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EXHIBIT 10(P)
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COMPREHENSIVE SETTLEMENT AGREEMENT
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THIS COMPREHENSIVE SETTLEMENT AGREEMENT (this "Agreement") is entered
into as of ____________, 1997 by and among the Parties (as defined below). Any
capitalized terms not defined herein have the meanings assigned to them in the
Amended Joint Plan of Reorganization of The Xxxxx-Xxxxxxx Stores Corp. and Its
Subsidiaries, dated November 7, 1997 (the "Plan").
THE PARTIES
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The "Parties" to this Agreement are as follows:
1. The Debtors: The Xxxxx-Xxxxxxx Stores Corp., an Ohio
corporation ("Xxxxx-Xxxxxxx"); The El-Bee Chargit Corp., an Ohio corporation
("Chargit"); The Bee-Gee Shoe Corp., an Ohio corporation ("Bee-Gee"); Margo's
LaMode, Inc., a Texas corporation ("Margo's"); XxXxxx Wholesale Corp., an Ohio
corporation ("XxXxxx"); E-B Community Urban Redevelopment Corp., an Ohio
corporation ("E-B"); and EBA, Inc., an Ohio corporation ("EBA"). Xxxxx-Xxxxxxx,
Chargit, Bee-Gee, Margo's, XxXxxx, X-X, and EBA are referred to in this
Agreement collectively as the "Debtors."
2. The ESOP and the ESOP Committee: The Xxxxx-Xxxxxxx Stores
Corp. Profit Sharing and Stock Ownership Plan (the "ESOP"), as represented by
The Elder Xxxxxxx Stores Corp. Profit Sharing and Stock Ownership Plan
Administration Committee (the "ESOP Committee").
3. The Shareholders of Xxxxx-Xxxxxxx:
x. Xxxxxxx-Xxxx Holdings, Inc., an Ohio
corporation ("Xxxxxxx-Xxxx"), the holder of
all Old Common Stock of Xxxxx-Xxxxxxx;
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b. Indirect Shareholders of Xxxxx-Xxxxxxx
(1) as shareholders of Xxxxxxx-Xxxx and
former directors of Xxxxx-Xxxxxxx,
Xxxxxxx X. Xxxxxx ("BBW"), Xxxxxxx
X. Xxxxxx ("WSW"), and Xxxxxxx X.
Xxxx ("LBP"), collectively referred
to as the "Equity Directors";
(2) family members of and subsidiary or
affiliated entities wholly or
partially owned or controlled by the
Equity Directors (collectively with
the Equity Directors, the "Xxxxxxx
Family Entities").
RECITALS
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THE CHAPTER 11 CASES
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A. The Debtors filed their respective petitions for relief under
chapter 11 of the Bankruptcy Code, 11 U.S.C. Sections 101-1330 (the "Bankruptcy
Code"), in the United States Bankruptcy Court for the Southern District of Ohio
(the "Bankruptcy Court") on October 17, 1995 (the "Petition Date"). During their
chapter 11 cases, the Debtors operated and managed their respective businesses
as debtors in possession in accordance with sections 1107 and 1108 of the
Bankruptcy Code.
B. The Bankruptcy Court entered an order on __________, 1997 confirming
the Plan under section 1129 of the Bankruptcy Code. It is a condition to the
consummation of the Plan and occurrence of the Effective Date that each of the
Parties execute and deliver this Agreement.
REAL PROPERTY LEASE ISSUES
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C. Twenty of the Debtors' locations are or were governed by leases
under which various Xxxxxxx Family Entities are or were the landlords. Exhibit A
to this Agreement lists these Xxxxxxx
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Family Entities and the corresponding Xxxxx-Xxxxxxx or Bee-Gee locations.
Certain Xxxxxxx Family Entities have asserted claims against the Debtors'
estates for amounts allegedly due under such leases and allegedly arising both
before and after the Petition Date. A schedule of these claims (collectively,
the "Xxxxxxx Family Lease Claims"), including the holders of such claims and the
nature and amount of such claims, is part of Exhibit A.
D. Xxxxx-Xxxxxxx is a tenant under two real property lease agreements
(collectively, the "Xxxx Leases") for retail space located in the Xxxx Plaza
Shopping Center ("Xxxx Plaza") in Chillicothe, Ohio. The first lease, dated
December 30, 1980 (the "1980 Agreement") and amended by agreement dated
September 29, 1992 (the "1992 Agreement"), is between Xxxxx-Xxxxxxx as tenant
and Xxxx Development Co. In 1985, a Xxxxxxx Family Entity, Xxxxxxx-Chillicothe
Limited Partnership ("BCLP") acquired Xxxx Plaza and succeeded to Xxxx
Development Co.'s interest in the 1980 Agreement. The Xxxxxxx Corporation and
BBW each served as both general and limited partners of BCLP. In 1991, another
Xxxxxxx Family Entity, The Abco Land Development Corp. ("Abco"), and The Xxxxxxx
Corporation acquired Xxxx Plaza and became the lessors under the 1980 Agreement.
The 1992 Agreement amended the 1980 Agreement by terminating a then-existing
lease with Bee-Gee for a parcel contiguous with Xxxxx-Xxxxxxx'x store. The
second lease, dated November 8, 1990 (the "1990 Agreement"), was between BCLP as
landlord and Xxxxx-Xxxxxxx as tenant. For purposes of the Xxxx Leases, Abco and
BCLP are referred to collectively as the "Xxxx Lessors."
