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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13d-2(a)
(AMENDMENT NO. 8)
APPLICA INCORPORATED
(Name of Issuer)
COMMON STOCK, PAR VALUE $0.01 PER SHARE
(Title of Class of Securities)
03815A106
(CUSIP Number)
WILLIAM R. LUCAS, JR.
ONE RIVERCHASE PARKWAY SOUTH
BIRMINGHAM, ALABAMA 35244
(Name, Address and Telephone Number of
Person Authorized to Receive Notices
and Communications)
SEPTEMBER 21, 2006
(Date of Event which Requires Filing of
This Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following
box. [_]
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7 for other
parties to whom copies are to be sent.
(1) The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page. The information required on
the remainder of this cover page shall not be deemed to be "filed" for the
purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise
subject to the liabilities of that section of the Act but shall be subject to
all other provisions of the Act (however, see the Notes).
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CUSIP NO. 03815A106 Page 2
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Harbinger Capital Partners Master Fund I, Ltd.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 7,984,300
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
7,984,300
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,984,300
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
32.60%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
--------------------------------------------------------------------------------
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CUSIP NO. 03815A106 Page 3
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SCHEDULE 13D
--------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Harbinger Capital Partners Offshore Manager, L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 7,984,300
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
7,984,300
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,984,300
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
32.60%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
--------------------------------------------------------------------------------
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CUSIP NO. 03815A106 Page 4
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
HMC Investors, L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 7,984,300
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
7,984,300
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,984,300
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
32.60%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
--------------------------------------------------------------------------------
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CUSIP NO. 03815A106 Page 5
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Harbinger Capital Partners Special Situations Fund, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 1,846,500
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
1,846,500
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,846,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.54%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
--------------------------------------------------------------------------------
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CUSIP NO. 03815A106 Page 6
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Harbert Management Corporation
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Alabama
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7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 9,830,800
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
9,830,800
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,830,800
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
40.14%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
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CUSIP NO. 03815A106 Page 7
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Philip Falcone
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 9,830,800
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
9,830,800
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,830,800
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
40.14%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
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CUSIP NO. 03815A106 Page 8
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Raymond J. Harbert
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 9,830,800
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
9,830,800
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,830,800
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
40.14%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
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CUSIP NO. 03815A106 Page 9
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Michael D. Luce
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 9,830,800
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
9,830,800
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,830,800
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
40.14%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
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CUSIP NO. 03815A106 Page 10
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SCHEDULE 13D
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NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Harbinger Capital Partners Special Situations GP, LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 1,846,500
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
1,846,500
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,846,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.54%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
--------------------------------------------------------------------------------
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CUSIP NO. 03815A106 Page 11
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SCHEDULE 13D
--------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
HMC - New York, Inc.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF -0-
------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY OWNED 1,846,500
------------------------------------------------
BY EACH REPORTING 9 SOLE DISPOSITIVE POWER
PERSON -0-
------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
1,846,500
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,846,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.54%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
--------------------------------------------------------------------------------
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CUSIP NO. 03815A106 Page 12
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This Amendment No. 8 amends and supplements the Statement on Schedule
13D filed on May 17, 2006, as amended June 6, 2006, June 21, 2006, August 3,
2006, August 8, 2006, August 11, 2006, August 17, 2006 and September 14, 2006
(as amended, the "Schedule 13D") by Harbinger Capital Partners Master Fund I,
Ltd. (the "Master Fund"), Harbinger Capital Partners Offshore Manager, L.L.C.
