1
Exhibit 2.3
CONFORMED COPY
Dated 6 April 1999
BICC PLC
and
GK TECHNOLOGIES, INCORPORATED
and
GENERAL CABLE CORPORATION
SALE AND PURCHASE AGREEMENT
relating to
the Energy Cables Operations of
BICC plc
Linklaters & Paines
One Xxxx Xxxxxx
Xxxxxx XX0X 0XX
tel:(x00)000 000 0000
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AGREEMENT FOR THE SALE AND PURCHASE OF THE ENERGY CABLES OPERATIONS OF BICC PLC
THIS AGREEMENT is made on 6 April 1999
BETWEEN:
(1) BICC PLC a company incorporated in England and Wales, whose registered
office is at Devonshire House, Mayfair Place, London WIX 5FH (the
VENDOR); and
(2) GK TECHNOLOGIES, INCORPORATED a company incorporated in New Jersey, the
United States, whose principal place of business is at 0 Xxxxxxxxx
Xxxxx, Xxxxxxxx Xxxxxxx, Xxxxxxxx, 00000 (the PURCHASER); and
(3) GENERAL CABLE CORPORATION a company incorporated in Delaware, the
United States, whose principal place of business is at 0 Xxxxxxxxx
Xxxxx, Xxxxxxxx Xxxxxxx, Xxxxxxxx, 00000 (the PURCHASER'S GUARANTOR).
IT IS AGREED as follows:
1. INTERPRETATION
In this Agreement, including its Schedules, the headings shall not
affect its interpretation and, unless the context otherwise requires,
the provisions in this Clause 1 apply:
1.1 DEFINITIONS
ACTUAL INDEBTEDNESS STATEMENTS means the Intra-Group Indebtedness
Statement, the Third Party Indebtedness Statement and the Cash
Statement;
AGREED TERMS means in relation to any document such document in the
terms agreed between the parties and signed by or on behalf of the
Purchaser's Lawyers and the Vendor's Lawyers or the Vendor's Property
Lawyers for the purposes of identification as that document may be
amended by agreement in writing between the Purchaser and the Vendor
from time to time;
ASSETS means the Business Sellers' Assets and all the property, rights
and assets owned and used by any of the Group Companies exclusively or
primarily in
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connection with the Operations to be sold pursuant to this Agreement or
any Subsidiary Agreement;
ASSOCIATED COMPANY means a company which is a subsidiary of the party
concerned or which is a holding company of such party or a subsidiary
of such holding company;
ASSUMED LIABILITIES means the Liabilities of any of the Business
Sellers to be assumed by a Relevant Purchaser under Clause 2.2 and
Assumed Liability means any one of them;
BALANCE SHEET DATE means 31 December 1998;
BUSINESSES means those businesses carried on by the Business Sellers
and comprised in the Operations (including the Assumed Liabilities),
brief details of which are contained or referred to in Part 2 of
Schedule 2 and BUSINESS means any one of them;
BUSINESS DAY means a day on which banks are open for business in London
and New York City (excluding Saturdays, Sundays and public holidays);
BUSINESS SELLERS has the meaning given to it in the definition of
Relevant Seller;
BUSINESS SELLERS' ASSETS means all the property, rights and assets
forming part of the Businesses to be sold under this Agreement or any
Subsidiary Agreement;
BUSINESS SELLERS' CASH BALANCES means cash in hand, or credited to any
account with a bank, and securities of any description held by or on
behalf of any of the Business Sellers as at close of business on the
Completion Date;
BUSINESS SELLERS' INTELLECTUAL PROPERTY means all rights and interests
owned by any of the Business Sellers in Intellectual Property (details
of which are set out in Parts A, B and C of Schedule 15) and all other
Intellectual Property which at or before Completion is owned by a
member of the Vendor's Group and used exclusively or primarily in
connection with the Operations;
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BUSINESS SELLERS' KNOW-HOW means all rights and interests owned by any
member of the Vendor's Group in Know-how which at or before Completion
is used exclusively or primarily in connection with the Operations;
BUSINESS SELLERS' LEASED PROPERTIES means the Leased Properties owned
by any Business Sellers and BUSINESS SELLER'S LEASED PROPERTY means any
of them;
BUSINESS SELLERS' MOTOR VEHICLES means all the motor vehicles owned by
any of the Business Sellers and used exclusively or primarily in
connection with the Operations at Completion;
BUSINESS SELLERS' MOVEABLE ASSETS means the Business Sellers' Plant and
Machinery, the Business Sellers' Office Equipment and the Business
Sellers' Motor Vehicles;
BUSINESS SELLERS' OFFICE EQUIPMENT means the Office Equipment owned by
any of the Business Sellers and used exclusively or primarily in
connection with the Operations at Completion but excluding Office
Equipment forming part of any of the Properties;
BUSINESS SELLERS' PLANT AND MACHINERY means the Plant and Machinery
owned by any of the Business Sellers and used exclusively or primarily
in connection with the Operations at Completion but excluding Plant and
Machinery forming part of any of the Properties;
BUSINESS SELLERS' PROPERTIES means the Properties owned or leased by
any Business Sellers;
CASH DETERMINATION DATE means the date on which the process described
in Part 2 of Schedule 7 for the preparation of the Cash Statement is
complete;
CASH STATEMENT means the statement of the Relevant Group Companies'
Cash Balances to be prepared pursuant to Clause 9.5 in accordance with
the provisions of Part 2 of Schedule 7;
CLAIMS means all rights and claims of any of the Business Sellers
arising at any time (whether before or after Completion) out of or in
connection with the Operations
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(whether arising under any warranties, conditions, guarantees,
indemnities, insurance policies, contracts, agreements (in each case
whether express or implied) or otherwise howsoever) in so far as they
relate exclusively (or primarily) to any of the Business Sellers'
Assets or any Assumed Liability;
COMBINED ACCOUNTS means the aggregated accounts relating to the
Operations extracted from those audited by Xxxxxx Xxxxxxxx relating to
the Global Operations for the twelve-month financial period ended on
the Balance Sheet Date in the agreed terms;
COMPANIES means the companies or partnership interests listed in column
(2) of Part 1, paragraph 1 of Schedule 2, and Company means any one of
them;
COMPANIES EMPLOYEES means the persons employed by any of the Group
Companies at Completion and, where applicable, at any Subsequent
Completion;
COMPLETION means completion of the sale and purchase of the Shares,
Businesses and Assets in the Jurisdictions specified in Part A of Part
1 of Schedule 6 and of any other Shares the sale and purchase of which
is completed on the same date pursuant to Clause 6.1 and Schedule 6;
COMPLETION DATE means the date on which Completion takes place;
CONTRACTS means (i) the Customer Contracts, the Supplier Contracts and
the Licence Agreements; (ii) all other contracts, undertakings,
arrangements and agreements entered into prior to Completion by or on
behalf of any of the Business Sellers exclusively or primarily in
connection with the Operations in each case to the extent that at
Completion the same remain to be completed or performed or remain in
force but excluding this Agreement, the Subsidiary Agreements and
employment and other agreements with Employees;
CUSTOMER CONTRACTS means all contracts and agreements entered into
prior to Completion by or on behalf of any of the Business Sellers with
customers for the manufacture and/or sale, letting on hire, rental of
goods or other supply or the provision of services by any of the
Business Sellers exclusively or primarily in
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connection with the Operations in each case to the extent that at
Completion there are any obligations relating thereto (other than
obligations as to the warranting or guaranteeing of goods or services
supplied or provided prior to the date hereof) which remain to be
completed or performed by the relevant Business Seller;
DATA ROOM means the data room at the offices of the Vendor's Lawyers;
DISCLOSURE LETTER means the letter of even date with this Agreement in
agreed terms from the Vendor to the Purchaser disclosing (i)
information constituting exceptions to the Warranties and (ii) details
of other matters referred to in this Agreement;
EMPLOYEE BENEFIT ARRANGEMENTS means the schemes or arrangements
operated by the Business Sellers or Group Companies or in which any
Business Seller or Group Company participates in respect of any
Employee or any past employee of a Group Company or persons dependent
on any such Employee or past employee providing for benefits payable on
retirement, death, disability or voluntary withdrawal from, or
involuntary termination of, employment (other than State or statutory
or other mandatory agreements (the STATE SCHEMES) providing social
security, unemployment insurance, workers' compensation and other
benefits payable on retirement, death, disability or voluntary
withdrawal from, or involuntary termination of, employment);
EMPLOYEES means the Companies Employees and all the persons employed by
any of the Business Sellers wholly in connection with the Businesses as
at Completion and, where applicable, at any Subsequent Completion;
EMPLOYMENT COSTS means a sum equivalent to the aggregate of (i) the
amount payable or paid in respect of the employment of an Employee
(including, but not limited to, salary, wages, tax and social security
contributions, employer's pension contributions, bonus, insurance
premium, payments or allowances or any other consideration for
employment) and (ii) the cost of providing any non-cash benefits, which
the employer is required to provide, by law or contract in connection
with such employment (including, but not limited to, other employee
benefit provisions);
EMPLOYMENT LIABILITIES means in relation to any Employee, any and all
Losses arising out of or connected with his or her employment or the
employment
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relationship, or termination of his or her employment, or of the
employment relationship (including, but not limited to, all Losses in
connection with any claim for redundancy pay, or damages or
compensation for unfair or wrongful dismissal or breach of contract);
ENCUMBRANCE means any claim, charge, mortgage, security, lien, option,
equity, power of sale, hypothecation or other third party rights;
EQUITY SHARE CAPITAL means, in relation to a company, its issued share
capital excluding any part of that capital which, neither as respects
dividends nor as respects capital, carries any right to participate
beyond a specified amount in a distribution;
ESTIMATED CASH means the estimate of the aggregate of the Relevant
Group Companies' Cash Balances set out in the Estimated Cash Statement;
ESTIMATED CASH STATEMENT means the statement of Estimated Cash to be
prepared pursuant to Clause 5.5 in accordance with the provisions of
Part 2 of Schedule 7;
ESTIMATED INDEBTEDNESS STATEMENTS means the Expected Intra-Group
Indebtedness Statement, the Estimated Third Party Indebtedness
Statement and the Estimated Cash Statement;
ESTIMATED THIRD PARTY INDEBTEDNESS means the estimate of Third Party
Indebtedness set out in the Estimated Third Party Indebtedness
Statement;
ESTIMATED THIRD PARTY INDEBTEDNESS STATEMENT means the statement of
Estimated Third Party Indebtedness to be prepared pursuant to Clause
5.5 in accordance with the provisions of Part 2 of Schedule 7;
EUROPEAN COUNTRY means any member state of the European Union at the
date of this Agreement;
EUROPEAN EMPLOYEE means any Employee ordinarily working in any European
Country including any such employee who is temporarily seconded on an
ex-patriate basis to any of the Group Companies (not being a Companies
Employee) and whose name is on the list in the agreed terms, which list
shall be updated to Completion to
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reflect changes in the ordinary course of business between the date of
this Agreement and the Completion Date;
EXCLUDED ASSETS means the assets excluded from the sale and purchase
pursuant to this Agreement and the Subsidiary Agreements and described
or referred to in Schedule 17;
EXCLUDED LIABILITIES means all Liabilities of any Business Seller
except for any Assumed Liabilities;
EXPECTED INTRA-GROUP INDEBTEDNESS means the expected Intra-Group
Indebtedness set out in the Expected Intra-Group Indebtedness
Statement;
EXPECTED INTRA-GROUP INDEBTEDNESS STATEMENT means the statement of
Expected Intra-Group Indebtedness to be prepared pursuant to Clause 5.5
in accordance with the provisions of Part 2 of Schedule 7;
GENERAL SERVICES AND SUPPLY AGREEMENTS means the various service and
supply agreements to be entered into between the members of the
Vendor's Group, the Relevant Business Sellers and certain other parties
(as the case may be) covering such matters and in such terms as the
Purchaser may reasonably consider appropriate having regard to the
terms of such agreements which may have been previously negotiated with
third parties;
GLOBAL OPERATIONS means the Operations together with the "Operations"
(as such term is defined in the North American Sale and Purchase
Agreement) taken as a whole;
GOODWILL means the goodwill of each of the Business Sellers in
connection with the Operations or part thereof together with the
exclusive right (so far as the relevant Business Seller can grant the
same) for the Relevant Purchaser to represent itself as carrying on the
Operations or relevant part thereof in succession to the relevant
Business Seller;
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GROUP OR GROUP COMPANIES means each of the Companies and the
Subsidiaries and GROUP COMPANY means any one of them but shall exclude
any Company or Subsidiary in respect of which Subsequent Completion
does not take place;
INTELLECTUAL PROPERTY means trade marks, service marks, trade names,
logos, get-up, patents, inventions, registered and unregistered design
rights, copyrights, semi-conductor topography rights, rights of
extraction relating to databases and all other similar proprietary
rights which may subsist in any part of the world (but excluding
Know-how) including, where such rights are obtained or enhanced by
registration, any registration of such rights and applications and
rights to apply for such registrations;
INTERNAL REORGANISATIONS means the pre-Completion internal fiscal and
operational reorganisations of the Vendor's Group involving the Group
Companies and the Businesses referred to in Schedule 4;
INTRA-GROUP INDEBTEDNESS means the aggregate net amount of all
outstanding loans of the Relevant Group Companies from or to any member
of the Vendor's Group (save that in the case of Majority Owned Group
Companies only the Proportionate Share of such outstanding loans shall
be included), as at the close of business on the Completion Date and
prepared pursuant to Clause 9.5 and Part 2 of Schedule 7 but excluding
any Relevant Group Companies' Cash Balances, Third Party Indebtedness
and trading debt or liabilities arising in the ordinary course;
INTRA-GROUP INDEBTEDNESS DETERMINATION DATE means the date on which the
process described in Part 2 of Schedule 7 for the preparation of the
Intra-Group Indebtedness Statement is complete;
INTRA-GROUP INDEBTEDNESS STATEMENT means the statement of Intra-Group
Indebtedness to be prepared pursuant to Clause 9.5 in accordance with
the provisions of Part 2 of Schedule 7;
JURISDICTIONS means the United Kingdom, Italy, Spain, Portugal,
Germany, Norway, Brazil, Dubai, Zimbabwe, Egypt, Angola, Mozambique,
India, New Zealand, Malaysia, Singapore, Fiji, Indonesia, China, Saudi
Arabia, Argentina, Bahrain, Taiwan, Thailand, Hong Kong and Jersey;
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KNOW-HOW means confidential industrial, financial and commercial
information and techniques in any form (including paper, electronically
stored data, magnetic media, film and microfilm) and information and
techniques not reduced to a tangible form including (without limiting
the foregoing) drawings, formulae, test results, reports, project
reports and testing procedures, shop practices, instruction and
training manuals, tables of operating conditions, market forecasts,
specifications, quotations, tables, lists and particulars of customers
and suppliers, marketing methods and procedures and advertising copy;
LEASE means the lease of the relevant Business Seller's Leased
Property;
LEASED PROPERTIES means the leased properties brief details of which
are set out in Part 2 of Schedule 13 and Leased Property means any one
of them;
LIABILITIES means all liabilities, duties and obligations of every
description, whether deriving from contract, common law, statute or
otherwise, whether present or future, actual or contingent, ascertained
or unascertained or disputed and whether owed or incurred severally or
jointly or as principal or surety;
LICENCE AGREEMENTS means the licence agreements relating to
Intellectual Property and Know-how brief details of which are set out
in Schedule 15 and other licences entered into prior to Completion by
or on behalf of any of the Business Sellers exclusively or primarily in
connection with the Operations in each case which remain in force at
Completion or have outstanding rights and obligations;
LOSSES means all losses, Liabilities, costs (including without
limitation legal costs), charges, expenses, actions, proceedings,
claims and demands;
MAJORITY OWNED GROUP COMPANIES means any Group Company (other than the
Wholly Owned Group Companies) in which the Vendor, directly or
indirectly, owns more than 50 per cent. of the Equity Share Capital and
MAJORITY OWNED GROUP COMPANY means any one of them;
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MANAGEMENT ACCOUNTS means the unaudited management accounts relating to
each of the Businesses and each of the Group Companies for the
financial period ending on 28 February 1999;
MATERIAL ADVERSE EFFECT means (i) any adverse change or effect to the
business, properties, assets, condition (financial or otherwise) or
results (whether current or future) of the Global Operations occurring
after the date hereof which, individually or in the aggregate, has
resulted in or is reasonably likely to result in a reduction in the
fair market value of the Global Operations of (pound)50,000,000 or more
PROVIDED THAT the financial implications of any failure to win a
contract or tender by any Business Seller or Group Company shall not be
taken into account in determining whether the fair market value of the
Global Operations has been reduced; or (ii) any fire, flood, explosion
or other similar calamity occurring after the date hereof in
consequence of which substantially all of the manufacturing operations
at the Erith site (details of which are set out in paragraph 1 Part 2
of Schedule 14) are suspended, such suspension to be for a period
likely to be greater than three months;
MATERIAL CONTRACT shall have the meaning set out in paragraph 5.3.2 of
Schedule 8;
MINORITY GROUP COMPANIES means Group Companies other than Relevant
Group Companies;
MOVEABLE ASSETS means the Business Sellers' Moveable Assets and all
motor vehicles, Office Equipment and Plant and Machinery owned and used
by any of the Group Companies;
NET ASSET STATEMENT has the meaning given to it in Clause 9.1;
NET ASSET VALUE means the aggregate of the amounts of the Assets less
the aggregate of the amounts of the Liabilities of the Operations as
shown in the Net Asset Statement;
NON-LEASED PROPERTIES means the properties, brief details of which are
set out in Part 1 of Schedule 13 and NON-LEASED PROPERTY means any one
of them;
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NORTH AMERICAN SALE AND PURCHASE AGREEMENT means the Sale and Purchase
Agreement entered into on the date hereof between the Vendor and the
Purchaser in connection with the sale of the Vendor's energy cables
operations in the United States and Canada;
OFFICE EQUIPMENT means loose or severable items of office equipment,
furniture and furnishings;
OPERATIONS means the businesses carried on in the Jurisdictions by the
Business Sellers and the Group Companies as described in Schedule 1;
OTHER EMPLOYEES means the Employees (not being Companies Employees or
European Employees), if any;
OVERSEAS PROPERTIES means any of the Properties brief details of which
are set out in Part 3 of Schedule 13 and OVERSEAS PROPERTY means any
one of them;
PAYMENT ACCOUNT DETAILS means, in relation to any payment to be made
under or pursuant to this Agreement or any Subsidiary Agreement, the
name, account number, sort code, account location and other details
specified by the payee and necessary to effect payment (whether by
telegraphic or other electronic means of transfer) to the payee;
PLANT AND MACHINERY means loose or severable plant and machinery,
tools, moulds, dyes and other equipment (excluding Office Equipment);
PROPERTIES means the Non-Leased Properties, the Leased Properties and
the Overseas Properties and PROPERTY means any one of them;
PROPORTIONATE SHARE means the proportion which the Equity Share Capital
of the relevant corporate entity held by the relevant member of the
Vendor's Group bears to the entire Equity Share Capital of the relevant
corporate entity;
PURCHASE PRICE has the meaning given in Clause 3.1;
PURCHASER'S GROUP means the Purchaser and any of its subsidiaries or
holding company from time to time (including, with effect from
Completion or any Subsequent
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Completion, as the case may be, the Group Companies which have been
acquired by the Purchaser with effect from such completion);
PURCHASER'S LAWYERS means Xxxxxx Xxxx of Xxxxxxx Xxxxx, XX Xxx 000,
Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX;
RECEIVABLES means the book and other debts receivable by or owing to
any of the Business Sellers to the extent that they arise exclusively
or primarily in the course of the Operations (and whether or not yet
due or payable) at Completion and interest thereon but excluding:
(i) debts owing by any employee who is not an Employee;
(ii) debts due from any relevant Taxation authority in respect
of Taxation including, for the avoidance of doubt, any
bond or other security issued by any Taxation authority or
other governmental agency representing any such debts;
cash and cash equivalents credited to any account of any Business
Seller, wherever held; and
(iii) debts not included in the Net Asset Statement;
RELEVANT GROUP COMPANY means any Wholly Owned Group Company or Majority
Owned Group Company;
RELEVANT GROUP COMPANIES' CASH BALANCES means cash in hand held by, or
credited to any account or on deposit with a bank on behalf of any
Relevant Group Company as at the close of business on the Completion
Date (save that in the case of Majority Owned Group Companies, only the
Proportionate Share of such cash shall be included in such balances);
RELEVANT PURCHASER means the Purchaser and in relation to (i) each of
the Companies referred to in column (2) of Part 1, paragraph 1 of
Schedule 2 and (ii) each of the Businesses referred to in column (2) of
Part 2 of Schedule 2, any member of the Purchaser's Group nominated
prior to Completion by the Purchaser as the purchaser of the Shares in
such Companies or of such Businesses, such nomination
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being with the Vendor's consent (such consent not to be unreasonably
withheld) and so that each such purchaser shall be referred to herein
as a SHARE PURCHASER or BUSINESS PURCHASER as the context requires;
RELEVANT SELLER means in relation to (i) the Shares in each of the
Companies referred to in column (2) of Part 1, paragraph 1 of Schedule
2, the relevant seller whose name is set out or referred to opposite
that Company in column (1) of that Schedule (each a SHARE SELLER) and
(ii) each of the Businesses or Assets referred to in column (2) of Part
2 of Schedule 2, the relevant seller whose name is set out opposite
that Business or Asset in column (1) of that Schedule (each a BUSINESS
SELLER);
REPORTING ACCOUNTANTS means a firm of Chartered Accountants independent
of the Vendor and the Purchaser to be agreed by the Vendor and the
Purchaser within seven days of a notice by one to the other requiring
such agreement or failing such agreement to be nominated on the
application of either of them by or on behalf of the President for the
time being of the Institute of Chartered Accountants in England and
Wales;
RETAINED INTELLECTUAL PROPERTY means any Intellectual Property (other
than Business Sellers Intellectual Property) owned by any member of the
Vendor's Group which is necessary for the carrying on of the
Operations;
RETAINED KNOW-HOW means any Know-how (other than Business Sellers
Know-how) owned by any member of the Vendor's Group which is necessary
for the carrying on of the Operations;
SENIOR EMPLOYEE means any Employee employed in relation to the
Operations on an annual cash salary or fee (on the basis of full-time
employment) in excess of (pound)60,000 or local equivalent;
SHARES means the shares, quotas or other securities in the capital of
each of the Companies or partnership interests being sold by the
relevant Share Sellers as set out in column (2) of Part 1, paragraph 1
of Schedule 2;
SHARE SELLERS has the meaning given to it in the definition of Relevant
Seller;
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SPECIAL CONDITIONS OF SALE means the special conditions set out at Part
3 of Schedule 14 relating to the Business Sellers' Properties in
England and Wales;
STOCK means the stock-in-trade and work-in-progress owned by any of the
Business Sellers exclusively or primarily in connection with the
Operations at the Completion Date wherever held;
SUBSEQUENT COMPLETION means, in relation to those Shares in the
Jurisdictions specified in Part B of Part 1 of Schedule 6 the sale and
purchase of which is not completed on or with effect from the
Completion Date, the completion of the sale and purchase of such Shares
pursuant to Clause 6.1 and Schedule 6 (to the extent applicable);
SUBSEQUENT COMPLETION DATE means the date on which any Subsequent
Completion takes place;
SUBSIDIARY AGREEMENTS means the agreements (if any) substantially in
the agreed terms required in order to effect the sale and purchase of
Shares and/or Businesses outside the United Kingdom in the
Jurisdictions referred to therein, and, to the extent required (or as
agreed by the parties), of any Business Sellers' Assets in the United
Kingdom, to be entered into between the Relevant Sellers and the
Relevant Purchasers on Completion or any Subsequent Completion and
SUBSIDIARY AGREEMENT means any one of them;
SUBSIDIARIES means the subsidiaries, subsidiary undertakings and
associated undertakings of the Companies, details of which are
contained in Part 1, paragraph 2 of Schedule 2;
SUBSTANTIAL CONTRACTS means those contracts listed in Schedule 19;
SUPPLIER CONTRACTS means all contracts and agreements entered into
prior to Completion by or on behalf of any of the Business Sellers with
suppliers exclusively or primarily in connection with the Operations
(i) for the sale of goods or the provision of services to the extent
that at Completion the same remain to be completed or performed or (ii)
for the letting on hire or rental or other supply of the Business
Sellers'
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Motor Vehicles, the Business Sellers' Office Equipment or the Business
Sellers' Plant and Machinery which remain in force at Completion;
TAXATION OR TAX means all forms of taxation whether direct or indirect
and whether levied by reference to income, profits, gains, net wealth,
asset values, turnover, added value or other reference and statutory,
governmental, state, provincial, local governmental or municipal
impositions, duties, contributions, rates and levies (including without
limitation social security contributions and any other payroll taxes),
whenever and wherever imposed (whether imposed by way of a withholding
or deduction for or on account of tax or otherwise) and in respect of
any person and all penalties, charges, costs and interest relating
thereto;
TAX DEED OF COVENANT means the deed of covenant against Liability to
Taxation in the agreed terms to be entered into by the Vendor on behalf
of itself and the other Relevant Sellers indemnifying the Purchaser on
behalf of itself and the other Relevant Purchasers in respect of the
Group Companies;
THIRD PARTY CONSENTS means any consents, licences, approvals, permits,
authorisations or waivers required from third parties (including but
not limited to any governmental, administrative, judicial, or
regulatory authority or organisation) and THIRD PARTY CONSENT means any
one of them;
THIRD PARTY INDEBTEDNESS means the aggregate amount of all outstanding
loans owing by any Relevant Group Company (save that in the case of
Majority Owned Group Companies only the Proportionate Share of such
outstanding loans shall be included) to any third party (other than a
member of the Vendor's Group or the Group) as at the close of business
on the Completion Date but excluding any Relevant Group Companies' Cash
Balances, Intra-Group Indebtedness and trading debt or liabilities
arising in the ordinary course;
THIRD PARTY INDEBTEDNESS DETERMINATION DATE means the date on which the
process described in Part 2 of Schedule 7 for the preparation of the
Third Party Indebtedness Statement is complete;
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THIRD PARTY INDEBTEDNESS STATEMENT means the statement of Third Party
Indebtedness to be prepared pursuant to Clause 9.5 in accordance with
the provisions of Part 2 of Schedule 7;
TRANSFER PROVISIONS means in relation to a European Employee, the
legislation implementing the provisions of EEC Directive No.77/187
dated 14.2.1977 applicable to such European Employees' terms and
conditions of employment;
UK BUSINESS means the Business carried on by the Vendor and its
Subsidiaries in the United Kingdom as described in paragraph 1 of
Schedule 1;
VAT means Value Added Tax and elsewhere within the European Community
such Tax as may be levied in accordance with (but subject to
derogations from) the Directive 77/338/EC and outside the European
Community any Taxation levied by reference to added value or sales;
VENDOR'S GROUP means the Vendor and any subsidiary undertaking of the
Vendor from time to time (other than the Group Companies except, on or
after Completion or any Subsequent Completion, those Group Companies
which are not acquired by the Purchaser at or with effect from such
completion);
VENDOR'S LAWYERS means Linklaters & Paines of Xxx Xxxx Xxxxxx, Xxxxxx
XX0X 0XX;
VENDOR'S PROPERTY LAWYERS means Beachcroft Stanleys of 000 Xxxxxx Xxxx,
Xxxxxx XX0X 0XX;
WARRANTIES means the warranties contained or referred to in Schedule 8
and WARRANTY means any one of them;
WHOLLY OWNED GROUP COMPANIES means the Group Companies which are wholly
owned directly or indirectly by the Vendor and WHOLLY OWNED GROUP
COMPANY means any one of them.
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1.2 SUBORDINATE LEGISLATION
Any reference to a statutory provision shall include any subordinate
legislation made from time to time under that provision which is in
force at the date of this Agreement.
1.3 MODIFICATION ETC. OF STATUTES
Any reference to a statutory provision shall include such provision as
from time to time modified or re-enacted or consolidated whether before
or after the date of this Agreement so far as such modification,
re-enactment or consolidation applies or is capable of applying to any
transactions entered into under this Agreement prior to Completion and
(so far as Liability thereunder may exist or can arise) shall include
also any past statutory provision (as from time to time modified,
re-enacted or consolidated) which such provision has directly or
indirectly replaced, except in any case to the extent that any
statutory provision made or enacted after the date of this Agreement
would create or increase a Liability of the Relevant Sellers under this
Agreement, any Subsidiary Agreement or the Tax Deed of Covenant.
1.4 HOLDING COMPANIES ETC.
1.4.1 A HOLDING COMPANY means a company which holds or controls,
whether alone or pursuant to an agreement with other
shareholders, a majority of the voting rights in another
company, its subsidiary, or, being a member of that other
company, has the right to appoint or remove a majority of its
board of directors;
1.4.2 A PARENT UNDERTAKING means an undertaking which holds or
controls, whether alone or pursuant to an agreement with other
shareholders, a majority of the voting rights in another
company, ITS SUBSIDIARY UNDERTAKING, or, being a member of that
other undertaking, has the right to appoint or remove a
majority of its board of directors or has the right to exercise
a dominant influence over the undertaking pursuant to the
undertaking's constitutional documents or pursuant to a control
contract.
19
1.5 INTERPRETATION XXX 0000
Xxx Xxxxxxxxxxxxxx Xxx 0000 shall apply to this Agreement in the same
way as it applies to an enactment.
1.6 SCHEDULES ETC.
References to this Agreement shall include any Schedules to it and
references to Clauses and Schedules are to Clauses of and Schedules to
this Agreement.
1.7 ENGLISH LEGAL TERMS
References to any English legal term or concept (including, without
limitation, those for any action, remedy, method of judicial
proceeding, document, statute, court official, governmental authority
or agency) shall in respect of any Jurisdiction other than England be
construed as references to the term or concept which most nearly
corresponds to it in that Jurisdiction.
1.8 INFORMATION
Any reference to books, records or other information means books,
records or other information in any form including paper,
electronically stored data, magnetic media, film and microfilm.
1.9 VENDOR'S KNOWLEDGE
Any statement qualified by the expression TO THE BEST KNOWLEDGE OF THE
VENDOR or SO FAR AS THE VENDOR IS AWARE or any similar expression
shall, insofar as such statement is referable to any particular
Jurisdiction, be deemed to refer to the knowledge of the Vendor having
made due and careful enquiry of those persons set out in column (2)
Schedule 21 in relation to those Warranties set out in column (1).
1.10 CURRENCY CONVERSION
Any amount to be converted from one currency into a second currency for
the purposes of this Agreement (other than for the purposes of the Net
Asset Statement) shall be converted into an equivalent amount at the
Relevant Date of such second
20
currency as calculated by reference to the Exchange Cross Rate Table as
published in the Financial Times, London Edition, prevailing at the
Relevant Date. The RELEVANT DATE for the purposes of the definition of
SENIOR EMPLOYEE shall be 31 December 1998, for the purposes of the
definition of MATERIAL ADVERSE EFFECT shall be the date on which the
Purchaser serves its Termination Notice pursuant to Clause 4.5 and for
the purposes of Clause 8.2 shall be the date on which the relevant
claim was made (or, in any case, if such Exchange Cross Rate Table is
not published on any such date, the next following date on which such
table is published).
2 AGREEMENT TO SELL THE OPERATIONS
2.1 SALE AND PURCHASE OF OPERATIONS
2.1.1 Subject to Clause 4, on Completion, the Vendor shall sell, or
procure to be sold by each Relevant Seller in each case
pursuant to the relevant Subsidiary Agreement or (in the case
of any Asset which is not the subject of a Subsidiary
Agreement) this Agreement, and the Purchaser shall purchase, or
procure that there are purchased by each Relevant Purchaser,
with the benefit of the warranties and undertakings contained
in this Agreement free from all Encumbrances (except as
expressly provided in this Agreement or specifically disclosed
in the Disclosure Letter) and together with all rights and
advantages attaching thereto as at Completion (or, as the case
may be, any Subsequent Completion), the whole of the
Operations, comprising the Shares and the Businesses as a going
concern, except as otherwise expressly provided in Clause
2.1.3.
2.1.2 Without prejudice to the generality of Clause 2.1.1 and subject
to Clause 2.1.3, there shall be included in the sale under this
Agreement (or, where relevant, under the Subsidiary Agreements)
the following:
(i) the Shares;
(ii) the Stock;
21
(iii) the benefit of the Contracts (subject, save as provided
in this Agreement, to the burden of the same);
(iv) the Business Sellers' Properties (on the terms set out
in Part 1 of Schedule 14);
(v) the Goodwill;
(vi) the Business Sellers' Intellectual Property and the
Business Sellers' Know-how (each subject to Clause
18.5);
(vii) the Business Sellers' Moveable Assets;
(viii) the benefit (so far as the same can lawfully be
assigned or transferred to or held in trust for the
Relevant Purchaser) of the Claims;
(ix) the Receivables; and
(x) all books of account and records and other property,
rights and assets owned and used exclusively or
primarily in connection with the Operations at
Completion (other than any property, rights or assets
owned by any Group Company).
2.1.3 The Excluded Assets shall be excluded from the sale and
purchase pursuant to this Agreement or, where relevant, the
Subsidiary Agreements.
2.2 ASSUMPTION OF LIABILITIES
2.2.1 Subject to Clauses 2.2.2 and 2.2.3, the Purchaser shall, or
shall procure that the other Relevant Purchasers shall, assume,
duly and punctually pay, satisfy, discharge, perform or fulfil
all Liabilities of the Business Sellers:
(i) arising under the Contracts;
(ii) expressly assumed by the Relevant Purchasers under this
Agreement; and
(iii) any other Liabilities of the Business Sellers, but only
to the extent that they are taken into account in the
calculation of, or provided for in, the Net Asset
Statement.
22
2.2.2 Nothing in this Clause 2 shall (unless the relevant Liability
has been taken into account in the calculation of, or provided
for in, the Net Asset Statement):
(i) require the Purchaser or any Relevant Purchaser to perform
any obligation or honour any Liability of any Business
Seller falling due for performance, or which should have
been performed, prior to Completion; or
(ii) subject to Clause 12, impose any obligation on the
Purchaser or any Relevant Purchaser for or in respect of
any product delivered by any Business Seller or any
service performed by any Business Seller prior to
Completion.
2.2.3 Nothing in this Agreement shall require the Purchaser to assume
any Liabilities in relation to any countries which assumption
would be in violation of US export control regulations.
2.2.4 The Excluded Liabilities shall be excluded from the sale and
purchase pursuant to this Agreement and the Subsidiary
Agreements.
2.3 INDEMNITIES
2.3.1 The Vendor shall, or shall procure that each other Relevant
Seller shall, indemnify and keep indemnified the Purchaser and
each other Relevant Purchaser against:
(i) any Liability of any Relevant Seller (excluding any
liability in respect of Tax) which is not an Assumed
Liability including any such Liability which is deemed
to be, or becomes, a Liability of the Purchaser and/or
any other Relevant Purchaser by virtue of any applicable
law and which is not otherwise assumed by the Purchaser
and/or any other Relevant Purchaser under this Agreement
or any Subsidiary Agreement;
(ii) any Losses which the Purchaser and/or any other Relevant
Purchaser may suffer by reason of the Purchaser and/or
any other Relevant
23
Purchaser taking any reasonable action to avoid, resist
or defend against any Liability referred to in Clause
2.3.1(i); and
(iii) subject to the provisions of the Tax Deed of Covenant,
any liability in respect of Tax which the Purchaser and
each Relevant Purchaser is indemnified against pursuant
to the Tax Deed of Covenant.
2.3.2 The Purchaser shall, or shall procure that each other Relevant
Purchaser shall, indemnify and keep indemnified each Business
Seller against:
(i) all Assumed Liabilities and any Liability of the Purchaser
and/or any other Relevant Purchaser and/or any other
person incurred in the course of carrying on the
Operations after Completion including, for the avoidance
of doubt, any such Liability which is or is deemed to be
or becomes a Liability of any Business Seller by virtue of
any applicable law; and
(ii) any Losses which any Business Seller may suffer by reason
of such Business Seller taking any reasonable action to
avoid, resist or defend against any Liability referred to
in Clause 2.3.2(i);
Provided that no Relevant Purchaser shall be liable under this
Clause 2.3.2 to the extent such Relevant Purchaser has a valid
claim against the Vendor or other Business Seller under this
Agreement or the Tax Deed of Covenant in respect of the
Liability in question.
2.4 SUBSIDIARY AGREEMENTS
2.4.1 The Vendor shall, and shall procure that each other Relevant
Seller shall, and the Purchaser shall, and shall procure that
each other Relevant Purchaser shall, enter into the relevant
Subsidiary Agreement on Completion or, if applicable, any
Subsequent Completion.
2.4.2 The Purchaser agrees for itself and each of the other Relevant
Purchasers that no claim shall be made under the Subsidiary
Agreements and, accordingly, any claim which could otherwise be
made thereunder shall be
24
made under this Agreement or, as the case may be, the Tax Deed
of Covenant, in each case subject to the limitations contained
in this Agreement or the Tax Deed of Covenant.
2.4.3 To the extent that the provisions of this Agreement are
inconsistent with or additional to the provisions of a
Subsidiary Agreement, the provisions of this Agreement shall
prevail and the Vendor and the Purchaser shall procure that the
provisions of the relevant Subsidiary Agreement are adjusted to
the extent necessary to give effect to the provisions of this
Agreement and/or that the Relevant Seller and the Relevant
Purchaser comply with the provisions of this Agreement as
though they were bound by such provisions in place of the
provisions of the relevant Subsidiary Agreement.
2.4.4 If there is an adjustment under Clause 3.2 of this Agreement
which relates to the part of the Operations which is the
subject of such Subsidiary Agreement, then the Vendor and the
Purchaser will procure that the Relevant Seller and Relevant
Purchaser enter into a supplemental agreement reflecting such
adjustment, if appropriate.
2.4.5 As soon as reasonably practicable hereafter and in any event
before Completion, the Vendor shall procure that the Relevant
Sellers shall, and the Purchaser shall procure that the
Relevant Purchasers shall, incorporate in the relevant
Subsidiary Agreements (to the extent not already so
incorporated) the terms on which the transfer of each relevant
Property outside the United Kingdom is to be dealt with.
2.4.6 The Vendor and the Purchaser shall enter into an agreement for
lease (the PRESCOT AGREEMENT) substantially in the form
attached as Annexure [ ] (save where specified therein as being
"to be agreed") in respect of part of Prescot (as defined in
paragraph 3 of Part 2 of Schedule 14) as soon as reasonably
practicable after the date of this Agreement.
25
3 CONSIDERATION
3.1 AMOUNT AND PAYMENT
The aggregate consideration for the purchase of the Operations under
this Agreement and each Subsidiary Agreement shall be an amount which
is equal to:
3.1.1 (pound)170,600,000 (ONE HUNDRED AND SEVENTY MILLION SIX HUNDRED
THOUSAND POUNDS);
3.1.2 less the Third Party Indebtedness;
3.1.3 less the amount of Intra-Group Indebtedness (where the
aggregate amount owed by the Relevant Group Companies to
members of the Vendor's Group exceeds the aggregate amount owed
by members of the Vendor's Group to Relevant Group Companies)
or, as the case may be, plus the amount of Intra-Group
Indebtedness (where the reverse is the case);
3.1.4 plus the amount of the Relevant Group Companies' Cash Balances
(the PURCHASE PRICE) (subject to adjustment as expressly
provided in this Agreement), allocated as set out in Schedule
3. The consideration is exclusive of any VAT and any transfer
taxes in respect of which the provisions of Schedule 10 shall
apply. The Purchase Price shall be paid by the Purchaser on
behalf of itself and the other Relevant Purchasers to the
Vendor on behalf of itself and the other Relevant Sellers,
subject to any legal requirements under any Subsidiary
Agreement for any direct payments thereunder or as otherwise
agreed by the Purchaser and the Vendor.
3.2 ADJUSTMENTS
The Purchase Price may be reduced or increased in accordance with the
provisions of Clause 9 or in accordance with any other provisions of
this Agreement stated to take effect as an adjustment to the Purchase
Price.
26
3.3 METHOD OF PAYMENT
Wherever in this Agreement or any Subsidiary Agreement provision is
made for payment by one party (the PAYER) to another (the PAYEE), such
payment shall be made by telegraphic transfer in immediately available
funds in the currencies and to the account(s) specified in the Payment
Account Details of the payee unless the payee by notice to the payer,
not later than three Business Days prior to the due date for payment,
elects to be paid by banker's draft drawn on any international bank
reasonably acceptable to the payer. Payment of such sum shall be a good
discharge to the payer (and those on whose behalf such payment is made)
of its obligation to make such payment and the payer (and those on
whose behalf such payment is made) shall not be obliged to see to the
application of the consideration as between the Relevant Sellers, in
the case of a payment to the Vendor, or as between the Relevant
Purchasers, in the case of a payment to the Purchaser.
3.4 REDUCTION OF CONSIDERATION
If any payment is made by any Relevant Seller to any Relevant Purchaser
in respect of any claim against any Relevant Seller for any breach of
this Agreement, any Subsidiary Agreement or the Tax Deed of Covenant,
the payment shall be made by way of adjustment of the consideration
paid by the Purchaser for the Operations under this Agreement and any
relevant Subsidiary Agreement and the Purchase Price shall be deemed to
have been reduced by the amount of such payment.
4 CONDITIONS
4.1 CONDITIONS PRECEDENT
Completion of this Agreement is conditional upon:
4.1.1 the passing at a general meeting of the Vendor of a resolution
to approve the transactions contemplated by this Agreement;
27
4.1.2 the North American Sale and Purchase Agreement becoming
unconditional in accordance with its terms (other than the
satisfaction of any condition relating to this Agreement);
4.1.3 the Purchaser receiving written confirmation from the Office of
Fair Trading that, on the information at present before him,
the Secretary of State has decided not to refer its proposed
acquisition of the Business (to the extent carried on in the
United Kingdom) to the Competition Commission under the Fair
Trading Xxx 0000; and
4.1.4 the conditions set out in Part 1 of Schedule 5 in relation to
the Companies specified therein having been satisfied .
4.2 RESPONSIBILITY FOR SATISFACTION
4.2.1 The Vendor hereby undertakes to use all reasonable endeavours
to ensure the satisfaction of the condition set out in Clause
4.1.1 as soon as reasonably practicable after the date hereof
subject to compliance by the directors of the Vendor with their
fiduciary duties.
4.2.2 The Vendor undertakes to the Purchaser that it will, as soon as
reasonably practicable, despatch a circular to the shareholders
of the Vendor so as to inform them of this Agreement and so as
to convene the general meeting of the Vendor referred to in
Clause 4.1.1 on or before 15 May 1999.
4.2.3 The Vendor and the Purchaser undertake to each other that they
will use their respective reasonable endeavours to procure that
the condition set out in Clause 4.1.2 is satisfied as soon as
reasonably practicable.
4.2.4 The Purchaser hereby undertakes to use all reasonable
endeavours to ensure satisfaction of the conditions set out in
Clauses 4.1.3 and 4.1.4 as soon as reasonably practical after
the date hereof and in relation to the condition specified in
Clause 4.1.3 shall shall make a notification to the Director
General of Fair Trading of the proposed acquisition, such
notification to be in a form agreed between the parties.
28
4.2.5 The Purchaser and the Vendor shall keep each other informed at
all times of any dealings with any government, governmental,
supranational or trade agency or regulatory authority in
relation to the proposed acquisition and shall cooperate in any
such dealings and all requests and enquiries from any such body
shall promptly be dealt with by the Purchaser and Vendor in
consultation with each other.
4.3 NON-SATISFACTION
4.3.1 The Vendor and the Purchaser shall promptly give notice to the
other of the satisfaction of the conditions set out in Clauses
4.1.1, 4.1.3 and 4.1.4 by close of business on the day of the
satisfaction of such conditions.
4.3.2 If the conditions in Clause 4.1 are not satisfied on or before
31 July 1999 save as expressly provided, this Agreement shall
lapse and no party shall have any claim against any other under
it, save for any claim arising from breach of the undertakings
contained in Clause 4.2, Clause 17, Clause 21.1 and Clause
21.2.
4.4 LOCAL CONDITIONS
4.4.1 Completion of the sale and purchase of the Shares in each of
the Companies set out in column (1) of Part 2 of Schedule 5 is
conditional on satisfaction of the condition(s) set out
opposite each such Company in column (2) of Part 2 Schedule 5.
4.4.2 The Vendor and the Purchaser each undertakes to the other on
its own behalf and on behalf of the other Relevant Sellers and
Relevant Purchasers respectively that it shall use reasonable
endeavours to procure that the conditions set out in Part 2 of
Schedule 5 are satisfied as soon as reasonably practicable
after the date hereof.
4.4.3 Save in relation to Germany, in respect of which Clause 5.9
shall apply, if any of the conditions referred to in Clause
4.4.1 are not satisfied or waived on or before 12 months from
the Completion Date then the Shares to which the
29
relevant conditions relate shall not be sold hereunder and all
terms of this Agreement relating to such Shares shall forthwith
cease to apply and neither party shall have a claim against the
other in relation to such Shares not being sold.
4.5 TERMINATION
4.5.1 If at any time before Completion a Material Adverse Effect
occurs, the Purchaser shall be entitled, subject to the other
provisions of this Clause 4.5, to terminate this Agreement
before Completion, by notice in writing to the Vendor, without
liability on its part. If the Purchaser duly exercises its
right of termination hereunder it shall have no claim against
the Vendor.
4.5.2 If the Purchaser wishes to terminate this Agreement in
accordance with Clause 4.5.1 it shall forthwith give notice of
its intention to do so to the Vendor (TERMINATION NOTICE). The
Termination Notice shall be delivered by hand to the Vendor's
Chief Executive and Company Secretary at (i) Devonshire House,
Mayfair Place WIX 5FH and (ii) at the home addresses of those
individuals notified in writing to the Purchaser on the date
hereof for the purpose of this Clause together with a copy to
Linklaters & Paines (for the attention of Xxxx Xxxxx) at the
address specified in the Agreement.
4.5.3 If the Purchaser validly serves a Termination Notice alleging
that a Material Adverse Effect falling within part (i) of the
definition of "Material Adverse Effect" has occurred the Vendor
may contest the validity of the Purchaser's right to terminate
by giving notice in writing to the Purchaser not later than 5
pm on the day being three days after the date of the
Termination Notice. This clause is without prejudice to any
right that the Vendor may have to contest the validity of any
Termination Notice alleging that a Material Adverse Effect
falling within part (ii) of the definition of Material Adverse
Effect has occurred.
4.5.4 If the Vendor gives valid notice to the Purchaser then the
parties shall seek the advice of a managing director of at
least 3 years standing at the London office of Xxxxxxx Xxxxx
(the EXPERT). The Expert shall give due weight to
30
any representations put forward by either party received by him
and shall as a matter of urgency (and in any event no later
than 3 days after the date of appointment) advise the parties
in writing if in his opinion, on the basis of the information
available, a Material Adverse Effect falling within part (i) of
the definition of Material Adverse Effect has occurred. If the
Expert opines that such a Material Adverse Effect has occurred
then this Agreement shall be deemed to have been validly
terminated by the Purchaser. If the Expert opines that no such
Material Adverse Effect has occurred then the parties shall
complete this Agreement in accordance with its terms.
4.5.5 In giving such advice the Expert shall act as an expert and not
as an arbitrator. His advice, in the absence of manifest error,
shall be final and binding upon the parties and not subject to
challenge in any way for the purpose of determining whether or
not a Material Adverse Effect falling within part (i) of the
definition of Material Adverse Effect has occurred. His fees
shall be payable by the Purchaser if he does not advise that
such a Material Adverse Effect occurred and by the Vendor if he
does so advise.
5 ACTION PENDING COMPLETION AND SUBSEQUENT COMPLETION
5.1 VENDOR'S GENERAL OBLIGATIONS
The Vendor undertakes to procure that pending Completion the Business
Sellers and the Relevant Group Companies shall:
5.1.1 conduct the Operations as a going concern in the ordinary
course (including the payment and discharge of all debts and
liabilities of the Operations as and when they fall due in the
ordinary course of business), save in so far as agreed in
writing with the Purchaser;
5.1.2 allow the Purchaser and its agents, upon reasonable notice,
reasonable access to the Operations provided that the
obligations of the Vendor under this Clause shall be subject to
any applicable data protection laws or regulations in force in
any of the Jurisdictions and shall not extend to allowing
31
access to information which is reasonably regarded as
confidential to the activities of Vendor's Group otherwise than
in connection with the Operations; and
5.1.3 notify the Purchaser of all tenders for new contracts to the
extent that such contracts, if awarded, would have a contract
value in excess of(pound)15 million in respect of product
manufactured wholly or mainly at the Erith site (details of
which are set out in paragraph 1, Part 2 of Schedule 14) or in
excess of (pound)10 million otherwise. The Vendor shall, so far
as it is reasonably able to do so, notify the Purchaser
hereunder a reasonable time prior to the submission of the
tender and shall have regard to reasonable representations made
by the Purchaser on the terms of such tender.
