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listing of Nireco shares on the Japanese Over-the-Counter stock
exchange. In November 1989, Brunswick decided to sell all of its
remaining Nireco shares.
On January 29, 1990, Brunswick and Merrill Lynch executed a
letter agreement under which Merrill Lynch agreed to act as
Brunswick's exclusive financial adviser in connection with the
sale of Brunswick's Nireco stock in exchange for a fee of 1.125
percent of the proceeds of the sale (the Nireco fee agreement).
On March 5, 1990, Reichert and McManaman appeared before the
New York Society of Security Analysts. McManaman informed the
analysts that Brunswick anticipated realizing approximately $125
million from the sale of businesses in its Technical group and
that net proceeds from the sales would be used to reduce
Brunswick's debt. Between October 1989 and October 1990,
Brunswick's debt to capitalization ratio was reduced from 42.2
percent to 28.3 percent.
On March 28, 1990, Brunswick and Merrill Lynch executed a
letter agreement amending the IPD and Nireco fee agreements to
provide that Brunswick would pay additional fees of $750,000,
$500,000, and $250,000 upon the sales of Vapor Corporation, TXT,
and Brunswick's Nireco stock, respectively.
On September 4, 1990, Brunswick and Merrill Lynch executed a
letter agreement further amending the IPD and Nireco fee
agreements to provide that Brunswick would pay additional fees of
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