E. The 1980 Agreement, as amended, contains options to extend the term
of the lease, exercised by Xxxxx-Xxxxxxx giving the lessor written notice of its
intent to renew the lease at least six months before the current lease term
expired. The 1990 Agreement contains substantially similar language. The Xxxx
Leases were set to expire by their terms on January 31, 1996. Because Elder-
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Xxxxxxx gave no written notice to the Xxxx Lessors of its intention to renew the
Xxxx Leases, the Xxxx Lessors have asserted that the Xxxx Leases have expired.
Xxxxx-Xxxxxxx disputes such assertion in light of, among other things,
Xxxxx-Xxxxxxx'x unequivocal oral representations to the Xxxx Lessors of its
intent to renew the Xxxx Leases and the Xxxx Lessors' continued acceptance of
Xxxxx-Xxxxxxx'x rental payments.
MISCELLANEOUS XXXXXXX FAMILY CLAIMS
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F. In addition to the Xxxxxxx Family Lease Claims, certain of the
Xxxxxxx Family Entities assert various claims in respect of contribution or
reimbursement, indemnification, and other miscellaneous matters. Exhibit B lists
these Xxxxxxx Family Entities and the corresponding claims asserted by these
entities (the "Miscellaneous Xxxxxxx Family Claims"). Conversely, Xxxxx-Xxxxxxx
asserts claims against certain of the Xxxxxxx Family Entities in respect of
personal use of company aircraft and credit card charges. Exhibit C lists these
Xxxxxxx Family Entities and the corresponding claims asserted by Xxxxx-Xxxxxxx
against these entities (collectively, the "Xxxxx-Xxxxxxx Claims").
CLAIMS ARISING OUT OF EQUITY DIRECTORS' ACTIONS
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G. During the course of the Reorganization Cases, Xxxxx-Xxxxxxx learned
of previous communications between the Equity Directors and several competitor
retailers and one potential financial investor. The disclosures by the Equity
Directors to these entities included disclosure of confidential, proprietary
information concerning Xxxxx-Xxxxxxx -- made without the knowledge or consent of
Xxxxx-Xxxxxxx management -- in an effort by the Equity Directors to locate a
purchaser of the Debtors' assets and operations. The Debtors believe that such
actions may have constituted a breach of the Equity Directors' fiduciary duties
and violated certain confidentiality agreements between the Equity Directors and
Xxxxx-Xxxxxxx. All potential claims arising from such
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actions, including equitable subordination claims, are referred to collectively
in this Agreement as the "Disclosure Claims."
FAIRBORN DISTRIBUTION CENTER
PURCHASE OPTION/RIGHT OF FIRST REFUSAL
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X. Xxxxx-Xxxxxxx also claims to hold a purchase option and a right of
first refusal (collectively, the "Fairborn Right") with respect to the purchase
of an approximately 18-acre parcel of real property adjacent to Xxxxx-Xxxxxxx'x
Fairborn distribution center. The principal terms of the Fairborn Right are set
forth in Exhibit D.
PREVIOUSLY RESOLVED CLAIMS BETWEEN THE
XXXXXXX FAMILY ENTITIES AND XXXXX-XXXXXXX
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I. In addition to the Xxxxxxx Family Lease Claims, the dispute
regarding renewal of the Xxxx Leases, the Miscellaneous Xxxxxxx Family Claims,
the Xxxxx-Xxxxxxx Claims, and the Disclosure Claims, Xxxxx-Xxxxxxx and certain
of the Xxxxxxx Family Entities faced disputes regarding: (1) entitlement to
approximately $12.0 million of federal tax refunds and interest earned thereon;
(2) the repayment to Xxxxx-Xxxxxxx of more than $600,000 in respect of an
unexercised option to acquire from Centerville Associates III Limited
Partnership the fee simple ownership of the Xxxxx-Xxxxxxx department store in
Centerville, Ohio; and (3) the timeliness of a proof of claim filed by certain
Xxxxxxx Family Entities asserting rejection damage claims arising from Xxxxx-
Xxxxxxx'x rejection of its lease for its former Fairborn furniture store
(collectively, the "Previously Resolved Claims"). The Previously Resolved Claims
have been compromised and settled pursuant to orders of the Bankruptcy Court
entered on [DATE], 1997 and are not affected by this Agreement.
THE ESOP CLAIMS AND APPLICATION
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J. The ESOP holds its participants' interests in the Old Preferred
Stock of Xxxxx-Xxxxxxx. In connection with its interests in the Old Preferred
Stock, the ESOP asserted prepetition
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claims (collectively, the "ESOP Prepetition Claims") of approximately $16
million, as follows: (1) a claim of approximately $14 million against each of
the Debtors based on the Debtors' alleged obligations to provide a "guaranteed
minimum return" on the Old Preferred Stock held by the ESOP and (2) a claim of
approximately $2 million against each of the Debtors based on the Debtors'
alleged obligations to make a so-called "retirement security contribution" for
1995. The Debtors dispute their alleged liability under the ESOP Prepetition
Claims.
