Dated as of May 9, 1996
BANK OF MONTREAL - BANQUE DE MONTREAL
and
THE TRUST COMPANY OF BANK OF MONTREAL -
SOCIETE DE FIDUCIE BANQUE DE MONTREAL
Trustee
SECOND SUPPLEMENTAL
INDENTURE
TABLE OF CONTENTS
Section Page
------- ----
Recitals ........................................................... 1
ARTICLE ONE
INTERPRETATION
1.1. Part of Original Trust Indenture ................................... 1
1.2. Definitions ........................................................ 2
ARTICLE TWO
ISSUE OF SERIES 21 DEBENTURES
2.1. Limit of Issue and Designation ..................................... 2
2.2. Form and Terms of Series 21 Debentures ............................. 2
2.3. Interest ........................................................... 3
2.4. Issue of Series 21 Debentures ...................................... 3
ARTICLE THREE
REDEMPTION AND PURCHASE OF SERIES 21 DEBENTURES
3.1. Restriction on Redemption .......................................... 4
3.2. Redemption of Series 21 Debentures ................................. 4
3.3. Places of Payment .................................................. 4
3.4. Purchase of Series 21 Debentures ................................... 4
Section Page
------- ----
ARTICLE FOUR
CONVERSION OF SERIES 21 DEBENTURES
INTO NEW DEBENTURES
4.1. Conversion Option .................................................. 4
4.2. Supplemental Indenture for New Debentures .......................... 5
4.3. Exercise of the Conversion Option .................................. 5
4.4. Issue of New Debentures ............................................ 5
4.5. Trustee's Decision Final ........................................... 5
4.6. Cancellation of Series 21 Debentures ............................... 5
4.7. Delivery of Legal Opinion and Bank Certificate ..................... 6
ARTICLE FIVE
FORM OF SERIES 21 DEBENTURES
5.1. Form of Series 21 Debentures ....................................... 8
ARTICLE SIX
EXECUTION
6.1. Acceptance of Trust ................................................ 18
6.2. Counterparts and Formal Date ....................................... 18
THIS SECOND SUPPLEMENTAL INDENTURE made as of May 9, 1996.
BETWEEN
BANK OF MONTREAL - BANQUE DE MONTREAL, a Canadian chartered bank
(hereinafter called the "Bank"),
OF THE FIRST PART,
- and -
THE TRUST COMPANY OF BANK OF MONTREAL - SOCIETE DE FIDUCIE BANQUE DE
MONTREAL, a trust company incorporated under the laws of Canada
(hereinafter designated the "Trustee"),
OF THE SECOND PART,
WHEREAS under an indenture made as of December 14th, 1995 between the Bank
and the Trustee (the "Original Trust Indenture") the creation and issue of
Debentures from time to time without limitation as to principal amount was
provided for;
AND WHEREAS by the Original Trust Indenture and an indenture supplemental
thereto the Bank has issued two series of Debentures;
AND WHEREAS pursuant to the provisions of the Original Trust Indenture and,
in particular, Section 2.7 thereof, the directors of the Bank have authorized
the creation and issue of additional Debentures thereunder upon the terms set
forth in this Second Supplemental Indenture;
AND WHEREAS all things necessary have been done and performed to authorize
the execution of this Second Supplemental Indenture, to make the same effective
and binding upon the Bank and to make the additional Debentures when certified
by the Trustee and issued as provided in this Second Supplemental Indenture
valid, binding and legal obligations of the Bank with the benefits and subject
to the terms of the Original Trust Indenture as heretofore amended and this
Second Supplemental Indenture.
NOW THEREFORE THIS INDENTURE WITNESSETH and it is hereby agreed and
declared as follows:
ARTICLE ONE
INTERPRETATION
SECTION 1.1 Part of Original Trust Indenture. The Original Trust Indenture,
is part of this Second Supplemental Indenture and by this reference is
incorporated herein with the same effect as though at length set forth herein;
and in this Second Supplemental Indenture, unless there is something in the
subject matter or context inconsistent therewith, the expressions herein
contained shall have the same meaning as corresponding expressions in the
Original Trust Indenture.
1
SECTION 1.2. Definitions. In this Second Supplemental Indenture, unless
there is something in the subject matter or context inconsistent therewith:
1.2(1) "8.15% Debentures, Series 21, Due 2011" and "Series 21 Debentures"
means the $300,000,000 aggregate principal amount of 8.15% Debentures, Series
21, Due 2011 referred to in Section 2.1 hereof including Debentures issued in
substitution for any such Debentures.
