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Title: |
Agreement and Plan of Merger |
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Entities: |
Biogen, Inc.; CIBC World Markets Corp.; Citibank, NA; Targeted Genetics Corp.; University of Pennsylvania; Orrick, Herrington & Sutcliffe; Weil, Gotshal & Manges LLP |
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Date: |
2000 |
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Size: |
Preview shows 30KB of 295KB total |
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Price: |
$95 |
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ID: |
#328522 |
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Start of Preview |
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AGREEMENT AND PLAN OF MERGER
among
TARGETED GENETICS CORPORATION,
GENOVO, INC.,
TGC ACQUISITION CORPORATION
and
BIOGEN, INC.
August 8, 2000
[*] Certain information in this Exhibit has been omitted and filed separately
with the Securities and Exchange Commission pursuant to a confidential
treatment request.
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
Page
{S} {C}
ARTICLE ONE..................................................................................................... 1
1. The Merger............................................................................................. 1
1.1 The Merger.................................................................................... 1
1.2 Closing; Effective Time....................................................................... 2
1.3 Effect of the Merger.......................................................................... 2
1.4 Certificate of Incorporation; Bylaws.......................................................... 2
1.5 Directors and Officers........................................................................ 2
1.6 Effect on Capital Stock....................................................................... 2
1.7 Surrender of Certificates..................................................................... 8
1.8 No Further Ownership Rights in Genovo Capital Stock........................................... 10
1.9 Tax and Accounting Consequences............................................................... 10
1.10 Taking of Necessary Action; Further Action.................................................... 10
1.11 Withholding................................................................................... 10
1.12 Lost, Stolen or Destroyed Certificates........................................................ 11
1.13 Stock Transfer Books.......................................................................... 11
ARTICLE TWO..................................................................................................... 11
2. Representations and Warranties of Genovo............................................................... 11
2.1 Organization; Subsidiaries or Affiliates...................................................... 11
2.2 Certificate of Incorporation and Bylaws....................................................... 12
2.3 Capital Structure............................................................................. 12
2.4 Authority..................................................................................... 13
2.5 No Conflicts; Required Filings and Consents................................................... 14
2.6 Financial Statements.......................................................................... 14
2.7 Absence of Undisclosed Liabilities............................................................ 15
2.8 Absence of Certain Changes.................................................................... 15
2.9 Litigation.................................................................................... 16
2.10 Permits; No Default; Company Products; Regulation............................................. 17
2.11 Title to Property............................................................................. 17
2.12 Intellectual Property......................................................................... 18
2.13 Environmental Matters......................................................................... 20
2.14 Taxes......................................................................................... 21
{/TABLE}
-i-
{PAGE}
TABLE OF CONTENTS
(continued)
{TABLE}
{CAPTION}
Page
{S} {C}
2.15 Employee Benefit Plans........................................................................ 23
2.16 Certain Agreements Affected by the Merger..................................................... 25
2.17 Employee Matters.............................................................................. 25
2.18 Material Contracts............................................................................ 25
2.19 Interested Party Transactions................................................................. 27
2.20 Insurance..................................................................................... 27
2.21 Minute Books.................................................................................. 27
2.22 Brokers' and Finders' Fees.................................................................... 27
2.23 Vote Required................................................................................. 27
2.24 Board Approval................................................................................ 28
2.25 Opinion of Financial Advisor.................................................................. 28
ARTICLE 2A...................................................................................................... 28
2A. Representations and Warranties of Biogen............................................................... 28
2A.1 Organization; Authority....................................................................... 28
2A.2 Biogen Shares................................................................................. 28
2A.3 No Conflicts; Required Filings and Consents................................................... 29
2A.4 Brokers or Agents............................................................................. 29
2A.5 Voting Agreement; Lockup Agreement............................................................ 29
