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Title: |
Asset Purchase Agreement |
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Entities: |
Chicago Title Insurance Co.; Citicorp North America, Inc.; Deutsche Bank Securities Inc.; Deutsche Bank Trust Company Americas; Fleming Companies, Inc.; J.P. Morgan Securities Inc.; JPMorgan Chase Bank; Lehman Commercial Paper Inc.; Salomon Smith Barney Inc.; Smith Barney Inc.; Wachovia Bank, NA; Kirkland & Ellis; Simpson Thacher & Bartlett; Skadden, Arps, Slate, Meagher & Flom LLP; C&S Wholesale Grocers, Inc.; Fleming Companies Inc. |
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Date: |
2003 |
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Size: |
Preview shows 26KB of 306KB total |
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Price: |
$56 |
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ID: |
#125873 |
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================================================================================
ASSET PURCHASE AGREEMENT
DATED AS OF JULY 7, 2003
AMONG
C&S ACQUISITION LLC,
AS PURCHASER,
C&S WHOLESALE GROCERS, INC.,
AS PARENT,
FLEMING COMPANIES, INC.
AND
THE OTHER ENTITIES IDENTIFIED HEREIN,
AS SELLERS
================================================================================
{PAGE}
TABLE OF CONTENTS
{Table}
{S} {C}
ARTICLE I DEFINITIONS AND RULES OF CONSTRUCTION...................................................................1
1.1 Definitions.....................................................................................1
1.2 Rules of Construction..........................................................................15
ARTICLE II PURCHASE AND SALE; ASSUMPTION OF CERTAIN LIABILITIES..................................................16
2.1 Purchase and Sale of Assets....................................................................16
2.2 Excluded Assets................................................................................17
2.3 Assumption of Liabilities......................................................................19
2.4 Excluded Liabilities...........................................................................20
2.5 Option Rights; Exclusion of Certain Acquired Assets............................................21
2.6 Designation Rights; Assignment and Transfer of Acquired Assets.................................23
2.7 Collection of Receivables and Notes............................................................25
2.8 Deemed Consents and Cures......................................................................27
2.9 Cure Costs.....................................................................................27
2.10 Required Consents..............................................................................27
2.11 Security Interest and Guarantee Allocation.....................................................28
ARTICLE III PURCHASE PRICE AND PAYMENT...........................................................................28
3.1 Consideration..................................................................................28
3.2 Computation of the Inventory Amount............................................................29
3.3 Computation of the Royalty Amount..............................................................31
3.4 Prorations Relating to Certain Prepaid Expenses; Other Prepaid Expenses and Deposits...........34
3.5 Allocation of Cash Payments....................................................................35
3.6 Further Assurances.............................................................................35
3.7 Allocation of Certain Sales Proceeds...........................................................36
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLERS.............................................................37
4.1 Organization, Standing and Power...............................................................37
4.2 Authority; Binding Agreement...................................................................37
4.3 [INTENTIONALLY DELETED.].......................................................................38
4.4 No Breach or Conflict..........................................................................38
4.5 Title to Assets; Liens.........................................................................38
4.6 Real Property..................................................................................39
4.7 [INTENTIONALLY DELETED.].......................................................................40
4.8 Assets Necessary to the Business...............................................................40
4.9 Books and Records..............................................................................40
4.10 Claims, Litigation and Disputes................................................................40
4.11 Acquired Contracts.............................................................................40
4.12 Financial Information..........................................................................41
4.13 Compliance With Laws; Permits and Licenses.....................................................41
4.14 Taxes..........................................................................................42
4.15 Compromise of Notes............................................................................42
4.16 Employees and Related Matters..................................................................43
{/Table}
i
{PAGE}
{Table}
{S} {C}
4.17 Environmental Matters..........................................................................43
4.18 [INTENTIONALLY DELETED.].......................................................................44
4.19 Intellectual Property..........................................................................44
4.20 Debt Liens.....................................................................................45
4.21 Brokerage Fees.................................................................................45
4.22 Disclaimer.....................................................................................45
ARTICLE V REPRESENTATIONS AND WARRANTIES OF PURCHASER AND PARENT.................................................45
5.1 Organization...................................................................................45
5.2 Authority; Binding Agreement...................................................................45
5.3 No Breach or Conflict..........................................................................46
5.4 Third-Party Consents...........................................................................46
5.5 Financing......................................................................................46
5.6 Brokers or Finders.............................................................................47
5.7 Purchaser's Investigation......................................................................47
