DEALER MANAGERS AGREEMENT
Exhibit 99.3
October 27, 2009
Xxxxxxx, Xxxxx & Co.
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
X.X. Xxxxxx Securities Inc.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
General Cable Corporation, a Delaware corporation (the “Company”), plans to make an offer
(together with any amendments, supplements or extensions thereof, the “Offer”) to exchange up to
$439,375,000 aggregate principal amount of
its Subordinated Convertible Notes due 2029
(the “New Notes”) for its outstanding 1.0% Senior Convertible Notes due 2012 ($475,000,000
aggregate principal amount outstanding) (the “Old Notes”) and the related guarantees. The Old
Notes were issued pursuant to an Indenture dated as of October 2, 2007, among the Company, the
subsidiary guarantors parties thereto (the “Guarantors”), and U.S. Bank National Association, as
trustee (the “Old Indenture”). The New Notes will be issued pursuant to an Indenture, to be dated
as of the Settlement Date (as hereinafter defined) (the “New Indenture”), between the Company and
U.S. Bank National Association, as trustee (the “Trustee”).
The New Notes will be convertible into duly and validly issued, fully paid and non-assessable
shares of common stock, par value $0.01 per share (the “Common Stock”), of the Company (such shares
of Common Stock into which the New Notes are convertible, the “Conversion Shares”), on the terms,
and subject to the conditions, set forth in the New Indenture.
The Offer shall be made upon the terms and subject to the conditions set forth in the Offer
Material (as hereinafter defined), which the Company has caused to be prepared and furnished to you
on or prior to the date hereof for use in connection with the Offer.
The Company has prepared and filed with the Securities and Exchange Commission (the
“Commission”) under the Securities Act of 1933, as amended, and the rules and regulations of the
Commission thereunder (collectively, the “Securities Act”), a registration statement on Form S-4,
including a prospectus, subject to completion, relating to the Offer (the “Initial Registration
Statement”). At any time referenced in this Dealer Managers Agreement (this “Agreement”), the most
recent preliminary prospectus, subject to completion, (i) included in the Initial Registration
Statement and sent by the Company to a Registered or Beneficial Owner (as hereinafter defined) of
Old Notes or (ii) filed with the Commission pursuant to Rule 424(a) of the rules and regulations of
the Commission under the Securities Act, is herein called the “Preliminary Prospectus”. The
Initial Registration Statement, including all exhibits, financial
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statements and schedules thereto and in the form in which such registration statement becomes
effective under the Securities Act, is herein called the “Registration Statement”; and such final
prospectus, in the form included in the Registration Statement at the time it becomes effective or,
if later, at the time that it is first filed pursuant to Rule 424(b) under the Securities Act, is
hereinafter called the “Prospectus”. Any reference herein to the Initial Registration Statement,
the Registration Statement, the Preliminary Prospectus or the Prospectus shall be deemed to refer
to and include the documents incorporated by reference therein pursuant to Form S-4 which were
filed under the Securities Exchange Act of 1934, as amended, and the rules and regulations of the
Commission thereunder (collectively, the “Exchange Act”), on or before the effective date of the
Registration Statement or the date of the Prospectus, as the case may be; any reference herein to
the terms “amend,” “amendment” or “supplement” with respect to the Preliminary Prospectus or the
Prospectus shall be deemed to refer to and include any documents filed after the date of such
Preliminary Prospectus or Prospectus, as the case may be, under the Exchange Act and incorporated
by reference therein; and any reference herein to the terms “amend,” “amendment” or “supplement”
with respect to the Registration Statement shall be deemed to refer to and include the filing of
any document under the Exchange Act after the effective date of the Registration Statement deemed
to be incorporated by reference therein. The tender offer statement filed by the Company with the
Commission under the Exchange Act on Schedule TO with respect to the Offer, including any amendment
or supplement thereto and any information that is incorporated or deemed incorporated by reference
therein, is hereinafter referred to as the “Schedule TO”. Any written communication made in
connection with or relating to the Offer in reliance on Rule 165 of the Securities Act, and filed
by the Company with the Commission pursuant to Rule 425 under the Securities Act, is hereinafter
referred to as “Rule 165 Material”.
The Registration Statement, the Preliminary Prospectus, the Prospectus, the accompanying
Letter of Transmittal (the “Letter of Transmittal”), any Notice of Guaranteed Delivery (the “Notice
of Guaranteed Delivery”), the Schedule TO, any offering documents or materials filed or to be filed
with the Commission or any Other Agency (as defined herein) on behalf of the Company in connection
with the Offer and any other documents, information, materials or filings relating to the Offer to
be used or made available by the Company in connection with the Offer, including, but not limited
to, any Rule 165 Material, any press releases or newspaper advertisements relating to the Offer, or
any materials hereafter incorporated by reference therein, to be distributed to holders of the Old
Notes or authorized for use by the Company and used in connection with the Offer, and in each case
as amended or supplemented from time to time, are referred to herein collectively as the “Offer
Material.”
1. Appointment of Dealer Managers
The Company hereby appoints each of you as a dealer manager in connection with the Offer (in
such capacity, each a “Dealer Manager” and, together, the “Dealer Managers”) and authorizes you to
act on its behalf in accordance with this Agreement and the terms of the Offer Material, which
Offer Material has been prepared or approved by the Company and has been or will be filed with the
Commission pursuant to the requirements of the Securities Act and the Exchange Act, and authorizes
you and any other securities dealer or any commercial bank or trust company to use the Offer
Material in connection with your solicitation of tenders of Old Notes in exchange for the New Notes
pursuant to the terms of the Offer. Each of you agrees to
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furnish no written material to holders in connection with the Offer other than the Offer
Material without the Company’s prior written consent.
2. Mailing of Offer Material
Upon commencement of the Offer, the Company shall cause to be sent to each registered holder
of any Old Notes, to each participant in The Depository Trust Company (“DTC”) appearing in the most
recent available DTC securities position listing as a holder of Old Notes and to each Non Objecting
Beneficial Owner (“NOBO”) appearing in the most recent available NOBO list as an owner of Old Notes
(each such registered holder, participant or owner, a “Registered or Beneficial Owner”), as soon as
practicable, by hand, by overnight courier or by another means of expedited delivery, a copy of
appropriate Offer Material, including the Preliminary Prospectus, as then amended or supplemented,
and the Letter of Transmittal and the Notice of Guaranteed Delivery. Thereafter, until the
expiration of the Offer, the Company shall use its reasonable best efforts to cause a copy of such
material to be mailed to each person who becomes a Registered or Beneficial Owner of Old Notes.
3. Solicitation of Exchanges
(a) You agree to use your customary reasonable efforts to solicit Old Notes to be tendered for
exchange pursuant to the terms of the Offer. Neither you nor any of your affiliates, nor any
partners, directors, officers, agents, employees or controlling persons (if any) of you or any of
your affiliates, shall have any liability to the Company or any other person for any act or
omission on the part of any securities broker or dealer (including the other Dealer Manager),
commercial bank or trust company that solicits exchanges in the Offer, and neither you nor any of
such persons or entities referred to above shall have any liability to the Company or any person
asserting claims on behalf of or in right of the Company in connection with or as a result of
either your engagement or any matter referred to in this Agreement except to the extent that such
liability is finally judicially determined to have resulted primarily from your own gross
negligence or willful misconduct in performing the services that are the subject of this Agreement.
In soliciting exchanges in the Offer, no securities broker or dealer (other than yourselves),
commercial bank or trust company shall be deemed to act as your agent or the agent of the Company,
and you, as a Dealer Manager, shall not be deemed the agent of any other securities broker or
dealer (including the other Dealer Manager) or of any commercial bank or trust company. The
Company shall have sole authority for the acceptance or rejection of any and all tenders of Old
Notes, subject to the terms of the Offer. The Company further understands and agrees that each
Dealer Manager shall provide its services hereunder independently from the other Dealer Managers
and that neither of the Dealer Managers will rely upon any services or work performed by the other
Dealer Manager. Accordingly, the Company agrees that neither of the Dealer Managers shall have any
liability to the Company or its securityholders for any actions or omissions of the other Dealer
Manager.
(b) The Offer Material has been or will be prepared and approved by, and is the sole
responsibility of, the Company. The Company agrees to furnish to you as many copies as you may
reasonably request of the Offer Material in final form for use by you in connection with the Offer.