1.2(2) "90 day Bankers' Acceptance Rate", for any quarterly interest
period, shall mean the average bid rate of interest (expressed as an annual
percentage rate) for Canadian dollar bankers' acceptances with maturities of
three months which appears on the Reuters Screen CDOR Page as of 10:00 a.m.,
Toronto time, on the first Business Day of such quarterly interest period;
provided that if such rate does not appear on the Reuters Screen CDOR Page on
such day, the 90 day Bankers' Acceptance Rate for such period shall be the
average of the bid rates of interest (expressed as an annual percentage rate and
rounded to the nearest one-hundred thousandth of 1.00%) for Canadian dollar
bankers' acceptances with maturities of three months for same day settlement as
quoted by such of the Schedule 1 banks (as defined in the Bank Act) as may quote
such a rate as of 10:00 a.m., Toronto time, on the first Business Day of such
quarterly interest period;
1.2(3) "New Debentures" means the subordinated indebtedness of the Bank,
which qualifies as regulatory capital of the Bank under the then current capital
adequacy guidelines prescribed for Canadian chartered banks, to be issued to
holders of Series 21 Debentures upon the exercise of the Conversion Option
pursuant to Article Four hereof and having the terms and conditions contemplated
by such Article.
1.2(4) "Reuters Screen CDOR Page" means the display designated as page
"CDOR' on the Reuters Monitor Money Rates Service (or such other page as may
replace the CDOR page on that service) for purposes of displaying Canadian
dollar bankers' acceptance rates.
ARTICLE TWO
ISSUE OF SERIES 21 DEBENTURES
SECTION 2.1. Limit of Issue and Designation. A series of debentures is
hereby created and authorized to be issued pursuant to the Original Trust
Indenture consisting of and limited to $300,000,000 principal amount in lawful
money of Canada and hereby designated "8.15% Debentures, Series 21, Due 2011".
SECTION 2.2. Form and Terms of Series 21 Debentures.
(1) The Series 21 Debentures shall be issued as fully registered Debentures
only without coupons in denominations of $1,000 and integral multiples thereof,
shall be substantially in the form set out in Article Five hereof with such
appropriate insertions, omissions, substitutions and variations
2
as the Bank may authorize and the Trustee may assent to; shall be in both the
English and French languages; and shall bear such distinguishing letters and
numbers as the Trustee may approve.
(2) The Series 21 Debentures shall be dated May 9, 1996 and shall mature on
May 9, 2011; shall be redeemable prior to maturity as provided in Article Three;
and may be convertible on May 9, 2006 into an equal aggregate principal amount
of New Debentures as provided in Article Four.
(3) The principal of the Series 21 Debentures shall be payable in lawful
money of Canada at any branch in Canada of the Bank, at the option of the
respective holders of the Series 21 Debentures, against surrender thereof.
Interest on the Series 21 Debentures will be payable in lawful money of Canada
by cheque drawn on the Bank and sent by prepaid mail to the registered holder or
by such other means as may become customary for the payment of interest. If the
day on which the principal or any interest on the Series 21 Debentures falls due
is not a Business Day then the holder shall not be entitled to payment until the
next Business Day nor to any further interest or other sums in respect of such
delayed payment.
SECTION 2.3. Interest.
(1) The Series 21 Debentures will bear interest at the rate of 8.15% per
annum from and including the date of issue to but excluding May 9, 2006 payable
half-yearly in arrears on May 9 and November 9 in each year, with overdue
interest, if any, at the same rate after as well as before default in the
payment of principal or interest. The first payment of interest will be made on
November 9, 1996 and will represent interest from the date of issue.
(2) From May 9, 2006 until maturity on May 9, 2011, the Series 21
Debentures will bear interest at a rate per annum equal to the 90 day Bankers'
Acceptance Rate plus 1.00% payable quarterly in arrears on February 9, May 9,
August 9, and November 9 in each year (the "Interest Payment Dates") commencing
August 9, 2006, with overdue interest, if any, in respect of any quarterly
interest period at the same rate applicable to such quarterly interest period
after as well as before default in the payment of principal or interest.
Interest for each quarterly interest period will be calculated on the basis of
the actual number of days elapsed in each quarterly interest period divided by
365 or 366 in a leap year, as the case may be.
SECTION 2.4. Issue of Series 21 Debentures. The Series 21 Debentures, in
interim or definitive form, to the aggregate principal amount of $300,000,000,
may forthwith be executed by the Bank and certified by or on behalf of the
Trustee and delivered by it to or upon the written order of the Bank, without
the Trustee receiving any consideration therefor.
3
ARTICLE THREE
REDEMPTION AND PURCHASE OF SERIES 21 DEBENTURES
SECTION 3.1. Restriction on Redemption. The Bank shall not redeem Series 21
Debentures for any purpose at any time prior to May 9, 2006.
SECTION 3.2. Redemption of Series 21 Debentures Subject to the provisions
of the Bank Act, including the prior approval of the Superintendent, the Bank
may, at its option, redeem all but not less than all of the Series 21 Debentures
on May 9, 2006 or on any Interest Payment Date thereafter at 100% of the
principal amount thereof plus accrued and unpaid interest to the date fixed for
redemption, the whole constituting the redemption price.
