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Title: |
Agreement and Plan of Merger |
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Date: |
2001 |
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Preview shows 23KB of 227KB total |
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$88 |
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ID: |
#1120305 |
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AGREEMENT AND PLAN OF MERGER
BY AND AMONG
KEANE, INC.,
VERITAS ACQUISITION CORP.
AND
METRO INFORMATION SERVICES, INC.
DATED AS OF AUGUST 20, 2001
<PAGE>
ARTICLE I THE MERGER....................................................... 1
1.1 Effective Time of the Merger.......................................... 1
1.2 Closing............................................................... 2
1.3 Effects of the Merger................................................. 2
1.4 Directors and Officers................................................ 2
ARTICLE II CONVERSION OF SECURITIES........................................ 2
2.1 Conversion of Capital Stock........................................... 2
2.2 Exchange of Certificates.............................................. 4
ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY.................. 7
3.1 Organization, Standing and Power; Subsidiaries........................ 7
3.2 Capitalization........................................................ 8
3.3 Authority; No Conflict; Required Filings and Consents................. 11
3.4 SEC Filings; Financial Statements; Information Provided............... 12
3.5 No Undisclosed Liabilities............................................ 14
3.6 Absence of Certain Changes or Events.................................. 14
3.7 Taxes................................................................. 15
3.8 Owned and Leased Real Properties...................................... 17
3.9 Intellectual Property................................................. 18
3.10 Agreements, Contracts and Commitments................................ 20
3.11 Litigation........................................................... 21
3.12 Environmental Matters................................................ 22
3.13 Employee Benefit Plans............................................... 24
3.14 Compliance With Laws................................................. 27
3.15 Permits.............................................................. 27
3.16 Labor Matters........................................................ 27
3.17 Insurance............................................................ 27
3.18 Assets............................................................... 28
3.19 Customers and Suppliers.............................................. 28
3.20 Accounts Receivable.................................................. 28
3.21 Prepayments, Prebilled Invoices and Deposits......................... 29
3.22 Government Contracts................................................. 29
3.23 No Existing Discussions.............................................. 29
3.24 Opinion of Financial Advisor......................................... 29
3.25 Articles 14 and 14.1 of the VSCA Not Applicable...................... 30
3.26 Brokers; Schedule of Fees and Expenses............................... 30
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE BUYER AND THE TRANSITORY
SUBSIDIARY...................................................... 30
4.1 Organization, Standing and Power...................................... 31
4.2 Capitalization........................................................ 31
4.3 Authority; No Conflict; Required Filings and Consents................. 32
4.4 SEC Filings; Financial Statements; Information Provided............... 33
4.5 Tax Matters........................................................... 34
4.6 Operations of the Transitory Subsidiary............................... 34
4.7 Brokers............................................................... 34
4.8 Litigation............................................................ 34
4.9 Absence of Certain Changes or Events.................................. 34
ARTICLE V CONDUCT OF BUSINESS.............................................. 35
i
<PAGE>
5.1 Covenants of the Company.............................................. 35
5.2 Employee Stock Purchase Plan.......................................... 38
5.3 Confidentiality....................................................... 38
ARTICLE VI ADDITIONAL AGREEMENTS........................................... 38
6.1 No Solicitation....................................................... 38
6.2 Proxy Statement/Prospectus; Registration Statement.................... 42
6.3 Nasdaq Quotation...................................................... 42
6.4 Access to Information................................................. 42
6.5 Company Shareholders Meeting.......................................... 43
6.6 Additional Agreements................................................. 44
6.7 Legal Conditions to the Merger........................................ 44
6.8 Public Disclosure..................................................... 45
6.9 Reorganization........................................................ 46
6.10 Affiliate Agreements................................................. 46
6.11 AMEX Listing......................................................... 46
6.12 Company Stock Plans.................................................. 46
6.13 Shareholder Litigation............................................... 47
6.14 Indemnification...................................................... 47
6.15 Notification of Certain Matters...................................... 48
6.16 Exemption from Liability Under Section 16(b)......................... 48
6.17 Comfort Letters...................................................... 49
6.18 Representation on Buyer Board........................................ 49
ARTICLE VII CONDITIONS TO MERGER........................................... 49
7.1 Conditions to Each Party's Obligation To Effect the Merger............ 49
7.2 Additional Conditions to Obligations of the Buyer and the
Transitory Subsidiary................................................. 50
7.3 Additional Conditions to Obligations of the Company................... 51
ARTICLE VIII TERMINATION AND AMENDMENT..................................... 53
8.1 Termination........................................................... 53
8.2 Effect of Termination................................................. 54
8.3 Fees and Expenses..................................................... 54
8.4 Amendment............................................................. 56
8.5 Extension; Waiver..................................................... 56
ARTICLE IX MISCELLANEOUS................................................... 56
9.1 Nonsurvival of Representations and Warranties......................... 56
9.2 Notices............................................................... 56
9.3 Entire Agreement...................................................... 58
9.4 No Third Party Beneficiaries.......................................... 58
9.5 Assignment............................................................ 58
9.6 Severability.......................................................... 58
9.7 Counterparts and Signature............................................ 58
9.8 Interpretation........................................................ 59
9.9 Governing Law......................................................... 59
9.10 Remedies............................................................. 59
9.11 WAIVER OF JURY TRIAL................................................. 59
ii
<PAGE>
Exhibit A Plan of Merger
Exhibit B Form of Shareholder's Agreement
Exhibit C Form of Executive Retention Agreement
Exhibit D Form of Affiliate Agreement
iii
<PAGE>
TABLE OF DEFINED TERMS