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(c) The Company agrees that it will not use, publish or permit the use of or file with the
Commission or any other governmental or regulatory entity, agency or authority (an “Other Agency”),
including the Financial Industry Regulatory Authority (“FINRA”), or send to any Registered or
Beneficial Owner of Old Notes any Offer Material, or refer to you in any such Offer Material, (i)
without submitting copies of such Offer Material to you for comment and (ii) without your consent,
which consent shall not be unreasonably withheld. In the event that (x) the Company uses or
permits the use of, publishes or files with the Commission or any Other Agency, any Offer Material
or amendments or supplements thereto (i) which have not been submitted to you for your comments or
(ii) with respect to which you reasonably object, or (y) you, at any time, determine that any
condition set forth in Section 7 of this Agreement shall not be satisfied, then each of you shall
be entitled to withdraw as a Dealer Manager in connection with the Offer without any liability or
penalty to you or any other Indemnified Party and without loss of any right to the payment of all
fees and expenses payable hereunder which have accrued or been incurred to the date of such
withdrawal (which shall be paid to you on or as promptly as practicable after such date of
withdrawal), any right to the indemnification provided in Section 8 hereof or the benefit of any
other provisions surviving such withdrawal pursuant to Section 9(b) hereof. For purposes of
determining the fees accrued and payable pursuant to Section 4(a) of this Agreement, the principal
amount of Old Notes tendered for exchange (and not subsequently withdrawn) pursuant to the Offer as
of the close of business on the date of any withdrawal pursuant to this Section 3(c), which Old
Notes are thereafter acquired by the Company pursuant to the Offer, shall be deemed to have been
exchanged as of the date of such withdrawal, with the fees to be calculated in accordance with the
percentages set forth in Section 4(a) of this Agreement. If a Dealer Manager shall withdraw
pursuant to the foregoing, the other Dealer Manager shall have the right, but not the obligation,
exercisable in its sole discretion, to continue as a Dealer Manager hereunder, in which event this
Agreement shall remain in full force and effect with respect to such Dealer Manager and all fees
and expenses payable hereunder accruing or incurred after the date of such withdrawal shall be
payable solely to such Dealer Manager.
(d) The Company agrees to advise you promptly of (i) the occurrence of any event which could
cause the Company to withdraw, rescind, terminate or modify the Offer, (ii) any proposal by, or
known to, the Company or requirement to amend or supplement the Offer Material, (iii) the time when
the Initial Registration Statement, the Registration Statement, or any amendment thereto, has been
filed or becomes effective, the time when the Preliminary Prospectus, the Prospectus, the Schedule
TO or any Rule 165 Material has been filed or any amendment or supplement to the Preliminary
Prospectus, the Prospectus, the Schedule TO or the Rule 165 Material or any amended or additional
Offer Material shall have been filed, (iv) the occurrence of any event, or the discovery of any
fact, the occurrence or existence of which would require the making of any change in any of the
Offer Material then being used or would cause any representation or warranty contained in this
Agreement to be untrue or inaccurate in any material respect or as a result of which the Offer
Material as then amended or supplemented would include any untrue statement of a material fact or
omit to state any material fact necessary to make the statements therein in the light of the
circumstances under which they were made not misleading, (v) the receipt of any comments from the
Commission, of any request of the Commission for the amendment of the Initial Registration
Statement, the Registration Statement or the filing of a new registration statement or any
amendment or supplement to the Preliminary Prospectus, the Prospectus, the Schedule TO or the other
Offer Material or any document incorporated by reference therein or otherwise deemed to be a part
thereof or for any additional
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information (and, if in writing, the Company will furnish you with a copy thereof), (vi) the
issuance by any Other Agency of any comment or order or the taking of any other action concerning
the Offer, including any request for the amendment of the material referred to in clause (v) above
(and, if in writing, the Company will furnish you with a copy thereof), (vii) any litigation or
administrative action or claim with respect to the Offer, (viii) any other information relating to
the Offer which you may from time to time reasonably request and (ix) of the issuance by the
Commission or any Other Agency of any stop order suspending the effectiveness of the Registration
Statement or such new registration statement or any order preventing or suspending the making or
the consummation of the Offer, or the use of the Preliminary Prospectus, the Prospectus or any of
the other Offer Material, or of the institution of any proceedings for that purpose or pursuant to
Section 8A of the Securities Act. The Company will use its best efforts to prevent the issuance of
any such order and to obtain as soon as possible the lifting thereof, if issued. The Company
agrees to inform you of the filing with the Commission of any post-effective amendment to the
Registration Statement, and the obtaining of effectiveness of any such post-effective amendment,
and the filing of any amendment or supplement to the Prospectus.
(e) The Company agrees to furnish to you, to the extent the same is available to the Company,
cards or lists or copies thereof showing the names and addresses of, and principal amount of Old
Notes held by the Registered or Beneficial Owners of Old Notes as of the Commencement Date (as
defined herein), and shall use its reasonable best efforts to advise you or cause you to be advised
from day to day during the period of the Offer as to any changes in identity of the Registered or
Beneficial Owners of Old Notes. You agree to use such information only in connection with the
Offer and not to furnish such information to any other person except in connection with the Offer.
(f) The Company has appointed and authorizes you to communicate with X.X. Xxxx & Co., Inc.,
who has been engaged to serve as the exchange agent and the information agent, in such respective
capacities, with respect to matters relating to the Offer. X.X. Xxxx & Co., Inc., as exchange
agent, is hereinafter referred to as the “Exchange Agent” and X.X. Xxxx & Co., Inc., as information
agent, is hereinafter referred to as the “Information Agent,” as the context requires. The Company
has instructed or will instruct the Exchange Agent to (i) advise you at least daily as to the
amount of Old Notes that have been validly tendered and not validly withdrawn pursuant to the Offer
as of such time, and such other matters in connection with the Offer as you may reasonably request
and (ii) without limiting the foregoing, to promptly notify you during the period of the Offer of
all transfers of Old Notes of which the Exchange Agent is aware, such notification consisting of
the name and address of the transferor and transferee of any Old Notes and the date of such
transfer, to the extent such information is known to the Exchange Agent.
(g) The Company agrees that it will not make any written communications in connection with or
related to the Offer that constitutes a “prospectus” for the purposes of Section 5(b)(1) of the
Securities Act except Rule 165 Material and to provide you with a copy of all Rule 165 Material
promptly after filing of the same with the Commission.
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4. Compensation and Expenses
(a) The Company shall pay to you, as compensation for your services as Dealer Managers
hereunder, a fee of $20.00 for each $1,000 principal amount of the Old Notes tendered and exchanged
pursuant to the Offer. In addition, at its discretion, the Company may pay you, as additional
compensation for your services as Dealer Managers hereunder, an additional fee of up to $7.50 for
each 1,000 principal amount of the Old Notes tendered and exchanged pursuant to the Offer. Of the
aggregate fees payable, the Company shall pay 65% to Xxxxxxx, Sachs & Co. and 35% to X.X. Xxxxxx
Securities Inc. Such fee shall be payable on the Settlement Date (as defined below). Such fee
shall be paid to you if and only if the Offer is consummated.
(b) Whether or not any Old Notes are tendered pursuant to the Offer or whether you withdraw
pursuant to Section 3(c) hereof, the Company shall pay all expenses of the preparation, printing,
mailing and publishing of the Offer Material, all fees payable to securities dealers (including
yourself), commercial banks, trust companies and nominees as reimbursement of their customary
mailing and handling expenses incurred in forwarding the Offer Material to their customers, all
fees and expenses payable to the Exchange Agent, the Information Agent, the trustee under the Old
Indenture and the Trustee, and all other fees and expenses incurred by the Company or any of its
affiliates and which are, pursuant to agreements with respect thereto, payable by the Company or
any of its affiliates in connection with the Offer, all expenses incident to the preparation,
registration, issuance and delivery of the New Notes, including any stock or transfer taxes and
stamp or similar duties (if imposed solely by reason of the exchange) and the costs and charges of
any transfer agent or registrar or paying agent, any qualification of the New Notes under state
securities or “blue sky” laws (including the reasonable fees and disbursements of your counsel) in
accordance with the provisions of Section 6(a) hereof, the cost of printing or producing this
Agreement, any blue sky memoranda (including the reasonable fees and disbursements of your
counsel), closing documents (including any compilations thereof) and any other documents authorized
by the Company for use in connection with the Offer, all filing fees and expenses, if any, incurred
with respect to any filing with FINRA (including the reasonable fees and disbursements of your
counsel) made in connection with the offering of the New Notes in the Offer, all fees and expenses
in connection with the preparation, printing and filing of the Initial Registration Statement,
Registration Statement, the Preliminary Prospectus, the Prospectus, the Schedule TO and any other
Offer Material (including all exhibits, amendments and supplements thereto) and all costs and
expenses incident to listing the Conversion Shares on the New York Stock Exchange (the “NYSE”), all
pre-approved advertising charges, and all other expenses payable in connection with the Offer and
shall reimburse you for all expenses incurred by you in connection with your services under this
Agreement, including, without limitation, the reasonable fees and the disbursements of your legal
counsel. All such fees and expenses shall be payable promptly against delivery to the Company of
statements therefor.