("Harbinger Management"), the investment manager of the Master Fund, HMC
Investors, L.L.C., its managing member ("HMC Investors"), Harbinger Capital
Partners Special Situations Fund, L.P. (the "Special Fund"), Harbinger Capital
Partners Special Situations GP, LLC, the general partner of the Special Fund
("HCPSS"), HMC - New York, Inc., the managing member of HCPSS ("HMCNY"),
Harbert Management Corporation ("HMC"), the managing member of HMC Investors
and the parent of HMCNY, Philip Falcone, a shareholder of HMC and the portfolio
manager of the Master Fund and the Special Fund, Raymond J. Harbert, a
shareholder of HMC, and Michael D. Luce, a shareholder of HMC (each of the
Master Fund, Harbinger Management, HMC Investors, HMC, Special Fund, HCPSS,
HMCNY, Philip Falcone, Raymond J. Harbert and Michael D. Luce may be referred
to herein as a "Reporting Person" and collectively may be referred to as
"Reporting Persons") relating to the Common Stock, par value $0.10 per share,
of Applica Incorporated, a Florida corporation. Captitalized terms used herein
and not otherwise defined in this Amendment No. 8 shall have the meanings set
forth in the Schedule 13D.
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CUSIP NO. 03815A106 Page 13
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SCHEDULE 13D
Item 4. PURPOSE OF THE TRANSACTION.
Item 4 of the Schedule 13D is amended to add the following
information:
On September 21, 2006, the Master Fund and the Special Fund entered
into a confidentiality agreement with the Issuer, a copy of which is
incorporated by reference into Item 4 and included as Exhibit I.
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
Item 7 of the Schedule 13D is hereby amended to add the following:
Exhibit A: Agreement between the Reporting Persons to file jointly
Exhibit I: Confidentiality Agreement, dated September 21, 2006,
among the Master Fund, the Special Fund and the Issuer
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CUSIP NO. 03815A106 Page 14
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD.
By: Harbinger Capital Partners Offshore
Manager, L.L.C.
By: HMC Investors, L.L.C.,
Managing Member
By: /s/ Joel B. Piassick
---------------------------------------
Name: Joel B. Piassick
Title: Executive Vice President
HARBINGER CAPITAL PARTNERS OFFSHORE MANAGER,
L.L.C.
By: HMC Investors, L.L.C.,
Managing Member
By: /s/ Joel B. Piassick
---------------------------------------
Name: Joel B. Piassick
Title: Executive Vice President
HMC INVESTORS, L.L.C.
By: /s/ Joel B. Piassick
---------------------------------------
Name: Joel B. Piassick
Title: Executive Vice President
HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS
FUND, L.P.
By: Harbinger Capital Partners Special
Situations GP, LLC
By: HMC - New York, Inc.
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
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CUSIP NO. 03815A106 Page 15
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HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS
GP, LLC
By: HMC - New York, Inc.
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
HMC - NEW YORK, INC.
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
HARBERT MANAGEMENT CORPORATION
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
/s/ Philip Falcone
--------------------------------------------
Philip Falcone
/s/ Raymond J. Harbert
--------------------------------------------
Raymond J. Harbert
/s/ Michael D. Luce
-------------------------------------------
Michael D. Luce
September 22, 2006
Attention: Intentional misstatements or omissions of fact constitute federal
criminal violations (see 18 U.S.C. 1001).
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 16
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EXHIBIT A
AGREEMENT
The undersigned agree that this Schedule 13D, Amendment No. 8, dated
September 22, 2006 relating to the Common Stock, $0.10 par value of Applica
Incorporated shall be filed on behalf of the undersigned.
HARBINGER CAPITAL PARTNERS MASTER FUND I, LTD.
By: Harbinger Capital Partners Offshore
Manager, L.L.C.
By: HMC Investors, L.L.C.,
Managing Member
By: /s/ Joel B. Piassick
---------------------------------------
Name: Joel B. Piassick
Title: Executive Vice President
HARBINGER CAPITAL PARTNERS OFFSHORE MANAGER,
L.L.C.
By: HMC Investors, L.L.C.,
Managing Member
By: /s/ Joel B. Piassick
---------------------------------------
Name: Joel B. Piassick
Title: Executive Vice President
HMC INVESTORS, L.L.C.
By: /s/ Joel B. Piassick
---------------------------------------
Name: Joel B. Piassick
Title: Executive Vice President
HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS
FUND, L.P.
By: Harbinger Capital Partners Special
Situations GP, LLC
By: HMC - New York, Inc.
