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Title: |
Asset Purchase Agreement |
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Entities: |
Deere & Co.; Florsheim Group Inc.; Weyco Group Inc.; Akin, Gump, Strauss, Hauer & Feld LLP; Quarles & Brady LLP |
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Date: |
2002 |
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Size: |
Preview shows 29KB of 145KB total |
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Price: |
$44 |
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ID: |
#121054 |
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Start of Preview |
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ASSET PURCHASE AGREEMENT
BY AND AMONG
WEYCO GROUP, INC.
FLORSHEIM GROUP INC.
AND
THE OTHER SELLERS IDENTIFIED HEREIN
DATED AS OF MARCH 3, 2002
{PAGE}
TABLE OF CONTENTS
PAGE
----
ARTICLE I DEFINITIONS.....................................................1
1.1 Accounts........................................................2
1.2 Accrued Expenses................................................2
1.3 Affiliate.......................................................2
1.4 Agreement.......................................................2
1.5 Agreement Sections..............................................2
1.6 Assumed Liabilities.............................................3
1.7 Bill of Sale....................................................3
1.8 Business Day....................................................4
1.9 Buyer...........................................................4
1.10 Buyer Closing Certificate.......................................4
1.11 Closing.........................................................4
1.12 Closing Date....................................................4
1.13 Closing Inventory Value.........................................4
1.14 Code............................................................4
1.15 Cure Costs......................................................4
1.16 Disclosure Schedule.............................................4
1.17 Escrow Agent....................................................4
1.18 Escrow Agreement................................................4
1.19 ERISA...........................................................4
1.20 Excluded Store Inventory........................................5
1.21 Excluded Stores.................................................5
1.22 Existing Insurance Policies.....................................5
1.23 Existing Permits................................................5
1.24 Financial Information...........................................5
1.25 Financial Statements............................................5
1.26 Florsheim.......................................................5
1.27 GAAP............................................................5
1.28 Golf Inventory..................................................5
1.29 Information Assets..............................................5
1.30 Inventory.......................................................5
1.31 Inventory Purchase Agreement....................................6
1.32 Inventory Value.................................................6
1.33 John Deere Inventory............................................6
1.34 Knowledge of Sellers............................................6
1.35 Law.............................................................6
1.36 Lien............................................................6
1.37 Material Adverse Change.........................................6
1.38 Miscellaneous Assets............................................7
1.39 Person..........................................................7
1.40 Prepaid Expenses................................................7
i
{PAGE}
TABLE OF CONTENTS
(continued)
PAGE
----
1.41 Purchase Price..................................................7
1.42 Purchased Assets................................................7
1.43 Purchased Contracts.............................................8
1.44 Purchased Equipment.............................................8
1.45 Purchased Leases................................................8
1.46 Purchased Stores................................................8
1.47 Records.........................................................8
1.48 Retained Assets.................................................8
1.49 Retained Liabilities............................................9
1.50 SAP and Other Computer Assets...................................9
1.51 Seller or Sellers...............................................9
1.52 Sellers Closing Certificate.....................................9
1.53 Store Assets....................................................9
1.54 Trademarks......................................................9
1.55 Transition Services Agreement...................................9
ARTICLE II PURCHASE AND SALE...............................................9
2.1 Purchase and Sale...............................................9
2.2 Final Inventory Value; Payment at Closing......................10
ARTICLE III OTHER AGREEMENTS...............................................11
3.1 Access.........................................................11
3.2 Disclosure Schedule............................................11
3.3 Duties Concerning Consents; Conditions.........................12
3.4 Deliveries of Information; Consultation........................12
3.5 Acquisition Proposals..........................................12
3.6 Public Announcements...........................................13
3.7 Retained Liabilities...........................................13
3.8 Referrals and Deliveries.......................................13
3.9 Allocation of Purchase Price...................................14
3.10 Prorations.....................................................14
3.11 Transaction Taxes..............................................14
3.12 Risk of Loss...................................................14
3.13 Employee Matters...............................................15
3.14 Access to Records..............................................15
3.15 Effective Time of Closing......................................16
3.16 Pacific Rim Assets; Other International Assets.................16
3.17 Florsheim 401(k) Plan Assumption...............................17
3.18 Purchased Equipment............................................18
ii
{PAGE}
TABLE OF CONTENTS
(continued)
PAGE
----
3.19 Bankruptcy Matters.............................................18
3.20 Financing Commitments..........................................20
3.21 Purchase Orders................................................20
3.22 Use of Name....................................................20
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE SELLERS..................20