5. Representations and Warranties by the Company
The Company represents and warrants to, and agrees with, you (i) on and as of the date on
which the Offer is commenced (the “Commencement Date”), (ii) on and as of any date on which Offer
Material is distributed to Registered or Beneficial Owners of the Old Notes (a
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“Distribution Date”), (iii) on the expiration date of the Offer (the “Expiration Date”) and
(iv) on and as of the date on which the Old Notes are exchanged for the New Notes in the Offer (the
“Settlement Date”) that:
(a) The Initial Registration Statement and the Schedule TO have been filed with the
Commission on the date of this Agreement; the Initial Registration Statement and any
amendment thereto and the Schedule TO, each in the form delivered to you, and including
exhibits thereto, has been or will be filed with the Commission in such form; no other
document with respect to the Initial Registration Statement or the Schedule TO has been or
will be filed by the Company with the Commission (other than the Registration Statement, the
Prospectus, the Company’s press release announcing the commencement of the Offer and any
Rule 165 Material filed by the Company on or prior to such date and any amendments or
supplements thereto or to the Initial Registration Statement or the Schedule TO); the
Registration Statement (and any post-effective amendment thereto), including the Preliminary
Prospectus or the Prospectus, will become effective not later than the Expiration Date; and
no stop order suspending the effectiveness of the Initial Registration Statement, the
Registration Statement or any post-effective amendment thereto, or any part thereof has been
issued, no proceeding for that purpose has been initiated or, to the Company’s knowledge,
threatened by the Commission and no notice of objection of the Commission to the use of the
Initial Registration Statement, the Registration Statement or any post-effective amendment
thereto has been received by the Company.
(b) No order preventing or suspending the making or consummation of the Offer, the use
of any Preliminary Prospectus, Prospectus, Schedule TO or other Offer Material has been
issued by the Commission or any Other Agency; the Preliminary Prospectus and the Prospectus,
at their respective times of filing, do not, and at all times following their respective
times of filing during the period of the Offer, the Preliminary Prospectus and the
Prospectus, each as then amended or supplemented, will not, contain any untrue statement of
a material fact or omit or will omit to state a material fact required to be stated therein
or necessary to make the statements made therein, in the light of the circumstances under
which they are made, not misleading; and the Offer Material then filed or otherwise made
available for use in connection with the Offer at such date do not, and at all times during
the period of the Offer will not, contain any untrue statement of a material fact or omit or
will omit to state a material fact required to be stated therein or necessary to make the
statements made therein, in the light of the circumstances under which they are made, not
misleading.
(c) The Initial Registration Statement, the Preliminary Prospectus and the Schedule TO
conform, and the Registration Statement, the Prospectus, the Schedule TO and any further
amendments or supplements thereto will conform from and after the time at which they are
filed, in all material respects to the requirements of the Securities Act and the Exchange
Act, as applicable, and the Trust Indenture Act of 1939, as amended, and the rules and
regulations of the Commission thereunder (the “Trust Indenture Act”) and do not and will
not, as of the applicable effective date as to each part of the Registration Statement and
as of the applicable filing date of the Prospectus and any amendment or supplement thereto,
contain an untrue statement of a material fact or omit
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to state a material fact required to be stated therein or necessary to make the
statements therein not misleading.
(d) None of the Rule 165 Material, when taken together with the Preliminary Prospectus
and the Prospectus, each to the extent filed at such date and as then amended or
supplemented, contained or will contain any untrue statement of a material fact or omitted
or will omit to state a material fact required to be stated therein or necessary to make the
statements made therein, in the light of the circumstances under which they are made, not
misleading.
(e) The documents incorporated by reference in the Initial Registration Statement, the
Registration Statement, the Preliminary Prospectus, the Prospectus or the Offer Material,
each as amended or supplemented at such date, when such incorporated documents became
effective or were filed with the Commission or, as to amended documents, at the time such
amended document became effective or was filed with the Commission, as the case may be,
conformed in all material respects to the requirements of the Securities Act or the Exchange
Act, as applicable, and, to the extent applicable, the rules or regulations of any Other
Agency, and none of such incorporated documents contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or necessary to make
the statements therein not misleading; and any further documents so filed and incorporated
by reference in the Registration Statement, the Prospectus or the Offer Material, or any
further amendment or supplement thereto, when such documents become effective or are filed
with the Commission or, as to amended documents, at the time such amended documents become
effective or are filed with the Commission, as the case may be, will conform in all material
respects to the requirements of the Securities Act or the Exchange Act, as applicable, and
will not contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading.
(f) Each of the accountants who certified the financial statements and supporting
schedules included in the Preliminary Prospectus and the Prospectus are independent public
accountants with respect to the Company and its subsidiaries as required by the Securities
Act and the Exchange Act.
(g) The financial statements of the Company, together with the related schedules and
notes, included in the Preliminary Prospectus and the Prospectus together with the related
schedules and notes present fairly the financial position of the Company and its
consolidated subsidiaries at the dates indicated and the statement of operations,
stockholders’ equity and cash flows of the Company and its consolidated subsidiaries for the
periods specified; said financial statements have been prepared in conformity with generally
accepted accounting principles in the United States applied on a consistent basis throughout
the periods involved (“GAAP”). The financial statements of the businesses or entities to be
acquired by the Company included in the Preliminary Prospectus and the Prospectus, together
with any related notes, present fairly in all material respects the financial position of
such business or entities, at the dates indicated and the statement of operations,
stockholders’ equity and cash flows of such businesses or entities for the periods
specified; said financial statements have been prepared in
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conformity with GAAP applied on a consistent basis throughout the periods involved,
except as set forth in the financial statements. The supporting schedules, if any, included
in the Preliminary Prospectus and the Prospectus present fairly in accordance with GAAP the
information required to be stated therein. The selected financial data and the summary
financial information included in the Preliminary Prospectus and the Prospectus present
fairly the information shown therein and have been compiled on a basis consistent with that
of the audited financial statements included in the Preliminary Prospectus and the
Prospectus. All disclosures contained in the Preliminary Prospectus or the Prospectus
regarding “non-GAAP financial measures” (as such term is defined by the rules and
regulations of the Commission) comply with Regulation G under the Exchange Act and Item 10
of Regulation S-K under the Securities Act, to the extent applicable.
(h) Since the respective dates as of which information is given in the Preliminary
Prospectus or the Prospectus, except as otherwise stated therein, (A) there has been no
material adverse change in the condition, financial or otherwise, or in the earnings,
business affairs or business prospects of the Company and its subsidiaries considered as one
enterprise, whether or not arising in the ordinary course of business (a “Material Adverse
Effect”), (B) there have been no transactions entered into by the Company or any of its
subsidiaries, other than those in the ordinary course of business, which are material with
respect to the Company and its subsidiaries considered as one enterprise, and (C) except as
to dividends or distributions paid with respect to, and redemptions and conversions of, the
Company’s 5.75% Series A Redeemable Convertible Preferred Stock (the “Preferred Stock”)
there has been no dividend or distribution of any kind declared, paid or made by the Company
on any class of its capital stock.
(i) The Company has been duly organized and is validly existing as a corporation in
good standing under the laws of the State of Delaware and has corporate power and authority
to own, lease and operate its properties and to conduct its business as described in the
Preliminary Prospectus and the Prospectus and to enter into and perform its obligations
under this Agreement; and the Company is duly qualified as a foreign corporation to transact
business and is in good standing in each other jurisdiction in which such qualification is
required, whether by reason of the ownership or leasing of property or the conduct of
business, except where the failure to so qualify or to be in good standing would not result
in a Material Adverse Effect.
(j) Each “significant subsidiary” of the Company (as such term is defined in Rule 1-02
of Regulation S-X) (each a “Subsidiary” and, collectively, the “Subsidiaries”) has been duly
organized and is validly existing as a corporation, limited partnership or limited liability
company, as the case may be, in good standing under the laws of the jurisdiction of its
incorporation or formation, has corporate or similar organizational power and authority to
own, lease and operate its properties and to conduct its business as described in the
Preliminary Prospectus and the Prospectus and is duly qualified as a foreign corporation or
entity to transact business and is in good standing in each jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing of property or the
conduct of business, except where the failure to so qualify or to be in good standing would
not result in a Material Adverse Effect; other than liens, pledges and encumbrances under
the Company’s or any subsidiary’s secured credit
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facilities and except as otherwise disclosed in the Preliminary Prospectus and the
Prospectus, all of the issued and outstanding capital stock of each such Subsidiary has been
duly authorized and validly issued, is fully paid and non-assessable and is owned by the
Company, directly or through subsidiaries, free and clear of any security interest,
mortgage, pledge, lien, encumbrance, claim or equity; and none of the outstanding shares of
capital stock of any Subsidiary was issued in violation of any preemptive or similar rights
of any securityholder of such Subsidiary. The only Subsidiaries of the Company are (a) the
Subsidiaries listed on Schedule C hereto and (b) certain other subsidiaries which,
considered in the aggregate as a single Subsidiary, do not constitute a “significant
subsidiary” as defined in Rule 1-02 of Regulation S-X.
(k) The authorized, issued and outstanding capital stock of the Company as of July 3,
2009 is as set forth in the Preliminary Prospectus and the Prospectus in the column entitled
“Actual” under the caption “Capitalization” (except for subsequent issuances, if any,
pursuant to this Agreement, pursuant to reservations, agreements, or employee benefit plans
referred to in the Preliminary Prospectus and the Prospectus or pursuant to the exercise of
convertible securities, options or warrants referred to in the Preliminary Prospectus and
the Prospectus). The shares of issued and outstanding capital stock of the Company have been
duly authorized and validly issued and are fully paid and non-assessable; none of the
outstanding shares of capital stock of the Company was issued in violation of the preemptive
or other similar rights of any securityholder of the Company. The shares of issued and
outstanding capital stock of the Company conform to the description thereof contained in
each of the Preliminary Prospectus and the Prospectus. Except as disclosed in each of the
Preliminary Prospectus and the Prospectus, as amended or supplemented to such date: (i)
there are no outstanding securities convertible into or exchangeable for, or warrants,
options or rights issued by the Company to purchase, any shares of the capital stock of the
Company; (ii) there are no statutory, contractual, preemptive or other rights to subscribe
for or to purchase any Common Stock; and (iii) there are no restrictions upon transfer of
the Common Stock pursuant to the Company’s Certificate of Incorporation or By-laws.
