Exhibit 4.1(b)
EXECUTION COPY
XXXXXX WIRELESS INC.,
Issuer
And
JPMORGAN CHASE BANK, N.A.,
Trustee
INDENTURE
Dated as of November 30, 2004
Floating Rate Senior (Secured) Notes due 2010
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RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939
AND INDENTURE, DATED AS OF NOVEMBER 30, 2004*
TRUST INDENTURE
ACT SECTION INDENTURE SECTION
Section 310 (a)(1) ................................................................................. 609
(a)(2) ................................................................................. 609
(b) .................................................................................... 608, 610
Section 312 (c) .................................................................................... 701
Section 314 (a) .................................................................................... 703
(a)(4) ................................................................................. 1014
(b) .................................................................................... 1202
(c)(1) ................................................................................. 103
(c)(2) ................................................................................. 103
(e) .................................................................................... 103
Section 315 (b) .................................................................................... 602
Section 316 (a)(last sentence) ..................................................................... 101 ("Outstanding")
(a)(1)(A) .............................................................................. 502, 512
(a)(1)(B) .............................................................................. 513
(b) .................................................................................... 508
(c) .................................................................................... 105
Section 317 (a)(1) ................................................................................. 503
(a)(2) ................................................................................. 504
(b) .................................................................................... 1003
Section 318 (a) .................................................................................... 108
-----------------
* This reconciliation and tie shall not, for any purpose, be deemed to be
part of the Indenture.
TABLE OF CONTENTS
Page
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ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
SECTION 101. DEFINITIONS......................................................................................... 1
"Acquired Debt"................................................................................ 2
"Additional Securities"........................................................................ 2
"Adjusted Treasury Rate"....................................................................... 2
"Affiliate".................................................................................... 2
"Agent Member"................................................................................. 2
"Applicable Procedures"........................................................................ 2
"Attributable Debt"............................................................................ 2
"bank credit facility"......................................................................... 3
"Board of Directors"........................................................................... 3
"Board Resolution"............................................................................. 3
"Business Day"................................................................................. 3
"Calculation Agent"............................................................................ 3
"Canadian Dollars", "Cdn Dollars" and "Cdn$" each.............................................. 3
"Capital Lease Obligation"..................................................................... 3
"Capital Stock"................................................................................ 3
"cash equivalents"............................................................................. 4
"Collateral Documents"......................................................................... 4
"Commission"................................................................................... 4
"Common Stock"................................................................................. 4
"Company"...................................................................................... 4
"Company Request" or "Company Order"........................................................... 4
"Comparable Treasury Issue".................................................................... 4
"Comparable Treasury Price".................................................................... 4
"Consolidated Net Tangible Assets"............................................................. 4
"Consolidated Tangible Assets"................................................................. 5
"Consolidation"................................................................................ 5
"Corporate Trust Office"....................................................................... 5
"Debt" ...................................................................................... 5
"Deed of Trust"................................................................................ 6
"Deed of Trust Bondholders".................................................................... 6
"Deed of Trust Bonds".......................................................................... 6
"Deed of Trust Collateral"..................................................................... 6
"Deed Trustee"................................................................................. 6
"Default"...................................................................................... 6
"Depositary"................................................................................... 6
"Determination Date"........................................................................... 6
"Disqualified Stock"........................................................................... 6
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"Event of Default"............................................................................. 7
"Exchange Act"................................................................................. 7
"Exchange Offer"............................................................................... 7
"Exchange Offer Registration Statement"........................................................ 7
"Exchange Securities".......................................................................... 7
"Excluded Assets".............................................................................. 7
"Excluded Securities".......................................................................... 7
"Fifth Anniversary"............................................................................ 8
"Fitch IBCA"................................................................................... 8
"Generally Accepted Accounting Principles" or "GAAP"........................................... 8
"Holder" ...................................................................................... 8
"Indenture".................................................................................... 8
"Indenture Obligations"........................................................................ 8
"Initial Securities"........................................................................... 8
"Inter-Company Deeply Subordinated Debt"....................................................... 8
"Inter-Company Subordinated Debt".............................................................. 8
"Interest Payment Date"........................................................................ 9
"Interest Period".............................................................................. 9
"Investment"................................................................................... 9
"Investment Grade Rating"...................................................................... 9
"LIBOR" ....................................................................................... 9
"Lien" ...................................................................................... 10
"London Banking Day"........................................................................... 10
"Maturity"..................................................................................... 10
"Xxxxx'x"...................................................................................... 10
"Officers' Certificate"........................................................................ 10
"Opinion of Counsel"........................................................................... 10
"Other Senior Notes"........................................................................... 10
"Outstanding".................................................................................. 10
"Paying Agent"................................................................................. 11
"Person" ...................................................................................... 11
"Pledge Agreement"............................................................................. 11
"Predecessor Security"......................................................................... 11
"Preferred Stock".............................................................................. 11
"Principal Property"........................................................................... 12
"Purchase Money Obligations"................................................................... 12
"QIB" ...................................................................................... 12
"Quotation Agent".............................................................................. 12
"Rating Agencies".............................................................................. 12
"Rating Date".................................................................................. 12
"Rating Decline"............................................................................... 12
"RCI" ...................................................................................... 12
"Redemption Date".............................................................................. 12
"Redemption Price"............................................................................. 12
"Reference Treasury Dealer".................................................................... 13
"Reference Treasury Dealer Quotations"......................................................... 13
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"Registration Rights Agreement"................................................................ 13
"Registration Statement"....................................................................... 13
"Regular Record Date".......................................................................... 13
"Regulation S"................................................................................. 13
"Responsible Officer".......................................................................... 13
"Restricted Subsidiary"........................................................................ 13
"Xxxxxx Entities".............................................................................. 14
"Rule 144A".................................................................................... 14
"Sale and Leaseback Transaction"............................................................... 14
"Secured Debt"................................................................................. 14
"Securities Act"............................................................................... 14
"Security" and "Securities".................................................................... 14
"Senior Debt".................................................................................. 15
"Senior Subordinated Notes".................................................................... 15
"Shelf Registration Statement"................................................................. 15
"Special Record Date".......................................................................... 15
"S&P" ...................................................................................... 15
"Stated Maturity".............................................................................. 15
"Subsidiary"................................................................................... 15
"Supplier Obligations"......................................................................... 15
"Tangible Assets".............................................................................. 15
"Telerate Page 3750"........................................................................... 16
"Trust Bond"................................................................................... 16
"Trust Estate"................................................................................. 16
"Trust Indenture Act".......................................................................... 16
"Trustee"...................................................................................... 16
"U.S. Dollars", "United States Dollars", "U.S.$" and the symbol "$"............................ 16
"Unrestricted Subsidiary"...................................................................... 16
"Voting Shares"................................................................................ 16
SECTION 102. OTHER DEFINITIONS................................................................................... 16
SECTION 103. COMPLIANCE CERTIFICATES AND OPINIONS................................................................ 18
SECTION 104. FORM OF DOCUMENTS DELIVERED TO THE TRUSTEE.......................................................... 18
SECTION 105. ACTS OF HOLDERS..................................................................................... 19
SECTION 106. NOTICES, ETC., TO TRUSTEE AND COMPANY............................................................... 20
SECTION 107. NOTICE TO HOLDERS; WAIVER........................................................................... 20
SECTION 108. CONFLICT OF ANY PROVISION OF INDENTURE WITH THE TRUST INDENTURE ACT................................. 21
SECTION 109. EFFECT OF HEADINGS AND TABLE OF CONTENTS............................................................ 21
SECTION 110. SUCCESSORS AND ASSIGNS.............................................................................. 21
SECTION 111. SEPARABILITY CLAUSE................................................................................. 21
SECTION 112. BENEFITS OF INDENTURE............................................................................... 21
SECTION 113. GOVERNING LAW....................................................................................... 21
SECTION 114. LEGAL HOLIDAYS...................................................................................... 22
SECTION 115. AGENT FOR SERVICE; SUBMISSION TO JURISDICTION; WAIVER OF IMMUNITIES................................. 22
SECTION 116. CONVERSION OF CURRENCY.............................................................................. 22
SECTION 117. CURRENCY EQUIVALENT................................................................................. 24
SECTION 118. NO RECOURSE AGAINST OTHERS.......................................................................... 24
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SECTION 119. RELIANCE ON FINANCIAL DATA.......................................................................... 24
SECTION 120. DOCUMENTS IN ENGLISH................................................................................ 25
ARTICLE TWO
SECURITY FORMS
SECTION 201. FORMS GENERALLY..................................................................................... 25
SECTION 202. RESTRICTIVE LEGENDS................................................................................. 26
SECTION 203. FORM OF FACE OF SECURITY............................................................................ 28
SECTION 204. FORM OF REVERSE OF SECURITY......................................................................... 31
SECTION 205. FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION..................................................... 34
ARTICLE THREE
THE SECURITIES
SECTION 301. TITLE AND TERMS..................................................................................... 35
SECTION 302. DENOMINATIONS....................................................................................... 36
SECTION 303. EXECUTION, AUTHENTICATION, DELIVERY AND DATING...................................................... 36
SECTION 304. TEMPORARY SECURITIES................................................................................ 37
SECTION 305. REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE................................................. 37
SECTION 306. BOOK-ENTRY PROVISIONS FOR GLOBAL SECURITIES......................................................... 38
SECTION 307. SPECIAL TRANSFER PROVISIONS......................................................................... 40
SECTION 308. MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES.................................................... 42
SECTION 309. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED...................................................... 43
SECTION 310. PERSONS DEEMED OWNERS............................................................................... 44
SECTION 311. CANCELLATION........................................................................................ 44
SECTION 312. COMPUTATION OF INTEREST............................................................................. 44
ARTICLE FOUR
DEFEASANCE AND COVENANT DEFEASANCE
SECTION 401. COMPANY'S OPTION TO EFFECT DEFEASANCE OR COVENANT DEFEASANCE........................................ 45
SECTION 402. DEFEASANCE AND DISCHARGE............................................................................ 45
SECTION 403. COVENANT DEFEASANCE................................................................................. 46
SECTION 404. CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE..................................................... 46
SECTION 405. DEPOSITED MONEY AND U.S. GOVERNMENT OBLIGATIONS TO BE HELD IN TRUST; OTHER MISCELLANEOUS
PROVISIONS..................................................................................... 49
SECTION 406. REINSTATEMENT....................................................................................... 49
ARTICLE FIVE
REMEDIES
SECTION 501. EVENTS OF DEFAULT................................................................................... 50
SECTION 502. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.................................................. 53
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SECTION 503. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE..................................... 55
SECTION 504. TRUSTEE MAY FILE PROOFS OF CLAIM.................................................................... 56
SECTION 505. TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES......................................... 56
SECTION 506. APPLICATION OF MONEY COLLECTED...................................................................... 57
SECTION 507. LIMITATION ON SUITS................................................................................. 57
SECTION 508. UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM AND INTEREST........................... 58
SECTION 509. RESTORATION OF RIGHTS AND REMEDIES.................................................................. 58
SECTION 510. RIGHTS AND REMEDIES CUMULATIVE...................................................................... 58
SECTION 511. DELAY OR OMISSION NOT WAIVER........................................................................ 58
SECTION 512. CONTROL BY HOLDERS.................................................................................. 59
SECTION 513. WAIVER OF PAST DEFAULTS............................................................................. 59
SECTION 514. UNDERTAKING FOR COSTS............................................................................... 59
SECTION 515. WAIVER OF STAY, EXTENSION OR USURY LAWS............................................................. 60
SECTION 516. CHANGE IN CONTROL OFFER............................................................................. 60
ARTICLE SIX
THE TRUSTEE
SECTION 601. CERTAIN DUTIES AND RESPONSIBILITIES................................................................. 62
SECTION 602. NOTICE OF DEFAULTS.................................................................................. 63
SECTION 603. CERTAIN RIGHTS OF TRUSTEE........................................................................... 64
SECTION 604. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.............................................. 65
SECTION 605. MAY HOLD SECURITIES................................................................................. 65
SECTION 606. MONEY HELD IN TRUST................................................................................. 65
SECTION 607. COMPENSATION, REIMBURSEMENT AND INDEMNITY........................................................... 65
SECTION 608. CONFLICTING INTERESTS............................................................................... 66
SECTION 609. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY............................................................. 66
SECTION 610. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR................................................... 66
SECTION 611. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.............................................................. 68
SECTION 612. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS......................................... 68
SECTION 613. TRUSTEE NOT TO BE APPOINTED RECEIVER................................................................ 68
SECTION 614. ACCEPTANCE OF TRUSTS................................................................................ 68
ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701. DISCLOSURE OF NAMES AND ADDRESSES OF HOLDERS........................................................ 69
SECTION 702. REPORTS BY TRUSTEE.................................................................................. 69
SECTION 703. REPORTS BY COMPANY.................................................................................. 69
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ARTICLE EIGHT
AMALGAMATION, CONSOLIDATION, MERGER, CONVEYANCE,
TRANSFER OR LEASE
SECTION 801. COMPANY MAY AMALGAMATE, ETC., ONLY ON CERTAIN TERMS................................................. 70
SECTION 802. SUCCESSOR SUBSTITUTED............................................................................... 71
SECTION 803. SECURITIES TO BE SECURED IN CERTAIN EVENTS.......................................................... 71
ARTICLE NINE
SUPPLEMENTS AND AMENDMENTS TO INDENTURE AND
COLLATERAL DOCUMENTS
SECTION 901. SUPPLEMENTAL INDENTURES AND AMENDMENTS WITHOUT CONSENT OF HOLDERS................................... 72
SECTION 902. ACTIONS BY THE TRUSTEE UNDER THE DEED OF TRUST...................................................... 72
SECTION 903. SUPPLEMENTAL INDENTURES AND CERTAIN AMENDMENTS WITH CONSENT OF HOLDERS.............................. 74
SECTION 904. AMENDMENTS TO COLLATERAL DOCUMENTS.................................................................. 75
SECTION 905. EXECUTION OF SUPPLEMENTAL INDENTURES................................................................ 75
SECTION 906. EFFECT OF SUPPLEMENTAL INDENTURES................................................................... 75
SECTION 907. CONFORMITY WITH THE TRUST INDENTURE ACT............................................................. 75
SECTION 908. REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES.................................................. 76
SECTION 909. EXECUTION OF SUBORDINATION AGREEMENTS............................................................... 76
ARTICLE TEN
COVENANTS
SECTION 1001. PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST......................................................... 76
SECTION 1002. MAINTENANCE OF OFFICES OR AGENCIES................................................................. 76
SECTION 1003. MONEY FOR SECURITY PAYMENTS TO BE HELD IN TRUST.................................................... 77
SECTION 1004. CORPORATE EXISTENCE................................................................................ 78
SECTION 1005. PAYMENT OF TAXES AND OTHER CLAIMS.................................................................. 78
SECTION 1006. MAINTENANCE OF PROPERTIES.......................................................................... 78
SECTION 1007. LIMITATION ON LIENS................................................................................ 79
SECTION 1008. RESTRICTED SUBSIDIARIES............................................................................ 81
SECTION 1009. LIMITATION ON SECURED DEBT......................................................................... 82
SECTION 1010. LIMITATION ON SALE AND LEASEBACK TRANSACTIONS...................................................... 83
SECTION 1011. LIMITATION ON RESTRICTED SUBSIDIARY DEBT........................................................... 83
SECTION 1012. PROVISION OF FINANCIAL INFORMATION................................................................. 84
SECTION 1013. PAYMENT OF ADDITIONAL AMOUNTS...................................................................... 84
SECTION 1014. STATEMENT AS TO COMPLIANCE......................................................................... 85
SECTION 1015. WAIVER OF CERTAIN COVENANTS........................................................................ 86
SECTION 1016. RELEASE OF SECURITY................................................................................ 86
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ARTICLE ELEVEN
REDEMPTION OF SECURITIES
SECTION 1101. RIGHT OF REDEMPTION................................................................................ 87
SECTION 1102. APPLICABILITY OF ARTICLE........................................................................... 87
SECTION 1103. ELECTION TO REDEEM; NOTICE TO TRUSTEE.............................................................. 87
SECTION 1104. SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED.................................................. 88
SECTION 1105. NOTICE OF REDEMPTION............................................................................... 88
SECTION 1106. DEPOSIT OF REDEMPTION PRICE........................................................................ 89
SECTION 1107. SECURITIES PAYABLE ON REDEMPTION DATE.............................................................. 89
SECTION 1108. SECURITIES REDEEMED IN PART........................................................................ 89
SECTION 1109. EFFECT OF CHANGE IN CONTROL PURCHASE NOTICE........................................................ 89
SECTION 1110. DEPOSIT OF CHANGE IN CONTROL PURCHASE PRICE........................................................ 90
SECTION 1111. SECURITIES PURCHASED IN PART....................................................................... 90
SECTION 1112. REPAYMENT TO THE COMPANY........................................................................... 91
ARTICLE TWELVE
SECURITY DOCUMENTS
SECTION 1201. PLEDGE AGREEMENT................................................................................... 91
SECTION 1202. RECORDING.......................................................................................... 92
SECTION 1203. CUSTODY OF TRUST ESTATE............................................................................ 92
SECTION 1204. SUITS TO PROTECT THE TRUST ESTATE.................................................................. 93
SECTION 1205. RELEASE UPON TERMINATION OF THE COMPANY'S OBLIGATIONS.............................................. 93
TESTIMONIUM...................................................................................................... 100
SIGNATURES....................................................................................................... 100
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EXHIBITS
A - Provisions for Inter-Company Deeply Subordinated Debt
B - Provisions for Inter-Company Subordinated Debt
C - Form of Pledge Agreement
D - Form of Certificate to be delivered in connection with
Transfers from Restricted Global Security to Regulation S
Global Security
E - Form of Certificate to be delivered in connection with
Transfers from Regulation S Global Security to Restricted
Global Security
F - Form of Certificate for Transfer or Exchange after two years
G - Form of Subordination Agreement
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INDENTURE dated as of November 30, 2004 between Xxxxxx Wireless
Inc., a corporation organized under the Canada Business Corporations Act
(hereinafter called the "Company"), and JPMorgan Chase Bank, N.A., a national
banking association organized under the laws of the United States, as trustee
(hereinafter called the "Trustee").
RECITALS OF THE COMPANY
WHEREAS, the Company has duly authorized the creation of and issue
of its Floating Rate Senior (Secured) Notes due 2010 (hereinafter called the
"Initial Securities") and Floating Rate Exchange Senior (Secured) Notes due 2010
(hereinafter called the "Exchange Securities" and, together with the Initial
Securities, the "Securities"), of substantially the tenor and amount hereinafter
set forth, and to provide therefor the Company has duly authorized the execution
and delivery of this Indenture;
WHEREAS, the Company's obligations under the Securities are secured
as provided in this Indenture (subject to the release of such security in
accordance with this Indenture);
WHEREAS, upon the effectiveness of the Exchange Offer Registration
Statement or the Shelf Registration Statement, as the case may be, this
Indenture will be subject to, and shall be governed by, applicable provisions of
the Trust Indenture Act; and
WHEREAS, all things necessary have been done to make the Securities,
when executed and duly issued by the Company and authenticated and delivered
hereunder by the Trustee, the valid obligations of the Company, and to make this
Indenture a valid agreement of the Company, each in accordance with their
respective terms, and to secure the Securities as contemplated in the Pledge
Agreement.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Securities, as follows:
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
SECTION 101. DEFINITIONS.
For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:
(a) the terms defined in this Article have the meanings assigned to
them in this Article, and include the plural as well as the singular;
(b) all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;
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(c) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles in Canada;
(d) the words "herein", "hereof" and "hereunder" and other words of
similar import refer to this Indenture as a whole and not to any
particular Article, Section or other subdivision;
(e) the words "include", "includes" and "including" as used herein
shall be deemed in each case to be followed by the phrase "without
limitation"; and
(f) the words "amendment or refinancing" as used herein shall be
deemed in each case to refer to any amendment, renewal, extension,
substitution, refinancing, restructuring, restatement, replacement,
supplement or other modification of any instrument or agreement; the words
"amended or refinanced" shall have a correlative meaning.
Certain terms, used principally in Articles Five and Ten, are
defined in those Articles.
"Acquired Debt" means Debt of a Person (including an Unrestricted
Subsidiary) existing at the time such Person becomes a Restricted Subsidiary or
assumed in connection with the acquisition of assets from such Person.
"Additional Securities" means up to an unlimited additional
aggregate principal amount of Securities that may be issued under a supplemental
indenture after the date that the Securities are first issued by the Company and
authenticated by the Trustee under this Indenture, which shall rank pari passu
with the Securities initially issued in all respects.
"Adjusted Treasury Rate" means, with respect to any Redemption Date,
the rate per annum equal to the semiannual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for the Redemption Date.
"Affiliate" means, with respect to any specified Person, any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person. For the purposes of this
definition, "control" when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.
"Agent Member" means any members of, or participants in, the
Depositary.
"Applicable Procedures" means applicable procedures of the
Depositary, Euroclear System or Clearstream Banking, societe anonyme, as the
case may be.
"Attributable Debt" means, as of the date of its determination, the
present value (discounted semiannually at an interest rate implicit in the terms
of the lease) of the obligation of a lessee for rental payments pursuant to any
Sale and Leaseback Transaction (reduced by the
2
amount of the rental obligations of any sublessee of all or part of the same
property) during the remaining term of such Sale and Leaseback Transaction
(including any period for which the lease relating thereto has been extended),
such rental payments not to include amounts payable by the lessee for
maintenance and repairs, insurance, taxes, assessments and similar charges and
for contingent rates (such as those based on sales), provided, however, that in
the case of any Sale and Leaseback Transaction in which the lease is terminable
by the lessee upon the payment of a penalty, Attributable Debt shall mean the
lesser of the present value of (i) the rental payments to be paid under such
Sale and Leaseback Transaction until the first date (after the date of such
determination) upon which it may be so terminated plus the then applicable
penalty upon such termination and (ii) the rental payments required to be paid
during the remaining term of such Sale and Leaseback Transaction (assuming such
termination provision is not exercised).
"bank credit facility" means any credit agreement or working capital
facility among the Company and/or its Subsidiaries and one or more lenders, as
such credit agreement or working capital facility may be amended, renewed,
extended, substituted, refinanced, restructured, replaced, supplemented or
otherwise modified (including with other lenders) from time to time, regardless
of whether any other credit agreement or working capital facility or any portion
thereof was outstanding or in effect at the time of such amendment, renewal,
extension, substitution, refinancing, restructuring, replacement, supplement or
modification.
"Board of Directors" means the board of directors of the Company or
any duly authorized committee of such board.
"Board Resolution" means a copy of a resolution certified by the
General Counsel, Secretary or an Assistant Secretary of the Company to have been
duly adopted by the Board of Directors and to be in full force and effect on the
date of such certification, and delivered to the Trustee.
"Business Day" means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions and trust companies in
The City of New York or the City of Toronto are authorized or obligated by law,
regulation or executive order to be closed.
"Calculation Agent" means any Calculation Agent appointed from time
to time by the Company in accordance with the terms of this Indenture. A
Calculation Agent must be a commercial banking institution with offices in New
York City with at least U.S.$500 million in capital. The initial Calculation
Agent will be JPMorgan Chase Bank, N.A.
"Canadian Dollars", "Cdn Dollars" and "Cdn$" each mean lawful
currency of Canada.
"Capital Lease Obligation" means, with respect to any Person, an
obligation incurred or assumed in the ordinary course of business under or in
connection with any capital lease of real or personal property which, in
accordance with GAAP, has been recorded as a capitalized lease.
"Capital Stock" means, with respect to any Person, any and all
shares, interests, participations or equivalents (however designated) of such
Person's capital stock whether now
3
outstanding or issued after the date of this Indenture, including, without
limitation, all Common Stock and Preferred Stock.
"cash equivalents" means money, certified cheques, demand deposit
accounts held by the Deed Trustee or other instruments or investments of
equivalent liquidity and safety.
"Collateral Documents" means, collectively, the Trust Bond, the Deed
of Trust and the Pledge Agreement and each other agreement or instrument
executed and delivered pursuant to or in connection therewith or which otherwise
contains a guarantee of, or grants a Lien to secure, the Trust Bond or any
guarantee thereof.
"Commission" means the United States Securities and Exchange
Commission, as from time to time constituted, created under the Exchange Act, or
if at any time after the execution of this Indenture such Commission is not
existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.
"Common Stock" means, with respect to any Person, any and all
shares, interests and participations (however designated and whether voting or
non-voting) in such Person's common equity, whether now outstanding or issued
after the date of this Indenture, and includes, without limitation, all series
and classes of such common stock.
"Company" means the Person named as the "Company" in the first
paragraph of this Indenture, until a successor Person shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor Person. To the extent necessary to comply
with the requirements of the provisions of Trust Indenture Act Sections 310
through 317 as they are applicable to the Company, the term "Company" shall
include any other obligor with respect to the Securities for the purposes of
complying with such provisions.
"Company Request" or "Company Order" means a written request or
order signed in the name of the Company by any two of the following officers:
its Chairman of the Board of Directors, any Vice Chairman, its President, any
Executive Vice President, any Senior Vice President, any Vice President, its
Treasurer, its Secretary or its General Counsel, and delivered to the Trustee.
"Comparable Treasury Issue" means the United States Treasury
security selected by the Quotation Agent as having a maturity comparable to the
remaining term of the Securities being redeemed that would be utilized, at the
time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt of comparable maturity to the remaining
term of the Securities.
"Comparable Treasury Price" means, with respect to any Redemption
Date, the average of the Reference Treasury Dealer Quotations for the Redemption
Date.
"Consolidated Net Tangible Assets" means the Consolidated Tangible
Assets of any Person, less such Person's current liabilities.
4
"Consolidated Tangible Assets" means the sum of the Tangible Assets
of any Person after eliminating inter-company items, determined on a
Consolidated basis in accordance with GAAP including appropriate deductions for
any minority interest in Tangible Assets of such Person's Restricted
Subsidiaries.
"Consolidation" means the consolidation of the accounts of the
Restricted Subsidiaries with those of the Company, if and to the extent the
accounts of each such Restricted Subsidiary would normally be consolidated with
those of the Company, all in accordance with GAAP; provided, however, that
"Consolidation" will not include consolidation of the accounts of any
Unrestricted Subsidiary. For purposes of clarification, it is understood that,
subject to the immediately preceding sentence, the accounts of the Company or
any Restricted Subsidiary include the accounts of any Person, the beneficial
interests in which are controlled (in accordance with GAAP) by the Company or
any such Restricted Subsidiary. The term "Consolidated" shall have a correlative
meaning.
"Corporate Trust Office" means the office of the Trustee at which at
any particular time its corporate trust business shall be principally
administered. At the date of execution of this Indenture, the Corporate Trust
Office of the Trustee is located at 4 New York Plaza, 15th Floor, New York, New
York 10004.
"Debt" means, with respect to any Person, without duplication and
(except as provided in clause (ii) below) without regard to any interest
component thereof (whether actual or imputed) that is not due and payable:
(i) money borrowed (including, without limitation, by way of
overdraft) or indebtedness represented by notes payable and drafts
accepted representing extensions of credit;
(ii) the face amount of any drafts of a corporation in Canadian
Dollars and accepted by a Canadian lender for discount in Canada;
(iii) all obligations (whether or not with respect to the borrowing
of money) which are evidenced by bonds, debentures, notes or similar
instruments or not so evidenced but which would be considered to be
indebtedness for borrowed money in accordance with GAAP;
(iv) all liabilities upon which interest charges are customarily
paid by such Person;
(v) shares of Disqualified Stock not held by the Company or a wholly
owned Restricted Subsidiary;
(vi) Capital Lease Obligations, Purchase Money Obligations and
Supplier Obligations, determined in each case in accordance with GAAP;
(vii) Acquired Debt; and
5
(viii) any guarantee (other than by endorsement of negotiable
instruments for collection or deposit in the ordinary course of business)
in any manner of any part or all of an obligation included in clauses (i)
through (vii) above;
provided that "Debt" shall not include (A) trade payables and accrued
liabilities which are current liabilities incurred in the ordinary course of
business, (B) Inter-Company Deeply Subordinated Debt, and (C) except as
otherwise expressly provided herein, Inter-Company Subordinated Debt.
"Deed of Trust" means the Amended and Restated Deed of Trust and
Mortgage dated as of March 15, 1997, between the Company and the Deed Trustee,
as amended by the First Supplemental Deed of Trust and Mortgage dated March 19,
1997, as in effect on the date hereof and as such agreement may be amended,
restated, supplemented or otherwise modified from time to time.
"Deed of Trust Bondholders" means, collectively, the holders of the
Deed of Trust Bonds from time to time.
"Deed of Trust Bonds" means, collectively, the Trust Bond and any
other bonds from time to time issued and outstanding under the Deed of Trust.
"Deed of Trust Collateral" means, collectively, all of the property
and assets that are intended from time to time to secure the Deed of Trust Bonds
or any guarantee thereof pursuant to the Collateral Documents.
"Deed Trustee" means National Trust Company, a trust company
subsisting under the laws of the Province of Ontario, Canada and its successors
and assigns, as trustee under the Deed of Trust.
"Default" means any event which is, or after notice or passage of
time or both would be, an Event of Default.
"Depositary" means The Depository Trust Company, its nominees and
their respective successors.
"Determination Date" means, with respect to an Interest Period, the
second London Banking Day preceding the first day of the Interest Period.
"Disqualified Stock" means any Capital Stock of the Company or any
Restricted Subsidiary which, by its terms (or by the terms of any security into
which it is convertible or for which it is exchangeable at the option of the
holder) or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable
at the option of the holder thereof, in whole or in part, on or prior to the
maturity date of the Securities, for cash or securities constituting Debt;
provided that shares of Preferred Stock of the Company or any Restricted
Subsidiary that are issued with the benefit of provisions requiring a change in
control offer to be made for such shares in the event of a change in control of
the Company or such Restricted Subsidiary, which provisions have substantially
the same effect as the relevant provisions of Sections 501 and 516 hereof, shall
not be deemed to be
6
"Disqualified Stock" solely by virtue of such provisions. For purposes of this
definition, the term "Debt" includes Inter-Company Subordinated Debt.
"Event of Default" has the meaning specified in Article Five.
"Exchange Act" means the United States Securities Exchange Act of
1934, as amended, and as in force at the date as of which this instrument was
executed.
"Exchange Offer" means the exchange offer that may be effected
pursuant to the Registration Rights Agreement.
"Exchange Offer Registration Statement" means the Exchange Offer
Registration Statement as defined in the Registration Rights Agreement.
"Exchange Securities" has the meaning stated in the first recital of
this Indenture and refers to any Exchange Securities containing terms
substantially identical to, and evidencing the same indebtedness as, the Initial
Securities (except that such Exchange Securities shall not contain terms with
respect to transfer restrictions) that are issued and exchanged for the Initial
Securities in accordance with the Exchange Offer, as provided for in the
Registration Rights Agreement and this Indenture.
"Excluded Assets" means (i) all assets of any Person other than the
Company or a Restricted Subsidiary; (ii) Investments in the Capital Stock of an
Unrestricted Subsidiary held by the Company or a Restricted Subsidiary; (iii)
any Investment by the Company or a Restricted Subsidiary to the extent paid for
with cash or other property that constitutes Excluded Assets or Excluded
Securities, so long as at the time of acquisition thereof and after giving
effect thereto there exists no Default or Event of Default; and (iv) proceeds of
the sale of any Excluded Assets or Excluded Securities received by the Company
or any Restricted Subsidiary from a Person other than the Company or a
Restricted Subsidiary.
"Excluded Securities" means any Debt, Preferred Stock or Common
Stock issued by the Company, or any Debt or Preferred Stock issued by any
Restricted Subsidiary, in either case to an Affiliate thereof other than the
Company or a Restricted Subsidiary; provided that, at all times, such Excluded
Securities shall:
(i) in the case of Debt not owed to the Company or a Restricted
Subsidiary, constitute Inter-Company Deeply Subordinated Debt;
(ii) in the case of Debt, not be guaranteed by the Company or any
Restricted Subsidiary unless such guarantee shall constitute Inter-Company
Deeply Subordinated Debt;
(iii) in the case of Debt, not be secured by any assets or property
of the Company or any Restricted Subsidiary;
(iv) provide by its terms that interest or dividends thereon shall
be payable only to the extent that, after giving effect to any such
payment, no Default or Event of Default shall have occurred and be
continuing; and
7
(v) provide by its terms that no payment (other than payments in the
form of Excluded Securities) on account of principal (at maturity, by
operation of sinking fund or mandatory redemption or otherwise) or other
payment on account of redemption, repurchase, retirement or acquisition of
such Excluded Security shall be permitted until the earlier of (x) the
final Stated Maturity of the Securities or (y) the date on which all
principal of, premium, if any, and interest on the Securities shall have
been duly paid or provided for in full.
"Fifth Anniversary" shall mean the fifth anniversary of the date of
original issuance of the Initial Securities.
