
necessary to consummate the transactions contemplated hereby. This Agreement has
been duly and validly executed and delivered by Ramapo and the Bank, and
constitutes valid and binding obligations of Ramapo and the Bank, enforceable
against Ramapo and the Bank in accordance with its terms.
(b) Neither the execution and delivery of this Agreement by
Ramapo and the Bank, nor the consummation by Ramapo and the Bank of the
transactions contemplated hereby in accordance with the terms hereof, or
compliance by Ramapo and the Bank with any of the terms or provisions hereof,
will (i) violate any provision of Ramapo's or the Bank's Certificates of
Incorporation or Bylaws, (ii) assuming that the consents and approvals set forth
below are duly obtained, violate any statute, code, ordinance, rule, regulation,
judgment, order, writ, decree or injunction applicable to Ramapo or the Bank or
any of their respective properties or assets, or (iii) except as set forth in
the Ramapo Disclosure Schedule, violate, conflict with, result in a breach of
any provisions of, constitute a default (or an event which, with notice or lapse
of time, or both, would constitute a default) under, result in the termination
of, accelerate the performance required by, or result in the creation of any
lien, security interest, charge or other encumbrance upon any of the respective
properties or assets of Ramapo or the Bank under, any of the terms, conditions
or provisions of any note, bond, mortgage, indenture, deed of trust, license,
lease, agreement or other instrument or obligation to which Ramapo or the Bank
is a party, or by which either or both of them or any of their respective
properties or assets may be bound or affected except, with respect to (ii) and
(iii) above, such as individually and in the aggregate will not have a material
adverse effect on the business, operations, assets or financial condition of
Ramapo and its Subsidiaries on a consolidated basis, and which will not prevent
or delay the consummation of the transactions contemplated hereby. Except for
consents and approvals of or filings or registrations with or notices to the
OCC, the Department, the Board of Governors of the Federal Reserve System
("FRB"), the Securities and Exchange Commission ("SEC"), applicable state
securities bureaus or commissions, the New Jersey Secretary of State and the
stockholders of Ramapo, no consents or approvals of or filings or registrations
with or notices to any third party or any public body or authority are necessary
on behalf of Ramapo or the Bank in connection with (x) the execution and
delivery by Ramapo and the Bank of this Agreement and (y) the consummation by
Ramapo and the Bank of the transactions contemplated hereby and (z) the
execution and delivery by the Bank of the Bank Merger Agreement and the
consummation by the Bank of the transactions contemplated thereby.
3.4. Financial Statements.
(a) The Ramapo Disclosure Schedule sets forth copies of the
consolidated statements of condition of Ramapo as of December 31, 1995, 1996 and
1997, and the related consolidated statements of income, stockholders' equity
and cash flows for the periods ended December 31 in each of the three years 1995
through 1997, in each case accompanied by the audit report of Arthur Andersen
LLP, independent public accountants with respect to Ramapo, and the unaudited
consolidated statements of condition of Ramapo as of September 30, 1998 and
related unaudited consolidated statements of income, changes in stockholders'
equity and cash flows for the nine months then ended as reported in Ramapo's
Quarterly Report on Form 10-Q, filed with the SEC under the Securities and
Exchange Act of 1934, as amended (the "1934 Act") (collectively, the "Ramapo
Financial Statements"). The Ramapo Financial Statements (including the related
notes) have been prepared in accordance with generally accepted accounting
principles ("GAAP") consistently applied during the periods involved, and fairly
present the consolidated financial condition of Ramapo as of the respective
dates set forth therein, and the related consolidated statements of income,
stockholders' equity and cash flows fairly present the results of the
consolidated operations, stockholders' equity and cash flows of Ramapo for the
respective periods set forth therein.
(b) The books and records of Ramapo and its Subsidiaries have
been and are being maintained in material compliance with applicable legal and
accounting requirements, and reflect only actual transactions.
(c) Except as and to the extent reflected, disclosed or
reserved against in the Ramapo Financial Statements (including the notes
thereto), as of September 30, 1998 neither Ramapo nor any of its Subsidiaries
had any material liabilities, whether absolute, accrued, contingent or otherwise
material to the business, operations, assets or financial condition of Ramapo or
any of its Subsidiaries. Since September 30, 1998 and to the date hereof,
neither Ramapo nor any of its Subsidiaries have incurred any material
liabilities except in the ordinary course of business and consistent with
prudent banking practice, except as specifically contemplated by this Agreement.
3.5. Brokerage Fees; Financial Advisor. Other than Danielson
Associates, Inc. ("Danielson"), neither Ramapo nor any of its Subsidiaries nor
any of their respective directors or officers has employed any broker or finder
or incurred any liability for any broker's or finder's fees or commissions in
connection with any of the transactions contemplated by this Agreement. Copies
of Ramapo's agreements with Danielson are set forth in the Ramapo Disclosure
Schedule. Danielson has delivered to Ramapo its written opinion with respect to
the fairness, from a financial point of view, of the Exchange Ratio to the
shareholders of Ramapo in the Merger. There are no fees (other than time charges
billed at usual and customary rates) payable to any consultants, including
lawyers and accountants, in connection with this transaction or which would be
triggered by consummation of this transaction or the termination of the services
of such consultants by Ramapo or any of its Subsidiaries other than fees which
will be payable by Ramapo to Danielson.
3.6. Absence of Certain Changes or Events.
(a) There has not been any material adverse change in the
business, operations, assets or financial condition of Ramapo and its
Subsidiaries on a consolidated basis since September 30, 1998 and, except for
the direct or indirect costs of the Merger, to Ramapo's knowledge, no facts or
conditions exist which Ramapo believes will cause or is likely to cause such a
material adverse change in the future.
(b) Except as set forth in the Ramapo Disclosure Schedule,
neither Ramapo nor any of its Subsidiaries has taken or permitted any of the
actions set forth in Section 5.2 hereof between September 30, 1998 and the date
hereof and Ramapo and the Ramapo Subsidiaries have conducted their business only
in the ordinary course, consistent with past practice.
3.7. Legal Proceedings. Except as disclosed in the Ramapo
Disclosure Schedule, neither Ramapo nor any of its Subsidiaries is a party to
any, and there are no pending or, to Ramapo's knowledge, threatened, legal,
administrative, arbitral or other proceedings, claims, actions or governmental
investigations of any nature against Ramapo or any of its Subsidiaries. Except
as disclosed in the Ramapo Disclosure Schedule, neither Ramapo nor any of its
Subsidiaries is a party to any order, judgment or decree entered against Ramapo
or any Ramapo Subsidiary in any lawsuit or proceeding.
3.8. Taxes and Tax Returns.
(a) To the knowledge of Ramapo, Ramapo and each Ramapo
Subsidiary have duly filed (and until the Effective Time will so file) all
returns, declarations, reports, information returns and statements ("Returns")
required to be filed by them in respect of any federal, state and local taxes
(including withholding taxes, penalties or other payments required) and each has
duly paid (and until the Effective Time will so pay) all such taxes due and
payable, other than taxes or other charges which are being contested in good
faith (and disclosed to Valley in writing). Ramapo and each Ramapo Subsidiary
have established (and until the Effective Time will establish) on their books
and records reserves for the payment of all federal, state and local taxes not
yet due and payable, but incurred in respect of Ramapo or any Ramapo Subsidiary
through such date, which reserves are, to the knowledge of Ramapo, adequate for
such purposes. Except as set forth in the Ramapo Disclosure Schedule, the
federal income tax returns of Ramapo and its Subsidiaries have been examined by
the Internal Revenue Service (the "IRS") (or are closed to examination due to
the expiration of the applicable statute of limitations) and no deficiencies
were asserted as a result of such examinations which have not been resolved and
paid in full. Except as set forth in the Ramapo Disclosure Schedule, the
applicable state income tax returns of Ramapo and its Subsidiaries have been
examined by the applicable authorities (or are closed to examination due to the
expiration of the statute of limitations) and no deficiencies were asserted as a
result of such examinations which have not been resolved and paid in full. To
the knowledge of Ramapo, there are no audits or other administrative or court
proceedings presently pending nor any other disputes pending, or claims asserted
for, taxes or assessments upon Ramapo or any of its Subsidiaries, nor has Ramapo
or any of its Subsidiaries given any currently outstanding waivers or comparable
consents regarding the application of the statute of limitations with respect to
any taxes or Returns.
(b) Except as set forth in the Ramapo Disclosure Schedule,
neither Ramapo nor any of its Subsidiaries (i) has requested any extension of
time within which to file any tax Return which Return has not since been filed,
(ii) is a party to any agreement providing for the allocation or sharing of
taxes, (iii) is required to include in income any adjustment pursuant to Section
481(a) of the Code, by reason of a voluntary change in accounting method
initiated by Ramapo or any Ramapo Subsidiary (nor does Ramapo have any knowledge
that the IRS has proposed any such adjustment or change of accounting method) or
(iv) has filed a consent pursuant to Section 341(f) of the Code or agreed to
have Section 341(f)(2) of the Code apply.
3.9. Employee Benefit Plans.
(a) Except as disclosed in the Ramapo Disclosure Schedule,
neither Ramapo nor any of its Subsidiaries maintains or contributes to any
"employee pension benefit plan", within the meaning of Section 3(2)(A) of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA") (the
"Ramapo Pension Plans"), "employee welfare benefit plan", within the meaning of
Section 3(1) of ERISA (the "Ramapo Welfare Plans"), stock option plan, stock
purchase plan, deferred compensation plan, severance plan, bonus plan,
employment agreement or other similar plan, program or arrangement. Neither
Ramapo nor any of its Subsidiaries has, since September 2, 1974, contributed to
any "Multiemployer Plan", within the meaning of Sections 3(37) and 4001(a)(3) of
ERISA.
(b) Ramapo has delivered to Valley in the Ramapo Disclosure
Schedule a complete and accurate copy of each of the following with respect to
each of the Ramapo Pension Plans and Ramapo Welfare Plans: (i) plan document,
summary plan description, and summary of material modifications (if not
available, a detailed description of the foregoing); (ii) trust agreement or
insurance contract, if any; (iii) most recent IRS determination letter, if any;
(iv) most recent actuarial report, if any; and (v) most recent annual report on
Form 5500.
(c) The present value of all accrued benefits both vested and
non-vested under each of the Ramapo Pension Plans subject to Title IV of ERISA,
based upon the actuarial assumptions used for purposes of the most recent
actuarial valuation prepared by such Ramapo Pension Plan's actuary, did not
exceed the then current value of the assets of such plans allocable to such
accrued benefits. To the best of Ramapo's knowledge, the actuarial assumptions
then utilized for such plans were reasonable and appropriate as of the last
valuation date and reflect then current market conditions.
(d) During the last six years, the Pension Benefit Guaranty
Corporation (the "PBGC") has not asserted any claim for liability against Ramapo
or any of its Subsidiaries which has not been paid in full.
(e) All premiums (and interest charges and penalties for late
payment, if applicable) due to the PBGC with respect to each Ramapo Pension Plan
have been paid. All contributions required to be made to each Ramapo Pension
Plan under the terms thereof, ERISA or other applicable law have been timely
made, and all amounts properly accrued to date as liabilities of Ramapo and its
Subsidiaries which have not been paid have been properly recorded on the books
of Ramapo and its Subsidiaries.
(f) Except as disclosed on the Ramapo Disclosure Schedule,
each of the Ramapo Pension Plans, the Ramapo Welfare Plans and each other plan
and arrangement identified on the Ramapo Disclosure Schedule has been operated
in compliance in all material respects with the provisions of ERISA, the Code,
all regulations, rulings and announcements promulgated or issued thereunder, and
all other applicable governmental laws and regulations. Furthermore, the IRS has
issued a favorable determination letter, which takes into account the Tax Reform
Act of 1986 and subsequent legislation, with respect to each of the Ramapo
Pension Plans and Ramapo is not aware of any fact or circumstance which would
disqualify any such plan, that could not be retroactively corrected (in
accordance with the procedures of the IRS).
(g) To the knowledge of Ramapo, within the past two plan years
no non-exempt prohibited transaction, within the meaning of Section 4975 of the
Code or Section 406 of ERISA, has occurred with respect to any of the Ramapo
Welfare Plans or Ramapo Pension Plans.
(h) No Ramapo Pension Plan or any trust created thereunder has
been terminated, nor have there been any "reportable events", within the meaning
of Section 4034(b) of ERISA, with respect to any of the Ramapo Pension Plans.
(i) To the knowledge of Ramapo, no "accumulated funding
deficiency", within the meaning of Section 412 of the Code, has been incurred
with respect to any of the Ramapo Pension Plans.
(j) There are no pending, or, to the knowledge of Ramapo,
threatened or anticipated claims (other than routine claims for benefits) by, on
behalf of or against any of the Ramapo Pension Plans or the Ramapo Welfare
Plans, any trusts related thereto or any other plan or arrangement identified in
the Ramapo Disclosure Schedule.
(k) No Ramapo Pension or Welfare Plan provides medical or
death benefits (whether or not insured) beyond an employee's retirement or other
termination of service, other than (i) coverage mandated by law, or (ii) death
benefits under any Ramapo Pension Plan.
(l) Except with respect to customary health, life and
disability benefits or as disclosed in the Ramapo Disclosure Schedule, there are
no unfunded benefits obligations which are not accounted for by reserves shown
on the Ramapo Financial Statements and established under GAAP, or otherwise
noted on such financial statements.
(m) With respect to each Ramapo Pension and Welfare Plan that
is funded wholly or partially through an insurance policy, there will be no
liability of Ramapo or any Ramapo Subsidiary as of the Effective Time under any
such insurance policy or ancillary agreement with respect to such insurance
policy in the nature of a retroactive rate adjustment, loss sharing arrangement
or other actual or contingent liability arising wholly or partially out of
events occurring prior to the Effective Time.
(n) Except as hereafter agreed to by Valley in writing or as
disclosed on the Ramapo Disclosure Schedule, the consummation of the
transactions contemplated by this Agreement will not (i) entitle any current or
former employee of Ramapo or any Ramapo Subsidiary to severance pay,
unemployment compensation or any similar payment, or (ii) accelerate the time of
payment, accelerate the vesting, or increase the amount, of any compensation or
benefits due to any current employee or former employee under any Ramapo Pension
Plan or Ramapo Welfare Plan.
3.10. Reports.
(a) The Ramapo Disclosure Schedule lists, and as to item (i)
below Ramapo has previously delivered or made available to Valley a complete
copy of, each (i) final registration statement, prospectus, annual, quarterly or
special report and definitive proxy statement filed by Ramapo since January 1,
1995 pursuant to the Securities Act of 1933, as amended ("1933 Act"), or the
1934 Act and (ii) communication (other than general advertising materials, press
releases and dividend checks) mailed by Ramapo to its shareholders as a class
since January 1, 1995.
(b) Since June 1, 1996, (i) Ramapo has filed all reports that
it was required to file with the SEC under the 1934 Act, and (ii) Ramapo and the
Bank each has duly filed all material forms, reports and documents which they
were required to file with each agency charged with regulating any aspect of
their business, in each case in form which was correct in all material respects,
and, subject to permission from such regulatory authorities, Ramapo promptly
will deliver or make available to Valley accurate and complete copies of such
reports. As of their respective dates, each such form, report, or document
referred to in either of clauses (i) or (ii) above, and each final registration
statement, prospectus, annual, quarterly or special report, definitive proxy
statement or communication referred to in either of clauses (i) or (ii) of
paragraph (a) above, complied in all material respects with all applicable
statutes, rules and regulations and did not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading; provided that
information contained in any such document as of a later date shall be deemed to
modify information as of an earlier date. The Ramapo Disclosure Schedule lists
the dates of all examinations of Ramapo or the Bank conducted by either the
Department or the FDIC since January 1, 1996 and the dates of any responses
thereto submitted by Ramapo or the Bank.
3.11. Ramapo and Bank Information. The information relating to
Ramapo and the Bank to be contained in the Proxy Statement/Prospectus (as
defined in Section 5.6(a) hereof) to be delivered to stockholders of Ramapo in
connection with the solicitation of their approval of this Agreement and the
transactions contemplated hereby, as of the date the Proxy Statement/Prospectus
is mailed to stockholders of Ramapo, and up to and including the date of the
meeting of stockholders to which such Proxy Statement/Prospectus relates, will
not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading.
3.12. Compliance with Applicable Law.
(a) General. Except as set forth in the Ramapo Disclosure
Schedule, each of Ramapo and the Ramapo Subsidiaries holds all licenses,
franchises, permits and authorizations necessary for the lawful conduct of its
business under and pursuant to each, and has complied with and is not in default
in any respect under any, applicable law, statute, order, rule, regulation,
policy and/or guideline of any federal, state or local governmental authority
relating to Ramapo or any of its Subsidiaries (other than where such defaults or
non-compliances will not, alone or in the aggregate, result in a material
adverse effect on the business, operations, assets or financial condition of
Ramapo and its Subsidiaries on a consolidated basis) and Ramapo has not received
notice of violation of, and does not know of any violations of, any of the
above.
(b) CRA. Without limiting the foregoing, to its knowledge the
Bank has complied in all material respects with the Community Reinvestment Act
("CRA") and Ramapo has no reason to believe that any person or group would
object to the consummation of this Merger due to the CRA performance of or
rating of the Bank. Except as listed on the Ramapo Disclosure Schedule to the
knowledge of the Bank, no person or group has adversely commented upon the
Bank's CRA performance.
3.13. Certain Contracts.
(a) Except as disclosed in the Ramapo Disclosure Schedule
under this Section or Section 3.5, (i) neither Ramapo nor any Ramapo Subsidiary
is a party to or bound by any contract or understanding (whether written or
oral) with respect to the employment or termination of any present or former
officers, employees, directors or consultants and (ii) the consummation of the
transactions contemplated by this Agreement will not (either alone or upon the
occurrence of any additional acts or events) result in any payment (whether of
severance pay or otherwise) becoming due from Ramapo or any Ramapo Subsidiary to
any officer, employee, director or consultant thereof. The Ramapo Disclosure
Schedule sets forth true and correct copies of all employment agreements or
termination agreements with officers, employees, directors, or consultants to
which Ramapo or any Ramapo Subsidiary is a party.
(b) Except as disclosed in the Ramapo Disclosure Schedule, (i)
as of the date of this Agreement, neither Ramapo nor any Ramapo Subsidiary is a
party to or bound by any commitment, agreement or other instrument which
contemplates the payment by Ramapo or any Ramapo Subsidiary of amounts in excess
of $100,000, or which has a term extending beyond June 1, 1999 and cannot be
terminated by Ramapo or its subsidiary without consent of the other party
thereto, (ii) no commitment, agreement or other instrument to which Ramapo or
any Ramapo Subsidiary is a party or by which any of them is bound limits the
freedom of Ramapo or any Ramapo Subsidiary to compete in any line of business or
with any person, and (iii) neither Ramapo nor any Ramapo Subsidiary is a party
to any collective bargaining agreement.