(l) The Common Stock is registered pursuant to Section 12(b) of the Exchange Act and is
listed on the New York Stock Exchange, and the Company has taken no action designed to, or
likely to have the effect of, terminating the registration of the Common Stock under the
Exchange Act or delisting the Common Stock from the NYSE, nor has the Company received any
notification that the Commission or the NYSE is contemplating terminating such registration
or listing. As of the Settlement Date, the Conversion Shares will have been approved for
listing on the NYSE, subject only to notice of issuance at or prior to the time of issuance.
(m) This Agreement has been duly authorized, executed and delivered by the Company.
(n) The New Indenture has been duly authorized by the Company and, when duly executed
and delivered by the Company and the Trustee on the Settlement Date, will constitute a valid
and binding agreement of the Company, enforceable against the Company in accordance with its
terms, except as the enforcement thereof may be limited
11
by bankruptcy, insolvency (including, without limitation, all laws relating to
fraudulent transfers), reorganization, moratorium or similar laws relating to or affecting
enforcement of creditors’ rights generally and except as enforcement thereof is subject to
general principles of equity (regardless of whether enforcement is considered in a
proceeding in equity or at law).
(o) The New Notes have been duly authorized and, on the Settlement Date, will have been
duly executed by the Company and, when authenticated, issued and delivered in the manner
provided for in the New Indenture and delivered against payment of the purchase price
therefor as provided in this Agreement, will constitute valid and binding obligations of the
Company, enforceable against the Company in accordance with their terms, except as the
enforcement thereof may be limited by bankruptcy, insolvency (including, without limitation,
all laws relating to fraudulent transfers) reorganization, moratorium or similar laws
affecting enforcement of creditors’ rights generally and except as enforcement thereof is
subject to general principles of equity (regardless of whether enforcement is considered in
a proceeding in equity or at law), and will be in the form contemplated by, and entitled to
the benefits of, the New Indenture.
(p) The Company has all requisite corporate right, power and authority to execute and
deliver the New Notes, the New Indenture and this Agreement (collectively, the “Transaction
Documents”) and to perform its obligations hereunder and thereunder; the Transaction
Documents will conform in all material respects to the respective statements relating
thereto contained in the Preliminary Prospectus and the Prospectus.
(q) The Common Stock (including the Conversion Shares) conforms to all statements
relating thereto contained or incorporated by reference in the Preliminary Prospectus and
the Prospectus and such description of the Common Stock conforms to the rights set forth in
the Company’s Amended and Restated Certificate of Incorporation, as amended, and Amended and
Restated By-Laws. Upon issuance and delivery of the New Notes in accordance with terms of
the Offer and the New Indenture, the New Notes will be convertible at the option of the
holder thereof for Conversion Shares in accordance with the terms of the New Notes and the
New Indenture; except, at the Commencement Date and the Distribution Date, with respect to
approval by the Board of Directors of the Company, or a duly authorized committee thereof,
of the actual initial conversion price and the actual initial conversion rate of the New
Notes, the Conversion Shares have been duly authorized and reserved for issuance upon such
conversion by all necessary corporate action; the Conversion Shares, when issued upon such
conversion in accordance with the terms of the New Notes and the New Indenture, will be
validly issued and will be fully paid and non-assessable; no holder of such Conversion
Shares will be subject to personal liability by reason of being such a holder; and the
issuance of such shares upon such conversion will not be subject to the preemptive or other
similar rights of any securityholder of the Company.
(r) Except, at the Commencement Date and a Distribution Date, with respect to approval
by the Board of Directors of the Company, or a duly authorized committee thereof, of the
actual initial conversion price and the actual initial conversion rate of the New Notes, the
Company has all requisite power and authority and has duly taken all
12
necessary corporate action to authorize the making and consummation of the Offer, the
exchange of New Notes for Old Notes pursuant to the Offer and the consummation of the
transactions contemplated by this Agreement and the Offer.
(s) Neither the Company nor any of its Significant Subsidiaries is in violation of its
charter or by-laws. Neither the Company nor any of its subsidiaries is in violation of or
in default in the performance or observance of any obligation, agreement, covenant or
condition contained in any agreement or instrument to which the Company or any of its
subsidiaries is a party or by which it or any of them may be bound, or to which any of the
property or assets of the Company or any subsidiary is subject (collectively, “Agreements
and Instruments”) except as disclosed in the Preliminary Prospectus and the Prospectus or
for such defaults that would not result in a Material Adverse Effect; and the execution,
delivery and performance of the Transaction Documents and any other agreement or instrument
entered into or issued or to be entered into or issued by the Company in connection with the
transactions contemplated hereby or thereby or in the Preliminary Prospectus and the
Prospectus and the consummation of the transactions contemplated herein and in the
Preliminary Prospectus and the Prospectus (including the issuance of the New Notes in
exchange for Old Notes) and compliance by the Company with its obligations under the
Transaction Documents have been duly authorized by all necessary corporate action and do not
and will not, whether with or without the giving of notice or passage of time or both,
conflict with or constitute a breach of, or default or Repayment Event (as defined below)
under, or result in the creation or imposition of any lien, charge or encumbrance upon any
property or assets of the Company or any subsidiary pursuant to, the Agreements and
Instruments except for such conflicts, breaches, defaults or Repayment Events or liens,
charges or encumbrances that would not result in a Material Adverse Effect, nor will such
action result in any violation of the provisions of the charter or by-laws of the Company or
any subsidiary or any applicable law, statute, rule, regulation, judgment, order, writ or
decree of any government, government instrumentality or court, domestic or foreign, having
jurisdiction over the Company or any subsidiary or any of their assets, properties or
operations. As used herein, a “Repayment Event” means any event or condition which gives the
holder of any note, debenture or other evidence of indebtedness (or any person acting on
such holder’s behalf) the right to require the repurchase, redemption or repayment of all or
a portion of such indebtedness by the Company or any subsidiary.
(t) Except as disclosed in the Preliminary Prospectus and the Prospectus, no labor
dispute with the employees of the Company or any subsidiary exists or, to the knowledge of
the Company, is imminent that would, singly or in the aggregate, result in a Material
Adverse Effect.
(u) Other than as disclosed in the Preliminary Prospectus and the Prospectus, there is
no action, suit or proceeding before or brought by any court or governmental agency or body,
domestic or foreign, now pending, or, to the knowledge of the Company, threatened, against
or affecting the Company or any subsidiary which might reasonably be expected to result in a
Material Adverse Effect, or which might materially and adversely affect the properties or
assets of the Company or any subsidiary or the consummation of the transactions contemplated
in this Agreement or the performance by
13
the Company of its obligations hereunder. The aggregate of all pending legal or
governmental proceedings to which the Company or any subsidiary is a party or of which any
of their respective property or assets is the subject which are not described in the
Preliminary Prospectus and the Prospectus, including ordinary routine litigation incidental
to the business, could not reasonably be expected to result in a Material Adverse Effect.
(v) The Company and its subsidiaries own or possess, or have the right to use on
reasonable terms, patents, patent rights, licenses, inventions, copyrights, know-how
(including trade secrets and other unpatented and/or unpatentable proprietary or
confidential information, systems or procedures), trademarks, service marks, trade names or
other intellectual property (collectively, “Intellectual Property”) necessary to carry on
the business now operated by them, and neither the Company nor any of its subsidiaries has
received any notice or is otherwise aware of any infringement of or conflict with asserted
rights of others with respect to any Intellectual Property or of any facts or circumstances
which would render any Intellectual Property invalid or inadequate to protect the interest
of the Company or any of its subsidiaries therein, and which infringement or conflict (if
the subject of any unfavorable decision, ruling or finding) or invalidity or inadequacy,
singly or in the aggregate, would result in a Material Adverse Effect.
(w) Neither the Company nor any Affiliate (as such term is defined in Rule 405 of the
Securities Act (each, an “Affiliate”)) of the Company has taken, nor will the Company or any
Affiliate take, directly or indirectly, any action which is designed to or which has
constituted or which would reasonably be expected to cause or result in stabilization or
manipulation of the price of any security of the Company to facilitate the sale or resale of
the Securities.
(x) All agreements or instruments of the Company or any of its subsidiaries which are
material to the Company and required to be filed as exhibits to the Registration Statement
pursuant to the Securities Act or as exhibits to a Exchange Act report pursuant to the
Exchange Act have been filed as required as exhibits to the Registration Statement or to
Annual Report on Form 10-K for the year ended December 31, 2008 or the Company’s Quarterly
Reports on Form 10-Q, or Current Reports on Form 8-K filed thereafter, each as filed by the
Company with the Commission.