SECTION 3.3 Places of Payment. The redemption price shall be payable upon
presentation and surrender of the Series 21 Debentures to be redeemed at any of
the places where the principal of the Series 21 Debentures is expressed to be
payable and at such other places, if any, as may be specified in the notice of
redemption.
SECTION 3.4. Purchase of Series 21 Debentures. The Bank, with the prior
approval of the Superintendent, shall have the right, at any time after the
fifth anniversary of the date of issue of the Series 21 Debentures, to purchase
Series 21 Debentures in the market, by tender or by private contract at any
price. Notwithstanding the foregoing, any subsidiary of the Bank may purchase
Series 21 Debentures in the ordinary course of its business of dealing in
securities.
ARTICLE FOUR
CONVERSION OF SERIES 21 DEBENTURES INTO NEW DEBENTURES
SECTION 4.1. Conversion Option. On May 9, 2006 (the "Conversion Date") the
registered holder of a Series 21 Debenture may, but only upon notice from the
Bank, which may be given only with the prior approval of the Superintendent,
convert (the "Conversion Option") all but not less than all of the Series 21
Debentures held by such holder into an equal aggregate principal amount of New
Debentures. If given, such notice from the Bank shall be given to the registered
holders of the Series 21 Debentures and to the Trustee, in the manner provided
in Article 14 of the Original Trust Indenture, not less than 30 days nor more
than 60 days prior to the Conversion Date and the holders shall thereupon have
the option to effect such conversion on the terms and conditions set forth in
this Article. The notice shall contain a description of the attributes and
characteristics of the New Debentures, a summary of the resale restrictions, if
any, in respect of the New Debentures under Canadian provincial securities
legislation, a summary of the principal Canadian federal income tax
considerations generally applicable to a holder of a Series 21 Debenture who is
a resident of Canada and who holds such Series 21 Debenture as capital property
upon exercising the Conversion Option and, shall describe the steps required to
be taken by the holder of a Series 21 Debenture in order to exercise the
Conversion Option and the status of the New Debentures as subordinated
indebtedness
4
of the Bank for purposes of the Bank Act. Any notice so given by the Bank shall
be irrevocable, shall apply to all outstanding Series 21 Debentures, and shall
remain in effect to and including the Conversion Date.
SECTION 4.2 Supplemental Indenture for New Debentures. In the event that
the Bank gives the notice referred to in Section 4.1, it shall authorize the
creation of New Debentures, constitute the terms and provisions thereof and, as
of the Conversion Date, execute and deliver to the Trustee a new indenture
supplemental to the Original Trust Indenture (the "Supplemental Indenture"), all
as provided for in subsections 2.7(1) and 2.7(2) of the Original Trust
Indenture, relating to the New Debentures to be issued to the holders of the
Series 21 Debentures on conversion. From and after the Conversion Date, the
Supplemental Indenture shall apply to the New Debentures issued to holders of
Series 21 Debentures converted pursuant to this Article and shall be binding
upon and enure to the benefit of the holders of such New Debentures.
SECTION 4.3. Exercise of the Conversion Option. The Conversion Option may
be exercised by the holder of a Series 21 Debenture by executing the form on the
reverse side of the Series 21 Debenture certificate and delivering the same for
surrender to the Trustee at the office or offices of the Trustee specified in
the notice referred to in Section 4.1 on or before the Conversion Date. Any such
exercise shall be irrevocable. A holder of Series 21 Debentures may only
exercise the Conversion Option with respect to all of the Series 21 Debentures
then registered in the name of such holder. No such exercise shall be effective
unless received by the Trustee in accordance with the provisions hereof at or
before 4:00 p.m. (Toronto time) on the Conversion Date.
SECTION 4.4. Issue of New Debentures. The Trustee, upon receipt of a Series
21 Debenture certificate with the form for the exercise of the Conversion Option
on the reverse side thereof duly executed by the registered holder thereof,
shall forthwith certify and deliver to such registered holder New Debentures
dated as of the Conversion Date in the same aggregate principal amount as the
Series 21 Debentures delivered for conversion. The New Debentures shall be
issued in accordance with the instructions of the holders of the Series 21
Debentures to be converted.
SECTION 4.5. Trustee's Decision Final. If any question shall arise as to
the validity of the exercise of the Conversion Option by holders of Series 21
Debentures pursuant to this Article Four, the Trustee may require such evidence
as it deems necessary in relation thereto, and the decision of the Trustee shall
be final and binding.
SECTION 4.6. Cancellation of Series 21 Debentures. All Series 21 Debentures
surrendered to the Trustee for conversion pursuant to this Article shall be
cancelled and shall not be reissued or resold.
5
SECTION 4.7. Delivery of Legal Opinion and Bank Certificate.