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 17
--------------------------- ---------------------------
HARBINGER CAPITAL PARTNERS SPECIAL SITUATIONS
GP, LLC
By: HMC - New York, Inc.
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
HMC - NEW YORK, INC.
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
HARBERT MANAGEMENT CORPORATION
By: /s/ William R. Lucas, Jr.
---------------------------------------
Name: William R. Lucas, Jr.
Title: Senior Vice President
& General Counsel
/s/ Philip Falcone
--------------------------------------------
Philip Falcone
/s/ Raymond J. Harbert
--------------------------------------------
Raymond J. Harbert
/s/ Michael D. Luce
-------------------------------------------
Michael D. Luce
September 22, 2006
--------------------------- ---------------------------
CUSIP NO. 03815A106 Page 18
--------------------------- ---------------------------
EXHIBIT I
[GRAPHIC OMITTED - LOGO]
APPLICA (TM)
3633 FLAMINGO ROAD
MIRAMAR, FLORIDA 33027
September 21, 2006
Harbinger Capital Partners Master Fund I, Ltd.
Harbinger Capital Partners Special Situations Fund, L.P.
c/o 555 Madison Avenue, 16th Floor
New York, New York 10022
CONFIDENTIALITY AGREEMENT
Dear Sirs:
In connection with discussions between Harbinger Capital Partners
Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund,
L.P. (together, with all persons that directly or indirectly control such
persons, "Harbinger") and Applica Incorporated ("Applica") concerning a
possible transaction involving Harbinger and Applica, each of us is prepared to
furnish to the other certain information that is confidential, proprietary or
otherwise not generally available to the public to assist the other in making
an evaluation (the "Evaluation") of such a possible transaction (the
"Transaction"). In consideration thereof and as a condition thereto, we each
agree as follows:
1. NONDISCLOSURE OF INFORMATION. Subject to Paragraph 2 hereof,
each of us will (a)keep the Information (as hereinafter defined) furnished to
us by the other party and its Representatives (as hereinafter defined)
confidential, and (b) not use any such Information other than in connection
with our respective Evaluations and negotiation of a Transaction. Each of us
may, however, disclose any such Information to our respective Representatives,
but only if such Representatives reasonably need to know such Information in
connection with our respective Evaluations. Each of us will (A) inform our
respective Representatives receiving any such Information of the confidential
nature thereof and of this letter agreement, (B) direct our respective
Representatives to treat any such Information confidentially and not to use it
other than in connection with our respective Evaluations and the negotiation of
a Transaction, and (C) be responsible for any of our respective
Representatives' improper use of any such Information (including, without
limitation, by such Representatives who, subsequent to the first date of
disclosure of Information hereunder, become our former Representatives). Except
as otherwise provided herein or required by law or securities exchange
regulations, without the prior consent of the other party, each of us will not
and will each direct our respective Representatives not to, disclose to any
third person (1) that any such Information has been made available to us or (2)
any other facts with respect to any such discussions. For the avoidance of
doubt, Applica
Harbinger Capital Partners Master Fund I, Ltd.
Harbinger Capital Partners Special Situations Fund, L.P.
September 21, 2006
Page 2 of 8
--------------------
acknowledges that Harbinger is required to file this agreement on an amended
Schedule 13D upon its execution and delivery.
2. NOTICE PRECEDING COMPELLED DISCLOSURE. If we or any of our
respective Representatives are requested to disclose any of the Information
furnished to us by the other party and/or its Representatives, we will promptly
notify the party which furnished such Information to permit it to seek a
protective order to take other appropriate action. Each of us also will
cooperate in such party's efforts to obtain a protective order or other
reasonable assurance that confidential treatment will be accorded such
Information. If, in the absence of a protective order, either of us or our
respective Representatives are, in the opinion of our respective counsel,
compelled as a matter of law to disclose any such Information to a third party,
we may disclose to the third party compelling disclosure only the part of such
Information as the disclosing party determines in good faith is required by law
to be disclosed (in which case, prior to such disclosure, we will use
reasonable efforts to advise and consult with the party furnishing such
Information and its counsel as to such disclosure and the nature and wording of
such disclosure) and we will each use our respective reasonable efforts to
obtain confidential treatment therefor.