5.2 RESTRICTIONS ON SELLERS
5.2.1 Without prejudice to the generality of Clause 5.1, Clause 5.3
or Clause 5.4, in relation to any of the Businesses or Relevant
Group Companies, the Vendor shall procure that the Relevant
Sellers shall collaborate with representatives of the Purchaser
(nominated in advance by the Purchaser for such purpose and
agreed in writing by the Vendor) in relation to all material
matters concerning the running of such Businesses or Companies
between the date of this Agreement and Completion (or
Subsequent Completion as the case may be) and during that
period shall procure that in relation to the Operations, the
Business Sellers and the Relevant Group Companies shall not,
without the prior written consent of the Purchaser such consent
not to be unreasonably withheld or delayed:
(i) conduct such Operations in any manner except in the
ordinary course and consistent with the manner carried
on immediately prior to the date hereof, in particular
any established procedure for the approval of contracts
shall continue to be followed; or
(ii) except for liabilities incurred in the ordinary course
of business or budgeted capital expenditure within the
approval limits of the general
32
management of such Operations, incur or agree to incur
any obligation or liability relating to such Operations
(absolute or contingent) that individually calls for
payment by a Relevant Seller of more than(pound)100,000
in any specific case or(pound)250,000 in the aggregate;
or
(iii) grant any general or uniform increase in the rates of
pay or benefits to employees (or a class thereof)
employed in such Operations (other than those employed
by BICC (Central Africa) (Private) Limited or Zimbabwe
Cables (Pte) Limited) in excess of 3 1/2 per cent. per
annum or, except in connection with any severance or
termination that will occur prior to Completion, enter
into any new severance agreement that would be required
to be disclosed pursuant to the Warranties or any
collective bargaining agreement with respect to such
Operations; or
(iv) sell, transfer, mortgage, encumber or otherwise dispose
of any assets or liabilities relating to such
Operations, except (a) for dispositions of property in
the ordinary course not greater than (pound)250,000 in
aggregate save in respect of the Business Sellers'
Properties in England and Wales where (subject to Clause
5.8) there shall be no right for the Vendor or the
relevant Business Seller to make any such disposition or
(b) dispositions of Stock relating to such Operations in
the ordinary course of business; or
(v) (in the case of any Relevant Group Company) resolve to
change its name or to alter its Memorandum or Articles
of Association (or other constitutional documents); or
(vi) other than pursuant to any contract entered into prior
to the date hereof, the contents of which have been
fairly disclosed to the Purchaser in the Disclosure
Letter, allot or issue or agree to allot or issue any
shares, quotas or any securities or grant or agree to
grant
33
rights which confer on the holder any right to acquire
any shares or other such interest; or
(vii) other than as part of an Internal Reorganisation (in the
case of a Relevant Group Company), declare, pay or make
any dividend or other distribution, repay, redeem,
reduce or purchase any of its share capital or
registered capital, resolve to be voluntarily wound up
or pass any resolution or obtain any consent from its
members or any class of its members; or
(viii) make any material changes in the terms or conditions of
employment of, or employ, or agree to employ, any Senior
Employee; or
(ix) enter into any new loan facilities with banks or other
financial institutions; or
(x) issue any guarantee or indemnity for, or in respect of
the obligations of, any member of the Vendor's Group
(excluding any Group Company); or
(xi) amend, vary or waive any material provisions of any
shareholders' or joint venture agreement to which it may
be a party in respect of any Group Company; or
(xii) enter into any Material Contract save that this
restriction shall not apply to:
(a) the submission of any tender for new contracts nor
the award of any contracts resulting therefrom; or
(b) any supply or delivery of product pursuant to a
"call off" in a Supply Agreement in existence at
the date hereof.
5.2.2 The Vendor shall use its reasonable endeavours (subject to the
fiduciary duties of the directors of any Majority Owned Group
Company or Minority Group Company Group Company who have been
appointed by a member of the Vendor's Group) to procure
compliance with the provisions of Clause 5.2.1
34
in relation to the Operations which are not wholly owned by the
Vendor's Group.
5.2.3 The Vendor shall continue to maintain (or procure the
maintenance of) all the insurances currently in force in
relation to the Operations and shall co-operate with the
Purchaser in requesting that any insurer note (where permitted
to do so) the interest of the Purchaser on the relative
policies.
5.3 INTERNAL REORGANISATIONS
Nothing in Clause 5.1 or Clause 5.2 shall apply to or restrict any of
the Internal Reorganisations.
5.4 PURCHASER'S GENERAL OBLIGATIONS
The Purchaser hereby covenants and agrees that, prior to Completion no
member of the Purchasers' Group (or any employee, director, agent,
representative or adviser thereof) other than those persons who have
been identified in writing (the APPROVED PERSONS) to X. X. Xxxxxx, N.
D. Xxxxxx or P.J.L. Xxxxxx (the NOTIFIED PERSONS) shall approach or
communicate with any employee, agent, representative, adviser, supplier
or customer of the Vendor regarding the Operations or visit any of the
Properties and no Approved Person shall take any such action if
notified by the Notified Persons of their reasonable objections
thereto.
5.5 ESTIMATED INDEBTEDNESS STATEMENTS
The Vendor shall deliver to the Purchaser five Business Days prior to
Completion the Estimated Indebtedness Statements prepared in accordance
with Part 2 of Schedule 7.
5.6 VENDOR'S OBLIGATIONS PENDING SUBSEQUENT COMPLETION
The Vendor undertakes, in relation to each Group Company the Shares in
which are subject to Subsequent Completion:
35
5.6.1 to procure that following Completion and pending Subsequent
Completion:
(i) each Share Seller which is a shareholder of such Group
Company, shall exercise the voting and other rights
available to it to permit and facilitate the management
of such Group Company and the Operations carried on by
it, to be carried out in accordance with the reasonable
instructions of the Purchaser (or a Relevant Purchaser),
to the extent such Share Seller is able to do the same,
having regard to any shareholders or other similar
agreements and/or applicable laws;
(ii) the Purchaser or a Relevant Purchaser shall be allowed
full access to information held by any member of the
Vendor's Group concerning each relevant Group Company
and its affairs and business, when reasonably requested
by such Purchaser, subject to any confidentiality
obligations owed by any member of the Vendor's Group;
and
(iii) the relevant Share Sellers shall hold the Shares in such
Group Companies on trust absolutely for the Purchaser
and shall account to the Purchaser for any dividend
payment or other distribution or economic benefit
deriving from such Shares during that period; and
5.6.2 that it will, in consultation with the Purchaser, fulfil or
procure fulfilment of all existing obligations of any member of
the Vendor's Group to make any capital contribution (debt or
equity) to, or to provide any loans, guarantees or security of
any kind in respect of, such Group Company or its business,
which obligations arise to be fulfilled between Completion and
Subsequent Completion but so that between the date hereof and
Completion, it will, not commit or agree to commit to make any
further capital contributions or provide any further loans,
guarantees or security.
5.7 NEW ZEALAND
5.7.1 The Purchaser may elect, ten Business Days prior to Completion,
by notice in writing to the Vendor to elect to purchase BICC
Holdings New Zealand
36
Limited, in substitution for BICC Cables New Zealand Limited in
which case references in this Agreement to BICC Cables New
Zealand Limited shall be to BICC Holdings New Zealand Limited.
5.7.2 If the Purchaser makes such an election the parties shall agree
an appropriate adjustment to the amount of the Net Asset Value
referred to in Clause 9.6.4 to reflect the matters set out in
Clause 5.7.1.
5.8 PROPERTY AT NOTTINGHAM
The Vendor shall be entitled at any time prior to Completion to sell
the freehold Property at Xxxxxxxx Xxxxxx, Xxxxxxxxx Xxxx, Xxxxxxxxxx as
more fully described in paragraph 7 of Part 2 of Schedule 14
(NOTTINGHAM) to a third party. If such sale occurs then:
(i) any reference to Nottingham as an asset to be sold under
this Agreement shall be deemed to be deleted and the
sale shall be treated as an Internal Reorganisation;
(ii) the Vendor shall procure (at the Vendor's cost) that all
machinery used exclusively or primarily in the
Operations and located at Nottingham is transferred to
the site at Leigh (as described in paragraph 5, Part 2
of Schedule 14);
(iii) the proceeds of any sale shall be used by the Vendor to
provide for (i) the redundancy of Employees based at
Nottingham (THE NOTTINGHAM EMPLOYEES) and (ii) the
transfer of machinery referred to in paragraph (ii)
above;
(iv) the Nottingham Employees will cease to be within the
definition of European Employees or Employees;
(v) the Purchaser and any Relevant Purchaser shall have no
liability whatsoever in relation to any Nottingham
Employees and the Vendor (on behalf of itself and the
Relevant Seller) shall be responsible for and shall
fully indemnify and keep indemnified the Purchaser (on
37
behalf of itself and the Relevant Purchaser) from and
against all and any Losses arising from or in connection
with any of the Nottingham Employees; and
(vi) if the sale of Nottingham occurs pursuant to this
Clause, the parties shall agree an appropriate
adjustment to the amount of the Net Asset Value referred
to in Clause 9.6.4 to reflect the sale and other matters
contemplated hereunder.
5.9 GERMANY
The following provisions shall apply in relation to the sale of the
Vendor's indirect 50 per cent interest (GERMAN PARTNERSHIPS INTERESTS)
in Kaiser KWO Kabel Energie GmbH & Co and Kaiser KWO Kabel Telekom GmbH
& Co (GERMAN PARTNERSHIPS):
5.9.1 The Warranties shall only be given in respect of the German
Partnerships Interests as at the date of the Subsequent
Completion of such sale (and, for the avoidance of doubt, not
at the date of this Agreement or at Completion).
5.9.2 As soon as it is reasonably able to do so having regard to the
provisions of the various agreements with NKF BV, the Vendor
shall prepare and deliver a copy to the Purchaser a Disclosure
Letter in respect of the sale of the German Partnerships
Interests (the GERMAN DISCLOSURE LETTER).
5.9.3 If the German Disclosure Letter discloses matters which
demonstrate that the fair market value of the German
Partnerships Interests (either alone or together) has since the
date of this Agreement been reduced by an amount of (pound)1
million or more (a GERMAN MATERIAL ADVERSE EFFECT) then the
Purchaser may elect by written notice to the Vendor within 30
days of the service of the German Disclosure Letter not to
purchase the German Partnerships Interests. If the Purchaser so
elects then the references in Part 1 of Schedule 2 to the
German Partnerships Interests shall be deemed to have been
deleted and the Purchase Price shall be reduced by an amount of
(pound)10 million (the GERMAN
38
PURCHASE PRICE), being the amount allocated to the German
Partnerships Interests pursuant to Schedule 3.
5.9.4 If (a) the German Disclosure Letter does not disclose a German
Material Adverse Effect or, (b) notwithstanding that a German
Material Adverse Effect has occurred the Purchaser elects to
complete the sale of the German Partnerships Interests or (c)
no written notice is received from the Purchaser in accordance
with Clause 5.9.3 then, as soon as the conditions relating
thereto specified in Part 2 of Schedule 5 shall have been
satisifed the Vendor and Purchaser shall complete the sale of
the German Partnerships Interests in accordance with the terms
of this Agreement.
5.9.5 The Purchaser may elect by written notice to the Vendor within
30 days of the service of the German Disclosure letter to
insert in Part 2 of Schedule 5 such conditions relating to the
acquisition of the German Partnerhips Interests as it may
reasonably require.
5.9.6 If there is a dispute between the parties as to whether a
German Material Adverse Effect has occurred then the provisions
of Clauses 4.5.3 to 4.5.5 shall apply, mutatis mutandis, save
that (a) the references to "3 days" therein shall be to 30 days
and (b) the reference to Termination Notice shall be deemed to
be a reference to the notice served by the Purchaser pursuant
to Clause 5.9.3 above and (c) the reference to "Material
Adverse Effect" shall be to "German Material Adverse Effect".
5.9.7 Notwithstanding that the Purchaser becomes obliged to purchase
the German Partnerships in accordance with Clause 5.9.4 and the
relevant outstanding conditions relating thereto set out in
Schedule 5 have been satisfied, the Purchaser shall not be
obliged to complete the sale of the German Partnerships
Interests prior to 1 January 2000. If the Purchaser elects to
do so then the German Purchase Price shall be reduced by an
amount equal to any pro rata forecast loss for the German
Partnerships for the period between the date of Subsequent
Completion and 1 January 2000 (having regard to the
39
Vendor's 50 per cent interest in the German Partnerships). For
the purpose of this Clause the forecast loss shall be derived
from the aggregate forecast loss set out in the latest forecast
results prepared by each German Partnership.
5.9.8 If any of the conditions referred to in Clause 5.9.5 are not
satisfied or waived on or before 12 months from the date of
delivery of the German Disclosure Letter then the German
Partnerships Interests shall not be sold hereunder and all
terms of this Agreement relating to the German Partnerships
Interests shall forthwith cease to apply and neither party
shall have a claim against the other in relation to the German
Partnerships Interests not being sold.
5.10 ITALY
The Vendor and Purchaser shall use their reasonable endeavours to agree
as soon as practical after the date hereof to an "Emergency remedial
Plan for Year 2000 Compliance" (the PLAN) in respect of BICC Ceat Cavi
Srl, such plan to include agreement as to the division of costs in
connection with its implementation but, in any event, not requiring the
Vendor to contribute a total of more than U.S.$600,000. Once agreed the
parties shall implement the Plan in accordance with its terms. If the
parties are unable to agree the terms of the Plan prior to Completion,
the Vendor shall pay to the Purchaser at Completion the sum of
U.S.$600,000 in full settlement of its obligation under this Clause.
5.11 LEASE AT SETTIMO, ITALY
5.11.1 The Purchaser acknowledges that the Vendor has contracted to
procure the grant to a subsidiary of Corning Inc. of a lease of
office space in the main administration building of the
Overseas Property at Settimo, Italy listed at Part 3 of
Schedule 13 for a term expiring on 31 December 1999 (the
SETTIMO LEASE).
5.11.2 The parties acting reasonably having regard to the draft lease
attached as Exhibit A will agree as soon as reasonably
practicable after the date hereof the terms of the Settimo
Lease. The Vendor shall be entitled to grant the
40
Settimo Lease, once agreed with the Purchaser, at any time
prior to Completion.
5.11.3 The Purchaser agrees that if the Settimo Lease is not granted
before Completion, the Purchaser shall procure that the Settimo
Lease is granted on the terms agreed between the parties and a
subsidiary of Corning Inc. before Completion or between the
Purchaser and a subsidiary of Corning Inc. after Completion and
the Purchaser shall indemnify the Vendor against all Losses
arising from the failure by the Purchaser to grant the Settimo
Lease.
6 COMPLETION AND SUBSEQUENT COMPLETION
6.1 DATE AND PLACE
Subject as hereinafter provided:
6.1.1 Completion shall take place simultaneously at the relevant
locations specified in Part A of Part 1 of Schedule 6 or at
such other locations agreed to by the parties, on the last
Business Day of the Vendor's accounting period (as set out in
Part 3 of Schedule 6) during which the conditions set out in
Clause 4.1 are satisfied or deemed to be satisfied or waived
and falling not less than 30 days after the date of this
Agreement or at such other place, time or date as may be agreed
between the Purchaser and the Vendor provided that such later
date shall be the last Business Day of an accounting period of
the Vendor;
6.1.2 Subsequent Completion in respect of the Shares in any Company
shall, subject to Completion taking place pursuant to Clause
6.1.1, take place at the relevant locations specified in Part B
of Part 1 of Schedule 6 or at such other locations agreed to by
the parties, on the last Business Day of the Vendor's
accounting period (as set out in Part 3 of Schedule 6) during
which the condition(s) set out in column (2) of Part 2 of
Schedule 5 opposite such Company is satisfied.
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6.2 COMPLETION EVENTS
On Completion and any Subsequent Completion, the parties shall procure
that the events set out in Part 2 of Schedule 6 (to the extent
applicable) and the Subsidiary Agreements with respect to Completion or
Subsequent Completion for which they (or a Relevant Seller or Relevant
Purchaser) are respectively responsible shall take place. Either party
may waive the Completion or Subsequent Completion obligations of the
other party as set out in Part 2 of Schedule 6 or in the Subsidiary
Agreements.
6.3 PAYMENT OF PRICE
6.3.1 Subject to Clause 6.3.2, against compliance with the foregoing
provisions, on Completion the Purchaser on behalf of itself and
the other Relevant Purchasers shall pay the Vendor on behalf of
itself and the other Relevant Sellers, in the manner specified
in Clause 3, an amount which is equal to:
(i) the amount referred to in Clause 3.1.1;
(ii) less the Estimated Third Party Indebtedness
attributable to the Relevant Companies being sold at
Completion;
(iii) less the amount of Expected Intra-Group Indebtedness
attributable to the Relevant Group Companies sold at
Completion (where the aggregate amount owed by the
Relevant Group Companies to be sold at Completion to
members of the Vendor's Group exceeds the aggregate
amount owed by members of the Vendor's Group to such
Relevant Group Companies) or, as the case may be, plus
the amount of such Expected Intra-Group Indebtedness
(where the reverse is the case);
(iv) plus the amount of the Estimated Cash relating to the
Relevant Group Companies being sold at Completion.
6.3.2 The payment made pursuant to Clause 6.3.1 shall be reduced by
the amount of consideration which has been allocated in respect
of any Shares which are the subject of a Subsequent Completion
(as set out in Schedule 3).
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6.4 SUBSEQUENT COMPLETION PAYMENTS
6.4.1 Subject to Clause 6.4.2, on each Subsequent Completion, the
Purchaser on behalf of itself and the other Relevant Purchasers
shall pay to the Vendor on behalf of itself and the other
Relevant Sellers, in the manner specified in Clause 3, an
amount equal to:
(i) the amount allocated to the relevant Shares set out in Schedule
3;
(ii) less the Estimated Third Party Indebtedness attributable to the
Relevant Group Company being sold at the Subsequent Completion;
(iii) less the amount of the Expected Intra-Group Indebtedness
attributable to the Relevant Group Companies sold at Subsequent
Completion (where the aggregate amount owed by the Relevant
Group Company sold at Subsequent Complation to members of the
Vendor's Group exceeds the aggregate amount owed by members of
the Vendor's Group to such Relevant Group Company) or, as the
case may be, plus the amount of such Expected Intra-Group
Indebtedness (where the reverse is the case);
(iv) plus the amount of Estimated Cash attributable to the Relevant
Company being sold at the Subsequent Completion.
6.4.2 If at the date of the relevant Subsequent Completion, the
Actual Indebtedness Statement has been drawn up in accordance
with Clause 9.5 then amounts in the Estimated Indebtedness
Statement in respect of that Relevant Group Company being sold
at that Subsequent Completion shall be treated as amounts in
the Actual Indebtedness Statement unless either party
disagrees. Either party may object not later than 5 Business
Days prior to the purported Subsequent Completion Date by
serving written notice on the other. Upon such service of the
notice the parties shall procure that an Actual Indebtedness
Statement is drawn up as at the Subsequent Completion Statement
Date and contemporaneously with the preparation of the Deferred
Net Asset Statement applying, mutatis mutandis, the provisions
of Clause 9.2.
43
Adjustments to the amounts payable under Clause 6.4 shall be
made applying, mutatis mutandis, the provisions of Clauses
9.6.1 and 9.6.2.
6.5 REIMBURSEMENT OF COSTS ON SUBSEQUENT COMPLETION
On each Subsequent Completion, the Purchaser shall or shall procure
that a Relevant Purchaser shall reimburse the Vendor for all payments
made by the Vendor pursuant to Clause 5.6.2.
6.6 REPAYMENT OF LOANS IMMEDIATELY FOLLOWING COMPLETION OR SUBSEQUENT
COMPLETION
Immediately following Completion or Subsequent Completion, as the case
may be:
6.6.1 the Purchaser shall procure that each of the Relevant Group
Companies repays to the relevant member of the Vendor's Group
the amount of any outstanding loans set out in the Expected
Intra-Group Indebtedness Statement; and
6.6.2 the Vendor shall procure that each member of the Vendor's Group
repays to the Relevant Group Companies the amount of any
outstanding loans set out in the Expected Intra-Group
Indebtedness Statement.
6.7 TITLE AND RISK
Title to the Shares and the Business Sellers' Assets (and the risk of
loss or damage thereto except as expressly provided for in this
Agreement in relation to the Business Sellers' Properties) shall,
subject as provided below, pass to the Relevant Purchasers on
Completion provided that title to the Shares specified in Part 2 of
Schedule 6 shall pass to the Relevant Purchasers on the relevant
Subsequent Completion.
7 WARRANTIES
7.1 INCORPORATION OF SCHEDULE 8
7.1.1 The Vendor on behalf of itself and the other Relevant Sellers
warrants to the Purchaser on behalf of itself and the other
Relevant Purchasers in the terms set out in Schedule 8 and
paragraph 2 of Schedule 16 subject only to:
44
(i) any matter which is fairly disclosed in or pursuant to
the Disclosure Letter and any matter expressly provided
for under the terms of this Agreement and so that
"fairly disclosed" means disclosed in such manner and
such detail as to enable a reasonable purchaser to make
an informed assessment of the information disclosed;
and
(ii) any matter or thing hereafter done or omitted to be
done pursuant to this Agreement or otherwise at the
written request or with the written approval of the
Purchaser.
7.1.2 The Vendor on behalf of itself and the other Relevant Sellers
acknowledges that the Purchaser has entered into this Agreement
on its own behalf and on behalf of the other Relevant
Purchasers in reliance upon the Warranties. Save as expressly
otherwise provided, the Warranties shall be separate and
independent and shall not be limited by reference to any other
paragraphs of Schedule 8.
7.2 WARRANTIES FROM THE PURCHASER
The Purchaser on behalf of itself and the other Relevant Purchasers
warrants to the Vendor on behalf of itself and the other Relevant
Sellers in the terms set out in Schedule 9.
7.3 UPDATING TO COMPLETION
7.3.1 The Vendor on behalf of itself and the other Relevant Sellers
further warrants to the Purchaser on behalf of itself and the
other Relevant Purchasers that:
(i) subject to Clause 7.1, the Warranties (other than the
Warranties set out in Schedule 20) will be fulfilled
down to and will be true and accurate at Completion in
each case as if they had been given afresh at
Completion; and
(ii) if after the signing of this Agreement and before
Completion, any event shall occur or matter shall arise
of which the Vendor or any other Relevant Seller
becomes aware and which results or may result in any
45
of the Warranties being unfulfilled, untrue, misleading
or incorrect at Completion, the Vendor or other
Relevant Seller shall immediately notify the Purchaser
or other Relevant Purchaser in writing thereof prior to
Completion.
7.4 WARRANTIES RELATING TO MINORITY COMPANIES
Insofar as any of the Warranties (other than any Warranties as relate
to the ability of a Relevant Seller to transfer title to Assets or
Shares) are given in respect of Minority Companies or BICC Celcat,
Cabos de Energie e Telecomunicaciones SA and BICC CAFCA Limited each
such Warranty if not already so qualified, shall be deemed to be
qualified by reference to the best of the knowledge of the Vendor (as
such term is defined in Clause 1.9) .
8 LIMITATION OF LIABILITY AND CONDUCT OF CLAIMS
8.1 WARRANTY LIMITATION
The Vendor's and the other Relevant Sellers' liability for breach of
any of the Warranties (save as provided in Clause 8.10), shall be
subject to the following limitations:
8.1.1 TIME LIMITS
No liability shall arise in respect of any claim unless written
notice of such claim is given by the Relevant Purchaser to the
Relevant Seller setting out reasonable details of the specific
matter in respect of which the claim is made including an
estimate of the amount of such claim if practicable:
(i) in the case of a claim arising under paragraph 4.4 of
Schedule 8, within eight years following Completion;
(ii) in the case of a claim under paragraph 7 of Schedule 8
or the Tax Deed of Covenant, within 60 days after the
latest date on which the relevant taxation authorities
can make an assessment or similar claim or demand in
relation to the taxation liability in question; and
46
(iii) in the case of any other claim under this Agreement
within 24 months following Completion;
and any such claim shall (if it has not been previously
satisfied, settled or withdrawn) be deemed to be withdrawn six
months after the relevant time limit set out above unless legal
proceedings in respect of it (i) have been commenced by being
both issued and served and (ii) are being pursued with
reasonable diligence;
8.1.2 MINIMUM CLAIMS
No liability shall arise in respect of any claim arising from
any single circumstance if the amount of the liability of the
Relevant Seller in respect of that claim (excluding interest,
costs and expenses) does not exceed (pound)15,000 (save that
claims relating to a series of connected matters shall be
aggregated for this purpose);
8.1.3 AGGREGATE MINIMUM CLAIMS
No liability shall arise in respect of any claim unless the
aggregate amount of all claims in excess of the sum specified
in Clause 8.1.2 exceeds (pound)500,000 but so that if the
aggregate liability in respect of all such claims exceeds that
figure then all claims, including claims previously notified,
shall accrue against and be recoverable from the Relevant
Sellers;
8.1.4 CONTINGENT LIABILITIES
No liability shall arise in respect of any liability which is
contingent unless and until such contingent liability becomes
an actual liability and is due and payable but this sub-clause
shall not operate to avoid a claim made in respect of a
contingent liability within the applicable time limits
specified in Clause 8.1.1 above if the requisite details of
such claim have been delivered before the expiry of the
relevant period (even if such liability does not become an
actual liability until after the expiry of such period);
47
8.1.5 FUTURE ACTS
No liability shall arise in respect of any matter, act,
omission or circumstance (or any combination thereof)
(including, for the avoidance of doubt, the aggravation of a
matter or circumstance) to the extent that the same would not
have occurred but for:
(i) ACCOUNTING AND TAXATION CHANGES
any change in accounting or Taxation policy, bases or
practice of a Relevant Purchaser or any of the Group
Companies introduced or having effect after Completion
(or Subsequent Completion, as the case may be);
(ii) CHANGES IN LEGISLATION
the passing of, or any change in, after the date of
this Agreement, any law, rule, regulation or generally
published interpretation or practice of any government,
governmental department, agency or regulatory body
including (without prejudice to the generality of the
foregoing) any increase in the rates of Taxation or any
imposition of Taxation or any withdrawal of relief from
Taxation not actually (or prospectively) in effect at
the date of this Agreement; or
(iii) VOLUNTARY ACTS OF PURCHASER
any voluntary act, omission or transaction of a
Relevant Purchaser or any member of the Purchaser's
Group or any of the Group Companies, or their
respective directors, employees or agents or successors
in title, after Completion (or Subsequent Completion,
as the case may be) outside the ordinary course of
business;
8.1.6 INSURANCE
No liability shall arise in respect of any claim to the extent
that any Losses arising from such claim are recoverable under a
policy of insurance in force on the date of this Agreement.
48
8.2 MAXIMUM CLAIM
No liability shall arise in respect of any claim to the extent that the
aggregate amount of the liability of the Relevant Sellers for all
claims (other than those pursuant to Clause 2.3.1 or 11.4 or in
relation to any matter referred to in Clause 8.10) made under this
Agreement, the Subsidiary Agreements, the Tax Deed of Covenant, the
North American Sale and Purchase Agreement (other than those claims set
out in Section 2.3.5(d) thereof) or any other agreement entered
pursuant thereto or in connection therewith would exceed
(pound)160,000,000 (one hundred and sixty million pounds).
8.3 MITIGATION OF LOSS
The Purchaser shall procure that all reasonable steps are taken and all
reasonable assistance is given to avoid or mitigate any Losses which in
the absence of mitigation might give rise to a liability in respect of
any claim under this Agreement or the Subsidiary Agreements.
8.4 CONDUCT OF CLAIMS
8.4.1 If any party to this Agreement or any Subsidiary Agreement (the
CLAIMANT) becomes aware of any matter that may give rise to a
claim against another party to this Agreement or any Subsidiary
Agreement (the RECIPIENT) under this Agreement or the
Subsidiary Agreements (other than in respect of a breach of the
Warranty contained in paragraph 7 of Schedule 8 or under the
Tax Deed of Covenant where the claim shall be dealt with in the
manner set out in the Tax Deed of Covenant), notice of that
fact shall be given to the Recipient as soon as practicable but
any failure to give such notice shall not affect the rights of
the Claimant except to the extent that the Recipient is
prejudiced by such failure.
8.4.2 Without prejudice to the validity of the claim or alleged claim
in question, the Claimant shall allow, and shall procure that
the relevant Associated Companies of the Claimant allow, the
Recipient and its accountants and
49
professional advisers fully to investigate the matter or
circumstance alleged to give rise to such claim and whether and
to what extent any amount is payable in respect of such claim
and for such purpose the Claimant shall give, and shall procure
that the relevant Associated Companies of the Claimant give,
subject to the Recipient providing an indemnity in terms
reasonably satisfactory to the Claimant in respect of all
reasonable costs and expenses, all such information and
assistance, including access to premises and personnel, and the
right to examine and copy or photograph any assets, accounts,
documents and records, as the Recipient or its accountants or
professional advisers may reasonably request.
8.4.3 If the claim in question is a result of or in connection with a
claim by or liability to a third party then:
(i) no admission of liability shall be made by or on behalf
of the Claimant or an Associated Company of the
Claimant and the claim shall not be compromised,
disposed of or settled without the consent of the
Recipient (such consent not to be unreasonably withheld
or delayed);
(ii) the Recipient shall, subject to providing an indemnity
in terms reasonably satisfactory to the Claimant in
respect of all costs, liabilities, claims and expenses
which may be incurred by the Claimant as a result of
and which would not have been incurred but for the
same, be entitled at its own expense in its absolute
discretion to take such action as it shall deem
necessary to avoid, dispute, deny, defend, resist,
appeal, compromise or contest such claim or liability
(including, without limitation, making counterclaims or
other claims against third parties) in the name of and
on behalf of the Claimant or any Associated Company of
the Claimant concerned and to have the conduct of any
related proceedings, negotiations or appeals;
(iii) the Claimant will give and procure that the relevant
Associated Companies of the Claimant give, subject to
their being paid all
50
reasonable out of pocket costs and expenses, all such
information and assistance, including access to
premises and personnel, and the right to examine and
copy or photograph any assets, accounts, documents and
records, for the purpose of avoiding, disputing,
denying, defending, resisting, appealing, compromising
or contesting any such claim or liability as the
Recipient or its professional advisers reasonably
request. The Recipient agrees to keep (and to procure
that any Associated Company to which such information
is provided keep) all such information confidential and
only to use it for such purposes.
8.4.4 To the extent any claim is covered by the provisions of Clause
12, the conduct of claims set out in that Clause shall prevail
to the extent it conflicts with this Clause 8.4.
8.5 PRIOR RECEIPT
If the Vendor or any other Relevant Seller pays an amount in discharge
of any claim under this Agreement or the Subsidiary Agreements and a
Relevant Purchaser or any Group Company subsequently recovers (whether
by payment, discount, credit, relief or otherwise) from a third party a
sum which is referable to the subject matter of the claim and which
would not otherwise have been received by such Relevant Purchaser or
Group Company, the Purchaser shall pay, or shall procure that the
Relevant Purchaser or Group Company pays, to the Vendor or another
Relevant Seller an amount equal to (i) the sum recovered from the third
party less any reasonable costs and expenses incurred in obtaining such
recovery or (ii) if less, the amount previously paid by the Relevant
Seller to the Relevant Purchaser.
8.6 DOUBLE CLAIMS
The Relevant Purchasers shall not be entitled to recover from the
Vendor or any other Relevant Seller under this Agreement, the
Subsidiary Agreements or the Tax Deed of Covenant more than once in
respect of the same damage suffered, and accordingly the Vendor and the
other Relevant Sellers shall not be liable in respect of any breach
51
of this Agreement or the Subsidiary Agreements if and to the extent
that the Losses are or have been included in a claim under the Tax Deed
of Covenant which has been satisfied, nor shall the Vendor or any other
Relevant Seller be liable in respect of a claim under the Tax Deed of
Covenant if and to the extent that the Losses are or have been included
in a claim for breach of the Agreement which has been satisfied.
8.7 TAX
In calculating the liability of the Vendor and the other Relevant
Sellers for any breach of this Agreement or the Subsidiary Agreements,
there shall be taken into account the amount (if any) by which any
Taxation for which a Relevant Purchaser or any Group Company would
otherwise have been accountable or liable to be assessed is actually
reduced or extinguished as a result of the matter giving rise to such
liability.
8.8 ENVIRONMENTAL CLAIMS
The provisions of Schedule 16 shall apply to any claims relating to
Environmental Losses or Environmental Warranties (as such terms are
defined in Schedule 16).
8.9 EFFECT OF COMPLETION
The Warranties and all other provisions of this Agreement and the
Subsidiary Agreements in so far as the same shall not have been
performed at Completion or any Subsequent Completion shall not be
extinguished or affected by such completion, or by any other event or
matter whatsoever (including, without limitation, any satisfaction of
the conditions contained in Clause 4.1), except by a specific and duly
authorised written waiver or release by the Purchaser.
8.10 TITLE WARRANTIES
The Limitations on the Warranties contained in Clauses 8.1.1 to 8.1.4
shall not apply to any Warranties insofar as such relate to the ability
of a Relevant Seller to transfer title to Assets or Shares to a
Relevant Purchaser in accordance with Clause 2.1.1.
52
8.11 PROVISIONS IN THE ACCOUNTS
No liability shall arise in respect of any claim under this Agreement
or any Subsidiary Agreement if any allowance, provision or reserve is
made for the matter giving rise to the claim in the Net Asset
Statement.
8.12 INDEMNITIES
To the extent that any Indemnity is given by the Vendor in this
Agreement to the Purchaser in favour of or relating to a Majority Owned
Group Company or Minority Owned Group Company, for the avoidance of
doubt, the Vendor shall only be liable to contribute to the Purchaser
or relevant Group Company thereunder an amount equal to the relevant
Proportionate Share of the indemnified Loss.
9 NET ASSET STATEMENT, ACTUAL INDEBTEDNESS STATEMENTS AND ADJUSTMENTS TO
THE PURCHASE PRICE
9.1 BASIS OF PREPARATION OF NET ASSET STATEMENT
The Vendor shall procure that, as soon as practicable and in any event
not later than 60 days following Completion, there shall be drawn up a
statement of the aggregate of the amounts of the Assets less the
aggregate of the amount of the Liabilities of the Operations as at
Completion, determined in accordance with the principles set out in
Part 1 of Schedule 7 (the NET ASSET STATEMENT).
9.2 PREPARATION OF NET ASSET STATEMENT
9.2.1 The draft Net Asset Statement shall be delivered to the
Purchaser by the Vendor within the timescale referred to in
Clause 9.1. Prior to such delivery, the Vendor shall so far as
is practicable consult with the Purchaser with a view to
reducing the potential areas of disagreement relating to such
draft Net Asset Statement.
9.2.2 In order to enable the Vendor to prepare and the Vendor's
accountants to review the draft Net Asset Statement, the
Purchaser shall, and shall procure that the Relevant Purchasers
shall, keep up-to-date and make available to the
53
Vendor's representatives and to the Vendor's accountants all
books and records relating to the Operations during normal
office hours and co-operate with them with regard to the
preparation and review of the draft Net Asset Statement. The
Purchaser agrees, in so far as it is reasonable to do so, to,
and to procure that the Relevant Purchasers shall, make
available the services of the Employees to assist the Vendor in
the performance of its duties under this Agreement.
9.2.3 If the Purchaser does not within 60 days of presentation to it
of the draft Net Asset Statement give notice to the Vendor that
it disagrees with the draft Net Asset Statement or any item
thereof such notice stating the reasons for the disagreement in
reasonable detail and specifying the adjustments which in the
Purchaser's opinion should be made to the draft Net Asset
Statement in order to comply with the requirements of this
Agreement (the PURCHASER'S DISAGREEMENT NOTICE), the draft Net
Asset Statement shall be final and binding on the parties for
all purposes. If the Purchaser gives a valid Purchaser's
Disagreement Notice within such 60 days, the parties shall
attempt in good faith to reach agreement in respect thereof
and, if they are unable to do so within 21 days of such
notification, either party may by notice to the other require
that the draft Net Asset Statement be referred to the Reporting
Accountants (an APPOINTMENT NOTICE).
9.2.4 Within 21 days of the giving of an Appointment Notice, the
Vendor may by notice to the Purchaser indicate that, in the
light of the fact that the Purchaser has not accepted the draft
Net Asset Statement in its entirety, it wishes the Reporting
Accountants to consider matters relating to the Net Asset
Statement in response to those specified in the Purchaser's
Disagreement Notice, such notice stating in reasonable detail
the reasons why and in what respects the Vendor believes that
the draft Net Asset Statement should be altered (the VENDOR'S
DISAGREEMENT NOTICE).
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9.2.5 The Reporting Accountants shall be engaged jointly by the
parties, as soon as practical following agreement on their
terms of engagement, on the terms set out in this Clause 9.2
and otherwise on such terms as shall be agreed; provided that
neither party shall unreasonably (having regard, inter alia, to
the provisions of this Clause 9.2) refuse its agreement to
terms proposed by the Reporting Accountants or by the other
party. If the terms of engagement of the Reporting Accountants
have not been settled within 30 days of their identity having
been determined (or such longer period as the parties may
agree) then, unless one party is unreasonably refusing its
agreement to those terms, those accountants shall be deemed
never to have become the Reporting Accountants and new
Reporting Accountants shall be selected in accordance with the
provisions of this Agreement.
9.2.6 Except to the extent that the parties agree otherwise, the
Reporting Accountants shall determine their own procedure save
that:
(i) apart from procedural matters and as otherwise set out
in this Agreement, the Reporting Accountants shall
determine only:
(a) whether any of the arguments for an alteration
to the draft Net Asset Statement put forward in
the Purchaser's Disagreement Notice or the
Vendor's Disagreement Notice is correct in whole
or in part; and
(b) if so, what alterations should be made to the
draft Net Asset Statement in order to comply
with the requirements of this Agreement;
(ii) the Reporting Accountants shall apply the principles
set out in Part 1 of Schedule 7;
(iii) the Reporting Accountants shall make their
determination pursuant to paragraph (i) above as soon
as is reasonably practicable but in any event, unless
otherwise specified, within 40 days of the referral to
them; and
55
(iv) the procedure of the Reporting Accountants shall:
(a) give the parties a reasonable opportunity to
make written and oral representations to them;
(b) require that the parties supply each other with
a copy of any written representations at the
same time as they are made to the Reporting
Accountants;
(c) permit each party to be present while oral
submissions are being made by any other party;
and
(d) for the avoidance of doubt, the Reporting
Accountants shall not be entitled to determine
the scope of their own jurisdiction.
9.2.7 The Reporting Accountants' determination pursuant to Clause
9.2.6(i) shall (i) be made in writing and made available for
collection by the parties at the offices of the Reporting
Accountants at such time as the Reporting Accountants shall
determine and (ii) unless otherwise agreed by the parties
include reasons for each relevant determination.
9.2.8 The Reporting Accountants shall act as experts and not as
arbitrators and their determination of any matter falling
within their jurisdiction shall be final and binding on the
parties save in the event of manifest error (when the relevant
part of their determination shall be void and the matter shall
be remitted to the Reporting Accountants for correction). In
particular, without limitation, their determination shall be
deemed to be incorporated into the draft Net Asset Statement,
which shall then be final and binding on the parties save as
aforesaid.
9.2.9 The expenses of the Reporting Accountants shall be borne as
they shall direct at the time they make any determination under
Clause 9.2.6(i) or, failing such direction, equally between the
Purchaser, on the one hand, and the Vendor, on the other.
56
9.2.10 The parties shall co-operate with the Reporting Accountants and
comply with their reasonable requests made in connection with
the carrying out of their duties under this Agreement. In
particular, without limitation, the Purchaser shall, and shall
procure that the Relevant Purchasers shall, keep up to date
and, subject to reasonable notice, make available to the
Vendor's representatives, the Vendor's accountants and the
Reporting Accountants, all books and records relating to the
Businesses and the Group Companies during normal office hours
during the period from the appointment of the Reporting
Accountants down to the making of the relevant determination.
9.2.11 Subject to Clause 9.2.12, nothing in this Clause 9.2 shall
entitle a party or the Reporting Accountants to access to any
information or document which is protected by legal
professional privilege, or which has been prepared by the other
party or its accountants and other professional advisers with a
view to assessing the merits of any claim or argument.
9.2.12 A party shall not be entitled by reason of Clause 9.2.11 to
refuse to supply such part or parts of documents as contain
only the facts on which the relevant claim or argument is
based.
9.2.13 Each party and the Reporting Accountants shall, and shall
procure that its accountants and other advisers shall, keep all
information and documents provided to them pursuant to this
Clause 9.2 confidential and shall not use the same for any
purpose, except for disclosure or use in connection with the
preparation of the Net Asset Statement, the proceedings of the
Reporting Accountants or another matter arising out of this
Agreement or in defending any claim or argument or alleged
claim or argument relating to this Agreement or its subject
matter.
9.3 NET ASSET STATEMENT AT COMPLETION
Once the Vendor and the Purchaser reach (or pursuant to Clause 9.2.3
are deemed to reach) agreement on the draft Net Asset
57
Statement or the draft Net Asset Statement is finally determined at any
stage of the procedures set out in this Clause 9:
9.3.1 the draft Net Asset Statement as so agreed or determined shall
constitute the Net Asset Statement for the purposes of this
Agreement and shall be final and binding on the parties; and
9.3.2 the Net Asset Value shall be derived from the Net Asset
Statement.
9.4 NET ASSET STATEMENT AT SUBSEQUENT COMPLETION
If the Shares of any Group Company (a DEFERRED COMPANY) are not sold to
a Share Purchaser at Completion in accordance with Clause 6.1.1 then:
9.4.1 the value of the net assets attributable to the Deferred
Company for inclusion in the Net Asset Statement shall be the
value of such net assets set out in the Combined Accounts (the
TARGET AMOUNT);
9.4.2 the Vendor and Purchaser shall procure that a statement (the
DEFERRED NET ASSET STATEMENT) of the aggregate of the amounts
of the assets less the Liabilities of the relevant Deferred
Company shall be drawn up as at relevant Subsequent Completion,
determined in accordance with the principles set out in Part 1
of Schedule 7. The Deferred Net Asset Statement shall be drawn
up in accordance with Clause 9.2 save that references therein
to "draft Net Asset Statement" shall be to the "draft Deferred
Net Asset Statement". The net asset value attributable to the
Deferred Company (the DEFERRED NET ASSET VALUE) shall be
derived from the Deferred Net Asset Statement.
9.5 ACTUAL INDEBTEDNESS STATEMENTS
The Vendor shall procure that, as soon as practicable following
Completion, the Vendor's accountants shall draw up the Actual
Indebtedness Statements to determine the amount of the Intra-Group
Indebtedness, the Third Party Indebtedness and the Relevant Group
Companies' Cash Balances in accordance with the provisions set out in
Part 2 of Schedule 7.
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9.6 ADJUSTMENTS TO PURCHASE PRICE
9.6.1 INTRA-GROUP INDEBTEDNESS
(i) If the Expected Intra-Group Indebtedness is a negative
number and the Intra-Group Indebtedness is a larger
negative number or if the Expected Intra-Group
Indebtedness is a positive number and the Intra-Group
Indebtedness is a smaller positive number or is a
negative number:
(a) the Vendor (on behalf of itself and the other
Relevant Sellers) shall repay to the Purchaser
(on behalf of itself and the other Relevant
Purchasers) an amount equal to the difference;
and
(b) the Purchaser shall procure that the Relevant
Group Companies pay to the relevant members of
the Vendor's Group and/or, as appropriate, the
Vendor shall procure that the relevant members
of the Vendor's Group repay to the Relevant
Companies the amounts specified in the
Intra-Group Indebtedness Statement such that the
additional amounts being, in aggregate, received
by members of the Vendor's Group (after taking
account of payments made to the Relevant Group
Companies hereunder) are equal to the difference
between the Intra-Group Indebtedness and the
Expected Intra-Group Indebtedness repaid to the
Purchaser pursuant to Clause 9.6.1(i)(a) above;
such payments to be made on the day falling 10 Business Days
after the Intra-Group Indebtedness Determination Date; and
(ii) If the Expected Intra-Group Indebtedness is a positive
number and the Intra-Group Indebtedness is a larger
positive number or if the Expected Intra-Group
Indebtedness is a negative number and the Intra-Group
Indebtedness is a smaller negative number or a positive
number:
59
(a) the Purchaser (on behalf of itself and the other
Relevant Purchasers) shall pay to the Vendor (on
behalf of itself and the other Relevant Sellers)
an amount equal to such difference; and
(b) the Vendor shall procure that the relevant
members of the Vendor's Group repay to the
Relevant Group Companies and/or, as appropriate,
the Purchaser shall procure that the Relevant
Group Companies pay to the relevant members of
the Vendor's Group, the amounts specified in the
Intra-Group Indebtedness Statement such that the
additional amounts being, in aggregate, received
by the Relevant Group Companies (after taking
account of payments made by the Relevant Group
Companies hereunder) are equal to the difference
between the Intra-Group Indebtedness and the
Expected Intra-Group Indebtedness repaid to the
Vendor pursuant to Clause 9.6.1 (ii)(a) above;
such payments to be made on the day falling 10 Business Days
after the Intra-Group Indebtedness Determination Date;
9.6.2 THIRD PARTY INDEBTEDNESS
(i) If the amount of the Third Party Indebtedness exceeds
the Estimated Third Party Indebtedness the Vendor (on
behalf of itself and the other Relevant Sellers) shall
repay to the Purchaser (on behalf of itself and the
other Relevant Purchasers) an amount equal to such
excess; or
(ii) If the amount of the Third Party Indebtedness is less
than the Estimated Third Party Indebtedness the
Purchaser (on behalf of itself and the other Relevant
Purchasers) shall pay to the Vendor (on behalf of
itself and the other Relevant Sellers) an additional
amount equal to such deficiency;
such payments to be made on the day falling 10 Business Days
after the Third Party Indebtedness Determination Date.
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9.6.3 CASH
(i) If the amount of the Relevant Group Companies' Cash
Balances is less than the Estimated Cash the Vendor (on
behalf of itself and the other Relevant Sellers) shall
repay to the Purchaser (on behalf of itself and the
other Relevant Purchasers) an amount equal to such
deficiency; or
(ii) If the amount of the Relevant Group Companies' Cash
Balances exceeds the Estimated Cash the Purchaser (on
behalf of itself and the other Relevant Purchasers)
shall pay to the Vendor (on behalf of itself and the
other Relevant Sellers) an additional amount equal to
such excess;
such payments to be made on the day falling 10 Business Days
after the Cash Determination Date;
9.6.4 CALCULATION OF AMOUNTS IN CLAUSES 9.6.1, 9.6.2 AND 9.6.3
For the purpose of calculating the amounts in Clauses 9.6.1,
9.6.2 and 9.6.3, the Intra-Group Indebtedness, Third Party
Indebtedness and Relevant Group Companies Cash Balances
attributable to Relevant Group Companies which have not been
sold at the time of drawing up the Actual Indebtedness
Statements shall be deemed to be equal to the relevant amounts
attributable to such Companies in the Estimated
Indebtedness Statements.
9.6.5 NET ASSETS
(i) if the Net Asset Value is less than (pound)311,000,000
(THREE HUNDRED AND ELEVEN MILLION POUNDS), then the
Vendor (on behalf of itself and the other Relevant
Sellers) shall pay to the Purchaser (on behalf of
itself and the Relevant Purchasers) an amount equal to
the difference; or
(ii) if the Net Asset Value is more than (pound)311,000,000
(THREE HUNDRED AND ELEVEN MILLION POUNDS), then the
Purchaser (on behalf of
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itself and the Relevant Purchasers) shall pay to the
Vendor (on behalf of itself and the other Relevant
Sellers) an amount equal to the difference;
such payment to be made on the day falling no later than three
Business Days following agreement or determination of the Net
Asset Statement in accordance with this Clause 9;
9.6.6 DEFERRED NET ASSETS
(i) If the Deferred Net Asset Value is less than the Target
Amount, then the Vendor (on behalf of itself and the
other Relevant Sellers) shall pay to the Purchaser (on
behalf of itself and the Relevant Purchasers) an amount
equal to the difference; or
(ii) if the Deferred Net Asset Value is more than the Target
Amount, then the Purchaser (on behalf of itself and the
Relevant Purchasers) shall pay to the Vendor (on behalf
of itself and the other Relevant Sellers) an amount
equal to the difference;
such payment to be made on the day falling not later than ten
Business Days following agreement or determination of the
Deferred Net Asset Value in accordance with this Clause 9.
9.6.7 PAYMENT
Where any payment is required to be made pursuant to this
Clause 9.6:
(i) interest shall accrue on the relevant amount calculated
from the Completion Date or, as the case may be,
Subsequent Completion in accordance with Clause 21.8;
(ii) the Purchase Price shall be reduced or increased
accordingly; and
(iii) the allocation of the consideration in Schedule 3 shall
be adjusted accordingly in such manner as the Vendor on
behalf of itself and the
62
other Relevant Sellers and the Purchaser on behalf of
itself and the Relevant Purchasers shall agree in
accordance with Schedule 3.
10 TRANSFER TAXES AND VAT
The provisions of Schedule 10 shall apply.
11 THE CONTRACTS
11.1 THE VENDOR'S OBLIGATIONS IN RESPECT OF CONTRACTS
(i) The Vendor shall, subject to the indemnity given in
Clause 2.3.2, procure that up to Completion the
Contracts are carried out and completed and that the
obligations of any of the Business Sellers under the
Contracts are performed in the ordinary course (where
applicable) in a proper and workmanlike manner and in
accordance with their respective terms and the Vendor
shall, or shall procure that another Relevant Seller
shall, indemnify the Purchaser and/or each Relevant
Purchaser against all Losses incurred by the Purchaser
and/or each Relevant Purchaser in respect of the
Contracts by reason of the non-performance or the
negligent or defective performance of the Contracts by
the Business Sellers prior to Completion save to the
extent (i) any liability for a defective product or
defective service (as such terms are defined in Clause
12.2) shall be dealt with in accordance with Clause 12
or (ii) the Losses which would otherwise be indemnified
by the Vendor or a Relevant Seller pursuant to this
Clause are an Assumed Liability.
(ii) The Vendor shall procure that up to Completion, any
contracts to which any Relevant Group Company is a
party (COMPANY CONTRACTS) are carried out and completed
and that the obligations of any Relevant Group Company
under any Company Contract are performed in the
ordinary course (where applicable) in a proper and
workmanlike manner and accordance with their respective
terms and the Vendor
63
shall indemnify each Relevant Group Company against all
Losses incurred by such company by reason of the
non-performance or the negligent or defective
performance of the Company Contracts by the Relevant
Group Company prior to Completion save to the extent
(i) any liability for a defective product or defective
service (as such terms are defined in Clause 12.2)
shall be dealt with in accordance with Clause 12 or
(ii) the Losses which would otherwise be indemnified by
the Vendor or a Relevant Seller pursuant to this Clause
are an Assumed Liability.
