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

TABLE OF CONTENTS
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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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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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