(y) No filing with, or authorization, approval, consent, license, order, registration,
qualification or decree of, any court or governmental authority or agency is necessary or
required for the performance by the Company of its obligations hereunder, in connection with
the offering, issuance or sale of the securities hereunder, the issuance of the Conversion
Shares as contemplated by the New Indenture or the consummation of the transactions
contemplated by this Agreement or for the due execution, delivery or performance of the New
Indenture by the Company, except: (i) such as have been already obtained; (ii) such as may
be required under the Securities Act or state securities laws; and (iii) such as may be
required in connection with the qualification of the New Indenture under the Trust Indenture
Act.
14
(z) The Company and its subsidiaries possess such permits, licenses, approvals,
consents and other authorizations (collectively, “Governmental Licenses”) issued by the
appropriate federal, state, local or foreign regulatory agencies or bodies necessary to
conduct the business now operated by them, except where the failure so to possess would not,
singly or in the aggregate, result in a Material Adverse Effect; the Company and its
subsidiaries are in compliance with the terms and conditions of all such Governmental
Licenses, except where the failure so to comply would not, singly or in the aggregate,
result in a Material Adverse Effect; all of the Governmental Licenses are valid and in full
force and effect, except where the invalidity of such Governmental Licenses or the failure
of such Governmental Licenses to be in full force and effect would not, singly or in the
aggregate, result in a Material Adverse Effect; and neither the Company nor any of its
subsidiaries has received any notice of proceedings relating to the revocation or
modification of any such Governmental Licenses which, singly or in the aggregate, if the
subject of an unfavorable decision, ruling or finding, would result in a Material Adverse
Effect.
(aa) The Company and its subsidiaries have good and marketable title to all real
property owned by the Company and its subsidiaries and good title to all other properties
owned by them, in each case, free and clear of all mortgages, pledges, liens, security
interests, claims, restrictions or encumbrances of any kind except such as (a) are described
in the Preliminary Prospectus and the Prospectus or (b) do not, singly or in the aggregate,
materially affect the value of such property and do not materially interfere with the use
made and proposed to be made of such property by the Company or any of its subsidiaries; and
all of the leases and subleases material to the business of the Company and its
subsidiaries, considered as one enterprise, and under which the Company or any of its
subsidiaries holds properties described in the Preliminary Prospectus and the Prospectus,
are in full force and effect, and neither the Company nor any subsidiary has any notice of
any material claim of any sort that has been asserted by anyone adverse to the rights of the
Company or any subsidiary under any of the leases or subleases mentioned above, or affecting
or questioning the rights of the Company or any such subsidiary to the continued possession
of the leased or subleased premises under any such lease or sublease.
(bb) The Company is not and, after giving effect to the offering and exchange of the
New Notes for the Old Notes pursuant to the Offer, will not be required to be registered as
an “investment company” under the Investment Company Act of 1940, as amended (the
“Investment Company Act”).
(cc) Except as described in the Preliminary Prospectus and the Prospectus and except as
would not, singly or in the aggregate, result in a Material Adverse Effect, (A) to the
knowledge of the Company neither the Company nor any of its subsidiaries is in violation of
any federal, state, local or foreign statute, law, rule, regulation, ordinance, code, policy
or rule of common law or any judicial or administrative interpretation thereof, including
any judicial or administrative order, consent, decree or judgment, relating to pollution or
protection of human health, the environment (including, without limitation, ambient air,
surface water, groundwater, land surface or subsurface strata) or wildlife, including,
without limitation, laws and regulations relating to the release or
15
threatened release of chemicals, pollutants, contaminants, wastes, toxic substances,
hazardous substances, petroleum or petroleum products, asbestos-containing materials or mold
(collectively, “Hazardous Materials”) or to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of Hazardous Materials (collectively,
“Environmental Laws”), (B) the Company and its subsidiaries have all permits, authorizations
and approvals required under any applicable Environmental Laws and, to the knowledge of the
Company are each in compliance with their requirements, (C) there are no pending or, to the
knowledge of the Company threatened administrative, regulatory or judicial actions, suits,
demands, demand letters, claims, liens, notices of noncompliance or violation, investigation
or proceedings relating to any Environmental Law against the Company or any of its
subsidiaries and (D) to the knowledge of the Company there are no events or circumstances
that would reasonably be expected to form the basis of an order for clean-up or remediation,
or an action, suit or proceeding by any private party or governmental body or agency,
against or affecting the Company or any of its subsidiaries relating to Hazardous Materials
or any Environmental Laws.
(dd) The Company and each of the Subsidiaries maintain insurance covering its
properties, operations, personnel and businesses as the Company deems adequate; such
insurance insures against such losses and risks to an extent which the Company believes to
be adequate in accordance with customary industry practice to protect the Company and the
subsidiaries and their respective businesses; all such insurance is fully in force on the
date hereof and will be fully in force as of the Settlement Date.
(ee) Any statistical and market-related data included or incorporated by reference in
the Preliminary Prospectus and the Prospectus are based on or derived from sources that the
Company believes to be reliable and accurate, and the Company has obtained the written
consent to the use of such data from such sources to the extent required.
(ff) The Company and each of its subsidiaries maintain a system of internal accounting
controls sufficient to provide reasonable assurances that (1) transactions are executed in
accordance with management’s general or specific authorization; (2) transactions are
recorded as necessary to permit preparation of financial statements in conformity with GAAP
and to maintain accountability for assets; (3) access to assets is permitted only in
accordance with management’s general or specific authorization; and (4) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. Except as disclosed in the
Preliminary Prospectus and the Prospectus, since the end of the Company’s most recent
audited fiscal year, there has been (I) no material weakness in the Company’s internal
control over financial reporting (whether or not remediated) and (II) no change in the
Company’s internal control over financial reporting that has materially affected, or is
reasonably likely to materially affect, the Company’s internal control over financial
reporting.
The Company and its consolidated subsidiaries employ disclosure controls and procedures
that are designed to ensure that information required to be disclosed by
16
the Company in the reports that it files or submits under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the Commission’s
rules and forms, and is accumulated and communicated to the Company’s management, including
its principal executive officer or officers and principal financial officer or officers, as
appropriate, to allow timely decisions regarding disclosure.
(gg) Except as disclosed in the Preliminary Prospectus and the Prospectus, there is and
has been no failure on the part of the Company or any of the Company’s directors or
officers, in their capacities as such, to comply in all material respects with any provision
of the Xxxxxxxx-Xxxxx Act of 2002 and the rules and regulations promulgated in connection
therewith (the “Xxxxxxxx-Xxxxx Act”), including Section 402 related to loans and Sections
302 and 906 related to certifications.
(hh) Neither the Company nor, to the knowledge of the Company, any director, officer,
agent, employee, affiliate or other person acting on behalf of the Company or any of its
subsidiaries has taken any action, directly or indirectly, that would result in a violation
by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and
regulations thereunder (the “FCPA”), including, without limitation, making use of the mails
or any means or instrumentality of interstate commerce corruptly in furtherance of an offer,
payment, promise to pay or authorization of the payment of any money, or other property,
gift, promise to give, or authorization of the giving of anything of value to any “foreign
official” (as such term is defined in the FCPA) or any foreign political party or official
thereof or any candidate for foreign political office, in contravention of the FCPA and the
Company and, to the knowledge of the Company, its affiliates have conducted their businesses
in compliance with the FCPA and have instituted and maintain policies and procedures
designed to ensure, and which are reasonably expected to continue to ensure, continued
compliance therewith.
(ii) The operations of the Company are and have been conducted at all times in
compliance with applicable financial recordkeeping and reporting requirements of the
Currency and Foreign Transactions Reporting Act of 1970, as amended, the applicable money
laundering statutes of all jurisdictions, the rules and regulations thereunder and any
related or similar rules, regulations or guidelines, issued, administered or enforced by any
governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or
proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Company with respect to the Money Laundering Laws is pending or, to
the best knowledge of the Company, threatened.
(jj) Neither the Company nor, to the knowledge of the Company, any director, officer,
agent, employee, affiliate or person acting on behalf of the Company is currently a target
of any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S.
Treasury Department (“OFAC”); and the Company will not directly or indirectly use the
proceeds of the offering, or lend, contribute or otherwise make available such proceeds to
any subsidiary, joint venture partner or other person or entity, for the purpose of
financing the activities of any person currently a target of any U.S. sanctions administered
by OFAC.
17
(kk) The Company has filed and will continue to file with the Commission pursuant to
Rule 13e-4(c)(1) of the Exchange Act (or Rule 425 of the Exchange Act) all written
communications made by the Company or any affiliate of the Company in connection with or
relating to the Offer that are required to be filed with the Commission, in each case on the
date of their first use; and the Company has not made any written communications in
connection with or related to the Offer that constitutes a “prospectus” for the purposes of
Section 5(b)(1) of the Securities Act, except the Rule 165 Material.
(ll) No forward-looking statement (within the meaning of Section 27A of the Securities
Act and Section 21E of the Exchange Act) contained in each of the Preliminary Prospectus and
the Prospectus, as amended or supplemented to such date, has been made or reaffirmed without
a reasonable basis or has been disclosed other than in good faith.