"Fitch IBCA" means Fitch IBCA or any successor to such rating agency
business thereof.
"Generally Accepted Accounting Principles" or "GAAP" means generally
accepted accounting principles, in effect in Canada, as applied from time to
time, by the Company in the preparation of its consolidated financial
statements.
"Holder" means a Person in whose name a Security is registered in
the Security Register.
"Indenture" means this instrument as originally executed (including
all exhibits and schedules hereto) and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof.
"Indenture Obligations" means the obligations of the Company and any
other obligor hereunder or under the Securities to pay principal of (and
premium, if any) and interest on the Securities when due and payable at Maturity
and any Additional Amounts, and all other amounts due or to become due under or
in connection with this Indenture, the Securities and the performance of all
other obligations to the Trustee (including all amounts due to the Trustee under
Section 607 hereof) and the Holders under this Indenture and the Securities,
according to the terms hereof and thereof.
"Initial Securities" has the meaning stated in the first recital of
this Indenture.
"Inter-Company Deeply Subordinated Debt" means all indebtedness of
the Company or any of the Restricted Subsidiaries (except from one to the other)
for money borrowed from Xxxxxx Entities under which payments by the Company or
such Restricted Subsidiary, as the case may be, with respect thereto are
subordinated to the Securities in the manner and to the extent set forth in
Exhibit A hereto and in respect of which the agreement or instrument evidencing
such indebtedness contains or incorporates by reference the provisions of
Exhibit A hereto for the benefit of the Trustee and the Holders.
"Inter-Company Subordinated Debt" means all indebtedness of the
Company or any of the Restricted Subsidiaries (except from one to the other) for
money borrowed from Xxxxxx Entities and under which payments by the Company or
such Restricted Subsidiary, as the case may be, with respect thereto are
subordinated to the Securities in the manner and to the extent set forth in
Exhibit B hereto and in respect of which the agreement or instrument
8
evidencing such indebtedness contains or incorporates by reference the
provisions of Exhibit B for the benefit of the Trustee and the Holders.
"Interest Payment Date" means the Stated Maturity of an installment
of interest on the Securities.
"Interest Period" means the period commencing on and including an
Interest Payment Date and ending on and including the day immediately preceding
the next succeeding Interest Payment Date, with the exception that the first
Interest Period shall commence on and include the date of original issuance of
the Securities and end on and include March 14, 2005.
"Investment" means (i) directly or indirectly, any advance, loan or
capital contribution to, the purchase of any stock, bonds, notes, debentures or
other securities of, the acquisition, by purchase or otherwise, of all or
substantially all of the business or assets or stock or other evidence of
beneficial ownership of, any Person or making of any investment in any Person,
(ii) the designation of any Restricted Subsidiary as an Unrestricted Subsidiary
and (iii) the transfer of any assets or properties from the Company or a
Restricted Subsidiary to any Unrestricted Subsidiary, other than the transfer of
assets or properties made in the ordinary course of business. Investments shall
exclude extensions of trade credit on commercially reasonable terms in
accordance with normal trade practices.
"Investment Grade Rating" means a rating equal to or higher than
BBB- (or the equivalent) by S&P, Baa3 (or the equivalent) by Moody's or BBB- (or
the equivalent) by Fitch IBCA.
"LIBOR" with respect to an Interest Period, will be the rate
(expressed as a percentage per annum) for deposits in U.S. dollars for
three-month periods beginning on the first day of such Interest Period that
appears on Telerate Page 3750 as of 11:00 a.m., London time, on the
Determination Date. If Telerate Page 3750 does not include such a rate or is
unavailable on a Determination Date, the Calculation Agent will request the
principal London office of each of four major banks in the London interbank
market, as selected by the Calculation Agent, to provide such bank's offered
quotation (expressed as a percentage per annum), as of approximately 11:00 a.m.,
London time, on such Determination Date, to prime banks in the London interbank
market for deposits in a Representative Amount in U.S. dollars for a three-month
period beginning on the first day of such Interest Period. If at least two such
offered quotations are so provided, LIBOR for the Interest Period will be the
arithmetic mean of such quotations. If fewer than two such quotations are so
provided, the Calculation Agent will request each of three major banks in New
York City, as selected by the Calculation Agent, to provide such bank's rate
(expressed as a percentage per annum), as of approximately 11:00 a.m., New York
City time, on such Determination Date, for loans in a Representative Amount in
U.S. dollars to leading European banks for a three-month period beginning on the
first day of such Interest Period. If at least two such rates are so provided,
LIBOR for the Interest Period will be the arithmetic mean of such rates. If
fewer than two such rates are so provided, then LIBOR for the Interest Period
will be LIBOR in effect with respect to the immediately preceding Interest
Period.
9
"Lien" means any mortgage, charge, pledge, lien, privilege, security
interest, hypothecation and transfer, lease of real property or other
encumbrance upon or with respect to any property of any kind, real or personal,
movable or immovable, now owned or hereafter acquired.
"London Banking Day" means any day in which dealings in U.S. dollars
are transacted or with respect to any future date, are expected to be transacted
in the London interbank market.
"Maturity" when used with respect to any Security means the date on
which the principal of (and premium, if any) and interest on such Security
becomes due and payable as therein or herein provided, whether at the Stated
Maturity or by declaration of acceleration, call for redemption or otherwise.
"Moody's" means Xxxxx'x Investors Service, Inc. or any successor to
such rating agency business thereof.
"Net Tangible Assets" means the Tangible Assets of any Person, less
such Person's current liabilities.
"Officers' Certificate" means a certificate signed by any two of the
following officers of the Company: its Chairman, any Vice Chairman, its
President, any Executive Vice President, any Senior Vice President, any Vice
President, its Treasurer, its Secretary or its General Counsel, and delivered to
the Trustee. Each such certificate shall include the statements provided for in
applicable provisions of the Trust Indenture Act and shall comply with Section
103.
"Opinion of Counsel" means a written opinion of counsel, who may be
counsel for the Company, and who shall be acceptable to the Trustee. Each such
opinion shall include the statements provided for in applicable provisions of
the Trust Indenture Act and shall comply with Section 103.
"Other Senior Notes" means the securities issued on the date hereof
and the exchange securities issued in exchange therefor evidencing indebtedness
under the Company's Senior (Secured) Notes due 2011, Senior (Secured) Notes due
2012 and Senior (Secured) Notes due 2015.
"Outstanding" when used with respect to Securities means, as of the
date of determination, all Securities theretofore authenticated and delivered
under this Indenture, except:
(a) Securities theretofore cancelled by the Trustee or delivered to
the Trustee for cancellation;
(b) Securities, or portions thereof, for whose payment, redemption
or purchase money in the necessary amount has been theretofore deposited
with the Trustee or any Paying Agent (other than the Company) in trust or
set aside and segregated in trust by the Company (if the Company shall act
as its own Paying Agent) for the Holders of such Securities; provided that
if such Securities are to be redeemed, notice of such redemption
10
has been duly given pursuant to this Indenture or provision therefor
satisfactory to the Trustee has been made;
(c) Securities, except to the extent provided in Sections 402 and
403, with respect to which the Company has effected defeasance or covenant
defeasance as provided in Article Four; and
(d) Securities in exchange for or in lieu of which other Securities
have been authenticated and delivered pursuant to this Indenture, other
than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to them that such Securities
are held by a bona fide purchaser in whose hands the Securities are valid
obligations of the Company;
provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Securities have given any request, demand,
direction, consent or waiver hereunder, Securities owned by the Company, or any
other obligor upon the Securities or any Affiliate of the Company or such other
obligor, shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, direction, consent or waiver, only Securities which the Trustee
knows to be so owned shall be so disregarded. Securities so owned which have
been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee's right so to act
with respect to such Securities and that the pledgee is not the Company or any
other obligor upon the Securities or any Affiliate of the Company or such other
obligor.
"Paying Agent" means any Person authorized by the Company to pay the
principal of (or premium, if any) or interest on any Securities on behalf of the
Company.
"Person" means any individual, corporation, partnership, joint
venture, limited liability company, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof, or any other entity.
"Pledge Agreement" means the agreement between the Company and the
Trustee dated as of November 30, 2004 substantially in the form attached as
Exhibit C hereto, pursuant to which the Company has pledged the Trust Bond to
and in favor of the Trustee for and on behalf of the Trustee and each of the
Holders.
"Predecessor Security" of any particular Security means every
previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 308 in exchange for a
mutilated security or in lieu of a lost, destroyed or stolen Security shall be
deemed to evidence the same debt as the mutilated, lost, destroyed or stolen
Security.
"Preferred Stock" means, with respect to any Person, any and all
shares, interests, participations or other equivalents (however designated) of
such Person's preferred or preference stock whether now outstanding or issued
after the date of this Indenture, and includes, without limitation, all classes
and series of preferred or preference stock.
11
"Principal Property" means land, land improvements, buildings and
associated factory, laboratory, office and switching equipment (excluding all
products marketed by the Company or any of its Subsidiaries) constituting a
manufacturing, development, warehouse, service, office or operating facility
owned by or leased to the Company or a Restricted Subsidiary, located within
Canada and having an acquisition cost plus capitalized improvements in excess of
0.25% of Consolidated Net Tangible Assets as of the date of such determination,
other than any such property (i) which the Board of Directors determines is not
of material importance to the Company and its Restricted Subsidiaries taken as a
whole or (ii) in which the interest of the Company and all its Subsidiaries does
not exceed 50%.
"Purchase Money Obligations" means, with respect to any Person,
obligations, other than Capital Lease Obligations and Supplier Obligations,
incurred or assumed in the ordinary course of business in connection with the
purchase of property to be used in the business of such Person.
"QIB" means a Qualified Institutional Buyer pursuant to Rule 144A.
"Quotation Agent" means Citigroup Global Markets Inc. or such other
Reference Treasury Dealer appointed by the Company.
"Rating Agencies" means S&P, Fitch IBCA and Xxxxx'x, and each of
such Rating Agencies is referred to individually as a "Rating Agency".
"Rating Date" means the date which is 90 days prior to the earlier
of (i) a Change in Control and (ii) public notice of the occurrence of a Change
in Control or of the intention of the Company to effect a Change in Control.
"Rating Decline" means the occurrence of the following on, or within
90 days after, the date of public notice of the occurrence of a Change in
Control or of the intention by the Company to effect a Change in Control (which
period may be extended so long as the rating of the Securities is under publicly
announced consideration for possible downgrade by any of the Rating Agencies):
(a) in the event the Securities are assigned an Investment Grade Rating by at
least two of the three Rating Agencies on the Rating Date, the rating of such
Securities by at least two of the three Rating Agencies shall be below an
Investment Grade Rating; or (b) in the event the Securities are rated below an
Investment Grade Rating by at least two of the three Rating Agencies on the
Rating Date, the rating of such Securities by at least two of the three Rating
Agencies shall be decreased by one or more gradations (including gradations
within rating categories as well as between rating categories).
"RCI" means Xxxxxx Communications Inc., a corporation organized
under the laws of the Province of British Columbia, and its successors and
assigns.
"Redemption Date", when used with respect to any Securities to be
redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.
"Redemption Price", when used with respect to any Security to be
redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.
12
"Reference Treasury Dealer" means (1) Citigroup Global Markets Inc.
or its successors; provided, however, that if it shall cease to be a primary
U.S. Government securities dealer in New York City (a "Primary Treasury
Dealer"), the Company shall substitute for it another Primary Treasury Dealer;
and (2) any other Primary Treasury Dealer selected by the Company.
"Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Reference Treasury Dealer, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted by the Reference Treasury Dealer at 5:00 p.m. on the third Business Day
preceding the Redemption Date.
"Registration Rights Agreement" means the Registration Rights
Agreement among the Company and the Initial Purchasers named therein, dated as
of November 30, 2004, relating to the Securities.
"Registration Statement" means the Registration Statement as defined
in the Registration Rights Agreement.
"Regular Record Date" for the interest payable on any Interest
Payment Date means the March 1, June 1, September 1 or December 1 (whether or
not a Business Day), as the case may be, next preceding such Interest Payment
Date.
"Regulation S" means Regulation S under the Securities Act.
"Release Date" shall have the meaning ascribed thereto in Section
1016.
"Representative Amount" means a principal amount of not less than
US$1.0 million for a single transaction in the relevant market at the relevant
time.
"Responsible Officer", when used with respect to the Trustee, means
the chairman or any vice-chairman of the board of directors, the chairman or
vice-chairman of the executive committee of the board of directors, the
president, any vice president, any assistant vice president, the secretary, any
assistant secretary, the treasurer, any assistant treasurer, the cashier, any
assistant cashier, any trust officer or assistant trust officer, the controller
and any assistant controller or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject.
"Restricted Subsidiary" means (a) prior to the Release Date, any
Subsidiary that is a Restricted Subsidiary under the Deed of Trust, and includes
any Unrestricted Subsidiary or other Person, in either case, that becomes a
Restricted Subsidiary in accordance with Section 1008 of this Indenture and
excludes any Person (including any of the foregoing), that ceases to be a
Restricted Subsidiary in accordance with Section 1008 of this Indenture or (b)
on or after the Release Date, any Subsidiary of the Company other than an
Unrestricted Subsidiary. As of the date hereof, the only Restricted Subsidiaries
of the Company are Xxxxxx Wireless Alberta Inc., Microcell Telecommunications
Inc. and Microcell Solutions Inc.
13
"Rogers Entities" means RCI and its Affiliates.
"Rule 144A" means Rule 144A under the Securities Act.
"Sale and Leaseback Transaction" means any arrangement with any
Person providing for the leasing by the Company or any Restricted Subsidiary of
any Principal Property (whether such Principal Property is now owned or
hereafter acquired) that has been or is to be sold or transferred by the Company
or such Restricted Subsidiary to such Person, other than (i) temporary leases
for a term, including renewals at the option of the lessee, of not more than
three years; (ii) leases between the Company and a Restricted Subsidiary or
between Restricted Subsidiaries; and (iii) leases of Principal Property executed
by the time of, or within 180 days after the latest of, the acquisition, the
completion of construction or improvement (including any improvements on
property which will result in such property becoming Principal Property), or the
commencement of commercial operation of such Principal Property.
"Secured Debt" means:
(a) Debt of the Company or any Restricted Subsidiary secured by any
Lien upon any Principal Property or the stock or Debt of a Restricted
Subsidiary; or
(b) any conditional sale or other title retention agreement covering
any Principal Property or Restricted Subsidiary;
but does not include any Debt secured by any Lien or any conditional sale or
other title retention agreement:
(1) incurred or entered into on or after the Release Date to
finance the acquisition, improvement or construction of such
property and either secured by Purchase Money Obligations or Liens
placed on such property within 180 days of acquisition, improvement
or construction and securing Debt not to exceed Cdn$50,000,000 at
any time outstanding;
(2) on Principal Property or the stock or Debt of Restricted
Subsidiaries and existing at the time of acquisition of the
property, stock or Debt;
(3) owing to the Company or any other Restricted Subsidiary;
and
(4) existing at the time a corporation becomes a Restricted
Subsidiary;
each of (1) through (4) above being referred to as "Exempted Secured Debt".
"Securities Act" means the United States Securities Act of 1933, as
amended, and as in force at the date as of which this instrument was executed.
"Security" and "Securities" have the meaning set forth in the first
recital of this Indenture and more particularly means any Securities
authenticated and delivered under this Indenture. For all purposes of this
Indenture, the term "Securities" shall include any Additional Securities that
may be issued under a supplemental indenture and any Exchange Securities to be
14
issued and exchanged for any Initial Securities in accordance with the Exchange
Offer provided for in the Registration Rights Agreement and this Indenture and,
for purposes of this Indenture, all Initial Securities, Additional Securities
and Exchange Securities shall vote together as one series of Securities under
this Indenture.
"Senior Debt" means any Debt of the Company or any Restricted
Subsidiary other than Debt the repayment of which or any security for which has
been expressly subordinated to the obligations under the Securities or to the
senior indebtedness of such Restricted Subsidiary, as the case may be.
"Senior Subordinated Notes" means securities evidencing indebtedness
under the Company's 8.00% Senior Subordinated Notes due 2012.
"Shelf Registration Statement" means the Shelf Registration
Statement as defined in the Registration Rights Agreement.
"Special Record Date" means a date fixed by the Trustee for the
payment of any Defaulted Interest pursuant to Section 309.
"S&P" means Standard & Poor's Ratings Group, a division of McGraw
Hill, Inc., or any successor to such rating agency business thereof.
"Stated Maturity", when used with respect to any Security or any
installment of interest thereon, means the date specified in such Security as
the fixed date on which the principal of such Security or such installment of
interest is due and payable.
"Subsidiary" means any firm, corporation or other legal entity in
which the Company, the Company and one or more Subsidiaries or one or more
Subsidiaries owns, directly or indirectly, a majority of the Voting Shares or
has, directly or indirectly, the right to elect a majority of the board of
directors, if it is a corporation, or the right to make or control its
management decisions, if it is some other Person.
"Supplier Obligations" means any obligation of the Company on a
Consolidated basis incurred or assumed in the ordinary course of business and in
favor of a supplier or other Person for the deferred purchase price of goods
supplied to the Company or any other Restricted Subsidiary in respect of which
goods the Deed Trustee has postponed its prior security interest in favor of
such supplier or other Person and in respect of which the Company shall have
delivered a notice to the Deed Trustee which notice sets forth (i) the name of
such supplier or other Person, (ii) a brief description of the supply agreement
governing such Supplier Obligations and (iii) the amount of the Supplier
Obligations that may be incurred or assumed under such agreement.
"Tangible Assets" means, at any date, the gross book value as shown
by the accounting books and records of any Person of all its property both real
and personal, less (i) the net book value of all its licenses, patents, patent
applications, copyrights, trademarks, trade names, goodwill, non-compete
agreements or organizational expenses and other like intangibles, (ii)
unamortized Debt discount and expenses, (iii) all reserves for depreciation,
obsolescence, depletion and amortization of its properties and (iv) all other
proper reserves which in
15
accordance with GAAP should be provided in connection with the business
conducted by such Person.
"Telerate Page 3750" means the display designated as "Page 3750" on
the Moneyline Telerate service (or any successor service or such other page as
may replace Page 3750 on that service or any successor service).
"Trust Bond" means a bond in the principal amount of
U.S.$2,200,000,000 issued by the Company under the Deed of Trust and pledged to
and in favor of the Trustee for and on behalf of the Trustee and each of the
Holders pursuant to the Pledge Agreement relating to the Securities.
"Trust Estate" means the property which is covered or intended to be
covered by the Lien of the Pledge Agreement as collateral security for the
Securities.
"Trust Indenture Act" means the United States Trust Indenture Act of
1939, as amended, and as in force at the date as of which this instrument was
executed, except as provided in Section 907.
"Trustee" means the Person named as the "Trustee" in the first
paragraph of this Indenture, until a successor shall have become such pursuant
to the applicable provisions of this Indenture, and thereafter "Trustee" shall
mean such successor Trustee.
"U.S. Dollars", "United States Dollars", "U.S.$" and the symbol "$"
each mean lawful currency of the United States of America.
"Unrestricted Subsidiary" means
(a) prior to the Release Date, any Subsidiary that is not a
Restricted Subsidiary and includes any Restricted Subsidiary that becomes
an Unrestricted Subsidiary in accordance with Section 1008 of this
Indenture; or
(b) on or after the Release Date, (i) any Subsidiary of the Company
that at the time of determination shall be designated an Unrestricted
Subsidiary by the Board of Directors in accordance with Section 1008 and
(ii) any Subsidiary of an Unrestricted Subsidiary.
"Voting Shares" means any Capital Stock having voting power under
ordinary circumstances to vote in the election of a majority of the directors of
a corporation (irrespective of whether or not at the time stock of any other
class or classes shall have or might have voting power by reason of the
happening of any contingency).
SECTION 102. OTHER DEFINITIONS.
DEFINED TERM IN SECTION
------------ ----------
Act............................................................................................ 105
Additional Amounts............................................................................. 1013
Amended Deed of Trust.......................................................................... 902
16
Bankruptcy Law................................................................................. 501
Bankruptcy Order............................................................................... 501
Base Currency.................................................................................. 116
Change in Control.............................................................................. 501
Change in Control Offer........................................................................ 516
Change in Control Purchase Date................................................................ 516
Change in Control Purchase Notice.............................................................. 516
Change in Control Purchase Price............................................................... 516
Change in Control Triggering Event............................................................. 501
Clearstream, Luxembourg........................................................................ 201
Covenant Defeasance............................................................................ 403
Custodian...................................................................................... 501
Daily Interest Amount.......................................................................... 312
Defaulted Interest............................................................................. 309
defeasance..................................................................................... 402
Xxxxxx X. Xxxxxx............................................................................... 501
Euroclear...................................................................................... 201
Excluded Holder................................................................................ 1013
Family Percentage Holding...................................................................... 501
First Currency................................................................................. 117
Global Securities.............................................................................. 201
incorporated provision......................................................................... 108
judgment currency.............................................................................. 116
Member of the Rogers Family.................................................................... 501
Notice of Default.............................................................................. 501
Other Currency................................................................................. 117
Parent Company................................................................................. 801
Permitted Residuary Beneficiary................................................................ 501
Perpetuity Date................................................................................ 501
Private Placement Legend....................................................................... 202
Qualified Persons.............................................................................. 501
Qualifying Trust............................................................................... 501
rate(s) of exchange............................................................................ 116
Regulation S Global Securities................................................................. 201
Relevant Person................................................................................ 119
Restricted Global Securities................................................................... 201
Security Register.............................................................................. 305
Security Registrar............................................................................. 305
Taxes.......................................................................................... 1013
U.S. Government Obligations.................................................................... 404
In addition, the terms "Bondholders' Direction", "Bondholders'
Resolution", "Mortgaged Property", "Senior Secured Bondholders" and "Unanimous
Bondholders' Resolution" shall have the respective meanings ascribed thereto in
the Deed of Trust as in effect on the date hereof.
17
SECTION 103. COMPLIANCE CERTIFICATES AND OPINIONS.
Upon any application or request by the Company to the Trustee to
take any action under any provision of this Indenture, the Company shall furnish
to the Trustee an Officers' Certificate stating that all conditions precedent,
if any, provided for in this Indenture (including any covenant compliance with
which constitutes a condition precedent) relating to the proposed action have
been complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, except
that, in the case of any such application or request as to which the furnishing
of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate or
opinion need be furnished.
Every certificate or opinion (other than the certificates required
by Section 1014) with respect to compliance with a condition or covenant
provided for in this Indenture shall include:
(a) a statement that each individual signing such certificate or
opinion has read such covenant or condition and the definitions herein
relating thereto;
(b) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
certificate or opinion are based;
(c) a statement that, in the opinion of each such individual, he has
made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or
condition has been complied with or satisfied; and
(d) a statement as to whether, in the opinion of each such
individual, such condition or covenant has been complied with or
satisfied.
SECTION 104. FORM OF DOCUMENTS DELIVERED TO THE TRUSTEE.
In any case where several matters are required to be certified by,
or covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an officer of the Company may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.
18
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
SECTION 105. ACTS OF HOLDERS.
(a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by their
agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly
required, to the Company. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to
as the "Act" of the Holders signing such instrument or instruments. Proof
of execution of any such instrument or of a writing appointing any such
agent shall be sufficient for any purpose of this Indenture and (subject
to Trust Indenture Act Section 315) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.
(b) The fact and date of the execution by any Person of any such
instrument or writing may be proved in any reasonable manner which the
Trustee deems sufficient.
(c) The ownership of Securities shall be proved by the Security
Register.
(d) If the Company shall solicit from the Holders any request,
demand, authorization, direction, notice, consent, waiver or other Act,
the Company may, at its option, by or pursuant to a Board Resolution, fix
in advance a record date for the determination of such Holders entitled to
give such request, demand, authorization, direction, notice, consent,
waiver or other Act, but the Company shall have no obligation to do so.
Notwithstanding Trust Indenture Act Section 316(c), any such record date
shall be the record date specified in or pursuant to such Board
Resolution, which shall be a date not more than 30 days prior to the first
solicitation of Holders generally in connection therewith and no later
than the date such solicitation is completed.
If such a record date is fixed, such request, demand, authorization,
direction, notice, consent, waiver or other Act may be given before or after
such record date, but only the Holders of record at the close of business on
such record date shall be deemed to be Holders for the purposes of determining
whether Holders of the requisite proportion of Securities then Outstanding have
authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other Act, and for this purpose the
Securities then Outstanding shall be computed as of such record date; provided
that no such request, demand, authorization, direction, notice, consent, waiver
or other Act by the Holders on such record date shall be deemed effective unless
it shall become effective pursuant to the provisions of this Indenture not later
than eleven months after the record date.
(e) Any request, demand, authorization, direction, notice, consent,
waiver or other Act by the Holder of any Security shall bind every future
Holder of the same Security or
19
the Holder of every Security issued upon the registration of transfer
thereof or in exchange therefor or in lieu thereof, in respect of anything
done, suffered or omitted to be done by the Trustee, any Paying Agent or
the Company in reliance thereon, whether or not notation of such action is
made upon such Security.
(f) For all purposes of this Indenture, all Initial Securities,
Exchange Securities and any Additional Securities shall vote together as
one series of Securities under this Indenture.
SECTION 106. NOTICES, ETC., TO TRUSTEE AND COMPANY.
Any request, demand, authorization, direction, notice, consent,
waiver or Act of Holders or other document provided or permitted by this
Indenture to be made upon, given or furnished to, or filed with,
(a) the Trustee by any Holder or the Company shall be sufficient for
every purpose hereunder if made, given, furnished or delivered, in
writing, to or with the Trustee at its Corporate Trust Office, Attention:
Institutional Trust Services; and
(b) the Company by the Trustee or any Holder shall be sufficient for
every purpose hereunder (unless otherwise herein expressly provided) if
made, given, furnished or delivered in writing to the Company in care of
Xxxxxx Communications Inc., 10th Floor, 000 Xxxxx Xxxxxx Xxxx, Xxxxxxx,
Xxxxxxx, Xxxxxx, X0X 0X0, Attention: Xxxxxxxx Xxxx, Vice President,
Treasurer, with a copy to Senior Vice President, Finance and Chief
Financial Officer of the Company, One Mt. Pleasant Road, 16th Floor,
Toronto, Ontario, Canada, X0X 0X0, or, in either case, at any other
address previously furnished in writing to the Trustee.
SECTION 107. NOTICE TO HOLDERS; WAIVER.
Where this Indenture provides for notice to Holders of any event,
such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to each Holder
affected by such event, at its address as it appears in the Security Register,
not later than the latest date, and not earlier than the earliest date,
prescribed for the giving of such notice. In any case where notice to Holders is
given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. Any notice mailed to a Holder in the
aforesaid manner shall be conclusively deemed to have been received by such
Holder when mailed whether or not actually received by such Holder. Where this
Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver.
In case by reason of the suspension of regular mail service or by
reason of any other cause, it shall be impracticable to mail notice of any event
as required by any provision of
20
this Indenture, then any method of giving such notice as shall be satisfactory
to the Trustee shall be deemed to be a sufficient giving of such notice.
SECTION 108. CONFLICT OF ANY PROVISION OF INDENTURE WITH THE TRUST
INDENTURE ACT.
Each of the Trustee and the Company agrees to comply with all
provisions of the Trust Indenture Act applicable to or binding upon it in
connection with this Indenture and any action to be taken hereunder. If and to
the extent that any provision of this Indenture limits, qualifies or conflicts
with any mandatory requirement of the Trust Indenture Act, such mandatory
requirement shall prevail. For greater certainty, if and to the extent that any
provision of this Indenture limits, qualifies or conflicts with the duties
imposed by Sections 310 to 318, inclusive, of the Trust Indenture Act, or
conflicts with any provision (an "incorporated provision") required by or deemed
to be included in this Indenture by operation of such Trust Indenture Act
sections, such imposed duties or incorporated provision shall control.
SECTION 109. EFFECT OF HEADINGS AND TABLE OF CONTENTS.
The Article and Section headings herein and the Table of Contents
are for convenience only and shall not affect the construction hereof.
SECTION 110. SUCCESSORS AND ASSIGNS.
All covenants and agreements in this Indenture by the Company shall
bind its successors and assigns, whether so expressed or not.
SECTION 111. SEPARABILITY CLAUSE.
In case any provision in this Indenture or in the Securities shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.
SECTION 112. BENEFITS OF INDENTURE.
Nothing in this Indenture or in the Securities, express or implied,
shall give to any Person (other than the parties hereto and their successors
hereunder, any Paying Agent and the Holders) any benefit or any legal or
equitable right, remedy or claim under this Indenture.
SECTION 113. GOVERNING LAW.
This Indenture and the Securities shall be governed by and construed
in accordance with the laws of the State of New York. Upon the issuance of the
Exchange Securities or the effectiveness of the Shelf Registration Statement,
this Indenture shall be subject to the provisions of the Trust Indenture Act
that are required or deemed to be part of this Indenture and shall, to the
extent applicable, be governed by such provisions.
21
SECTION 114. LEGAL HOLIDAYS.
In any case where any Interest Payment Date, Redemption Date, date
established for payment of Defaulted Interest pursuant to Section 309, Stated
Maturity, Change in Control Purchase Date or the Fifth Anniversary with respect
to any Security shall not be a Business Day, then (notwithstanding any other
provision of this Indenture or of the Securities) payment of interest or
principal (and premium, if any) need not be made on such date, but may be made
on the next succeeding Business Day with the same force and effect as if made on
the Interest Payment Date, Redemption Date, date established for payment of
Defaulted Interest pursuant to Section 309, Stated Maturity or Change in Control
Purchase Date and no interest shall accrue with respect to such payment for the
period from and after such Interest Payment Date, Redemption Date, date
established for payment of Defaulted Interest pursuant to Section 309, Stated
Maturity or Change in Control Purchase Date, as the case may be, to the next
succeeding Business Day.
SECTION 115. AGENT FOR SERVICE; SUBMISSION TO JURISDICTION; WAIVER OF
IMMUNITIES.
By the execution and delivery of this Indenture, the Company (i)
acknowledges that it has, by separate written instrument, irrevocably designated
and appointed CT Corporation System (and any successor entity) ("CT
Corporation"), 000 Xxxxxx Xxxxxx, 00xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, as its
authorized agent upon which process may be served in any suit, action or
proceeding arising out of or relating to the Securities or this Indenture that
may be instituted in any federal or state court in the State of New York,
Borough of Manhattan, or brought under federal or state securities laws or
brought by the Trustee (whether in its individual capacity or in its capacity as
Trustee hereunder), and acknowledges that CT Corporation has accepted such
designation, (ii) submits to the non-exclusive jurisdiction of any such court in
any such suit or proceeding, and (iii) agrees that service of process upon CT
Corporation and written notice of said service to it (mailed or delivered to its
Senior Vice President, Finance and Chief Financial Officer at its principal
office in Toronto, Canada, with copies to Xxxxxx Communications Inc., in each
case as specified in Section 106(b) hereof) shall be deemed in every respect
effective service of process upon it in any such suit or proceeding. The Company
further agrees to take any and all action, including the execution and filing of
any and all such documents and instruments, as may be necessary to continue such
designation and appointment of CT Corporation in full force and effect so long
as this Indenture shall be in full force and effect.
To the extent that the Company has or hereafter may acquire any
immunity from jurisdiction of any court or from any legal process (whether
through service of notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) with respect to itself or its property, the
Company hereby irrevocably waives such immunity in respect of its obligations
under this Indenture and the Securities, to the extent permitted by law.
SECTION 116. CONVERSION OF CURRENCY.
The Company covenants and agrees that the following provisions shall
apply to conversion of currency in the case of the Securities and this
Indenture:
22
(a) (i) If, for the purpose of obtaining judgment in, or enforcing
the judgment of, any court in any country, it becomes necessary to convert
into a currency (the "judgment currency") an amount due in any other
currency (the "Base Currency"), then the conversion shall be made at the
rate of exchange prevailing on the Business Day before the day on which
the judgment is given or the order of enforcement is made, as the case may
be (unless a court shall otherwise determine).
(ii) If there is a change in the rate of exchange prevailing between
the Business Day before the day on which the judgment is given or an order
of enforcement is made, as the case may be (or such other date as a court
shall determine), and the date of receipt of the amount due, the Company
will pay such additional (or, as the case may be, such lesser) amount, if
any, as may be necessary so that the amount paid in the judgment currency
when converted at the rate of exchange prevailing on the date of receipt
will produce the amount in the Base Currency originally due.
(b) In the event of the winding-up of the Company at any time while
any amount or damages owing under the Securities and this Indenture, or
any judgment or order rendered in respect thereof, shall remain
outstanding, the Company shall indemnify and hold the Holders and the
Trustee harmless against any deficiency arising or resulting from any
variation in rates of exchange between (1) the date as of which the
equivalent of the amount in U.S. Dollars or Canadian Dollars, as the case
may be, due or contingently due under the Securities and this Indenture
(other than under this Subsection (b)) is calculated for the purposes of
such winding-up and (2) the final date for the filing of proofs of claim
in such winding-up. For the purpose of this Subsection (b), the final date
for the filing of proofs of claim in the winding-up of the Company shall
be the date fixed by the liquidator or otherwise in accordance with the
relevant provisions of applicable law as being the latest practicable date
as at which liabilities of the Company may be ascertained for such
winding-up prior to payment by the liquidator or otherwise in respect
thereto.