11.2 THE PURCHASER TO COMPLETE CONTRACTS
The Purchaser shall, without prejudice to the indemnity given in Clause
2.3.1, procure that with effect from Completion each of the Contracts
is carried out and completed by a Relevant Purchaser and that the
relevant Business Sellers' obligations under the Contracts are
performed (to the extent that the same have not been previously carried
out or completed) in the ordinary course (where applicable) in a proper
and workmanlike manner and in accordance with their respective terms
and the Purchaser shall, or shall procure that the Relevant Purchasers
shall, indemnify the relevant Business Sellers against all Losses
incurred by the Business Sellers in respect of the Contracts by reason
of or in connection with the non-performance or the negligent or
defective performance of the Contracts after Completion by any Relevant
Purchaser Provided that the Purchaser (or Relevant Purchaser as the
case may be) shall not be so obliged and this indemnity shall not apply
to the extent that the Purchaser (or Relevant Purchaser as the case may
be) has or would have (in either case disregarding Clause 8.1) a valid
right of action under this Agreement or any Subsidiary Agreement
against the Business Sellers in respect of the Contract(s) in question.
11.3 PAYMENTS RECEIVED BY BUSINESS SELLERS
To the extent that any payment is made to any Business Seller in
respect of any Contract after the Completion Date, the Vendor shall
procure that such Business
64
Seller shall receive the same as trustees and pay the same to the
Purchaser (or Relevant Purchaser, as the case may be) (net of any tax
payable by such Business Seller thereon) as soon as reasonably
practicable following receipt.
11.4 SUBSTANTIAL CONTRACTS
The Relevant Sellers and Relevant Purchasers agree to co-operate and to
use all reasonable endeavours prior to and after Completion to ensure
that the Substantial Contracts are lawfully novated or assigned to the
Relevant Purchasers with effect from Completion or as soon as
reasonably practicable thereafter. Any costs associated with assigning
or novating or otherwise transferring the benefit of any Substantial
Contracts (including any payments made to any party as a condition to
giving their consent) and shall be for the account of the Relevant
Seller. To the extent that any Relevant Seller is unable to transfer
the economic benefit of any Substantial Contract the Vendor shall
indemnify the Relevant Purchaser against all Losses directly arising
therefrom up to an amount which, when aggregated with amounts payable
under Section 2.3.2(e) of the North American Agreement, does not exceed
(pound)10 million. The Purchaser shall procure that each Relevant
Purchaser shall take all reasonable steps to eliminate or reduce any
costs which may be payable by a Relevant Seller or the Vendor
hereunder.
11.5 BICC CAVI SUD S.P.A
The Vendor shall indemnify BICC Ceat Cavi Srl (CEAT CAVI) against any
and all Losses arising out of or in connection with the contract
entered into between Ceat Cavi, the Vendor and Xxxxxx Xxxxxx Group
Limited dated 30 December 1998, relating to purchase of the shares of
BICC Cavi Sud S.p.A.
11.6 EMPLOYEES AT SETTIMO SITE IN ITALY
The Vendor shall indemnify the Purchaser from and against all Losses
arising from the termination after Completion (or with the Purchaser's
consent prior to Completion) of the employment of 21 Employees located
at the Settimo, Italy site, details of which are set out in Schedule
13, up to a maximum amount of (pound)750,000.
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12 DEFECTIVE PRODUCT OR SERVICE
12.1 LIABILITY FOR DEFECTIVE PRODUCT OR SERVICE
The Vendor and Purchaser agree that any liability for defective product
(as defined in Clause 12.2 below) manufactured or defective service (as
defined in Clause 12.2 below) supplied by (i) any of the Business
Sellers in connection with the Operations or (ii) any of the Relevant
Group Companies, in either case prior to Completion (or Subsequent
Completion as the case may be), shall remain the responsibility of such
Relevant Seller or in the case of a Relevant Group Company the Vendor;
and that any defective product manufactured or defective service
supplied after Completion (or Subsequent Completion as the case may be)
by any of the Businesses or the Group Companies shall be the
responsibility of the Relevant Purchaser or Group Company, failing
which the Purchaser.
12.2 MEANING OF DEFECTIVE PRODUCT AND DEFECTIVE SERVICE
A DEFECTIVE PRODUCT and a DEFECTIVE SERVICE means a product or service
supplied by any of the Businesses or the Relevant Group Companies that
does not conform to its express or implied contractual requirements,
whether in terms of performance, quality, time of delivery or in any
other respect. A product shall be considered as manufactured when it
has passed through final testing at the factory of the Operations and
any reference to manufacturing or manufacture in this Clause 12 shall
have such a meaning.
12.3 VENDOR RECEIVES CLAIM
12.3.1 If, following Completion (or Subsequent Completion as the case
may be), a Relevant Seller or Relevant Group Company receives a
claim from any person in respect of a defective product
manufactured and/or sold or defective service supplied before
Completion (or Subsequent Completion as the case may be), it
shall inform the Purchaser immediately and take steps to
investigate, report on, and take (in its view) appropriate and
prompt remedial action in respect of such defective product or
defective service.
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12.3.2 If the claim can be settled by a payment alone, the Vendor
shall be responsible, or shall procure that such Relevant
Seller is responsible, for meeting the contractual obligations
of the supplier/provider of the defective product or defective
service in that respect.
12.3.3 If the claim involves the supply of a replacement and/or the
removal, repair and reinstallation of the defective product or
the re-engineering or re-doing of work pursuant to a service
supplied, the Purchaser shall, or shall procure that the
Relevant Purchaser or the Relevant Group Company shall, carry
out the necessary work for such Relevant Seller, at the fully
absorbed manufacturing cost plus 5 per cent (together with any
value added or similar tax applicable thereon and any other
taxes) and duties payable thereon such costs to be paid by the
Vendor or any Relevant Seller within 30 days following delivery
of an invoice therefor.
12.3.4 If the claim involves both a payment and the repair or
replacement of a product or part of a product or the
re-engineering or other re-doing of work in respect of a
service, the payment shall remain the responsibility of such
Relevant Seller, but the provisions of Clause 12.3.3 shall
apply to the repair, replacement or re-engineering.
12.4 PURCHASER RECEIVES CLAIM
If a claim in respect of a defective product manufactured and/or sold
or defective service supplied before Completion (or Subsequent
Completion as the case may be) is made against a Relevant Purchaser or
any Relevant Group Company, it shall inform the Vendor forthwith and:
12.4.1 if, in the joint opinion of Vendor and Purchaser, the claim is
partly or wholly justified on contractual grounds, the
Purchaser shall, or shall procure that the Relevant Purchaser
or Relevant Group Company shall, take all reasonable steps as
instructed by the Vendor or another Relevant Seller, without
prejudicing the legitimate interests of such Relevant Seller,
to repair, replace and make good the defective product or
defective service and/or compensate
67
the claimant to the extent appropriate in accordance with the
terms of the relevant applicable contract. The Vendor shall
procure that such Relevant Seller shall, failing which the
Vendor shall, indemnify and keep the Relevant Purchaser or
Relevant Group Company indemnified accordingly, provided that
in respect of a defective product or service, the indemnity
shall cover only sums equivalent to those specified in Clause
12.3.3 incurred by the Relevant Purchaser or Relevant Group
Company; and
12.4.2 where the Vendor and the Purchaser are unable to reach
agreement on the extent to which the claim is justified and how
it is to be dealt with within 21 days of either party receiving
notice of the claim (both parties acting reasonably and
negotiating in good faith), the Relevant Purchaser or Relevant
Group Company shall be entitled to take such action as it
thinks reasonably appropriate having regard to the provisions
of the relevant contract relating thereto, but with an
overriding responsibility to minimise the costs thereof,
whereupon the indemnity set out in Clause 12.4.1 shall apply to
such claim.
12.5 VENDOR RECEIVES CLAIM FOR POST COMPLETION PRODUCT OR SERVICE
If a claim in respect of a defective product manufactured or defective
service supplied after Completion (or Subsequent Completion as the case
may be) is made against a Relevant Seller, it shall inform the
Purchaser forthwith and the Relevant Purchaser or Relevant Group
Company shall take over and deal with the claim, and the Purchaser
shall procure that the Relevant Purchaser or Relevant Group Company,
failing which the Purchaser, shall indemnify such Relevant Seller
accordingly.
12.6 CLAIM MADE FOR PRODUCT OR SERVICE SPANNING COMPLETION
If a claim is made against a Relevant Seller or Relevant Purchaser or
Relevant Group Company after Completion (or Subsequent Completion as
the case may be) in respect of a defective product partly manufactured
or defective service partly supplied in the period both before and
after Completion (or Subsequent Completion as the case may be), then
unless the defect can be clearly established as being wholly
68
attributable to acts or omissions either before or after Completion (or
Subsequent Completion as the case may be) (in which case Clause 12.3 or
Clause 12.4 or Clause 12.5 (as the case may be) above shall apply), the
parties shall in good faith negotiate and use their reasonable
endeavours to agree a fair and equitable apportionment of the claim.
12.7 INDEMNITIES REDUCED BY RECOVERY FROM THIRD PARTIES
Indemnities applicable under this Clause 12 shall be reduced to the
extent that (i) any provision for the relevant matter has been made in
the Net Asset Statement or (ii) a Relevant Seller or a Relevant
Purchaser or Relevant Group Company is able to recover any costs
incurred either from insurance or from a third party, and each of the
Vendor and the Purchaser undertakes to use its best endeavours to
review the possibility of all such recoveries and act accordingly,
keeping the other fully informed of its actions, and (in the case of
legal proceedings) consulting with the other at each stage of the
proceedings.
13 THIRD PARTY CONSENTS
13.1 FAILURE TO NOVATE OR ASSIGN
If in respect of a Business any of the Contracts cannot be vested in a
Relevant Purchaser except by way of novation or assignment, in each
case requiring relevant third party agreement (which term shall for the
purposes of this Clause include any waiver or other document required)
or consents, then the relevant Contracts shall not, so as to cause a
breach thereof or event of default (or the like) thereunder, be
assigned by this Agreement but:
13.1.1 shall be held in trust for the Relevant Purchaser absolutely
from Completion until such agreement or consent is obtained and
the relevant Contract is so novated or assigned, until which
time the Purchaser shall perform, or procure that a Relevant
Purchaser performs (as agent or sub-contractor), all the
obligations of the relevant Business Seller thereunder and the
Vendor shall otherwise cooperate in any reasonable arrangements
proposed by the
69
Purchaser designed to procure for the Purchaser or a Relevant
Purchaser the benefits of the relevant Contract. If the
relevant Contract prohibits a Relevant Purchaser from so acting
as agent or sub-contractor, the Vendor shall or shall procure
that another Relevant Seller shall, subject to being
indemnified for any losses (including Taxation) it may incur in
connection therewith, do (or procure to be done) all such acts
required for the performance of the relevant Contract so as to
provide the Relevant Purchaser with the benefits, subject to
the burdens on the basis provided in this Agreement, of the
relevant Contract;
13.1.2 the Vendor shall, or shall procure that another Relevant Seller
shall, at the Relevant Purchaser's request either make or
assist the Relevant Purchaser in making application for any
such agreement or consent and together with the Relevant
Purchaser endeavour to obtain such novation or assignment as
aforesaid, such that the relevant novation or assignment is
effective from Completion. The costs of making such
applications and of procuring such for assignments or novations
shall be for the account of the Relevant Sellers which shall
include the payment of reasonable fees and expenses necessary
to obtain such consent or assignment PROVIDED THAT the Relevant
Seller need only exercise its reasonable endeavours in
obtaining the relevant consents or assignments. The Purchaser
shall supply or shall procure that the Relevant Purchaser
supplies, to the Relevant Seller such information and
references regarding the financial position of the Relevant
Purchaser as may reasonably be requested by the Relevant Seller
and shall enter into, or procure that the Relevant Purchaser
enters into, such direct covenants in favour of any relevant
third party as may reasonably be requested in respect of any
rents, royalties, fees or other outgoings or liabilities for
which the Relevant Purchaser will from Completion become
liable. If required by any third party, the Purchaser shall
give, or procure that the Relevant Purchaser gives, such
reasonable additional covenants requested by any third party as
a condition of giving their consent and shall generally use,
and shall procure that
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the Relevant Purchaser uses, all reasonable endeavours to
secure such consent; and
13.1.3 unless and until any relevant Contracts are novated or
assigned, the Vendor will, and shall procure that the other
Relevant Sellers will (so far as it lawfully may) give all
reasonable assistance to the Relevant Purchaser to enable the
Relevant Purchaser to enforce its rights under such Contract.
14 EMPLOYEES
The provisions of Schedule 11 shall apply.
15 EMPLOYEE BENEFIT ARRANGEMENTS
The provisions of Schedule 12 shall apply.
16 THE BUSINESS SELLERS' PROPERTIES IN ENGLAND AND WALES
The provisions of Schedule 14 shall apply.
17 REIMBURSEMENT OF EXPENSES
If the condition set out in Clause 4.1.1 is not satisfied then the
Vendor will reimburse the Purchaser for all of its professional and
other fees, costs and expenses incurred in the conduct of its due
diligence investigations into the Global Operations and in negotiating
this Agreement, the North American Sale and Purchase Agreement and all
other agreements referred to therein up to a maximum of US $5,000,000.
The Purchaser will accompany any claim under this Clause with copies of
relevant invoices and the Vendor will reimburse such fees, costs and
expenses within 7 days of presentation of appropriate invoices.
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18 POST-COMPLETION OBLIGATIONS
18.1 THE ASSUMED LIABILITIES
18.1.1 The Vendor shall procure that if any Relevant Seller becomes
aware after Completion of any claim which constitutes or may
constitute an Assumed Liability, the Relevant Seller shall as
soon as reasonably practicable give written notice thereof to
the Relevant Purchaser and shall not admit, compromise, settle,
discharge or otherwise deal with such claim without prior
consultation with and the prior agreement of the Relevant
Purchaser.
18.1.2 The Vendor shall procure that the Relevant Seller shall at the
Relevant Purchaser's expense take such action as the Relevant
Purchaser may reasonably request to avoid, dispute, resist,
appeal, compromise, defend or mitigate any claim which
constitutes an Assumed Liability but subject to the Relevant
Seller being indemnified and secured to its reasonable
satisfaction by the Purchaser against all Losses which may
thereby be incurred. In connection therewith the Vendor shall,
or shall procure that the Relevant Seller shall, make or
procure to be made available to the Relevant Purchaser or its
duly authorised agents, at the Relevant Purchaser's cost, on
reasonable notice during normal business hours all relevant
books of account, records and correspondence relating to the
Operations which have been retained by the Relevant Seller (and
shall permit the Relevant Purchaser to take copies thereof) for
the purposes of enabling the Relevant Purchaser to ascertain or
extract any information relevant to the claim.
18.2 BONDS AND GUARANTEES
18.2.1 The Purchaser on behalf of itself and the Relevant Purchasers
agrees to use its best efforts with the Relevant Sellers'
assistance to procure, effective from the Completion Date, the
release of the Relevant Seller or any member of the Vendor's
Group from such of the bonds or guarantees issued by banks on
behalf of any of them in respect of the Operations as shown in
Schedule 18
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(for the period up to and including 31 December 1998) as relate
to any of the Contracts, and after 31 December 1998 to
Completion for such bonds or guarantees entered into in the
ordinary course of the Operations or in any event as soon as
practicable after Completion.
18.2.2 After Completion but prior to such release the Purchaser on
behalf of itself and the Relevant Purchasers undertakes to the
Vendor (for itself and as trustee for the Relevant Sellers and
each member of the Vendor's Group) to keep each member of the
Vendor's Group fully, indemnified against any Liabilities
arising after Completion, but only to the extent of any
Relevant Purchaser's or Group Companies' actions relating to
any such bonds or guarantees referred to in Clause 18.2.1 or
their respective underlying contracts or tenders.
18.2.3 After Completion if any of the bonds referred to in Clause
18.2.1 are called then the Relevant Seller, failing which the
Vendor, will indemnify the Relevant Purchaser for any loss
related thereto which is attributable to the actions of any
Relevant Seller or Group Company (as the case may be) before
Completion as agreed to by the Vendor and Purchaser.
18.3 VENDOR'S GENERAL OBLIGATIONS
If at any time after Completion, any Business Seller or any member of
the Vendor's Group receives any monies (other than insurance proceeds)
in respect of any Claim or in respect of any Receivable, then the
Vendor shall procure that the relevant Business Seller or member of the
Vendor's Group shall pay to the Purchaser as soon as reasonably
practicable the amount recovered less any Taxation which would not have
arisen but for the receipt of such monies.
18.4 VENDOR'S CONTINUING OBLIGATION
Notwithstanding Completion, the Vendor shall, and shall procure that
each of the Relevant Sellers shall, execute such documents and do such
acts and things as the
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Purchaser may reasonably require for the purpose of giving to the
Relevant Purchasers the full benefit of all the provisions of this
Agreement.
18.5 NAME
18.5.1 The Purchaser shall, subject to Clause 18.5, have the right to
continue to use and the right to sublicence any of the Relevant
Group Companies to use (but only for so long as such remain
subsidiaries of the Purchaser) any trade marks and trade names
used by the Vendor in relation to the Operations and which are
not comprised in the Assets sold hereunder on a royalty free,
non-exclusive basis for a period of 12 months from the
Completion Date but solely on the products on and in the manner
in which they were being used immediately before Completion;
provided that after 30 days from Completion (or Subsequent
Completion as the case may be) the Purchaser shall, or shall
procure that the Relevant Purchaser shall, use reasonable
endeavours to make clear on all publicity material (excluding
factory signs), cheques letterheads and invoices that the
relevant Businesses and Group Companies are part of the
Purchaser's Group.
18.5.2 The Purchaser shall be entitled to use and have the right to
sublicence to any member of the Purchaser's Group (but only for
so long as such remain subsidiaries of the Purchaser) the name
"BICC" in conjunction only with the name "General Cable" as the
name of any corporate entity, partnership, or other vehicle
which, in all cases, is primarily involved in the manufacture,
sale or distribution of cables.
18.5.3 The Purchaser shall be entitled to use and have the right to
sublicence to any member of the Purchaser's Group (but only for
so long as such remain subsidiaries of the Purchaser) the name
"Brand Xxx" only preceded by the name "General Cable" as the
name of any corporate entity, partnership or other vehicle
which, in all cases, is solely involved in the manufacture,
sale or distribution of Specialty Cables in the United States
of America, Canada or Mexico.
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18.5.4 The Purchaser shall not be entitled to register or use in any
manner whatsoever the trade xxxx "Brand Xxx" or any confusingly
similar trade xxxx on any Data Cable product wherever
manufactured or sold. The Purchaser acknowledges that the
Vendor shall be entitled to use "Brand Xxx" name on any Data
Cable product world-wide and on any Specialty Cables (other
than sales to customers located in the United States, Canada or
Mexico).
18.5.5 The Vendor shall not be entitled to apply for a trade xxxx
registration, register or use in any manner whatsoever employ
the trade xxxx "Brand Xxx" on any Specialty Cable sold to
manufacturers located in the United States, Canada or Mexico.
18.5.6 The Purchaser shall procure that within three months of
Completion (or such later date as the Vendor may agree) it will
remove "BICC" from the name of each Group Company which uses
such name as part of its corporate name, save to the extent
otherwise permitted by clause 18.5.2.
18.5.7 The Vendor shall procure that within three months of Completion
(or such later date as the Purchaser may agree), it shall
change the name of any company within the Vendor's Group to
exclude the word "Pyrotenax" or any combination of words "Rod
and Wire" and "Thermoheat and Wire".
18.5.8 For the purpose of this Clause 18.5:
(i) Specialty Cables are cables sold for use in Airplanes,
Ships, Locomotives, Trucks, or other forms of vehicular
transport (or otherwise currently manufactured in the
United States by the Brand Xxx division of BICC Cables
Corporation other than Data Cables; and
(ii) Data Cables are cables primarily intended for the
transmission of data in local or wide area networks,
examples being category 5, 6, and 7 data cables.
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18.6 LEGAL ASSIGNMENTS OF RECEIVABLES
If it becomes necessary for the Business Purchaser of the Business in
the United Kingdom to enforce any Receivable relating to the Business
in the United Kingdom against the relevant debtor, then if so requested
by the Purchaser, the Vendor and the Purchaser agree to procure that
the Relevant Seller and the Relevant Purchaser enter into a legal
assignment of the relevant Receivable.
18.7 WASTE REGULATIONS
The Purchaser shall, and shall procure that each of the Relevant
Purchasers shall, use its reasonable endeavours to supply any relevant
records, correspondence and information necessary for the Vendor and/or
any other Relevant Seller to meet its residual obligations relating to
the Operations in respect of the period up to Completion under the
relevant national requirements relating to the EC Producer
Responsibility Packaging Waste Regulations.
18.8 RETAINED INTELLECTUAL PROPERTY AND RETAINED KNOW HOW
18.8.1 The Vendor hereby grants and shall procure that each member of
the Vendor's Group shall grant to each of the Relevant
Purchasers with effect from Completion a royalty-free,
irrevocable, perpetual licence to use the Retained Intellectual
Property and Retained Know-How required for the Operations (as
carried on at Completion) to be used for the purposes of the
Operations, as each of the Operations develop from time to
time, with a right to sub-licence to other members of the
Purchaser's Group (so long as such remain Subsidiaries of the
Purchaser's Group).
18.9 DOMAIN NAMES
The Vendor shall cancel or procure the cancellation of the domain name
registration "xxxxxxxx.xxx" and shall take all reasonable steps to
procure the transfer, to the Purchaser of the domain names
"xxxxxxxxxxxx.xxx" and "xxxxxxxx.xxx" and to the extent that the Vendor
is unable to procure such transfer it shall procure that the relevant
domain name registrations are cancelled.
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18.10 REDUNDANCY REIMBURSEMENT
18.10.1 The Vendor shall reimburse the Purchaser for 50 per cent of all
actual cash expenditure incurred by the Vendor up until the
Completion Date or the Purchaser or, as the case may be, any
Relevant Purchaser thereafter until 31 December 1999 up to a
maximum of(pound)6,000,000 (six million pounds) in respect of
redundancy and reorganisation costs which would be properly
chargeable against the reorganisation provision of(pound)10
million identified in note 7 to the accounts relating to the
Global Operations in the agreed terms and other redundancy
provisions of(pound)2,000,000 (two million pounds) in such
Accounts.
18.10.2 The Vendor shall make payment required to be made under Clause
18.10.1:
(i) in respect of cash expenditure made prior to the
Completion Date at Completion; and
(ii) in respect of cash expenditure made by the Purchaser or
Relevant Purchaser within ten Business Days of receipt
of appropriate evidence demonstrating that the
appropriate expenditure has been made.
18.11 EUROPEAN EMPLOYEE INDEMNITY
The Vendor (on behalf of itself and the Relevant Seller) shall fully
indemnify and keep indemnified the Purchaser (on behalf of itself and
the Relevant Purchaser) from and against all and any Losses which the
Relevant Purchaser may incur in relation to any European Employee who,
at the date of this Agreement, earns a basic salary which exceeds
(pound)200,000 per annum, where such Losses arise solely as a result of
or in connection with the change of his employer (provided such change
is significant and to his detriment) occurring by virtue of the
Transfer Provisions under the relevant European Country and/or the
entering into and or completion of this Agreement.
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19 RESTRICTIVE COVENANTS
19.1 SCOPE OF RESTRICTIVE COVENANT
In order to protect the goodwill of the Operations and the Confidential
Information (as defined in Clause 21.2.5 for the purposes of Clause
21.2.1) the Vendor agrees with the Purchaser that without the prior
consent in writing of the Purchaser it will not and it will procure
that to the extent that it is able to do so that no member of the
Vendor's Group will directly or indirectly, whether by itself, its
employees or agents and whether on its own account or on behalf of or
in conjunction with or through the medium of any other person, firm or
company or otherwise howsoever, for a period beginning on Completion
and ending three years after the date of this Agreement:
19.1.1 carry on or be otherwise engaged or interested in any capacity
(whether for reward or otherwise) in, any business which
competes with any of the Businesses anywhere in the world where
the Operations are currently carried on;
19.1.2 in relation to the Businesses, solicit or canvass, seek to
procure or accept orders from or otherwise do business with or
procure directly or indirectly any other person to procure
orders from or do business with any person, firm, company or
other organisation who or which:
(i) was a customer, supplier or agent of the Vendor or any
Group Company in relation to any of the Businesses at
any time during the two years prior to Completion; or
(ii) at the date of Completion was in the process of
negotiating to do business with the Vendor or any Group
Company in relation to any of the Businesses;
or otherwise interfere or seek to interfere with, or with the
continuance of, the supply of goods or services to or by the
Businesses (or any of them) PROVIDED THAT this paragraph shall
not preclude any member of the Vendor's Group from doing
business with any person who is or was a
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customer, supplier or agent of the Vendor's Group prior to
Completion in relation to any business of the Vendor's Group
which is not being transferred under this Agreement;
19.1.3 (with a view to employment) solicit or entice away, or
endeavour to solicit or entice away, from the Purchaser or any
Group Company, any Senior Employee who at Completion was
employed or otherwise engaged by the Vendor (or any Relevant
Seller) in relation to any of the Businesses and whose
employment was transferred to the Purchaser on Completion
(PROHIBITED EMPLOYEES) (provided that nothing in this paragraph
shall prevent any member of the Vendor's Group from making
generalised employment searches, by advertisement or by
engaging firms to conduct searches which are not focussed on
Prohibited Employees).
19.2 EXCLUSIONS FROM RESTRICTIVE COVENANT
The restriction in Clause 19.1 shall not operate to prohibit:
19.2.1 the Vendor from holding in aggregate up to 10 per cent of the
shares of any company which carries on or is about to carry on
any such business as is mentioned in this clause and the shares
of which are listed or dealt on a recognised stock exchange;
19.2.2 the Vendor from fulfilling any obligation of the Vendor
pursuant to this Agreement or the Asset and Share Purchase
Agreement dated 26 February 1999 between the Vendor, Corning
International Corporation and Corning Incorporated or any
General Services and Supply Agreements;
19.2.3 the Vendor from carrying on any business not sold to the
Purchaser pursuant to the terms of this Agreement in particular
the business presently carried on under the name "BICC Brand
Xxx" with manufacturing facilities outside the United States,
Canada and Mexico to be renamed "Brand Xxx"; or
19.2.4 the Companies specified in Part 2 of Schedule 5 from carrying
on their business up to the date of Subsequent Completion (or
if Subsequent
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Completion does not so occur, indefinitely) where the sale and
purchase of those Companies are not completed on or with effect
from the Completion Date.
19.3 SEPARATE AND INDEPENDENT RESTRICTION
Each of the restrictions in Clause 19.1.1, 19.1.2, 19.1.3 and 19.1.4
shall constitute an entirely separate and independent restriction on
the Vendor.
20 GUARANTEES
20.1 VENDOR'S GUARANTEED OBLIGATIONS
In consideration of the Purchaser's Guarantor entering into the
guarantee in Clause 20.3, the Vendor hereby unconditionally and
irrevocably guarantees to the Purchaser and/or the Relevant Purchaser
(as the case may be) the due and punctual performance and observance by
the Relevant Sellers of all their obligations, commitments,
undertakings, warranties and indemnities under or pursuant to this
Agreement or any Subsidiary Agreement or the Tax Deed of Covenant (the
VENDOR'S GUARANTEED OBLIGATIONS).
20.2 RELEVANT SELLERS DEFAULT
If and whenever any of the Relevant Sellers defaults for any reason
whatsoever in the performance of any of the Vendor's Guaranteed
Obligations the Vendor shall forthwith upon written demand served in
accordance with this Agreement unconditionally perform (or procure
performance of) and satisfy (or procure the satisfaction of) the
Vendor's Guaranteed Obligations in regard to which such default has
been made in the manner prescribed by this Agreement and so that the
same benefits shall be conferred on the Purchaser or the Relevant
Purchaser (as the case may be) as it would have received if the
Vendor's Guaranteed Obligations had been duly performed and satisfied
by the Relevant Seller.
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20.3 PURCHASER'S GUARANTEED OBLIGATIONS
In consideration of the Vendor entering into this Agreement, the
Purchaser's Guarantor hereby unconditionally and irrevocably guarantees
to the Vendor and/or the Relevant Seller (as the case may be) the due
and punctual performance and observance by the Purchaser and the other
Relevant Purchasers of all their obligations, commitments,
undertakings, warranties and indemnities under or pursuant to this
Agreement or any Subsidiary Agreement (the PURCHASER'S GUARANTEED
OBLIGATIONS).
20.4 PURCHASER'S DEFAULT
If and whenever any of the Relevant Purchasers defaults for any reason
whatsoever in the performance of any of the Purchaser's Guaranteed
Obligations, the Purchaser's Guarantor shall forthwith upon written
demand served in accordance with this Agreement unconditionally perform
(or procure performance of) and satisfy (or procure the satisfaction
of) the Purchaser's Guaranteed Obligations in regard to which such
default has been made in the manner prescribed by this Agreement and so
that the same benefits shall be conferred on the Vendor or the Relevant
Seller (as the case may be) as it would have received if the
Purchaser's Guaranteed Obligations had been duly performed and
satisfied by the Relevant Purchaser.
21 OTHER PROVISIONS
21.1 ANNOUNCEMENTS
21.1.1 Pending Completion or, in relation to the relevant part of the
Operations, any Subsequent Completion, the Vendor and the
Purchaser shall, subject to the requirements of law or any
regulatory body or the rules and regulations of any recognised
stock exchange, consult together as to the terms of, the
timetable for and manner of publication of, any formal
announcement or circular to shareholders, employees, customers,
suppliers, distributors and sub-contractors and to any
recognised stock exchange or other authorities or to the media
or otherwise which either party may desire or be obliged to
make
81
regarding this Agreement or any Subsidiary Agreement. Any other
communication which the Purchaser or the Vendor may make
concerning the foregoing matters shall, subject to the
requirements of law or any regulatory body or the rules and
regulations of any recognised stock exchange, be consistent
with any such formal announcement or circular as aforesaid.
21.1.2 Subject to Clause 21.1.1, neither party shall pending
Completion or, in relation to the relevant part of the
Operations, any Subsequent Completion, make or authorise or
issue any formal announcement, circular or other communication
concerning the subject matter of this Agreement or any
Subsidiary Agreement.
21.1.3 If Completion does not take place, the Purchaser shall
forthwith hand over or procure the handing over of all
accounts, records, documents and papers of or relating to the
Relevant Sellers which shall have been made available to it and
all copies or other records derived from such materials and
expunge any information derived from such materials or
otherwise concerning the subject matter of this Agreement or
any Subsidiary Agreement from any computer, wordprocessor or
other device containing information Provided that this shall
not apply to information available from public records or
information acquired by a Relevant Purchaser otherwise than
from the Relevant Sellers or their agents.
21.2 CONFIDENTIAL INFORMATION
21.2.1 The Vendor:
(i) shall not and shall procure that no other member of the
Vendor's Group or any director, officer or employee or
adviser or agent of the Vendor's Group shall disclose
to any person Confidential Information; and
(ii) shall use all reasonable endeavours to prevent the
disclosure of Confidential Information by any person
other than by members of the Purchaser's Group.
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21.2.2 The Purchaser:
(i) shall not and shall procure that no other member of the
Purchaser's Group or any director, officer or employee
or adviser or agent of the Purchaser's Group shall
disclose to any person Confidential Information; and
(ii) shall use all reasonable endeavours to prevent the
disclosure of Confidential Information by any person
other than by members of the Vendor's Group.
21.2.3 Clause 21.2.1 does not apply to:
(i) disclosure of Confidential Information to or at the
written request of a Relevant Purchaser;
(ii) disclosure of Confidential Information required to be
disclosed by law, regulation, any revenue authority or
any Stock Exchange;
(iii) disclosure of Confidential Information to professional
advisers for the purpose of advising a Relevant Seller
provided that such advisers shall be made aware of the
confidential nature of such information;
(iv) disclosure of Confidential Information for the purposes
of defending any claim under the Warranties or
otherwise under this Agreement (including making any
claims or counterclaims against third parties pursuant
to Clause 8.4); or
(v) Confidential Information which is in the public domain
other than by the Vendor's breach of Clause 21.2.1.
21.2.4 Clause 21.2.2 does not apply to:
(i) disclosure of Confidential Information to or at the
written request of a Relevant Seller;
(ii) disclosure of Confidential Information required to be
disclosed by law, regulation, any revenue authority or
any Stock Exchange;
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(iii) disclosure of Confidential Information to professional
advisers for the purpose of advising a Relevant
Purchaser provided that such advisers shall be made
aware of the confidential nature of such information;
or
(iv) Confidential Information which is in the public domain
other than by the Purchaser's breach of Clause 21.2.2.
21.2.5 CONFIDENTIAL INFORMATION means, for the purposes of Clause
21.2.1 all information relating to any Group Company's or
Business Seller's business, or financial or other affairs
(including future plans and targets) of any Group Company or
Business Seller and which is not in the public domain and
means, for the purposes of Clause 21.2.2, all information
relating to the business, financial or other affairs (including
future plans and targets) of any company in the Vendor's Group
and which is not in the public domain.
21.3 REMEDIES
21.3.1 This Agreement, the Subsidiary Agreements and the Tax Deed
Covenant contain the whole agreement between the parties
relating to the subject matter of this Agreement at the date
hereof to the exclusion of any terms implied by law which may
be excluded by contract. The Purchaser on behalf of itself and
the other Relevant Purchasers acknowledges that it has not been
induced to enter this Agreement by, and so far as is permitted
by law and except in the case of fraud, hereby waives any
remedy in respect of any warranties, representations and
undertakings not incorporated into this Agreement.
21.3.2 So far as is permitted by law and except in the case of fraud,
the parties agree and acknowledge that the only right and
remedy which shall be available to a Relevant Purchaser in
connection with or arising out of or related to any of the
statements contained in the Warranties shall be damages in
contract for breach of this Agreement and not rescission of
this Agreement, nor damages in tort or under statute (whether
under the Xxxxxxxxxxxxxxxxx Xxx 0000 or otherwise), nor any
other remedy.
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21.3.3 Each party to this Agreement confirms it has received
independent legal advice relating to all the matters provided
for in this Agreement, including the provisions of this Clause,
and agrees, having considered the terms of this Clause and the
Agreement as a whole, that the provisions of this Clause are
fair and reasonable.
21.3.4 In Clause 21.3.1 to 21.3.3, this Agreement includes the
Disclosure Letter and all documents entered into pursuant to
this Agreement.
21.4 SUCCESSORS AND ASSIGNS
21.4.1 Either the Vendor or the Purchaser may, except as otherwise
expressly provided in this Agreement and without the consent of
the other, assign to an Associated Company the benefit of all
or any of the other party's obligations under this Agreement
provided however that such assignment shall not be absolute but
shall be expressed to have effect only for so long as the
assignee remains an Associated Company.
21.4.2 This Agreement is, subject to Clause 21.4.1, personal to the
parties to it. Accordingly, neither the Purchaser nor the
Vendor may, without the prior written consent of the other,
assign the benefit of all or any of the other's obligations
under this Agreement, nor any benefit arising under or out of
this Agreement nor shall the Purchaser be entitled to make any
claim against the Vendor in respect of any loss which it does
not suffer in its own capacity as beneficial owner of the
Shares and/or Businesses.
21.5 VARIATION ETC.
No variation of this Agreement shall be effective unless in writing and
signed by or on behalf of each of the parties to this Agreement.
21.6 TIME OF THE ESSENCE
Any time, date or period referred to in any provision of this Agreement
may be extended by mutual agreement between the parties but as regards
any time, date or
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period originally fixed or any time, date or period so extended time
shall be of the essence.
21.7 THIRD PARTY COSTS
The Vendor shall bear all legal, accountancy and other third party
costs and expenses incurred by it in connection with this Agreement,
the Subsidiary Agreements and the Tax Deed of Covenant and the sale of
the Operations. The Purchaser shall bear all such costs and expenses
incurred by it and any other Relevant Purchaser.
21.8 INTEREST
If any Relevant Seller or any Relevant Purchaser defaults in the
payment when due of any sum payable under this Agreement, the
Subsidiary Agreements or the Tax Deed of Covenant (whether determined
by agreement or pursuant to an order of a court or otherwise) their
liability shall be increased to include interest on such sum from the
date when such payment is due until the date of actual payment (as well
after as before judgment) at a rate per annum of 2 per cent above the
base rate from time to time of The Hong Kong and Shanghai Banking
Corporation Limited. Such interest shall accrue from day to day.
21.9 SET-OFF
Under no circumstances shall any amounts (if any) payable by any
Relevant Purchaser to any Relevant Seller or by any Relevant Seller to
any Relevant Purchaser pursuant to this Agreement be set off against
each other.
21.10 LONG STOP LIMITATION OF LIABILITY
Notwithstanding any other provision in this Agreement or any provision
in any Subsidiary Agreement or the Tax Deed of Covenant, under no
circumstances shall any Relevant Seller have any liability whatsoever
pursuant to this Agreement, any Subsidiary Agreement or the Tax Deed of
Covenant following the twentieth anniversary of the date of this
Agreement.
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21.11 NOTICES
21.11.1 Any notice or other communication requiring to be given or
served under or in connection with this Agreement shall be in
writing and, other than in relation to Clause 4.5, shall be
sufficiently given or served if delivered or sent:
(i) in the case of any of the Vendor or Relevant Sellers to
such party care of:
BICC plc
Xxxxxxxxxx Xxxxx
Xxxxxxx Xxxxx
Xxxxxx X0X 0XX
Fax: 0000 000 0000
Attention: The Company Secretary of BICC plc
(ii) in the case of any of the Relevant Purchasers or the
Purchaser's Guarantor to such party care of:
General Cable Corporation
0 Xxxxxxxxx Xxxxx
Xxxxxxxx Xxxxxxx
Xxxxxxxx 00000
Fax: (00 0) 000 000 0000
Attention: General Counsel
21.11.2 Any such notice or other communication shall be delivered by
hand or sent by courier, fax or prepaid first class post. If
sent by courier or fax such notice or communication shall
conclusively be deemed to have been given or served at the time
of despatch, in case of service in the United Kingdom, or on
the following Business Day in the case of international
service. If sent by post such notice or communication shall
conclusively be deemed to have been received two Business Days
from the time of posting, in the case of inland mail in the
United Kingdom, or three Business Days from the time of posting
in the case of international mail.
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21.12 SEVERANCE
If any term or provision of this Agreement is held to be illegal or
unenforceable, in whole or in part, under any enactment or rule of law,
such term or provision or part shall to that extent be deemed not to
form part of this Agreement but the enforceability of the remainder of
this Agreement shall not be affected.
21.13 REFERENCES TO THE REPORTING ACCOUNTANTS
Whenever any matter is referred under this Agreement (other than Clause
9) to the Reporting Accountants for determination, the provisions of
Clause 9 which apply to the Reporting Accountants' determination of the
Net Asset Statement shall apply to their determination of any such
matter.
21.14 GENERAL SERVICES AND SUPPLY AGREEMENTS
The Vendor and Purchaser hereby agree that they will need to settle by
Completion or as soon as practicable thereafter the General Services
and Supply Agreements.
21.15 TRANSITIONAL SERVICES
The Vendor agrees to use reasonable endeavours to provide to the
Operations such transitional services, such as central payroll and
other functions, at cost, as are reasonably requested by the Purchaser
and which are required for the Operations for a period of up to 12
months from Completion and the Purchaser shall give at least three
months' written notice prior to any termination of the provision of
transitional services by the Vendor.
21.16 COUNTERPARTS
This Agreement may be executed in any number of counterparts each of
which shall be deemed an original, but all the counterparts shall
together constitute one and the same instrument.
88
21.17 GOVERNING LAW AND SUBMISSION TO JURISDICTION
This Agreement and the Subsidiary Agreements and the documents to be
entered into pursuant to them, save as expressly referred to therein,
shall be governed by and construed in accordance with English law and
the parties irrevocably agree that the courts of England are to have
exclusive jurisdiction to settle any disputes which may arise out of or
in connection with this Agreement, the Subsidiary Agreements and such
documents.
21.18 APPOINTMENT OF PROCESS AGENTS
21.18.1 The Purchaser irrevocably appoints Norose Notices Limited at
Xxxxxxx Xxxxx, Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX as its agent
for the service of process in England in relation to any matter
arising out of this Agreement, service upon whom shall be
deemed completed whether or not forwarded to or received by the
Purchaser.
21.18.2 The Purchaser shall inform the Vendor, in writing, of any
change in the address of its process agent within 28 days of
such change.
21.18.3 If such process agents cease to have an address in England, the
Purchaser irrevocably agrees to appoint new process agents
acceptable to the Vendor and to deliver to the Vendor within 14
days a copy of a written acceptance of appointment by its new
process agents.
21.18.4 Nothing contained in this Agreement shall affect the right to
serve process in any other manner permitted by law or the right
to bring proceedings in any other jurisdiction for the purposes
of the enforcement or execution of any judgment or other
settlement in any other courts.
89
IN WITNESS whereof this Agreement has been duly executed on the date
first set out above
SIGNED by Xxxxx Xxxxxx on |
behalf of BICC plc in the |
presence of - Xxxxx Xxxxxx
Xxxx Xxxxx |
Linklaters |
Xxx Xxxx Xxxxxx
Xxxxxx XX0X 0XX
SIGNED by Xxxxxx X. Xxxxxx |
on behalf of GK Technologies, |
Incorporated in the presence - Xxxxxx X. Xxxxxx
of |
Xxxxx Xxxxxxxxx |
Xxxxxxx Xxxxx
Xxxxxxxx Xxxxxx
Xxxxxx XX0X 0XX
SIGNED by Xxxxxx X. Xxxxxx |
on behalf General Cable |
Corporation in the presence of - Xxxxxx X. Xxxxxx
Xxxxx Xxxxxxxxx |
Xxxxxxx Xxxxx x
Xxxxxxxx Xxxxxx
Xxxxxx XX0X 0XX
90
SCHEDULE 1
OPERATIONS
1 England and Wales (all as defined in Part 2 of Schedule 14)
1.1 Erith
(i) Design, manufacture, marketing and installation of High
Voltage and Extra High Voltage land and subsea cable
systems
(ii) Technology research and development
(iii) Jointing and installation training school
1.2 Prescot
(i) Design, manufacture and distribution of components for
energy cable networks
(ii) Management services for BICC Energy Cables in UK,
Europe, Africa and the Middle East
(iii) Manufacture of mineral-insulated cable and accessories
(iv) Manufacture of copper rod and wire
1.3 Wrexham (excluding Wrexham II)
(i) Design, manufacture and marketing of low and medium
voltage power cable systems (mainly for power
distribution networks)
(ii) Technology research and development
1.4 Nottingham
(i) Manufacture of wire braid
1.5 Hebburn
(i) Manufacture of mineral-insulated thermocouple and
heating cable and accessories
(ii) Manufacture of monitoring cables for aircraft
applications
91
1.6 Leigh (excluding the Brand Xxx Premises)
(i) Design, manufacture and marketing of industrial and
specialist cables (including compounding)
1.7 Swansea
(i) Sales office
2 ITALY:
2.1 Settimo Site
(i) Design manufacture and marketing of low and medium
voltage power cable systems (mainly for power
distribution networks)
(ii) Compound unit (elastomeric)
2.2 Ascoli Site
(i) Design and manufacture of general industrial and
metallic telecommunications cables.
3 SPAIN:
Manlleu Site -
| Design, manufacture and marketing of both
| transmission and distribution land power
Montcada Site | cable systems and construction power and
| wiring cable systems and general industrial
| cables
Abrera Site -
Barcelona Site
(i) Management services for energy cables
92
3.5 Teulada Site -
|
|
3.6 Pamplona Site | Sales Services
|
|
3.7 Seville Site |
|
|
3.8 Bilbao Site |
|
|
3.9 Valencia Site -
4 NORWAY:
(i) Distribution services
5 BRAZIL:
(i) Import and sales services for energy cables
6 PORTUGAL:
6.1 Morelena Site
(i) Design, manufacture and marketing of distribution power
cable systems, construction power and wiring cable
systems and metallic telecom cables, optical cables and
general industrial cables
(ii) Management services
6.2 Oporto Site
(i) Sales services for energy and metallic telecom cables
7 MOZAMBIQUE:
(i) Manufacture and sale of energy cables
8 ANGOLA:
(i) Sale of energy cables
93
9 DUBAI:
(i) Design, manufacture and marketing of distribution and
construction power and wiring cable systems
10 EGYPT:
10.1 Site at Giza, Cairo
(i) Design, manufacture and marketing of construction wiring
cables systems
10.2 Zamalek Site
(i) Sales/management services
11 JERSEY:
(i) Holding company services for Egyptian companies
12 ZIMBABWE:
Harare Site
(i) Design, manufacture and marketing of energy distribution
and construction power and wiring cable systems and
metallic telecom cables
(ii) Management services
13 CHINA:
13.1 Shanghai Site
(i) Sales services
13.2 Beijing Site
(i) Xxxxxxxxxxxxxx xxxxxx
00 XXX XXXXXXX:
14.1 Christchurch Site
(i) Design, manufacture and sale of energy and metallic
telecommunication cables systems
94
(ii) Sale only of optical cables
14.2 Wellington Sites - Distribution of energy and telecom cables;
|
14.3 Auckland Site - administration and sales
15 FIJI:
(i) Design, manufacture and sale of energy cables
16 SINGAPORE:
16.1 Office at 000 Xxxxxxx Xxxx (00xx Xxxxx)
(x) Sales services
16.2 Office at 000 Xxxxxxx Xxxx (21st Floor)
(i) Management services
16.3 Pasir Panjang Sites
(i) Management/sales services
17 MALAYSIA:
Kuala Lumpur Sites (Shah Alam and Bukit Raja)
(i) Design, manufacture and sale of energy cables and
aluminium rod
18 INDONESIA:
Jakarta Site
(i) Design, manufacture and sale of energy and optical
telecom cables (non-operational)
19 HONG KONG:
Wanchai and Chai Wan Sites
(i) Sales services for energy cables
20 SAUDI ARABIA:
(i) Sales Services
00
00 XXX XXXXX:
(i) Sales Services
22 QATAR:
(i) Sales Services
23 BAHRAIN:
(i) Sales Services
24 ARGENTINA:
(i) Distribution Services
25 THAILAND:
Bangkok Site
(i) Sales Services
26 TAIWAN:
(i) Representative Office
27 GERMANY:
Xxxxx and Kopernick Sites
(ii) Design, manufacture and marketing of medium-voltage and
other energy cables and metallic telecom cables
(iii) Design, manufacture and marketing of optical power
ground wire
96
SCHEDULE 2
PART 1
DETAILS OF THE SHARES AND THE BUSINESSES
1 Particulars of Share Sellers and Shares to be Sold
(1) (2)
NAME OF SHARE SELLER COMPANIES AND
SHARES SOLD
(*100% OF THE ISSUED SHARE CAPITAL)
1.1 BICC Cables Energia y (i) BICC General Cable SA*
Comunicaciones SA 510,000 nominative shares of 5,000 pesetas each
1.2 BICC Overseas Investments (i) BICC Ceat Cavi Srl*
Limited nominal quota of 80,000,000,000 lire
(ii) BICC Portugal SGPS SA*
600,000 non-redeemable shares of Esc 1,000 each and
875,000 redeemable shares of Esc 1,000 each
(iii) BICC CAFCA Limited
2,046,630 ordinary shares of Z$0.50 each in the name of
BICC Overseas Investments Limited and 21,029,544
ordinary shares of Z$0.50 each in the name of Midland
Bank Nominees
(74% of the issued share capital)
(iv) Dubai Cable Co. Limited
11,955 shares of Dhs 1,000 each
(30% of the issued share capital)
(v) BICC Cables Asia-Pacific Pte Ltd
95,779,000 "A" shares of S$1 each
(50% of the issued share capital)
1.3 BICC plc (i) BICC - Ducab Investments Limited
2,285,002 ordinary shares of(pound)0.01 each
(50% of the issued share capital)
(ii) RPG-BICC Power Cables Pvt Ltd
260,013 shares of 10 Rp each
(26% of the issued share capital)
97
(1) (2)
NAME OF SHARE SELLER COMPANIES AND
SHARES SOLD
(*100% OF THE ISSUED SHARE CAPITAL)
1.4 BICC International Holdings (i) BICC Cables Asia Pacific Pte Ltd
Pty Limited
95,779,000 "B" shares of S$1 each
(50% of the issued share capital)
1.5 BICC Holdings New Zealand BICC Cables New Zealand Limited*
Limited
48,200 ordinary shares of NZ$1 each
1.6 BICC Cables Pty Ltd (i) Dominion Wire & Cables Limited
153,000 ordinary shares of F$1 each
(51% of the issued share capital)
1.7 Electric Transmission Limited (i) Trans-Power Cables Pte Ltd*
1,500,000 ordinary shares of S$1 each
1.8 Mayfair Place Investments (i) BICC Supertension Cables (1980) Limited*
Limited
98 ordinary shares of (pound)1 each and 4,999,900 redeemable
ordinary shares of (pound)1 each held in the name of Mayfair
Place Investments and 2 ordinary shares of (pound)1 each held
by Bical Nominees Limited
1.9 BICC Cables Projects (i) 50% interest in Kaiser KWO Kabel Engergie Gmbh & Co
Limited
(ii) 50% interest in Kaiser KWO Kabel Telekom Gmbh & Co
98
2 PARTICULARS OF THE SUBSIDIARIES
JURISDICTION COMPANY BICC SHAREHOLDER
2.1 Portugal BICC Celcat, Cabos de Energia de BICC Portugal SGPS SA (50.7%)
Telecomunicacoes SA
2.2 Mozambique Cel Moque-Fabrica Nacional de BICC Celcat, Cabos de Energia e
Contudores Electricos SARL Telecomunicacoes SA (29%)
BICC CAFCA Limited (18%)
2.3 Angola Xxxxxx-Fabrica de Contudores BICC Celcat, Cabos de Energia e
Electricos de Angola SARL Telecomunicacoes SA
2.4 Egypt BICC Egypt SAE BICC - Ducab Investments Ltd
2.5 Egypt BICC Egypt Trading Ltd BICC Egypt SAE
2.6 Zimbabwe BICC (Central Africa) (Private) BICC CAFCA Limited
Limited
2.7 Zimbabwe Zimbabwe Cables (Pte) Limited BICC CAFCA Limited
2.8 Norway BICC NORSPA A/S BICC General Cable SA (51%)
2.9 Brazil BICC Novacoes Ltda BICC General Cable SA (80%)
2.10 Argentina BICC Cables Argentina SA BICC General Cable SA
(1 share is owned by BICC
Cables Energia y
Comunicaciones, SA)
2.11 Brunei BICC Cables (Brunei) BICC Energy Cables Pte Ltd
Sdn Bhd
2.12 Singapore BICC Energy Cables Pte Ltd BICC Cables Asia - Pacific Pte Ltd
2.13 China BICC Cables China Ltd BICC Cables Asia - Pacific Pte Ltd
2.14 Malaysia Power Cables Malaysia BICC Cables Asia - Pacific Pte Ltd
Sdn Bhd (40%)
2.15 Malaysia BICC (Malaysia) Sdn Bhd BICC Cables Asia - Pacific Pte Ltd
(30%)
2.16 Malaysia BICC Cables Malaysia Pte Ltd BICC Cables Asia - Pacific Pte Ltd
2.17 Singapore Reliance Cables Pte Ltd BICC Cables Asia - Pacific Pte Ltd
2.18 Indonesia PT BICC Berca Cables BICC Cables Asia - Pacific Pte Ltd
(50%)
2.19 Bahrain BICC Middle East Traders Dubai Cable Co Ltd (45%)
2.20 Qatar JBK BICC Dubai Cable Co Ltd (49%)
2.21 Abu Dhabi BICC Al Jallaf Dubai Cable Co Ltd (49%)
99
SCHEDULE 2
PART 2
PARTICULARS OF THE BUSINESS SELLERS AND THE BUSINESSES TO BE SOLD
(1) (2)
NAME OF BUSINESS SELLER BRIEF DESCRIPTION OF
BUSINESS/ASSET TO BE SOLD
1 BICC plc See paragraph 1 of Schedule 1
2 BICC Cables Limited The benefit of the Contracts
entered into by it as undisclosed
agent for any Vendor Group
Company in relation to the
Businesses
3 BICC Components Limited The benefit of the Contracts
entered into by it as undisclosed
agent for any Vendor Group
Company in relation to the
Businesses.
