Exhibit 10.1
8 MARCH 2011
LIZ CLAIBORNE, INC.
and
▇.▇. ▇▇▇▇▇▇ SECURITIES LTD.
and
▇▇▇▇▇▇▇ ▇▇▇▇▇ INTERNATIONAL
▇▇▇▇▇ & Overy LLP
CONTENTS
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1. Interpretation |
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2. Definitions |
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3. Authorisation |
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4. Appointment as Dealer Managers |
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5. Fees and Expenses |
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6. Representations and Warranties of the Company |
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7. Agreements |
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8. Conditions to the Obligations of the Dealer Managers |
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9. Indemnification |
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10. ▇▇▇-▇▇▇▇▇▇▇▇▇▇ |
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▇▇. ▇▇▇▇▇▇▇▇▇▇▇ |
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▇▇. Survival |
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13. Notices |
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14. Assignment |
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15. Governing Law and Jurisdiction |
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16. Miscellaneous |
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Schedule |
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Condition Precedent Documents |
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Signatures |
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THIS AGREEMENT is made on 8 March 2011
BETWEEN:
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LIZ CLAIBORNE, INC. of ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ (the Company);
and |
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▇.▇. ▇▇▇▇▇▇ SECURITIES LTD. and ▇▇▇▇▇▇▇ ▇▇▇▇▇ INTERNATIONAL (together, the Dealer Managers
and each a Dealer Manager, which expressions shall, for the purposes of this Agreement,
include any affiliate of ▇.▇. ▇▇▇▇▇▇ Securities Ltd. or ▇▇▇▇▇▇▇ ▇▇▇▇▇ International, as the
case may be). |
WHEREAS:
The Company has, in the Offer Materials (as defined below), invited holders of its €350,000,000 5
per cent. Notes due 2013 (the Notes) to tender their Notes for repurchase by the Company for cash
(the Offer) on the terms and subject to the conditions contained in the tender offer memorandum
prepared by the Company and dated 8 March 2011 including the documents incorporated by reference
therein (the Tender Offer Memorandum) and will also be inviting all Noteholders to approve the
Proposal (as defined in the Tender Offer Memorandum) (it being understood, for the avoidance of
doubt, that any information contained in any documents incorporated by reference in the Tender
Offer Memorandum shall be deemed to have been set forth in its entirety therein).
IT IS AGREED AS FOLLOWS:
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In this Agreement, unless the contrary is stated, terms and expressions defined in the
Tender Offer Memorandum shall have the same meanings in this Agreement. Any reference in
this Agreement to a Clause, subclause or Schedule is, unless otherwise stated, to a clause
or subclause of this Agreement or schedule hereto. |
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The terms which follow, when used in this Agreement, shall have the meanings indicated. |
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affiliate has the meaning given to that term by Rule 405 under the Securities Act; |
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Agreements means this Agreement, the Tender and Consent Agency Agreement and, if the
Extraordinary Resolution is passed, the Supplemental Agency Agreement; |
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Eligible Noteholder means a Noteholder to whom the Offer is being made pursuant to the offer
restrictions set out in the Tender Offer Memorandum; |
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Exchange Act means the United States Securities Exchange Act of 1934, as amended; |
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Group means the Company and its subsidiaries taken as a whole; |
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Offer Materials means the documentation which the Company has prepared or approved in
writing in connection with the Offer and/or the Proposal, including: |
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(a) |
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the Tender Offer Memorandum and any amendments or supplements thereto; |
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(b) |
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any announcement relating to the Offer and/or the Proposal prepared or approved
in writing by the Company (i) made by the issue of a press release to a Notifying News
Service, (ii) made by the delivery of a notice to the Clearing Systems for
communication to Direct Participants (including any Clearing System Notice and the
Notice), (iii) made on the website of the Luxembourg Stock Exchange, (iv) made on the
relevant Reuters International Insider Screen, and/or (v) obtainable from the Tender
Agent; and |
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(c) |
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such other announcements, press releases, notices, newspaper advertisements,
information and/or written material as may be prepared or approved in writing by the
Company for distribution and/or use in connection with the Offer and/or the Proposal, |
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but for the avoidance of doubt, references to the Offer Materials in Clauses 6 and 9 are to
each of (i) the Offer Materials (including the Tender Offer Memorandum) as at the Launch
Date, but not including any subsequent revision, supplement or amendment to, or
incorporation of information in, such Offer Materials and (ii) if revised, supplemented or
amended at the relevant date, the Offer Materials (including the Tender Offer Memorandum) as
so revised, supplemented or amended; |
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person means any individual, company, corporation, firm, partnership, joint venture,
association, organisation, state or agency of a state or other entity, whether or not having
separate legal personality; |
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Securities Act means the United States Securities Act of 1933, as amended; and |
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Tender and Consent Agency Agreement means the tender and consent agency agreement between
the Company and Deutsche Bank AG, London Branch as tender agent dated 8 March 2011. |
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| 3. |
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AUTHORISATION |
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The Company confirms that: |
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(a) |
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it has authorised the Dealer Managers to act on its behalf in connection with
the Offer and the Proposal and in accordance with this Agreement; and |
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(b) |
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it has prepared and approved the Offer Materials and authorises each Dealer