ARTICLE THREE................................................................................................... 29
3. Representations and Warranties of Targeted and Merger Sub.............................................. 29
3.1 Organization, Standing and Power.............................................................. 29
3.2 Capital Structure............................................................................. 30
3.3 Authority..................................................................................... 31
3.4 No Conflict; Required Filings and Consents.................................................... 31
3.5 SEC Documents; Financial Statements........................................................... 32
3.6 Absence of Undisclosed Liabilities............................................................ 33
3.7 Absence of Certain Changes.................................................................... 33
3.8 Absence of Litigation......................................................................... 34
3.9 Governmental Authorization.................................................................... 34
3.10 Compliance With Laws.......................................................................... 34
3.11 Broker's and Finders' Fees.................................................................... 34
{/TABLE}
-ii-
{PAGE}
TABLE OF CONTENTS
(continued)
{TABLE}
{CAPTION}
Page
{S} {C}
3.12 Tax Matters................................................................................... 34
3.13 Intellectual Property......................................................................... 35
3.14 Merger Subsidiary............................................................................. 35
3.15 Sufficient Funds.............................................................................. 35
3.16 No Vote Required.............................................................................. 36
3.17 Board Approval................................................................................ 36
ARTICLE FOUR.................................................................................................... 36
4. Conduct Before the Effective Time...................................................................... 36
4.1 Conduct of Genovo............................................................................. 36
4.2 Conduct of Business of Targeted............................................................... 38
4.3 No Solicitation............................................................................... 40
4.4 Notices....................................................................................... 41
ARTICLE FIVE.................................................................................................... 41
5. Additional Agreements.................................................................................. 41
5.1 Efforts and Further Assurances................................................................ 41
5.2 Consents; Cooperation......................................................................... 41
5.3 Access to Information......................................................................... 44
5.4 Confidentiality............................................................................... 44
5.5 Public Disclosure............................................................................. 44
5.6 FIRPTA........................................................................................ 44
5.7 State Statutes................................................................................ 45
5.8 Blue Sky Laws................................................................................. 45
5.9 Listing of Additional Shares.................................................................. 45
5.10 Information Statement; Stockholder Approval................................................... 45
5.11 Special Meeting of Stockholders............................................................... 46
5.12 Voting Agreements; Lockup Agreements.......................................................... 46
5.13 Maintenance of Genovo Indemnification Obligations............................................. 47
5.14 Reorganization Treatment...................................................................... 48
5.15 Board of Directors............................................................................ 48
5.16 Obligations of Merger Sub..................................................................... 48
5.17 Biogen Demand Notes........................................................................... 49
{/TABLE}
-iii-
{PAGE}
TABLE OF CONTENTS
(continued)
{TABLE}
{CAPTION}
Page
{S} {C}
5.18 Escrow Agreement.............................................................................. 49
5.19 Registration of Shares........................................................................ 49
ARTICLE SIX..................................................................................................... 54
6. Conditions to the Merger............................................................................... 54
6.1 Conditions to Obligations of Each Party to Effect the Merger.................................. 54
6.2 Conditions to Obligations of Genovo........................................................... 55
6.3 Conditions to the Obligations of Targeted and Merger Sub...................................... 56
ARTICLE SEVEN................................................................................................... 58
7. Termination, Amendment and Waiver...................................................................... 58
7.1 Termination................................................................................... 58
7.2 Effect of Termination......................................................................... 60
7.3 Expenses and Termination Fees................................................................. 60
7.4 Amendment..................................................................................... 61
7.5 Extension; Waiver............................................................................. 61