(c) The obligations contained in Subsections (a)(ii) and (b) of this
Section 116 shall constitute obligations of the Company separate and
independent from its other respective obligations under the Securities and
this Indenture, shall give rise to separate and independent causes of
action against the Company, shall apply irrespective of any waiver or
extension granted by any Holder or the Trustee or any of them from time to
time and shall continue in full force and effect notwithstanding any
judgment or order or the filing of any proof of claim in the winding-up of
the Company for a liquidated sum in respect of amounts due hereunder
(other than under Subsection (b) above) or under any such judgment or
order. Any such deficiency as aforesaid shall be deemed to constitute a
loss suffered by the Holders or the Trustee, as the case may be, and no
proof or evidence of any actual loss shall be required by the Company or
the liquidator or otherwise or any of them. In the case of Subsection (b)
above, the amount of such deficiency shall not be deemed to be reduced by
any variation in rates of exchange occurring between the said final date
and the date of any liquidating distribution.
(d) The term "rate(s) of exchange" shall mean the rate of exchange
quoted by The Toronto-Dominion Bank at its central foreign exchange desk
in its head office in Toronto
23
at 12:00 noon (Toronto, Ontario time) for purchases of the Base Currency
with the judgment currency other than the Base Currency referred to in
Subsections (a) and (b) above and includes any premiums and costs of
exchange payable.
(e) The Trustee shall have no duty or liability with respect to
monitoring or enforcing this Section 116.
SECTION 117. CURRENCY EQUIVALENT.
Except as provided in Section 116, for purposes of the construction
of the terms of this Indenture or of the Securities, in the event that any
amount is stated herein in the currency of one nation (the "First Currency"), as
of any date such amount shall also be deemed to represent the amount in the
currency of any other relevant nation (the "Other Currency") which is required
to purchase such amount in the First Currency at the rate of exchange quoted by
The Toronto-Dominion Bank at its central foreign exchange desk in its head
office in Toronto at 12:00 noon (Toronto, Ontario time) on the date of
determination.
SECTION 118. NO RECOURSE AGAINST OTHERS.
A director, officer, employee or stockholder, as such, of the
Company shall not have any liability for any obligations of the Company under
the Securities or this Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. Each Holder by accepting any of
the Securities waives and releases all such liability.
SECTION 119. RELIANCE ON FINANCIAL DATA.
In computing any amounts under this Indenture,
(i) to the extent relevant in computing any amounts under this
Indenture, the Company shall use audited financial statements of the
Company, its Subsidiaries, any Person that would become a Subsidiary in
connection with the transaction that requires the computation and any
Person from which the Company or a Subsidiary has acquired an operating
business, or is acquiring an operating business in connection with the
transaction that requires the computation (each such Person whose
financial statements are relevant in computing any particular amount, a
"Relevant Person") for the period or portions of the period to which the
computation relates for which audited financial statements are available
on the date of computation and unaudited financial statements and other
current financial data based on the books and records of the Relevant
Person or Relevant Persons, as the case may be, to the extent audited
financial statements for the period or any portion of the period to which
the computation relates are not available on the date of computation, and
(ii) the Company shall be permitted to rely in good faith on the
financial statements and other financial data derived from the books and
records of any Relevant Person that are available on the date of the
computation.
24
SECTION 120. DOCUMENTS IN ENGLISH.
By common accord, this Indenture, the Securities and all documents
related thereto have been or will be drawn up in the English language solely.
ARTICLE TWO
SECURITY FORMS
SECTION 201. FORMS GENERALLY.
The Initial Securities shall be known as the "Floating Rate Senior
(Secured) Notes due 2010" and the Exchange Securities shall be known as the
"Floating Rate Exchange Senior (Secured) Notes due 2010", in each case, of the
Company. The Securities and the Trustee's certificate of authentication shall be
in substantially the forms set forth in this Article, with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities,
as evidenced by their execution of the Securities (but which shall not affect
the rights or duties of the Trustee). Any portion of the text of any Security
may be set forth on the reverse thereof, with an appropriate reference thereto
on the face of the Security.
The definitive Securities shall be printed, lithographed or engraved
or produced by any combination of these methods or may be produced in any other
manner permitted by the rules of any securities exchange on which the Securities
may be listed, all as determined by the officers executing such Securities, as
evidenced by their execution of such Securities.
Initial Securities offered and sold in reliance on Rule 144A shall
be issued initially in the form of one or more permanent global securities
substantially in the form set forth in this Article (the "Restricted Global
Securities") deposited with the Trustee, as custodian for the Depositary, duly
executed by the Company and authenticated by the Trustee as hereinafter
provided. The aggregate principal amount of the Restricted Global Securities may
from time to time be increased or decreased by adjustments made on the records
of the Depositary or its nominee, or of the Trustee, as custodian for the
Depositary or its nominee, as hereinafter provided.
Initial Securities offered and sold in reliance on Regulation S
shall be issued in the form of one or more permanent global securities in
registered form substantially in the form set forth in this Article (the
"Regulation S Global Securities" and together with the Restricted Global
Securities the "Global Securities"). The Regulation S Global Securities will be
registered in the name of a nominee of the Depositary and deposited with the
Trustee, as custodian of the Depositary, for credit to Euroclear Bank S.A./N.V.,
as operator of the Euroclear System ("Euroclear") and Clearstream Banking,
societe anonyme ("Clearstream, Luxembourg") for the benefit of the Holders. The
aggregate principal amount of the Regulation S Global Security may from time to
time be increased or decreased by adjustments made on the records of the
25
Depositary or its nominee, or of the Trustee, as custodian for the Depositary or
its nominee, as hereinafter provided.
SECTION 202. RESTRICTIVE LEGENDS.
Unless and until (i) an Initial Security is sold under an effective
Registration Statement or (ii) an Initial Security is exchanged for an Exchange
Security in connection with an effective Registration Statement, in each case as
provided for in the Registration Rights Agreement, each such Restricted Global
Security shall bear the following legend (the "Private Placement Legend") on the
face thereof:
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"). THE HOLDER HEREOF, BY PURCHASING
THIS SECURITY, AGREES FOR THE BENEFIT OF XXXXXX WIRELESS INC. THAT THIS
SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED (X) PRIOR TO
THE SECOND ANNIVERSARY OF THE ISSUANCE HEREOF (OR A PREDECESSOR SECURITY
HERETO) OR (Y) BY ANY HOLDER THAT WAS AN AFFILIATE OF XXXXXX WIRELESS INC.
AT ANY TIME DURING THE THREE MONTHS PRECEDING THE DATE OF SUCH TRANSFER,
IN EITHER CASE OTHER THAN
(1) TO XXXXXX WIRELESS INC.,
(2) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT
TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON
WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
BUYER WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A (AS INDICATED BY THE BOX CHECKED BY THE
TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS
SECURITY),
(3) IN AN OFFSHORE TRANSACTION TO NON-U.S. PERSONS THAT OCCURS
OUTSIDE THE UNITED STATES IN ACCORDANCE WITH REGULATION S UNDER THE
SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON
THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY),
PROVIDED THAT SUCH NON-U.S. PERSONS AGREE NOT TO RESELL OR OTHERWISE
TRANSFER THE SECURITIES IN CANADA OR TO OR FOR THE BENEFIT OF A
CANADIAN RESIDENT, EXCEPT IN ACCORDANCE WITH APPLICABLE CANADIAN
SECURITIES LAWS,
26
(4) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT (INCLUDING, WITHOUT LIMITATION, TO AN
INSTITUTION THAT IS AN ACCREDITED INVESTOR OR THE EXEMPTION PROVIDED
BY RULE 144 (IF APPLICABLE) UNDER THE SECURITIES ACT), OR
(5) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT,
IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION AND SUBJECT TO THE
RIGHT OF XXXXXX WIRELESS INC. AND THE TRUSTEE PRIOR TO ANY SUCH SALE,
PLEDGE OR OTHER TRANSFER PURSUANT TO CLAUSE (4) ABOVE TO REQUIRE THE
DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATES AND OTHER INFORMATION THEY
MAY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
RESTRICTIONS AND THE RIGHT OF XXXXXX WIRELESS INC. AND THE TRUSTEE PRIOR
TO ANY SUCH SALE, PLEDGE OR OTHER TRANSFER PURSUANT TO CLAUSES (1) THROUGH
(5) TO REQUIRE ANY TRANSFER CERTIFICATIONS REQUIRED PURSUANT TO THE
INDENTURE GOVERNING THIS SECURITY.
Each Initial Security (and all certificates issued in exchange
therefor or in substitution thereof) shall bear the following legend until such
legend shall no longer be necessary or advisable because such Security is no
longer subject to the restrictions on transfer described therein:
UNLESS PERMITTED UNDER CANADIAN SECURITIES LEGISLATION, THE HOLDER
OF THE SECURITY SHALL NOT TRADE THE SECURITY IN OR TO A PERSON IN ANY
PROVINCE OR TERRITORY OF CANADA BEFORE [APRIL 1, 2005], WHICH DATE IS FOUR
MONTHS AND A DAY AFTER THE DATE OF ISSUANCE OF THE SECURITY.
Each Exchange Security (and all certificates issued in exchange
therefor or in substitution thereof) shall bear a legend in the following form
until such legend shall no longer be necessary or advisable because such
Security is no longer subject to the restrictions on transfer described therein:
UNLESS PERMITTED UNDER CANADIAN SECURITIES LEGISLATION, THE HOLDER
OF THE SECURITY SHALL NOT TRADE THE SECURITY IN OR TO A PERSON IN ANY
PROVINCE OR TERRITORY OF CANADA BEFORE [X], 20[X], WHICH DATE IS FOUR
MONTHS AND A DAY AFTER THE DATE OF ISSUANCE OF THE SECURITY.
Each Initial Security sold pursuant to Regulation S shall bear the
following legend until such legend shall no longer be necessary or advisable
because such Security is no longer subject to the restrictions on transfer
described therein:
27
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"). PRIOR TO JANUARY 10, 2005 (THE
"RESTRICTED PERIOD"), OFFERS OR SALES OF THIS SECURITY MAY NOT BE MADE TO
A U.S. PERSON OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON (OTHER THAN A
DISTRIBUTOR) (AS SUCH TERMS ARE DEFINED IN REGULATION S UNDER THE
SECURITIES ACT), UNLESS SUCH OFFER OR SALE IS MADE IN ACCORDANCE WITH RULE
144A UNDER THE SECURITIES ACT. PRIOR TO THE EXPIRATION OF THE RESTRICTED
PERIOD, ANY OFFER OR SALE OF THIS SECURITY IS SUBJECT TO THE RIGHT OF
XXXXXX WIRELESS INC. AND THE TRUSTEE PRIOR TO ANY SUCH OFFER OR SALE TO
REQUIRE CERTIFICATIONS REQUIRED PURSUANT TO THE INDENTURE GOVERNING THIS
SECURITY.
Each Global Security, whether or not an Initial Security, shall also
bear the following legend on the face thereof:
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC") TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN SECTIONS 306 AND 307 OF THE INDENTURE GOVERNING
THIS SECURITY.
SECTION 203. FORM OF FACE OF SECURITY.
XXXXXX WIRELESS INC.
Floating Rate [Exchange]* SENIOR (SECURED) NOTES
DUE 2010
------------
* Include only for Exchange Securities.
28
No. U.S.$ CUSIP
Xxxxxx Wireless Inc., a corporation organized under the Canada
Business Corporations Act (herein called the "Company", which term includes any
successor entity under the Indenture hereinafter referred to), for value
received, hereby promises to pay to _____ or registered assigns, the principal
sum of _______ United States Dollars (or such other amount that may from time to
time be indicated on the records of the Trustee as the result of increases or
decreases by adjustments made on the records of the Trustee, as the custodian
for DTC, in accordance with the rules and procedures of DTC) on December 15,
2010, at the office or agency of the Company referred to below, and to pay
interest thereon on March 15, 2005 and quarterly thereafter, on March 15, June
15, September 15 and December 15 in each year, from November 30, 2004 or from
the most recent Interest Payment Date to which interest has been paid or duly
provided for, at a floating rate of LIBOR plus 3.125% per annum (reset quarterly
on each Interest Payment Date and calculated in accordance with Section 312 of
the Indenture) [subject to adjustment as provided below]**, until the principal
hereof is paid or duly provided for, and (to the extent lawful) to pay on demand
interest on any overdue interest at the rate borne by the Securities from the
date of the Interest Payment Date on which such overdue interest becomes payable
to the date payment of such interest has been made or duly provided for. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be
the March 1, June 1, September 1 or December 1 (whether or not a Business Day),
as the case may be, next preceding such Interest Payment Date. Any such interest
not so punctually paid or duly provided for, and interest on such Defaulted
Interest at the interest rate borne by the Securities, to the extent lawful,
shall forthwith cease to be payable to the Holder on such Regular Record Date,
and may be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities not less than 10
days prior to such Special Record Date, or may be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture.
[The Holder of this Security is entitled to the benefits of the
Registration Rights Agreement, dated as of November 30, 2004, between the
Company and the Initial Purchasers named therein (the "Registration Rights
Agreement"). In the event that (a) neither the Exchange Offer Registration
Statement (as such term is defined in the Registration Rights Agreement) nor a
Shelf Registration Statement (as such term is defined in the Registration Rights
Agreement) is filed with the Securities and Exchange Commission on or prior to
the 150th day following the date of original issue of the Securities, (b)
neither the Exchange Offer Registration Statement nor a Shelf Registration
Statement has been declared effective on or prior to the 210th calendar day
following the date of original issue of the Securities or (c) neither the
Exchange Offer (as such term is defined in the Registration Rights Agreement) is
consummated nor a Shelf Registration
------------------
** Include only for Initial Securities.
29
Statement is declared effective on or prior to the 240th day following the date
of original issue of the Securities, the interest rate borne by this Security
shall be increased by 0.25% per annum following such 150-day period in the case
of clause (a) above, following such 210-day period in the case of clause (b)
above or following such 240-day period in the case of clause (c) above. The
aggregate amount of such increase from the original interest rate pursuant to
these provisions shall in no event exceed 0.25% per annum. Upon (x) the filing
of either the Exchange Offer Registration Statement or a Shelf Registration
Statement after the 150-day period described in clause (a) above, (y) the
effectiveness of either the Exchange Offer Registration Statement or a Shelf
Registration Statement after the 210-day period described in clause (b) above or
(z) the consummation of the Exchange Offer or the effectiveness of a Shelf
Registration Statement, as the case may be, after the 240-day period described
in clause (c) above, the interest rate borne by this Security from the date of
such filing, effectiveness or consummation, as the case may be, will be reduced
to the then-applicable floating interest rate. The Company shall promptly
provide the Trustee with notice of any change in the interest rate borne by this
Security.]*
Payment of the principal of (and premium, if any) and interest on
this Security will be made at the offices or agencies of the Company maintained
for that purpose in The City of New York (which initially shall be the Corporate
Trust Office of the Trustee), and if the Company shall designate and maintain an
additional office or agency for such purpose, also at such additional office or
agency, in U.S. Dollars; provided, however, that payment of interest may be made
at the option of the Company by check mailed to the address of the Person
entitled thereto as such address shall appear on the Security Register; provided
further that all payments of the principal of (and premium, if any) and interest
on Securities, the Holders of which have given wire transfer instructions to the
Company or the Paying Agent at least 10 Business Days prior to the applicable
payment date and hold at least U.S.$1,000,000 in principal amount of Securities,
will be required to be made by wire transfer of immediately available funds to
the accounts specified by such Holders in such instructions. Any such wire
transfer instructions received by the Company or the Paying Agent shall remain
in effect until revoked by such Holder. Notwithstanding the foregoing, the final
payment of principal shall be payable only upon surrender of this Security to
the Paying Agent.
Interest on this Security shall be computed on the basis of a year
of twelve 30-day months. For the purposes of the Interest Act (Canada), the
yearly rate of interest which is equivalent to the rate payable hereunder is the
rate payable multiplied by the actual number of days in the year and divided by
360.
Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been duly
executed by the Trustee referred to on the reverse hereof by manual signature,
this Security shall not be entitled to any benefit under the Indenture, or be
valid or obligatory for any purpose.
------------
* Include only for Initial Securities.
30
IN WITNESS WHEREOF, the Company has caused this instrument to be
duly executed.
Dated: XXXXXX WIRELESS INC.
By _____________________________
By _____________________________
SECTION 204. FORM OF REVERSE OF SECURITY.
This Security is one of a duly authorized issue of securities of the
Company designated as its Floating Rate [Exchange]* Senior (Secured) Notes due
2010 (herein called the "Securities"), which may be issued under an indenture
(herein called the "Indenture") dated as of November 30, 2004 between the
Company and JPMorgan Chase Bank, N.A., as trustee (herein called the "Trustee",
which term includes any successor trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties, obligations
and immunities thereunder of the Company, the Trustee and the Holders of the
Securities, and of the terms upon which the Securities are, and are to be,
authenticated and delivered.
As provided for in the Indenture, the Company may, subject to
certain limitations, from time to time, without notice to or the consent of the
Holders, create and issue Additional Securities so that such Additional
Securities shall be consolidated and form a single series with the Securities
initially issued by the Company and shall have the same terms as to status,
redemption or otherwise as Securities originally issued. Any Additional
Securities shall be issued with the benefit of any indenture supplemental to the
Indenture.
The Company will pay to the Holders such Additional Amounts as may
become payable under Section 1013 of the Indenture.
As provided in the Indenture, the Securities will initially be
secured by the pledge to the Trustee pursuant to the Pledge Agreement of the
Trust Bond issued by the Company under the Deed of Trust. Each Holder by
accepting a Security shall be bound by and be entitled to the benefits of the
Deed of Trust and the other Collateral Documents, as the same may be amended
from time to time pursuant to the respective provisions thereof and of the
Indenture.
In the event that (i) on a pro forma basis giving effect to the
release of the security for the Securities and any other Debt of the Company
with similar release provisions, (A) no Debt of the Company would be outstanding
and (B) there would be no availability to the Company under any bank credit
facilities, operating credit facilities or swap agreements, in the
------------
* Include only Exchange Securities.
31
case of each of (A) and (B) that is or are secured by a Lien of the Pledge
Agreement or any Collateral Document or any other Lien on the Deed of Trust
Collateral, (ii) the ratings assigned to the Securities by at least two of the
three Rating Agencies are Investment Grade Ratings and (iii) no Default or Event
of Default has occurred and is continuing under the Indenture, then, without the
consent of the Holders, the Company may permanently terminate the Lien of the
Pledge Agreement or any Collateral Document and any other Lien on the Deed of
Trust Collateral in accordance with the provisions of the Indenture.
On or before each payment date, the Company shall deliver or cause
to be delivered to the Trustee or the Paying Agent an amount in U.S. Dollars
sufficient to pay the amount due on such payment date.
Except for redemption upon changes in withholding taxes as described
below, the Securities will not be redeemable at the option of the Company prior
to December 15, 2006. Starting on that date, the Securities will be subject to
redemption upon not less than 30 nor more than 60 days' prior notice by
first-class mail, at any time, as a whole or in part, in amounts of U.S.$1,000
or an integral multiple of U.S.$1,000, at the option of the Company, at the
Redemption Price set forth below, in each case plus accrued interest thereon to
the Redemption Date, all as provided in the Indenture. The following Redemption
Prices are for Securities redeemed during the 12-month period commencing on
December 15 of the years set forth below, and are expressed as percentages of
the principal amount.
REDEMPTION
YEAR PRICE
---- ----------
2006................................................................................... 102.000%
2007................................................................................... 101.000%
2008 and thereafter.................................................................... 100.000%
The Securities will also be subject to redemption as a whole, but
not in part, at the option of the Company at any time, on not less than 30 nor
more than 60 days' prior written notice, at 100% of the principal amount plus
accrued interest to the Redemption Date, in the event the Company has become or
would become obligated to pay, on the next date on which any amount would be
payable in respect of the Securities, any Additional Amounts as a result of
certain changes affecting Canadian withholding taxes.
In the case of any redemption of Securities, interest installments
whose Stated Maturity is on or prior to the Redemption Date will be payable to
the Holders of record of such Securities, or one or more Predecessor Securities,
at the close of business on the relevant Record Date referred to on the face
hereof. Securities (or portions thereof) for whose redemption and payment
provision is made in accordance with the Indenture shall cease to bear interest
from and after the Redemption Date.
In the event of redemption of this Security in part only, a
replacement Security or Securities for the unredeemed portion hereof shall be
issued in the name of the Holder hereof upon the cancellation hereof.
32
If an Event of Default (other than an Event of Default resulting
from a Change in Control Triggering Event which is cured by the making and
consummation of a Change in Control Offer) shall occur and be continuing, the
principal amount of all the Securities may be declared due and payable in the
manner and with the effect provided in the Indenture.
In addition, it shall be an Event of Default under the Indenture if
a Change in Control Triggering Event occurs on or prior to the Maturity of the
Securities. The Securities may be accelerated following such an Event of Default
as provided in the Indenture unless the Company (or a third party) offers,
within 20 Business Days after the occurrence of such Event of Default, to
purchase the Securities and purchases the Securities for the Change in Control
Purchase Price in cash on the date that is 40 Business Days after the occurrence
of the Change in Control Triggering Event from a Holder who delivers and does
not withdraw a Change in Control Purchase Notice. Holders have the right to
withdraw any Change in Control Purchase Notice by delivering to the Paying Agent
a written notice of withdrawal in accordance with the terms and provisions of
the Indenture.
The Indenture contains provisions for defeasance at any time of (a)
the entire indebtedness of the Company on this Security and (b) certain
restrictive covenants and the related Defaults and Events of Default, upon
compliance by the Company with certain conditions set forth therein, which
provisions apply to this Security.
The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders under the Indenture at any time by the
Company and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Securities at the time Outstanding. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Securities at the time
Outstanding, on behalf of the Holders of all the Securities, to waive compliance
by the Company with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver
by or on behalf of the Holder of this Security shall be conclusive and binding
upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof whether or not notation of such consent or waiver is made upon
this Security.
No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of (and
premium, if any) and interest on this Security at the times, place, and rate,
and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registrable on the Security
Register of the Company, upon surrender of this Security for registration of
transfer at the offices or agencies of the Company maintained for such purpose
in The City of New York duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or its attorney duly authorized in writing, and
thereupon one or more replacement Securities, of authorized denominations and
for the same aggregate principal amount, will be issued to the designated
transferee or transferees.
33
The Securities are issuable only in registered form without coupons
in denominations of U.S.$1,000 and any integral multiple thereof. As provided in
the Indenture and subject to certain limitations therein set forth, the
Securities are exchangeable for a like aggregate principal amount of Securities
of a different authorized denomination, as requested by the Holder surrendering
the same.
No service charge shall be made for any registration of transfer or
exchange or redemption of Securities, but the Company may require payment of a
sum sufficient to pay all documentary, stamp or similar issue or transfer taxes
or other governmental charges payable in connection with any registration of
transfer or exchange.
Prior to the time of due presentment of this Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered as
the owner hereof for all purposes, whether or not this Security be overdue, and
neither the Company, the Trustee nor any agent shall be affected by notice to
the contrary.
All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.
SECTION 205. FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION.
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
JPMorgan Chase Bank, N.A, as Trustee, certifies that this is one of
the Securities referred to in the within-mentioned Indenture.
JPMORGAN CHASE BANK, N.A.
By ____________________________
Authorized Officer
34
ARTICLE THREE
THE SECURITIES
SECTION 301. TITLE AND TERMS.
An unlimited aggregate principal amount of Securities may be
authenticated and delivered under this Indenture (of which U.S.$550,000,000 is
being issued, authenticated and delivered the date hereof), including Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities pursuant to Sections 303, 304, 305, 306,
516, 908, 1108 or 1111.
The Initial Securities shall be known and designated as the
"Floating Rate Senior (Secured) Notes due 2010" and the Exchange Securities
shall be known and designated as the "Floating Rate Exchange Senior (Secured)
Notes due 2010", in each case, of the Company. The Stated Maturity of the
Securities shall be December 15, 2010 and they shall bear interest at a floating
rate of LIBOR plus 3.125% per annum (reset quarterly on each Interest Payment
Date and calculated in accordance with Section 312 of the Indenture) from
November 30, 2004, or the most recent Interest Payment Date to which interest
has been paid or duly provided for, payable on March 15, 2005, and
quarterly-annually thereafter on March 15, June 15, September 15 and December 15
in each year and at said Stated Maturity, until the principal thereof is paid or
duly provided for.
The principal of (and premium, if any) and interest on the
Securities shall be payable at the office or agency of the Company maintained
for such purpose in The City of New York, and if the Company shall designate and
maintain an additional office or agency for such purpose, also at such
additional office or agency; provided, however, that, at the option of the
Company, interest may be paid by check mailed to addresses of the Persons
entitled thereto as such addresses shall appear on the Security Register;
provided further that all payments of the principal of (and premium, if any) and
interest on Securities, the Holders of which have given wire transfer
instructions to the Company or the Paying Agent at least 10 Business Days prior
to the applicable payment date and hold at least U.S.$1,000,000 in principal
amount of Securities, will be required to be made by wire transfer of
immediately available funds to the accounts specified by such Holders in such
instructions. Any such wire transfer instructions received by the Company or the
Paying Agent shall remain in effect until revoked by such Holder.
Notwithstanding the foregoing, the final payment of principal shall be payable
only upon surrender of the Security to the Paying Agent.
The Securities shall be redeemable as provided in Article Eleven.
Additional Securities ranking pari passu with the Securities issued
on the date hereof may be created and issued from time to time by the Company
without notice to or consent of the Holders and shall be consolidated with and
form a single series with the Securities initially issued and shall have the
same terms as to status, redemption or otherwise as the Securities originally
issued. Any Additional Securities shall be issued with the benefit of an
indenture supplemental to this Indenture.
35
SECTION 302. DENOMINATIONS.
The Securities shall be issuable only in registered form without
coupons and only in denominations of U.S.$1,000 and any integral multiple
thereof.
SECTION 303. EXECUTION, AUTHENTICATION, DELIVERY AND DATING.
The Securities shall be executed on behalf of the Company by any two
of the following officers: its Chairman, its Vice Chairman, its President, any
Vice Presidents or its Treasurer, and attested by its Secretary or one of its
Assistant Secretaries. The signature of any of these officers on the Securities
may be manual or facsimile.
Securities bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices at the date of such Securities.
The Trustee shall (upon Company Order) authenticate and deliver
Securities for original issue in an aggregate principal amount of up to
U.S.$550,000,000, provided that, if the Company shall issue any Additional
Securities pursuant to Section 301, the Trustee shall authenticate and deliver
such Additional Securities upon delivery to the Trustee of a Company Order
accompanied by an Officers' Certificate and an Opinion of Counsel, each stating
that all conditions precedent provided for herein relating to the original issue
of such Additional Securities have been complied with.
Each Security shall be dated the date of its authentication.
No Security shall be entitled to any benefit under this Indenture or
be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein duly
executed by the Trustee by manual signature of an authorized officer, and such
certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered
hereunder.
In case the Company, pursuant to Article Eight, shall be
amalgamated, consolidated or merged with or into any other Person or shall
convey, transfer, lease or otherwise dispose of substantially all of its
properties and assets to any Person, and the successor Person resulting from
such amalgamation, consolidation, or surviving such merger, or into which the
Company shall have been merged, or the successor Person which shall have
received a conveyance, transfer, lease or other disposition as aforesaid, shall
have executed an indenture supplemental hereto with the Trustee pursuant to
Article Eight, any of the Securities authenticated or delivered prior to such
amalgamation, consolidation, merger, conveyance, transfer, lease or other
disposition may, from time to time, at the request of the successor Person, be
exchanged for other Securities executed in the name of the successor Person with
such changes in phraseology and form as may be appropriate (but which shall not
affect the rights or duties of the Trustee), but otherwise in substance of like
tenor as the Securities surrendered for such exchange and of like principal
amount; and the Trustee, upon Company Order of the successor Person, shall
authenticate and deliver replacement Securities as specified in such request for
the purpose of such exchange. If replacement Securities shall at any time be
36
authenticated and delivered in any new name of a successor Person pursuant to
this Section in exchange or substitution for or upon registration of transfer of
any Securities, such successor Person, at the option of any Holder but without
expense to such Holder, shall provide for the exchange of all Securities at the
time Outstanding held by such Holder for Securities authenticated and delivered
in such new name.
SECTION 304. TEMPORARY SECURITIES.
Pending the preparation of definitive Securities, the Company may
execute, and upon Company Order the Trustee shall authenticate and deliver,
temporary Securities which are printed, lithographed, typewritten, mimeographed
or otherwise produced, in any authorized denomination, substantially of the
tenor of the definitive Securities in lieu of which they are issued and with
such appropriate insertions, omissions, substitutions and other variations as
the officers executing such Securities may determine (but which shall not affect
the rights or duties of the Trustee), as conclusively evidenced by their
execution of such Securities.
If temporary Securities are issued, the Company will cause
definitive Securities to be prepared without unreasonable delay. After the
preparation of definitive Securities, the temporary Securities shall be
exchangeable for definitive Securities upon surrender of the temporary
Securities at the office or agency of the Company designated for such purpose
pursuant to Section 1002, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities, the Company shall execute
and, upon Company Order, the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Securities of authorized
denominations evidencing the same indebtedness as the temporary Securities so
exchanged. Until so exchanged, the temporary Securities shall in all respects be
entitled to the same benefits under this Indenture as definitive Securities.
SECTION 305. REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE.
The Company shall cause to be kept at one of its offices or agencies
maintained pursuant to Section 1002 a register (the register maintained in such
office and in any other office or agency designated pursuant to Section 1002
being herein sometimes referred to as the "Security Register") in which, subject
to such reasonable regulations as it may prescribe, the Company shall provide
for the registration of Securities and of transfers of Securities. Said office
or agency is hereby initially appointed "Security Registrar" for the purpose of
registering Securities and transfers of Securities as herein provided.
Upon surrender for registration of transfer of any Security at the
office or agency of the Company designated pursuant to Section 1002, the Company
shall execute, and the Trustee shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more replacement Securities of
any authorized denomination or denominations of a like aggregate principal
amount.
Furthermore, any Holder of a Global Security shall, by acceptance of
such Global Security, agree that transfers of beneficial interests in such
Global Security may be effected only through a book-entry system maintained by
the Holder of such Global Security (or its agent), and
37
that ownership of a beneficial interest in the Security shall be required to be
reflected in a book entry.
At the option of the Holder, Securities may be exchanged for other
Securities of any authorized denomination or denominations of a like aggregate
principal amount upon surrender of the Securities to be exchanged at such office
or agency. Whenever any Securities are so surrendered for exchange (including an
exchange of Initial Securities for Exchange Securities), the Company shall
execute, and the Trustee shall authenticate and deliver, the replacement
Securities which the Holder making the exchange is entitled to receive; provided
that no exchange of Initial Securities for Exchange Securities shall occur until
an Exchange Offer Registration Statement shall have been declared effective by
the Commission and the Initial Securities to be exchanged for the Exchange
Securities shall be cancelled by the Trustee.
All Securities issued upon any registration of transfer or exchange
of Securities under the Indenture shall be the valid obligations of the Company,
evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Securities surrendered upon such registration of transfer or
exchange.
Every Security presented or surrendered for registration of
transfer, or for exchange or redemption, shall (if so required by the Company or
the Security Registrar) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar, duly executed by the Holder thereof or its attorney duly authorized
in writing.
No service charge shall be made for any registration of transfer or
exchange or redemption of Securities, but the Company may require payment of a
sum sufficient to pay all documentary, stamp or similar issue or transfer taxes
or other governmental charges that may be imposed in connection with any
registration of transfer or exchange of Securities, other than exchanges
pursuant to Sections 303, 304, 516, 908, 1108 or 1111 not involving any transfer
or pursuant to an Exchange Offer.
The Company shall not be required (a) to issue replacement
Securities or register the transfer of or exchange any Security during a period
beginning at the opening of business 15 days before the mailing of a notice of
redemption of the Securities under Section 1105 and ending at the close of
business on the day of such mailing or (b) to register the transfer of or
exchange any Security so selected for redemption in whole or in part, except the
unredeemed portion of Securities being redeemed in part.
SECTION 306. BOOK-ENTRY PROVISIONS FOR GLOBAL SECURITIES.
(a) The Global Securities initially shall (i) be registered in the
name of the Depositary for such Global Securities or the nominee of such
Depositary, (ii) be deposited with the Trustee, as custodian for such
Depositary and (iii) bear legends as set forth in Section 202.