Manager to use the Offer Materials in connection with the Offer and the Proposal. |
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APPOINTMENT AS DEALER MANAGERS |
| 4.1 |
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The Company agrees that the Dealer Managers will act as exclusive dealer managers in
connection with the Offer and the Proposal and that the Company will not appoint any other
person in connection with the Offer or the Proposal to carry out the services specified in
this Agreement as services to be provided by the Dealer Managers. The Company hereby
authorises the Dealer Managers to act on its behalf in accordance with this Agreement on the
terms of the Offer Materials. |
| 4.2 |
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The Dealer Managers accept their appointment as exclusive dealer managers in connection with
the Offer and the Proposal and each Dealer Manager severally (but not jointly) agrees to
perform the following services in connection with the Offer and the Proposal: |
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(a) |
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to use its reasonable endeavours to identify and contact Eligible Noteholders
(in the case of the Offer) and Noteholders (in the case of the Proposal) and to present
the Offer and/or the Proposal, as applicable, to them on behalf of the Company
(including making copies of the Offer Materials available to such holders). It is
agreed that the Company has given full authority to each Dealer Manager to identify
Noteholders by such means as such Dealer Manager considers necessary or desirable (but
subject to applicable law and restrictions set
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out in the Tender Offer Memorandum and subject to Clause 4.9 of this Agreement)
including, without limitation, communicating with the Tender Agent; |
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(b) |
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to make such employees as such Dealer Manager considers reasonably necessary
available at all reasonable times during working hours to answer queries from, and
provide additional information to, Eligible Noteholders in connection with the Offer
and Noteholders in connection with the Proposal; |
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(c) |
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to provide assistance as and when requested by the Company in relation to any
decision to extend, re-open, amend, waive any condition of or terminate the Offer
and/or the Proposal; |
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(d) |
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to assist in the determination of the Repurchase Price (in consultation with
the Company) in the manner set out in the Offer Materials; |
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(e) |
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to make or arrange for the making of such announcements as are agreed between
the parties on behalf of the Company in connection with the Offer and/or the Proposal;
and |
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(f) |
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to provide such other assistance and undertake such other duties in connection
with the Offer and/or the Proposal as agreed in writing between the parties hereto from
time to time. |
| 4.3 |
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Each Dealer Manager agrees that, to the best of its knowledge and belief, all actions taken
by it as Dealer Manager have complied and will comply in all material respects with all laws,
rules and regulations of the State of New York, the State of Delaware and the United States of
America applicable to the Offer. |
| 4.4 |
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Each Dealer Manager may, in its sole discretion, continue to own or dispose of, in any manner
it may elect, any Notes it may beneficially own at the date of this Agreement or hereafter
acquire, in any such case subject to applicable law and, in particular, neither Dealer Manager
has any obligation to the Company pursuant to this Agreement, or otherwise, to tender or
refrain from tendering Notes beneficially owned by it pursuant to the Offer or to vote or
refrain from voting in respect of the Extraordinary Resolution. |
| 4.5 |
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The Company acknowledges that the Dealer Managers’ appointment hereunder is not an agreement
by either Dealer Manager to underwrite, place or purchase any securities or otherwise provide
any financing. |
| 4.6 |
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The Company agrees that, save as may be necessary to comply with applicable laws or
regulations, it shall not (prior to the Settlement Date) make any press release or cause any
notice, advertisement or similar information in connection with the Offer or the Proposal to
be published without the prior consent of the Dealer Managers (such consent not to be
unreasonably withheld or delayed). In addition, the Company agrees that it will not, save as
may be necessary to comply with applicable laws or regulations, file or publish any material
(including any press release, notice, advertisement or similar information) in connection with
the Offer or the Proposal that uses any form of the name of a Dealer Manager or refers to a
Dealer Manager or its relationship with the Company, without such Dealer Manager’s prior
written consent to the form of such reference. Each Dealer Manager agrees that it shall not
(prior to the Settlement Date) issue any press release or cause any notice, advertisement or
similar information relating to the Offer and/or the Proposal to be published without the
prior written consent of the Company (such consent not to be unreasonably withheld or
delayed). |
| 4.7 |
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The Company agrees that neither Dealer Manager will have any responsibility to it for the
results or outcome of any discussions with Noteholders relating to the Offer or the Proposal. |
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| 4.8 |
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Neither Dealer Manager, nor any of their respective affiliates, has any liability in respect
of any services or advice provided to the Company by persons other than itself. |
| 4.9 |
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The Company agrees to provide the Dealer Managers with all information and data concerning
the Company and its subsidiaries, to the extent reasonably available to the Company, and
access to the directors and management of the Company which the Company may reasonably
consider relevant or necessary to complete the Offer or the Proposal. |
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| 5. |
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FEES AND EXPENSES |
| 5.1 |
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On the Settlement Date, the Company shall promptly pay or cause to be paid to the Dealer
Managers, as compensation for their services as Dealer Managers, an amount in euro equal to
0.25 per cent. of the nominal amount of (i) if the Extraordinary Resolution is passed at the
Meeting or any adjourned Meeting, the Notes or (ii) if the Extraordinary Resolution is not
passed at the Meeting or any adjourned Meeting but the Company accepts any Notes for