(c) Except as disclosed in the Ramapo Disclosure Schedule,
neither Ramapo nor any Ramapo Subsidiary nor, to the knowledge of Ramapo, any
other party thereto, is in default in any material respect under any material
lease, contract, mortgage, promissory note, deed of trust, loan or other
commitment or arrangement.
3.14. Properties and Insurance.
(a) Ramapo and its Subsidiaries have good, and as to owned
real property marketable, title to all material assets and properties, whether
real or personal, tangible or intangible, reflected in Ramapo's consolidated
balance sheet as of September 30, 1998, or owned and acquired subsequent thereto
(except to the extent that such assets and properties have been disposed of for
fair value in the ordinary course of business since September 30, 1998), subject
to no encumbrances, liens, mortgages, security interests or pledges, except (i)
those items that secure liabilities that are reflected in such balance sheet or
the notes thereto or incurred in the ordinary course of business after the date
of such balance sheet, (ii) statutory liens for amounts not yet delinquent or
which are being contested in good faith, (iii) such encumbrances, liens,
mortgages, security interests, pledges and title imperfections that are not in
the aggregate material to the business, operations, assets, and financial
condition of Ramapo and its Subsidiaries taken as a whole and (iv) with respect
to owned real property, title imperfections noted in title reports delivered to
Valley prior to the date hereof. Ramapo and its Subsidiaries as lessees have the
right under valid and subsisting leases to occupy, use, possess and control all
property leased by them in all material respects as presently occupied, used,
possessed and controlled by them.
(b) The Ramapo Disclosure Schedule lists all policies of
insurance covering business operations and all insurable properties and assets
of Ramapo and its Subsidiaries showing all risks insured against, in each case
under valid, binding and enforceable policies or bonds, with such amounts and
such deductibles as are specified. As of the date hereof, neither Ramapo nor any
of its Subsidiaries has received any notice of cancellation or notice of a
material amendment of any such insurance policy or bond or is in default under
such policy or bond, no coverage thereunder is being disputed and all material
claims thereunder have been filed in a timely fashion.
3.15. Minute Books. The minute books of Ramapo and its
Subsidiaries contain records that are accurate in all material respects of all
meetings and other corporate action held of their respective stockholders and
Boards of Directors (including committees of their respective Boards of
Directors).
3.16. Environmental Matters. Except as set forth in the Ramapo
Disclosure Schedule:
(a) Neither Ramapo nor any Ramapo Subsidiary has
received any written notice, citation, claim, assessment, proposed assessment or
demand for abatement alleging that Ramapo or such Ramapo Subsidiary (either
directly or as a trustee or fiduciary, or as a successor-in-interest in
connection with the enforcement of remedies to realize the value of properties
serving as collateral for outstanding loans) is responsible for the correction
or cleanup of any condition resulting from the violation of any law, ordinance
or other governmental regulation regarding environmental matters, which
correction or cleanup would be material to the business, operations, assets or
financial condition of Ramapo and the Ramapo Subsidiaries taken as a whole.
Ramapo has no knowledge that any toxic or hazardous substances or materials have
been emitted, generated, disposed of or stored on any real property owned or
leased by Ramapo or any Ramapo Subsidiary, as OREO or otherwise, or owned or
controlled by Ramapo or any Ramapo Subsidiary as a trustee or fiduciary
(collectively, "Properties"), in any manner that violates or, after the lapse of
time will violate, any presently existing federal, state or local law or
regulation governing or pertaining to such substances and materials.
(b) Ramapo has no knowledge that any of the
Properties has been operated in any manner in the three years prior to the date
of this Agreement that violated any applicable federal, state or local law or
regulation governing or pertaining to toxic or hazardous substances and
materials, the violation of which would have a material adverse effect on the
business, operations, assets or financial condition of Ramapo and the Ramapo
Subsidiaries taken as a whole.
(c) To the knowledge of Ramapo, except as set forth
in the Ramapo Disclosure Schedule, there are no underground storage tanks on, in
or under any of the Properties and no underground storage tanks have been closed
or removed from any of the Properties while the property was owned, operated or
controlled by Ramapo or any Ramapo Subsidiary.
3.17. Reserves. As of the date hereof, the reserve for loan
and lease losses in the Ramapo Financial Statements is adequate based upon past
loan loss experiences and potential losses in the current portfolio to cover all
known or anticipated loan losses.
3.18. No Excess Parachute Payments. No officer, director,
employee or agent (or former officer, director, employee or agent) of Ramapo or
any Ramapo Subsidiary is entitled now, or will or may be entitled to as a
consequence of this Agreement, the Merger or the Bank Merger, to any payment or
benefit from Ramapo, a Ramapo Subsidiary, Valley or VNB which if paid or
provided would constitute an "excess parachute payment", as defined in Section
280G of the Code or regulations promulgated thereunder.
3.19. Year 2000 Compliance. Ramapo and the Ramapo Subsidiaries
have taken all reasonable steps necessary to address the software, accounting
and record keeping issues raised in order for the data processing systems used
in the business conducted by Ramapo and the Ramapo Subsidiaries to be
substantially Year 2000 compliant on or before the end of 1999 and, except as
set forth in the Ramapo Disclosure Schedule, Ramapo does not expect the future
cost of addressing such issues to be material. Neither Ramapo nor any Ramapo
Subsidiary has received a rating of less than satisfactory from any bank
regulatory agency with respect to Year 2000 compliance.
3.20. Agreements with Bank Regulators. Neither Ramapo nor any
Ramapo Subsidiary is a party to any agreement or memorandum of understanding
with, or a party to any commitment letter, board resolution submitted to a
regulatory authority or similar undertaking to, or is subject to any order or
directive by, or is a recipient of any extraordinary supervisory letter from,
any court, governmental authority or other regulatory or administrative agency
or commission, domestic or foreign ("Governmental Entity") which restricts
materially the conduct of its business, or in any manner relates to its capital
adequacy, its credit or reserve policies or its management, except for those the
existence of which has been disclosed in writing to Valley by Ramapo prior to
the date of this Agreement, nor has Ramapo been advised by any Governmental
Entity that it is contemplating issuing or requesting (or is considering the
appropriateness of issuing or requesting) any such order, decree, agreement,
memorandum of understanding, extraordinary supervisory letter, commitment letter
or similar submission, except as disclosed in writing to Valley by Ramapo prior
to the date of this Agreement. Neither Ramapo nor any Ramapo Subsidiary is
required by Section 32 of the Federal Deposit Insurance Act to give prior notice
to a Federal banking agency of the proposed addition of an individual to its
board of directors or the employment of an individual as a senior executive
officer, except as disclosed in writing to Valley by Ramapo prior to the date of
this Agreement.
3.21. Disclosure. No representation or warranty contained in
Article III of this Agreement contains any untrue statement of a material fact
or omits to state a material fact necessary to make the statements herein not
misleading.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF VALLEY
References herein to the "Valley Disclosure Schedule" shall
mean all of the disclosure schedules required by this Article IV, dated as of
the date hereof and referenced to the specific sections and subsections of
Article IV of this Agreement, which have been delivered on the date hereof by
Valley to Ramapo. Valley hereby represents and warrants to Ramapo as follows:
4.1. Corporate Organization.
(a) Valley is a corporation duly organized and validly
existing and in good standing under the laws of the State of New Jersey. Valley
has the corporate power and authority to own or lease all of its properties and
assets and to carry on its business as it is now being conducted, and is duly
licensed or qualified to do business in each jurisdiction in which the nature of
the business conducted by it or the character or location of the properties and
assets owned or leased by it makes such licensing or qualification necessary,
except where the failure to be so licensed or qualified would not have a
material adverse effect on the business, operations, assets or financial
condition of Valley or its Subsidiaries (defined below). Valley is registered as
a bank holding company under the BHCA.
(b) All of the Subsidiaries of Valley are listed in the Valley
Disclosure Schedule. The term "Subsidiary" when used in this Agreement with
reference to Valley, means any corporation, joint venture, association,
partnership, trust or other entity in which Valley has, directly or indirectly,
at least a 50% interest or acts as a general partner. Each Subsidiary of Valley
is duly organized and validly existing and in good standing under the laws of
the jurisdiction of its incorporation. VNB is a national bank whose deposits are
insured by the BIF of the FDIC to the fullest extent permitted by law. Each
Subsidiary of Valley has the corporate power and authority to own or lease all
of its properties and assets and to carry on its business as it is now being
conducted and is duly licensed or qualified to do business in each jurisdiction
in which the nature of the business conducted by it or the character or location
of the properties and assets owned or leased by it makes such licensing or
qualification necessary, except where the failure to be so licensed or qualified
would not have a material adverse effect on the business, operations, assets or
financial condition of Valley and its Subsidiaries.
4.2. Capitalization. The authorized capital stock of Valley
consists solely of 98,437,500 shares of Valley Common Stock. As of November 30,
1998, there were 55,201,357 shares of Valley Common Stock issued and outstanding
net of treasury stock, and 303,545 treasury shares. Since November 30, 1998, to
and including the date of this Agreement, no additional shares of Valley Common
Stock have been issued except in connection with exercises of options granted
under the Long-Term Stock Incentive Plan of Valley (the "Valley Option Plan") or
grants under the Valley Option Plan or grants or options under any option or
stock plan assumed by Valley in connection with any other acquisition (the
"Acquired Stock Plans"). As of November 30, 1998, except for: (a) 2,352,250
shares of Valley Common Stock issuable upon exercise of outstanding stock
options and stock appreciation rights granted pursuant to the Valley Option Plan
or the Acquired Stock Plans, and (b) 14,924 shares of Valley Common Stock
issuable upon exercise of outstanding stock options granted to a consultant for
Valley, there were no shares of Valley Common Stock issuable upon the exercise
of outstanding stock options or otherwise. All issued and outstanding shares of
Valley Common Stock, and all issued and outstanding shares of capital stock of
Valley's Subsidiaries, have been duly authorized and validly issued, are fully
paid, nonassessable and free of preemptive rights, and are free and clear of all
liens, encumbrances, charges, restrictions or rights of third parties. All of
the outstanding shares of capital stock of Valley's Subsidiaries are owned by
Valley free and clear of any liens, encumbrances, charges, restrictions or
rights of third parties. Except for the options and stock appreciation rights
referred to above under the Valley Option Plan, neither Valley nor any of
Valley's Subsidiaries has or is bound by any outstanding subscriptions, options,
warrants, calls, commitments or agreements of any character calling for the
transfer, purchase or issuance of any shares of capital stock of Valley or
Valley's Subsidiaries or any securities representing the right to otherwise
receive any shares of such capital stock or any securities convertible into or
representing the right to purchase or subscribe for any such shares, and there
are no agreements or understandings with respect to voting of any such shares.
4.3. Authority; No Violation.
(a) Valley and VNB have full corporate power and authority to
execute and deliver this Agreement and to consummate the transactions
contemplated hereby in accordance with the terms hereof. Valley has a sufficient
number of authorized but unissued shares of Valley Common Stock to pay the
consideration for the Merger set forth in Article II of this Agreement. The
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly and validly approved by the
Board of Directors of each of Valley and VNB. The execution and delivery of the
Bank Merger Agreement has been duly and validly approved by the Board of
Directors of VNB. No other corporate proceedings on the part of Valley and VNB
are necessary to consummate the transactions contemplated hereby (except for the
approval by Valley of the Bank Merger Agreement). This Agreement has been duly
and validly executed and delivered by Valley and VNB and constitutes a valid and
binding obligation of Valley and VNB, enforceable against Valley and VNB in
accordance with its terms.
(b) Neither the execution or delivery of this Agreement nor
the consummation by Valley and VNB of the transactions contemplated hereby in
accordance with the terms hereof, will (i) violate any provision of the
Certificate of Incorporation or Bylaws of Valley or the Articles of Association
or Bylaws of VNB, (ii) assuming that the consents and approvals set forth below
are duly obtained, violate any statute, code, ordinance, rule, regulation,
judgment, order, writ, decree or injunction applicable to Valley or VNB or any
of their respective properties or assets, or (iii) violate, conflict with,
result in a breach of any provision of, constitute a default (or an event which,
with notice or lapse of time, or both, would constitute a default) under, result
in the termination of, accelerate the performance required by, or result in the
creation of any lien, security interest, charge or other encumbrance upon any of
the properties or assets of Valley or VNB under, any of the terms, conditions or
provisions of any note, bond, mortgage, indenture, deed of trust, license,
lease, agreement or other instrument or obligation to which Valley or VNB is a
party, or by which Valley or VNB or any of their properties or assets may be
bound or affected, except, with respect to (ii) and (iii) above, such as in the
aggregate will not have a material adverse effect on the business, operations,
assets or financial condition of Valley and Valley's Subsidiaries on a
consolidated basis, or the ability of Valley and VNB to consummate the
transactions contemplated hereby. Except for consents and approvals of or
filings or registrations with or notices to the OCC, the Department, the FRB,
the New Jersey Secretary of State, the SEC, or applicable state securities
bureaus or commissions, no consents or approvals of or filings or registrations
with or notices to any third party or any public body or authority are necessary
on behalf of Valley or VNB in connection with (a) the execution and delivery by
Valley or VNB of this Agreement, (b) the consummation by Valley of the Merger
and the other transactions contemplated hereby and (c) the execution and
delivery by VNB of the Bank Merger Agreement and the consummation by VNB of the
Bank Merger and other transactions contemplated thereby. To Valley's knowledge,
no fact or condition exists which Valley has reason to believe will prevent it
or VNB from obtaining the aforementioned consents and approvals.
4.4. Financial Statements.
(a) Valley has previously delivered to Ramapo copies of the
consolidated statements of financial condition of Valley as of December 31,
1995, 1996 and 1997, the related consolidated statements of income, changes in
stockholders' equity and of cash flows for the periods ended December 31 in each
of the three fiscal years 1995 through 1997, in each case accompanied by the
audit report of KPMG Peat Marwick LLP, independent public accountants with
respect to Valley, and the unaudited consolidated statements of condition of
Valley as of September 30, 1998 and the related unaudited consolidated
statements of income, changes in stockholders' equity and cash flows for the
nine months then ended as reported in Valley's Quarterly Report on Form 10-Q,
filed with the SEC under the 1934 Act (collectively, the "Valley Financial
Statements"). The Valley Financial Statements (including the related notes),
have been prepared in accordance with GAAP consistently applied during the
periods involved, and fairly present the consolidated financial position of
Valley as of the respective dates set forth therein, and the related
consolidated statements of income, changes in stockholders' equity and of cash
flows (including the related notes, where applicable) fairly present the results
of the consolidated operations and changes in stockholders' equity and of cash
flows of Valley for the respective fiscal periods set forth therein.
(b) The books and records of Valley and its subsidiaries have
been and are being maintained in material compliance with applicable legal and
accounting requirements, and reflect only actual transactions.
(c) Except as and to the extent reflected, disclosed or
reserved against in the Valley Financial Statements (including the notes
thereto), as of September 30, 1998 neither Valley nor any of its Subsidiaries
had or has, as the case may be, any material obligation or liability, whether
absolute, accrued, contingent or otherwise, material to the business,
operations, assets or financial condition of Valley or any of its Subsidiaries.
Since September 30, 1998, neither Valley nor any of its Subsidiaries have
incurred any material liabilities, except in the ordinary course of business and
consistent with prudent banking practice.
4.5. Brokerage Fees. Except for fees to be paid to MG
Advisors, Inc., neither Valley nor VNB nor any of their respective directors or
officers has employed any broker or finder or incurred any liability for any
broker's or finder's fees or commissions in connection with any of the
transactions contemplated by this Agreement.
4.6. Absence of Certain Changes or Events. There has not been
any material adverse change in the business, operations, assets or financial
condition of Valley and Valley's Subsidiaries on a consolidated basis since
September 30, 1998 and to Valley's knowledge, no fact or condition exists which
Valley believes will cause or is likely to cause such a material adverse change
in the future.
4.7. Valley Information. The information relating to Valley
and its Subsidiaries, this Agreement and the transactions contemplated hereby in
the Registration Statement and Proxy Statement/Prospectus (as defined in Section
5.6(a) hereof), as of the date of the mailing of the Proxy Statement/Prospectus,
and up to and including the date of the meeting of stockholders of Ramapo to
which such Proxy Statement/Prospectus relates, will not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading.
4.8. Capital Adequacy. As of the date of this Agreement Valley
has, and at the Effective Time, after taking into effect the Merger and the
transactions contemplated hereunder, Valley will have, sufficient capital to
satisfy all applicable regulatory capital requirements.
4.9. Valley Common Stock. At the Effective Time, the Valley
Common Stock to be issued pursuant to the terms of Section 2.1, when so issued,
shall be duly authorized, validly issued, fully paid, and non-assessable, free
of preemptive rights and free and clear of all liens, encumbrances or
restrictions created by or through Valley, with no personal liability attaching
to the ownership thereof.
4.10. Legal Proceedings. Except as disclosed in the Valley
Disclosure Schedule, neither Valley nor its Subsidiaries is a party to any, and
there are no pending or, to Valley's knowledge, threatened, legal,
administrative, arbitral or other proceedings, claims, actions or governmental
investigations of any nature against Valley or any of its Subsidiaries which, if
decided adversely to Valley, or any of its Subsidiaries, would have a material
adverse effect on the business, operations, assets or financial condition of
Valley and its Subsidiaries on a consolidated basis. Except as disclosed in the
Valley Disclosure Schedule, neither Valley nor any of Valley's Subsidiaries is a
party to any order, judgment or decree entered against Valley or any such
Subsidiary in any lawsuit or proceeding which would have a material adverse
effect on the business, operations, assets or financial condition of Valley and
its Subsidiaries on a consolidated basis.
4.11. Taxes and Tax Returns. To the knowledge of Valley,
Valley and its Subsidiaries have duly filed (and until the Effective Time will
so file) all Returns required to be filed by them in respect of any federal,
state and local taxes (including withholding taxes, penalties or other payments
required) and have duly paid (and until the Effective Time will so pay) all such
taxes due and payable, other than taxes or other charges which are being
contested in good faith. Valley and its Subsidiaries have established (and until
the Effective Time will establish) on their books and records reserves for the
payment of all federal, state and local taxes not yet due and payable, but
incurred in respect of Valley and its Subsidiaries through such date, which
reserves are, to the knowledge of Valley, adequate for such purposes. No
deficiencies exist or have been asserted based upon the federal income tax
returns of Valley and VNB.
4.12. Employee Benefit Plans.
(a) Valley and its Subsidiaries maintain or contribute to
certain "employee pension benefit plans" (the "Valley Pension Plans"), as such
term is defined in Section 3 of ERISA, and "employee welfare benefit plans" (the
"Valley Welfare Plans"), as such term is defined in Section 3 of ERISA. Since
September 2, 1974, neither Valley nor its Subsidiaries have contributed to any
"Multiemployer Plan", as such term is defined in Section 3(37) of ERISA.
