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Asset Purchase Agreement

 

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Title:

Asset Purchase Agreement

Entities:

May Department Stores Co.

Date:

2004

Size:

Preview shows 16KB of 240KB total

Price:

$92

ID:

#1172263

 

 

► Purchase & Sale ► Purchase ► Asset Purchase Agreements
► Retail ► Department & Discount

 

 

Start of Preview


<SEQUENCE>2

<FILENAME>exhibit102.txt
<DESCRIPTION>ASSET PURCHASE AGREEMENT
<TEXT>









ASSET PURCHASE AGREEMENT

among


TARGET CORPORATION
TARGET BRANDS, INC.
TARGET RECEIVABLES CORPORATION
RETAILERS NATIONAL BANK
EIGHTH STREET DEVELOPMENT COMPANY
DAYTON DEVELOPMENT COMPANY


and

THE MAY DEPARTMENT STORES COMPANY



Dated as of June 9, 2004



Relating to the Purchase and Sale of
Marshall Field's


_______________________________________________________________________________

TABLE OF CONTENTS

1. PURCHASE AND SALE OF ASSETS..............................................1
(a) Generally.............................................................1
(b) Credit Card Portfolio Assets..........................................5
(c) Excluded Assets.......................................................6

2. UNASSIGNABLE CONTRACTS...................................................9

3. ASSUMPTION OF LIABILITIES................................................9
(a) Generally.............................................................9
(b) Excluded Liabilities.................................................11

4. CLOSING; PURCHASE PRICE.................................................12
(a) Closing; Purchase Price..............................................12
(b) Purchase Price Adjustment............................................15
(c) Certain Payments.....................................................18
(d) Definitions Relating to Taxes........................................19
(e) Allocation of Purchase Price.........................................20
(f) Transfer Tax Valuation...............................................21
(g) Certain Stores.......................................................21
(h) Section 1031 Like-Kind Exchange......................................21

5. CONDITIONS TO CLOSING...................................................22
(a) Buyer's Obligation...................................................22
(b) Sellers' Obligation..................................................24
(c) Effect of Closing....................................................24

6. REPRESENTATIONS AND WARRANTIES OF THE COMPANY...........................25
(a) Organization and Authority...........................................25
(b) Non-Contravention....................................................25
(c) Shares of Acquired Subsidiaries......................................26
(d) Financial Statements.................................................27
(e) Nonforeign Certification.............................................27
(f) Taxes................................................................27
(g) Personal Property....................................................28
(h) Real Property........................................................28
(i) Condition of Assets..................................................31
(j) Intellectual Property................................................31
(k) Contracts............................................................32
(l) Litigation; Decrees..................................................33
(m) Insurance............................................................34

-i-

(n) Employee Benefits; ERISA.............................................34
(o) Absence of Changes or Events.........................................34
(p) Compliance with Laws.................................................35
(q) Environmental Matters................................................36
(r) Employee and Labor Relations.........................................37
(s) Credit Card Matters; Receivables.....................................37
(t) Assets of Acquired Subsidiaries......................................38

7. COVENANTS OF THE COMPANY................................................39
(a) Access...............................................................39
(b) Ordinary Conduct.....................................................39
(c) Confidentiality......................................................41
(d) Delivery of Records..................................................41
(e) Insurance and Insurance Proceeds.....................................41
(f) State Street Store...................................................42
(g) Issuance of Credit Cards.............................................42
(h) Certain Real Estate Options..........................................42
(i) Safety Net Program...................................................42
(j) Third-Party Confidentiality Agreements...............................43

8. REPRESENTATIONS AND WARRANTIES OF BUYER.................................43
(a) Organization and Authority of Buyer..................................43
(b) Non-Contravention....................................................43
(c) Litigation...........................................................43
(d) Availability of Funds................................................44

9. COVENANTS OF BUYER......................................................44
(a) Confidentiality......................................................44
(b) No Representations or Warranties.....................................44
(c) Gift Cards, Etc......................................................44
(d) Return Policies......................................................44
(e) Substitution of Collateral...........................................44
(f) HIPAA Confidentiality................................................45
(g) Indemnification......................................................45

10. MUTUAL COVENANTS........................................................45
(a) Consents.............................................................45
(b) Cooperation; Further Assurances......................................46
(c) Use of Trademarks....................................................47
(d) Publicity............................................................49
(e) Reasonable Best Efforts..............................................50
(f) Antitrust Notification...............................................50
(g) Intercompany Accounts................................................51

-ii-

(h) Transition Services..................................................51
(i) Credit Card Matters..................................................51
(j) Software Licenses....................................................53
(k) SEC Requirements.....................................................52