(mm) The statements set forth in the Preliminary Prospectus and the Prospectus, each as
supplemented or amended on such date, under the captions “Description of Capital Stock”,
“Description of Other Indebtedness”, “Description of the New Notes” and “Description of the
Differences among the Convertible Notes”, insofar as they are descriptions of contracts,
agreements or other legal documents or describe the applicable statutes, rules and
regulations, constitute an accurate summary of the matters set forth therein in all material
respects; the statements set forth in the Preliminary Prospectus and the Prospectus, each as
supplemented or amended on such date, under the caption “Material U.S. Federal Income Tax
Considerations” and “ERISA Considerations,” insofar as they purport to constitute a summary
of matters of U.S. federal income tax law or the U.S. Employee Retirement Income Security
Act of 1974, as amended, and regulations or legal conclusions with respect thereto,
constitute an accurate summary of the matters set forth therein in all material respects.
6. Covenants of the Company
The Company covenants and agrees with you that:
(a) The Company will promptly from time to time take such action as you may reasonably request
to qualify the New Notes for offering and sale in exchange for the Old Notes pursuant to the Offer
for issuance under the securities laws of such jurisdictions as you may request and to comply with
such laws so as to permit the sales and dealings therein in such jurisdictions for as long as may
be necessary to complete the distribution of the New Notes; provided that in connection therewith
the Company shall not be required (i) to qualify as a foreign corporation or as a dealer in
securities in any jurisdiction in which it is not now so qualified, (ii) to file a general consent
to service of process in any jurisdiction where it is not now subject or (iii) to take any action
that would subject itself to taxation in any jurisdiction if it is not otherwise so subject.
(b) The Company will comply with the Securities Act and the Exchange Act, so as to permit the
completion of the Offer as contemplated in this Agreement and the Offer Material. If during the
period in which a prospectus is required by law to be delivered in connection with the exchange of
New Notes for Old Notes pursuant to the Offer, any event shall occur as a result of which, in the
judgment of the Company or in the reasonable opinion of the
18
Dealer Managers, it becomes necessary to amend or supplement the Preliminary Prospectus or the
Prospectus in order to make the statements therein, in the light of the circumstances existing at
the time the Preliminary Prospectus or the Prospectus is delivered to a holder of Old Notes, not
misleading, or, if it is necessary at any time to amend or supplement the Preliminary Prospectus or
the Prospectus to comply with any law, the Company promptly will either (i) prepare and file with
the Commission an appropriate amendment to the Registration Statement or supplement to the
Preliminary Prospectus or the Prospectus or (ii) prepare and file with the Commission an
appropriate filing under the Exchange Act which shall be incorporated by reference in the
Preliminary Prospectus or the Prospectus so that the Preliminary Prospectus or the Prospectus as so
amended or supplemented will not, in the light of the circumstances when it is so delivered, be
misleading, or so that the Preliminary Prospectus or the Prospectus will comply with the law.
(c) The Company will make generally available to its securityholders as soon as practicable,
but in any event not later than sixteen months after the effective date of the Registration
Statement (as defined in Rule 158(c) under the Securities Act), an earnings statement (which need
not be audited) of the Company and its subsidiaries, complying with Section 11(a) of the Securities
Act and the rules and regulations thereunder (including, at the option of the Company, Rule 158).
(d) The Company will not take, directly or indirectly, any action designed to or that would
constitute or that might reasonably be expected to cause or result in stabilization or
“manipulation” (as such term is commonly understood under federal or state securities laws) of the
price of any securities of the Company to facilitate the Offer or encourage tenders by the holders
of the Old Notes in the Offer.
(e) The Company shall provide to you promptly any other information relating to the Offer that
you may from time to time reasonably request, and shall advise you promptly if any information
previously provided becomes inaccurate in any material respect or is required to be updated.
(f) The Company shall use its best efforts to cause the Registration Statement and any
post-effective amendments to the Registration Statement to promptly become effective; and the
Company will prepare and file, as required, any and all necessary amendments and supplements to any
of the Offer Material and, if required by the Securities Act or the Exchange Act, will use its best
efforts to cause such Offer Material to promptly become effective.
(g) The Company will accept Old Notes tendered for exchange in accordance with the terms and
subject to the conditions of the Offer set forth in the Offer Material.
(h) On or prior to the Settlement Date, (i) the Company shall have taken all action necessary
to cause the New Notes to be eligible for clearance and settlement through the facilities of DTC;
and (ii) the Company shall authorize you to communicate with the Exchange Agent and the Information
Agent to make appropriate arrangements, to the extent applicable, with DTC to allow for the
book-entry movement of Old Notes tendered for exchange between depositary participants and the
Exchange Agent.
19
7. Conditions of Obligation
The obligation of each of you to act as a Dealer Manager hereunder shall at all times be
subject, in your discretion, to the conditions that:
(a) All representations, warranties and other statements of the Company contained
herein are now, and at all times during the Offer and at the Settlement Date will be, true
and correct.
(b) The Registration Statement and any post-effective amendment thereto shall have
become effective on or prior to the Expiration Date; the Prospectus will have been either
(i) filed with the Commission pursuant to Rule 424(b) within the applicable time period
prescribed for such filing by the rules and regulations under the Securities Act or (ii)
included in the Registration Statement; no stop order suspending the effectiveness of the
Registration Statement or any post-effective amendment thereto, or any part thereof will
have been issued and no proceeding for that purpose will have been initiated or, to the
knowledge of the Company, threatened by the Commission; and all requests for additional
information on the part of the Commission will have been complied with to your reasonable
satisfaction; to the extent required by the Securities Act, all other Offer Material,
including, without limitation, the Schedule TO and any Rule 165 Material, shall have been
filed within the applicable time period prescribed for such filing under the Securities Act.
(c) The Company at all times during the Offer and at the Settlement Date shall have
performed in all material respects all of its obligations hereunder theretofore required to
have been performed and the statements of the Company and its officers made in any
certificates delivered pursuant to this Agreement shall be true and correct.
(d) On each of the Commencement Date and the Settlement Date, Blank Rome LLP, counsel
for the Company, shall have furnished to you, as Dealer Managers, its opinions, dated the
Commencement Date, or the Settlement Date, as the case may be, in form and substance
satisfactory to you, substantially to the effect set forth in Exhibit A-1 hereto. In the
event of an amendment of the Offer, such counsel will also furnish you, from time to time,
up to the completion of the Offer, any further opinion of counsel as you may reasonably
request, in form and substance satisfactory to you, substantially to the effect set forth in
Exhibit A-1 hereto. Such counsel may state that, insofar such opinions involve factual
matters, they have relied, to the extent they deem proper, on certificates of officers of
the Company and certificates of public officials.
(e) On each of the Commencement Date and the Expiration Date (delivered by 8:00 p.m.
(Eastern time) on the Expiration Date, to be held in escrow pending the expiration of the
Offer and the satisfaction or waiver of all conditions to the Offer), Blank Rome LLP,
counsel for the Company, shall have furnished to you, as Dealer Managers, its negative
assurance letter, dated the Commencement Date, or the Expiration Date, as the case may be,
in form and substance satisfactory to you, substantially to the effect set forth in Exhibit
A-2 hereto. In the event of an amendment of the Offer, such counsel will also furnish you,
from time to time, up to the completion of the Offer, any further
20
negative assurance letters as you may reasonably request, in form and substance
satisfactory to you, substantially to the effect set forth in Exhibit A-2 hereto.
(f) On each of the Commencement Date and the Settlement Date, Xxxxxx X. Xxxxxx,
Executive Vice President, General Counsel and Secretary of the Company, shall have furnished
to you, as Dealer Managers, its opinions, dated the Commencement Date, or the Settlement
Date, as the case may be, in form and substance satisfactory to you, substantially to the
effect set forth in Exhibit A-3 hereto. In the event of an amendment of the Offer, such
counsel will also furnish you, from time to time, up to the completion of the Offer, any
further opinion of counsel as you may reasonably request, in form and substance satisfactory
to you, substantially to the effect set forth in Exhibit A-3 hereto. Such counsel may state
that, insofar such opinions involve factual matters, he has relied, to the extent he deems
proper, on certificates of officers of the Company and certificates of public officials.
(g) You shall have received from Xxxxxxx Xxxxxxx & Xxxxxxxx LLP, counsel for the Dealer
Managers, such opinions, dated as of the Commencement Date and the Settlement Date, with
respect to such matters as you may require, and the Company shall have furnished to such
counsel such documents as they request for the purpose of enabling them to pass upon such
matters. In the event of an amendment of the Offer, such counsel will also furnish you,
from time to time, up to the completion of the Offer, any further opinion of counsel as you
may reasonably request.