repurchase pursuant to the Offer the Notes which are accepted for repurchase pursuant to the
Offer. Such amount shall be divided equally between the Dealer Managers and will be paid to
such account or accounts as shall be separately notified to the Company by the Dealer
Managers. |
| 5.2 |
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Whether or not the Extraordinary Resolution is passed and/or any Notes are tendered for
repurchase, the Company shall promptly pay or cause to be paid to each Dealer Manager the fees
and disbursements of their legal counsel plus VAT and all other costs and expenses incurred by
such Dealer Manager in connection with it serving as a Dealer Manager in relation to the Offer
and Proposal, including but not limited to (i) all expenses incurred in the preparation,
printing, mailing and publishing (as applicable) of the Tender Offer Memorandum, any other
Offer Materials, this Agreement; (ii) all advertising charges incurred in connection with the
Offer and the Proposal; (iii) all costs incurred in the publication of notices and other
communications with Noteholders necessary (in the reasonable opinion of the relevant Dealer
Manager) in connection with the Offer and the Proposal; and (iv) all other expenses incurred
by the relevant Dealer Manager in connection with the performance of its obligations hereunder
in connection with the Offer and Proposal including, without limitation, any out of pocket
expenses and those related to marketing conducted in connection herewith. |
| 5.3 |
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All payments by the Company under this Agreement shall be paid in accordance with the payment
instructions of the relevant Dealer Manager on the due date for payment or within 30 calendar
days of the relevant invoice without set-off or counterclaim, and free and clear of and
without deduction or withholding for or on account of, any present or future taxes, levies,
imports, duties, fees, assessments or other charges of whatever nature, imposed by the United
States, United Kingdom or by any department, agency or other political sub-division or taxing
authority thereof or therein, unless such deduction is required by law. In such event, the
Company will increase the amount paid so that the full amount of such payment is received by
the payee as if no such deduction or withholding had been made. |
| 5.4 |
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The Company shall be responsible for all of its own fees, expenses and other costs incurred
in connection with the Offer including, without limitation, its own legal fees, any fees and
expenses of the Tender Agent and any of the items referred to in Clause 5.2. |
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REPRESENTATIONS AND WARRANTIES OF THE COMPANY |
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The Company represents and warrants to and agrees with each Dealer Manager, on each of the
date of this Agreement, the date of the Meeting and any adjourned Meeting, the date of any
Supplemental Agency Agreement, the Settlement Date and each day falling between the date of
this Agreement and the Settlement Date as follows: |
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(a) |
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the Company has been duly incorporated and is validly existing and in good
standing under the laws of the State of Delaware with full power and authority to own,
lease and operate its properties and conduct its business in those jurisdictions in
which business is conducted by it except where failure to have such power and authority
would not, individually or in the aggregate, be reasonably expected to have a material
adverse effect on the business, properties, management, financial position,
stockholders’ equity, results of operations or prospects of the Company and its
subsidiaries taken as a whole or on the ability of the Company to perform its
obligations under the Agreements, the Offer and/or the Proposal (a Material Adverse
Effect), and the Company is able lawfully to comply with its obligations under the
Offer and the Proposal and to execute and perform its obligations under the Agreements; |
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(b) |
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the making and completion of the Offer and the Proposal and the execution and
delivery of the Agreements by the Company have been duly authorised by the Company, and
the same constitute or, in the case of any Supplemental Agency Agreement on due
execution and delivery by the Company, will constitute legal, valid and binding
obligations of the Company enforceable in accordance with their respective terms,
except to the extent enforceability may be limited by the effects of bankruptcy,
insolvency, reorganisation, moratorium and other similar laws affecting the rights of
creditors generally and general equitable principles; |
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(c) |
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the making and completion of the Offer and the Proposal, the execution and
delivery of the Agreements and the performance of the terms of the Offer and the
Proposal and the Agreements (i) will not infringe any law or regulation of the State of
Delaware or the federal laws of the United States (including, without limitation,
Sections 10 and 14 of the Exchange Act and Regulation 14E and Rules 10b-5 promulgated
thereunder) or; (ii) so far as the Company is aware, will not infringe any other law or
regulation in any respect which is relevant in the context of the Offer and/or the
Proposal; (iii) are not contrary to the provisions of the constitutional documents of
the Company and; (iv) will not result in any breach of the terms of, or constitute a
default under, any instrument, agreement or order to which the Company is a party or by
which it or its property is bound which is material in the context of the Offer and/or
the Proposal except, in the case of subclauses (i), (ii) or (iv) above, for such
infringements, breaches or defaults as would not reasonably be expected to have a
Material Adverse Effect; |
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(d) |
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all consents and approvals of any court, government department or other
regulatory body required by the Company for (i) the making and completion of the Offer
and the Proposal (including, without limitation, the distribution of the Offer
Materials) and (ii) the execution and delivery of the Agreements by the Company and the
performance of the terms of the Agreements and the Offer and the Proposal have been
obtained and are, unconditional and in full force and effect; |
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(e) |
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the Offer Materials contain all the information required to comply with all
applicable requirements of the laws and regulations of those jurisdictions in which (i)
they are or will be distributed or (ii) solicitations of tenders, acceptances or votes
in respect of the Extraordinary Resolution from Noteholders are or will be made or
received pursuant to the Offer or the Proposal, as applicable, and otherwise comply
with such laws and regulations; |
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(f) |
