Apparel

1. Definitions 1

2. Purchase of Assets 13

2.1 Purchase 13

2.1.1 Purchase of Credit Card Assets 14

2.1.2 Purchase of Equipment 15

2.2 Assumption of Liabilities 15

2.3 Purchase Price 15

2.3.1 Bank Purchase Price 15

2.3.2 ADS Purchase Price 15

2.3.3 Adjustments to Bank Purchase Price 15

2.3.4 Allocation of Purchase Price 16

2.3.5 Allocation of Taxes 16

2.4 Name Rights 16

3. Closing 17

3.1 Sellers' Deliveries at Closing 17

3.2 Buyers' Deliveries at Closing 17

3.3 Final Closing Statement 17

3.3.1 Auditor 18

3.3.2 Report of Auditor 18

3.3.3 Binding Report 18

3.3.4 Dispute Resolution 18

3.3.5 Failure to Include Account 19

3.3.6 Netting of Amounts 19

3.4 Delivery of Books and Records and Account Documents 19

3.5 Transfer of Absolute Title; Filing of Financing Statements 19

3.6 Power of Attorney 20

3.7 Post-Closing Payments on Receivables 20

3.8 Separation of Transactions 20

4. Representations and Warranties of Sellers 21

4.1 Organization 21

4.2 Authorization of Transaction; Validity 21

4.3 No Conflicts; Consents 21

4.4 Litigation 22

4.5 Compliance With Laws 22

4.6 Title to Assets 22

4.7 Financial Statements 23

4.8 Equipment 23

4.9 Contracts 23

4.10 Employees 24

4.11 ERISA and Employee Benefit Plans 24

4.12 Tax and Other Returns and Reports 25

4.13 Bulk Sales Law 25

4.14 Conduct of the Business 25

4.15 Accuracy of Information 26

4.16 Sufficiency of Assets 26

4.17 Name Rights 26

4.18 Brokers 26

4.19 Accuracy of Preliminary Closing Tape and Final Closing Tape 26

4.20 Restrictions, Reviews and Investigations 27

4.21 Accounts 27

4.22 Cardholder Agreements 28

4.23 Absence of Defaults 28

4.24 Financial Reporting for Accounts and Receivables 28

4.25 Absence of Foreclosure, Bankruptcy, and Other Proceedings 28

4.26 Reaffirmed Accounts 29

4.27 Disclaimer 29

4.28 Survival 29

5. Representations and Warranties of Buyers 29

5.1 Organization 29

5.2 Authorization of Transaction; Validity 29

5.3 No Conflicts; Consents 30

5.4 Litigation 30

5.5 Compliance with Laws 31

5.6 Financial Statements 31

5.7 Accuracy of Information 31

5.8 Brokers 31

5.9 Acknowledgement of Disclaimer 31

5.10 Survival 32

6. Conditions to Obligations of Buyers 32

6.1 Closing Documents 32

6.2 Corporate Documents of Sellers 32

6.3 No Pending Litigation 32

6.4 Representations, Warranties and Covenants 33

6.5 Consents 33

6.6 HSR Act; Other Approvals 33

6.7 Opinion 33

6.8 No Sellers Material Adverse Effect 33

6.9 Liens 33

6.10 Necessary Action Taken 33

6.11 Other Agreements 33

6.12 Preliminary Information 34

6.13 Certificate of Sellers 34

7. Conditions to Obligations of Sellers 34

7.1 Closing Documents 34

7.2 Corporate Documents of Buyers 34

7.3 Purchase Price 34

7.4 No Pending Litigation 34

7.5 Representations, Warranties and Covenants 35

7.6 Consents 35

7.7 HSR Act; Other Approvals 35

7.8 Opinion 35

7.9 No Buyers Material Adverse Effect 35

7.10 Necessary Action Taken 35

7.11 Other Agreements 35

7.12 Certificate of Buyers 35

8. Covenants of Buyers and Sellers 36

8.1 Best Efforts 36

8.2 Books and Records 36

8.3 Cardholder Notices 36

8.4 Notices of Events 36

8.5 No Sale of Assets 36

8.6 Sales and Transfer Taxes 37

8.7 Public Announcements 37

8.8 Confidentiality 37

8.8.1 Confidential Information Defined 37

8.8.2 Request for Disclosure 37

8.8.3 Return of Confidential Information 38

8.9 HSR Act; Other Approvals 38

8.10 Conduct of Credit Card Business 38

8.11 Assignment of Contracts 39

8.12 Termination of Financing Statements 39

8.13 Access 40

8.14 Excluded Assets 40

8.15 Form 8594 40

8.16 Name Rights 40

8.17 New Credit Cards 40

8.18 Jacksonville Facilities 40

8.18.1 Real Property 41

8.18.2 Employees 41

8.19 GLB Act 41