Exhibit 10.1
ASSET PURCHASE AGREEMENT
BY AND AMONG
AM RETAIL GROUP, INC.
AND
WILSONS THE LEATHER EXPERTS, INC.
ROSEDALE WILSONS, INC.
WILSONS LEATHER OF DELAWARE INC.
RIVER HILLS WILSONS, INC.
WILSONS LEATHER OF FLORIDA INC.
WILSONS LEATHER DIRECT INC.
WILSONS LEATHER OF GEORGIA INC.
WILSONS LEATHER OF ALABAMA INC.
WILSONS LEATHER OF INDIANA INC.
WILSONS LEATHER OF CONNECTICUT INC.
WILSONS LEATHER OF IOWA INC.
WILSONS LEATHER OF LOUISIANA INC.
WILSONS LEATHER OF NEW JERSEY INC.
WILSONS LEATHER OF MARYLAND INC.
WILSONS LEATHER OF NEW YORK INC.
WILSONS LEATHER OF MASSACHUSETTS INC.
WILSONS LEATHER OF NORTH CAROLINA INC.
WILSONS LEATHER OF MICHIGAN INC.
WILSONS LEATHER OF OHIO INC.
WILSONS LEATHER OF MISSISSIPPI INC.
WILSONS LEATHER OF PENNSYLVANIA INC.
WILSONS LEATHER OF MISSOURI INC.
WILSONS LEATHER OF SOUTH CAROLINA INC.
WILSONS LEATHER OF TENNESSEE INC.
WILSONS LEATHER OF WISCONSIN INC.
WILSONS LEATHER OF TEXAS INC.
WILSONS LEATHER OF VIRGINIA INC.
WILSONS LEATHER HOLDINGS INC.
BERMANS THE LEATHER EXPERTS INC.
TABLE OF CONTENTS
ARTICLE 1 PURCHASE OF ACQUIRED ASSETS AND RELATED TERMS
1
1.1
Certain Definitions Relating to Transactions
1
1.2
Sale and Purchase of Acquired Assets
6
1.3
Unassignable Contracts and Related Matters
6
ARTICLE 2 PURCHASE PRICE AND ADJUSTMENT
7
2.1
Purchase Price
7
2.2
Calculation of Estimated Purchase Price for Closing
7
2.3
Payment of Estimated Purchase Price at Closing and Related Payments
7
2.4
Purchase Price Adjustment
8
ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF EACH SELLER
11
3.1
Organization and Good Standing
11
3.2
Authority and Authorization
11
3.3
Organizational Documents
11
3.4
Ownership of Sellers
12
3.5
Conflicts and Consents
12
3.6
Financial Information and Undisclosed Liabilities
12
3.7
Taxes
13
3.8
Litigation and Orders
14
3.9
Compliance with Law
14
3.10
Contracts
14
3.11
Certain Assets
17
3.12
Certain Business Relationships
17
3.13
Certain Payments
17
3.14
Real Property
18
3.15
Environmental Matters
18
3.16
Intellectual Property
19
3.17
Treatment of Acquired Assets and Source Code
20
3.18
Privacy and Data Security Matters
21
3.19
Insurance
22
3.20
Absence of Certain Events
22
3.21
Employee Benefits
23
3.22
Employees and Labor Relations
24
3.23
Suppliers
25
3.24
Brokers
25
3.25
Projections
25
3.26
Disclosure
26
3.27
Certain General Exceptions
26
ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF BUYER
26
4.1
Organization and Good Standing
26
4.2
Authority and Authorization
26
4.3
Conflicts and Consents
26
4.4
Litigation and Orders
27
4.5
Availability of Funds
27
4.6
Forward-Looking Statements
27
i
4.7
Brokers
27
4.8
Capitalization
27
ARTICLE 5 CERTAIN COVENANTS
27
5.1
No Liability for Unobtained Consents and Governmental Permits
27
5.2
Access to Information
28
5.3
Further Assurances
29
5.4
Confidentiality and Publicity
29
5.5
Employee Matters
30
5.6
Mail, Receivables and Other Items to be Given to Proper Party
34
5.7
Transfer Taxes
34
5.8
Covenant Not to Compete and Related Covenants
34
5.9
Intercompany Accounts
35
5.10
Bulk Sales Laws
35
5.11
License Back and Name Changes
35
5.12
Transition Services
36
5.13
Insurance and Insurance Proceeds
37
5.14
Substitution of Seller Collateral