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neither the Company nor any of its subsidiaries is involved in any legal,
governmental, administrative or arbitration proceedings (including any such proceedings
which are pending or threatened of which the Company is aware), except as would not
reasonably be expected to have a Material Adverse Effect; |
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(g) |
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(i) the Offer Materials contain all information which is material in the
context of the Offer and the Proposal (including all information which, according to
the particular nature of the Company, the Group, the Offer and the Proposal, is
necessary to enable investors and their investment advisers to make an informed
assessment of the Offer and the Proposal), (ii) the Offer Materials do not contain any
untrue statement of a material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they were
made, not misleading (iii) the statements of fact contained in the Offer Materials are
in every material particular true and accurate and not misleading and that there are no
other facts in relation to the Company, the Group, the Notes, the Offer and the
Proposal the omission of which would in the context of the Offer and/or the Proposal
make any statement in the Offer Materials misleading and (iv) the statements of
intention, opinion, belief or expectation contained in the Offer Materials are honestly
and reasonably made or held; |
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(h) |
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since the date of the last audited consolidated financial statements of the
Group, there has been no change or development other than as disclosed in or
incorporated by reference in the Tender Offer Memorandum that is reasonably likely to
result in a material adverse change in or affecting the condition (financial or
otherwise), prospects, results of operations or general affairs of the Company or of
the Group respectively; |
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(i) |
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neither the Company nor any of its subsidiaries or, to the knowledge of the
Company, any director, officer, agent, employee or affiliate of the Company or any of
its subsidiaries are currently the subject of any U.S. sanctions administered by the
U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC); |
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(j) |
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neither the Company nor any of its subsidiaries, nor, to the knowledge of the
Company, any director, officer, agent, employee or affiliate of the Company or any of
its subsidiaries is aware of or has taken any action, directly or indirectly, that
would result in a violation by such persons of the U.S. Foreign Corrupt Practices Act
of 1977, as amended, and the rules and regulations thereunder (together the FCPA),
including, without limitation, making use of the mails or any means or instrumentality
of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or
authorisation of the payment of any money, or other property, gift, promise to give, or
authorisation of the giving of anything of value to any “foreign official” (as such
term is defined in the FCPA) or any foreign political party or official thereof or any
candidate for foreign political office, in contravention of the FCPA and the Company,
its subsidiaries and, to the knowledge of the Company, its affiliates have conducted
their businesses in compliance with the FCPA and have instituted and maintain policies
and procedures designed to ensure, and which are reasonably expected to continue to
ensure, continued compliance therewith; |
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(k) |
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the operations of the Company and its subsidiaries are and have been conducted
at all times in compliance with applicable financial record keeping and reporting
requirements of the Currency and Foreign Transactions Reporting Act of 1970, as
amended, the money laundering statutes of all applicable jurisdictions, the rules and
regulations thereunder and any related or similar rules, regulations or guidelines
issued, administered or enforced by any governmental agency (collectively, the Money
Laundering Laws) and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company or any
of its subsidiaries with respect to the Money Laundering Laws is pending or, to the
best knowledge of the Company, threatened; |
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(l) |
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the Company has not paid or agreed to pay to any person (other than the Dealer
Managers) any compensation for (i) the solicitation of tenders or acceptances from
Noteholders pursuant to the Offer or (ii) votes in respect of the Extraordinary
Resolution from Noteholders pursuant to the Proposal (except as contemplated by the
Agreements and, in the
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case of Noteholders, the Tender Offer Memorandum), and none of the Company and its
affiliates have, during the period from the Launch Date to the Settlement Date,
bought or agreed to buy any Notes (except as contemplated by the Agreements and the
Tender Offer Memorandum); |
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(m) |
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the Company has not taken (other than as envisaged by, and disclosed in, the
Offer Materials), directly or indirectly, any action designed to cause or to result in,
or that has constituted or that might reasonably be expected to constitute, the
stabilisation or manipulation of the price of any security of the Company to facilitate
the Offer or the Proposal, or encourage tenders of Notes in or acceptances of the Offer
or votes in respect of the Extraordinary Resolution by Noteholders; |
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(n) |
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the Company is not in possession of any price sensitive information that is not
publicly available and that is material to Noteholders in the context of the Offer or
the Proposal; |
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(o) |
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no stamp or other duty or similar tax is assessable or payable in, and no
withholding or deduction for or on account of any taxes, duties, assessments or
governmental charges of whatever nature is required to be made by or within, the United
States of America or by any political sub-division of or authority therein or thereof
having power to tax, in each case in connection with the authorisation, execution or
delivery of the Agreements or with the making of the Offer and the Proposal and the
performance of the Company’s obligations under the Agreements and the Offer and the
Proposal; |
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(p) |
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no event or circumstance has occurred which would (whether or not with the
lapse of time and/or the giving of notice and/or the fulfilment of any other
requirement could) constitute an “Event of Default” under the terms and conditions of
the Notes, assuming adoption of the Proposal and except for any such event or
circumstance that is disclosed in the Tender Offer Memorandum; |
