Stock and Asset Purchase Agreement股票及资产购买合同

-119-StockandAssetPurchaseAgreement股票及资产购买合同核心提示：betweenAAAandBBBCORPORATIONDatedasof_________,_________,_________(M/D/Y)TABLEOFCONTENTSARTICLEISALEANDTRANSFEROFTRANSFERREDSUBSIDIARYSTOCKANDASSETS1.1SaleandTransferofTransferredSubsidiaryStock1.2SaleofAssets1.3DesbetweenAAAandBBBCORPORATIONDatedasof_________,_________,_________(M/D/Y)TABLEOFCONTENTSARTICLEISALEANDTRANSFEROFTRANSFERREDSUBSIDIARYSTOCKANDASSETS1.1SaleandTransferofTransferredSubsidiaryStock1.2SaleofAssets1.3DesignatedPurchasers1.4TransferoftheTransferredSubsidiaryStockandthePurchasedAssetsARTICLEIIPURCHASEPRICEANDADJUSTMENTS2.1PurchasePrice2.2PaymentofPurchasePrice2.3CurrencyConversion2.4SettlementofPurchasePrice2.5AllocationofPurchasePriceARTICLEIIIREPRESENTATIONSANDWARRANTIESOFAAA3.1CorporateExistence3.2CorporateAuthority3.3Capitalization3.4GovernmentalApprovalsandConsents3.5FinancialStatements3.6AbsenceofCertainChanges3.7Contracts;AffiliateTransactions3.8Litigation3.9Insurance3.10IntellectualPropertyRights3.11TaxMatters3.12EmployeeBenefits3.13LaborMatters3.14EnvironmentalMatters3.15TransferredAssetsandtheBusiness;DissolvedandDormantSubsidiaries3.16UndisclosedLiabilities3.17Receivables3.18Inventories3.19Finders;BrokersARTICLEIVREPRESENTATIONSOFPURCHASER4.1CorporateExistence4.2CorporateAuthority4.3GovernmentalApprovalsandConsents4.4Finders;BrokersARTICLEVAGREEMENTSOFPURCHASERANDAAA5.1OperationoftheBusiness5.2InvestigationofBusiness5.3BestEfforts;NoInconsistentAction5.4IntercompanyTransactions5.5Non-SolicitationofEmployees;Confidentiality5.6TaxMatters5.7Reserved5.8WorkingCapitalFacility5.9TransitionServicesAgreement5.10TransferTaxes5.11WorkingCapitalSurplus5.12CertainCorporateMatters5.13FutureInvestmentsintheJeansBusinessorVerticalRetailProgram5.14FurtherObligationsofPurchaserandAAAARTICLEVICONDITIONSTOCLOSING6.1ConditionsPrecedenttoObligationsofPurchaserandAAA6.2ConditionsPrecedenttoObligationofAAA6.3ConditionsPrecedenttoObligationofPurchaser6.4ExceptiontotheConditionsPrecedenttoObligationofPurchaserARTICLEVIICLOSING7.1ClosingDate7.2PurchaserObligations7.3AAAObligations7.4TerminationofCertainObligationsonClosingARTICLEVIIIINDEMNIFICATION8.1Indemnification8.2CertainLimitations8.3ProceduresforThird-PartyClaims8.4TaxIndemnification8.5CertainClaimsProceduresARTICLEIXTERMINATION9.1TerminationEvents9.2EffectofTerminationARTICLEXMISCELLANEOUSAGREEMENTSOFTHEPARTIES10.1Notices10.2Severability10.3FurtherAssurances;FurtherCooperation10.4Counterparts10.5Expenses10.6Non-Assignability10.7Amendment;Waiver10.8ThirdParties;HoldersofQualifyingShares10.9GoverningLaw10.10ConsenttoJurisdiction;WaiverofJuryTrial10.11EntireAgreement10.12SectionHeadings;TableofContents10.13SpecificPerformanceEXHIBITSAnnexADefinitionsEXHIBITAEntitySellersEXHIBITBLowerTierSubsidiariesEXHIBITCAssetSellersEXHIBITDCertainPurchasedAssetsEXHIBITELegalOpinionofPurchaser’sCounselEXHIBITFLegalOpinionofAAA’sCounselSCHEDULESSchedule2.1(a)_________(YEAR)BalanceSheetasAdjustedSchedule2.1(b)ModeloftheHypotheticalClosingDateBalanceSheetasAdjustedSchedule2.1(c)DescriptionofRequiredAdjustmentstoFinancialStatementsforPurchasePriceCalculationSchedule2.1(d)IllustrationofthePurchasePriceComputationSchedule2.5AllocationofPurchasePriceSchedule3.2CorporateAuthoritySchedule3.3(a)Capitalization/QualifyingSharesSchedule3.4GovernmentalApprovalsandConsentsSchedule3.5FinancialStatementsSchedule3.6AbsenceofCertainChangesSchedule3.7(a)(1)Contracts/CommitmentswithNon-Affiliates;AddendumA:WarehouseAgreements;AddendumB:CopyEquipmentLeasingandMaintenanceAgreementsSchedule3.7(a)(2)BankGuarantees/Deposits/LettersofIntentSchedule3.7(b)(1)Contracts/CommitmentswithAffiliatesSchedule3.7(b)(2)(a)GGGForeignExchangeContractsUSDSchedule3.7(b)(2)(b)GGGForeignExchangeContractsGBPSchedule3.7(b)(2)(c)KKKCompany(Europe)LtdForeignExchangeContractsUSDSchedule3.7(c)(1)RealPropertyLeasesSchedule3.7(c)(2)RetailStoreLocationsSchedule3.8LitigationSchedule3.10(a)IntellectualPropertyRightsSchedule3.10(b)IntellectualPropertyLicensesSchedule3.11TaxMattersSchedule3.12EmployeeBenefitsSchedule3.13LaborMattersSchedule3.14EnvironmentalMattersSchedule4.3GovernmentalApprovalsandConsentsSchedule5.5(a)Non-SolicitationofCertainEmployeesSTOCKANDASSETPURCHASEAGREEMENTThisStockandAssetPurchaseAgreement,datedasof_________,_________,_________(M/D/Y)(hereinafter,theAgreement),betweenAAA,acorporationorganizedunderthelawsof_________(country)(AAA),andBBBCorporation,a_________(state)corporation(Purchaser).WITNESSETH:WHEREAS,certainofAAA’sSubsidiaries(theLicensees)togetherconductabusinessforthemanufactureandwholesalemarketinganddistributionofcertainapparelandrelatedproductsinEurope,NorthAfricaandtheMiddleEastpursuanttolicensesfromPurchaserandPurchaser’ssubsidiary,TheKKK/LaurenCompany,L.P.(theBusiness);WHEREAS,PurchaserdesirestopurchasefromAAAandAAA’sSubsidiarieslistedunderEntitySelleronExhibitA(collectivelywithAAA,theEntitySellers)andAAAdesirestosellandcausethoseAAA’sSubsidiariestoselltoPurchaseralloftheequityownership(whetherintheformofsharesorotherwise,theTransferredSubsidiaryStock)ofthoseofAAA’sSubsidiarieslistedunderCompanyBeingSoldonExhibitA;WHEREAS,someoftheLicensees,listedunderLowerTierSubsidiariesonExhibitB,areSubsidiariesofAAA’sSubsidiarieslistedunderSubsidiaryonExhibitB(togetherwithAAA’sSubsidiarieslistedunderCompanyBeingSoldonExhibitA,theTransferredSubsidiaries);WHEREAS,PurchaserdesirestopurchasefromAAAandAAAdesirestoselltoPurchasercertainoftheassets(thePurchasedAssets)oftheLicenseeslistedonExhibitC(theAssetSellers);WHEREAS,capitalizedtermsusedandnotdefinedinthebodyofthisAgreementshallhavethemeaningsetforthinAnnexAhereto;andNOW,THEREFORE,inconsiderationofthepremisesandthemutualpromisescontainedherein,thepartiesherebyagreeasfollows:ARTICLEISALEANDTRANSFEROFTRANSFERREDSUBSIDIARYSTOCKANDASSETS1.1SaleandTransferofTransferredSubsidiaryStock.OntheClosingDate,AAAshallorshallcausetheEntitySellersandanyholdersofQualifyingSharestosell,transferanddelivertoPurchaser,andPurchasershallpurchaseandacquire,alloftheTransferredSubsidiaryStockownedbytheEntitySellersandanyOtherShareholders.1.2SaleofAssets.OntheClosingDate,AAAshallorshallcausetheAssetSellerstosell,assign,transfer,conveyanddelivertoPurchaser,andPurchasershallpurchaseandacquire,alloftheAssetSellers’right,titleandinterestinthePurchasedAssets.PurchaserortherespectiveDesignatedAssetPurchasershallnotassume,andtheAssetSellersshallremainfullyresponsiblefor,anyliabilitiesorobligationsoftheAssetSellers(otherthanobligationsoftheAssetSellerssetforthinthePurchasedLicenses),including