The Depositary or its nominee shall be the Holder of the Global
Securities, and owners of beneficial interests in the Securities
represented by the Global Securities shall hold such interests pursuant to
the procedures and practices of the Depositary. Any such
38
owner's beneficial ownership of any such Securities will be shown only on,
and the transfer of such ownership interest shall be effected only
through, records maintained by the Depositary or its nominee. Investors in
the Regulation S Global Security may hold their interests in the
Regulation S Global Security through Euroclear or Clearstream, Luxembourg,
if they are participants in such systems, or indirectly through
organizations which are participants in such systems. After the expiration
of the Restricted Period (but not earlier), investors in the Regulation S
Global Security may also hold such interests through organizations other
than Euroclear or Clearstream, Luxembourg that are participants in the
Depositary's system. Euroclear and Clearstream, Luxembourg will hold
interests in the Regulation S Global Security on behalf of their
participants through customers' securities accounts in their respective
names on the books of their respective depositories, which, in turn, will
hold such interests in the Regulation S Global Security in customer's
securities accounts in the depositories' names on the books of the
Depositary. All interests in a Global Security, including those held
through Euroclear or Clearstream, Luxembourg, may be subject to the
procedures and requirements of the Depositary. Those interests held
through Euroclear and Clearstream, Luxembourg will be subject to the
procedures and requirements of such systems. As used herein, the term
"Restricted Period" means the period of 40 consecutive days beginning on
and including the first day after the later of (i) the day that Citigroup
Global Markets Inc. advises the Company and the Trustee in writing of the
day on which the Securities are first offered to persons other than
distributors (as defined in Regulation S) and (ii) the original issue date
of the Securities.
(b) Transfers of any Global Security shall be limited to transfers
of such Global Security in whole, but not in part, to the Depositary, its
successors or their respective nominees. Interests of beneficial owners in
any Global Security may be transferred in accordance with the rules and
procedures of the Depositary and the provisions of Section 307. Unless (i)
the Depositary notifies the Company that it is unwilling or unable to
continue as Depositary for such Global Securities or ceases to be a
clearing agency registered under the Exchange Act or announces an
intention permanently to cease business or does in fact do so and a
successor depositary is not appointed by the Company within 90 days of
such notice, (ii) the Company, at its option, notifies the Trustee that it
elects to cause the exchange of the Global Securities for Securities in
certificated form, (iii) an Event of Default has occurred and is
continuing with respect to a Global Security or (iv) in the case of a
Global Security held for the account of Euroclear or Clearstream,
Luxembourg, Euroclear or Clearstream, Luxembourg, as the case may be, is
closed for business for 14 continuous Business Days or announces an
intention to cease or permanently ceases business, owners of beneficial
interests in a Regulation S Global Security will not be entitled to have
any portions of such Global Security registered in their names, will not
receive or be entitled to receive physical delivery of Securities in
definitive form and will not be considered the owners or holders of the
Global Security.
(c) Securities issued in exchange for a Global Security or any
portion thereof pursuant to the last sentence of subsection (b) of this
Section shall be issued in definitive, fully registered form, without
interest coupons, shall have an aggregate principal amount equal to that
of such Global Security or portion thereof to be so exchanged, shall be
39
registered in such names and be in such authorized denominations as the
Depositary shall designate and shall bear any legends required hereunder.
Any Global Security to be exchanged in whole shall be surrendered by the
Depositary to the Trustee, as Security Registrar. With regard to any
Global Security to be exchanged in part, either such Global Security shall
be so surrendered for exchange or, if the Trustee is acting as custodian
for the Depositary or its nominee with respect to such Global Security,
the principal amount thereof shall be reduced, by an amount equal to the
portion thereof to be so exchanged, by means of an appropriate adjustment
made on the records of the Trustee. Upon any such surrender or adjustment,
the Trustee, upon Company Order, shall authenticate and deliver the
Security issuable on such exchange to or upon the order of the Depositary
or an authorized representative thereof. In the event of the occurrence of
any of the events specified in the last sentence of subsection (b) of this
Section 306, the Company will promptly make available to the Trustee a
reasonable supply of certificated Securities in definitive form.
(d) Except as otherwise set forth in this Indenture or a Global
Security, owners of beneficial interests in the Securities evidenced by a
Global Security will not be entitled to any rights under this Indenture
with respect to such Global Security, and the Depositary or its nominee
may be treated by the Company, the Trustee and any agent of the Company or
the Trustee as the owner and Holder of such Global Security for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any such agent from giving effect to
any written certification, proxy or other authorization furnished by the
Depositary or its nominee or impair, as between the Depositary or its
nominee and such owners of beneficial interests, the operation of
customary practices governing the exercise of the rights of the Depositary
or its nominee as Holder of any Security.
SECTION 307. SPECIAL TRANSFER PROVISIONS.
Unless and until (i) an Initial Security is sold under an effective
Registration Statement, or (ii) an Initial Security is exchanged for an Exchange
Security in connection with an effective Registration Statement, pursuant to the
Registration Rights Agreement, the following provisions shall apply:
(a) Restricted Global Security to Regulation S Global Security. If,
at any time, an owner of a beneficial interest in a Restricted Global
Security deposited with the Trustee, as custodian for the Depositary,
wishes to transfer its interest in such Restricted Global Security to a
Person who is required or permitted to take delivery thereof in the form
of an interest in a Regulation S Global Security, such owner shall,
subject to the Applicable Procedures, exchange or cause the exchange of
such interest for an equivalent beneficial interest in a Regulation S
Global Security as provided in this Section 307(a). Upon receipt by the
Trustee of (1) written instructions given in accordance with the
Applicable Procedures from an Agent Member directing the Trustee to credit
or cause to be credited a beneficial interest in the Regulation S Global
Security in an amount equal to the beneficial interest in the applicable
Restricted Global Security to be exchanged, (2) a written order given in
accordance with the Applicable Procedures containing information regarding
the participant account of the Depositary and the Euroclear or
Clearstream,
40
Luxembourg account (if applicable) to be credited with such increase, and
(3) a certificate substantially in the form of Exhibit D hereto given by
the owner of such beneficial interest, the Trustee, as Security Registrar,
shall instruct the Depositary to reduce or cause to be reduced the
aggregate principal amount of the applicable Restricted Global Security
and to increase or cause to be increased the aggregate principal amount of
the applicable Regulation S Global Security by the principal amount of the
beneficial interest in the Restricted Global Security to be exchanged, to
credit or cause to be credited to the account of the Person specified in
such instructions a beneficial interest in the Regulation S Global
Security equal to the reduction in the aggregate principal amount of the
applicable Restricted Global Security, and to debit, or cause to be
debited, from the account of the Person making such exchange or transfer
the beneficial interest in the Restricted Global Security that is being
exchanged or transferred.
(b) Regulation S Global Security to Restricted Global Security. If,
at any time, an owner of a beneficial interest in a Regulation S Global
Security deposited with the Trustee as custodian for the Depositary wishes
to transfer its interest in such Regulation S Global Security to a Person
who is required or permitted to take delivery thereof in the form of an
interest in a Restricted Global Security, such owner shall, subject to the
Applicable Procedures, exchange or cause the exchange of such interest for
an equivalent beneficial interest in a Restricted Global Security, as
provided in this Section 307(b). Upon receipt by the Trustee of (1)
written instructions given in accordance with the Applicable Procedures
from an Agent Member, directing the Trustee, as Security Registrar, to
credit or cause to be credited a beneficial interest in the Restricted
Global Security equal to the beneficial interest in the Regulation S
Global Security to be exchanged, (2) a written order given in accordance
with the Applicable Procedures containing information regarding the
participant account of the Depositary to be credited with such increase
and (3) if such transfer is requested prior to the expiration of the
Restricted Period, a certificate in the form of Exhibit E attached hereto
given by the owner of such beneficial interest, the Trustee, as Security
Registrar, shall instruct the Depositary to reduce or cause to be reduced
the aggregate principal amount of such Regulation S Global Security and to
increase or cause to be increased the aggregate principal amount of the
applicable Restricted Global Security by the principal amount of the
beneficial interest in the Regulation S Global Security to be exchanged,
and the Trustee, as Security Registrar, shall instruct the Depositary,
concurrently with such reduction, to credit or cause to be credited to the
account of the Person specified in such instructions a beneficial interest
in the applicable Restricted Global Security equal to the reduction in the
aggregate principal amount of such Regulation S Global Security and to
debit or cause to be debited from the account of the Person making such
transfer the beneficial interest in the Regulation S Global Security that
is being transferred. After the expiration of the Restricted Period, the
certificate described in clause (3) above shall no longer be required to
effect transfers pursuant to this Section 307(b).
(c) Restricted Global Security to Regulation S Global Security After
Two Years. If the holder of a beneficial interest in a Restricted Global
Security wishes at any time after November 30, 2006 to (A) transfer such
interest to a Person who wishes to take delivery thereof in the form of a
beneficial interest in the Regulation S Global Security or (B) to exchange
such interest for a beneficial interest in a Regulation S Global Security,
41
such transfer or exchange may be effected, subject to the Applicable
Procedures, only in accordance with this Section 307(c). Upon receipt by
the Trustee of (1) in the case of a transfer or exchange of an interest in
the Restricted Global Security, written instructions given in accordance
with the Applicable Procedures from an Agent Member directing the Trustee
to credit or cause to be credited a beneficial interest in the Regulation
S Global Security in an amount equal to the beneficial interest in the
Restricted Global Security to be so transferred or exchanged, (2) a
written order given in accordance with the Applicable Procedures
containing information regarding the participant account of the Depositary
(and, if applicable, the Euroclear or Clearstream, Luxembourg account, as
the case may be) to be credited with such beneficial interest and (3) a
certificate substantially in the form of Exhibit F hereto given by the
holder of such beneficial interest, the Trustee, as Security Registrar,
shall instruct the Depositary to reduce the principal amount of the
Restricted Global Security, and to increase the principal amount of the
Regulation S Global Security, by the principal amount of the beneficial
interest in the Restricted Global Security to be so transferred or
exchanged, and to credit or cause to be credited to the account of the
Person specified in such instructions a beneficial interest in the
Regulation S Global Security having a principal amount equal to the amount
by which the principal amount of the Restricted Global Security was
reduced upon such transfer or exchange.
(d) Private Placement Legend. By its acceptance of any Security
bearing the Private Placement Legend, each Holder of such a Security
acknowledges the restrictions on transfer of such Security set forth in
this Indenture and in the Private Placement Legend and agrees that it will
transfer such Security only as provided in this Indenture.
The Security Registrar shall retain copies of all letters, notices
and other written communications received pursuant to Section 306 or this
Section 307. The Company shall have the right to inspect and make copies of all
such letters, notices or other written communications at any reasonable time
upon the giving of reasonable written notice to the Security Registrar.
SECTION 308. MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES.
If (a) any mutilated Security is surrendered to the Trustee, or (b)
the Company and the Trustee receive evidence to their satisfaction of the
destruction, loss or theft of any Security, and there is delivered to the
Company and the Trustee such security or indemnity as may be required by them to
save each of them harmless, then, in the absence of notice to the Company or the
Trustee that such Security has been acquired by a bona fide purchaser, the
Company shall execute and upon Company Order the Trustee shall authenticate and
deliver, in exchange for any such mutilated Security or in lieu of any such
destroyed, lost or stolen Security, a replacement Security of like tenor and
principal amount, bearing a number not contemporaneously outstanding.
In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a replacement Security, pay such Security.
42
Upon the issuance of any replacement Securities under this Section,
the Company may require the payment of a sum sufficient to pay all documentary,
stamp or similar issue or transfer taxes or other governmental charges that may
be imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee) connected therewith.
Every replacement Security issued pursuant to this Section in lieu
of any destroyed, lost or stolen Security shall constitute a contractual
obligation of the Company, whether or not the destroyed, lost or stolen Security
shall be at any time enforceable by anyone, and shall be entitled to all
benefits of this Indenture equally and proportionately with any and all other
Securities duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities.
SECTION 309. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.
Interest on any Security which is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the Person in
whose name that Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest.
Any interest on any Security which is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date and interest on such
defaulted interest at the interest rate borne by the Securities, to the extent
lawful (such defaulted interest and interest thereon herein collectively called
"Defaulted Interest"), shall forthwith cease to be payable to the Holder on the
Regular Record Date by virtue of having been such Holder; and such Defaulted
Interest may be paid by the Company, at its election in each case, as provided
in Subsection (a) or (b) below:
(a) The Company may elect to make payment of any Defaulted Interest
to the Persons in whose names the Securities (or their respective
Predecessor Securities) are registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest, which
shall be fixed in the following manner. The Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid
on each Security and the date of the proposed payment, and at the same
time the Company shall deposit with the Trustee an amount of money equal
to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this Subsection provided. Thereupon the
Trustee shall fix a Special Record Date for the payment of such Defaulted
Interest which shall be not more than 15 days and not less than 10 days
prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company of such Special Record Date. In
the name and at the expense of the Company, the Trustee shall cause notice
of the proposed payment of such Defaulted Interest and the Special Record
Date therefor to be mailed,
43
first-class postage prepaid, to each Holder at its address as it appears
in the Security Register, not less than 10 days prior to such Special
Record Date. Notice of the proposed payment of such Defaulted Interest and
the Special Record Date therefor having been so mailed, such Defaulted
Interest shall be paid to the Persons in whose names the Securities (or
their respective Predecessor Securities) are registered on such Special
Record Date and shall no longer be payable pursuant to the following
Subsection (b).
(b) The Company may make payment of any Defaulted Interest in any
other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities may be listed, and upon such
notice as may be required by such exchange, if, after notice given by the
Company to the Trustee of the proposed payment pursuant to this
Subsection, such payment shall be deemed practicable by the Trustee.
Subject to the foregoing provisions of this Section, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.
SECTION 310. PERSONS DEEMED OWNERS.
Prior to the time of due presentment for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name any Security is registered as the owner of such
Security for the purpose of receiving payment of principal of (and premium, if
any) and (subject to Section 309) interest on such Security and for all other
purposes whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.
SECTION 311. CANCELLATION.
All Securities surrendered for payment, redemption, registration of
transfer or exchange shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee and shall be promptly cancelled by the Trustee. The
Company shall deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in any
manner whatsoever, and all Securities so delivered shall be promptly cancelled
by the Trustee. No Securities shall be authenticated in lieu of or in exchange
for any Securities cancelled as provided in this Section, except as expressly
permitted by this Indenture. All cancelled Securities held by the Trustee shall
be destroyed and certification of their destruction delivered to the Company
unless by a Company Order the Company shall direct that cancelled Securities be
returned to it.
SECTION 312. COMPUTATION OF INTEREST.
(a) Interest on the Securities shall be computed on the basis of a
year of twelve 30-day months.
(b) Interest on the Securities shall be computed by the Calculation
Agent as follows:
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(i) The amount of interest for each day that the Securities are
outstanding (the "Daily Interest Amount") will be calculated by dividing
the interest rate in effect for such day by 360 and multiplying the result
by the principal amount of the Securities. The amount of interest to be
paid on the Securities for each Interest Period will be calculated by
adding the Daily Interest Amounts for each day in the Interest Period.
(ii) All percentages resulting from any of the above calculations
will be rounded, if necessary, to the nearest one hundred-thousandth of a
percentage point, with five one-millionths of a percentage point being
rounded upwards (e.g., 9.876545% (or .09876545) being rounded to 9.87655%
(or .0987655)) and all dollar amounts used in or resulting from such
calculations will be rounded, if necessary, to the nearest cent (with
one-half cent being rounded upwards).
(iii) The interest rate on the Securities will in no event be higher
than the lesser of the maximum rate (a) permitted by New York law as the
same may be modified by United States law of general application and (b)
not prohibited by the Criminal Code (Canada) as the same may be amended,
restated or re-enacted from time to time.
The Calculation Agent will, upon the request of the Holder of any
Security, provide the interest rate then in effect with respect to the Security.
All calculations made by the Calculation Agent in the absence of manifest error
will be conclusive for all purposes and binding on the Company, the Trustee and
the Holders of the Securities.
ARTICLE FOUR
DEFEASANCE AND COVENANT DEFEASANCE
SECTION 401. COMPANY'S OPTION TO EFFECT DEFEASANCE OR COVENANT DEFEASANCE.
The Company may, at its option by Board Resolution, at any time,
with respect to the Securities, elect to have either Section 402 or Section 403
be applied to all Outstanding Securities upon compliance with the conditions set
forth below in this Article Four.
SECTION 402. DEFEASANCE AND DISCHARGE.
Upon the Company's exercise under Section 401 of the option
applicable to this Section 402, the Company shall be deemed to have been
discharged from its obligations with respect to all Outstanding Securities on
the date the conditions set forth below are satisfied (hereinafter,
"defeasance"). For this purpose, such defeasance means that the Company shall be
deemed to have paid and discharged the entire indebtedness represented by the
Outstanding Securities, which shall thereafter be deemed to be "Outstanding"
only for the purposes of Section 405 and the other Sections of this Indenture
referred to in (A), (B), and (C) below, and to have satisfied all its other
obligations under such Securities and this Indenture insofar as such Securities
are concerned (and the Trustee, upon Company Request and at the expense of the
Company, shall execute proper instruments acknowledging the same), except for
the following which shall survive until otherwise terminated or discharged
hereunder: (A) the rights of Holders of Outstanding Securities to receive solely
from the trust fund described in Section 404
45
and as more fully set forth in such Section, payments in respect of the
principal of (and premium, if any) and interest on such Securities when such
payments are due, (B) the Company's obligations with respect to such Securities
under Sections 304, 305, 306, 1002, 1003, 1013 (for purposes of applying Section
1013, if the Trustee (or any other qualifying trustee referred to in Section
404(1)) is required by law or by the interpretation or administration thereof to
withhold or deduct any amount for or on account of Taxes (as defined in Section
1013) from any payment made from the trust fund described in Section 404 under
or with respect to the Securities, such payment shall be deemed to have been
made by the Company and the Company shall be deemed to have been so required to
withhold or deduct) and 1014, (C) the Company's right of redemption pursuant to
Section 1101(b), provided that either (i) the change or amendment referred to
therein occurs after defeasance is exercised by the Company in accordance with
Section 404 or (ii) the Company is, immediately before the defeasance, entitled
to redeem the Securities pursuant to Section 1101(b), in which case the Company
may redeem the Securities in accordance with Article Eleven by complying with
such Article and depositing with the Trustee, in accordance with Section 1106,
an amount of money sufficient, together with all amounts held in trust pursuant
to Section 404(1), to pay the Redemption Price of all the Securities to be
redeemed, (D) the rights, powers, trusts, duties and immunities of the Trustee
hereunder and the Company's obligations in connection therewith, including the
Company's obligations under Section 607 and (E) this Article Four. Subject to
compliance with this Article Four, the Company may exercise its option under
this Section 402 notwithstanding the prior exercise of its option under Section
403 with respect to the Securities.
SECTION 403. COVENANT DEFEASANCE.
Upon the Company's exercise under Section 401 of the option
applicable to this Section 403, the Company shall be released from its
obligations under any covenant contained in Articles Eight and Twelve and in
Sections 1004 through 1012 with respect to the Outstanding Securities on and
after the date the conditions set forth below are satisfied (hereinafter,
"covenant defeasance"), and the Securities shall thereafter be deemed to be not
"Outstanding" for the purposes of any direction, waiver, consent or declaration
or Act of Holders (and the consequences of any thereof) in connection with such
covenants, but shall continue to be deemed "Outstanding" for all other purposes
hereunder (it being understood that such Securities shall not be deemed
Outstanding for financial accounting purposes). For this purpose, such covenant
defeasance means that, with respect to the Outstanding Securities, the Company
may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein or
in any other document and such omission to comply shall not constitute a Default
or an Event of Default under Section 501(c), but, except as specified above, the
remainder of this Indenture (including Section 607 hereof) and such Securities
shall be unaffected thereby. In addition, upon the Company's exercise under
Section 401 of the option applicable to Section 403, Section 501(c) through (e)
and Section 501(i) through (l) shall not constitute Events of Default.
SECTION 404. CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE.
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The following shall be the conditions to application of either
Section 402 or Section 403 to the Outstanding Securities:
(1) The Company shall irrevocably have deposited or caused to
be deposited with the Trustee (or another trustee satisfying the
requirements of Section 609 who shall agree to comply with the
provisions of this Article Four applicable to it) as trust funds, in
trust, for the purpose of making the following payments,
specifically pledged as security for, and dedicated solely to, the
benefit of the Holders of such Securities, (A) cash in U.S. Dollars
in an amount, or (B) U.S. Government Obligations which through the
scheduled payment of principal and interest in respect thereof in
accordance with their terms will provide, not later than one day
before the due date of any payment, cash in U.S. Dollars in an
amount, or (C) a combination thereof, sufficient, in the opinion of
a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the
Trustee, to pay and discharge and which shall be applied by the
Trustee (or other qualifying trustee) to pay and discharge, the
principal of (and premium, if any) and interest on the Outstanding
Securities on the Stated Maturity (or Redemption Date, if
applicable) of such principal (and premium, if any) or installment
of interest; provided that the Trustee (or other qualifying trustee)
shall have been irrevocably instructed by the Company to apply such
money or the proceeds of such U.S. Government Obligations to said
payments with respect to the Securities. Before such a deposit, the
Company may give the Trustee, in accordance with Section 1103
hereof, a notice of its election to redeem all of the Outstanding
Securities at a future date in accordance with Article Eleven
hereof, which notice shall be irrevocable. For this purpose, "U.S.
Government Obligations" means securities that are (x) direct
obligations of the United States of America for the timely payment
of which its full faith and credit is pledged or (y) obligations of
a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the timely payment
of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case,
are not callable or redeemable at the option of the issuer thereof,
and shall also include a depository receipt issued by a bank (as
defined in Section 3(a)(2) of the Securities Act), as custodian with
respect to any such U.S. Government Obligation or a specific payment
of principal of or interest on any such U.S. Government Obligation
held by such custodian for the account of the holder of such
depository receipt, provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount
received by the custodian in respect of the U.S. Government
Obligation or the specific payment of principal of or interest on
the U.S. Government Obligation evidenced by such depository receipt.
(2) No Default or Event of Default shall have occurred and be
continuing on the date of such deposit or, insofar as Subsection
501(f), (g) or (h) is concerned, at any time during the period
ending on the 91st day after the date of
47
such deposit (it being understood that this condition shall not be
deemed satisfied until the expiration of such period).
(3) Neither the Company nor any Restricted Subsidiary is an
"insolvent person" within the meaning of the Bankruptcy and
Insolvency Act (Canada) on the date of such deposit or at any time
during the period ending on the 91st day after the date of such
deposit (it being understood that this condition shall not be deemed
satisfied until the expiration of such period).
(4) Such defeasance or covenant defeasance shall not result in
a breach or violation of, or constitute a default under, this
Indenture or any other material agreement or instrument to which the
Company is a party or by which it is bound.
(5) In the case of an election under Section 402, the Company
shall have delivered to the Trustee an Opinion of Counsel in the
United States stating that (x) the Company has received from, or
there has been published by, the Internal Revenue Service a ruling
or (y) since November 19, 2004, there has been a change in the
applicable United States federal income tax law, in either case to
the effect that, and based thereon such opinion shall confirm that,
the Holders of the Outstanding Securities will not recognize income,
gain or loss for United States federal income tax purposes as a
result of such defeasance and will be subject to United States
federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such defeasance had
not occurred.
(6) In the case of an election under Section 403, the Company
shall have delivered to the Trustee an Opinion of Counsel in the
United States to the effect that the Holders of the Outstanding
Securities will not recognize income, gain or loss for United States
federal income tax purposes as a result of such covenant defeasance
and will be subject to United States federal income tax on the same
amounts, in the same manner and at the same times as would have been
the case if such covenant defeasance had not occurred.
(7) The Company shall have delivered to the Trustee an Opinion
of Counsel in Canada to the effect that the Holders of the
Outstanding Securities will not recognize income, gain or loss for
Canadian federal or provincial income tax or other tax (including
withholding tax) purposes as a result of such defeasance or covenant
defeasance, as applicable, and will be subject to Canadian federal
and provincial income tax and other tax (including withholding tax)
on the same amounts, in the same manner and at the same times as
would have been the case if such defeasance or covenant defeasance,
as applicable, had not occurred. This condition may not be waived by
any Holder or the Trustee.
(8) The Company shall have delivered to the Trustee an
Officers' Certificate stating that the deposit made by the Company
pursuant to its election under Section 402 or Section 403 was not
made by the Company with the intent of preferring the Holders over
other creditors of the Company or with the intent of defeating,
hindering, delaying or defrauding creditors of the Company or
others.
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(9) The Company shall have delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel in the United
States, each stating that all conditions precedent relating to
either the defeasance under Section 402 or the covenant defeasance
under Section 403 (as the case may be) have been complied with.
SECTION 405. DEPOSITED MONEY AND U.S. GOVERNMENT OBLIGATIONS TO BE HELD IN
TRUST; OTHER MISCELLANEOUS PROVISIONS.
Subject to the provisions of the last paragraph of Section 1003, all
money and U.S. Government Obligations (including the proceeds thereof) deposited
with the Trustee (or other qualifying trustee, collectively for purposes of this
Section 405, the "Trustee") pursuant to Section 404 in respect of the
Outstanding Securities shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Securities and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Holders of
such Securities of all sums due and to become due thereon in respect of
principal (and premium, if any) and interest, but such money need not be
segregated from other funds except to the extent required by law.
The Company shall pay and indemnify the Trustee on an after-tax
basis against any tax, fee or other charge imposed on or assessed against the
cash or U.S. Government Obligations deposited pursuant to Section 404 or the
principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the
Outstanding Securities.
Anything in this Article Four to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in
Section 404 which, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the
Trustee (which may be the opinion delivered under Section 404(1)), are in excess
of the amount thereof which would then be required to be deposited to effect an
equivalent defeasance or covenant defeasance.
SECTION 406. REINSTATEMENT.
If the Trustee or any Paying Agent is unable to apply any money in
accordance with Section 405, by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company's obligations under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred
pursuant to Section 402 or 403, as the case may be, until such time as the
Trustee or Paying Agent is permitted to apply all such money in accordance with
Section 405; provided, however, that, if the Company makes any payment of
principal of (or premium, if any) or interest on any Security following the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Securities to receive such payment from the money held by
the Trustee or Paying Agent.
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ARTICLE FIVE
REMEDIES
SECTION 501. EVENTS OF DEFAULT.
"Event of Default", wherever used herein, means any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body):
(a) default in the payment of the principal of (or premium, if any,
on) any Security at its Maturity; or
(b) default in the payment of any interest or any Additional Amounts
on any Security when it becomes due and payable, and continuance of such
default for a period of 30 days; or
(c) default in the performance, or breach, of any covenant or
warranty of the Company or of any Restricted Subsidiary in this Indenture
or, prior to the Release Date, any Collateral Document (other than a
default in the performance, or breach, of a covenant or warranty which is
specifically dealt with elsewhere in this Section), and continuance of
such default or breach for a period of 60 days after there has been given
to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in aggregate principal amount of the Outstanding
Securities a written notice specifying such default or breach and stating
that such notice is a "Notice of Default" hereunder; or
(d) (i) there shall have occurred one or more defaults of the
Company or any Restricted Subsidiary in the payment of the principal of or
premium on any Debt aggregating Cdn$25,000,000 or more, when the same
becomes due and payable at the stated maturity thereof, and such default
or defaults shall continue after any applicable grace period and have not
been cured or waived or (ii) there shall occur and be continuing any
acceleration of the maturity of any Debt aggregating Cdn$25,000,000 or
more and, in any case referred to in the foregoing clause (i) or clause
(ii), the Debt that is the subject of such non-payment has not been
discharged, or such non-payment or acceleration has not been rescinded or
annulled, within 10 days of such non-payment or acceleration; or
(e) any judgments or orders aggregating Cdn$25,000,000 or more
rendered against the Company or any Restricted Subsidiary remain
unsatisfied and unstayed for 60 consecutive days; or
(f) the Company or any Restricted Subsidiary pursuant to or under or
within the meaning of any Bankruptcy Law:
(1) commences a voluntary case or proceeding;
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(2) consents to the entry of a Bankruptcy Order in an
involuntary case or proceeding or the commencement of any case
against it;
(3) consents to the appointment of a Custodian of it or for
any substantial part of its property;
(4) makes a general assignment for the benefit of its
creditors or files a proposal or other scheme of arrangement
involving the rescheduling or composition of its indebtedness;
(5) files a petition in bankruptcy or an answer or consent
seeking reorganization or relief; or
(6) consents to the filing of such petition in bankruptcy or
the appointment of or taking possession by a Custodian; or
(g) a court of competent jurisdiction in any involuntary case or
proceeding enters a Bankruptcy Order against the Company or any Restricted
Subsidiary, and such Bankruptcy Order remains unstayed and in effect for
15 consecutive days; or
(h) a Custodian shall be appointed out of court with respect to the
Company or any Restricted Subsidiary, or with respect to all or any
substantial part of the property of the Company or any Restricted
Subsidiary, or any encumbrancer shall take possession of all or any
substantial part of the property of the Company or any Restricted
Subsidiary; or
(i) prior to the Release Date, any Collateral Document shall, at any
time, cease to be in full force and effect for any reason (other than
pursuant to this Indenture or upon the satisfaction in full of all
Indenture Obligations and discharge of this Indenture) or shall be
declared invalid or unenforceable; or if the Company or any Restricted
Subsidiary shall assert, in any pleading filed in a court of competent
jurisdiction, that any Collateral Document is invalid or unenforceable; or
(j) prior to the Release Date, the Deed Trustee shall commence
proceedings or take any action, or shall have been directed by one or more
holders of Deed of Trust Bonds to commence proceedings or take any action,
to realize upon the Lien Hereof (as defined in the Deed of Trust as in
effect on the date hereof); or
(k) a Change in Control Triggering Event shall occur; or
(l) prior to the Release Date, the whole or substantially the whole
of the Specifically Mortgaged Property or of the Mortgaged Property (as
such terms are defined in the Deed of Trust) shall be taken by exercise of
any power referred to in Section 4.4 of the Deed of Trust or shall be sold
or otherwise disposed of in anticipation thereof within the meaning of
subsection 4.10(2) of the Deed of Trust.
"Bankruptcy Law" means the Bankruptcy and Insolvency Act (Canada) or
any other Canadian federal or provincial law or the law of any other
jurisdiction relating to bankruptcy, insolvency, winding up, liquidation,
reorganization or relief of debtors. "Custodian"
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means any receiver, interim receiver, receiver and manager, trustee, assignee,
liquidator, sequestrator or similar official under any Bankruptcy Law or any
other person with like powers. "Bankruptcy Order" means any court order made in
a proceeding pursuant to or within the meaning of any Bankruptcy Law, containing
an adjudication of bankruptcy or insolvency, or providing for liquidation,
winding up, dissolution or reorganization, or appointing a Custodian of a debtor
or of all or any substantial part of a debtor's property, or providing for the
staying, arrangement, adjustment or composition of indebtedness or other relief
of a debtor.
Under this Indenture, a "Change in Control Triggering Event" is
deemed to occur upon both a Change in Control and a Rating Decline with respect
to the Securities.
A "Change in Control" means (i) any transaction (including an
amalgamation, merger or consolidation or the sale of Capital Stock of the
Company) the result of which is that any Person or Group (as defined in Rule
13d-5 of the Exchange Act), other than Members of the Xxxxxx Family or RCI or a
Person or Group controlled by one or more of the Members of the Xxxxxx Family or
RCI, acquires, directly or indirectly, more than 50% of the total voting power
of all classes of Voting Shares of the Company or (ii) any transaction
(including an amalgamation, merger or consolidation or the sale of Capital Stock
of the Company) the result of which is that any Person or Group (as defined in
Rule 13d-5 of the Exchange Act), other than (A) Members of the Xxxxxx Family or
RCI or a Person or Group controlled by Members of the Xxxxxx Family or RCI or
(B) for so long as the only primary beneficiaries of a Qualifying Trust
established under the last will and testament of Xxxxxx X. Xxxxxx are one or
more persons referred to in clause (ii) of the definition of "Member of the
Xxxxxx Family" or the spouse, widow or widower, for the time being and from time
to time, of any person described in subclause (ii)(c), (d) or (e) of the
definition of "Member of the Xxxxxx Family", any Person designated by the
trustees of such Qualifying Trust to exercise voting rights attaching to the
shares held by such trustees, has elected to the Board of Directors such number
of its or their nominees so that such nominees so elected shall constitute a
majority of the number of the directors comprising the Board of Directors;
provided that to the extent that one or more regulatory approvals are required
for any of the transactions or circumstances described in clause (i) or (ii)
above to become effective under applicable law, such transactions or
circumstances shall be deemed to have occurred at the time such approvals have
been obtained and become effective under applicable law.
