Table of Contents:

I. INTRODUCTION ... 1

II. ALTERNATIVE STRUCTURES FOR TRANSFERS OF BUSINESSES ...... 3

A. Common Threads; Alternatives ... 3

B. Mergers and Consolidations ... 4

C. Purchases of Shares... 5

D. Asset Purchases... 5

III. WHETHER TO DO AN ASSET PURCHASE ... 6

A. Purchased Assets.... 6

B. Contractual Rights ... 7

C. Intellectual Property Rights ... 8

D. Governmental Authorizations... 8

E. Assumed Liabilities ... 9

F. Dissent and Appraisal Rights... 11

1. Delaware Law... 11

2. Texas Law... 12

G. Income Taxes ... 13

H. Transfer Taxes ... 15

I. Employment Issues ... 16

J. Confidentiality Agreement... 16

K. Exclusivity Agreement... 16

L. Letter of Intent ... 16

IV. SUCCESSOR LIABILITY ... 17

A. Background ... 17

B. Successor Liability Doctrines ... 18

1. De Facto Merger ...18

2. Continuity of Enterprise... 21

3. Product Line Exception... 21

4. Choice of Law... 22

5. Environmental Statutes ... 22

6. Federal Common Law/ERISA...24

7. Effect of Bankruptcy Court Orders... 25

C. Some Suggested Responses ... 26

1. Analysis of Transaction ... 26

(a) Product Liability ... 26

(b) Environmental... 26

(c) Applicable Laws ... 27

2. Structure of Transaction... 27

3. Asset Purchase Agreement Provisions... 27

(a) Liabilities Excluded ... 27

(b) Indemnification... 28

4. Selling Corporation - Survival ... 28

5. Limitation on Assets ... 28

V. SELECTED ASSET PURCHASE AGREEMENT PROVISIONS ... 28

(See pages 28-30 for table of contents to selected provisions)