(b) Except as set forth in Valley Disclosure Schedule, to the
knowledge of Valley, each of the Valley Pension Plans and each of the Valley
Welfare Plans has been operated in compliance in all material respects with the
provisions of ERISA, the Code, all regulations, rulings and announcements
promulgated or issued thereunder, and all other applicable governmental laws and
regulations.
(c) To the knowledge of Valley, no "accumulated funding
deficiency" within the meaning of Section 412 of the Code has been incurred with
respect to any of the Valley Pension Plans.
(d) Except with respect to customary health, life and
disability benefits or as disclosed on the Valley Disclosure Schedule, there are
no unfunded benefit obligations which are not accounted for by reserves shown on
the financial statements of Valley and established under GAAP or otherwise noted
on such financial statements.
4.13. Reports.
(a) Each communication mailed by Valley to its stockholders
since January 1, 1996, and each annual, quarterly or special report, proxy
statement or communication, as of its date, complied in all material respects
with all applicable statutes, rules and regulations enforced or promulgated by
the applicable regulatory agency and did not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading; provided that
disclosures as of a later date shall be deemed to modify disclosures as of an
earlier date.
(b) Valley and VNB have, since January 1, 1996, duly filed
with the OCC and, where applicable, the FDIC, and the FRB in correct form in all
material respects the monthly, quarterly and annual reports required to be filed
under applicable laws and regulations, and Valley, upon written request from
Ramapo, promptly will deliver or make available to Ramapo accurate and complete
copies of such reports. The Valley Disclosure Schedule lists the dates of all
examinations of Valley or VNB conducted by either the OCC, the FRB or the FDIC
since January 1, 1996.
4.14. Compliance with Applicable Law. Valley and its
Subsidiaries hold all material licenses, franchises, permits and authorizations
necessary for the lawful conduct of their respective businesses under and
pursuant to each, and has complied with and is not in default in any respect
under any, applicable law, statute, order, rule, regulation, policy and/or
guideline of any federal, state or local governmental authority relating to
Valley and its Subsidiaries (other than where such default or non-compliance
will not result in a material adverse effect on the business, operations, assets
or financial condition of Valley and its Subsidiaries on a consolidated basis)
and Valley has not received notice of violations of, and does not know of any
violations of, any of the above. Without limiting the foregoing, to its
knowledge VNB has complied in all material respects with the CRA and Valley has
no reason to believe that any person or group would object to the consummation
of the Merger due to the CRA performance or rating of VNB. To the knowledge of
Valley, except as listed on the Valley Disclosure Schedule, no person or group
has adversely commented upon VNB's CRA performance.
4.15. Properties and Insurance.
(a) Valley and its Subsidiaries have good and, as to owned
real property, marketable title to all material assets and properties, whether
real or personal, tangible or intangible, reflected in Valley's consolidated
balance sheet as of September 30, 1998, or owned and acquired subsequent thereto
(except to the extent that such assets and properties have been disposed of for
fair value in the ordinary course of business since September 30, 1998), subject
to no encumbrances, liens, mortgages, security interests or pledges, except (i)
those items that secure liabilities that are reflected in such balance sheet or
the notes thereto or incurred in the ordinary course of business after the date
of such balance sheet, (ii) statutory liens for amounts not yet delinquent or
which are being contested in good faith, (iii) such encumbrances, liens,
mortgages, security interests, pledges and title imperfections that are not in
the aggregate material to the business, operations, assets, and financial
condition of Valley and its subsidiaries taken as a whole and (iv) with respect
to owned real property, title imperfections noted in title reports delivered to
Ramapo prior to the date hereof. Valley and its Subsidiaries as lessees have the
right under valid and subsisting leases to occupy, use, possess and control all
property leased by them in all material respects as presently occupied, used,
possessed and controlled by them.
(b) The business operations and all insurable properties and
assets of Valley and its Subsidiaries are insured for their benefit against all
risks which, in the reasonable judgment of the management of Valley should be
insured against, in each case under valid, binding and enforceable policies or
bonds, with such deductibles and against such risks and losses as are in the
opinion of the management of Valley adequate for the business engaged in by
Valley and its Subsidiaries. As of the date hereof, neither Valley nor any of
its Subsidiaries has received any notice of cancellation or notice of a material
amendment of any such insurance policy or bond or is in default under such
policy or bond, no coverage thereunder is being disputed and all material claims
thereunder have been filed in a timely fashion.
4.16. Minute Books. The minute books of Valley and its
Subsidiaries contain records that are accurate in all material respects of all
meetings and other corporate action held of their respective stockholders and
Boards of Directors (including committees of their respective Boards of
Directors).
4.17. Environmental Matters. Except as disclosed in the Valley
Disclosure Schedule, neither Valley nor any of its Subsidiaries has received any
written notice, citation, claim, assessment, proposed assessment or demand for
abatement alleging that Valley or any of its Subsidiaries (either directly or as
a successor-in-interest in connection with the enforcement of remedies to
realize the value of properties serving as collateral for outstanding loans) is
responsible for the correction or clean-up of any condition material to the
business, operations, assets or financial condition of Valley or its
Subsidiaries. Except as disclosed in the Valley Disclosure Schedule, Valley has
no knowledge that any toxic or hazardous substances or materials have been
emitted, generated, disposed of or stored on any property owned or leased by
Valley or any of its Subsidiaries in any manner that violates or, after the
lapse of time may violate, any presently existing federal, state or local law or
regulation governing or pertaining to such substances and materials, the
violation of which would have a material adverse effect on the business,
operations, assets or financial condition of Valley and its Subsidiaries on a
consolidated basis.
4.18. Reserves. As of the date hereof, the reserve for loan
and lease losses in the Valley Financial Statements is, to Valley's knowledge,
adequate based upon past loan loss experiences and potential losses in the
current portfolio to cover all known or anticipated loan losses.
4.19. Year 2000 Compliance. Valley and the Valley Subsidiaries
have taken all reasonable steps necessary to address the software, accounting
and record keeping issues raised in order for the data processing systems used
in the business conducted by Valley and the Valley Subsidiaries to be
substantially Year 2000 compliant on or before the end of 1999 and Valley does
not expect the future cost of addressing such issues to be material. Neither
Valley nor any Valley Subsidiary has received a rating of less than satisfactory
from any bank regulatory agency with respect to Year 2000 compliance.
4.20. Agreements with Bank Regulators. Neither VNB nor any
Valley Subsidiary is a party to any agreement or memorandum of understanding
with, or a party to any commitment letter, board resolution submitted to a
regulatory authority or similar undertaking to, or is subject to any order or
directive by, or is a recipient of any extraordinary supervisory letter from,
any Governmental Entity which restricts materially the conduct of its business,
or in any manner relates to its capital adequacy, its credit or reserve policies
or its management, nor has Valley been advised by any Governmental Entity that
it is contemplating issuing or requesting (or is considering the appropriateness
of issuing or requesting) any such order, decree, agreement, memorandum of
understanding, extraordinary supervisory letter, commitment letter or similar
submission, except as disclosed in writing to Ramapo by Valley prior to the date
of this Agreement. Neither VNB nor any Valley Subsidiary is required by Section
32 of the Federal Deposit Insurance Act to give prior notice to a Federal
banking agency of the proposed addition of an individual to its board of
directors or the employment of an individual as a senior executive officer,
except as disclosed in writing to Ramapo by Valley prior to the date of this
Agreement.
4.21. Disclosures. No representation or warranty contained in
Article IV of this Agreement contains any untrue statement of a material fact or
omits to state a material fact necessary to make the statements herein not
misleading.
ARTICLE V
COVENANTS OF THE PARTIES
5.1. Conduct of the Business of Ramapo. During the period from
the date of this Agreement to the Effective Time, Ramapo shall, and shall cause
each of its Subsidiaries to, conduct its respective business and engage in
transactions permitted hereunder only in the ordinary course and consistent with
prudent banking practice, except with the prior written consent of Valley, which
consent will not be unreasonably withheld. Ramapo also shall use its best
efforts to (i) preserve its business organization and that of each Ramapo
Subsidiary intact, (ii) keep available to itself the present services of its
employees and those of its Subsidiaries, provided that neither Ramapo nor any of
its Subsidiaries shall be required to take any unreasonable or extraordinary act
or any action which would conflict with any other term of this Agreement, and
(iii) preserve for itself and Valley the goodwill of its customers and those of
its Subsidiaries and others with whom business relationships exist.
5.2. Negative Covenants and Dividend Covenants.
(a) Ramapo agrees that from the date hereof to the Effective
Time, except as otherwise approved by Valley in writing or as permitted or
required by this Agreement, it will not, nor will it permit any of its
Subsidiaries to:
(i) change any provision of its Certificate of
Incorporation or Bylaws or any similar governing documents;
(ii) except for the issuance of Ramapo Common Stock
pursuant to the present terms of the outstanding Ramapo Options and the Valley
Stock Option and as disclosed in the Ramapo Disclosure Schedule, change the
number of shares of its authorized or issued common or No Par Stock or issue or
grant any option, warrant, call, commitment, subscription, right to purchase or
agreement of any character relating to the authorized or issued capital stock of
Ramapo or any Ramapo Subsidiary or any securities convertible into shares of
such stock, or split, combine or reclassify any shares of its capital stock, or
redeem or otherwise acquire any shares of such capital stock, or declare, set
aside or pay any dividend, or other distribution (whether in cash, stock or
property or any combination thereof) in respect of its capital stock, other than
its regular quarterly dividend of $0.04;
(iii) grant any severance or termination pay (other
than pursuant to policies of Ramapo in effect on the date hereof and disclosed
in the Ramapo Disclosure Schedule or as agreed to by Valley in writing) to, or
enter into or amend any employment agreement with, any of its directors,
officers or employees, adopt any new employee benefit plan or arrangement of any
type or amend any such existing benefit plan or arrangement; or award any
increase in compensation or benefits to its directors, officers or employees;
(iv) sell or dispose of any substantial amount of
assets or incur any significant liabilities other than in the ordinary course of
business consistent with past practices and policies;
(v) make any capital expenditures in excess of
$100,000 other than pursuant to binding commitments existing on the date hereof
and expenditures necessary to maintain existing assets in good repair and
expenditures described in business plans or budgets previously furnished to
Valley;
(vi) file any applications or make any contract with
respect to branching or site location or relocation;
(vii) agree to acquire in any manner whatsoever
(other than to foreclose on collateral for a defaulted loan) any business or
entity;
(viii) make any material change in its accounting
methods or practices, other than changes required in accordance with GAAP;
(ix) take any action that would result in any of the
representations and warranties contained in Article III of this Agreement not
being true and correct in any material respect at the Effective Time; or
(x) agree to do any of the foregoing.
(b) Valley agrees that from the date hereof to the Effective
Time, except as otherwise approved by Ramapo in writing or as permitted or
required by this Agreement, it will not, nor will it permit any of its
Subsidiaries to:
(i) take any action that is intended or may
reasonably be expected to result in any of its representations and warranties
set forth in this Agreement being or becoming untrue in any material respect;
(ii) take or cause to be taken any action which would
disqualify the Merger as a tax free reorganization under Section 368 of the
Code;
(iii) consolidate with or merge with any other person
or entity in which Valley is not the surviving entity, or convey, transfer or
lease its properties and assets substantially as an entirety to any person or
entity unless such person or entity shall expressly assume the obligations of
Valley under this Agreement; or
(iv) authorize or enter into any agreement or
commitment to do any of the foregoing.
5.3. No Solicitation. So long as this Agreement remains in
effect, Ramapo and the Bank shall not, directly or indirectly, encourage or
solicit or hold discussions or negotiations with, or provide any information to,
any person, entity or group (other than Valley) concerning any merger or sale of
shares of capital stock or sale of substantial assets or liabilities not in the
ordinary course of business, or similar transactions involving Ramapo or the
Bank (an "Acquisition Transaction"). Notwithstanding the foregoing, Ramapo may
enter into discussions or negotiations or provide information in connection with
an unsolicited possible Acquisition Transaction if the Board of Directors of
Ramapo, after consulting with counsel, determines in the exercise of its
fiduciary responsibilities that such discussions or negotiations should be
commenced or such information should be furnished. Ramapo shall promptly
communicate to Valley the terms of any proposal, whether written or oral, which
it may receive in respect of any such Acquisition Transaction and the fact that
it is having discussions or negotiations with a third party about an Acquisition
Transaction.
5.4. Current Information. During the period from the date of
this Agreement to the Effective Time, Ramapo will cause one or more of its
designated representatives to confer on a monthly or more frequent basis with
representatives of Valley regarding Ramapo's business, operations, properties,
assets and financial condition and matters relating to the completion of the
transactions contemplated herein. Without limiting the foregoing, Ramapo will
send to Valley a monthly list of each new loan or extension of credit, and each
renewal of an existing loan or extension of credit, in excess of $100,000, made
during such month, and provide Valley with a copy of the loan offering for any
such loan, extension of credit, or renewal upon request. As soon as reasonably
available, but in no event more than 45 days after the end of each fiscal
quarter (other than the last fiscal quarter of each fiscal year) ending after
the date of this Agreement, Ramapo will deliver to Valley the Bank's call
reports filed with the Department and FDIC and Ramapo's quarterly reports on
Form 10-Q as filed with the SEC under the 1934 Act, and Valley will deliver to
Ramapo Valley's quarterly reports on Form 10-Q, as filed with the SEC under the
1934 Act, and VNB's call reports filed with the OCC and the FDIC. As soon as
reasonably available, but in no event more than 90 days after the end of each
fiscal year, Ramapo will deliver to Valley and Valley will deliver to Ramapo
their respective audited Annual Reports, in each case as filed on Form 10-K with
the SEC under the 1934 Act.
5.5. Access to Properties and Records; Confidentiality.
(a) Ramapo and the Bank shall permit Valley and its
representatives, and Valley and VNB shall permit Ramapo and its representatives,
accompanied by an officer of the respective party, reasonable access to their
respective properties, and shall disclose and make available to Valley and its
representatives or Ramapo and its representatives as the case may be, all books,
papers and records relating to their respective assets, stock ownership,
properties, operations, obligations and liabilities, including, but not limited
to, all books of account (including the general ledger), tax records, minute
books of directors' and stockholders' meetings, organizational documents,
bylaws, material contracts and agreements, filings with any regulatory
authority, independent auditors' work papers (subject to the receipt by such
auditors of a standard access representation letter), litigation files, plans
affecting employees, and any other business activities or prospects in which
Valley and its representatives or Ramapo and its representatives may have a
reasonable interest. Neither party shall be required to provide access to or to
disclose information where such access or disclosure would violate or prejudice
the rights of any customer or would contravene any law, rule, regulation, order
or judgment. The parties will use their best efforts to obtain waivers of any
such restriction and in any event make appropriate substitute disclosure
arrangements under circumstances in which the restrictions of the preceding
sentence apply. Ramapo acknowledges that Valley may be involved in discussions
concerning other potential acquisitions and Valley shall not be obligated to
disclose such information to Ramapo except as such information is publicly
disclosed by Valley.
(b) All information furnished by the parties hereto previously
in connection with transactions contemplated by this Agreement or pursuant
hereto shall be used solely for the purpose of evaluating the Merger
contemplated hereby and shall be treated as the sole property of the party
delivering the information until consummation of the Merger contemplated hereby
and, if such Merger shall not occur, each party and each party's advisors shall
return to the other party all documents or other materials containing,
reflecting or referring to such information, will not retain any copies of such
information, shall use its best efforts to keep confidential all such
information, and shall not directly or indirectly use such information for any
competitive or other commercial purposes. In the event that the Merger
contemplated hereby is abandoned, all documents, notes and other writings
prepared by a party hereto or its advisors based on information furnished by the
other party shall be promptly destroyed. The obligation to keep such information
confidential shall continue for five years from the date the proposed Merger is
abandoned but shall not apply to (i) any information which (A) the party
receiving the information can establish by convincing evidence was already in
its possession prior to the disclosure thereof to it by the other party; (B) was
then generally known to the public; (C) became known to the public through no
fault of the party receiving such information; or (D) was disclosed to the party
receiving such information by a third party not bound by an obligation of
confidentiality; or (ii) disclosures pursuant to a legal requirement or in
accordance with an order of a court of competent jurisdiction.
(c) Without limiting the rights provided under Section 5.5(a),
each of Valley and Ramapo shall have the right to conduct a full and complete
acquisition audit and to perform such due diligence as it deems appropriate,
using its own officers and employees or third parties, for purposes of
determining whether there is a material breach of any representation or warranty
hereunder or a material adverse change in the business or financial condition of
the other party. Such acquisition audit or due diligence shall not be limited or
restricted by virtue of any audit or due diligence performed before the date
hereof or for any other reason, but shall not unduly interfere with the business
of the other party.
(d) Without limiting the foregoing, Valley and VNB, directly
or through agents, for a period of 30 calendar days (the "Due Diligence Period")
following the date of this Agreement, shall have the right to perform due
diligence on Ramapo and the Bank and a complete acquisition audit of Ramapo and
the Bank.
5.6. Regulatory Matters.
(a) For the purposes of holding the meeting of Ramapo
stockholders referred to in Section 5.7 hereof and registering or otherwise
qualifying under applicable federal and state securities laws Valley Common
Stock to be issued to Record Holders and Optionees in connection with the
Merger, the parties hereto shall cooperate in the preparation and filing by
Valley of a Registration Statement with the SEC which shall include an
appropriate proxy statement and prospectus satisfying all applicable
requirements of applicable state and federal laws, including the 1993 Act, the
1934 Act and applicable state securities laws and the rules and regulations
thereunder. (Such proxy statement and prospectus in the form mailed by Ramapo to
the Ramapo stockholders and Optionees together with any and all amendments or
supplements thereto, is herein referred to as the "Proxy Statement/Prospectus"
and the various documents to be filed by Valley under the 1933 Act with the SEC
to register for sale the Valley Common Stock to be issued to Record Holders and
Optionees, including the Proxy Statement/Prospectus, are referred to herein as
the "Registration Statement").
(b) Valley shall furnish information concerning Valley and VNB
as is necessary in order to cause the Proxy Statement/Prospectus, insofar as it
relates to Valley and VNB, to comply with Section 5.6(a) hereof. Valley agrees
promptly to advise Ramapo if at any time prior to the Ramapo stockholder meeting
referred to in Section 5.7 hereof, any information provided by Valley in the
Proxy Statement/Prospectus becomes incorrect or incomplete in any material
respect and to provide Ramapo with the information needed to correct such
inaccuracy or omission. Valley shall furnish Ramapo with such supplemental
information as may be necessary in order to cause the Proxy
Statement/Prospectus, insofar as it relates to Valley and VNB, to comply with
Section 5.6(a) after the mailing thereof to Ramapo stockholders.
