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Case 1:04-cv-00725-RPM
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Document 41-23
FAX NO. . .... ..-. . -
Filed 07/01/2005
Page 1 of 3
November 23,2001
Ken Milbaucr ACE USA
Professional Risk 140 Brodway
40'
Floor
Ncw York, NY 10005
b : Managcmd Protection hwmco Policy bblween The Quizno's Corporation and Westchester Fire Insurance Company; Policy No,DON 64845 1 (Roberts)
I'vo attach& a letter meived by us on Novcmbcr 2 1,200 1, The allegations involve the going private lrunsaction which i subject to the previously noticed claim wising from thc Scbcata litigdon. s
b n filcd.
Tha letter does not call for a rosponse and there is no actual action that, to o w knowfedge, has I will keep you apprized of m ncw developments, y
&
THE QZS U-
COWOMTION
E
-
Vim President & General Counsel
cc:
Arlhur J. Gallagher & Co ofMlcbignn, Inc.
l'htodaro Altmnn, Esq. Richard R. Plumridgo, Esq. John Moyc, Esq.
SU m m + d r ~ U N W b k o p i ~ s v sU.vWb-fJ ~ n d
RILRolKfi kttdwd
Q-WEST-00489
MAY-26-2004 WED 04 :59 PM
Case 1:04-cv-00725-RPM
Document 41-23
Filed 07/01/2005
Page 2 of 3
LC L
Mark L Brombcrg . do Wiznos Corporation 1415 Larimet Street Deriver, CO 80202
Richard E.Schadm 40Quimos Corporatiun 1415 Larirner Smct Dm~vcr,CO 80202
3. Brie Lawrcnoc c/o Quiaros Corporation 1415 L h e r Street Dmva, CO 80202 .
John J, Todd Prcdcrick: 8. Scbaden do Quiznos Corpotation 1415 Larimer Street Denver, CO 80202
Richard F.Schadon
do Quiznos Coipomtion
14 15 la.-imcr Strmt Denver, CO 80202
Frederick H.Schaden C/o Quiznos corporation
Brad A. Griffin
Frederick H. $chaden do Quiznos Corpcv~ti~n 1425 LrCrimer Street Demur, CO 80202
1415 Laimcr Stme1
Denver, CO 80202
W rtprcsenl Sandstone Ventures, LLC (llSan&onen), which owns or c controls approximately 10% of the outstanding common stock of Quiznos Corporation ("Quiznos"). Sandsloneobjccts la Zhe proposed rnergcndmcribedi the n proxy statanent ofNovcmM 5,2001 mdintcadato exploreall appropride avenucs fix legal and equitable relief with respect to h e merger. This will includc, but will not be Limited to, a demand f an agpraisel, which will be farwardcd t you by a o
Q-WEST-00490
MAY-26-2004 WED 04 :59 PM
Case 1:04-cv-00725-RPM
NU. Document 41-23rnn FiledILUJOJJ~W 07/01/2005
FAX NO,
Page 3 of 3
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Tlio Quivlos Corporation Novcmber 2 1.2001
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Cathy S, Krcndl, B .wbo has also b q,
m rctaincdby Sandstonewith respect to the proposcd merger
and rclated mattcrs. Sandstone has engaged us to evaluate claims o its bchalf aad possibly others against thc n majority shamhalding group and those who aided, abdtcd and assisted them for breach of Qcir fiduciarydutia to thspublicshareholdersbothin conncctio~lwith~cpraposedmugcrmd activities bVW thc past fwyears ] d i g tp tq&c MES~~. Sa?&bil~ b~liwea wilh tht assisbnce ofh e fllr3, directors, the majority group hasmanipulatcd, misusedand abused corporate ass& for the purpose of depressing thc value oftha stock ofthe minority shareholders so that the stock could be acquired by Lha mnjority for h pittance it is offering in the mcrgcr. Ow evaluation will encompass the e Company's relationship with T u c k Anthony, prior leveraged buyout afiernpts and thc substantial casts and fcw incuncd by the Company at the behest and for tho exclusive bmcfit offhc majority group. Thm,in addition to the appraisal issue ofwhat is the fair valve of ths common stock today, illcrr!is the additional issue ofhow Ihc stock came to be at that vduc and not a substantially higher
value.
W iuo a m that a class action complaint and jury demand has been ยท'dedagainst you by e Edward C, Sebesta, ecdting relicfinconnectionwith theproxy atatemcnt mdproposedmmga. 'Shis lctter is to provide you clmr yldunmistakablenoticeundtxScctfon18-8-610, CKS, that thoissuos Sandstone is evaluating go well beyond the claims in tha Scbesh cmo i bath scope and duration. n Accordingly, you should be aware that all infonnati~n your custody or control, whcthcr it ba i in n .the f ~ r m alcctronicaliyretained information and files, t-mails or hard copy doomcnts, such as of notcs, correspondence and m m d may well be material evidenco in any Buch lawsuit and sliould bo prmervod as such
cc:
Cathy S. Ktcndl (via f x a) Mark D,Sullivm
Q-WEST-00491