EXHIBIT 10
FINAL
NORSKE XXXX CANADA LIMITED ET AL
AND
TD SECURITIES AND
RBC CAPITAL MARKETS
AS ARRANGERS
AND
THE LENDERS FROM TIME TO TIME
PARTY TO THIS AGREEMENT
AND
THE TORONTO-DOMINION BANK
AS ADMINISTRATION AGENT
AND
ROYAL BANK OF CANADA
AS SYNDICATION AGENT
----------
CDN. $350,000,000 CREDIT FACILITY
CREDIT AGREEMENT
DATED AS OF 19 JULY 2002
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XXXXXX XXXXXX GERVAIS LLP
XXXXXX XXXXXXX
THIS CREDIT AGREEMENT is made as of 19 July 2002
BETWEEN:
NORSKE XXXX CANADA LIMITED, NORSKE XXXX CANADA FINANCE
LIMITED AND THE OTHER RESTRICTED PARTIES FROM TIME TO TIME
- and -
TD SECURITIES AS LEAD ARRANGER AND BOOK MANAGER AND
RBC CAPITAL MARKETS AS CO-LEAD ARRANGER
(collectively, the "Arrangers")
- and -
THE LENDERS FROM TIME TO TIME PARTY
TO THIS AGREEMENT
(the "Lenders")
- and -
THE TORONTO-DOMINION BANK
in its capacity as Administration Agent
(the "Agent")
- and -
ROYAL BANK OF CANADA
in its capacity as Syndication Agent
(the "Syndication Agent")
RECITALS:
A. Norske Xxxx Canada Finance Limited (the "Borrower") has requested the
Arrangers to arrange a senior secured credit facility of up to a maximum amount
of Cdn. $350,000,000 to be used to finance the general corporate purposes of the
Restricted Parties.
B. The Lenders have each agreed to provide their respective commitments to the
Borrower, subject to the terms and conditions of this Agreement.
C. The parties are entering into this Agreement to provide for the terms of the
credits.
THEREFORE, for value received, and intending to be legally bound by this
Agreement, the parties agree as follows:
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ARTICLE I
INTERPRETATION
1.1 DEFINED TERMS
In this Agreement, unless something in the subject matter or context is
inconsistent therewith:
1.1.1 "ACCEPTING LENDER" has the meaning defined in Section 2.4.3.
1.1.2 "ADJUSTED BALANCE SHEET" means NSCL's consolidated balance sheet at any
time, prepared in accordance with GAAP and adjusted to exclude the assets,
liabilities and shareholders' equity of all persons that are not Restricted
Parties.
1.1.3 "ADVANCE" means an availment of a Credit by the Borrower by way of Prime
Rate Advance, Base Rate Advance, acceptance of Bankers' Acceptances, L/C or
LIBOR Advance, deemed Advances and conversions, renewals and rollovers of
existing Advances, and any reference relating to the amount of Advances
shall mean the sum of all outstanding Prime Rate Advances, Base Rate
Advances and LIBOR Advances, plus the face amount of all outstanding
Bankers' Acceptances and L/Cs.
1.1.4 "AGENT" means TD in its role as administration agent for the Lenders, and
any successor administration agent appointed in accordance with this
Agreement.
1.1.5 "AGREEMENT", "HEREOF", "HEREIN", "HERETO", "HEREUNDER" or similar
expressions mean this Agreement and any Schedules hereto, as amended,
supplemented, restated and replaced from time to time.
1.1.6 "APPLICABLE FEE RATE" means, on any day, in respect of any Advance by way
of Bankers' Acceptance or L/C, as the case may be, the applicable rate
(expressed as a percentage per annum) set forth below, and "APPLICABLE
MARGIN" means, on any day, with respect to any Prime Rate Advance, Base
Rate Advance or LIBOR Advance, the applicable margin (expressed as a
percentage per annum) set forth below, in each case based upon the
Reference Debt Ratings on that day.
Xxxxx 0 Xxxxx 0 Xxxxx 0 Xxxxx 0 Xxxxx 0 Xxxxx 0
------------- ------- ------- ------- ------- -------
Xxxxx'x Baa1 or above Xxx0 Xxx0 Xx0 Xx0 < Ba2
S&P BBB+ or above BBB BBB- BB+ BB < BB
Margin for
Prime Rate Advances/
Base Rate Advances 0 0.125% 0.25% 1.25% 1.625% 2.25%
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Xxxxx 0 Xxxxx 0 Xxxxx 0 Xxxxx 0 Xxxxx 0 Xxxxx 0
------------- ------- ------- ------- ------- -------
Margin for
LIBO Rate Advances 1.00% 1.125% 1.25% 2.25% 2.625% 3.25%
Rate for Bankers'
Acceptance Fee/
L/C Fee 1.00% 1.125% 1.25% 2.25% 2.625% 3.25%
At the date of this Agreement, the Applicable Fee Rate and Applicable
Margin are based on Level 4.
For purposes hereof, (i) if the ratings established (or deemed to have been
established, as provided in clause (ii) below) by Xxxxx'x and S&P fall
within different Levels as set out above, the Applicable Fee Rate and
Applicable Margin will be the higher of the alternative Applicable Fee
Rates and Applicable Margins, (ii) if at any time there is only one of
Xxxxx'x and S&P which has in effect a Reference Debt Rating (other than (a)
because such ratings agency is no longer in the business of rating
corporate debt obligations, (b) as a result of a change in the rating
system of Xxxxx'x or S&P or (c) for any other reason reasonably determined
by the Agent to be outside of the control of and unrelated to NSCL), then
the Applicable Fee Rate and Applicable Margin shall be determined as if
each rating agency had established a Reference Debt Rating in Level 6 and
(iii) if any rating established (or deemed to have been established, as
provided in clause (ii) above) by Xxxxx'x or S&P is changed (other than as
a result of a change in the rating system of Xxxxx'x or S&P), the change
shall be effective as of the date on which it is first publicly announced
by the applicable rating agency. Each change in the Applicable Fee Rate and
Applicable Margin shall apply during the period commencing on the effective
date of such change and ending on the date immediately preceding the
effective date of the next such change. On the effective date of each
change, the Borrower shall pay any additional amount attributable to a
higher Applicable Fee Rate with respect to a Bankers' Acceptance or an L/C
outstanding on that date for the remaining term of the Bankers' Acceptance
or L/C, or the Lenders shall remit to the Agent, who shall refund to the
Borrower, any amount attributable to a lower Applicable Fee Rate. If at any
time only one of Xxxxx'x and S&P has in effect a Reference Debt Rating (x)
because the rating system of Xxxxx'x or S&P has changed, (y) because such
rating agency has ceased to be in the business of rating corporate debt
obligations, or (z) for any other reason reasonably determined by the Agent
to be outside of the control of and unrelated to NSCL, NSCL and the Lenders
(acting through the Agent) shall negotiate in good faith to amend the
references to specific ratings in this definition to reflect such changed
rating system or the non-availability of ratings from such rating agency
and, pending the effectiveness of any such amendment, the Applicable Fee
Rate and Applicable Margin shall be determined by reference to the Level
most recently in effect.
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1.1.7 "ARRANGERS" means, collectively, TD Securities as Lead Arranger and Book
Manager and RBC Capital Markets as Co-Lead Arranger.
1.1.8 "ASSIGNMENT AGREEMENT" means an agreement in the form of Schedule D to
this Agreement.
1.1.9 "BA DISCOUNT PROCEEDS" means, in respect of any Bankers' Acceptance, an
amount calculated on the applicable Drawdown Date which is (rounded to the
nearest full cent, with one-half of one cent being rounded up) equal to the
face amount of such Bankers' Acceptance multiplied by the price, where the
price is calculated by dividing one by the sum of one plus the product of
(i) the BA Discount Rate applicable thereto expressed as a decimal fraction
multiplied by (ii) a fraction, the numerator of which is the term of such
Bankers' Acceptance and the denominator of which is 365, which calculated
price will be rounded to the nearest multiple of 0.001%.
1.1.10 "BA DISCOUNT RATE" means, (a) with respect to any Bankers' Acceptance
accepted by a Lender named on Schedule I to the Bank Act (Canada), the
average rate that appears on the Reuters Screen CDOR Page at or about 10:00
a.m. (Toronto time) on the applicable Drawdown Date, for bankers'
acceptances having an identical maturity date to the maturity date of such
Bankers' Acceptance, and (b) with respect to any Bankers' Acceptance
accepted by any other Lender, the rate determined established in accordance
with (a) above plus 0.07% per annum.
1.1.11 "BA EQUIVALENT LOAN" has the meaning defined in Section 5.15.5.
1.1.12 "BANKERS' ACCEPTANCE" means a depository xxxx as defined in the
Depository Bills and Notes Act (Canada) in Canadian Dollars that is in the
form of an order signed by the Borrower and accepted by a Lender pursuant
to this Agreement or, for Lenders not participating in clearing services
contemplated in that Act, a draft or xxxx of exchange in Canadian Dollars
that is drawn by the Borrower and accepted by a Lender pursuant to this
Agreement. Orders that become depository bills, drafts and bills of
exchange are sometimes collectively referred to in this Agreement as
"orders." Any depository xxxx may be made payable to "CDS & Co." and
deposited with the Canadian Depository for Securities Limited.
1.1.13 "BANKERS' ACCEPTANCE FEE" means the amount calculated by multiplying the
face amount of each Bankers' Acceptance by the rate for the Bankers'
Acceptance Fee specified in Section 2.5, and then multiplying the result by
a fraction, the numerator of which is the duration of its term on the basis
of the actual number of days to elapse from and including the date of
acceptance of a Bankers Acceptance by the Lender up to but excluding the
maturity date of the Bankers' Acceptance and the denominator of which is
365.
1.1.14 "BASE RATE" means, on any day, the greater of:
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(a) the annual rate of interest (expressed as a percentage per annum on
the basis of a 365 day year) announced by TD on that day as its
reference rate for commercial loans made in Canada in US Dollars; and
(b) the Federal Funds Effective Rate plus 1% per annum.
1.1.15 "BASE RATE ADVANCE" means an Advance in US Dollars bearing interest based
on the Base Rate and includes deemed Base Rate Advances provided for in
this Agreement.
1.1.16 "BORROWER" means Norske Xxxx Canada Finance Limited, a company governed
by the Company Act (British Columbia).
1.1.17 "BORROWING BASE" means at any time, the aggregate of:
(a) 75% of the net book value of accounts receivable of NSCL, other than
accounts receivable owing by employees of any Restricted Party, based
on the Adjusted Balance Sheet; and
(b) an amount equal to the lesser of item (a) above and 50% of the
aggregate inventory of NSCL, other than work in process, based on the
Adjusted Balance Sheet.
1.1.18 "BORROWING BASE CERTIFICATE" means a certificate of NSCL in the form of
Schedule G.
1.1.19 "BRANCH OF ACCOUNT" means the Agency Account, Xxxxxxx-Xxxxxxxx
Xxxxxxxxxxxxx Xxxxxx, Xxxxxxx, Xxxxxxx.
1.1.20 "BUSINESS DAY" means a day of the year, other than Saturday or Sunday, on
which (a) the Agent is open for business at its executive offices in
Toronto, Ontario and at its main branch in Vancouver, British Columbia (or
in other locations specified by any successor to TD as Agent) and (b) in
respect of notices, determinations, payments or Advances relating to LIBOR
Advances, the Agent is open for business at its principal offices in
London, England. Notwithstanding the foregoing, if the Agent will be open
in some locations referred to above and closed in others on a particular
day, and the Agent in consultation with NSCL determines that the closing on
that day will not adversely affect completion of relevant transactions in
accordance with customary banking market and trading practices, the Agent
may, on reasonable notice to NSCL and the Lenders, specify the particular
day to be a Business Day.
1.1.21 "CANADIAN DOLLARS", "CDN. DOLLARS", "CDN. $" and "$" mean lawful money of
Canada.
1.1.22 "CAPITAL STOCK" means, with respect to any person, any and all present
and future shares, partnership or other interests, participations or other
equivalent
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rights in the person's capital, however designated and whether voting or
non-voting.
1.1.23 "CHANGE OF CONTROL DEFAULT" means a change of control of NSCL which
results in the Reference Debt Rating by Xxxxx'x or S&P being lowered by
three or more levels, a level being, for example, the difference between A
and A+. For the purpose of this Agreement, a change in control of NSCL
shall be deemed to have occurred only in the following circumstances:
(a) if the Existing Major Shareholder then directly or indirectly holds
Capital Stock of NSCL to which is attached 30% or more of the votes
that may be cast to elect directors of NSCL or 30% or more of the
total shareholders' equity of NSCL, a change of control shall be
deemed to have occurred if Capital Stock of NSCL is held by or for the
benefit of any person, or group of persons acting jointly or in
concert, other than by way of security only, in a quantity to which is
attached more of the votes or more of the shareholders' equity than
are attached to the Capital Stock of NSCL then held by the Existing
Major Shareholder, or
(b) if the Existing Major Shareholder does not then directly or indirectly
hold Capital Stock of NSCL to which is attached 30% or more of the
votes that may be cast to elect directors of NSCL or 30% or more of
the total shareholders' equity of NSCL, a change of control shall be
deemed to have occurred if Capital Stock of NSCL to which is attached
30% or more of the votes that may be cast to elect directors of NSCL
or 30% or more of the total shareholders' equity of NSCL is held by or
for the benefit of any person, or group of persons acting jointly or
in concert, other than by way of security only.
1.1.24 "COLLATERAL" means cash, a bank draft or a letter of credit, all in a
form, and in the case of a letter of credit, from an issuer, satisfactory
to the Lenders, acting reasonably.
1.1.25 "COMMITMENT" means in respect of each Lender from time to time, the
commitment to make Advances to the Borrower in the Lender's Proportionate
Share of the maximum amount of any Credit as set out on Schedule E and,
where the context requires, the maximum amount of Advances which the Lender
has made or committed to make.
1.1.26 "COMPLIANCE CERTIFICATE" means a certificate in the form of Schedule C.
1.1.27 "CONSOLIDATED NET TANGIBLE ASSETS" means the sum of the net book value of
the assets of the Restricted Parties less, without duplication, the sum of
(a) the net book value of the Restricted Parties' goodwill, trademarks,
copyrights, patents, trade names, organization expense, treasury stock,
deferred charges, unamortized debt discount expense and other similar
intangible assets and (b) the
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net book value of the Restricted Parties' liabilities (including deferred
taxes but excluding Funded Debt) and minority interests.
1.1.28 "CONSTATING DOCUMENTS" means, with respect to any Restricted Party, its
articles or certificate of incorporation, amendment, amalgamation or
continuance, memorandum of association, by-laws, partnership agreement,
limited liability company agreement or other similar document, and all
unanimous shareholder agreements, other shareholder agreements, voting
trust agreements and similar arrangements applicable to the Restricted
Party's Capital Stock, all as amended from time to time.
1.1.29 "CONTRACTS" means agreements, franchises, leases, easements, servitudes,
privileges and other rights, other than Permits.
1.1.30 "CONTRIBUTING LENDER" shall have the meaning defined in Section 9.3.2.
1.1.31 "CREDITS" means collectively the revolving credit of up to $297,500,000
or the US Dollar equivalent thereof (designated as "CREDIT 1") and the
revolving credit of up to $52,500,000 or the US Dollar equivalent thereof
(designated as "CREDIT 2") which are established by this Agreement, and
"CREDIT" means either of them.
1.1.32 "CREDIT DOCUMENTS" means this Agreement, the Security and all other
documents relating to the Credits, or any of them.
1.1.33 "DEBT" means, with respect to any person, without duplication and without
regard to any interest component thereof (whether actual or imputed) that
is not due and payable, the aggregate of the following amounts, each
calculated in accordance with GAAP unless the context otherwise requires:
(a) all obligations (including, without limitation, by way of overdraft
and drafts or orders accepted representing extensions of credit) that
would be considered to be indebtedness for borrowed money, and all
obligations (whether or not with respect to the borrowing of money)
that are evidenced by bonds, debentures, notes or other similar
instruments;
(b) the BA Discount Proceeds of all outstanding Bankers' Acceptances, less
the Bankers' Acceptance Fees in respect thereof, and the equivalent
amounts in respect of any similar instruments not issued under this
Agreement;
(c) all liabilities upon which interest charges are customarily paid by
that person;
(d) any Capital Stock of that person (or of any Subsidiary of that person
that is not held by that person or by a Subsidiary of that person that
is wholly owned, directly or indirectly) which Capital Stock, by its
terms (or by the terms of any security into which it is convertible or
for which it is
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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, for cash or securities
constituting Debt;
(e) all capital lease obligations, synthetic lease obligations,
obligations under sale and leaseback transactions and purchase money
obligations;
(f) all obligations for the deferred purchase price of Property or
services acquired by such person or any predecessor and all
obligations of such person under any conditional sale or other title
retention agreement with respect to any Property;
(g) all obligations secured by any Encumbrance upon or in any Property
owned by such person whether or not such person has assumed or become
liable for the payment of such obligations;
(h) the Market Value of all Derivatives in respect of which the Market
Value is negative from that person's perspective (that is, the person
is "out of the money");
(i) the amount of all contingent liabilities in respect of L/Cs and other
letters of credit and letters of guarantee;
(j) the amount of all contingent liabilities in respect of performance
bonds and surety bonds, and any other guarantee or other contingent
liability of any part or all of an obligation of a person other than a
Restricted Party, in each case only to the extent that the guarantee
or other contingent liability is required by GAAP to be treated as a
liability on a balance sheet of the guarantor or person contingently
liable; and
(k) the amount of the contingent liability under 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 of another person of the type included in any of the
other items in this definition;
provided that trade payables and accrued liabilities that are current
liabilities incurred in the ordinary course of business do not constitute
Debt. The amount of a person's Debt as calculated above shall be reduced by
the Market Value of all Derivatives entered into by that person with a
counterparty in respect of which the Market Value is positive, but the
reduction for any counterparty shall not exceed the Market Value of any
Derivatives entered into with the same counterparty that have a negative
Market Value, except if the counterparty is a Lender, the reduction shall
not exceed the aggregate of the principal amount of the Obligations owed to
the same Lender and the Market Value of all Derivatives entered into by
that person with the same Lender in respect of which the Market Value is
negative.
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1.1.34 "DECLINING LENDER" has the meaning defined in Section 2.4.1.
1.1.35 "DEFAULTING LENDER" has the meaning defined in Section 9.3.2.
1.1.36 "DERIVATIVE" means any transaction of a type commonly considered to be a
derivative, any combination of such transactions or any agreement relating
to any such transaction or combination of transactions, in each case
whether relating to one or more of interest, currencies, commodities,
securities or other matters, including but not limited to (a) any cap,
collar, floor or option, (b) any forward contract, and (c) any rate swap,
basis swap, commodity swap, cross-currency swap or other swap or contract
for differences.
1.1.37 "DERIVATIVE AGENT" means a Lender which may be appointed as contemplated
in Schedule L.
1.1.38 "DESIGNATED ACCOUNT" means, in respect of any Advance, the account or
accounts maintained by the Borrower at a branch of RBC in Vancouver,
British Columbia that the Borrower designates in its notice requesting an
Advance.
1.1.39 "DRAWDOWN DATE" means the date, which shall be a Business Day, of any
Advance.
1.1.40 "EBITDA" means, for any relevant period, an amount equal to NSCL's net
income or net loss for the period, calculated on a consolidated basis;
(a) plus, amounts deducted in calculating net income or net loss in
respect of depreciation and amortization;
(b) plus, Total Interest Expense;
(c) plus, upfront fees paid to the Agent, Arrangers or Lenders in
connection with this Agreement;
(d) plus, amounts deducted in calculating net income or net loss in
respect of income taxes (but not capital taxes except those that are
considered by GAAP to be income taxes), whether or not deferred;
(e) minus, any non-cash items increasing consolidated net income for such
period;
(f) plus, any non-cash items decreasing consolidated net income for such
period;
(g) plus, unusual non-cash charges which require an accrual of, or a
reserve for, cash charges for any future period;
(h) minus, all cash payments during such period relating to non-cash
charges which were added back in determining EBITDA in any prior
period;
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and excluding:
(i) any gain or loss attributable to the sale, conversion, abandonment or
other disposition of Property, other than sales of inventory in the
ordinary course of business; and
(j) gains resulting from the write-up of Property and losses resulting
from the write-down of Property (other than allowances for doubtful
accounts receivable and any inventory adjustments); and
(k) any gain or loss on the repurchase or redemption of any securities
(including in connection with the early retirement or defeasance of
any Debt); and
(l) any foreign exchange gain or loss (other than foreign exchange gains
or losses in respect of accounts receivable and accounts payable and
xxxxxx or forward exchange contracts in respect of revenues, in each
case that are realized in the ordinary course of business); and
(m) any income or loss attributable to discontinued operations; and
(n) any other extraordinary items; and
(o) net income or net loss and other amounts specified in the other items
of this definition that are attributable to persons other than
Restricted Parties or to minority interests in Restricted Parties;
all of which shall be calculated without duplication in accordance with
GAAP unless otherwise expressly described. If NSCL has established a new
Restricted Party or has disposed of a Restricted Party or material Property
out of the ordinary course of business during the relevant period, EBITDA
shall be calculated in accordance with GAAP (or otherwise on a basis
satisfactory to the Agent, acting reasonably), as if the new Restricted
Party had been a Restricted Party during the entire period or the
disposition had occurred at the beginning of the period. If NSCL has
acquired material Property out of the ordinary course of business during
the relevant period for which there are separate historical financial
statements, EBITDA shall be calculated in accordance with GAAP (or
otherwise on a basis satisfactory to the Agent, acting reasonably), as if
the acquisition had occurred at the beginning of the period.
1.1.41 "ENCUMBRANCE" means any mortgage, debenture, pledge, hypothec, deposit,
lien, charge, assignment by way of security, consignment, capital lease,
hypothecation, security interest or other security agreement, trust or
arrangement having the effect of security for the payment of any debt,
liability or obligation, or any other adverse claim affecting Property, and
"ENCUMBRANCES", "ENCUMBRANCER", "ENCUMBER" and "ENCUMBERED" shall have
corresponding meanings.
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1.1.42 "ENVIRONMENTAL LAWS" means all applicable Requirements of Law, Permits
and guidelines or requirements of any governmental body (whether or not
having the force of law, and including consent decrees as to which any
Restricted Party is a party or otherwise subject, and administrative orders
which may affect a Restricted Party) relating to public health and safety,
protection of the environment, the release of Hazardous Materials or
occupational health and safety.
1.1.43 "EVENT OF DEFAULT" has the meaning defined in Section 8.1.
1.1.44 "EXCHANGE RATE" means, on any day, for the purpose of calculations under
this Agreement, the amount of Canadian Dollars into which US Dollars may be
converted, or vice versa, using the Agent's mid rate (i.e. the average of
the Agent's spot buying and selling rates) for converting the first
currency to the other currency at the relevant time on that day. If the
Exchange Rate is being determined at any time in respect of a previous day,
the noon spot rate of the Bank of Canada on that previous day shall be used
instead of the Agent's mid rate.
1.1.45 "EXCLUDED TAXES" means any Taxes now or hereafter imposed, levied,
collected, withheld or assessed on a Lender by Canada or any other
jurisdiction in which that Lender is subject to Tax as a result of the
Lender (i) carrying on a trade or business in such jurisdiction or being
deemed to do so, or having a permanent establishment in such jurisdiction;
(ii) being organized under the laws of such jurisdiction; (iii) being
resident or deemed to be resident in such jurisdiction, (iv) not dealing at
arm's length with the Restricted Parties or any other Lender or (v) being
connected with the jurisdiction imposing such Taxes otherwise than by the
mere advancement of credit hereunder, the receipt of payments under the
Credit Documents or the enforcement of rights under the Credit Documents;
but does not include any sales, goods or services Tax payable under the
laws of any such jurisdiction with respect to any goods or services made
available by a Lender to the Borrower under this Agreement or any
withholding tax.
1.1.46 "EXISTING MAJOR SHAREHOLDER" means the principal shareholder of NSCL
referred to on page 10 of NSCL's short form prospectus dated 16 May 2002.
1.1.47 "EXISTING SPECIAL DERIVATIVES" has the meaning defined in Schedule L.
1.1.48 "FEDERAL FUNDS EFFECTIVE RATE" means for any period, a fluctuating
interest rate per annum equal, for each day during such period, to the
weighted average of the rates on overnight federal funds transactions with
members of the Federal Reserve System arranged by Federal Funds brokers as
published for such day (or, if such day is not a Business Day, for the next
preceding Business Day) by the Federal Reserve Bank of New York or, for any
day on which that rate is not published for that day by the Federal Reserve
Bank of New York, the average of
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the quotations for that day for such transactions received by the Agent
from three Federal Funds brokers of recognized standing.
1.1.49 "FEE AGREEMENT" means the agency fee agreement between the Borrower and
the Agent dated as of 19 July 2002, as amended, supplemented, restated and
replaced from time to time.
1.1.50 "FUNDED DEBT" means all Debt of NSCL on a consolidated basis other than
Debt referred to in item (d) of the definition of Debt and Debt in respect
of which no interest, fee or other compensation is charged and no
Encumbrance is held.
1.1.51 "FUNDED DEBT RATIO" means at any time, the ratio calculated by dividing
NSCL's (a) Funded Debt by (b) the aggregate of its Funded Debt plus its
shareholders equity determined in accordance with GAAP on a consolidated
basis.
1.1.52 "GAAP" means Canadian generally accepted accounting principles, including
such principles recommended by the Canadian Institute of Chartered
Accountants as contained in the "CICA Handbook" as amended, replaced or
restated from time to time and, in the absence of a specific recommendation
contained in the "CICA Handbook," accounting principles generally accepted
in practice in Canada.
1.1.53 "HAZARDOUS MATERIALS" means:
(a) any oil, flammable substances, explosives, radioactive materials,
hazardous wastes or substances, toxic wastes or substances or any
other wastes, contaminates, materials or pollutants which:
(i) pose a hazard to any real property, or to persons on or about any
real property; or
(ii) cause any real property to be in violation of any Requirement of
Law;
(b) asbestos in any form which is or could become friable, urea
formaldehyde foam insulation, transformers or other equipment which
contain dielectric fluid containing levels of polychlorinated
biphenyls in excess of limits prescribed by Requirements of Law, or
radon gas;
(c) any chemical, material or substance defined as or included in the
definition of "dangerous goods", "deleterious substance", "hazardous
substances", "hazardous wastes", "hazardous materials", "extremely
hazardous wastes", "restricted hazardous waste", "toxic substances",
"waste" or words of similar import under any Law, including the
Canadian Environmental Protection Act (Canada), Fisheries Act
(Canada), Transportation of
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Dangerous Goods Act (Canada), Canada Water Act (Canada) and any
applicable provincial legislation; and
(d) any other chemical, material or substance, exposure to which is
prohibited, limited or regulated by any governmental body or which may
or could pose a hazard to the occupants of any real property or any
other person coming upon any real property or adjacent or surrounding
property;
and references to a "release" of Hazardous Materials include spilling,
leaking, pumping, pouring, emitting emptying, discharging, injecting,
escaping, leaching, disposing, dumping or other form of release, or
permitting any of the foregoing to occur.
1.1.54 "INTELLECTUAL PROPERTY" means patents, trademarks, service marks, trade
names, copyrights, trade secrets, industrial designs and other similar
rights.
1.1.55 "INTERBANK REFERENCE RATE" means, in respect of any currency, the
interest rate expressed as a percentage per annum which is customarily used
by the Agent when calculating interest due by it or owing to it arising
from correction of errors in transactions in that currency between it and
other chartered banks.