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(q) |
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the Company has made appropriate arrangements with the Tender Agent and the
Clearing Systems to allow Noteholders to offer to tender their Notes pursuant to the
Offer and to vote pursuant to the Proposal; and |
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(r) |
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assuming the completion of the offering of the New Notes (as defined in the
Tender Offer Memorandum), the Company will have sufficient funds to enable it to pay
and will pay promptly, in each case on the Settlement Date and in accordance with the
terms and conditions of the Offer, the Proposal, the Offer Materials and the
Agreements, the Repurchase Price, the Early Tender Payment and/or the Ineligible
Noteholder Early Consent Payment, as applicable, for, and the Accrued Interest Payment
in respect of, the Notes tendered pursuant to the Offer and accepted for repurchase by
the Company, and the fees and expenses payable hereunder. |
| 7.1 |
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The Company agrees with each Dealer Manager as follows: |
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(a) |
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subject to Clause 11, it will, if necessary, produce such supplements to the
Offer Materials as may reasonably be required to ensure compliance with its obligations
under Clauses 6(e) and 6(g); |
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(b) |
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it will furnish to the Dealer Managers in electronic form (or in such other
form as may be agreed between the Company and the Dealer Managers from time to time),
without charge, during the period beginning on the date of this Agreement and
continuing to, and including,
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the Settlement Date, the Offer Materials and any amendments and supplements thereto
which have been prepared by the Company as the Dealer Managers may reasonably
request; |
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(c) |
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it will not amend or supplement the Offer Materials without giving prior notice
thereof to, and consulting with, the Dealer Managers; |
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(i) |
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on the date of this Agreement, procure the instigation of the
delivery of the Clearing System Notices by the Clearing Systems to each Direct
Participant; and |
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(ii) |
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upon request by any Noteholder (subject, in the case of the
Offer, to the offer and distribution restrictions set out in the Tender Offer
Memorandum), procure the delivery to such Noteholder of a copy of the Tender
Offer Memorandum, together with such other Offer Materials as are reasonably
requested; |
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(e) |
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it will not extend, re-open, amend, waive any condition of or terminate the
Offer and/or the Proposal without giving prior notice thereof to, and consulting with,
the Dealer Managers; |
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(f) |
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it will not, and will procure that its subsidiaries will not, acquire (through
purchase or otherwise) any Notes on or before the Settlement Date, other than pursuant
to the Offer; |
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(g) |
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it will pay promptly (upon written notice thereof, in the case of enforcement
or admissibility in evidence as referred to below), and in any event before any penalty
becomes payable, any stamp, documentary, registration or similar duty or tax (including
any stamp duty reserve tax) payable in connection with the entry into, performance,
enforcement or admissibility in evidence, as applicable, of the Agreements, the Offer
and the Proposal (other than any taxes for which Noteholders are themselves liable, as
described in the Tender Offer Memorandum) together with any related interest and
penalties; |
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(h) |
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it will advise the Dealer Managers, promptly upon becoming aware of the
occurrence thereof, of (i) the occurrence of any event, or the discovery of any fact,
the occurrence or existence of which, in the reasonable judgment of the Company or its
counsel, would require the making of any change in or supplement to any of the Offer
Materials then being used or would cause any representation or warranty contained in
this Agreement to be untrue or inaccurate or could cause the Company to wish to extend,
re-open, amend, waive any condition of or terminate the Offer and/or the Proposal, (ii)
the issuance by any governmental or regulatory authority of any comment or order or the
taking of any other action concerning the Offer or the Proposal or (iii) any material
developments in connection with the Offer or the Proposal, including, without
limitation, the commencement of any legal proceedings concerning the Offer or the
Proposal; |
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(i) |
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it will deliver, register and furnish such documents, instruments, information
and undertakings to, and obtain any consent from, any relevant agency, authority,
central bank, department, government, minister, official, public or statutory
corporation, self-regulating organisation or stock exchange as may be necessary from
time to time for it to comply with all relevant laws, guidelines and directives in
relation to the conduct and completion of the Offer and the transactions contemplated
thereby, the Agreements or the Proposal; |
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(j) |
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it will pay promptly on the Settlement Date, (1) in accordance with the terms
and conditions of the Offer, the Offer Materials and the Agreements, the Repurchase
Price and (2) fees and expenses payable to each Dealer Manager pursuant to Clause 5;
and |
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(k) |
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it will comply with all applicable laws and regulations in connection with the
Offer, the Proposal and the transactions contemplated hereby and thereby. |
| 7.2 |
|
The Company acknowledges and agrees that (a) each Dealer Manager has been retained solely to
provide the services set forth herein, and in rendering such services each Dealer Manager
shall act as an independent contractor and not as a financial advisor or as an agent or
fiduciary to the Company or any other person, and any duties arising out of its engagement
hereunder shall be owed to the Company only; (b) each Dealer Manager may perform the services
contemplated by this Agreement in conjunction with its affiliates; (c) each Dealer Manager is
a securities firm engaged in securities trading and brokerage activities and providing
investment banking and financial advisory services and, in the ordinary course of business,
each Dealer Manager and its affiliates may at any time hold long or short positions, and may