(1) If the notice referred to in Section 4.1 is delivered by the Bank, the
Bank shall deliver to the Trustee on the Conversion Date:
(i) a favourable legal opinion of counsel retained by the Bank and
acceptable to the Trustee, in form acceptable to the Trustee,
acting reasonably, dated the Conversion Date and addressed to the
Trustee and to the holders of Series 21 Debentures surrendered
for conversion, as to the following matters:
(a) that the exercise of the Conversion Option and the issuance
of the New Debentures to the holders of Series 21 Debentures
do not and will not result in a breach of any of the
provisions of the Bank Act or the by-laws of the Bank;
(b) that the Supplemental Indenture is in proper form, has been
duly authorized by all necessary corporate action on the
part of the Bank, has been duly executed and delivered by
the Bank and is a legal, valid and binding obligation of the
Bank enforceable against the Bank in accordance with its
terms, subject to the qualification that such enforceability
may be limited by bankruptcy, insolvency, winding-up,
liquidation or other similar laws affecting the enforcement
of creditors' rights generally and that specific performance
and other equitable remedies may only be granted in the
discretion of a court of competent jurisdiction;
(c) that the certificates representing the New Debentures are in
proper form, that the New Debentures have been duly
authorized, executed and delivered by the Bank and certified
by the Trustee, constitute subordinated indebtedness of the
Bank for purposes of the Bank Act which, in the event of the
insolvency or winding-up of the Bank, will rank equally and
rateably with all other debentures of the Bank from time to
time outstanding, have been duly issued and delivered under
the Original Trust Indenture, as amended and as supplemented
by the Supplemental Indenture and are entitled to the
benefits thereof, and are legal, valid and binding
obligations of the Bank enforceable against the Bank in
accordance with their respective terms subject to the
qualification that such enforceability may be limited by
bankruptcy, insolvency, winding-up, liquidation or other
similar laws affecting the enforcement of creditors' rights
generally and that specific performance and other equitable
remedies may only be granted in the discretion of a court of
competent jurisdiction;
(d) that any authorization, consent or approval or filing,
registration, qualification or recording with, any
government authority of each of the Provinces and
6
Territories of Canada legally required for the issuance of
the New Debentures to the holders of Series 21 Debentures
has been obtained or made;
(e) confirming the description of the resale restrictions, if
any, and tax consequences set out in the notice referred to
in Section 4.1;
(f) as to the eligibility of the New Debentures for investment
under statutes of Canada, and of the Provinces of Xxxxxx,
Xxxxxxx, Xxxxxxx and British Columbia governing investments
by trusts, trustees, insurance companies, loan or trust
companies and by pension plans in accordance with any
financial performance tests thereunder without resort to any
so-called "basket" provisions thereunder, and, in the case
of any such statutes which refer to prudent investment
standards, that investment in the New Debentures would not
be prohibited under such statutes, subject to such prudent
investment standards and the general investment provisions
of such statutes and, in certain cases, criteria which are
required to be established as policies or guidelines
pursuant to such statutes; and
(g) as to such other matters as the Trustee may reasonably
request; and
(ii) a Certificate of the Bank stating that the exercise of the
Conversion Option and the issuance of the New Debentures to the
holders of Series 21 Debentures do not and will not result in any
violation of or constitute a default under any indenture or other
agreement or instrument to which the Bank is then a party or by
which the Bank is then bound.
(2) The obligation of the Bank to deliver the opinion and certificate
described in subsection 4.7(1) is solely for the benefit of the holders of
Series 21 Debentures being surrendered for conversion and may be waived or
modified by an instrument in writing signed by the Trustee (where the Trustee is
of the opinion that such waiver or modification is not materially prejudicial to
the interests of Series 21 Debenture holders) or by resolution of the holders of
a majority in principal amount of the Series 21 Debentures surrendered for
conversion on or after the date of the notice referred to in Section 4.1.
7
ARTICLE FIVE
FORM OF SERIES 21 DEBENTURES
SECTION 5.1. Form of Series 21 Debentures. The following is the form of
Series 21 Debentures referred to in Section 2.2:
ENGLISH TEXT
THIS IS NOT A DEPOSIT INSURED UNDER THE CANADA DEPOSIT
INSURANCE CORPORATION ACT
No. 21R $___________
BANK OF MONTREAL
(Incorporated under the laws of Canada)
8.15% DEBENTURE, Series 21, DUE 2011
(subordinated indebtedness)
BANK OF MONTREAL (the "Bank"), for value received, hereby acknowledges
itself indebted and promises to pay to
or registered assigns on May 9, 2011, or on such earlier date as the principal
amount hereof may become payable, the principal sum of
DOLLARS ($___________)
in lawful money of Canada at any branch in Canada of the Bank, at the holder's
option, and until payment of the said principal sum to pay interest thereon at
the rates of interest and on the dates hereinafter provided from the date
hereof, or from the last interest payment date to which interest shall have been
paid or made available for payment on the Series 21 Debentures, whichever is the
later, at the same places in like money. The Series 21 Debentures bear interest
at the rate of 8.15% per annum from and including the date of issue to but
excluding May 9, 2006, payable half-yearly in arrears on May 9 and November 9 in
each year, with overdue interest, if any, at the same rate after as well as
before default in the payment of principal or interest. The first payment of
interest will be on November 9, 1996, and will represent interest from the date
of issue. From May 9, 2006, the Series 21 Debentures will bear interest at a
rate equal to the 90 day Bankers' Acceptance Rate (as defined in the Trust
Indenture hereinafter referred to) plus 1.00%, payable quarterly in arrears on
February 9, May 9, August 9 and November 9 in each year ("Interest Payment
Dates") commencing August 9, 2006, with overdue interest, if any, in respect of
any quarterly interest period at the rate applicable to such quarterly period
after as well as before default in the payment of principal or interest.