4.1 Organization; Business.........................................20
4.2 Authorization; Enforceability..................................21
4.3 No Violation or Conflict.......................................21
4.4 Assets.........................................................21
4.5 Litigation.....................................................22
4.6 Financial Information..........................................22
4.7 Absence of Certain Changes.....................................22
4.8 Store Assets...................................................23
4.9 Purchased Contracts............................................23
4.10 Performance of Purchased Contracts.............................23
4.11 Intentionally Omitted..........................................24
4.12 No Violation of Law............................................24
4.13 Brokers........................................................24
4.14 Taxes..........................................................24
4.15 Purchased Stores...............................................24
4.16 Consents; Approvals............................................24
4.17 No Pending Acquisitions........................................24
4.18 Labor Matters..................................................25
4.19 Permits........................................................25
4.20 Inventory......................................................25
4.21 Information Assets.............................................25
4.22 Environmental Protection.......................................26
4.23 Accounts.......................................................27
4.24 Customers and Suppliers........................................27
4.25 Insurance......................................................27
ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE BUYER....................27
5.1 Organization; Business.........................................27
5.2 Authorization; Enforceability..................................28
5.3 No Violation or Conflict.......................................28
5.4 Brokers........................................................28
iii
{PAGE}
TABLE OF CONTENTS
(continued)
PAGE
----
5.5 Consents; Approvals............................................28
5.6 Litigation.....................................................28
5.7 Financing Commitments..........................................28
5.8 Due Diligence..................................................28
5.9 No Further Representations.....................................29
ARTICLE VI CONDUCT OF BUSINESS PENDING THE CLOSING........................29
6.1 Carry on in Ordinary Course....................................29
6.2 Use of Purchased Assets........................................29
6.3 No Default.....................................................29
6.4 Existing Insurance Policies....................................30
6.5 Employment Matters.............................................30
6.6 Contracts and Commitments......................................30
6.7 Preservation of Relationships..................................30
6.8 Compliance with Laws...........................................30
ARTICLE VII CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE BUYER...........30
7.1 Compliance with Agreement......................................30
7.2 Proceedings and Instruments Satisfactory.......................30
7.3 No Litigation..................................................30
7.4 Representations and Warranties of the Sellers..................31
7.5 No Material Adverse Change, Etc................................31
7.6 Bankruptcy Matters.............................................31
7.7 Deliveries at Closing..........................................31
7.8 Other Deliveries...............................................31
7.9 HSR............................................................31
7.10 Other Closings.................................................31
ARTICLE VIII CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE SELLERS.........32
8.1 Compliance with Agreement......................................32
8.2 Proceedings and Instruments Satisfactory.......................32
8.3 No Litigation..................................................32
8.4 Representations and Warranties of the Buyer....................32
8.5 Deliveries at Closing..........................................32
8.6 Other Documents................................................32
8.7 Delivery of Purchase Price.....................................33
iv
{PAGE}
TABLE OF CONTENTS
(continued)
PAGE
----
8.8 Letters of Credit..............................................33
8.9 Bankruptcy Matters.............................................33
8.10 Other Closings.................................................33
8.11 Letters of Credit..............................................33
ARTICLE IX TERMINATION; MISCELLANEOUS.....................................33
9.1 Termination....................................................33
9.2 Rights on Termination..........................................34
9.3 Waiver of Conditions...........................................35
9.4 Survival of Representations and Warranties.....................35
9.5 Entire Agreement; Amendment....................................35
9.6 Expenses.......................................................35
9.7 Governing Law; Venue...........................................35
9.8 Assignment.....................................................36
9.9 Notices........................................................36
9.10 Counterparts; Headings.........................................37
9.11 Interpretation.................................................37
9.12 Severability...................................................37
9.13 No Reliance....................................................37
9.14 Exhibits and Disclosure Schedule...............................37
9.15 Income Tax Position............................................37
9.16 Further Assurances.............................................37
v
{PAGE}
SIGNATURES....................................................................39
EXHIBITS:*
1. List of Miscellaneous Assets
2. Prepaid Expenses
3. Reserves for Accounts
4. List of Purchased Contracts
5. List of Purchased Leases
6. List of Purchased Stores
7. List of Retained Vehicles and Other Assets
8. Other Computer Assets
9. Allocation of Purchase Price
10. Inventory of Agreements
11. Permitted Liens
ANNEXES:
A. Form of Bill of Sale
B. Form of Buyer Closing Certificate
C. Form of Escrow Agreement
D. Form of Inventory Purchase Agreement
E. Form of Sellers Closing Certificate
F. Form of Transition Services Agreement
G. Intentionally Omitted
H. Intentionally Omitted
*These items are not material to an investment decision and, therefore, are not
included in this Exhibit 2.1 to Form 10-K. Copies will be furnished to the
Commission upon request.