Reference in
Terms Agreement
-------------------------------------------------------------- ----------------
Acquisition Proposal.......................................... Section 6.1(f)
Affiliate..................................................... Section 3.2(d)
Affiliate Agreement........................................... Section 6.10
Affiliate Contracts........................................... Section 3.10(b)
Agreement..................................................... Preamble
Alternative Acquisition Agreement............................. Section 6.1(b)
AMEX.......................................................... Section 2.2(e)
Antitrust Laws................................................ Section 6.7(b)
Antitrust Order............................................... Section 6.7(b)
Articles of Merger............................................ Section 1.1
Buyer......................................................... Preamble
Buyer Class B Common Stock.................................... Section 4.2
Buyer Common Stock............................................ Section 2.1(c)
Buyer Disclosure Schedule..................................... Article IV
Buyer ESPP.................................................... Section 6.12(d)
Buyer Material Adverse Effect................................. Section 4.1
Buyer Preferred Stock......................................... Section 4.2
Buyer SEC Reports............................................. Section 4.4(a)
Buyer Stock Option............................................ Section 6.12(a)
Certificates.................................................. Section 2.2(b)
Closing....................................................... Section 1.2
Closing Date.................................................. Section 1.2
Code.......................................................... Preamble
Company....................................................... Preamble
Company Balance Sheet......................................... Section 3.4(b)
Company Board................................................. Section 3.3(a)
Company Common Stock.......................................... Section 2.1(b)
Company Disclosure Schedule................................... Article III
Company Employee Plans........................................ Section 3.13(a)
Company ESPP.................................................. Section 5.1(n)
Company Insiders.............................................. Section 6.16(c)
Company Intellectual Property................................. Section 3.9(a)
Company Material Adverse Effect............................... Section 3.1(a)
Company Material Contracts.................................... Section 3.10(a)
Company Nonvoting Common Stock................................ Section 3.2(a)
Company Permits............................................... Section 3.15
Company Preferred Stock....................................... Section 3.2(a)
Company SEC Reports........................................... Section 3.4(a)
Company Stock Options......................................... Section 3.2(b)
Company Stock Plans........................................... Section 3.2(b)
Company Shareholder Approval.................................. Section 3.3(a)
iv
<PAGE>
Reference in
Terms Agreement
-------------------------------------------------------------- ---------------
Company Shareholders Meeting.................................. Section 3.4(c)
Company Voting Proposal....................................... Section 3.3(a)
Confidentiality Agreement..................................... Section 5.3
Constituent Corporations...................................... Section 1.3
Contamination................................................. Section 3.12(c)
Contracts..................................................... Section 3.10(e)
Effective Time................................................ Section 1.1
Employee Benefit Plan......................................... Section 3.13(a)
Environmental Law............................................. Section 3.12(b)
ERISA......................................................... Section 3.13(a)
ERISA Affiliate............................................... Section 3.13(a)
Exchange Agent................................................ Section 2.2(a)
Exchange Fund................................................. Section 2.2(a)
Exchange Act.................................................. Section 3.3(c)
Exchange Ratio................................................ Section 2.1(c)
GAAP.......................................................... Section 3.4(b)
Governmental Entity........................................... Section 3.3(c)
Governmental Regulations...................................... Section 3.8(b)
Government Contracts.......................................... Section 3.22
Hazardous Substance........................................... Section 3.12(e)
HSR Act....................................................... Section 3.3(c)
Indemnified Parties........................................... Section 6.14(a)
Insurance Policies............................................ Section 3.17
Intellectual Property......................................... Section 3.9(a)
Liens......................................................... Section 3.18
Merger........................................................ Preamble
Ordinary Course of Business................................... Section 3.2(e)
Outside Date.................................................. Section 8.1(b)
Plan of Merger................................................ Preamble
Proxy Statement/Prospectus.................................... Section 3.4(c)
Registration Statement........................................ Section 3.4(c)
Release....................................................... Section 3.12(d)
Representatives............................................... Section 6.1(a)
Real Estate................................................... Section 3.8(a)
Regulation M-A Filing......................................... Section 3.4(c)
Rule 145 Affiliate............................................ Section 2.2(j)
SCC........................................................... Section 1.1
SEC........................................................... Section 3.3(c)
Section 16 Information........................................ Section 6.16(b)
Securities Act................................................ Section 3.3(c)
Shareholder's Agreement....................................... Preamble
Shareholder Designee.......................................... Section 6.18(a)
Special ESPP Period........................................... Section 6.12(d)
v
<PAGE>
Reference in
Terms Agreement
-------------------------------------------------------------- ---------------
Specified Time................................................ Section 6.1(a)
Subsidiary.................................................... Section 3.1(b)
Superior Proposal............................................. Section 6.1(f)
Surviving Corporation......................................... Section 1.3
Tax Returns................................................... Section 3.7(a)
Taxes......................................................... Section 3.7(a)
Third Party Confidentiality Agreement......................... Section 6.1(a)
Transitory Subsidiary......................................... Preamble
VSCA.......................................................... Preamble
vi
<PAGE>
AGREEMENT AND PLAN OF MERGER
THIS AGREEMENT AND PLAN OF MERGER (this "Agreement"), dated as of August
20, 2001, is entered into by and among Keane, Inc., a Massachusetts corporation
(the "Buyer"), Veritas Acquisition Corp., a Virginia corporation and a wholly
owned subsidiary of the Buyer (the "Transitory Subsidiary"), and Metro
Information Services, Inc., a Virginia corporation (the "Company").