3. TREATMENT OF INFORMATION. Each of us will treat and maintain
such Information in substantially the same manner as we treat and maintain
confidential information in the ordinary course of our respective business. As
soon as possible upon the written request of such other party or upon the
termination of the Evaluation by either of us, we and our respective
Representatives will return to the other party all tangible Information which
has been provided to us by the other party and its Representatives and will
destroy (or, at our option, return to the other party) all Information
furnished by the other party and its Representatives that has been prepared by
such party and its Representatives. Such destruction (or return) will be
confirmed in writing to such other party. Any such Information that is not so
destroyed (or returned) will nonetheless remain subject to this letter
agreement. Notwithstanding the foregoing, we and our respective Representatives
may retain on a confidential basis one copy of our work product based on or
incorporating the Information in order to comply with legal or regulatory
requirements, as well as any and all (i) e-mails and any attachments contained
in such e-mails and (ii) any electronic files, each of which are automatically
saved pursuant to legal or regulatory requirements.
4. PUBLIC INFORMATION. Each of us agrees that this letter
agreement will not apply to such portions of the Information furnished to us by
the other party or its Representatives which (a) are or become generally
available to the public through no action of the party to which such
Information was furnished or its Representatives or (b) are or become available
to the party to which it was furnished hereunder on a non-confidential basis
from a source, other than from the other party or its Representatives, which
the receiving party believes, after reasonable inquiry, was not prohibited from
so disclosing such portions by a contractual, legal or fiduciary obligation.
Harbinger Capital Partners Master Fund I, Ltd.
Harbinger Capital Partners Special Situations Fund, L.P.
September 21, 2006
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5. NO WARRANTY OF ACCURACY. Each of us will endeavor to include
in the Information furnished to the other materials we believe to be relevant
for the other party's Evaluation, but we acknowledge that neither of us nor any
of our Representatives make any representation or warranty as to the accuracy
or completeness of any Information furnished to the other party. We each agree
that neither we nor any of our respective Representatives will have any
liability to the other party or the other party's Representatives resulting
from the use of the Information furnished by the other party or any of the
other party's Representatives.
6. CERTAIN ACTIONS.
(a) COORDINATION OF CONTACTS. During the course of our
respective Evaluations, we each agree that we will not, and will
instruct our respective Representatives not to, except within the
terms of a specific written request from the other party, initiate
contact with any director, officer, employee or person at Harbinger or
Applica (except members of the Board of Directors, Harry D. Schulman
and Terry Polistina) in connection with any matter referred to in this
letter agreement; provided, that the parties agree that the foregoing
shall not limit or restrict in any manner the ability of Harbinger (i)
to communicate with other shareholders of Applica for any matter other
than the Evaluation or a Transaction, (ii) to communicate with other
shareholders of Applica regarding the Evaluation or a Transaction as
set forth in Paragraph 12 hereof, or (iii) to publicly reaffirm the
proposal set forth in the letter dated September 14, 2006.
(b) NON-SOLICITATION. We each agree that for a period of
two years from the date of this letter agreement we will not solicit
for employment, directly or indirectly any senior executive officer of
the other party, except as such employment may be accomplished
pursuant to the consummation of a transaction between the parties as
contemplated by this letter agreement.
(c) SURVIVAL. The foregoing provisions of this Paragraph
6 will remain in effect for the periods specified herein
notwithstanding that some or all of the Information has become
publicly disclosed or outdated or that any portion of this letter
agreement has become inoperative as to any portion of the Information.
7. CERTAIN OBLIGATIONS ONLY ON DEFINITIVE AGREEMENT. No
agreement providing for any Transaction will be deemed to exist unless and
until a Definitive Agreement has been executed and delivered by each of us and
each of the other parties thereto, and we each hereby irrevocably waive any
claims (including without limitation breach of contract) in connection with any
Transaction contemplated hereby unless and until a Definitive Agreement has
been so executed and delivered and then only in accordance with the terms
thereof and applicable law. Unless and until a Definitive Agreement has been so
executed and delivered, neither of us nor any of our respective Representatives
has any legal obligation to the other or any of its affiliates
Harbinger Capital Partners Master Fund I, Ltd.