You shall also have received from Xxxxxxx Xxxxxxx & Xxxxxxxx LLP, counsel for the
Dealer Managers, such negative assurance letter, dated as of the Commencement Date and the
Expiration Date (and delivered by 8:00 p.m. (Eastern time) on the Expiration Date, to be
held in escrow pending the expiration of the Offer and the satisfaction or waiver of all
conditions to the Offer), with respect to such matters as you may require, and the Company
shall have furnished to such counsel such documents as they request for the purpose of
enabling them to deliver such letter. In the event of an amendment of the Offer, such
counsel will also furnish you, from time to time, up to the completion of the Offer, any
further negative assurance letters of counsel as you may reasonably request.
(h) You shall have received (i) a letter, dated as of the Commencement Date, of
Deloitte & Touche (“D&T”) confirming that they are a registered public accounting firm and
independent registered public accountants as required by the Securities Act, and in form and
substance satisfactory to you, substantially to the effect set forth in Exhibit B hereto and
(ii) a letter, dated the Expiration Date (and delivered by 8:00 p.m. (Eastern time) on the
Expiration Date, to be held in escrow pending the expiration of the Offer and the
satisfaction or waiver of all conditions to the Offer), of D&T confirming that they are a
registered public accounting firm and independent registered public accountants as required
by the Securities Act, and in form and substance satisfactory to you, substantially to the
effect set forth in Exhibit B hereto, except that such letter will also confirm that D&T has
performed the procedures for the three and nine-month periods ended September 30, 2009 and
2008 that are customarily included in accountants’
21
comfort letters, including a SAS No. 100 review of such interim financial information,
and containing such other customary changes to reflect a different “cutoff date”.
(i) On each of the Commencement Date, the Expiration Date and the Settlement Date, you
shall have received certificates, dated as of such date, of an executive officer of the
Company with specific knowledge of the Company’s financial affairs, in which such officer
shall state that to the best of his or her knowledge, after reasonable investigation: (i)
the representations and warranties of the Company in this Agreement are true and correct at
and as of such dates; (ii) the Company has complied in all material respects with all
agreements and satisfied all conditions on its part to be performed or satisfied hereunder
at or prior to such date; (iii) that the matters set forth in subsection (b) of this Section
7 shall be true and correct; (iv) no stop order suspending the effectiveness of the
Registration Statement has been issued and no proceedings for that purpose have been
instituted or, to his or her knowledge, are contemplated by the Commission; and (v)
subsequent to the date of the most recent financial statements contained, or incorporated by
reference, in the Preliminary Prospectus and the Prospectus, as amended or supplemented at
the Expiration Date, there has not occurred any material adverse change, or any development
or event involving a prospective material adverse change, in or affecting the condition
(financial or otherwise), results of operations, business, properties or prospects of the
Company and its subsidiaries, taken as a whole, except as set forth in the Registration
Statement and the Prospectus or as described in such certificate.
(j) There shall have been (i) no downgrading in the rating accorded the Company’s debt
(including convertible debt) securities or preferred stock by any “nationally recognized
statistical rating organization,” as that term is defined by the Commission for purposes of
Rule 436(g)(2) under the Securities Act, and (ii) no such organization shall have publicly
announced that it has under surveillance or review, with possible negative implications, its
rating of any of the Company’s debt (or convertible debt) securities or preferred stock.
(k) No action shall have been taken and no statute, rule, regulation or order shall
have been enacted, adopted or issued by any federal, state or foreign governmental or
regulatory authority that would prevent the making or consummation of the Offer, the
issuance of the New Notes pursuant to the Offer, or prevent the Dealer Managers from
rendering services pursuant to this Agreement or continuing so to act, as the case may be;
and no injunction or order of any federal, state or foreign court shall have been issued
that would prevent the making or consummation of the Offer or the issuance of the New Notes,
or prevent the Dealer Managers from rendering services pursuant to this Agreement or
continuing so to act, as the case may be.
(l) You shall have received all counterpart originals or certified or other copies of
the Consent under the Company’s U.S. Credit Agreement (as defined in the Preliminary
Prospectus and the Prospectus).
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(m) As of the Settlement Date, the Conversion Shares shall have been approved for
listing on the NYSE, subject only to notice of issuance at or prior to the time of issuance.
(n) The Company shall have furnished to you such further certificates and documents
confirming the representations and warranties, covenants and conditions contained herein and
related matters as you may reasonably have requested.
8. Indemnity and Survival of Certain Provisions
(a) The Company agrees (i) to indemnify and hold each of the Dealer Managers, its partners,
members, directors, officers, employees, agents, affiliates and each person, if any, who controls
such Dealer Manager within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, harmless against any and all losses, damages, liabilities or claims (or actions in
respect thereof) (A) that arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in the Preliminary Prospectus, the Prospectus, the
Registration Statement or any other Offer Material, or any of the documents referred to therein or
in any amendment or supplement to any of the foregoing, or that arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading; provided, however, that the Company shall not be required to indemnify and
hold harmless any Indemnified Party against any and all losses, damages, liabilities or claims (or
actions in respect thereof) that arise out of or are based upon any statements or omissions made in
reliance upon and in conformity with information furnished to the Company in writing by such Dealer
Manager expressly for use in the Preliminary Prospectus, the Prospectus, the Registration Statement
or any other Offer Material, or any of the documents referred to therein or in any amendment or
supplement to any of the foregoing, which information the parties agree is limited to the
following: the names of the Dealer Managers on the front cover and the back cover of the
Preliminary Prospectus and the Prospectus and the back page of the Letter of Transmittal and the
third paragraph under the caption “The Dealer Managers” in the Preliminary Prospectus and the
Prospectus (the “Dealer Manager Information”), (B) that arise out of or are based upon any breach
by the Company of any representation or warranty or failure by the Company to comply with any
obligation set forth herein or (C) that arise out of or are based upon a withdrawal, rescission,
termination or modification of or a failure to make or consummate the Offer; and (ii) to indemnify
and hold such Dealer Manager harmless against any and all other losses, damages, liabilities or
claims (or actions in respect thereof) that otherwise arise out of or are based upon or asserted
against such Dealer Manager by any person, including stockholders of the Company, in connection
with or as a result of it acting as Dealer Manager or rendering services in connection with the
Offer or that arise in connection with any other matter referred to in this Agreement, except to
the extent that any such losses, damages, liabilities or claims referred to in this clause (ii) are
finally judicially determined to have resulted primarily from such Dealer Manager’s gross
negligence or willful misconduct in performing the services that are the subject of this Agreement.
In the event that an Indemnified Party becomes involved in any capacity in any action, proceeding
or investigation brought by or against any person, including stockholders of the Company, in
connection with any matter referred to in this Agreement, the Company also agrees periodically to
reimburse such Indemnified Party for its legal and other expenses (including the cost of any
investigation
23
and preparation) incurred in connection therewith. The Company also agrees that no
Indemnified Party shall have any liability to the Company or any person asserting claims on behalf
of or in right of the Company for or in connection with any matter referred to in this Agreement
except (i) to the extent that any loss, damage, expense, liability or claim incurred by the Company
is finally judicially determined to have resulted primarily from such Dealer Manager’s gross
negligence or willful misconduct in performing the services that are the subject of this Agreement
or (ii) to the extent that any loss, damage, expense, liability or claim (or actions in respect
thereof) arises out of or is based upon (A) any untrue statement of a material fact made in any
Offer Material or (B) any omission to state in the Offer Material a material fact required to be
stated therein or necessary in order to make the statements made therein, in light of the
circumstances under which they are made, not misleading, if in either case such statement or
omission was made in reliance upon and in conformity with the Dealer Manager Information. For
purposes of Section 8 hereof, each person entitled to seek indemnification from the Company
pursuant to this Section 8(a) shall be referred to as an “Indemnified Party” and the Company shall
be referred to as an “Indemnifying Party.”
(b) Each of the Dealer Managers agrees, severally and not jointly, to indemnify and hold
harmless the Company, its directors and officers, and each person, if any, who controls the Company
within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act against
any and all losses, damages, liabilities or claims (or actions in respect thereof), to the same
extent as the indemnity set forth in clause (i)(A) of Section 8(a) above, but only with reference
to the Dealer Manager Information. For purposes of Section 8 hereof, each person entitled to seek
indemnification from a Dealer Manager pursuant to this Section 8(b) shall be referred to as an
“Indemnified Party” and such Dealer Manager shall be referred to as an “Indemnifying Party.”