ARTICLE VI COVENANTS OF SELLERS..................................................................................47
6.1 Access and Right of Inspection.................................................................47
6.2 Conduct of the Business Pending the Initial Closing............................................48
6.3 Commercially Reasonable Efforts................................................................49
6.4 Bankruptcy Actions.............................................................................49
6.5 WARN Act.......................................................................................52
6.6 Further Assurances.............................................................................52
6.7 Inventory......................................................................................53
6.8 Removal of Material Equipment..................................................................53
6.9 Landlord Waivers...............................................................................53
6.10 Confidentiality................................................................................54
6.11 Estoppel Certificates..........................................................................54
6.12 Updated Financial Information..................................................................54
6.13 [INTENTIONALLY DELETED.].......................................................................54
6.14 Board Appeal...................................................................................54
6.15 Material Acquired Contracts....................................................................55
ARTICLE VII COVENANTS OF PURCHASER...............................................................................55
7.1 Bonds, Letters of Credit, Etc..................................................................55
7.2 Required Permit and License Applications.......................................................55
7.3 Intellectual Property..........................................................................55
7.4 Further Assurances.............................................................................55
7.5 Access.........................................................................................55
7.6 Financing......................................................................................56
7.7 Leases of Operating PSCs.......................................................................56
ARTICLE VIII CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER....................................................56
8.1 Warranties True as of Both Present Date and Initial Closing Date; Covenants....................56
8.2 Sale Order.....................................................................................57
{/Table}
ii
{PAGE}
{Table}
{S} {C}
8.3 HSR Act and Other Approvals....................................................................57
8.4 Litigation.....................................................................................57
8.5 Sellers' Deliveries............................................................................58
8.6 Statutes; Orders...............................................................................58
8.7 Title Commitments..............................................................................58
8.8 Survey.........................................................................................58
8.9 Debt Liens.....................................................................................58
8.10 Sales Material Adverse Effect..................................................................58
8.11 Transfer of All Assets.........................................................................58
ARTICLE IX CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLERS........................................................59
9.1 Warranties True as of Both Present Date and Initial Closing Date; Covenants....................59
9.2 HSR Act and Other Approvals....................................................................59
9.3 Bankruptcy Condition...........................................................................59
9.4 Payment........................................................................................59
9.5 Assumption and Assignment......................................................................60
9.6 Litigation.....................................................................................60
9.7 Purchaser's Deliveries.........................................................................60
9.8 Statutes; Orders...............................................................................60
ARTICLE X CLOSING................................................................................................60
10.1 Initial Closing................................................................................60
10.2 Deliveries by Sellers..........................................................................60
10.3 Deliveries by Purchaser........................................................................61
ARTICLE XI TERMINATION; TERMINATION PAYMENT......................................................................61
11.1 Termination....................................................................................61
11.2 Termination Payments...........................................................................63
11.3 Effect of Termination..........................................................................64
11.4 Deposit........................................................................................64
11.5 Other Proposals................................................................................64
ARTICLE XII ADDITIONAL COVENANTS.................................................................................64
12.1 Employees......................................................................................64
12.2 Benefit Plans..................................................................................66
12.3 Intellectual Property..........................................................................66
12.4 Infringement...................................................................................68
12.5 Filing of Tax Returns..........................................................................68
12.6 Access to Books and Records for Taxes..........................................................68
12.7 Transaction Taxes..............................................................................68
12.8 Tax Prorations for Periodic Taxes..............................................................69
12.9 Tax Refunds....................................................................................70
12.10 Tax Disclosure.................................................................................70
12.11 Ownership of Acquired Assets for Tax Purposes..................................................70