ARTICLE EIGHT................................................................................................... 62
8. Escrow and Indemnification............................................................................. 62
8.1 Survival of Representations and Warranties.................................................... 62
8.2 Indemnification by Genovo Stockholders........................................................ 62
8.3 Damages Threshold............................................................................. 63
8.4 Escrow Fund; Escrow Agreement................................................................. 63
8.5 Escrow Period................................................................................. 64
8.6 Distributions; Voting......................................................................... 64
8.7 Method of Asserting Claims; Resolution of Conflicts........................................... 65
8.8 Stockholders' Representative; Power of Attorney............................................... 65
8.9 Adjustment to Escrow.......................................................................... 65
8.10 Third-Party Claims............................................................................ 66
8.11 University of Pennsylvania Amendment.......................................................... 67
ARTICLE NINE.................................................................................................... 68
9. General Provisions..................................................................................... 68
9.1 Expenses...................................................................................... 68
9.2 Notices....................................................................................... 68
{/TABLE}
-iv-
{PAGE}
TABLE OF CONTENTS
(continued)
{TABLE}
{CAPTION}
Page
{S} {C}
9.3 Headings...................................................................................... 70
9.4 Counterparts.................................................................................. 70
9.5 Entire Agreement; Nonassignability; Parties in Interest....................................... 70
9.6 Severability.................................................................................. 70
9.7 Remedies Cumulative........................................................................... 70
9.8 Governing Law................................................................................. 71
9.9 Rules of Construction......................................................................... 71
9.10 Amendments and Waivers........................................................................ 71
9.11 Specific Performance.......................................................................... 71
9.12 Joint and Several Liability................................................................... 71
9.13 Interpretation................................................................................ 71
{/TABLE}
Exhibit A Distribution Schedule
Exhibit B Form of Notice of Exercise
Exhibit C Genzyme Assumption Agreement
Exhibit D Genovo Disclosure Memorandum
Exhibit E Targeted Disclosure Memorandum
Exhibit F Biogen Agreements
Exhibit G Form of Voting Agreement
Exhibit H Form of Lockup Agreement
Exhibit I Form of Genovo Tax Certificates
Exhibit J Form of Escrow Agreement
Exhibit K Wilson Letter Agreement
Exhibit L Form of Aguiar Employment and Consulting Agreement
Exhibit M Form of Key Employee Agreements
Exhibit N Escrow Fund Allocation
Exhibit O University of Pennsylvania License Agreements
-v-
{PAGE}
AGREEMENT AND PLAN OF MERGER
----------------------------
This Agreement and Plan of Merger (this "Agreement") is made and entered
---------
into as of August 8, 2000, by and among Targeted Genetics Corporation, a
Washington corporation ("Targeted"), TGC Acquisition Corporation, a Delaware
--------
corporation and a direct wholly owned subsidiary of Targeted ("Merger Sub"),
----------
Genovo, Inc., a Delaware corporation ("Genovo"), and Biogen, Inc., a
------
Massachusetts corporation ("Biogen").
------
RECITALS
--------
A. The Boards of Directors of Genovo, Targeted, Merger Sub and Biogen
believe it is in the best interests of their respective companies and their
respective shareholders that Merger Sub be merged with and into Genovo (the
"Merger") in accordance with the Delaware General Corporation Law (the "DGCL")
------ ----
and in accordance with the terms and subject to the conditions set forth in this
Agreement. Pursuant to the Merger, each share of Genovo Capital Stock (as
defined in Section 1.6(a) of this Agreement) outstanding at the Effective Time
(as defined in Section 1.2 of this Agreement) shall be converted into the right
to receive shares of common stock, par value $0.01 per share, of Targeted (the
"Targeted Common Stock") and each option to purchase Genovo Capital Stock
---------------------
outstanding at the Effective Time shall be converted into the right to receive
options to purchase Targeted Common Stock, on the terms and conditions set forth
in this Agreement.
B. Each of Genovo, Targeted, Merger Sub and Biogen desires to make certain
representations and warranties and other agreements in connection with the
Merger.
C. For United States federal income tax purposes, the parties intend that
the Merger contemplated by this Agreement qualify as a tax-free "reorganization"
within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as
amended (the "Code"), and the rules and regulations promulgated under Section
----
368(a).
AGREEMENT
---------
In consideration of the foregoing premises and the mutual representations,
warranties and covenants of the parties set forth in this Agreement, and for
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties to this Agreement agree as follows:
ARTICLE ONE
1. The Merger.
----------
1.1 The Merger. At the Effective Time (as defined in Section 1.2 of
----------
this Agreement) and subject to and upon the terms and conditions of this
Agreement and the applicable provisions of the DGCL, Merger Sub shall be merged
with and into Genovo, at which time the separate corporate existence of Merger
Sub shall cease and Genovo shall continue as the surviving corporation of the
Merger (the "Surviving Corporation").