K. On June 27, 1996, the ESOP filed an Application for Payment of
Administrative Expenses (the "ESOP Application") in which it sought payment of
expenses related to (1) Xxxxx-Xxxxxxx'x alleged obligation to make a
postpetition retirement security contribution to the ESOP and (2) the fees and
expenses of the ESOP's professional advisors incurred in connection with the
Debtors' chapter 11 cases. In response to an objection by the Institutional
Lenders' Committee, the Bankruptcy Court vacated its own prior order granting
certain relief regarding the ESOP Application, and the parties have since been
unable to reach a resolution of the ESOP Application.
L. Although not formally asserted, the ESOP may also have certain
claims or causes of action against either (1) Xxxxx-Xxxxxxx, (2) the present and
former directors and officers of Xxxxx-Xxxxxxx, or (3) Xxxxxxx-Xxxx, arising
out of the creation of the ESOP or the failure to make retirement security
contributions for 1996 or 1997 (collectively, the "Potential ESOP Claims").
These Potential ESOP Claims are defined as broadly as possible to include all
possible claims, rights, and causes of action, in law or equity, of any nature
and accruing at any time, arising out of or in any way related to the ESOP.
SETTLEMENT AND RELEASE OF POTENTIAL CLAIMS AND DISPUTES AMONG THE PARTIES
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M. Litigation of the factual and legal issues underlying the
various claims and disputes set forth above would prevent an efficient and
feasible reorganization of the Debtors' businesses and
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would inure to the detriment of all Parties, as well as all of the creditors of
the Debtors. Accordingly, to avoid the possibility of costly and lengthy
litigation, with its attendant risks and uncertainties, in connection with
various claims and disputes set forth above, the Parties desire to enter into
this Agreement to settle and release all potential claims and disputes without
admitting liability of any kind and to any extent.
IN CONSIDERATION OF THE FOREGOING, the consideration provided under
this Agreement and under the Plan, each Party's execution and delivery of this
Agreement, and the mutual promises, settlements, releases, and other agreements
set forth below (the receipt, performance, and sufficiency of which are
acknowledged), the Parties agree as follows:
THE AGREEMENT
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Section 1. AFFIRMATIVE OBLIGATIONS, WAIVERS, AND PROVISIONS. All
consideration for the mutual promises, settlements, releases, and other
agreements set forth below are provided in this Section 1 and the Plan. If any
provision in this Agreement directly conflicts with any provision of the Plan or
Disclosure Statement, the applicable provision in this Agreement governs.
Section 1.1. Tax Indemnification Obligations. The Debtors'
membership, before the Effective Date, in a consolidated group of companies of
which Xxxxxxx-Xxxx was the common parent requires a determination of the rights
and obligations of Xxxxxxx-Xxxx and its direct and indirect shareholders on the
one hand, and Reorganized Xxxxx-Xxxxxxx and its surviving subsidiaries on the
other, with respect to certain federal income tax matters, including the filing
of returns, the conducting of audits, and the preservation and orderly
utilization of Reorganized Xxxxx-Xxxxxxx'x tax attributes in accordance with
applicable laws and regulations. The nature and extent of these rights and
obligations are fully set forth in the New Tax Indemnification Agreement (an
Exhibit to the Plan), which is incorporated herein by reference. On the
Effective Date, each of the Reorganized
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Debtors and the Xxxxxxx Family Entities named therein shall execute and deliver
the New Tax Indemnification Agreement. The rights and obligations set forth in
the New Tax Indemnification Agreement provide certain consideration for certain
of the releases set forth below.
Section 1.2. Renewal of the Xxxx Leases. Notwithstanding the
merits of any theory or theories in law or equity regarding Xxxxx-Xxxxxxx'x
alleged failure to exercise the renewal option contained in the Xxxx Leases, the
Xxxx Lessors agree to waive any claims of any kind based on such theory or
theories. Accordingly, this Section 1.2 (the "Xxxx Leases Renewal") effects the
binding renewal by Xxxxx-Xxxxxxx of the Xxxx Leases and the Xxxx Lessors'
consent to such renewal on the terms set forth in Exhibit E as though the
renewal option were duly and timely exercised in accordance with the Xxxx
Leases. Nothing in this Section 1.2 affects the validity of any Xxxxxxx Family
Lease Claims or any amounts with respect to the Xxxx Leases set forth on Exhibit
A hereto.
Section 1.3. Xxxxxxx Family Lease Claims. The Debtors and the
Xxxxxxx Family Entities agree that all Xxxxxxx Family Lease Claims are
disallowed or allowed in the stipulated, agreed amount set forth in Exhibit A in
the column labeled "Resolved Amount." Nothing in this Section 1.3 should be
construed to alter the respective rights of the lessors or lessees under the
leases set forth on Exhibit A, the treatment of such leases under the applicable
provisions of the Plan, or the rights of such lessors to assert (and the lessees
to dispute) claims for administrative rent and other obligations as provided for
in such leases accruing between the Petition Date and the Effective Date, except
as provided in Exhibit A with respect to the allowance or disallowance of any
postpetition amounts.
Section 1.4. Miscellaneous Xxxxxxx Family Claims. The
Debtors and the Xxxxxxx Family Entities agree that all Miscellaneous Xxxxxxx
Family Claims are disallowed, or allowed in the stipulated, agreed amount set
forth in Exhibit B in the column labeled "Resolved Amount."