Harbinger Capital Partners Special Situations Fund, L.P.
September 21, 2006
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of any kind with respect to any Transaction, except, in the case of this letter
agreement, for the matter specifically agreed to herein. For purposes of this
Paragraph 7, the term "Definitive Agreement" does not include a letter of
intent or any other preliminary written agreement, whether or not executed, nor
does it include any actual or purported written or verbal acceptance of any
offer or proposal. Except as otherwise expressly agreed in writing or as
expressly provided herein, each of us and our respective Representatives will
be free to conduct the process relating to any Transaction as they in their
sole discretion determine (including, without limitation, changing any
procedures relating to a Transaction, or negotiating with and entering into a
Definitive Agreement with any other person, without in any such case prior
notice to the other of us or any other person). Neither party will have any
claims against the other party or any of its Representatives arising out of or
relating to any Transaction other than those, if any, arising under this letter
agreement or as parties to a Definitive Agreement and then only in accordance
with the terms hereof or thereof, as the case may be. Notwithstanding anything
to the contrary herein, this letter agreement shall not constitute or operate
as a waiver of any claim, cause of action or other right that Harbinger may
have, whether existing prior to, on or after the date hereof, in its capacity
as a shareholder of Applica.
8. GENERAL PROVISIONS. No failure or delay in exercising any
right hereunder will operate as a waiver thereof, nor will any single or
partial exercise thereof preclude any other or future exercise thereof or the
exercise of any other right. This letter agreement will be binding on and inure
to the benefit of the parties hereto and their respective successors and
assigns. Money damages will not be a sufficient remedy for any violation of the
terms of this letter agreement and, accordingly, each of us will be entitled to
specific performance and injunctive relief as remedies for any violation, in
addition to all other remedies available at law or equity. Except as otherwise
expressly provided in this letter agreement, the obligations under this letter
agreement shall terminate three years from the date first set forth above. We
consent to personal jurisdiction in any action brought in any federal or state
court within the State of Delaware having subject matter jurisdiction in the
matter for purposes of any action arising out of this letter agreement. This
letter agreement will be governed by and construed in accordance with the laws
of the State of Delaware, without giving effect to the principles of conflict
of laws thereof.
9. CERTAIN DEFINITIONS. As used in this letter agreement, (a)
the terms "we", "us" and "our" shall be deemed to include the signatories to
this letter agreement (b) the term "Information" shall include all information
(written or otherwise) that is confidential, proprietary or otherwise nor
generally available to the public and is furnished by one party to the other,
whether furnished by such party or by its respective Representatives, together
with all written or electronically stored documentation prepared by the party
receiving such information or its respective Representatives that is based on
or reflects, in whole or in part, such information or the Evaluation (such
prepared documentation being deemed for purposes of this letter agreement to
have been "furnished"), (c) the term "Representative" shall include any
director, officer, employee, agent, consultant, lender, financing provider,
advisor or representative, including without limitation, any accountant,
attorney and financial advisor having an obligation or duty of
Harbinger Capital Partners Master Fund I, Ltd.
Harbinger Capital Partners Special Situations Fund, L.P.
September 21, 2006
Page 5 of 8
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confidentiality to the receiving party, and (d) the term "person" shall be
broadly interpreted to include, without limitation, any corporation, company,
group, partnership or other entity or individual.
10. TRADING ON MATERIAL NON-PUBLIC INFORMATION. We each hereby
acknowledge that we are aware and that our respective Representatives have been
advised by us that, under certain circumstances, the United States securities
laws may prohibit a person who has received material, non-public information
from an issuer from purchasing or selling securities of such issuer or from
communicating such information to any other person under circumstances in which
it is reasonably foreseeable that such other person is likely to purchase or
sell such securities. The parties further acknowledge that certain Information
could be considered material non-public information and that they will not
trade in the securities of the other party on the basis of such Information and
agree that they will inform their respective employees and representatives of
such prohibitions under the United States securities laws.