(c) Ramapo shall furnish Valley with such information
concerning Ramapo and the Bank as is necessary in order to cause the Proxy
Statement/Prospectus, insofar as it relates to Ramapo and the Bank, to comply
with Section 5.6(a) hereof. Ramapo agrees promptly to advise Valley if, at any
time prior to the Ramapo stockholders' meeting referred to in Section 5.6(a)
hereof, information provided by Ramapo in the Proxy Statement/Prospectus becomes
incorrect or incomplete in any material respect and to provide Valley with the
information needed to correct such inaccuracy or omission. Ramapo shall furnish
Valley with such supplemental information as may be necessary in order to cause
the Proxy Statement/Prospectus, insofar as it relates to Ramapo and the Bank, to
comply with Section 5.6(a) after the mailing thereof to Ramapo stockholders.
(d) Valley shall as promptly as practicable, at its sole
expense, make such filings as are necessary in connection with the offering of
the Valley Common Stock with applicable state securities agencies and shall use
all reasonable efforts to qualify the offering of the Valley Common Stock under
applicable state securities laws at the earliest practicable date. Ramapo shall
promptly furnish Valley with such information regarding the Ramapo stockholders
as Valley requires to enable it to determine what filings are required
hereunder. Ramapo authorizes Valley to utilize in such filings the information
concerning Ramapo and the Bank provided to Valley in connection with, or
contained in, the Proxy Statement/Prospectus. Valley shall furnish Ramapo with
copies of all such filings and keep Ramapo advised of the status thereof. Valley
and Ramapo shall as promptly as practicable file the Registration Statement
containing the Proxy Statement/Prospectus with the SEC, and each of Valley and
Ramapo shall promptly notify the other of all communications, oral or written,
with the SEC concerning the Registration Statement and the Proxy
Statement/Prospectus.
(e) Valley shall cause the Valley Common Stock to be issued in
connection with the Merger to be listed on the New York Stock Exchange.
(f) The parties hereto will cooperate with each other and use
their best efforts to prepare all necessary documentation, to effect all
necessary filings and to obtain all necessary permits, consents, waivers,
approvals and authorizations of all third parties and governmental bodies
necessary to consummate the transactions contemplated by this Agreement as soon
as possible, including, without limitation, those required by the OCC, the
Department, the FDIC and the FRB. The parties shall each have the right to
review in advance (and shall do so promptly) all information relating to the
other, as the case may be, and any of their respective subsidiaries, which
appears in any filing made with, or written material submitted to, any third
party or governmental body in connection with the transactions contemplated by
this Agreement. The parties hereto shall use reasonable business efforts to file
for approval or waiver by the appropriate bank regulatory agencies within 60
days of the date hereof.
(g) Each of the parties will promptly furnish each other with
copies of written communications received by them or any of their respective
subsidiaries from, or delivered by any of the foregoing to, any governmental
body in respect of the transactions contemplated hereby.
(h) Ramapo acknowledges that Valley is in or may be in the
process of acquiring other banks and financial institutions and that in
connection with such acquisitions, information concerning Ramapo may be required
to be included in the registration statements, if any, for the sale of
securities of Valley or in SEC reports in connection with such acquisitions.
Ramapo agrees to provide Valley with any information, certificates, documents or
other materials about Ramapo as are reasonably necessary to be included in such
other SEC reports or registration statements, including registration statements
which may be filed by Valley prior to the Effective Time. Ramapo shall use its
reasonable efforts to cause its attorneys and accountants to provide Valley and
any underwriters for Valley with any consents, comfort letters, opinion letters,
reports or information which are necessary to complete the registration
statements and applications for any such acquisition or issuance of securities.
Valley shall reimburse Ramapo for reasonable expenses thus incurred by Ramapo
should this transaction be terminated for any reason. Valley shall not file with
the SEC any registration statement or amendment thereto or supplement thereof
containing information regarding Ramapo unless Ramapo shall have consented in
writing to such filing, which consent shall not be unreasonably delayed or
withheld.
(i) Between the date of this Agreement and the Effective Time,
Ramapo shall cooperate with Valley to reasonably conform Ramapo's policies and
procedures regarding applicable regulatory matters, to those of Valley as Valley
may reasonably identify to Ramapo from time to time.
5.7. Approval of Stockholders. Ramapo will (a) take all steps
necessary duly to call, give notice of, convene and hold a meeting of the
stockholders of Ramapo as soon as reasonably practicable for the purpose of
securing the approval by such stockholders of this Agreement, (b) recommend to
the stockholders of Ramapo the approval of this Agreement and the transactions
contemplated hereby and use its best efforts to obtain, as promptly as
practicable, such approvals, and (c) cooperate and consult with Valley with
respect to each of the foregoing matters. In connection therewith, Ramapo will
use reasonable efforts to cause each director of Ramapo to (i) agree to vote in
favor of the Merger, and (ii) take such action as is necessary or is reasonably
required by Valley to consummate the Merger.
5.8. Further Assurances. Subject to the terms and conditions
herein provided, each of the parties hereto agrees to use its best efforts to
take, or cause to be taken, all actions and to do, or cause to be done, all
things necessary, proper or advisable under applicable laws and regulations to
satisfy the conditions to Closing and to consummate and make effective the
transactions contemplated by this Agreement, including, without limitation,
using reasonable efforts to lift or rescind any injunction or restraining order
or other order adversely affecting the ability of the parties to consummate the
transactions contemplated by this Agreement and using its best efforts to
prevent the breach of any representation, warranty, covenant or agreement of
such party contained or referred to in this Agreement and to promptly remedy the
same. Valley will take the necessary actions to cure appropriate tainted
treasury shares so that the Merger meets the treasury stock condition for
pooling-of-interests accounting. Nothing in this section shall be construed to
require any party to participate in any threatened or actual legal,
administrative or other proceedings (other than proceedings, actions or
investigations to which it is otherwise a party or subject or threatened to be
made a party or subject) in connection with consummation of the transactions
contemplated by this Agreement unless such party shall consent in advance and in
writing to such participation and the other party agrees to reimburse and
indemnify such party for and against any and all costs and damages related
thereto.
5.9. Public Announcements. The parties hereto shall cooperate
with each other in the development and distribution of all news releases and
other public disclosures with respect to this Agreement or any of the
transactions contemplated hereby, except as may be otherwise required by law or
regulation or as to which the party releasing such information has used its best
efforts to discuss with the other party in advance.
5.10. Failure to Fulfill Conditions. In the event that Valley
or Ramapo determines that a material condition to its obligation to consummate
the transactions contemplated hereby cannot be fulfilled on or prior to
September 30, 1999 (the "Cutoff Date") and that it will not waive that
condition, it will promptly notify the other party. Except for any acquisition
or merger discussions Valley may enter into with other parties, Ramapo and
Valley will promptly inform the other of any facts applicable to Ramapo or
Valley, respectively, or their respective directors or officers, that would be
likely to prevent or materially delay approval of the Merger by any governmental
authority or which would otherwise prevent or materially delay completion of the
Merger.
5.11. Disclosure Supplements.
(a) Ramapo has delivered to Valley as of the date hereof
certain items which presently constitute the Ramapo Disclosure Schedule. Ramapo
shall have the right to provide supplements, additions and corrections to the
Ramapo Disclosure Schedule for a period of 15 calendar days after the date
hereof and such supplements and additions or corrections provided within that
15-day period shall be deemed to have been provided on the date hereof and to
qualify the representations and warranties of Ramapo as of such date. However,
during the Due Diligence Period, Valley shall have the right, as hereafter
provided, to exercise its termination right based upon the supplements,
additions and corrections so provided.
(b) In addition to Ramapo's rights during the first 15-day
period under Section 5.11(a) above, from time to time prior to the Effective
Time, each party hereto will promptly supplement or amend (by written notice to
the other) its respective Disclosure Schedules delivered pursuant hereto with
respect to any matter hereafter arising which, if existing, occurring or known
at the date of this Agreement, would have been required to be set forth or
described in such Schedules or which is necessary to correct any information in
such Schedules which has been rendered materially inaccurate thereby. For the
purpose of determining satisfaction of the conditions set forth in Article VI,
no supplement or amendment to such Schedules shall correct or cure any warranty
which was untrue when made, but supplements or amendments may be used to
disclose subsequent facts or events to maintain the truthfulness of any
warranty.
5.12 Transaction Expenses of Ramapo.
(a) For planning purposes, Ramapo shall, within 30 days from
the date hereof, provide Valley with its estimated budget of transaction-related
expenses reasonably anticipated to be payable by Ramapo in connection with this
transaction based on facts and circumstances currently known, including the fees
and expenses of counsel, accountants, investment bankers and other
professionals. Ramapo shall promptly notify Valley if or when it determines that
it will expect to exceed its budget. Ramapo has previously disclosed to Valley
the method by which the fees of its investment bankers and counsel in connection
with this transaction are to be determined, and has disclosed to Valley the fees
of its counsel in connection with this transaction through a recent date.
(b) Promptly, but in any event within 30 days, after the
execution of this Agreement, Ramapo shall ask all of its attorneys and other
professionals to render current and correct invoices for all unbilled time and
disbursements. Ramapo shall accrue and/or pay all of such amounts as soon as
possible.
(c) Ramapo shall cause its professionals to render monthly
invoices within 30 days after the end of each month. Ramapo shall notify Valley
monthly of all out-of-pocket expenses which Ramapo has incurred in connection
with this transaction.
(d) Valley, in reasonable consultation with Ramapo, shall make
all arrangements with respect to the printing and mailing of the Proxy
Statement/Prospectus.
5.13. Closing. The parties hereto shall cooperate and use
reasonable efforts to try to cause the Effective Time to occur on or before June
1, 1999.
5.14. Indemnification. After the Effective Time, to the extent
permitted by applicable law and/or the Certificate of Incorporation or Articles
of Association, Valley agrees that it will, or will cause VNB to, provide to the
directors and officers of Ramapo and the Bank indemnification with respect to
acts or omissions occurring prior to the Effective Time, including without
limitation, the authorization of this Agreement and the transactions
contemplated hereby, for a period of six years from the Effective Time, or in
the case of matters occurring prior to the Effective Time which have not been
resolved prior to the sixth anniversary of the Effective Time, until such
matters are finally resolved. To the extent permitted by applicable law and/or
the Certificate of Incorporation or Articles of Association, Valley or VNB (as
applicable) shall advance expenses in connection with the foregoing
indemnification.
5.15. Employment Matters.
(a) Following consummation of the Merger, Valley will honor
the existing written employment and severance contracts with officers and
employees of Ramapo and the Bank that exist on the date hereof and are included
in the Ramapo Disclosure Schedule. Ramapo shall use its best efforts to cause
its officers to enter into the arrangements contemplated in Section 5.15 of the
Valley Disclosure Schedule.
(b) Following the consummation of the Merger and for one year
thereafter, VNB shall, to the extent not duplicative of other severance
benefits, honor the Bank's severance policy as specified in Section 5.15(b) of
the Ramapo Disclosure Schedule to pay one week of severance for each year of
service completed while employed by Ramapo and/or the Bank, with a maximum
benefit of 26 weeks and a minimum of four (4) weeks.
(c) Valley intends, to the extent practical, to continue the
employment of all officers and employees of the Bank, at or near the same
location, with the same or equivalent salary and benefits. Valley intends, to
the extent practical, to have all Ramapo employees participate in the benefits
and opportunities available to all Valley employees.
5.16. Pooling and Tax-Free Reorganization Treatment. Ramapo
shall not intentionally take, fail to take or cause to be taken, any action
within its control, whether before or after the Effective Time, which would
disqualify the Merger as a "pooling of interests" for accounting purposes or as
a "reorganization" within the meaning of Section 368(a) of the Code.
5.17. Ramapo Option Plan. From and after the Effective Time,
each Ramapo Option which is converted to an option to purchase Valley Common
Stock under Section 2.1(b) shall be administered, operated and interpreted by a
committee comprised of members of the Board of Directors of Valley appointed by
the Board of Directors of Valley. Valley shall reserve for issuance the number
of shares of Valley Common Stock necessary to satisfy Valley's obligations.
Valley shall also register, if not previously registered pursuant to the 1933
Act, the shares authorized for issuance under the Ramapo Options so converted.
5.18. Affiliates.
(a) Promptly, but in any event within 30 days, after the
execution and delivery of this Agreement, (i) Ramapo shall deliver to Valley (x)
a letter identifying all persons who, to the knowledge of Ramapo, may be deemed
to be affiliates of Ramapo under Rule 145 of the 1933 Act, including without
limitation all directors and executive officers of Ramapo and (y) a letter
identifying all persons who, to the knowledge of Ramapo, may be deemed to be
affiliates of Ramapo as that term (affiliate) is used for purposes of qualifying
for pooling-of-interests accounting treatment; and (ii) Valley shall identify to
Ramapo all persons who, to the knowledge of Valley, may be deemed affiliates of
Valley as that term (affiliates) is used for purposes of qualifying for
pooling-of-interests accounting treatment.
(b) Ramapo shall cause each director of Ramapo to, and Ramapo
shall use its best efforts to cause each executive officer of Ramapo and each
other person who may be deemed an affiliate of Ramapo (under either Rule 145 of
the 1933 Act or the accounting treatment rules) to, execute and deliver to
Valley within 30 days after the execution and delivery of this Agreement, a
letter substantially in the form of Exhibit 5.18 hereto agreeing to be bound by
the restrictions of Rule 145 and agreeing to be bound by the rules which permit
the Merger to be treated as a pooling of interests for accounting purposes. In
addition, Valley shall cause each director and executive officer of Valley to,
and Valley shall use its best efforts to cause each other person who may be
deemed an affiliate of Valley (as that term is used for purposes of qualifying
for pooling of interests) to, execute and deliver to Valley within 30 days after
the execution and delivery of this Agreement, a letter substantially in the form
of Exhibit 5.18.1 hereto in which such persons agree to be bound by the rules
which permit the Merger to be treated as a pooling of interests for accounting
treatment.
5.19. Compliance with the Industrial Site Recovery Act.
Ramapo, at its sole cost and expense, shall use its best efforts to obtain prior
to the Effective Time, with respect to each facility located in New Jersey owned
or operated by Ramapo or any Ramapo Subsidiary (each, a "Facility"), either: (a)
a Letter of Non-Applicability ("LNA") from the New Jersey Department of
Environmental Protection ("NJDEP") stating that the Facility is not an
"industrial establishment," as such term is defined under the Industrial Site
Recovery Act ("ISRA"); (b) a Remediation Agreement issued by the NJDEP pursuant
to ISRA authorizing the consummation of the transactions contemplated by this
Agreement; (c) a Negative Declaration approval, Remedial Action Workplan
approval, No Further Action letter or other document or documents issued by the
NJDEP advising that the requirements of ISRA have been satisfied with respect to
the Facility; or (d) an opinion addressed to Valley from New Jersey legal
counsel reasonably acceptable to Valley to the effect that ISRA has been
complied with, or is inapplicable, with respect to the Facility. In the event
Ramapo obtains a Remediation Agreement, Ramapo will post or have posted an
appropriate Remediation Funding Source or will have obtained the NJDEP's
approval to self-guaranty any Remediation Funding Source required under any such
Remediation Agreement.
5.20. New Valley Director. As of the Effective Time, Valley
shall cause its Board of Directors and the VNB Board of Directors to take action
to appoint Richard S. Miller to the Boards of Directors of Valley and VNB,
respectively, at the Effective Time.
ARTICLE VI
CLOSING CONDITIONS
6.1. Conditions of Each Party's Obligations Under this
Agreement. The respective obligations of each party under this Agreement to
consummate the Merger shall be subject to the satisfaction, or, where
permissible under applicable law, waiver at or prior to the Effective Time of
the following conditions:
(a) Approval of Ramapo Stockholders; SEC Registration. This
Agreement and the transactions contemplated hereby shall have been approved by
the requisite vote of the stockholders of Ramapo. The Registration Statement
shall have been declared effective by the SEC and shall not be subject to a stop
order or any threatened stop order, and the issuance of the Valley Common Stock
shall have been qualified in every state where such qualification is required
under the applicable state securities laws. The Valley Common Stock to be issued
in connection with the Merger, including Valley Common Stock to be issued for
the Ramapo Options, shall have been approved for listing on the New York Stock
Exchange.
(b) Regulatory Filings. All necessary regulatory or
governmental approvals and consents (including without limitation any required
approval of the OCC and any approval or waiver required by the FRB) required to
consummate the transactions contemplated hereby shall have been obtained without
any term or condition which would materially impair the value of Ramapo and the
Bank, taken as a whole, to Valley. All conditions required to be satisfied prior
to the Effective Time by the terms of such approvals and consents shall have
been satisfied; and all statutory waiting periods in respect thereof shall have
expired.
(c) Suits and Proceedings. No order, judgment or decree shall
be outstanding against a party hereto or a third party that would have the
effect of preventing completion of the Merger; no suit, action or other
proceeding shall be pending or threatened by any governmental body in which it
is sought to restrain or prohibit the Merger or the Bank Merger; and no suit,
action or other proceeding shall be pending before any court or governmental
agency in which it is sought to restrain or prohibit the Merger or the Bank
Merger or obtain other substantial monetary or other relief against one or more
parties hereto in connection with this Agreement and which Valley or Ramapo
determines in good faith, based upon the advice of their respective counsel,
makes it inadvisable to proceed with the Merger because any such suit, action or
proceeding has a significant potential to be resolved in such a way as to
deprive the party electing not to proceed of any of the material benefits to it
of the Merger or the Bank Merger.
(d) Tax Free Exchange. Valley and Ramapo shall have received
an opinion, satisfactory to Valley and Ramapo, of Pitney, Hardin, Kipp & Szuch,
counsel for Valley, to the effect that the transactions contemplated hereby will
result in a reorganization (as defined in Section 368(a) of the Code), and
accordingly no gain or loss will be recognized for federal income tax purposes
to Valley, Ramapo, VNB or the Bank or to the stockholders of Ramapo who exchange
their shares of Ramapo for Valley Common Stock (except to the extent that cash
is received in lieu of fractional shares of Valley Common Stock).
(e) Pooling of Interests. The Merger shall be qualified to be
treated by Valley as a pooling-of-interests for accounting purposes and Valley
shall have received a letter from KPMG Peat Marwick LLP to the effect that the
Merger will qualify for pooling-of-interests accounting treatment if closed and
consummated in accordance with the Agreement.
6.2. Conditions to the Obligations of Valley Under this
Agreement. The obligations of Valley under this Agreement shall be further
subject to the satisfaction or waiver, at or prior to the Effective Time, of the
following conditions:
(a) Representations and Warranties; Performance of Obligations
of Ramapo and Bank. The representations and warranties of Ramapo contained in
this Agreement shall be true and correct in all material respects on the Closing
Date as though made on and as of the Closing Date. Ramapo shall have performed
in all material respects the agreements, covenants and obligations necessary to
be performed by it prior to the Closing Date. With respect to any representation
or warranty which as of the Closing Date has required a supplement or amendment
to the Ramapo Disclosure Schedule to render such representation or warranty true
and correct as of the Closing Date, the representation and warranty shall be
deemed true and correct as of the Closing Date only if (i) the information
contained in the supplement or amendment to the Disclosure Schedule related to
events occurring following the execution of this Agreement and (ii) the facts
disclosed in such supplement or amendment would not either alone, or together
with any other supplements or amendments to the Ramapo Disclosure Schedule,
materially adversely affect the representation as to which the supplement or
amendment relates.