100
SCHEDULE 3
ALLOCATION OF CONSIDERATION
The Purchase Price shall be allocated between the Shares and the Businesses as
follows:
(1) (2) (3) (4)
NAME OF SELLER JURISDICTION PARTICULARS OF ALLOCATION
COMPANY/BUSINESSES (POUND)
3.1 BICC plc UK Sale of assets- see 96,000,000
paragraph 1 of Schedule 1
3.2 BICC plc Jersey BICC - Ducab Investments nominal
Limited
3.3 BICC plc India RPG - BICC Power Cables nominal
Pvt Ltd.
3.4 BICC Cables Energia Spain BICC General Cable SA 19,000,000
y Comunicaciones SA
3.5 BICC Cables Projects Germany Kaiser KWO Kabel 10,000,000
Limited Energie GmbH & Co and
Kaiser KWO Kabel Telekom
GmbH & Co
3.6 BICC Overseas Dubai Dubai Cable Co. Limited 23,000,000
Investment Limited
3.7 BICC Overseas Italy BICC Ceat Cavi Srl 1,000,000
Investments Limited
3.8 BICC Overseas Portugal BICC Portugal SGPS SA 3,400,000
Investments Limited
3.9 BICC Overseas Zimbabwe BICC CAFCA Limited 1,000,000
Investments Limited
3.10 BICC Overseas Malaysia, BICC Cables Asia-Pacific Pte 1,500,000
Investments Limited Singapore, Limited
Indonesia and
China
3.11 BICC International Malaysia, BICC Cables Asia-Pacific Pte 1,500,000
Holdings Pty Limited Singapore, Limited
Indonesia and
China
101
3.12 BICC Holdings New New Zealand BICC Cables New Zealand 11,000,000
Zealand Limited Limited
3.13 Electric Transmission Singapore Trans-Power Cables Pte Ltd 1,000,000
Limited
3.14 Mayfair Place UK BICC Supertension Cables 200,000
Investments Limited (1980) Limited
3.15 BICC Cables Pty Ltd Fiji Dominion Wire & Cables 2,000,000
Limited
The allocation of the Purchase Price between each of the Business
Sellers' Assets included in a sale of a Business shall, subject to
Clause 9.6.6 (iii) of the Agreement, be agreed between the Vendor and
the Purchaser within seven Business Days prior to Completion or,
failing agreement within this period, shall be referred to the
Reporting Accountants for determination, such determination to be made
by Completion.
Adjustments to the Purchase Price (pursuant to Clause 9 or otherwise)
shall be allocated as agreed between the Vendor on behalf of itself and
the other Relevant Sellers and the Purchaser on behalf of itself and
the other Relevant Purchasers, or failing agreement, as determined by
the Reporting Accountants on the application of either party.
102
SCHEDULE 4
INTERNAL REORGANISATIONS
1 BICC Brand Xxx Inc and BICC Brand Xxx Pte Ltd will be sold by BICC
Cables Asia - Pacific Pte Ltd to BICC Overseas Investments Ltd.
2 BICC General Cable SA will distribute surplus cash by way of dividend
to BICC Cables Energia y Communicaciones SA; and/or BICC Cables Energia
y Communicaciones SA will subscribe further equity in BICC General
Cable SA to the extent necessary to enable BICC General Cable SA to
repay all indebtedness.
0 XXXX Xxxxxxxx Xxx Xxxxxxx Limited will subscribe for further equity in
BICC Cables New Zealand Limitd to discharge a net intra-group liability
of NZ$ 115 million.
4 BICC Overseas Investments Ltd will subscribe for equity in BICC Ceat
Cavi Srl to the extent necessary for BICC Ceat Cavi Srl to repay
substantially all indebtedness and to eliminate any deficiency of net
assets.
5 The shares which BICC Ceat Cavi Srl owns in BICC Cables Energia y
Communicaciones SA will be disposed of by BICC Ceat Cavi Srl either by
sale to BICC Overseas Investments Ltd or by BICC Cables Energia y
Communicaciones SA redeeming the said shares.
6 BICC plc will subscribe for further shares in BICC Ducab Investments
Ltd to enable BICC Ducab Investments Ltd to subscribe for further
shares in BICC Egypt SA.
7 100% of the shares in General Cable Sistemas SA are expected to be
transferred to BICC General Cable S.A. by 17 April 1999.
8 BICC plc may subscribe further equity in BICC Cables Asia - Pacific Pte
Ltd to enable it or its 100% subsidiaries to discharge all
indebtedness.
103
9 BICC will continue to negotiate with Hong Kong and Shanghai Banking
Corporation Limited (Indonesia branch) to finalise the documentation
relating to the loan arrangements with PT BICC Berca Cables.
10 Recapitalisation of BICC Cables Asia-Pacific Pte and possible disposals
and/or liquidations by BICC Cables Asia-Pacific Pte of dormant
companies.
11 BICC General Cable SA will sell the property kown as c/Cresques 00-00,
Xxxx Xxxxxx, Xxxxxxxxx, Xxxxx to BICC Cables Energia y Comunicaciones
S.A. or to another entity nominated by BICC Plc.
104
SCHEDULE 5
CONDITIONS APPLICABLE TO THE PURCHASE OF CERTAIN SHARES/BUSINESSES
(1) (2)
COMPANY/BUSINESS CONDITION
PART 1
(I) BICC Ceat Cavi Srl The Italian Antitrust Authority having received due
notification of the proposed acquisition of the
Business by the Purchaser or by the Relevant
Purchaser pursuant to Act 287/1990 and (i) having
issued within the subsequent 30 (thirty) days its
decision not to start an investigation into such
proposed acquisition in accordance with section
16.4 of Act 287/1990 or (ii) having issued within
such time period no decision and no request to be
supplied with further information and/or documents
in addition to the information and/or documents
supplied by the Purchaser or the Relevant Purchaser
as part of the above notification.
(II) the Business in the United Kingdom The receipt by one or both of the parties of a
statement in writing by the Minister for
Enterprise, Trade and Employment of Ireland,
indicating that she has decided not to make an
order under section 9 of the Mergers, Takeovers and
Monopolies (Control) Act, 1978 (as amended) in
relation to the sale contemplated by the Agreement
or, in the event of a conditional order under that
Act having been made by the Minister, the parties,
acting reasonably, being satisfied with and
accepting the conditions of that order.
105
(1) (2)
COMPANY/BUSINESS CONDITION
(iii) BICC Cables New Zealand Limited 1. Receipt by the Purchaser, in writing on terms
acceptable to the Purchaser, of any clearances or
authorisations as may be considered reasonably
necessary by the Purchaser under Part III of the
Commerce Xxx 0000 for the implementation of this
Agreement.
2. Receipt by the Purchaser, in writing on terms
reasonably acceptable to the Purchaser, of any
consents required under the Overseas Investment
Regulations 1995 for the implementation of this
Agreement.
PART 2
(i) Dubai Cable Co Limited and 1. Receipt of the consent of Dubai Cable Company
BICC-Ducab Investments Limited Limited (DUCAB) in a form reasonably satisfactory
to the Purchaser to the transfer of the shares in
BICC-Ducab Investments Limited and a waiver of
Ducab's pre-emption rights in respect thereof.
2. Receipt of a "no objection" letter in a form
reasonably satisfactory to the Purchaser from the
legal adviser to the Ruler to the transfer of the
shares in Ducab.
3. Receipt in a form reasonably satisfactory to the
Purchaser of the consent of each of the Government
of Dubai and the General Industrial Corporation of
Abu Dhabi to the transfer of the shares in Ducab
and the waiver of their pre-emption rights in
respect
106
(1) (2)
COMPANY/BUSINESS CONDITION
thereof.
4. Receipt by the Purchaser of a waiver, in a form
reasonably satisfactory to the Purchaser, from each
of the Nationale Society General Bank SA and
International Company for Electrical and
Electronics Industries SAE of their right of
termination for change of control pursuant to the
joint venture agreement in respect of BICC Egypt
SAE.
5. Receipt by the Purchaser of any consent, in a form
reasonably satisfactory to the Purchaser, of the
Egyptian General Authority for Investment required
in respect of the change of control of BICC Egypt
SAE.
(ii) BICC CAFCA Limited 1. Receipt of a waiver or appropriate release, in a
form reasonably satisfactory to the Purchaser, from
any obligations under the rules of the Zimbabwe
Stock Exchange to make a bid for all the shares in
BICC CAFCA Limited.
2. Receipt by the Purchaser, in a form reasonably
satisfactory to the Purchaser, of any permission
required from the Reserve Bank of Zimbabwe pursuant
to the Exchange Control (General) Order, 1996.
107
(1) (2)
COMPANY/BUSINESS CONDITION
(iii) BICC Cables Asia-Pacific Pte Ltd and 1. Receipt by the Purchaser of a waiver, in a form
Trans-Power Cables Pte Ltd reasonably satisfactory to the Purchaser, from PT
Berca Indonesia in respect of its right of
termination for change of control pursuant to the
joint venture agreement in respect of PT BICC Berca
Cables Limited.
(iv) Dominion Wire & Cables Limited 1. Receipt by the Purchaser of the consent, in a
form reasonably satisfactory to the Purchaser, of
the Reserve Bank of Fiji to the transfer of shares
in Dominion Wire and Cable Limited.
2. Receipt by the Purchaser of the consent, in a
form reasonably satisfactory to the Purchaser, of
the other shareholder in Dominion Wire and Cable
Limited to the transfer of the shares therein, and
the waiver of its pre-emption rights in respect of
such shares.
(v) RPG-BICC Power Cables Pvt Ltd 1. Receipt by the Purchaser of the consent, in a
form reasonably satisfactory to the Purchaser, of
RPG Industries Limited to the transfer of the
shares in RPG-Orion Power Cables Limited and the
waiver of its pre-emption rights in respect
thereof.
2. Receipt by the Purchaser of the consent, in a
form reasonably satisfactory to the Purchaser, of
the Reserve Bank of India to the transfer of the
shares in RPG-Orion Power Cables Limited.
(vi) BICC Portugal SGPS SA 1. Receipt by the Purchaser of a waiver, in a form
108
(1) (2)
COMPANY/BUSINESS CONDITION
reasoanbly satisfactory to the Purchaser, from the
Portugese Stock Exchange of the obligation to make
an offer for 100% of the shares in BICC Celcat,
Cabos de Energia de Telecommunicaciones SA
109
SCHEDULE 6
PART 1
COMPLETION
PART A: COMPLETION
(1) (2)
RELEVANT JURISDICTION XXXXXXXX XXXXXXXXXX XXXXXXXX
0 Xxxxxx Xxxxxxx Linklaters & Paines
1345 Avenue of the Xxxxxxxx
00xx Xxxxx, Xxx Xxxx, XX 00000
2 Spain Uria & Xxxxxxxx,
Xxxxx Xxxx 0, 00000 Xxxxxx
0 Xxxxx Marena, Aghina, Bonvicini e Ludergnani,
Xxx xxxxx Xxxxxxx, 0, 00000 Xxxxxx
4 New Zealand Xxxxxxx Xxxxxxxx,
Xxxxxxx Grierson Building, 00-00 Xxxxxx Xxxxxx,
Xxxxxxxxx Xxxxxx Xxxxxxxx
PART B: SUBSEQUENT COMPLETION
(1) (2)
RELEVANT JURISDICTION RELEVANT COMPLETION LOCATION
1 Dubai Xxxxxx Xxxx, 501-502 City Tower
1 Xxxxxx Xxxxx Xxxx, X.X. Xxx 0000
Xxxxx
2 Jersey To Be Determined
3 Zimbabwe Scanlen & Holderness
CABS Centre
74 Xxxxx Xxxx Avenue
4 Germany Xxxxxxxxx & Xxxxxx,
Xxxxxxxxxxxxxxxx 00, X-00000, Xxxx
0 Xxxxxxxx Xxxxxxxxx Xxxxxxx, Xxxxxxx Xxxxxx & Asociados,
110
Praca Marques de Pombal, 1-8(0), 0000-000 Xxxxxx
6. Singapore Xxx & Xxx
Xxxxx 00, XXX Xxxxxxxx, Xx. 0 Xxxxxxx Xxx,
Xxxxxxxxx 000000
7 Fiji Xxxxxxx Grierson,
Xxxxxxx Xxxxxxxx Building, 00-00 Xxxxxx Xxxxxx,
Xxxxxxxxx Xxxxxx Xxxxxxxx
0 Xxxxx To Be Determined
111
SCHEDULE 6
PART 2
1 On the Completion Date the Vendor shall, or shall procure that the
Relevant Seller shall, deliver or make available to the Purchaser (or
the Relevant Purchaser):
1.1 evidence of the due fulfilment of the conditions set out in Clause 4
and Schedule 5 for which the Relevant Seller is responsible;
1.2 duly executed transfers or assignments of the Business Sellers'
Properties in England and Wales together with the relevant documents of
title (duly scheduled) save for the Leased Properties insofar as
consents to assign are required but have not been obtained by the
Completion Date in which case the relevant provisions of Schedule 14
shall apply;
1.3 such conveyances, transfers, assignments and novations (duly signed or
sealed as a deed by the Relevant Seller and, if so reasonably required
by the Vendor, the Relevant Purchaser) in relation to the Contracts
together with the relative documents of title and such requisite Third
Party Consents as the Relevant Seller may have obtained provided that
the Vendor shall not be obliged to convey, assign, transfer or novate,
or procure the conveyance, assignment, transfer or novation of, any
Business Sellers' Assets otherwise than to or in favour of the
Purchaser where any relative Third Party Consent is required and has
been obtained in favour of the Purchaser only;
1.4 statutory Declarations in agreed terms relating to the matters referred
to in the Special Conditions of Sale;
1.5 an undertaking to use reasonable endeavours to assist the Purchaser to
answer any requisitions which may be raised by HM Land Registry in
connection with any of the Purchaser's applications to register the
relevant transfers to the Purchaser of each of the Business Sellers'
Properties which are registrable;
112
1.6 those Business Sellers' Assets comprised in the Operations which are
capable of transfer by delivery;
1.7 in each case where the said information is not at the Properties all
books, records and other information relating to the Operations or
Relevant Employees of the Operations and all information relating to
customers, suppliers, agents and distributors and other information
relating exclusively or primarily to the Operations or the relevant
Employees of the Operations as the Purchaser may reasonably require and
copies or, at the Vendor's option, originals of any such books,
records, documents or other information in the possession or control of
a Relevant Seller which relate only in part to the Operations and which
the Purchaser may reasonably require;
1.8 resolutions of the, Board of Directors of each of the Relevant Sellers
for acknowledgement or approval of the transfer or assumption of the
Businesses or Assumed Liabilities whenever any such acknowledgement or
approval is required by law or under the constitutional documents of
the Relevant Seller;
1.9 Deeds of Assignment or Novation in the agreed terms for the transfer or
novation of all the Contracts in the Operations and with effect from
the Completion Date, duly signed by or for the relevant Business Seller
and (where necessary) the Purchaser or the Relevant Purchaser;
1.10 subject to the matters specified in paragraph 3.6 of Part 1 of Schedule
14 vacant possession of the Business Sellers' Properties in England and
Wales;
1.11 releases in respect of any Encumbrances affecting any of the Business
Sellers' Assets or the Businesses;
1.12 the Tax Deed of Covenant duly executed by the Covenantor named in it;
2 OTHER ISSUES
2.1 The Vendor and the Purchaser shall respectively procure that each
Relevant Seller and each Relevant Purchaser uses all reasonable
endeavours together to procure such transfers of Environment Permits
and written notification to any Environment
113
Authorities as are required by Environmental Laws or pursuant to any
Environmental Permit.
2.2 The Vendor and the Purchaser shall respectively procure that each
Relevant Seller and each Relevant Purchaser complies in all respects
with its obligations under the relevant Subsidiary Agreement on
Completion (or Subsequent Completion, as the case may be).
3 BOARD RESOLUTIONS
On Completion the Vendor shall procure the passing of board resolutions
(to the extent necessary) (if requested by the Purchaser) revoking all
existing authorities given to banks (in respect of the operation of its
bank accounts) and giving authority in favour of such persons as the
Relevant Purchaser may nominate to operate such accounts.
4 STAMP DUTY
The Vendor and the Purchaser agree to cooperate in mitigating liability
to stamp duty (and to procure cooperation by any Relevant Seller and
Relevant Purchaser to mitigate such liability) in respect of this
Agreement and any document contemplated by this Agreement and in
particular to execute any documents in suitable jurisdictions which do
not require the payment of stamp duty or any other transaction tax
merely because a document is executed there and only to bring such
documents into the United Kingdom after informing the other party at
least 21 days in advance.
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SCHEDULE 6
PART 3
VENDOR'S ACCOUNTING PERIODS
Set out below are the dates of the last Business Day of the Vendor's relevant
accounting periods for the first four periods following the signing of this
Agreement:
30/04/1999
28/05/1999
02/07/1999
30/07/1999
The last Business Day of such other of the Vendor's accounting periods as may be
required for the purposes of this Agreement shall be notified by the Vendor to
the Purchaser within 10 Business Days of the date of this Agreement.
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SCHEDULE 7
PART 1 - NET ASSET STATEMENT
1 The Net Asset Statement shall be prepared in accordance with UK GAAP
prevalent as at 31 December 1998, excluding the impact of FRS 11 and on
a basis consistent with the Combined Accounts and shall be drawn up in
accordance with the provisions of paragraphs 2-6 below, and following
to the extent not inconsistent therewith:
1.1 the accounting policies for the relevant parts of the Operations
attached as Exhibit B, and to the extent not inconsistent therewith;
1.2 the accounting policies and principles applied in the preparation of
the audited accounts relating to the BICC Group for the period ended 31
December 1998 excluding the impact of FRS 11`
2 No account shall be taken of events taking place after Completion and
regard shall only be had to information available to the parties to
this Agreement at Completion.
3 The Net Asset Statement shall include all assets and liabilities of the
Relevant Xxxxx Companies or those relating to the Operations being
transferred other than:
3.1 Cash;
3.2 Third Party Indebtedness;
3.3 Intra-Group Indebtedness;
3.4 Any liability for Taxation; and
3.5 Dividends payable.
4 The Net Asset Statement shall only include the proportionate share of
the net assets (as defined in paragraph 3 above) of the Minority Owned
Group Companies after taking into account such Group Companies' cash
balances and indebtedness - that is the equity accounting method.
5 The Net Asset Statement shall exclude all Intra-Group Indebtedness and
all Third Party Indebtedness taken into account in any adjustments to
the Purchase Price in accordance with Clause 9.6.
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6 The Net Asset Statement shall be expressed in pounds sterling. Amounts
in other currencies shall be translated into sterling at the exchange
rates specified in the Exchange Cross Rates Table published in the
Financial Times, London Edition, prevailing at the Completion Date.
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SCHEDULE 7
PART 2 - DETERMINATION OF INDEBTEDNESS
1 The Estimated Indebtedness Statements and the Actual Indebtedness
Statements shall be drawn up in accordance with the provisions of
paragraph 1 of Part 1 of this Schedule 7.
2 The Estimated Indebtedness Statements and the Actual Indebtedness
Statements shall be expressed in pounds sterling. Amounts in other
currencies shall be translated into sterling at the exchange rates
specified in the Exchange Cross Rates Table as published in the
Financial Times, London Edition, prevailing at the Completion Date.
3 The provisions of Clause 9.2 shall apply mutatis mutandis to the
preparation of the Actual Indebtedness Statements.
4 The Indebtedness Statements
RELEVANT GROUP INTRA-GROUP THIRD PARTY
COMPANY COUNTER PARTY INDEBTEDNESS INDEBTEDNESS CASH
Owed to Owed from
(negative (positive
amount) amount)
BICC General
Cable SA
BICC NORSPA
A/S
BICC Novacoes
Ltda
BICC Argentina
SA
BICC Ceat Cavi
Srl
BICC Portugal
SGPS XX
Xxxxxx-Fabrica de
Contudores
Electricos de
Angola SARL
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BICC CAFCA
Limited
BICC (Central
Africa) Private Ltd
Zimbabwe Cables
(Pte) Ltd
BICC Cables New
Zealand Limited
BICC Cables Asia-
Pacific Pte Limited
BICC Energy
Cagles Pte Ltd
BICC Cables
(Brunei) Sdn Bhd
BICC Cables
China Ltd
BICC Cables
Malaysia Pte Ltd
Reliance Cables
Pte Ltd
BICC-Ducab
Investments Ltd
Trans-Power
Cables Pte Ltd
BICC
Supertension
Cables (1980)
Limited
Dominion Wire &
Cables Limited ----------------------
----------------------
---------------------------------------
---------------------------------------
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SCHEDULE 8
WARRANTIES GIVEN BY THE VENDOR UNDER CLAUSE 7
Unless the context otherwise requires, specific references in this
Schedule 8 to the BUSINESS SELLERS or to a BUSINESS SELLER shall be
deemed to refer to each or such Business Seller only in connection with
the Business carried on by the relevant Business Seller (and not to any
unrelated business or activity of the relevant Business Seller).
1 AUTHORITY AND CAPACITY
1.1 Each Relevant Seller and each Group Company is a company duly
incorporated and validly existing under the laws of its incorporation.
1.2 The Vendor has the legal right and full power and authority to enter
into and perform this Agreement and the Tax Deed of Covenant and any
other documents to be executed by the Vendor pursuant to or in
connection with this Agreement which when executed will constitute
valid and binding obligations on the Vendor, in accordance with their
respective terms.
1.3 Each of the Relevant Sellers which is a party thereto has the legal
right and full power to enter into and perform the Subsidiary
Agreements.
1.4 This Agreement, the Tax Deed of Covenant, the Subsidiary Agreements and
any other agreements executed or to be executed in connection herewith
or therewith, will when duly executed, constitute valid and binding
obligations on each of the Relevant Sellers which are party thereto, in
accordance with their respective terms.
1.5 The execution and delivery of, and the performance by the Relevant
Sellers of their obligations under, this Agreement and the Tax Deed of
Covenant and any other documents to be executed by the Relevant Sellers
pursuant to or in connection with this Agreement, and the execution and
delivery of, and the performance by each Relevant Seller of its
obligations under the Subsidiary Agreement to which it is a party and
any other documents to be executed by the Relevant Sellers pursuant to
or in connection with the Subsidiary Agreements, will not:
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1.5.1 result in a breach of any provision of the constitutional
documents of any Relevant Seller or Group Company; or
1.5.2 subject to the need for any Third Party Consent referred to in
Clause 4.1, Schedule 5 or in any Subsidiary Agreement, result
in a violation of any law or regulation in any jurisdiction
having the force of law or result in a breach of any order,
judgment or decree of any court, governmental agency or
regulatory body to which any Relevant Seller or Group Company
is a party or by which any Relevant Seller or Group Company is
bound; or
1.5.3 result in a material breach of, or constitute a default under,
any agreement or instrument to which any Business Seller or
Group Company is a party.
1.6 All corporate action required to be taken (i) by the Vendor
validly and duly to authorise the execution and delivery of,
and (ii) by the Relevant Sellers to exercise rights and perform
their obligations under, this Agreement, the Subsidiary
Agreements and all such action in relation to the Tax Deed of
Covenant and any other documents to be executed by the Relevant
Sellers pursuant to or in connection with this Agreement, have
been duly taken or will have been duly taken by Completion.
1.7 No Third Party Consent is required to authorise the execution,
delivery and validity of this Agreement, the Tax Deed of
Covenant or the Subsidiary Agreements or (save as set out in
Schedule 5 or in any Subsidiary Agreement) the transfer in
favour of the Relevant Purchasers of any of the Shares.
2. DISCLOSURE LETTER AND DATA ROOM
2.1 The Disclosure Letter (other than documents attached thereto or listed
therein as agreed disclosures) has been prepared by the Vendor in good
faith and the Vendor has not knowingly included any matter which is
untrue or knowingly omitted from it any matter the omission of which
would make its contents materially misleading in the context in which
it appears.
2.2 So far as the Vendor is aware, each document specified in the
Disclosure Letter as being attached thereto or listed therein as an
agreed disclosure is a true and complete
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copy of the original of such document and, so far as the Vendor is
aware, there is no later document which supersedes or replaces any such
document.
2.3 The Data Room has been collated by the Vendor in good faith.
3 ACCOUNTS AND RECORDS
3.1 COMBINED ACCOUNTS
The Combined Accounts:
(a) have been prepared on a basis consistent with the accounting
policies and principles set out in paragraph 1, Part 1 of
Schedule 7 (excluding the reference to paragraphs 2-6 therein)
and the basis of preparation set out therein;
(b) fairly present in all material respects the state of affairs of
the Operations as at the Balance Sheet Date for the financial
year ended on that date.
3.2 MANAGEMENT ACCOUNTS
The Management Accounts have been properly prepared in accordance with
the principles set out in Part 1 of Schedule 7.
3.3 ACCOUNTING AND OTHER RECORDS
The statutory books and books of account and other records of
whatsoever kind relating to the Operations are up-to-date and
maintained in accordance with all applicable legal requirements on a
proper and consistent basis and contain complete and accurate records
of all matters required to be dealt with in such books. All such books
and records and all other documents (including documents of title for
all assets owned by the Business Sellers and Group Companies and copies
of all subsisting agreements to which any Group Company or Business
Seller is a party) are in the possession (or under the control) of the
relevant Group Company or Business Seller and no notice or allegation
that any is incorrect or should be rectified has been received.
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CHANGES SINCE BALANCE SHEET DATE
3.4.1 Since the Balance Sheet Date, the Operations have been carried
on in the ordinary course, without any interruption or
alteration in their nature, scope or manner and so as to
maintain the same as a going concern.
3.4.2 During the period between the Balance Sheet Date and the date
of this Agreement, there has been no material adverse change in
the financial or trading position of the Operations.
3.4.3 During the period between the Balance Sheet Date and the date
of this Agreement, no Wholly Owned Group Company has declared,
made or paid to its members any dividend or other distribution,
except as provided for in the relevant balance sheet.
3.4.4 Since the Balance Sheet Date, no Relevant Group Company has
allotted or issued or agreed to allot or issue any share or
loan capital or any other security giving rise to a right over
capital.
3.4.5 Since the Balance Sheet Date, no Relevant Group Company has
redeemed or purchased or agreed to redeem or purchase any of
its share capital.
4 LEGAL MATTERS
The Warranties set out at paragraphs 4.1, 4.2 and 4.3 shall not apply
to the Properties and no reference to any law or Licence (howsoever
expressed) in paragraphs 4.1 or 4.2 below shall be deemed to include a
reference (directly or indirectly) to any Environmental Laws (as
defined in Schedule 16) or Health and Safety Laws (as defined in
paragraph 10 of this Schedule). Save as set out in Schedule 16, it is
expressly acknowledged that no representation or warranty is given by
or on behalf of the Vendor or the Vendor's Group in this Agreement, in
any Subsidiary Agreement or otherwise in respect of any Environmental
Laws. The only represenatation or warranty given by or on behalf of the
Vendor or the Vendor's Group in respect of Health and Safety Laws is
set out in paragraph 10 of this Schedule.
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4.1 COMPLIANCE WITH LAWS
The Operations have at all times been carried on and are being carried
on so that there have been no breaches of applicable laws, regulations
and by-laws in each country in which they are carried on and there have
not been and are not any breaches by any Business Seller or Group
Company of its constitutional documents which would have a material
adverse effect on the Operations and neither the Vendor nor any Group
Company has received notice that there is any investigation or enquiry
by, or order, decree, decision or judgment of, any court, tribunal,
arbitrator, governmental agency or regulatory body outstanding or
anticipated against any Business Seller or Group Company or any person
for whose acts or defaults they may be vicariously liable which will
have a material adverse effect upon the Operations, nor has any notice
or other communication (official or otherwise) from any court,
tribunal, arbitrator, governmental agency or regulatory body been
issued with respect to an alleged actual or potential violation and/or
failure to comply with any such applicable law, regulation, by-law or
constitutional document, or requiring it/them to take or omit any
action and the Vendor is not aware of any circumstances which are
likely to give rise to any such investigation or enquiry.
4.2 LICENCES AND CONSENTS
Nothing in this paragraph 4.2 applies to Licences of Intellectual
Property Rights (including computer software).
4.2.1 All Third Party Consents (other than those relating to
Contracts) which are necessary for the transfer to a Relevant
Purchaser of the Operations or any part thereof or the entry
into or completion of this Agreement or any Subsidiary
Agreement have been obtained (other than those still required,
details of which are set out in the Disclosure Letter).
4.2.2 All licences, consents, authorisations, orders, warrants,
confirmations, permissions, certificates, approvals and
authorities (LICENCES) necessary for carrying on the Operations
as now carried on:
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(i) have been obtained, are in full force and effect, are in
the name of the Relevant Business Seller or Group
Company, have been and are being complied with in all
material respects and are not subject to any unusual or
onerous material conditions; and
(ii) the Vendor is not aware of any reason why any of them
should be suspended, threatened or revoked.
4.3 LITIGATION
4.3.1 During the two year period prior to Completion, no claim for
damages or otherwise has been made against any Business Seller
or against any Group Company which is or was material in the
context of the relevant Business or Group Company.
4.3.2 As at the date hereof, none of the Business Sellers or Group
Companies (or any person for whose acts or defaults any
Business Seller or Group Company may be vicariously liable) is
involved whether as plaintiff or defendant or other party in
any claim, legal action, proceeding, suit, litigation,
prosecution, investigation, enquiry or arbitration or other
legal proceedings or in any proceedings or hearings before any
statutory or governmental body, department or agency (other
than as plaintiff in the collection of debts arising in the
ordinary course of business) which is material in the context
of the relevant Business or Group Company and, so far as the
Vendor is aware, no such claim, legal action, proceeding, suit,
litigation, prosecution, investigation, enquiry or arbitration
has been threatened in writing or (so far as the Vendor is
aware) is pending by or against any Business Seller or Group
Company (or any person for whose acts or defaults any Business
Seller or Group Company may be vicariously liable).
4.3.3 As at the date hereof, so far as the Vendor is aware, there are
no investigations, disciplinary proceedings or other
circumstances likely to lead to any such claim or legal action,
proceeding, suit, litigation, prosecution, investigation,
enquiry or arbitration.
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4.3.4 There is no outstanding judgment, order, decree, arbitral award
or decision of any court, tribunal, arbitrator or governmental
agency against any Business Seller or Group Company (or any
person for whose acts the Business Seller or Group Company may
be vicariously liable) which is material in the context of the
relevant Business or Group Company.
4.4 ENVIRONMENTAL LIABILITY
The only environmental warranties relating to the Operations are
contained in paragraph 2 of Schedule 16.
4.5 INSOLVENCY
4.5.1 No order has been made, petition presented, resolution passed
or meeting convened for the winding up (or other process
whereby the business is terminated and the assets of the
company concerned are distributed amongst the creditors and/or
shareholders or other contributories) of any Group Company or
any Business Seller and there are no cases or proceedings under
any applicable insolvency, reorganisation or similar laws in
any jurisdiction concerning any Group Company or Business
Seller and, so far as the Vendor is aware, no events have
occurred which, under applicable laws, would justify any such
cases or proceedings.
4.5.2 No petition has been presented or other proceedings have been
commenced for an administration order to be made (or any other
order to be made by which, during the period it is in force,
the affairs, business and assets of the company concerned, are
managed by a person appointed for the purpose by a court,
governmental agency or similar body) in relation to any Group
Company or Business Seller in relation to the Operations, nor
has any such order been made.
4.5.3 No receiver (including an administrative receiver), liquidator,
trustee, administrator, custodian or similar official has been
appointed in any jurisdiction in respect of the whole or any
part of the business or assets of any Group Company or Business
Seller or in respect of any of the Business
126
Seller's Assets and, so far as the Vendor is aware, no step has
been taken for or with a view to the appointment of such a
person.
4.5.4 No Group Company or Business Seller is insolvent or unable to
pay its debts as they fall due.
5 TRADING AND CONTRACTUAL ARRANGEMENTS
6.1 CAPITAL COMMITMENTS
There are no material capital commitments entered into or proposed by
or on behalf of any of the Business Sellers or Group Companies. For
these purposes, a material commitment is one involving capital
expenditure of over (pound)400,000.
5.2 ARRANGEMENTS WITH CONNECTED PERSONS ETC.
5.2.1 There is no indebtedness (actual or contingent) nor any
material indemnity, guarantee or security arrangement between
any Business Seller or Group Company or member of the Vendor's
Group and any current or former employee or director of any
Group Company or Business Seller or any husband or wife of such
persons.
5.2.2 No Business Seller or Group Company or member of the Vendor's
Group is or has been party to any material contract,
arrangement or understanding with any current or former
employee of director of any Group Company or Business Seller or
any husband or wife of such persons, or in which any such
person as aforesaid is interested (whether directly or
indirectly), other than on normal commercial terms in the
ordinary course of business.
5.2.3 There are no existing contracts or arrangements with a value in
excess of (pound)250,000 per annum between or involving any
Business Seller or Group Company and any member of the Vendor's
Group.
5.3 CONTRACTS
5.3.1 None of the Business Sellers or the Group Companies is party to
any unusual, long-term or onerous commitments, contracts or
arrangements or any such not wholly on an arm's length basis in
the ordinary course of business. For the purposes of this
warranty a long-term commitment, contract or arrangement is
127
one which is incapable of termination by the relevant Business
Seller or Group Company on six months' notice or less.
5.3.2 None of the Business Sellers or the Group Companies is party to
any commitment, contract or arrangement which:
(i) involves hire purchase, conditional sale, sale of
receivables, credit sale, leasing, hiring or similar
arrangements in each case other than in the ordinary
course of business; or
(iii) involves income in excess of (pound)5,000,000 (five
million pounds) per annum OR, expenditure in excess of
(pound)5,000,000 (five million pounds) per annum (a
MATERIAL CONTRACT).
5.3.3 None of the Business Sellers or the Group Companies is party to
any agency, distributorship, marketing, purchasing,
manufacturing or licensing agreement or arrangement or any
agreement or arrangement which restricts its freedom to carry
on its business as currently carried on in any part of the
world in such manner as it thinks fit as to have a material
adverse effect on the relevant Business.
5.3.4 There are no powers of attorney or other authorities (express
or implied) which are still outstanding or effective to or in
favour of any person to enter into any contract or commitment
or to do anything on behalf of any Group Company (other than on
such authority of directors or of employees as either is
ostensible or is implied to enter into routine contracts in the
normal course of their duties).
5.4 COMPLIANCE WITH MATERIAL CONTRACTS
(i) No Business Seller or Group Company is in material
breach of any Material Contracts; and
(iii) so far as the Vendor is aware, there are no grounds for
rescission, avoidance or repudiation of any of the
Material Contracts.
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5.5 ANTI-TRUST
So far as the Vendor is aware, no Business Seller or Group Company is a
party to any agreement, arrangement or concerted practice or is
carrying on any practice which in whole or in part contravenes or is
invalidated by any competition, anti-trust, fair trading, state aid,
public procurement consumer protection or similar legislation
applicable in any jurisdiction where the Businesses are carried on
(including as regards the United Kingdom, and without prejudice to the
generality of the foregoing, the provisions of both the Competition Xxx
0000 and any legislation which ceases or will cease to have effect in
whole or in part by virtue of the Competition Act 1998) or in respect
of which any filing, registration or notification is, was or will be
required by such legislation or is advisable pursuant to such
legislation (whether or not the same has in fact been made).
5.6 Neither the Business Sellers nor any Group Company has paid to any
person any sum in the nature of a bribe or inducement.
5.7 Neither the Business Sellers nor any Group Company is a party to any
material confidentiality or secrecy agreement or undertaking or other
agreement which may restrict its use or disclosure of any information.
5.8 Other than restrictive covenants entered into by or binding upon the
Business Sellers or the Group Companies, no substantial part of the
Operations is carried on under the agreement or consent of third party,
nor is there any agreement which significantly restricts the field in
which the Business Sellers or the Group Companies carry on the
Operations.
5.9 There are not now outstanding any agreements or arrangements (whether
by way of guarantee, indemnity, warranty, representation or otherwise)
under which any Group Company is under a prospective or contingent
liability in respect of any disposal by such Group Company of its
assets or business or any substantial part thereof.
5.10 Neither the Vendor nor any member of the Vendor's Group nor any
Relevant Seller has given any guarantee or indemnity or created any
other like obligation in support of the Businesses or the Group
Companies that remains outstanding.
129
5.11 None of the Group Companies have given any indemnity or created any
other like obligation in respect of any member of the Vendor's Group or
any Relevant Seller which remains outstanding.
5.12 Completion of this Agreement or any Subsidiary Agreement will not
result in the creation, crystallisation or enforcement of any charge,
mortgage, debenture or other security interest over any material asset
of any Business or Group Company.
6 EMPLOYEES
6.1 GENERAL
6.1.1 There are no persons employed in any of the Businesses or Group
Companies other than the Employees.
6.1.2 The Disclosure Letter contains details of the numbers and
categories of Employees at each Property as at the stated date.
The Disclosure Letter also contains details of the numbers and
categories of Employees employed at locations other than the
Properties.
6.1.3 Where Senior Employees have an individual contract of
employment, full details thereof have been disclosed in the
Disclosure Letter and where standard terms or collective
bargaining arrangements are applicable to Senior Employees,
full details thereof have been disclosed in the Disclosure
Letter (including details of which Senior Employees are
employed on which such terms and conditions and arrangements).
6.1.4 No Business Seller or Group Company is party to any contractual
arrangement to make material changes to remuneration or other
benefits or other terms of employment or collective bargaining
arrangements or to establish any new bonus or other incentive
arrangements for the Employees nor have there been any
proposals or announcements in relation to such matters.
6.1.5 True, up-to-date and complete copies of a representative sample
of the contracts of employment of the different categories of
Employees at each
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Property, and of those Employees employed at locations other
than the Properties, and any other material documents currently
in force relating to the terms and conditions of employment and
benefit entitlements of the Employees have been disclosed in
the Disclosure Letter together with copies of all consultancy
agreements currently in force relating to any Business or any
Group Company.
6.1.6 (i) There is no existing, pending or, so far as the Vendor is
aware, threatened dispute between any Business Seller or Group
Company and any Employee (or group of Employees) or any
consultant or any trade union or employee representatives of
any Employee and, (ii) so far as the Vendor is aware, there are
no circumstances (including this Agreement and Completion)
which are likely to give rise to any such dispute as is
referred to in (i).
6.1.7 In the case of each Business Seller in relation to each of its
present and former employees employed in any Business, and in
the case of each Group Company in relation to each of its
present and former employees, so far as the Vendor is aware,
each Business Seller and each Group Company has complied in all
material respects with all applicable laws and all of its
contractual obligations in relation to such employees and their
trade unions or employee representatives.
6.1.8 No Business Seller in relation to any Business, and no Group
Company, has agreed to make any payment or agreed to provide
any benefit, to any employee or former employee or any
consultant or former consultant in connection with the actual
or proposed termination of employment or consultancy or the
actual or proposed variation of any employment contract or
consultancy agreement of any such employee or former employee
or consultant or former consultant in each case where such
agreement to make or provide such payment or benefit has not
been discharged or otherwise satisfied. There are no agreements
or arrangements whether binding or otherwise, in relation to
any Employee for the payment of compensation on
131
the termination of employment (other than as are required by
law or in accordance with the contracts of employment,
consultancy agreements and details of enhanced redundancy
entitlements which are disclosed in the Disclosure Letter).
6.1.9 All of the European Employees are employed by the Vendor or the
Relevant Seller at the Completion Date and are employed
exclusively in the Businesses and none of the European
Employees are required to perform duties for any other person.
6.2 TERMINATION OF EMPLOYMENT
For the purposes of this Clause 6.2 only, Senior Consultant means those
consultants engaged by the Businesses or the Group Companies whose fees
exceed (pound)60,000 per annum.
6.2.1 There are no proposals to terminate the employment of any
Senior Employees or Senior Consultants or to materially vary or
amend their terms of employment on consultancy (whether to
their detriment or benefit).
6.2.2 As at the date of this Agreement:
(i) no Senior Employee or Senior Consultant has given or
received notice terminating his employment or
engagement; and
(ii) so far as the Vendor is aware, neither this Agreement
nor Completion nor any Subsequent Completion will, or
is likely, to cause any such Senior Employee or Senior
Consultant to terminate his employment or engagement.
6.2.3 As at the date of this Agreement, no person previously employed
by any Business Seller or Group Company has a right to return
to work or any right to be reinstated or re-engaged by any
Business Seller or Group Company whether under statute or
otherwise.
6.2.4 No liability which remains undischarged has been incurred by
any Business Seller or Group Company for breach of any contract
of service or for
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termination payments or for compensation for dismissal, equal
pay, sex, race, disability or other discrimination or failure
to comply with any order for the reinstatement or re-engagement
of any of the Employees or former employees of a Business
Seller or Group Company.
6.3 PAYMENTS ON TERMINATION
6.3.1 The Business Sellers and each Group Company have paid to the
appropriate authorities all taxes and other contributions and
charges due and payable in respect of the Employees in respect
of their employment by any of the Business Sellers or Group
Companies up to Completion or such amounts have been or will be
accrued for in the Net Asset Statement.
6.3.2 Particulars of all loans made by any Business Seller or Group
Company to Employees or former employees or consultants which
are in excess of (pound)2,000 and which shall remain
outstanding at Completion, together with any sums promised or
owed by the Business Seller or Group Company to any Employee or
former employee or consultant (other than remuneration and
other contractual benefits accrued in the normal course of
business during the calendar month immediately prior to the
date of this Agreement) which are in excess of (pound)2,000 are
disclosed in the Disclosure Letter.
6.4 TERMINATIONS
Within the period of one year preceding the date hereof, where the
Business Sellers in relation to the Businesses, or any Group Company,
has been obliged by statute to give notice of the termination of
employment of any Employee to a relevant authority or start
consultations with any employee representative body, for example, a
trade union or Works Council, relating to any such termination the
relevant Business Seller or Group Company has complied with such
obligation. Save as disclosed in the Disclosure Letter there have been
no transfers covered by the Transfer Provisions relating to any
Business or Group Company.
6.5 COLLECTIVE BARGAINING
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6.5.1 The national collective bargaining agreements, industry wide
collective agreements, the other collective agreements, union
recognition agreements and European Works Council agreements,
all as disclosed in the Disclosure Letter are in all material
respects true, up-to-date and complete copies of all the
agreements whether or not legally binding between the Business
Sellers or Group Companies and any groups of employees, trade
unions or other representative bodies. The Business Sellers and
the Group Companies have in all material respects complied with
all such agreements.
6.5.2 The Disclosure Letter contains full details of (a) any enhanced
redundancy entitlement and any special redundancy procedure
applicable to any Employee; and (b) any redundancy programme
which is currently being implemented or negotiated in respect
of the Employees or any of them and any such programme will be
implemented in accordance with its original terms and time
schedule between the date of this Agreement and Completion.
6.6 PENSIONS AND OTHER EMPLOYEE BENEFITS
6.6.1 SCHEMES
(i) Other than the Employee Benefit Arrangements and the
State Schemes there are no arrangements in existence at
the date of this Agreement (or in respect of which any
proposal or announcement has been made) for the payment
of, provision for, or contribution towards, any
pensions, allowances, lump sums or other like benefits
on retirement, death, disability or voluntary
withdrawal from, or involuntary termination of,
employment which are for the benefit of any Employee or
any past employee of a Group Company or for the benefit
of persons dependent on any such Employee or past
employee.
(ii) Other than the BICC Savings-Related Share Option Scheme
1991, the BICC Executive Share Option Scheme 1991, the
BICC UK Executive Share Option Scheme (Unapproved), the
BICC CAFCA Share Option Scheme and the BICC Long-Term
Incentive Plan (together, the
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EMPLOYEE SHARE SCHEMES) there are no arrangements in
existence for the grant of options over shares and/or
for the grant of shares in the Vendor to Employees.
6.6.2 DISCLOSURE
(i) There have been disclosed to the Purchaser in the
Disclosure Letter copies of such relevant documents
governing or relating to the Employee Benefit
Arrangements necessary to establish entitlements to
benefits together with full information about
discretionary practices in relation to the Employee
Benefit Arrangements.
(ii) There have been disclosed to the Purchaser in the
Disclosure Letter copies of all such relevant documents
governing or relating to the Employee Share Schemes
necessary to establish entitlement to benefits.
(iii) There has been disclosed to the Purchaser in the
Disclosure Letter for each Employee Benefit Arrangement
in respect of which there is a legal requirement to
have an actuarial valuation and the liability for which
will transfer to the Purchaser after the Completion
Date, a copy of the most recent actuarial valuation,
together with the latest trustees' report and accounts
(or nearest equivalent in jurisdictions outside the
United Kingdom).
6.6.3 REGULATION
The Employee Benefit Arrangements and the Employee Share
Schemes are in material compliance with their terms and with
all applicable laws, regulations and government taxation or
funding requirements. As far as the Vendor is aware there has
been no failure to comply with any applicable law, regulation
or requirement, or any other circumstance, which would or might
result in the loss of tax approval or other regulatory approval
for or qualification of any of the Employee Benefit
Arrangements or the Employee Share Schemes.
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6.6.4 CLAIMS
None of the Business Sellers nor the Group Companies is a party
to any litigation or other proceedings relating to any of the
Employee Benefit Arrangements or the Employee Share Schemes. So
far as the Vendor is aware, there is no litigation or other
proceedings or outstanding claims in relation to any of the
Employee Benefit Arrangements or the Employee Share Schemes
which would or might affect any Employee or any past employee
of a Group Company or any person dependent on any such Employee
or past employee.
6.6.5 DATA
A list or computer data of the Employees and any persons
dependent on such Employees (and any past employees of a Group
Company and any persons dependent on any such past employees)
containing all particulars of them necessary to establish their
entitlement to benefits under the Employee Benefit Arrangements
has been supplied to the Purchaser by electronic submission on
10 March 1999 from Xxxxxx Xxxxx Partners to Deloitte and
Touche.
6.6.6 CONTRIBUTIONS
The current rates of employer's and employee's contributions
payable in respect of the Employee Benefit Arrangements have
been disclosed in the Disclosure Letter and all such
contributions up to and including the Completion Date have been
paid or will have been paid by the Completion Date.
6.6.7 INSURED BENEFITS
All insured benefits under the Employee Benefit Arrangements
are now and will up to and including the Completion Date be
fully insured under policies effected with insurance companies
as disclosed in the Disclosure Letter; such companies have been
supplied with all appropriate information and such
136
information was complete and accurate; cover under such
policies is provided at the relevant insurance company's normal
rates and on its normal terms for persons in good health; all
premiums due under such policies have been paid or will have
been paid by the Completion Date; and so far as the Vendor is
aware, there are no grounds on which any such policies may be
avoided.
6.6.8 FUNDING
Each of the Employee Benefit Arrangements is fully funded,
financed or provided for in accordance with local actuarial and
accounting practice and principles for an ongoing pension
scheme.
7 TAXATION
7.1 RETURNS AND INFORMATION
All returns, computations, notices, information and records which are
or have been required to be maintained, made or given by each Group
Company for any Taxation purpose have so far as is material been made
or given within the requisite periods and on a proper basis and are
up-to-date and correct.
7.2 VAT MATTERS RELATING TO THE GROUP COMPANIES
Each Group Company has complied in all material respects with all
statutory requirements, orders, provisions, directions or conditions
relating to VAT.
7.3 RESIDENCE
Save as disclosed in the Disclosure Letter, each Group Company is, and
has since its incorporation been, resident for tax purposes only in the
Jurisdiction in which it is incorporated.
7.4 DOUBLE TAX TREATIES
Save as disclosed in the Disclosure Letter, each Group Company is
entitled to claim the benefit of any double taxation agreement or
convention entered into between the Jurisdiction in which it is
resident and any other relevant jurisdiction.
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7.5 The amount of Taxation chargeable on any Group Company during any
accounting period ending on or within three years prior to the Balance
Sheet Date has not, to any material extent, depended on any concession,
agreement or other formal or informal arrangement with any Taxation
authority.
7.6 No chargeable gain or profit would arise if any asset of any Group
Company (other than trading stock) were to be realised for a
consideration equal to the book value thereof as shown in the Accounts.
7.7 All documents in the possession of any Group Company or to the
production of which any Group Company is entitled and which attract
stamp or transfer duty in any jurisdiction have been duly stamped.
