Agreement and Plan of Merger (2017)Full Document 

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EXECUTION VERSION

AGREEMENT AND PLAN OF MERGER

AND REORGANIZATION

among:

CEMPRA, INC.,

a Delaware corporation;

CASTLE ACQUISITION CORP.,

a Delaware corporation; and

MELINTA THERAPEUTICS, INC.,

a Delaware corporation

Dated as of August 8, 2017


TABLE OF CONTENTS

Page

Article I DESCRIPTION OF TRANSACTION

2

Section 1.1

Structure of the Merger

2

Section 1.2

Effects of the Merger

2

Section 1.3

Closing; Effective Time

2

Section 1.4

Certificate of Incorporation and Bylaws; Directors and Officers

3

Section 1.5

Conversion of Shares and Issuance of Warrants

4

Section 1.6

Closing of the Company’s Transfer Books

5

Section 1.7

Surrender of Certificates

5

Section 1.8

Appraisal Rights

7

Section 1.9

Further Action

7

Section 1.10

Tax Consequences

8

Article II REPRESENTATIONS AND WARRANTIES OF THE COMPANY

8

Section 2.1

Subsidiaries; Due Organization; Etc

8

Section 2.2

Certificate of Incorporation; Bylaws; Charters and Codes of Conduct

9

Section 2.3

Capitalization, Etc

9

Section 2.4

Financial Statements

11

Section 2.5

Absence of Changes

12

Section 2.6

Title to Assets

14

Section 2.7

Real Property; Leasehold

14

Section 2.8

Intellectual Property

14

Section 2.9

Agreements, Contracts and Commitments

16

Section 2.10

Liabilities

17

Section 2.11

Compliance; Permits; Restrictions

18

Section 2.12

Tax Matters

19

Section 2.13

Employee and Labor Matters; Benefit Plans

21

Section 2.14

Environmental Matters

24

Section 2.15

Insurance

25

Section 2.16

Legal Proceedings; Orders

26

Section 2.17

Authority; Binding Nature of Agreement

26

Section 2.18

Inapplicability of Anti-takeover Statutes

26

Section 2.19

Vote Required

26

Section 2.20

Non-Contravention; Consents

27

Section 2.21

No Financial Advisor

28

Section 2.22

Disclosure

28

Article III REPRESENTATIONS AND WARRANTIES OF CASTLE AND MERGER SUB

28

Section 3.1

Subsidiaries; Due Organization; Etc

28

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Section 3.2

Certificate of Incorporation; Bylaws; Charters and Codes of Conduct

29

Section 3.3

Capitalization, Etc

29

Section 3.4

SEC Filings; Financial Statements

31

Section 3.5

Absence of Changes

32

Section 3.6

Title to Assets

33

Section 3.7

Real Property; Leasehold

34

Section 3.8

Intellectual Property

34

Section 3.9

Agreements, Contracts and Commitments

36

Section 3.10

Liabilities

37

Section 3.11

Compliance; Permits; Restrictions

37

Section 3.12

Tax Matters

39

Section 3.13

Employee and Labor Matters; Benefit Plans

40

Section 3.14

Environmental Matters

44

Section 3.15

Insurance

44

Section 3.16

Transactions with Affiliates

45

Section 3.17

Legal Proceedings; Orders

45

Section 3.18

Authority; Binding Nature of Agreement

45

Section 3.19

Inapplicability of Anti-takeover Statutes

46

Section 3.20

Vote Required

46

Section 3.21

Non-Contravention; Consents

46

Section 3.22

No Financial Advisor

47

Section 3.23

Disclosure

47

Section 3.24

Valid Issuance

47

Article IV CERTAIN COVENANTS OF THE PARTIES

47

Section 4.1

Access and Investigation

47

Section 4.2

Operation of Castle’s Business

49

Section 4.3

Operation of the Company’s Business

50

Section 4.4

Negative Obligations

50

Section 4.5

No Solicitation

54

Article V ADDITIONAL AGREEMENTS OF THE PARTIES

55

Section 5.1

Proxy Statement

55

Section 5.2

Company Stockholder Written Consent

56

Section 5.3

Castle Stockholders’ Meeting

57

Section 5.4

Regulatory Approvals

58

Section 5.5

Company Options and Warrants

59

Section 5.6