As the interest matures, the Bank (except in case of payment at maturity,
in which case payment of interest may, at the option of the Bank, be made upon
surrender of this Debenture) shall forward to the registered address of the
holder hereof by prepaid mail, prior to the applicable interest
8
payment date, a cheque for such interest drawn on the Bank and payable at any
branch in Canada of the Bank at the holder's option, or by such other means as
may become customary for the payment of interest.
This Debenture is one of the Debentures of the Bank issued or issuable in
one or more series under the provisions of a trust indenture dated as of
December 14, 1995 between the Bank and The Trust Company of Bank of Montreal, as
trustee (the "Trustee") and indentures supplemental thereto, including the
second supplemental indenture thereto between the same parties dated as of May
9, 1996 (collectively, the "Trust Indenture"). The 8.15% Debentures, Series 21,
Due 2011 (herein sometimes referred to as the "Series 21 Debentures"), of which
this is one, are limited to an aggregate principal amount of $300,000,000 in
lawful money of Canada and mature on May 9, 2011.
The Series 21 Debentures are direct unsecured obligations of the Bank,
constituting subordinated indebtedness for the purposes of the Bank Act
(Canada), and rank equally and rateably with all debentures and other
subordinated indebtedness of the Bank from time to time issued and outstanding
under the Trust Indenture and the Existing Trust Indentures (as defined in the
Trust Indenture), (collectively, the "Indentures"). The Indentures provide that
in the event of the insolvency or winding-up of the Bank, the indebtedness
evidenced by all debentures or other subordinated indebtedness issued
thereunder, including the Series 21 Debentures, will be subordinate in right of
payment to the prior payment in full of the deposit liabilities of the Bank,
except liabilities which by their terms rank in right of payment equally with or
subordinate to indebtedness evidenced by all such debentures or other
subordinated indebtedness. Reference is made to the Trust Indenture for a
further statement of the rights of the holders of Series 21 Debentures, of the
Bank and of the Trustee and the terms and conditions upon which the Series 21
Debentures are issued and held, to all of which the holder of this Debenture, by
acceptance hereof, assents.
The Series 21 Debentures are not redeemable for any purpose prior to May 9,
2006. Subject to the provisions of the Bank Act (Canada), including the prior
approval of the Superintendent of Financial Institutions, the Bank may redeem
all but not less than all of the Series 21 Debentures on May 9, 2006 or on any
Interest Payment Date thereafter, on not less than 30 days nor more than 60 days
notice, all as provided in the Trust Indenture, at 100% of the principal amount
thereof plus accrued and unpaid interest to the date fixed for redemption.
The Bank, with the prior approval of the Superintendent of Financial
Institutions, shall have the right, at any time after the fifth anniversary of
the date of issue of the Series 21 Debentures, to purchase Series 21 Debentures
in the market, by tender or by private contract at any price.
On May 9, 2006 (the "Conversion Date"), the registered holder of this
Series 21 Debenture may, but only upon notice from the Bank, which may be given
only with the prior approval of the Superintendent of Financial Institutions,
convert (the "Conversion Option") all, but not less than all, of this Series 21
Debenture into an equal aggregate principal amount of New Debentures (as defined
in the Trust Indenture). If given, such notice from the Bank shall be given to
the registered holders of the Series 21 Debentures not less than 30 days nor
more than 60 days prior to the Conversion
9
Date, all as provided in the Trust Indenture, and such holders shall thereupon
have the option to effect such conversion on the terms and conditions set forth
in the Trust Indenture. The Conversion Option may be exercised by the holder
completing the Exercise of Conversion Option form which appears on the reverse
side hereof and delivering and surrendering this Series 21 Debenture to the
Trustee, or its agent, at any one of its principal offices in the cities
hereinafter mentioned or at such other places as may be designated in the Bank's
notice at or prior to 4:00 p.m. (Toronto time) on the Conversion Date. Exercise
of the Conversion Option is irrevocable.