11. COMMONALITY OF INTEREST. To the extent that any of the
Information may include material subject to the attorney-client privilege, work
product doctrine or any other applicable privilege concerning pending or
threatened legal proceedings or governmental investigations, Applica and
Harbinger understand and agree that they have a commonality of interest with
respect to such matters and it is the desire, intention and mutual
understanding of the parties that the disclosure of such material is not
intended to, and shall not, waive or diminish in any way the confidentiality of
such material or its continued protection under the attorney-client privilege,
work product doctrine or any other applicable privilege and any such
Information shall remain entitled to all protection under these privileges,
this letter agreement and under the joint defense doctrine. Nothing in this
letter agreement obligates any party to reveal material subject to the
attorney-client privilege, work product doctrine or any other applicable
privilege.
12. STANDSTILL AGREEMENT. As of the date of this letter
agreement, except as previously disclosed in any Schedule 13D filed with the
Securities and Exchange Commission, neither of us beneficially owns any Voting
Securities of the other party. We each agree that until the earlier of (i) a
period of 18 months from the date of this letter agreement, (ii) the date that
a definitive proxy statement with respect to the Merger Agreement is mailed to
the shareholders of Applica or (iii) the written or public rejection,
denouncement or opposition by Applica of the proposal set forth in the letter
dated September 14, 2006 from Harbinger (it being understood and agreed by
Harbinger that Applica's confirmation or affirmation of its recommendation with
respect to the transactions contemplated by the Merger Agreement pursuant to
the terms thereof prior to the execution of a definitive agreement for a
Transaction shall not constitute such a rejection, denouncement or opposition),
except in accordance with the terms of a specific written agreement between the
parties, neither party, nor any of its respective Representatives as an advisor
to such party or as a principal, (i) will propose or publicly announce or
otherwise disclose an intent to propose, or enter into or agree to enter into,
singly or with any other person or directly or indirectly, (A) any form of
business combination, acquisition or other transaction
Harbinger Capital Partners Master Fund I, Ltd.
Harbinger Capital Partners Special Situations Fund, L.P.
September 21, 2006
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other than in the ordinary course of business relating to the other party or
any of its subsidiaries, (B) any form of restructuring, recapitalization or
similar transaction with respect to the other party or any of its subsidiaries,
or (C) any demand, request or proposal to amend, waive or terminate any
provision of this Paragraph 12 or (ii) will (V) acquire, or offer, propose or
agree to acquire, by purchase or otherwise, any Voting Securities, assets,
indebtedness or businesses of the other party or any of its subsidiaries, in
excess of those owned on the date hereof, (W) except in connection with any
action related to the Florida Control Share Act, make, or in any way
participate in, any solicitation of proxies with respect to any such Voting
Securities (including by the execution of action by written consent), become a
participant in any election contest with respect to the other party or any of
its subsidiaries, seek to influence any person with respect to any such Voting
Securities or demand a copy of the list of stockholders or other books and
records of the other party or any of its subsidiaries, (X) participate in or
encourage the formation of any partnership, syndicate or other group which owns
or seeks or offers to acquire beneficial ownership of any such Voting
Securities, assets, indebtedness or businesses of the other party or any of its
subsidiaries or which seeks to affect control of the other party or any of its
subsidiaries or has the purpose of circumventing any provision of this letter
agreement, (Y) otherwise act, alone or in concert with others (including by
providing financing for another person), to seek or to offer to control or
influence, in any manner, the management, board of directors, or policies of
the other party or any of its subsidiaries, or (Z) make any proposal or other
communication designed to compel the other party or any of its subsidiaries to
make a public announcement thereof in respect of any matter referred to in this
letter agreement. The restrictions contained in this Paragraph 12 shall no
longer be applicable upon the occurrence of a Significant Event. A "Significant
Event" shall mean, with respect to each party, any of the following involving
the other party: (i) any person or group acquires or publicly offers to
acquire, directly or indirectly, beneficial ownership of Voting Securities of
the other party representing 50% or more of the voting power represented by the
then outstanding Voting Securities of the other party, (ii) any person or group
publicly announces its desire to enter into an Acquisition Transaction, (iii)
the other party enters into an agreement with respect to, or otherwise publicly
announces it is considering, any Acquisition Transaction, (iv) any material
modification or termination of the Merger Agreement or the Spin-Off Agreement,
or any material modification to the transactions contemplated thereby
(including, without limitation, to the Special Dividend (as defined in the
Merger Agreement) or the contemplated level of indebtedness of the Surviving
Corporation (as defined in the Merger Agreement)), or (v) the board of
directors of Applica publicly affirms, withdraws, or otherwise modifies in any
respect its recommendation with respect to the transactions contemplated by the
Merger Agreement other than (1) as a result of the acceptance of a Transaction
with Harbinger or (2) if necessary pursuant to the terms of the Merger
Agreement prior to the execution of a definitive agreement for the Transaction
with Harbinger; provided, however, any action taken by NACCO Industries, Inc.