11. EMPLOYEES AND EMPLOYEE BENEFITS.........................................53
(a) Offers of Employment.................................................53
(b) Buyer's Employee Benefit Plans Generally.............................54
(c) Severance Benefits...................................................55
(d) Vacation Pay and Personal Holidays...................................56
(e) Disability Benefits and Leaves.......................................56
(f) Medical, Dental and Vision Plan Liabilities..........................57
(g) COBRA Coverage.......................................................57
(h) Retiree Medical Plans................................................57
(i) Flexible Spending Accounts...........................................58
(j) Qualified Retirement and 401(k) Plans................................58
(k) Tuition Reimbursement Program........................................59
(l) Adoption Assistance Reimbursement Program............................59
(m) Retiree Merchandise Discount Programs................................59
(n) No Third-Party Beneficiaries.........................................59
(o) No Solicitation or Hire..............................................60
(p) Employee Information.................................................60
(q) Cooperation of Parties...............................................60

12. TAX MATTERS.............................................................61
(a) Cooperation..........................................................61
(b) Filing Responsibility................................................61
(c) Refunds..............................................................62
(d) Tax-Sharing Agreements...............................................62

13. ASSIGNMENT..............................................................62

14. NO THIRD-PARTY BENEFICIARIES............................................62

15. TERMINATION.............................................................63

16. SURVIVAL OF REPRESENTATIONS.............................................64

17. EXPENSES................................................................64

18. AMENDMENTS..............................................................64

-iii-

19. NOTICES.................................................................64

20. INTERPRETATION..........................................................66

21. COUNTERPARTS............................................................66

22. ENTIRE AGREEMENT........................................................66

23. BROKERAGE FEES..........................................................67

24. BULK TRANSFER LAWS......................................................67

25. SEVERABILITY............................................................67

26. GOVERNING LAW...........................................................67

27. SPECIFIC PERFORMANCE....................................................67

28. DISCLOSURE SCHEDULE.....................................................67

29. KNOWLEDGE...............................................................68

30. WAIVER..................................................................68

-iv-

EXHIBIT A - Owned Real Estate
EXHIBIT B - Leased Real Estate
EXHIBIT C - Intellectual Property
EXHIBIT D - Customer Information
EXHIBIT E - Acquired Subsidiaries
EXHIBIT F - Computer Software
EXHIBIT G - Excluded Contracts
EXHIBIT H - Excluded Real Estate
EXHIBIT I - Excluded Intellectual Property
EXHIBIT J - Excluded Personal Property
EXHIBIT K - Form of Bill of Sale, Assignment and Assumption Agreement
EXHIBIT L - Form of Assignment and Assumption Agreement (Real Estate)
EXHIBIT M - Unaudited Transaction Balance Sheet
EXHIBIT N - Financial Statements
EXHIBIT O - Intentionally Deleted
EXHIBIT P - Form of Mervyn's Product License
EXHIBIT Q - Form of Frango License
EXHIBIT R - Form of Transition Services Agreement
EXHIBIT S - Form of Grantback Software License

-v-

INDEX OF DEFINED TERMS

TERM REFERENCE


Account...................................................Section 1(b)(i)
Account Information.......................................Section 1(b)(ii)
Acquired Subsidiaries.....................................Section 1(a)(xv)
Acquired Subsidiaries' Shares.............................Section 6(c)(i)
Additional Account Information............................Section 1(b)(x)
Affiliate.................................................Section 20(c)
Allocation................................................Section 4(e)
Assets....................................................Section 1(a)
Assumed Liabilities.......................................Section 3(a)
Audit adjustments.........................................Section 4(b)(ii)(B)
Books and Records.........................................Section 1(a)(xiv)
Business..................................................Recitals
business day..............................................Section 20(d)
Buyer.....................................................Preamble
Buyer's Flex Plans........................................Section 11(i)(i)
Buyer's Plans.............................................Section 11(b)
Cardholder................................................Section 1(b)(iii)
Cardholder Agreement......................................Section 1(b)(iv)
Charged-Off Account.......................................Section 1(b)(xii)
Charge-Off Practices......................................Section 1(b)(xi)
Closing...................................................Section 4(a)
Closing Date..............................................Section 4(a)
COBRA.....................................................Section 11(g)
Code......................................................Section 6(e)
Collective Bargaining Agreement...........................Section 6(r)(i)
Company...................................................Preamble
Confidentiality Agreement.................................Section 9(a)
Contracts.................................................Section 1(a)(ix)
Covered Persons...........................................Section 11(b)(i)
Credit Card...............................................Section 1(b)(v)
Customer Information......................................Section 1(a)(xiii)
Cut-Off Date..............................................Section 4(a)
Cut-Off Date Employees....................................Section 11(a)
Dayton Development........................................Preamble
Disclosure Schedule.......................................Section 6
DOJ.......................................................Section 10(f)
Effective Time............................................Section 4(a)
Eighth Street.............................................Preamble

-vi-

Employees.................................................Section 11(a)
Environmental Claim.......................................Section 6(q)(i)(A)
Environmental Laws........................................Section 6(q)(i)(B)
Environmental Permits.....................................Section 6(q)(i)(C)
Environmental Reports.....................................Section 6(q)(i)(D)

 

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