1.1.56 "INTERCREDITOR AGREEMENTS" means any intercreditor agreements that may be
entered into from time to time to provide for the terms of subordination of
any Debt in favour of the Obligations, or other relationship between the
Lenders and the holders of other Debt, including, without limitation, any
intercreditor agreements entered into with the holders of 1999 Notes, 2001
Notes, Permitted Senior Secured Indebtedness and Permitted Subordinated
Secured Indebtedness, each as amended, supplemented, restated and replaced
from time to time.
1.1.57 "INTEREST COVERAGE RATIO" means, at any time, the ratio calculated by
dividing (a) EBITDA for NSCL's four most recently completed fiscal quarters
by (b) Total Interest Expense for that period. For the purpose of
calculating the Interest Coverage Ratio for the four fiscal quarters ending
30 June 2002, NSCL's EBITDA and Total Interest Expense for the fiscal
quarter ended 30 September 2001 shall be deemed to be $67,600,000 and
$19,400,000, respectively, reflecting a pro forma calculation taking into
account NSCL's acquisition of Pacifica Papers Inc. during that quarter.
1.1.58 "INTEREST PAYMENT DATE" means (in connection with Prime Rate Advances and
Base Rate Advances) the first day of each calendar month or if that is not
a Business Day, the Business Day next following.
1.1.59 "ISSUING BANK" means the Lender making Advances under Credit 2, which is
RBC unless changed in accordance with Section 2.1.1.
1.1.60 "L/C" means a standby letter of credit, letter of guarantee or commercial
letter of credit in a form satisfactory to the Issuing Bank issued by the
Issuing Bank at
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the request of the Borrower in favour of a third party to secure the
payment or performance of an obligation of a Restricted Party to the third
party.
1.1.61 "L/C FEE" means the amount calculated by multiplying the face amount of
each L/C by the rate for the L/C Fee specified in Section 2.5, and then
multiplying the result by a fraction, the numerator of which is the
duration of its term on the basis of the actual number of days to elapse
from and including the date of issuance of an L/C by the Issuing Bank up to
but excluding the expiry date of the L/C and the denominator of which is
365.
1.1.62 "LENDERS" means each of the persons listed on Schedule E and other
lenders that agree from time to time to become Lenders in accordance with
Article X of this Agreement, and "LENDER" means any one of the Lenders.
1.1.63 "LIBO RATE" means, for any LIBOR Period and LIBOR Advance, either:
(a) the rate of interest (expressed as an annual rate on the basis of a
360 day year) determined by the Agent to be the arithmetic mean
(rounded up to the nearest 0.01%) of the offered rates for deposits in
US Dollars for a period equal to the particular LIBOR Period, which
rates appear on (A) the Reuters screen LIBO page, or (B) if the
Reuters screen LIBO page is not readily available to the Agent, Page
3750 of the Telerate screen, in either case as of 11:00 a.m. (London
time) on the second Business Day before the first day of that LIBOR
Period, or,
(b) if neither the Reuters screen LIBO page nor Page 3750 of Telerate is
readily available to the Agent for any reason, the rate of interest
determined by the Agent which is equal to the simple average of the
rates of interest (expressed as a rate per annum on the basis of a
year of 360 days and rounded up to the nearest 0.01%) at which three
of the five largest (as to total assets) banks listed on Schedule I to
the Bank Act (Canada) as selected by the Agent would be prepared to
offer leading banks in the London interbank market a deposit in US
Dollars for a period equal to the LIBOR Period in an amount
approximately equal to the relevant LIBOR Advance at or about 10:00
a.m. (Toronto time) on the second Business Day before the first day of
such Interest Period.
The LIBO Rate calculated as above shall be adjusted from day to day
for any Lender to whom the Eurocurrency Reserve Percentage applies in
respect of its LIBOR Advances under this Agreement by dividing the
LIBO Rate by a percentage equal to 100% minus the Eurocurrency Reserve
Percentage on that day. The Eurocurrency Reserve Percentage is the
percentage prescribed by the Board of Governors of the Federal Reserve
System of the United States (or any successor to its functions) for
determining the maximum reserve requirement (including but not limited
to any emergency, supplemental or other marginal reserve requirement)
for a member bank of the Federal Reserve System in New York, New
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York with deposits exceeding US $5 billion in respect of Eurocurrency
Liabilities (as defined in Regulation D of the Board of Governors of
the Federal Reserve System) or in respect of any other category of
liabilities which includes deposits by reference to which the interest
rate on LIBOR Advances is determined or any category of extensions of
credit or assets which includes loans by a non-United States office of
any bank to United States residents.
1.1.64 "LIBOR ADVANCE" means an advance in US Dollars bearing interest based on
the LIBO Rate.
1.1.65 "LIBOR PERIOD" means the period selected by the Borrower for a LIBOR
Advance or the period applicable to the LIBOR Advance under the terms of
this Agreement.
1.1.66 "MAJORITY LENDERS" means Lenders holding, in the aggregate, a minimum of
66 2/3% of the outstanding amount of the Commitments.
1.1.67 "MARKET VALUE" means, on any day, the total amount, if any, expressed in
Canadian Dollars that a person would be required to pay to its counterparty
under any Derivative in order to terminate the Derivative. The
determination shall be made in accordance with current market practice
using the average of the buy and sell prices of the underlying interest of
the Derivative as of noon Toronto time on that date. The determination
shall be made by the Derivative Agent if a Derivative Agent has been
appointed. Otherwise, the determination may be made initially by NSCL but
shall be subject to review by the Agent (whose determination, if made in
good faith, shall be conclusive) if the Agent considers that review is
appropriate.
1.1.68 "MATERIAL ADVERSE CHANGE" means any one or more transactions, events or
conditions which, when taken together, have a material adverse effect on
(a) the ability of the Restricted Parties as a whole to perform and
discharge their obligations under this Agreement or the Material Contracts
taken as a whole, (b) the Agent's or the Lenders' ability to enforce their
rights or remedies under any of the Credit Documents, or (c) the financial
condition, business or prospects of NSCL and its Subsidiaries, taken as a
whole. Notwithstanding the foregoing, if the context requires, "Material
Adverse Change" shall be interpreted having reference only to such persons
(other than all of the Restricted Parties) as the context requires.
1.1.69 "MATERIAL CONTRACT" means any Contract:
(a) to which is attached obligations on the part of the Restricted Parties
or which has an economic value to the Restricted Parties in excess of
$25,000,000 per annum; or
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(b) to which a Restricted Party is a party that, if terminated, would
materially impair the ability of the Restricted Parties as a whole to
carry on business in the ordinary course or would cause a Material
Adverse Change.
1.1.70 "MATERIAL PERMIT" means any Permit issued to a Restricted Party that, if
terminated, would materially impair the ability of the Restricted Parties
as a whole to carry on business in the ordinary course or would cause a
Material Adverse Change.
1.1.71 "MOODY'S" means Xxxxx'x Investors Service, Inc.
1.1.72 "NON BA LENDER" has the meaning defined in Section 5.15.5.
1.1.73 "NEW LENDER" has the meaning defined in Section 2.4.4.
1.1.74 "1999 INDENTURE" means the trust indenture dated as of 12 March 1999
between Pacifica Papers Inc., a predecessor by amalgamation of NSCL, as
issuer, certain of its Subsidiaries as guarantors and Xxxxx Fargo Bank
Minnesota, National Association (originally Norwest Bank Minnesota,
National Association), as Trustee, as amended and supplemented by
agreements dated 12 March 1999, 30 December 1999, 31 January 2001 and 1
September 2001 and otherwise as permitted by this Agreement.
1.1.75 "1999 NOTES" means the 10% senior notes due 2009 issued under the 0000
Xxxxxxxxx.
1.1.76 "NOTEHOLDERS" means the holders from time to time of the 1999 Notes and
the 2001 Notes.
1.1.77 "NSCL" means Norske Xxxx Canada Limited, a corporation governed by the
Canada Business Corporations Act.
1.1.78 "OBLIGATIONS" means all obligations of the Borrower to the Lenders under
or in connection with this Agreement, other than the Other Secured
Obligations, including but not limited to all debts and liabilities,
present or future, direct or indirect, absolute or contingent, matured or
not, at any time owing by the Borrower to the Lenders in any currency or
remaining unpaid by the Borrower to the Lenders in any currency under or in
connection with this Agreement, whether arising from dealings between the
Lenders and the Borrower or from any other dealings or proceedings by which
the Lenders may be or become in any manner whatever creditors of the
Borrower under or in connection with this Agreement, and wherever incurred,
and whether incurred by the Borrower alone or with another or others under
or in connection with this Agreement, and whether as principal or surety,
and all interest, fees, legal and other costs, charges and expenses. In
this definition, "the Lenders" shall be interpreted as "the Lenders, or any
of them".
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1.1.79 "OTHER SECURED OBLIGATIONS" means the present and future debts,
liabilities and obligations of any Restricted Party under or in connection
with:
(a) Derivatives to exchange one of Canadian Dollars, US Dollars, Euros or
Japanese yen to another of those currencies, provided that in the case
of such Derivatives that relate to Debt, such Derivatives do not
increase the principal amount of Debt outstanding other than as a
result of fluctuations in foreign currency exchange rates or by reason
of fees, indemnities or compensation payable thereunder;
(b) Derivatives to provide for the exchange of floating interest rate
obligations for fixed interest rate obligations, provided that the
aggregate notional principal amount (net of offsetting transactions)
of such Derivatives does not exceed the aggregate principal amount of
NSCL's consolidated floating rate Debt at the time any such Derivative
is entered into, and that the notional principal amount of such
Derivatives, at the time they are incurred, does not exceed the
principal amount of the Debt to which such Derivatives relate;
(c) Derivatives to provide for the exchange of fixed interest rate
obligations for floating interest rate obligations in an aggregate
notional principal amount (net of offsetting transactions) that does
not exceed the aggregate principal amount of NSCL's consolidated fixed
rate Debt at the time any such Derivative is entered into;
(d) Derivatives to manage fluctuations in prices of commodities;
(e) any other Derivative that is not entered into for speculative purposes
provided that the Agent acting reasonably, after consultation with
counsel but without any requirement to seek approval of the Majority
Lenders, concludes that the Derivative may be entered into without
breaching this Agreement, the 1999 Indenture, the 2001 Indenture, any
Permitted Senior Secured Indebtedness, any Permitted Subordinated
Secured Indebtedness or any Permitted Unsecured Indebtedness; and
(f) guarantees by Restricted Parties of Other Secured Obligations incurred
by other Restricted Parties;
provided that:
(g) the debts, liabilities and obligations are, in each case, held by
(i.e. owed to) any person that, at the time the relevant Derivative
was entered into, was a Lender or an affiliate (as defined in the
Canada Business Corporations Act) of a Lender;
(h) the Derivative Agent (or the Agent, if no Derivative Agent has then
been appointed) has been notified in writing of any particular Other
Secured Obligation (other than those listed on Schedule H) being
entered into,
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either within five Business Days of it being entered into or within
such longer time as is established in accordance with any arrangements
established as contemplated in Schedule L; and
(i) except for the Existing Special Derivatives, if the Derivative is of
the type described in Sections (c), (d) or (e), it is entered into in
accordance with the arrangements contemplated in Schedule L.
1.1.80 "PENDING EVENT OF DEFAULT" means an event which, with giving of notice,
lapse of time, or both, or subject to any other condition subsequent to
such event, would constitute an Event of Default.
1.1.81 "PENSION PLAN" means (a) a "registered pension plan" (as that term is
defined in the Income Tax Act (Canada)) which is subject to the funding
requirements of applicable pension benefits legislation in any jurisdiction
of Canada and is applicable to employees resident in Canada of any
Restricted Party, or (b) any pension benefit plan, other post-retirement
benefit plan or other similar arrangement applicable to employees of any
Restricted Party.
1.1.82 "PERMITS" means governmental licenses, authorizations, consents,
registrations, exemptions, permits and other approvals required by law.
1.1.83 "PERMITTED ENCUMBRANCES" means, with respect to any person, the
following:
(a) Encumbrances for taxes, rates, assessments or other governmental
charges or levies not yet due, or for which instalments have been paid
based on reasonable estimates pending final assessments, or if due,
the validity of which is being contested diligently and in good faith
by appropriate proceedings by that person and the payment of which has
been secured by such arrangements (including Collateral) as the
Lenders may require;
(b) undetermined or inchoate Encumbrances, rights of distress and charges
incidental to current operations which have not at such time been
filed or exercised and of which none of the Lenders has been given
notice, or which relate to obligations not due or payable or if due,
the validity of which is being contested diligently and in good faith
by appropriate proceedings by that person and the payment of which has
been secured by such arrangements (including Collateral) as the
Lenders may require;
(c) reservations, limitations, provisos and conditions expressed in any
original grants from the Crown or other grants of real or immovable
property, or interests therein, which do not materially affect the use
of the affected land for the purpose for which it is used by that
person;
(d) zoning, land use and building restrictions, by-laws, regulations and
ordinances of federal, provincial, municipal and other governmental
authorities, licenses, easements, rights-of-way and rights in the
nature of easements (including, without limiting the generality of the
foregoing,
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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 cables), none of which will materially
impair the use of the affected land for the purpose for which it is
used by that person;
(e) title defects, encroachments or irregularities which are of a minor
nature and which in the aggregate will not materially impair the use
of the affected property for the purpose for which it is used by that
person;
(f) the right reserved to or vested in any municipality or governmental or
other public authority by the terms of any lease, license, franchise,
grant or permit acquired by that person or by any statutory provision
to terminate any such lease, license, franchise, grant or permit, or
to require annual or other payments as a condition to the continuance
thereof;
(g) the Encumbrance resulting from the deposit of cash or securities in
connection with contracts (other than for the payment of Debt),
tenders or expropriation proceedings, or to secure workers'
compensation, unemployment insurance, surety or appeal bonds, costs of
litigation when required by law, liens and claims incidental to
current construction, mechanics', warehousemen's, carriers' and other
similar liens, and public, statutory and other like obligations
incurred in the ordinary course of business, up to a maximum at any
time of $10,000,000 for all Restricted Parties;
(h) security given to a public utility or any municipality or governmental
authority when required by such utility or authority in connection
with the operations of that person in the ordinary course of its
business, up to a maximum at any time of $10,000,000 for all
Restricted Parties;
(i) the Trustee Security, to the extent that it secures debentures that
have been issued under the trust deeds forming part of the Trustee
Security and pledged to secure the debts, liabilities and obligations
described in Section 3.2, and the pledges of those debentures;
(j) the Security other than the Trustee Security;
(k) the Encumbrance created by a judgment of a court of competent
jurisdiction, as long as the judgment is being contested diligently
and in good faith by appropriate proceedings and payment has been
secured by such arrangements (including Collateral) as the Lenders may
require or the judgment is being satisfied by that person and has not
caused an Event of Default;
(l) Encumbrances on Property and the proceeds thereof created or assumed
to finance the acquisition or improvement or secure the unpaid
purchase price thereof (including the principal amount of any capital
lease or
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Purchase Money Mortgage), provided that the aggregate principal amount
(or fair market value of the Property Encumbered if no principal
amount is designated) in respect of all such Encumbrances entered into
by all Restricted Parties does not exceed 5% of Consolidated Net
Tangible Assets at any time;
(m) lease by Pacifica Papers Inc. to Xxxxxxx Trucking Ltd. of that part of
XX 0, Xxxxxxx Xxxxxxxx, Xxxx 0000-X and that Part of Xxx X, XX 0,
Xxxxxxx Xxxxxxxx Xxxx 00000, dated 1 November 1999, with term to 31
October 2003, with rent of $5,100 semi-annually (NSCL File No.
1701-02, PR No. G-1243);
(n) lease by Pacifica Poplars Inc. to Xxxxx Xxxxx of Part of Northwest 1/4
of the Northeast 1/4 of Section 30, Township 3810, Range 5, EWM,
containing 1.75 acres more or less at $1.00 per year to 21 October
2005 (NSCL File No. 4708-05, PR No. G-4000);
(o) permit by NSCL to West Isle Resources Renewal Limited to use Part of
Part of Block 105 Alberni District Plan for a 4-year term at $1500 per
quarter, for fish composting operations (expires 30 June 2005);
(p) lease ED128285 by NSCL registered against one of the properties
comprising the Crofton Pulp and Paper lands (PID: 009-922-431) to The
Corporation of the District of North Cowichan over the portion of the
relevant property shown on Plan VIP51593 for the purposes of a
community parking lot, boat launch ramp and water access for a term of
20 years commencing on 1 May 1990 and terminating on 30 April 2010;
(q) lease EN73583 by Elk Falls Pulp and Paper Limited registered against
one of the properties comprising the Elk Falls Mill lands (PID:
001-233-432) to Calpine Island Cogeneration Project Inc. (Inc. No.
A44467), for the purposes of a cogeneration plant which provides steam
to the mill operations and also sells electricity to BC Hydro, and
being a long-term lease which has a term consistent with the Mill
Services Agreement dated 29 September 1998 (including a renewal); and
(r) other Encumbrances expressly agreed to in writing by the Majority
Lenders.
1.1.84 "PERMITTED OBLIGATIONS" means the following:
(a) the Obligations;
(b) the Other Secured Obligations;
(c) debts, liabilities and obligations of any Restricted Party to another
Restricted Party;
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(d) the 1999 Notes and the 2001 Notes;
(e) Permitted Senior Secured Indebtedness;
(f) Permitted Subordinated Secured Indebtedness;
(g) Permitted Unsecured Indebtedness;
(h) other debts, liabilities and obligations secured by Permitted
Encumbrances;
(i) other unsecured Debt up to an aggregate amount outstanding of
$4,000,000 for all Restricted Parties at any time;
(j) current accounts payable, accrued expenses and other debts,
liabilities and obligations incurred in the ordinary course of
business which are not Debt;
(k) deferred taxes;
(l) actuarially determined obligations in respect of Pension Plans;
(m) obligations arising from guarantees by one Restricted Party of debts,
liabilities and obligations of another Restricted Party that are
themselves Permitted Obligations;
(n) bankers' acceptances secured by L/Cs as contemplated in Section 5.23;
and
(o) other debts, liabilities and obligations expressly permitted under
this Agreement or expressly consented to by the Majority Lenders in
writing.
1.1.85 "PERMITTED SENIOR SECURED INDEBTEDNESS" means Debt of NSCL for borrowed
money that:
(a) is secured by the Trustee Security pari passu with the Obligations and
the Other Secured Obligations;
(b) other than as a result of default, does not require or result in
payment of principal in excess of an aggregate of $50,000,000 for all
Permitted Senior Secured Indebtedness and Permitted Unsecured
Indebtedness during any period of 36 consecutive months in the term of
this Agreement;
(c) is on terms and conditions that, in the reasonable opinion of the
Majority Lenders, are no more restrictive to the Restricted Parties
than the terms of the Obligations including, without limitation, the
scheduled amortization of the Debt;
(d) is not incurred at a time that an Event of Default or Pending Event of
Default has occurred and is continuing or would, in the opinion of the
Majority Lenders, acting reasonably, based on their review of pro
forma
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budgets and other information that the Lenders may require from NSCL
(all of which must be in form and substance satisfactory to the
Lenders, acting reasonably), result from the incurrence of the Debt;
(e) if required by the Majority Lenders, is subject to the terms of an
Intercreditor Agreement entered into with the Agent in form and
substance satisfactory to the Majority Lenders, acting reasonably; and
(f) has an aggregate principal amount outstanding at any time during the
term of this Agreement that does not exceed $150,000,000.
1.1.86 "PERMITTED SUBORDINATED SECURED INDEBTEDNESS" means Debt of NSCL for
borrowed money that:
(a) is on terms and conditions including, without limitation, financial
covenants that are satisfactory to the Majority Lenders;
(b) if required by the Majority Lenders, is subject to the terms of an
Intercreditor Agreement entered into with the Agent in form and
substance satisfactory to the Majority Lenders, acting reasonably;
(c) is secured by the Trustee Security but subordinate to the Obligations
and the Other Secured Obligations.
1.1.87 "PERMITTED UNSECURED INDEBTEDNESS" means Debt of NSCL for borrowed money
that:
(a) other than as a result of default, does not require payment of
principal in excess of an aggregate of $50,000,000 for all Permitted
Senior Secured Indebtedness and Permitted Unsecured Indebtedness
during the term of this Agreement;
(b) is on terms and conditions that are no more restrictive to the
Restricted Parties than the terms of the Obligations including,
without limitation, the scheduled amortization of the Debt; and
(c) is not incurred at a time that an Event of Default or Pending Event of
Default has occurred and is continuing or would result from the
incurrence of the Debt.
1.1.88 "PERSON" or "PERSON" means any individual, corporation, company,
partnership, unincorporated association, trust, joint venture, estate or
other judicial entity or any governmental body.
1.1.89 "PLEDGED SHARES" means the Capital Stock of the Restricted Parties and
other persons that is pledged as part of the Trustee Security from time to
time.
1.1.90 "PRIME RATE" means, on any day, the greater of:
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(a) the annual rate of interest expressed as a percentage per annum in
effect on that day as TD's reference rate for commercial loans made by
it in Canada in Canadian Dollars; and
(b) the average rate for 30 day Canadian Dollar bankers' acceptances that
appears on the Reuters Screen CDOR Page at 10:00 a.m. Toronto time on
that day, plus 1% per annum.
1.1.91 "PRIME RATE ADVANCE" means an Advance in Canadian Dollars bearing
interest based on the Prime Rate and includes deemed Prime Rate Advances
provided for in this Agreement.
1.1.92 "PROPERTY" means, with respect to any person, any or all of its
undertaking, property and assets.
1.1.93 "PROPORTIONATE SHARE" means the percentage of the maximum amount of the
Credits which a Lender has agreed to advance to the Borrower, as set out on
Schedule E, which shall be amended by the Agent from time to time as other
persons become Lenders or the Proportionate Shares of Lenders otherwise
change.
1.1.94 "PURCHASE MONEY MORTGAGE" means any Encumbrance, including a capital
lease, created, issued or assumed by any Restricted Party to secure
indebtedness assumed by that person as part of, or issued or incurred to
provide funds to pay, and not exceeding 100% of, the unpaid purchase price
(including installation cost) or construction cost of any Property, if the
Encumbrance is limited to the Property acquired and is created, issued or
assumed substantially concurrently with the acquisition of the Property or
in connection with the refinancing of an existing Purchase Money Mortgage,
if the principal amount has not increased and the Encumbrance continues to
be limited to that Property. Purchase Money Mortgage also includes any
other fixed charge over specific limited Property securing term debt of a
person existing at the time the person is acquired by a Restricted Party or
assumed by a Restricted Party in connection with the acquisition of
Property from the person, but not incurred in connection with or in
anticipation of the acquisition of the person or Property.
1.1.95 "RBC" means Royal Bank of Canada, a bank to which the Bank Act (Canada)
applies.
1.1.96 "REFERENCE DEBT RATING" means the public rating of the indebtedness and
liability of the Borrower to the Lenders under the Credits or if either
Xxxxx'x or S&P has not established a rating for indebtedness and liability
under the Credits, the corporate credit or issuer ratings of NSCL
established by Xxxxx'x or S&P, as the case may be, shall apply.
1.1.97 "REGISTER" has the meaning defined in Section 10.2.3.
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1.1.98 "REPLACEMENT CONTRACT" means any one or more Contracts (a) entered into
by a Restricted Party to replace a Material Contract that has been
terminated or in respect of which a declaration of non-performance has been
issued or similar step has been taken, (b) which provide the Restricted
Party with rights, benefits and value substantially similar to and on terms
and conditions not materially less favourable than those contained in the
Material Contract being replaced and (c) which are entered into
concurrently with or before a termination, declaration or similar step
arising from a breach by or other event relating to a Restricted Party or
within 30 days of a termination, declaration or similar step arising from a
breach by or other event relating to a Person other than a Restricted
Party. A Replacement Contract shall be deemed to be a Material Contract and
shall be deemed to be a Special Material Contract if the Material Contract
that it replaces was a Special Material Contract, and the Material Contract
that is replaced shall cease to be a Material Contract.
1.1.99 "REQUIREMENT OF LAW" means, as to any person, any law, treaty,
regulation, ordinance, decree, judgment, order or similar requirement made
or issued under sovereign or statutory authority and applicable to or
binding upon that person, or to which that person or any of its Property is
subject.
1.1.100 "RESTRICTED PARTIES" means NSCL, the Borrower, Elk Falls Pulp and Paper
Limited, NorskeCanada, Norske Xxxx Canada (Japan) Ltd, Norske Xxxx Canada
Pulp Operations Limited, Norske Xxxx Canada Pulp Sales Inc, Norske Xxxx
Canada Sales Inc., Norske Xxxx Canada (USA) Inc., Norske Xxxx Pulp Sales
(Japan) Ltd., NSCL Holdings Inc., Pacifica Papers Sales Ltd., Pacifica
Papers Sales Inc., Pacifica Papers Kabushiki Kaisha, Pacifica Poplars Ltd.,
Pacifica Poplars Inc., and Pacifica Papers US Inc. and such other
Subsidiaries of NSCL as may become Restricted Parties from time to time.
1.1.101 "S&P" means Standard & Poor's Corporation.
1.1.102 "SCHEDULE" means the designated schedule of this Agreement.
1.1.103 "SECTION" means the designated section of this Agreement.
1.1.104 "SECURED DEBT RATIO" means, at any time, the ratio of (a) the amount of
Funded Debt that is secured by any Encumbrance to (b) the aggregate of all
Funded Debt plus NSCL's shareholders' equity determined in accordance with
GAAP on a consolidated basis.
1.1.105 "SECURITY" means the security held from time to time by or on behalf of
the Lenders (including but not limited to the Trustee Security), securing
or intended to secure repayment of the Obligations, including without
limitation the security described in Section 3.1.
1.1.106 "SPECIAL MATERIAL CONTRACT" has the meaning defined in Section 3.1.8.
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1.1.107 "SUBSIDIARY" means, with respect to a Restricted Party, a subsidiary as
defined in the Canada Business Corporations Act as of the date of this
Agreement, and any partnership or other organization in which the
Restricted Party or any of its Subsidiaries has the right to make or
control management decisions.
1.1.108 "SUCCESSOR AGENT" has the meaning defined in Section 9.11.
1.1.109 "SYNDICATION AGENT" means RBC in its role as syndication agent for the
Lenders.
1.1.110 "TAXES" means all taxes, levies, imposts, stamp taxes, duties,
deductions, withholdings, rates, assessments, fees, dues and similar
governmental impositions payable, levied, collected, withheld, imposed or
assessed as of the date of this Agreement or at any time in the future, and
"Tax" shall have a corresponding meaning.
1.1.111 "TD" means The Toronto-Dominion Bank, a bank to which the Bank Act
(Canada) applies.
1.1.112 "THRESHOLD AMOUNT" means, while the 1999 Notes are outstanding, the
aggregate of:
(a) the greater of (i) $430,000,000 and (ii) the sum of 75% of the net
book value of the accounts receivable of NSCL and its "Restricted
Subsidiaries" as defined under the 1999 Indenture plus 50% of the net
book value of inventory of NSCL and its Restricted Subsidiaries plus
$290,000,000;
(b) $40,000,000; and
(c) the amount of Advances outstanding under the Credits that are trade
letters of credit and standby letters of credit incurred in the
ordinary course of business and the amount of Bankers' Acceptances
outstanding under the Credits that are incurred in the ordinary course
of business, up to an aggregate principal amount of $5,000,000
outstanding at any one time;
and, if the 1999 Notes are no longer outstanding and the 2001 Notes are
outstanding, means the aggregate of:
(d) the greater of (i) $725,000,000 and (ii) the sum of 75% of the net
book value of the accounts receivable of NSCL and its "Restricted
Subsidiaries" as defined under the 2001 Indenture plus 50% of the book
value of inventory at the lower of cost and net realizable value, net
of any allowance for obsolescence of NSCL and its Restricted
Subsidiaries plus $290,000,000;
(e) $40,000,000; and
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(f) the amount of Advances outstanding under the Credits that are trade
letters of credit and standby letters of credit incurred in the
ordinary course of business and the amount of Bankers' Acceptances
outstanding under the Credits that are incurred in the ordinary course
of business, up to an aggregate principal amount of $5,000,000
outstanding at any one time.