8 ASSETS AND LIABILITIES
8.1 TITLE
8.1.1 All the Assets (other than Intellectual Property and the
Properties but including all debts due to each Group Company or
Business Seller) which are included in the Combined Accounts or
which at the Balance Sheet Date were used or held for the
purposes of the business of each Group Company or Business
Seller, were at the Balance Sheet Date the absolute property of
such Group Company or Business Seller (save for those
subsequently disposed of or realised in the ordinary course of
trading) and all such Assets and debts and all Assets and debts
which have been acquired or arisen between the Balance Sheet
Date and the date hereof are at the date hereof the absolute
property of such Group Company or Business Seller and none is
the subject of any assignment or Encumbrance (excepting only
liens arising by operation of law in the normal course of
trading) or the subject of any factoring arrangement,
hire-purchase, conditional sale or credit sale agreement.
8.1.2 All the Assets are, where capable of possession, in the
possession of or under the control of the relevant Business
Seller or Group Company.
8.1.3 The Share Sellers are entitled to sell and transfer to the
Purchaser the full legal and beneficial ownership of the Shares
on the terms of this Agreement
138
or any Subsidiary Agreement without any Third Party Consent.
The Shares comprise the whole of the allotted and issued share
capital of the Companies, have been properly and validly
allotted and issued and are each fully paid.
8.1.4 A Company or a Group Company (where specified in Schedule 2) is
the sole beneficial owner of all the issued or allotted shares
of the Subsidiaries free from any Encumbrances and all such
shares are fully paid or credited as fully paid.
8.1.5 No person has the right (whether exercisable now or in the
future and whether contingent or not) to call for any
allotment, conversion, issue, sale or transfer of any share or
loan capital or any other security giving rise to a right over
the capital of any Group Company under any option or other
agreement (including conversion rights and rights of
pre-emption) and there are no Encumbrances over such capital or
arrangements or obligations to create any such Encumbrances and
there is no agreement or commitment to give or create any of
the foregoing and no person has claimed in writing to be
entitled to any of the foregoing.
8.1.6 All the information set out in Schedules 1 and 2 is complete
and accurate in all respects.
8.1.7 The Companies have no:
(i) interest in the share capital of, or other investment
in, any body corporate other than the Subsidiaries;
(ii) interest in any partnership joint venture, consortium
or other unincorporated association or arrangement for
sharing profit other than the Subsidiaries.
8.1.8 No Group Company has made or is proposing to make any
distribution or dividend except out of profits available for
the purpose.
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8.2 INSURANCE
Summary particulars of the insurances of the Business Sellers and the
Group Companies material to the Operations as at the date of this
Agreement are contained in the Data Room.
8.3 MOVEABLE ASSETS
The Moveable Assets material to the Operations as currently conducted
are in satisfactory working order (allowing for fair wear and tear and
having regard to the age of such Assets) and have been properly
maintained.
8.4 INTELLECTUAL PROPERTY
8.4.1 REGISTERED INTELLECTUAL PROPERTY
(i) The registered Intellectual Property (REGISTERED
INTELLECTUAL PROPERTY) listed in Parts A, B and C of
Schedule 15, is legally and beneficially owned, free
from Encumbrances, by the Group Companies or the
Business Sellers. Schedule 15 sets out complete and
accurate particulars of all Registered Intellectual
Property which is used in connection with the
Operations.
(ii) All registration, application and renewal fees
regarding the Registered Intellectual Property due on
or before Completion have been paid in full and all
steps have been taken to progress applications and
maintain registrations.
(iii) The Registered Intellectual Property is not the subject
of any challenge, claim or proceedings and as far as
the Vendor is aware, there are no facts or matters
which give rise to any challenge, claim or proceedings
in relation to the Registered Intellectual Property.
(iv) The Registered Intellectual Property is not the subject
of any licence in favour of another except as set out
in Schedule 15.
8.4.2 OTHER INTELLECTUAL PROPERTY
(i) All Intellectual Property and Know-how which is
material to the Operations is legally and beneficially
owned by, licensed to or used
140
under the authority of the owner by the Group Companies
or the Business Sellers.
(ii) All Know-how legally or beneficially owned by the Group
Companies or the Business Sellers is, as far as the
Vendor is aware, free from all Encumbrances save for
any third party rights disclosed in the Disclosure
Letter or Schedule 15.
(iii) All Intellectual Property legally or beneficially owned
by the Group Companies or the Business Sellers is, as
far as the Vendor is aware:
(a) valid and enforceable and not subject to any
current application for licences of right under
the Patents Xxx 0000 (UK) (or legislation
corresponding thereto in other jurisdictions);
(b) not being infringed or attacked or opposed by
any person; and
(c) subject to any third party rights disclosed in
the Disclosure Letter or in Schedule 15, free
from all Encumbrances.
(iv) As far as the Vendor is aware, no activity of any Group
Company or Business Seller infringes the Intellectual
Property or constitutes the misuse of the Know-how of a
third party and neither the Vendor nor any Group
Company or Business Seller has received any
notification of infringement relating to any such
activity.
8.4.3 Schedule 15 details all material licences or rights in respect
of any Intellectual Property or Know-how of a third party to
which the Group Companies or the Business Sellers are party and
all material software contracts to which the Group Companies or
Business Sellers are party and (in the case of the Business
Sellers) the software is used exclusively or primarily in the
Operations. As far as the Vendor is aware, the Group Companies
and the Business Sellers have not breached the terms of any
Licence Agreement. As far as the Vendor is aware, the Licence
Agreements have been and are being complied with in all
material respects and the Vendor is not aware of any
141
reason why any of the Licence Agreements should be suspended or
terminated.
8.4.4 Save as disclosed in Schedule 15 the Group Companies and the
Business Sellers have not granted and are not obliged to grant
any licenses under any Intellectual Property and Know-how used
in the Operations owned by it or licensed to it by any person.
8.4.5 As far as the Vendor is aware no disclosure has been made to
any person other than the Purchaser of any of the Confidential
Information (as such term is defined in Clause 21.2.5 for the
purposes of Clause 21.2.1) and Know-how, of the Group Companies
or Business Sellers which is used in the Operations except in
the ordinary course of business and on the footing that such
disclosure is to be treated as being of a confidential nature.
8.4.6 As far as the Vendor is aware, there exists no actual or
threatened infringement or any event likely to constitute an
infringement or breach by any third party of any of the
Intellectual Property owned by the Group Companies or the
Business Sellers. As far as the Vendor is aware, there exists
no actual or threatened mis-use by any third party of any of
the Know-how owned by the Group Companies or the Business
Sellers.
8.4.7 All patentable inventions made by any employees of a Group
Company or the Business Sellers and used in the Operations were
made in the course of the normal duties of the employee
concerned and no claim for compensation under Section 40,
Patents Xxx 0000 or legislation corresponding thereto in other
jurisdictions or otherwise has been made against the Group
Companies or the Business Sellers nor so far as the Vendor is
aware are any such claims likely to be made.
8.4.8 As far as the Vendor is aware, the Group Companies and the
Business Sellers have complied in all respects with the
provisions of the Data Protection Xxx 0000 or legislation
corresponding thereto in other jurisdictions.
142
8.4.9 Schedule 15 sets out details of all collaboration and
development agreements entered into relating exclusively or
primarily to the Operations.
8.4.10 All Intellectual Property and Know-how required for the
Operations as currently being carried on are either included in
the Assets or are Retained Intellectual Property or Retained
Know-how or are owned by or licensed to the Group Companies.
8.4.11 Where Registered Intellectual Propety set ou in Schedule 15 is
owned jointly, subjec to any legislative restrictions, there is
no impediment to the Business Seller assigning its rights in
such Registered Intellectual Property to te Relevant Purchaser
under this Agreement
8.5 INFORMATION TECHNOLOGY
8.5.1 Reasonable steps have been taken to back up electronically
stored information and software which is critical to the
Operations and the Group Companies and the Business Sellers
have made reasonable disaster recovery and security
arrangements in relation to Information Technology material to
the Operations.
8.5.2 As far as the Vendor is aware, in the twelve months prior to
the date hereof, the Group Companies and the Business Sellers
have not suffered any significant failures or bugs in or
breakdowns of Information Technology material to the Operations
which either have not been remediated or which are not being
remedied at the date hereof and whilst such remedies are being
effected the failures, bugs or breakdowns are not causing any
significant disruption to any of the Operations.
8.5.3 The Data Room contains an accurate summary of the policies,
major steps and progress made by the Group Companies and the
Business Sellers to ensure that the Information Technology used
in the Operations will be Millennium Compliant and as far as
the Vendor is aware, the Group Companies and the Business
Sellers have complied with all such policies and steps.
143
8.5.4 For the purposes of this paragraph 8.5, INFORMATION TECHNOLOGY
means all computer systems, communications systems, software,
computer hardware and other similar information technology used
in connection with or required to carry on the business of the
Group Companies or Business Sellers (as they relate to the
Operations).
8.5.5 For the purposes of paragraph 8.5.3 MILLENNIUM COMPLIANT will
have the meaning given to it in BSIPD-DISC 2000-1.
9 PROPERTIES
9.1 PROPERTIES
Details of all real property owned or occupied or used by any Business
Seller or Group Company are set out in Schedule 13 and the particulars
contained or referred to therein are true and correct.
9.2 TITLE
Each relevant Business Seller or Group Company listed in Schedule 13 is
the legal and (where applicable in the relevant Jurisdiction)
beneficial owner of the Property or Properties of the tenure specified
against its name.
9.3 RIGHTS AND EASEMENTS
Each Property has the benefit of such rights and easements which are
necessary for the existing use of the Property.
9.4 PERFORMANCE OF OBLIGATIONS AFFECTING PROPERTIES
So far as the Vendor is aware, the relevant Business Seller has not
received any subsisting written notice of any material breach of any
obligation, condition, restriction, agreement or statutory requirement
affecting each Property, its occupation of such Property or the
existing use thereof.
9.5 DISPUTES AND NOTICES
So far as the Vendor is aware, there is no outstanding dispute or
notice affecting any Property which has a material adverse effect on
the Operations carried out at such Property.
144
9.6 USE
So far as the Vendor is aware, there is no written notice of any
outstanding dispute as to the use of the Property or any contravention
of the relevant planning legislation or any alleged breach of planning
legislation which has a material adverse effect on the Operations
carried out at such Property.
9.7 PLANNING/HIGHWAYS
In relation to each of the Business Seller's Properties in England and
Wales:
9.7.1 The Vendor is not aware of any subsisting notices of breaches
of the Planning and Highway Laws.
9.7.2 No planning application has been submitted by the Vendor which
awaits determination.
9.7.3 So far as the Vendor is aware no:
(i) enforcement action within the meaning of section
171A(2) of the Town and Country Planning Xxx 0000;
(ii) claim for breach of any Planning Agreement; or
(iii) prosecution under the terms of any permission,
authorisation or agreement under Planning and Highway
laws or in connection with such Laws
which is subsisting has been served upon the Vendor by any
relevant Planning Authority in respect of any such Business
Seller's Properties.
9.7.4 So far as the Vendor is aware, no Group Company is required
under Planning and Highway Laws to incur any material
expenditure or take or desist from taking any action which
would require unbudgeted expenditure under the 1999 budget of
BICC Cables - BICC Energy (disclosed in the Data Room) on any
such Business Seller's Properties in excess of (pound)100,000
per item of expenditure or loss as the case may be.
For the purposes of warranty 9.7 the following definitions will apply:
145
PLANNING AGREEMENT means any legally binding agreement made between the
Vendor and any Planning Authority in respect of such Business Seller's
Properties under section 52 of the Town and Country Xxxxxxxx Xxx 0000,
section 106 of the Town and Country Planning Xxx 0000 and section 278
of the Highways Act 1980 or such equivalent predecessor statutory
provisions;
PLANNING AUTHORITY means any local or central government authority
granted powers under Planning and Highway Laws; and
PLANNING AND HIGHWAY LAWS means all the laws of the United Kingdom
relating to town and country planning and the use of public highways
that may apply to such Business Seller's Properties.
9.8 LEASES
So far as the Vendor is aware:
(i) there is no material breach of lease terms which are
likely to adversely affect the business carried out at
the relevant Property;
(ii) any principal rent payable in respect of the Property
is not in the course of being reviewed other than on
rent review terms provided in the relevant Lease.
9.9 PROPERTY SUBJECT TO OCCUPATIONAL INTERESTS
Where any Property is subject to any lease or licence in favour of a
third party, so far as the Vendor is aware it has had no reason to
notify the lessee or licensee of any breach of its obligations under
the lease or licence.
9.10 TITLE
All the documents relating to the title to each of the Business
Sellers' Properties in England and Wales have been produced to the
Purchaser's Lawyers (save as disclosed by the Special Conditions of
Sale).
9.11 ENQUIRIES
So far as the Vendor is aware the written replies given by or on behalf
of the Vendor to enquiries raised by the Purchaser's Lawyers in respect
of each of the Properties in
000
Xxxxxxx , Xxxxx and Italy are true, complete and accurate in all
respects and not misleading.
9.12 BICC SUPERTENSION CABLES (1980) LIMITED
The Company known as BICC Supertension Cables (1980) Limited has not at
any time been the owner of any interest in real property whether
freehold or leasehold.
10 HEALTH & SAFETY
10.1 DEFINITIONS:
10.1.1 HEALTH AND SAFETY LAWS means all applicable laws (including for
the avoidance of doubt common law) statutes regulations
statutory guidelines and final and binding court and other
tribunal decisions of any relevant jurisdiction or any
constituent part thereof (including without limitation the law
of the European Union) in force in the relevant jurisdiction at
Completion which relate to the health and safety (including for
the avoidance of doubt the protection of hearing) of employees
contractors and invitees in the workplace and all bylaws,
codes, regulations, decrees, demands or demand letters,
injunctions, judgements, notices or notice demands, orders or
plans issued or promulgated or approved thereunder or in
connection therewith to the extent that the same have force of
law at Completion.
10.1.2 HEALTH AND SAFETY PROCEEDINGS MEANS:
(a) any civil, criminal or regulatory suit or proceedings;
(b) any application for judicial review;
(c) any arbitration or dispute resolution procedure;
(d) any application for injunctive relief or for a
declaration;
(e) any investigation undertaken by or on behalf of any
relevant regulatory authority under Health & Safety
Laws pursuant to which the authority may order
enforcement action or compel Remedial Action; and
(f) any court order, or any statutory or legislative notice
or written notification issued by a relevant regulatory
authority forming part of an administrative or judicial
action or regulatory procedure which
147
determines a violation of any Health and Law, assesses
any civil, regulatory or criminal penalty, prohibits or
imposes restrictions upon the operations of the
Business or which requires action to be taken or
operations to be modified.
relating to, concerning or affecting any Health and Safety Laws.
10.1.3 "RELEVANT PERIOD" shall bear the meaning ascribed to it in
Schedule 16.
10.2 HEALTH AND SAFETY WARRANTIES:
10.2.1 Each Group Company and Business Seller is operating and so far
as the Vendor is aware during the Relevant Period has conducted
the Operations in compliance in all material respects with
Health and Safety Laws.
10.2.2 Neither the Vendor nor any Group Company has received written
notice during the Relevant Period of Health and Safety
Proceedings against the Vendor or any Group Company or its past
or present directors, secretary or senior employees in their
capacity as such.
10.2.3 Neither the Vendor nor any Group Company has received written
notification during the Relevant Period that it is or is likely
to be required by any Health and Safety Laws or as a result of
any Health and Safety Proceedings to incur any material
expenditure or to desist from taking any action which might
have a material adverse effect on the financial condition of
the Operations.
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SCHEDULE 9
WARRANTIES FROM THE PURCHASER
1 AUTHORITY AND CAPACITY
1.1 The Purchaser is and each Relevant Purchaser is or will on Completion
be a company duly incorporated and validly existing under its
respective laws of incorporation.
1.2 The Purchaser has and each Relevant Purchaser will have, the legal
right and full power and authority to enter into and perform this
Agreement and any other agreement entered into pursuant to this
Agreement and each such agreement when executed will constitute valid
and binding obligations on the Purchaser, and/or each Relevant
Purchaser (as the case may be) in accordance with their respective
terms.
1.3 The execution and delivery of, and the performance by the Purchaser
and/or each Relevant Purchaser (as the case may be) of their respective
obligations under, this Agreement and any other agreement entered into
pursuant to this Agreement will not:
1.3.1 result in a breach of any provision of the constitutional
documents of the Purchaser and/or each Relevant Purchaser (as
the case may be); or
1.3.2 result in a breach of any agreement, licence or other
instrument, order, judgment or decree of any Court,
governmental agency or regulatory body to which the Purchaser
and/or each Relevant Purchaser (as the case may be) is a party
or by which the Purchaser and/or each Relevant Purchaser (as
the case may be) is bound.
1.4 All corporate action required by the Purchaser and/or each Relevant
Purchaser (as the case may be) validly and duly to authorise the
execution and delivery of, and to exercise its rights and perform its
obligations under, this Agreement and any other agreement entered into
pursuant to this Agreement has been duly taken.
2 FINANCING
149
The Purchasers' Guarantor has entered into a definitive commitment
letter and term sheet with The Chase Manhattan Bank and Chase
Securities Inc. (collectively, CHASE), dated 6th April 1999, which
among other things, commits Chase to provide up to approximately
$1,100,000,000 of senior secured financing (such commitment letter and
term sheet, being the COMMITMENT). The Commitment has not been modified
or amended in any respect (except as approved in writing by the Vendor)
and is in full force and effect as of the date hereof and as of the
Completion Date. Together with proceeds to be made available under the
Commitment, the Purchasers' Guarantor has available, and will make
available to each Purchaser and Relevant Purchaser (as defined in both
this Agreement and the North American Sale and Purchase Agreement),
sufficient funds to pay the Purchase Price (as defined in both this
Agreement and the North American Sale and Purchase agreement) and
consummate the transactions contemplated pursuant to each such
agreements in accordance with the terms and conditions thereof. The
Purchasers' Guarantor is not aware of any fact or circumstance which
would prevent the financing described in the Commitment from being
provided to the Purchaser.
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SCHEDULE 10
TRANSFER TAXES AND VAT
1 UK - VAT GENERAL
The parties intend that the UK Business shall be sold as a going
concern for VAT purposes and accordingly the following actions shall be
taken in the United Kingdom:
1.1 the Vendor and the Purchaser shall when required to do so give notice
of such sale, or procure that notice of such sale is given, to the
relevant Taxation authorities as may be required by law;
1.2 the Vendor (having obtained any necessary direction from any Taxation
authority) shall procure that all records are retained and preserved in
such a manner and for such periods as may be required by law and to
give the Purchaser as from Completion reasonable access during normal
business hours to such records; and
1.3 after Completion the Purchaser shall, or shall procure that the
Relevant Purchaser shall, to the extent required by applicable law for
the purposes of any exemption or relief from VAT:
1.3.1 use the Assets comprised in the UK Business in carrying on the
same kind of business, whether or not as part of any existing
business of the Relevant Purchaser, as that carried on by the
Vendor; and
1.3.2 be registered for VAT or (as a result of acquiring the UK
Business) be liable to be registered, in the same country as
the Vendor.
2 UK - GOING CONCERN
2.1 The Vendor shall promptly apply to HM Customs and Excise for
confirmation that the sale of the UK Business is to be treated as
neither a supply of goods nor a supply of services for VAT purposes.
The Vendor and Purchaser shall promptly agree the form of that
application and use all reasonable endeavours to ensure that
satisfactory confirmation is obtained as soon as possible thereafter
from HM Customs and Excise that the sale is to be so treated.
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2.2 If and to the extent that HM Customs and Excise have before Completion
expressly indicated that the sale of the UK Business cannot be treated
in the manner contemplated by paragraph 1 above, the Purchaser shall
(against production of tax invoices in respect thereof) in addition to
any amounts expressed in this Agreement to be payable by the Purchaser
pay on Completion the amount of any VAT which as a result of that
indication may be chargeable on the sale of the UK Business under this
Agreement. If no such indication shall have been given before
Completion, then no amount in respect of VAT shall be paid by the
Purchaser on Completion, but to the extent that VAT shall subsequently
be determined by the relevant Taxation authority to be payable on the
sale of the UK Business, the Purchaser shall in addition to any amount
expressed in the Agreement to be payable by the Purchaser pay to the
Vendor such VAT and, unless due to unreasonable delay or default by the
Vendor, any penalty or interest incurred by the Vendor for late payment
thereof, such payment by the Purchaser to be made forthwith against
evidence that the due date for payment of such tax has fallen due or
will fall due within seven days or if later against delivery by the
Vendor to the Purchaser of the appropriate tax invoice.
2.3 Nothing in this paragraph 2 shall require the Vendor to make any appeal
to any tribunal or court against or otherwise challenge any
determination of any Taxation authority that the sale does not fall to
be treated as the transfer of a going concern.
2.4 If any amount paid by the Purchaser to the Vendor in respect of VAT
relating to the sale of the UK Business pursuant to this Agreement is
subsequently found to have been paid in error the Vendor shall if has
not yet been accounted for the VAT to the relevant Taxation authority,
procure that such amount is promptly repaid to the Purchaser, and if
such VAT has already been so accounted for then the Vendor shall at the
expense of the Purchaser use reasonable endeavours to obtain repayment
thereof from the relevant Taxation authority and on receiving repayment
from the relevant Taxation authority shall pay to the Purchaser the
total amount repaid together with any repayment supplement.
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The Vendor warrants that no Property comprised in the UK Business is a
capital item the input tax on which may be subject to adjustment in
accordance with the provisions of Part XV of the Value Added Tax
Regulations 1995.
3 UK PROPERTIES AND VAT
3.1 Where in relation to any Property comprised in the UK Business the
Vendor has within 14 days prior to Completion:
3.1.1 notified the Purchaser in writing that the transfer of that
Property under this Agreement would, but for the sale being
treated in the manner contemplated in paragraph 1 above, fall
within paragraph (a) of Item 1 of Group 1 of Schedule 9 VATA
1994; or
3.1.2 notified the Purchaser in writing that the Vendor or a relevant
associate of the Vendor (as defined for the purposes of the
relevant legislation) has elected under the provisions of
Article 13(C)(b) of the EEC Sixth Directive (77/388/EEC) and
that the election has not been revoked and has delivered to the
Purchaser a certified copy of such election together with a
certified copy of the written permission of the relevant
Taxation authority to make such election where such written
permission is required by law;
the Relevant Purchaser shall elect under the provisions of Article
13(C)(b) of the EEC Sixth Directive (77/388/EEC) in relation to that
Property with effect on or prior to the earliest date on which the
Property concerned is to be transferred and shall give written
notification to the relevant Taxation authority as required by law no
later than that date and shall not seek the revocation of the election
prior to the transfer of the Property. The Purchaser shall deliver
copies of such election stamped by the relevant Taxation authority
showing receipt thereof and in default of delivery thereof by
Completion shall in addition to any amounts expressed in the Agreement
to be payable by the Purchaser (on behalf of the Relevant Purchaser) in
respect of the said Property pay to the Vendor at Completion (against
delivery by the Vendor of an appropriate tax invoice for VAT purposes)
an additional amount in respect of VAT thereon.
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3.2 Save as the Vendor shall have notified otherwise to the Purchaser in
writing in accordance with paragraph 3.1, neither the Vendor nor any
relevant associate has made an election under the provisions of Article
13(C)(b) of the Sixth Directive (77/388/EEC), in relation to any land
or buildings to be transferred under this Agreement, and no transfer of
land or buildings under this Agreement would, but for the sale being
treated as neither a supply of goods nor a supply of services for VAT
purposes, fall within paragraph (a) of Item 1 of Group 1 of Schedule 9
VATA 1994.
4 OTHER BUSINESSES AND SHARES - VAT
4.1 Any VAT which is payable in respect of the sale of any Shares or of the
Businesses other than the UK Business shall be paid by the Purchaser in
addition to the consideration expressed to be payable in Clause 3. Such
VAT shall be paid by the Purchaser on Completion, unless the Purchaser
applies or requests the Vendor to apply for any relief or exemption
from VAT. If an application is made for any relief or exemption from
VAT but the relevant Taxation authority determines that such relief or
exemption is not available, the Purchaser shall promptly pay, on
receipt of such determination to the Vendor an amount in respect of any
VAT chargeable on the sale of the relevant Shares or Business together
with any interest and penalties incurred for late payment thereof
(unless due to unreasonable delay or default by the Vendor).
4.2 The Vendor shall, at the expense of the Purchaser, provide the
Purchaser with such reasonable assistance as the Purchaser may request
in order to obtain any relevant exemption or relief from VAT in the
relevant jurisdictions in respect of the sale of any of the Shares or
Businesses other than the UK Business.
5 TRANSFER TAXES
The Purchaser and the Vendor shall each pay, or procure payment of, 50
per cent of all stamp and other transfer and registration taxes and
duties payable in respect of the sale and purchase of the Operations.
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SCHEDULE 11
EMPLOYEES
1 COMPANIES EMPLOYEES
1.1 The Vendor shall procure that each Relevant Group Company shall where
required by the relevant local law inform and consult with recognised
trade unions or other employee representatives about the sale of the
Shares and/or fulfil any obligations to notify any statutory or other
authority whatsoever about the sale of the Shares.
1.2 The Vendor (on behalf of itself and the Relevant Seller) and the
Purchaser (on behalf of itself and the Relevant Purchaser) shall give
each other such assistance as either may reasonably require in
contesting or otherwise dealing with any claim by any Companies
Employee resulting from or in connection with this Agreement.
2 EUROPEAN EMPLOYEES
2.1 The Vendor (on behalf of itself and the Relevant Seller) and the
Purchaser (on behalf of itself and the Relevant Purchaser) accept and
agree that by virtue of Completion the Transfer Provisions shall
operate to transfer the contract of employment of each European
Employee to the Relevant Purchaser in accordance with the legal effect
of the Transfer Provisions in the relevant European Country and
accordingly the Purchaser shall, or shall procure that the Relevant
Purchaser shall, in so far as the Transfer Provisions in the relevant
European Country requires employ each such European Employee with
effect from the Completion Date (which shall be the time of transfer
under the Transfer Provisions) and the Purchaser shall, or shall
procure that the Relevant Purchaser shall, in so far as the Transfer
Provisions in the relevant European Country requires treat each such
Employee's continuous period of service with the Vendor or Relevant
Seller as continuous with such Employee's continuous period of service
with the Relevant Purchaser.
2.2 Save as otherwise provided in the Net Asset Statement the Vendor will,
or will procure that each Relevant Seller will, perform and discharge
all their obligations in respect of each European Employee in relation
to any period prior to the Completion Date (which shall for the
avoidance of doubt include, but not be limited to wages, salary,
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bonus, commission, pension contributions and taxes arising out of the
employment relationship).
2.3 Save as otherwise provided in the Net Asset Statement the Purchaser
will, or will procure that the Relevant Purchaser will, perform and
discharge all their obligations transferred to them under the Transfer
Provisions in the relevant European Country in respect of each European
Employee in relation to any period from and including the Completion
Date (which shall for the avoidance of doubt include, but not be
limited to, wages, salary, bonus, commission, pension contributions,
and taxes arising out of the employment relationship).
2.4 The Vendor (on behalf of itself and the Relevant Seller) shall be
responsible for and shall fully indemnify and keep indemnified the
Purchaser (on behalf of itself and the Relevant Purchaser) from and
against all and any Employment Liabilities arising from any actual or
alleged act or omission of the Vendor or the Relevant Seller in
relation to any European Employee in respect of any period prior to the
Completion Date (whether brought by a European Employee or any trade
union or other employee representative) including those which are
deemed by virtue of the Transfer Provisions in the relevant European
Country to be an act or omission of the Relevant Purchaser (including
the Purchaser) after the Completion Date (provided that for the
avoidance of doubt it is agreed this indemnity is not intended to
indemnify the Purchaser from and against any Employment Liabilities
arising on or after the Completion Date solely by reason of the Vendor
or Relevant Seller entering into a contract of employment or collective
agreement in the normal course of business so far as in the case of a
contract of employment such contract is in a form disclosed in the Data
Room and, in the case of a collective agreement, it is disclosed in the
Data Room.
2.5 The Purchaser (on behalf of itself and the Relevant Purchaser) shall be
responsible for and shall fully indemnify the Vendor and keep the
Vendor indemnified (on behalf of itself and the Relevant Seller) from
and against all and any Employment Liabilities arising from any actual
or alleged act or omission of the Purchaser or the Relevant Purchaser
in relation to any European Employee (except those Employees who fall
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within Clause 2.6 below) in relation to any period on or after the
Completion Date (whether brought by a European Employee or any trade
union or other employee representative).
2.6 If, within the period of three months following the Completion Date,
the Transfer Provisions are found not to apply to any person who is a
European Employee, the Purchaser (on behalf of itself and the Relevant
Purchaser) agrees that:
(g) in consultation with the Vendor, the Relevant Purchaser
shall within five Business Days of being so requested
by the Vendor, or if the Relevant Purchaser so chooses,
make or procure to be made to each such European
Employee an offer in writing to employ him or her under
a new contract of employment to take effect upon the
termination referred to below; and
(h) the offer to be made will be such that (i) the
provisions of the new contract shall be as nearly the
same as the corresponding provisions of his or her
contract of employment as existing immediately prior to
Completion as is reasonably practicable save as to the
identity of the employer and (ii) it provides that his
or her period of continuous service with the Relevant
Seller shall be counted as continuous service with the
Relevant Purchaser.
Upon that offer being accepted, the Vendor shall terminate (or procure
the termination of) the employment of the European Employee concerned
and the Purchaser shall (on behalf of itself and the Relevant
Purchaser) be responsible for and shall indemnify the Vendor or the
Relevant Seller from and against all and any Employment Costs and
Employment Liabilities arising from any actual or alleged act or
omission of the Purchaser or the Relevant Purchaser in relation to such
European Employee on or after the date of commencement of the relevant
European Employee's employment with the Purchaser or the Relevant
Purchaser. To the extent that the Purchaser or the Relevant Purchaser
has between Completion and the date of commencement of such employment
enjoyed the services of any such European Employee the Purchaser (on
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behalf of itself and the Relevant Purchaser) shall reimburse the Vendor
or the Relevant Seller in respect of any Employment Costs which the
Vendor or Relevant Seller has thereby incurred on or after the
Completion Date.
2.7 The parties intend that the Transfer Provisions shall only be
applicable in relation to the European Employees and accordingly the
Vendor (on behalf of itself and the Relevant Seller) shall fully
indemnify and keep indemnified the Purchaser (on behalf of itself and
the Relevant Purchaser) from and against all Employment Costs and
Employment Liabilities arising under or in relation to:
(a) any contract of employment (including, without
prejudice to the generality of the foregoing the
termination thereof) with; or
(b) any duty or liability of the Vendor or the Relevant
Seller in relation to any matter whatsoever (whether
arising before or after the Completion Date) to;
any former, existing or future employee of the Vendor or the Relevant
Seller who is not a European Employee, or any trade union or employee
representative(s) of any such employee, and which contract, duty or
liability is transferred to the Relevant Purchaser (including the
Purchaser) by operation of law or is alleged to have been so
transferred.
2.8 As soon as practicable after Completion, the Vendor (on behalf of
itself and the Relevant Seller) shall deliver to the Purchaser (on
behalf of itself and the Relevant Purchaser) either originals or copies
(if originals no longer exist or are not under the Vendor's or Relevant
Seller's custody or control) of all records in relation to taxes
arising out of the employment relationship and of any other documents
or records (including, but not limited to, personnel records and files)
which are relevant to the European Employees provided that:
(a) the Vendor or the Relevant Seller shall be entitled as far as
the law allows to retain a copy of any such record or document
where the original is delivered to the Purchaser (on behalf of
itself or the Relevant Purchaser);
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(b) in the event of the Vendor or the Relevant Seller being a party
to any claim by or against any European Employee arising after
Completion, the Purchaser shall, or shall procure that the
Relevant Purchaser shall so far as the law permits and at the
reasonable cost of the Vendor, allow the Vendor reasonable
access to any and all records and documents, in its possession
which are or are likely to be relevant to such claim;
(c) in the event that the Purchaser or the Relevant Purchaser
intends at any time after Completion to dispose of or destroy
any such records or documents, the Purchaser shall not, or
shall procure that the Relevant Purchaser shall not, do so
without first informing the Vendor of its intention and if the
Vendor so requests the Purchaser shall, or shall procure that
the Relevant Purchaser shall so far as the law permits and at
the reasonable cost of the Vendor, as soon as practicable
deliver such records or documents as the Vendor may request to
the Vendor.
2.9 The Vendor shall, or shall procure that the Relevant Seller shall and
the Purchaser shall, or shall procure that the Relevant Purchaser
shall, inform and consult with recognised trade unions or any elected
representatives, as appropriate, to the extent required by the Transfer
Provisions in the relevant European Country and the Vendor (on behalf
of itself and the Relevant Seller) and the Purchaser (on behalf of
itself and the Relevant Purchaser) shall indemnify each other against
any Losses they may incur as a result of that person's failure to
adhere to its particular obligations under the Transfer Provisions in
the relevant European Country. The Purchaser warrants on its own behalf
and on behalf of the other Relevant Purchasers, that each of them has
given to the Vendor all information required by the Vendor in order for
the Vendor to fulfil its obligations under Article 6 of the Transfer
Provisions in the relevant European Country.
2.10 The Vendor (on behalf of itself and the Relevant Seller) and the
Purchaser (on behalf of itself and the Relevant Purchaser) shall each
notify the other on becoming aware of any claim which might give rise
to any liability to indemnify the other under the
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paragraphs of this clause 2 and shall give each other such assistance
as either may reasonably require:
(a) to comply with the Transfer Provisions in the relevant European
Country in relation to the European Employees;
(b) in contesting or otherwise dealing with any claim by any
European Employee resulting from or in connection with this
Agreement.
2.11 On the Completion Date the Vendor (on behalf of itself and the Relevant
Seller) and the Purchaser (on behalf of itself and the Relevant
Purchaser) shall jointly communicate to the European Employees an
agreed notice.
3 OTHER EMPLOYEES
3.1 In sufficient time to allow proper contractual or statutory notice of
termination of employment to be given by the Relevant Seller or in such
timescale as the parties may agree but in any event prior to the
Completion Date, the Purchaser shall, or shall procure that the
Relevant Purchaser shall, make or procure to be made, an offer to each
Other Employee (other than those under notice of termination of
employment (for whatever reason) at the time the Purchaser or the
Relevant Purchaser makes its offer) to employ him or her under a new
contract of employment to commence immediately from the Completion
Date. The offer to be made will be such that:
(a) the provisions of the new contract shall be as nearly the same
as the corresponding provisions of his or her contract of
employment as existing immediately prior to Completion as is
reasonably practicable, save as to the identity of the
employer;
(b) it provides that his or her period of continuous service with
the Relevant Seller shall be counted as continuous service with
the Relevant Purchaser.
3.2 If an Other Employee wishes to accept the offer referred to in
paragraph 3.1 above, then the Vendor shall, or shall procure that the
Relevant Seller shall so far as permitted by law waive any requirement
on the Other Employee concerned to give any period of notice of
termination of his or her employment under the terms of his or
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her employment so as to allow the Other Employee to commence employment
with the Relevant Purchaser from the Completion Date.
3.3 The Vendor (on behalf of itself and the Relevant Seller) and the
Purchaser (on behalf of itself and the Relevant Purchaser) shall give
each other such assistance as either may reasonably require in
contesting or otherwise dealing with any claim by any Other Employee
resulting from or in connection with this Agreement.
3.4 The Vendor (on behalf of itself and the Relevant Seller) shall be
responsible for and shall fully indemnify and keep indemnified the
Purchaser (on behalf of itself and the Relevant Purchaser) from and
against all and any Employment Costs and Employment Liabilities
arising, directly or indirectly, from any actual or alleged act or
omission of the Relevant Seller in relation to the Other Employees
prior to the Completion Date including any which are deemed by virtue
of relevant local law to be an act or omission of the Relevant
Purchaser after the Completion Date.
3.5 The Purchaser (on behalf of itself and the Relevant Seller) shall, be
responsible for and shall fully indemnify and keep indemnified the
Vendor (on behalf of itself and the Relevant Seller) from and against
all Employment Costs and Employment Liabilities in relation to any
Other Employees who accept the offer referred to in paragraph 3.1 above
arising from any actual or alleged act or omission of the Relevant
Purchaser after the Completion Date or, if later, on or after the date
of commencement of the such employee's employment with the Relevant
Purchaser. To the extent that the Purchaser or the Relevant Purchaser
has between Completion and the date of commencement of such employment
engaged the services of any such Other Employee the Purchaser (on
behalf of itself and Relevant Purchaser) shall reimburse the Vendor or
the Relevant Seller in respect of any Employment Costs which the Vendor
or the Relevant Seller has thereby incurred on or after the Completion
Date.
3.6 On the Completion Date the Vendor (on behalf of itself and the Relevant
Seller) and the Purchaser (on behalf of itself and the Relevant
Purchaser) shall jointly communicate to the Other Employees an agreed
notice.
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4 SHARE SCHEMES
The Vendor undertakes that:
4.1 it will meet in full its obligations under the terms of the BICC
Savings-Related Share Option Scheme 1991, the BICC Executive Share
Option Scheme 1991, and the BICC UK Executive Share Option Scheme
(Unapproved) ("the Option Schemes") and the BICC Long-Term Incentive
Plan ("the Plan") to Employees who are participants in the Option
Schemes and/or the Plan and procure that BICC Employees' Trustees
Limited in its capacity as Trustee of the BICC Employee Share Ownership
Trust meets its obligations to Employees who are participants in the
Plan;
4.2 it will inform the Purchaser as soon as reasonably practicable if it
receives from any of the Employees a valid notice of exercise of an
option under the Option Schemes or if the interest of any of the
Employees under the Plan vests and in such event pay to the Purchaser
in cleared funds the full amount which the Purchaser or other of the
Relevant Group Companies is liable to pay by way of tax or social
security contributions to the Inland Revenue or other relevant
governmental authorities arising out of the said exercise or vesting;
4.3 it will indemnify the Purchaser or other Relevant Group Companies in
respect of any Taxation arising out of the failure of the Vendor to
make any of the payments required by paragraph 4.2 above;
4.4 all sums payable by the Vendor to the Purchaser under paragraph (c)
above shall be paid free and clear of all deductions, withholdings,
set-offs or counterclaims whatsoever save only as may be required by
law. If any deductions or withholdings are required by law the Vendor
shall be obliged to pay to the Purchaser such sum as will after such
deduction or withholding has been made leave the Purchaser with the
same amount as it would have been entitled to receive in the absence of
any such requirement to make a deduction or withholding;
4.5 if any Taxation authority charges to Taxation any sum paid to the
Purchaser under paragraph 4.3 above then the amount so payable shall be
grossed up by such amount as will ensure that after payment of the
Taxation so charged there shall be left
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a sum equal to the amount that would otherwise be payable under
paragraph 4.3 above.
5 SINGAPORE EMPLOYEES
The parties shall between the date of this Agreement and the Completion
Date meet to determine whether the six Singapore-based expatriate
European Employees whose names are set out in page 1 of the list in the
agreed terms working for BICC Cables Asia-Pacific Pte Ltd (BICCAP) as
at the date of this Agreement shall continue to be employed in the
Operations in Singapore whether as secondees to BICCAP, on the basis of
short term employment with BICCAP, or otherwise. To the extent the
parties determine that the said employees shall not be employed in the
Operations in Singapore following Completion, or Subsequent completion,
or that such employment will not last for more than six months from the
Completion Date (or Subsequent Completion Date as the case may be), the
Vendor shall be responsible for all Losses incurred in terminating the
employment of these Singapore-based expatriate European Employees.
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SCHEDULE 12
EMPLOYEE BENEFIT ARRANGEMENTS
1 In this Schedule, the following expressions shall, unless the context
otherwise requires, have the following meanings:
ACTUARY means the Vendor's Actuary or the Purchaser's Actuary as the
context requires
THE PARTICIPATION PERIOD means the period commencing on Completion and
ending six months thereafter or on such other date as the parties (with
the consent of the Inland Revenue) shall otherwise agree
THE PAYMENT DATE means such date agreed by the Vendor and the Purchaser
being not more than one calendar month after the later of:
(a) the date of determination of the aggregate of the Transfer
Values; and
(b) the date on which the Vendor receives confirmation from the
Purchaser that the Purchaser's Scheme is legally able to
receive a transfer payment from the relevant Vendor's Scheme
such confirmation to include a copy of the PSO approval (if
necessary) to the said transfer payment and any requisite DSS
documentation; and
(c) the date on which the Vendor receives copies of the consents
referred to in the definition of the Transferring Employees
THE PENSION TRANSFER DATE means the day after the last day of the
Participation Period
PENSIONABLE EMPLOYEES means such Employees who are active members of
either of the Vendor's Schemes at Completion
PURCHASER'S ACTUARY means such actuary as the Purchaser may appoint
PURCHASER'S SCHEME means the retirement benefits scheme or schemes
established or nominated pursuant to paragraph 5.2
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UK PURCHASER means the Relevant Purchaser of the Business in the United
Kingdom
VENDOR'S ACTUARY means such actuary as the Vendor may appoint
THE VENDOR'S LETTER means each of the letters written by the Vendor's
Actuary to Xx. X X Xxxxxxxx dated 31 March 1999 copies of which are
annexed hereto
VENDOR'S SCHEMES means the two retirement benefits schemes known as the
BICC Group Pension Fund and the BICC Group Senior Executive Pension
Fund respectively
THE TRANSFER AMOUNT means the aggregate of the Transfer Values adjusted
to the Payment Date as specified in the relevant Vendor's Letter
THE TRANSFER VALUE means the sum or sums calculated in respect of each
Transferring Employee in accordance with the actuarial method and
assumptions as set out in the relevant Vendor's Letter at the Pension
Transfer Date and includes, for the avoidance of doubt, the amount in
respect of additional voluntary contributions paid to purchase added
years at that date. The Transfer Value in respect of each Transferring
Employee will not be less than the cash equivalent for each such
employee at the Pension Transfer Date as required under Part IV Chapter
IV of the Xxxxxxx Xxxxxxx Xxx 0000
THE TRANSFERRING EMPLOYEES means such Pensionable Employees who become
members of the Purchaser's Scheme with effect from the Pension Transfer
Date and who immediately before the Pension Transfer Date were active
members of either of the Vendor's Schemes and who before the Payment
Date consent to the transfer of their accrued benefits under the
relevant Vendor's Scheme to the Purchaser's Scheme, such consent to be
in writing, and do not withdraw their consent prior to the Payment Date
2 In respect of the Vendor's Schemes, during the Participation Period the
Purchaser shall procure that there shall be paid in respect of each
Pensionable Employee the following contributions so long as they remain
active members of the appropriate scheme:
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GROUP PENSION FUND
Contributions to the BICC Group Pension Fund are at the following rates
which are based on the standard annual earnings (as defined in the
rules of the Fund), less a deduction of (pound)2964 pa for each member.
Employer contribution:
Senior Executive Pension
Fund members who joined that
Fund prior to 1 January 1994 16.8% per annum
All other members 13.2% per annum
Members contribution:
All members 5% per annum
SENIOR EXECUTIVE PENSION FUND
For the Senior Executive Pension Fund members there is an additional
employer contribution to the BICC Group Senior Executive Pension Fund
based on standard earnings (as defined in the Fund rules) less
(pound)2964 per annum at the rate of 4.3% per annum thereof for seNIOR
management roll members and at the rate of 12.0% per annum thereof for
executive roll members and senior executive roll members.
All such employer and member contributions (which will be inclusive of
all liability to contribute to the administration and management and
other costs of the Vendor's Schemes) shall be remitted to the trustees
of the relevant Vendor's Scheme within 14 days of the end of the
calendar month in respect of which the contributions were due or
collected, as appropriate.
3 If the Purchaser fails to procure the payment of the contributions
referred to in paragraph 2 the Vendor may either make the payment
itself and recover the amount from the Purchaser as a debt or notify
the relevant trustees that the contributions cannot be made, in which
case the trustees may elect by notice in writing to the Purchaser to
cease to permit the UK Purchaser to participate in the relevant scheme.
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4 Up to and including the Payment Date, the Vendor shall ensure that:
4.1 subject to the consent of the Inland Revenue the Vendor will use its
best endeavours to ensure that the UK Purchaser can participate in the
Vendor's Schemes in respect of the Pensionable Employees during the
Participation Period;
4.2 the Vendor's Schemes remain in full force and effect in respect of the
Pensionable Employees and retain their contracted out and Inland
Revenue approved status;
4.3 no alterations are made to, or powers or discretions exercised under,
the Vendor's Schemes which affect the accrued, contingent or future
interests of the Pensionable Employees except with the consent of the
Purchaser (such consent not to be unreasonably withheld or delayed);
4.4 all death-in-service benefits applicable to the Pensionable Employees
are continued during the Participation Period.
4.5 The Vendor shall procure that any Pensionable Employee who for any
reason during the Participation Period becomes eligible for a benefit
under either of the Vendor's Schemes (including for the avoidance of
doubt, an early retirement pension on the terms set out in the relevant
Vendor's Scheme) shall (subject to the consent of the Purchaser) be
granted such benefit without further contribution being required of the
Purchaser or of the Pensionable Employee, except where the amount of a
benefit is augmented at the request or with the consent of the
Purchaser, in which case the grant of such additional benefit under the
relevant Vendor's Scheme shall be conditional on payment by the UK
Purchaser to the trustees of the relevant Vendor's Scheme of such
amount by way of additional contribution as shall be agreed between the
Vendor's Actuary and the Purchaser's Actuary as being equal to the
excess (if any) of the value (on the basis of the method and
assumptions set out in the relevant Vendor's Letter) of the augmented
benefit over the non-augmented benefit.
5 TRANSFER PAYMENTS
5.1 The Vendor and the Purchaser will each take steps within its competence
to ensure that by such date that is no later than 45 days after the
Pension Transfer Date each Pensionable Employee is given the
opportunity of consenting in terms approved by
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the trustees of the Vendor's Schemes (such approvals not to be
unreasonably withheld or delayed) to a transfer of assets being made
for him from the relevant Vendor's Scheme to the Purchaser's Scheme in
accordance with the provisions of this Schedule.
5.2 The Purchaser undertakes to establish or nominate one or more
retirement benefits schemes on or before the Pension Transfer Date.
5.3 Subject to receipt of the Transfer Amount, the Purchaser's Scheme shall
provide in respect of each of the Transferring Employees (subject to
Inland Revenue limits on benefits not being exceeded) benefits on a
basis for service prior to the Pension Transfer Date which is in the
opinion of the Purchaser's Actuary and agreed by the Vendor's Actuary
no less favourable in value than the basis of the benefits for such
service to which that Transferring Employee is entitled under the
relevant Vendor's Scheme at the Completion Date provided that for the
avoidance of doubt there shall be deemed to be no obligation to
equalise benefits in the Vendor's Scheme or the Purchaser's Scheme
arising as a result of Guaranteed Minimum Pensions. Any notional money
purchase underpin applicable to additional voluntary contributions paid
to purchase added years in the Vendor's Schemes which increases the
Transfer Amount shall also be given value in the Purchaser's Scheme on
the same basis as referred to above.
5.4 Immediately following the Pension Transfer Date, the Vendor's Actuary
shall calculate the Transfer Value in respect of each of the
Transferring Employees and shall pass the results of his calculations
to the Purchaser's Actuary by such date which is three months after the
Pension Transfer Date (or the date which is three months after the date
of receipt of any data requested pursuant to paragraph 5.6, if later).
5.5 The Purchaser's Actuary will have two months from the date of his
receipt of the results of the Vendor's Actuary's calculations (or the
date which is two months after the date of receipt of any data
requested pursuant to paragraph 5.6, if later) to agree the results of
those calculations or to raise any objections he may have. Any such
objections are to be notified in writing.
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5.6 The Vendor and the Purchaser shall use their respective reasonable
endeavours to procure that any information which the Vendor's Actuary
or the Purchaser's Actuary may reasonably require in order to calculate
and verify the Transfer Values shall be provided to the Vendor's
Actuary or the Purchaser's Actuary (as appropriate) as soon as is
reasonably practicable and that such information shall be true and
complete in all material respects.
5.7 If no objections are raised by the Purchaser's Actuary pursuant to
paragraph 5.5 the Transfer Values will be binding upon the parties.
5.8 If any objections are notified pursuant to paragraph 5.5 the parties
are to instruct their respective Actuaries to negotiate with a view to
resolving any differences between them.
5.9 If those differences remain unresolved at the end of thirty days after
the objections have been notified pursuant to paragraph 5.5 either
party may refer the matter to the Expert. The provisions of paragraph 6
will then apply in this matter.
5.10 The Vendor shall use its reasonable endeavours to procure that, on the
Payment Date an amount in specie equal to the Transfer Amount
consisting of 60% UK equity and 40% overseas equity investments
(comprising 131/3 % in North America, 131/3% in Europe excluding the
UK, 62/3% in Japan and 62/3% in the Pacific Basin excluding Japan) (but
excluding interests in pooled funds which are not index-tracking funds)
based on their mid-market values on the Business Day prior to the
Payment Date shall be transferred by the Investment Managers on behalf
of the trustees of the Vendor's Schemes to the trustees or managers of
the Purchaser's Scheme. The equities transferred will be a reasonable
cross section of those held by the Vendor's Schemes as agreed by the
Vendor and the Purchaser (such agreement not to be unreasonably
withheld or delayed). To the extent that such agreement is not reached,
an amount in cash equal to the balance of the Transfer Amount subject
to a realisation charge of 1/2% shall be transferred.
5.11 If on the Payment Date the aggregate amount transferred by the trustees
of the Vendor's Schemes to the trustees or managers of the Purchaser's
Scheme in relation
169
to the Transferring Employees is less than the Transfer Amount (the
difference between such aggregate amount transferred and the Transfer
Amount being the "Underpayment"), the Vendor shall forthwith pay to the
Purchaser or as it may direct (by way of reduction of the purchase
consideration) a cash amount equal to the Underpayment together with
interest thereon at the rate of 2 per cent above the base rate from
time to time of The Hong Kong and Shanghai Banking Corporation Limited
in respect of the period from and including the Payment Date up to but
excluding the date of actual payment under this paragraph 5.11.