(c) Promptly after receipt by an Indemnified Party of notice of its involvement in any action,
proceeding or investigation, such Indemnified Party shall notify the Indemnifying Party in writing
of such involvement, but the failure so to notify the Indemnifying Party shall not relieve the
Indemnifying Party from any liability which it may otherwise have to the Indemnified Party under
subsection (a) or (b) of this Section 8, as applicable, except to the extent that the Indemnifying
Party suffers material prejudice as a result of such failure (through the forfeiture of substantive
rights or defenses), and in no event shall such failure relieve the Indemnifying Party from any
obligation to provide reimbursement and contribution to the Indemnified Party. In case any such
action is brought against any Indemnified Party and it notifies the Indemnifying Party of the
commencement thereof, the Indemnifying Party will be entitled to participate therein and to assume
the defense thereof, with counsel satisfactory to such Indemnified Party (who shall not, except
with the consent of the Indemnified Party, be counsel to the Indemnifying Party), and after notice
from the Indemnifying Party to such Indemnified Party of its election so to assume the defense
thereof, the Indemnifying Party will not be liable to such Indemnified Party under this Section 8
for any legal or other expenses subsequently incurred by such Indemnified Party in connection with
the defense thereof other than reasonable costs of investigation. The Indemnifying Party shall
not, without the prior written consent of the Indemnified Party, effect any settlement of any
pending or threatened action in respect of which any Indemnified Party is or could have been a
party and indemnity could have been sought hereunder by such Indemnified Party unless such
settlement (i) includes an unconditional release of such Indemnified Party from all liability on
any claims that are the subject matter of such
24
action and (ii) does not include a statement as to, or an admission of, fault, culpability or
a failure to act by or on behalf of an Indemnified Party. In no event shall any Indemnifying Party
be liable for the fees and expenses of more than one counsel (in addition to one local counsel) for
all Indemnified Parties in connection with any one action or separate but similar or related
actions in the same jurisdiction arising out of the same general allegations or circumstances
unless the named parties to any such proceeding (including any impleaded parties) include both the
Company and the Indemnified Party and representation of either party by the same counsel, in the
reasonable judgment of the Dealer Managers, would be inappropriate because of actual or potential
conflicts of interest between them.
(d) If for any reason the indemnification provided for in subsection (a) of this Section 8 is
unavailable or insufficient to hold an Indemnified Party harmless, then each Indemnifying Party
shall contribute to the amount paid or payable by an Indemnified Party as a result of such loss,
damage, expense, liability or claim (or action in respect thereof) referred to therein in such
proportion as is appropriate to reflect the relative benefits of the Company and its stockholders,
on the one hand, and the Dealer Managers, on the other hand, in the matters contemplated by this
Agreement as well as the relative fault of the Company and the Dealer Managers with respect to such
loss, damage, expense, liability or claim (or action in respect thereof) and any other relevant
equitable considerations. The relative benefits of the Company and its stockholders, on the one
hand, and the Dealer Managers, on the other hand, in the matters contemplated by this Agreement
with respect to the Offer, shall be deemed to be in the same proportion as the maximum aggregate
principal amount of the Old Notes subject to the Offer bears to the maximum aggregate fee proposed
to be paid to the Dealer Managers pursuant to Section 4(a) of this Agreement. The relative fault
of the Company and the Dealer Managers shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by, or relating to, the Company
and its affiliates or the Dealer Managers and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. The amount paid by
an Indemnified Party as a result of the losses, claims, damages or liabilities referred to in the
first sentence of this subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such Indemnified Party in connection with investigating or defending any
action or claim which is the subject of this subsection (d). The Company and the Dealer Managers
agree that it would not be just and equitable if contribution pursuant to this subsection (d) were
determined by pro rata allocation or by any other method of allocation which does not take account
of the equitable considerations referred to in this subsection (d).
(e) The reimbursement, indemnity and contribution obligations of an Indemnifying Party under
this Section 8 shall be in addition to any liability that such Indemnifying Party may otherwise
have, shall extend upon the same terms and conditions to any Indemnified Party and shall be binding
upon and inure to the benefit of any successors, assigns, heirs and personal representatives of
such Indemnifying Party and any Indemnified Party. Prior to entering into any agreement or
arrangement with respect to, or effecting, any proposed sale, exchange, dividend or other
distribution or liquidation of all or a significant portion of its assets in one or a series of
transactions or any significant recapitalization or reclassification of its outstanding securities
that does not directly or indirectly provide for the assumption of the obligations of the Company
set forth in this Section 8, the Company will notify the Dealer
25
Managers in writing thereof (if not previously so notified) and, if requested by the Dealer
Managers, shall arrange in connection therewith alternative means of providing for the obligations
of the Company set forth in this Section 8, including the assumption of such obligations by another
party, insurance, surety bond or the creation of an escrow, in each case in an amount and upon
terms and conditions satisfactory to the Dealer Managers.
9. Termination; Survival
(a) This Agreement shall terminate upon the expiration, termination or withdrawal of the Offer
or upon withdrawal by you pursuant to Section 3(c) hereof.
(b) The agreements contained in Section 4, Section 8, Section 9(b) and Section 10, and the
representations and warranties of the Company set forth in Section 5 hereof, shall survive any
termination or cancellation of this Agreement, any completion of, or your withdrawal from, the
engagement provided by this Agreement, any investigation made by or on behalf of the Dealer
Managers or any other Indemnified Party, any termination, withdrawal or expiration of the Offer and
any exchange of New Notes for Old Notes, whether pursuant to the Offer or otherwise.
10. Miscellaneous
(a) This Agreement is made solely for the benefit of you, the Company and any partner,
director, officer, agent, employee, controlling person or affiliate referred to in Section 8
hereof, and their respective successors, assigns, and legal representatives, and no other person
shall acquire or have any right under or by virtue of this Agreement.
(b) In the event that any provision hereof shall be determined to be invalid or unenforceable
in any respect, such determination shall not affect such provision in any other respect or any
other provision hereof, which shall remain in full force and effect.
(c) Except as otherwise expressly provided in this Agreement, whenever notice is required by
the provisions of this Agreement to be given to (i) the Company, such notice shall be in writing
addressed to the Company at the address set forth in the Prospectus, Attention: Chief Financial
Officer, with a copy to Blank Rome LLP, Xxx Xxxxx Xxxxxx, Xxxxxxxxxxxx, XX 00000, facsimile number
000-000-0000, Attention: Xxxx Xxxxxxxx; and (ii) you, such notice shall be in writing addressed to
Xxxxxxx, Xxxxx & Co., at 00 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, facsimile number (000)
000-0000, Attention: Registration Department and X.X. Xxxxxx Securities Inc., 000 Xxxxxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx 00000, facsimile number (000) 000-0000, Attention: Equity Capital
Markets/Convertibles, with a copy to Xxxxxxx Xxxxxxx & Xxxxxxxx LLP, 000 Xxxxxxxxx Xxxxxx, Xxx
Xxxx, Xxx Xxxx 00000, facsimile number (000) 000-0000, Attention: Xxxx X. Xxxxxxx.
(d) This Agreement contains the entire understanding of the parties with respect to your
acting as Dealer Managers for the Offer, superseding any prior agreements with respect thereto and
may not be modified or amended except in writing executed by the parties hereto. This Agreement
may be executed in any number of separate counterparts, each of which shall be an original, but all
such counterparts shall together constitute one and the same agreement.
26
(e) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK. Any right to trial by jury with respect to any action or proceeding arising in
connection with or as a result of either your engagement or any matter referred to in this
agreement is hereby waived by the parties hereto. The Company agrees that any suit or proceeding
arising in respect of this agreement or our engagement will be tried exclusively in the U.S.
District Court for the Southern District of New York or, if that court does not have subject matter
jurisdiction, in any state court located in The City of New York and the Company agrees to submit
to the jurisdiction of, and to venue in, such courts.
(f) Each of the Dealer Managers does not provide accounting, tax or legal advice. The Company
acknowledges and agrees that the Dealer Managers, in providing services to the Company in
connection with the Offer, including in acting pursuant to the terms of this Agreement, has acted
and is acting as an independent contractor and not as a fiduciary and the Company does not intend
the Dealer Managers to act in any capacity other than as an independent contractor, including as a
fiduciary or in any other position of higher trust. The Company has consulted its own legal and
financial advisors to the extent it deemed appropriate. The Company agrees that it will not claim
that the Dealer Managers have rendered advisory services of any nature or respect, or owe a
fiduciary or similar duty to the Company, in connection with the Offer or the process leading
thereto. The Company further acknowledges and agrees that (i) each of the Dealer Managers is a
securities firm engaged in securities trading and brokerage activities and providing investment
banking and financial advisory services, and in the ordinary course of business, each of the Dealer
Managers and their respective affiliates may at any time hold long or short positions, and may
trade or otherwise effect transactions, for their own accounts or the accounts of customers, in
debt or equity securities of the Company, its affiliates or other entities that may be involved in
the transactions contemplated hereby; and (ii) none of the Dealer Managers is an advisor as to
legal, tax, accounting or regulatory matters in any jurisdiction, and the Company must consult with
its own advisors concerning such matters and will be responsible for making its own independent
investigation and appraisal of the transactions contemplated hereby, and none of the Dealer
Managers shall have any responsibility or liability to the Company with respect thereto.
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Please sign and return to us a duplicate of this letter, whereupon it will become a binding
agreement.
Very truly yours, GENERAL CABLE CORPORATION |
||||
By | /s/ Xxxxx X. Xxxxxxxx | |||
Name: | Xxxxx X. Xxxxxxxx | |||
Title: | Executive Vice President, Chief Financial Officer and Treasurer | |||
The undersigned hereby confirms that the foregoing letter, as
of the date thereof, correctly sets forth the agreement among
the Company and the undersigned. /s/ Xxxxxxx Xxxxx & Co. X.X. XXXXXX SECURITIES INC. |
||||
By | /s/ Xxxxxxx X’ Xxxxxxx | |||
Name: | Xxxxxxx X’ Xxxxxxx | |||
Title: | Managing Director | |||