THIS VOTING
AGREEMENT (this “ Agreement ”) is made and
entered into as of October 30, 2006 by and between Merck &
Co., Inc., a New Jersey corporation (“ Acquiror
”), and the undersigned securityholder (“
Stockholder ”) of Sirna Therapeutics, Inc., a Delaware
corporation (“ Sirna ”).
A. Acquiror,
Sirna and Merger Sub (as defined below) are concurrently entering
into an Agreement and Plan of Merger (the “ Merger
Agreement ”), which provides for the merger (the “
Merger ”) of Spinnaker Acquisition Corp., a Delaware
corporation and a wholly owned subsidiary of Acquiror (“
Merger Sub ”), with and into Sirna, pursuant to which
all outstanding capital stock of Sirna will be converted into the
right to receive the consideration set forth in the Merger
Agreement.
B. Stockholder
is the beneficial owner (as defined in Rule 13d-3 under the
Securities Exchange Act of 1934, as amended (the “
Exchange Act ”)) of such number of shares of the
outstanding capital stock of Sirna, and such number of shares of
capital stock of Sirna issuable upon the exercise of outstanding
options and warrants, as set forth on the signature page
hereof.
C. As an
inducement and a condition to entering into the Merger Agreement by
Acquiror, Acquiror has requested that Stockholder agree, and
Stockholder has agreed (in Stockholder’s capacity as such,
and not in any other capacity, including as a director or officer
of Sirna, as applicable), to enter into this Agreement in order to
facilitate the consummation of the Merger.
NOW,
THEREFORE , intending to be legally bound, the parties hereto
agree as follows:
1.
Definitions . For the purposes of this Agreement,
capitalized terms that are used but not defined herein shall have
the respective meanings ascribed thereto in the Merger
Agreement.
(a)
“ Expiration Date ” shall mean the earliest to
occur of (i) the date and time as the Merger Agreement shall
have been validly terminated according to its terms and
(ii) the date and time as the Merger shall become effective in
accordance with the terms and conditions set forth in the Merger
Agreement.
(b)
“ Person ” shall mean any individual,
corporation, partnership, limited liability company, joint venture,
association, trust, unincorporated organization or other
entity.
(c)
“ Shares ” shall mean: (i) all securities
of Sirna (including all shares of capital stock of Sirna and all
options, warrants and other rights to acquire shares of capital
stock of Sirna)
owned by
Stockholder as of the date of this Agreement, and (ii) all
additional securities of Sirna (including all additional shares of
capital stock of Sirna and all additional options, warrants and
other rights to acquire shares of capital stock of Sirna) which
Stockholder acquires beneficial ownership during the period
commencing with the execution and delivery of this Agreement until
the Expiration Date.
(d)
“ Transfer ” shall mean, with respect to any
security, the direct or indirect assignment, sale, transfer,
tender, pledge, hypothecation, or the gift, placement in trust, or
other disposition of such security (excluding transfers by
testamentary or intestate succession or otherwise by operation of
law) or any right, title or interest therein (including, but not
limited to, any right or power to vote to which the holder thereof
may be entitled, whether such right or power is granted by proxy or
otherwise), or the record or beneficial ownership thereof, the
offer to make such a sale, transfer, or other disposition, and each
agreement, arrangement or understanding, whether or not in writing,
to effect any of the foregoing; provided , however ,
the exercise of any Warrant shall not be deemed to constitute the
Transfer of such Warrant or the underlying Shares.
2.
Restriction on Transfer, Proxies and Non-Interference . At
all times during the period commencing with the execution and
delivery of this Agreement and continuing until the Expiration
Date, Stockholder shall not, directly or indirectly, (A) cause
or permit the Transfer of any of the Shares to be effected or enter
into any contract, option or other agreement with respect to, or
consent to, a Transfer of, any of the Shares or Stockholder’s
voting or economic interest therein, (B) grant any proxies or
powers of attorney with respect to any of the Shares, deposit any
of the Shares into a voting trust or enter into a voting agreement
or other similar commitment or arrangement with respect to any of
the Shares in contravention of the obligations of Stockholder under
this Agreement, (C) request that Sirna register the Transfer
in contravention of this Agreement of any certificate or
uncertificated interest representing any of the Shares or (D)
permit any such Shares to be, or become subject to, any pledges,
liens, preemptive rights, security interests, claims, charges or
other encumbrances or arrangements (each, an “
Encumbrance ”).
3.