The Trust Indenture provides, among other things, for: (a) the
acceleration of the maturity of this Series 21 Debenture in the case of an event
of default (as defined in the Trust Indenture), and (b) the holding of meetings
of Debentureholders and for making binding on all Debentureholders certain
decisions taken thereat.
This Series 21 Debenture shall be transferable through the facilities of
the Trustee, or its agent, in the cities of Halifax, Montreal, Toronto,
Winnipeg, Xxxxxx, Calgary and Vancouver, and at such other places as may be
designated from time to time by the Bank with the approval of the Trustee, and
it may be transferred only by the registered holder hereof or his attorney duly
authorized in writing.
This Series 21 Debenture shall not become obligatory for any purpose until
it shall have been certified by or on behalf of the Trustee.
IN WITNESS WHEREOF this Series 21 Debenture has been duly executed, the
corporate seal of the Bank affixed hereon and dated May 9, 1996.
BANK OF MONTREAL
By: And:
--------------------------------- -----------------------------------
Chairman Secretary
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(Form of Transfer)
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
-------------------------------------
(Name of New Holder)
-------------------------------------
(Full Postal Address)
this Series 21 Debenture, and hereby irrevocably authorizes and directs the
Trustee to transfer this Series 21 Debenture on the register of holders into the
name of the new holder herein designated.
Dated ________________
Signature guaranteed by:
------------------------------------- ----------------------------------------
Signature of Guarantor** Signature of Transferring
Registered Holder*
(Form of Trustee's Certificate)
TRUSTEE'S CERTIFICATE
This Debenture is one of the Series 21 Debentures of Bank of Montreal issued
under the Trust Indenture within mentioned.
THE TRUST COMPANY OF BANK OF MONTREAL
Trustee
By:
------------------------------------
Authorized Signatory
* The signature must correspond with the name of the registered holder as it
appears on the register.
** The guarantor must be a Canadian chartered bank, trust company or member of
a recognized stock exchange.
11
(Form of Exercise of Conversion Option)
EXERCISE OF CONVERSION OPTION
The undersigned, being the registered holder of this Series 21 Debenture,
hereby elects to convert this Series 21 Debenture into an equal aggregate
principal amount of New Debentures of Bank of Montreal on the Conversion Date
and hereby irrevocably delivers and surrenders this Series 21 Debenture to The
Trust Company of Bank of Montreal, as Trustee, or its agent, for conversion.
Dated ________________
Signature guaranteed by:
------------------------------------- ----------------------------------------
Signature of Guarantor** Signature of Registered Holder*
* The signature must correspond with the name of the registered holder as it
appears on the register.
** The guarantor must be a Canadian chartered bank, trust company or member of
a recognized stock exchange.
00
XXXXXX XXXX
XX XXXXXXXX XX CONSTITUE PAS UN DEPOT ASSURE
EN VERTU DE LA LOI SUR
LA SOCIETE D'ASSURANCE-DEPOTS DU CANADA
No 21 R _____$
BANQUE DE MONTREAL
(Constituee en vertu des xxxx du Canada)
DEBENTURE 8,15%, Serie 21, ECHEANT EN 2011
(titre secondaire)
BANQUE DE MONTREAL (la "Banque"), pour valeur recue, reconnait par les
presentes devoir et promet de payer a
ou a ses ayants droit inscrits, le 9 mai 2011, ou a toute date anterieure a
laquelle le montant en capital peut devenir exigible, le montant en capital de
DOLLARS (____$)
en monnaie legale du Canada a toute succursale de la Banque au Canada, au gre du
porteur, et de payer l'interet sur ce montant aux taux d'interet et aux dates
prevus ci-apres a compter de la plus tardive de la date des presentes ou de la
derniere date de paiement d'interet a laquelle l'interet aura ete paye ou offert
en paiement sur les debentures de la serie 21, jusqu'au parfait paiement de ce
montant, en meme monnaie et aux memes endroits. Les debentures de la serie 21
portent interet au taux de 8,15% par annee a compter de la date d'emission,
inclusivement, jusqu'au 9 mai 2006, exclusivement, payable semestriellement et
non a l'avance les 9 mai et 9 novembre de chaque annee, avec interet au meme
taux sur 1'arriere d'interet, s'il y a lieu, apres comme avant tout defaut de
paiement du capital ou de l'interet . Le premier paiement de l'interet
s'effectuera le 9 novembre 1996 et representera l'interet a compter de la date
d'emission . A partir du 9 mai 2006, les debentures de la serie 21 porteront
interet a un taux annuel equivalent au taux des acceptations bancaires de 90
jours (tel que defini a 1'acte de fiducie mentionne ci-apres) majore de 1,00%,
payable trimestriellement et non a l'avance les 9 fevrier, 9 mai, 9 aout et 9
novembre de chaque annee (les "dates de paiement d'interet"), a compter du 9
aout 2006, avec interet sur 1'arriere d'interet, s'il y a lieu, relativement a
toute periode d'interet trimestrielle, au taux applicable a cette periode
d'interet trimestrielle, apres comme avant tout defaut de paiement du capital ou
de l'interet.