12.12 Hart-Scott-Rodino..............................................................................71
12.13 Compliance with Antitrust Laws and Government Requests.........................................71
{/Table}
iii
{PAGE}
{Table}
{S} {C}
12.14 Certain Ancillary Documents....................................................................71
ARTICLE XIII INDEMNIFICATION.....................................................................................71
13.1 Survival of Representations, Warranties, Covenants and Agreements..............................71
13.2 Indemnification................................................................................72
13.3 Limitations on Liability.......................................................................73
13.4 Defense of Claims..............................................................................74
13.5 Indemnity Escrow...............................................................................76
13.6 Indemnification Procedures.....................................................................76
ARTICLE XIV MISCELLANEOUS........................................................................................77
14.1 Fees and Expenses, Transfer Taxes..............................................................77
14.2 Liquidated Damages.............................................................................77
14.3 Amendment......................................................................................77
14.4 Notices........................................................................................77
14.5 Waivers........................................................................................79
14.6 Counterparts and Execution.....................................................................79
14.7 Headings.......................................................................................79
14.8 APPLICABLE LAW AND JURISDICTION; DISPUTES AND ARBITRATION......................................79
14.9 Binding Nature; Assignment.....................................................................80
14.10 No Third Party Beneficiaries...................................................................80
14.11 Parent Guarantee...............................................................................80
14.12 Construction...................................................................................81
14.13 Public Announcements...........................................................................81
14.14 Entire Understanding...........................................................................81
14.15 Bulk Sales Laws................................................................................81
14.16 Severability...................................................................................81
14.17 Election of Remedies...........................................................................82
{/Table}
iv
{PAGE}
EXHIBITS
Exhibit A Bidding Procedures Order
SCHEDULES
1.1(a) Operating PSCs
1.1(b) Non-Operating PSCs
1.1(c) Discontinued PSCs
2.1(g) Owned Real Property
2.1(n) Identified Customer Notes and Agreements
2.2 Excluded Assets
2.2(l)(i) Convenience and Retail Business Debtors
2.2(l)(ii) Certain Convenience and Retail Business
Distribution Centers
2.2(m) Excluded Records
2.2(s) Other Excluded Assets
2.3(e) Certain Other Liabilities
3.2 Inventory Discounts
3.2(d) Certain Inventory Information and Procedures
3.5 Allocation of Purchase Price
4.4 Material Consents
4.5(b)(i) Leases
4.5(b)(ii) Liens
4.6 Capital Expenditures Under Leases
4.8 Necessary Assets
4.10 Claims, Litigation and Disputes
4.11(a) Termination of Acquired Contacts
4.11(b) Acquired Contracts
4.11(d) Defaults
4.13 Compliance with Laws
4.13(b) Required Permits
4.14 Taxes
4.16(a) Seller Benefit Plans
4.16(b) Employees
4.16(c) Employee Issues
4.16(e) Acceleration of Benefits
4.17 Environmental Matters
4.19(a) Company Owned Intellectual Property
4.19(b) IP Agreements
4.20 Debt Liens
4.22 Sellers' Knowledge
5.3 No Breach or Conflict
6.2 Conduct of the Business
6.2(p) Certain Raises and Bonuses
7.1 Bonds, Letters of Credit, Etc.
8.11 Transfer of Assets
v
{PAGE}
ASSET PURCHASE AGREEMENT
THIS ASSET PURCHASE AGREEMENT is dated July 7, 2003, among C&S
Acquisition LLC, a Delaware limited liability company ("Purchaser"), Fleming
Companies, Inc., an Oklahoma corporation ("Fleming"), Fleming Transportation
Service, Inc., an Oklahoma corporation, Piggly Wiggly Company, an Oklahoma
corporation, RFS Marketing Services, Inc., an Oklahoma corporation, Fleming
International Ltd., an Oklahoma corporation, Fleming Foods of Texas L.P., an
Oklahoma limited partnership, Fleming Foods Management Co., L.L.C., an Oklahoma
limited liability company, and Fleming Foreign Sales Corporation, a Barbados
corporation (each, a "Seller" and collectively, "Sellers"), each a debtor and
debtor in possession under Chapter 11 Case No. 03-10945 (MFW) (jointly
administered) pending in the United States Bankruptcy Court for the District of
Delaware and, with respect to Article V and Sections 14.8 and 14.11 only, C&S
Wholesale Grocers, Inc., a Vermont corporation ("Parent").
WHEREAS, Sellers are engaged in the wholesale grocery distribution
business;
WHEREAS, Sellers and certain of their Subsidiaries, as debtors in
possession pursuant to voluntary petitions, filed on April 1, 2003 for relief
pursuant to chapter 11 of title 11 of the United States Code (the "Bankruptcy
Code"), pending in the United States Bankruptcy Court for the District of
Delaware as Case Nos.
03-10944 through 03-10966 and 03-10970 through 03-10973;
WHEREAS, Sellers have been engaged in an active effort to market the
Business and, pursuant to this effort, Fleming has entered into a Supply
Agreement with Parent as well as a Letter of Intent (the "Letter of Intent")
with Parent, each dated June 27, 2003; and
WHEREAS, Sellers and Purchaser have negotiated in good faith and at
arm's-length for the purchase and sale of certain assets of Sellers, including
certain assets of Seller's wholesale grocery distribution business, the
assumption of certain liabilities associated therewith, and for certain bid
protections in connection therewith;
NOW THEREFORE, in consideration of the mutual covenants, agreements and
warranties herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
ARTICLE I
DEFINITIONS AND RULES OF CONSTRUCTION
1.1 Definitions. Unless otherwise defined herein, capitalized terms
used herein shall have the meanings set forth below:
"AAA" shall have the meaning set forth in Section 13.6 hereof.
"Acquired Assets" shall have the meaning set forth in Section 2.1
hereof.
"Acquired Contracts" means the Leases, Subleases and Owned Real
Property Leases and other agreements with Third Parties, including without
limitation agreements with Third Parties related to the Business or the other
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