vi
{PAGE}
ASSET PURCHASE AGREEMENT [U.S.]
THIS ASSET PURCHASE AGREEMENT is made as of this 3rd day of March,
2002 between and among WEYCO GROUP, INC., a Wisconsin corporation, FLORSHEIM
GROUP INC., a Delaware corporation, and those subsidiaries of Florsheim Group
Inc. that are identified as a Seller on the signature pages hereto.
RECITALS
WHEREAS, following the date hereof, each of the Sellers intends to
file voluntary petitions under Chapter 11 of the Bankruptcy Code (collectively,
the "Bankruptcy Case") before the United States Bankruptcy Court for the
Northern District of Illinois (the "Bankruptcy Court"); and
WHEREAS, the Buyer (or its permitted assigns as provided in Section
9.8 hereof) desires to purchase all of the Sellers' right, title and interest in
and to the Purchased Assets and assume the Assumed Liabilities from the Sellers,
and the Sellers desire to sell, convey, assign and transfer to the Buyer (or its
permitted assigns as provided in Section 9.8 hereof) all of the Sellers' right,
title and interest in and to the Purchased Assets together with the Assumed
Liabilities, all in the manner and subject to the terms and conditions set forth
in this Agreement and in accordance with Sections 105, 363 and 365 and other
applicable sections of the Bankruptcy Code; and
WHEREAS, subsequent to the execution of this Agreement, Florsheim,
certain subsidiaries of Florsheim and the Buyer shall enter into the
International Asset Purchase Agreement (as hereinafter defined); and
WHEREAS, if Florsheim and Florsheim Pacific (each as hereinafter
defined) exercise the Pacific Rim Option (as hereinafter defined) subsequent to
the date of this Agreement, subject to certain terms and conditions of this
Agreement and the terms and conditions of the Pacific Rim Asset Purchase
Agreement (as hereinafter defined), the Buyer shall purchase and assume, as
applicable, from Florsheim Pacific the Pacific Rim Assets and Liabilities (as
hereinafter defined);
NOW, THEREFORE, in consideration of the Recitals and of the mutual
covenants, conditions and agreements set forth in this Agreement and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, it is hereby agreed that:
ARTICLE I
DEFINITIONS
When used in this Agreement, the following terms shall have the
meanings specified:
1
{PAGE}
1.1 Accounts. "Accounts" shall mean all accounts receivable, notes
and associated rights owned by any Seller, the categories of which are set forth
on the Disclosure Schedule, but excluding such accounts receivable, notes and
rights specifically related to Florsheim's license with John Deere & Company and
any intercompany accounts, accounts receivable, notes and associated rights
reflecting amounts owed to a Seller by another Seller or a an Affiliate of any
other Seller.
1.2 Accrued Expenses. "Accrued Expenses" shall mean the liabilities
and obligations of any Seller under or with respect to the Purchased Contracts,
Purchased Leases, Existing Permits and any other assets included in the
Purchased Assets arising or accruing after the filing of the Bankruptcy Case and
prior to the Closing Date and which Buyer agrees to assume and which are listed
on an update to the Disclosure Schedule delivered to Buyer at least two (2)
Business Days prior to Closing but only to the extent that: (i) such liabilities
and obligations do not represent any indebtedness for borrowed money or any
obligations of a Seller to any Affiliate of a Seller; (ii) such liabilities and
obligations have been incurred in the ordinary course of business; and (iii) a
credit is made against the Purchase Price for such liabilities and obligations
pursuant to Section 1.41.