Selon l'echeancier de l'interet (sauf lors du paiement a l'echeance, auquel
cas le paiement de l'interet pourra, au gre de la Banque, etre effectue sur
remise de la presente debenture), la Banque en effectuera le paiement en
expediant par courrier affranchi a 1'adresse inscrite du porteur de la
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presente, avant la date de paiement d'interet applicable, un cheque pour
l'interet alors du tire sur la Banque et encaissable a toute succursale de la
Banque au Canada, au gre du porteur, ou de toute autre maniere qui sera d'usage
pour le paiement de l'interet.
Cette debenture est l'une des debentures de la Banque emises ou pouvant
etre emises en une ou plusieurs series en vertu des dispositions d'un acte de
fiducie intervenu en date du 14 decembre 1995 entre la Banque et la Societe de
fiducie Banque de Montreal, a titre de fiduciaire (le "fiduciaire") et d'actes
supplementaires s'y rapportant, y compris le deuxieme acte supplementaire entre
les memes parties en date du 9 mai 1996 (collectivement, l' "acte de fiducie").
Les debentures 8,15%, serie 21, echeant en 2011 (quelquefois designees dans les
presentes comme les "debentures de la serie 21"), dont cette debenture fait
partie, sont limitees a un montant en capital global de 300 000 000 $ en monnaie
legale du Canada et viennent a echeance le 9 mai 2011 .
Les debentures de la serie 21 constituent des obligations directes et non
garanties de la Banque ainsi que des titres secondaires au sens de la Loi sur
les banques (Canada). Elles ont egalite de rang avec toutes les debentures et
autres titres secondaires de la Banque emises et en circulation de temps a autre
en vertu de l'acte de fiducie et des actes de fiducie existants ("Existing Trust
Indentures"), ainsi que ce terme est defini dans l'acte de fiducie,
(collectivement, les "actes de fiducie"). Les actes de fiducie prevoient qu'en
cas d'insolvabilite ou de liquidation de la Banque, la dette constatee par
toutes les debentures et autres titres secondaires emises en vertu de ceux-ci, y
compris les debentures de la serie 21, sera subordonnee, quant au droit de
paiement, au paiement prioritaire et integral du passif-depots de la Banque,
sauf des elements de passif qui, selon leurs modalites, ont un rang egal ou
subordonne a la dette constatee par toutes ces debentures et autres titres
secondaires. Il y a lieu de se reporter a l'acte de fiducie pour le detail des
droits des porteurs de debentures de la serie 21, ceux de la Banque et du
fiduciaire et pour les modalites en vertu desquelles les debentures de la serie
21 sont emises et detenues, a l'ensemble desquels le porteur de Cette debenture
acquiesce par son acceptation des presentes.
Les debentures de la serie 21 ne peuvent en aucun cas etre remboursees par
anticipation avant le 9 mai 2006. Sous reserve des dispositions de la Loi sur
les banques (Canada), y compris l'approbation prealable du Surintendant des
institutions financieres, la Banque peut, a son gre, rembourser par anticipation
la totalite, mais non moins de la totalite, des debentures de la serie 21 le 9
mai 2006 ou a toute date de paiement d'interet par la suite, moyennant un avis
prealable d'au moins 30 jours et d'au plus 60 jours, ainsi qu'il est prevu dans
l'acte de fiducie, au pair majore des interets courus et impayes a la date fixee
pour le remboursement .
Apres le cinquieme anniversaire de la date d'emission des debentures de la
serie 21, la Banque peut, avec l'approbation prealable du Surintendant des
institutions financieres, acheter les debentures de la serie 21 sur le marche
libre, ou par xxxxx d'offres ou par convention privee, a quelque prix que ce
soit.
Le 9 mai 2006 (la "date de conversion"), le porteur inscrit de cette
debenture de la serie 21 peut, a condition d'avoir recu un avis de la Banque,
lequel ne peut etre donne qu'avec l'approbation
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prealable du Surintendant des institutions financieres, convertir ("l'option de
conversion") la totalite, mais non moins de la totalite, de cette debenture de
la serie 21 en un montant en capital global equivalent de nouvelles debentures
(xxxxxx qu'elles sont definies dans l'acte de fiducie). Le cas echeant, cet avis
de la Banque sera donne aux porteurs inscrits des debentures de la serie 21 au
moins 30 jours et au plus 60 jours avant la date de conversion, ainsi qu'il est
prevu dans l'acte de fiducie, et ces porteurs auront alors l'option d'effectuer
cette conversion selon les modalites prevues dans l'acte de fiducie. L'option de
conversion peut etre levee par le porteur en remplissant le formulaire de levee
de l'option de conversion qui se trouve au verso de la presente et en livrant et
cedant cette debenture de la serie 21 au fiduciaire ou son mandataire a l'un de
leurs bureaux principaux dans les villes mentionnees ci-apres ou a tout autre
endroit mentionne dans l'avis de la Banque au plus tard a 16 h (heure de
Toronto) a la date de conversion. La levee de l'option de conversion est
irrevocable.
