Agreement and Plan of Merger (2007)Full Document 

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AGREEMENT AND PLAN OF MERGER
among
SMITHKLINE BEECHAM CORPORATION,
PILGRIM ACQUISITION CORPORATION,
and
PRAECIS PHARMACEUTICALS INCORPORATED
Dated as of December 20, 2006
 
 

 


 

TABLE OF CONTENTS
             
        Page  
 
ARTICLE I
THE OFFER
 
           
Section 1.1.
  The Offer     2  
Section 1.2.
  Company Consent; Schedule 14D-9     4  
Section 1.3.
  Stockholder Lists     4  
Section 1.4.
  Directors     4  
Section 1.5.
  Top-Up Option     6  
 
           
ARTICLE II
THE MERGER
 
           
Section 2.1.
  The Merger     7  
Section 2.2.
  Closing; Effective Time     7  
Section 2.3.
  Effects of the Merger     7  
Section 2.4.
  Certificate of Incorporation; Bylaws     7  
Section 2.5.
  Directors and Officers     8  
Section 2.6.
  Special Meeting     8  
Section 2.7.
  Merger Without Meeting of Stockholders     8  
 
           
ARTICLE III
EFFECT OF THE MERGER ON THE CAPITAL STOCK OF THE CONSTITUENT CORPORATIONS
 
           
Section 3.1.
  Conversion of Securities     8  
Section 3.2.
  Treatment of Equity Awards and ESPP     9  
Section 3.3.
  Dissenting Shares     10  
Section 3.4.
  Surrender of Shares     10  
Section 3.5.
  Withholding Taxes     11  
 
           
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
 
           
Section 4.1.
  Organization and Qualification; No Subsidiaries     12  
Section 4.2.
  Certificate of Incorporation and Bylaws     13  
Section 4.3.
  Capitalization     13  
Section 4.4.
  Authority     14  
Section 4.5.
  No Conflict; Required Filings and Consents     15  
Section 4.6.
  Compliance     16  

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TABLE OF CONTENTS
(continued)
             
        Page  
 
Section 4.7.
  SEC Filings; Financial Statements     16  
Section 4.8.
  Absence of Certain Changes or Events     18  
Section 4.9.
  Absence of Litigation     19  
Section 4.10.
  Employee Benefit Plans     19  
Section 4.11.
  Labor and Employment Matters     21  
Section 4.12.
  Insurance     22  
Section 4.13.
  Properties     22  
Section 4.14.
  Tax Matters     22  
Section 4.15.
  Schedule 14D-9; Offer Documents; Proxy Statement     24  
Section 4.16.
  Intellectual Property     25  
Section 4.17.
  Environmental Matters     27  
Section 4.18.
  Contracts     28  
Section 4.19.
  Affiliate Transactions     30  
Section 4.20.
  Opinion of Financial Advisors     30  
Section 4.21.
  Brokers; Certain Fees     31  
Section 4.22.
  Takeover Laws; Rights Agreement     31  
 
           
ARTICLE V
REPRESENTATIONS AND WARRANTIES OF PARENT AND PURCHASER
 
           
Section 5.1.
  Organization     32  
Section 5.2.
  Authority     32  
Section 5.3.
  No Conflict; Required Filings and Consents     32  
Section 5.4.
  Absence of Litigation     33  
Section 5.5.
  Offer Documents; Schedule 14D-9; Proxy Statement     33  
Section 5.6.
  Brokers     34  
Section 5.7.
  Financing     34  
 
           
ARTICLE VI
COVENANTS
 
           
Section 6.1.
  Conduct of Business of the Company Pending the Merger     34  
Section 6.2.
  Access to Information; Confidentiality     36  
Section 6.3.
  Acquisition Proposals     37  
Section 6.4.
  Employment and Employee Benefits Matters     41  

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TABLE OF CONTENTS
(continued)
             
        Page  
 
Section 6.5.
  Directors’ and Officers’ Indemnification and Insurance     42  
Section 6.6.
  Further Action; Efforts     43  
Section 6.7.
  Takeover Laws     45  
Section 6.8.
  Proxy Statement     45  
Section 6.9.
  Subsequent Filings     45  
Section 6.10.
  Public Announcements     46  
Section 6.11.
  Notification     46  
Section 6.12.
  Approval of Compensation Actions     46  
Section 6.13.
  Dispositions     46  
Section 6.14.
  Plenaxis® Disposition     46  
 
           
ARTICLE VII
CONDITIONS OF MERGER
 
           
Section 7.1.
  Conditions to Obligation of Each Party to Effect the Merger     47  
 
           
ARTICLE VIII
TERMINATION, AMENDMENT AND WAIVER
 
           
Section 8.1.
  Termination by Mutual Agreement     47  
Section 8.2.
  Termination by Either Parent or the Company  

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