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Section 1.5. Xxxxx-Xxxxxxx Claims. The Debtors and the Xxxxxxx
Family Entities agree that all Xxxxx-Xxxxxxx Claims are compromised in the
stipulated, agreed amount set forth in Exhibit C in the column labeled "Resolved
Amount." The Debtors and the Xxxxxxx Family Entities acknowledge that the
compromised and stipulated, agreed amounts set forth in the columns labeled
"Resolved Amount" in Exhibits B and C reflect the net amount of the particular
claims after applying appropriate setoffs of corresponding claims asserted
between Xxxxx-Xxxxxxx and certain corresponding Xxxxxxx Family Entities.
Accordingly, the Resolved Amount on either Exhibit B or Exhibit C is in full
satisfaction of both the claim to which it refers and the corresponding claim
between the same parties reflected on the other Exhibit.
Section 1.6. ESOP Prepetition Claims and ESOP Application. On
account of, and in complete satisfaction of, the ESOP Prepetition Claims, the
ESOP Application, and the ESOP's Old Preferred Stock Interests, the ESOP will
receive the consideration set forth in the Plan.
Section 1.7. Acknowledgment of Fairborn Right. Xxxxxxx-Xxxx
acknowledges the existence and enforceability of the Fairborn Right and agrees
that Reorganized Xxxxx-Xxxxxxx may exercise the Fairborn Right on the terms set
forth in Exhibit D.
Section 2. EXCHANGE OF RELEASES AMONG THE PARTIES
Section 2.1. Releases Among the Debtors and the Xxxxxxx Family
Entities. In consideration of (a) the Equity Directors' execution and
performance of the New Tax Indemnification Agreement, (b) the allowance, in
accordance with the Plan, of certain claims as set forth on Exhibits A, B, and
C, (c) the distributions provided under the Plan in respect of Class E-2
Interests of Xxxxxxx-Xxxx, and (d) the settlement of all Xxxxxxx Family Lease
Claims, the Miscellaneous Xxxxxxx Family Claims, and the Xxxxx-Xxxxxxx Claims
set forth in Exhibits A, B, and C, except as may be provided in the Plan or in
this Agreement, each of the Debtors and each of
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the Debtors' respective predecessors, successors, estates, assigns, directors,
officers, managers, employees, professionals, agents and other representatives
(in such capacities), on the one hand, and each of the Xxxxxxx Family Entities
and their respective estates, assigns, predecessors, successors, partners,
directors, officers, employees, professionals, agents, and other representatives
(in such capacities), on the other hand, releases and forever discharges one
another from all claims, remedies, debts, liabilities, obligations, demands,
damages, rights, actions, causes of action, agreements, and claims for
attorneys' fees whether known or unknown, now existing or that may arise in the
future arising from, involving, or relating to the Disclosure Claims, the
Xxxxxxx Family Lease Claims, the Miscellaneous Xxxxxxx Family Claims, the
Xxxxx-Xxxxxxx Claims, the Debtors' chapter 11 cases, or any transaction, act, or
omission related to Xxxxx-Xxxxxxx or the Debtors' chapter 11 cases occurring
before the Effective Date.
Section 2.2. Releases Among the Debtors, the ESOP, and the
ESOP Committee. In consideration of the settlement of the ESOP Prepetition
Claims, the ESOP Application, and the Potential ESOP Claims as set forth above
and in the Plan at Section III.B.2.c., except as may be provided expressly in
the Plan or in this Agreement, each of the Debtors and each of the Debtors'
respective predecessors, successors, estates, assigns, directors, officers,
employees, professionals, agents, and other representatives, and the ESOP, and
each of the members of the ESOP Committee, and their respective estates,
assigns, predecessors, successors, directors, officers, employees,
professionals, agents, and other representatives releases and forever discharges
one another from all claims, remedies, debts, liabilities, obligations, demands,
damages, rights, actions, causes of action, agreements, and claims for
attorneys' fees whether known or unknown, now existing or that may arise in the
future arising from, involving or relating to the ESOP Prepetition Claims, the
ESOP
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Application, the Potential ESOP Claims, the Debtors' chapter 11 cases, or any
transaction, action or omission occurring before the Effective Date.
Section 3. REPRESENTATIONS AND WARRANTIES
Section 3.1. Representations and Warranties of Debtors.
Xxxxx-Xxxxxxx represents and warrants to the other Parties that (a) it is a
corporation duly organized, validly existing, and in good standing under the
laws of the state of Ohio and (b) entry of the order of the Bankruptcy Court
confirming the Plan under section 1129 of the Bankruptcy Code (the "Confirmation
Order") authorizes Xxxxx-Xxxxxxx'x execution and delivery of this Agreement and
authorizes Xxxxx-Xxxxxxx to perform its obligations under this Agreement.
Section 3.2. Representations and Warranties of the ESOP. The
ESOP represents and warrants to the other Parties that (a) it is an employee
stock ownership plan qualified under section 401(a) of the Internal Revenue Code
and as defined in section 4975(e)(7) of the Internal Revenue Code and (b) is
authorized to execute, deliver, and perform its obligations under this
Agreement.
Section 3.3. Representations and Warranties of the ESOP
Committee. The ESOP Committee represents and warrants to the other Parties that
it is authorized to execute, deliver, and perform its obligations under this
Agreement on behalf of the ESOP. The members of the ESOP Committee each
represent and warrant to the other Parties that the ESOP Committee is authorized
to execute, deliver, and perform the ESOP Committee's obligations under this
Agreement.
Section 3.4. Representations and Warranties of Xxxxxxx-Xxxx.