L'acte de fiducie prevoit, entre autres: (a) la decheance du terme de cette
debenture de la serie 21 en cas de defaut (tel que defini dans l'acte de
fiducie) et (b) la tenue d'assemblees des porteurs de debentures et
l'assujettissement de tous les porteurs de debentures a certaines decisions
prises a ces assemblees.
Cette debenture de la serie 21 est transferable aux bureaux principaux du
fiduciaire, ou de son mandataire, a Halifax, Montreal, Toronto, Winnipeg,
Xxxxxx, Calgary ou Vancouver, et a tels autres endroits que la Banque pourra
designer de temps a autre avec l'approbation du fiduciaire, et ne peut etre
transferee que par son porteur inscrit ou son fonde de pouvoir dument autorise
par ecrit.
Cette debenture de la serie 21 ne prend effet que lorsqu'elle est attestee
par le fiduciaire ou en son nom.
EN FOI DE QUOI, cette debenture de la serie 21 a ete dument signee et le
sceau de la Banque y a ete appose en date du 9 mai 1996.
BANQUE DE MONTREAL
Par: et:
-------------------------------- ------------------------------------
President du conseil Secretaire
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(Form of Transfer)
POUR VALEUR RECUE, le soussigne vend, cede et transfere a
-------------------------------------
(Nom du nouveau porteur)
-------------------------------------
(Adresse postale)
la presente debenture de la serie 21 et par les presentes autorise
irrevocablement le fiduciaire et lui ordonne de transferer cette debenture de la
serie 21 dans le registre des porteurs au nom du nouveau porteur designe
ci-dessus.
Le
-------------------------------------
Signature attestee par:
------------------------------------- ----------------------------------------
Signature du garant** Signature du porteur inscrit*
* Le signature doit correspondre au nom du porteur inscrit indique sur le
registre des porteurs.
** Xx xxxxxx doit etre une banque a charte canadienne, une societe de fiducie
ou un membre d'une bourse reconnue.
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(Form of Trustee's Certificate)
ATTESTATION DU FIDUCIAIRE
La presente debenture est une des debentures de la serie 21 emises par Banque
de Montreal en vertu de l'acte de fiducie mentionne aux presentes.
SOCIETE DE FIDUCIE
BANQUE DE MONTREAL
Fiduciaire
Par:
-----------------------------------
Signataire autorise
(Form of Exercise of Conversion Option)
LEVEE DE L'OPTION DE CONVERSION
Le soussigne, etant le porteur inscrit de cette debenture de la serie 21,
choisit par les presentes de convertir cette debenture de la serie 21 en un
montant en capital global equivalent de nouvelles debentures de Banque de
Montreal a la date de conversion et livre et cede irrevocablement cette
debenture de la serie 21 a Societe de fiducie Banque de Montreal, le fiduciaire,
ou son mandataire, aux fins de conversion.
Le
----------------------------------
Signature attestee par :
------------------------------------- ----------------------------------------
Signature du garant** Signature du porteur inscrit*
* Le signature doit correspondre an nom du porteur inscrit indique Osur le
registre des porteurs.
** Xx xxxxxx doit etre une banque a charte canadienne, une societe de fiducie
ou un membre d'une bourse reconnue.
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ARTICLE SIX
EXECUTION
SECTION 6.1. Acceptance of Trust. The Trustee hereby accepts the trusts in
this Second Supplemental Indenture declared and provided for and agrees to
perform the same upon the terms and conditions and subject to the provisions
herein and in the Original Trust Indenture set forth.
SECTION 6.2. Counterparts and Formal Date. This Second Supplemental
Indenture may be executed in several counterparts, each of which so executed
shall be deemed to be an original, and such counterparts together shall
constitute one and the same instrument and notwithstanding their date of
execution shall be deemed to bear date as of May 9, 1996.
IN WITNESS WHEREOF the parties hereto have executed these presents under
the hands of their proper officers in that behalf.
BANK OF MONTREAL - BANQUE DE MONTREAL
By: (Signed) Xxxxx Xxxxx
Senior Vice-President
THE TRUST COMPANY OF BANK OF MONTREAL -
SOCIETE DE FIDUCIE BANQUE DE MONTREAL
By: (Signed) Xxxxxxxx Xxxxxxx
Senior Manager, Indenture Trust
The Trust Company of Bank of Montreal
And: (Signed) Xxxxxxx X. Xxxxxxx
Vice-President, Trust Product Development and Administration
The Trust Company of Bank of Montreal
(Seal)
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