,butnotlimitedtothe_________,_________,_________(M/D/Y)promissorynoteofLouisDreyfusFashionsCorp.,payabletoL.D.FashionsHoldingsCheprincipalamountof$_________(thePromissoryNote)(suchliabilitiesandobligationshereinaftercollectively,RetainedLiabilities).1.3DesignatedPurchasers.BynoticetoAAAgivennotlaterthan10BusinessDayspriortotheClosingDate,PurchasermaydesignatepersonsotherthanPurchaser(a)towhichanyoftherespectiveEntitySellersshalltransferanddeliverthoseofthesharesoftheTransferredSubsidiaryStockownedbyit(collectively,theDesignatedSharePurchasers)and(b)towhichanyoftheAssetSellersshalltransferanddeliverthoseoftheassetsownedbyittobetransferredinaccordancewiththetermshereof(collectively,theDesignatedAssetPurchasersandtogetherwithDesignatedSharePurchasers,DesignatedPurchasers)andsuchtransfersoftheTransferredSubsidiaryStockandsuchPurchasedAssetsshallbemadeattheClosingassodesignated.1.4TransferoftheTransferredSubsidiaryStockandthePurchasedAssets.TheTransferredSubsidiaryStockandthePurchasedAssetsshallbetransferredbysuchassignments,deeds,billsofsale,notarialdeeds,stockcertificates,stockpowersandotherinstrumentsoftransfer,eachexecuted,asrequiredbytheEntitySellers,theAssetSellers,PurchaserandeachDesignatedPurchaser,ineachcase,asappropriateandasrequiredunderthelawapplicablethereto,totransfertoPurchaserortheapplicableDesignatedPurchaser,asthecasemaybe,alloftheownership,freeofLiens,intheTransferredSubsidiaryStockandthePurchasedAssets,ineachcaseinsuchformasisreasonablyacceptabletoPurchaser(theTransferDocuments).ARTICLEIIPURCHASEPRICEANDADJUSTMENTS2.1PurchasePrice.TheaggregatepurchasepricefortheTransferredSubsidiaryStockandthePurchasedAssetsshallbeanamount(thePurchasePrice)equalto(A)theBasePurchasePrice,whichisthesumof(i)US$_________forthatportionoftheBusinessotherthantheJeansBusinessand(ii)(PoundSterling)9millionfortheJeansBusiness(theJeansInvestment)minus(B)thePurchasePriceAdjustmentAmount,calculatedinamannerconsistentwiththeillustrationunderCaption5onSchedule2.1(d)andwhichisthesumofthefollowingthreeamounts:(i)FundedDebtreflectedonthebalancesheetcontainedintheClosingDateFinancialStatements,calculatedinamannerconsistentwiththeillustrationunderCaption2onSchedule2.1(d);(ii)theWorkingCapitalShortfall,ifany,whichistheamountbywhichtheCurrentAssetsarelessthanthesumof(1)100%ofalldeclaredbutunpaiddividendsshownasaliabilityontheClosingDateFinancialStatements(collectively,theDividendsLiability)and(2)110%ofallCurrentLiabilitiesotherthantheDividendsLiability,determinedbaseduponinformationreflectedintheClosingDateFinancialStatementsandcalculatedinamannerconsistentwiththeillustrationunderCaption3onSchedule2.1(d);and(iii)theexcess,ifany,of(a)theNetWorthDecrease,whichistheexcess,ifany,of(1)US$_________,whichisthe_________(YEAR)NetWorthoftheBusinessasshownunderCaption4onSchedule2.1(d)over(2)theClosingDateNetWorthoftheBusiness,asthatClosingDateNetWorthoftheBusinessisdeterminedbaseduponinformationreflectedintheClosingDateFinancialStatementsandcalculatedinamannerconsistentwiththeillustrationunderCaption4onSchedule2.1(d),over(b)theWorkingCapitalShortfall,ifany.2.2PaymentofPurchasePrice.OntheClosingDate,PurchasershallpaytoAAAonaccountofthePurchasePriceUS$175.5millionand(PoundSterling)8.1million,whichis90%oftheamountoftheBasePurchasePrice.SuchamountshallbepayableinUnitedStatesdollarsinimmediatelyavailablefederalfundstosuchbankaccountoraccountsasaredesignatedbyAAAnotlessthanthreeBusinessDayspriortotheClosing.2.3CurrencyConversion.ForpurposesofcalculatingthePurchasePriceAdjustmentAmount,allcalculationsshallbemadeinU.S.dollars,andshallbebasedonthedollaramountsreflectedinthe_________(YEAR)FinancialStatementsandtheClosingDateFinancialStatementsunderthecolumnheadedU.S.Dollars;andtheamountoftheJeansInvestmentshallbeconvertedtoU.S.dollarsattheexchangerateannouncedbytheFederalReserveBankof_________(PLACENAME)andprintedonReutersPage1FEDontheBusinessDayimmediatelyprecedingtheClosingDate.2.4SettlementofPurchasePrice.(a)Purchasershallprepare(withthefullparticipationofAAAanditsadvisors)anddelivertoAAA,nolaterthan90daysaftertheClosingDate,theClosingDateFinancialStatementsandastatementsettingforthPurchaser’scalculationofthePurchasePriceAdjustmentAmount(thePost-ClosingStatement),andinconnectionwiththepreparationoftheClosingDateFinancialStatementsandthePost-ClosingStatement,Purchaserwill,orwillcausetheTransferredSubsidiaries(orthesuccessors,ifany,tosuchentities)to,provideAAAanditsauthorizedagentsandrepresentatives,includingitsindependentaccountants,withreasonableaccess,atreasonablehours,toalloftheproperties,booksandrecordsoftheTransferredSubsidiariesrelatingtothepreparationoftheClosingDateFinancialStatementsandthePost-ClosingStatement.TheBusinessshallbeartheexpenseofthepreparationoftheClosingDateFinancialStatements.TheClosingDateFinancialStatementsandthePurchasePriceAdjustmentAmount(collectively,thePost-ClosingCalculations)shallbebindingonthePartiesifAAAhasnotdeliveredtoPurchaserawrittennoticeofitsdisagreementwithsuchPost-ClosingCalculationsincludinganyofthecalculationscontainedthereinorinanyofthefinancialstatementsandothermaterialusedbyPurchasertopreparesuchPost-ClosingCalculations(aPost-ClosingNoticeofDisagreement)within30daysafterreceiptbyPurchaserofsuchPost-ClosingCalculations(theObjectionPeriod).AnysuchPost-ClosingNoticeofDisagreementshallspecifyinreasonabledetailthenatureofanydisagreementsoasserted.Within30daysafterthedeliveryofaPost-ClosingNoticeofDisagreementallmattersasspecifiedinsuchPost-ClosingNoticeofDisagreementthathavenotbeenresolvedbytheParties(thePost-ClosingDisputedMatters)shallbesubmittedtoandreviewedbyanarbitrator(thePost-ClosingArbitrator),whichshallbethe_________(PLACENAME)officeofanyoneoftheso-calledBigFiveaccountingfirmsselectedbytheParties.IfwithinfiveBusinessDaysfollowingtheexpirationofsuch30-dayperiodthePartieshavefailedtoagreeupontheselectionofthePost-ClosingArbitratororanyPost-ClosingArbitratorselectedbythemhasnotagreedtoperformtheservicescalledforhereunder,thePost-ClosingArbitratorshallthereuponbeselectedbytheAmericanArbitrationAssociation,withpreferencebeinggiveninmakingsuchselectiontoanyoneoftheBigFiveaccountingfirmswillingtoperformsuchservices.ThePost-ClosingArbitratorshallconsideronlythePost-ClosingDisputedMatters.ThePost-ClosingArbitratorshallactpromptlytoresolveallPost-ClosingDisputedMattersanditsdecisionwithrespecttoallPost-ClosingDisputedMattersshallbefinalandbindingupontheParties.UponresolutionbythePost-ClosingArbitratorofallPost-ClosingDisputedMatters,thePost-ClosingArbitratorshallcausetobepreparedandshalldelivertothePartiesadefinitivepost-closingcalculationstatement(theDefinitivePost-ClosingStatement),whichshall(i)reflectthedeterminationofthePost-ClosingArbitratorwithrespecttoanyPost-ClosingDisputedMattersincludingitsdeterminationofthePurchasePriceand(ii)befinalandbindingupontheParties.EachPartyshallpayitsownlegalandconsultantfeesincurredinconnectionwiththearbitrationandthecostsofthearbitrationshallbechargedtotheBusiness.