AGREEMENT AND PLAN OF MERGER

Agreement and Plan of Merger

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SOVEREIGN BANCORP INC | ICELAND ACQUISITION CORP. | INDEPENDENCE COMMUNITY BANK CORP.

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Title: AGREEMENT AND PLAN OF MERGER
Governing Law: Delaware Date: 10/27/2005
Industry: SandLs/Savings Banks Law Firm: Stevens & Lee; Simpson Thacher & Bartlett LLP Sector: Financial

EXHIBIT 2.1

AGREEMENT AND PLAN OF MERGER

BY AND AMONG

SOVEREIGN BANCORP, INC.,

ICELAND ACQUISITION CORP.

AND

INDEPENDENCE COMMUNITY BANK CORP.

DATED AS OF OCTOBER 24, 2005

TABLE OF CONTENTS


			Page





ARTICLE I THE MERGER				1




	1.1.	The Merger		1




	1.2.	Effective Time		1




	1.3.	Effects of the Merger		1




	1.4.	Closing of the Merger		1




	1.5.	Certificate of Incorporation		2




	1.6.	By-laws		2




	1.7.	Board of Directors		2




	1.8.	Change to Structure of Merger		2




	1.9.	Adjustment		2





ARTICLE II CONSIDERATION; EXCHANGE PROCEDURES				2




	2.1.	Conversion of ICBC Common Stock		2




	2.2.	Treatment of ICBC Stock Options and Restricted Shares		3





ARTICLE III EXCHANGE OF CERTIFICATES FOR MERGER CONSIDERATION				4




	3.1.	Sovereign to Make Merger Consideration Available		4




	3.2.	Exchange of Shares		4





ARTICLE IV REPRESENTATIONS AND WARRANTIES OF ICBC				5




	4.1.	Disclosure Schedule; Disclosure Standard		5




	4.2.	Corporate Organization		5




	4.3.	Capitalization		6




	4.4.	Authority; No Violation		7




	4.5.	Consents and Approvals		7




	4.6.	SEC Documents; Other Reports		8




	4.7.	Financial Statements; Undisclosed Liabilities; Internal Controls		8




	4.8.	Broker’s Fees		9




	4.9.	Absence of Certain Changes or Events		9




	4.10.	Legal Proceedings		9




	4.11.	Taxes		9




	4.12.	Employees; Employee Benefit Plans		10




	4.13.	Compliance With Applicable Law		11




	4.14.	Certain Contracts		11




	4.15.	Regulatory Matters		11




	4.16.	ICBC Information		12




	4.17.	Title to Property		12




	4.18.	Environmental Liability		12




	4.19.	Opinion of Financial Advisor		13




	4.20.	Intellectual Property		13




	4.21.	Labor Matters		13




	4.22.	Loan Matters		13




	4.23.	Related Party Transactions		14




	4.24.	Takeover Laws		14


			Page

	4.25.	Interest Rate Risk Management Instruments		14




	4.26.	Community Reinvestment Act		14




	4.27.	Credit Card Accounts		14




	4.28.	Merchant Processing		14





ARTICLE V REPRESENTATIONS AND WARRANTIES OF SOVEREIGN				15




	5.1.	Disclosure Standard		15




	5.2.	Corporate Organization		15




	5.3.	Authority; No Violation		15




	5.4.	Consents and Approvals		16




	5.5.	Broker’s Fees		16




	5.6.	Legal Proceedings		16




	5.7.	Agreements With Regulatory Agencies		16




	5.8.	Sovereign Information		17




	5.9.	Financing		17




	5.10.	Opinion of Financial Advisor		17




	5.11.	Operations of Merger Sub		17




	5.12.	Ownership of Shares		17




	5.13.	Investment Agreement		17





ARTICLE VI COVENANTS RELATING TO CONDUCT OF BUSINESS				17




	6.1.	Conduct of Business of ICBC Prior to the Effective Time		17




	6.2.	ICBC Forbearances		17




	6.3.	Sovereign Forebearances		19





ARTICLE VII ADDITIONAL AGREEMENTS				19




	7.1.	Regulatory Matters		19




	7.2.	Access to Information		20




	7.3.	Stockholder Approval		20




	7.4.	Acquisition Proposals		21




	7.5.	Legal Conditions to Merger		22




	7.6.	Employee Benefits and Retention Bonuses		22




	7.7.	Indemnification; Directors’ and Officers’ Insurance		26




	7.8.	Advice of Changes		27




	7.9.	Actions Relating to Investment Agreement		27




	7.10.	Bank Merger; Divisional Board; Post-Closing Governance Matters		27




	7.11.	Outplacement Services		28




	7.12.	Assumption of Debt		28




	7.13.	ICBC Community Activities		28




	7.14.	Affiliate Agreements		28




	7.15.	Exemption From Liability Under Section 16(b)		28




	7.16.	Current Information		28


				Page





ARTICLE VIII CONDITIONS PRECEDENT					29




		8.1.	Conditions to Each Party’s Obligation to Effect the Merger		29




		8.2.	Conditions to Obligations of Sovereign		29




		8.3.	Conditions to Obligations of ICBC		29





ARTICLE IX TERMINATION AND AMENDMENT					30




		9.1.	Termination		30




		9.2.	Effect of Termination		31




		9.3.	Amendment		32




		9.4.	Extension; Waiver		32





ARTICLE X GENERAL PROVISIONS					32




	10.1.		Nonsurvival of Representations, Warranties and Agreements		32




	10.2.		Expenses		32




	10.3.		Notices		32




	10.4.		Interpretation		33




	10.5.		Counterparts		33




	10.6.		Entire Agreement		33




	10.7.		Governing Law		33




	10.8.		Severability		34




	10.9.		Publicity		34