If neither the 1999 Notes nor the 2001 Notes are outstanding, the Threshold
Amount shall be considered to be unlimited.
1.1.113 "TOTAL INTEREST EXPENSE" means, for any particular period, without
duplication, the difference between (a) aggregate expense incurred for
interest and equivalent costs of borrowing (taking into account the effect
of any relevant Derivatives), including but not limited to (i) bankers'
acceptance fees, (ii) discounts on bankers' acceptances, (iii) the interest
portion of any capital lease, and (iv) all fees and other compensation paid
to any person that has extended credit to the Restricted Parties, but
excluding any upfront, extension and similar non-recurring fees paid to the
Agent or Lenders or paid in connection with the 2001 Notes or 1999 Notes,
in each case whether or not actually paid (unless paid by the issuance of
securities constituting Debt), and (b) the aggregate income earned from
interest, in the case of each of (a) and (b), calculated in accordance with
GAAP in respect of NSCL on a consolidated basis, omitting amounts that are
not attributable to Restricted Parties. If the calculation of EBITDA is
adjusted because of acquisitions, dispositions or other circumstances
described in the last paragraph of Section 1.1.40, the calculation of Total
Interest Expense shall be adjusted on the same basis.
1.1.114 "TRUSTEE" means The Canada Trust Company in its capacity as trustee
under the Trustee Security from time to time, and any successor trustee.
1.1.115 "TRUSTEE SECURITY" means the trust deeds granted by the Restricted
Parties to the Trustee and the pledges of Pledged Shares, assignments of
Material Contracts and other collateral security for the trust deeds.
1.1.116 "2001 INDENTURE" means the trust indenture dated as of 14 August 2001
between NSCL, certain of its Subsidiaries as guarantors and Xxxxx Fargo
Bank Minnesota, National Association as trustee, as amended and
supplemented by agreements dated 28 August 2001 and 1 September 2001 and
otherwise as permitted by this Agreement.
1.1.117 "2001 NOTES" means the 8 5/8% senior notes due 2011 issued by NSCL under
the 0000 Xxxxxxxxx.
1.1.118 "US DOLLARS" and "US $" mean lawful money of the United States of
America.
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ARTICLE II
THE CREDITS
2.1 AMOUNT AND AVAILMENT OPTIONS
2.1.1 Upon and subject to the terms and conditions of this Agreement, the
Lenders agree to provide credits for the use of the Borrower in the amount of up
to Cdn. $350,000,000 or the US Dollar equivalent thereof, which are referred to
collectively as the Credits and are comprised of a tranche of up to
Cdn.$297,500,000 referred to as Credit 1 and a tranche of up to Cdn. $52,500,000
referred to as Credit 2. Subject to Section 5.1, Advances under Credit 1 will be
made by the Lenders and Advances under Credit 2 will be made by RBC. The
Borrower may from time to time with the agreement of the Agent (without any
requirement to seek Majority Lender consent) and the proposed replacement,
designate another Lender to replace RBC in making Advances under Credit 2. In
that case, references in this Agreement to RBC in respect of Credit 2 shall be
interpreted as referring to the replacement.
2.1.2 At the option of the Borrower, Credit 1 may be used by requesting Prime
Rate Advances to be made by the Lenders, by requesting Base Rate Advances to be
made by the Lenders, by presenting orders to the Lenders for acceptance as
Bankers' Acceptances, or by requesting that LIBOR Advances be made by the
Lenders.
2.1.3 At the option of the Borrower, Credit 2 may be used by the Borrower
incurring overdrafts in its accounts with RBC, which shall be deemed to be Prime
Rate Advances in the case of Canadian Dollar overdrafts and Base Rate Advances
in the case of US Dollar overdrafts, by presenting orders to RBC for acceptance
as Bankers' Acceptances, by requesting that LIBOR Advances be made by RBC or by
requesting that L/Cs denominated in Canadian Dollars, US Dollars, Euros or
Japanese yen be issued by RBC.
2.1.4 The aggregate amount of all outstanding Advances to the Borrower under the
Credits shall not at any time exceed the amount of the Borrowing Base at that
time.
2.2 REVOLVING CREDIT
The Credits are revolving credits and the principal amount of any Advance
under a Credit that is repaid may be reborrowed, if the Borrower is otherwise
entitled to an Advance under that Credit.
2.3 USE OF CREDITS
The Credits shall be used to assist in financing the general corporate
requirements of the Restricted Parties.
2.4 TERM AND REPAYMENT
The Credits shall be repaid in full and cancelled on or before 19 July
2005. If no Event of Default or Pending Event of Default has occurred and is
continuing, the
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Borrower may request that the maturity date of the Credits be extended by
successive one year periods in accordance with the following procedures:
2.4.1 The Borrower shall, if it wishes to extend the maturity date, make such
request to each Lender by written notice given to the Agent not earlier than 1
April nor later than 30 April in each year, after the forecasts contemplated in
Section 7.3.1(e) have been delivered to the Agent. Each Lender shall provide a
written response to such request to the Agent within 30 days after receiving the
request. If any Lender fails to respond, it shall be deemed to have declined to
grant any extension (and shall have no liability for failing to respond).
Promptly thereafter, the Agent will notify the Borrower of the response of the
Lenders, which notice shall include the names of all Lenders who declined or
were deemed to have declined to grant such extension (the "DECLINING LENDERS").
2.4.2 If all of the Lenders agree to extend the maturity date, the maturity date
shall be extended by one year from the then applicable maturity date.
2.4.3 If the aggregate amount of the Commitments in respect of all Lenders who
agree to extend the maturity date (the "ACCEPTING LENDERS") is less than or
equal to two-thirds of the aggregate Commitments in respect of the Credits of
all Lenders then in effect, the maturity date shall not be extended.
2.4.4 If the aggregate amount of the Commitments of the Accepting Lenders
exceeds two-thirds of the aggregate Commitments of all Lenders in respect of the
Credits then in effect, unless the Borrower elects not to extend the maturity
date by giving a further written notice to the Agent to that effect before the
then applicable maturity date, the maturity date shall be extended by one year
from the then applicable maturity date provided that the Borrower has, before
the then applicable maturity date, replaced or cancelled the Commitments in
respect of the Credits of all Declining Lenders in the following manner:
(a) the Borrower may negotiate an agreement with:
(i) one or more of the Accepting Lenders, or
(ii) one or more other financial institutions ("NEW LENDERS") which
have been identified by the Borrower (with the assistance of the
Agent, if requested) and which are acceptable to the Accepting
Lenders, acting reasonably,
to assume the Commitments of the Declining Lenders upon payment to the
Declining Lenders of all amounts owed to the Declining Lenders under
or in connection with the Credits, and in that event an assignment by
the Declining Lenders to the Accepting Lenders or the New Lenders will
be deemed to have occurred in accordance with the terms of the form of
Assignment Agreement; and
(b) to the extent the Commitments of the Declining Lenders have not been
fully assumed by the Accepting Lenders and the New Lenders pursuant to
paragraph (a) above, the Borrower shall cancel the Commitments of the
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Declining Lenders and pay to the Declining Lenders on the latest
maturity date to which the Declining Lenders have previously agreed,
all amounts owed to the Declining Lenders under or in connection with
the Credits, without penalty but subject to payment of any losses,
costs and expenses payable to the Declining Lenders pursuant to this
Agreement.
2.5 INTEREST RATES AND FEES
Interest rates on Prime Rate Advances, Base Rate Advances and LIBOR
Advances and the rates for calculation of Bankers' Acceptance Fees and L/C Fees
shall vary according to the Reference Debt Ratings. The rate for calculation of
Bankers' Acceptance Fees and L/C Fees shall be the Applicable Fee Rate per annum
from time to time in effect. Interest shall accrue and be payable on Prime Rate
Advances and Base Rate Advances at the Prime Rate and Base Rate, respectively,
per annum plus the Applicable Margin from time to time in effect. Interest shall
accrue and be payable on LIBOR Advances at the LIBO Rate per annum for the
applicable LIBOR Period plus the Applicable Margin from time to time in effect.
Any change in the Applicable Fee Rate or Applicable Margin shall take effect as
provided in the definitions of those terms.
Interest and fees for Credit 1 shall be promptly distributed by the Agent
to the Lenders based on their respective Proportionate Shares as adjusted in
accordance with Section 5.2. Subject to Section 5.1, interest for Credit 2 shall
be paid to RBC for its own account.
2.6 COMMITMENT FEE
The Borrower shall pay commitment fees based on the daily undrawn portion
of Credits 1 and 2, respectively, at the following rates, which shall vary
according to the percentage of the aggregate amount of the Credit which is drawn
and the Applicable Fee Rate from time to time:
Applicable Commitment Fee
Percentage which is Drawn (% of Applicable Fee Rate)
------------------------- --------------------------
< 33% 35%
33% to 66% 30%
>66% 25%
The commitment fee shall be calculated daily beginning on 19 July 2002 and
shall be payable quarterly in arrears on the third Business Day after the end of
each calendar quarter, with the first payment to be made on 3 October 2002.
Commitment fees for Credit 1 shall be promptly distributed by the Agent to the
Lenders based on their respective Proportionate Shares as adjusted in accordance
with Section 5.2. Subject to Section 5.1, commitment fees for Credit 2 shall be
paid to RBC for its own account.
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2.7 OTHER FEES
The Borrower shall also pay agency and other fees in respect of the Credits
to the Agent in accordance with the Fee Agreement and to TD and RBC in
accordance with the fee letters dated 10 May 2002 from those Lenders to the
Borrower.
2.8 EXISTING L/CS, BANKERS' ACCEPTANCES ETC.
2.8.1 The letters of credit listed on Schedule K, which were issued by RBC
before the date of this Agreement, shall be deemed to have been issued as L/Cs
and to be Advances under Credit 2, without any notice of Advance or payment of
any fee under this Agreement being required. The Borrower hereby confirms its
previous assumption of all debts, liabilities and obligations of NSCL under or
in connection with the letters of credit listed on Schedule K that were
originally issued for the account of NSCL.
2.8.2 The bankers' acceptances listed on Schedule K, which were accepted by
certain Lenders before the date of this Agreement, shall be deemed to have been
accepted as Bankers' Acceptances and to be Advances under Credit 1 (or Credit 2
in the case of those accepted by RBC), without any notice of Advance or payment
of any fee under this Agreement being required. The parties acknowledge that,
until the maturity of those Bankers' Acceptances, the Lenders under Credit 1 may
have Advances outstanding that are not in accordance with their Commitments. No
attempt will be made to make compensating adjustments in respect of future
Advances under Credit 1, but payments in respect of Credit 1 shall be made based
on the actual amounts outstanding rather than Commitments.
2.8.3 All "Advances" (as defined in the credit agreement dated as of 14 August
2001 to which certain of the parties to this Agreement are also party) made by
RBC under "Operating Credit 2" (as defined in this Agreement) that are
outstanding on the date of the initial Advance under this Agreement shall be
deemed to be Advances under Credit 2.
2.9 EXCHANGE RATE AND BORROWING BASE FLUCTUATIONS
If fluctuations in rates of exchange in effect between US Dollars and Cdn.
Dollars cause the amount of Advances (expressed in Cdn. Dollars) under a Credit
to exceed the maximum amount of that Credit permitted herein by three percent or
more at any time, the Borrower shall immediately pay the Lenders such amount as
is necessary to repay the excess. If the amount of Advances outstanding to the
Borrower under the Credits exceeds the amount of the Borrowing Base at that
time, the Borrower shall immediately pay the Lenders such amount as is necessary
to repay the excess. If the Borrower is unable to immediately pay any amount
under this Section because LIBOR Periods have not ended or Bankers' Acceptances
have not matured, the Borrower shall immediately post Collateral with the Agent
in the amount of the excess, which shall form part of the Security for the
Obligations and be held until the amount of the excess is paid in full or is
less than three percent in the case of a fluctuation in rates of exchange. If,
on the date of any Advance under a Credit (whether by rollover, conversion or
otherwise), the amount of Advances (expressed in Cdn. Dollars) under that Credit
exceeds the maximum amount of that Credit permitted herein because of
fluctuations in rates of exchange, the Borrower shall
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immediately pay the Lenders the excess and shall not be entitled to any Advance
that would result in the amount of that Credit being exceeded.
ARTICLE III
SECURITY
3.1 SECURITY
3.1.1 The Security includes the following, all in form and substance
satisfactory to the Lenders and subject only to Permitted Encumbrances:
(a) a $5,000,000,000 trust deed granted by each Restricted Party in favour
of the Trustee, secured by a fixed charge over all freehold and
leasehold real property and all equipment and a security interest and
floating charge over all other Property, together with such other
documents as the Lenders may require from time to time to charge
Property located outside of British Columbia;
(b) debentures issued under each trust deed and pledged in favour of the
Agent for the benefit of the Lenders;
(c) pledges in favour of the Trustee of all Capital Stock of the
Restricted Parties other than NSCL that are owned by the Restricted
Parties (including NSCL) from time to time;
(d) pledges in favour of the Trustee of all Capital Stock of persons other
than Restricted Parties that are owned by the Restricted Parties from
time to time;
(e) specific assignments by way of security of Material Contracts that
have been given by the relevant Restricted Parties in favour of the
Trustee before the date of this Agreement;
(f) further specific assignments in favour of the Trustee of those
Material Contracts that are designated by the Agent from time to time
after Permitted Senior Secured Indebtedness has been incurred in an
aggregate principal amount of $100,000,000 or more;
(g) a general assignment by way of security of all Material Contracts
(without any requirement that they be individually listed), to be
given in favour of the Trustee by each Restricted Party designated by
the Agent from time to time;
(h) unconditional guarantees of the Obligations by each of the Restricted
Parties, excluding the Borrower, which shall be unlimited except for
limits imposed by applicable law.
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3.1.2 Notwithstanding the foregoing, but subject to compliance with Sections
7.5.3(d) and 7.5.3(e), the Restricted Parties shall not be required to deliver
Security documents in a form customarily used in jurisdictions outside Canada
and the United States or arrange registrations of the Security outside Canada
and the United States as a condition precedent to the initial Advance under this
Agreement, but shall cause such documents to be delivered before the thresholds
specified in Sections 7.5.3(d) and 7.5.3(e) are exceeded, together with all
opinions and supporting documents that the Agent reasonably requires. For
greater certainty, all Restricted Parties shall deliver all other documents
contemplated in Section 3.1.1.
3.1.3 Except for the companies listed in Schedule I (other than any Restricted
Parties), if at any time NSCL owns, establishes or acquires a Subsidiary that is
wholly owned by NSCL, directly or indirectly, NSCL shall immediately cause that
Subsidiary to become a Restricted Party, adopt this Agreement by delivering an
agreement in the form of Schedule B so as to be bound by all of the terms
applicable to Restricted Parties as if it had executed this Agreement as a
Restricted Party, and deliver a guarantee and other security documents similar
to those delivered by other Restricted Parties, which shall become part of the
Security. NSCL shall also deliver or cause the delivery of a pledge of all of
the Capital Stock of the new Subsidiary as part of the Trustee Security and
cause the delivery of such legal opinions and other supporting documents as the
Agent may reasonably require.
3.1.4 Notwithstanding the preceding paragraph, a wholly owned Subsidiary not
owned at the date of this Agreement shall not be required to become a Restricted
Party if:
(a) it is established, acquired and/or invested in using solely the
proceeds of Capital Stock issued by NSCL or Permitted Unsecured
Indebtedness; or
(b) it is established, acquired and/or invested in using proceeds of
Advances and the aggregate amount of proceeds of Advances used to
establish, acquire and/or invest in all such Subsidiaries during any
period of 36 consecutive months does not exceed (i) $100,000,000 if
any Permitted Senior Secured Indebtedness or Permitted Subordinated
Secured Indebtedness is outstanding or (ii) $250,000,000 if no
Permitted Senior Secured Indebtedness or Permitted Subordinated
Secured Indebtedness is outstanding and if no Restricted Party is
providing any guarantee (or other financial assistance which may
result in an obligation to make disbursements in an aggregate amount
exceeding $5,000,000) relating to any obligations of any such
Subsidiary; the limits of $100,000,000 and $250,000,000 shall be
increased to the extent that the Restricted Parties actually receive
cash dividends or other cash returns on their investments in such
Subsidiaries during the 36 month period and use the cash dividends or
other cash returns to repay the Credits.
For greater certainty, if a wholly-owned Subsidiary is established,
acquired and/or invested in using proceeds of Permitted Senior Secured
Indebtedness or Permitted Subordinated Secured Indebtedness, NSCL must
immediately comply with Section 3.1.3.
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3.1.5 NSCL shall cause a pledge in form satisfactory to the Agent of the Capital
Stock of any wholly owned Subsidiary that does not become a Restricted Party as
permitted by Section 3.1.4 to be delivered as part of the Security if the
aggregate amount used to establish, acquire and/or invest in all such
Subsidiaries during any period of 36 consecutive months exceeds $100,000,000.
The limit of $100,000,000 shall be increased to the extent that the Restricted
Parties actually receive cash dividends or other cash returns on their
investments in such Subsidiaries during the 36 month period and use the cash
dividends or other cash returns to repay the Credits. If the shareholder of any
such Subsidiary is itself not a Restricted Party, the pledge shall be without
recourse to the other Property of the shareholder.
3.1.6 If at any time any Restricted Party owns or obtains an interest in a
person that is not a wholly owned Subsidiary, other than Xxxxxx River Energy
Inc. or Xxxxxx River Energy LP, NSCL shall cause that interest to immediately be
pledged as part of the Trustee Security and cause the delivery of such legal
opinions and other supporting documents as the Agent may reasonably require.
3.1.7 If at any time all of the Capital Stock of a Restricted Party other than
the Borrower or NSCL is sold in accordance with the terms of this Agreement,
other than to another Restricted Party, then if no Event of Default or Pending
Event of Default has occurred and is continuing, the Restricted Party of which
the Capital Stock has been sold and any wholly-owned Subsidiary thereof that is
a Restricted Party shall, on request by NSCL, cease to be a Restricted Party and
the Agent shall deliver or direct the Trustee to deliver such releases of the
Security, including guarantees, as may reasonably be required to release the
obligations of those Restricted Parties. The Agent shall also discharge any
Security (or direct the Trustee to do so) to the extent necessary to allow any
Restricted Party to complete any sale or other disposition of Property permitted
by this Agreement.
3.1.8 Before incurring Permitted Senior Secured Indebtedness in an aggregate
principal amount of $100,000,000 during the term of this Agreement, NSCL shall
prepare and submit to the Agent for its approval (acting reasonably, after
consultation with counsel, but without any requirement to seek approval of the
Majority Lenders) a list of all of the then-existing Material Contracts. The
list shall be in a form similar to the lists prepared in connection with the
credit agreement dated as of 14 August 2001 to which NSCL, the Agent and others
were parties, it being acknowledged that NSCL has stated it considers certain
Contracts on those lists would not, in fact, qualify as Material Contracts and
that the contents of the existing lists shall not be determinative of the
content of the new list. Without limitation, the list shall be separated into
Part A, being the most important Material Contracts, which are referred to in
this Agreement as "SPECIAL MATERIAL CONTRACTS" and Part B, being the remainder.
The separation shall be done on a basis consistent with the separation of
Material Contracts in the lists prepared in connection with the credit agreement
dated as of 14 August 2001. Before incurring Permitted Senior Secured
Indebtedness in an aggregate principal amount of $100,000,000 during the term of
this Agreement, NSCL shall also (i) deliver specific assignments in favour of
the Trustee of those Material Contracts that are designated by the Agent which
have not already been specifically assigned, (ii) obtain agreements from other
parties to Special Material Contracts that have been specifically assigned if
agreements from those parties have not already been
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obtained and (iii) diligently and in good faith use all commercially reasonable
efforts (both before and after incurring Permitted Senior Secured Indebtedness)
to obtain agreements from other parties to other Material Contracts that have
been specifically assigned if agreements from those parties have not already
been obtained.
3.2 OBLIGATIONS SECURED BY THE TRUSTEE SECURITY
3.2.1 Debentures shall be issued by the Restricted Parties under their
respective trust deeds and pledged to the Agent to secure:
(a) the Obligations that (taking into account other obligations described
in Section 7.7.2 that must be accounted for in determining whether the
Threshold Amount has been exceeded) do not exceed the Threshold
Amount;
(b) the Other Secured Obligations that are classified by NSCL as being
incurred under clauses (v) and (vi) of the definition of "Permitted
Indebtedness" in the 0000 Xxxxxxxxx and the definition of "Permitted
Debt" in the 2001 Indenture (including guarantees by Restricted
Parties of those Other Secured Obligations as incurred by other
Restricted Parties);
(c) the Other Secured Obligations not mentioned in item (b) above that
(taking into account other obligations described in Section 7.7.2 that
must be accounted for in determining whether the Threshold Amount has
been exceeded) do not exceed the Threshold Amount;
equally and ratably with each other and with any Permitted Senior Secured
Indebtedness but in priority to any other debts, liabilities and obligations
secured by the Trustee Security.
Out of an abundance of caution (recognizing that the Restricted Parties are
not permitted to do anything that would result in the holders of the 1999 Notes
or the 2001 Notes becoming entitled to be secured), further debentures shall be
issued by the Restricted Parties under their respective trust deeds and pledged
to the Agent to secure the Obligations and the Other Secured Obligations not
mentioned in item (b) above that exceed the Threshold Amount, equally and
ratably with the debts, liabilities and obligations of the Restricted Parties
under or in connection with the 1999 Notes and/or the 2001 Notes if the 1999
Notes and/or the 2001 Notes are required to be secured under their terms.
As between the Lenders, all Obligations shall rank equally and ratably with
each other notwithstanding that different Obligations may be designated as
having been incurred with reference to different provisions of the 1999
Indenture and the 2001 Indenture which might otherwise imply that different
Obligations have different rankings. Each Lender shall (and hereby absolutely,
unconditionally and irrevocably agrees to) do all such things, including
delivery of indemnity agreements and assignments to other Lenders of Advances
made by those Lenders as shall be required to ensure that result. Any such
action on the part of the Lenders shall be binding on the Borrower. If any
Lender fails to take the actions required under this Section, the Agent may,
without prejudice to the other rights of the Lenders, make such adjustments to
the payments to the defaulting Lender under this
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Agreement as are necessary to compensate the other Lenders for the defaulting
Lender's failure.
Further debentures may be issued by a Restricted Party under its trust deed
and pledged to another Restricted Party to secure debts, liabilities and other
obligations to the other Restricted Party as long as the debentures are
subordinate to all debentures pledged to secure the Obligations and the Other
Secured Obligations and are assigned to the Agent as additional security for the
Obligations up to the Threshold Amount.
Subject to the other terms of this Agreement, further debentures may be
issued by a Restricted Party under its trust deed and pledged to secure
Permitted Senior Secured Indebtedness. Any debentures issued and pledged for
that purpose may rank equally and ratably as to proceeds of enforcement of
security with debentures issued and pledged to secure the Obligations and the
Other Secured Obligations, but shall be designated as "Ratable Debentures" under
the respective trust deeds.
Subject to the other terms of this Agreement, further debentures may be
issued by a Restricted Party under its trust deed and pledged to secure
Permitted Subordinated Secured Indebtedness. Any debentures issued and pledged
for that purpose must rank junior in all respects to debentures issued and
pledged to secure the Obligations and the Other Secured Obligations.
3.2.2 For the purposes of section 4.06 of each of the 1999 Indenture and the
2001 Indenture:
(a) Advances by way of L/Cs are hereby classified by NSCL as being
incurred under clause (xi) of the definition of "Permitted
Indebtedness" in the 0000 Xxxxxxxxx and the definition of "Permitted
Debt" in the 2001 Indenture until all amounts permitted to be incurred
under those clauses from time to time have been incurred, thereafter
under clause (i) of the respective definitions until all amounts
permitted to be incurred under those clauses from time to time have
been incurred, and finally under clause (ix) of the respective
definitions until all amounts permitted to be incurred under those
clauses from time to time have been incurred;
(b) Advances other than by way of L/Cs are hereby classified by NSCL as
being incurred under clause (i) of the definition of "Permitted
Indebtedness" in the 0000 Xxxxxxxxx and the definition of "Permitted
Debt" in the 2001 Indenture until all amounts permitted to be incurred
under those clauses from time to time have been incurred, and
thereafter under clause (ix) of the respective definitions until all
amounts permitted to be incurred under those clauses from time to time
have been incurred.
If NSCL incurs Permitted Senior Secured Indebtedness, Permitted
Subordinated Secured Indebtedness or Permitted Unsecured Indebtedness on terms
that require the classification of Advances, NSCL shall do so on a basis that is
approved by the Agent as being consistent with the classifications provided for
above. All classifications are
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irrevocable without the consent of the Agent acting reasonably, after
consultation with counsel, but without any requirement to seek approval of the
Majority Lenders.
If any Advance is within the Threshold Amount at the time it is made and
thereby entitled to be secured in priority to the 1999 Notes and the 2001 Notes,
it shall remain entitled to that priority notwithstanding any subsequent
diminution of the Threshold Amount. If any repayment is made under a Credit, it
shall be deemed to have first been made in respect of any Advance that was not
within the Threshold Amount at the time it was made, and shall only be made in
respect of any Advance that was within the Threshold Amount at the time it was
made if no other Advances are then outstanding under that Credit.
3.2.3 If the Obligations other than outstanding Bankers' Acceptances and/or L/Cs
have been indefeasibly paid in full, the Lenders will release their interest in
the Security upon receiving Collateral to secure the remaining Obligations, in
an amount satisfactory to the respective Lenders, acting reasonably.
3.2.4 As of the date of this Agreement, Lenders have entered into the
Derivatives with Restricted Parties which are listed in Schedule H and are Other
Secured Obligations. Lenders, or affiliates (as defined in the Canada Business
Corporations Act) of Lenders, may during the term of this Agreement enter into
further Derivatives with Restricted Parties, which shall be Other Secured
Obligations if they fall within the definition of Other Secured Obligations.
For the purposes of section 4.06 of the each of the 1999 Indenture and the
2001 Indenture:
(a) the Other Secured Obligations referred to in Section 1.1.79(a) are
hereby classified by NSCL as being incurred under clause (vi) of the
definition of "Permitted Indebtedness" in the 0000 Xxxxxxxxx and the
definition of "Permitted Debt" in the 0000 Xxxxxxxxx;
(b) the Other Secured Obligations referred to in Section 1.1.79(b) are
hereby classified by NSCL as being incurred under clause (v) of the
definition of "Permitted Indebtedness" in the 0000 Xxxxxxxxx and the
definition of "Permitted Debt" in the 2001 Indenture;
(c) the Other Secured Obligations referred to in Section 1.1.79(c) are
hereby classified by NSCL as being incurred under clause (i) of the
respective definitions until all amounts permitted to be incurred
under those clauses from time to time have been incurred and
thereafter under clause (ix) of the respective definitions until all
amounts permitted to be incurred under those clauses from time to time
have been incurred;
(d) the Other Secured Obligations referred to in Sections 1.1.79(d) and
1.1.79(e) are hereby classified by NSCL as being incurred under clause
(i) of the definition of "Permitted Indebtedness" in the 0000
Xxxxxxxxx and the definition of "Permitted Debt" in the 2001 Indenture
until all amounts permitted to be incurred under those clauses from
time to time have been
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incurred and thereafter under clause (ix) of the respective
definitions until all amounts permitted to be incurred under those
clauses from time to time have been incurred.