trade or otherwise effect transactions, for their own account or the accounts of customers, in
debt or equity securities of the Company, its affiliates or other entities that may be
involved in the transactions contemplated hereby, and each Dealer Manager and its affiliates
may continue to pursue any such business interests and activities without any specific prior
disclosure to the Company and shall not be required to account for or disclose to the Company
any profit, charge, commission or other remuneration arising in respect of such transactions;
(d) in addition to its acting as dealer manager in respect of the Offer and the Proposal, each
Dealer Manager and/or its affiliates may from time to time have provided, and may continue to
provide, various investment banking, lending, commercial banking, financial advisory and
fiduciary services for the Company and/or its affiliates (including, without limitation, in
connection with the proposed issue of the New Notes (as defined in the Tender Offer
Memorandum)); (e) each Dealer Manager may from time to time perform various investment
banking, commercial banking, financial advisory and fiduciary services for other clients and
customers who may have conflicting interests with respect to the Company and/or its
affiliates, the Offer or the Proposal; (f) neither Dealer Manager is an adviser as to legal,
tax, accounting or regulatory matters in any jurisdiction and the Company must consult with
its own advisers concerning such matters and will be responsible for making their own
independent investigation and appraisal of the transactions contemplated hereby, and neither
Dealer Manager shall have any responsibility or liability to the Company with respect to any
advice given as to legal, tax, accounting or regulatory matters; and (g) the obligations of
the Dealer Managers under this Agreement are several and not joint. |
| |
| 8. |
|
CONDITIONS TO THE OBLIGATIONS OF THE DEALER MANAGERS |
| 8.1 |
|
The obligations of the Dealer Managers under this Agreement are at all times subject to the
conditions that: |
| |
(a) |
|
on each of the date of this Agreement, the Settlement Date and each day falling
between the date of this Agreement and the Settlement Date, the representations and
warranties of the Company set out in Clause 6 being true, accurate and correct and the
performance, on or prior to each such date, by the Company of its obligations under
this Agreement; |
| |
(b) |
|
all consents and approvals of any court, government department or other
regulatory body required for (i) the making and completion of the Offer and the
Proposal (including, without limitation, the distribution of the Offer Materials) and
(ii) the execution and delivery of the Agreements by the Company and the performance of
the terms of the Agreements, the Offer and the Proposal shall have been obtained and
remain in full force and effect; |
| |
(c) |
|
prior to the Settlement Date, the Company shall have delivered to the Dealer
Managers such further information, certificates and documents as the Dealer Managers
may reasonably request relating to the Offer and the Proposal or otherwise relating to
the matters contemplated hereby; and |
9
| |
(d) |
|
the Company shall have procured the delivery to the Dealer Managers on the date
hereof of the conditions precedent documentation contained in the Schedule to this
Agreement. |
| |
(a) |
|
any of the conditions specified in this Clause 8 shall not have been fulfilled
when and as provided in this Agreement; or |
| |
(b) |
|
any of the representations, warranties, undertakings or agreements given or
made by the Company set forth in this Agreement is untrue or is breached, |
| |
|
this Agreement and all obligations of a Dealer Manager hereunder may be cancelled in
relation to the Offer and the Proposal at, or at any time prior to, the time of settlement
on the Settlement Date by the relevant Dealer Manager (on behalf of itself only). |
| |
| 9. |
|
INDEMNIFICATION |
| 9.1 |
|
Without prejudice to the other rights or remedies of the Dealer Managers, the Company agrees
to indemnify on demand and hold harmless each Dealer Manager and any of its affiliates,
directors, officers, employees, agents or controlling persons (within the meaning of section
15 of the Securities Act and Section 20 of the Exchange Act) (together with the Dealer
Manager, each a Relevant Party) from and against any liability, damages, cost, loss or expense
(including, without limitation, reasonable legal fees, costs and expenses) (a Loss) arising
out of, in connection with, or based on: |
| |
(a) |
|
any actual or alleged breach of the representations, warranties and
undertakings contained in, or made or deemed to be made by the Company under, this
Agreement or pursuant to the Offer or the Proposal; or |
| |
(b) |
|
any untrue statement or alleged untrue statement of a material fact contained
in the Tender Offer Materials (or any amendment or supplement thereto), or the omission
or alleged omission therefrom of a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading, |
| |
|
and to reimburse each Dealer Manager and each such affiliate, director, officer, employee,
agent or controlling person for any and all reasonable and documented expenses (including
the fees and disbursements of one counsel chosen by the relevant Dealer Manager, in addition
to any local counsel) as such expenses are reasonably incurred by such Dealer Manager or
such affiliate, director, officer, employee, agent or controlling person in connection with
investigating, defending, settling, compromising or paying any such Loss. |
| 9.2 |
|
Promptly after receipt by an indemnified party under this Clause 9 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to
be made against an indemnifying party under this Clause 9, notify the indemnifying party in
writing of the commencement thereof; provided that the failure to so notify the indemnifying
party will not relieve it from any liability which it may have to any indemnified party under
this Clause 9 except to the extent that it has been materially prejudiced by such failure
(through the forfeiture of substantive rights and defences) and shall not relieve the
indemnifying party from any liability that the indemnifying party may have to an indemnified
party other than under this Clause 9. In case any such action is brought against any
indemnified party and such indemnified party seeks or intends to seek indemnity from an
indemnifying party, the indemnifying party will be entitled to participate in and, to the
extent that it shall elect, jointly with all other indemnifying parties similarly notified, by
written notice delivered to the indemnified party promptly after receiving the aforesaid
notice from such indemnified party, to assume the defence thereof with counsel reasonably
satisfactory to such indemnified party; provided, however, if the defendants in any such
action include both the
|
10
| |
|
indemnified party and the indemnifying party and the indemnified party shall have reasonably
concluded, with the advice of counsel, that a conflict may arise between the positions of
the indemnifying party and the indemnified party in conducting the defence of any such
action or that there may be legal defences available to it and/or other indemnified parties
which are different from or additional to those available to the indemnifying party, the