(b) Consents. Valley shall have received the written consents
of any person whose consent to the transactions contemplated hereby is required
under the applicable instrument.
(c) Opinion of Counsel. Valley shall have received an opinion
of counsel to Ramapo, dated the date of the Closing, in form and substance
reasonably satisfactory to Valley, covering the matters set forth on Schedule
6.2 hereto and any other matters reasonably requested by Valley.
(d) Bank Action. The Bank shall have taken all necessary
corporate action to effectuate the Bank Merger immediately following the
Effective Time.
(e) Certificates. Ramapo shall have furnished Valley with such
certificates of its officers or other documents to evidence fulfillment of the
conditions set forth in this Section 6.2 as Valley may reasonably request.
(f) Environmental Law Compliance. Ramapo shall have obtained,
with respect to each Facility, an LNA, a Remediation Agreement, a Negative
Declaration approval, a Remedial Action Workplan approval (in which event Ramapo
will post or have posted an appropriate Remediation Funding Source or will have
obtained the NJDEP's approval to self-guaranty any Remediation Funding Source
required under any such Remediation Agreement), a No Further Action letter or
other document or documents issued by the NJDEP advising that the requirements
of ISRA have been satisfied with respect to the Facility or an opinion of the
type referred to in Section 5.19(d) hereof.
6.3. Conditions to the Obligations of Ramapo Under this
Agreement. The obligations of Ramapo under this Agreement shall be further
subject to the satisfaction or waiver, at or prior to the Effective Time, of the
following conditions:
(a) Representations and Warranties; Performance of Obligations
of Valley. The representations and warranties of Valley contained in this
Agreement shall be true and correct in all material respects on the Closing Date
as though made on and as of the Closing Date. Valley shall have performed in all
material respects, the agreements, covenants and obligations to be performed by
it prior to the Closing Date. With respect to any representation or warranty
which as of the Closing Date has required a supplement or amendment to the
Valley Disclosure Schedule to render such representation or warranty true and
correct as of the Closing Date, the representation and warranty shall be deemed
true and correct as of the Closing Date only if (i) the information contained in
the supplement or amendment to the Disclosure Schedule related to events
occurring following the execution of this Agreement and (ii) the facts disclosed
in such supplement or amendment would not either alone, or together with any
other supplements or amendments to the Valley Disclosure Schedule, materially
adversely affect the representation as to which the supplement or amendment
relates.
(b) Opinion of Counsel to Valley. Ramapo shall have received
an opinion of counsel to Valley, dated the date of the Closing, in form and
substance reasonably satisfactory to Ramapo, covering the matters set forth on
Schedule 6.3 hereto and any other matter reasonably requested by Ramapo.
(c) Fairness Opinion. Ramapo shall have received opinions from
Danielson, as of the date of this Agreement and as of the date the Proxy
Statement/Prospectus is mailed to Ramapo's stockholders, with respect to the
fairness, from a financial point of view, of the Exchange Ratio to the
shareholders of Ramapo in the Merger.
(d) Certificates. Valley shall have furnished Ramapo with such
certificates of its officers or others and such other documents to evidence
fulfillment of the conditions set forth in this Section 6.3 as Ramapo may
reasonably request.
(e) VNB Action. VNB shall have taken all necessary corporate
action to effectuate the Bank Merger immediately following the Effective Time.
ARTICLE VII
TERMINATION, AMENDMENT AND WAIVER
7.1. Termination. This Agreement may be terminated prior to
the Effective Time, whether before or after approval of this Agreement by the
stockholders of Ramapo, based upon any of the following:
(a) By mutual written consent of the parties hereto.
(b) By Valley or Ramapo (i) if the Effective Time shall not
have occurred on or prior to the Cutoff Date or (ii) if a vote of the
stockholders of Ramapo is taken and such stockholders fail to approve this
Agreement at the meeting (or any adjournment thereof) held for such purpose,
unless in each case the failure of such occurrence shall be due to the failure
of the party seeking to terminate this Agreement to perform or observe its
agreements set forth herein to be performed or observed by such party (or, in
the case of Ramapo, to be performed or observed by the directors of Ramapo) at
or before the Effective Time.
(c) By Valley or Ramapo upon written notice to the other if
any application for regulatory or governmental approval necessary to consummate
the Merger and the other transactions contemplated hereby shall have been denied
or withdrawn at the request or recommendation of the applicable regulatory
agency or governmental authority or by Valley upon written notice to Ramapo if
any such application is approved with conditions which materially impair the
value of Ramapo and the Bank, taken as a whole, to Valley.
(d) By Valley if (i) there shall have occurred a material
adverse change in the business, operations, assets, or financial condition of
Ramapo or the Bank, taken as a whole, from that disclosed by Ramapo on the date
of this Agreement; or (ii) if the net operating income excluding security gains
and losses (after tax but excluding expenses related to this Agreement) of
Ramapo for any full fiscal quarter after September 30, 1998, is less than
$750,000; or (iii) there was a material breach in any representation, warranty,
covenant, agreement or obligation of Ramapo hereunder.
(e) By Ramapo, if (i) there shall have occurred a material
adverse change in the business, operations, assets or financial condition of
Valley or VNB from that disclosed by Valley on the date of this Agreement; or
(ii) there was a material breach in any representation, warranty, covenant,
agreement or obligation of Valley hereunder.
(f) By Valley or Ramapo if any condition to Closing specified
under Article VI hereof applicable to such party cannot reasonably be met on or
before the Cutoff Date after giving the other party a reasonable opportunity to
cure any such condition.
(g) By Ramapo if the Average Pre-Closing Price of Valley
Common Stock is less than $23.50.
(h) By Valley during the Due Diligence Period if the due
diligence review by Valley or any Disclosure Schedules provided by Ramapo after
the date hereof causes Valley to reasonably reach a conclusion about the
financial condition, business, assets or the quality of the representations and
warranties of Ramapo, significantly adverse from conclusions about the same
matters which Valley's senior executives held at the time Valley executed this
Agreement.
7.2. Effect of Termination. In the event of the termination
and abandonment of this Agreement by either Valley or Ramapo pursuant to Section
7.1, this Agreement shall forthwith become void and have no effect, without any
liability on the part of any party or its officers, directors or stockholders,
except that Sections 5.5(b) and 8.1 hereof shall have continuing effect as set
forth therein. Nothing contained herein, however, shall relieve any party from
any liability for any willful breach of this Agreement.
7.3. Amendment. This Agreement may be amended by mutual action
taken by the parties hereto at any time before or after adoption of this
Agreement by the stockholders of Ramapo but, after any such adoption, no
amendment shall be made which reduces or changes the amount or form of the
consideration to be delivered to the stockholders of Ramapo without the approval
of such stockholders. This Agreement may not be amended except by an instrument
in writing signed on behalf of Valley and Ramapo.
7.4. Extension; Waiver. The parties may, at any time prior to
the Effective Time of the Merger, (i) extend the time for the performance of any
of the obligations or other acts of the other parties hereto; (ii) waive any
inaccuracies in the representations and warranties contained herein or in any
document delivered pursuant thereto; or (iii) waive compliance with any of the
agreements or conditions contained herein. Any agreement on the part of any
party to any such extension or waiver shall be valid only if set forth in an
instrument in writing signed on behalf of such party against which the waiver is
sought to be enforced.
ARTICLE VIII
MISCELLANEOUS
8.1. Expenses. All costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby (including legal,
accounting and investment banking fees and expenses) shall be borne by the party
incurring such costs and expenses, except that the cost of printing and mailing
the Proxy Statement/Prospectus shall be borne equally by the parties hereto if
the transaction is terminated.
8.2. Notices. All notices or other communications which are
required or permitted hereunder shall be in writing and sufficient if delivered
personally or sent by telecopier with confirming copy sent the same day by
registered or certified mail, postage prepaid, as follows:
(a) If to Valley, to:
Valley National Bancorp
1455 Valley Road
Wayne, New Jersey 07474-0558
Attn.: Gerald H. Lipkin
Chairman and Chief Executive Officer
Telecopier No. (973) 305-0024
Copy to:
Pitney, Hardin, Kipp & Szuch
Attn.: Ronald H. Janis, Esq.
Delivery:
200 Campus Drive
Florham Park, New Jersey 07932
Mail:
P.O. Box 1945
Morristown, New Jersey 07962-1945
Telecopier No. (973) 966-1550
(b) If to Ramapo, to:
Ramapo Financial Corporation
64 Mountain View Boulevard
Wayne, New Jersey 07470
Attn.: Mortimer J. O'Shea,
President and Chief Executive Officer
Telecopier No. (973) 305-4089
Copy to:
Williams, Caliri, Miller & Otley
Attn.: Richard S. Miller, Esq.
Delivery:
1428 Route 23
Wayne, New Jersey 07470
Mail:
P.O. Box 995
Wayne, New Jersey 07474-0995
Telecopier No. (973) 694-0302
or such other addresses as shall be furnished in writing by any party, and any
such notice or communications shall be deemed to have been given as of the date
so delivered or telecopied and mailed.
8.3. Parties in Interest. This Agreement shall be binding upon
and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns. Nothing in this Agreement is intended to
confer, expressly or by implication, upon any other person any rights or
remedies under or by reason of this Agreement, except for the indemnitees
covered by Section 5.14 hereof. No assignment of this Agreement may be made
except upon the written consent of the other parties hereto.
8.4. Entire Agreement. This Agreement, the Disclosure
Schedules hereto and the other documents, agreements and instruments executed
and delivered pursuant to or in connection with this Agreement, contains the
entire agreement among the parties hereto with respect to the transactions
contemplated by this Agreement and supersedes all prior negotiations,
arrangements or understandings, written or oral, with respect thereto. If any
provision of this Agreement is found invalid, it shall be considered deleted and
shall not invalidate the remaining provisions.
8.5. Counterparts. This Agreement may be executed in one or
more counterparts, all of which shall be considered one and the same agreement
and each of which shall be deemed an original.
8.6. Governing Law. This Agreement shall be governed by the
laws of the State of New Jersey, without giving effect to the principles of
conflicts of laws thereof.
8.7. Descriptive Headings. The descriptive headings of this
Agreement are for convenience only and shall not control or affect the meaning
or construction of any provision of this Agreement.
8.8. Survival. All representations, warranties and, except to
the extent specifically provided otherwise herein, agreements and covenants,
other than those agreements and covenants set forth in Sections 5.14 which shall
survive the Merger, shall terminate as of the Effective Time.
8.9. Knowledge. Representations made herein which are
qualified by the phrase to the best of Ramapo's knowledge or similar phrases
refer as of the date hereof to the best knowledge of the Chief Executive Officer
and the Senior Vice President-Lending of Ramapo and thereafter refer to the best
knowledge of any senior officer of Ramapo or any Ramapo subsidiary.
Representations made herein which are qualified by the phrase to the best of
Valley's knowledge or similar phrases refer as of the date hereof to the best
knowledge of the President and Chief Executive Officer, the Executive Vice
President/Legal and the Chief Financial Officer of Valley and thereafter refer
to the best knowledge of any senior officer of Valley or any Valley subsidiary.
IN WITNESS WHEREOF, Valley, VNB, the Bank and Ramapo have
caused this Agreement to be executed by their duly authorized officers as of the
day and year first above written.
<TABLE>
<CAPTION>
ATTEST: VALLEY NATIONAL BANCORP
<S> <C>
PETER CROCITTO By: GERALD H. LIPKIN
- ---------------------------------------- -------------------------------------
Peter Crocitto, Executive Vice President Gerald H. Lipkin, Chairman, President
and Chief Executive Officer
ATTEST: RAMAPO FINANCIAL CORPORATION
ERWIN D. KNAUER By: MORTIMER J. O'SHEA
- ---------------------------------------- -------------------------------------
Erwin D. Knauer, Senior Vice President Mortimer J. O'Shea, Chairman
Chief Executive Officer
ATTEST: VALLEY NATIONAL BANK
PETER CROCITTO By: GERALD H. LIPKIN
- ---------------------------------------- -------------------------------------
Peter Crocitto, Executive Vice President Gerald H. Lipkin, Chairman, President
and Chief Executive Officer
ATTEST: THE RAMAPO BANK
ERWIN D. KNAUER By: MORTIMER J. O'SHEA
- ---------------------------------------- -------------------------------------
Erwin D. Knauer, President Mortimer J. O'Shea, Chairman
and Chief Executive Officer
</TABLE>
<PAGE>
CERTIFICATE OF THE DIRECTORS OF
RAMAPO FINANCIAL CORPORATION AND
THE RAMAPO BANK
Reference is made to the Agreement and Plan of Merger, dated
as of December 17, 1998 (the "Agreement"), among Valley National Bancorp, Valley
National Bank, Ramapo Bancorp Inc., and The Ramapo Bank Capitalized terms used
herein have the meanings given to them in the Agreement.
Each of the following persons, being all of the directors of
Ramapo and the Bank, express their intention, subject to their fiduciary duties,
to vote or cause to be voted all shares of Ramapo Common Stock which are held by
such person, or over which such person exercises full voting control (other than
shares with respect to which such person exercises control in a fiduciary
capacity, as to which no agreement is made hereby), in favor of the Merger.
MORTIMER J. O'SHEA
- ---------------------------------- ------------------------------------
MORTIMER J. O'SHEA JAMES R. KAPLAN
VICTOR C. OTLEY, JR. LOUIS D. MARCH
- ---------------------------------- ------------------------------------
VICTOR C. OTLEY, JR. LOUIS D. MARCH
ERWIN D. KNAUER ARNOLD SPEERT
- ---------------------------------- ------------------------------------
ERWIN D. KNAUER ARNOLD SPEERT
DONALD W. BARNEY SOLOMON W. MASTERS
- ---------------------------------- ------------------------------------
DONALD W. BARNEY SOLOMON W. MASTERS
RICHARD S. MILLER VINCENT R. D'ACCARDI
- ---------------------------------- ------------------------------------
RICHARD S. MILLER VINCENT R. D'ACCARDI
LOUIS S. MILLER
- ----------------------------------
LOUIS S. MILLER
<PAGE>
EXHIBIT A
AGREEMENT TO MERGE BETWEEN
VALLEY NATIONAL BANK
AND
THE RAMAPO BANK
UNDER THE CHARTER OF VALLEY NATIONAL BANK,
UNDER THE TITLE OF VALLEY NATIONAL BANK
THIS AGREEMENT made between Valley National Bank (hereinafter
referred to as "VNB"), a national banking association organized under the laws
of the United States, being located at 615 Main Avenue, Passaic, New Jersey,
with a capital of $____________ divided into ____________ shares of common
stock, each of $5.00 par value, $____________ of surplus, and undivided profits
of $____________, as of September 30, 1998, and The Ramapo Bank (hereinafter
referred to as "Ramapo"), a state-chartered commercial bank organized under the
laws of New Jersey, being located at 64 Mountain View Boulevard, City of Wayne,
County of Passaic, in the State of New Jersey, with a capital of $____________,
divided into ________ shares of common stock, each of $______ par value, surplus
of $___________, and undivided profits of $_________, as of September 30, 1998,
each acting pursuant to a resolution of its board of directors, adopted by the
vote of a majority of its directors, pursuant to the authority given by and in
accordance with the provisions of the Act of November 7, 1918, as amended (12
U.S.C. Section 215(a)), and the New Jersey Banking Act of 1948, as amended,
witnesseth as follows:
Section 1. Ramapo shall be merged into VNB under the charter
of VNB.
Section 2. The name of the receiving association (hereinafter
referred to as the "Association") shall be Valley National Bank.
Section 3. The business of the Association shall be that of a
national banking Association. This business shall be conducted by the
Association at its main office which shall be located at 615 Main Avenue,
Passaic, New Jersey, and at its legally established branches.
Section 4. The amount of capital stock of the Association
shall be $______________, divided into ____________ shares of common stock, each
of $5.00 par value, and at the time the merger shall become effective, the
Association shall have a surplus of $____________, and undivided profits,
including capital reserves, which when combined with the capital and surplus
will be equal to the combined capital structures of the merging banks as stated
in the preamble of this Agreement, adjusted however, for normal earnings and
expenses between September 30, 1998, and the effective time of the merger.
Section 5. All assets of each of the merging banks, as they
exist at the effective time of the merger, shall pass to and vest in the
Association without any conveyance or other transfer. The Association shall be
responsible for all of the liabilities of every kind and description, including
liabilities arising from the operation of their respective trust Departments, of
each of the merging banks existing as of the effective time of the merger.
Section 6. Ramapo shall contribute to the Association its
capital set forth in the preamble, adjusted, however, for normal earnings,
expenses and dividends between September 30, 1998, and the effective time of the
merger.
VNB shall have on hand at the effective time of the merger its
capital as set forth in the preamble, adjusted, however, for normal earnings,
expenses and dividends between September 30, 1998 and the effective date of the
merger.
Section 7. The stockholder of VNB shall retain its rights in
the capital stock presently outstanding, which shall immediately and
automatically become ____________ shares of common stock of the Association,
each with $5.00 par value, and the stockholder of Ramapo in exchange for the
excess acceptable assets contributed by its bank to the Association shall be
entitled to receive ___________ shares of common stock of the Association, each
with $5.00 par value.
Section 8. Neither of the banks shall declare nor pay any
dividend to its stockholder between the date of this Agreement and the time at
which the merger shall become effective, nor dispose of any of its assets in any
other manner except in the ordinary course of business consistent with prudent
banking practice. Provided, however, that VNB shall be entitled to pay dividends
to its parent without restriction and Ramapo may pay dividends to its parent,
consistent with past practice, so long as the payment of such dividends shall
thereby not cause a breach of any representation, covenant, agreement or
condition to which the Bank is subject under the Agreement and Plan of Merger,
dated as of December 17, 1998 among Valley National Bancorp, Ramapo Financial
Corporation, VNB and Ramapo (the "Merger Agreement").
Section 9. The present board of directors of VNB (with the
addition of Richard S. Miller) shall serve as the board of directors of the
Association until the next annual meeting or until such time as their successors
have been elected and have qualified.
Section 10. Effective as of the time this merger shall become
effective as specified in the merger approval to be issued by the Office of the
Comptroller of the Currency (the "OCC"), the articles of association of the
resulting bank shall read in their entirety as set forth in Schedule 1 annexed
hereto.
Section 11. This Agreement shall be terminated automatically
if the Merger Agreement is terminated as provided in the Merger Agreement.