If NSCL incurs Permitted Senior Secured Indebtedness, Permitted
Subordinated Secured Indebtedness or Permitted Unsecured Indebtedness on terms
that require the classification of Other Secured Obligations, NSCL shall do so
on a basis that is approved by the Agent as being consistent with the
classifications provided for above. All classifications are irrevocable without
the consent of the Agent acting reasonably, after consultation with counsel, but
without any requirement to seek approval of the Majority Lenders.
The Agent shall from time to time prepare and provide the Lenders and NSCL
with a revision of Schedule H to reflect changes in the Other Secured
Obligations, but the Agent's failure to do so shall not affect the security for
the Other Secured Obligations if the relevant Derivatives fall within the
definition of Other Secured Obligations. Derivatives that fall within the
definition of Other Secured Obligations shall be conclusively deemed to be
secured by the Trustee Security (in the absence of manifest error) and shall not
cease to be secured without the prior written consent of the respective holders
of the Other Secured Obligations. If the Obligations have been indefeasibly paid
in full, the holders of the Other Secured Obligations will release their
interest in the Security upon receiving Collateral to secure the Other Secured
Obligations, in an amount satisfactory to the respective holders, acting
reasonably.
Notwithstanding the rights of holders of Other Secured Obligations to
benefit from the Trustee Security in respect of the Other Secured Obligations,
all decisions concerning the Trustee Security and the enforcement thereof shall
be made by the Lenders or the Majority Lenders in accordance with this
Agreement. No holder of Other Secured Obligations from time to time shall have
any additional right to influence the Trustee Security or the enforcement
thereof as a result of holding Other Secured Obligations as long as this
Agreement remains in force and the Agent shall vote any debentures issued under
the Trustee Security and pledged to secure the Other Secured Obligations in the
same manner as the debentures pledged to secure the Obligations. However, the
Other Secured Obligations shall continue to be secured by the Trustee Security
notwithstanding the termination of this Agreement by reason of payment of the
Credits, or for any other reason. After the termination of this Agreement,
decisions concerning the Trustee Security shall be made by the holders of Other
Secured Obligations as they may determine among themselves.
3.3 CONSENT TO ASSIGNMENT OF CONTRACTS
Each Restricted Party that is a party to any Contract with, or that has
issued any instrument in favour of, any other Restricted Party or Restricted
Parties hereby acknowledges that the rights of the other Restricted Party or
Restricted Parties are charged by the Trustee Security, consents to the granting
of the Trustee Security and agrees that the Trustee shall be entitled to enforce
the Trustee Security in accordance with the terms thereof.
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ARTICLE IV
DISBURSEMENT CONDITIONS
4.1 CONDITIONS PRECEDENT TO INITIAL ADVANCE
The following conditions precedent must be satisfied at or before the time
of the first Advance under this Agreement, unless waived in accordance with
Section 9.7.2. Where delivery of documents is referred to, the documents shall
be delivered to the Agent, for and on behalf of the Lenders, and shall be in
full force and effect and in form and substance satisfactory to the Lenders.
4.1.1 OTHER DEBT AND ENCUMBRANCES - The Agent shall have received:
(a) evidence that NSCL has completed an issuance of Capital Stock for
gross proceeds of not less than $150,000,000 and has used the net
proceeds to permanently repay Debt under existing credit facilities;
(b) evidence that all existing credit facilities (including but not
limited to those established under the credit agreement dated as of 14
August 2001 to which certain of the parties to this Agreement are also
party) and other Debt of the Restricted Parties not forming part of
Permitted Obligations have been or will be paid and performed in full
and cancelled concurrently with the first Advance (except to the
extent they are secured by L/Cs as contemplated in Section 5.23) and
that all security held in connection therewith has been or will be
promptly released;
(c) releases, discharges and postponements (in registrable form where
appropriate) covering all Encumbrances affecting the collateral
Encumbered by the Security which are not Permitted Encumbrances, and
all statements and acknowledgments that are reasonably required in
respect of other security interests affecting the Property of the
Restricted Parties or other parties delivering Security to confirm
that the collateral Encumbered by those Encumbrances does not include
the collateral Encumbered by the Security or is a Permitted
Encumbrance;
(d) a certificate of NSCL with copies of the 1999 Indenture, the 2001
Indenture and any other documents necessary to fully and fairly
disclose all material terms of the 1999 Notes and 2001 Notes.
4.1.2 FINANCIAL INFORMATION - The Agent shall have received:
(a) a certificate of NSCL containing its audited consolidated financial
statements for its fiscal period ended 31 December 2001 and its
unaudited consolidated financial statements for its fiscal period
ended 31 March 2002;
(b) a Compliance Certificate from NSCL for the fiscal period ended 31
March 2002;
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(c) a current Borrowing Base Certificate.
4.1.3 SECURITY AND OTHER DOCUMENTS - The Agent shall have received:
(a) duly executed copies of this Agreement and the Security, duly
registered as required;
(b) certificates representing the Pledged Shares, and executed stock
powers of attorney relating to those certificates;
(c) certificates of insurance or other evidence that the covenants and
conditions of the Credit Documents concerning insurance coverage are
being complied with;
(d) the Fee Agreement;
(e) agreements from other parties to Material Contracts that have then
been specifically assigned as part of the Trustee Security (it being
understood that such agreements have previously been delivered and
that no additional agreements will be delivered as a condition of the
initial Advance).
4.1.4 CORPORATE AND OTHER INFORMATION - The Agent shall have received:
(a) a certificate of each Restricted Party with copies of its Constating
Documents, a list of its officers and directors with specimens of the
signatures of those who are executing Credit Documents on its behalf,
and copies of the corporate proceedings taken to authorize it to
execute, deliver and perform its obligations under the Credit
Documents;
(b) evidence that the delivery of Credit Documents will not contravene
laws governing financial assistance or other similar laws which affect
the Credit Documents;
(c) evidence that the delivery of Credit Documents will not contravene any
material covenants or agreements to which any Restricted Party is a
party;
(d) consents that are required from the directors, shareholders or
partners of the Restricted Parties, either in connection with the
pledges of Pledged Shares or in connection with any disposition of the
Pledged Shares pursuant to the Trustee Security (it being understood
that consents previously delivered to the Trustee need not be
delivered again).
4.1.5 OPINIONS - The Agent shall have received:
(a) the opinion of Xxxxxx Xxxxxx Xxxxxxx LLP, counsel to the Lenders,
addressed to the Agent and the Lenders;
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(b) the opinion of Xxxxxx Xxxxxxx, Canadian counsel to the Restricted
Parties, addressed to the Agent, the Lenders and Xxxxxx Xxxxxx Xxxxxxx
LLP;
(c) the opinion of Shearman & Sterling, US counsel to the Restricted
Parties, addressed to the Agent and the Lenders;
(d) the opinions of local counsel, addressed to the Agent, the Lenders and
Xxxxxx Xxxxxx Xxxxxxx LLP.
4.1.6 OTHER MATTERS - The following conditions must also be satisfied:
(a) the Lenders must have received a certificate of NSCL, and otherwise be
satisfied, that no Material Adverse Change has occurred since 31 March
2002;
(b) the Agent shall have received satisfactory evidence that NSCL has
obtained a Reference Debt Rating from each of Moody's and S&P that
expressly contemplates the issuance of Capital Stock on a basis
consistent with this Agreement and have received satisfactory written
or verbal confirmation from each of them that they do not intend to
amend their Reference Debt Ratings;
(c) the Agent shall have received payment of all fees owing to the Agent,
the Lenders, or any of them and reimbursement of all expenses
incurred, including but not limited to legal fees, in each case up to
the time of the initial Advance;
(d) the Agent shall have received such other documents as the Lenders may
reasonably require.
4.1.7 DEADLINE FOR ADVANCE
The initial Advance under the Credits must be made on or before 19 July
2002, failing which the Credits may be terminated at the option of any of the
Lenders unless, before that date, other persons identified by the Borrower and
satisfactory to the remaining Lenders have agreed to become Lenders in place of
those Lenders who are unwilling to continue beyond that date.
4.2 CONDITIONS PRECEDENT TO ALL ADVANCES
The obligation of the Lenders to make any Advance is subject to the
conditions precedent that:
(a) no Event of Default or (except in the case of a conversion of a LIBOR
Advance into a Base Rate Advance, the conversion of a Bankers'
Acceptance to a Prime Rate Advance or an Advance for the purpose of
paying a demand under an L/C) Pending Event of Default has occurred
and is continuing on the Drawdown Date, or would result from making
the
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Advance, and without limiting the foregoing, all representations and
warranties of the Restricted Parties contained in this Agreement,
other than those expressly stated to be made as of a specific date,
are true on and as of the date of the Advance;
(b) the Advance is in compliance with the terms of the 1999 Notes, 2001
Notes, Permitted Senior Secured Indebtedness, Permitted Subordinated
Secured Indebtedness and Permitted Unsecured Indebtedness, to the
extent they are outstanding (including but not limited to any
limitation on additional indebtedness contained in the documentation
relating to the 1999 Notes, 2001 Notes, Permitted Senior Secured
Indebtedness, Permitted Subordinated Secured Indebtedness or Permitted
Unsecured Indebtedness) and will not contravene or cause a default
under any of the terms of the 1999 Notes, 2001 Notes, Permitted Senior
Secured Indebtedness, Permitted Subordinated Secured Indebtedness and
Permitted Unsecured Indebtedness;
(c) the Advance would not result in the holders of the 1999 Notes or the
2001 Notes becoming entitled to be secured;
(d) the Advance would not result in the holders of any other unsecured
Debt outstanding at any time becoming entitled to be secured unless
the unsecured Debt, if secured, would constitute Permitted Senior
Secured Indebtedness or Permitted Subordinated Secured Indebtedness;
(e) the Agent has received timely notice as required under Section 5.6;
(f) all other terms and conditions of this Agreement upon which an Advance
may be obtained are fulfilled.
ARTICLE V
ADVANCES
5.1 LENDERS' OBLIGATIONS RELATING TO CREDITS 1 AND 2
Notwithstanding that Advances under Credit 2 are for the time being made by
RBC and its participation in Advances under Credit 1 is reduced, and the
participation of the other Lenders is increased, in accordance with Section 5.2,
it is the intention of the parties that the ultimate credit risk and exposure of
any Lender in respect of the Credit (including in respect of L/Cs issued under
Credit 2) be in accordance with its Proportionate Share of the entire amount of
the Credit. Accordingly, upon the Obligations becoming due and payable under
Section 8.2, each Lender shall (and hereby absolutely, unconditionally and
irrevocably agrees to) do all such things, including delivery of indemnity
agreements and assignments to other Lenders of Advances made by RBC under Credit
2 or assignments to RBC of Advances made by other Lenders under Credit 1 as
shall be required to ensure that result. Any such action on the part of the
Lenders shall be binding on the Borrower.
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If any Lender fails to take the actions required under this Section, the
Agent may, without prejudice to the other rights of the Lenders, make such
adjustments to the payments to the defaulting Lender under this Agreement as are
necessary to compensate the other Lenders for the defaulting Lender's failure.
5.2 ADJUSTMENT OF PROPORTIONATE SHARES FOR SPECIFIC CREDITS
While RBC is the sole Lender making Advances under Credit 2, its
participation in Advances and payments (including commitment fees) under Credit
1 shall be reduced or eliminated and shall be adjusted by the Agent from time to
time, having regard to the maximum principal amounts of the Credits and the
overall Commitment of RBC to the Credits, so that RBC's separate Proportionate
Shares of Credits 1 and 2 reflect its overall Proportionate Share of the
Credits. The Agent shall amend Schedule E to this Agreement from time to time to
reflect such adjustments and notify NSCL and all affected Lenders of the
amendment.
5.3 EXCEPTIONS REGARDING PARTICULAR CREDITS
Subject to the provisions of Section 5.1 regarding the assignment of
interests under Credit 2 in the event of acceleration of payment of the
Obligations, the provisions of this Agreement do not apply to Credit 2 to the
extent that the provisions contemplate the participation in Advances and
payments under Credit 2 by any Lender other than RBC. All Advances under Credit
2 shall be made solely by RBC and records concerning Advances shall be
maintained solely by RBC, but RBC shall provide information concerning such
Advances to the Agent from time to time upon request. All payments of principal,
interest, fees and other amounts relating to Credit 2 shall be made solely to
RBC. In addition, any notices by the Borrower in connection with Credit 2 shall
be made to RBC, and notice and minimum amount requirements for Advances shall
not apply to Advances by way of overdraft under Credit 2.
In connection with Advances by way of overdraft, RBC shall ascertain the
positions or net positions of the Borrower's Canadian Dollar and US Dollar
accounts daily and, if the positions or net positions are debits in favour of
RBC, the debits will (if the Borrower is entitled to an Advance) be deemed to be
a Prime Rate Advance (in the case of Canadian Dollars) or a Base Rate Advance
(in the case of US Dollars) under Credit 2 in the respective amounts of the
debits. If the positions or net positions are credits in favour of the Borrower,
the credits will be deemed to be repayments of Prime Rate Advances (in the case
of Canadian Dollars) or Base Rate Advances (in the case of US Dollars) under
Credit 2 in the respective amounts of the credits.
5.4 EVIDENCE OF INDEBTEDNESS
The Obligations resulting from Prime Rate Advances, Base Rate Advances and
LIBOR Advances made by the Lenders shall be evidenced by records maintained by
the Agent, and by each Lender concerning those Advances it has made. The Agent
shall also maintain records of the Obligations resulting from Advances by way of
Bankers' Acceptances and L/Cs, and each Lender shall also maintain records
relating to Bankers' Acceptances that it has accepted. The Issuing Bank shall
also maintain records relating to
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L/Cs that it has issued. The records maintained by the Agent, and by the Issuing
Bank relating to L/Cs, shall constitute, in the absence of manifest error,
conclusive evidence of the Obligations and all details relating thereto. The
failure of the Agent or any Lender to correctly record any such amount or date
shall not, however, adversely affect the obligation of the Borrower to pay the
Obligations in accordance with this Agreement.
5.5 CONVERSIONS
Subject to the other terms of this Agreement (including notice
requirements), the Borrower may from time to time convert all or any part of the
outstanding amount of any Advance into another form of Advance permitted by this
Agreement. A conversion does not, however, constitute a new advance of funds by
any Lender, but only an adjustment of the basis on which interest payable to the
Lenders will be calculated.
5.6 NOTICE OF ADVANCES AND PAYMENTS
The Borrower shall give the Agent irrevocable written notice, in the form
attached as Schedule A to this Agreement, of any request for any Advance to it
under the Credits. The Borrower shall also give the Agent irrevocable written
notice in the same form of any payment by it (whether resulting from repayment,
prepayment, rollover or conversion) of any Advance under the Credits.
Notice shall be given on or before the third Business Day (but not earlier
than the fifth Business Day) prior to the date of any Advance or payment, except
that notice shall be given in respect of an Advance by way of L/C at such
earlier time as the Issuing Bank may reasonably require so that it has
sufficient time to review the proposed form of L/C, and except that notice in
respect of a Prime Rate Advance, Base Rate Advance or payment thereof may be
given on the Business Day before any such Advance or payment. Any cancellation
of part or all of any Credit shall only be effective on three Business Days'
notice as required by Section 5.7.
Notices shall be given not later than 1:00 p.m. (Toronto time) on the date
for notice. Payments (other than those being made solely from the proceeds of
rollovers and conversions) must be made prior to 1:00 p.m. (Toronto time) on the
date for payment. If a notice or payment is not given or made by those times, it
shall be deemed to have been given or made on the next Business Day, unless all
Lenders affected by the late notice or payment agree, in their sole discretion,
to accept a notice or payment at a later time as being effective on the date it
is given or made.
5.7 PREPAYMENTS AND REDUCTIONS
Subject to giving notice required by Section 5.6 and to the other
provisions of this Agreement, the Borrower may from time to time repay Advances
outstanding under any Credit without penalty, except that (i) LIBOR Advances may
not be paid prior to the end of the applicable LIBOR Periods unless the Borrower
indemnifies the Lenders for any loss or expense that the Lenders incur as a
result, including any breakage costs and (ii) Bankers' Acceptances may not be
paid prior to their respective maturity dates.
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The Borrower may from time to time, by giving not less than three Business
Days' express written notice to the Agent and paying all accrued and unpaid
commitment fees to the effective date of cancellation, irrevocably notify the
Agent of the cancellation in whole or in part of the undrawn amount of any
Credit by an amount which shall be a minimum of $1,000,000 and a whole multiple
of $100,000, or the equivalent thereof in US Dollars. The Borrower shall have no
right to any increase in the committed amount of that Credit thereafter.
5.8 PRIME RATE, BASE RATE AND LIBOR ADVANCES
Upon timely fulfilment of all applicable conditions as set forth in this
Agreement, the Agent, in accordance with the procedures set forth in Section
5.11, will make the requested amount of a Prime Rate Advance, Base Rate Advance
or LIBOR Advance available to the Borrower on the Drawdown Date requested by the
Borrower by transferring such amount to the Designated Account. Each Prime Rate
Advance shall be in an aggregate minimum amount of $1,000,000 and in a whole
multiple of $100,000. Each Base Rate Advance shall be in an aggregate minimum
amount of US $1,000,000 and in a whole multiple of US $100,000. Each LIBOR
Advance shall be in minimum amount of US $1,000,000 and a whole multiple of US
$100,000. The Borrower shall pay interest to the Agent for the account of the
Lenders at the Branch of Account on any such Advances outstanding to it from
time to time hereunder at the applicable rate of interest specified in Section
2.5.
Interest on Prime Rate Advances and Base Rate Advances shall be payable
monthly on each Interest Payment Date. Interest on LIBOR Advances shall be
payable on the last day of the applicable LIBOR Period and, if the LIBOR Period
is longer than three months, every three months after the date of the relevant
LIBOR Advance. All interest shall accrue from day to day and shall be payable in
arrears for the actual number of days elapsed from and including the date of
Advance or the previous date on which interest was payable, as the case may be,
to but excluding the date on which interest is payable, both before and after
maturity, default and judgment, with interest on overdue interest at the same
rate payable on demand. Overdue interest with respect to a LIBOR Advance shall,
upon the expiry of the LIBOR Period applicable to such LIBOR Advance, bear
interest, payable on demand, calculated at the rates applicable to Base Rate
Advances.
Interest calculated with reference to the Prime Rate shall be calculated
monthly on the basis of a calendar year. Interest calculated with reference to
the Base Rate shall be calculated monthly on the basis of a year of 365 days.
Interest calculated with reference to the LIBO Rate shall be calculated on the
basis of a year of 360 days for a term equal to the applicable LIBOR Period or,
if a LIBOR Period is longer than three months, every three months. Each rate of
interest which is calculated with reference to a period (the "DEEMED INTEREST
PERIOD") that is less than the actual number of days in the calendar year of
calculation is, for the purposes of the Interest Act (Canada), equivalent to a
rate based on a calendar year calculated by multiplying such rate of interest by
the actual number of days in the calendar year of calculation and dividing by
the number of days in the deemed interest period.
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5.9 LIBOR PERIODS
The Borrower may select, by irrevocable notice to the Agent, LIBOR Periods
of one, two, three or six months to apply to any particular LIBOR Advance,
provided that the Agent, in circumstances of market disruption or illiquidity,
shall have the discretion to restrict the LIBOR Period. LIBOR Periods of other
lengths shall also be available at the discretion of the Lenders from time to
time. No LIBOR Period may end on a date which is not a Business Day or on a date
which is later than the date on which the principal amount of any Credit is
required to be reduced (in whole or in part) if that would adversely affect the
Borrower's ability to cause the reduction of the Credit in question. The
Borrower shall from time to time select and give notice to the Agent of the
LIBOR Period for a LIBOR Advance which shall commence upon the making of the
LIBOR Advance or at the expiry of any outstanding LIBOR Period applicable to a
LIBOR Advance that is being rolled over. If the Borrower fails to select and
give the Agent notice of a LIBOR Period for a LIBOR Advance in accordance with
Section 5.6, the Lenders shall be deemed to have made a Base Rate Advance to the
Borrower to replace the maturing LIBO Rate Advance. A rollover of a LIBOR
Advance does not constitute a new advance of funds by the Lenders, but rather an
adjustment of the basis on which interest is charged.
5.10 TERMINATION OF LIBOR ADVANCES
If at any time a Lender determines in good faith and on reasonable grounds
(which determination shall be conclusive and binding on the Borrower) that:
(a) adequate and reasonable means do not exist for ascertaining the LIBO
Rate applicable to a LIBOR Advance;
(b) the LIBO Rate does not adequately reflect the effective cost to the
Lender of making or maintaining a LIBOR Advance, except as a result of
the Lender failing to obtain a deposit in the amount and for the term
of the LIBOR Advance; or
(c) it cannot readily obtain or retain funds in the London interbank
market in order to fund or maintain any LIBOR Advance or cannot
otherwise perform its obligations hereunder with respect to any LIBOR
Advance,
then upon written notice by the Agent to the Borrower,
(d) the right of the Borrower to request LIBOR Advances from that Lender
shall be and remain suspended until the Agent notifies the Borrower
that any condition causing such determination no longer exists, and
(e) if the Lender is prevented from maintaining a LIBOR Advance, the
Borrower shall, at its option, either repay the LIBOR Advances owing
by it to that Lender or convert the LIBOR Advances into other forms of
Advance which are permitted by this Agreement, but the Borrower shall
be responsible for any loss or expense that the Lender incurs as a
result,
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including breakage costs if the Lender is prevented from maintaining a
LIBOR Advance for reasons beyond its control.
5.11 CO-ORDINATION OF PRIME RATE, BASE RATE AND LIBOR ADVANCES
Each Lender shall advance its Proportionate Share of each Prime Rate
Advance, Base Rate Advance and LIBOR Advance in accordance with the following
provisions:
(a) the Agent shall advise each Lender of its receipt of a notice from the
Borrower pursuant to Section 5.6 on the day such notice is received
and shall, as soon as possible, advise each Lender of such Lender's
Proportionate Share of any Advance requested by the notice;
(b) each Lender shall deliver its Proportionate Share of the Advance to
the Agent not later than 11:00 a.m. (Toronto time) on the Drawdown
Date;
(c) if the Agent determines that all the conditions precedent to an
Advance specified in this Agreement have been met, it shall advance to
the Borrower the amount delivered by each Lender by transferring it to
the Designated Account prior to 2:00 p.m. (Toronto time) on the
Drawdown Date, but if the conditions precedent to the Advance are not
met by 2:00 p.m. (Toronto time) on the Drawdown Date, the Agent shall
return the funds to the Lenders or invest them in an overnight
investment as orally instructed by each Lender until such time as the
Advance is made; and
(d) if the Agent determines that a Lender's Proportionate Share of an
Advance would not be a whole multiple of $100,000 or US $100,000, as
the case may be, the amount to be advanced by that Lender may be
increased or reduced by the Agent in its sole discretion to the extent
necessary to reflect the requirements of this sub-paragraph.
5.12 EXECUTION OF BANKERS' ACCEPTANCES
To facilitate the acceptance of Bankers' Acceptances hereunder, the
Borrower hereby appoints each Lender as its attorney to sign and endorse on its
behalf, as and when considered necessary by the Lender, an appropriate number of
orders in the form prescribed by that Lender.
Each Lender may, at its option, execute any order in handwriting or by the
facsimile or mechanical signature of any of its authorized officers, and the
Lenders are hereby authorized to accept or pay, as the case may be, any order of
the Borrower which purports to bear such a signature notwithstanding that any
such individual has ceased to be an authorized officer of the Lender. Any such
order or Bankers' Acceptance shall be as valid as if he or she were an
authorized officer at the date of issue of the order or Bankers' Acceptance.
Any order or Bankers' Acceptance signed by a Lender as attorney for the
Borrower, whether signed in handwriting or by the facsimile or mechanical
signature of an
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authorized officer of a Lender may be dealt with by the Agent or any Lender to
all intents and purposes and shall bind the Borrower as if duly signed and
issued by the Borrower.
The receipt by the Agent of a request for an Advance by way of Bankers'
Acceptances shall be each Lender's sufficient authority to execute, and each
Lender shall, subject to the terms and conditions of this Agreement, execute
orders in accordance with such request and the advice of the Agent given
pursuant to Section 5.15, and the orders so executed shall thereupon be deemed
to have been presented for acceptance.
5.13 SALE OF BANKERS' ACCEPTANCES
It shall be the responsibility of each Lender to arrange, in accordance
with normal market practice, for the sale on each Drawdown Date of the Bankers'
Acceptances issued by the Borrower and to be accepted by that Lender, failing
which the Lender shall purchase its Bankers' Acceptances.
In accordance with the procedures set forth in Section 5.15, the Agent will
make the net proceeds of the requested Advance by way of Bankers' Acceptances
received by it from the Lenders available to the Borrower on the Drawdown Date
by transferring such amount to the Designated Account.
Notwithstanding the foregoing, if in the determination of the Majority
Lenders acting reasonably a market for Bankers' Acceptances does not exist at
any time, or the Lenders cannot for other reasons, after reasonable efforts,
readily sell Bankers' Acceptances or perform their other obligations under this
Agreement with respect to Bankers' Acceptances, then upon written notice by the
Agent to the Borrower, the Borrower's right to request Advances by way of
Bankers' Acceptances shall be and remain suspended until the Agent notifies the
Borrower that any condition causing such determination no longer exists.
5.14 SIZE AND MATURITY OF BANKERS' ACCEPTANCES AND ROLLOVERS
Each Advance of Bankers' Acceptances shall be in a minimum amount of
$1,000,000 and a whole multiple of $100,000. Each Bankers' Acceptance shall have
a term of one, two, three or six months after the date of acceptance of the
order by a Lender, provided that the Agent, in circumstances of market
disruption or illiquidity, shall have the discretion to restrict the term or
maturity dates of Bankers' Acceptances. Bankers' Acceptances of other lengths
shall also be available at the discretion of the Lenders from time to time. No
Bankers' Acceptance may mature on a date which is not a Business Day or on a
date which is later than the date on which the principal amount of any Credit is
required to be reduced (in whole or in part) if that would adversely affect the
Borrower's ability to cause the reduction of the Credit in question. The face
amount at maturity of a Bankers' Acceptance may be renewed as a Bankers'
Acceptance or converted into another form of Advance permitted by this
Agreement.
5.15 CO-ORDINATION OF BA ADVANCES
Each Lender shall advance its Proportionate Share of each Advance by way of
Bankers' Acceptances in accordance with the provisions set forth below.
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5.15.1 The Agent, promptly following receipt of a notice from the Borrower
pursuant to Section 5.6 requesting an Advance by way of Bankers' Acceptances,
shall advise each Lender of the aggregate face amount and term(s) of the
Bankers' Acceptances to be accepted by it, which term(s) shall be identical for
all Lenders. The aggregate face amount of Bankers' Acceptances to be accepted by
a Lender shall be determined by the Agent by reference to the respective
Commitments of the Lenders, except that, if the face amount of a Bankers'
Acceptance would not be Cdn. $100,000 or a whole multiple thereof, the face
amount shall be increased or reduced by the Agent in its sole discretion to the
nearest whole multiple of Cdn. $100,000.
5.15.2 Each Lender shall transfer to the Agent at the Branch of Account for
value on each Drawdown Date immediately available Cdn. Dollars in an aggregate
amount equal to the BA Discount Proceeds of all Bankers' Acceptances accepted
and sold or purchased by the Lender on such Drawdown Date net of the applicable
Bankers' Acceptance Fee and net of the amount required to pay any of its
previously accepted Bankers' Acceptances that are maturing on the Drawdown Date
or any of its other Advances that are being converted to Bankers' Acceptances on
the Drawdown Date.
5.15.3 If the Agent determines that all the conditions precedent to an Advance
specified in this Agreement have been met, it shall advance to the Borrower the
amount delivered by each Lender by transferring it to the Designated Account
prior to 2:00 p.m. (Toronto time) on the Drawdown Date, but if the conditions
precedent to the Advance are not met by 2:00 p.m. (Toronto time) on the Drawdown
Date, the Agent shall return the funds to the Lenders or invest them in an
overnight investment as orally instructed by each Lender until such time as the
Advance is made.