indemnified party or parties shall have the right to select separate counsel to assume such
legal defences and to otherwise participate in the defence of such action on behalf of such
indemnified party or parties. Upon receipt of notice from the indemnifying party to such
indemnified party of such indemnifying party’s election so to assume the defence of such
action and approval by the indemnified party of counsel, the indemnifying party will not be
liable to such indemnified party under this Clause 9 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defence thereof
unless (i) the indemnified party shall have employed separate counsel in accordance with the
proviso to the immediately preceding sentence (it being understood, however, that the
indemnifying party shall not be liable for the expenses of more than one separate counsel
(together with local counsel (in each jurisdiction)), which shall be selected by the Dealer
Managers (in the case of counsel representing the Dealer Managers or their related persons),
representing the indemnified parties who are parties to such action) or (ii) the
indemnifying party shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of commencement of the
action, in each of which cases the fees and expenses of counsel shall be at the expense of
the indemnifying party. |
| 9.3 |
|
The indemnifying party under this Clause 9 shall not be liable for any settlement of any
proceeding effected without its written consent, which will not be unreasonably withheld, but
if settled with such consent or if there be a final judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage,
liability or expense by reason of such settlement or judgment. No indemnifying party shall,
without the prior written consent of the indemnified party, effect any settlement, compromise
or consent to the entry of judgment in any pending or threatened action, suit or proceeding in
respect of which any indemnified party is or could have been a party and indemnity was or
could have been sought hereunder by such indemnified party, unless such settlement, compromise
or consent (i) includes an unconditional release of such indemnified party from all liability
on claims that are the subject matter of such action, suit or proceeding and (ii) does not
include any statements as to or any findings of fault, culpability or failure to act by or on
behalf of any indemnified party. |
| 9.4 |
|
If the indemnification provided for in the foregoing provisions of this Clause 9 is for any
reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified
party in respect of any losses, claims, damages, liabilities or expenses referred to therein,
then the indemnifying party shall contribute to the aggregate amount paid or payable by such
indemnified party, as incurred, as a result of any losses, claims, damages, liabilities or
expenses referred to therein (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company, on the one hand, and the Dealer Managers or a Relevant
Party, on the other hand, from the Offer, the Proposal or the transactions contemplated
pursuant to this Agreement or (ii) if the allocation provided by subclause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in subclause (i) above but also the relative fault of the
Company, on the one hand, and the Dealer Managers or such Relevant Party, on the other hand,
in connection with the statements or omissions or inaccuracies in the representations and
warranties herein which resulted in such losses, claims, damages, liabilities or expenses, as
well as any other relevant equitable considerations. The relative benefits received by the
Company, on the one hand, and the Dealer Managers or a Relevant Party, on the other hand, in
connection with the Offer, the Proposal or the transactions contemplated pursuant to this
Agreement shall be deemed to be in the same respective proportions as the principal amount of
the Notes the subject of the Offer and the Proposal, bears to the fees actually received by
the Dealer Managers with respect to the Offer and the Proposal. The relative fault of the
Company, on the one hand, and the Dealer Managers or such Related Party, on
|
11
| |
|
the other hand, shall be determined by reference to, among other things, whether any such
untrue or alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by the Company, on the one hand, or
the Dealer Managers or such Related Party, on the other hand, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission or inaccuracy. |
| |
|
The amount paid or payable by a party as a result of the losses, claims, damages,
liabilities and expenses referred to above shall be deemed to include, subject to the
limitations set forth in this Clause 9, any legal or other fees or expenses reasonably
incurred by such party in connection with investigating or defending any action or claim.
The provisions set forth in this Clause 9 with respect to notice of commencement of any
action shall apply if a claim for contribution is to be made under this subclause 9.4;
provided, however, that no additional notice shall be required with respect to any action
for which notice has been given under the foregoing provisions of Clause 9 hereof for
purposes of indemnification. |
| |
|
The Company and the Dealer Managers agree that it would not be just and equitable if
contribution pursuant to this Clause 9 were determined by pro rata allocation (even if the
Dealer Managers were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to in this
Clause 9. |
| |
| 10. |
|
NON-DISCLOSURE |
| |
|
The Company shall not disclose the provisions of this Agreement to any other person without
the prior written consent of the Dealer Managers, unless the Company reasonably determines
that the failure to make such disclosure would violate applicable law or regulations or is
required to be disclosed by applicable law or regulations (including pursuant to any
securities laws or listing requirements) in which case the Company shall promptly notify the
Dealer Managers of the proposed disclosure and the reasons therefor. |
| |
| 11. |
|
TERMINATION |
| |
|
This Agreement shall terminate (i) on the Settlement Date or (ii) upon written notice by the
Company to the Dealer Managers to terminate this Agreement at any time in the event that the
Company has publicly announced the termination of the Offer and the Proposal or (iii) upon
withdrawal by the Dealer Managers, as a result of the failure of any of the conditions to
the obligations of the Dealer Managers set out in Clause 8, in each case subject to Clause
12. |
| |
|
Clauses 6 and 9 above shall continue in full force and effect in relation to each Dealer
Manager notwithstanding: |
| |
(a) |
|
its actual or constructive knowledge with respect to any of the matters
referred to in the specific representations and warranties; |
| |
(b) |
|
the completion of the arrangements set out in this Agreement; or |
| |
(c) |
|
the termination of this Agreement. |
| |
|
Without prejudice to the generality of the foregoing, the obligations of the Company
pursuant to Clauses 5, 9 and 10, any rights that have accrued to the Dealer Managers in
respect of Clauses 6 or 7 prior to any termination or cancellation of this Agreement shall
survive any termination or cancellation of this Agreement. |
12
| |
|
All communications shall be in writing and effective only on receipt and, if sent to the
Dealer Managers, will be mailed, delivered or telefaxed to: |
▇.▇. ▇▇▇▇▇▇ Securities Ltd.