"Member of the Xxxxxx Family" means (i) Xxxxxx X. Xxxxxx (who was
born on May 27, 1933, such individual being hereinafter referred to as "Xxxxxx
X. Xxxxxx"); (ii) such of the following persons as are living at the date of
this Indenture or are born after the date of this Indenture and before the
Perpetuity Date: (a) the spouse, for the time being and from time to time, of
Xxxxxx X. Xxxxxx; (b) after the death of Xxxxxx X. Xxxxxx, the widow, if any, of
Xxxxxx X. Xxxxxx; (c) the issue of Xxxxxx X. Xxxxxx; (d) any half-sister of
Xxxxxx X. Xxxxxx and the issue of any such half-sister; (e) individuals adopted
by Xxxxxx X. Xxxxxx or any of the issue of Xxxxxx X. Xxxxxx, provided that such
individuals have not attained the age of majority at the date of such adoption,
together with the issue of any such adopted individuals; provided that if any
person is born out of wedlock he shall be deemed not to be the issue of another
person for the purposes hereof unless and until he is proven or acknowledged to
be the issue of such person and; (iii) a Qualifying Trust, but only to the
extent of its Family Percentage Holding of
52
voting securities or rights to control or direct the voting securities of the
Company at the time of the determination.
"Qualifying Trust" means a trust (whether testamentary or inter
vivos) any beneficiary of which is a person referred to in clause (i) or (ii) of
the definition of "Member of the Xxxxxx Family" or the spouse, widow or widower,
for the time being and from time to time, of any person described in subclause
(ii)(c), (d) or (e) of the definition of "Member of the Xxxxxx Family" (provided
that such spouse, widow or widower is living at the date of this Indenture or is
born after the date of this Indenture and before the Perpetuity Date) (all such
persons being hereafter referred to as "Qualified Persons").
"Family Percentage Holding" means the aggregate percentage of the
securities held by a Qualifying Trust representing, directly or indirectly, an
interest in voting securities or rights to control or direct the voting
securities of the Company, that it is reasonable, under all the circumstances,
to regard as being held beneficially for Qualified Persons (or any class
consisting of two or more Qualified Persons); provided always that in
calculating the Family Percentage Holding (A) in respect of any power of
appointment or discretionary trust capable of being exercised in favor of any of
the Qualified Persons such trust or power shall be deemed to have been exercised
in favor of Qualified Persons until such trust or power has been otherwise
exercised; (B) where any beneficiary of a Qualifying Trust has assigned,
transferred or conveyed, in any manner whatsoever, his or her beneficial
interest to another person, then, for the purpose of determining the Family
Percentage Holding in respect of such Qualifying Trust, the person to whom such
interest has been assigned, transferred or conveyed shall be regarded as the
only person beneficially interested in the Qualifying Trust in respect of such
interest but in the case where the interest is so assigned, transferred or
conveyed is an interest in a discretionary trust or is an interest which may
arise as a result of the exercise in favor of the assignor of a discretionary
power of appointment and such discretionary trust or power of appointment is
also capable of being exercised in favor of persons described in clause (i) or
(ii) of the definition of "Member of the Xxxxxx Family", such discretionary
trust or power shall be deemed to have been so exercised in favor of Qualified
Persons until it has in fact been exercised; and (C) the interest of any
Permitted Residuary Beneficiary shall be ignored until its interest has
indefeasibly vested.
"Permitted Residuary Beneficiary" means any person who is a
beneficiary of a Qualifying Trust and, under the terms of the Qualifying Trust,
is entitled to distributions out of the capital of such Qualifying Trust only
after the death of all of the Qualified Persons who are beneficiaries of such
Qualifying Trust.
"Perpetuity Date" means the date that is 21 years, less one day,
from the date of the death of the last survivor of the individuals described in
clause (i) or subclause (ii)(a), (b), (c), (d) or (e) of the definition of
"Member of the Xxxxxx Family", who are living at the date of this Indenture.
SECTION 502. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.
If (i) an Event of Default (other than an Event of Default specified
in Section 501(f), 501(g), 501(h) or 501(k)) occurs and is continuing, or (ii)
an Event of Default specified in Section 501(k) occurs and is continuing and the
Company (or a third party) fails in any material
53
respect to comply with any of the provisions of Section 516, then and in every
such case the Trustee or the Holders of not less than 25% in principal amount of
the Outstanding Securities may declare the principal of all the Securities to be
due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such principal shall
become immediately due and payable. If an Event of Default specified in Section
501(f), 501(g) or 501(h) occurs and is continuing, then the principal of all the
Securities shall ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holder. The
Company will deliver to the Trustee, within 10 days after the occurrence
thereof, notice of any acceleration or default in payment at maturity of Debt
referred to in Section 501(d).
At any time after a declaration of acceleration has been made and
before a judgment or decree for payment of the money due has been obtained by
the Trustee as hereinafter in this Article provided, the Holders of a majority
in principal amount of the Outstanding Securities, by written notice to the
Company and the Trustee, may rescind and annul such declaration and its
consequences if:
(a) the Company has paid or deposited, or caused to be paid or
deposited, with the Trustee a sum sufficient to pay
(1) all overdue interest on all Securities,
(2) the principal of (and premium, if any, on) any Securities
that have become due otherwise than by such declaration of
acceleration and interest thereon at the rate borne by the
Securities,
(3) to the extent that payment of such interest is lawful,
interest upon overdue interest at the rate borne by the Securities,
and
(4) all sums paid or advanced by the Trustee hereunder, the
reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel and any other amounts due to the
Trustee pursuant to Section 607; and
(b) all Events of Default, other than the non-payment of principal
of, premium, if any, or interest on the Securities which have become due
solely by such declaration of acceleration, have been cured or waived as
provided in Section 513.
No such rescission shall affect any subsequent default or impair any right
consequent thereon.
Notwithstanding the preceding paragraph, in the event of a
declaration of acceleration in respect of the Securities because an Event of
Default specified in Section 501(d) shall have occurred and be continuing, such
declaration of acceleration shall be automatically annulled if the Debt that is
the subject of such Event of Default has been discharged or the holders thereof
have rescinded their declaration of acceleration in respect of such Debt, and
written notice of such discharge or rescission, as the case may be, shall have
been given to the Trustee by the Company and countersigned by the holders of
such Debt or a trustee, fiduciary or agent for such holders, within 30 days
after such declaration of acceleration in respect of the
54
Securities, and no other Event of Default has occurred during such 30-day period
which has not been cured or waived during such period.
SECTION 503. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
TRUSTEE.
The Company covenants that if:
(a) default is made in the payment of any interest or Additional
Amounts on any Security when such interest or Additional Amounts becomes
due and payable and such default continues for a period of 30 days, or
(b) default is made in the payment of the principal of (or premium,
if any, on) any Security at the Maturity thereof,
the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal (and premium, if any) and interest, with interest upon
the overdue principal (and premium, if any) and, to the extent that payment of
such interest shall be legally enforceable, upon overdue installments of
interest, at the rate borne by the Securities; and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.
If the Company fails to pay such amounts forthwith upon such demand,
the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid and may
prosecute such proceeding to judgment or final decree, and may enforce the same
against the Company or any other obligor upon the Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of
the property of the Company or any other obligor upon the Securities, wherever
situated.
If an Event of Default occurs and is continuing, the Trustee may in
its discretion (i) proceed to protect and enforce its rights and the rights of
the Holders under this Indenture and the Pledge Agreement by such appropriate
private or judicial proceedings as the Trustee shall deem most effectual to
protect and enforce such rights, including, without limitation, demanding
payment of the Trust Bond and exercising any rights or powers conferred on the
Trustee, as the holder of the Trust Bond, under the Pledge Agreement and the
Deed of Trust, or (ii) make requests of, give directions to, or make demands of,
the Deed Trustee (whether by the giving of a Bondholders' Direction,
participation in the giving or adoption of a Bondholders' Resolution or
otherwise pursuant to the Collateral Documents) to proceed to protect and
enforce the rights of the Deed Trustee, the Trustee and the Deed of Trust
Bondholders under the Collateral Documents by such appropriate private or
judicial proceedings as the Trustee shall deem most effectual to protect and
enforce any such rights, whether for the specific enforcement of any covenant or
agreement in the Collateral Documents or in aid of the exercise of any power
granted therein, or to enforce any other proper remedy, including appointment of
a receiver for the Deed of Trust Collateral and foreclosure, realization and
sale of Deed of Trust Collateral pursuant to the terms of the Collateral
Documents. The Trustee shall be entitled to xxx and
55
recover judgment as aforesaid or make request as aforesaid to the Deed Trustee
to xxx to enforce any Lien of the Collateral Documents, in either case, either
before, after or during the pendency of any other proceeding for the enforcement
of any Lien of the Collateral Documents, and the right of the Trustee or the
Deed Trustee to recover such judgment shall not be affected by any sale under
any of the Collateral Documents or by the exercise of any right, power or remedy
for the enforcement of the provisions of any of the Collateral Documents, or the
foreclosure or enforcement of any Lien of the Collateral Documents. No recovery
of any such judgment upon any property of the Company shall affect or impair the
Lien on the Deed of Trust Collateral or any rights, powers or remedies of the
Trustee or the Holders.
SECTION 504. TRUSTEE MAY FILE PROOFS OF CLAIM.
In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue principal or interest) shall be entitled
and empowered, by intervention in such proceeding or otherwise,
(a) to file and prove a claim for the whole amount of principal (and
premium, if any) and interest owing and unpaid in respect of the
Securities and to file such other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee (including any
claim for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due
to the Trustee pursuant to Section 607) and of the Holders allowed in such
judicial proceeding, and
(b) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or
similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that
the Trustee shall consent to the making of such payments directly to the
Holders, to pay the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, and any other amounts due to the Trustee under Section
607.
Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any proposal,
plan of reorganization, arrangement, adjustment or composition or other similar
arrangement affecting the Securities or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.
SECTION 505. TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES.
56
All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name and as trustee of an express trust, and any recovery of judgment
shall, after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due to the Trustee pursuant to Section 607, be for the ratable benefit
of the Holders of the Securities in respect of which such judgment has been
recovered.
SECTION 506. APPLICATION OF MONEY COLLECTED.
Any money collected by the Trustee pursuant to this Article shall be
applied in the following order, at the date or dates fixed by the Trustee and,
in case of the distribution of such money on account of principal (or premium,
if any) or interest, upon presentation of the Securities and the notation
thereon of the payment if only partially paid and upon surrender thereof if
fully paid:
FIRST: To the payment of all amounts due the Trustee under Section
607;
SECOND: To the payment of the amounts then due and unpaid upon the
Securities for principal (and premium, if any) and interest, in respect of
which or for the benefit of which such money has been collected, ratably,
without preference or priority of any kind, according to the amounts due
and payable on such Securities for principal (and premium, if any) and
interest; and
THIRD: The balance, if any, to the Company.
SECTION 507. LIMITATION ON SUITS.
No Holder of any Securities shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture, any
Collateral Document or the Securities, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless
(a) such Holder has previously given written notice to the Trustee
of a continuing Event of Default;
(b) the Holders of not less than 25% in principal amount of the
Outstanding Securities shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default in its own name
as Trustee hereunder;
(c) such Holder or Holders have offered to the Trustee reasonable
indemnity against the costs, expenses and liabilities to be incurred in
compliance with such request;
(d) the Trustee for 60 days after its receipt of such notice,
request and offer of indemnity has failed to institute any such
proceeding; and
57
(e) no direction inconsistent with such written request has been
given to the Trustee during such 60-day period by the Holders of a
majority in principal amount of the Outstanding Securities;
it being understood and intended that no one or more Holders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture or any Collateral Document to affect, disturb or prejudice the
rights of any other Holders, or to obtain or to seek to obtain priority or
preference over any other Holders or to enforce any right under this Indenture
or the Pledge Agreement except in the manner provided in this Indenture or the
Pledge Agreement and for the equal and ratable benefit of all the Holders.
SECTION 508. UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM
AND INTEREST.
Notwithstanding any other provision in this Indenture and any
Collateral Document, the Holder of any Security shall have the right, which is
absolute and unconditional, to receive payment of the principal of (and premium,
if any) and (subject to Section 309) interest and any Additional Amounts on such
Security on the respective due dates expressed in such Security (or, in the case
of redemption, on the Redemption Date) and to institute suit for the enforcement
of any such payment, and such rights shall not be impaired without the consent
of such Holder.
SECTION 509. RESTORATION OF RIGHTS AND REMEDIES.
If the Trustee or any Holder has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case the Company, the
Trustee and the Holders shall, subject to any determination in such proceeding,
be restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding had been instituted.
SECTION 510. RIGHTS AND REMEDIES CUMULATIVE.
Except as provided in Section 308, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.
SECTION 511. DELAY OR OMISSION NOT WAIVER.
No delay or omission of the Trustee or of any Holder of any Security
to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein. Every right and remedy given by this Article or by law
to the Trustee or to the Holders may be exercised from
58
time to time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.
SECTION 512. CONTROL BY HOLDERS.
The Holders of a majority in principal amount of the Outstanding
Securities shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred on the Trustee, including, without limitation,
powers conferred on it by the Pledge Agreement or the Deed of Trust, provided
that
(a) such direction shall not be in conflict with any rule of law or
with this Indenture or expose the Trustee to personal liability, and
(b) subject to the provisions of the Trust Indenture Act, the
Trustee may take any other action deemed proper by it which is not
inconsistent with such direction.
SECTION 513. WAIVER OF PAST DEFAULTS.
The Holders of a majority in principal amount of the Outstanding
Securities may on behalf of the Holders of all the Securities waive any past
default hereunder and its consequences, except a default
(a) in the payment of the principal of (or premium, if any) or
interest on any Security, or
(b) arising from a Change in Control Triggering Event, or
(c) in respect of a covenant or provision hereof which under Article
Nine cannot be modified or amended without the consent of the Holder of
each Outstanding Security affected.
Upon any such waiver, such default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereon.
SECTION 514. UNDERTAKING FOR COSTS.
All parties to this Indenture agree, and each Holder of any Security
by its acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in
the aggregate more
59
than 10% in principal amount of the Outstanding Securities, or to any suit
instituted by any Holder for the enforcement of the payment of the principal of
(or premium, if any) or interest on any Security on or after the respective
Stated Maturities expressed in such Security (or, in the case of redemption, on
or after the Redemption Date).
SECTION 515. WAIVER OF STAY, EXTENSION OR USURY LAWS.
The Company covenants (to the extent that it may lawfully do so)
that it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law
wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Company (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law, and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and permit
the execution of every such power as though no such law had been enacted.
SECTION 516. CHANGE IN CONTROL OFFER.
(a) The Securities may not be accelerated pursuant to Section 502
following an Event of Default under Section 501(k) and such Event of
Default shall be cured if the Company complies with the provisions of this
Section 516. If the Company elects to cure such Event of Default, within
20 Business Days of the occurrence of an Event of Default under Section
501(k), (i) the Company shall notify the Trustee in writing of the
occurrence of the Change in Control Triggering Event and shall make an
offer to purchase (the "Change in Control Offer") the Securities at a
purchase price equal to 101% of the principal amount thereof plus any
accrued and unpaid interest thereon to the Change in Control Purchase Date
(as hereinafter defined) (the "Change in Control Purchase Price") on the
date that is 40 Business Days after the occurrence of the Change in
Control Triggering Event (the "Change in Control Purchase Date"), (ii) the
Trustee shall mail a copy of the Change in Control Offer to each Holder
and (iii) the Company shall cause a notice of the Change in Control Offer
to be sent at least once to the Dow Xxxxx News Service or similar business
news service in the United States and Canada News Wire Ltd. service or
similar news service in Canada. The Change in Control Offer shall remain
open from the time such offer is made until the Change in Control Purchase
Date. The Trustee shall be under no obligation to ascertain the occurrence
of a Change in Control Triggering Event or to give notice with respect
thereto other than as provided above upon receipt of a Change in Control
Offer from the Company. The Trustee may conclusively assume, in the
absence of receipt of a Change in Control Offer from the Company, that no
Change in Control Triggering Event has occurred. The Change in Control
Offer shall include a form of Change in Control Purchase Notice to be
completed by the Holder and shall state:
(1) the events causing a Change in Control Triggering Event
and the date such Change in Control Triggering Event is deemed to
have occurred;
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(2) that the Change in Control Offer is being made pursuant to
this Section 516(a) and that all Securities properly tendered
pursuant to the Change in Control Offer will be accepted for
payment;
(3) the date by which the Change in Control Purchase Notice
pursuant to this Section 516 must be given;
(4) the Change in Control Purchase Date;
(5) the Change in Control Purchase Price;
(6) the names and addresses of the Paying Agent and the
offices or agencies referred to in Section 1002;
(7) that Securities must be surrendered to the Paying Agent at
the office of the Paying Agent or to an office or agency referred to
in Section 1002 to collect payment;
(8) that the Change in Control Purchase Price for any Security
as to which a Change in Control Purchase Notice has been duly given
and not withdrawn will be paid promptly upon the later of the first
Business Day following the Change in Control Purchase Date and the
time of surrender of such Security as described in clause (7) above;
(9) the procedures the Holder must follow to accept the Change
in Control Offer; and
(10) the procedures for withdrawing a Change in Control
Purchase Notice.
(b) A Holder may accept a Change in Control Offer by delivering to
the Paying Agent at the office of the Paying Agent or to an office or
agency referred to in Section 1002 a written notice (a "Change in Control
Purchase Notice") at any time prior to the close of business on the Change
in Control Purchase Date, stating:
(1) that such Holder elects to have a Security purchased
pursuant to the Change in Control Offer;
(2) the principal amount of the Security that the Holder
elects to have purchased by the Company, which amount must be
U.S.$1,000 or an integral multiple thereof, and the certificate
numbers of the Securities to be delivered by such Holder for
purchase by the Company; and
(3) that such Security shall be purchased on the Change in
Control Purchase Date pursuant to the terms and conditions specified
in this Indenture.
The delivery of such Security (together with all necessary
endorsements) to the Paying Agent at the office of the Paying Agent or to an
office or agency referred to in Section
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1002 prior to, on or after the Change in Control Purchase Date shall be a
condition to the receipt by the Holder of the Change in Control Purchase Price
therefor; provided that such Change in Control Purchase Price shall be so paid
pursuant to this Section 516 only if the Security so delivered to the Paying
Agent or to an office or agency referred to in Section 1002 shall conform in all
respects to the description thereof set forth in the related Change in Control
Purchase Notice.
The Company shall purchase from the Holder thereof, pursuant to this
Section 516, a portion of a Security if the principal amount of such portion is
U.S.$1,000 or an integral multiple of U.S.$1,000. Provisions of this Indenture
that apply to the purchase of all of a Security also apply to the purchase of a
portion of such Security.
Any purchase by the Company contemplated pursuant to the provisions
of this Section 516 shall be consummated by the delivery by the Company of the
consideration to be received by the Holder promptly upon the later of (a) the
first Business Day following the Change in Control Purchase Date and (b) the
time of delivery of the Security by the Holder to the Paying Agent or to an
office or agency referred to in Section 1002 in the manner required by this
Section 516.
Notwithstanding anything herein to the contrary, any Holder
delivering to the Paying Agent, at the office of the Paying Agent or an office
or agency referred to in Section 1002, the Change in Control Purchase Notice
contemplated by this Section 516(b) shall have the right to withdraw such Change
in Control Purchase Notice at any time prior to the close of business on the
Change in Control Purchase Date by delivery of a written notice of withdrawal to
the Paying Agent or to an office or agency referred to in Section 1002 in
accordance with Section 1109.
The Paying Agent or the office or agency referred to in Section 1002
shall promptly notify the Company of the receipt by the former of any Change in
Control Purchase Notice or written notice of withdrawal thereof.
(c) The Securities may also not be accelerated pursuant to Section
502 following an Event of Default under Section 501(k) and such Event of
Default shall also be cured if a third party makes and consummates a
Change in Control Offer in the manner and at the times and otherwise in
compliance with this Section 516; provided, however, that any such third
party shall be subject to Section 1013 in respect of any amounts paid by
such third party hereunder (for this purpose, Section 1013 is modified by
replacing "Company" with the name of the third party) and such Event of
Default shall be cured only if such third party complies with Section 1013
(as modified) or if the Company satisfies the third party's obligations
under such Section.
ARTICLE SIX
THE TRUSTEE
SECTION 601. CERTAIN DUTIES AND RESPONSIBILITIES.
(a) Except during the continuance of an Event of Default,
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(1) the Trustee undertakes to perform such duties and only
such duties as are specifically set forth in this Indenture, and no
implied covenants or obligations shall be read into this Indenture
against the Trustee; and
(2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Trustee and conforming to the requirements
of this Indenture; but in the case of any such certificates or
opinions which by any provision hereof are specifically required to
be furnished to the Trustee, the Trustee shall be under a duty to
examine the same to determine whether or not they conform to the
requirements of this Indenture.
(b) In case an Event of Default has occurred and is continuing, the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as
a prudent person would exercise or use under the circumstances in the
conduct of such person's own affairs.
(c) No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:
(1) this Subsection shall not be construed to limit the effect
of Subsection (a) of this Section;
(2) the Trustee shall not be liable for any error of judgment
made in good faith by a Responsible Officer, unless it shall be
proved that the Trustee was negligent in ascertaining the pertinent
facts;
(3) the Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with
the direction of the Holders of a majority in principal amount of
the Outstanding Securities relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred upon the Trustee, under
this Indenture; and
(4) no provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in
the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably
assured to it.
(d) Whether or not therein expressly so provided, every provision of
this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of
this Section.
SECTION 602. NOTICE OF DEFAULTS.
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The Trustee shall, within a reasonable time but not exceeding 60
days after the occurrence of any Default, transmit by mail to all Holders, as
their names and addresses appear in the Security Register, notice of such
Default or Event of Default hereunder known to the Trustee, unless such Default
is not an Event of Default and shall have been cured or waived; provided,
however, that, except in the case of a Default in the payment of the principal
of (or premium, if any) or interest on any Security, the Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee or a trust committee of directors and/or Responsible
Officers of the Trustee in good faith determines that the withholding of such
notice is in the best interests of the Holders and the Trustee so advises the
Company in writing.
Where notice of the occurrence of any Default is given by the
Trustee under the preceding paragraph and the Default is thereafter cured, the
Trustee shall, within a reasonable time but not exceeding 60 days after the
Trustee becomes aware of the curing of the Default, transmit by mail to all
Holders, as their names and addresses appear in the Security Register, notice
that the Default is no longer continuing.
SECTION 603. CERTAIN RIGHTS OF TRUSTEE.
Except as otherwise provided in Section 601:
(a) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented
by the proper party or parties;
(b) any request or direction of the Company mentioned herein shall
be sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors may be sufficiently evidenced by a
Board Resolution;
(c) whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Trustee (unless
other evidence be herein specifically prescribed) may, in the absence of
bad faith on its part, rely upon an Officers' Certificate;
(d) the Trustee may consult with counsel and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon;
(e) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or
direction of any of the Holders pursuant to this Indenture, unless such
Holders shall have offered to the Trustee reasonable security or indemnity
against the costs, expenses and liabilities which might be incurred by it
in compliance with such request or direction;
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(f) the Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit,
and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and
premises of the Company, personally or by agent or attorney; and
(g) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by
it hereunder.
SECTION 604. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.
The recitals contained herein and in the Securities, except the
Trustee's certificate of authentication, shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this
Indenture or the Pledge Agreement, the Collateral Documents or the Securities or
the security created hereunder or thereunder. The Trustee shall not be
accountable for the use or application by the Company of Securities or the
proceeds thereof.
SECTION 605. MAY HOLD SECURITIES.
The Trustee, any Paying Agent, Security Registrar or any other agent
of the Company, in its individual or any other capacity, may become the owner or
pledgee of Securities, and, subject to the Trust Indenture Act, may otherwise
deal with the Company with the same rights it would have if it were not Trustee,
Paying Agent, Security Registrar or such other agent.
SECTION 606. MONEY HELD IN TRUST.
Money held by the Trustee in trust hereunder need not be segregated
from other funds except to the extent required by law. The Trustee shall be
under no liability for interest on any money received by it hereunder except as
otherwise agreed with the Company.
SECTION 607. COMPENSATION, REIMBURSEMENT AND INDEMNITY.
The Company agrees:
(a) to pay to the Trustee from time to time reasonable compensation
for all services rendered by it hereunder (which compensation shall not be
limited by any provision of law in regard to the compensation of a trustee
of an express trust);
(b) except as otherwise expressly provided herein, to reimburse the
Trustee upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Trustee in accordance with any provision
of this Indenture (including the reasonable
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compensation and the expenses and disbursements of its agents and
counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or bad faith; and
(c) to indemnify the Trustee for, and to hold it harmless against,
any loss, liability or expense incurred without negligence or bad faith on
its part, arising out of or in connection with the acceptance or
administration of this trust, including the costs and expenses of
defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder.
As security for the performance of the obligations of the Company
under this Section, the Trustee shall have a claim and lien prior to the
Securities upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the benefit of Holders of particular Securities.
The Company's payment of indemnity obligations pursuant to this
Section 607 shall survive the discharge of this Indenture and the expiry of any
trusts created hereby and the resignation or removal of the Trustee. When the
Trustee incurs expenses after the occurrence of a Default specified in Section
501(f), (g) or (h), the expenses are intended to constitute expenses of
administration under any Bankruptcy Law.
SECTION 608. CONFLICTING INTERESTS.
The Trustee shall comply with the terms of Trust Indenture Act
Section 310(b).
SECTION 609. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.
There shall at all times be a Trustee hereunder which shall be
eligible to act as Trustee under Trust Indenture Act Section 310(a)(1) and which
shall have a combined capital and surplus of at least U.S.$50,000,000 and have
its Corporate Trust Office in The City of New York to the extent there is such
an institution eligible and willing to serve. If such Person publishes reports
of condition at least annually, pursuant to law or to the requirements of
federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time
the Trustee shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.
SECTION 610. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.
(a) No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until
the acceptance of appointment by the successor Trustee under Section 611.
(b) The Trustee may resign at any time by giving written notice
thereof to the Company. If an instrument of acceptance by a successor
Trustee shall not have been delivered to the resigning Trustee within 30
days after the giving of such notice of
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resignation, the resigning Trustee may petition any court of competent
jurisdiction (at the Company's expense) for the appointment of a successor
Trustee.
(c) The Trustee may be removed at any time by an Act of the Holders
of a majority in principal amount of the Outstanding Securities, delivered
to the Trustee and to the Company.
(d) If at any time:
(1) the Trustee shall fail to comply with the provisions of
Section 608, or
(2) the Trustee shall cease to be eligible under Section 609
and shall fail to resign after written request therefor by the
Company or by any Holder who has been a bona fide Holder of a
Security for at least six months, or
(3) the Trustee shall become incapable of acting or shall be
adjudged a bankrupt or insolvent, or a receiver of the Trustee or of
its property shall be appointed or any public officer shall take
charge or control of the Trustee or of its property or affairs for
the purpose of rehabilitation, conservation or liquidation, then, in
any case, (i) the Company by a Board Resolution may remove the
Trustee, or (ii) subject to Section 514, in the case of clause (1)
above, the Holder of any Security and any other interested party,
and in the case of clauses (2) and (3) above, the Holder of any
Security who has been a bona fide Holder of a Security for at least
six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee.
(e) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any
cause, the Company, by a Board Resolution, shall promptly appoint a
successor Trustee. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee shall
be appointed by Act of the Holders of a majority in principal amount of
the Outstanding Securities delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment in accordance with Section 611, become the
successor Trustee and supersede the successor Trustee appointed by the
Company. If no successor Trustee shall have been so appointed by the
Company or the Holders of the Securities and so accepted appointment, the
retiring Trustee or the Holder of any Security who has been a bona fide
Holder for at least six months may on behalf of itself and all others
similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Trustee.
(f) The Company shall give notice of each resignation and each
removal of the Trustee and each appointment of a successor Trustee by
mailing written notice of such event by first-class mail, postage prepaid,
to the Holders of Securities as their names and addresses appear in the
Security Register. Each notice shall include the name of the successor
Trustee and the address of its Corporate Trust Office.
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SECTION 611. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.
Every successor Trustee appointed hereunder shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; but, on request of the
Company or the successor Trustee, such retiring Trustee shall, upon payment of
all amounts due it under Section 607, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee, and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder, subject
to the claim and lien provided for in Section 607. Upon request of any such
successor Trustee, the Company shall execute any and all instruments for more
fully and certainly vesting in and confirming to such successor Trustee all such
rights, powers and trusts.
No successor Trustee shall accept its appointment unless at the time
of such acceptance such successor Trustee shall be qualified and eligible under
this Article.
SECTION 612. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any Person into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any Person
succeeding to all or substantially all of the institutional trust services
business of the Trustee, shall be the successor of such Trustee hereunder,
provided such Person shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any of the parties hereto. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to the authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.
SECTION 613. TRUSTEE NOT TO BE APPOINTED RECEIVER.
Neither the Trustee nor any "related person", as defined in the
Business Corporations Act (Ontario), to the Trustee, shall be appointed a
receiver or receiver and manager or liquidator of all or any part of the assets
or undertaking of the Company.
SECTION 614. ACCEPTANCE OF TRUSTS.
The Trustee hereby accepts the trusts imposed upon it by this
Indenture and covenants and agrees to perform the same as herein expressed.
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ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701. DISCLOSURE OF NAMES AND ADDRESSES OF HOLDERS.
(a) Upon application to the Trustee in accordance with the Trust
Indenture Act, Holders may communicate pursuant to the Trust Indenture Act
with other Holders with respect to their rights under this Indenture or
the Securities.
(b) In addition, a Holder may, upon payment to the Trustee of a
reasonable fee and subject to compliance with any applicable requirement
of the Trust Indenture Act, require the Trustee to furnish within 10 days
after receiving the affidavit or statutory declaration referred to below,
a list setting out (i) the name and address of every registered Holder,
(ii) the aggregate principal amount of Securities owned by each registered
Holder and (iii) the aggregate principal amount of Outstanding Securities,
each as shown on the records of the Trustee on the day that the affidavit
or statutory declaration is delivered to the Trustee. The affidavit or
statutory declaration, as the case may be, shall contain (x) the name,
address and occupation of the Holder, (y) where the Holder is a
corporation, its name and address for service and (z) a statement that the
list will not be used except in connection with an effort to influence the
voting of the Holders, an offer to acquire Securities, or any other matter
relating to the Securities or the affairs of the Company. Where the Holder
is a corporation, the affidavit or statutory declaration shall be made by
a director or officer of the corporation.
(c) Every Holder of Securities, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the
Trustee shall be held accountable by reason of the disclosure of such list
of the names and addresses of the Holders, regardless of the source from
which such information was derived, and that the Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made
under the Trust Indenture Act.
(d) The Company shall comply with the terms of Trust Indenture Act
Section 312(a).
SECTION 702. REPORTS BY TRUSTEE.
Within 60 days after May 15 of each year commencing with the first
May 15 after the first issuance of Securities, the Trustee shall transmit by
mail to all Holders, as their names and addresses appear in the Security
Register, as provided in Trust Indenture Act Section 313(c), a brief report
dated as of such May 15 if required by Trust Indenture Act Section 313(a).
SECTION 703. REPORTS BY COMPANY.
The Company shall:
(a) file with the Trustee, within 30 days after the Company is
required to file the same with the Commission, copies of the annual
reports and of the information,
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documents and other reports (or copies of such portions of any of the
foregoing as the Commission may from time to time by rules and regulations
prescribe) which the Company may be required to file with the Commission
pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the
Company is not required to file information, documents or reports pursuant
to either of said Sections, then it shall file with the Trustee and the
Commission, in accordance with rules and regulations prescribed from time
to time by the Commission, such of the supplementary and periodic
information, documents and reports which may be required pursuant to
Section 13 of the Exchange Act in respect of a security listed and
registered on a national securities exchange as may be prescribed from
time to time in such rules and regulations;
(b) file with the Trustee and the Commission, in accordance with
rules and regulations prescribed from time to time by the Commission, such
additional information, documents and reports with respect to compliance
by the Company, as the case may be, with the conditions and covenants of
this Indenture as may be required from time to time by such rules and
regulations; and
(c) transmit by mail to all Holders, as their names and addresses
appear in the Security Register, within 30 days after the filing thereof
with the Trustee, in the manner and to the extent provided in Trust
Indenture Act Section 313(c), such summaries of any information, documents
and reports required to be filed by the Company pursuant to Subsections
(a) and (b) of this Section as may be required by rules and regulations
prescribed from time to time by the Commission.
ARTICLE EIGHT
AMALGAMATION, CONSOLIDATION, MERGER, CONVEYANCE,
TRANSFER OR LEASE
SECTION 801. COMPANY MAY AMALGAMATE, ETC., ONLY ON CERTAIN TERMS.