---------------------
1
{PAGE}
1.2 Closing; Effective Time. Upon the terms and subject to the
-----------------------
conditions of this Agreement, the closing of the Merger (the "Closing") shall
-------
take place at 10:00 a.m. on a date (the "Closing Date") that shall be the fifth
------------
business day after the satisfaction or waiver (subject to applicable Law (as
defined in Section 1.11 of this Agreement)) of each of the conditions set forth
in Article Six of this Agreement, other than those conditions that by their
nature are to be satisfied at the Closing (but subject to the fulfillment or
waiver of those conditions), at the offices of Orrick, Herrington & Sutcliffe
LLP, 701 Fifth Avenue, Suite 6500, Seattle, Washington 98104, or at such other
time, date or place as agreed to in writing by the parties to this Agreement. In
connection with the Closing, subject to the conditions of this Agreement, the
parties to this Agreement shall cause the Merger to be consummated by filing a
certificate of merger complying with the DGCL with the Secretary of State of the
state of Delaware (the "Certificate of Merger") on the Closing Date. The Merger
---------------------
shall become effective upon the filing of the Certificate of Merger with the
Secretary of State or at such later time as is agreed by Targeted and Genovo and
specified in the Certificate of Merger (the "Effective Time," and such date, the
--------------
"Effective Date").
--------------
1.3 Effect of the Merger. At the Effective Time, the effect of the
--------------------
Merger shall be as provided in this Agreement, the Certificate of Merger and the
DGCL. At the Effective Time, all the property, rights, privileges, powers,
immunities and franchises of Genovo and Merger Sub shall vest in the Surviving
Corporation, and all debts, liabilities, obligations and duties of Genovo and
Merger Sub shall become the debts, liabilities, obligations and duties of the
Surviving Corporation.
1.4 Certificate of Incorporation; Bylaws.
------------------------------------
(a) At the Effective Time, the certificate of incorporation of
Genovo, as in effect immediately before the Effective Time, shall be the
certificate of incorporation of the Surviving Corporation until thereafter
amended as provided by the DGCL and such certificate of incorporation, provided
that such certificate of incorporation shall be amended as soon as practicable
after the Effective Time to be substantially equivalent to the certificate of
incorporation of Merger Sub in effect immediately before the Effective Time.
(b) At the Effective Time, the bylaws of Merger Sub, as in effect
immediately before the Effective Time, shall be the bylaws of the Surviving
Corporation until thereafter amended as provided by the DGCL, the certificate of
incorporation of the Surviving Corporation and such bylaws.
1.5 Directors and Officers. From and after the Effective Time, the
----------------------
directors and officers of Merger Sub immediately before the Effective Time shall
be the directors and officers of the Surviving Corporation, in each case until
their successors are duly elected or appointed and qualified in accordance with
the DGCL and the certificate of incorporation and bylaws of the Surviving
Corporation.
1.6 Effect on Capital Stock. As of the Effective Time, by virtue of
-----------------------
the Merger and without any action on the part of Merger Sub, Genovo or any of
their respective stockholders, the following shall occur:
2
{PAGE}
(a) Conversion of Genovo Capital Stock. All shares of each class of
----------------------------------
common stock, par value $0.001 per share (the "Genovo Common Stock"), and each
-------------------
series of preferred stock, par value $0.001 per share (the "Genovo Preferred
----------------
Stock," and together with the Genovo Common Stock, the "Genovo Capital Stock"),
----- --------------------
of Genovo issued and outstanding at the Effective Time (other than any shares to
be cancelled pursuant to Section 1.6(b) and any Dissenting Shares (as defined in
subsection (f) of this Section 1.6)) shall be converted and exchanged for that
number of duly authorized, validly issued, fully paid and nonassessable shares
of Targeted Common Stock set forth in the distribution schedule attached to this
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