5.12 As soon as reasonably practicable after receipt of the Underpayment,
the Purchaser shall, or shall procure that the UK Purchaser will, pay
into the Purchaser's Scheme an amount equal to the Underpayment. The
Purchaser shall, promptly upon it and the UK Purchaser receiving any
net tax benefit in respect of such payment, pay (or procure the payment
of) to the Vendor (by way of increase of the purchase consideration) an
amount equal to such net tax benefit (taking into account any tax
liability of the Purchaser or the UK Purchaser on receipt of the
Underpayment and any tax deduction in respect of the payment by the
Purchaser or the UK Purchaser into the Purchaser's Scheme).
5.13 The Vendor will use its best endeavours to ensure that the appropriate
funds in respect of additional voluntary contributions not paid to
purchase added years attributable to the Transferring Employees is
transferred to the Purchaser's Scheme on the Payment Date.
5.14 The funds transferred in accordance with paragraph 5.13 above shall be
used for the exclusive benefit of those Transferring Employees who have
made additional voluntary contributions as referred to in that
paragraph.
6 Any dispute between the Vendor and the Purchaser or between the
Vendor's Actuary and the Purchaser's Actuary concerning the matters
referred to in this Schedule shall in the absence of agreement between
them be referred to an independent actuary ("the Expert") appointed by
the parties or to be appointed at the request of either party hereto by
the President for the time being of the Institute of Actuaries if
agreement as
170
to the independent actuary to act as the Expert cannot be reached. The
person so appointed shall act as an expert and not as an arbitrator.
The decisions of the Expert shall be final and binding on the parties
hereto. The costs of the Expert shall be borne as the Expert shall
direct.
7 The Purchaser shall procure that the UK Purchaser will authorise the
Vendor to exercise all powers, rights and discretions conferred on the
UK Purchaser under the Xxxxxxxx Xxx 0000 by virtue of its participation
in the Vendor's Schemes. In particular, the Purchaser shall procure
that the UK Purchaser will:
7.1 nominate the Vendor as the "appropriate person" to act for each of them
for the purposes of section 21(9) of the Xxxxxxxx Xxx 0000 in relation
to the Vendor's Schemes.
7.2 agree that:
(a) the Vendor should act on their behalf for the purposes
of section 58(4) of the Xxxxxxxx Xxx 0000 in respect of
the Vendor's Schemes; and
(b) the Vendor will consult with the trustees of the
Vendor's Schemes pursuant to section 35(5) of the
Xxxxxxxx Xxx 0000 in place of the UK Purchaser.
8 INDEMNITIES
8.1 The Vendor shall indemnify the Purchaser (for itself and as agent and
trustee for the UK Purchaser, the employer of the employees concerned
as referred to in (c) below and the Purchaser's Scheme) against all
actions, proceedings, costs, claims, damages and expenses brought or
made against or incurred by the Purchaser or the UK Purchaser, or the
employer of the Employees concerned as referred to in (c) below or the
Purchaser's Scheme (including, without limitation, any additional
contributions payable to the Purchaser's Scheme) insofar as the same
arise from: (a) the Purchaser or the UK Purchaser or the Purchaser's
Scheme being required to provide benefits to any Employees in respect
of the whole or part of their service prior to the Completion Date in
excess of the benefits provided under paragraph 5.3 where such
requirement arises by reference to the provisions of European Community
law or
171
sections 62 to 66 of the Pensions Xxx 0000 relating to the equal access
requirements or relating to the equal treatment requirements insofar as
they apply to members of the BICC Group Senior Executive Fund who
joined that Fund prior to 2 March 1987. For the avoidance of doubt this
requirement shall not include the equalisation of guaranteed minimum
pensions; (b) the Purchaser or the UK Purchaser being liable for any
deficiency under the Vendor's Schemes pursuant to section 75 of the
Pensions Xxx 0000 or otherwise howsoever in relation to the Vendor's
Schemes (except for amounts payable by the Purchaser or the UK
Purchaser pursuant to paragraphs 2 and 4.5 or except in so far as
attributable to any act or omission of the Purchaser or the UK
Purchaser); (c) the Purchaser or the UK Purchaser or the Purchaser's
Scheme or the employer of the employees concerned being liable in
relation to any participation prior to the Completion Date by
ex-patriate employees in the Vendor's Schemes in contravention of
Inland Revenue requirements (including, without limitation, Mr N
Xxxxxxxxx, ex-patriate employee based in Egypt, and Mr W Xxxxxx,
ex-patriate employee based in Dubai). The indemnity in sub-paragraph
(c) is conditional on the Purchaser, the UK Purchaser and the
Purchaser's Scheme and the employer of the employees concerned
co-operating with the Vendor in minimising any such liability including
in particular complying with any requirements or conditions that may be
imposed by the Inland Revenue (whether as to the nature of the
Purchaser's Scheme to which such benefits are transferred or
otherwise).
8.2 The Vendor shall indemnify the Purchaser (for itself and as agent and
trustee for the Relevant Purchaser of the Shares in BICC General Cable
SA against all Losses suffered by the Purchaser or the Relevant
Purchaser (including, without limitation, any additional payments
required to be made to Sud America Vida y Pensiones, S.A. or
Sudamericana Seguros) in so far as the same arise from the assets held
at the Completion Date in respect of the policies issued by Sud America
Vida y Pensiones, S.A. or Sudamericana Seguros in relation to employees
of such Relevant Purchaser (including Xxxxxxx, X.X. and any other
companies whose businesses have been merged with such Relevant
Purchaser) being less than the liabilities at the Completion Date in
relation to such employees (assessed on the same basis as the actuarial
172
valuation dated 1 January 1998) Provided that due account will be taken
for this purpose of any allowance made in the Net Asset Statement in
respect of any such underfunding.
173
SCHEDULE 13
PART 1
NON-LEASED PROPERTIES
BRIEF DETAILS OF PROPERTY
1 Erith Works, Church Manorway, Erith, Kent
2 Wrexham Site (save for Wrexham II), Oak Road, Wrexham Trading Estate,
Clwyd
0 Xxxxxxx Xxxxx, Xxxx Xxxx, Xxxxxxx, Xxxxxxxxxx
4 The Sports and Social Club off Warrington Road, Prescot, Lancashire
5 Leigh Works (save for the Brand Xxx Premises), Xxxx Xxxxxxxxxxx Xxxxxx,
Xxxxx, Xxxxxxxxxx
0 Xxxxxxx Xxxxx, Xxxxxxxx Xxxx, Xxxxxxx, Xxxxxx
0 Xxxxxxxx Xxxxxx, Xxxxxxxxx Xxxx, Xxxxxxxxxx
174
SCHEDULE 13
PART 2
LEASED PROPERTIES
Address of Property:
Xxxxx 0, XXX Xxxxx, Xxxx Xxxxx Newydd,
Phoenix Way, Enterprise Park, Swansea
Parties: RVB Investment Limited (1) and
BICC Components Limited (2)
Current tenant and guarantor: BICC Components Limited. No guarantor.
Term (including options to break and renew):
3 years commencing on 14 December 1998, Tenant's only option to break on each
anniversary of lease on giving 3 months prior notice to Landlord.
Current rent and rent review dates:
(pound)9,645 per annum. No rent review.
175
SCHEDULE 13
PART 3
LIST OF OVERSEAS PROPERTIES
---------------------------------------------------------------------------------------------------
OWNER PROPERTY TENURE
---------------------------------------------------------------------------------------------------
ITALY:
BICC Ceat Cavi srl Energy Cables Division, Via Xxxxxx Freehold
Xxxxxxxx 00/X, 00000 Xxxxxx Xxxxxx, Xxxxx
BICC Ceat Cavi srl Xxx Xxxxxxx 00, 00000 Xxxxxxx Xxxxxxxx, Xxxxxxxx
Xxxxx, Xxxxx
---------------------------------------------------------------------------------------------------
SPAIN:
BICC General Cable SA Xxxxxxxxx xx Xxxxx Xx 00,0, Xxxxxxxx i Freehold
Reixach (Barna), Spain
BICC General Cable SA c/Rusinol 00, Xxxxxxx (Xxxxx), Xxxxx Freehold
BICC General Cable SA Ctra Martorell a Xxxxx Xx 0,0, Xxxxxxx, Xxxxxxxx
Xxxxx
BICC General Cable XX Xxxxxxxx 000, Xxxxxxxxx, Xxxxx Freehold
BICC General Cable XX Xxxxxxx, Castello, Teulada (Alicante), Freehold
Spain
BICC General Cable SA Xxxx Xxxxxx xx Xxxxxx 0, Xxxxxxxx Xxxxxxxxx
(Xxxxxxx), Xxxxx
BICC General Cable SA Ctra Nacional IV, Edificio Eurosevilla, Leasehold
Sevilla, Spain
BICC General Cable SA Xxxx xx Xxxxxxxxxxxx 00, Xxxxxx, Xxxxx Leasehold
BICC General Cable SA Xxxxxx Xxxxxx 00, Xxxxxxxx, Xxxxx Leasehold
BICC General Cable SA Rusinol 00, Xxxxxxx (Xxxxx), Xxxxx Leasehold
---------------------------------------------------------------------------------------------------
NORWAY:
BICC Norspa A/S Xxxxxxxxx 0, Xxxxxxx 0000 Xxx, Xxxxxx Leasehold
---------------------------------------------------------------------------------------------------
BRAZIL:
BICC Novacoes Ltda Xxxx Xxxxx Xxxxxx Xxxxxxxxxx, 00 Xxxx-0, Leasehold
Serra Espirito Santo, Brazil
---------------------------------------------------------------------------------------------------
PORTUGAL:
BICC Celcat Cabos de Energia e Xx Xxxxxxx xx Xxxxxx 00/00, Xxxxxxxx, Freehold
Telecommunicaciones SA 2715 Pero Xxxxxxxx, Portugal
BICC Cabos de Energia e Porto Branch, Rua Goncaio Cristovao Leasehold
Telecommunicaciones SA 312-4 XxX, 0000 Porto, Portugal
---------------------------------------------------------------------------------------------------
176
---------------------------------------------------------------------------------------------------
OWNER PROPERTY TENURE
---------------------------------------------------------------------------------------------------
MOZAMBIQUE:
Celmoque Cabos de Energia e Xx Xxxxxxxxx Xxxxxxxxxx 0000, Maputo, Leasehold
Telecommunicaciones SA Mozambique
Celmoque Cabos de Energia e (Head Office), Xxxxxxx Xxxxxxxx Xx0 Xxxx Installations
Telecommunicaciones SA da Manga, Beira-Provincia da Sofala, Owned
Mozambique Land
Nationalised
---------------------------------------------------------------------------------------------------
ANGOLA:
Condel Fabrica de Contudores Cazenga 0x Xxxxxxx, Xxxxxx, Xxxxxx Xxxxxxxx
Electrizos de Angola SARL
Condel Fabrica de Contudores Av Rainha Ginga 147-6o Luanda, Angola Leasehold
Electrizos de Angola SARL
---------------------------------------------------------------------------------------------------
DUBAI:
Dubai Cable Company (Private) Ltd. XX Xxx 00000, Xxxxx, Xxxxxx Xxxx Xxxxxxxx Land
allocated
by
State
Dubai Cable Company (Private) Ltd. Dubai City and Distribution sites in Abu Leasehold
Dhabi, Bahrain and Oatar
---------------------------------------------------------------------------------------------------
EGYPT:
BICC Egypt SAE Abou Rawash Industrial Zone, Giza, Freehold
Cairo, Egypt
BICC Egypt SAE 33 Ahmed Hishmet Street, Zamalek, Cairo, Leasehold
Egypt
---------------------------------------------------------------------------------------------------
ZIMBABWE:
BICC CAFCA Limited PO Box 1651 Lytton Road, Workington, Freehold
Harare, Zimbabwe
---------------------------------------------------------------------------------------------------
CHINA:
BICC Cables Asia-Pacific Pte Ltd. Shanghai Rep Office, 1104/05 Hong Kong Xxxxxxxxx
Xxxxx, 000 Xxxx Xxx Middle Road,
Shanghai 200021, Peoples Republic of
China
BICC Cables Asia-Pacific Pte Ltd. Xxxxxxx Xxx Xxxxxx, Xxxx 00 00/X, Xxxxxx Leasehold
Centre, 8 East Road, Northern 0 Xxxx
Xxxx, Xxxx Xxxx Xxxxxxxx, Xxxxxxx,
Xxxxxxx Xxxxxxxx of China
---------------------------------------------------------------------------------------------------
TAIWAN:
BICC Energy Cables Pte Ltd. Taiwan Rep Office, Xxxx 00 00/X, 00 Xxxxxxxxx
Xxxxx Xxxxx Xxxx Xxxx, Xxxxxx, Xxxxxx
---------------------------------------------------------------------------------------------------
NEW ZEALAND:
BICC Cables New Zealand Ltd. Riccarton Factory, 00/00 Xxxx Xxxxx Xxxxxxxx
Xxxx, Xxxxxxxxx, Xxxxxxxxxxxx, Xxx
Xxxxxxx
---------------------------------------------------------------------------------------------------
177
---------------------------------------------------------------------------------------------------
OWNER PROPERTY TENURE
---------------------------------------------------------------------------------------------------
BICC Cables New Zealand Ltd. Auckland Service Centre, 00-00 Xxxxxx Xxxxxxxxx
Xxxxx, Xx. Xxxxxxxxxx, Xxxxxxxx, Xxx
Xxxxxxx
BICC Cables New Zealand Ltd. Wellington Service Centre, 00 Xxxxxx Xxxxxxxxx
Xxxxxx, Xxxxxxxxxx, Xxx Xxxxxxx
BICC Cables New Zealand Ltd. Wellington Warehouse, 00 Xxxx Xxxx, Xxxxxxxxx
Xxxxxx, Xxxxxxxxxx, Xxx Xxxxxxx
---------------------------------------------------------------------------------------------------
FIJI:
Dominion Wine and Cables Ltd. Ba factory, Xxx 0 Xxxxx Xxxx, Xxxxxxx, Xxxxxxxx
XX, Xxxx Island
---------------------------------------------------------------------------------------------------
SINGAPORE:
BICC Energy Cables Pte Ltd. Xxxxx Xxxxx Xxxxxx, 000 Xxxxxxx Xxxx, Leasehold
#17-02 Xxxxx Xxxxx, Xxxxxxxxx 000000
BICC Energy Cables Pte Ltd. Pasir Panjang, Pasir Panjang Distrpark, Leasehold
Pasir Xxxxxxx Xxxx, Xxxxxxxxx 000000
Trans-Power Cables Pte Limited Trans-Power Cables Pte Ltd, Xxxxx Xxxxxxxxx
#00-00, 00-00, 00-00, Xxxxx Xxxxxxx
Building, 00 Xxxx Xxxxx Xxxxxxx,
Xxxxxxxxx 000000
Trans-Power Cables Pte Limited Trans-Power Cables Pte Ltd, Unit 16, Leasehold
Pasir Panjang Distrpark, West Coast
Highway, Singapore
BICC Cables Asia-Pacific Pte Ltd. Wisma Atria Regional Office, 435 Orchard Leasehold
Road, #21-01/02/03 Xxxxx Xxxxx,
Xxxxxxxxx 000000
---------------------------------------------------------------------------------------------------
MALAYSIA:
BICC Energy Cables Pte Ltd 00 Xxxxx Xxxxx 0/0 Xxxxxxxxx
Xxxxx Xxxxx, 00000
Xxxxx Bahru, Maylasia
Power Cables Malaysia Sdn Bhd Shah Alam factory, Xxx 0, Xxxxx Xxxxx Xxxxxxxxx
00/00, 00000 Xxxx Xxxx, Xxxxxxxx,
Xxxxxxxx
Power Cables Malaysia Sdn Bhd Bukit Raja aluminium rod plant, Lots 31 Freehold
and 00, Xxxxx Xxxx Xxxxxxxxxx Xxxx,
Xxxxx, Xxxxxxxx, Xxxxxxxx
---------------------------------------------------------------------------------------------------
INDONESIA:
PT BICC Berca Cables Balaraja factory, Blok F1 0/0, Xxxxx Xxxxxxxx
Xxxx Xxxxxx Xx00.0, Xxxxxxxx-Xxxxxxxxx,
West Java, Republic of Indonesia
---------------------------------------------------------------------------------------------------
178
---------------------------------------------------------------------------------------------------
OWNER PROPERTY TENURE
---------------------------------------------------------------------------------------------------
HONG KONG:
BICC Cables China Ltd. Great Eagle Centre, Room 1011, Great Leasehold
Eagle Centre, Wanchai, Hong Kong
BICC Cables China Ltd. Chai Wan warehouse, Xxxx 00, 0/X Xxxx Xxxxxxxxx
Xxx Xxxxxxxxxx Xxxx, 70 Wing Tai Road,
Chai Wan, Hong Kong
---------------------------------------------------------------------------------------------------
ARGENTINA:
BICC Cables Argentina SA X X Xxxxxx No 1255, Villa Xxxxxx, Leasehold
Xxxxxxx xx Xxx Xxxxxx, Xxxxxxxxx xx
Xxxxxx Xxxxx, Xxxxxxxxx
---------------------------------------------------------------------------------------------------
THAILAND:
BICC Energy Cables Pte Ltd. Thailand Rep Office, Unit 1701, One Leasehold
Pacific Place, 000 Xxxxxxxx Xxxx,
Xxxxxxxxx, Xxxxxxx 00000, Xxxxxxxx
---------------------------------------------------------------------------------------------------
179
SCHEDULE 14
The provisions of this Schedule 14 apply only to those Properties located in
England or Wales
PART 1
TERMS OF SALE OF THE BUSINESS SELLERS' PROPERTIES IN ENGLAND AND WALES
1 Insofar as the same are applicable and are not consistent with or
varied by the express terms of this Agreement, this Agreement shall
incorporate the Standard Conditions of Sale (Third Edition)
("Conditions") as varied in the manner set out below which shall apply
in respect of Properties in England and Wales.
1.1 In paragraphs (a) and (b) of Condition 1.3.6 the words "unless returned
undelivered" shall be added after the word "posting".
1.2 Paragraph (c) of Condition 3.1.2 shall be amended to read "those of
which the seller does not have actual knowledge" and the following
paragraph (f) shall be added to the Condition:
"(f) all other matters disclosed or reasonably to be expected to be
disclosed by searches and as a result of enquiries made by or for the
buyer or which a prudent buyer ought to make".
1.3 In Condition 3.1.3 the words "of which he receives actual knowledge"
shall be inserted after the words "new public requirement" and shall
also be substituted for the words "which he learns about".
1.4 Condition 4.3.2 shall not apply.
1.5 Conditions 5.1.1 and 5.1.2 shall not apply and the risk of damage to or
destruction of the Business Seller's Properties passes to the Purchaser
from the date of this Agreement save that the Vendor shall continue to
insure the Business Seller's Properties (other than the Business
Sellers' Leased Property) on the current terms (so far as it is able)
and in the event of any damage or destruction of them the Vendor will
pay the insurance proceeds received by it to the Purchaser and if any
insurance money shall be irrecoverable due to any act or neglect of the
Vendor or any Business
180
Seller or any of their respective undertenants, employees, servants,
agents, licencees or mortgagees, then the Vendor shall pay to the
Purchaser the irrecoverable amount. Condition 5.1.3 shall not apply.
1.6 In the case of the Business Seller's Leased Properties the following
proviso shall be added at the end of Condition 6.6:
"PROVIDED that the production of such receipt shall not be a condition
of completion but if the seller is unable to produce the same then the
seller shall furnish such other evidence (if any) as may be available
in respect thereof"
and in paragraph (a) of Condition 8.3.2 the words "but the seller shall
not be obliged to pay a premium for such consent" shall be added after
the words "obtain it" and Condition 8.3.4 shall not apply.
2 BUSINESS SELLERS' LEASED PROPERTIES
2.1 The Vendor shall procure that the relevant Business Seller shall:
2.1.1 apply at its own expense for consent to assign any Business
Sellers' Leased Property; and
2.1.2 use all reasonable endeavours to obtain such consent; and
2.1.3 keep the Purchaser fully informed of all progress made with
regard to the obtaining of such consent.
2.2 The Purchaser shall in connection with obtaining the consent referred
to in paragraph 2.1.1 above:
2.2.1 provide all information and references reasonably required by
the landlord;
2.2.2 enter into direct covenants and provide such other security as
required under the relevant lease or as the landlord may
otherwise reasonably require.
2.3 In the event that any necessary consent to assign any Business Sellers'
Leased Property has not been obtained by the Completion Date then the
following provisions shall apply:
181
2.3.1 completion of the transfer of the relevant Business Seller's
Leased Property shall be deferred until three Business Days
after such consent has been obtained and a copy provided to the
Purchaser;
2.3.2 during the period from Completion until the date of actual
completion of the transfer of the relevant Business Seller's
Leased Property (the INTERIM PERIOD) the Vendor shall procure
that the relevant Business Seller shall:
(i) hold the relevant Business Seller's Leased Property on
trust for the Purchaser; and
(ii) permit the Purchaser to occupy the relevant Business
Seller's Leased Property as licensee for the purposes
for which it has been used by the relevant Business
Seller prior to the date hereof; and
(iii) not without the prior consent of the Purchaser
surrender or sell or vary or agree any revised rent for
any Lease or agree to do any of the same.
2.4 During the Interim Period the Purchaser shall:
2.4.1 within five Business Days of written demand put the Vendor in
funds so as to enable the relevant Business Seller to pay all
rents, service charges and other outgoings and expenses payable
in respect of the relevant Business Seller's Leased Property
and which relate to the Interim Period;
2.4.2 save insofar as the same are the express responsibility of the
Vendor under this Agreement, observe and perform the covenants
and conditions on the part of the lessee contained in the Lease
or otherwise affecting the relevant Business Seller's Leased
Property;
2.4.3 not without the Vendor's prior written consent, erect or affix
on the relevant Business Seller's Leased Property any signs or
other notifications that the relevant Business Seller's Leased
Property is no longer occupied by the relevant Business Seller;
and
182
2.4.4 indemnify the Vendor and the relevant Business Seller against
the acts and omissions of the employees servants agents and
invitees of the Purchaser in or about the relevant Business
Seller's Leased Property occurring on or after Completion.
2.5 If such consent has not been obtained to assign the relevant Business
Seller's Leased Property within six months after Completion then either
party may (provided it has complied substantially with its obligations
under paragraph 2) at any time before such consent has been obtained
exclude the relevant Business Seller's Leased Property from the sale
and purchase pursuant to this Agreement by notice in writing to the
other party in which case neither party is to be treated as in breach
of contract.
3 THE BUSINESS SELLERS' PROPERTIES
3.1 The Business Sellers' Properties are sold together with all easements,
rights and licences attaching or appurtenant thereto and all
buildings, structures and fixed and non-severable plant, machinery and
equipment thereon except:
3.1.1 property belonging to the suppliers of gas, water, electricity,
telecommunications or other services; and
3.1.2 landlord's fixtures and fittings on any of the Business
Sellers' Leased Properties; and
3.1.3 tenant's and trade fixtures and fittings on any part of any
Business Seller's Property that is subject to any lease or
tenancy in favour of a third party;
but subject to the easements, rights, rent charges, covenants,
restrictions, leases, tenancies (including statutory tenancies),
licences, agreements, overriding interests (as defined in Section 70(1)
of the Land Registration Act 1925) or matters which would be overriding
interests if the title to the Business Sellers' Property were
registered and other matters affecting the same at the date of this
Agreement and as regards the Business Sellers' Properties mentioned in
Part 3 of this Schedule 14, the special conditions respectively
expressed therein to apply to them and the Business Sellers' Leased
Properties are sold subject also to the rents, covenants and
183
conditions reserved by or contained in the leases under which the same
are respectively held.
The Purchaser shall raise no requisitions nor make any objection in
respect of any of the above, save as may arise as a result of the
Purchaser's pre-completion searches.
3.2 The transfer of any Business Seller's Property (other than the Business
Sellers' Leased Property) to the Purchaser shall include the following
declaration:
"This Transfer is made with full title guarantee but the covenant set
out in Section 3(1) of the Law of Property (Miscellaneous Provisions)
Xxx 0000 (the "1994 ACT") does not extend to any charge (other than any
financial charge or mortgage), encumbrance or other right of which the
Transferor is unaware (whether or not the Transferor could reasonably
be expected to be aware of it) or which was created or imposed after
[the date of this Agreement] (other than by the Transferor)".
3.3 In the assignment of any Business Seller's Leased Property to the
Purchaser:
3.3.1 There shall be the following declaration:
"This Assignment is made with the full title guarantee but:
(i) the covenant set out in section 3(1) of the Law of
Property (Miscellaneous Provisions) Xxx 0000 (the "1994
ACT") does not extend to any charge (other than any
financial charge or mortgage), encumbrance or other
right of which the Assignor is unaware (whether or not
the Assignor could reasonably be expected to be aware
of it) or which was created or imposed after [the date
of this Agreement] (other than by the Assignor); and
(ii) the Assignor shall not be liable under any of the
implied covenants set out in Section 3 or Section 4 of
the 1994 Act for the consequences of any breach of the
lessee's covenants contained in or other terms of the
Lease relating to the state or condition of the
Property.
3.3.2 The Purchaser (as the assignee) will covenant with the relevant
Business Seller (as the assignor) as follows:
184
"The Assignee hereby covenants with the Assignor that the
Assignee and the Assignee's successors in title will henceforth
during the continuance of the term of the Lease pay the rents
reserved thereby and observe and perform the lessee's covenants
and the conditions contained therein and will indemnify the
Assignor and the successors in title of the Assignor from and
against all actions, proceedings, costs, claims, expenses and
liability for or on account of (i) any future breach,
non-observance or non-performance thereof and (ii) any past or
existing breach, non-observance or non-performance of any
covenants concerning the state or condition of the Property"
3.4 The Purchaser shall raise no objection if any lease or tenancy
agreement of any Business Seller's Leased Property shall be found to be
an underlease or sub-tenancy or if the covenants in any such lease or
tenancy agreement do not correspond with the covenants in any superior
lease or tenancy.
3.5 The Purchaser is deemed to buy with knowledge in all respects of the
authorised uses of the Business Seller's Properties for the purposes of
the enactments from time to time in force relating to town and country
planning.
3.6 Upon actual completion of the sale and purchase of the Business
Seller's Properties vacant possession will be given with the exception
of the premises comprised in the Erith Lease, the Prescot Leases, the
Prescot Social Club Leases, the Nottingham Leases and the Wrexham
Leases (all as defined in the Special Conditons of Sale and any
electricity substations on any Business Seller's Property.
3.7 In respect of those Business Sellers' Properties listed at paragraph 6
("Hebburn"), paragraph 7 ("Nottingham") and paragraph 8 ("Swansea") of
Part 2 of Schedule 14, the Vendor shall procure that Pyrotenax Limited
in the case of Hebburn, Fine Wires Limited in the case of the part of
Nottingham owned by it, and BICC Compontents Limited in the case of
Swansea, shall each transfer their respective legal interests in those
Business Sellers' Properties to the Purchaser with full title
guarantee.
3.8 Save as provided in paragraph 3.7 above or in the Special Conditions of
Sale, the Vendor shall transfer or convey the Business Sellers'
Properties with full title
185
guarantee and in respect of Hebburn, Nottingham and Swansea the Vendor
shall transfer or convey to the Purchaser the Vendor's beneficial
interests therein with full title guarantee.
3.9 In respect of those Business Sellers' Properties listed at paragraph 2
("Wrexham") and paragraph 5 ("Leigh") of Part 2 of Schedule 14, the
provisions of Annexure 2 and 3 (relating to works to be undertaken to
separate properties shall apply.
3.10 The Vendor and Purchaser shall not later than 15 working days after
completion of the works referred to in Annexures 2 and 3 enter into a
deed (or deeds) in a form to be agreed between the Vendor and Purchaser
(each acting reasonably) granting and reserving (save where the rights
are expressed to be temporary only) the rights set out or referred to
in Annexures 2 and 3.
3.11 The Vendor and the Purchaser shall act in good faith in the best
interests of a successful completion of the separation of Wrexham and
Leigh from the land retained by the Vendor and:
3.11.1 the Vendor and the Purchaser shall, and shall use all
reasonable endeavours to procure that any third party shall, do
and execute all other acts, deeds, documents and things as may
be necessary for giving effect to the provisions of Annexures 2
and 3; and
3.11.2 if the rights and agreements referred to in Annexures 2 and 3
are inadequate or insufficient to enable such separation the
Vendor and the Purchaser shall, and shall use all reasonable
endeavours to procure that any third party shall, enter into
such deeds or agreements to rectify such inadequacy or
insufficiency granting or reserving as applicable such
easements and rights as shall be reasonably necessary for the
separation and subsequent use and enjoyment of Wrexham and
Leigh and the land retained by the Vendor.
3.12 Any dispute between the Vendor and the Purchaser as to their respective
rights, duties and obligations in respect of the separation of Wrexham
and Leigh from the land retained by the Vendor shall, if required, be
referred to an independent expert (acting as an expert and not as an
arbitrator) to be agreed upon by the Vendor and
186
the Purchaser or if they fail to agree to be nominated by the President
or next most senior available officer of the Royal Institution of
Chartered Surveyors on the application of either party. The decision of
the expert (whether of fact or law) shall be final and binding on the
parties and shall be given without reasons. Any dispute or question
relating to the independent expert's terms of reference, whether of
fact or law, shall be in the exclusive jurisdiction of the independent
expert. The independent's expert's fees and expenses shall be paid by
the Vendor and the Purchaser in equal shares.
3.13 On Completion the Vendor shall pay to the Purcdhaser 50 per cent of the
stamp duty payable on the respective transfers of the Business Sellers'
Properties in England and Wales.
187
SCHEDULE 14
PART 2 - BUSINESS SELLERS' PROPERTIES
BUSINESS SELLERS' NON-LEASED PROPERTIES
0 Xxxxx Xxxxx, Xxxxxx Xxxxxxxx, Xxxxx, Xxxx as the same are shown for the
purposes of identification only edged red on the plan annexed hereto
and numbered 1 (ERITH)
0 Xxxxxxx Xxxx, Xxx Xxxx, Xxxxxxx Trading Estate, Clywd as the same is
shown for the purposes of identification only edged red on the plan
annexed hereto and numbered 2 (WREXHAM) (except for that part of
Wrexham shown for the purpose of identification only edged green on
plan 2 annexed and known as WREXHAM II)
0 Xxxxxxx Xxxxx, Xxxx Xxxx, Xxxxxxx, Xxxxxxxxxx as the same is shown for
the purposes of identification only edged red (save for the land shown
for the purposes of identification only edged blue on plan 3 annexed)
on the plan annexed hereto and numbered 3 (PRESCOT)
4 The Sports and Social Club off Warrington Road, Prescot, Lancashire as
the same is shown for the purposes of identification only edged red on
the plan annexed hereto and numbered 4 (PRESCOT SOCIAL CLUB)
0 Xxxxx Xxxxx, Xxxx Xxxxxxxxxxx Xxxxxx, Xxxxx, Xxxxxxxxxx as the same are
shown for the purposes of identification only edged red on the plan
annexed hereto and numbered 5 (LEIGH) (except for that part of Leigh
shown for the purposes of identification only edged green on plan 5
annexed and known as the BRAND XXX PREMISES)
0 Xxxxxxx Xxxxx, Xxxxxxxx Xxxx, Xxxxxxx, Xxxxxx as the same are shown for
the purposes of identification only edged red on the plans annexed
hereto and numbered 6 (HEBBURN)
0 Xxxxxxxx Xxxxxx, Xxxxxxxxx Xxxx, Xxxxxxxxxx registered at H.M. Land
Registry under the numbers NT289090, NT98172, NT78063, NT72820,
NT64705, NT59845, NT66997, NT65304, NT96593, NT80206 and NT72827
(NOTTINGHAM).
188
BUSINESS SELLERS' LEASED PROPERTIES
8 Suite 3, RVB House, Llys Felin Newydd, Phoenix Way, Enterprise Park,
Swansea ("SWANSEA") as the same is more fully described in and demised
by a lease dated 14 December 1998 made between RVB Investments Limited
(1) and BICC Components Limited (2) (the "SWANSEA LEASE").
189
SCHEDULE 14
PART 3
SPECIAL CONDITIONS RELATING TO THE BUSINESS SELLERS' PROPERTIES
SPECIAL CONDITIONS - ERITH
1 The title to Erith will commence with:
1.1 as to part a Conveyance dated 17 January 1902 and made between Xxxxxxx
Xxxxx Xxxxxxxx & Xxxxxx Xxxxxxx Xxxxxxx (1) and Callenders Cable &
Construction Company Limited (2)
1.2 as to part a Conveyance dated 29 February 1952 and made between Maypole
Estates Limited (1) Lever Brothers & Unilever Limited (2) The British
Oil and Cake Xxxxx Limited (3) and British Insulated Xxxxxxxxx'x Cables
Limited (4)
1.3 as to part a Deed of Exchange dated 21 July 1924 and made between Erith
Oil Works Limited (1) and Xxxxxxxxx'x Cable & Construction Company
Limited (2)
1.4 as to part a Conveyance dated 31 January 1898 and made between Messrs F
Parish & F Xxxxxxx (1) and Callenders Cable & Construction Company
Limited (2)
1.5 as to part a Conveyance dated 21 November 1924 and made between E G
Xxxxx (1) Xxxxxxxxx'x Cable & Construction Company Limited (2)
1.6 as to part a Conveyance dated 20 September 1917 and made between E G
Xxxxx & X X Xxxxx (1) and Xxxxxxxxx'x Cable & Construction Company
Limited (2)
1.7 as to part a Conveyance dated 2 December 1995 made between Unilever
Limited (1) and British Insulated Xxxxxxxxx'x Cables Limited (2)
1 Copies of the title documents having been produced to the Purchaser's
Lawyers prior to the date of this Agreement the Purchaser shall neither
make nor raise any objection or requisition regarding the title to
Erith save for any matter which arises as a result of the Purchaser's
pre-completion seaches.
2 In the transfer of Erith the Purchaser (as the Transferee) will
covenant with the Vendor (as Transferor) as follows:
190
"1. The Transferee with the object and intention of affording to
the Transferor a full and sufficient indemnity but not further
or otherwise hereby covenants with the Transferor that the
Transferee and the persons deriving title under the Transferee
will at all times hereafter observe and perform all covenants
restrictions stipulations agreements and conditions contained
or referred to in the documents set out below so far as they
relate to Erith and are subsisting and capable of being
enforced and taking effect and will keep the Transferor and the
successors in title of the Transferor indemnified from and
against all costs, claims, actions, proceedings, expenses and
liability whatsoever for or on account of any breach,
non-observance or non-performance thereof so far as aforesaid
Conveyance dated 4 August 1971 and made between British
Insulated Callenders Cables Limited (1) and Charrington Gardner
Locket (London) Limited (2)
Transfer dated 13 January 1972 made between British Callenders
Cables Limited (1) and Pioneer Concrete (Holdings) Limited (2)
Conveyance dated 9 July 1982 and made between BICC Public
Limited Company (1) and Xxxxx XxXxxxxxxx Paper Group Limited
(2)
Copy Letter dated 4 November 1983 from BICC plc to London
Borough of Bexley
Transfer dated 4 March 1988 made between BICC Public Limited
Company (1) and Western Motor Works Chislehurst Limited (2)
Deed of Covenants dated 10 May 1902 and made between Callenders
Cable & Construction Company Limited and (1) The British
Firelighter Company Limited (2)
Agreement dated 16 May 1903 and made between The Commissioners
of Sewers (1) and Callenders Cable & Construction Company
Limited (2)
Agreement dated 19 July 1905 and made between The Commissioners
of Sewers (1) and Xxxxxxxxx'x Cable & Construction Company
Limited (2)
Agreement dated 24 September 1923 and made between The Erith
Urban District Council (1) and Xxxxxxxxx'x Cable & Construction
Company Limited (2)
Agreement dated 13 December 1928 and made between The
Commissioners of Sewers (1) and Callenders Cable and
Construction Company Limited (2)
Agreement dated 27 July 1942 and made between Xxxx Xxxxxx
Catchment Board (1) and Xxxxxxxxx'x Cable & Construction
Company Limited (2)
Conveyance dated 20 December 1946 and made between Callenders
Cable & Construction Company Limited (in liquidation) (1)
Xxxxxx Xxxxxxx (2) and British Insulated Xxxxxxxxx'x Cables
Limited (3)
Conveyance dated 16 September 1958 and made between British
Insulated Xxxxxxxxx'x Cables Limited (1) and Kent River Board
(2)
Letter dated 8 December 1978 from London Electricity to British
Insulated Cables Limited
191
Deed of Easement dated 21 October 1986 made between BICC plc
(1) and Thames Water Authority (2)
Agreement dated 11 January 1963 made between Kent River Board
(1) and BICC Limited (2)
Conveyance dated 2 December 1913 made between Xxx Xxxxx
Xxxxxxxxx (1) Erith Oil Works, Limited (2)
Licence dated 22 May 1973 and made between Unilever Limited (1)
and British Insulated Xxxxxxxxx'x Cables Limited (2)"
"2. The Transferee hereby covenants with the Transferor that the
Transferee and the Transferee's successors in title will
henceforth during the continuance of the term of the lease
("the Erith Lease") dated 8 July 1971 made between British
Insulated Xxxxxxxxx'x Cables Limited (1) and the Mayor Aldermen
and Burgesses of the London Borough of Bexley (2) observe and
perform the landlord's obligations contained in or arising
under the Erith Lease and will indemnify the Transferor and the
successors in title of the Transferor from and against all
actions, proceedings, costs, claims, expenses and liability in
respect of the same"
3 The Vendor is unable to locate any title documents to the land coloured
green and coloured blue hatched black on the plan annexed hereto and
marked "ESC" and the Purchaser shall raise no requisition nor make any
objection with regard thereto. The Vendor will hand over to the
Purchaser on completion the Statutory Declaration made by Xxxxxx Xxxx
Xxxx on 9 February 1999 relating to the Vendor's title to such land
4 In respect of those parts of Erith title to which is registered at HM
Land Registry under title numbers SGL162761 and SGL579129 the
registered proprietor of the land within each title is Balfour Xxxxxx
Limited. By a transfer dated 15th February 1999 Balfour Xxxxxx Limited
transferred the land within title numbers SGL162761 and SGL 579129 to
the Vendor (the "TRANSFER"). In respect of the Transfer the Vendor
shall:
(a) procure that the Transfer is presented forthwith to the Inland
Revenue and properly stamped either with ad valorem duty or
marked to indicate the Transfer is exempt from such duty; and
(b) forthwith following satisfaction of the obligation set out in
paragraph 5(a) above deliver the Transfer to Croydon District
Land Registry (Ref. SGL162761/D/222) and advise the Purchaser's
Lawyers accordingly;
192
(c) promptly and fully satisfy all requisitions raised by HM Land
Registry in connection with the registration of the Transfer at
HM Land Registry and copy all correspondence relating thereto
to the Purchaser's Lawyers.
5
(a) As soon as reasonably practicable after Completion the Vendor
will give notice to terminate an agreement dated 9th July 1982
between BICC Public Limited Company (1) and Xxxxx XxXxxxxxxx
Paper Group Limited (2) ("the XxXxxxxxxx Agreement") in
accordance with the provisions thereof and the Vendor will
provide to the Purchaser
a copy of such notice.
(b) As from the Completion Date the Purchaser will perform all the
obligations on the part of the Vendor contained in the
XxXxxxxxxx Agreement until the XxXxxxxxxx Agreement terminates
and will fully and effectively indemnify and at all times keep
the Vendor indemnified against all claims demands actions costs
expenses and liabilities under the XxXxxxxxxx Agreement in
respect of the period commencing on the Completion Date.
(c) The Vendor will demand all sums properly receivable for the
services provided under the XxXxxxxxxx Agreement until the
XxXxxxxxxx Agreement terminates and the Vendor will upon
receipt pay such sums to the Purchaser.
(d) If Xxxxx XxXxxxxxxx Paper Group Limited default in paying any
sums owing under the XxXxxxxxxx Agreement to the Vendor, the
Vendor will take all reasonable steps to enforce the payment
obligation of Xxxxx XxXxxxxxxx Paper Group Limited at the cost
of the Vendor.
193
BUSINESS SELLERS' SPECIAL CONDITION
PROPERTY AFFECTED
PRESCOT 1. As to the unregistered freehold land title will
commence with: as to part an Indenture made the 16
September 1925 between Xxxxxx Xxxxxx (1) and The British
Insulated and Helsby Cables Limited (2)
as to part an Indenture made the 31 December 1924 between
Xxxxxxxx Xxxx and his mortgagee (1) and British Insulated
Cables Limited (2)
as to part a Conveyance made 27 November 1928 between
Xxxxxxxxx Xxxxxxx (1) and British Insulated Cables Limited
(2)
as to part a Conveyance made the 1st August 1935 between
Xxxxxxx Xxxxxxx Xxxxxx (1) and British Insulated Cables
Limited (2)
as to part a Conveyance made 30 January 1942 between
Messrs W A Cross and W Xxxxxxx (1) and British Insulated
Xxxxxxxxx'x Cables Limited (2)
as to part a Conveyance made 30 January 1942 between
Xxxxxxx Xxxx (1) Xxxxxxx Xxxxxxxx (1) and British
Insulated Cables Limited (3)
as to part a Conveyance made 30 January 1942 between
Xxxxxxxxx Xxxx Xxxxxxxxx-Xxxxx and others (1) Xxxxxx
Xxxxxx (2) and British Insulated Cables Limited (3)
as to part a Conveyance made the 22 March 1974 between
Prescot Urban District Council (1) and British Insulated
Xxxxxxxxx'x Cables Limited (2)
194
BUSINESS SELLERS' SPECIAL CONDITION
PROPERTY AFFECTED
as to part a Conveyance made the 22 March 1974 between
Prescot Urban District Council (1) and British Insulated
Xxxxxxxxx'x Cables Limited (2)
as to part a Deed of Exchange made 20 January 1944 between
the Prescot Urban District Council (1) and British
Insulated Cables Limited (2)
as to part a Conveyance made 18 October 1943 between
Xxxxxxx Xxxx (1) and British Insulated Cables Limited (2)
as to the remainder ("xxx Xxxxx Xxxx") a Statutory
Declaration dated 25 March 1971 by Xxxxx Xxxxxx
2. Title to the freehold land comprised in title number
MS85907 will be deduced in accordance with Section 110 of
the Land Registration Xxx 0000
3. The Vendor is unable to locate any title documents
to the Green Land other than the Statutory Declaration of
Xxxxx Xxxxxx referred to above and the Purchaser shall
raise no requisition nor make any objection with regard
thereto. The Vendor will hand over to the Purchaser on
completion Statutory Declaration in agreed terms made by
Xxxxxx Xxxxxx Xxxxxxx on 31 March 1999 relating to the
Vendor's title to the Green Land and to the boundaries of
the whole of Prescot.
4. As respects the Green Land the Vendor agrees to
transfer its estate right and interest in the Green Land
and shall be expressed to transfer the same with no title
guarantee.
5. Copies of the title documents (save as mentioned in
paragraph 3 above) having been produced to the Purchaser's
Lawyers prior to the date of this Agreement the Purchaser
shall neither make nor raise any objection or requisition
regarding title to Prescot save for any matter which
arises as a result of the Purchaser's pre-completion
searches.
6. In the transfer of Prescot the Purchaser (as the
Transferee) shall enter into the following covenants with
the Vendor (as the Transferor):
"The Transferee with the object and intention of affording
to the
195
BUSINESS SELLERS' SPECIAL CONDITION
PROPERTY AFFECTED
Transferor a full and sufficient indemnity but not further
or otherwise HEREBY COVENANTS with the Transferor that the
Transferee and the persons deriving title under the
Transferee will at all times hereafter observe and perform
the covenants, restrictions, stipulations, agreements and
conditions contained or referred to in the documents set
out below so far as they relate to [Prescot] and are
subsisting and capable of being enforced and taking effect
and will keep the Transferor and the successors in title
of the Transferor indemnified from and against all costs,
claims, actions, proceedings, expenses and liability
whatsoever for or on account of any breach, non-observance
or non-performance thereof:
Agreement made 10 September 1942 between the Prescot Urban
District Council (1) and British Insulated Cables Limited
(2);
Deed of Grant made 3 August 1972 between British Insulated
Xxxxxxxxx'x Cables Limited (1) and The Lord Mayor Aldermen
and Citizens of the City of Liverpool (2);
Agreement made 1 April 1998 between Richwalk Properties
Limited (1) and the Vendor (2);
Services Agreement made 1 April 1998 between Richwalk
Properties Limited (1) and the Vendor (2)"
7. Prescot is sold subject to and with the benefit of
the tenancies and licences ("the Prescot Leases") short
particulars of which are set out below:
09.06.1989 The Vendor(1) 75 years from
The Merseyside 09.06.1989
and North Wales
Electricity
Board (2)
[23.11.1989] The Vendor(1)
British Gas (2)
02.01.1997 BICC Cables 12 months from
Limited (1) 1 January 1997
MVM Construction
196
BUSINESS SELLERS' SPECIAL CONDITION
PROPERTY AFFECTED
and Building
Services (2)
and in the transfer of Prescot the Purchaser (as the
Transferee) will covenant with the Vendor (as the
Transferor) as follows:
"The Transferee HEREBY COVENANTS with the Transferor that
the Transferee and the Transferee's successors in title
will henceforth during the continuance of the terms of
[the Prescot Leases] observe and perform the landlord's
obligations contained in or otherwise arising under [the
Prescot Leases] and will indemnify the Transferor and the
successors in title of the Transferor from and against all
actions, proceedings, costs, claims, expenses and
liability in respect of the same"
8. On or before Completion the Vendor will procure the
surrender by BICC Rod & Wire Limited ("R&WL") of the
lease (the "LEASE") by operation of law of part of
Prescot dated 6th January 1981 made between (1) the
Vendor and (2) R&WL (then known as Prescot Rod Rollers
Limited) (as the same is registered at HM Land Registry
under title number MS151817) and at Completion will
deliver to the Purchaser: (a) The orginal Lease and any
documents made supplemental thereto;
(b) A properly completed and dated deed of release
executed by R&WL containing a release of the lessor under
the terms of the Lease from its covenants and obligations
contained in the Lease;
(c) The land certificate relating to title MS151817;
(d) Vacant possession of the premises which are the
subject of the Lease
9. At Completion the Vendor will enter into a deed of
assignment in such form as the parties shall agree with
the Purchaser pursuant to which it will assign to the
Purchaser the benefit of an agreement dated 1st April 1998
between (1) Richwalk Properties Limited and (2) the Vendor
and which creates a right of pre-emption over land
adjoining Prescot in favour of the Vendor.
10. The Vendor is unable to locate the lease which is
believed to be dated 23rd November 1989 and made between
the Vendor (1) and British Gas (2) and the Purchaser shall
raise no requisition
197
BUSINESS SELLERS' SPECIAL CONDITION
PROPERTY AFFECTED
nor make any objection with regard thereto.
PRESCOT SOCIAL CLUB 1. As to the unregistered freehold land title will
commence with:
as to part an Indenture made 12th July 1916 between
Prescot & Helsby Estates Limited (1) and The British
Insulated and Helsby Cables Limited (2)
as to the remainder an Indenture made 16th June 1927
between Prescot and Helsby Estates Limited (1) and The
British Insulated Cables Limited (2)
2. Copies of the title documents having been produced
to the Purchaser's Lawyers prior to the date of this
Agreement the Purchaser shall neither make nor raise any
objection or requisition regarding title to Prescot Social
Club save for any matter which arises as a result of the
Purchaser's pre-completion searches.
3. In the transfer of the Prescot Social Club the
Purchaser (as the Transferee) shall enter into the
following covenant with the Vendor (as the Transferor):
"The Transferee with the object and intention of affording
to the Transferor a full and sufficient indemnity but not
further or otherwise HEREBY COVENANTS with the Transferor
that the Transferee and the persons deriving title under
the Transferee will at all times hereafter observe and
perform the obligations on the part of the licensee
contained in two Agreements made 16 February 1972 and 17
March 1972 between The British Railways Board (1) and
British Insulated Xxxxxxxxx'x Cables Limited (2) so far as
they are subsisting and capable of being enforced and
taking effect and will keep the Transferor and the
successors in title of the Transferor indemnified from and
against all costs, claims, actions, proceedings, expenses
and liability whatsoever for or on account of any breach
non-observance or non-performance thereof"
4. Prescot Social Club is sold subject to and with the
benefit of a residential tenancy in favour of Xxxxxx
Xxxxxx relating to 000 Xxxxxxxxxx Xxxx Xxxxxxx (which
forms part of Prescot Social Club) and of the lease short
particulars of which are set out below ("the
198
BUSINESS SELLERS' SPECIAL CONDITION
PROPERTY AFFECTED
Prescot Social Club Leases"):
DATE PARTIES TERM
06.04.1983 The Vendor (1) 125 years from
Metropolitan 25 March 1983
Borough of
Knowsley (2)
and in the transfer of Prescot Social Club the Purchaser
(as the Transferee) will covenant with the Vendor (as the
Transferor) as follows:
"The Transferee HEREBY COVENANTS with the Transferor that
the Transferee and the Transferee's successors in title
will henceforth during the continuance of the terms of
[the Prescot Social Club Leases] observe and perform the
landlord's obligations contained in or otherwise arising
under [the Prescot Social Club Leases] and will indemnify
the Transferor and the successors in title of the
Transferor from and against all actions, proceedings,
costs, claims, expenses and liability in respect of the
same"
HEBBURN 1. The title to Hebburn will commence with:
as to part a Conveyance made 24 July 1964 between the
Xxxx-Xxxxxxx Hebburn Estates Limited (1) and Pyrotenax
Limited (2)
as to part a Conveyance made 15 November 1967 between the
Urban District Council of Hebburn (1) and Pyrotenax
Limited (2)
as to part a Conveyance made 16 April 1971 between The
North Eastern Housing Association Limited (1) The Public
Works Loan Commissioners (2) The Minister of Housing and
Local Government (3) The Urban District Council of Hebburn
(4) and Pyrotenax Limited (5)
as to part a Conveyance made 2 September 1971 between
Xxxxxx Xxxx Bitumastic Limited
(1) Lloyds Bank Limited (2) and Pyrotenax Limited (3)
as to part a Conveyance made 9 August 1972 between Xxxxxx
Xxxx Bitumastic Limited (1) Lloyds Bank Limited (2) and
Pyrotenax Limited (3)
as to the remainder a Conveyance made 23 August 1962
between
199
Xxxxxx Xxxx Bitumastic Limited (1) and Pyrotenax Limited
(2)
2. Copies of the title documents having been produced
to the Purchaser's Lawyers prior to the date of this
Agreement the Purchaser shall neither make nor raise any
objection or requisition regarding the title to Hebburn.