The Company shall not amalgamate or consolidate with or merge with
or into any other Person or convey, transfer, lease or otherwise dispose of its
properties and assets substantially as an entirety to any Person by liquidation,
winding-up or otherwise (in one transaction or a series of related transactions)
unless:
(a) either (1) the Company shall be the continuing corporation or
(2) the Person (if other than the Company) formed by such amalgamation or
consolidation or into which the Company is merged or the Person which
acquires by conveyance, transfer, lease or other disposition the
properties and assets of the Company substantially as an entirety (i)
shall be a corporation, partnership or trust organized and validly
existing under (A) the laws of the United States of America or any State
thereof or the District of Columbia or (B) the federal laws of Canada or
any Province thereof and (ii) shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, all of the obligations of the Company under
the Securities, this Indenture and, prior to the Release Date, the
Collateral Documents;
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(b) immediately after giving effect to such transaction (and
treating any Debt which becomes an obligation of the Company or a
Subsidiary in connection with or as a result of such transaction as having
been incurred at the time of such transaction), no Default or Event of
Default shall have occurred and be continuing; and
(c) the Company or such Person shall have delivered to the Trustee
an Officers' Certificate and an Opinion of Counsel, each stating that such
amalgamation, consolidation, merger, conveyance, transfer, lease or other
disposition and, if a supplemental indenture is required in connection
with such transaction (or series of transactions), such supplemental
indenture, comply with this Article and that all conditions precedent
herein provided for relating to such transaction have been satisfied.
SECTION 802. SUCCESSOR SUBSTITUTED.
Upon any amalgamation, consolidation or merger, or any conveyance,
transfer, lease or other disposition of the properties and assets of the Company
substantially as an entirety in accordance with Section 801, the successor
Person formed by such amalgamation or consolidation or into which the Company is
merged or the successor Person to which such conveyance, transfer, lease or
other disposition is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor had been named as the Company herein; and
thereafter, except in the case of a lease, the Company shall be discharged from
all obligations and covenants under this Indenture and the Securities.
SECTION 803. SECURITIES TO BE SECURED IN CERTAIN EVENTS.
If, upon any such consolidation or amalgamation of the Company with
or merger of the Company into any other Person, or upon any conveyance,
transfer, lease or disposition of the properties and assets of the Company
substantially as an entirety to any Person by liquidation, winding-up or
otherwise (in one transaction or a series of related transactions), any property
or asset of the Company or of any Subsidiary, would thereupon become subject to
any Lien, then, unless such Lien could be created, prior to the Release Date
pursuant to Section 1007 and on or after the Release Date pursuant to Section
1009 without equally and ratably securing the Securities, the Company, prior to
or simultaneously with such consolidation, amalgamation, merger, conveyance,
transfer, lease or disposition, will, as to such property or asset, secure the
Securities Outstanding hereunder (together with, if the Company shall so
determine, any other Debt of the Company now existing or hereafter created which
is not subordinate to the Securities) equally and ratably with (or prior to) the
Debt which upon such consolidation, amalgamation, merger, conveyance, transfer,
lease or disposition is to become secured as to such property or asset by such
Lien, or will cause such Securities to be so secured.
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ARTICLE NINE
SUPPLEMENTS AND AMENDMENTS TO INDENTURE AND
COLLATERAL DOCUMENTS
SECTION 901. SUPPLEMENTAL INDENTURES AND AMENDMENTS WITHOUT CONSENT OF
HOLDERS.
Without the consent of any Holders, the Company, when authorized by
a Board Resolution, and the Trustee, at any time and from time to time, may
enter into one or more indentures supplemental hereto or one or more amendments
to the Collateral Documents, in form satisfactory to the Trustee, for any of the
following purposes:
(a) to evidence the succession of another Person to the Company and
the assumption by any such successor of the covenants of the Company,
herein and in the Securities or the Collateral Documents, as the case may
be;
(b) to add to the covenants of the Company for the benefit of the
Holders, or to surrender any right or power herein or in the Securities or
the Collateral Documents conferred upon the Company;
(c) to cure any ambiguity, to correct or supplement any provision
herein or in any Collateral Document which may be defective or
inconsistent with any other provision herein or therein, or to make any
other provisions with respect to matters or questions arising under this
Indenture or under any Collateral Document; provided that, in each case,
such provisions shall not adversely affect the interests of the Holders in
any material respect;
(d) to issue Additional Securities as provided in Section 301;
(e) notwithstanding Section 904, to effect the release of security
as provided in Section 1016;
(f) on or after the Release Date, if (i) the ratings assigned to the
Securities by at least two of the three Rating Agencies are Investment
Grade Ratings and (ii) other than under a bank credit facility, there is
no Debt of the Company outstanding with events of default comparable to
the Events of Default specified in Section 501(d) and Section 501(e), to
amend the Indenture without the consent of the Holders to eliminate the
Events of Default specified under Section 501(d) and Section 501(e); or
(g) to make any other change that does not adversely affect the
rights of any Holder or to further secure the Securities.
SECTION 902. ACTIONS BY THE TRUSTEE UNDER THE DEED OF TRUST
(a) In the event that (i) an Event of Default shall have occurred
and the Trustee shall have demanded payment of the Trust Bond pursuant to
Section 6.01 of the Deed of Trust, and (ii) thereafter all existing Events
of Default shall have been waived, rescinded,
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cured or annulled in accordance with the provisions of Article Five and
the Company shall have furnished to the Trustee an Officers' Certificate
to the foregoing effect and requesting that the Trustee waive its demand
for payment of the Trust Bond, then the Trustee shall, without the consent
of any Holders, waive such demand pursuant to Section 6.08 of the Deed of
Trust.
(b) In the event that the Trustee shall receive an Officers'
Certificate (i) to the effect that the Company proposes to issue specified
additional Debt to be secured by the pledge of a new Deed of Trust Bond
having the same or lower priority under the Deed of Trust with respect to
the collateral under the Deed of Trust as the Trust Bond and that the
issuance of such new secured Debt is in compliance with the terms of this
Indenture and with the terms of (including all waivers and consents
granted pursuant to) all other agreements and instruments pursuant to
which any other existing Debt secured by Deed of Trust Bonds has been
issued, and (ii) requesting that the Trustee executes a Bondholders'
Resolution authorizing the issuance, certification and delivery of such
additional Deed of Trust Bond (or cast its votes in favor of such request
in person or by proxy at a meeting of Senior Secured Bondholders held for
such purpose), then the Trustee shall, without consent of any Holder,
execute such Bondholders' Resolution (or so cast its votes in person or by
proxy).
(c) In the event that the Trustee shall receive an Officers'
Certificate (i) to the effect that the Company proposes to incur a Lien
under clause (viii) of Section 1007 and that the incurrence of such Lien
is in compliance with the terms of this Indenture and with the terms of
(including all waivers and consents granted pursuant to) all other
agreements and instruments pursuant to which any other existing Debt
secured by Deed of Trust Bonds has been issued, and (ii) requesting that
the Trustee execute a Bondholders' Resolution or acceptance or take other
action authorizing the incurrence of such Lien (or cast its votes in favor
of such request in person or by proxy at a meeting of Senior Secured
Bondholders held for such purpose), then the Trustee, without consent of
any Holder, shall execute such Bondholders' Resolution (or so cast its
votes in person or by proxy).
(d) In the event that the Trustee shall receive an Officers'
Certificate (i) to the effect that the Board of Directors proposes to
designate a Restricted Subsidiary as an Unrestricted Subsidiary (as
defined in the Deed of Trust) under the Deed of Trust, that pursuant to
the Deed of Trust such designation may only be effected when authorized by
a Unanimous Bondholders' Resolution (as defined in the Deed of Trust) and
that such change in designation is in compliance with the terms of clause
(i) of Section 1008(a) of this Indenture and with the terms of (including
all waivers and consents granted pursuant to) all other agreements and
instruments pursuant to which any other existing Debt secured by Deed of
Trust Bonds has been issued and (ii) requesting that the Trustee execute a
Unanimous Bondholders' Resolution authorizing such change in designation
(or cast its votes in favor of such request in person or by proxy at a
meeting of Senior Secured Bondholders held for such purpose), then the
Trustee shall, without consent of any Holder, execute such Unanimous
Bondholders' Resolution (or so cast its votes in person or by proxy).
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(e) In the event that the Trustee shall receive an Officer's
Certificate (i) to the effect that the Company proposes to take an action
under the Deed of Trust (other than any action referred to in clauses (a)
through (d) above) and (ii) requesting that the Trustee execute a
Bondholders' Resolution or acceptance or take such other action
authorizing the specified action (or cast its vote in favor of such
request in person or by proxy at a meeting of Senior Secured Bondholders
held for such purposes), then the Trustee shall, without consent of any
Holder, execute such Bondholders' Resolution or acceptance or take such
other action (or so cast its votes in person or by proxy); provided that
such action shall not adversely affect the rights of any Holder or the
rights of the Trustee as the holder of the Trust Bond, and the Trustee
shall have received an Opinion of Counsel in Canada, and, if the Trustee
so requires, an Opinion of Counsel in the United States, to such effect.
SECTION 903. SUPPLEMENTAL INDENTURES AND CERTAIN AMENDMENTS WITH CONSENT
OF HOLDERS.
With the consent of the Holders of not less than a majority in
aggregate principal amount of the Outstanding Securities, by Act of such Holders
delivered to the Company and the Trustee, the Company, when authorized by a
Board Resolution, and the Trustee may enter into one or more indentures
supplemental hereto or one or more amendments or supplements to the Pledge
Agreement for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of this Indenture or of waiving or
modifying in any manner the rights of the Holders under this Indenture;
provided, however, that no such supplemental indenture, amendment or waiver
shall, without the consent of the Holder of each Outstanding Security affected
thereby:
(a) change the Stated Maturity of the principal of, or any
installment of interest on, any Security, or reduce the principal amount
thereof or the rate of interest thereon or any premium payable upon the
redemption thereof, or change the coin or currency in which the principal
of any Security or any premium or the interest thereon is payable, or
impair the right to institute suit for the enforcement of any such payment
after the Stated Maturity thereof (or, in the case of redemption, on or
after the Redemption Date); or
(b) reduce the amount of, or change the coin or currency of, or
impair the right to institute suit for the enforcement of, the Change in
Control Purchase Price; or
(c) reduce the percentage in principal amount of the Outstanding
Securities, the consent of whose Holders is required for any such
supplemental indenture, or the consent of whose Holders is required for
any waiver (of compliance with certain provisions of this Indenture or
certain defaults hereunder and their consequences) provided for in this
Indenture; or
(d) modify any of the provisions of this Section or Sections 513 and
1015, except to increase any such percentage or to provide that certain
other provisions of this Indenture cannot be modified or waived without
the consent of the Holder of each Security affected thereby; or
74
(e) permit the creation of any Lien on the Trust Estate or any part
thereof (other than the Lien of the Pledge Agreement) or, subject to
Section 1016, terminate the Lien of the Pledge Agreement as to any part of
the Trust Estate.
It shall not be necessary for any Act of Holders under this Section
to approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such Act shall approve the substance thereof.
SECTION 904. AMENDMENTS TO COLLATERAL DOCUMENTS.
With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities, by Act of such Holders delivered
to the Company and the Trustee, the Trustee may authorize one or more amendments
or supplements to any Collateral Document (other than the Pledge Agreement),
grant one or more consents or waivers thereunder, or execute one or more
instructions or other documents pursuant thereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions
thereof or of waiving or modifying in any manner the rights or obligations of
the parties thereunder or taking any actions pursuant thereto; provided,
however, that no such amendment, supplement, consent, waiver or instruction or
other document shall, without the consent of the Holder of each Outstanding
Security affected thereby:
(a) modify any of the provisions of the Deed of Trust referred to in
Section 9.09 thereof; or
(b) except as permitted hereby and by the Deed of Trust, permit the
creation of any Lien ranking prior to or on a parity with the Lien
securing the Trust Bond or any guarantee thereof or terminate the Lien
securing the Trust Bond or any guarantee thereof as to any part of the
Deed of Trust Collateral.
SECTION 905. EXECUTION OF SUPPLEMENTAL INDENTURES.
In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and (subject to the Trust Indenture Act and Section 603 hereof) shall be fully
protected in acting and relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.
SECTION 906. EFFECT OF SUPPLEMENTAL INDENTURES.
Upon the execution of any supplemental indenture under this Article,
this Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.
SECTION 907. CONFORMITY WITH THE TRUST INDENTURE ACT.
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Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act as then in effect.
SECTION 908. REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES.
Securities authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall if required by
the Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Company shall so determine,
new Securities so modified as to conform, in the opinion of the Trustee and the
Board of Directors, to any such supplemental indenture may be prepared and
executed by the Company and, upon Company Order, authenticated and delivered by
the Trustee in exchange for Outstanding Securities.
SECTION 909. EXECUTION OF SUBORDINATION AGREEMENTS.
In the event that the Trustee receives an Officers' Certificate (i)
to the effect that the Company or a Restricted Subsidiary proposes to issue Debt
subordinated in right of payment to the Securities or the senior indebtedness of
such Restricted Subsidiary, as the case may be, and that the issuance of such
new subordinated Debt is in compliance with the terms of this Indenture and (ii)
requesting that the Trustee execute a subordination agreement (or instrument of
like effect) with the holders of such subordinated Debt or their representative,
then, upon Company Order, the Trustee shall, without the consent of any Holder,
execute such subordination agreement (or instrument of like effect). At the time
this Indenture is entered into, each of the Company, the Trustee and the trustee
for the Senior Subordinated Notes shall have entered into a Subordination
Agreement in the form attached to this Indenture as Exhibit G.
ARTICLE TEN
COVENANTS
SECTION 1001. PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.
The Company will duly and punctually pay the principal of (and
premium, if any) and interest on the Securities in accordance with the terms of
the Securities and this Indenture.
SECTION 1002. MAINTENANCE OF OFFICES OR AGENCIES.
The Company will maintain in The City of New York an office or
agency where Securities may be presented or surrendered for payment, where
Securities may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Securities and this
Indenture may be served. The Corporate Trust Office of the Trustee shall be such
office or agency of the Company, unless the Company shall designate and maintain
some other office or agency for one or more of such purposes. The Company will
give prompt written notice to the Trustee of any change in the location of any
such office or agency. If at any time the Company shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with the
addresses thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office of the Trustee, and the Company
76
hereby appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.
The Company may from time to time designate one or more other
offices or agencies (in or outside of The City of New York) where the Securities
may be presented or surrendered for any or all such purposes, and may from time
to time rescind such designation; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain
an office or agency in The City of New York for such purposes. The Company will
give prompt written notice to the Trustee of any such designation or rescission
and any change in the location of any such office or agency.
SECTION 1003. MONEY FOR SECURITY PAYMENTS TO BE HELD IN TRUST.
If the Company shall at any time act as its own Paying Agent, it
will, on or before each due date of the principal of (and premium, if any) or
interest on any of the Securities, segregate and hold in trust for the benefit
of the Persons entitled thereto a sum sufficient to pay the principal (and
premium, if any) or interest so becoming due until such sums shall be paid to
such Persons or otherwise disposed of as herein provided, and will promptly
notify the Trustee of its action or failure so to act.
Whenever the Company shall have one or more Paying Agents for the
Securities, it will, on or before each due date of the principal of (and
premium, if any) or interest on any Securities, deposit with a Paying Agent a
sum in same day funds (or New York Clearing House funds if such deposit is made
prior to the date on which such deposit is required to be made) sufficient to
pay the principal (and premium, if any) or interest so becoming due, such sum to
be held in trust for the benefit of the Persons entitled to such principal,
premium or interest and (unless such Paying Agent is the Trustee) the Company
will promptly notify the Trustee of such action or any failure so to act.
The Company will cause each Paying Agent other than the Trustee to
execute and deliver to the Trustee an instrument in which such Paying Agent
shall agree with the Trustee, subject to the provisions of this Section, that
such Paying Agent will:
(a) hold all sums held by it for the payment of the principal of
(and premium, if any) or interest on Securities in trust for the benefit
of the Persons entitled thereto until such sums shall be paid to such
Persons or otherwise disposed of as herein provided;
(b) give the Trustee notice of any default by the Company (or any
other obligor upon the Securities) in the making of any payment of
principal (and premium, if any) or interest; and
(c) at any time during the continuance of any such default, upon the
written request of the Trustee, forthwith pay to the Trustee all sums so
held in trust by such Paying Agent.
The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying Agent,
77
such sums to be held by the Trustee upon the same trusts as those upon which
such sums were held by the Company or such Paying Agent; and, upon such payment
by any Paying Agent to the Trustee, such Paying Agent shall be released from all
further liability with respect to such money.
Any money deposited with the Trustee or any Paying Agent, or then
held by the Company, in trust for the payment of the principal of (and premium,
if any) or interest on any Security and remaining unclaimed for two years after
such principal (and premium, if any) or interest has become due and payable
shall be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease.
SECTION 1004. CORPORATE EXISTENCE.
Subject to Article Eight, the Company will do or cause to be done
all things necessary to preserve and keep in full force and effect the corporate
existence and corporate power and authority of the Company and each Restricted
Subsidiary; provided, however, that the Company shall not be required to
preserve any such corporate existence and corporate power and authority if the
Company shall determine that the preservation thereof is no longer desirable in
the conduct of the business of the Company and its Restricted Subsidiaries taken
as a whole.
SECTION 1005. PAYMENT OF TAXES AND OTHER CLAIMS.
The Company will pay or discharge or cause to be paid or discharged,
before the same shall become delinquent, (a) all material taxes, assessments and
governmental charges levied or imposed upon the Company or any Restricted
Subsidiary or upon the income, profits or property of the Company or any
Restricted Subsidiary and (b) all material lawful claims for labor, materials
and supplies, which, if unpaid, might by law become a Lien upon the property of
the Company or any Restricted Subsidiary that could produce a material adverse
effect on the Consolidated financial condition of the Company; provided,
however, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings.
SECTION 1006. MAINTENANCE OF PROPERTIES.
The Company will cause all properties owned by the Company or any
Restricted Subsidiary or used or held for use in the conduct of its business or
the business of any Restricted Subsidiary to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment
and will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Company may
be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times, except, in every case, as
and to the extent that the Company may be prevented by fire, strikes, lockouts,
acts of God, inability to obtain labor or materials, governmental restrictions,
enemy action, civil commotion or unavoidable casualty or
78
similar causes beyond the control of the Company; provided, however, that
nothing in this Section shall prevent the Company from discontinuing the
maintenance of any of such properties if such discontinuance is, in the judgment
of the Company, desirable in the conduct of its business or the business of any
Restricted Subsidiary and not disadvantageous in any material respect to the
Holders.
SECTION 1007. LIMITATION ON LIENS.
Prior to the Release Date, the Company will not, and will not permit
any Restricted Subsidiary to, create, affirm, incur, or suffer to exist any Lien
of any kind upon any of its property or assets, now owned or hereafter acquired,
other than:
(i) Liens on Excluded Assets;
(ii) Liens securing Debt under (A) Capital Lease Obligations and/or
Purchase Money Obligations not exceeding at any time an aggregate amount
equal to 10% of the Company's Consolidated Tangible Assets and (B)
Supplier Obligations not exceeding at any time an aggregate principal
amount of Cdn$100,000,000; provided that no assets or property of the
Company or any Restricted Subsidiary (other than the property acquired in
connection with such Capital Lease Obligation, Purchase Money Obligation
or Supplier Obligation) are subject to any Lien securing such Debt;
(iii) Liens securing Debt of a Person outstanding on the date such
Person becomes a Restricted Subsidiary; provided that such Liens (A) were
not incurred in contemplation of such Person becoming a Restricted
Subsidiary and (B) are not applicable to the Company or any other
Restricted Subsidiary, or the properties or assets of the Company or any
other Restricted Subsidiary;
(iv) Liens on property or assets acquired by the Company or any
Restricted Subsidiary from another Person which are existing at the time
of such acquisition, provided that such Liens (A) were not incurred in
contemplation of the acquisition of such property or assets and (B) are
applicable only to such property or assets;
(v) Liens on the property and assets of the Company or any
Restricted Subsidiary provided or granted to the Deed Trustee pursuant to
the Deed of Trust;
(vi) Liens securing Debt (and other related obligations) under (A)
one or more bank credit facilities in an aggregate principal amount not to
exceed Cdn$800,000,000 in the aggregate at any time outstanding or (B) one
or more operating credit facilities in an aggregate principal amount not
to exceed Cdn$20,000,000 at any time; provided that such Debt was incurred
in compliance with the provisions of this Indenture and that such Liens
are limited to a pledge of Deed of Trust Bonds;
(vii) Liens securing Debt (and other related obligations); provided
that such Liens are limited to Liens securing Deed of Trust Bonds;
(viii) the contractual right of holders of Deed of Trust Bonds who
provide funds to the Deed Trustee to make payments relating to Supplier
Obligations to be paid out of
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the proceeds received by the Deed Trustee from the enforcement of any
remedy provided for in the Deed of Trust prior to the payment of such
proceeds to holders of Senior Debt to the extent and in the manner
prescribed in the Deed of Trust;
(ix) Liens which, together with the Debt secured thereby, by their
respective terms and by contract with the Deed Trustee, provide that:
(1) they are subordinated and postponed to all Senior Debt and
all Liens therefor, now or hereafter existing or granted, with the
result that (x) upon any failure to make any payment on account of
the Senior Debt when due which has not been cured or waived, or (y)
upon any dividend or other payment to, or any issuance of debt or
equity securities to, or any distribution of the assets of, the
Company or any other Restricted Subsidiary among, the creditors of
the Company or any other Restricted Subsidiary upon a dissolution,
liquidation, reorganization, insolvency or bankruptcy of, or
arrangement, compromise or restructuring of debts or assets of, the
Company or any other Restricted Subsidiary, or (z) upon the
occurrence of any other event specified in the instrument creating
such subordinated Debt or Lien, the holders of Senior Debt shall be
entitled to receive payment in full before the holders of such
subordinated Debt are entitled to receive any payment on such
subordinated Debt; and
(2) the holders of any such subordinated Lien or Debt will not
be entitled to (x) contest the validity, priority, perfection or
enforceability of any Lien granted in respect of Senior Debt, or (y)
take any steps whatsoever including, without limitation,
registration of such subordinated Lien, that result in such
subordinated Lien (A) ranking prior to or pari passu with the Liens
granted in respect of the Senior Debt or (B) charging any property
or assets of the Company or any other Restricted Subsidiary that are
intended to be subject to any Lien granted in respect of the Senior
Debt but are not at the time so charged for the benefit of the
Senior Debt;
(x) Liens for taxes, rates and assessments not yet due or, if due,
the validity of which is being contested diligently and in good faith by
appropriate proceedings by the Company or any of the Restricted
Subsidiaries (as applicable); and Liens for the excess of the amount of
any past due taxes for which a final assessment has not been received over
the amount of such taxes as estimated and paid;
(xi) the Lien of any judgment rendered which is being contested
diligently and in good faith by appropriate proceedings by the Company, or
any of the Restricted Subsidiaries, as the case may be, and which does not
have a material adverse effect on the ability of the Company and the
Restricted Subsidiaries to operate the business or operations of the
Company;
(xii) any Lien arising under the Construction Lien Act (Ontario), as
amended or replaced, or similar legislation dealing with mechanics Liens
or the privileged claims of builders and suppliers of materials in any
other province of Canada in which the relevant part of the applicable
property is located (each, a "Lien Act"), provided that the
80
aggregate amount of all such Liens is less than Cdn$1,000,000, the Lien is
being contested diligently if permitted by any such applicable Lien Act
and any applicable holdback (as defined by the applicable Lien Act) is
being maintained in accordance with such Lien Act;
(xiii) any mortgage, charge, pledge, Lien or security interest
howsoever ranking for which provision has been made by the deposit with
the Deed Trustee of cash, a bank draft or letter of credit, surety bond or
other security in an amount sufficient to pay the same and all interest
and costs in connection therewith at maturity;
(xiv) reservations, limitations, provisos and conditions expressed
in any original grants from the Crown which do not materially adversely
impair the use of the subject property;
(xv) licenses, easements, rights-of-way and rights in the nature of
easements (including, without in any way limiting the generality of the
foregoing, licenses, easements, rights-of-way and rights in the nature of
easements for sidewalks, public ways, sewers, drains, gas, steam and water
mains or electric light and power, or telephone and telegraph conduits,
poles, wires and cable) which will not in the aggregate materially and
adversely impair the use of the subject property or in respect to which
the Company or any of the Restricted Subsidiaries, as the case may be, has
made satisfactory arrangements for relocation so that such use will not in
the aggregate be materially and adversely impaired;
(xvi) zoning and building by-laws and ordinances, municipal by-laws
and regulations, and restrictive covenants which do not materially
interfere with the use of the subject property;
(xvii) title defects or irregularities which are of a minor nature
and which in the aggregate will not materially affect the Deed of Trust
Collateral granted to the Deed Trustee pursuant to the Deed of Trust or
materially impair the use of the subject property for the purpose for
which it is held by the Company or any of the Restricted Subsidiaries, as
the case may be;
(xviii) any other Lien existing on the date of this Indenture; and
(xix) Liens, other than Liens incurred pursuant to the foregoing
clauses (i) to (xviii), securing or otherwise in respect of up to
Cdn$20,000,000 aggregate amount of obligations of the Company or any
Restricted Subsidiary at any time outstanding.
To the extent that any Lien qualifies or may be considered under
more than one of the foregoing clauses (i) through (xviii) (or any subclause
therein), it shall be deemed to constitute a Lien permitted under this Section
1007 pursuant to the clause (or subclause) designated from time to time by the
Company, which designation need not be in writing.
SECTION 1008. RESTRICTED SUBSIDIARIES.
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(a) The Board of Directors may designate any Restricted Subsidiary
or any Person that is to become a Subsidiary as an Unrestricted
Subsidiary, or the Company or any Restricted Subsidiary may transfer any
assets or properties to an Unrestricted Subsidiary, if (i) prior to and
immediately after such designation, no Default or Event of Default shall
have occurred and be continuing; (ii) such subsidiary or Person, together
with all other Unrestricted Subsidiaries, shall not in the aggregate have
Net Tangible Assets greater than 15% of the Company's Consolidated Net
Tangible Assets, and (iii) prior to the Release Date, such Restricted
Subsidiary becomes an Unrestricted Subsidiary (as defined in the Deed of
Trust) under the Deed of Trust; provided, however, that for the purposes
of this Section 1008, (1) the Company's Consolidated Net Tangible Assets
shall also include the aggregate Net Tangible Assets of such Subsidiary or
Person and all other Unrestricted Subsidiaries and (2) Excluded Assets
shall be excluded from the calculation of Net Tangible Assets and
Consolidated Net Tangible Assets.
(b) The Board of Directors may not designate (i) any Unrestricted
Subsidiary as a Restricted Subsidiary or (ii) prior to the Release Date,
any Person that is to become a Subsidiary as a Restricted Subsidiary,
unless:
(i) such Unrestricted Subsidiary or such Person is incorporated or
organized in Canada or a province or territory thereof, or in the United
States or any state thereof or the District of Columbia;
(ii) immediately before and after giving effect to such designation,
no Default or Event of Default shall have occurred and be continuing; and
(iii) prior to the Release Date, such Unrestricted Subsidiary or
such Person becomes a Restricted Subsidiary (as defined in the Deed of
Trust) under the Deed of Trust.
(c) Nothing is this Section 1008 shall restrict or limit the Company
or any Restricted Subsidiary from transferring any asset that is an
Excluded Asset to any Unrestricted Subsidiary or any Person that is to
become an Unrestricted Subsidiary.
SECTION 1009. LIMITATION ON SECURED DEBT.
On or after the Release Date, the Company shall not, and the Company
shall not permit any of its Restricted Subsidiaries to, create, assume, incur or
guarantee any Secured Debt unless and for so long as the Company secures the
Securities equally and ratably with (or prior to) such Secured Debt. However,
the Company may incur Secured Debt without securing the Securities if,
immediately after incurring the Secured Debt, the aggregate amount of all
Secured Debt and the aggregate amount of Attributable Debt then outstanding
pursuant to Sale and Leaseback Transactions would not exceed 15% of Consolidated
Net Tangible Assets. The aggregate amount of all Secured Debt in the preceding
sentence excludes Secured Debt which is secured equally and ratably with the
Securities and Secured Debt that is being repaid concurrently. Any Lien which is
granted to secure the Securities under this Section 1009 shall be discharged at
the same time as the discharge of the Lien securing the Secured Debt that gave
rise to the obligation to secure the Securities under this Section 1009.
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SECTION 1010. LIMITATION ON SALE AND LEASEBACK TRANSACTIONS.
On or after the Release Date, the Company shall not permit, and
shall not permit any Restricted Subsidiary to, enter into any Sale and Leaseback
Transaction, unless either (a) immediately thereafter, the sum of (1) the
Attributable Debt to be outstanding pursuant to such Sale and Leaseback
Transaction and all other Sale and Leaseback Transactions entered into by the
Company or a Restricted Subsidiary on or after the Release Date (or, in the case
of a Restricted Subsidiary, the date on which it became a Restricted Subsidiary,
if on or after the Release Date) and (2) the aggregate amount of all Debt
secured by a Lien, excluding Debt which is secured to the same extent as the
Securities, does not exceed 15% of the Company's Consolidated Net Tangible
Assets, or (b) an amount equal to the greater of the net proceeds to the Company
or a Restricted Subsidiary from such sale and the Attributable Debt to be
outstanding pursuant to such Sale and Leaseback Transaction is used within 180
days to retire long-term debt of the Company or a Restricted Subsidiary,
provided that in no event shall the Company be required on or prior to the Fifth
Anniversary to retire (i) Securities pursuant to this Section 1010 that have an
aggregate principal amount in excess of 25% of the original aggregate principal
amount of the Securities or (ii) Other Senior Notes of a series pursuant to this
Section 1010 that have an aggregate principal amount in excess of 25% of the
original aggregate principal amount of such series of the Other Senior Notes or
(iii) Senior Subordinated Notes pursuant to this Section 1010 that have an
aggregate principal amount in excess of 25% of the original aggregate principal
amount of the Senior Subordinated Notes, and provided further that, promptly
after the Fifth Anniversary, the Company will retire any Securities, Other
Senior Notes and Senior Subordinated Notes that would have been retired under
this Section 1010 but for the foregoing proviso. However, Debt which is
subordinate to the Securities or which is owed to the Company or a Restricted
Subsidiary may not be retired.
SECTION 1011. LIMITATION ON RESTRICTED SUBSIDIARY DEBT.
On or after the Release Date, the Company will not permit any
Restricted Subsidiary to, directly or indirectly, create, incur, assume or
suffer to exist any Debt (other than Debt to the extent that the Securities are
secured equally and ratably with (or prior to) such Debt), unless (1) the
obligations of the Company under the Securities are guaranteed (which guarantee
may be on an unsecured basis) by such Restricted Subsidiary such that the claim
of the Holders of the Securities under such guarantee ranks prior to or pari
passu with such Debt or (2) after giving effect to the incurrence of such Debt
and the application of the proceeds therefrom, the sum of (without duplication)
(x) the aggregate principal amount of Debt (other than Exempted Secured Debt) of
all Restricted Subsidiaries, (y) the then outstanding principal amount of
Secured Debt of the Company (not on a Consolidated basis) and (z) Attributable
Debt relating to then outstanding Sale and Leaseback Transactions, would not
exceed 15% of Consolidated Net Tangible Assets; provided, however, that this
restriction will not apply to, and there will be excluded from, any calculation
hereunder, (A) Debt owing by a Restricted Subsidiary to the Company or to
another Restricted Subsidiary and (B) Debt secured by Liens that would otherwise
be permitted under clauses (i), (x) and (xi) of Section 1007; and provided,
further, that this restriction will not prohibit the incurrence of Debt in
connection with any extension, renewal or replacement (including successive
extensions, renewals or replacements), in whole or in part, of any Debt of the
Restricted Subsidiaries (provided that the principal amount of such Debt
immediately prior to such extension, renewal or replacement is not increased).
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SECTION 1012. PROVISION OF FINANCIAL INFORMATION.
(a) The Company shall supply without cost to each Holder of the
Securities, and file with the Trustee within 30 days after the Company is
required to file the same with the Commission, copies of the annual
reports and quarterly reports and of the information, documents and other
reports which the Company may be required to file with the Commission
pursuant to Section 13(a), 13(c) or 15(d) of the Exchange Act.
(b) If the Company is not required to file with the Commission such
reports and other information referred to in Section 1012(a), the Company
shall furnish without cost to each Holder of the Securities and file with
the Trustee (i) within 110 days after the end of each fiscal year, audited
year-end financial statements prepared in accordance with GAAP and
substantially in the form prescribed by applicable Canadian regulatory
authorities for Canadian public reporting companies (whether or not the
Company is a public reporting company at the time), (ii) within 60 days
after the end of each of the first three fiscal quarters of each fiscal
year, unaudited quarterly financial statements prepared in accordance with
GAAP and substantially in the form prescribed by applicable Canadian
regulatory authorities for Canadian public reporting companies (whether or
not the Company is a public reporting company at the time). The Company
shall also make such reports available to prospective purchasers of the
Securities, securities analysts and broker-dealers upon their request.