Section 12. This Agreement shall be ratified and confirmed by
the affirmative vote of the stockholders of each of the merging banks owning at
least two-thirds of its capital stock outstanding, at a meeting to be held on
the call of the directors; and the merger shall become effective at the time
specified in the merger approval to be issued by the OCC.
Section 13. Each of the representations, warranties and
covenants of the parties hereto shall terminate as of the effective time of the
merger, other than Section 5 hereof which shall survive the effective time of
the merger.
Section 14. This Agreement may be executed in any number of
counterparts, and each counterpart shall constitute an original instrument, but
all such separate counterparts shall constitute only one and the same
instrument.
Section 15. Except as governed by federal law, the validity,
construction and enforceability of this Agreement shall be governed in all
respects by the laws of the State of New Jersey without regard to its conflicts
of laws or rules.
WITNESS, the signatures and seals of the merging banks this
_____ day of ____, 1998, each set by its chairman, president or a vice president
and attested to by its cashier or secretary, pursuant to a resolution of its
board of directors, acting by a majority.
<TABLE>
<CAPTION>
<S> <C>
ATTEST: VALLEY NATIONAL BANK
_______________________ By:
, Cashier Gerald H. Lipkin, Chairman, President
and Chief Executive Officer
ATTEST: THE RAMAPO BANK
________________________ By:
Janet Maloy, Secretary Mortimer J. O'Shea, Chairman
and Chief Executive Officer
</TABLE>
<PAGE>
STATE OF NEW JERSEY )
: ss.
COUNTY OF ________________)
On this _____ day of _____________, 1998, before me, a Notary
Public for this state and county, personally came Gerald H. Lipkin, as Chairman
and Chief Executive Officer, and ___________ _________________________, as
Cashier of VALLEY NATIONAL BANK, and each of his/her capacity acknowledged this
instrument to the act and deed of the association and the seal affixed to it to
be its seal.
WITNESS my official seal and signature this day and year.
----------------------------
(Seal of Notary)
STATE OF NEW JERSEY )
:ss.
COUNTY OF ________________)
On this _____ day of ____________, 1998, before me, a Notary
Public for this state and county, personally came Mortimer J. O'Shea, as
Chairman and Chief Executive Officer, and ___________ _________________________,
as Secretary of THE RAMAPO BANK, and each of his/her capacity acknowledged this
instrument to the act and deed of the corporation and the seal affixed to it to
be its seal.
WITNESS my official seal and signature this day and year.
----------------------------
(Seal of Notary)
<PAGE>
Schedule 1
ARTICLES OF ASSOCIATION
OF
VALLEY NATIONAL BANK1
NAME
FIRST. The title of the Association shall be "Valley National
Bank".
MAIN OFFICE
SECOND. The main office of the Association shall be in the
City of Passaic, County of Passaic, State of New Jersey. The general business of
the Association shall be conducted at its main office and its branches.
DIRECTORS
THIRD. The Board of Directors of this Association shall
consist of not less than five nor more than twenty-five directors the exact
number to be fixed and determined from time to time by resolution of a majority
of the full Board of Directors or by resolution of the shareholders at any
annual or special meeting thereof. Each director shall own $1,000 equity
interest in this Association or in a company which as control of the
Association. The amount of the equity interest shall meet this requirement if it
conforms to the requirements of 12 U.S.C. 72, as amended on March 31, 1980, or
as amended from time to time thereafter. Any vacancy in the Board of Directors
may be filled by action of the Board of Directors.
ANNUAL MEETING OF STOCKHOLDERS
FOURTH. There shall be an annual meeting of the stockholders,
the purpose of which shall be the election of Directors and the transaction of
whatever other business may be brought before the meeting. The meeting shall be
held at the main office of the Association or any other convenient place as the
Board of Directors may designate, on the date of each year specified therefor in
the By-laws, but if no election is held on that day, it may be held on any
subsequent day according to such lawful rules as may be prescribed by the Board
of Directors.
Nominations for election to the Board of Directors may be made
by the Board of Directors or by any stockholder of any outstanding class of
capital stock of the Association entitled to vote for election of directors.
Nominations other than those made by or on behalf of the existing management of
the Association, shall be made in writing and shall be delivered or mailed to
the President of the Association and to the Comptroller of the Currency,
Washington, D.C., not less than 14 days nor more than 50 days prior to any
meeting of stockholders called for the election of directors; provided, however,
that if less than 21 days' notice of the meeting is given to shareholders, such
nominations shall be mailed or delivered to the President of the Association and
to the Comptroller of the Currency not later than the close of business on the
seventh day following the day on which the notice of meeting was mailed. Such
notification shall contain the following information to the extent known to the
notifying shareholder: (a) the name and address of each proposed nominee; (b)
the principal occupation of each proposed nominee; (c) the total number of
shares of capital stock of the Association that will be voted for each proposed
nominee; (d) the name and residence address of the notifying shareholder; and
(e) the number of shares of capital stock of the Association owned by the
notifying shareholder. Nominations not made in accordance herewith may be
disregarded by the Chairman of the meeting, in his discretion, and upon his
instructions the vote tellers may disregard all votes cast for each such
nominee.
CAPITAL
FIFTH. The authorized amount of capital stock of this
Association shall be [3,191,862] shares of common stock of the par value of five
dollars ($5.00) each; but said capital stock may be increased or decreased from
time to time, in accordance with the provisions of the laws of the United
States.
No holder of shares of the capital stock of any class of the
Association shall have any pre-emptive or preferential right of subscription to
(i) any shares of any class of stock of the Association, whether now or
hereafter authorized, or (ii) to any obligations convertible into stock of the
Association, or (iii) to any right of subscription to any of the foregoing;
except any of the foregoing rights which the Board of Directors, in its sole
discretion may from time to time determine and at such price as the Board of
Directors may from time to time fix.
The Association, at any time and from time to time, may
authorize and issue debt obligations, whether or not subordinated, without the
approval of the stockholders.
OFFICERS
SIXTH. The Board of Directors shall appoint one of its members
President of this Association, who shall be Chairman of the Board, unless the
Board appoints another director to be the Chairman. The Board of Directors shall
have the power to appoint one or more Vice Presidents; and to appoint a Cashier
and such other officers and employees as may be required to transact the
business of this Association.
The Board of Directors shall have the power to define the
duties of the officers and employees of the Association; to fix the salaries to
be paid to them; to dismiss them; to require bonds from them and to fix the
penalty thereof; to regulate the manner in which any increase of the capital of
the Association shall be made; to manage and administer the business and affairs
of the Association; to make all By-Laws that it may be lawful for them to make;
and generally to do and perform all acts that it may be legal for a Board of
Directors to do and perform.
CHANGE OF MAIN OFFICE; BRANCHES
SEVENTH. The Board of Directors shall have the power, without
shareholder approval, to change the location of the main office to any other
authorized branch location within the limits of the City of Passaic and to
establish or change the location of any branch or branches of the Association.
Any change in the location of the main office to another authorized branch
location within the City of Passaic shall be effected upon written notice to the
Comptroller of the Currency. Any change in the location of the Main Office,
except to an authorized branch location within the City of Passaic, shall
require both the approval of the Comptroller of the Currency and the approval of
stockholders owning two-thirds of the stock of the Association and any such
change shall be to a place not more than 30 miles from the city limits of the
City of Passaic.
EXISTENCE
EIGHTH. The corporate existence of this Association shall
continue until terminated in accordance with the laws of the United States.
SPECIAL MEETINGS OF SHAREHOLDERS; NOTICE OF MEETINGS
NINTH. The Board of Directors of this Association, or any one
or more shareholders owning, in the aggregate, not less than ten percent of the
stock of this Association, may call a special meeting of shareholders at any
time. Unless otherwise provided by the laws of the United States, a notice of
the time, place, and purpose of every annual and special meeting of the
shareholders shall be given by first-class mail, postage prepaid, mailed at
least ten days prior to the date of such meeting to each shareholder of record
at his address as shown upon the books of this Association.
INDEMNIFICATION
TENTH. Any person, his heirs, executors or administrators, may
be indemnified or reimbursed by the Association for liability and reasonable
expenses, including amounts paid in settlement or in satisfaction of judgments
or as fines and/or penalties, actually incurred in connection with any action,
suit or proceeding, civil or criminal, to which he or they shall be involved or
threatened to be involved, as a party, or otherwise, by reason of his being or
having been a director, officer, or employee of the Association or of any firm,
corporation or organization which he served in any such capacity at the request
of the Association. Provided, however, that no person shall be so indemnified or
reimbursed in relation to any matter in such action, suit or proceeding as to
which he shall finally be adjudged to have been guilty of or liable for gross
negligence, willful misconduct or criminal acts in the performance of his duties
to the Association; and, provided further, that no person shall be so
indemnified or reimbursed in relation to any matter in such action, suit, or
proceeding which has been made the subject of a compromise settlement except
with: (i) the approval of a court of competent jurisdiction or; (ii) the holders
of record of a majority of the outstanding voting shares of the Association; or
(iii) the Board of Directors acting by vote of directors not parties to the same
or substantially the same action, suit, or proceeding, constituting a majority
of the whole number of directors. The foregoing right of indemnification or
reimbursement shall not be exclusive of other rights to which such persons, his
heirs, executors or administrators, may be entitled as a matter of law.
The Association may, upon the affirmative vote of a majority
of its Board of Directors, purchase insurance for the purpose of indemnifying
its directors, officers and other employees to the extent that such
indemnifications are allowed in the preceding paragraph. Such insurance may, but
need not, be for the benefit of all directors, officers or employees.
AMENDMENTS
ELEVENTH. These Articles of Association may be amended at any
regular or special meeting of the shareholders by the affirmative vote of the
holders of a majority of the stock of this Association, unless the vote of the
holders of a greater amount of stock is required by law, and in that case by the
vote of the holders of such greater amount.
<PAGE>
EXHIBIT 5.18
RAMAPO AFFILIATE LETTER
__________, 1998
Valley National Bancorp
1455 Valley Road
Wayne, New Jersey 07470
Gentlemen:
I am delivering this letter to you in connection with the
proposed merger (the "Merger") of Ramapo Financial Corporation, a New Jersey
corporation (the "Company") with and into Valley National Bancorp, a New Jersey
corporation ("Valley"), pursuant to the Agreement and Plan of Merger dated as of
December 17, 1998 (the "Agreement") among the Company, Valley, The Ramapo Bank
and Valley National Bank. I currently own shares of the Company's common stock,
par value $1.00 per share ("Ramapo Common Stock"). As a result of the Merger, I
will receive shares of Valley's common stock, no par value ("Valley Common
Stock") in exchange for my Ramapo Common Stock. In addition, to the extent I own
options to acquire Ramapo Common Stock, those options will be converted in the
Merger into Valley Common Stock or options to acquire Valley Common Stock.
I have been advised that as of the date of this letter I may
be deemed to be an "affiliate" of the Company, as the term "affiliate" is
defined for purposes of paragraphs (c) and (d) of Rule 145 of the rules and
regulations promulgated under the Securities Act of 1933, as amended (the "Act")
by the Securities and Exchange Commission (the "Commission") and as the term
"affiliate" is used for purposes of the Commission's rules and regulations
applicable to the determination of whether a merger can be accounted for as a
"pooling of interests" as specified in the Commission's Accounting Series
Release 135, as amended by Staff Accounting Bulletins Nos. 65 and 76 ("ASR
135").
I represent to and covenant with Valley that:
A. Transfer Restrictions Prior to Merger Consummation. During
the period beginning on the date hereof and ending 30 days prior to the
consummation of the Merger, I shall not sell, transfer or otherwise dispose of
("transfer") any Ramapo Common Stock owned by me, and I shall not permit any
relative who shares my home, or any person or entity whom or which I control,
from transferring any Ramapo Common Stock owned by such person or entity,
without notifying Valley in advance of the proposed transfer and giving Valley a
reasonable opportunity to object to the transfer before it is consummated.
Valley, upon advice of its independent public accountants, may instruct me not
to make or permit the transfer because it may interfere with the "pooling of
interests" treatment of the Merger. I shall abide by any such instructions.
B. Post-Consummation Transfer Restrictions. During the period
beginning 30 days prior to the consummation of the Merger and ending immediately
after financial results covering at least 30 days of post-Merger combined
operations have been published by Valley by means of the filing of a Form 10-Q
or Form 8-K under the Securities Exchange Act of 1934, as amended, the issuance
of a quarterly earnings report, or any other public issuance which satisfies the
requirements of ASR 135, I shall not transfer any Ramapo Common Stock owned by
me, and I shall not permit any relative who shares my home, or any person or
entity whom or which I control, to transfer any Ramapo Common Stock owned by
such person or entity. For purposes of this paragraph, "Ramapo Common Stock"
includes the Valley Common Stock into which the Ramapo Common Stock or Options
is converted.
C. Need for Registration or Exemption in Connection with
Transfers. I have been advised that the issuance of Valley Common Stock to me
pursuant to the Merger will be registered with the Commission under the Act on a
Registration Statement on Form S-4. However, I have also been advised that,
since I may be deemed to be an affiliate of the Company at the time the Merger
is submitted for a vote of the Company's stockholders, any transfer by me of
Valley Common Stock received by me in the Merger is restricted under Rule 145
promulgated by the Commission under the Act. I may not transfer Valley Common
Stock received by me or by any relative who shares my home or by any person or
entity whom or which I control, unless (i) such transfer is registered under the
Act, (ii) such transfer is made in conformity with the volume and other
limitations of Rule 145 promulgated by the Commission under the Act, or (iii) in
the opinion of counsel reasonably acceptable to Valley, such transfer is
otherwise exempt from registration under the Act.
D. Stop Transfer Instructions; Legend on Certificates. I also
understand that stop transfer instructions will be given to Valley's transfer
agents with respect to the Valley Common Stock and that there will be placed on
the certificates of the Valley Common Stock issued to me or to any relative who
shares my home or to any person or entity whom or which I control, or any
substitutions therefor, a legend stating in substance:
Such legend and the stock transfer restrictions shall be removed as soon as
permissible under Rule 145.
"THE SHARES REPRESENTED BY THIS CERTIFICATE WERE ISSUED IN A
TRANSACTION TO WHICH RULE 145 PROMULGATED UNDER THE SECURITIES ACT OF 1933
APPLIES. THE SHARES REPRESENTED BY THIS CERTIFICATE MAY ONLY BE TRANSFERRED IN
ACCORDANCE WITH THE TERMS OF AN AGREEMENT DATED DECEMBER 17, 1998 BETWEEN THE
REGISTERED HOLDER HEREOF AND VALLEY NATIONAL BANCORP, A COPY OF WHICH AGREEMENT
IS ON FILE AT THE PRINCIPAL OFFICE OF VALLEY NATIONAL BANCORP."
E. Consultation with Counsel. I have carefully read this
letter and the Agreement and discussed the requirements of such documents and
other applicable limitations upon my ability to transfer Valley Common Stock to
the extent I felt necessary with my counsel or counsel for the Company.
Execution of this letter is not an admission on my part that I
am an "affiliate" of the Company as described in the second paragraph of this
letter, or a waiver of any rights I may have to object to any claim that I am
such an affiliate on or after the date of this letter. This letter shall
terminate concurrently with any termination of the Agreement in accordance with
its terms.
Very truly yours,
Name: (Sign)
(Print)
Accepted this ____ day of
_______________, 199_ by
VALLEY NATIONAL BANCORP
By:
Name:
Title:
<PAGE>
EXHIBIT 5.18.1
VALLEY AFFILIATE LETTER
_______, 1998
Valley National Bancorp
1455 Valley Road
Wayne, New Jersey 07474-0558
Gentlemen:
I am delivering this letter to you in connection with the
proposed merger (the "Merger") of Ramapo Financial Corporation, a New Jersey
corporation ("Ramapo") with and into Valley National Bancorp, a New Jersey
corporation ("Valley"), pursuant to the Agreement and Plan of Merger dated as of
December 17, 1998 (the "Agreement") among Valley, Ramapo, Valley National Bank
and The Ramapo Bank. I currently own shares of Valley's common stock, no par
value ("Valley Common Stock").
I have been advised that as of the date of this letter I may
be deemed to be an "affiliate" of Valley, as the term "affiliate" is used for
purposes of the rules and regulations of the Securities and Exchange Commission
(the "Commission") applicable to the determination of whether a merger can be
accounted for as a "pooling of interests" as specified in the Commission's
Accounting Series Release 135, as amended by Staff Accounting Bulletins Nos. 65
and 76 ("ASR 135").
I represent to and covenant with Valley and Ramapo that:
A. Transfer Restrictions Prior to Merger Consummation. During
the period beginning on the date hereof and ending 30 days prior to the
consummation of the Merger, I shall not sell, transfer or otherwise dispose of
("transfer") any Valley Common Stock owned by me, and I shall not permit any
relative who shares my home, or any person or entity whom or which I control,
from transferring any Valley Common Stock owned by such person or entity,
without notifying Valley in advance of the proposed transfer and giving Valley a
reasonable opportunity to object to the transfer before it is consummated.
Valley, upon advice of its independent public accountants, may instruct me not
to make or permit the transfer because it may interfere with the "pooling of
interests" treatment of the Merger. I shall abide by any such instructions.
B. Post-Consummation Transfer Restrictions. During the period
beginning 30 days prior to the consummation of the Merger and ending immediately
after financial results covering at least 30 days of post-Merger combined
operations have been published by Valley by means of filing of a Form 10-Q or
Form 8-K under the Securities Exchange Act of 1934, the issuance of a quarterly
earnings report, or any other public issuance which satisfies the requirements
of ASR 135, I shall not transfer any Valley Common Stock owned by me, and I
shall not permit any relative who shares my home, or any person or entity whom
or which I control, to transfer any Valley Common Stock owned by such person or
entity.
C. Consultation with Counsel. I have carefully read this
letter and the Agreement and discussed the requirements of such documents and
other applicable limitations upon my ability to transfer Valley Common Stock to
the extent I felt necessary with my counsel or counsel for Valley.
Execution of this letter is not an admission on my part that I
am an "affiliate" of Valley as described in the second paragraph of this letter,
or a waiver of any rights I may have to object to any claim that I am such an
affiliate on or after the date of this letter. This letter shall terminate
concurrently with any termination of the Agreement in accordance with its terms.
Very truly yours,
-----------------------------
Name: (Sign)
(Print)
Accepted this ___ day of
____________, 1998 by
VALLEY NATIONAL BANCORP
By: ___________________________
Name:
Title:
<PAGE>
SCHEDULE 6.2
FORM OF OPINION OF COUNSEL TO
RAMAPO TO BE DELIVERED TO
VALLEY AT THE EFFECTIVE TIME
(Capitalized terms used herein and not otherwise defined have the meanings
given them in the Agreement)
(a) Ramapo is a corporation validly existing and in good
standing under the laws of the State of New Jersey. Ramapo has the corporate
power and authority to own or lease all of its properties and assets and to
carry on its business as described in the Proxy Statement/Prospectus on page __
under the caption _________________. Ramapo is registered as a bank holding
company under the BHCA.