5.15.4 Notwithstanding any other provision hereof, for the purpose of
determining the amount to be transferred by a Lender to the Agent for the
account of the Borrower in respect of the sale of any Bankers' Acceptance issued
by the Borrower and accepted by such Lender, the proceeds of sale thereof shall
be deemed to be an amount equal to the BA Discount Proceeds calculated with
respect thereto. Accordingly, in respect of any particular Bankers' Acceptance
accepted by it, a Lender in addition to its entitlement to retain the applicable
Bankers' Acceptance Fee for its own account (i) shall be entitled to retain for
its own account the amount, if any, by which the actual proceeds of sale thereof
exceed the BA Discount Proceeds calculated with respect thereto, and (ii) shall
be required to pay out of its own funds the amount, if any, by which the actual
proceeds of sale thereof are less than the BA Discount Proceeds calculated with
respect thereto.
5.15.5 Whenever the Borrower requests an Advance that includes Bankers'
Acceptances, each Lender that is not permitted by applicable law or by customary
market practice to accept a Bankers' Acceptance or any other Lender that in any
instance chooses not to accept a Bankers' Acceptance (each, a "NON BA LENDER")
shall, in lieu of accepting its pro rata amount of such Bankers' Acceptances,
make available to the Borrower on the Drawdown Date a loan (a "BA EQUIVALENT
LOAN") in Canadian Dollars and in an amount equal to the BA Discount Proceeds of
the Bankers' Acceptances that the Non BA Lender would have been required to
accept on the Drawdown Date if it were able to accept Bankers' Acceptances. Each
Non BA Lender shall also be entitled to deduct from the BA
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Equivalent Loan an amount equal to the Bankers Acceptance Fee that would have
been applicable had it been able to accept Bankers' Acceptances. The BA
Equivalent Loan shall have a term equal to the term of the Bankers' Acceptances
that the Non BA Lender would otherwise have accepted and the Borrower shall, at
the end of that term, be obligated to pay the Non BA Lender an amount equal to
the aggregate face amount of the Bankers' Acceptances that it would otherwise
have accepted. All provisions of this Agreement applicable to Bankers'
Acceptances and Lenders that accept Bankers' Acceptances shall apply mutatis
mutandis to BA Equivalent Loans and Non BA Lenders and, without limiting the
foregoing, Advances shall include BA Equivalent Loans.
5.16 PAYMENT OF BANKERS' ACCEPTANCES
The Borrower shall provide for the payment to the Agent at the Branch of
Account for the account of the applicable Lenders of the full face amount of
each Bankers' Acceptance accepted for its account on the earlier of (i) the date
of maturity of a Bankers' Acceptance and (ii) the date on which any Obligations
become due and payable pursuant to Section 8.2. The Lenders shall be entitled to
recover interest from the Borrower at a rate of interest per annum equal to the
rate applicable to Prime Rate Advances under the Credit under which the Bankers'
Acceptance was issued, compounded monthly, upon any amount payment of which has
not been provided for by the Borrower in accordance with this Section. Interest
shall be calculated from and including the date of maturity of each Bankers'
Acceptance up to but excluding the date such payment, and all interest thereon,
both before and after demand, default and judgment, is provided for by the
Borrower.
If the Borrower provides cash in response to any Obligations becoming due
and payable under Section 8.2, it shall be entitled to receive interest on the
cash provided in accordance with Section 11.16 as long as the cash is held as
Collateral.
5.17 DEEMED ADVANCE - BANKERS' ACCEPTANCES
Except for amounts which are paid from the proceeds of a rollover of a
Bankers' Acceptance or for which payment has otherwise been funded by the
Borrower, any amount which a Lender pays to any third party on or after the date
of maturity of a Bankers' Acceptance in satisfaction thereof or which is owing
to the Lender in respect of such a Bankers' Acceptance on or after the date of
maturity of such a Bankers' Acceptance, shall be deemed to be a Prime Rate
Advance to the Borrower under this Agreement. Each Lender shall forthwith give
notice of the making of such a Prime Rate Advance to the Borrower and the Agent
(which shall promptly give similar notice to the other Lenders). Interest shall
be payable on such Prime Rate Advances in accordance with the terms applicable
to Prime Rate Advances.
5.18 WAIVER
The Borrower shall not claim from a Lender any days of grace for the
payment at maturity of any Bankers' Acceptances presented and accepted by the
Lender pursuant to this Agreement. The Borrower waives any defence to payment
which might otherwise exist if for any reason a Bankers' Acceptance shall be
held by a Lender in its own right at the
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maturity thereof, and the doctrine of merger shall not apply to any Bankers'
Acceptance that is at any time held by a Lender in its own right.
5.19 DEGREE OF CARE
Any executed orders to be used as Bankers' Acceptances shall be held in
safekeeping with the same degree of care as if they were the Lender's own
property, and shall be kept at the place at which such orders are ordinarily
held by such Lender.
5.20 INDEMNITY
The Borrower shall indemnify and hold the Lenders, and each of them,
harmless from any loss, cost, damage or expense with respect to any Bankers'
Acceptance dealt with by the Lenders for the Borrower's account, but shall not
be obliged to indemnify a Lender for any loss, cost, damage or expense caused by
the gross negligence or wilful misconduct of that Lender.
5.21 OBLIGATIONS ABSOLUTE
The obligations of the Borrower with respect to Bankers' Acceptances under
this Agreement shall be unconditional and irrevocable, and shall be paid
strictly in accordance with the terms of this Agreement under all circumstances,
including, without limitation, the following circumstances:
(i) any lack of validity or enforceability of any order accepted by a
Lender as a Bankers' Acceptance; or
(ii) the existence of any claim, set-off, defence or other right which
the Borrower may have at any time against the holder of a
Bankers' Acceptance, a Lender or any other person or entity,
whether in connection with this Agreement or otherwise.
5.22 SHORTFALL ON DRAWDOWNS, ROLLOVERS AND CONVERSIONS
The Borrower agrees that:
(a) the difference between the amount of an Advance requested by the
Borrower by way of Bankers' Acceptances and the actual proceeds of the
Bankers' Acceptances;
(b) the difference between the actual proceeds of a Bankers' Acceptance
and the amount required to pay a maturing Bankers' Acceptance, if a
Bankers' Acceptance is being rolled over; and
(c) the difference between the actual proceeds of a Bankers' Acceptance
and the amount required to repay any Advance which is being converted
to a Bankers' Acceptance;
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shall be funded and paid by the Borrower from its own resources, by 11:00 a.m.
on the day of the Advance or may be advanced as a Prime Rate Advance under a
Credit if the Borrower is otherwise entitled to an Advance under the Credit.
5.23 PROHIBITED USE OF L/CS AND BANKERS' ACCEPTANCES
The Borrower shall not enter into any agreement or arrangement of any kind
with any person to whom Bankers' Acceptances have been delivered whereby the
Borrower undertakes to replace such Bankers' Acceptances on a continuing basis
with other Bankers' Acceptances, nor shall the Borrower directly or indirectly
take, use or provide Bankers' Acceptances or L/Cs as security for loans or
advances from any other person. Notwithstanding the preceding sentence, the
Borrower may use L/Cs as security for industrial development bonds and other
similar types of instruments which may be outstanding in connection with any
Property acquired by any Restricted Party, directly or indirectly. Such use of
an L/C shall be considered to be financial assistance for the purpose of Section
3.1.4(b). The Borrower may also use L/Cs to secure bankers' acceptances maturing
on or before 21 October 2002 that are owing to National Bank of Canada and
Comerica Bank in connection with the credit agreement dated as of 14 August
2001.
5.24 ISSUANCE AND MATURITY OF L/CS
A request for an Advance by way of L/C shall be made by a Borrower in
accordance with Section 5.6, except that the request shall be sent directly to
the Issuing Bank. A request shall include the details of the L/C to be issued.
The Issuing Bank shall promptly notify the Borrower of any comment concerning
the form of the L/C requested by the Borrower and shall, if the Borrower is
otherwise entitled to an Advance, issue the L/C to the Borrower at the branch
where its account is maintained on the Drawdown Date or as soon thereafter as
the Issuing Bank is satisfied with the form of L/C to be issued.
Each L/C issued under this Agreement shall have a term which is not more
than one year after its issuance date or renewal date and does not extend beyond
the then-current maturity date of the Credits. Collateral shall be provided for
the benefit of the Lenders promptly upon demand by the Agent. An L/C may be
renewed by the Borrower subject to complying with the terms of this Agreement
applicable to an Advance by way of L/C.
5.25 PAYMENT OF L/C FEES
Payment of L/C Fees shall be made to the Issuing Bank, shall be made at the
time of issuance or renewal of each L/C and shall be refunded pro rata if the
L/C is drawn, reduced in amount or terminated before its expiry date. Fees shall
be calculated for the period from and including the date of issuance (or the day
following the previous expiry date in the case of a renewal) to and including
the date of expiry of the relevant L/C.
5.26 PAYMENT OF L/CS
The Borrower shall provide for the payment to the Issuing Bank at the
branch where the L/C was issued of the full face amount of each L/C (or the
amount actually paid in the case of a partial payment) on the earlier of (i) the
date on which the Issuing Bank makes a payment to the beneficiary of an L/C, and
(ii) the date on which any Obligations
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become due and payable pursuant to Section 8.2. The Issuing Bank shall be
entitled to recover interest from the Borrower at a rate of interest per annum
equal to the rate applicable to Prime Rate Advances (in the case of Canadian
Dollar L/Cs) or Base Rate Advances (in the case of US Dollar L/Cs), compounded
monthly, upon any amount payment of which has not been provided for by the
Borrower in accordance with this Section. Interest shall be calculated from and
including the date on which the Issuing Bank makes a payment to the beneficiary
of an L/C, up to but excluding the date such payment, and all interest thereon,
both before and after demand, default and judgment, is provided for by the
Borrower.
The obligation of the Borrower to reimburse the Issuing Bank for a payment
to a beneficiary of an L/C shall be absolute and unconditional, without
prejudice to the Borrower's right to subsequently claim damages for matters
arising from the Issuing Bank's wilful misconduct or gross negligence, and shall
not be reduced by any demand or other request for payment of an L/C (a "DEMAND")
paid or acted upon in good faith and in conformity with laws, regulations or
customs applicable thereto being invalid, insufficient, fraudulent or forged,
nor shall the Borrower's obligation be subject to any defence or be affected by
any right of set-off, counter-claim or recoupment which the Borrower may now or
hereafter have against the beneficiary, the Issuing Bank or any other person for
any reason whatsoever, including the fact that the Issuing Bank paid a Demand or
Demands (if applicable) aggregating up to the amount of the L/C notwithstanding
any contrary instructions from the Borrower to the Issuing Bank or the
occurrence of any event including, but not limited to, the commencement of legal
proceedings to prohibit payment by the Issuing Bank of a Demand. Any action,
inaction or omission taken or suffered by the Issuing Bank under or in
connection with an L/C or any Demand, if in good faith and in conformity with
laws, regulations or customs applicable thereto shall be binding on the Borrower
and shall not place any Lender under any resulting liability to the Borrower.
Without limiting the generality of the foregoing, the Issuing Bank may receive,
accept, or pay as complying with the terms of the L/C, any Demand otherwise in
order which may be signed by, or issued to, any administrator, executor, trustee
in bankruptcy, receiver or other person or entity acting as the representative
or in place of, the beneficiary.
If the Borrower provides cash in response to any Obligations becoming due
and payable under Section 8.2, it shall be entitled to receive interest on the
cash provided in accordance with Section 11.16 as long as the cash is held as
Collateral.
5.27 DEEMED ADVANCE - L/CS
Except for amounts which have been funded by the Borrower, any amount which
the Issuing Bank pays to any third party in respect of an L/C in satisfaction or
partial satisfaction thereof shall be deemed to be a Prime Rate Advance in the
case of Canadian Dollar L/Cs or a Base Rate Advance in the case of US Dollar
L/Cs, in each case under the Credit under which the L/C was issued. Any amount
which the Issuing Bank pays to any third party in respect of an L/C denominated
in Euros or Japanese yen in satisfaction or partial satisfaction thereof shall
be promptly converted by the Issuing Bank to Canadian Dollars in accordance with
its customary practices for conversion of currencies and the amount of Canadian
Dollars into which the amount paid is converted shall be deemed to be a Prime
Rate Advance under the Credit under which the L/C was issued. The Issuing Bank
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shall forthwith give notice of the making of such an Advance to the Borrower.
Interest shall be payable on such Advances in accordance with the terms
applicable to such Advances.
5.28 PROHIBITED RATES OF INTEREST
It is the intention of the parties to comply with applicable usury laws now
or hereafter enacted. Accordingly, notwithstanding any other provisions of this
Agreement or any other Credit Document, in no event shall any Credit Document
require the payment or permit the collection of interest or other amounts in an
amount or at a rate in excess of the amount or rate that is permitted by law or
in an amount or at a rate that would result in the receipt by the Lenders or the
Agent of interest at a criminal rate, as the terms "interest" and "criminal
rate" are defined under the Criminal Code (Canada). Where more than one such law
is applicable to any Restricted Party, that Restricted Party shall not be
obliged to make payment in an amount or at a rate higher than the lowest amount
or rate permitted by such laws. If from any circumstances whatever, fulfilment
of any provision of any Credit Document shall involve transcending the limit of
validity prescribed by applicable law for the collection or charging of
interest, the obligation to be fulfilled shall be reduced to the limit of such
validity, and if from any such circumstances the Agent or the Lenders shall ever
receive anything of value as interest or deemed interest under any Credit
Document in an amount that would exceed the highest lawful rate of interest
permitted by applicable law, such amount that would be excessive interest shall
be applied to the reduction of the principal amount of the relevant Credit, and
not to the payment of interest, or if such excessive interest exceeds the unpaid
principal balance of the relevant Credit, the amount exceeding the unpaid
balance shall be refunded to the Borrower. In determining whether or not the
interest paid or payable under any specified contingency exceeds the highest
lawful rate, the Restricted Parties, the Agent and the Lenders shall, to the
maximum extent permitted by applicable law, (a) characterize any non-principal
payment as an expense, fee or premium rather than as interest, (b) exclude
voluntary prepayments and the effects thereof, (c) amortize, prorate, allocate
and spread the total amount of interest throughout the term of such indebtedness
so that interest thereon does not exceed the maximum amount permitted by
applicable law, and/or (d) allocate interest between portions of such
indebtedness to the end that no such portion shall bear interest at a rate
greater than that permitted by applicable law. For the purposes of the
application of the Criminal Code (Canada), the effective annual rate of interest
shall be determined in accordance with generally accepted actuarial practices
and principles and in the event of any dispute, a certificate of a Fellow of the
Canadian Institute of Actuaries appointed by the Agent shall be conclusive for
the purpose of such determination.
ARTICLE VI
REPRESENTATIONS AND WARRANTIES
6.1 REPRESENTATIONS AND WARRANTIES
Each Restricted Party represents and warrants to the Lenders as specified
below.
6.1.1 CORPORATE MATTERS
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(a) It is a duly incorporated or amalgamated and validly existing
corporation or a duly organized and validly existing partnership, as
the case may be, and has the power and authority to enter into and
perform its obligations under any Credit Documents to which it is or
will be a party, to own its Property and to carry on the business in
which it is engaged.
(b) It is in compliance with the requirements for carrying on business in
all jurisdictions in which it carries on business except to the extent
that the non-compliance would not have a material adverse effect on
the ability of the Restricted Parties, taken as a whole, to carry on
business.
(c) It has all Permits required as of the date hereof, to enter into and
perform its obligations under any Credit Documents to which it is or
will be a party, to own its Property and to carry on the business in
which it is engaged, except to the extent that the absence of Permits
would not have a material adverse effect on the ability of the
Restricted Parties, taken as a whole, to do all things contemplated in
this paragraph.
(d) The entering into and the performance by it of the Credit Documents to
which it is or will be a party (i) have been duly authorized by all
necessary corporate action on its part, (ii) do not and will not
violate its Constating Documents, any Requirement of Law, the 1999
Indenture, the 2001 Indenture or the terms of any Permitted Senior
Secured Indebtedness, Permitted Subordinated Secured Indebtedness or
Permitted Unsecured Indebtedness, (iii) do not and will not violate
any Permit or any Contract not mentioned in item (ii) to which it is a
party, except to the extent that any violation would not cause a
Material Adverse Change, and (iv) will not result in the creation of
any Encumbrance on any of its Property or require it to create any
Encumbrance on any of its Property other than, in either case,
Permitted Encumbrances and will not result in the forfeiture of any of
its Property.
(e) Its Constating Documents do not restrict the power of its directors to
borrow money, to give financial assistance by way of loan, guarantee
or otherwise, or to encumber any or all of its present and future
Property to secure the Obligations, except for restrictions under any
Constating Document which have been complied with in connection with
the Credit Documents and the Permitted Obligations.
(f) It is not in violation of any term of its Constating Documents and is
not in violation of any Requirement of Law, Permit or Contract, the
violation of which would materially and adversely affect its ability
to own its Property and conduct its business, nor will its execution,
delivery and performance of any Credit Documents to which it is a
party result in any such violation.
(g) It has good and marketable title to or the right to use or good, valid
and subsisting leases or licenses in respect of all of the Property
necessary for
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the operation of its business, free and clear of any Encumbrances,
other than Permitted Encumbrances, and no person has any agreement or
right to acquire any of its Property out of the ordinary course of
business.
6.1.2 CREDIT DOCUMENTS
(a) The Credit Documents to which it is or will be a party have been or
will be duly executed and delivered by it and, when executed and
delivered, will constitute legal, valid and binding obligations
enforceable against it in accordance with their respective terms,
subject to the availability of equitable remedies and the effect of
bankruptcy, insolvency and similar laws affecting the rights of
creditors generally.
(b) As of the date of this Agreement, no Event of Default or Pending Event
of Default has occurred and is continuing.
(c) From and after the date on which the relevant Security is delivered,
the Lenders will have the benefit of legal, valid and enforceable
security upon all of its present and future Property subject only to
Permitted Encumbrances, the availability of equitable remedies, and
the effect of bankruptcy, insolvency and similar laws affecting the
rights of creditors generally.
6.1.3 LITIGATION, FINANCIAL STATEMENTS ETC.
(a) As of the date of execution of this Agreement, there are no
litigation, arbitration or administrative proceedings or industrial or
labour disputes outstanding and, to its knowledge after having made
reasonable inquiry, there are no proceedings or disputes pending or
threatened, against it which, in either case, could constitute a
Material Adverse Change, except as disclosed on Schedule J.
(b) All of the historical financial statements which have been furnished
to the Lenders, or any of them, in connection with this Agreement are
complete and, to its knowledge after reasonable inquiry, fairly
present in all material respects the financial position of NSCL on a
consolidated basis as of the dates referred to therein and have been
prepared in accordance with GAAP except, in the case of quarterly
financial statements, notes to the statements and normal year-end
audit adjustments required by GAAP are not included.
(c) All projections, including forecasts, budgets, pro formas and business
plans provided to the Agent were prepared in good faith based on
assumptions which were believed to be reasonable and were believed at
the time of preparation to be reasonable estimates of the prospects of
the businesses referred to therein, and all material changes in the
estimates of the prospects of those businesses occurring between the
time of
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preparation and the date of this Agreement have been disclosed to the
Lenders in writing.
(d) As of the date of execution of this Agreement, it has no liabilities
(contingent or other) or other obligations of the type required to be
included in the consolidated financial statements of the Restricted
Parties in accordance with GAAP which are not fully included on NSCL's
audited financial statements provided to the Lenders for its fiscal
year ended 31 December 2001 or NSCL's unaudited financial statements
for the fiscal period ended 31 March 2002, other than liabilities and
obligations incurred thereafter in the ordinary course of its business
and the Obligations, none of which constitutes a Material Adverse
Change.
(e) It is not in default under any of the Permitted Encumbrances to an
extent that would materially and adversely affect the financial
position of NSCL on a consolidated basis, or the Restricted Party's
ability to carry on its business or perform its obligations under the
Credit Documents to which it is or will be a party.
(f) There is no fact that it has not disclosed to the Agent in writing
that materially and adversely affects its ability to perform its
obligations under the Credit Documents to which it is or will be a
party.
6.1.4 OTHER DEBT
(a) This Agreement is in compliance with the terms of the 1999 Notes, the
2001 Notes, and any outstanding Permitted Senior Secured Indebtedness,
Permitted Subordinated Secured Indebtedness and Permitted Unsecured
Indebtedness (including but not limited to any limitation on
additional indebtedness contained in the documentation relating to the
1999 Notes, 2001 Notes, Permitted Senior Secured Indebtedness,
Permitted Subordinated Secured Indebtedness and Permitted Unsecured
Indebtedness) and will not contravene or cause a default under any of
the 1999 Notes, 2001 Notes, Permitted Senior Secured Indebtedness,
Permitted Subordinated Secured Indebtedness and Permitted Unsecured
Indebtedness.
(b) All Obligations are "Permitted Indebtedness" under the 1999 Indenture,
"Permitted Debt" under the 0000 Xxxxxxxxx and the equivalent of those
terms under the terms of any outstanding Permitted Senior Secured
Indebtedness, Permitted Subordinated Secured Indebtedness and
Permitted Unsecured Indebtedness.
(c) All Obligations are "Senior Indebtedness" and "Designated Senior
Indebtedness" or the equivalent of those terms under the terms of any
outstanding Permitted Subordinated Secured Indebtedness and the terms
of any Permitted Unsecured Indebtedness which is expressed to be
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subordinated and are entitled to the benefit of all subordination
provisions under the terms of any such Debt.
(d) The Credits constitute "New Credit Facilities" under the terms of the
1999 Notes and the 2001 Notes. As of 30 June 2002, the Threshold
Amount was not less than $600,000,000.
6.1.5 PROPERTY AND CAPITAL STOCK
(a) Schedule F fully and fairly describes as of the date of this
Agreement, the ownership of all of its issued and outstanding Capital
Stock, the Capital Stock in Restricted Parties and other persons that
it owns, the nature of the business that it carries on, the locations
of its head office (and chief executive office, if different) and its
freehold (or fee as the case may be) and leasehold real property, and
the jurisdictions in which its other Property (other than accounts
receivable) are located.
(b) The Pledged Shares are validly issued as fully paid and non-assessable
Capital Stock of the respective Restricted Parties or other issuers.
(c) The consents of the shareholders or directors of the respective
Restricted Parties or other issuers and any other consents that will
be delivered at or prior to the time that the Pledged Shares become
part of the Trustee Security are the only consents that are necessary
or desirable in connection with the pledges of the Pledged Shares as
part of the Trustee Security (including the enforcement of the
pledges), and will be kept in full force and effect as long as they
remain necessary or desirable.
6.1.6 ENVIRONMENTAL MATTERS
(a) To its knowledge having made all due inquiry, (i) there are no active
or abandoned underground storage tanks located on any land which it
occupies or controls, except those that comply with applicable
Requirements of Law, (ii) there are no Hazardous Materials located on,
above or below the surface of any land which it occupies or controls
or contained in the soil or water constituting such land (except those
that are in compliance with applicable Requirements of Law), (iii) no
release of Hazardous Materials has occurred on or from such land
(except those minor items that are in accordance with Permits or
otherwise do not violate applicable Requirements of Law) and (iv) no
land that it occupies or controls has been used as a landfill or waste
disposal site, except in each case as disclosed on Schedule J or as
would not reasonably be expected to cause a Material Adverse Change.
(b) Its business and Property have been and are being owned, occupied and
operated in substantial compliance with applicable Requirements of Law
intended to protect the environment (including, without limitation,
laws respecting the disposal or emission of Hazardous Materials), to
the best of
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its knowledge after reasonable inquiry there are no breaches thereof
and no enforcement actions in respect thereof are threatened or
pending which, in any such case, would reasonably be expected to cause
a Material Adverse Change.
6.1.7 TAXES AND WITHHOLDINGS
(a) It has (i) duly filed on a timely basis all material tax returns,
elections and reports required to be filed by it and has paid,
collected and remitted all material Taxes due and payable, collectible
or remittable by it, except Taxes for which instalments have been paid
based on reasonable estimates pending final assessments, or the
validity of which is being contested by it diligently and in good
faith by appropriate proceedings and the payment of which has been
secured by such arrangements (including Collateral) as the Lenders may
require, (ii) made adequate provision for material Taxes payable by it
for the current period and any previous period for which tax returns
are not yet required to be filed and, except as disclosed in writing
to the Agent from time to time, there are no actions, proceedings or
claims pending or, to its knowledge, threatened, against it in respect
of material Taxes, and (iii) collected and remitted to the appropriate
tax authority when required by law to do so all material amounts
collectible and remittable in respect of goods and services tax and
similar provincial or state Taxes, and has paid all such material
amounts payable by it on account of sales Taxes including goods and
services and value-added taxes, except in each case Taxes for which
instalments have been paid based on reasonable estimates pending final
assessments, or the validity of which is being contested by it
diligently and in good faith by appropriate proceedings and the
payment of which has been secured by such arrangements (including
Collateral) as the Lenders may require (it being agreed that, for
purposes of this paragraph, the amount of a Tax is material if it
equals or exceeds Cdn. $10,000,000 or the equivalent thereof in
another currency).
(b) It has withheld from each payment made to any of its past or present
employees, officers or directors, and to any non-resident of the
country in which it is resident, the amount of all material Taxes and
other deductions required to be withheld therefrom and has paid the
same to the appropriate tax authority within the time required under
any applicable legislation (it being agreed that, for purposes of this
paragraph, the amount of a Tax is material if it equals or exceeds
Cdn. $2,000,000 or the equivalent thereof in another currency).
6.1.8 ABORIGINAL CLAIMS
(a) Except for matters which would not, in the aggregate, reasonably be
expected to cause a Material Adverse Change, no Aboriginal group has
asserted, by virtue of its Aboriginal status:
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(i) any claim against any Property of a Restricted Party;
(ii) any right, title, benefit or interest in any real property of a
Restricted Party;
(iii) any claim of jurisdiction over any real property of a Restricted
Party; or
(iv) any right to be consulted with respect to any change in the use,
development or improvement in any real property of a Restricted
Party.
(b) Except for matters which would not, in the aggregate, reasonably be
expected to cause a Material Adverse Change, it is not aware of and
has not received, in relation to any of its real property, any notice
of:
(i) the existence or potential existence of any Aboriginal heritage
sites;
(ii) any actual or alleged interference with Aboriginal rights; or
(iii) any specific or comprehensive claims.
(c) Except for matters which would not, in the aggregate, reasonably be
expected to cause a Material Adverse Change, it has disclosed to the
Lenders all written correspondence, notices or minutes of meetings
received from or involving any Aboriginal group relating to any claim,
conflict or controversy.
6.1.9 OTHER MATTERS
(a) Neither it nor any of its Subsidiaries is an "investment company"
within the meaning of the Investment Company Act of 1940 (United
States), as amended, or a "holding company", or a "subsidiary company"
of a "holding company", or an "affiliate" of a "holding company" or of
a "subsidiary company" of a "holding company," within the meaning of
the Public Utility Holding Company Act of 1935 (United States), as
amended.
(b) None of the proceeds of any Advance shall be used to purchase or
carry, or to reduce or retire or refinance any credit incurred to
purchase or carry, any margin stock (within the meaning of Regulations
U and X of the Board of Governors of the Federal Reserve System of the
United States) or to extend credit to others for the purpose of
purchasing or carrying any margin stock.