Xxxxxxx-Xxxx represents and warrants to the other Parties that (a) it is a
corporation duly organized, validly existing and in good standing under the laws
of the state of Ohio and (b) is authorized to execute, deliver, and perform its
obligations under this Agreement.
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Section 3.5. Representations and Warranties of the Xxxxxxx
Family Entities. The Xxxxxxx Family Entities, including, the Xxxxxxx
Corporation, the Xxxx Lessors, and all lessors listed on Exhibit A hereto, each
represent and warrant to the other Parties that (a) it is a business entity
(corporation, partnership, limited partnership, or trust) duly organized,
validly existing, and in good standing under the laws of the state of Ohio, or
is a competent individual and (b) is authorized to execute, deliver, and perform
his, her, or its obligations under this Agreement. Each Xxxxxxx Family Entity
further represents and warrants that he, she, or it is authorized to execute
this Agreement, if it does so, on behalf of its respective subsidiaries and
affiliates, predecessors, and successors in interest, partners, officers,
directors, managers, agents, and employees.
Section 3.6. Representations and Warranties of the Equity
Directors. BBW, WSW, and LBP each represents and warrants to the other Parties
that he or she has all requisite power and authority to execute, deliver, and
perform his or her obligations under this Agreement. BBW, WSW, and LBP each
further represents and warrants that he or she is authorized to execute this
Agreement, if he or she does so, on behalf of any Xxxxxxx Family Entity.
Section 4. CONDITIONS PRECEDENT TO THE EFFECTIVENESS OF THIS AGREEMENT.
The effectiveness of this Agreement is expressly conditioned on the Bankruptcy
Court's approval of this Agreement by entry of an order (which may be, but does
not have to be, part of the Confirmation Order) not subject to any stay
authorizing the Debtors to enter into, implement, and consummate this Agreement
in accordance with Bankruptcy Rule 9019.
Section 5.REORGANIZED DEBTORS AS SUCCESSORS IN INTEREST TO THE DEBTORS.
From and after the Effective Date, Reorganized Xxxxx-Xxxxxxx, Reorganized
Chargit, and Reorganized Bee-Gee (as defined in Article I of the Plan), as
successors in interest to the Debtors, will perform all of
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the obligations of each of the Debtors under this Agreement and succeed to the
Debtors rights under this Agreement.
Section 6. MISCELLANEOUS PROVISIONS
Section 6.1. Scope of Agreement. This Agreement does not
affect any rights or obligations under the Plan or any contract, instrument,
release, indenture, or other agreement or document delivered under the Plan.
Section 6.2. Entire Agreement; Modification; Waiver. This
Agreement constitutes the entire agreement among the Parties and, subject to the
provisions of Section 6.1 above, supersedes any prior or contemporaneous
agreements, representations, warranties, and understandings of the Parties,
whether oral, written or implied, as to the subject matter of this Agreement. No
amendment or modification of this Agreement or any of its provisions is binding
unless executed in writing by all Parties affected by such amendment or
modification and agreed to unanimously by the Parties. No waiver is binding
unless executed in writing by the Party making such waiver. No waiver of any of
the provisions of this Agreement constitutes or is to be deemed a waiver of any
other provision, whether or not similar to the provision waived, nor does any
waiver constitute a continuing waiver.
Section 6.3. Assignment. This Agreement is binding on, and
inures to the benefit of, the Parties and their respective predecessors,
successors, estates, heirs, and assigns, including all Reorganized Debtors as
successors in interest to the Debtors.
Section 6.4. Further Documents. Each of the Parties agrees to
execute all contracts, instruments, releases, agreements, or other documents and
to perform all acts necessary or appropriate to implement or further evidence
the provisions of this Agreement.
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Section 6.5. No Representations or Warranties. Except as
expressly set forth in this Agreement, none of the Parties makes, or is deemed
to have made, any representation or warranty, written or oral, express or
implied, to any other Party.
Section 6.6. Severability. If any term or provision of this
Agreement is held by the Bankruptcy Court or any other court or tribunal of
competent jurisdiction to be invalid, void, or unenforceable, the Bankruptcy
Court or such court or tribunal may alter and interpret such term or provision
to make it valid or enforceable to the maximum extent possible, consistent with
the original purpose of the term or provision held to be invalid, void, or
unenforceable, and such term or provision will then be applicable as so altered
or interpreted. Notwithstanding such holding, alteration, or interpretation, the
remainder of this Agreement remains in full force and will in no way be
affected, impaired, or invalidated by such holding, alteration, or
interpretation.
Section 6.7. Consent to Entry of Bankruptcy Court Orders. Each
of the Parties consents to the jurisdiction of the Bankruptcy Court to resolve
any cases, controversies, suits, or disputes arising in connection with the
implementation, interpretation, reformation, modification, remediation of any
defect in, or rescission of this Agreement or any portion of it and
determination or declaration of the rights or obligations of any Party arising
under this Agreement.
Section 6.8. No Admissions. Neither this Agreement or any of
its terms, nor any negotiations, proceedings, or other actions taken or not
taken by any Party in connection with this Agreement constitute or may be deemed
to evidence an admission on the part of any Party of any liability or wrongdoing
or the truth or falsity, merit, or lack of merit of any claim released by this
Agreement or any defense to such claim. If any claim similar to any claim
released by this Agreement arises after this Agreement becomes effective, this
Agreement may not be deemed a waiver or release of such later arising claim or
any evidence as to the legitimacy of such later arising
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claim or the propriety or legitimacy of the transactions, acts, omissions,
proceedings, matters, events, or dealings providing the basis for such later
arising claim.