3. In the transfer of Hebburn the Purchaser (as the
Transferee) will covenant with the relevant Business
Seller (as the Transferor) as follows:
"The Transferee with the object and intention of affording
to the Transferor a full and sufficient indemnity but not
further or otherwise hereby covenants with the Transferor
that the Transferee and the persons deriving title under
the Transferee will at all times hereafter observe and
perform the covenants restrictions stipulations agreements
and conditions contained or referred to in the documents
set out below so far as they relate to Hebburn and are
subsisting and capable of being enforced and taking effect
and will keep the Transferor and the successors in title
of the Transferor indemnified from and against all costs,
claims, actions, proceedings, expenses and liability
whatsoever for or on account of any breach, non-observance
or non-performance thereof so far as aforesaid:
- the covenants contained in a Conveyance made 24
July 1964 between the Xxxx-Xxxxxxx Hebburn Estates
Limited (1) and Pyrotenax Limited (2)
- the covenants on the part of the vendor contained
in a Conveyance made 29 August 1991 between
Pyrotenax Limited (1) and Xxxxxxx Newcastle
Limited (2)
- the covenants contained in a Conveyance made 15
November 1967 between The Urban District Council
of Hebburn (1) and Pyrotenax Limited (2)
- the provisions of an Agreement made 8 February
1957 between The British Transport Commission (1)
and the Hebburn Urban District Council (2)
- the covenants and provisions referred to in a
Conveyance made 14 April 1920 between Xxxxx Xxxxx
Xxxx-Xxxxxxx (1) Xxxxx Xxxxxxx Xxxxxx and Anor (2)
and The Urban District Council of Hebburn (3)
insofar as they were not released by a Deed made
15 November 1967 between Xxxx Xxxxxxxx
Xxxx-Xxxxxxx and Others (1) and Pyrotenax Limited
(2)
200
- the covenants and conditions contained in a
Conveyance made 14 January 1938 between The Urban
District Council of Hebburn (1) and the North
Eastern Housing Association Limited (2)
- the covenant on the part of the purchaser
contained in a Conveyance made 16 April 1971
between The North Eastern Housing Association
Limited (1) The Public Works Loan Commissioners
(2) The Minister of Housing and Local Government
(3) The Urban District Council of Hebburn (4) and
Pyrotenax Limited (5)
- the covenants and other matters contained
mentioned or referred to in a Conveyance made 6
December 1926 between Xxxx Xxxxxxxx Xxxx-Xxxxxxx
(1) Xxxxx Xxxxxxx Xxxxxx and Anor (2) and Xxxxxx
Xxxx Bitumastic Limited (3)
- the covenants contained in a Conveyance made 2
September 1971 between Xxxxxx Xxxx Bitumastic
Limited (1) Lloyds Bank Limited (2) and Pyrotenax
Limited (3)
- the provisions of two Agreements made 24 October
1924 and 24 May 1925 between The London and North
Eastern Railway Company (1) and Xxxxxx Xxxx
Bitumastic Limited (2)
- the covenants contained in a Conveyance made 9
August 1972 between Xxxxxx Xxxx Bitumastic Limited
(1) Lloyds Bank Limited (2) and Pyrotenax Limited
(3) and
- the covenants on the part of the Purchaser
contained in a Conveyance made 23 August 1962
between Xxxxxx Xxxx Bitumastic Limited (1) and
Pyrotenax Limited (2)
4. The Vendor will hand over to the Purchaser on
Completion the Statutory Declaration made by Xxxxx Xxxxx
on 31 March 1999 relating to the relevant Business
Seller's title to Hebburn.
NOTTINGHAM 1. Title to Nottingham will be deduced in accordance
with section 110 of the Land Registration Xxx 0000.
2. Nottingham is sold subject to and with the benefit
of the tenancies and licences (the "Nottingham Leases")
short particulars of which are set out below:
Date Document Parties
201
02.02.1996 Agreement for use of Temco Limited(1)
land and
A.R. Bond(2)
08.11.1995 Lease of site of Fine Wires Limited(1)
electricity sub-station and
East Midlands
Electricity Plc(2)
22.06.1995 Lease of land for BICC Public Limited
display of Company(1)
advertisements and
Maiden Outdoor
Advertising Limited(2)
and in the transfer of Nottingham the Purchaser (as the
Transferee) will covenant with the relevant Business
Seller (as the Transferor) as follows:
"The Transferee hereby covenants with the Transferor that
the Transferee and the Transferee's successors in title
will henceforth during the continuance of the terms of
["the Nottingham Leases"] observe and perform the
landlord's obligations contained in or otherwise arising
under ["the Nottingham Leases"] and will indemnify the
Transferor and the successors in title of the Transferor
from and against all actions, proceedings, costs, claims,
expenses and liability in respect of the same".
3. In the transfer of Nottingham the Purchaser (as the
Transferee) will covenant with the relevant Business
Seller (as the Transferor) as follows:
"The Transferee with the object and intention of
affording to the Transferor a full and sufficient
indemnity but not further or otherwise hereby covenants
with the Transferor that the Transferee and the persons
deriving title under the Transferee will at all times
hereafter observe and perform the covenants contained or
referred to in the Charges Registers of the title numbers
NT98172, NT78063, NT72820, NT64705, NT59845, NT66997,
NT65304, NT96593, NT80206 and NT72827 so far as they are
still subsisting and capable of being enforced and taking
effect and will keep the Transferor indemnified from and
against all costs, claims, actions, proceedings, expenses
and liability whatsoever for or on account of any breach
non-observance or non-performance thereof so far as
aforesaid".
4. The Vendor cannot produce the original or a copy or
an abstract of the Conveyances dated 5 February 1885, 5
February 1895 and 7 October 1919 referred to in the
Charges Registers of
202
title numbers NT80206 and NT78063 and the Purchaser shall
not make or raise any objection or requisition with regard
to the loss or non-production thereof.
SWANSEA Title to Swansea will consist of:
Sub-Underlease dated 14 December 1998 and made between (1)
R.V.B Investments Limited and (2) BICC Components Limited
Schedule of Condition prepared by Xxxxxxxx & Xxxxxxx in
November 1998
Underlease dated 21 February 1990 and made between (1)
Sylfaen Construction Limited and (2) R.V.B Investments
Limited
Lease dated 21 February 1990 and made between (1) The
Council of the City of Swansea and (2) Sylfaen
Construction Limited
A copy of each of the above documents having been produced
to the Purchaser's Lawyers prior to the date of this
Agreement the Purchaser shall neither make nor raise any
objection or requisition regarding the title to Swansea.
LEIGH 1 As to the unregistered land title will commence with:
as to part a Conveyance and Assignment dated 1 September
1952 and made between The Anchor Cable Company Limited (1)
and British Insulated Xxxxxxxxx'x Cables Limited (2)
as to part a Conveyance dated 23 October 1961 and made
between The Mayor Xxxxxxxx and Burgesses of the Borough of
Leigh (1) British Insulated Xxxxxxxxx'x Cables Limited (2)
as to part a Conveyance dated 24 June 1964 and made
between XxXxxxxx Bros Limited (1) British Insulated
Xxxxxxxxx'x Cables Limited (2)
as to part a Conveyance dated 14 December 1972 and made
between British Railways Board (1) and British Insulated
Xxxxxxxxx'x Cables Limited (2)
as to part a Statutory Declaration made by Geoffey Xxxxxx
Xxxxxxxx on 31 March 1999
2 Title to the freehold land comprised in title number
GM554320 which will be deduced in accordance with Section
110 of Land Registration Xxx 0000
3 Copies of the title documents having been produced to
the Purchaser's Lawyers prior to the date of this
Agreement the Purchaser shall neither make nor raise any
objection or requisition regarding the title to Leigh
4 The Vendor is unable to locate any title documents to
the land coloured xxxxx on the plan annexed to the
Statutory Declaration
203
made by Xxxxxxxx Xxxxxx Xxxxxxxx on 31 March 1999 ("the
Statutory Declaration") relating to the Vendor's title to
Leigh and the Purchaser shall raise no requisition nor
make any objection with regard thereto. The Vendor will
hand over to the Purchaser on completion the Statutory
Declaration
5 The Vendor is selling that half of the road shaded
blue and hatched green on plan 1 attached to the Statutory
Declaration bordering the land comprised in title number
GM 648967 with limited title guarantee
6 In the transfer of Leigh the Purchaser (as the
Transferee) shall enter into the following covenant with
the Vendor (as the Transferor):
"The Transferee with the object and intention of affording
to the Transferor a full and sufficient indemnity but not
further or otherwise HEREBY COVENANTS with the Transferor
that the Transferee and the persons deriving title under
the Transferee will at all times hereafter observe and
perform the covenants, restrictions, stipulations,
agreements and conditions contained or referred to in the
documents set out below so far as they relate to Leigh and
are subsisting and capable of being enforced and taking
effect and will keep the Transferor and the successors in
title of the Transferor indemnified from and against all
costs, claims, actions, proceedings, expenses and
liability whatsoever for or on account of any breach,
non-observance or non-performance thereof so far as
aforesaid:
Conveyance and Assignment dated 1 September 1952 between The Anchor Cable
Company Limited (1) and British Insulated Xxxxxxxxx'x Cables Limited (2).
Conveyance dated 9 November 1901 between the Trustees of the Will of the late
Duke of Bridgewater (1) and The Anchor Cable Company Limited (2) insofar as they
were not released by a Deed of Release dated 8th April 1993 between Starcrest
Developments Limited (1) and BICC Plc (2).
Agreement dated 6 October 1939 between X.X. Xxxxxxxx & others (1) and The Anchor
Cable Company Limited (2)
With the exception of Clause 4(a) the Conveyance and Assignment dated 18 July
1988 between BICC Plc (1) and Xx. X. Xxxxxxx (2)
Clauses 12.3 and 12.4 of the Agreement dated 6 January 1993 between BICC Plc (1)
and Cumbria Leisure Limited (2)
Option Agreement dated 13 July 1993 between Wapping Leisure Limited (1) and BICC
PLC (2).
Sterilization Agreement dated 15 November 1955 between The National Coal Board
(1) and British Insulated Xxxxxxxxx'x Cables Limited (2).
204
Supplemental Deed to Sterilization Agreement dated 4 September 1984 between BICC
PLC (1) and the National Coal Board (2).
Deed of Grant dated 30 November 1957 between The Manchester Ship Canal Company
(1) and British Insulated Xxxxxxxxx'x Cables Limited (2)
Agreement dated 20 July 1960 between The Manchester Ship Canal Company (1) and
British Insulated Xxxxxxxxx'x Cables Limited (2)
Agreement dated 22 January 1975 between The Manchester Ship Canal Company (1)
and British Insulated Xxxxxxxxx'x Cables Limited (2)
Licence to Abstract Water dated 21 January 1966 between Mersey and Xxxxxx River
Authority (1) and British Insulated Callendar's Cables Limited (2)
Electricity Agreement dated 28 August 1957 between The North Western Electricity
Board (1) and British Insulated Xxxxxxxxx'x Cables Limited (2)
Agreement dated 12 December 1896 between The Trustees under the Will of Xxxxxxx
Xxxx of Bridgewater (1) The Right Honourable Xxxxxxx Xxxxxxx Xxxxxxxxx Xxxxxxx
Xxxx of Ellesmere (2) and Xxxxx Xxxxxxxx Joint Sewerage Authority (3).
Deed of Grant dated 30 May 1899 between The Trustees under the Will of Xxxxxxx
Xxxx of Bridgewater (1) The Right Honourable Xxxxxxx Xxxxxxxxx Xxxxxxx Xxxx of
Ellesmere (2) and Urban District Council of Leigh (3).
Deed of Grant dated 15 March 1916 between Xxxx Xxxxxxx Granville Scrope Fourth
Xxxx of Ellesmere (1) and Xxxxxx Xxxxxx Xxxxxx (2).
Conveyance dated 28 July 1922 between Xxxx Xxxxxxx Granville Scrope Fourth Xxxx
of Ellesmere (1) and Xxxxxx Xxxxx Xxxxxxxxx Xxxxxxx (The Ellesmere Settlement
Trustees) (2) and Leigh Football Club Ltd.(3).
Conveyance dated 9 May 1925 between The Leigh Football Club Limited (1) Xxxxxxx
Xxxx (2) and The Anchor Cable Company Limited (3).
Agreement dated 21 February 1861 between The London & North Western Railway Co.
(1) The Trustees of the Will of Xxxxxxx late Duke of Bridgewater (2) and The
Right Honourable Xxxxxx Xxxxxxxxx Xxxxxxx Xxxx of Ellesmere (3).
Conveyance dated 31 December 1925 between Bridgewater Estates Limited (1) The
Trustees of the Debenture Stockholders (2) and The Anchor Cable Company Limited
(3).
Conveyance dated 5 October 1901 between The Trustees of the Will of the Duke of
Bridgewater (1) Xxxx of Ellesmere (2) and Xxxxxxxxx Xxxxxxxxxx XxXxxxxx and
Xxxxxxx XxXxxxxx (3) insofar as they were not released by a Deed of Release
between Starcrest Developments Limited (1) and BICC Plc (2).
Conveyance dated 28 October 1902 between Xxxxxxxxx XxXxxxxx and Xxxxxxx XxXxxxxx
(1) and XxXxxxxx Bros. Limited (2).
Conveyance dated 17 November 1926 between XxXxxxxx Bros. Limited (1) and The
Anchor Cable Company Limited (2).
Conveyance dated 22 October 1940 between Xxxxxx Xxxx & Company Limited (1) and
The Anchor Cable Company Limited (2).
205
Conveyance dated 19 December 1924 between The Leigh Football Club Limited (1)
Xxxxxx Xxxx and Company Limited (2) and The Mayor Aldermen and Burgesses of the
Borough of Leigh (3).
Conveyance dated 23 October 1961 between The Mayor Aldermen and Burgesses of the
Borough of Leigh (1) and British Insulated Xxxxxxxxx'x Cables Limited (2).
Conveyance dated 24 June 1964 between XxXxxxxx Bros. Limited (1) and British
Insulated Xxxxxxxxx'x Cables Limited (2).
Conveyance dated 31 December 1863 between The Right Honourable Xxxxxx Xxxx Ebury
and others (1) Xxxxxx Xxx (2) and the London and North Western Railway Company
(3).
Conveyance dated 14 December 1972 between British Railways Board (1) and British
Insulated Xxxxxxxxx'x Cables Limited (2).
Transfer dated 22 December 1998 between BICC PLC (1) and Xxxx Xxxxx Xxxx and
Xxxx Xxxx Xxxxxx (2)
The matters referred to in the Charges Register for Title Number GM554320 (if
applicable)
6. The Vendor shall indemnify the Purchaser against any loss suffered by
the Purchaser as a result of any payments properly made by the
Purchaser in respect of moneys due to Xx X. Xxxxxxx pursuant to the
Conveyance and Assignment dated 18 July 1988 referred to above.
7. The Vendor cannot produce the original or a copy or an abstract of
7.1 the following Conveyances and Agreements noted on the
Conveyance and Assignment dated 1 September 1952 between The
Anchor Cable Company Limited (1) and British Insulated
Xxxxxxxxx'x Cables Limited (2):
Agreement dated 21 July 1971 between British Insulated
Xxxxxxxxx'x Cables Limited (1) and The Mayor Xxxxxxxx &
Burgesses of the Borough of Leigh (2).
Agreement dated 12 February 1973 between Bridgewater Estates
Limited (1) BICC Limited (2) and The Mayor Xxxxxxxx & Burgesses
of the Borough of Leigh (3).
Transfer dated 15 November 1976 between BICC Limited (1) and
Carndale Property Company Limited (2).
Assignment dated 19 August 1983 between BICC plc (1) and
Carndale Property Limited (2).
Transfer dated 19 August 1983 made between BICC plc (1) and J&D
J Parnall (2).
206
Assignment dated 7 May 1984 between BICC plc (1) and JJ and XX
Xxxxxx (2).
Assignment dated 19 August 1983 made between BICC plc (1) and
Hightown Homes Limited (2).
Transfer dated 6 September 1983 made between BICC plc (1) and
The Greater Manchester County Council (2).
Conveyance dated 15 November 1985 and made between BICC plc (1)
and Xxxxxx Xxxxxxxx and Xxxxxxx Xxxxxxx Xxxxx (2).
7.2 such other Conveyances and Assignments and Transfers which may
have been entered into for the disposal of land formerly
forming part of Leigh
and the Purchaser shall neither make nor raise any objection
or requisition with regard to the loss or non production
thereof.
8. Leigh is sold subject to and with the benefit of the provisions of
Annexure o which will take effect from Completion.
WREXHAM 1 As to the unregistered land title will commence
with: as to part a Conveyance dated 19 November
1966 and made between Xxxxxxx Xxxxxx (1) and
British Insulated Xxxxxxxxx'x Cables Limited (2)
as to the remainder a Conveyance dated 19 November
1966 and made between Xxxxxxx Xxxxx Xxxxxxx (1)
and British Insulated Xxxxxxxxx'x Cables Limited
(2).
2 Title to the freehold land comprised in title
number WA4134 will be deduced in accordance with
Section 110 of Land Registration Xxx 0000
3 Copies of the title documents having been produced
to the Purchaser's Lawyers prior to the date of
this Agreement the Purchaser shall neither make
nor raise any objection or requisition regarding
the title to Wrexham
4 In the transfer of Wrexham the Purchaser (as the
Transferee) shall enter into the following
covenant with the Vendor (as the Transferor):
"The Transferee with the object and intention of
affording to the Transferor a full and sufficient
indemnity but not further or otherwise HEREBY
COVENANTS with the Transferor that the Transferee
and the persons deriving title under the
Transferee will at all times hereafter observe and
perform the covenants, restrictions, stipulations,
agreements and conditions contained or referred to
in the documents set out below so far as they
relate to Wrexham and are subsisting and capable
of being
207
enforced and taking effect and will keep the
Transferor and the successors in title of the
Transferor indemnified from and against all costs,
claims, actions, proceedings, expenses and
liability whatsoever for or on account of any
breach, non-observance or non-performance thereof
so far as aforesaid:
A Conveyance dated 30 January 1959 made between The Minister of Agriculture
Fisheries and Food and another (1) and Xxxxxxx Xxxxxx (2).
Deed of Exchange dated 12 November 1986 made between Xxx Xxxxxx and Xxxxxxx Xxx
Xxxxxx (1) Abbey National Building Society (2) and BICC plc (3).
Conveyance dated 29 March 1960 made between The Minister of Agriculture
Fisheries and Food (1) and Xxxxxxx Xxxxx Xxxxxxx (2).
Conveyance dated 31 October 1962 made between Xxxxxxx Xxxxx (1) and Xxxxxxx
Xxxxx Xxxxxxx (2).
Conveyance dated 2 June 1964 made between The Minister of Agriculture Fisheries
and Food (1) and Xxxxxxx Xxxxx Xxxxxxx (2).
Conveyance dated 10 October 1966 made between Xxxxxxx Xxxxxx (1) and Xxxxxxx
Xxxxx Xxxxxxx (2).
The Charges Register for Title Number WA4314
5 Wrexham is sold subject to and with the benefit of the oral tenancies
and licences ("the Wrexham Leases") in favour of the following
occupants:
5.1 PPAR Construction
5.2 Xxx Xxxxxx
5.3 BICC Athletic and Social Club and
5.4 Angling Club
6. The Vendor cannot produce the original or a copy or an abstract of
6.1 the following Conveyances noted on the Conveyance dated 19
November 1966 and made between Xxxxxxx Xxxxx Xxxxxxx (1) and
British Insulated Xxxxxxxxx'x Cables Limited (2):
Conveyance dated 31 October 1972 made between British
Insulated Xxxxxxxxx'x Cables Limited (1) and Xxxxxxx
Xxxxxxxx (2) and
Conveyance dated 20 August 1984 made between BICC Plc (1)
and Xxxxx Xxxxx Xxxxxxx and Xxxxx Xxxxxxx (2)
6.2 The Conveyance dated 19 November 1959 made between the Minister
of Agriculture Fisheries and Food (1) and Xxxxxxx Xxxxxx (2)
referred to in a Deed of Exchange dated 12 November 1986 made
between Xxx Xxxxxx and Xxxxxxx Xxx Xxxxxx (1) Abbey National
Building Society (2) and BICC Plc (2)
6 6.3 The Conveyance dated 25 March 1949 made between the Minister
of
208
Supply (1) and the Board of Trade (2)
6.4 The Conveyance dated 13 November 1970 made between Xxxx Xxxxx
Xxxxxx and Xxxxxx Xxxx (1) and Xxxxxxx Xxxxxxx Xxxxxxx and
Xxxxxxxx Xxxxxxxx Xxxxxxx (2)
6.5 The Conveyance dated 3 December 1979 made between Xxxxxxx
Xxxxxxx Xxxxxxx and Xxxxxxxx Xxxxxxxx Xxxxxxx (1) and Xxxxxxx
Xxxx Xxxxxx and Xxxxx Xxxx Xxxxxx(2)
6.6 The Deed dated 30 January 1951 made between the Board (1) and
Wrexham & East Denbighshire Water Company (2)
6.7 The Deed dated 9 April 1951 made between the Board (1) and
Wales Gas Board (2)
6.8 The Conveyance dated 12 May 1948 made between Right Xxxxxxxxx
Xxxxx Xxxxxx-Xxxxxx 5th Lord Xxxxxx Xxxxx of Credington (1) and
The Board (2)
6.9 The Deed of Grant dated 28 November 1949 made between The Board
(1) and Wrexham Rural District Council (2)
6.10 Licence dated 7 February 1950 made between The Board (1) and
Wrexham and East Denbighshire Water Company(2)
and the Purchaser shall not make or raise any objection or
requisition with regard to the loss or non-production
thereof.
7. The Vendor will hand over to the Purchaser on completion the Statutory
Declaration made by Xxxxxxx Xxxxxx Xxxxx on 1 April 1999 relating to
the Vendor's title to Wrexham.
8. Wrexham is sold subject to and with the benefit of the provisions of
Annexure o which will take effect as from the date of this Agreement.
209
SCHEDULE 15
LIST OF SELLERS' INTELLECTUAL PROPERTY
PART A PATENTS OWNED BY THE RELEVANT SELLERS TO BE TRANSFERRED TO
THE PURCHASER OR RELEVANT PURCHASER (AS THE CASE MAY BE)
TITLE COUNTRY STATUS PATENT APPLICATION TITLE HOLDER OF RECORD IF
NUMBER NUMBER NOT BICC PLC OR
RELEVANT SELLER
Skin modification NZ Granted 235875 235875
Char stabiliser tape US Granted 5310964 07/917316
Irradiated Xxxxxxxxx XX Xxxxxxx 0000000
XX Granted 56679192 08/398517
Lead-Free with Xx XX Xxxxxxx 000000
XX Pending GB96/01252
US Pending 08/945825
PE Pending 00403
Oxygen Dipole Additive CA Pending 2259349
WO Pending 98/21278
Preformed-slug barrier CA Granted 1122129 341740
US Granted 4301325 103628
Labyrinth flame barrier CA Granted 1149036 357769
Multiturn trefoil cleat (base) CA Granted 1161624 383712
DE Granted 3174460 81303648
EP Granted 0048086 81303648
ES Granted 260001 260001
ES Granted 263279 263279
ES Granted 263280 263280
FR Granted 0048086 81303648
GB Granted 2082242 8124453
HK Granted 793/84
IT Granted 0048086 81303648
MY Granted 687/1985
NL Granted 0048086 81303648
SE Granted 0048086 81303648
SG Granted 461/84 8490461-4
US Granted 4397436 291779
Sabah Xxxxxxx 000/0000
Xxxxxxx Xxxxxxx X0000
XX Granted 81/5493 815493
210
TITLE COUNTRY STATUS PATENT APPLICATION TITLE HOLDER OF RECORD IF
NUMBER NUMBER NOT BICC PLC OR
RELEVANT SELLER
Multiturn trefoil cleat - strap AT Granted E16631 81303647
tensioner
CA Granted 1147932 383713
CH Granted 0047075 81303647
211
TITLE COUNTRY STATUS PATENT APPLICATION TITLE HOLDER OF RECORD IF
NUMBER NUMBER NOT BICC PLC OR RELEVANT
SELLER
Multiturn trefoil cleat - strap DE Granted 3172984 81303647
tensioner
(Continued) DK Granted 151832 813604
EP Granted 0047075 81303647
ES Granted 260002 260002
FR Granted 0047075 81303647
GB Granted 2081802 8124452
HK Granted 148/85
IT Granted 0047075 81303647
MY Granted 1125/1985
NL Granted 0047075 81303647
NO Granted 159414 812734
SE Granted 0047075 81303647
SG Granted 884/84
Sabah Xxxxxxx 00/00
Xxxxxxx Xxxxxxx X 0000
XX Granted 81/5492 815492
Variable xxxx clamp - sub- CA Granted 1159036 384619
assembly
Spider washer CA Granted 1079029 403544
GB Granted 0093524 83302094
US Granted 4515991 06/482144
Cable tie clip GB Granted 2140858 8411276
NO Granted 158553 841762
Optional-claw cleat DE Granted 9105112 9105112
GB Granted 2244087 9109104
HK Granted 94420
BL Cleat CA Pending 2162389
GB Granted 2292180 9522278
Thickened Shroud Seal US Pending 08/867812
ZA Granted 9510312 9510312
Sheath Xxxxxx Termination GB Granted 2300765 9509667
Snap Gland GB Pending 9904480
Inside Entry Gland GB Published 9801998
Sealed Xxxxxx Connector GB Pending 9902956
212
TITLE COUNTRY STATUS PATENT APPLICATION TITLE HOLDER OF RECORD IF
NUMBER NUMBER NOT BICC PLC OR RELEVANT
SELLER
Helical Earth Bond GB Pending 9624610 Rights jointly owned by
Preformed Line Products
Ltd & BICC plc
Compressed Xxxxxx GB Pending 9624609 Rights jointly owned by
Connector Preformed Line Products
Ltd & BICC plc
Flameproof locking ring CA Granted 1184986 412177
Modular boot GB Granted 2265501 9306276
Groovy Wiring Cable GB Granted 2275816 9403946
HK Granted 326/1997
Tear Off Reel GB Pending 9821266.5
Pressline End Cleat GB Granted 1019819 1019819
Sleeved rubber moulding GB Granted 2249223 9120337
HK Granted 1125/95 9120337
SG Granted 9591027-9 9120337
Curved Termination FR Granted 9502411 9502411
GB Granted 2287366 9504294
Stud Extender FR Granted 9613725 9613725
GB Published 9719494
Street Light Harness GB Pending 9808688
Heat Sink sheath CH Granted 0366473 89311077
EP Granted 0366473 89311077
GB Granted 0366473 89311077
HK Granted 1902/1996 89311077
IT Granted 0366473 89311077
SG Granted 9592259
Char stabiliser tape AT Granted 0526081 92306675
BE Granted 0526081 92306675
CA Granted 2074572 2074572
CH Granted 0526081 92306675
DE Granted 0526081 92306675
DK Granted 0526081 92306675
213
TITLE COUNTRY STATUS PATENT APPLICATION TITLE HOLDER OF RECORD IF
NUMBER NUMBER NOT BICC PLC OR RELEVANT
SELLER
EP Granted 0526081 92306675
ES Granted 0526081 92306675
FR Granted 0526081 92306675
GB Granted 0526081 92306675
GR Granted 0526081 92306675
HK Granted 1000743 97102347
Char stabiliser tape IT Granted 0526081 92306675
(Continued) LU Granted 0526081 92306675
NL Granted 0526081 92306675
PT Granted 0526081 92306675
SE Granted 0526081 92306675
SG Granted 44741 9606680
Viscosity monitor CA Granted 1311866 559897
Semiconducting Monosil CA Granted 1166324 386092
Box reel - corrugated hub CA Granted 1217623
Reel/box reel manufacture CA Granted 1235291 446512
Laminated moisture barrier CA Granted 2003427 2003427
GB Granted 2225480 8926657
US Granted 5006670 07/438008
Vacuum filling strand GB Granted 2244849 9111555
Flexible Xxxxxx barrier CA Granted 1210619 429952
On-line void detection CA Granted 1222073 456927
Fill/draw/in-line anneal CA Granted 1068084 265153
Metallic constant watt AU Granted 594413 8767525
IT Granted 1205701 8747528
MI/cable/EMAT CA Granted 2013787 2013787
GB Granted 2232250 9007644
Temperature sensor CA Granted 2061212 2061212
pockets
Tip Clearance Probe CA Pending 2244886
EP Published 97903454
JP Pending 529096/97
US Granted 5760593 08/615372
214
TITLE COUNTRY STATUS PATENT APPLICATION TITLE HOLDER OF RECORD IF
NUMBER NUMBER NOT BICC PLC OR RELEVANT
SELLER
Thermocouple Probe GB Published 9815821
Capacitance Transducer CA Pending 2243215 Rights jointly owned by
Apparatus and Cables BICC plc & Fylde
Electronics Ltd
EP Published 97902437 Rights jointly owned by
BICC plc & Fylde
Electronics Ltd
Capacitance Transducer HK Pending 99100647 Rights jointly owned by
Apparatus and Cables BICC plc & Fylde
(Continued) Electronics Ltd
JP Pending 527427/97 Rights jointly owned by
BICC plc & Fylde
Electronics Ltd
US Pending 09/117208 Rights jointly owned by
BICC plc & Fylde
Electronics Ltd
Tip Clearance Probe - GB Pending 9815823
Concept 5
Continuous fill/draw CA Granted 1187271 395844
Silicone impregnated M.I. GB Granted 2154783 8504380
Fire sealing pot (1) CA Granted 1261416 513461
FR Granted 8610976 8610976
GB Granted 2178606 8618416
IT Granted 1195890 8648341
Forced-flow powder filling AU Granted 615607 9050100
DE Granted 69005478 90301968
EP Granted 0384778 90301968
FR Granted 0384778 90301968
GB Granted 2230894 9004185
M.I. optical cable - case 2 GB Granted 2233788 9015244
Continuous sheathing GB Granted 2241255 9020557
Welding MIC sheath AT Granted 0452087 91303109
AU Granted 637894 9174368
BE Granted 0452087 91303109
CA Pending 2040193 2040193
CH Granted 0452087 91303109
DE Granted 0452087 91303109
DK Granted 0452087 91303109
EP Granted 0452087 91303109
215
TITLE COUNTRY STATUS PATENT APPLICATION TITLE HOLDER OF RECORD IF
NUMBER NUMBER NOT BICC PLC OR RELEVANT
SELLER
ES Granted 0452087 91303109
FR Granted 0452087 91303109
GB Granted 2243483 9107453
GR Granted 0452087 91303109
IT Granted 0452087 91303109
LU Granted 0452087 91303109
NL Granted 0452087 91303109
SE Granted 0452087 91303109
Shaped M.I. conductor GB Granted 2247982 9119334
Hinged seal AU Granted 659095 9183825
CA Pending 2051823
DE Granted 69107748 91308263
EP Granted 0476909 91308263
ES Granted 0476909 91308263
FR Granted 0476909 91308263
GB Granted 0476909 91308263
IT Granted 0476909 91308263
SG Granted 0476909 9591536-9
US Granted 5198619 07/757226
Peelable Blister Pack GB Granted 2258647 9214383
Welding electrode control GB Granted 2257543 9214403
Stripping Head Assembly GB Granted 2288695 9507374
Silica/Silicone MI Cable EP Pending 98903200
WO Published GB98/00438
Mullite/Silica MI Cable EP Pending 98910830
WO Pending GB98/00665
Cable straightening tool GB Granted 2216443 8905994
Cable bending tool GB Granted 2216829 8905915
Ultrasonic drawing down DE Granted 0573313 93304420
EP Granted 0573313 93304420
ES Granted 0573313 93304420
FR Granted 0573313 93304420
GB Granted 0573313 93304420
IT Granted 0573313 93304420
Mullite M.I. Cable GB Pending 9813587
216
TITLE COUNTRY STATUS PATENT APPLICATION TITLE HOLDER OF RECORD IF
NUMBER NUMBER NOT BICC PLC OR RELEVANT
SELLER
Flatpack Stator EP Published 96303606
Barrier feed joint US Granted 4330681 178790
Simple stop joint US Granted 4354050 1085944
Field moulded joint GB Granted 2268005 9312409
SG Published 9601142-4
O-ring stripping tool GB Granted 2272113 9321610
US Granted 5581885 08357185
3-D Conductive Polymers EP Published 96940028
GB Published 9811694
Foil Laminate Sheath AU Pending 43921/97
EP Pending 97942126
GB Pending 9620394
MY Pending PI9704535
Pinned Insulation WO Pending GB98/02662
ZA Pending 988165
Unbonded Laminate MY Pending PI9804148
Sheath
WO Pending GB98/02707
Chips in Oil GB Pending 9900190
Oversheath Fault Monitor EP Pending 99301696
Radio Discharge Detection GB Pending 9809713
Sub-Cable Discharge Test GB Pending 9900820
Cypermethrin Masterbatch GB Granted 2276171 9404236 Rights jointly owned by
BICC plc & Pirelli General
plc
SG Granted 47815 9604547 Rights jointly owned by
BICC plc & Pirelli General
plc
HK Granted 1000725 97102348 Rights jointly owned by
BICC plc & Pirelli General
plc
Mercury Superconductor BE Granted 0651909 93916112
CA Pending GB9301529
DE Granted 69309069 93916112
ES Granted 0651909 93916112
217
TITLE COUNTRY STATUS PATENT APPLICATION TITLE HOLDER OF RECORD IF
NUMBER NUMBER NOT BICC PLC OR RELEVANT
SELLER
FR Granted 0651909 93916112
GB Granted 0651909 93916112
IT Granted 0651909 93916112
LU Granted 0651909 93916112
PT Granted 0651909 93916112
US Granted 5550105 GB9301529
Cross Rolling GB Granted 2278081 9310058
Loosely Housed AT Granted 0830692 96916226 Rights jointly owned by
Superconductor BICC plc & BICC CEAT
Cavi Srl
AU Published 59053/96 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
Loosely Housed BE Granted 0830692 96916226 Rights jointly owned by
Superconductor BICC plc & BICC CEAT
Cavi Srl
(Continued) CA Pending 2224272 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
CH Granted 0830692 96916226 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
CN Published 96195945 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
DE Granted 0830692 96916226 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
DK Granted 0830692 96916226 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
EG Pending 512/96 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
EP Granted 0830692 96916226 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
ES Granted 0830692 96916226 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
FI Granted 0830692 96916226 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
FR Granted 0830692 96916226 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
GB Granted 0830692 96916226 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
GR Granted 0830692 96916226 Rights jointly owned by
218
TITLE COUNTRY STATUS PATENT APPLICATION TITLE HOLDER OF RECORD IF
NUMBER NUMBER NOT BICC PLC OR RELEVANT
SELLER
BICC plc & BICC CEAT
Cavi Srl
IE Granted 0830692 96916226 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
IN Pending 1233/DEL/96 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
IT Granted 0830692 96916226 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
JP Pending 500218/97 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
LU Granted 0830692 96916226 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
MC Published 96916226 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
MY Pending PI 9602294 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
Loosely Housed NL Granted 0830692 96916226 Rights jointly owned by
Superconductor BICC plc & BICC CEAT
Cavi Srl
(Continued) PH Pending 53427 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
PT Granted 0830692 96916226 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
SE Granted 0830692 96916226 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
SG Pending 9706091-7 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
TW Granted 088926 85106946 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
US Pending 08/973170 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
ZA Granted 96/4882 96/4882 Rights jointly owned by
BICC plc & BICC CEAT
Cavi Srl
Linear Tape MY Pending Pi9802916
PE Pending 434.98
WO Published GB98/01835
Radial Superconductor GB Pending 9807348
219
TITLE COUNTRY STATUS PATENT APPLICATION TITLE HOLDER OF RECORD IF
NUMBER NUMBER NOT BICC PLC OR RELEVANT
SELLER
Current Leads - Anchor GB Pending 9819545
Hydral loaded EVA US Granted 4370076 123433
Wiring cable/separable CA Granted 1197297 429951
earth
220
PART B REGISTERED DESIGNS OWNED BY THE RELEVANT SELLERS TO BE
------ TRANSFERRED TO THE PURCHASER OR RELEVANT PURCHASER
(AS THE CASE MAY BE)
TITLE COUNTRY STATUS PATENT APPLICATION TITLE HOLDER OF RECORD IF
NUMBER NUMBER NOT BICC PLC OR RELEVANT
SELLER
Through Connector Case 2 GB Granted 1044940 1044940
Through Connector Case 3 GB Granted 1044941 1044941
Tapping Connector Case 1 GB Granted 1044942 1044942
Tapping Connector Case 2 GB Granted 1044943 1044943
'Pressline' end cleat GB Granted 2159206 8512996
Serrated Y Connector GB Granted 1060854 1060854
Reversible Press Line GB Granted 2078732 2078732
Cleat
Press Line Corner Cleat GB Granted 2079273 2079273
Pressline Control Box GB Granted 2079713 2079713
221
PART C TRADEMARKS TO BE ASSIGNED FROM RELEVANT SELLER TO THE
------ PURCHASER OR RELEVANT PURCHASER (AS THE CASE MAY BE)
TRADEMARK COUNTRY STATUS REGISTRATION APPLICATION OWNER IF NOT BICC
NUMBER NUMBER PLC OR RELEVANT
SELLER
EASIPEEL CABLES NZ Registered 231502 231502 MM Cables N.Z. Ltd
(Assignment to
BICC plc in progress)
FIRETARD NZ Registered 185049 185049 MM Cables N.Z. Ltd
(Assignment to
BICC plc in progress)
HYPERFLEX NZ Pending 290642 MM Cables N.Z. Ltd
(Assignment to
BICC plc in progress)
RELIANCE GB Registered 577479 577479
TELECLEATS US Registered 1251654 73/279935
BICC ARMAFLEX BX Registered 76989 559251
BIMODRUM GB Registered 1514436 1514436
CONCEL IR Registered 83938 7612464
DEVILEAD LY Pending 8854
DEVILENE LY Pending 8855
DEVILENE IR Registered 82948 7608274
DEVILINE LY Pending 8856
DEVILINE IR Registered 83939 7612462
XXXXXXXX CA Registered UCA11491 173600
HELIBOND DK Registered 01565/1996 01018/1996 Jointly owned by BICC
plc and Preformed
Line Products Ltd.
HELIBOND GB Registered 2056335 2056335 Jointly owned by BICC
plc and Preformed
Line Products Ltd.
HELIBOND NO Registered 184203 1996/0929 Jointly owned by BICC
plc and Preformed
Line Products Ltd.
HELIBOND FI Registered 203156 737/96 Jointly owned by BICC
plc and Preformed
Line Products Ltd.
222
TRADEMARK COUNTRY STATUS REGISTRATION APPLICATION OWNER IF NOT BICC
NUMBER NUMBER PLC OR RELEVANT
SELLER
HELIBOND SE Registered 317385 96-01599 Jointly owned by BICC
plc and Preformed
Line Products Ltd.
223
TRADEMARK COUNTRY STATUS REGISTRATION APPLICATION OWNER IF NOT BICC PLC
NUMBER NUMBER OR RELEVANT
SELLER
RANGER GB Registered 2149990 2149990
TELCLEAT GB Registered B1139157 B1139157
BICAST AE Pending
BICAST SA Registered 106/66 2741/1401
BICAST FR Registered 1679793 252517
BICAST FR Registered 1262023 692496
BICAST NZ Registered 107433 107433
BICAST MY Pending M/89028
BICAST BX Registered 325902 301829
BICAST AU Registered A276555 A276555
BICAST GB Registered 997703 997703
BICC BICAST device DE Registered 1008761 B64509/9WZ
BITHANE GB Registered 1396582 1396582
BITHANE GB Registered 1099097 1099097
CORALINE GB Registered 637017 637017
CORALINE NZ Registered 42459 42459
MODULUS GB Registered 2114309 2114309
MODULUS GB Registered 2112546 2112546
BICALFLUX GB Registered 918456 918456
BICASEAL GB Registered 1395944 1395944
BICC BIMOLD GB Registered 1311272 1311272
BICC BIMOLD device GB Registered 1202575 1202575
BIWRAP GB Registered B1176157 1176157
FLAMBIC GB Registered 1160633 1160633
FLAMBIC AU Registered A393624 A393624
224
TRADEMARK COUNTRY STATUS REGISTRATION APPLICATION OWNER IF NOT BICC PLC
NUMBER NUMBER OR RELEVANT
SELLER
FLAMBICC GB Registered 1408029 1408029
FLAMBICC DE Registered 1170377 B88902/9Wz
LSF device GB Registered 1164357 1164357
MULTI-PLUS GB Registered 2129111 2129111
FLEXO GB Registered 1015375 1015375
PoweRise device HK Pending 7198/97
PoweRise device GB Published 2133995 2133995
PRESSLINE GB Published 2152685
PRESSLINE device GB Registered 2153550 2153550
BICC-XXXXXXXX CA Registered 454652 758411
CABLES XXXXXXXX CA Registered TMA393848 654610
design
LES CABLES PHILLIPS CA Registered TMA242675 427619
design
PHILLIPS CABLES CA Registered TMA196575 358725
PHILLIPS CABLES CA Registered TMA398429 653714
design
BICCROD GB Registered 1030630 1030630
PYROTENAX CA Registered UCA44701 221644
BPTX GB Registered B1191922 1191922
CUMIC GB Registered 878544 878544
CUMIC BX Registered 82031 564124
JOISTRIPPER GB Registered 1119912 1119912
MINERAX ES Registered 2032752 2032752
MINERAX FR Registered 1622163 244062
PYRO GB Registered 1503539 1503539
PYRO GB Registered 1417319 1417319
225
TRADEMARK COUNTRY STATUS REGISTRATION APPLICATION OWNER IF NOT BICC PLC
NUMBER NUMBER OR RELEVANT
SELLER
PYRO MATE GB Registered 1525915 1525915
PYROTENAX SG Registered 49827 49827
PYROTENAX AT Registered 161377 AM1908/94
PYROTENAX DK Registered 2980/1979 522/1979 BICC Pyrotenax Ltd
PYROTENAX GB Registered 842507 842507
PYROTENAX SG Registered 49824 49824
PYROTENAX GB Registered 842506 842506
PYROTENAX GB Registered 799061 799061
PYROTENAX GB Registered 668777 668777
PYROTENAX GB Registered 573864 573864
PYROTENAX AU Registered A70386 A70386
PYROTENAX IN Registered 204690 204690
PYROTENAX GB Registered 1140539 1140539
PYROTENAX NZ Registered 64973 64973
PYROTENAX AU Registered A157445 A157445
PYROTENAX AU Registered A157447 A157447
PYROTENAX BH Registered 5547 167/80 BICC Pyrotenax Ltd
PYROTENAX BH Registered 5548 166/80 BICC Pyrotenax Ltd
PYROTENAX IE Registered 63160 63160 Pyrotenax Ltd
PYROTENAX SG Registered 49826 49826
PYROTENAX NZ Registered 35971 35971
PYROTENAX SG Registered 49825 49825
PYROTENAX NZ Registered 69255 69255
PYROTENAX ZA Registered 59/4145/1 59/4145/1
PYROTENAX ZA Registered 59/4145/2 59/4145/2
PYROTENAX ZA Registered 59/4145/3 59/4145/3
226
TRADEMARK COUNTRY STATUS REGISTRATION APPLICATION OWNER IF NOT BICC PLC
NUMBER NUMBER OR RELEVANT
SELLER
PYROTENAX ZA Registered 59/4145/4 59/4145/4
PYROTENAX ZA Registered 620/37 620/37
PYROTENAX IN Registered 204691 204691
PYROTENAX IE Registered 63161 63161 Pyrotenax Ltd
PYROTENAX ZM Registered 1140/62 1140/62 Pyrotenax Ltd
PYROTENAX PK Registered 5999 5999
PYROTENAX IN Registered 204689 204689
PYROTENAX ZM Registered 1141/62 1141/62 Pyrotenax Ltd
PYROTENAX IN Registered 137052 137052
PYROTENAX MW Registered 1142/62 1142/62
PYROTENAX MW Registered 1141/62 1141/62
PYROTENAX MW Registered 1140/62 1140/62
PYROTENAX LK Registered 20743 20743
PYROTENAX KW Registered 10723 11609
PYROTENAX SA Registered 90/28 3062/1400 BICC Pyrotenax Ltd
PYROTENAX HK Registered 727/71 727/71
PYROTENAX ZM Registered 1142/62 1142/62 Pyrotenax Ltd
PYROTENAX HK Registered 725/71 725/71
PYROTENAX HK Registered 726/71 726/71
PYROTENAX HK Registered 728/71 728/71
PYROTENAX JM Registered 9447 9447
PYROTENAX JM Registered 9448 9448
PYROTENAX JM Registered 9468 9468
PYROTENAX IR Registered 51681 75125 BICC Pyrotenax Ltd
PYROTENAX DE Registered 39514590 39514590.2
PYROTENAX IT Registered 713618 RM95C001686
227
TRADEMARK COUNTRY STATUS REGISTRATION APPLICATION OWNER IF NOT BICC PLC
NUMBER NUMBER OR RELEVANT
SELLER
FLAMSIL GB Registered 1545997 1545997
FLAMSIL DE Registered 2070421 B99485/9WZ
FLAMSIL FR Registered 93/482763 93/482763
MICRIMP GB Registered 844317 844317
XXXXXXX XX Xxxxxxxxxx 000000 X00000
Xxxx XX Published 2168468
PYROGRASP series GB Published 2164072
PYROPAK US Registered 679940 72/059435
PERMAHEAT GB Registered 1353299 1353299 BICC Pyrotenax Ltd
PERMAHEAT GB Registered 1390455 1390455 BICC Pyrotenax Ltd
PERMAHEAT device GB Registered 1083057 1083057 BICC Pyrotenax Ltd
PYRO-SIL GB Registered 1498446 1498446
PYROLINE GB Published 2158470
THERMOHEAT GB Registered 2049350 2049350
PYROTENAX US Registered 702182 72/076437
BICCLAM JP Registered 3329700 35206/95
BICCLAM GB Registered 1116169 A1116169
BICCLAM US Published 75/357725
BICCLAM GB Registered 1179099 1179099
BICCLAM CA Registered TMA378803 632231
LEAN ID Pending 22057
LEAN CN Pending 9800145722
LEAN EM Pending 966754
LEAN US Pending 75/621310
LEAN AU Pending 781586
228
TRADEMARK COUNTRY STATUS REGISTRATION APPLICATION OWNER IF NOT BICC PLC
NUMBER NUMBER OR RELEVANT
SELLER
LEAN GB Published 2168474
LEAN ID Pending 22058
LEAN ID Pending 22059
LEAN HK Pending 16974/1998
LEAN HK Pending 16975/1998
LEAN HK Pending 16976/1998
LEAN SG Pending 12691/98
LEAN SG Pending 12692/98
LEAN SG Pending 12693/98
LEAN CN Pending 0000000000
LEAN CN Pending 9800145720
LEAN CA Pending 1000644
ONWOOD GB Registered 2144058 2144058
PANGOLIN GB Registered 1570407 1570407
Cryobicc AU Registered 739351 739351
Cryobicc EM Pending 584458
Cryobicc CA Pending 850946
Cryobicc CN Registered 1244931 970073055
Cryobicc JP Pending 142578/97
Cryobicc MY Pending MA/10108/97
Cryobicc SG Pending S/8858/97
Cryobicc CH Registered 448417 05572/1997
Cryobicc device GB Registered 2138455 2138455
ECONEX EM Pending 1029255
ECONEX US Pending 75/621309
229
TRADEMARK COUNTRY STATUS REGISTRATION APPLICATION OWNER IF NOT BICC PLC
NUMBER NUMBER OR RELEVANT
SELLER
BONUS GB Registered 1511347 1511347
BONUS GB Registered 1511348 1511348
BONUS GB Registered 1511346 1511346
GROUPWHERE series GB Registered 2115297 2115297
GREENGATE NIPLAS GB Registered 1116991 1116991 Sterling Greengate
TUBE WELD Cable Company Ltd
NIPLAS GB Registered 803340 803340
230
PART D LICENCES OUT OF SELLERS' INTELLECTUAL PROPERTY AND SELLERS' KNOW-HOW
------
OTHER PARTY SUBJECT AGREEMENT TYPE
Caribbean Cables Ltd BICC Trademark Registered User Agreement
Incab Industries Ltd XLPE Cables Technical Collaboration
Agreement
Borealis A/S Monosil Semiconducting Screens Know-How Licence and Supply
Agreement
Hawke Cable Glands Ltd Letter Agreement dated 1/11/93
Asian Cables & Industries Ltd Agreement dated 14/6/96
Advanced Elastomer Systems SNV SA Agreement datd 27/3/96
Alcan Chemicals, Ltd Agreement dated 24/6/97
Metal Manufacturers Limited "Pyrotenax" Trade Xxxx Licence Authorised User Agreement
231
PART E LICENCES IN OF SELLERS' INTELLECTUAL PROPERTY AND SELLERS' KNOW-HOW
------
OTHER PARTY SUBJECT AGREEMENT TYPE
National Research Development Corporation High Modulus Polymers Licence Agreement
Lynxvale Ltd Thallium-Strontium Superconductor Licence Agreement
Compositions
Hawke Cable Glands Ltd. Barrier Cable Glands Licence Agreement
SILEC Elastomeric Cable Terminations Know-how and Patent Licence
Agreement
Hitachi XLPE Cables Technical Collaboration and
Licence Agreement
Hitachi XLPE Cables Technical Collaboration
Agreement
NOR.WEB DPL Ltd. Digital Power Line Collaboration Agreement
Corning, Inc. Licence back of rights acquired from BICC Patent Licence Agreement
for use in its Energy business
Xxxxxxx Emck Agreement dated 7/11/97
Preformed Line Products Agreement dated 15/11/95
232
PART F CROSS LICENCES OF SELLERS' INTELLECTUAL PROPERTY AND SELLERS' KNOW-HOW
------
OTHER PARTY SUBJECT AGREEMENT TYPE
Pacific Dunlop Ltd Fire Resistant Cables Settlement of Opposition
Proceedings and Patent Cross
Licence Agreement
233
PART G DEVELOPMENT AGREEMENTS
Finmeccanica SPA - Azienda Superconducting Cable Collaboration Agreement BICC Cables Ltd
Ansaldo and Ansaldo Richerche (Energy)
S.r.l.