or Harbinger prior to the date of this letter shall not constitute a
Significant Event. As used in this paragraph, (a) the terms or phrases
"affiliate," "beneficial owner," "election contest," "equity security,"
"group," "participant," "person," "proxy," "security" and "solicitation" (and
the plurals thereof) have the meanings ascribed to such terms under the
Securities Exchange Act of 1934, as amended, and
Harbinger Capital Partners Master Fund I, Ltd.
Harbinger Capital Partners Special Situations Fund, L.P.
September 21, 2006
Page 7 of 8
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the rules and regulations thereunder, (b) the term "subsidiary" means any
person, a majority of the Voting Securities of which are now owned by a party
or which become owned by a party at any time during the term of this letter
agreement, (c) "Voting Securities" means any securities entitled to be voted
generally in the election of directors of any person or any direct or indirect
options or other rights to acquire any such securities and (d) an "Acquisition
Transaction" shall mean any merger, sale or other business combination or
transaction pursuant to which the outstanding Voting Securities of the other
party would be converted into cash or securities of any other person or 50% or
more of the voting power represented by the then outstanding Voting Securities
of the other party would be owned by persons other than current holders of
Voting Securities of the other party, or which would result in all or
substantially all of the assets of the other party and its subsidiaries, taken
as a whole, being transferred to any person or group.
13. EXCEPTION. Notwithstanding anything to the contrary herein,
Applica shall be permitted to provide to NACCO Industries, Inc. the information
required to be provided to it under Section 6.12(d) of the Agreement and Plan
of Merger dated July 23, 2006 by and between HB-PS Holding Company, Inc. and
Applica Incorporated and joined in by NACCO Industries, Inc. for certain
purposes (the "Merger Agreement").
14. IMPROVEMENT OF TERMS OF PROPOSAL. Notwithstanding anything to
the contrary herein including Paragraph 12 hereof, Harbinger shall be permitted
to communicate to the Applica Board of Directors an improvement to the terms of
the proposal set forth in the letter dated September 14, 2006 and, to the
extent required by law or securities exchange regulations, to file an amended
Schedule 13D relating to such improved terms.
[Signatures on following page.]
Harbinger Capital Partners Master Fund I, Ltd.
Harbinger Capital Partners Special Situations Fund, L.P.
September 21, 2006
Page 8 of 8
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Please sign and return one copy of this letter agreement to evidence
your acceptance of and agreement to the foregoing, where upon this letter
agreement will become the binding obligation of each of the undersigned.
Applica Incorporated
By: /s/ Lisa R. Carstarphen
--------------------------------------
Name: Lisa R. Carstarphen
Title: Vice President, General Counsel and
Corporate Secretary
AGREED TO AND ACCEPTED
Harbinger Capital Partners Master Fund I, Ltd.
Harbinger Capital Partners Special Situations Fund, L.P.
By: /s/ Philip A. Falcone
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Name: Philip A. Falcone
-----------------------------------------
Title: Senior Managing Director
----------------------------------------