Section 6.9. Applicable Law. This Agreement is governed in all
respects by the law of the State of Ohio, without giving effect to Ohio's
principles of conflict of laws.
Section 6.10. Notices. All notices, requests, demands, and
other communications in connection with this Agreement must be in writing and be
delivered personally or by facsimile transmission on the first business day
after mailing (if sent by overnight courier service) or on the third business
day after mailing (if mailed by first class mail, postage prepaid, or by
registered or certified mail) addressed as follows:
THE XXXXX-XXXXXXX STORES CORP. Xxxxx X. Xxxxx
0000 Xx-Xxx Xxxx XXXXXXX, XXXXXXXX & XXXXXXX
Xxxxxx, Xxxx 00000 1800 Provident Tower
(000) 000-0000 Xxx Xxxx Xxxxxx Xxxxxx
Attn: General Counsel Xxxxxxxxxx, Xxxx 00000
(000) 000-0000
(Counsel to the ESOP Committee)
Xxxxxxx X. Xxxxx Xxxxx X. Xxxxx
XXXXX, DAY, XXXXXX & XXXXX McDONALD, HOPKINS, XXXXX & XXXXX CO.
North Point LPA
000 Xxxxxxxx Xxxxxx 0000 Xxxx Xxx Xxxxxx
Xxxxxxxxx, Xxxx 00000 000 Xxxxxxxx Xxxxxx, XX
(000) 000-0000 Xxxxxxxxx, Xxxx 00000
(000) 000-0000
(Counsel to the Debtors and (Counsel to the Xxxxxxx Family
Reorganized Debtors) Entities, including Equity Directors
and Xxxx Lessors)
Section 6.11. Counterparts. This Agreement may be executed in
several counterparts, each of which is to be deemed an original, but all of
which together constitute one instrument.
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Section 6.12. Headings. The descriptive headings in this
Agreement are inserted for convenience of reference only and do not constitute
substantive provisions of this Agreement.
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IN WITNESS WHEREOF, the Parties have duly executed this
Agreement as of the date set forth above.
THE XXXXX-XXXXXXX STORES CORP. XXXXXXX X. XXXX
On behalf of itself and all Debtors
In his individual capacity ("LBP"); as 31%
By: owner of Xxxxxxx and 11% owner of Abco Land
------------------------------------------ Development Corp. ("ALD"); as trustee for
Xxxx X. Xxxxxxxxx LPST and TWT; as beneficiary of the Xxxx
Executive Vice President - Administration Peal Trust; and on behalf of all Xxxxxxx
Family Entities wholly or partially owned
THE XXXXX-XXXXXXX STORES CORP. and/or controlled by LBP
Profit Sharing and Stock Ownership Plan
By: -----------------------------------------------
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THE XXXXX-XXXXXXX STORES CORP. XXXXXXX-XXXX HOLDINGS, INC.
Profit Sharing and Stock Ownership Plan On its behalf and that of its wholly-owned
Administration Committee subsidiary, The Xxxxxxx-Xxxx Corporation
By: By:
---------------------------------------- ---------------------------------------------
Xxxxxxx X. Xxxxxx
XXXXXXX X. XXXXXX [TITLE]
In her individual capacity ("BBW"); as 50% THE XXXXXXX CORPORATION
owner of The Xxxxxxx Corporation
("Xxxxxxx"); trustee for The Xxxxxxx Xxxx By:
Stock Trust ("LPST"), The Xxxx Xxxxxx Trust --------------------------------------------
("TWT"), and Xxxxxxx X. Xxxxxx, Trustee Xxxxxxx X. Xxxxxx
("BWTr"); and on behalf of all Xxxxxxx
Family Entities wholly or partially owned [TITLE]
and/or controlled by BBW
XXXXXXX INVESTMENTS, INC.
By:
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THE XXXXXXX XXXX STOCK TRUST
XXXXXXX X. XXXXXX
By:
In his individual capacity ("WSW"), and on ----------------------------------
behalf of all Xxxxxxx Family Entities wholly Xxxxxxx X. Xxxxxx
or partially owned and/or controlled by WSW Trustee
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XXXXXXX X. XXXXXX, TRUSTEE POINT WEST III LIMITED PARTNERSHIP
By: By:
---------------------------------- ----------------------------------
Xxxxxxx X. Xxxxxx Xxxxxxx X. Xxxxxx
General Partner
ABCO LAND DEVELOPMENT CORP.
UNIVERSITY MALL ASSOCIATES
By: PARTNERSHIP
----------------------------------
Xxxxxxx X. Xxxxxx By:
----------------------------------
[TITLE] Xxxxxxx X. Xxxxxx
General Partner
WILDCAT DEVELOPMENT LIMITED
PARTNERSHIP FAIRBORN COMMERCE CENTER II
LIMITED PARTNERSHIP
By:
---------------------------------- By:
Xxxxxxx X. Xxxxxx ----------------------------------
General Partner Xxxxxxx X. Xxxxxx
General Partner
CENTERVILLE ASSOCIATES LTD.