1.3 Affiliate. "Affiliate" of any Person shall mean any Person
controlling such Person, controlled by such Person or under common control with
such Person, by ownership of equity interests, contract or otherwise; provided,
however, that "Affiliate" shall not include any shareholder of Florsheim or
Weyco Group, Inc. or any Person controlling any such shareholder.
1.4 Agreement. "Agreement" shall mean this Asset Purchase Agreement,
together with the Exhibits attached hereto and the Disclosure Schedule, as the
same may be amended from time to time in accordance with the terms hereof.
1.5 Agreement Sections. The following terms shall have the meanings
specified in the Sections of this Agreement listed in the following table.
{TABLE}
{CAPTION}
TERM SECTION
---- -------
{S} {C}
Acquisition 3.5(a)
Acquisition Proposal 3.5(a)
Bankruptcy Case 3.19
Bankruptcy Court 3.19
Bankruptcy Motion 3.19(b)
CERCLA 4.22(e)
CERCLIS 4.22(e)
Disclosure Schedule Change 3.2(b)
Effective Time of Closing 3.15
Environmental Laws 4.22(e)
Environmental Liabilities 4.22(e)
European Sellers 3.16(c)
European Assets and Liabilities 3.16(c)
Final Inventory Value 2.2(b)
{/TABLE}
2
{PAGE}
{TABLE}
{CAPTION}
TERM SECTION
---- -------
{S} {C}
Florsheim 401(k) Plan 3.17(a)
Hazardous Substance 4.22(e)
HSR Act 7.9
Intellectual Property 4.22
International Asset Purchase Agreement 3.16(c)
Major Customers 4.24
Major Suppliers 4.24
Pacific Rim Asset Purchase Agreement 3.16(a)
Pacific Rim Assets and Liabilities 3.16(a)
Permitted Liens 4.4
Procedures Order 3.19(c)
Qualifying Buyer 3.16(b)
Sale Order 3.19(d)
Store Employees 4.18
Transferred Employee 3.13(a)
{/TABLE}
1.6 Assumed Liabilities. "Assumed Liabilities" shall mean the
following obligations and no others:
(a) the Accrued Expenses;
(b) all liabilities and obligations of Sellers under or with
respect to the Purchased Contracts, the Purchased Leases, the Existing Permits
and any other assets included in the Purchased Assets to the extent that such
liabilities and obligations arise or accrue on or subsequent to the Closing Date
and relate to the period on or subsequent to the Closing Date;
(c) all Cure Costs associated with the Purchased Contracts and
the Purchased Leases; and
(d) the following employee related obligations with respect to
any Transferred Employees: (i) with respect to Transferred Employees at
Purchased Stores, and any other individuals who are Transferred Employees, who
are not covered by any collective bargaining agreement, accrued vacation
benefits; (ii) with respect to Transferred Employees at Purchased Stores who are
covered by a collective bargaining agreement, the accrued but unpaid obligations
under that collective bargaining agreement (provided that any accrued but unpaid
compensation and employment taxes shall be included as Accrued Expenses); and
(iii) with respect to all Transferred Employees, if any, subject to employment
agreements as of the date hereof, any liabilities and obligations under such
employment agreements.
1.7 Bill of Sale. "Bill of Sale" shall mean a separate Bill of Sale
and Assumption of Liabilities in substantially the form of ANNEX A attached to
this Agreement to be executed by Buyer and each Seller.
3
{PAGE}
1.8 Business Day. "Business Day" shall mean a day other than
Saturday, Sunday or any day on which banks in New York City, Chicago, Illinois
and Milwaukee, Wisconsin are authorized or obligated to close.
1.9 Buyer. "Buyer" shall mean Weyco Group, Inc., a Wisconsin
corporation, or any assignee or assignees permitted by Section 9.8 hereof.
1.10 Buyer Closing Certificate. "Buyer Closing Certificate" shall mean
the Closing Certificate of the Buyer in substantially the form of ANNEX B
attached to this Agreement.
1.11 Closing. "Closing" shall mean the conference to be held on the
Closing Date at the offices of Quarles & Brady, LLP, 411 East Wisconsin Avenue,
Milwaukee, Wisconsin 53202, or such other time and place as the parties may
mutually agree to in writing, at which the transactions contemplated by this
Agreement shall be consummated.
1.12 Closing Date. "Closing Date" shall mean such date as the parties
may mutually agree to in writing, which date shall be within five (5) Business
Days following the satisfaction or waiver of each of the conditions set forth in
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