(b)WithinfiveBusinessDaysaftertheearliestof(A)theexpirationoftheObjectionPeriodwithoutobjection,(B)thedatethePost-ClosingDisputedMattersareresolvedpursuanttoSection2.4(a)and(C)thedateonwhichAAAnotifiesPurchaserthatAAAagreeswiththePost-ClosingCalculation,either:(i)PurchasershallpayincashbywiretransferinUnitedStatesdollarsinimmediatelyavailableFederalfundstoAAAtotheaccountdesignatedunderSection2.2theamount,ifany,bywhichthePurchasePriceexceeds90%oftheBasePurchasePrice;or(ii)AAAshallpayincashbywiretransferinUnitedStatesdollarsinimmediatelyavailableFederalfundstoPurchasertothebankaccountoraccountsdesignatedbyPurchaser,notlessthanthreeBusinessDayspriortothedatepaymentisduetheamount,ifany,bywhichthePurchasePriceislessthan90%oftheBasePurchasePrice.PurchasershallpaytoAAA(inthecaseofclause(i)ofthisSection2.4(b))orAAAshallpaytoPurchaser(inthecaseofclause(ii)ofthisSection2.4(b))interestonanypaymentpursuanttothisSection2.4(b)fortheperiodfromtheClosingDatetothedateofpaymentattheLondonInter-BankOfferRate(LIBOR)forsixmonthdepositsinU.S.dollarsasquotedonTeleratePage3750ontheClosingDateplus25basispoints.2.5AllocationofPurchasePrice.ThePurchasePriceallocationsamongthePurchasedAssetsandTransferredSubsidiariesissetforthonSchedule2.5.ForthepurposesofallTaxes,PurchaserandAAAagreetoreportthetransactionscontemplatedbythisAgreementinamannerconsistentwiththeallocationsunderthisSection2.5,andthatneitherofthemwilltakeanypositioninconsistentwithsuchallocationsonanyTaxReturn,inanyrefundclaim,inanylitigation,orotherwise,withouttheconsentoftheotherpartyexceptasrequiredbyafinaldeterminationwithinthemeaningofSection1313oftheCodeorsimilarconceptsundernon-U.S.Taxlaw.PurchasershallprepareanallocationscheduleofPurchasePriceamongtheclassesofPurchasedAssets,alongwiththefirstdraftofInternalRevenueServiceForm8594,andanysimilarformrequiredbyanyforeignjurisdictionwhichisnecessitatedbythetransactionscontemplatedbythisAgreementwithrespecttothePurchasedAssets,whichshallbesenttoAAAwithin60daysfollowingagreementbetweenthePartiesastothebalancesheetcontainedintheClosingDateFinancialStatements.Within30daysafterthereceiptofsuchallocationscheduleandForm8594,AAAshallproposeanychangestosuchallocationscheduleandForm8594orshallindicateitsconcurrencetherewith,whichconcurrencewillnotbeunreasonablywithheld.ARTICLEIIIREPRESENTATIONSANDWARRANTIESOFAAAAAArepresentsandwarrantstoPurchaserasfollows:3.1CorporateExistence.EachoftheSellersandtheLicensees(a)isdulyorganizedandvalidlyexistingand,whereapplicable,ingoodstandingunderthelawsofthejurisdictionofitsorganization,(b)hastherequisitecorporateorsimilarpowerandauthoritytoown,leaseandoperateitspropertiesandassets,includinginthecaseoftheAssetSellersthepropertiesandassetsincludedinthePurchasedAssets,andtocarryontheBusinessasthesameisnowbeingconducted,and(c)isdulyauthorized,qualifiedorlicensedtodobusinessandisingoodstandingineveryjurisdictionwherein,byreasonofthenatureoftheBusiness,thesameisrequired,except,inthecaseofclause(c),wherethefailureoftheforegoingtobetrueandcorrectwouldnot,individuallyorintheaggregate,haveamaterialadverseeffectontheresultsofoperations,financialcondition,assets,liabilitiesorbusinessoftheBusiness,takenasawhole(aBusinessMaterialAdverseEffect).AAAhaspreviouslyprovidedPurchasertrueandcompletecopies,asineffectonthedateofthisAgreement,ofthecertificateofincorporation,bylawsorsimilarorganizationaldocuments(eachofwhichareinfullforceandeffect)ofeachLicensee.3.2CorporateAuthority.ThisAgreementandtheTransferDocumentstobeexecuted,deliveredand/orfiledinconnectionherewith(collectivelywiththisAgreementandanyagreementsenteredintopursuanttoSection5.9,theTransactionDocuments)bytheSellersandtheLicenseesandtheconsummationofthetransactionscontemplatedherebyandtherebyinvolvingsuchpersonshavebeendulyauthorizedbytheSellersandtheLicenseesbyallrequisitecorporate,shareholderorotheractionpriortotheClosing.AAAhasfullandcompleteright,powerandauthoritytoexecuteanddeliverthisAgreementandtoperformitsobligationshereunder,andeachoftheSellersandLicenseeshasorwillhaveat,orpriortotheClosing,fullpowerandauthoritytoexecute,deliverand/orfiletheTransactionDocumentstowhichitisapartyandtoperformitsobligationshereunderorthereunder.ThisAgreementhasbeendulyexecutedanddeliveredbyAAA,andtheotherTransactionDocumentswillbedulyexecuted(assumingdueauthorizationbythePurchaserortheapplicableDesignatedPurchaser),deliveredand/orfiledbyeachoftheSellersandLicenseespartytheretoandthisAgreementconstitutes,andeachoftheotherTransactionDocumentswhensoexecuted(assumingdueauthorizationbythePurchaserortheapplicableDesignatedPurchaser),deliveredand/orfiledwillconstitute,avalidandlegallybindingobligationofAAAand/ortheapplicableSellerorLicenseepartythereto,enforceableagainstitinaccordancewithitstermsexceptasenforceabilitymaybeaffectedbybankruptcy,insolvency,fraudulentconveyance,reorganization,moratoriumandothersimilarlawsrelatingtooraffectingcreditors’rightsgenerallyandgeneralequitableprinciples(whetherconsideredinaproceedinginequityoratlaw).Except(a)forrequiredfilingsundertheHSRAct,EuropeanUnionmergercontrolandanyotherapplicablelawsorregulationsrelatingtoantitrustorcompetition(collectively,AntitrustRegulations)and(b)assetforthinSchedule3.2,theexecution,deliveryand/orfilingofthisAgreementandtheotherTransactionDocumentsbyAAAandeachoftheSellersorLicenseespartytheretoandtheconsummationbyAAAandeachoftheSellersorLicenseesofthetransactionscontemplatedherebyandtherebywillnot(i)violateorconflictwithanyprovisionoftherespectivecertificateofincorporationorby-lawsorsimilarorganizationaldocumentsofanyoftheSellersoranyLicensee,(ii)resultinanybreachorconstituteanydefault(withorwithoutnoticeorlapseoftime,orboth)under,orrequireanyconsentorgiverisetoarightoftermination,cancellation,accelerationoramendmentofanyobligationoralossofabenefitunder,orresultinthecreationofanyrestriction,pledge,lien,claim,charge,securityinterest,optionorotherencumbranceofanynaturewhatsoever(collectively,Liens)under,anyContractoranylicense(otherthanunderanylicensegrantedbyPurchaseroritssubsidiary,TheKKK/LaurenCompany,L.P.orbyoneoftheLicenseespursuanttoalicensegrantedbyPurchaseroritssubsidiary,TheKKK/LaurenCompany,L.P.)orpermittowhichAAA,anyoftheSellers,oranyLicenseeoranyoftheirrespectivepropertiesorassetsinrespectoftheBusinessissubjectorisaparty,or(iii)violate,conflictwithorresultinanybreachunderanyprovisionofanyjudgment,order,decree,statute,law,ordinance,ruleorregulationofanyGovernmentalAuthorityapplicabletoAAA,anyoftheSellers,oranyLicenseeoranyoftheirrespectivepropertiesorassets,except,inthecaseofclauses(ii)and(iii),totheextentthatanysuchbreach,default,termination,cancellation,acceleration,amendment,loss,Lien,violation,conflict,breachorlosswouldnothaveorwouldnotbereasonablylikelytohave,individuallyorintheaggregate,aBusinessMaterialAdverseEffect,oramaterialadverseeffectontheabilityofeachoftheSellers,takenasawhole,toconsummatethetransactionscontemplatedhereby(aSellerMaterialAdverseEffect).3.3Capitalization.(a)AllofthesharesoftheTransferredSubsidiaryStockandsharesofthecapitalstockoftheotherTransferredSubsidiarieshavebeenvalidlyissuedand,totheextentapplicable,asoftheClosingDatewillhavebeenfullypaidandnonassessableandareownedbyAAAand/oroneormoreoftheSellersorLicenseesfreeandclearofallLiens(exceptthatcertainofthosesharesareownedbyotherPersonsforthepurposeofcompliancewithapplicablelawassetforthonSchedule3.3(a)(suchsharescollectively,theQualifyingShares).TheTransferredSubsidiaryStockrepresentsalltheissuedandoutstandingcapitalstockoftheTransferredSubsidiarieslistedunderCompanyBeingSoldonExhibitA(exceptfortheQualifyingShares).Schedule3.3(a)setsforthasofthedateofthisAgreementandasoftheClosingDate,foreachoftheTransferredSubsidiariestheauthorizedcapitalstock,thenumberofsharesofoutstandingcapitalstockorthenominalamountoftheshares,thenumberofsharesofsuchoutstandingcapitalstockownedbyAAAanditsSubsidiariesandthenameofeachsuchowner,includingtheQualifyingShares.NoneofthesharesofTransferredSubsidiaryStockandsharesofthecapitalstockoftheotherTransferredSubsidiarieswasissuedinviolationofanypreemptiverights.Therearenooutstandingoptions,warrants,callsorotherrightsofanykindrelatingtothesale,transfer,registration,issuanceorvotingofanyTransferredSubsidiaryStockorsharesofthecapitalstockoftheotherTransferredSubsidiariesoranysecuritiesconvertibleintoorexercisableorexchangeableforsharesofTransferredSubsidiaryStockorsharesofthecapitalstockoftheotherTransferredSubsidiariesandalloftheoptionsonEquityInterestsofanyoftheTransferredSubsidiarieshavebeenterminated.UponconsummationofthetransactionscontemplatedbythisAgreement,PurchaserortheapplicableDesignatedPurchaser,assumingitshallhavepurchasedthesharesofTransferredSubsidiaryStockingoodfaithandwithoutnoticeofanyadverseclaim,willownthesharesofTransferredSubsidiaryStockfreeandclearofallLiens.LouisDreyfusInvestmentCo.LimitedandLouisDreyfusCo.Limitedarenotinsolventandwillnotbeinsolventatthetimeoforasaresult(whetherdirectlyorindirectly)of(i)performingtheirobligationsunderthisAgreementor(ii)enteringintoanyotheragreementorarrangement,whichcausesalloranyofthetransactionscontemplatedbythisAgreementtobesetasideorsubjecttoaLien.(b)NoneoftheTransferredSubsidiarieshasissuedanypreferredequitysecuritiestoanyoftheSellers.3.4GovernmentalApprovalsandConsents.NoneofAAA,theSellersoranyLicenseeissubjecttoanyorder,judgmentordecreewhichwouldpreventtheconsummationofthePurchase.Noclaim,legalaction,suit,arbitration,governmentalinvestigat