LIVE OAK ASSOCIATES LIMITED
By: PARTNERSHIP
----------------------------------
Xxxxxxx X. Xxxxxx By:
Trustee of BWTr, General Partner ----------------------------------
Xxxxxxx X. Xxxxxx
CENTERVILLE ASSOCIATES III LIMITED General Partner
PARTNERSHIP
By:
----------------------------------
Xxxxxxx X. Xxxxxx
Trustee of BWTr, General Partner
18
19
EXHIBIT A -- XXXXXXX FAMILY LEASE CLAIMS
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AMOUNT RESOLVED
CLAIMANT DEBTOR BASIS CLAIMED AMOUNT
-----------------------------------------------------------------------------------------------------------------------
BWTr Xxxxx-Xxxxxxx Broadmoor Plaza
a. Prepetition Real Estate $ 24,000.71
("R/E") Taxes 147,333.10
b. Lease Rejection Damages 7,639.15
c. Postpetition R/E Taxes ------------
$ 179,026.96
TOTAL
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XX Xxxxx-Xxxxxxx Van Buren Shopping Center
a. Prepetition R/E Taxes $ 38,638.64 $ 38,638.64
b. Percentage Rent 109,847.75 109,847.75
c. Postpetition R/E Taxes 5,364.80 5,364.80
------------ -------------
TOTAL $ 153,851.19 $ 153,851.19
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The Xxxxxxx-Xxxx Xxxxx-Xxxxxxx 1. Westgate Shopping Center
Corp. a. Prepetition R/E Taxes $ 106,558.83
b. Postpetition R/E Taxes 7,835.20
2. Woodville Mall
a. Prepetition R/E Taxes 32,528.17
b. Postpetition R/E Taxes 4,273.07
3. North Towne Shopping Center
a. Prepetition R/E Taxes 152,163.53
b. Postpetition R/E Taxes 11,188.50
------------
TOTAL $ 314,547.30
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Centerville Xxxxx-Xxxxxxx Centerville Place Shopping Center
Associates III a. Prepetition R/E Taxes $ 76,387.91
Limited b. Postpetition R/E Taxes 10,606.12
Partnership ------------
TOTAL $ 86,994.03
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BC and ALD Xxxxx-Xxxxxxx Xxxx Plaza Shopping Center
1. Dept. Store
a. Prepetition R/E Taxes $ 6,864.00 $ 6,864.00
b. Percentage Rent 73,050.42 73,050.42
c. Repairs 491.57 491.57
d. Postpetition R/E Taxes 953.04 953.04
2. Home Store
a. Prepetition R/E Taxes 5,667.20 5,667.20
b. Postpetition R/E Taxes 786.86 786.86
----------- -------------
TOTAL $ 87,813.09 $ 87,813.09
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Fairborn Xxxxx-Xxxxxxx Xxxxx-Xxxxxxx Distribution Center
Commerce Center Prepetition R/E Taxes $ 101,623.19
II Limited
Partnership
1
20
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AMOUNT RESOLVED
CLAIMANT DEBTOR BASIS CLAIMED AMOUNT
-----------------------------------------------------------------------------------------------------------------------
BBW, LBP, and Xxxxx-Xxxxxxx Skyway Plaza Shopping Center
BC a. Insurance $ 2,407.14
b. Lease Rejection Damages 339,376.08
c. Contingent Claim unliquidated
d. Rent for 11/96-1/97 31,958.50
e. Prepetition R/E Taxes 22,523.23
f. Postpetition R/E Taxes 37,666.82
g. Damage to Premises 27,550.00
-------------
TOTAL $ 461,481.77
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University Mall Xxxxx-Xxxxxxx University Mall Shopping Center
Associates a. Prepetition R/E Taxes $ 31,134.21 $ 31,134.21
Partnership b. Prepetition Insurance 1,888.59 1,888.59
c. Postpetition R/E Taxes 4,322.89 4,322.89
d. Postpetition Insurance 1,575.40 1,575.40
------------- -------------
TOTAL $ 38,921.09 $ 38,921.09
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Wildcat Xxxxx-Xxxxxxx North Park Center
Development a. Prepetition R/E Taxes $ 76,658.91
Limited b. Prepetition Insurance 4,464.54
Partnership c. Prepetition Disposal Charge 859.78
d. Postpetition R/E Taxes 18,472.41
e. Prepetition Water Charge 390.86
f. Prepetition Late Charges 1,633.67
--------------
TOTAL $ 102,480.17
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BWTr Bee-Gee Eastown Strip Center
Postpetition Insurance $ 235.86 $ 235.86
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BC Bee-Gee Van Buren Shopping Center
Percentage Rent $ 3,668.85
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Centerville Bee-Gee Centerville Place Shopping Center $ 0.00
Associates Ltd.