SECTION 1013. PAYMENT OF ADDITIONAL AMOUNTS.
All payments made by the Company under or with respect to the
Securities will be made free and clear of and without withholding or deduction
for or on account of any present or future tax, duty, levy, impost, assessment
or other governmental charge imposed or levied by or on behalf of the Government
of Canada or of any province or territory thereof or by any authority or agency
therein or thereof having power to tax (hereinafter "Taxes"), unless the Company
is required to withhold or deduct Taxes by law or by the interpretation or
administration thereof. If the Company is so required to withhold or deduct any
amount for or on account of Taxes from any payment made under or with respect to
the Securities, the Company will pay as interest such additional amounts
("Additional Amounts") as may be necessary so that the net amount received by
each Holder (including Additional Amounts) after such withholding or deduction
will not be less than the amount the Holder would have received if such Taxes
had not been withheld or deducted; provided that no Additional Amounts will be
payable with respect to a payment made to a Holder (an "Excluded Holder") (i)
with which the Company does not deal at arm's length (within the meaning of the
Income Tax Act (Canada)) at the time of making such payment or (ii) which is
subject to such Taxes by reason of its being connected with Canada or any
province or territory thereof otherwise than by the acquisition or mere holding
of Securities or the receipt of payments thereunder or the enforcement of rights
with respect to the Collateral Documents, (iii) if the Securities are presented
for payment more than 15 days after the date on which such payment or such
Securities became due and payable or the date on which such payment thereof is
duly provided for, whichever is later (except to the extent that the Holder
would have been entitled to Additional Amounts had the Securities been presented
on the last day of such 15-day period) or (iv) to the extent that such
withholding is
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imposed on a payment to a Holder who is an individual pursuant to European Union
Directive 2003/48/EC on the taxation of savings or any law implementing or
complying with, or introduced in order to conform to, such Directive. The
Company will also (i) make such withholding or deduction and (ii) remit the full
amount deducted or withheld to the relevant authority in accordance with
applicable law. Upon the written request of a Holder of Securities, the Company
will furnish, as soon as reasonably practicable, to such Holder of Securities
certified copies of tax receipts evidencing such payment by the Company. The
Company will indemnify and hold harmless each Holder (other than to the extent
the Holder is an Excluded Holder) and upon written request of any Holder of
Securities (other than to the extent the Holder is an Excluded Holder) reimburse
such Holder for the amount of (i) any such Taxes so levied or imposed and paid
by such Holder as a result of any failure of the Company to withhold, deduct or
remit to the relevant tax authority, on a timely basis, the full amounts
required under applicable law; and (ii) any such Taxes so levied or imposed with
respect to any reimbursement under the foregoing clause (i), so that the net
amount received by such Holder after such reimbursement would not be less than
the net amount such Holder would have received if such Taxes on such
reimbursement had not been imposed.
At least 30 days prior to each date on which any payment under or
with respect to the Securities is due and payable, if the Company will be
obligated to pay Additional Amounts with respect to such payment, the Company
will deliver to the Trustee an Officers' Certificate stating the fact that such
Additional Amounts will be payable, the amounts so payable and will set forth
such other information necessary to enable the Trustee, on behalf of the
Company, to pay such Additional Amounts to Holders on the payment date. Whenever
in this Indenture there is mentioned, in any context, the payment of principal
(and premium, if any), Redemption Price, Change in Control Purchase Price,
interest or any other amount payable under or with respect to any Security such
mention shall be deemed to include mention of the payment of Additional Amounts
provided for in this Section to the extent that, in such context, Additional
Amounts are, were or would be payable in respect thereof pursuant to the
provisions of this Section and express mention of the payment of Additional
Amounts (if applicable) in any provisions hereof shall not be construed as
excluding Additional Amounts in those provisions hereof where such express
mention is not made (if applicable).
The obligations of the Company under this Section 1013 shall survive
the termination of this Indenture and the payment of all amounts under or with
respect to the Securities.
SECTION 1014. STATEMENT AS TO COMPLIANCE.
The Company will deliver to the Trustee, within 120 days after the
end of each fiscal year ending after the date hereof (or within such shorter
time period as may be required by the Trust Indenture Act) and otherwise upon
the demand of the Trustee, a brief certificate of its principal executive
officer, principal financial officer or principal accounting officer stating
whether, to such officer's knowledge, the Company is in compliance with all
covenants and conditions to be complied with by it under this Indenture and,
prior to the Release Date, the Collateral Documents. For purposes of this
Section 1014, such compliance shall be determined without regard to any period
of grace or requirement of notice under this Indenture or the Collateral
Documents.
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When a Default has occurred and is continuing or if the Trustee, any
Holder or the trustee for or the holder of any other evidence of Debt of the
Company or any Restricted Subsidiary gives any notice or takes any other action
with respect to a claimed default (other than with respect to Debt in the
principal amount of less than Cdn$10,000,000), the Company shall deliver to the
Trustee an Officers' Certificate specifying such Default, notice or other action
within 10 Business Days of its occurrence.
The Company shall furnish to the Trustee, upon the demand of the
Trustee, evidence, in the form required by the Trustee, of any action required
or permitted to be taken by the Company under this Indenture.
SECTION 1015. WAIVER OF CERTAIN COVENANTS.
The Company may omit in any particular instance to comply with any
covenant or condition set forth in Sections 1005 through 1012 if, before or
after the time for such compliance, the Holders of a majority in aggregate
principal amount of the Securities at the time outstanding shall, by Act of such
Holders, waive such compliance in such instance with such covenant or condition,
but no such waiver shall extend to or affect such covenant or condition except
to the extent so expressly waived, and, until such waiver shall become
effective, the obligations of the Company and the duties of the Trustee in
respect of any such covenant or condition shall remain in full force and effect.
SECTION 1016. RELEASE OF SECURITY.
(a) In the event that (i) on a pro forma basis giving effect to the
release of the security for the Securities and any other Debt of the
Company with similar release provisions, (A) no Debt of the Company would
be outstanding and (B) there would be no availability to the Company under
any bank credit facilities, operating credit facilities or swap
agreements, in the case of each of (A) and (B) that is or are secured by a
Lien of the Pledge Agreement or any Collateral Document or any other Lien
on the Deed of Trust Collateral, (ii) the ratings assigned to the
Securities by at least two of the three Rating Agencies are Investment
Grade Ratings and (iii) no Default or Event of Default has occurred and is
continuing under this Indenture, then, without the consent of the Holders,
the Company may permanently terminate the Lien of the Pledge Agreement or
any Collateral Document and any other Lien on the Deed of Trust
Collateral. On the Release Date, the provisions of Article Twelve of this
Indenture shall terminate and have no further force or effect.
(b) The Company shall notify the Rating Agencies and the Trustee of
its intention to exercise its option to release the collateral at least 45
days prior to the proposed date of such release (the "Release Date"). In
order to effect the release of the security, on the proposed Release Date
the Company shall deliver to the Trustee an Officers' Certificate stating
that (A) each of the conditions specified above has been satisfied and (B)
the Company has not been notified by the Rating Agencies that the ratings
assigned to the Securities will be downgraded as a result of the release
of the security such that the ratings assigned to the Securities by at
least two of the three Rating Agencies will be
86
below Investment Grade. Such Officers' Certificate shall be dated on, or
not more than one day prior to, the Release Date.
(c) As soon as practicable after the occurrence of the Release Date,
the Trustee will, upon Company Order and at the Company's expense, (i)
return to the Company all Collateral in the Trustee's possession as shall
not have been sold or otherwise applied pursuant to the terms of the Lien
of the Pledge Agreement and any Collateral Document and any other Lien on
the Deed of Trust Collateral and (ii) promptly execute and deliver further
instruments and documents, and take all further actions, that may be
necessary or desirable, or that the Company may reasonably request, in
order to evidence the termination of the Lien of the Pledge Agreement and
any Collateral Document and any other Lien on the Deed of Trust
Collateral.
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
SECTION 1101. RIGHT OF REDEMPTION.
(a) Except pursuant to the provisions of subsection (b) below, the
Securities may not be redeemed at the option of the Company prior to
December 15, 2006. Starting on that date, the Securities may be redeemed
at the election of the Company, as a whole or from time to time in part,
subject to the conditions and at the Redemption Price specified in the
form of Security set forth in Article Two herein, together with accrued
interest to the Redemption Date.
(b) If, as a result of any change in, or amendment to, the laws (or
any regulations promulgated thereunder) of Canada (or any political
subdivision or taxing authority thereof or therein), or any change in, or
amendment to, any official position regarding the application or
interpretation of such laws or regulations, which change or amendment is
announced or becomes effective on or after November 19, 2004, the Company
has become or would become obligated to pay, on the next date on which any
amount would be payable under or with respect to the Securities, any
Additional Amounts in accordance with Section 1013 hereof, then the
Company may, at its option, redeem the Securities, as a whole but not in
part, at a redemption price equal to 100% of their principal amount,
together with interest accrued thereon to the Redemption Date; provided
that the Company determines, in its business judgment, that the obligation
to pay such Additional Amounts cannot be avoided by the use of reasonable
measures available to the Company not including substitution of the
obligor under the Securities.
SECTION 1102. APPLICABILITY OF ARTICLE.
Redemption of Securities at the election of the Company or
otherwise, as permitted or required by any provision of this Indenture, shall be
made in accordance with such provision and this Article.
SECTION 1103. ELECTION TO REDEEM; NOTICE TO TRUSTEE.
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The election of the Company to redeem the Securities pursuant to
Section 1101 shall be evidenced by a Board Resolution. In case of any redemption
at the election of the Company, the Company shall, at least 60 days prior to the
Redemption Date fixed by it (unless a shorter notice period shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date and of
the principal amount of Securities to be redeemed.
SECTION 1104. SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED.
If less than all the Securities are to be redeemed, the particular
Securities or portions thereof to be redeemed shall be selected not more than 60
days and not less than 30 days prior to the Redemption Date by the Trustee, from
the Outstanding Securities not previously called for redemption, on a pro rata
basis, and the amounts to be redeemed may be equal to U.S.$1,000 or any integral
multiple thereof.
The Trustee shall promptly notify the Company and the Security
Registrar in writing of the Securities selected for redemption and, in the case
of any Securities selected for partial redemption, the principal amount thereof
to be redeemed.
For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to redemption of Securities shall relate, in
the case of any Security redeemed or to be redeemed only in part, to the portion
of the principal amount of such Security which has been or is to be redeemed.
SECTION 1105. NOTICE OF REDEMPTION.
Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Securities to be redeemed, at its address appearing in
the Security Register.
All notices of redemption shall state:
(a) the Redemption Date;
(b) the Redemption Price;
(c) if less than all Outstanding Securities are to be redeemed, the
identification (and, in the case of a Security to be redeemed in part, the
principal amount) of the particular Securities to be redeemed;
(d) that on the Redemption Date the Redemption Price will become due
and payable upon each such Security, and that interest thereon shall cease
to accrue on and after said date; and
(e) the place or places where such Securities are to be surrendered
for payment of the Redemption Price.
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Notice of redemption of Securities to be redeemed at the election of
the Company shall be given by the Company or, at its request, by the Trustee in
the name and at the expense of the Company.
SECTION 1106. DEPOSIT OF REDEMPTION PRICE.
On or prior to any Redemption Date, the Company shall deposit or
cause to be deposited with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 1003) an amount of money in same day funds (or New York
Clearing House funds if such deposit is made prior to the applicable Redemption
Date) sufficient to pay the Redemption Price of, and (except if the Redemption
Date shall be an Interest Payment Date) accrued interest on, all the Securities
which are to be redeemed on that date.
SECTION 1107. SECURITIES PAYABLE ON REDEMPTION DATE.
Notice of redemption having been given as aforesaid, the Securities
so to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest. Upon surrender of any
such Security for redemption in accordance with said notice, such Security shall
be paid by the Company at the Redemption Price together with accrued interest to
the Redemption Date; provided, however, that installments of interest whose
Stated Maturity is on or prior to the Redemption Date shall be payable to the
Holders of such Securities, or one or more Predecessor Securities, registered as
such on the relevant Regular Record Dates according to the terms and the
provisions of Section 309.
If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal thereof (and premium, if any,
thereon) shall, until paid, bear interest from the Redemption Date at the rate
borne by such Security.
SECTION 1108. SECURITIES REDEEMED IN PART.
Any Security which is to be redeemed only in part shall be
surrendered at the office or agency of the Company maintained for such purpose
pursuant to Section 1002 (with, if the Company, the Security Registrar or the
Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company, the Security Registrar or the Trustee duly
executed by, the Holder thereof or its attorney duly authorized in writing), and
the Company shall execute, and, upon Company Order, the Trustee shall
authenticate and deliver to the Holder of such Security without service charge,
a replacement Security or Securities, of any authorized denomination as
requested by such Holder in aggregate principal amount equal to and in exchange
for the unredeemed portion of the principal of the Security so surrendered.
SECTION 1109. EFFECT OF CHANGE IN CONTROL PURCHASE NOTICE.
Upon receipt by the Company of the Change in Control Purchase Notice
specified in Section 516(b), the Holder of the Security in respect of which such
Change in Control Purchase Notice was given shall (unless such Change in Control
Purchase Notice is withdrawn
89
as specified in the following two paragraphs of this Section) thereafter be
entitled to receive solely the Change in Control Purchase Price with respect to
such Security. Such Change in Control Purchase Price shall be paid to such
Holder upon the later of (a) the first Business Day following the Change in
Control Purchase Date (provided the conditions in Section 516(b) have been
satisfied) and (b) the time of delivery of the Security to the Paying Agent at
the office of the Paying Agent or to the office or agency referred to in Section
1002 by the Holder thereof in the manner required by Section 516(b).
A Change in Control Purchase Notice may be withdrawn before or after
delivery by the Holder to the Paying Agent at the office of the Paying Agent of
the Security to which such Change in Control Purchase Notice relates, by means
of a written notice of withdrawal delivered by the Holder to the Paying Agent at
the office of the Paying Agent or to the office or agency referred to in Section
1002 to which the related Change in Control Purchase Notice was delivered at any
time prior to the close of business on the Change in Control Purchase Date
specifying, as applicable:
(1) the certificate number of the Security in respect of which
such notice of withdrawal is being submitted,
(2) the principal amount of the Security (which shall be
U.S.$1,000 or an integral multiple thereof) with respect to which
such notice of withdrawal is being submitted, and
(3) the principal amount, if any, of such Security (which
shall be U.S.$1,000 or an integral multiple thereof) that remains
subject to the original Change in Control Purchase Notice and that
has been or will be delivered for purchase by the Company.
The Paying Agent will promptly return to the respective Holders
thereof any Securities with respect to which a Change in Control Purchase Notice
has been withdrawn in compliance with this Indenture.
SECTION 1110. DEPOSIT OF CHANGE IN CONTROL PURCHASE PRICE.
No later than 11:00 a.m. (New York time) on the Business Day
following the Change in Control Purchase Date the Company shall deposit or cause
to be deposited with the Paying Agent (or, if the Company is acting as the
Paying Agent, shall segregate and hold in trust as provided in Section 1003) an
amount of cash sufficient to pay the aggregate Change in Control Purchase Price
of all the Securities or portions thereof that are to be purchased as of the
Change in Control Purchase Date.
SECTION 1111. SECURITIES PURCHASED IN PART.
Any Security that is to be purchased only in part shall be
surrendered to the Paying Agent at the office of the Paying Agent or to the
office or agency referred to in Section 1002 (with, if the Company or the
Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or such Holder's attorney duly authorized in writing) and the Company
shall
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execute and, upon Company Order, the Trustee shall authenticate and deliver to
the Holder of such Security, without service charge, a replacement Security or
Securities, of any authorized denomination as requested by such Holder in an
aggregate principal amount equal to, and in exchange for, the principal amount
of the Security so surrendered that is not purchased.
SECTION 1112. REPAYMENT TO THE COMPANY.
As provided in the Securities, the Trustee and the Paying Agent
shall return to the Company any cash that remains unclaimed, together with
interest or dividends, if any, thereon (subject to the provisions of Section
607), held by them for the payment of the Change in Control Purchase Price;
provided, however, that, to the extent that the aggregate amount of cash
deposited by the Company pursuant to Section 1110 exceeds the aggregate Change
in Control Purchase Price of the Securities or portions thereof to be purchased,
then the Trustee shall hold such excess for the Company and promptly after the
Business Day following the Change in Control Purchase Date the Trustee shall
upon demand return any such excess to the Company together with interest or
dividends, if any, thereon (subject to the provisions of Section 607).
ARTICLE TWELVE
SECURITY DOCUMENTS
The provisions of this Article Twelve shall continue in effect until
the occurrence of the Release Date, at which time they shall terminate and have
no further force or effect.
SECTION 1201. PLEDGE AGREEMENT.
As general and continuing collateral security for the due repayment
and satisfaction of all present and future indebtedness, liabilities and
obligations of any kind whatsoever, under, in connection with or relating to
this Indenture, including without limitation, the Securities and any ultimate
unpaid balance thereof and to secure the due performance of all of the other
present and future obligations of the Company to the Trustee (including
obligations under Section 607 of this Indenture) and the Holders of the
Securities under this Indenture and the Securities, the Company has assigned,
deposited with and pledged the Trust Bond to the Trustee pursuant to the Pledge
Agreement. The Company covenants and agrees that it has full right, power and
lawful authority to grant, bargain, sell, release, convey, hypothecate, assign,
mortgage, pledge, transfer and confirm the property constituting the Trust
Estate, in the manner and form done in the Pledge Agreement or intended to be
done, free and clear of all liens, pledges, charges and encumbrances whatsoever,
and that (a) it will forever warrant and defend the title to the same against
the claims of all persons whatsoever, (b) it will execute, acknowledge and
deliver to the Trustee such further assignments, transfers, assurances or other
instruments as the Trustee may require or request, and (c) it will do or cause
to be done all such acts and things as may be necessary or proper, or as may be
required by the Trustee, to assume and confirm to the Trustee the Trust Estate,
or any part thereof, as from time to time constituted, so as to render the same
available for the security and benefit of this Indenture and of the Securities.
The Company further covenants and agrees that the Pledge Agreement creates the
direct and valid first lien on the Trust Bond which it purports to create.
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SECTION 1202. RECORDING.
The Company will cause, at its own expense, this Indenture, the
Pledge Agreement, the Deed of Trust and any other Collateral Document, and all
amendments or supplements thereto, to be registered, recorded and filed and/or
re-recorded and/or re-filed and/or renewed in such manner and in such place or
places, if any, as may be required by law in order fully to preserve and protect
the Liens of the Collateral Documents and all parts of the Trust Estate and to
effectuate and preserve the security of the Holders and all rights of the
Trustee.
The Company shall furnish to the Trustee:
(i) promptly after the execution and delivery of this Indenture or
other instrument of further assurance, an Opinion of Counsel stating that,
in the opinion of such counsel, this Indenture, the Pledge Agreement and
all other instruments of further assurance have been properly recorded,
registered and filed to the extent necessary to make effective the Lien
intended to be created by the Pledge Agreement, and reciting the details
of such action or referring to prior Opinions of Counsel in which such
details are given, and stating that all statements have been executed and
filed that are necessary fully to preserve and protect the rights of the
Holders and the Trustee hereunder and under the Pledge Agreement, or
stating that, in the opinion of such counsel, no such action is necessary
to make such lien effective; and
(ii) by May 15 in each year beginning with the year 2005, an Opinion
of Counsel, dated as of such date, either stating that, in the opinion of
such Counsel, such action has been taken with respect to the recording,
registering, filing, re-recording, re-registering and re-filing of this
Indenture, the Pledge Agreement and of all supplemental indentures,
financing statements, continuation statements or other instruments of
further assurances as is necessary to maintain the Lien of the Pledge
Agreement and reciting the details of such action or referring to prior
Opinions of Counsel in which such details are given, and stating that all
financing statements and continuation statements have been executed and
filed that are necessary fully to preserve and protect the rights of the
Holders and the Trustee hereunder and under the Pledge Agreement, or
stating that, in the opinion of such counsel, no such action is necessary
to maintain such Lien.
SECTION 1203. CUSTODY OF TRUST ESTATE.
The Trustee shall hold in its possession the Trust Bond constituting
the Trust Estate, except as from time to time any documents or instruments may
be required for recordation or re-recordation or other actions, suits or
proceedings relating to the Trust Estate, or for the purpose of enforcing or
realizing upon any right or value thereby represented. The Trustee may, from
time to time, in its sole discretion, for the purpose of convenient location of
the Trust Bond, appoint one or more agents to hold physical custody, for the
account of the Trustee, of the Trust Bond.
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SECTION 1204. SUITS TO PROTECT THE TRUST ESTATE.
The Trustee shall have power to institute and to maintain such suits
and proceedings as it may deem expedient to prevent any impairment of the Trust
Estate by any acts which may be unlawful or in violation of the Pledge Agreement
or this Indenture, and such suits and proceedings as the Trustee may deem
expedient to preserve or protect its interests and the interests of the Holders
in the Trust Estate and in the principal, interest, issues, profits, rents,
revenues and other income arising therefrom, including power to institute and
maintain suits or proceedings to restrain the enforcement of or compliance with
any legislative or other governmental enactment, rule or order that may be
unconstitutional or otherwise invalid, if the enforcement of, or compliance
with, such enactment, rule or order would impair the security hereunder or be
prejudicial to the interests of the Holders or the Trustee. The Trustee shall
also have authority to exercise any rights or powers conferred on the Trustee,
as the holder of the Trust Bond, under the Deed of Trust.
SECTION 1205. RELEASE UPON TERMINATION OF THE COMPANY'S OBLIGATIONS.
(a) In the event that the Company delivers a Company Order and an
Officers' Certificate certifying that all Indenture Obligations have been
satisfied and discharged by complying with the provisions of Article Four,
the Trustee shall deliver to the Deed Trustee a notice stating that the
Trustee, on behalf of the Holders, disclaims and gives up any and all
rights it has in or to the Trust Bond and the Deed of Trust Collateral,
and any rights it has under the Collateral Documents, and, upon and after
the receipt by the Deed Trustee of such notice, the Trustee shall return
the Trust Bond to the Deed Trustee for cancellation, and the Deed Trustee
shall not be deemed to hold any Deed of Trust Collateral on behalf of the
Trustee for the benefit of the Holders.
(b) Any release of any portion of the Trust Bond or the Deed of
Trust Collateral made strictly in compliance with the provisions of this
Section 1205 shall not be deemed to impair the Liens on the Trust Bond or
the Deed of Trust Collateral created by the Collateral Documents in
contravention of the provisions of this Indenture.
* * *
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This Indenture may be signed in any number of counterparts with the
same effect as if the signatures to each counterpart were upon a single
instrument, and all such counterparts together shall be deemed an original of
this Indenture.
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed and attested, all as of the day and year first above written.
XXXXXX WIRELESS INC.
By: /s/ M. Xxxxxxxx Xxxx
------------------------------
M. Xxxxxxxx Xxxx
Vice-President, Treasurer
By: /s/ Xxxx X. Xxxx
------------------------------
Xxxx X. Xxxx
Vice-President
Attest: /s/ Xxxxx Xxxxxx
---------------------------
JPMORGAN CHASE BANK, N.A.
By: /s/ Xxxx Xxxxxxx
------------------------------
Xxxx Xxxxxxx
Trust Officer
Attest: /s/ X. X'Xxxxx
---------------------------
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EXHIBIT A
PROVISIONS FOR INTER-COMPANY DEEPLY SUBORDINATED DEBT
1.1 Terms defined in the Indenture in respect of the Floating Rate
Senior (Secured) Notes due 2010 dated as of November 30, 2004 (the "Indenture")
between Xxxxxx Wireless Inc. (the "Company") and JPMorgan Chase Bank, N.A., as
trustee (the "Trustee") and used herein have the meanings attributed to such
terms in the Indenture. As used herein, the term "Relevant Obligor" means the
obligor creating, incurring, assuming or suffering to exist any Inter-Company
Deeply Subordinated Debt. The term "Obligor" means any of the Company and any
Restricted Subsidiary.
2.1 DEFINITION OF SENIOR INDEBTEDNESS. "Senior Indebtedness" means
at any date all indebtedness under the Securities and the Indenture (including,
without limitation, all amounts payable pursuant to Section 607 of the
Indenture, principal, interest, Additional Amounts, premium, fees, penalties,
indemnities and "post-petition interest" in bankruptcy).
2.2 AGREEMENT TO SUBORDINATE. The indebtedness evidenced by this
agreement shall constitute Inter-Company Deeply Subordinated Debt and the
Relevant Obligor and the relevant creditor who is owed such indebtedness (the
"Relevant Creditor") agree that such indebtedness (including, without
limitation, principal, interest, premium, fees, penalties, indemnities and
"post-petition interest" in bankruptcy) is subordinate and junior in right of
payment, to the extent and in the manner provided in this Section 2, to the
prior payment in full of all Senior Indebtedness.
The Relevant Obligor agrees to hold the benefit of these provisions
as incorporated in this agreement or this instrument as trustee for and on
behalf of the Trustee and the Holders of the Securities and the Relevant Obligor
shall be a party to the agreement or instrument in such capacity and shall give
the Relevant Creditor (and the Relevant Obligor on its own behalf) one dollar as
valuable consideration in respect of the agreements given to it in such capacity
as trustee.
The provisions of this Section 2 are for the benefit of the holders
from time to time of Senior Indebtedness, and such holders are hereby made
obligees hereunder to the same extent as if their names were written herein as
such, and they (collectively or singly) may proceed to enforce such provisions.
2.3 LIQUIDATION; DISSOLUTION; BANKRUPTCY. (a) Upon any distribution
of assets of the Relevant Obligor to creditors or upon a liquidation or
dissolution or winding-up of the Relevant Obligor or in a bankruptcy,
arrangement, liquidation, reorganization, insolvency, receivership or similar
case or proceeding relating to the Relevant Obligor or its property or other
marshalling of assets of the Relevant Obligor:
(i) the holders of Senior Indebtedness shall be entitled to receive
payment in full of all Senior Indebtedness before the Relevant Creditor
shall be entitled to receive any payment of principal of or interest on,
or any other amount owing in respect of, the indebtedness evidenced by
this agreement or instrument;
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(ii) until payment in full of all Senior Indebtedness, any
distribution of assets of any kind or character to which the Relevant
Creditor would be entitled but for this Section 2 shall be paid by the
Relevant Obligor or by any receiver, trustee in bankruptcy, liquidating
trustee, agents or other Persons making such payment or distribution to,
or if received by the Relevant Creditor shall be held for the benefit of
and shall be forthwith paid or delivered to, the holders of Senior
Indebtedness, as their interests may appear; and
(iii) in the event that, notwithstanding the foregoing, any payment
or distribution of assets of the Relevant Obligor of any kind or
character, whether in cash, property or securities, shall be received by
the Relevant Creditor before all Senior Indebtedness is paid in full, such
payment or distribution shall be held in trust for the benefit of and
shall be paid over to the holders of Senior Indebtedness, as their
interests may appear, for application to the payment of all Senior
Indebtedness until all Senior Indebtedness shall have been paid in full
after giving effect to any concurrent payment or distribution to the
holders of Senior Indebtedness in respect of such Senior Indebtedness.
For purposes hereof, the words "cash, property or securities" shall
be deemed not to include securities of the Relevant Obligor or any other Person
provided for by a plan of reorganization or readjustment, the payment of which
is subordinated at least to the extent provided herein with respect to the
indebtedness evidenced by this agreement or instrument, to the payment of all
Senior Indebtedness which may at the time be outstanding; provided, however,
that (i) all Senior Indebtedness is assumed by the new Person, if any, resulting
from any such reorganization or readjustment, and (ii) the rights of the holders
of the Senior Indebtedness are not, without the consent of such holders, altered
by such reorganization or readjustment.
(b) If the Relevant Creditor does not file proper claims or proofs
of claim in the form required in a bankruptcy, reorganization, insolvency,
receivership or similar proceeding relating to the Relevant Obligor or its
property prior to 45 days before the expiration of the time to file such claims,
then (i) upon the request of the Trustee, the Relevant Creditor shall file such
claims and proofs of claim in respect of the indebtedness evidenced by this
agreement or instrument and execute and deliver such powers of attorney,
assignments and proofs of claim as may be directed by the Trustee to enable it
to enforce any and all claims upon or in respect of the indebtedness evidenced
by this agreement or instrument and to collect and receive any and all payments
or distributions which may be payable or deliverable at any time upon or in
respect of the indebtedness evidenced by this agreement or instrument, and (ii)
whether or not the Trustee shall take the action described in clause (i) above,
the Trustee shall nevertheless be deemed to have such powers of attorney as may
be necessary to file appropriate claims and proofs of claim and otherwise
exercise the powers described above.
For purpose of this Section 2, "payment in full", with respect to
Senior Indebtedness, means the receipt on an irrevocable basis of cash in an
amount equal to the unpaid principal amount of the Senior Indebtedness and
premium, if any, and interest thereon to the date of such payment, together with
all other amounts owing with respect to such Senior Indebtedness.
2.4 SENIOR INDEBTEDNESS. (a) The Relevant Obligor shall not pay any
principal, interest or premium on the indebtedness evidenced by this agreement
or instrument, acquire the indebtedness evidenced by this agreement or
instrument for cash or property other than
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capital stock of the Relevant Obligor, or make any loans, advances or extensions
of credit to the Relevant Creditor with respect to the indebtedness evidenced by
this agreement or instrument, or pay or acquire any obligation or liability upon
which the Relevant Creditor is the obligor, and the Relevant Creditor shall not
demand, accept or receive any payment of any principal, interest or premium on
the indebtedness evidenced by this agreement or instrument or any such cash,
property other than capital stock of the Relevant Obligor, loans, advances or
extensions of credit at any time when:
(i) a default in the payment of any Senior Indebtedness has
occurred, whether at maturity or at a date fixed for prepayment or by
declaration of an acceleration or otherwise, and such default either (A)
shall be continuing or (B) shall not have been cured and shall have been
waived by the holders of such Senior Indebtedness on the express condition
that payments on and acquisitions of the indebtedness evidenced by this
agreement or instrument by the Relevant Obligor be prohibited pursuant to
this clause (i); or
(ii) any default (other than as described in clause (i) of this
Section 2.4(a)) under any agreement or instrument evidencing Senior
Indebtedness shall have occurred and either (x) shall be continuing or (y)
shall not have been cured and shall have been waived by the holders of
such Senior Indebtedness on the express condition that payments on or
acquisition of the indebtedness evidenced by this agreement or instrument
be prohibited pursuant to this clause (ii); or
(iii) such payment of principal, interest or premium on the
indebtedness evidenced by this agreement or instrument, or acquisition of
the indebtedness evidenced by this agreement or instrument for cash or
property other than capital stock of the Relevant Obligor would cause a
Default or Event of Default under the Indenture.
(b) If at any time when a payment on the indebtedness evidenced by
this agreement or instrument is due, the Relevant Obligor would (but for this
subsection (b)) be prohibited by Section 2.4(a) from making such payment, the
Relevant Obligor shall nonetheless be obligated to make such payment if all of
the holders of Senior Indebtedness with respect to which any default shall have
occurred shall have consented thereto in writing.
(c) If, notwithstanding the foregoing, any payment of any kind or
character, whether in cash, property or otherwise, shall be received by the
Relevant Creditor before all Senior Indebtedness is paid in full, such payment
shall be held in trust for the benefit of and shall be paid over to the holders
of Senior Indebtedness, as their interests may appear, for application to the
payment of all Senior Indebtedness until all Senior Indebtedness shall have been
paid in full after giving effect to any concurrent payment to the holders of
Senior Indebtedness in respect of such Senior Indebtedness.
2.5 SUBROGATION. After all Senior Indebtedness is paid in full and
until the indebtedness evidenced by this agreement or instrument is paid in
full, the Relevant Creditor shall be subrogated to the rights of the holders of
Senior Indebtedness. For purposes of this Section 2.5, a distribution made under
this Section 2 to holders of Senior Indebtedness which otherwise would have been
made to the Relevant Creditor, or a payment made by the Relevant Creditor to
holders
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of Senior Indebtedness in respect of a turnover obligation under this Section 2,
is not, as between the Relevant Obligor and such holder, a payment by the
Relevant Obligor on Senior Indebtedness.
2.6 RELATIVE RIGHTS. This Section 2 defines the relative rights of
the Relevant Creditor and the holders of Senior Indebtedness. Nothing in this
Section 2 shall:
(a) impair, as between the Relevant Obligor and the Relevant
Creditor, the obligation of the Relevant Obligor, which is absolute and
unconditional, to pay the principal of and interest on the indebtedness
evidenced by this agreement or instrument in accordance with its terms; or
(b) affect the relative rights of the Relevant Creditor and
creditors of the Relevant Obligor other than the holders of Senior
Indebtedness; or
(c) affect the relative rights of the holders of Senior Indebtedness
among themselves; or
(d) prevent the Relevant Creditor from exercising its available
remedies upon a default, subject to Section 2.4 hereof and the rights of
the holders of Senior Indebtedness to receive cash, property or other
assets otherwise payable to the Relevant Creditor.