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6.2 SURVIVAL OF REPRESENTATIONS AND WARRANTIES
Unless expressly stated to be made as of a specific date, the
representations and warranties made in this Agreement shall survive the
execution of this Agreement and all other Credit Documents, and shall be deemed
to be repeated as of the date of each Advance (including any deemed Advance),
subject to modifications made by NSCL to the Lenders in writing and accepted by
the Majority Lenders, acting reasonably. The Lenders shall be deemed to have
relied upon such representations and warranties at each such time as a condition
of making an Advance hereunder or continuing to extend the Credits hereunder.
ARTICLE VII
COVENANTS AND CONDITIONS
7.1 FINANCIAL COVENANTS
7.1.1 During the term of this Agreement, the Funded Debt Ratio shall not at any
time exceed 0.60 to 1.
7.1.2 During the term of this Agreement, NSCL shall at all times maintain a
consolidated shareholders' equity of not less than a minimum of $779,300,000.
The minimum shall increase annually as of 31 December in each year, beginning in
2002, by an amount equal to 50% of NSCL's consolidated net income for each year,
excluding any year in which NSCL incurs a consolidated net loss.
7.1.3 During the term of this Agreement, the Secured Debt Ratio shall not at any
time exceed 0.30 to 1.
7.1.4 At all times during the term of this Agreement when Permitted Senior
Secured Indebtedness or Permitted Subordinated Secured Indebtness is outstanding
and the Funded Debt Ratio is greater than 0.40 to 1, NSCL shall maintain an
Interest Coverage Ratio of not less than the following:
Period Interest Coverage Ratio
------ -----------------------
to 31 December 2002 1.10 to 1
from 1 January 2003 to 31 March 2003 1.75 to 1
on and after 1 April 2003 2.50 to 1
7.2 POSITIVE COVENANTS
During the term of this Agreement, each Restricted Party shall perform the
covenants specified below.
7.2.1 PAYMENT; OPERATION OF BUSINESS
(a) It shall duly and punctually pay the Obligations, either as Borrower
or in accordance with its guarantee of the Obligations, at the times
and places and in the manner required by the terms thereof.
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(b) It shall keep proper books of account and record, maintain its
corporate status in all jurisdictions where it carries on business,
operate its business in accordance with sound business practice and in
compliance in all material respects with all applicable Requirements
of Law (including but not limited to those regarding ownership of
persons carrying on the type of business that it carries on) and
Material Contracts and Material Permits.
(c) It shall maintain in good standing and shall obtain, as and when
required, all Permits and Contracts which may be material to permit it
to acquire, own, operate and maintain its business and Property, lease
any land forming part of its Property, and perform its obligations
under the Credit Documents to which it is or will be a party.
(d) At any time after Permitted Senior Secured Indebtedness in an
aggregate principal amount of $100,000,000 or more has been incurred
during the term of this Agreement, it shall not (i) amend any
provision of any Material Contract to which it is a party or give any
consent, concession or waiver with respect thereto which, in either
case, would cause a Material Adverse Change, or (ii) cancel, terminate
or accept the surrender of any Material Contract if the cancellation,
termination or surrender would cause a Material Adverse Change, unless
a Replacement Contract is entered into in respect of the Material
Contract in question.
7.2.2 INSPECTION
It shall at all reasonable times and from time to time upon reasonable
notice, permit representatives of the Lenders to inspect any of its Property and
to examine and take extracts from its financial books, accounts and records,
including but not limited to accounts and records stored in computer data banks
and computer software systems, and to discuss its financial condition with its
senior officers and (in the presence of such of its representatives as it may
designate) its auditors, the reasonable expense of all of which shall be paid by
the Borrower provided that:
(a) the Lenders' exercise of their rights under this paragraph does not
unreasonably interfere with the operations of the Restricted Parties;
(b) the Lenders maintain the confidentiality of all information they
receive in accordance with usual requirements of banker/customer
confidentiality, and do not disclose or use it except for the purposes
of this Agreement;
(c) any representative of a Lender who is not an employee of that Lender
has executed and delivered an agreement in favour of the Restricted
Parties and the Lenders to use any information obtained as a result of
any inspection or examination on behalf of a Lender only for the
purposes of this Agreement, and has established to the reasonable
satisfaction of NSCL and the Lenders that there is no inherent
conflict of interest between the business and clientele of the
Restricted Parties and the business and clientele (other than the
Lenders) of that representative.
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7.2.3 INSURANCE
(a) It shall maintain insurance on all its Property with financially sound
and reputable insurance companies or associations including all-risk
property insurance, comprehensive general liability insurance and
business interruption insurance, in amounts, with deductibles or
retentions, and against risks that would be maintained by a prudent
owner carrying on similar businesses in similar locations, and shall
furnish to the Agent, on written request, satisfactory evidence of the
insurance carried.
(b) It shall cause policies of insurance referred to above to contain a
standard mortgage clause and other customary endorsements for the
benefit of lenders (including endorsements naming the Trustee as loss
payee and additional insured as required by the Agent), all in a form
acceptable to the Lenders acting reasonably, and a provision that such
policies will not be amended in any manner which is prejudicial to the
Lenders or be cancelled without 30 days' prior written notice being
given to the Trustee by the issuers thereof. It shall also, subject to
Section 7.6, cause all of the proceeds of insurance under such
policies to be made payable and to be paid to the Trustee.
(c) Whenever reasonably requested in writing by the Agent, it shall cause
certified copies of the policies of insurance carried pursuant to this
Section to be delivered to the Agent.
(d) It shall provide the Agent promptly with such other evidence of the
insurance as the Lenders may from time to time reasonably require.
7.2.4 TAXES, ENCUMBRANCES AND WITHHOLDINGS
(a) It shall pay all Taxes and Encumbrances in respect of itself or its
Property as they become due and payable unless they are being
contested in good faith by appropriate proceedings and it has made
adequate provision for payment of the contested amount.
(b) It shall withhold from each payment made to any of its past or present
employees, officers or directors, and to any non-resident of the
country in which it is resident, the amount of all Taxes and other
deductions required to be withheld therefrom and pay the same to the
appropriate tax authority within the time required under any
applicable Requirement of Law.
(c) It shall collect from all Persons the amount of all Taxes required to
be collected from them and remit the same to the proper tax or other
receiving officers within the time required under any applicable
Requirement of Law.
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7.2.5 OTHER MATTERS
(a) It shall, immediately upon receipt, deliver to the Trustee
certificates representing all Capital Stock of other Restricted
Parties or of other persons in which it owns Capital Stock that it
acquires after the date that Capital Stock of the Restricted Parties
or other persons is first delivered as part of the Trustee Security,
together with executed stock powers of attorney relating to those
certificates (or if certificates in respect of such Capital Stock are
not available, take such other steps to perfect the Trustee Security
relating to such Capital Stock as the Agent requires).
(b) It shall observe and comply in all material respects at all times with
the provisions of all Environmental Laws and shall provide such
evidence of on-going compliance with Environmental Laws as the
Majority Lenders may reasonably require from time to time including,
without limitation, if so requested by the Majority Lenders, acting
reasonably upon reasonable cause, arranging for one or more
environmental site assessment and/or compliance audits (each
consisting of a non-intrusive phase I audit and recommendations with
respect to the findings described therein and such other audits or
investigations recommended in each such phase I audit, including,
without limitation, an intrusive phase II audit) and reports thereon
by an independent consultant engaged by the Restricted Parties and
acceptable to the Majority Lenders, acting reasonably. It shall also
remove, clean up or otherwise remedy the matters referred to in
Section 7.3.2(d).
(c) If it is listed on Schedule I, it shall comply with the limits on its
Property, business activities and other matters described on that
Schedule and, if it owns Capital Stock of any other person listed on
Schedule, it shall cause that person to comply with the limits on its
Property, business activities and other matters described on that
Schedule I.
(d) It shall diligently and in good faith use all commercially reasonable
efforts to obtain agreements in form and substance satisfactory to the
Agent from other parties to Material Contracts that are specifically
assigned as part of the Trustee Security from time to time after the
agreements contemplated in Section 3.1.8 have been obtained.
(e) It shall diligently and in good faith use all commercially reasonable
efforts to obtain consents in respect of the Security in form and
substance satisfactory to the Agent from landlords of material
leasehold real property designated by the Agent from time to time in
which any Restricted Party carries on business.
(f) In the case of NSCL, if it issues Permitted Senior Secured
Indebtedness, Permitted Subordinated Secured Indebtedness or Permitted
Unsecured Indebtedness, it shall concurrently deliver a certificate to
the Agent with copies of the indenture or agreement under which that
Debt is incurred and
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any other documents necessary to fully and fairly disclose all
material terms thereof.
7.3 REPORTING AND NOTICE REQUIREMENTS
During the term of this Agreement, NSCL shall deliver or cause the delivery
of the periodic reports specified below and shall give notices in the
circumstances specified below, or cause notices to be given. All financial
statements and other reports shall be in a form satisfactory to the Lenders and
all financial statements shall be prepared in accordance with GAAP. NSCL shall,
as directed by the Agent from time to time, either distribute financial
statements and other reports directly to the Lenders or supply the Agent with
sufficient copies of financial statements and other reports to allow the Agent
to distribute them to the Lenders.
7.3.1 PERIODIC REPORTS
(a) NSCL shall, as soon as practicable and in any event within 30 days of
the end of each calendar month, prepare and deliver a Borrowing Base
Certificate and a statement of the Restricted Parties' inventory and
aged accounts receivable (including amounts owing by account debtor
name for account debtors owing an aggregate of $1,000,000 or more
each) as at the end of that month. The Borrowing Base Certificate may
be delivered by e-mail and, if delivered by NSCL by e-mail, it shall
be considered to be a representation by NSCL even if not manually
signed by NSCL.
(b) NSCL shall, as soon as practicable and in any event within 45 days of
the end of each of its fiscal quarters (including the fourth quarter),
prepare and deliver its interim unaudited consolidated financial
statements, modified to exclude persons that are not Restricted
Parties, and the interim unaudited financial statements of the
Borrower, as at the end of such quarter, in each case including,
without limitation, balance sheet, statement of income and retained
earnings and statement of changes in financial position.
(c) NSCL shall, as soon as practicable and in any event within 90 days
after the end of each of its fiscal years, prepare and deliver its
consolidated annual financial statements, including supplemental
consolidating information identifying Restricted Parties and persons
that are not Restricted Parties, and the annual financial statements
of the Borrower, including, without limitation, balance sheet,
statement of income and retained earnings and statement of changes in
financial position for such fiscal year, all of which shall be audited
by an internationally recognized accounting firm.
(d) NSCL shall, concurrently with the delivery of each of its quarterly
financial statements, prepare and deliver a Compliance Certificate.
(e) NSCL shall, as soon as practicable and in any event not later than 120
days after the beginning of each of its fiscal years, prepare and
deliver its
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financial forecast for its current fiscal year and the following two
fiscal years, which shall cover NSCL on a consolidated basis and shall
include, without limitation, a projected income statement, a projected
statement of changes in funds, estimates of capital expenditures and
tax losses and deferrals.
(f) NSCL shall promptly deliver copies of all information concerning its
financial condition and Property that is provided to the Noteholders
and the holders of the Permitted Senior Secured Indebtedness,
Permitted Subordinated Secured Indebtedness and Permitted Unsecured
Indebtedness and not otherwise provided to the Lenders, copies of all
notices received from the Noteholders and the holders of the Permitted
Senior Secured Indebtedness, Permitted Subordinated Secured
Indebtedness and Permitted Unsecured Indebtedness, and all other
information reasonably requested by the Lenders from time to time
concerning the business, financial condition and Property of the
Restricted Parties.
If there is any change in a subsequent period from the accounting policies,
practices and calculation methods used by NSCL in preparing its financial
statements for its fiscal year ended 31 December 2001, or components thereof,
NSCL shall provide the Lenders with all information that the Lenders require to
ensure that reports provided to the Lenders after any change are comparable to
previous reports. In addition, all calculations made for the purposes of this
Agreement shall continue to be made based on the accounting policies, practices
and calculation methods that were used in preparing NSCL's financial statements
for its fiscal year ended 31 December 2001 if the changed policies, practices
and methods would materially affect the results of those calculations.
7.3.2 REQUIREMENTS FOR NOTICE
(a) NSCL shall promptly notify the Lenders of any Event of Default or
Pending Event of Default.
(b) If an aggregate principal amount of $100,000,000 or more of Permitted
Senior Secured Indebtedness is then outstanding, NSCL shall promptly
notify the Lenders of (i) any material default (either by a Restricted
Party or by any other party) under any Material Contract or Material
Permit, (ii) any event which, with or without the giving of notice,
lapse of time or any other condition subsequent, would be a material
default or would otherwise allow the termination of any Material
Contract or Material Permit or the imposition of any material sanction
on any party to a Material Contract or Material Permit, (iii) the
occurrence of any "force majeure" event as described in any Material
Contract, (iv) any litigation or arbitration proceedings concerning
any Material Contract, and (v) any matters requiring the consent of
any other party to a Material Contract, and shall from time to time
provide the Lenders with all information reasonably requested by any
of the Lenders concerning the status thereof.
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(c) NSCL shall promptly notify the Lenders on becoming aware of the
occurrence of any litigation, dispute, arbitration, proceeding, labour
or industrial dispute or any other circumstance affecting it, the
result of which if determined adversely would cause a Material Adverse
Change, and shall from time to time provide the Lenders with all
reasonable information requested by any of the Lenders concerning the
status thereof.
(d) NSCL shall promptly notify the Agent of (i) any release of Hazardous
Materials on or from any land which any Restricted Party occupies or
controls that is reportable under applicable Requirements of Law and
that has resulted in any material personal injury or illness or is
reasonably expected to result in a cost of remediation of $1,000,000
or more, and (ii) any enforcement actions, special investigations,
control orders, stop orders, injunctions, prosecutions or civil
proceedings under any Environmental Law or based on any allegation of
environmental damage or release of Hazardous Materials, and shall
provide the Agent with details, including cost, of the work required
to remove, clean up or otherwise remedy the matters referred to in the
notice.
(e) NSCL shall promptly notify the Agent if any change occurs in the
ratings used to determine the Applicable Fee Rate and the Applicable
Margin or (except as prohibited by confidentiality agreements with
relevant ratings agencies) if it learns that any change will be made
by the relevant ratings agencies.
(f) NSCL shall promptly notify the Agent if it is within $10,000,000 of
any of the thresholds that would require it to take action specified
in Section 7.7 or item 3 of Schedule L, and promptly provide such
further reports as the Agent may require while it remains within
$10,000,000 of either threshold.
7.4 OWNERSHIP OF THE RESTRICTED PARTIES
During the term of this Agreement, there shall not be any change in the
ownership or control of the Restricted Parties other than NSCL from that
described on Schedule F, except if:
(a) the change is otherwise expressly permitted in this Agreement and NSCL
gives the Agent reasonable advance notice of the change and
immediately takes whatever steps and delivers whatever documents
(including opinions of counsel satisfactory to the Lenders) are
reasonably required to ensure that the Security is not adversely
affected as a result;
(b) the Restricted Party was owned or controlled, as the case may be, by
another Restricted Party incorporated in Canada and the change will
result in the first Restricted Party being owned or controlled by a
Restricted Party or Restricted Parties incorporated in Canada, and
NSCL gives the Agent reasonable advance notice of the change and
immediately takes
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whatever steps and delivers whatever documents (including opinions of
counsel satisfactory to the Lenders) are reasonably required to ensure
that the Security is not adversely affected as a result; or
(c) the Agent (acting reasonably, after consultation with counsel)
determines that the Lenders' ability to recover under the Security
would not be adversely affected by the change.
7.5 NEGATIVE COVENANTS
During the term of this Agreement, the Restricted Parties shall not do any
of the things specified in this Section without the prior written consent of the
Majority Lenders, which shall not be unreasonably withheld.
7.5.1 FINANCIAL TRANSACTIONS AND ENCUMBRANCES
No Restricted Party shall:
(a) create, incur or assume or suffer to exist or cause or permit any
Encumbrance upon or in respect of any of its Property, except for
Permitted Encumbrances;
(b) do or permit anything to adversely affect the ranking or validity of
the Security except by incurring a Permitted Encumbrance;
(c) create, incur, assume or permit any debts, liabilities or obligations
of any kind (including contingent liabilities) to remain outstanding,
other than Permitted Obligations;
(d) prepay, redeem, defease, repurchase or make other payments in respect
of any of its Debt for borrowed money, other than:
(i) the Obligations;
(ii) scheduled interest and principal payments under the 1999 Notes,
the 2001 Notes, any Permitted Senior Secured Indebtedness and any
Permitted Unsecured Indebtedness that is not expressed to be
subordinated;
(iii) scheduled interest payments under any Permitted Subordinated
Secured Indebtedness and any Permitted Unsecured Indebtedness
that is expressed to be subordinated, as long as no Event of
Default or Pending Event of Default has occurred and is
continuing or would result from payment being made;
(iv) the purchase money and other obligations contemplated in Section
1.1.83(l);
(v) Debts owing by any Restricted Party to another Restricted Party;
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(vi) payments made with the proceeds of any issuance of Capital Stock,
any right to acquire Capital Stock or any equity-equivalent
security, to the extent not required by this Agreement to be paid
on account of the Obligations;
(e) make loans to any other person, guarantee, endorse or otherwise become
liable for any debts, liabilities or obligations of any other person,
or give other financial assistance of any kind to any other person,
except for:
(i) the guarantees given as part of the Security or in connection
with other debentures permitted to be issued under the Trustee
Security;
(ii) loans and advances to other Restricted Parties that are
incorporated in Canada;
(iii) loans and advances to other Restricted Parties that are not
incorporated in Canada if the Agent (acting reasonably, after
consultation with counsel, but without any requirement to seek
approval of the Majority Lenders) determines that the Lenders'
ability to recover under the Security would not be adversely
affected by the loans and advances;
(iv) loans and advances to Xxxxxx River Energy Inc. or Xxxxxx River
Energy LP;
(v) loans to persons other than Restricted Parties of which the
lender is a shareholder that would comply with Section 7.5.2(b)
if the amount of the loan was instead used to acquire Capital
Stock or other securities of, or make investments in, the person;
(vi) guarantees of debts, liabilities and obligations of other
Restricted Parties that are Permitted Obligations;
(vii) financial assistance not permitted by the other items in this
Section 7.5.1(e) in an aggregate amount outstanding at any time
of not greater than $5,000,000, or $20,000,000 while no Permitted
Senior Secured Indebtedness is outstanding;
(f) (i) enter into any Derivative for speculative purposes, (ii) enter
into any Derivative except for Derivatives secured by the Trustee
Security as Other Secured Obligations or other Derivatives of the type
described in Sections 1.1.79(a) to 1.1.79(e) inclusive that are
unsecured, or (iii) enter into any Derivative if (A) the notional
amount or the term of the proposed transaction would adversely affect
the Borrower's ability to make principal payments required under the
terms of this Agreement or, (B) in the case of interest rate
Derivatives, the aggregate notional amount swapped by all Restricted
Parties at any time (net of offsetting transactions) exceeds the
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outstanding amount of the Credits, the 1999 Notes and the 2001 Notes
at that time;
(g) do anything that would result in the holders of the 1999 Notes or the
2001 Notes becoming entitled to be secured;
(h) do anything that would result in the holders of any other unsecured
Debt outstanding at any time becoming entitled to be secured unless
the unsecured Debt, if secured, would constitute Permitted Senior
Secured Indebtedness or Permitted Subordinated Secured Indebtedness.
7.5.2 BUSINESS AND PROPERTY
No Restricted Party shall:
(a) effect any material change in the nature of its business, being the
manufacture and sale of paper, pulp and containerboard, except that
the Restricted Parties generally may discontinue their containerboard
business and any Restricted Party may discontinue any aspect of its
business that is transferred to and continued by another Restricted
Party;
(b) acquire Capital Stock or other securities of, or make investments in,
any other person, unless (i) the acquisition or investment is in, or
is incidental to, the manufacture and/or sale of paper, pulp and/or
containerboard, (ii) the acquisition or investment is made at a time
that no Event of Default or Pending Event of Default has occurred and
is continuing or would result from the acquisition or investment,
(iii) NSCL submits pro forma financial statements and calculations of
financial covenant compliance, prepared in accordance with GAAP and
reflecting the acquisition or investment, to the Agent a reasonable
time in advance of completion of the acquisition or investment, and
(iv) Sections 3.1.3, 3.1.4, 3.1.5 and 3.1.6 are complied with in
connection with the acquisition or investment; for greater certainty,
the terms "securities" and "investment" as used in this paragraph do
not include matters referred to in Section 7.5.1(e);
(c) permit any sale, lease, sale and lease-back or other disposition of
any part of its Property (including Capital Stock it holds) except for
(i) sales of inventory and obsolete or redundant equipment in the
ordinary course of business, (ii) dispositions to another Restricted
Party, provided that Property owned by a Restricted Party incorporated
in Canada is not transferred to a Restricted Party not incorporated in
Canada and Property located in Canada is not transferred outside
Canada, (iii) dispositions in connection with transactions permitted
by Section 7.5.3(a), (iv) other dispositions of Property (including
Capital Stock of any other person) having a fair market value for all
Restricted Parties up to an aggregate for all Restricted Parties
during any period of 36 consecutive months of 12.5% (20% if no
Permitted Senior Secured Indebtedness is outstanding at the
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time of the disposition) of the Consolidated Net Tangible Assets
valued immediately before any disposition;
(d) except for transactions between two or more Restricted Parties each of
which is incorporated in the same jurisdiction, enter into any
transaction of any kind with any affiliate or associate (as those
terms are defined in the Canada Business Corporations Act), or person
of which it is an associate except on terms that are no more onerous
to a Restricted Party than if it were dealing with such person on an
arm's length basis.
7.5.3 CORPORATE MATTERS
No Restricted Party shall:
(a) consolidate, amalgamate or merge with any other person, enter into any
corporate reorganization or other transaction intended to effect or
otherwise permit a change in its existing Constating Documents,
liquidate, wind-up or dissolve itself, or permit any liquidation,
winding-up or dissolution, except for transactions involving only one
or more Restricted Parties if NSCL gives the Agent reasonable advance
notice of the transactions and immediately takes whatever steps and
delivers whatever documents (including opinions of counsel
satisfactory to the Lenders) are reasonably required to ensure that
the Lenders' rights are not adversely affected as a result;
(b) change its name without providing the Lenders with prior written
notice thereof and promptly taking other steps, if any, as the Lenders
reasonably request to permit the Trustee and/or Agent to perfect the
Security with respect to the change in name;
(c) change the location of its Property (except for goods in transit) or
the location of its chief executive office from the respective
jurisdictions specified on Schedule F without providing the Agent with
prior written notice thereof and promptly taking other steps, if any,
as the Lenders reasonably request to permit the Trustee and/or Agent
to perfect the Security with respect to the change in location;
(d) allow inventory to be located in any jurisdiction where the Trustee
Security over inventory has not been registered in accordance with
local requirements unless (i) the amount of all such inventory for all
Restricted Parties in each such jurisdiction is less than 50,000
tonnes and (ii) the net book value of all such inventory for all
Restricted Parties in all such jurisdictions, measured on 30 June of
each year with an adjustment for any unusual movements of inventory on
or before that date, is less than 30% of then-existing consolidated
net book value of NSCL's inventory;
(e) allow Property other than inventory to be located in any jurisdiction
where the Trustee Security over that Property has not been registered
in
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accordance with local requirements unless the net book value of all
such Property for all Restricted Parties in all such jurisdictions is
less than 4% of then-existing consolidated net book value of NSCL's
fixed assets; for greater certainty, accounts receivable of a
Restricted Party shall be considered for the purpose of this item to
be located where the chief executive office of the Restricted Party is
located;
(f) in the case of NSCL and the Borrower, change its fiscal year end,
being 31 December;
(g) change its auditors, unless an internationally recognized accounting
firm is appointed;
(h) be a party to any amendment or waiver of the terms of any Permitted
Senior Secured Indebtedness, Permitted Subordinated Secured
Indebtedness or Permitted Unsecured Indebtedness unless expressly
permitted by any applicable Intercreditor Agreement;
(i) be a party to any amendment or waiver to the terms of the 1999 Notes
or 2001 Notes or any documents relating to any of them if the
amendment would adversely affect the rights of any Lender or make the
terms thereof more onerous to any Restricted Party (including but not
limited to any amendment that would shorten the maturity, require any
additional prepayment, increase the interest rate or other
compensation payable to Noteholders, impose additional requirements
for securing the Noteholders or further limit the rights of the
Restricted Parties to incur Debt or grant Encumbrances), or be a party
to any amendment of any kind without immediately providing the Agent
with copies of all documents and other information relating to the
amendment.
7.6 USE OF INSURANCE PROCEEDS
7.6.1 Unless otherwise specified in this Section 7.6, all proceeds of insurance
required to be maintained by the Restricted Parties under the terms of this
Agreement shall be paid to the Trustee.
7.6.2 Proceeds of liability insurance shall be paid to the person to whom the
affected Restricted Party is liable. Proceeds of insurance covering loss of or
damage to property in an amount of less than $25,000,000 per claim, or in any
amount if no Permitted Senior Secured Indebtedness is outstanding, may be paid
by the insurer directly to the affected Restricted Party unless, if an Event of
Default or Pending Event of Default has occurred and is continuing, the Agent
requires that payment be made to the Trustee.
7.6.3 Subject to the rights of any holder of a Permitted Encumbrance that has
priority over the Security, proceeds of insurance covering loss of or damage to
property not covered by Section 7.6.2 shall be paid to the Trustee and the Agent
shall direct the Trustee to disburse the proceeds to the affected Restricted
Party on conditions customary for construction or equipment financing, to fund
the repair or replacement of the property in
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respect of which the insurance proceeds are payable, or to acquire revenue
producing Property within the core business of the Restricted Parties, provided
that:
(a) no Event of Default (including but not limited to one relating to
Material Adverse Change) or Pending Event of Default has occurred and
is continuing;
(b) the Majority Lenders are satisfied, acting reasonably, that, if repair
or replacement is contemplated, the proceeds of such insurance
together with other resources available to the affected Restricted
Party (the use of which would not contravene this Agreement) are
sufficient to fully repair or replace the property in respect of which
the insurance proceeds are payable within the remaining term of the
then-outstanding Credits or within 365 days, whichever is less.
7.6.4 The proceeds of business interruption insurance shall be used to repay the
Credits, without prejudice to the Borrower's rights to further Advances under
the Credits. If the Credits are repaid in full at any time, the proceeds may be
used to carry on the business of the Restricted Parties as long as the Majority
Lenders are satisfied, acting reasonably, that adequate provision has been made
for payment of the Obligations and any other obligations secured by the Security
(payment of which is permitted in accordance with this Agreement).
7.7 ADJUSTMENTS TO AMOUNT OF DEBT
7.7.1 If the aggregate of the Market Values of all Derivatives that are Other
Secured Obligations (whether in respect of interest rates, currencies,
commodities or other matters permitted by this Agreement) is at any time
negative from the Restricted Parties' perspective (that is, the Restricted
Parties on an aggregate basis are "out of the money") to the extent of
$150,000,000 or more, the Restricted Parties shall, within five Business Days of
receiving notice from the Agent, terminate or re-price one or more Derivatives
or take other action acceptable to the Agent acting reasonably so that the
Market Value of those Derivatives is immediately reduced to a negative Market
Value of not more than $135,000,000.