(b) Each Subsidiary of Ramapo listed as such in the Ramapo
Disclosure Schedule is validly existing and in good standing under the laws of
the jurisdiction of its incorporation. The Bank is a state-chartered commercial
bank under the laws of the State of New Jersey. The Bank has the corporate power
and authority to own or lease all of its properties and assets and to carry on
its business as described in the Proxy Statement/Prospectus on page __ under the
caption _________________.
(c) The authorized capital stock of Ramapo consists of
15,000,000 shares of Ramapo Common Stock 1,000,000 of Ramapo No Par Stock.
Except for any Ramapo Common Stock issuable upon exercise of outstanding Ramapo
Options granted pursuant to the Ramapo Non-Employee Option Plan, the Ramapo
Employee Option Plan, the O'Shea Non-statutory Plan, and the Valley Stock
Option, we have not become aware (through our representation of Ramapo in
connection therewith or in the course of our representation of Ramapo in
connection with the Agreement, or through Ramapo's representations to us in the
attached certificate) of any outstanding subscription rights, options,
conversion rights, warrants or other agreements or commitments of any nature
whatsoever (either firm or conditional) obligating Ramapo to issue, deliver or
sell, cause to be issued, delivered or sold, or restricting Ramapo from selling
any Ramapo No Par Stock or any additional Ramapo Common Stock or obligating
Ramapo to grant, extend or enter into any such agreement or commitment. Based
solely upon our review of the minute books of Ramapo and its Subsidiaries, and
without independent verification of the matters recited therein, all of the
outstanding shares of capital stock of each Subsidiary of Ramapo listed as such
in the Ramapo Disclosure Schedule have been validly authorized and issued and we
are not aware of any liens, claims, equities, restrictions or encumbrances
created by Ramapo on Ramapo's ownership thereof.
(d) The Agreement has been authorized, executed and delivered
by Ramapo and the Bank and constitutes the valid and binding obligations of
Ramapo and the Bank, respectively, enforceable in accordance with its terms,
except that the enforceability of the obligations of Ramapo and the Bank may be
limited by bankruptcy, fraudulent conveyance, insolvency, reorganization,
moratorium, or laws affecting bank holding companies or institutions the
deposits of which are insured by the FDIC or other laws heretofore or hereafter
enacted relating to or affecting the enforcement of creditors' rights generally
and by principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law). In addition, certain remedial
and other provisions of the Agreement may be limited by implied covenants of
good faith, fair dealing, and commercially reasonable conduct, by judicial
discretion, in the instance of equitable remedies, and by applicable public
policies and laws.
(e) The execution and delivery of the Agreement and the Bank
Merger Agreement and the consummation of the transactions contemplated thereby
will not (i) conflict with or violate any provision of or result in the breach
of any provision of the respective certificates of incorporation or by-laws of
Ramapo or the Bank; (ii) conflict with or violate in any material respect, or
result in a material breach or violation of the terms or provisions of, or
constitute a default under, or result in (whether upon or after the giving of
notice or lapse of time or both) any material obligation under, any indenture,
mortgage, deed of trust or loan agreement or any other agreement, instrument,
judgment, order, arbitration award or decree of which we are aware (through our
representation of Ramapo in connection therewith or in the course of our
representation of Ramapo in connection with the Agreement, or through Ramapo's
representations to us in the attached certificate) and to which Ramapo or the
Bank is a party or by which Ramapo or the Bank is bound; or (iii) cause Ramapo
or the Bank to violate any law, rule or regulation applicable to Ramapo or the
Bank: except with respect to (ii) and (iii) above, such as in the aggregate will
not have a material adverse effect on the ability of Ramapo and the Bank to
consummate the transactions contemplated by the Agreement.
(f) All actions of the directors and stockholders of Ramapo
and of the Bank required by federal banking law or New Jersey law, or by the
respective certificate of incorporation or by-laws of Ramapo or the Bank, to be
taken by Ramapo or the Bank to authorize the execution, delivery and performance
of the Agreement and consummation of the Merger have been taken.
(g) No approvals, authorizations, consents or other actions or
filings under federal banking law or New Jersey law ("Approvals") are required
to be obtained by Ramapo or the Bank in order to permit the execution and
delivery of the Agreement by Ramapo and the Bank and the performance by Ramapo
and the Bank of the transactions contemplated thereby other than those Approvals
which have been obtained or those Approvals or consents required to be obtained
by Valley or VNB, or Approvals not required or necessary to be obtained on the
date hereof.
(h) Except as set forth in the Ramapo Disclosure Schedule or
in Ramapo's certificate addressed to us and attached hereto, and other than
ordinary routine litigation incidental to the business of Ramapo or its
Subsidiaries, we are not aware of any material action, suit or proceeding or
investigation pending or threatened in writing against or affecting the
business, operations, property or financial condition of Ramapo or any of its
Subsidiaries, at law or in equity, in any court or before any Federal, state,
municipal or other governmental Department, commission, board, bureau, agency or
instrumentality, except those which, if decided adversely to Ramapo or any of
its Subsidiaries, would not have a material adverse effect on Ramapo and its
Subsidiaries, taken as a whole; provided, however, we are not counsel to Ramapo
or its Subsidiaries in any litigation and with respect to litigation we are
relying upon the representation and warranty of Ramapo made in Section 3.7 of
the Agreement with respect to material litigation and on Ramapo's certificate
addressed to us and attached hereto.
* * * * * * *
We are not passing upon and do not assume any responsibility
for the accuracy, completeness or fairness of the statements and information
contained in the Proxy Statement/Prospectus and make no representation that we
have independently verified the accuracy, completeness or fairness of such
statements and information, but, without in any way limiting the generality of
the foregoing, based upon our review of the Proxy Statement/Prospectus (i) the
Proxy Statement/Prospectus (except for financial statements and other tabular
financial information, and other financial and statistical data and information,
as to which we express no opinion) complies as to form in all material respects
with the 1934 Act and the applicable laws and regulations thereunder, (ii) no
facts have come to our attention that caused us to believe that (except for
financial statements and other tabular financial information, as to which we do
not express any belief) the Proxy Statement/Prospectus on the date of the
mailing thereof and on the date of the meeting of stockholders of Ramapo at
which the Agreement was approved, contained any untrue statement of a material
fact with respect to Ramapo or omitted to state a material fact with respect to
Ramapo necessary in order to make the statements therein with respect to Ramapo,
in light of the circumstances under which they were made, not misleading.
* * * * * * *
In rendering their opinion, counsel to Ramapo (A) may, to the
extent they deem proper and so specify in their opinion, rely upon the opinion
of other counsel as to matters involving the application of laws of any
jurisdiction other than the United States, or may exclude from their opinion the
substance included in the opinions of other counsel given directly to Valley and
(B) may rely, as to matters of fact, on certificates of responsible officers of
Ramapo, the Bank, or other Subsidiaries of Valley and public officials; provided
copies of any such opinions or certificates are delivered to Ramapo together
with the opinion to be rendered hereunder by counsel to Ramapo. Counsel to
Ramapo may assume that any agreement is the valid and binding obligation of any
parties to such agreement other than Ramapo and the Bank. As to matters of fact,
counsel to Ramapo may also rely upon the representations and warranties made by
Ramapo to Valley in the Agreement as though such representations and warranties
were made directly to counsel. Counsel to Ramapo may also rely upon the
genuineness of signatures and the authenticity of copies.
<PAGE>
SCHEDULE 6.3
FORM OF OPINION OF COUNSEL TO
VALLEY TO BE DELIVERED TO
RAMAPO AT THE EFFECTIVE TIME
(Capitalized terms used herein and not otherwise defined have the meanings
given them in the Agreement)
(a) Valley is a corporation validly existing and in good
standing under the laws of the State of New Jersey. Valley has the corporate
power and authority to own or lease all of its properties and assets and to
carry on its business as described in the Proxy Statement/Prospectus on page __
under the caption _________________. Valley is registered as a bank holding
company under the BHCA.
(b) Each Subsidiary of Valley listed as such in the Valley
Disclosure Schedule is validly existing and in good standing under the laws of
the jurisdiction of its incorporation. VNB is a national banking association
chartered under the laws of the United States. VNB has the corporate power and
authority to own or lease all of its properties and assets and to carry on its
business as described in the Proxy Statement/Prospectus on page __ under the
caption _________________.
(c) The authorized capital stock of Valley consists of
___________ shares of common stock, no par value per share ("Valley Common
Stock"). Except for any Valley Common Stock issuable upon exercise of
outstanding stock options and stock appreciation rights granted pursuant to the
Valley Option Plan, we have not become aware (through our representation of
Valley in connection therewith or in the course of our representation of Valley
in connection with the Agreement, or through Valley's representations to us in
the attached certificate) of any outstanding subscription rights, options,
conversion rights, warrants or other agreements or commitments of any nature
whatsoever (either firm or conditional) obligating Valley to issue, deliver or
sell, cause to be issued, delivered or sold, or restricting Valley from selling
any additional Valley Common Stock or obligating Valley to grant, extend or
enter into any such agreement or commitment except as may be provided in any
acquisition agreement Valley may enter into after the date of execution of the
Agreement. Based solely upon our review of the minute books of Valley and its
Subsidiaries, and without independent verification of the matters recited
therein, all of the outstanding shares of capital stock of each Subsidiary of
Valley listed as such in the Valley Disclosure Schedule have been validly
authorized and issued and we are not aware of any liens, claims, equities,
restrictions or encumbrances created by Valley on Valley's ownership thereof.
The Valley Common Stock to be issued in connection with the Merger in accordance
with Article II of the Agreement, when so issued in accordance therewith, will
be duly authorized, validly issued, fully paid and non-assessable, free of
preemptive rights and free and clear of all liens, encumbrances or restrictions
created by Valley.
(d) The Agreement has been authorized, executed and delivered
by Valley and VNB and constitutes the valid and binding obligations of Valley
and VNB, respectively, enforceable in accordance with its terms, except that the
enforceability of the obligations of Valley and VNB may be limited by
bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium, or
laws affecting institutions the deposits of which are insured by the FDIC or
other laws heretofore or hereafter enacted relating to or affecting the
enforcement of creditors' rights generally and by principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law). In addition, certain remedial and other provisions of the
Agreement may be limited by implied covenants of good faith, fair dealing, and
commercially reasonable conduct, by judicial discretion, in the instance of
equitable remedies, and by applicable public policies and laws.
(e) The execution and delivery of the Agreement and the Bank
Merger Agreement and the consummation of the transactions contemplated thereby
will not (i) conflict with or violate any provision of or result in the breach
of any provision of the respective certificates of incorporation or by-laws of
Valley or VNB; (ii) conflict with or violate in any material respect, or result
in a material breach or violation of the terms or provisions of, or constitute a
default under, or result in (whether upon or after the giving of notice or lapse
of time or both) any material obligation under, any indenture, mortgage, deed of
trust or loan agreement or any other agreement, instrument, judgment, order,
arbitration award or decree of which we are aware (through our representation of
Valley in connection therewith or in the course of our representation of Valley
in connection with the Agreement, or through Valley's representations to us in
the attached certificate) and to which Valley or VNB is a party or by which
Valley or VNB is bound; or (iii) cause Valley or VNB to violate any law, rule or
regulation applicable to Valley or VNB: except with respect to (ii) and (iii)
above, such as in the aggregate will not have a material adverse effect on the
ability of Valley and VNB to consummate the transactions contemplated by the
Agreement.
(f) All actions of the directors and stockholders of Valley
and of VNB required by federal banking law or New Jersey law, or by the
respective certificates of incorporation or by-laws of Valley or VNB, to be
taken by Valley or VNB to authorize the execution, delivery and performance of
the Agreement and consummation of the Merger have been taken.
(g) Assuming that there has been due authorization of the
Merger by all necessary corporate and governmental proceedings on the part of
Ramapo and that Ramapo has taken all action required to be taken by it prior to
the Effective Time, upon the appropriate filing of the Certificate of Merger in
respect of the Merger with the New Jersey Secretary of State in accordance with
Section 1.6 of the Agreement, the Merger will become effective at the time of
such filing, and upon effectiveness of the Merger each share of Ramapo Common
Stock will be converted as provided in Article II of the Agreement.
(h) No approvals, authorizations, consents or other actions or
filings under federal banking law or New Jersey law ("Approvals") are required
to be obtained by Valley or VNB in order to permit the execution and delivery of
the Agreement by Valley and VNB and the performance by Valley and VNB of the
transactions contemplated thereby other than those Approvals which have been
obtained or those Approvals or consents required to be obtained by Ramapo or the
Bank, and Approvals not required or necessary to be obtained on the date hereof.
(i) Except as set forth in the Valley Disclosure Schedule or
in Valley's certificate addressed to us and attached hereto, and other than
ordinary routine litigation incidental to the business of Valley or its
Subsidiaries, we are not aware of any material action, suit or proceeding or
investigation pending or threatened in writing against or affecting the
business, operations, property or financial condition of Valley or any of its
Subsidiaries, at law or in equity, in any court or before any Federal, state,
municipal or other governmental Department, commission, board, bureau, agency or
instrumentality, except those which, if decided adversely to Valley or any of
its Subsidiaries, would not have a material adverse effect on Valley and its
Subsidiaries, taken as a whole; provided, however, we are not counsel to Valley
or its Subsidiaries in certain litigation and with respect to any such
litigation we are relying upon the representation and warranty of Valley made in
Section 4.10 of the Agreement with respect to material litigation and on
Valley's certificate addressed to us and attached hereto.
(j) The Registration Statement has been declared effective by
the SEC under the 1933 Act and we are not aware that any stop order suspending
the effectiveness has been issued under the 1933 Act or proceedings therefor
initiated or threatened by the SEC.
* * * * * * *
We are not passing upon and do not assume any responsibility
for the accuracy, completeness or fairness of the statements and information
contained in the Proxy Statement/Prospectus and make no representation that we
have independently verified the accuracy, completeness or fairness of such
statements and information, but, without in any way limiting the generality of
the foregoing, based upon our review of the Proxy Statement/Prospectus (i) the
Proxy Statement/Prospectus (except for financial statements and other tabular
financial information, and other financial and statistical data and information,
as to which we express no opinion) complies as to form in all material respects
with the 1933 Act and the applicable laws and regulations thereunder, (ii) no
facts have come to our attention that caused us to believe that (except for
financial statements and other tabular financial information, as to which we do
not express any belief) the Proxy Statement/Prospectus on the date of the
mailing thereof and on the date of the meeting of stockholders of Ramapo at
which the Agreement was approved, contained any untrue statement of a material
fact with respect to Valley or omitted to state a material fact with respect to
Valley necessary in order to make the statements therein with respect to Valley,
in light of the circumstances under which they were made, not misleading.
* * * * * * *
In rendering their opinion, counsel to Valley (A) may, to the
extent they deem proper and so specify in their opinion, rely upon the opinion
of other counsel as to matters involving the application of laws of any
jurisdiction other than the United States or the State of New Jersey, or may
exclude from their opinion the substance included in the opinions of other
counsel given directly to Ramapo and (B) may rely, as to matters of fact, on
certificates of responsible officers of Valley, VNB, or other Subsidiaries of
Valley and public officials; provided copies of any such opinions or
certificates are delivered to Ramapo together with the opinion to be rendered
hereunder by counsel to Valley. Counsel to Valley may assume that any agreement
is the valid and binding obligation of any parties to such agreement other than
Valley and VNB. As to matters of fact, counsel to Valley may also rely upon the
representations and warranties made by Valley to Ramapo in the Agreement as
though such representations and warranties were made directly to counsel.
Counsel to Valley may also rely upon the genuineness of signatures and the
authenticity of copies.
STOCK OPTION AGREEMENT
THIS STOCK OPTION AGREEMENT ("Agreement") dated December 17,
1998, is by and between Valley National Bancorp, a New Jersey corporation and
registered bank holding company ("Valley"), and Ramapo Financial Corporation a
New Jersey corporation and registered bank holding company ("Ramapo") for The
Ramapo Bank (the "Bank").
BACKGROUND
1. Valley, Ramapo, the Bank and Valley National Bank ("Valley
Bank"), a wholly-owned subsidiary of Valley, as of the date hereof, are prepared
to execute an Agreement and Plan of Merger (the "Merger Agreement") pursuant to
which Valley will acquire Ramapo through a merger of Ramapo with and into Valley
(the "Merger").
2. As an inducement to Valley to enter into the Merger
Agreement and in consideration for such entry and negotiation, Ramapo has agreed
to grant to Valley the Option.
AGREEMENT
In consideration of the foregoing and the mutual covenants and
agreements set forth herein and in the Merger Agreement, Valley and Ramapo,
intending to be legally bound hereby, agree:
1. Grant of Option. Ramapo hereby grants to Valley the option
to purchase up to 1,608,159 shares (the "Option Shares") of Ramapo's common
stock, $1.00 par value ("Common Stock") at an exercise price of $7.50 per share
(the "Option Price"), on the terms and conditions set forth herein (the
"Option").
2. Exercise of Option. This Option shall not be exercisable
until the occurrence of a Triggering Event (as such term is hereinafter
defined). Upon or after the occurrence of a Triggering Event (as such term is
hereinafter defined), Valley may exercise the Option, in whole or in part, at
any time or from time to time subject to the terms and conditions set forth
herein.
The term "Triggering Event" means the occurrence of any of the
following events:
A person or group (as such terms are defined in the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and the rules and
regulations thereunder) other than Valley or an affiliate of Valley:
a. acquires beneficial ownership (as such term is
defined in Rule 13d-3 as promulgated under the Exchange Act) of at least 15% of
the then outstanding shares of Common Stock; provided, however, that the
continuing ownership by a person or group which as of the date hereof owns more
than 15% of the outstanding Common Stock shall not constitute a Triggering
Event;
b. enters into a letter of intent or an agreement,
whether oral or written, with Ramapo pursuant to which such person or any
affiliate of such person would (i) merge or consolidate, or enter into any
similar transaction with Ramapo or the Bank, (ii) acquire all or a significant
portion of the assets or liabilities of Ramapo or the Bank, or (iii) acquire
beneficial ownership of securities representing, or the right to acquire
beneficial ownership or to vote securities representing 15% or more of the then
outstanding shares of Common Stock;
c. makes a filing with any bank or thrift regulatory
authorities or publicly announces a bona fide proposal (a "Proposal") for (i)
any merger, consolidation or acquisition of all or a significant portion of all
the assets or liabilities of Ramapo or any other business combination involving
Ramapo or the Bank, or (ii) a transaction involving the transfer of beneficial
ownership of securities representing, or the right to acquire beneficial
ownership or to vote securities representing, 15% or more of the outstanding
shares of Common Stock, and thereafter, if such Proposal has not been Publicly
Withdrawn (as such term is hereinafter defined) at least 15 days prior to the
meeting of stockholders of Ramapo called to vote on the Merger and Ramapo
stockholders fail to approve the Merger by the vote required by applicable law
at the meeting of stockholders called for such purpose; or
d. makes a bona fide Proposal and thereafter, but
before such Proposal has been Publicly Withdrawn, Ramapo (i) willfully takes any
action in any manner which would materially interfere with its ability to
consummate the Merger or (ii) willfully takes any action in any manner (other
than actions taken in the ordinary course of business) which would materially
reduce the value of the Merger to Valley .
