Agency Agreement (2003)Full Document 

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AGENCY AGREEMENT

 

by and between

 

a joint venture composed of

 

TRANS WORLD ENTERTAINMENT CORPORATION,

 

HILCO MERCHANT RESOURCES, LLC,

 

HILCO REAL ESTATE, LLC

 

GORDON BROTHERS RETAIL PARTNERS, LLC

 

and

 

THE OZER GROUP LLC

 

As Agent

 

and

 

WHEREHOUSE ENTERTAINMENT, INC.,

 

As Merchant

 

Dated as of September 19, 2003

 



 

TABLE OF CONTENTS

 

Section 1.

Defined Terms

 

Section 2.

Appointment of Agent

 

Section 3.

Assets to be Sold to TWEC or by Agent

 

3.1

Assets

 

3.2

Excluded Assets

 

3.3

Assumed Liabilities

 

Section 4.

Consideration to Merchant

 

4.1

Payments to Merchant

 

4.2

Time of Payment

 

4.3

Additional Merchandise

 

4.4

Adjustments to Guaranteed Amount

 

Section 5.

Sale and Assignment of Properties or Assets

 

5.1

Leased Properties

 

5.2

Covenants of Merchant Regarding Sale of Properties

 

5.3

Assets

 

5.4

Transfers to TWEC

 

5.5

Other Closing Date Transfers

 

5.6

Executory Contracts

 

Section 6.

Deliveries

 

Section 7.

Expenses of the Sale

 

7.1

Expenses

 

7.2

Central Office Expense

 

7.3

Other Expenses of the Sale

 

Section 8.

Expenses with Respect to Properties

 

8.1

Marketing Period Costs - Leases.

 

8.2

Limitation on Marketing Period Costs

 

8.3

Occupancy Expense Letter of Credit

 

Section 9.

Inventory Taking and Valuation.

 

9.1

Inventory Taking

 

9.2

Merchandise.

 

9.3

Valuation

 

 

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Section 10.

Store Closing Sale Term; Marketing Period for Properties.

 

10.1

Term

 

10.2

Vacating the Stores

 

10.3

Marketing Period.

 

10.4

Gross Rings

 

Section 11.

Sale Proceeds.

 

11.1

Sale Proceeds

 

11.2

Deposit of Proceeds

 

Section 12.

Conduct of the Store Closing Sale.

 

12.1

Rights of Agent

 

12.2

Sales at TWEC Stores

 

12.3

Terms of Sales to Customers

 

12.4

Sales Taxes

 

12.5

Supplies

 

12.6

No Returns of Merchandise

 

Section 13.

Sale Reconciliation

 

Section 14.

Employee Matters.

 

14.1

Merchant’s Employees at Stores other than TWEC Stores

 

14.2

Termination of Retained Employees

 

14.3

Payroll Matters

 

14.4

Employee Retention Bonuses

 

14.5

Merchant’s Employees at TWEC Stores

 

Section 15.

Representations, Warranties, Covenants and Agreements.

 

15.1

Representations, Warranties, Covenants and Agreements of Merchant.

 

15.2

Representations, Warranties and Covenants of Agent

 

Section 16.

Covenants of the Merchant

 

16.1

Operations Prior to Closing Date

 

16.2

Operation of Business From and After Closing Date

 

Section 17.

Conditions Precedent to Effectiveness

 

17.1

Conditions Precedent to Obligations of Both Merchant and Agent

 

17.2

Additional Conditions Precedent to Obligations of Agent

 

Section 18.

Insurance; Risk of Loss.

 

18.1

Merchant’s Liability Insurance

 

 

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18.2

Merchant’s Property Casualty Insurance

 

18.3

Agent’s Insurance

 

18.4

Worker’s Compensation Insurance

 

18.5

Risk of Loss

 

18.6

Force Majeure

 

18.7

Non-Assumption of Liability

 

Section 19.

Indemnification.

 

19.1

Merchant Indemnification

 

19.2

Agent Indemnification

 

Section 20.

Events of Default and Remedies.

 

20.1

Events of Default

 

20.2

Remedies

 

Section 21.

Miscellaneous.

 

21.1

Notices

 

21.2

Governing Law; Consent to Jurisdiction

 

21.3

Entire Agreement

 

21.4

Amendments and Waivers

 

21.5

No Waiver

 

21.6

Successors and Assigns

 

21.7

Execution in Counterparts; Facsimile Signatures

 

21.8

Section Headings

 

21.9

Survival

 

21.10

Third Party Beneficiaries

 

21.11

Security Interest

 

21.12

Further Assurances; Power of Attorney

 

21.13

Joint and Several Liability of Partners

 

21.14

Authorized Representative of Partners

 

 

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LIST OF EXHIBITS

 

EXHIBIT 3.1

 

Leases

 

EXHIBIT 5.3(a)

 

TWEC Use Clause

 

EXHIBIT 5.4

 

TWEC Stores

 

EXHIBIT 8.2

 

Occupency Expenses

 

EXHIBIT 9.1

 

Inventory Taking

 

EXHIBIT 14.3

 

Payroll Matters

 

EXHIBIT 15.1(i)

 

Historic Sales

 

EXHIBIT 15.1(j)

 

Inventory Report

 

EXHIBIT 15.1(r)

 

Legal Proceedingst

 

EXHIBIT 16.1.

 

Promotional Calendar

 

EXHIBIT 17.1(a)

 

Order

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