Purchase Agreement (2006)Full Document 

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                               PURCHASE AGREEMENT

                                  BY AND AMONG

                               DRAKA HOLDING N.V.,

                       DRAKA MEXICO HOLDING, S.A. DE C.V.

                         INTERNATIONAL WIRE GROUP, INC.

                                       AND

                             WIRE TECHNOLOGIES, INC.





                            Dated as of June 30, 2006














                                TABLE OF CONTENTS

                                                                            PAGE



ARTICLE I     DEFINITIONS.....................................................1

         1.1   Certain Definitions............................................1

         1.2   Other Definitional and Interpretive Matters....................7

ARTICLE II    SALE AND PURCHASE OF EQUITY INTERESTS...........................8

         2.1   Sale and Purchase of Equity Interests..........................8

ARTICLE III   PURCHASE PRICE..................................................9

         3.1   Purchase Price.................................................9

         3.2   Payment of Purchase Price......................................9

ARTICLE IV    CLOSING.........................................................9

         4.1   Closing Date...................................................9

         4.2   Termination....................................................9

ARTICLE V     REPRESENTATIONS AND WARRANTIES OF
              THE SELLER PARENT AND THE SELLER................................9

         5.1   Organization and Good Standing................................10

         5.2   Authorization of Agreement....................................10

         5.3   Conflicts; Consents of Third Parties..........................10

         5.4   Capitalization................................................11

         5.5   Subsidiaries..................................................12

         5.6   Books and Records.............................................12

         5.7   Financial Statements..........................................12

         5.8   No Undisclosed Liabilities....................................12

         5.9   Absence of Certain Developments...............................12

         5.10  Taxes.........................................................13

         5.11  Intentionally Omitted.........................................13

         5.12  Intentionally Omitted.........................................13

         5.13  Real Property.................................................13

         5.14  Tangible Personal Property....................................14

         5.15  Intellectual Property.........................................14

         5.16  Material Contracts............................................15

         5.17  Employee Benefits Plans.......................................16



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         5.18  Labor.........................................................17

         5.19  Litigation....................................................17

         5.20  Compliance with Laws; Permits.................................18

         5.21  Environmental Matters.........................................18

         5.22  Financial Advisors............................................19

         5.23  Insurance.....................................................19

         5.24  Corrupt Practices.............................................19

         5.25  Minute Books..................................................19

         5.26  Product Liability; Product Warranty...........................19

         5.27  No Other Representations or Warranties; Schedules.............20

ARTICLE VI    REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS...............20

         6.1   Organization and Good Standing................................20

         6.2   Authorization of Agreement....................................20

         6.3   Conflicts; Consents of Third Parties..........................21

         6.4   Litigation....................................................21

         6.5   Investment Intention..........................................22

         6.6   Financial Advisors............................................22

         6.7   Financial Capability..........................................22

         6.8   Condition of the Business.....................................22

ARTICLE VII   COVENANTS......................................................22

         7.1   Conduct of the Business Pending the Closing...................22

         7.2   Intentionally Omitted.........................................24

         7.3   Preservation of Records.......................................24

         7.4   Publicity.....................................................24

         7.5   Use of Name...................................................24

         7.6   Competition; Confidentiality..................................25

         7.7   Intercompany Accounts.........................................26

         7.8   Post-Closing..................................................26

ARTICLE VIII  CONDITIONS TO CLOSING..........................................27



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         8.1   Conditions Precedent to Obligations of the Purchasers.........27

         8.2   Conditions Precedent to Obligations of the
               Seller Parent and the Seller..................................28

         8.3   Frustration of Closing Conditions.............................29

ARTICLE IX    INDEMNIFICATION................................................29

         9.1   Survival of Representations, Warranties and Covenants.........29

         9.2   Indemnification by the Seller Parent and the Seller...........29

         9.3   Indemnification by the Purchasers.............................30

         9.4   Indemnification Procedures....................................30

         9.5   Certain Limitations on Indemnification........................32

         9.6   Calculation of Losses.........................................32

         9.7   Tax Treatment of Indemnity Payments...........................33

         9.8   Exclusive Remedy..............................................33

ARTICLE X     TAX MATTERS....................................................33

         10.1  Tax Indemnification...........................................33

         10.2  Refunds.......................................................36

         10.3  Disputes......................................................36

         10.4  Payment of Sales, Use or Similar Taxes........................36

         10.5  Tax Treatment of Indemnity Payments...........................37

         10.6  Exclusivity...................................................37

ARTICLE XI    MISCELLANEOUS..................................................37

         11.1  Expenses......................................................37

         11.2  Jurisdiction; Consent to Service of Process...................37

         11.3  Entire Agreement; Amendments and Waivers......................38

         11.4  Governing Law.................................................39

         11.5  Notices.......................................................39

         11.6  Severability..................................................40

         11.7  Binding Effect; Assignment....................................40

         11.8  Non-Recourse..................................................40

         11.9  Counterparts..................................................40



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         11.10 Further Assurances............................................40

