The term "Triggering Event" also means the taking of any
direct or indirect action by Ramapo or any of its directors, executive officers,
investment bankers or other persons with actual or apparent authority to speak
for the Ramapo Board of Directors, inviting, encouraging or soliciting any
proposal which has as its purpose a tender offer for the shares of Common Stock,
a merger, consolidation, plan of exchange, plan of acquisition or reorganization
of Ramapo or the Bank, or a sale of shares of Common Stock or stock of the Bank,
or any significant portion of the assets or liabilities of Ramapo or the Bank.
The term "significant portion" means 15% of the assets or
liabilities of Ramapo.
"Publicly Withdrawn", for purposes of clauses (c) and (d)
above, shall mean an unconditional bona fide withdrawal of the Proposal coupled
with a public announcement of no further interest in pursuing such Proposal or
in acquiring any controlling influence over Ramapo or in soliciting or inducing
any other person (other than Valley or any affiliate of Valley) to do so.
Notwithstanding the foregoing, the Option may not be exercised
at any time (i) in the absence of any required governmental or regulatory
approval or consent necessary for Ramapo to issue the Option Shares or Valley to
exercise the Option or prior to the expiration or termination of any waiting
period required by law, or (ii) so long as any injunction or other order, decree
or ruling issued by any federal or state court of competent jurisdiction is in
effect which prohibits the sale or delivery of the Option Shares.
Ramapo shall notify Valley promptly in writing of the
occurrence of any Triggering Event known to it, it being understood that the
giving of such notice by Ramapo shall not be a condition to the right of Valley
to exercise the Option. Ramapo will not take any action which would have the
effect of preventing or disabling Ramapo from delivering the Option Shares to
Valley upon exercise of the Option or otherwise performing its obligations under
this Agreement.
In the event Valley wishes to exercise the Option, Valley
shall send a written notice to Ramapo (the date of which is hereinafter referred
to as the "Notice Date") specifying the total number of Option Shares it wishes
to purchase and a place and date for the closing of such a purchase (a
"Closing"); provided, however, that a Closing shall not occur prior to two
business days nor later than 20 business days after the later of receipt of any
necessary regulatory approvals and the expiration of any legally required notice
or waiting period, if any.
3. Payment and Delivery of Certificates. At any Closing
hereunder (a) Valley will make payment to Ramapo of the aggregate price for the
Option Shares so purchased by wire transfer of immediately available funds to an
account designated by Ramapo, (b) Ramapo will deliver to Valley a stock
certificate or certificates representing the number of Option Shares so
purchased, free and clear of all liens, claims, charges and encumbrances of any
kind or nature whatsoever created by or through Ramapo, registered in the name
of Valley or its designee, in such denominations as were specified by Valley in
its notice of exercise and bearing a legend as set forth below and (c) Valley
shall pay any transfer or other taxes required by reason of the issuance of the
Option Shares so purchased.
Unless a registration statement is filed and declared
effective under Section 4 hereof, a legend will be placed on each stock
certificate evidencing Option Shares issued pursuant to this Agreement, which
legend will read substantially as follows:
"The transfer of shares represented by this
certificate is subject to certain provisions of an agreement, dated as
of December 17, 1998, between the registered holder hereof and Ramapo
and to resale restrictions arising under the Securities Act of 1933, as
amended. A copy of such agreement is on file at the principal office of
Ramapo and will be provided to the holder hereof without charge upon
receipt by Ramapo of a written request therefore."
It is understood and agreed that: (i) the reference to the
resale restrictions of the Securities Act of 1933, as amended (the "1933 Act")
in the above legend shall be removed by delivery of substitute certificate(s)
without such reference if Valley shall have delivered to Ramapo a copy of a
letter from the staff of the SEC, or an opinion of counsel, in form and
substance reasonably satisfactory to Ramapo, to the effect that such legend is
not required for purposes of the 1933 Act; (ii) the reference to the provisions
of this Agreement in the above legend shall be removed by delivery of substitute
certificate(s) without such reference if the shares have been sold or
transferred in compliance with the provisions of this Agreement and under
circumstances that do not require the retention of such reference in the opinion
of counsel to Ramapo; and (iii) the legend shall be removed in its entirety if
the conditions in the preceding clauses (i) and (ii) are both satisfied. In
addition, such certificates shall bear any other legend as may be required by
law.
4. Registration Rights. Upon or after the occurrence of a
Triggering Event and upon receipt of a written request from Valley, Ramapo shall
prepare and file a registration statement with the Securities and Exchange
Commission and any state securities bureau, covering the Option and such number
of Option Shares as Valley shall specify in its request, and Ramapo shall use
its best efforts to cause such registration statement to be declared effective
in order to permit the sale or other disposition of the Option and the Option
Shares (it being understood and agreed that Valley will use reasonable efforts
to effect any such sale or other disposition on a widely distributed basis),
provided that Valley shall in no event have the right to have more than one such
registration statement become effective and further provided that Ramapo shall
have the right to delay for up to six months such registration if the Option
Shares can and will be registered in connection with the filing of a
Registration Statement on Form S-4 (or a successor form) by any person acquiring
Ramapo.
In connection with such filing, Ramapo shall use its best
efforts to cause to be delivered to Valley such certificates, opinions,
accountant's letters and other documents as Valley shall reasonably request and
as are customarily provided in connection with registrations of securities under
the Securities Act of 1933, as amended. All expenses incurred by Ramapo in
complying with the provisions of this Section 4, including without limitation,
all registration and filing fees, printing expenses, fees and disbursements of
counsel for Ramapo and blue sky fees and expenses shall be paid by Ramapo.
Underwriting discounts and commissions to brokers and dealers relating to the
Option Shares, fees and disbursements of counsel to Valley and any other
expenses incurred by Valley in connection with such registration shall be borne
by Valley. In connection with such filing, Ramapo shall indemnify and hold
harmless Valley against any losses, claims, damages or liabilities, joint or
several, to which Valley may become subject, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement with respect to Ramapo or alleged untrue statement
with respect to Ramapo of any material fact with respect to Ramapo contained in
any preliminary or final registration statement or any amendment or supplement
thereto, or arise out of a material fact with respect to Ramapo required to be
stated therein or necessary to make the statements therein with respect to
Ramapo not misleading; and Ramapo will reimburse Valley for any legal or other
expense reasonably incurred by Valley in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that Ramapo will not be liable in any case to the extent that any such loss,
claim, damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in such
preliminary or final registration statement or such amendment or supplement
thereto in reliance upon and in conformity with written information furnished by
or on behalf of Valley specifically for use in the preparation thereof
concerning Valley or its plans or intentions. Valley will indemnify and hold
harmless Ramapo to the same extent as set forth in the immediately preceding
sentence but only with reference to written information specifically furnished
by or on behalf of Valley concerning Valley or its plans or intentions for use
in the preparation of such preliminary or final registration statement or such
amendment or supplement thereto; and Valley will reimburse Ramapo for any legal
or other expense reasonably incurred by Ramapo in connection with investigating
or defending any such loss, claim, damage, liability or action. Notwithstanding
anything to the contrary herein, no indemnifying party shall be liable for any
settlement effected without its prior written consent.
5. Adjustment Upon Changes in Capitalization. In the event of
any change in the Common Stock by reason of stock dividends, split-ups, mergers,
recapitalizations, combinations, conversions, exchanges of shares or the like,
then the number and kind of Option Shares and the Option Price shall be
appropriately adjusted.
In the event any capital reorganization or reclassification of
the Common Stock, or any consolidation, merger or similar transaction of Ramapo
with another entity, or in the event any sale of all or substantially all of the
assets of Ramapo shall be effected in such a way that the holders of Common
Stock shall be entitled to receive stock, securities or assets with respect to
or in exchange for Common Stock, then, as a condition of such reorganization,
reclassification, consolidation, merger or sale, lawful and adequate provisions
(in form reasonably satisfactory to the holder hereof) shall be made whereby the
holder hereof shall thereafter have the right to purchase and receive upon the
basis and upon the terms and conditions specified herein and in lieu of the
Common Stock immediately theretofore purchasable and receivable upon exercise of
the rights represented by this Option, such shares of stock, securities or
assets as may be issued or payable with respect to or in exchange for the number
of shares of Common Stock immediately theretofore purchasable and receivable
upon exercise of the rights represented by this Option had such reorganization,
reclassification, consolidation, merger or sale not taken place; provided,
however, that if such transaction results in the holders of Common Stock
receiving only cash, the holder hereof shall be paid the difference between the
Option Price and such cash consideration without the need to exercise the
Option.
6. Filings and Consents. Each of Valley and Ramapo will use
its best efforts to make all filings with, and to obtain consents of, all third
parties and governmental authorities necessary to the consummation of the
transactions contemplated by this Agreement.
Exercise of the Option herein provided shall be subject to
compliance with all applicable laws including, in the event Valley is the holder
hereof, approval of the Board of Governors of the Federal Reserve System and
Ramapo agrees to cooperate with and furnish to the holder hereof such
information and documents as may be reasonably required to secure such
approvals.
7. Representations and Warranties of the Parties.
a. Ramapo. Ramapo hereby represents and warrants to
Valley as follows:
i. Due Authorization. Ramapo has full
corporate power and authority to execute, deliver and perform this
Agreement and all corporate action necessary for execution, delivery
and performance of this Agreement has been duly taken by Ramapo.
ii. Authorized Shares. Ramapo has taken and,
as long as the Option is outstanding, will take all necessary corporate
action to authorize and reserve for issuance all shares of Common Stock
that may be issued pursuant to any exercise of the Option.
iii. No Conflicts. Neither the execution and
delivery of this Agreement nor consummation of the transactions
contemplated hereby (assuming all appropriate regulatory approvals)
will violate or result in any violation or default of or be in conflict
with or constitute a default under any term of the certificate of
incorporation or by-laws of Ramapo or, to its knowledge, any agreement,
instrument, judgment, decree, statute, rule or order applicable to
Ramapo.
iv. Binding Obligation. This Agreement has
been duly and validly executed by Ramapo and represents a valid and
binding obligation of Ramapo enforceable against Ramapo in accordance
with its terms.
b. Valley. Valley hereby represents and warrants to
Ramapo as follows:
i. Due Authorization. Valley has full
corporate power and authority to execute and deliver this Agreement
and, subject to any approvals or consents referred to herein, to
consummate the transactions contemplated hereby.
ii. Requisite Corporate Action. The
execution and delivery of this Agreement have been authorized by all
requisite corporate action by Valley, and no other corporate
proceedings are necessary therefor.
iii. Binding Obligation. This Agreement has
been duly and validly executed and delivered by Valley and represents a
valid and legally binding obligation of Valley, enforceable against
Valley in accordance with its terms.
8. Specific Performance. The parties hereto acknowledge that
damages would be an inadequate remedy for a breach of this Agreement and that
the obligations of the parties hereto shall be specifically enforceable.
Notwithstanding the foregoing, Valley shall have the right to seek money damages
against Ramapo for a breach of this Agreement.
9. Entire Agreement. This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and
supersedes all other prior agreements and understandings, both written and oral,
among the parties or any of them with respect to the subject matter hereof.
10. Assignment or Transfer. Valley may not sell, assign or
otherwise transfer its rights and obligations hereunder, in whole or in part, to
any person or group of persons other than to an affiliate of Valley. Valley
represents that it is acquiring the Option for Valley's own account and not with
a view to or for sale in connection with any distribution of the Option. Valley
is aware that presently neither the Option nor the Option Shares are being
offered by a registration statement filed with, and declared effective by, the
Securities and Exchange Commission, but instead are being offered in reliance
upon the exemption from the registration requirements pursuant to Section 4(2)
of the Securities Act of 1933, as amended.
11. Amendment of Agreement. By mutual consent of the parties
hereto, this Agreement may be amended in writing at any time, for the purpose of
facilitating performance hereunder or to comply with any applicable regulation
of any governmental authority or any applicable order of any court or for any
other purpose.
12. Validity. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provisions of this Agreement, which shall remain in full force and
effect.
13. Notices. All notices, requests, consents and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given when delivered personally, by express service,
cable, telegram or telex, or by registered or certified mail (postage prepaid,
return receipt requested) to the respective parties as follows:
If to Valley, to:
Valley National Bancorp
1455 Valley Road
Wayne, New Jersey 07474
Attn.: Gerald H. Lipkin
Chairman and Chief Executive Officer
Telecopier No. (973) 305-0024
Copy to:
Pitney, Hardin, Kipp & Szuch
Attn.: Ronald H. Janis, Esq.
Delivery:
200 Campus Drive
Florham Park, New Jersey 07932
Mail:
P.O. Box 1945
Morristown, New Jersey 07962-1945
Telecopier No. (973) 966-1550
If to Ramapo, to:
Ramapo Financial Corporation
64 Mountain View Boulevard
Wayne, New Jersey 07470
Attn.: Mortimer J. O'Shea, President
Telecopier No. (973) 305-4089
Copy to:
Williams, Caliri, Miller & Otley
Attn.: Richard S. Miller, Esq.
Delivery:
1428 Route 23
Wayne, New Jersey 07470
Mail:
P.O. Box 995
Wayne, New Jersey 07474-0995
Telecopier No. (973) 694-0302
or to such other address as the person to whom notice is to be given may have
previously furnished to the others in writing in the manner set forth above
(provided that notice of any change of address shall be effective only upon
receipt thereof).
14. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New Jersey.
15. Captions. The captions in the Agreement are inserted for
convenience and reference purposes, and shall not limit or otherwise affect any
of the terms or provisions hereof.
16. Waivers and Extensions. The parties hereto may, by mutual
consent, extend the time for performance of any of the obligations or acts of
either party hereto. Each party may waive (i) compliance with any of the
covenants of the other party contained in this Agreement and/or (ii) the other
party's performance of any of its obligations set forth in this Agreement.
17. Parties in Interest. This Agreement shall be binding upon
and inure solely to the benefit of each party hereto, and nothing in this
Agreement, express or implied, is intended to confer upon any other person any
rights or remedies of any nature whatsoever under or by reason of this
Agreement, except as provided in Section 10 permitting Valley to assign its
rights and obligations hereunder only to an affiliate of Valley.
18. Counterparts. This Agreement may be executed in two or
more counterparts, each of which shall be deemed to be an original, but all of
which shall constitute one and the same agreement.
19. Termination. The Option granted hereby, to the extent not
previously exercised, shall terminate upon either the termination of the Merger
Agreement as provided therein or the consummation of the transactions
contemplated by the Merger Agreement; provided, however, that if termination of
the Merger Agreement occurs after the occurrence of a Triggering Event, this
Agreement and the Option granted hereby shall not terminate until the later of
one month after the consummation of the transaction constituting the Triggering
Event or 18 months following the date of the termination of the Merger
Agreement.
IN WITNESS WHEREOF, each of the parties hereto, pursuant to
resolutions adopted by its Board of Directors, has caused this Agreement to be
executed by its duly authorized officer, all as of the day and year first above
written.
RAMAPO FINANCIAL CORPORATION
By: MORTIMER J. O'SHEA
------------------------------------
Mortimer J. O'Shea, President and
Chief Executive Officer
VALLEY NATIONAL BANCORP
By: GERALD H. LIPKIN
---------------------------------------
Gerald H. Lipkin, Chairman, President
and Chief Executive Officer
FOR: Valley National Bancorp Contact: Alan Eskow,
1455 Valley Road Controller
Wayne, New Jersey 07470 (973) 305-4003
For Immediate Release: December 17, 1998
VALLEY NATIONAL BANCORP AND RAMAPO FINANCIAL CORPORATION
ANNOUNCE PLANS TO MERGE
WAYNE, NJ -- Valley National Bancorp ("Valley") (NYSE:VLY) and Ramapo Financial
Corporation ("Ramapo") (OTC:RMPO) jointly announced today that they have signed
a definitive merger agreement by which Valley will acquire Ramapo, the holding
company for Ramapo Bank, a $331 million, eight-branch bank headquartered in
Wayne, New Jersey. The merger is "in-market" and will expand Valley's presence
in Passaic, Essex, and Morris counties.
Pursuant to the agreement, Ramapo will be merged into Valley. The acquisition of
Ramapo will be a tax-free merger accounted for as a pooling of interests in
which each of the 8,081,199 outstanding shares of Ramapo common stock will be
exchanged for .425 shares of Valley common stock. In connection with the
execution of the merger agreement, Ramapo also granted Valley an option to
acquire 1,608,159 shares of Ramapo's authorized, but unissued common stock at an
exercise price of $7.50 per share.
"Ramapo will join with Valley to expand Valley's franchise in Passaic, Morris
and Essex counties", said Gerald H. Lipkin, Chairman, President and CEO of
Valley. Mr. Lipkin further noted, "The merger with Ramapo is consistent with
Valley's strategy of growth within Northern New Jersey through acquisitions of
other strong financial institutions. Ramapo's lending is heavily concentrated
towards commercial borrowers and the deposits consist of substantial low cost
core deposits. We believe the "in-market" nature of this acquisition, coupled
with Ramapo's high non-interest expenses (a 62% efficiency ratio compared to
Valley's 45%), will enable Valley to generate significant cost savings within a
brief period. Valley's goal in acquisitions is to price transactions so that
they are accretive to Valley's per share earnings at the completion of the first
year of combined operations."
Mr. Richard S. Miller, a Director of Ramapo, will join Valley's Board of
Directors following the merger.
The acquisition is conditioned upon necessary bank regulatory approvals, the
approval of Ramapo's shareholders and other customary conditions. The parties
anticipate that the merger will be consummated in the second quarter of 1999.
Valley National Bank, the principal subsidiary of Valley National Bancorp,
currently has $5.3 billion in assets and operates 105 branches in 10 counties
serving 70 communities throughout Northern New Jersey.
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This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are not
historical facts and include expressions about management's confidence and
strategies and management's expectations about new and existing programs and
products, relationships, opportunities, technology as "expect", "look",
"believe", "anticipate", "may", "will", or similar statements or variations of
such terms. Such forward-looking statements involve certain risks and
uncertainties. These include, but are not limited to, anticipated merger cost
savings, revenue enhancements, the level of merger related expenses, the
direction of interest rates, continued levels of loan quality and origination
volume, continued relationships with major customers including sources for
loans, successful completion of the implementation of Year 2000 technology
changes, as well as the effects of economic conditions and legal and regulatory
barriers and structure. Actual results may differ materially from such
forward-looking statements. Valley assumes no obligation for updating any such
forward-looking statement at any time.