WHEREAS, the boards of directors of the Buyer and the Company deem it
advisable and in the best interests of each corporation and their respective
shareholders that the Buyer acquire the Company in order to advance the long-
term business interests of the Buyer and the Company;
WHEREAS, the acquisition of the Company shall be effected through a merger
(the "Merger") of the Transitory Subsidiary with and into the Company in
accordance with the terms of this Agreement, including the Plan of Merger
attached hereto as Exhibit A (the "Plan of Merger"), and the Virginia Stock
Corporation Act (the "VSCA"), as a result of which the Company shall become a
wholly owned subsidiary of the Buyer;
WHEREAS, concurrently with the execution and delivery of this Agreement and
as a condition and inducement to the Buyer's willingness to enter into this
Agreement, John H. Fain has entered into a Shareholder's Agreement, dated as of
the date of this Agreement, in the form attached hereto as Exhibit B (the
"Shareholder's Agreement"), pursuant to which, among other things, such
shareholder has agreed to give the Buyer a proxy to vote a certain number of the
shares of capital stock of the Company that such shareholder owns in favor of
the Merger; and
WHEREAS, for United States federal income tax purposes, it is intended that
the Merger shall qualify as a reorganization within the meaning of Section
368(a) of the Internal Revenue Code of 1986, as amended (the "Code");
NOW, THEREFORE, in consideration of the foregoing and the respective
representations, warranties, covenants and agreements set forth below, the
Buyer, the Transitory Subsidiary and the Company agree as follows:
ARTICLE I
THE MERGER
1.1 Effective Time of the Merger. Subject to the provisions of this
----------------------------
Agreement, prior to the Closing, the Buyer shall prepare, and on the Closing
Date or as soon as practicable thereafter the Buyer shall cause to be filed with
the State Corporation Commission of Virginia (the "SCC"), articles of merger
(the "Articles of Merger") in such form as is required by, and executed by the
Surviving Corporation in accordance with, the relevant provisions of the VSCA
and shall make all other filings or recordings required under the VSCA. The
Merger shall become effective upon the issuance of the Certificate of Merger by
1
<PAGE>
the SCC or at such later time as is established by the Buyer and the Company and
set forth in the Articles of Merger (the "Effective Time").
1.2 Closing. The closing of the Merger (the "Closing") shall take place at
-------
10:00 a.m., Boston time, on a date to be specified by the Buyer and the Company
(the "Closing Date"), which shall be no later than the second business day after
satisfaction or waiver of the conditions set forth in Article VII (other than
delivery of items to be delivered at the Closing and other than satisfaction of
those conditions that by their nature are to be satisfied at the Closing, it
being understood that the occurrence of the Closing shall remain subject to the
delivery of such items and the satisfaction or waiver of such conditions at the
Closing), at the offices of Hale and Dorr LLP, 60 State Street, Boston,
Massachusetts, unless another date, place or time is agreed to in writing by the
Buyer and the Company.
1.3 Effects of the Merger. At the Effective Time (a) the separate existence
---------------------
of the Transitory Subsidiary shall cease and the Transitory Subsidiary shall be
merged with and into the Company (the Transitory Subsidiary and the Company are
sometimes referred to herein as the "Constituent Corporations," and the Company
following the Merger is sometimes referred to herein as the "Surviving
Corporation"), (b) the Articles of Incorporation of the Company as in effect
immediately prior to the Effective Time shall be amended to be identical to the
Articles of Incorporation of the Transitory Subsidiary as in effect immediately
prior to the Effective Time except that all references to the name of the
Transitory Subsidiary shall be changed to refer to the name of the Company, and,
as so amended, such Articles of Incorporation shall be the Articles of
Incorporation of the Surviving Corporation, until further amended in accordance
with the VSCA, and (c) the Bylaws of the Company as in effect immediately prior
to the Effective Time shall be amended to be identical to the Bylaws of the
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