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SCHEDULES

Schedule 1.1(a)                 Knowledge of the Seller Parent
Schedule 5.3(a)                 Conflicts
Schedule 5.3(b)                 Consents
Schedule 5.4(a)                 Equity Ownership
Schedule 5.4(b)                 Capitalization
Schedule 5.4(c)                 Liens
Schedule 5.6                    Board of Managers
Schedule 5.7                    Balance Sheet
Schedule 5.9                    Absence of Certain Changes
Schedule 5.13                   Real Property
Schedule 5.14(a)                Tangible Personal Property
Schedule 5.14(b)                Equipment List
Schedule 5.15(a)                Registered Intellectual Property
Schedule 5.15(b)                Intellectual Property Exceptions
Schedule 5.16(a)                Material Contracts
Schedule 5.16(b)(i)             Change of Control
Schedule 5.16(b)(ii)            Contractual Exceptions
Schedule 5.17(a)                Employee Benefit Plans
Schedule 5.17(b)                Unfunded Pension Liabilities
Schedule 5.17(c)                Acceleration of Benefits
Schedule 5.18(a)                Labor and Collective Bargaining Agreements
Schedule 5.18(b)                Labor
Schedule 5.19                   Litigation
Schedule 5.20                   Permits
Schedule 5.21                   Environmental Matters
Schedule 5.22                   Financial Advisors
Schedule 5.23                   Insurance
Schedule 5.24                   Corrupt Practices
Schedule 5.26                   Product Liability; Product Warranty
Schedule 6.3(a)                 No Conflicts
Schedule 7.1                    Conduct of Business




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                               PURCHASE AGREEMENT

           This PURCHASE AGREEMENT (the "Agreement"), dated as of June 30, 2006,
by and among Draka Holding N.V., a public limited company existing under the
laws of The Netherlands ("Draka Holdings"), Draka Mexico Holding, S.A. de C.V.,
a sociedad anonima de capital variable organized under the laws of Mexico
("Draka Mexico", together with "Draka Holdings", individually, a "Purchaser" and
collectively, the "Purchasers"), International Wire Group, Inc., a Delaware
corporation (the "Seller Parent"), and Wire Technologies, Inc., an Indiana
corporation (the "Seller").

                              W I T N E S S E T H:

                  WHEREAS, (i) IWG Services Company, S. de R.L. de C.V., a
sociedad de responsabilidad limitada de capital variable organized under the
laws of Mexico ("IWG Services"), is owned by the Seller Parent and the Seller,
(ii) Cables Durango, S. de R.L. de C.V., a sociedad de responsabilidad limitada
de capital variable organized under the laws of Mexico ("Cables Durango"), is
owned by the Seller and IWG Services, and (iii) IWG Durango, S. de R.L. de C.V.,
a sociedad de responsabilidad limitada de capital variable organized under the
laws of Mexico ("IWG Durango", together with Cables Durango and IWG Services,
individually, a "Company", and collectively, the "Companies"), is owned by the
Seller Parent, the Seller and Cables Durango;

                  WHEREAS, the Seller Parent and the Seller desire to sell to
Purchasers, and Purchasers desire to purchase from the Seller Parent and the
Seller, all of the equity interests of the Companies (the "Equity Interests")
for the purchase price and upon the terms and conditions hereinafter set forth;
and

                  WHEREAS, certain terms used in this Agreement are defined in
Section 1.1;

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements hereinafter contained, the parties hereby agree
as follows:


                                   DEFINITIONS

1.1               Certain Definitions.

(a) For purposes of this Agreement, the following terms shall have the meanings
specified in this Section 1.1:

                  "Affiliate" means, with respect to any Person, any other
Person that, directly or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, such Person, and
the term "control" (including the terms "controlled by" and "under common
control with") means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person,
whether through ownership of voting securities, by Contract or otherwise.



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                  "Agreement" shall have the meaning set forth in the Recitals.

                  "Ancillary Agreement" shall have the meaning set forth in
Section 6.2.

                  "Balance Sheet" shall have the meaning set forth in Section
5.7.

                  "Balance Sheet Date" shall have the meaning set forth in
Section 5.7.

                  "Business Day" means any day of the year on which national
banking institutions in New York, United States are open to the public for
conducting business and are not required or authorized to close.

                  "Cables Durango" shall have the meaning set forth in the
Recitals.

                  "Cap" shall have the meaning set forth in Section 9.5(a)(ii).

                  "Closing" shall have the meaning set forth in Section 4.1.

                  "Closing Date" shall have the meaning set forth in Section
4.1.

                  "Company" shall have the meaning set forth in the Recitals.

                  "Company Benefit Plan" shall have the meaning set forth in
Section 5.17(a).

                  "Company Property" shall have the meaning set forth in Section
5.13.

                  "Confidentiality Agreement" means the confidentiality letter
agreement, dated June 30, 2004, between Draka Deutschland Gmbh and Seller
Parent, as amended by that letter agreement, dated May 24, 2006, between the

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