Queens University, Kingston, Feasibility Study to Sponsored Development BICC Pyrotenax Ltd.
Ontario. investigate Sheath Materials Work Agreement
for use in Mineral Insulated
Cables and Thermocouples
Ortech Corporation Positive Temperature Sponsored Development BICC Pyrotenax Ltd.
Coefficient Resistors relating Work Agreement
to Mineral Insulated Heater
Cable
PIRA International Improved Packaging Process Sponsored Development BICC Industrial
Work Agreement Special Cables, Xxxxx
XX Technology Ltd The development of a novel, Sponsored Development BICC Energy
non-equilibrium plasma system Work Agreement Technology, Wrexham
(atmospheric pressure
microwave) for coating
polymerically insulated power
cables.
Ontario Hydro Technology Electrolumenescence of XLPE Sponsored Development BICC Energy
Cables. Work Agreement Technology, Wrexham
Ontario Hydro Technology Resistance to Failure of EPR Sponsored Development BICC Energy
Cables. Work Agreement Technology, Wrexham
Ontario Hydro Technology Pre-breakdown Defect Detection Sponsored Development BICC Energy
Work Agreement Technology, Wrexham
University of Wales, Bangor Electromechanical Strain at Sponsored Development BICC Energy
Polymer Interfaces and the Work Agreement Technology, Wrexham
Initiation of Failure in High
Voltage Cables.
University of Wales, Bangor Electromechanical Strain at Supplemental Letter BICC Energy
Polymer Interfaces and the Agreement - Technology, Wrexham
Initiation of Failure in High Contribution to
Voltage Cables. Purchase of ab Atomic
Force Microscope.
234
University of Wales, Bangor Electromechanical Endurance Sponsored Development BICC Energy
Model and Failure in High Work Agreement Technology, Wrexham
Voltage Cables.
University of Wales, Bangor Further Development to the Sponsored Development BICC Energy
Electrokinectic Endurance Work Agreement Technology, Wrexham
Model.
University of Wales, Bangor Further Development to the EKE Draft Extension Letter BICC Energy
Model. Agreement Technology, Wrexham
University of Wales, Bangor Electrokinetic Phenomena Sponsored Studentship BICC Energy
(CASE PhD) Technology, Wrexham
University of Wales, Bangor Scanning Probe Microscope Sponsored Development BICC Energy
Investigation of Insulations Work Agreement Technology, Wrexham
and Screens
University of Wales, Bangor Improving Insulation/Semicon Sponsored Studentship BICC Energy
Interface (CASE PhD) Technology, Wrexham
University of Wales, Swansea Wire-Coating Die-Flow Sponsored Development BICC Energy
Modelling. Work Agreement Technology, Wrexham
Profs. X. Xxxxxxx and A.R. Viscosity of Polymer Melts Sponsored Development BICC Energy
Davies University of Wales, Work Agreement Technology, Wrexham
Aberystwyth
Lancaster University Studies of the Peroxide Sponsored Studentship BICC Energy
Crosslinking Reaction in (CASE PhD) Technology, Wrexham
Polyolefins Prepared by
Metallocene Catalysis.
Aberdeen University Phase Diagram & Processing Sponsored Studentship BICC Energy
Studies on BiSCCO-2212 (CASE PhD) Technology, Wrexham
University of Durham Fabrication of HTSC coils and Sponsored Studentship BICC Energy
Tapes. (CASE PhD) Technology,
Wrexham
Southampton University Lectureship in Sponsored Development BICC Energy
Institute of Cryogenics Superconductivity Work Agreement Technology,
Wrexham
Cranfield University Engineering and Management of Sponsored Studentship BICC Energy
Manufacturing Systems (MSc) Technology,
Wrexham
235
Cranfield University Cable Making Production Line - Sponsored Studentship BICC Energy
Simulation Model. (MSc) Technology,
Wrexham
Cranfield University The Use of Information Systems Sponsored Studentship BICC Energy
to Integrate Manufacturing (CASE PhD) Technology,
Systems Wrexham
Cranfield University Next Generation Manufacturing Sponsored Studentship BICC Energy
Systems (EngD) Technology,
Wrexham
Cranfield University Transfer of Information Sponsored Studentship BICC Energy
Systems Technology (EngD) Technology,
Wrexham
Liverpool University Multi-Agent Learning for Sponsored Studentship BICC Energy
Monitoring and Control (CASE PhD) Technology,
Wrexham
University College, London. Mesoscopic Modelling of Sponsored Development BICC Energy
Electrical Breakdown Work Agreement Technology,
Wrexham
Bristol University Concentration Gradient of Dust Sponsored Development BICC Energy
Particles in Divergent Work Agreement Technology,
Electric Fields. Wrexham
CAPCIS Ltd. Corrosion of Submarine Cable Sponsored Development BICC Energy
Installations Work Agreement Technology,
Wrexham
University of Southampton Space-Charge Measurement Sponsored Development BICC Energy
Work Agreement Technology,
Wrexham
University of Reading Polymer Morphology & Sponsored Studentship BICC Energy
Dielectric Breakdown (CASE PhD) Technology,
Wrexham
Leicester University Study into Polymeric DC Consultancy BICC Energy
Insulation's (Xxxxxxxxxx) Technology,
Wrexham
Strathclyde University The Use of Gas Insulated Lines Sponsored Development BICC Energy
in HV Transmission Systems Work Agreement Technology,
Wrexham
Loughborough University of M-TDSC Techniques for the Sponsored Development BICC Energy
Technology Study of Filled Polymers Work Agreement Technology,
Wrexham
European Commission PROGNOSIS - Process Cost Sharing Contract BICC Energy
Diagnostics for Plant Technology,
Performance Enhancement Wrexham
236
University of Newcastle, etc. PROGNOSIS - Process Collaboration Agreement BICC Energy
Diagnostics for Plant Technology,
Performance Enhancement Wrexham
European Commission SACPA - AC Losses in Actual Cost Contract BICC Energy
Superconductors Technology,
Wrexham
University of Southampton, etc. SACPA - AC Losses in Collaboration Agreement BICC Energy
Superconductors Technology,
Wrexham
University of Surrey, etc. Life-Cycle and Process Collaboration Agreement BICC Energy
Optimisation Approach to Technology,
Polymer Materials Selection Wrexham
University of Surrey, etc. Life-Cycle and Process Actual Cost Contract BICC Energy
Optimisation Approach to Technology,
Polymer Materials Selection Wrexham
DTI, UMIST, etc. Anisotropy Control with Actual Cost Contract BICC Energy
Rotating Die Extrusion Technology,
Wrexham
DTI, UMIST, etc. Anisotropy Control with Collaboration Agreement BICC Energy
Rotating Die Extrusion Technology,
Wrexham
Prof. R Xxxxxxxx, University Superconductivity Technology Consultancy Agreement BICC Energy
of Southampton Review Technology,
Wrexham
JMU Services Ltd, for Technology Forecasting Sponsored Development BICC Energy
Liverpool Xxxx Xxxxxx Work Agreement Technology,
University Wrexham
Xxxxxx Xxxxxxx Technology Forecasting Consultancy Agreement BICC Energy
Technology,
Wrexham
Borealis A/S Supply of HDPE and Material Supply BICC Energy
semiconducting screens Agreement Technology,
Wrexham
IPEC Limited Ultrasonic Measurement of Sponsored Development BICC Cables Ltd
Cable Insulations Work Agreement Erith Technology
Centre
ABAQUS Benelux BV Finite Element Modelling of Consultancy Agreement BICC Cables Ltd
Sub-Sea Cables Erith Technology
Centre
237
University of Lancaster Untitled Studentship Sponsored Studentship BICC Cables Ltd
(A Ponsonby) (CASE PhD) Erith Technology
Assignment and Centre
Supplementary
Agreement
City University Computer Modelling of Power Sponsored Development BICC Cables Ltd
Cables Work Agreement Erith Technology
Centre
University of Bristol Water Treeing Sponsored Development BICC Cables Ltd
Work Agreement Erith Technology
Centre
Dr AS Xxxxxx Micro-PIXE Studies of Sponsored Development BICC Cables Ltd
(University of Surrey) Polymeric Cables Work Agreement Erith Technology
Centre
King's College, London Water Treeing in Filled Sponsored Development BICC Cables Ltd
Polymers Work Agreement Erith Technology
Centre
University of Genoa Electrical Treeing in EPR and Sponsored Development BICC Cables Ltd
XLPE Compounds Work Agreement Erith Technology
Centre
Preformed Line Products Ltd BLX Fittings Joint Marketing BICC Components
Agreement Ltd.
Xxxxxx Xxxxx Xxxx Cable Cleat Assignment and Revenue BICC Components
Sharing Agreement Ltd.
A T Group Agreement dated 11/8/97 BICC Cables Ltd
Xxxxxx Xxxxxx Agreement dated 30/11/98 BICC Cables Ltd
Geomica Ltd Agreement dated 2/7/98 BICC Cables Ltd
Rockwell Automation Ltd Agreement dated 16/10/98 BICC Cables Ltd
Siemens Agreement dated 6/6/97 BICC Cables Ltd
238
Eurotherm Process Automation Agreement dated 2/10/96 BICC Cables Ltd
Xxxxxxxxxxx Xxxxx & University Agreement dated 1/6/98 BICC Cables Ltd
of Liverpool
Informix Confidentiality BICC Cables Ltd
Agreement
Nokia-Maillefer Agreement dated 1/10/97 BICC Cables Ltd
239
PART H DETAILS OF MATERIAL LICENCES OF THIRD PARTY SOFTWARE TO WHICH THE GROUP
COMPANIES OR THE BUSINESS SELLERS ARE A PARTY AND (IN THE CASE OF THE BUSINESS
SELLERS) WHICH IS PRIMARILY OR EXCLUSIVELY USED IN THE OPERATIONS
------------------------------------------------------------------------------------------------------------------------------------
SUPPLIER SOFTWARE TYPE OF APPLICATION BUSINESS UNIT USING SOFTWARE
------------------------------------------------------------------------------------------------------------------------------------
CPL Package Treasury System Energy Centre
Hexagon Package Bank Payments - Reports Bank Accounts Energy Centre
Rockliffe Chameleon Accounting Ledgers Energy Centre
Hyperion Package Financial Consolidation Energy Centre
PWA Foxpro Personnel Records System (PWA) Energy Centre
Reuters Reuters3000 Reuters - On line Financial Information Energy Centre
Workgroup Systems Quetzal Internal Call Management System BICC IS
Baan Scopus Baan Call Management System BICC IS
Forty-One Sage Accounts Package BICC Energy
Technology
MAX MAX 10 Business Information System ERITH
Datastream MP2 Maintenance / Stores / Purchasing ERITH
Radan Radraft CAD for Accessories Design ERITH
Mitrefinch TMA Time and Attendance system used by 600 Employees ERITH
MGB Ledgers Radius Nominal Ledger / Sales Ledger / Purchase Ledger / Asset ERITH
Register
SDRC Ideas Master Series Finite Element Modelling and Analysis ERITH
HKS Abaqus Advanced Finite Element Package for Structural and ERITH
Thermal Analysis
CFX International CFX 4 / 5 Computational Fluid Dynamics ERITH
240
------------------------------------------------------------------------------------------------------------------------------------
SUPPLIER SOFTWARE TYPE OF APPLICATION BUSINESS UNIT USING SOFTWARE
------------------------------------------------------------------------------------------------------------------------------------
Engineering Animation Vislab 3D Visualisation and Animation ERITH
Intelligent Light Field View Computational Fluid Dynamics Post Processing ERITH
Radan Radraft NT CAD for Works Engineers ERITH
Real Time Documents Ltd Docusmart Export Documentation and invoicing ERITH
Baan Baan ERP WREXHAM
STG OPT Finite scheduler WREXHAM
MerciaVision Mainsaver Maintenance management WREXHAM
The CAD division AutoCad CAD WREXHAM
D&H Marpacs (Databus) Production Control/MRP COMPONENTS
Broadgate Ledgers (DB/C) Ledger COMPONENTS
T&G CG Account System SPAIN
META4 N4 Human Resources (Payroll) SPAIN
Micro-strategy DSS-Agent Data warehouse SPAIN
Slam Cerg-Finance Financial SPAIN
Banking communication
SSA BPCS Business planning and control system with the following PORTUGAL
main modules:)
TyG (Spain) CG/IFS Accounting package to generate the Management and Fiscal PORTUGAL.
accounts
Prologica IMMO/400 Fixed Assets accounting and control PORTUGAL.
241
------------------------------------------------------------------------------------------------------------------------------------
SUPPLIER SOFTWARE TYPE OF APPLICATION BUSINESS UNIT USING SOFTWARE
------------------------------------------------------------------------------------------------------------------------------------
SSA Iberica EDI To interchange data related to orders, despatch and PORTUGAL
invoicing with telephone and energy utilities.
Uses the standard EDIPAC.
Fidia GEO Tendering ITALY
Cybertec Cyberplan MRP and Scheduling ITALY
Progres Iniziativa Silog Transportation ITALY
Ibimec QMS Raw Material Quality Control ITALY
Omniadata ODAMM Accounts Receivable ITALY
Ceas Progress Raw materials and compounds ITALY
Formula FA Fixed Assets ITALY
Baan Baan IV Under Implementation ITALY
Baan Baan IV NEW ZEALAND
SAP R3 KKK
Reuters Reuters Online Financial Data on-line to Reuters BICC ROD
UNISYS Order Processing Sales Order Processing BICC ROD
Scomagg Plant database Rod Plant SFDC Quality & Despatch BICC ROD
MTAS PILOT Stores Engineering Stores Control BICC ROD
242
------------------------------------------------------------------------------------------------------------------------------------
SUPPLIER SOFTWARE TYPE OF APPLICATION BUSINESS UNIT USING SOFTWARE
------------------------------------------------------------------------------------------------------------------------------------
CEGELEC Controls Alspa Process Control Application BICC ROD
C80-35 &
C90-70
NANO Tech. Furnace Control SCADA Adroit 3.1 - Furnace Control BICC ROD
Manugistics StatGraphicsPlus for Windows Statistical Analyses BICC ROD
MINITAB MINITAB Statistical Analysis Software BICC ROD
ARCSERVE ARCSERVE Server Backup Software BICC ROD
Megatech TAS Books Financial Accounting Software Package BICC XXX
Xxxxx Xxxxxx Weighman for Windows Weighbridge Software BICC ROD
Visual Business Tools Personnel Manager Personnel Records Database BICC XXX
Xxxxx Systems Time Director Time & Attendance Records BICC ROD
DataMetrics File Express Interface Software for UNISYS to TAS Books BICC ROD
DataMetrics Cadet T27 Terminal Emulation UNISYS emulation on Desktop PC's BICC ROD
Software
Hyperion Hyperion Enterprise v4.22 Financial Reports/Consolidation Package BICC ROD
Midland Bank Hexagon Bank Account Enquiry Software BICC XXX
Xxxxxxx SDB Backup v2.49 Local DOS Backup software for PC Users BICC ROD
D&H Computers MARPACS Sales Order Processing BICC WIRE
IEG Computing FACTORY Planning and Scheduling System BICC WIRE
Shire Systems Ltd Planned Maintenance Preventative Planned Maintenance system BICC WIRE
243
------------------------------------------------------------------------------------------------------------------------------------
SUPPLIER SOFTWARE TYPE OF APPLICATION BUSINESS UNIT USING SOFTWARE
------------------------------------------------------------------------------------------------------------------------------------
Shire Systems Ltd Stock systems Engineering Stores Module integrating with PPM system BICC WIRE
at 5. above
ISS, Manchester EDX Scanner Electron Microscope BICC WIRE
ENTEK Vibration Analysis System BICC WIRE
ARCSERVE ARCSERVE Server Backup Software via external Backup tape drive BICC WIRE
Megatech TAS Books Financial Accounting Software Package BICC WIRE
Visual Business Tools Personnel Manager Personnel Records Database BICC WIRE
Smart Systems Time Director Time & Attendance Records BICC WIRE
AutoCAD AutoCAD Computer Aided Drawing Package BICC WIRE
LT
MAX International MAX Business System PYROTENAX
Unitend Time& Attendance Time & Attendance PYROTENAX
Sitpro Spex V5 Export Shipment PYROTENAX
Kewill Sytec EDI Electronic Data Interchange - Invoices / Sales Orders PYROTENAX
Business Objects Business Objects Management Information System PYROTENAX
DataStream CMMS Computerised Maintenance Management System PYROTENAX
Mercia Software Logol Forecasting System PYROTENAX
XxXxxxxx Xxxxxxx Impact Award Integrated Business System THERMOHEAT
Computer Advisory Service Triangle QA Quality System (Paperless) THERMOHEAT
244
------------------------------------------------------------------------------------------------------------------------------------
SUPPLIER SOFTWARE TYPE OF APPLICATION BUSINESS UNIT USING SOFTWARE
------------------------------------------------------------------------------------------------------------------------------------
ICL OMAC Manufacturing database, materials purchasing and LEIGH
control, costing and stock control
Mercia Vision Mainsaver Engineering stores, purchasing and planned maintenance XXXXX
Xxxxxx SPEX Export shipping documentation LEIGH
Business Objects Business Objects Management Information System LEIGH
Baan Baan IV Under Implementation LEIGH
Baan BaanIV Under implementation DUBAI
Open Mind ? Tendering ASCOLI
Progres Iniziativa Silog Transportations ASCOLI
Omniadata ODAMM Accounts Receivable ASCOLI
Ceas Progress Raw materials and compounds ASCOLI
Formula FA Fixed Assets ASCOLI
Baan Baan IV Under Implementation ASCOLI
Kewill ZIMBABWE
------------------------------------------------------------------------------------------------------------------------------------
245
SCHEDULE 16
ENVIRONMENT
1 DEFINITIONS
For the purpose of this Schedule and Clause 8.8 of the Agreement, the
following expressions shall have the following meanings:
Agreed Proportion means that proportion of any Environmental Loss which
the parties have agreed that the Vendor shall bear in paragraph 5.1
hereof.
Environment means ecological systems including living organisms and the
following media (alone or in combination); air (including the air
within buildings and the air within other natural or man-made
structures whether above or below ground); water (including water under
or within land or in drains or sewers and coastal and inland waters);
and land (including land under water); and in the case of man includes
his property.
Environmental Authority means any legal person or body of persons
(including any government department or government agency or court or
tribunal) having jurisdiction to determine any matter arising under
Environmental Laws and/or relating to the Environment.
Environmental Laws means all applicable laws (including, for the
avoidance of doubt, common law), statutes, regulations, statutory
guidance notes and final and binding court and other tribunal decisions
of any relevant jurisdiction or any constituent part thereof
(including, without limitation, the law of the European Union) in force
in the relevant jurisdiction at Completion which relate to pollution or
protection of the Environment or which relate to emissions, discharges,
or threatened releases or escapes of Hazardous Substances into the
Environment, or to the production, processing, distribution,
management, use, treatment, storage, burial, disposal, transport or
handling of any Hazardous Substances, noise, nuisance and all bye-laws,
codes, regulations, decrees, demands or demand letters, injunctions,
judgments, notices or notice demands, orders or plans issued or
promulgated or approved thereunder or in connection therewith to the
extent that the same have force of law at Completion provided that for
the purposes of this definition Part IIA of the Environmental
Protection Act 1990 and associated statutory guidance and regulations
and sections 161A to 161D of the Water
246
Resources Act 1991 (as amended and inserted by the Environment Act
1995) shall be deemed to have come into force and effect prior to
completion (in the form first in force);
Environmental Liability means any liability arising under Environmental
Laws (whether criminal, civil or regulatory) (i) out of the operation
of any of the Operations or any part thereof before Completion or (ii)
out of the occupation or ownership of the Properties or any part
thereof by the Vendor or any Relevant Seller before Completion
(including liability under Environmental Law to undertake Remedial
Action) or (iii) out of the acts or omissions of any of the Group
Companies at any Former Property;
Environmental Loss means any loss, damage, liability, cost and expense
(including fines, and penalties, the reasonable cost of Remedial Action
and reasonable legal and other professional fees but excluding any
Operational Expenditure and any consequential loss) which is suffered
or reasonably incurred by any member of the Purchaser Group in respect
of:
(a) any Environmental Liability for any matter under paragraph 3
hereof or
(b) any reasonable action taken by the Purchaser to prevent,
eliminate, reduce, limit or mitigate any such Environmental
Liability.
Environmental Permit means any licence, approval, authorisation,
permission, notification, waiver, order or exemption which is issued,
granted or required under Environmental Law for the operation of any of
the Operations on or before Completion;
Environmental Proceedings means:
(a) any civil, criminal or regulatory suit or proceedings;
(b) any application for judicial review;
(c) any arbitration or dispute resolution procedure
(d) any application for injunctive relief or for a declaration;
(e) any investigation undertaken by or on behalf of an
Environmental Authority under Environmental Law pursuant to
which the Environmental Authority may order enforcement action
or compel Remedial Action; and
247
(f) any court order, or any statutory or legislative notice or
written notification issued by an Environmental Authority
forming part of an administrative or judicial action or
regulatory procedure which determines a violation of any
Environmental Law, assesses any civil, regulatory or criminal
penalty, prohibits or imposes restrictions upon the operations
of the Business or which requires action to be taken,
operations to be modified or Remedial Action to be undertaken,
relating to, concerning or affecting any Environmental Liability;
Environmental Warranties means the warranties at paragraph 2 of this
Schedule;
Former Properties means any property owned, occupied, or leased by the
Vendor or by any Group Company (i) where such ownership, occupation or
lease ceased prior to Completion, or (ii) where such property does not
form part of the Assets;
Hazardous Substances means wastes, pollutants, contaminants or other
substances (including without limitation liquids, solids, gases, ions,
living organisms, and noise) that are harmful to human health or other
life or the Environment or a nuisance to any person;
Operational Expenditure means in respect of any of the Operations any
future expenditure to the extent that after Completion it is incurred
or is properly to be incurred in the ordinary course of business of any
of the Operations, as part of routine maintenance and upkeep of any
works, plant, equipment and/or buildings and/or their services or to
overcome fair wear and tear of such works, plant, equipment and/or
buildings and/or their services but for the avoidance of doubt shall
exclude any future expenditure incurred by the Purchaser after
Completion in respect of any works required to bring into compliance
with Environmental Laws to the extent such Environmental Laws were
applicable on or before Completion any works, plant, equipment,
buildings or services which were non compliant on or before Completion.
Relevant Period means the period commencing five years before
Completion and ending at Completion.
Remedial Action means any works (including the installation, operation,
repair or replacement of plant or equipment) necessary to investigate,
assess, remove, xxxxx, mitigate, treat,
248
remediate, ameliorate, monitor and/or contain any matter which has
given or may give rise to an Environmental Loss.
2 ENVIRONMENTAL WARRANTIES
2.1 Each Group Company and Business Seller is operating and so far as the
Vendor is aware, during the Relevant Period has conducted the
Operations in compliance in all material respects with Environmental
Laws.
2.2 All Environmental Permits are in force and are being complied with and,
so far as the Vendor is aware, during the Relevant Period all
Environmental Permits have been complied with in all material respects.
2.3 So far as the Vendor is aware there is no pollution or contamination of
soil or groundwater at any of the Properties in circumstances which are
likely to give rise to material liability on the part of any Group
Company under Environmental Laws.
2.4 Neither the Vendor nor any Group Company has received written notice
during the Relevant Period of any Environmental Proceedings against the
Vendor or any Group Company or any of their directors, secretary or
senior employees in their capacity as such.
2.5 Neither the Vendor nor any Group Company has received written
notification during the Relevant Period that it is or is likely to be
required by any Environmental Permit or any Environmental Law or as the
result of any Environmental Proceedings to incur any material
expenditure or to desist from taking any action which might have a
material adverse effect on the financial condition of the Operations.
2.6 So far as the Vendor is aware, no circumstances exist which would
result in any material Environmental Permit being revoked, suspended,
varied or limited or which may prejudice its renewal nor have there
been any amendments or alteration to the Operations which require the
variation of any material Environmental Permit or which require the
Vendor to obtain an Environmental Permit to enable the continued
operation of the Operations.
249
3 ENVIRONMENTAL INDEMNITY
The Vendor agrees and covenants with the Purchaser (for itself and the
Relevant Purchasers) to pay the Purchaser an amount equal to the Agreed
Proportion of any Environmental Loss suffered or incurred by the
Purchaser or any Relevant Purchaser or any of the Group Companies after
Completion to the extent that it arises out of:
3.1 any discharge, emission, spillage, leak, escape, migration or release
of any Hazardous Substance from any of the Properties or Former
Properties as a result of any act or omission of the Vendor or any
member of the Vendor's Group or its contractors, invitees or persons
within its control (including the Business Sellers and the Group
Companies) prior to Completion; and/or
3.2 the presence of, or any consequences of the presence of any Hazardous
Substance in, on or under any of the Properties being a Hazardous
Substance which either (i) was present in, on or under such Property at
or before Completion or (ii) originates or derives from any Hazardous
Substance which was in, on or under such Property at or before
Completion; and/or
3.3 any failure on the part of the Vendor any member of the Vendor's Group
or its contractors, invitees or persons within its control (including
the Business Sellers and the Group Companies) on or before Completion
to comply with any Environmental Laws then applicable.
4 APPLICATION OF THE REMAINING PROVISIONS OF THIS SCHEDULE
The remaining provisions of this Schedule together with clauses 8.1.4
to 8.1.6, 8.2, 8.4.1, 8.5 to 8.8, 8.11 and 8.12 of the Agreement shall
apply to any claim by the Purchaser for breach of the Environmental
Warranties or under the indemnities in paragraph 3 hereof.
5 LIMITATIONS ON LIABILITY
5.1 APPORTIONMENT OF ENVIRONMENTAL LOSSES
All Environmental Losses which are the subject of the indemnity in
paragraph 3 above and any liabilities in respect of the Environmental
Warranties will be borne between the Vendor and the Purchaser in the
following ratios respectively:
(a) 95:5, where written notice of such claim is given by
the Purchaser to the Vendor setting out reasonable
details of the specific matter in respect of which
250
the claim is made (including an estimate of the amount
of such claim if practicable) prior to the third
anniversary of the Completion Date;
(b) 80:20, where written notice of such claim is given by
the Purchaser to the Vendor setting out reasonable
details of the specific matter in respect of which the
claim is made (including an estimate of the amount of
such claim if practicable) on or following the third
anniversary of the Completion Date but prior to the
fifth anniversary of the Completion Date.
(c) 60:40, where written notice of such claim is given by
the Purchaser to the Vendor setting out reasonable
details of the specific matter in respect of which the
claim is made (including an estimate of the amount of
such claim if practicable) on or following the fifth
anniversary of the Completion Date but prior to the
eighth anniversary of the Completion Date.
5.2 LIMITS ON LIABILITY
The Vendor shall not be liable in relation to any claim under Paragraph
3 or any claim for breach of the Environmental Warranties:
5.2.1 to the extent that the aggregate amount of the liability of the
Vendor for all such claims and all other claims under the
Agreement would exceed (pound)160 million as specified in
Clause 8.2 of the Agreement;
5.2.2 in respect of any Operational Expenditure; and
5.2.3 in respect of any claim unless written notice of such claim is
given by the Relevant Purchaser to the Relevant Seller before
the eighth anniversary of Completion in accordance with
paragraph 5.1.
5.3 EXACERBATION
The Vendor shall not be liable in relation to any claim under paragraph
3 or any claim for breach of the Environmental Warranties to the extent
that the loss in respect of which the breach of Environmental
Warranties is alleged or the Environmental Loss which is the subject of
the claim arises by virtue of or is exacerbated by:
(i) any act or omission of the Purchaser or any member of
the Purchaser's Group following Completion except to the
extent that such act or omission was
251
reasonable in the circumstances and the Purchaser or any
member of the Purchaser's Group did not know or could
not be expected to know that such act or omission would
exacerbate the loss; or
(ii) any Property being closed, redeveloped (other than
redevelopment or construction works for the purposes of
the Operations) or put or to be put to a more sensitive
use than the use to which it was put immediately prior
to Completion.
5.4 MITIGATION
The Purchaser shall take and shall procure that any member of the
Purchaser's Group takes all reasonable steps to avoid or mitigate any
Environmental Loss which gives rise to or might give rise to a claim
under paragraph 3 hereof or any claim for breach of the Environmental
Warranties.
6 PROCEDURE FOR VOLUNTARY ACTION OR REMEDIAL ACTION
6.1 The provisions of this paragraph 6 shall apply in respect of any claim
under paragraph 3 above insofar as it relates to (i) voluntary action
(including voluntary Remedial Action) to prevent, reduce, xxxxx,
eliminate or mitigate any Environmental Liability or (ii) Remedial
Action required by any Environmental Authority pursuant to
Environmental Proceedings.
6.2 Subject to paragraph 6.3 the Purchaser shall consult as fully as is
reasonably practicable with and pay reasonable regard to the views of
the Vendor regarding any voluntary action it considers should be taken
to prevent, reduce, eliminate or mitigate any Environmental Liability
and in respect of which it anticipates making a claim under Paragraph 3
of this Schedule.
6.3 The test for determining whether the voluntary action proposed by the
Purchaser hereunder is reasonable (and therefore whether it falls
within paragraph 3) shall involve consideration of custom and practice
in the relevant industry and jurisdiction, the practice of the
Purchaser in relation to like sites, the attitude of any Environmental
Authority and the likely results if no voluntary action is taken.
6.4 Where any Remedial Action is required as a result of any Environmental
Proceedings or is voluntary action in respect of which paragraph 6.2
applies, the Purchaser shall as soon as
252
practicable notify the Vendor that in its opinion there is the need for
such Remedial Action. The Vendor shall as soon as reasonably
practicable thereafter prepare or procure that there is prepared a
scope of works for the Remedial Action for the Purchaser's approval,
such approval not to be unreasonably withheld or delayed.
6.5 Subject to the rest of this paragraph 6 the Vendor shall procure that
Remedial Action is carried out:
(i) as soon as practicable after receiving the Purchaser's
approval of the scope of works.
(ii) by appropriately qualified environmental consultants (or
other contractors) to be approved by the Purchaser, such
approval not to be unreasonably withheld;
(iii) where Remedial Action is required pursuant to
Environmental Proceedings, and to the extent that this
is practicable and appropriate having regard to the
particular Environmental Authority involved, in
consultation with and to a standard approved by the
relevant Environmental Authorities and in compliance
with Environmental Law; and
(iv) in accordance with the agreed scope of works and using
all reasonable endeavours to ensure that it is
undertaken competently and in accordance with good
environmental practice.
6.6 The Purchaser shall give and shall procure that any member of the
Purchaser's Group gives the Vendor such access to any relevant property
and such co-operation and assistance as is reasonable in the
circumstances to enable the Remedial Action to be carried out and to
permit the Vendor to comply with its obligations under this paragraph
6.
6.7 The parties shall consult with each other regarding the carrying out of
the Remedial Action and shall take into account each other's reasonable
views and requests. The Vendor shall use its reasonable endeavours to
ensure that the Remedial Action is undertaken without causing any
unreasonable disruptions or disturbance to the operations of any
relevant member of the Purchaser's Group.
253
6.8 The parties shall keep each other fully informed as to the progress and
of any matters discovered during the Remedial Action or which could
affect the scope, design or execution of the Remedial Action and shall
provide each other with copies of any reports, investigations or
correspondence relevant or relating to the Remedial Action or to any
discussions with the relevant Environmental Authorities.
6.9 Notwithstanding the other provisions of this paragraph 6, the Purchaser
may without consultation take such action relating to any actual or
potential Environmental Loss as is reasonably necessary in case of an
emergency:
(i) to prevent or limit damage to the Environment; or
(ii) to comply with any emergency notice or order of any
Environmental Authority.
6.10 The costs of carrying out any Remedial Action or any reasonable
voluntary action (including voluntary Remedial Action) shall be borne
by the Vendor and the Purchaser in the Agreed Proportions in accordance
with Paragraph 5.1.
6.11 Upon completion of any Remedial Action specified in the scope of works,
the Vendor shall procure that its environmental consultant (or other
contractor) shall supply to the Purchaser a written certificate in a
form reasonably satisfactory to the Purchaser, that such Remedial
Action has been completed in accordance with and to any standard
specified in the scope of works.
7 CONDUCT OF CLAIMS
The provisions of this paragraph 7 shall apply to any matter which may
give rise to or arises by virtue of a claim under paragraph 3 or any
claim for breach of the Environmental Warranties.
7.1 Where the Vendor or any member of the Vendor's Group has or may have a
claim against a third party in relation to a matter which has given or
may give rise to a claim under paragraph 3 or any claim for breach of
the Environmental Warranties, the Purchaser and any relevant member of
the Purchaser's Group shall afford the Vendor all such assistance as
may be reasonable in relation to its conduct of such claim (subject to
any duties of confidentiality owed to third parties and to any right to
maintain legal privilege and without prejudice to any claim asserted by
the Purchaser under paragraph 3), including access to and copies of any
reports, correspondence, documents or other information in the
possession of the Purchaser or any
254
member of the Purchaser's group of companies provided that the
Purchaser and any relevant member of the Purchaser's Group is
indemnified to its reasonable satisfaction against all reasonable
costs, expenses and liabilities incurred as a result of so doing.
7.2 Without prejudice to the validity of any claim or alleged claim made by
the Purchaser under paragraph 3 or any claim for breach of the
Environmental Warranties, the Purchaser shall promptly provide such
reports, documents, correspondence, information, assistance (including
access to employees, agents or contractors of the Purchaser's Group)
and facilities as are potentially relevant to any such claim and are in
its possession (or in the possession of the Purchaser's Group) as the
Vendor may reasonably request (subject to compliance with any duties of
confidentiality owed to third parties and to the right to maintain
legal privilege) including reasonable access to any relevant part of
any Property or so far as reasonably practicable to any adjacent or
affected property. The Vendor receiving such information etc. shall
without limitation as to time keep all such information confidential
except for disclosure in defending or prosecuting any Environmental
Proceedings or any claim or alleged claim or argument under paragraph 3
or any claim for breach of the Environmental Warranties or as otherwise
required by law.
7.3 If a claim under paragraph 3 or any claim for breach of the
Environmental Warranties arises or may arise as a result of or in
connection with any Environmental Proceedings to which the Purchaser or
any member of the Purchaser's Group is or is likely to become a party
or where the Purchaser or a member of the Purchaser's Group is the
subject of such Environmental Proceedings the Purchaser shall promptly
notify the Vendor in writing of such claim or potential claim and the
actual or anticipated Environmental Proceedings as soon as it becomes
aware of such claim or Proceedings and the following provisions shall
apply:
(i) the Vendor shall have the right at any time to assume
primary responsibility for and control over the conduct
of all or any part of such Environmental Proceedings.
Unless and until the Vendor assumes conduct by notice in
writing to the Purchaser the Purchaser or any member of
the Purchaser's Group shall have conduct of any such
Environmental Proceedings;
255
(ii) while the Purchaser or any member of the Purchaser's
Group has conduct of any such Environmental Proceedings,
it shall be entitled to avoid, dispute, deny, defend,
resist, appeal, compromise or contest such Environmental
Proceedings (including, without limitation, making
counterclaims or other claims against third parties in
its own name) and to have the conduct of such
Environmental Proceedings, and any related Remedial
Action, negotiations or appeals but no admission of
liability shall be made by or on behalf of the Purchaser
(or any member of the Purchaser's Group), and the claim
shall not be compromised, disposed of or settled without
the consent of the Vendor (such consent not to be
unreasonably withheld or delayed);
(iii) if the Vendor assumes conduct of the Environmental
Proceedings, it shall be entitled to take any action to
avoid, dispute, deny, defend, resist, appeal compromise
or contest such Environmental Proceedings in the name of
the Purchaser or any member of the Purchaser's Group
provided that the Vendor shall consult as fully as is
reasonably practicable with the Purchaser (or the
relevant member of the Purchaser's Group) in respect
thereof and shall not take such action in its name as
may materially adversely affect the value of any
Property or the goodwill or good name of the Purchaser
(or the relevant member of the Purchaser's Group) unless
the Purchaser (or the relevant member of the Purchasers'
Group) consents thereto (such consent not to be
unreasonably withheld or delayed) and the Vendor shall
consult as fully as is reasonably practicable with the
Purchaser (or the relevant member of the Purchaser's
Group) as regards any negotiations and/or appeals
arising out of such Environmental Proceedings.
7.4 The party having conduct of any Environmental Proceedings (the "Conduct
Party") shall ensure that:
(i) the other party shall be informed promptly of any
information, and shall be provided with copies of any
correspondence or documents held by the Conduct
256
Party which is material to the Environmental Proceedings
(except to the extent this is impossible without waiving
privilege in respect thereof);
(ii) the other party shall be provided with advance notice of
any proposal by the Conduct Party (or any member of its
group of companies) or any third party to undertake
Remedial Action provided that this obligation shall not
apply in case of emergency, that is where there is an
imminent and substantial risk of serious harm to human
health or to the Environment; and
(iii) Each party shall comply with the reasonable requests of
the other for arrangements or procedures to maintain
confidentiality or legal privilege in relation to any
matters arising out of or relating to any Environmental
Proceedings.
7.5 If any amount is recovered in relation to any Environmental Loss or
claim under the Environmental Warranties pursuant to paragraphs 7.1
and/or 7.3 above, after first deducting any costs and expenses incurred
in relation to such recovery, the balance shall be divided between the
Vendor and the Purchaser in accordance with the Agreed Proportion in
which the Environmental Loss or loss arising in relation to the breach
of Environmental Warranties was borne by them.
8 ADDITIONAL REMEDIAL ACTION
8.1 Notwithstanding the provisions of the rest of Schedule 16 and in
particular paragraph 5.1, the parties agree that the Vendor shall be
responsible for undertaking and completing the matters and projects
identified in Schedule 16A (whether before or after Completion) and
that the Vendor should bear 100% of the cost of and liability
associated with so doing (save that the Vendor shall not be liable for
and the Purchaser shall bear any additional costs or liability to the
extent these are attributable to any act or omission of the Purchaser
or any Group Company after Completion which in the circumstances was
unreasonable and such that the Purchaser and/or Group Company could be
expected to know that it would increase the costs of such work or cause
or exacerbate any liability).
257
8.2 If any part of such matters or projects remain to be undertaken and/or
completed after Completion the provisions of Clauses 6.5 to 6.9 shall
apply to govern their undertaking and/or completion.
258
SCHEDULE 16A
1 LEIGH, UK
- Completion of the planned replacement of dust extraction
cyclones by installing the outstanding cyclone.
- Achievement of compliance with the air emission limits in
force at Completion for the reconstructed lacquer line.
2 PRESCOT, UK
- Installation of an interceptor to meet the suspended solids
limit in the storm water permit in force at Completion.
- Undertaking such works as are required by the Environmental
Authorities to achieve compliance with the particulate
emissions limit in force at Completion under the rod mill
authorisation (excluding, for the avoidance of doubt, any works
which form part of any improvement programme or upgrade process
which takes place in relation to the authorisation after
Completion).
3 MANLLEU, SPAIN
- Remediation of the soil contamination identified in the 1996
investigation associated with the underground heating oil
storage tank scheduled for removal.
- Removal of wastes left behind by the previous occupier of the
property adjacent to the Manlleu site which is used by Manlleu
for warehousing.
4 MORELENA, PORTUGAL
- Undertaking the corrective action set out in the Specific
Environmental Adoption Plan agreed prior to Completion with the
relevant Environmental Authority to comply with air emission
limits and stack height requirements.
5 ZIMBABWE
- Appropriate disposal of the inventory of hazardous waste
existing at the site at Completion.
259
6 ASCOLI XXXXXX
- Removal and appropriate disposal of three out-of-service PCB
containing transfor which were on site prior to Completion.
- Removal and appropriate disposal of any asbestos-containing
waste materials which were on site prior to Completion.
7 SETTIMO
- Making safe to the extent required by applicable law in force
at Completion any asbestos containing roofing or building
materials which was in an unsafe condition at Completion at
buildings F D and G on the attached plan.
8 MM CABLES NZ LIMITED, RICCARTON, NEW ZEALAND
- Completion of the works specified in the Riccarton paragraph
of the Environmental section of the Disclosure Letter to the
extent (i) these works are necessary to bring the site into
compliance with environmental and health and safety law
requirements applicable at Completion and (ii) the cost of so
doing is not already the subject of a provision in the Net
Asset Statement.
9 PCM, MALAYSIA
- Appropriate off-site disposal of any aluminium oxide and
silame waste which was stored on-site at Completion if such
storage was undertaken without an Environmental Permit and an
Environmental Permit should have been held in relation to such
storage.
260
SCHEDULE 17
EXCLUDED ASSETS
1.1 The Business Sellers' Cash Balances;
1.2 Any real property or interest in land or buildings other than the
Properties;
1.3 The benefit of any Claim made by any of the Business Sellers in respect
of insurance arising or accruing in consequence of anything done or
omitted to be done prior to Completion relating to an Excluded
Liability;
1.4 Debts due from any relevant Taxation authority in respect of Taxation
arising on or before Completion except to the extent reflected in the
Net Asset Statement.
261
SCHEDULE 18
BONDS AND GUARANTEES
See Exhibit entitled Bonds and Guarantees
262
SCHEDULE 19
SUBSTANTIAL CONTRACTS
1 Agreement between BICC Cables Limited and EVC Compounds Ltd dated 1
January 1998.
2 Undated agreement between BICC Cables Limited and Scottish Power PLC.
3 Undated agreement between BICC Cables Limited and Kinetica Limited
4 Confidentiality agreement between BICC Cables Limited and Siemens plc
dated 6 June 1997.
5 Confidentiality agreement between BICC Cables Limited and AT Group
dated 11 August 1997.
6 Confidentiality agreement between BICC Cables Limited and
Nokia-Maillefer OY dated 1 October 1997.
7 Agreement between BICC Cables Limited and Amerada Xxxx Gas Limited
dated 16 September 1998.
8 Agreement between BICC Cables Limited and National Grid Company plc
dated 5 June 1998 (Xxxxx/Littlebrook).
9 Agreement between BICC Cables Limited and National Grid Company plc
dated 25 March 1998 (Xxxxx/Xxxxxx).
10 Agreement between BICC Cables Limited and National Grid Company plc
dated 28 August 1998 (Damhead).
11 Agreement between BICC Cables Limited and National Grid Company plc
dated 17 September (Xxxxxxx Grange).
12 Agreement between BICC Cables Limited and National Grid Company plc
dated 15 October 1998 (Xxxxxxx Point).
13 Agreement between BICC Cables Limited and Pirelli Cables Limited dated
30 November 1998 (Sellindge).
14 Agreement between BICC Cables Limited and Xxxxx Utilities dated 21
October 1998 (Rover Way).
15 Agreement between BICC Cables Limited and Xxxxxxx Engineering (S) Pte
Ltd dated 12 April 1997 (Singapore 11 Supply).
16 Agreement between Trans-Power Cables Pte Ltd and Xxxxxxx Engineering
(S) Pte Ltd dated 4 July 0000 (Xxxxxxxxx 11 Installation).
17 Agreement between BICC Cables Limited and Xxxxxxx Engineering (S) Pte
Ltd dated 7 September 1998 (Singapore 15 Supply).
18 Agreement between Trans-Power Cables Pte Ltd and Xxxxxxx Engineering
(S) Pte Ltd dated 00 Xxxxxx 000 (Xxxxxxxxx 15 Installation).
19 Agreement between BICC Ceat Cavi Srl and Dubai Electricity & Water
Authority dated 28 September 1998.
20 Agreement between BICC Ceat Cavi Srl and Dubai Electricity & Water
Authority dated 28 September 1998.
263
21 Agreement between BICC General Cable SA and Union Electricia Fenosa SA
dated 1 July 1998.
22 Agreement between BICC Supertension Cables (1980) Ltd and China Light &
Power Company Limited dated 25 August 1998.
23 Agreement between BICC Cables Limited and China Light & Power Company
Limited dated 26 May 1993.
24 Agreement between BICC Cables Limited and East Midlands Electricity plc
dated 27 February 1998.
25 Agreement between BICC Cables Limited and Castle Peak Power company
Limited dated 18 May 1993.
26 Agreement between BICC Cables Limited and Amerada Xxxx Gas Limited
dated 1 October 1998.
27 Agreement between BICC Cables Limited and Scottish Power plc dated 1
July 1998.
28 Current tender between BICC Cables Limited and Midlands Electricity
plc.
29 Agreement between BICC Cables Limited and East Midlands Electricity
dated 1 August 1995.
30 Agreement between BICC Cables Limited and Northern Ireland Electricity
plc dated 22 September 1998.
31 Agreement between BICC Cables Limited and Hong Kong Electric Company
Limited dated 12 July 1994.
32 Undated framework agreement between BICC Cables Limited and Yorkshire
Electricity Group plc, having effect from 1 November 1997.
33 Framework agreement between BICC Ceat Cavi Srl and ENEL Spa dated 10
August 1996.
34 Framework agreement between BICC Ceat Cavi Srl and ENEL Spa dated 24
July 1996.
35 Framework agreement between BICC Ceat Cavi Srl and ENEL Spa dated 23
August 1998.
36 Agreement between BICC Ceat Cavi Srl and Sogem Italia dated 22 December
1997.
37 Agreement between BICC Ceat Cavi and Colata Continua Italiana dated 30
July 1997.
38 Agreement between BICC Cables New Zealand Limited and Kembla Metal
Products dated 8 December 1998.
39 The following BICC Rod customer contracts:
Delta/Draka
Essex
MG Metals
Xxxxxx
Xxxxxx
The following BICC Rod supply contracts:
MG Metal
264
SPCC
Noranda
Cominco
Mount Isa
Olympic Dam
Outukumpu
Mitsubishi
Inco
Falconbridge
Xxxx Xxxx
Pechiney
265
SCHEDULE 20
WARRANTIES NOT UPDATED TO COMPLETION
References to paragraphs set out below are to paragraphs of Schedule 8.
paragraph 2.2
paragraph 4.2.2(ii)
paragraph 5.3.1
paragraph 5.3.2
paragraph 5.4 (ii)
paragraph 5.7
paragraph 5.11
paragraph 6.1.6 (ii)
paragraph 6.2.2(ii)
paragraph 7
paragraph 8.4.1(iv)
paragraph 8.4.2(ii)(b)
paragraph 8.4.6
paragraph 9.4
266
SCHEDULE 21
VENDOR'S KNOWLEDGE
References to paragraphs set out below are to paragraphs of Schedule 8 (unless
otherwise specified)
-------------------------------------------------------------------------------------------------------
(1) (2)
WARRANTY PERSON
-------------------------------------------------------------------------------------------------------
All Warranties qualified by knowledge/awareness Xxxxxx Xxx, Finance Director, Energy Cables
of the Vendor, other than paragraphs 4.4, 6, 8.4 Europe
and 9
Xxxxxxx Xxxxxxxxxxx, Managing Director, CELCAT
Xxxxx Xxxxxxx, Legal Adviser, Energy Cables
Europe
Xxxxx Xxxxxxx, Manufacturing Director, Industrial
Cables Europe
Xxxxx Xxx, Managing Director, BICC Components
Xxxxx Xxxxxxxx, International Director, Energy
Cables Europe
Xxxxx Xxxxxx, Finance Director, BICC Cables New
Zealand
Xxxx Xxxxxxx, Managing Director, Industrial
Cables Europe
Xxxxxxx Xxxxxxx
Xxxxxxx Xxx, Finance Director, Asia Pacfic Cables
Xxxx Xxxxxxxx, Managing Director, Distribution
Cables, Wrexham
Xxxxx Xxxxxxx, BICC plc Company Solicitor
Xxx Xxxxxxx, Managing Director, Metals and
Pyrotenax
Xxxxx Xxxxxxx, Managing Director, BICC Cables
New Zealand
Xxxxxx Xxxx, Managing Director, Power Cables
Malaysia
Xxxxx Xxxxxx, Managing Director, Asia-Pacific
Cables
Xx Xxxx Xxxxxxxxxx
Xxxxxx Xxxxxx, Finance Director, BICC Ceat Cavi
Xxxx x'Xxxxxx, Finance Director, BICC Cables
-------------------------------------------------------------------------------------------------------
267
-------------------------------------------------------------------------------------------------------
(1) (2)
WARRANTY PERSON
-------------------------------------------------------------------------------------------------------
Espana
Xxxxx Xxxxxx, Managing and Development
Director, BICC plc
Xxxx Xxxxxx, Managing Director, Energy Cables
Europe
Massimo Geroli, Managing Director, BICC Ceat
Cavi
Xxxxxxx Xxxxxxx, Managing Director, BICC
Cables Espana
-------------------------------------------------------------------------------------------------------
paragraph 2 of Schedule 16 Xxxxxx Xxxxxx, Solicitor BICC plc
Xxxxxxxxx Xxxx, Environmental Manager, Energy
Cables Europe
-------------------------------------------------------------------------------------------------------
paragraph 6 Xxxx Xxxx, Personnel Director, Energy Cables
Europe
Xxxx Xxxxxxx, Director of Personnel, BICC plc
-------------------------------------------------------------------------------------------------------
paragraph 8.4 Xxxxx Xxxx, Intellectual Property Manager, BICC
plc
-------------------------------------------------------------------------------------------------------
Xxxx Xxxxxxxx, IT Manager, BICC Cables
-------------------------------------------------------------------------------------------------------
paragraph 9 Xxxxx Xxxxxxx, (as above)
Xxxxxx Xxxxxx (as above)
Xxxxx Xxxxxxx (as above)
-------------------------------------------------------------------------------------------------------