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Fax: ▇▇▇ ▇▇ ▇▇▇▇ ▇▇▇▇
Attention: Head of High Yield Syndicate and Head of EMEA Debt Capital Markets Group, Legal
▇▇▇▇▇▇▇ ▇▇▇▇▇ International
▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Fax: ▇▇▇ ▇▇▇ ▇▇▇ ▇▇▇▇
Attention: Liability Management Group — ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
| |
|
and if sent to the Company, will be mailed, delivered or telefaxed to: |
Liz Claiborne, Inc.
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇
Fax: (▇▇▇) ▇▇▇ ▇▇▇▇
Attention: General Counsel
With a copy to:
Liz Claiborne, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇
▇▇ ▇▇▇▇▇
Fax: (▇▇▇) ▇▇▇ ▇▇▇▇
Attention: Vice President — Finance and Treasurer
| |
|
The Company may not assign or transfer its rights or obligations under this Agreement, in
whole or in part, without the prior written consent of the Dealer Managers (such consent not
to be unreasonably withheld or delayed) and any purported assignment or delegation without
such consent shall be void. |
13
| 15. |
|
GOVERNING LAW AND JURISDICTION |
| 15.1 |
|
This Agreement shall be governed by and construed in accordance with the internal laws of the
State of New York applicable to agreements made and to be performed in such State without
regard to conflicts of law principles thereof. |
| 15.2 |
|
Any legal suit, action or proceeding arising out of or based upon this Agreement or the
transactions contemplated hereby (Related Proceedings) may be instituted in the federal courts
of the United States of America located in the City and County of New York or the courts of
the State of New York in each case located in the City and County of New York (collectively,
the Specified Courts), and each party irrevocably submits to the exclusive jurisdiction
(except for suits, actions, or proceedings instituted in regard to the enforcement of a
judgment of any Specified Court in a Related Proceeding, as to which such jurisdiction is
non-exclusive) of the Specified Courts in any Related Proceeding. Service of any process,
summons, notice or document by mail to such party’s address set forth above shall be effective
service of process for any Related Proceeding brought in any Specified Court. The parties
irrevocably and unconditionally waive any objection to the laying of venue of any Specified
Proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to
plead or claim in any Specified Court that any Related Proceeding brought in any Specified
Court has been brought in an inconvenient forum. |
| 15.3 |
|
With respect to any Related Proceeding, each party irrevocably waives, to the fullest extent
permitted by applicable law, all immunity (whether on the basis of sovereignty or otherwise)
from jurisdiction, service of process, attachment (both before and after judgment) and
execution to which it might otherwise be entitled in the Specified Courts, and with respect to
any Related Judgment, each party waives any such immunity in the Specified Courts or any other
court of competent jurisdiction, and will not raise or claim or cause to be pleaded any such
immunity at or in respect of any such Related Proceeding or Related Judgment, including,
without limitation, any immunity pursuant to the United States Foreign Sovereign Immunities
Act of 1976, as amended. |
| |
| 16. |
|
MISCELLANEOUS |
| 16.1 |
|
Time shall be of the essence of this Agreement. |
| 16.2 |
|
The heading to each clause is included for convenience only and shall not affect the
construction of this Agreement. |
| 16.3 |
|
This Agreement may be executed in any number of counterparts, all of which, taken together,
shall constitute one and the same agreement and any party may enter into this Agreement by
executing a counterpart. Signed facsimile copies of this Agreement will legally bind the
parties to the same extent as original documents. |
| 16.4 |
|
This Agreement is for the exclusive benefit of the parties hereto, and their respective
permitted successors and assigns hereunder, and shall not be deemed to give any legal or
equitable right, remedy or claim to any other person whatsoever. |
| 16.5 |
|
If any provision of this Agreement is found unenforceable by a court of competent
jurisdiction, such unenforceable provision shall not affect the other provisions but shall be
deemed modified to the extent necessary to render it enforceable, preserving to the fullest
extent permissible the intent of the parties. |
| 16.6 |
|
No waiver of any term, condition or obligation of this Agreement shall be valid unless in
writing and signed by the waiving party. No failure or delay by a party hereto at any time to
require the other party to perform strictly in accordance with the terms hereof shall preclude
a party from requiring performance by the other party at any later time. No waiver of any one
or several of the terms,
|
14
| |
|
conditions or obligations of this Agreement and no partial waiver thereof, shall be
construed as a waiver of any of the other terms, conditions or obligations of this
Agreement. This Agreement may not be amended, changed or modified in any fashion except by a
written instrument signed by all of the parties. |
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first
before written.
15
SCHEDULE
CONDITION PRECEDENT DOCUMENTS
| 1. |
|
Legal opinion addressed to the Dealer Managers, in such form and with such content as the
Dealer Managers may reasonably require, from ▇▇▇▇, Weiss, Rifkind, ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇ LLP,
legal advisers to the Company as to the laws of the United States, the State of New York and
the State of Delaware. |
| 2. |
|
Executed copy of the Tender and Consent Agency Agreement. |
16
SIGNATURES
LIZ CLAIBORNE, INC.
By: /s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇.▇. ▇▇▇▇▇▇ SECURITIES LTD.
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ INTERNATIONAL
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇
Managing Director
17