2.7 SUBORDINATION MAY NOT BE IMPAIRED. (a) No right of any holder of
Senior Indebtedness to enforce the subordination of indebtedness evidenced by
this agreement or instrument shall in any way be prejudiced or impaired by any
act or failure to act by the Relevant Obligor or by any act or failure to act in
good faith, by any such holder or the Trustee, or by any non-compliance by the
Relevant Obligor with the terms, provisions or covenants herein, regardless of
any knowledge thereof which any such holder or the Trustee may have or be
otherwise charged with. Neither the subordination of the indebtedness
represented by this agreement or instrument as herein provided nor the rights of
the holders of Senior Indebtedness with respect hereto shall be affected by any
extension, renewal or modification of the terms, or the granting of any security
in respect of, any Senior Indebtedness or any exercise or non-exercise of any
right, power or remedy with respect thereto.
(b) The Relevant Creditor agrees that all indebtedness evidenced by
this agreement or instrument will be unsecured by any Lien upon or with respect
to any property of the Relevant Obligor, and that the Relevant Creditor will not
permit to subsist any Liens upon its claim in respect of or upon the proceeds of
the indebtedness represented by this agreement or instrument.
(c) The Relevant Creditor agrees not to exercise any offset or
counterclaim or similar right in respect of the indebtedness evidenced by this
agreement or instrument except to the extent payment of such indebtedness is
permitted and will not assign or otherwise dispose of this agreement or
instrument or the indebtedness which it evidences unless the assignee or
acquiror, as the case may be, agrees to be bound by the terms of this Section 2.
2.8 RELEVANT CREDITOR ENTITLED TO RELY. Upon any payment or
distribution pursuant to this Section 2, the Relevant Creditor shall be entitled
to rely (i) upon any order or decree of a court of competent jurisdiction in
which any proceedings of the nature referred to in
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Section 2.3 are pending, (ii) upon a certificate of the liquidating trustee or
agent or other person in such proceedings making such payment or distribution to
the Relevant Creditor or its representative, if any, or (iii) upon a certificate
of the Trustee or any representative (if any) of the holders of Senior
Indebtedness for the purpose of ascertaining the persons entitled to participate
in such payment or distribution, the holders of the Senior Indebtedness and
other indebtedness of the Relevant Obligor, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Section 2.
3. MISCELLANEOUS. (a) The provisions contained herein may not be
amended or modified in any respect, nor may any of the terms or provisions
hereof be waived, except by an instrument signed by the Relevant Obligor, the
Relevant Creditor and the Trustee.
(b) The provisions contained herein shall be binding upon each of
the parties to this agreement or instrument and their respective successors and
assigns and shall inure to the benefit of the Trustee and each and every holder
of Senior Indebtedness and their respective successors and assigns.
(c) The provisions contained herein shall be governed by and
construed in accordance with the laws of the State of New York.
(d) The Relevant Creditor and the Relevant Obligor each hereby
irrevocably agrees that any suits, actions or proceedings arising out of or in
connection with the provisions contained herein may be brought in any state or
federal court sitting in The City of New York or any court in the Province of
Ontario and submits and attorns to the non-exclusive jurisdiction of each such
court.
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EXHIBIT B
PROVISIONS FOR INTER-COMPANY SUBORDINATED DEBT
1. Terms defined in the Indenture in respect of the Floating Rate
Senior (Secured) Notes due 2010 dated as of November 30, 2004 (the "Indenture")
between Xxxxxx Wireless Inc. (the "Company") and JPMorgan Chase Bank, N.A., as
trustee (the "Trustee") and used herein have the meanings attributed to such
terms in the Indenture. As used herein, the term "Relevant Obligor" means the
obligor creating, incurring, assuming or suffering to exist any Inter-Company
Subordinated Debt. The term "Obligor" means any of the Company and any
Restricted Subsidiary.
2. The indebtedness evidenced by this agreement shall constitute
Inter-Company Subordinated Debt and the Relevant Obligor and the relevant
creditor who is owed such indebtedness (the "Relevant Creditor") agree that the
payment of the principal of (and premium, if any), and interest on such
indebtedness is expressly subordinated, to the extent and in the manner
hereinafter set forth, in right of payment to the prior payment in full of all
amounts from time to time owing to the Holders of the Securities (which amounts
are hereinafter called "Senior Secured Debt"). The Relevant Obligor agrees to
hold the benefit of these provisions as incorporated in this agreement or this
instrument as trustee for and on behalf of the Trustee and the Holders of the
Securities and the Relevant Obligor shall be a party to the agreement or
instrument in such capacity and shall give the Relevant Creditor (and the
Relevant Obligor on its own behalf) one dollar as valuable consideration in
respect of the agreements given to it in such capacity as trustee.
3. For purposes hereof, the words "cash, property or securities"
shall not be deemed to include securities of the Relevant Obligor or any other
Person provided for by a plan of reorganization or readjustment, the payment of
which is subordinated, at least to the extent provided herein with respect to
the indebtedness owing to the Relevant Creditor, to the payment of all Senior
Secured Debt which may at the time be outstanding; provided, however, that (i)
all Senior Secured Debt is assumed by the new Person, if any, resulting from any
such reorganization or readjustment, and (ii) the rights of the Holders of the
Securities are not, without the consent of the Holders of the Securities,
altered by such reorganization or readjustment.
4. Upon any distribution of assets of the Relevant Obligor or upon
any dissolution, winding up, arrangement, liquidation, reorganization,
bankruptcy, insolvency or receivership or similar proceeding relating to the
Relevant Obligor or its property or other marshalling of assets of the Relevant
Obligor:
(a) the Holders of the Securities shall first be entitled to receive
payment in full of all Senior Secured Debt including, without limitation,
the principal thereof and premium, if any, and the interest due thereon,
before the Relevant Creditor is entitled to receive any payment of the
principal of and premium, if any, and interest on any Indebtedness owing
to it; and
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(b) any payment or distribution of assets of the Relevant Obligor of
any kind or character, whether in cash, property or securities, to which
the Relevant Creditor would be entitled except for the provisions hereof
shall be paid by the liquidating trustee or agent or other person making
such payment or distribution, whether a trustee in bankruptcy, a receiver
or liquidating trustee or otherwise, directly to the Holders of the
Securities to the extent necessary to pay in full all Senior Secured Debt
remaining unpaid after giving effect to any concurrent payment or
distribution to the Holders of the Securities in respect of such Senior
Secured Debt; and
(c) in the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Relevant Obligor of any kind or character,
whether in cash, property or securities, shall be received by the Relevant
Creditor before all Senior Secured Debt is paid in full, such payment or
distribution shall be held in trust for the benefit of and shall be paid
over to the Holders of the Securities for application to the payment of
all Senior Secured Debt remaining unpaid until all Senior Secured Debt
shall have been paid in full after giving effect to any concurrent payment
or distribution to the Holders of the Securities in respect of such Senior
Secured Debt.
5. Upon any payment or distribution of assets of the Relevant
Obligor referred to in this agreement or instrument, the Relevant Creditor shall
be entitled to rely (i) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in Section 4 are
pending, (ii) upon a certificate of the liquidating trustee or agent or other
person in such proceedings making such payment or distribution to the Relevant
Creditor or its representative, if any, or (iii) upon a certificate of the
Trustee or any representative (if any) of the Holders of the Securities for the
purpose of ascertaining the identity of the Holders of the Securities and the
Trustee, the holders of other Senior Debt of the Relevant Obligor, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to the subordination contemplated by
this agreement or instrument.
6. Nothing contained herein is intended to or shall impair, as
between the Relevant Obligor and its creditors (other than the Holders of the
Securities as regards the Senior Secured Debt and the Relevant Creditor) the
obligation of the Relevant Obligor, which is unconditional and absolute, to pay
to the Relevant Creditor the principal of and premium, if any, and interest on
the Debt owing to the Relevant Creditor as and when the same shall become due
and payable in accordance with its terms or affect the relative rights of the
Relevant Creditor and creditors of the Relevant Obligor other than the Holders
of the Securities as regards the Senior Secured Debt, nor shall anything herein
or therein prevent the Relevant Creditor from exercising all remedies otherwise
permitted by applicable law upon default with respect to the Debt owing to the
Relevant Creditor subject to the rights, if any, herein of the Holders of the
Securities as regards the Senior Secured Debt in respect of cash, property or
securities of the Relevant Obligor received upon the exercise of any such
remedy.
7. Upon the maturity of any Senior Secured Debt by lapse of time,
acceleration or otherwise, then, except as hereinafter provided, all principal
of and premium, if any, and interest on all such matured Senior Secured Debt
shall first be paid in full or shall have first been duly provided for before
any payment on account of principal of or premium, if any, or interest owing to
the Relevant Creditor is made.
101
8. Upon the happening of an Event of Default with respect to any
Senior Secured Debt permitting the Holders of the Securities (or any of them) to
accelerate the maturity of the Senior Secured Debt then, unless and until such
Event of Default shall have been cured or waived or shall have ceased to exist,
no payment (including, without limitation, by purchase of the Debt owing to the
Relevant Creditor or otherwise) shall be made by the Relevant Obligor with
respect to the principal of or premium, if any, or interest on the Indebtedness
owing to the Relevant Creditor. In the event that, notwithstanding the
foregoing, the Relevant Obligor shall make any payment of principal of or
premium, if any, or interest on the Debt owing to the Relevant Creditor after
the happening of such an Event of Default, then, except as hereinafter otherwise
provided, unless and until such Event of Default shall have been cured or waived
or have ceased to exist, such payment shall be held in trust for the benefit of
and, if and when such Senior Secured Debt shall have become due and payable,
shall be paid over to the Holders of the Securities and applied to the payment
of all Senior Secured Debt remaining unpaid until all such Senior Secured Debt
shall have been paid in full.
9. The fact that any payment to the Relevant Creditor is prohibited
hereby shall not prevent the failure to make such payment from being an event of
default as regards such Relevant Creditor.
10. Nothing contained herein or in any agreement, indenture or other
instrument in respect of the Debt owing to the Relevant Creditor shall, subject
to Section 7:
(a) prevent the Relevant Obligor at any time from making payments at
any time of the principal of and premium, if any, or interest to the
Relevant Creditor on account of Inter-Company Subordinated Debt unless:
(i) Such payment is proposed to be made on or after the date
upon which any Event of Default or any of the events described in
Section 4 has occurred in circumstances where notice of such
proposed payment shall have been given by the Relevant Creditor or
the Company to the Trustee prior to the happening of such Event of
Default or other event; or
(ii) such payment would otherwise occur while any proceedings
in respect of the dissolution, arrangement, winding up, liquidation,
reorganization, bankruptcy, insolvency or receivership of the
Relevant Obligor are pending; or
(b) prevent the Relevant Obligor from applying to the retirement of
any Inter-Company Subordinated Debt the proceeds of a substantially
concurrent issue of other Inter-Company Subordinated Debt or of shares of
any class of the Relevant Obligor; or
(c) except in circumstances to which clauses (a)(i) or (ii) are
applicable, require the Relevant Creditor to pay to the Trustee or the
Holders of the Securities, or to repay to the Relevant Obligor, any amount
so paid.
11. Unless and until written notice shall be given to the Relevant
Creditor by or on behalf of any Holder or any representative or representatives
of any Holder, including the Trustee (it being understood that nothing herein
shall create any obligation on the part of the Trustee to give any such notice),
notifying the Relevant Creditor of the happening of an Event of
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Default with respect to the Senior Secured Debt or of the existence of any other
facts which would result in the making of any payment with respect to the Debt
owing to the Relevant Creditor in contravention of the provisions hereof, the
Relevant Creditor shall be entitled to assume that no such Event of Default has
occurred or that no such facts exist; and, with respect to any monies which may
at any time be received by the Relevant Creditor in trust pursuant to any
provisions hereof prior to the receipt by it of such written notice, nothing
herein shall prevent the Relevant Creditor from applying such monies to the
purposes for which the same were so received, notwithstanding the occurrence or
continuance of an Event of Default with respect to, or the existence of such
facts with respect to, the Senior Secured Debt unless the Relevant Creditor has
actual knowledge to the contrary.
12. (a) No right of the Trustee or any Holder as regards the Senior
Secured Debt to enforce subordination as provided herein shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of
the Relevant Obligor or by any act or failure to act, in good faith, by any such
Holder or the Trustee, or by any non-compliance by the Relevant Obligor with the
terms, provisions or covenants herein, regardless of any knowledge thereof which
any Holder or the Trustee may have or be otherwise charged with.
(b) The rights of the Trustee and the Holders of Securities with
respect hereto shall not be affected by any extension, renewal or modification
of the terms, or the granting of any security in respect of, any Senior
Indebtedness or any exercise or non-exercise of any right, power or remedy with
respect thereto.
(c) The Relevant Creditor agrees not to exercise any offset or
counterclaim or similar right in respect of the Inter-Company Subordinated Debt
except to the extent payment of such Inter-Company Subordinated Debt is
permitted and will not assign or otherwise dispose of any Inter-Company
Subordinated Debt unless the assignee or acquiror, as the case may be, agrees to
be bound by the terms hereof.
13. The provisions contained herein
(a) may not be amended or modified in any respect, nor may any of
the terms or provisions hereof be waived, except by an instrument signed
by the Relevant Obligor, the Relevant Creditor and the Trustee,
(b) shall be binding upon each of the parties hereto and their
respective successors and assigns and shall enure to the benefit of the
Trustee, each and every Holder of the Securities and their respective
successors and assigns,
(c) shall be governed by and construed in accordance with the laws
of the State of New York.
The Relevant Creditor and the Relevant Obligor each irrevocably
agree that any suits, actions or proceedings arising out of or in connection
with the provisions contained herein may be brought in any state or federal
court sitting in The City of New York or any court in the Province of Ontario
and submits and attorns to the non-exclusive jurisdiction of each such court.
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EXHIBIT C
FORM OF PLEDGE AGREEMENT
THIS PLEDGE AGREEMENT made as of the 30th day of November, 2004.
BETWEEN:
XXXXXX WIRELESS INC., a corporation organized under the
Canada Business Corporations Act
(the "Company")
and
JPMORGAN CHASE BANK, N.A., a national banking
association organized and operating under the laws of
the United States, as trustee
(the "Trustee")
In consideration of the premises herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, it is hereby covenanted, agreed and acknowledged by and between
the parties hereto as follows:
1. In this Pledge Agreement unless something in the subject matter or context
is inconsistent therewith, capitalized terms used but not defined herein
have the respective meanings attributed to them in the Indenture (as
defined below) as in effect on the date hereof and:
(i) "Indenture" means that certain indenture, of even date
herewith, between the Company, as issuer, and the Trustee, as
trustee, providing for the issuance of the Securities (as
defined below), as the same may be amended, supplemented,
restated or replaced from time to time; and
(ii) "Securities" means the U.S.$550,000,000 aggregate principal
amount of Floating Rate Senior (Secured) Notes due 2010 of the
Company and the Exchange Securities issued under the
Indenture.
2. The Company hereby deposits with and assigns and pledges to the Trustee
the Trust Bond to be held by the Trustee pursuant to the provisions
hereof, as trustee for and on behalf of each of the holders of Securities
under the Indenture, as general and continuing collateral security for the
due repayment and satisfaction of all present and future indebtedness,
liabilities and obligations of any kind whatsoever under, in connection
with or relating to the Indenture, including, without limitation, the
Securities and any ultimate unpaid balance thereof, and to secure the due
performance of all of the other present and future obligations of the
Company to the Trustee (including obligations under section 607 of the
Indenture) and the holders of the Securities under the Indenture and the
Securities (collectively, the "Obligations").
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3. If, at any time, an Event of Default shall have occurred and be
continuing, the Trustee may, at any time, realize upon the Trust Bond, in
the manner and to the extent permitted by law, by sale, transfer or
delivery, and may exercise and enforce all rights and remedies of a holder
of the Trust Bond (including, without limitation, making demand thereunder
as if the Trustee was the absolute owner thereof), without notice to,
consent of or control by the Company, and, except to the extent required
by law, any such right or remedy may be exercised separately or in
combination with any other right or remedy and shall be in addition to and
not in substitution for any other rights of the Trustee however created;
provided that the Trustee shall not be bound to exercise any such right or
remedy and shall not be liable for any loss which may be occasioned by any
failure to do so; and provided further that any such sale, transfer or
delivery shall be on terms whereby the Person acquiring the Trust Bond
shall hold the Trust Bond subject to the provisions hereof.
4. If any moneys received by the Trustee as payment under the Trust Bond or
by way of realization of the security hereby constituted are in a currency
(the "Realization Currency") which is different from the currency of any
of the Obligations secured hereby (the "Agreed Currency"), then, in such
event, the Trustee shall be entitled to convert all or a portion of such
moneys as are in the Realization Currency into the Agreed Currency at the
rate of exchange quoted by The Toronto-Dominion Bank at its central
foreign exchange desk in its head office in Toronto at 12:00 noon (Toronto
time) on the date of receipt and to apply the new amount of moneys
received on such conversion on account of the Obligations hereby secured,
and, in any such case, the amount of the Obligations hereby secured will
be reduced by the amount of the Agreed Currency so applied, and, for
greater certainty, the Company shall remain fully liable for the balance
of such Obligations.
5. The proceeds of the Trust Bond, including, without limitation, any
distributions in respect thereof by the Trustee, shall be applied by the
Trustee on account of such part of the Obligations as it chooses without
prejudice to the Trustee's claim upon the Company for any deficiency.
6. The Trustee may, from time to time, grant extensions of time or other
indulgences, take and give up securities, accept compositions, grant
releases and discharges and otherwise deal with the Company and other
parties, sureties or securities as the Trustee may see fit in accordance
with the terms of the Indenture and the Securities without prejudice to,
or in any way limiting or lessening the liability of the Company under, or
the Trustee's right in respect of, the Trust Bond.
7. Upon full, final and irrevocable satisfaction of the Obligations, the
Trust Bond, upon Company Order, shall be delivered to the Deed Trustee for
cancellation.
8. The Trust Bond shall not operate by way of merger of any of the
Obligations, and no judgment recovered by or on behalf of the Trustee
shall operate by way of merger of, or in any way affect, the security of
the Trust Bond which is in addition to and not in substitution for any
other security now or hereafter held by the Trustee.
9. Notwithstanding the provisions of any other section of this Pledge
Agreement or any provisions of the Indenture, the Deed of Trust or any
security provided for thereunder,
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under no circumstances, other than if an Event of Default shall have
occurred and be continuing, may the Trustee collect or claim a right to
collect any amounts on or in respect of the Trust Bond or pursuant to any
provisions of the Deed of Trust or the security provided for thereunder or
under the Indenture. If any such amount is, for any reason, received by
the Trustee, the Trustee shall pay over the amount to the Company or to
the Restricted Subsidiary providing security in respect of the Obligations
(the "Payee") unless (i) an Event of Default shall have occurred and be
continuing or (ii) a Default shall have occurred and be continuing, in
which case the Trustee shall retain such amount in trust for the benefit
of the Payee until (a) the Default has been cured or (b) any applicable
grace period in respect of such Default has expired, at which time the
Trustee shall pay over such amount to the Payee unless an Event of Default
shall have occurred and be continuing. Any such amount received by the
Trustee which the Trustee is required to pay to the Payee pursuant to this
Section 9 shall, in no circumstances, be deemed to be a payment on account
of the Obligations.
10. Notwithstanding that the Trust Bond is expressed to be payable on demand,
the Trustee shall have no right to, and shall not, demand payment unless
or until an Event of Default shall have occurred and be continuing.
Notwithstanding any provisions of the Trust Bond, payment to the Trustee
or the holders of the Securities of interest for any period in respect of
the Obligations shall be deemed to be payment in satisfaction of the
interest payment for the same period under the Trust Bond. No payment of
principal on account of any of the Obligations shall be treated as a
payment on account of any of the principal amount of the Trust Bond. The
Trustee, in realizing on the Trust Bond or the security constituted
thereby, shall not claim under the Trust Bond any greater amount in the
aggregate for principal and interest than the aggregate of the Obligations
then owing by the Company.
11. The Company shall not amend, modify or supplement, or waive or consent to
departures from, the provisions of the Trust Bond or any other pledge
agreement relating to any other senior secured bond issued pursuant to the
Deed of Trust except as provided in the Deed of Trust.
12. (a) Upon the deposit of the Trust Bond pursuant to section 2 hereof, the
Trust Bond shall have a legend conspicuously noted thereon substantially
in the form of the legend below:
"This Bond is subject to the terms and conditions of a pledge
agreement, of even date herewith, between Xxxxxx Wireless Inc. and
JPMorgan Chase Bank, N.A., as trustee, pursuant to an indenture, of
even date herewith, pursuant to which Xxxxxx Wireless Inc. issued
U.S.$550,000,000 Floating Rate Senior (Secured) Notes due 2010."
(b) Any bond issued under the Deed of Trust in substitution for, or on
replacement of, the Trust Bond shall have conspicuously noted thereon the
legend referred to in section 12(a) hereof.
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13. The provisions hereof shall be binding upon and shall inure to the benefit
of the Company, the Trustee and the holders of the Securities under the
Indenture and their respective successors and assigns.
14. Nothing contained herein, in the Trust Bond or in the Deed of Trust shall
amend, modify, vary or otherwise change the rights of the Trustee or any
of the holders of Securities or the obligations of the Company under the
Indenture or in respect of the Securities or shall limit the rights of the
Trustee or any of the holders of the Securities under, or in respect of,
the Obligations.
15. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the Province of Ontario and the laws of Canada
applicable therein.
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
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IN WITNESS WHEREOF, the parties hereto have duly executed this instrument as of
the day and year first above written.
XXXXXX WIRELESS INC.
By: _____________________________________
M. Xxxxxxxx Xxxx
Vice-President, Treasurer
By: _____________________________________
Xxxx X. Xxxx
Vice-President
JPMORGAN CHASE BANK, N.A., as trustee
By: _____________________________________
Name:
Title:
108
EXHIBIT D
FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH TRANSFERS
FROM RESTRICTED GLOBAL SECURITY
TO REGULATION S GLOBAL SECURITY
[date]
JPMorgan Chase Bank, N.A.
4 New York Plaza, 15th Floor
New York, New York 10004
Re: Xxxxxx Wireless Inc.
(the "Company") Floating Rate Senior (Secured) Notes
due 2010 (the "Securities")
Ladies and Gentlemen:
This letter relates to $_______ principal amount of Securities which
are evidenced by the Restricted Global Security (CUSIP No. 00000XXX0) and held
with the Depositary in the name of Cede & Co. and held for the benefit of
__________ (the beneficial owner) (the "Transferor"). The Transferor has
requested a transfer of such beneficial interest in the Securities to a Person
who will take delivery thereof in the form of an equal principal amount of
Securities evidenced by the Regulation S Global Security (CUSIP No. X0000XXX0).
In connection with such request and in respect of such Securities,
we hereby certify that such transfer has been effected in compliance with the
transfer restrictions applicable to the Global Securities and pursuant to and in
accordance with Rule 903, Rule 904 or Rule 144 under the United States
Securities Act of 1933, as amended (the "Securities Act"), and accordingly we
hereby further certify that:
(A) if the transfer has been effected pursuant to Rule 903 or Rule
904:
(1) the offer of the Securities was not made to a person in the
United States;
(2) either (a) at the time the buy order was originated, the
transferee was outside the United States or we and any person acting
on our behalf reasonably believed that the transferee was outside
the United States or (b) the transaction was executed in, on or
through the facilities of a designated off-shore securities market
and neither we nor any person acting on our behalf knows that the
transaction has been pre-arranged with a buyer in the United States;
109
(3) no directed selling efforts have been made in the United States
in contravention of the requirements of Rule 903(b) or Rule 904(b)
of Regulation S, as applicable; and
(4) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act.
(B) If the transfer has been effected pursuant to Rule 144, the
Securities have been transferred in a transaction permitted by Rule 144 under
the Securities Act.
Upon giving effect to this request to exchange a beneficial interest
in such Restricted Global Security for a beneficial interest in a Regulation S
Global Security, the resulting beneficial interest shall be subject to the
restrictions on transfer applicable to Regulation S Global Security pursuant to
the Indenture and the Securities.
You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby. Terms used in this certificate have the
meanings set forth in Regulation S.
Very truly yours,
[Name of Transferor]
By:_______________________________
Authorized Signature
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EXHIBIT E
FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH
TRANSFERS FROM REGULATION S GLOBAL SECURITY TO
RESTRICTED GLOBAL SECURITY
JPMorgan Chase Bank, N.A.
4 New York Plaza, 15th Floor
New York, New York 10004
Re: Xxxxxx Wireless Inc.
(the "Company") Floating Rate Senior (Secured) Notes
due 2010( the "Securities")
Ladies and Gentlemen:
This letter relates to $_______ principal amount of the Securities
which are evidenced by the Regulation S Global Security (CUSIP No. X0000XXX0)
and held with the Depositary in the name of Cede & Co. and held for the benefit
of __________ (the beneficial owner) (the "Transferor"). The Transferor has
requested a transfer of such beneficial interest in the Securities to a Person
who will take delivery thereof in the form of an equal principal amount of
Securities evidenced by the Restricted Global Security (CUSIP No. 00000XXX0), to
be held with the Depositary.
In connection with such request and in respect of such Securities,
the Transferor hereby certifies that such transfer is being effected pursuant to
and in accordance with Rule 144A under the United States Securities Act of 1933,
as amended (the "Securities Act"), and, accordingly, the Transferor hereby
further certifies that the Securities are being transferred to a Person that the
Transferor reasonably believes is purchasing the Securities for its own account,
or for one or more accounts with respect to which such Person exercises sole
investment discretion, and such Person and each such account is a "qualified
institutional buyer" within the meaning of Rule 144A in a transaction meeting
the requirements of Rule 144A and such Securities are being transferred in
compliance with any applicable blue sky securities laws of any state of the
United States.
Upon giving effect to this request to exchange a beneficial interest
in Regulation S Global Securities for a beneficial interest in the Restricted
Global Security, the resulting beneficial interest shall be subject to the
restrictions on transfer applicable to the U.S Global Securities pursuant to the
Indenture and the Securities Act.
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This certificate and the statements contained herein are made for
your benefit and the benefit of the Company. Terms used in this certificate and
not otherwise defined in the Indenture have the meanings set forth in Regulation
S under the Securities Act.
Very truly yours
[Name of Transferor]
By: ------------------------------
112
EXHIBIT F
FORM OF CERTIFICATE FOR TRANSFER OR
EXCHANGE AFTER TWO YEARS
JPMorgan Chase Bank, N.A.
4 New York Plaza, 15th Floor
New York, New York 10004
Re: Xxxxxx Wireless Inc.
(the "Company") Floating Rate Senior (Secured) Notes
due 2010 ( the "Securities")
Ladies and Gentlemen:
[For transfers: This letter relates to $____________ principal
amount of Securities which are evidenced by a Restricted Global Security (CUSIP
No. 00000XXX0) and held with the Depositary in the name of Cede & Co. [and held
for the benefit of _________________] (the "Beneficial Owner"). The Beneficial
Owner has requested that its beneficial interest in such Securities be
transferred to a Person that will take delivery thereof in the form of an equal
principal amount of Securities evidenced by the Regulation S Global Security
(CUSIP No. X0000XXX0).
In connection with such request and in respect of such Securities,
the Beneficial Owner does hereby certify that upon such transfer, (a) a period
of at least two years will have elapsed since _____, 2004, (b) the Beneficial
Owner during the three months preceding the date of such transfer was not an
"affiliate" of the Company (as defined in Rule 144 under the Securities Act),
and it was not acting on behalf of such an affiliate and (c) such Person to whom
such transfer is being made is not an "affiliate" of the Company.]
[For exchanges: This letter relates to $_______________ principal
amount of Securities that are evidenced by a [Restricted Global Security (CUSIP
No. 00000XXX0) and held with the Depositary in the name of Cede & Co. [and held
for the benefit of ] ] (the "Beneficial Owner"). The Beneficial Owner has
requested that its beneficial interest in such Securities be exchanged for a
beneficial interest in an equal principal amount of Securities evidenced by the
Regulation S Global Security (CUSIP No. X0000XXX0).
In connection with such request and in respect of such Securities,
the Beneficial Owner does hereby certify that, upon such exchange, (a) it will
be the beneficial owner of such Securities, (b) a period of at least two years
will have elapsed since November 30, 2004 and (c) the Beneficial Owner will not
be, and during the three months preceding the date of such exchange will not
have been, an "affiliate" of the Company (as defined in Rule 144 under the
Securities Act), and it is not acting on behalf of such an affiliate.]
113
This certificate and the statements contained herein are made for
your benefit and the benefit of the Company.
Dated: [Insert Name of Beneficial Owner]
By: ______________________________
Name:
Title:
114
EXHIBIT G
FORM OF SUBORDINATION AGREEMENT
This Subordination Agreement made as of November 30, 2004 between
Xxxxxx Wireless Inc. (the "Company") and JPMorgan Chase Bank, N.A., as trustee
(the "Trustee"), under the Indenture (as defined below) and JPMorgan Chase Bank,
N.A., as trustee (the "Senior Debt Trustee") under an indenture dated as of
November 30, 2004 between the Company and the Senior Debt Trustee, as trustee
for the holders of Floating Rate Senior Notes due 2010 of the Company issued
under such indenture and outstanding from time to time and constituting Senior
Indebtedness (such holders being hereinafter called "holders of Senior
Indebtedness").
WITNESSES THAT WHEREAS:
A. The Company and the Trustee have entered into an indenture (the
"Indenture") dated as of November 30, 2004 providing for the issuance of 8.00%
Senior Subordinated Notes due 2012 of the Company (the "Securities"); and
B. As set forth in the Indenture and in the Securities, the Holders
have authorized the execution and delivery by the Trustees of this Agreement on
their behalf;
NOW THEREFORE for value received the parties agree as follows:
1. DEFINITIONS.
A capitalized term not defined in this Agreement has the meaning
ascribed to such term in the Indenture.
2. SUBORDINATION.
The Trustee, under the authority granted to it in the Indenture and
on behalf of and as agent for all Holders of outstanding Securities, and the
Company hereby covenant with the Senior Debt Trustee in its capacity as trustee
that the indebtedness represented by the Securities and the payment of the
principal of (and premium, if any) and interest on each and all of the
Securities delivered from time to time under the Indenture thereunder are
subordinate and subject in right of payment to the prior payment in full of
Senior Indebtedness to holders of Senior Indebtedness, in the manner, to the
extent and with the same effect as if the terms and provisions of the Indenture
were set forth herein.
3. PAYMENT TO THE COMPANY IN CERTAIN CIRCUMSTANCES.
Pursuant to Section 1207 of the Indenture, if a holder of Senior
Indebtedness or the Senior Debt Trustee shall receive in such capacity any
amount under this Agreement and at the time of receipt such holder or the Senior
Debt Trustee is not entitled to (whether by reason of maturity, acceleration or
otherwise) such amount under the terms of such Senior Indebtedness, then such
holder or the Senior Debt Trustee shall turn over such amount to the Company.
Any
115
such amount so received by any holder of Senior Indebtedness or the Senior Debt
Trustee which such holder or the Senior Debt Trustee is so required to turn over
to the Company shall in no circumstances be considered to be a payment on
account of such Senior Indebtedness.
4. BINDING EFFECT AND INUREMENT.
This Agreement shall be binding upon the successors of the Company
and the Trustee, and enure to the benefit of the successors of the Senior Debt
Trustee in their capacity as trustees.
5. NO WAIVER OR AMENDMENT.
No provision of this Agreement may be waived or amended except by an
instrument in writing signed by the party against whom the enforcement of any
waiver or amendment is sought.
6. NO PERSONAL LIABILITY.
The Trustee and the Senior Debt Trustee make no representation or
warranty as to the validity, sufficiency or effect of this Agreement, or as to
the authority of the Trustee or the Senior Debt Trustee, as the case may be, to
execute or deliver this Agreement. The Trustee and the Senior Debt Trustee shall
have no personal responsibility or liability with respect to the covenant
contained in Section 2 hereof.
7. COUNTERPARTS
This Agreement may be executed on any number of separate
counterparts and all said counterparts taken together shall be deemed to
constitute one and the same instrument.
116
8. GOVERNING LAW.
This Agreement shall be governed by and construed in accordance with
the laws of the Province of Ontario and the laws of Canada applicable therein.
XXXXXX WIRELESS INC.
By: ______________________________
M. Xxxxxxxx Xxxx
Vice-President, Treasurer
By: ______________________________
Xxxx X. Xxxx
Vice-President
JPMORGAN CHASE BANK, N.A.
By: ______________________________
Title:
JPMORGAN CHASE BANK, N.A.,
AS SENIOR DEBT TRUSTEE
By: ______________________________
Title:
117