7.7.2 If the aggregate of:
(a) the outstanding principal amount of the Credits;
(b) the outstanding principal amount of any Permitted Senior Secured
Indebtedness and Permitted Subordinated Secured Indebtedness;
(c) the absolute value of the Market Value, if negative, of the Existing
Special Derivatives;
(d) the absolute value of the Market Value, if negative, of all
Derivatives not mentioned in item (c) that are Other Secured
Obligations and have been classified as being incurred under clauses
(i) or (ix) of the definition of
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"Permitted Indebtedness" in the 1999 Indenture and the definition of
"Permitted Debt" in the 2001 Indenture;
(e) the amount, as determined under the 1999 Indenture and the 2001
Indenture, respectively, of any other obligations that have been
classified as being incurred under clauses (i) or (ix) of the
definition of "Permitted Indebtedness" in the 0000 Xxxxxxxxx and the
definition of "Permitted Debt" in the 2001 Indenture
exceeds an amount equal to the Threshold Amount less $20,000,000, the Restricted
Parties shall within five Business Days of receiving notice from the Agent repay
Advances, repay Permitted Senior Secured Indebtedness, repay Permitted
Subordinated Secured Indebtedness, terminate or re-price one or more Derivatives
and/or take other action acceptable to the Agent acting reasonably so that the
aggregate of those amounts is reduced to not greater than an amount equal to the
Threshold Amount less $35,000,000.
7.7.3 The definition of Market Value in this Agreement shall not, however, be
binding on the Restricted Parties or any other person for the purpose of
determining the price or other basis on which any such action is taken.
ARTICLE VIII
DEFAULT
8.1 EVENTS OF DEFAULT
Each of the following events shall constitute an Event of Default under
this Agreement:
(a) the Borrower fails to pay any amount of principal, interest, fees or
other Obligations (including any amount relating to a Bankers'
Acceptance or an L/C) within five Business Days of when due; or
(b) a Restricted Party makes any representation or warranty under any of
the Credit Documents which is incorrect or incomplete in any material
respect when made or deemed to be made, it being agreed that an
incorrect representation that there is no Pending Event of Default
shall not result in the Restricted Parties being disentitled to any
cure period otherwise associated with the Pending Event of Default; or
(c) a Restricted Party ceases or threatens to cease to carry on its
business, except as expressly permitted in this Agreement, or admits
its inability or fails to pay its debts generally; or
(d) a Restricted Party permits any default under one or more agreements or
instruments relating to its Debt other than the Obligations (including
but not limited to the Debt under the 1999 Notes, 2001 Notes,
Permitted Senior Secured Indebtedness, Permitted Subordinated Secured
Indebtedness and Permitted Unsecured Indebtedness to the extent they
are
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outstanding) or permits any other event to occur and to continue
without being waived or cured after any applicable grace period
specified in such agreements or instruments, if the effect of one or
more of such events is to accelerate, or to permit (in accordance with
any applicable inter-creditor and subordination arrangements) the
acceleration of, the date on which Debt in an aggregate amount of
$25,000,000 or more becomes due (whether or not acceleration actually
occurs), or if any such Debt in an aggregate amount of $25,000,000 or
more is not paid when due, taking into account any applicable grace
periods; or
(e) a Restricted Party becomes a bankrupt (voluntarily or involuntarily);
or becomes subject to any proceeding seeking liquidation, arrangement,
relief of creditors or the appointment of a receiver or trustee over,
or any judgment or order which has or might have a material and
adverse effect on, any material part of its Property, and such
proceeding, if instituted against the Restricted Party, or such
judgment or order, is not contested diligently, in good faith and on a
timely basis and dismissed or stayed within 30 days of its
commencement or issuance; or
(f) a Restricted Party denies, to any material extent, its obligations
under the Credit Documents or claims any of the Credit Documents to be
invalid, withdrawn or terminated in whole or in part; or any of the
Credit Documents is invalidated in any material respect by any act,
regulation or governmental action or is determined to be invalid in
any material respect by a court or other judicial entity and such
determination has not been stayed pending appeal; or
(g) one or more final judgments, writs of execution, garnishments or
attachments or similar processes representing claims in an aggregate
of $25,000,000 or more for all Restricted Parties at any time are
issued or levied against any of their Property and are not released,
bonded, satisfied, discharged, vacated, stayed or accepted for payment
by an insurer within 30 days after their entry, commencement or levy,
unless such process is contested diligently, in good faith and on a
timely basis and the applicable Restricted Party has made sufficient
cash offset or other arrangements satisfactory to the Lenders with
respect thereto; or
(h) an Encumbrancer takes possession of all or a substantial portion of
the Property of a Restricted Party by appointment of a receiver,
receiver and manager, or otherwise; or
(i) one or more transactions, events or conditions occur or exist which,
when taken together, have a material adverse effect on the Agent's or
the Lenders' ability to enforce their rights or remedies under any of
the Credit Documents, or the financial condition, business or
prospects of NSCL and its Subsidiaries, taken as a whole, in each case
as determined by the
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Majority Lenders, acting in good faith and on commercially reasonable
grounds; or
(j) there is a breach of Section 7.1 and NSCL does not, within 30 days
after it first identifies the breach, receive proceeds of an equity
investment in a form and an amount sufficient to satisfy the Agent
that the breach would not have occurred had the equity investment been
made at the beginning of the relevant period for measurement of the
provision of Section 7.1 that has been breached; or
(k) there is a breach of Section 7.7 or the Restricted Parties do not
comply with the requirements of Schedule L or any arrangements that
may be entered into as contemplated in Schedule L; or
(l) there is a breach of any other provision of any of the Credit
Documents and such breach is not corrected or otherwise satisfied
within 30 days after the Agent, for and on behalf of the Lenders,
gives written notice thereof; or
(m) there is a Change of Control Default or another change in the
ownership or control of a Restricted Party which is not permitted by
this Agreement; or
(n) at a time when Permitted Senior Secured Indebtedness in an aggregate
principal amount of $100,000,000 or more is outstanding, any Material
Permit expires or is withdrawn, cancelled, terminated, or modified so
as to cause a Material Adverse Change, and is not reinstated or
replaced within 30 days thereafter so as to reverse the Material
Adverse Change; or
(o) at a time when Permitted Senior Secured Indebtedness in an aggregate
principal amount of $100,000,000 or more is outstanding, a default
under any Material Contract by a Restricted Party or any other party
to a Material Contract occurs, or any other event occurs under any
Material Contract, and continues without being waived after any
applicable grace period specified in the Material Contract, if the
effect of the default or other event (if not waived) is to terminate
the Material Contract or if the default or other event results in a
declaration of non-performance being issued or similar step being
taken with respect to a Restricted Party, and the termination,
declaration or similar step, if it arose from a breach by or other
event relating to a Restricted Party, would cause a Material Adverse
Change or, if it relates to a Special Material Contract and arose from
a breach by or other event relating to a Person other than a
Restricted Party, would cause an Event of Default under clause (i)
above or would have a material adverse effect on the ability of the
Restricted Parties as a whole to perform and discharge their
obligations under this Agreement or the Material Contracts taken as a
whole, in each case unless a Replacement Contract is entered into in
respect of the Material Contract in question.
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8.2 ACCELERATION AND TERMINATION OF RIGHTS
If any Event of Default occurs, no Lender shall be under any further
obligation to make Advances and the Majority Lenders may instruct the Agent to
give notice to the Borrower (i) declaring the Lenders' obligations to make
Advances to be terminated, whereupon the same shall forthwith terminate, (ii)
declaring the Obligations or any of them to be forthwith due and payable,
whereupon they shall become and be forthwith due and payable without
presentment, demand, protest or further notice of any kind, all of which are
hereby expressly waived by the Borrower, and/or (iii) demanding that the
Borrower deposit forthwith with the Agent for the Lenders' benefit Collateral
equal to the full principal amount at maturity of all L/Cs and Bankers'
Acceptances then outstanding for its account.
Notwithstanding the preceding paragraph, if a Restricted Party becomes a
bankrupt (voluntarily or involuntarily), or institutes any proceeding seeking
liquidation, rearrangement, relief of debtors or creditor or the appointment of
a receiver or trustee over any material part of its Property, then without
prejudice to the other rights of the Lenders as a result of any such event,
without any notice or action of any kind by the Agent or the Lenders, and
without presentment, demand or protest, the Lenders' obligation to make Advances
shall immediately terminate, the Obligations shall immediately become due and
payable and the Borrower shall be obligated to deposit forthwith with the Agent
for the Lenders' benefit Collateral equal to the full principal amount at
maturity of all L/Cs and Bankers' Acceptances then outstanding for its account.
8.3 PAYMENT OF L/CS
Immediately upon any Obligations becoming due and payable under Section
8.2, the Borrower shall, without necessity of further act or evidence, be and
become thereby unconditionally obligated to deposit forthwith with the Agent for
the Lenders' benefit Collateral equal to the full principal amount at maturity
of all L/Cs and Bankers' Acceptances then outstanding for its account and the
Borrower hereby unconditionally promises and agrees to deposit with the Agent
immediately upon such demand Collateral in the amount so demanded. The Borrower
authorizes the Lenders, or any of them, to debit its accounts with the amount
required to pay such L/Cs and to pay such Bankers' Acceptances, notwithstanding
that such Bankers' Acceptances may be held by the Lenders, or any of them, in
their own right at maturity. Amounts paid to the Agent pursuant to such a demand
in respect of Bankers' Acceptances and L/Cs shall be applied against, and shall
reduce, pro rata among the Lenders, to the extent of the amounts paid to the
Agent in respect of Bankers' Acceptances and L/Cs, respectively, the obligations
of the Borrower to pay amounts then or thereafter payable under Bankers'
Acceptances and L/Cs, respectively, at the times amounts become payable
thereunder.
The Borrower shall be entitled to receive interest on cash held as
Collateral in accordance with Section 11.16.
8.4 REMEDIES
Upon the occurrence of any event by which any of the Obligations become due
and payable under Section 8.2, the Security shall become immediately enforceable
and the
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Majority Lenders may instruct the Agent to take such action or proceedings on
behalf of the Lenders and in compliance with applicable Requirements of Law as
the Majority Lenders in their sole discretion deem expedient to enforce the
same, all without any additional notice, presentment, demand, protest or other
formality, all of which are hereby expressly waived by the Restricted Parties.
8.5 SAVING
The Lenders shall not be under any obligation to the Restricted Parties or
any other person to realize any collateral or enforce the Security or any part
thereof or to allow any of the collateral to be sold, dealt with or otherwise
disposed of. The Lenders shall not be responsible or liable to the Restricted
Parties or any other person for any loss or damage upon the realization or
enforcement of, the failure to realize or enforce the collateral or any part
thereof or the failure to allow any of the collateral to be sold, dealt with or
otherwise disposed of or for any act or omission on their respective parts or on
the part of any director, officer, agent, servant or adviser in connection with
any of the foregoing, except that a Lender may be responsible or liable for any
loss or damage arising from the wilful misconduct or gross negligence of that
Lender.
8.6 PERFORM OBLIGATIONS
If an Event of Default has occurred and is continuing and if any Restricted
Party has failed to perform any of its covenants or agreements in the Credit
Documents, the Majority Lenders, may, but shall be under no obligation to,
instruct the Agent on behalf of the Lenders to perform any such covenants or
agreements in any manner deemed fit by the Majority Lenders without thereby
waiving any rights to enforce the Credit Documents. The reasonable expenses
(including any legal costs) paid by the Agent and/or the Lenders in respect of
the foregoing shall be secured by the Security.
8.7 THIRD PARTIES
No person dealing with the Lenders or any agent of the Lenders shall be
concerned to inquire whether the Security has become enforceable, or whether the
powers which the Lenders are purporting to exercise have become exercisable, or
whether any Obligations remain outstanding upon the security thereof, or as to
the necessity or expediency of the stipulations and conditions subject to which
any sale shall be made, or otherwise as to the propriety or regularity of any
sale or other disposition or any other dealing with the collateral charged by
such Security or any part thereof.
8.8 POWER OF ATTORNEY
Effective upon occurrence and during the continuance of an Event of
Default, each Restricted Party hereby irrevocably constitutes and appoints any
Vice-President, Managing Director or more senior officer of the Agent its due
and lawful attorney with full power of substitution in its name and on its
behalf, during the continuance of an Event of Default, to enforce any right,
title or interest of the Lenders in, to or under the Security or any part
thereof or any obligation to that Restricted Party or remedy available to that
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Restricted Party. This appointment is irrevocable to the maximum extent
permitted by applicable law.
8.9 REMEDIES CUMULATIVE
The rights and remedies of the Lenders under the Credit Documents are
cumulative and are in addition to and not in substitution for any rights or
remedies provided by law. Any single or partial exercise by the Lenders of any
right or remedy for a default or breach of any term, covenant, condition or
agreement herein contained shall not be deemed to be a waiver of or to alter,
affect, or prejudice any other right or remedy or other rights or remedies to
which the Lenders may be lawfully entitled for the same default or breach. Any
waiver by the Lenders of the strict observance, performance or compliance with
any term, covenant, condition or agreement herein contained, and any indulgence
granted by the Lenders shall be deemed not to be a waiver of any subsequent
default.
8.10 SET-OFF OR COMPENSATION
In addition to and not in limitation of any rights now or hereafter granted
under applicable law, if the Obligations become due and payable pursuant to
Section 8.2, the Lenders, or any of them, may at any time and from time to time
without notice to the Restricted Parties or any other person, any notice being
expressly waived by the Restricted Parties, set-off and compensate and apply any
and all deposits, general or special, time or demand, provisional or final,
matured or unmatured, the Market Value of Derivatives that is positive from any
Restricted Party's perspective, and any other indebtedness at any time owing by
the Lenders, or any of them, to or for the credit of or the account of any
Restricted Party against and on account of the Obligations notwithstanding that
any of them are contingent or unmatured.
ARTICLE IX
THE AGENT AND THE LENDERS
9.1 AUTHORIZATION OF AGENT AND RELATIONSHIP
Each Lender hereby appoints TD as Agent and TD hereby accepts such
appointment. The appointment may only be terminated as expressly provided in
this Agreement. Each Lender hereby authorizes the Agent to take all action on
its behalf and to exercise such powers and perform such duties under this
Agreement as are expressly delegated to the Agent by its terms, together with
all powers reasonably incidental thereto. The Agent shall have only those duties
and responsibilities which are of a solely mechanical and administrative nature
and which are expressly specified in this Agreement, and it may perform such
duties by or through its agents or employees, but shall not by reason of this
Agreement have a fiduciary duty in respect of any Lender. As to any matters not
expressly provided for by this Agreement, the Agent is not required to exercise
any discretion or to take any action, but is required to act or to refrain from
acting (and is fully protected in so acting or refraining from acting) upon the
instructions of the Lenders or the Majority Lenders, as the case may be. Those
instructions shall be binding upon all Lenders, but the Agent is not required to
take any action which exposes the Agent to personal liability or which is
contrary to this Agreement or applicable law.
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Without limiting the foregoing, each of the Lenders hereby grants to the
Agent a power of attorney, for the purposes of laws applicable to the Security
from time to time, to sign documents comprising the Security from time to time
(as the party accepting the grant of the security), and also grants to the Agent
the right to delegate its authority as attorney to any other person, whether or
not an officer or employee of the Agent. Each of the Lenders also hereby grants
to the Agent, while it is acting as collateral agent or trustee in connection
with the Security, a power of attorney, for the purposes of Article 2692 of the
Civil Code of Quebec and for the purposes of other laws applicable to the
Security from time to time, to sign documents comprising the Security from time
to time (as the party accepting the grant of the security), and also grants to
the Agent in that capacity the right to delegate its authority as attorney to
any other person, whether or not an officer or employee of the Agent.
Without limiting the foregoing, the Agent may perform its duties through
one or more of its offices, may designate different offices for the performance
of different duties from time to time and may delegate its duties to one or more
of its affiliates from time to time. The provisions of this Agreement regarding
the Agent shall apply mutatis mutandis to the affiliates of the Agent to whom
duties may be delegated from time to time.
Neither the Arrangers nor the Syndication Agents have any responsibility to
the Borrower or the Lenders in that capacity.
9.2 DISCLAIMER OF AGENT
The Agent makes no representation or warranty, and assumes no
responsibility with respect to the due execution, legality, validity,
sufficiency, enforceability or collectability of this Agreement or any other
Credit Document. The Agent assumes no responsibility for the financial condition
of the Restricted Parties, or for the performance of the obligations of the
Restricted Parties under this Agreement or any other Credit Document. The Agent
assumes no responsibility with respect to the accuracy, authenticity, legality,
validity, sufficiency or enforceability of any documents, papers, materials or
other information furnished by the Restricted Parties to the Agent on behalf of
the Lenders. The Agent shall not be required to ascertain or inquire as to the
performance or observance of any of the terms, conditions, provisions, covenants
or agreements contained herein or as to the use of the proceeds of the Credits
or (unless the officers or employees of the Lender acting as Agent active in
their capacity as officers or employees on the Restricted Parties' accounts have
actual knowledge thereof, or have been notified thereof in writing by a
Restricted Party or a Lender) of the existence or possible existence of any
Event of Default or Pending Event of Default. Neither the Agent nor any of its
directors, officers, agents or employees shall be liable for any action taken or
omitted to be taken by it or them as Agent under or in connection with the
Agreement except for its or their own gross negligence or wilful misconduct.
With respect to its Commitment, the Lender acting as Agent shall have the same
rights and powers hereunder as any other Lender, and may exercise the same as
though it were not performing the duties and functions delegated to it as Agent
hereunder.
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9.3 FAILURE OF LENDER TO FUND
9.3.1 Unless the Agent has actual knowledge that a Lender has not made or will
not make available to the Agent for value on a Drawdown Date the applicable
amount required from such Lender pursuant to Sections 5.11 or 5.15, the Agent
shall be entitled to assume that such amount has been or will be received from
such Lender when so due and the Agent may (but shall not be obliged to), in
reliance upon such assumption, make available to the Borrower a corresponding
amount. If such amount is not in fact received by the Agent from such Lender on
such Drawdown Date and the Agent has made available a corresponding amount to
the Borrower on such Drawdown Date as aforesaid, such Lender shall pay to the
Agent on demand an amount equal to the product of (i) the Interbank Reference
Rate per annum multiplied by (ii) the amount that should have been paid to the
Agent by such Lender on such Drawdown Date and was not, multiplied by (iii) a
fraction, the numerator of which is the number of days that have elapsed from
and including such Drawdown Date to but excluding the date on which the amount
is received by the Agent from such Lender and the denominator of which is 365. A
certificate of the Agent containing details of the amount owing by a Lender
under this Section shall be binding and conclusive in the absence of manifest
error. If any such amount is not in fact received by the Agent from such Lender
on such Drawdown Date, the Agent shall be entitled to recover from the Borrower,
on demand, the related amount made available by the Agent to the Borrower as
aforesaid together with interest thereon at the applicable rate per annum
payable by the Borrower hereunder.
9.3.2 Notwithstanding the provisions of Section 9.3.1, if any Lender fails to
make available to the Agent its Proportionate Share of any Advance (such Lender
being herein called the "DEFAULTING LENDER"), the Agent shall forthwith give
notice of such failure by the Defaulting Lender to the Borrower and the other
Lenders. The Agent shall then forthwith give notice to the other Lenders that
any Lender may make available to the Agent all or any portion of the Defaulting
Lender's Proportionate Share of such Advance (but in no way shall any other
Lender or the Agent be obliged to do so) in the place of the Defaulting Lender.
If more than one Lender gives notice that it is prepared to make funds available
in the place of a Defaulting Lender in such circumstances and the aggregate of
the funds which such Lenders (herein collectively called the "CONTRIBUTING
LENDERS" and individually called the "CONTRIBUTING LENDER") are prepared to make
available exceeds the amount of the Advance which the Defaulting Lender failed
to make, then each Contributing Lender shall be deemed to have given notice that
it is prepared to make available its Proportionate Share of such Advance based
on the Contributing Lenders' relative commitments to advance in such
circumstances. If any Contributing Lender makes funds available in the place of
a Defaulting Lender in such circumstances, then the Defaulting Lender shall pay
to any Contributing Lender making the funds available in its place, forthwith on
demand, any amount advanced on its behalf together with interest thereon at the
rate applicable to such Advance from the date of advance to the date of payment,
against payment by the Contributing Lender making the funds available of all
interest received in respect of the Advance from the Borrower. The failure of
any Lender to make available to the Agent its Proportionate Share of any Advance
as required herein shall not relieve any other Lender of its obligations to make
available to the Agent its Proportionate Share of any Advance as required
herein.
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9.4 PAYMENTS BY THE BORROWER
All payments made by or on behalf of the Borrower pursuant to this
Agreement shall be made to and received by the Agent and shall be distributed by
the Agent to the Lenders as soon as possible upon receipt by the Agent. Except
as required to make payments in respect of the Other Secured Obligations or as
otherwise provided in this Agreement (including but not limited to Section 9.5),
the Agent shall distribute:
(a) payments of interest in accordance with each Lender's Proportionate
Share of the relevant Credit;
(b) repayments of principal in accordance with each Lender's Proportionate
Share of the relevant Credit; or
(c) all other payments received by the Agent including, without
limitation, amounts received upon the realization of Security, in
accordance with each Lender's Proportionate Share of the relevant
Credit provided, however, that with respect to proceeds of
realization, no Lender shall receive an amount in excess of the
amounts owing to it in respect of the Obligations.
If the Agent does not distribute a Lender's share of a payment made by the
Borrower to that Lender for value on the day that payment is made or deemed to
have been made to the Agent, the Agent shall pay to the Lender on demand an
amount equal to the product of (i) the Interbank Reference Rate per annum
multiplied by (ii) the Lender's share of the amount received by the Agent from
the Borrower and not so distributed, multiplied by (iii) a fraction, the
numerator of which is the number of days that have elapsed from and including
the date of receipt of the payment by the Agent to but excluding the date on
which the payment is made by the Agent to such Lender and the denominator of
which is 365.
9.5 PAYMENTS BY AGENT
9.5.1 For greater certainty, the following provisions shall apply to any and all
payments made by the Agent to the Lenders hereunder:
(a) the Agent shall be under no obligation to make any payment (whether in
respect of principal, interest, fees or otherwise) to any Lender until
an amount in respect of such payment has been received by the Agent
from the Borrower;
(b) if the Agent receives less than the full amount of any payment of
principal, interest, fees or other amount owing by the Borrower under
this Agreement, the Agent shall have no obligation to remit to each
Lender any amount other than such Lender's Proportionate Share of that
amount which is the amount actually received by the Agent;
(c) if any Lender advances more or less than its Proportionate Share of a
Credit, such Lender's entitlement to such payment shall be increased
or
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reduced, as the case may be, in proportion to the amount actually
advanced by such Lender;
(d) if a Lender's Proportionate Share of an Advance has been advanced, or
a Lender's Commitment has been outstanding, for less than the full
period to which any payment (other than a payment of principal) by the
Borrower relates, such Lender's entitlement to such payment shall be
reduced in proportion to the length of time such Lender's
Proportionate Share of the relevant Credit or such Lender's
Commitment, as the case may be, has actually been outstanding;
(e) the Agent acting reasonably and in good faith shall, after
consultation with the Lenders in the case of any dispute, determine in
all cases the amount of all payments to which each Lender is entitled
and such determination shall, in the absence of manifest error, be
binding and conclusive; and
(f) upon request, the Agent shall deliver a statement detailing any of the
payments to the Lenders referred to herein.
9.5.2 Unless the Agent has actual knowledge that the Borrower has not made or
will not make a payment to the Agent for value on the date in respect of which
the Borrower has notified the Agent that the payment will be made, the Agent
shall be entitled to assume that such payment has been or will be received from
the Borrower when due and the Agent may (but shall not be obliged to), in
reliance upon such assumption, pay the Lenders corresponding amounts. If the
payment by such Borrower is in fact not received by the Agent on the required
date and the Agent has made available corresponding amounts to the Lenders, the
Borrower shall, without limiting its other obligations under this Agreement,
indemnify the Agent against any and all liabilities, obligations, losses,
damages, penalties, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on or incurred by the Agent as a result, except
for those arising from the Agent's gross negligence or wilful misconduct. A
certificate of the Agent with respect to any amount owing by the Borrower under
this Section shall be conclusive evidence of the amount owing in the absence of
manifest error. If the payment is not received by the Agent from the Borrower
within a reasonable time following the disbursement to the Lenders by the Agent,
the Lenders shall return the amounts received by them to the Agent with interest
at the Interbank Reference Rate.
9.6 DIRECT PAYMENTS
The Lenders agree among themselves that, except as otherwise provided for
in this Agreement (including but not limited to Sections 11.14 and 11.15),
except as necessary to adjust for Advances that are not in each Lender's
Proportionate Share under the Credits, and except for receipts relating to the
Other Secured Obligations, all sums received by a Lender relating to this
Agreement or by virtue of the Security, whether received by voluntary payment,
by the exercise of the right of set-off or compensation or by counterclaim,
cross-action or as proceeds of realization of any Security or otherwise, shall
be shared by each Lender in its Proportionate Share under the Credits and each
Lender
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undertakes to do all such things as may be reasonably required to give full
effect to this Section, including without limitation, the purchase from other
Lenders of such notes or a portion thereof by the Lender who has received an
amount in excess of its Proportionate Share under the Credits as shall be
necessary to cause such purchasing Lender to share the excess amount rateably in
its Proportionate Share under the Credits with the other Lenders. If any sum
which is so shared is later recovered from the Lenders who originally received
it, the Lender shall restore its Proportionate Share under the Credits of such
sum to such Lenders, without interest. If any Lender shall obtain any payment of
moneys due under this Agreement as referred to above, it shall forthwith remit
such payment to the Agent and, upon receipt, the Agent shall distribute such
payment in accordance with the provisions of Section 9.5.
9.7 ADMINISTRATION OF THE CREDITS
9.7.1 Unless otherwise specified herein, the Agent shall perform the following
duties under this Agreement:
(a) prior to an Advance, ensure that all conditions precedent have been
fulfilled in accordance with the terms of this Agreement, subject to
Section 9.8.2 and any other applicable terms of this Agreement;
(b) take delivery of each Lender's Proportionate Share of an Advance and
make all Advances hereunder in accordance with the procedures set
forth in Sections 5.11 and 5.15;
(c) use reasonable efforts to collect promptly all sums due and payable by
the Borrower pursuant to this Agreement;
(d) make all payments to the Lenders in accordance with the provisions
hereof;
(e) hold the Security other than the Trustee Security on behalf of the
Lenders and take all necessary steps to comply with registration
requirements so that the Security remains perfected under applicable
laws, but each Lender shall notify the Agent of any circumstance that
might affect the perfection of the Security of which the Lender
becomes aware;
(f) hold all legal documents relating to the Credits, maintain complete
and accurate records showing all Advances made by the Lenders, all
remittances and payments made by the Borrower to the Agent, all
remittances and payments made by the Agent to the Lenders and all fees
or any other sums received by the Agent and, except for accounts,
records and documents relating to the fees payable under the Fee
Agreement, allow each Lender and their respective advisors to examine
such accounts, records and documents at their own expense, and provide
any Lender, upon reasonable notice, with such copies thereof as such
Lender may reasonably require from time to time at the Lender's
expense;
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(g) except as otherwise specifically provided for in this Agreement,
promptly advise each Lender upon receipt of each notice and deliver to
each Lender, promptly upon receipt, all other written communications
furnished by the Restricted Parties to the Agent on behalf of the
Lenders pursuant to this Agreement, including without limitation
copies of financial reports and certificates which are to be furnished
to the Agent;
(h) forward to each of the Lenders, upon request and at the expense of the
Lender so requesting (other than customary record books which shall be
provided at the expense of the Borrower), copies of this Agreement,
the Security and other Credit Documents (other than the Fee
Agreement);
(i) promptly forward to each Lender, upon request, an up-to-date loan
status report; and
(j) upon learning of same, promptly advise each Lender in writing of the
occurrence of an Event of Default or Pending Event of Default or the
occurrence of any event, condition or circumstance which would cause a
Material Adverse Change or of any material adverse information coming
to the attention of the Agent (using reasonable efforts) relative to
the Security, provided that, except as aforesaid, the Agent shall be
under no duty or obligation whatsoever to provide any notice to the
Lenders and further provided that each Lender hereby agrees to notify
the Agent of any Event of Default or Pending Event of Default of which
it may reasonably become aware.