Agreement to Vote Shares . During the period commencing on
the date hereof and continuing until the Expiration Date, at every
meeting of stockholders of Sirna called with respect to any of the
following, and at every adjournment or postponement thereof, and on
every action or approval by written consent of stockholders of
Sirna with respect to any of the following, Stockholder shall vote,
to the extent not voted by the Person(s) appointed as proxies under
Section 4, or shall cause the record holder of any Shares on the
applicable record date to appear (in Person or by proxy) and vote
the Shares entitled to vote thereon:
(a) in
favor of adoption and approval of the Merger Agreement and the
Merger contemplated thereby, including each other action, agreement
and transaction contemplated by or in furtherance of the Merger
Agreement, the Merger and this Agreement;
(b) against
approval of any proposal made in opposition to, or in competition
with, consummation of the Merger and the transactions contemplated
by the Merger Agreement;
(c) except
as otherwise agreed to in writing in advance by Acquiror, against
any other action, proposal, transaction or agreement that would
compete with or serve to interfere with, delay, discourage,
adversely affect or inhibit the timely consummation of the Merger;
and
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(d) against
any Acquisition Proposal (other than the Acquisition Proposal
contemplated by the Merger Agreement).
4.
Irrevocable Proxy . Stockholder hereby irrevocably and
unconditionally revokes any and all previous proxies granted with
respect to the Shares. By entering into this Agreement, Stockholder
hereby irrevocably and unconditionally grants a proxy appointing
Richard Kender and John Mustillo of Acquiror as such
Stockholder’s attorneys-in-fact and proxies, with full power
of substitution, for and in such Stockholder’s name, to vote,
express, consent or dissent, or otherwise to utilize such voting
power solely as specifically set forth in Section 3 as to the
matters specified in Section 3. The proxy granted by
Stockholder pursuant to this Section 4 is coupled with an
interest and is irrevocable and is granted in consideration of
Acquiror entering into this Agreement and incurring certain related
fees and expenses. Notwithstanding the foregoing, the proxy granted
by Stockholder shall be revoked upon termination of this Agreement
in accordance with its terms. Such irrevocable proxy is executed
and intended to be irrevocable in accordance with Section 212(e) of
the General Corporation Law of the State of Delaware (the “
DGCL ”). Acquiror covenants and agrees that Richard
Kender and John Mustillo of Acquiror shall attend any stockholder
meeting called with respect to the matters in Section 3 either
in person or by proxy, and shall vote all the Shares as
contemplated by Section 3 at any such meeting, including any
adjournment or postponement thereof.
5. No
Solicitations . From the date hereof until the Expiration Date,
Stockholder agrees neither Stockholder nor any of its Affiliates
(it being agreed that the Company and its Subsidiaries shall not be
considered Affiliates of Stockholder for purposes of this
Section 5), officers or directors shall, and Stockholder shall
not permit the employees, agents or representatives, including any
investment banker, attorney, consultant or accountant of the
Stockholder or any of its Affiliates on its behalf to, take any
action prohibited by Section 7.2 or Section 7.3 of the
Merger Agreement (assuming, for purposes of this Section 5,
that Stockholder is a “Representative” of the Company
as defined in the Merger Agreement).
6.
Alternative Transaction Payment .
(a) If
(i) the Merger Agreement shall have been terminated
(A) by Sirna pursuant to Section 9.3(a) thereof or Acquiror
pursuant to Section 9.4(a) or (b) thereof or (B) by
Sirna or Acquiror pursuant to Section 9.2(a) or 9.2(b)
thereof, and, in either case, a proposal for an Alternative
Transaction shall have been made public and not been withdrawn
prior to the time of the Stockholders’ Meeting (or at any
adjournment thereof) and (ii) Sirna enters into a definitive
agreement with respect to an Alternative Transaction within twelve
(12) months after the termination of the Merger Agreement or
an Alternative Transaction is consummated within twelve (12) months
after the date of such termination, then Stockholder shall pay to
Acquiror, within two business days after receipt, an amount equal
to 50% of the Profit (as defined in Section 6(d) below), if any,
(x) received by Stockholder or (y) that would have
received by Stockholder as a result of Shares held by Stockholder
on the date hereof in connection with consummation of such
Alternative Transaction. Any payment to Acquiror hereunder shall be
made in the same form as the consideration received from such
transaction (and, if the consideration so received was in more than
one form, then in the same proportion as the forms of consideration
so received).
(b) If
Acquiror shall have increased the Merger Consideration to an amount
per share greater than $13.00 and the Merger shall have been
consummated, then each Stockholder shall pay
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to Acquiror,
within two business days after receipt, an amount equal to 50% of
the Profit received by such Stockholder in connection with
consummation of the Merger. Any payment to Acquiror hereunder shall
be made in the same form as the consideration received from the
Merger (and, if the consideration so received was in more than one
form, then in the same proportion as the forms of consideration so
received).
(c) Any
payment to be made hereunder on account of Profit (i) received
in cash, shall be paid by wire transfer of same day funds to an
account designated by Acquiror and (ii) received in the form
of securities or other property, shall be paid through delivery to
Acquiror of the securities or property, suitably endorsed for
transfer free and clear of all liens, charges, encumbrances, voting
agreements, and commitments of every kind (other than those imposed
by, through or under the Alternative Transaction or as required by
law).
(d) (i) For
purposes of this Section 6, “Profit” of a
Stockholder in conn
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