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Point West III Bee-Gee Bee-Gee Corporate Offices
Limited a. 10/95 Rent $ 8,252.75
Partnership b. Lease Rejection Damages 159,465.64
c. Repairs 17,566.53
d. Lost Access Card 5.00
e. 3/96, 4/96 Rent 16,505.50
f. Maintenance Billing 612.20
--------------
TOTAL $ 202,407.62
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BBW, LBP, and Bee-Gee Skyway Plaza Shopping Center
BC Lease Rejection Damages $ 41,292.00 $ 41,292.00
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University Mall Bee-Gee University Mall Shopping Center
Associates a. Prepetition R/E Taxes $ 85.56 $ 85.56
Partnership b. Utilities 137.19 137.19
c. Claim unliquidated 0.00
-------------- ------------
TOTAL $ 222.75 $ 222.75
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2
21
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AMOUNT RESOLVED
CLAIMANT DEBTOR BASIS CLAIMED AMOUNT
-------------------------------------------------------------------------------------------------------------------------
Wildcat Bee-Gee North Park Center
Development a. Postpetition Disposal $ 39.35 $ 39.35
Limited Charges 287.10 287.10
Partnership b. Prepetition Water 229.91 229.91
c. Postpetition Water unliquidated 0.00
d. Claim ------------ ------------
$ 556.36 $ 556.36
TOTAL
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Live Oak Margo's Margo's Headquarters
Associates a. Prepetition Rent $ 4,383.52 $ 4,383.52
Limited b. Prepetition Taxes 10,340.42 10,340.42
Partnership ------------- -------------
TOTAL $ 14,723.94 $ 14,723.94
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3
22
EXHIBIT B -- MISCELLANEOUS XXXXXXX FAMILY CLAIMS
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AMOUNT RESOLVED
CLAIMANT BASIS CLAIMED AMOUNT
---------------------------------------------------------------------------------------------------------------------
LBP Indemnification unliquidated
Guaranty $ 1,800,000.00
Deferred Compensation unliquidated
Wages 0.00
--------------
TOTAL $ 1,800,000.00
---------------------------------------------------------------------------------------------------------------------
BBW Indemnification unliquidated
Guarantee $ 1,800,000.00
ESOP (as former employee) unliquidated
Van Buren Shopping Center Parking
Lot 965.80
a. Prepetition R/E Taxes 133.10
b. Postpetition R/E Taxes 0.00
Wages --------------
$ 1,801,098.90
TOTAL
---------------------------------------------------------------------------------------------------------------------
WSW Indemnification unliquidated
Guarantee $ 1,800,000.00
--------------
TOTAL $ 1,800,000.00
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The Xxxxxxx Realty Co. 000 Xxxxxxxxx Xxxxxxxxx
a. Repairs $ 4,857.45
b. Claim 8,636.90
c. Environmental Remediation 86,000.00
--------------
TOTAL $ 99,494.35
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23
EXHIBIT C -- XXXXX-XXXXXXX CLAIMS
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AMOUNT RESOLVED
AFFILIATE BASIS CLAIMED AMOUNT
---------------------------------------------------------------------------------------------------------------------
LBP Personal Use of Company Airplane $ 14,552.49
Credit Card Balance 82,046.74
---------------
TOTAL $ 96,599.23
---------------------------------------------------------------------------------------------------------------------
BBW Personal Use of Company Airplane $ 39,954.11
---------------------------------------------------------------------------------------------------------------------
The Xxxxxxx Realty Co. Personal Use of Company Airplane $ 1,947.91
Credit Card Balance 192,379.27
---------------
TOTAL $ 194,327.18
24
EXHIBIT D -- FAIRBORN RIGHT TERMS
Subject Real Property: All of the real property contiguous to the real
property currently leased (the "Leased Parcel") to
Xxxxx-Xxxxxxx by Fairborn Commerce Center II
Ltd. and east of Exchange Court (being
approximately 13.6 acres) and north of the Leased
Parcel (being approximately 4.3 acres).
Option to Purchase: At any time within the next 40 years, Xxxxx-
Xxxxxxx will have the option to purchase the
Subject Real Property at a per acre cost calculated
at fair market value. If the parties cannot agree on
a fair market value, the determination of fair
market value will be determined in binding
arbitration.
Right of First Refusal: If Xxxxxxx Realty receives a bona fide offer to
purchase all or a portion of the Subject Real
Property, Xxxxxxx Realty shall provide notice of
such offer to Xxxxx-Xxxxxxx within five days of
receipt of such offer and Xxxxx-Xxxxxxx shall
have 30 days from receiving notice of such offer
in which to purchase the Subject Real Property
under the terms and conditions of such offer. The
Xxxxx-Xxxxxxx offer and sale must be for all of
the Subject Real Estate.
25
EXHIBIT E -- XXXX LEASE TERMS
Size: 80,000 sq. ft. (56,000 existing and 24,000
expansion).
Term: 40 years with a base term of 20 years and two 10
year options.
Rent: $4.50/sq. ft.1st 10 years (on 55,940 sq. ft. only).
$5.00/sq. ft.2nd 10 years (on 55,940 sq. ft. only).
Percentage Rent: 1st 10 years - 2% over $12,586,500 and 1 1/2%
over 14,586,500. Then adjusted each 10 years.
Common Area Maintenance: Five years $.40/sq. ft. on 80,000 sq. ft. with an
increase of five cents every five years.
Taxes: Pro rata share.
Insurance: Pro rata.
Maintenance: Roof and structure by landlord. All other
maintenance by tenant including glass and doors.
Operating Covenant: Ten years as "Xxxxx-Xxxxxxx."
Recapture by Landlord: Tenant to turn over 17,609 sq. ft. Home Store
space and 3,000 sq. ft. Men's Store space to
landlord.
Construction: Tenant to build 24,000 sq. ft. expansion.
Estimated cost: $1,680,000. Landlord to raze
existing Goodyear building and compact soil for
tenant's building.
Land Purchase: Landlord to cover the $25,000 expense to acquire
adequate land to accommodate the building
expansion.