9.7.2 The Agent may take the following actions only with the prior consent of
the Majority Lenders, unless otherwise specified in this Agreement:
(a) subject to Section 9.7.3, exercise any and all rights of approval
conferred upon the Lenders by this Agreement;
(b) give written notice to the Restricted Parties in respect of any matter
in respect of which notice may be required, permitted, necessary or
desirable in accordance with or pursuant to this Agreement, promptly
after receiving the consent of the Majority Lenders, except that the
Agent shall, without direction from the Lenders, immediately give the
Borrower notice of any payment that is due or overdue under the terms
of this Agreement unless the Agent considers that it should request
the direction of the Majority Lenders, in which case the Agent shall
promptly request that direction;
(c) amend, modify or waive any of the terms of this Agreement, including
waiver of an Event of Default or Pending Event of Default, if such
action is not otherwise provided for in Section 9.7.3;
(d) declare an Event of Default or take action to enforce performance of
the Obligations and to realize upon the Security including the
appointment of a receiver, the exercise of powers of distress, lease
or sale given by the
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Security or by law and take foreclosure proceedings and/or pursue any
other legal remedy necessary;
(e) decide to accelerate the amounts outstanding under the Credits;
(f) pay insurance premiums, taxes and any other sums as may be reasonably
required to protect the interests of the Lenders; and
(g) enter into or amend, modify or waive any term of any Intercreditor
Agreement.
9.7.3 The Agent may take the following actions only if the prior unanimous
consent of the Lenders is obtained, unless otherwise specified herein:
(a) amend, modify, discharge, terminate or waive any of the terms of the
Security;
(b) amend, modify, discharge, terminate or waive any of the terms of this
Agreement if such amendment, modification, discharge, termination or
waiver would increase the amount of any Credit, amend the purpose of
any Credit, reduce the interest rates and similar charges applicable
to any Credit, reduce the fees payable with respect to any Credit,
extend any date fixed for payment of principal, interest or any other
amount relating to any Credit or extend the term of any Credit (for
greater certainty, any extension of the Credits shall be made in
accordance with Section 2.4); and
(c) amend the definition of "Majority Lenders" or this Section 9.7.3.
For greater certainty, no Lender's Commitment or Proportionate Share may be
amended without the consent of that Lender.
9.7.4 Notwithstanding Sections 9.7.2 and 9.7.3, the Agent may, without the
consent of the Lenders, make amendments to the Credit Documents that are for the
sole purpose of curing any immaterial or administrative ambiguity, defect or
inconsistency, but shall immediately notify the Lenders of any such action. The
Agent may also consent from time to time to any change to the list of Material
Contracts provided by NSCL in accordance with Section 3.1.8 and may discharge
any Security (or direct the Trustee to do so) to the extent necessary to allow
any Restricted Party to complete any sale or other disposition of Property
permitted by this Agreement.
9.7.5 As between the Restricted Parties, on the one hand, and the Agent and the
Lenders, on the other hand:
(a) all statements, certificates, consents and other documents which the
Agent purports to deliver on behalf of the Lenders or the Majority
Lenders shall be binding on each of the Lenders, and the Restricted
Parties shall not be
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required to ascertain or confirm the authority of the Agent in
delivering such documents;
(b) all certificates, statements, notices and other documents which are
delivered by the Restricted Parties to the Agent in accordance with
this Agreement shall be deemed to have been duly delivered to each of
the Lenders;
(c) all payments which are delivered by the Borrower to the Agent in
accordance with this Agreement shall be deemed to have been duly
delivered to each of the Lenders;
(d) unless an Event of Default or Pending Event of Default has occurred
and is continuing, NSCL's consent to the appointment of any Successor
Agent must be obtained, but NSCL's consent shall not be unreasonably
withheld.
9.8 RIGHTS OF AGENT
9.8.1 In administering the Credits, the Agent may retain, at the expense of the
Lenders if such expenses are not recoverable from the Borrower, such solicitors,
counsel, auditors and other experts and agents as the Agent may select, in its
sole discretion, acting reasonably and in good faith after consultation with the
Lenders.
9.8.2 The Agent shall be entitled to rely on any communication, instrument or
document believed by it to be genuine and correct and to have been signed by the
proper individual or individuals, and shall be entitled to rely and shall be
protected in relying as to legal matters upon opinions of independent legal
advisors selected by it. The Agent may also assume that any representation made
by a Restricted Party is true and that no Event of Default or Pending Event of
Default has occurred unless the officers or employees of the Lender acting as
Agent, active in their capacity as officers or employees responsible for the
Restricted Parties' account have actual knowledge to the contrary or have
received notice to the contrary from any other party to this Agreement.
9.8.3 The Agent may, without any liability to account, accept deposits from and
lend money to and generally engage in any kind of banking, or other business
with the Restricted Parties, as if it were not the Agent.
9.8.4 Except in its own right as a Lender, the Agent shall not be required to
advance its own funds for any purpose, and in particular, shall not be required
to pay with its own funds insurance premiums, taxes or public utility charges or
the cost of repairs or maintenance with respect to the assets which are the
subject matter of the Security, nor shall it be required to pay with its own
funds the fees of solicitors, counsel, auditors, experts or agents engaged by it
as permitted hereby.
9.8.5 The Agent shall be entitled to receive a fee for acting as Agent as agreed
in the Fee Agreement or as otherwise agreed between the Agent and NSCL from time
to time.
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9.9 ACKNOWLEDGEMENTS, REPRESENTATIONS AND COVENANTS OF LENDERS
9.9.1 It is acknowledged and agreed by each Lender that it has itself been, and
will continue to be, solely responsible for making its own independent appraisal
of and investigations into the financial condition, creditworthiness, property,
affairs, status and nature of the Restricted Parties. Accordingly, each Lender
confirms to the Agent that it has not relied, and will not hereafter rely, on
the Agent (a) to check or inquire on its behalf into the adequacy or
completeness of any information provided by the Restricted Parties under or in
connection with this Agreement or the transactions herein contemplated (whether
or not such information has been or is hereafter distributed to such Lender by
the Agent) or (b) to assess or keep under review on its behalf the financial
condition, creditworthiness, property, affairs, status or nature of the
Restricted Parties.
9.9.2 Each Lender represents and warrants that it has the legal capacity to
enter into this Agreement pursuant to its charter and any applicable legislation
and has not violated its charter, constating documents or any applicable
legislation by so doing.
9.9.3 Each Lender agrees to indemnify the Agent (to the extent not reimbursed by
the Borrower), rateably according to its Proportionate Share from and against
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by, or asserted against the Agent
in any way relating to or arising out of the Credit Documents or the
transactions therein contemplated, provided that no Lender shall be liable for
any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from the
Agent's gross negligence or wilful misconduct. Without limiting the generality
of the foregoing, each Lender agrees to reimburse the Agent for its
Proportionate Share of any out-of-pocket expenses (including counsel fees)
incurred by the Agent in connection with the preservation of any rights of the
Agent or the Lenders under, or the enforcement of, or legal advice in respect of
rights or responsibilities under this Agreement, to the extent that the Agent is
not reimbursed for such expenses by the Borrower. The obligation of the Lenders
to indemnify the Agent shall survive the termination of this Agreement and shall
be performed by the Lenders promptly upon demand by the Agent.
9.9.4 Each of the Lenders acknowledges and confirms that in the event that the
Agent does not receive payment in accordance with this Agreement, it shall not
be the obligation of the Agent to maintain the Credits in good standing nor
shall any Lender have recourse to the Agent in respect of any amounts owing to
such Lender under this Agreement.
9.9.5 Each Lender acknowledges and agrees that its obligation to advance its
Proportionate Share of Advances in accordance with the terms of this Agreement
is independent and in no way related to the obligation of any other Lender
hereunder.
9.9.6 Each Lender hereby acknowledges receipt of a copy of this Agreement and
the Security (to the extent that the Security has been delivered) and
acknowledges that it is satisfied with the form and content of such documents.
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9.10 COLLECTIVE ACTION OF THE LENDERS
Each of the Lenders hereby acknowledges that to the extent permitted by
applicable law, the Security and the remedies provided under the Credit
Documents to the Lenders are for the benefit of the Lenders collectively and
acting together and not severally and further acknowledges that its rights
hereunder and under the Security are to be exercised not severally, but by the
Agent upon the decision of the Majority Lenders or Lenders as required by this
Agreement. Accordingly, notwithstanding any of the provisions contained herein
or in the Security each of the Lenders hereby covenants and agrees that it shall
not be entitled to take any action hereunder or thereunder including, without
limitation, any declaration of default hereunder or thereunder but that any such
action shall be taken only by the Agent with the prior written agreement of the
Majority Lenders. Each of the Lenders hereby further covenants and agrees that
upon any such written agreement being given by the Majority Lenders, it shall
co-operate fully with the Agent to the extent requested by the Agent.
Notwithstanding the foregoing, in the absence of instructions from the Lenders
and where in the sole opinion of the Agent, acting reasonably and in good faith,
the exigencies of the situation warrant such action, the Agent may without
notice to or consent of the Lenders take such action on behalf of the Lenders as
it deems appropriate or desirable in the interest of the Lenders.
9.11 SUCCESSOR AGENT
Subject to the appointment and acceptance of a Successor Agent as provided
in this Section, and subject to Section 9.7.5(d), the Agent may resign at any
time by giving 30 days' written notice thereof to the Lenders and NSCL, and may
be removed at any time by the Majority Lenders upon 30 days' written notice.
Upon receipt of notice by the Lenders of the resignation of the Agent, or upon
giving notice of termination to the Agent, the Majority Lenders may, within 21
days, appoint a successor from among the Lenders or, if no Lender is willing to
accept such an appointment, from among other banks to which the Bank Act
(Canada) applies, which each have combined capital and reserves in excess of
$250,000,000, and which have offices in Vancouver, Toronto and New York (the
"SUCCESSOR AGENT"). If no Successor Agent has been so appointed and has accepted
such appointment within 21 days after the retiring Agent's giving of notice of
resignation or receiving of notice of termination, then the retiring Agent may,
on behalf of the Lenders, appoint a Successor Agent. Upon the acceptance of any
appointment as Agent hereunder by a Successor Agent, the retiring Agent shall
pay the Successor Agent any unearned portion of any fee paid to the Agent for
acting as such, and the Successor Agent shall succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Agent, and the
retiring Agent shall be discharged from its further duties and obligations as
Agent under this Agreement and the other Credit Documents. After any retiring
Agent's resignation hereunder as Agent, the provisions of this Article shall
continue to enure to its benefit and be binding upon it as to any actions taken
or omitted to be taken by it while it was Agent hereunder.
9.12 PROVISIONS OPERATIVE BETWEEN LENDERS AND AGENT ONLY
Except for the provisions of Sections 9.7.5, 9.9.2, 9.9.5, 9.10, 9.11 and
9.12, the provisions of this Article relating to the rights and obligations of
the Lenders and the Agent
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inter se shall be operative as between the Lenders and the Agent only, and the
Restricted Parties shall not have any rights or obligations under or be entitled
to rely for any purpose upon such provisions.
ARTICLE X
ADDITIONAL LENDERS,
SUCCESSORS AND ASSIGNS
10.1 SUCCESSORS AND ASSIGNS
10.1.1 The Credit Documents shall be binding upon and enure to the benefit of
the Agent, the Arrangers, each Lender, the Restricted Parties and their
respective successors and permitted assigns, except that the Restricted Parties
shall not assign any rights or obligations with respect to this Agreement or any
of the other Credit Documents without the prior written consent of each Lender.
The collective rights and obligations of the Lenders under this Agreement
are assignable in whole or in part (pro rata) and any Lender shall be entitled
to assign in whole or in part its individual rights and obligations hereunder or
to permit other financial institutions to participate in the Credits, all in
accordance with the provisions of Section 10.2 and the other terms of this
Agreement. The Restricted Parties hereby consent to the disclosure of any
information relating to the Restricted Parties to any potential Lender or
participant provided that the potential Lender or participant agrees in writing
to keep the information confidential.
No assignment shall be made in respect of an aggregate Commitment of less
than $5,000,000 in respect of the Credits. No assignment may result in the
Commitment of any Lender, determined as of the effective date of the Assignment
Agreement with respect to such assignment, being less than $5,000,000.
Notwithstanding any other provisions of this Agreement, each Lender agrees
that it shall not offer to assign or assign any portion of its rights and
obligations under this Agreement including, without limitation, any portion of
its Commitment, without the prior written consent of the Agent and NSCL, which
consent shall not be unreasonably withheld, except that (i) the consent of the
Agent and NSCL shall not be required for an assignment of a Lender's interest in
the Credits to another Lender and (ii) the consent of NSCL shall not be required
if an Event of Default has occurred and is continuing. The Lenders agree that
NSCL's consent shall not be considered to be unreasonably withheld if the
proposed assignment would result in any material additional cost being incurred
by the Borrower, including but not limited to any gross-up for withholding tax
under Section 11.14. Notwithstanding the foregoing, the Borrower may not
withhold its consent because of any increase in the discount rate applicable to
Bankers' Acceptances of the proposed assignee compared to the assignor.
10.1.2 A participation by a Lender of its interest (or a part thereof) hereunder
or a payment by a participant to a Lender as a result of the participation will
not constitute a payment hereunder to the Lender or an Advance to the Borrower.
A payment (excluding the effect of any premium or discount) made by an assignee
to an assigning Lender in order
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for the assignee to assume its Proportionate Share of Advances made by the
assigning Lender will reduce the Advances owing by the Borrower to the assigning
Lender by the amount of the payment and will be result in Advances in the amount
of the payment becoming owed to the assignee by the Borrowers as of the date
that the payment is made. However, no such payment shall, as between the
Borrowers and the Lenders, be or be deemed to be a repayment by the Borrowers or
a new Advance by the Lenders.
10.2 ASSIGNMENTS
10.2.1 Subject to Section 10.1 and the other terms of this Agreement, the
Lenders collectively or individually may assign to one or more assignees all or
a portion of their respective rights and obligations under this Agreement
(including, without limitation, all or a portion of their respective
Commitments). The parties to each such assignment shall execute and deliver an
Assignment Agreement to the Agent, for its consent (if necessary) and recording
in the Register and shall pay a processing and recording fee to the Agent in the
amount of $3500. After such execution, delivery, consent and recording (i) the
assignee thereunder shall be a party to this Agreement and, to the extent that
rights and obligations hereunder have been assigned to it, have the rights and
obligations of a Lender hereunder and (ii) the assigning Lender thereunder
shall, to the extent that rights and obligations hereunder have been assigned by
it pursuant to such Assignment Agreement, relinquish its rights, other than
rights to expense reimbursement and indemnification to which it is then entitled
hereunder, and be released from its obligations under this Agreement, other than
obligations in respect of which it is then in default and liabilities arising
from its actions prior to the assignment. In the case of an Assignment Agreement
covering all or the remaining portion of an assigning Lender's rights and
obligations under this Agreement, such Lender shall cease to be a party hereto.
10.2.2 The agreements of an assignee contained in an Assignment Agreement shall
benefit the assigning Lender thereunder, the other Lenders and the Agent in
accordance with the terms of the Assignment Agreement.
10.2.3 The Agent shall maintain at its address referred to herein a copy of each
Assignment Agreement delivered to and acknowledged by it and a register for
recording the names and addresses of the Lenders and the Commitment under the
Credits of each Lender from time to time (the "REGISTER"). The entries in the
Register shall be conclusive and binding for all purposes, absent manifest
error. The Borrower, the Agent and each of the Lenders may treat each person
whose name is recorded in the Register as a Lender hereunder for all purposes of
this Agreement, and need not recognize any person as a Lender unless it is
recorded in the Register as a Lender. The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time to
time upon reasonable prior notice.
10.2.4 Upon its receipt of an Assignment Agreement executed by an assigning
Lender and an assignee and approved by the Agent (as evidenced by its execution
thereof), the Agent shall, if the Assignment Agreement has been completed and is
in the required form with such immaterial changes as are acceptable to the
Agent, record the information
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contained therein in the Register and update Schedule E. The Agent shall provide
NSCL with an updated version of Schedule E following any change to Schedule E.
10.3 PARTICIPATIONS
Each Lender may (subject to the provisions of Section 10.1) sell
participations to one or more financial institutions or other persons in or to
all or a portion of its rights and obligations under this Agreement (including,
without limitation, all or a portion of its Commitment), but the participant
shall not become a Lender and:
(a) the Lender's obligations under this Agreement (including, without
limitation, its Commitment) shall remain unchanged;
(b) the Lender shall remain solely responsible to the other parties hereto
for the performance of such obligations;
(c) the Borrower, the Agent and the other Lenders shall continue to deal
solely and directly with the Lender in connection with the Lender's
rights and obligations under this Agreement;
(d) no participant shall have any right to approve any amendment or waiver
of any provision of this Agreement, or any consent to any departure by
any person therefrom.
Notwithstanding the foregoing, each participant shall have the same
benefit, as if it was a Lender, with respect to the rights provided to the
Lenders in Section 11.15. Each participant shall also have the right to be
provided by the Lender from whom it has obtained its participation with all
information relating to the Restricted Parties which is provided to any Lender.
Without limiting the foregoing, no participant shall have the benefit of Section
11.14 except to the extent that the Lender from whom it has obtained its
participation is itself entitled to compensation under that Section.
ARTICLE XI
MISCELLANEOUS PROVISIONS
11.1 HEADINGS AND TABLE OF CONTENTS
The headings of the Articles and Sections and the Table of Contents are
inserted for convenience of reference only and shall not affect the construction
or interpretation of this Agreement.
11.2 ACCOUNTING TERMS
Each accounting term used in this Agreement, unless otherwise defined
herein, has the meaning assigned to it under GAAP.
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11.3 CAPITALIZED TERMS
All capitalized terms used in any of the Credit Documents (other than this
Agreement) which are defined in this Agreement shall have the meaning defined
herein unless otherwise defined in the other document.
11.4 SEVERABILITY
Any provision of this Agreement which is or becomes prohibited or
unenforceable in any relevant jurisdiction shall not invalidate or impair the
remaining provisions hereof which shall be deemed severable from such prohibited
or unenforceable provision and any such prohibition or unenforceability in any
such jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction. Should this Agreement fail to provide for any relevant
matter, the validity, legality or enforceability of this Agreement shall not
thereby be affected.
11.5 NUMBER AND GENDER
Unless the context otherwise requires, words importing the singular number
shall include the plural and vice versa, words importing any gender include all
genders and references to agreements and other contractual instruments shall be
deemed to include all present or future amendments, supplements, restatements or
replacements thereof or thereto.
11.6 AMENDMENT, SUPPLEMENT OR WAIVER
No amendment, supplement or waiver of any provision of the Credit
Documents, nor any consent to any departure by a Restricted Party therefrom,
shall in any event be effective unless it is in writing, makes express reference
to the provision affected thereby and is signed by the Agent for and on behalf
of the Lenders or the Majority Lenders, as the case may be, and then such waiver
or consent shall be effective only in the specific instance and for the specific
purpose for which given. In addition, any amendment or supplement shall require
the written consent of the other parties to the Credit Document in question. No
waiver or act or omission of the Agent, the Lenders, or any of them, shall
extend to or be taken in any manner whatsoever to affect any subsequent Event of
Default or breach by a Restricted Party of any provision of the Credit Documents
or the rights resulting therefrom.
11.7 GOVERNING LAW
Each of the Credit Documents, except for those which expressly provide
otherwise, shall be conclusively deemed to be a contract made under, and shall
for all purposes be exclusively governed by and construed in accordance with,
the laws of the Province of British Columbia and the laws of Canada applicable
in British Columbia. Each party to this Agreement hereby irrevocably and
unconditionally attorns to the non-exclusive jurisdiction of the courts of
British Columbia and all courts competent to hear appeals therefrom.
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11.8 THIS AGREEMENT TO GOVERN
In the event of any conflict between the terms of this Agreement and the
terms of any other Credit Document (other than the Fee Agreement and any
Intercreditor Agreement, which shall prevail as against this Agreement), the
provisions of this Agreement shall govern to the extent necessary to remove the
conflict.
11.9 PERMITTED ENCUMBRANCES
The designation of an Encumbrance as a Permitted Encumbrance is not, and
shall not be deemed to be, an acknowledgment by the Lenders that the Encumbrance
shall have priority over the Security.
11.10 CURRENCY
All payments made hereunder shall be made in the currency in respect of
which the obligation requiring such payment arose. Unless the context otherwise
requires, all amounts expressed in this Agreement in terms of money shall refer
to Canadian Dollars.
Except as otherwise expressly provided in this Agreement, wherever this
Agreement contemplates or requires the calculation of the equivalent in one
currency of an amount expressed in another currency, the calculation shall be
made on the basis of the Exchange Rate at the effective date of the calculation.
11.11 LIABILITY OF LENDERS
The liability of the Lenders in respect of all matters relating to this
Agreement and the other Credit Documents is several and not joint or joint and
several. Without limiting that statement, the obligations of the Lenders to make
Advances is limited to their respective Proportionate Shares of any Advance that
is requested, and, in the aggregate, to their respective Proportionate Shares of
the total amounts of the Credits.
11.12 EXPENSES AND INDEMNITY
All statements, reports, certificates, opinions, appraisals and other
documents or information required to be furnished to the Lenders, the Agent, or
any of them, by the Restricted Parties under this Agreement shall be supplied
without cost to the Lenders, the Agent, or any of them. The Borrower shall pay
on demand all reasonable third party costs and expenses of the Lenders, or any
of them (including, without limitation, the reasonable fees and expenses of
counsel for the Lenders and the Agent collectively, but not separately for
individual Lenders and the Agent, on a solicitor and own client basis), incurred
in connection with (i) the preparation, execution, delivery, administration,
periodic review and enforcement of the Credit Documents; (ii) obtaining advice
as to their rights and responsibilities in connection with the Credits and the
Credit Documents; (iii) reviewing, inspecting and appraising the collateral that
is the subject of the Security at reasonable intervals; (iv) the syndication of
the Credits; (v) due diligence; and (vi) other matters relating to the Credits.
Such costs and expenses shall be payable whether or not an Advance is made under
this Agreement.
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The Borrower shall indemnify the Lenders, the Agent, the Arrangers, the
Syndication Agents, and each of them, and their respective officers, directors,
trustees, employees and agents against any liability, obligation, loss or
expense which any of them may sustain or incur as a consequence of (i) any
representation or warranty made herein by a Restricted Party which was incorrect
at the time it was made or deemed to have been made, (ii) a default by the
Borrower in the payment of any sum due from it under or in connection with the
Credit Documents (irrespective of whether an Advance is deemed to be made to pay
the amount that has not been paid), including, but not limited to, all sums
(whether in respect of principal, interest or any other amount) paid or payable
to lenders of funds borrowed by the Lenders, the Agent, or any of them, in order
to fund the amount of any such unpaid amount to the extent the Lenders, the
Agent, or any of them, are not reimbursed pursuant to any other provisions of
this Agreement, (iii) the failure of the Borrower to complete any Advance or
make any payment after notice therefor has been given under this Agreement, (iv)
the failure of a purchaser of Bankers' Acceptances (other than one of the
Lenders) to pay for and take delivery of them in any arrangement for sale made
by the Borrower and communicated to the Agent, (v) any other default by a
Restricted Party hereunder, and (vi) generally, the Lenders and the Agent having
entered into this Agreement and the other Credit Documents and made Advances to
the Borrower. A certificate of a Lender or the Agent as to the amount of any
such loss or expense shall be conclusive evidence as to the amount thereof, in
the absence of manifest error provided that the Lender determines the amount
owing to it in good faith using any reasonable method and provides a detailed
description of its calculation of the amount owing to it.
In no event shall any party to this Agreement be liable for consequential
damages suffered by any other party.
The agreements in this Section shall survive the termination of this
Agreement and repayment of the Obligations.
11.13 ENVIRONMENTAL INDEMNITY
The Borrower shall protect, indemnify and hold the Agent and the Lenders
and all directors, officers, employees and agents of the Agent or the Lenders
harmless from and against any and all actual or potential claims, liabilities,
damages, losses, fines, penalties, sanctions, judgments, awards, costs and
expenses whatsoever (including, without limitation, costs and expenses of
investigating, denying or defending any of the foregoing and costs and expenses
for preparing any necessary environmental assessment report or other such
reports) which arise out of or relate in any way to:
(a) the presence, use, handling, production, transportation, storage,
release, deposit, discharge or disposal of any Hazardous Materials in,
on or about any Property owned, operated or occupied by the Restricted
Parties and their Subsidiaries, whether by the Restricted Parties or
any other person;
(b) any remedial action taken by the Agent or any Lender in connection
with any matter referred to in paragraph (a), including without
limitation any repair, clean-up, remediation or detoxification of any
of such Property and the preparation of any closure or other required
plans; and
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(c) any breach by any Restricted Party of any Environmental Law.
Notwithstanding anything to the contrary contained in this Agreement, (i)
the indemnity provisions set forth above shall not apply with respect to
Hazardous Materials, contaminants, wastes or other substances which the Borrower
establishes were first placed on, in, under or about the property in question
after the Agent or a Lender or other indemnified party took actual and exclusive
possession of the property (either through foreclosure or otherwise), and (ii)
the indemnity provisions set forth above are not intended to indemnify any
indemnified party for its own gross negligence or wilful misconduct.
If any Hazardous Materials are caused to be removed by any Restricted
Party, the Agent, a Lender or any other indemnified party, then such Hazardous
Materials will be and remain the property of the Restricted Party to which they
belonged before removal, and such Restricted Party will assume any and all
liability for such removed Hazardous Materials. The Borrower understands that
its liability to the indemnified parties under this Section will survive the
termination of this Agreement and repayment of the Obligations.
11.14 MANNER OF PAYMENT AND TAXES
All payments to be made by or on behalf of the Restricted Parties (or in
the case of upfront fees and indemnity fees, by the Agent or any Lender to
another Lender or to an assignee of an interest in the Credits) in connection
with the Credit Documents are to be made without set-off, compensation or
counterclaim, free and clear of and without deduction for or on account of any
Tax, including but not limited to withholding taxes, other than Excluded Taxes,
except if such deduction is required by law or the administration thereof. If
any Tax, other than Excluded Taxes, is deducted or withheld from any payments
under the Credit Documents (including the remittance provided for in this
Section), the Restricted Party making payment shall promptly remit to the Agent
for the Lenders' benefit in the currency in which such payment was made, the
equivalent of the amount of Tax so deducted or withheld together with the
relevant receipt issued by the taxing or other receiving authority. Subject to
Section 5.28, if the Borrower is prevented by operation of law or otherwise from
paying, causing to be paid or remitting such Tax, the interest or other amount
payable under the Credit Documents will be increased to such rates as are
necessary to yield and remit to the Lenders the principal sum advanced or made
available together with interest at the rates specified in the Credit Documents
after provision for payment of such Tax.
If any Lender or the Agent becomes liable for any Tax in the jurisdiction
in which the person making a payment:
(a) under the Credit Documents, or
(b) to Restricted Parties or Subsidiaries,
is located, as a result of a payment being made without the required Tax in that
jurisdiction having been deducted or withheld, NSCL shall indemnify the Lender
or the Agent, as the case may be, for such Tax and any interest and penalties
thereon, and the indemnity payment shall be increased as necessary so that after
the imposition of any Tax in that
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jurisdiction on the indemnity payment (including Tax in respect of any such
increase in the indemnity payment), the Lender or the Agent shall receive the
full amount of Taxes, interest and penalties for which it is liable in that
jurisdiction as a result of the failure to deduct or withhold Tax.
11.15 INCREASED COSTS ETC.
If the introduction of or any change in or in the interpretation of, or any
change in the application to any Restricted Party or any Lender of, any law or
any regulation or guideline from any central bank or other governmental
authority that is binding on any Restricted Party or any Lender (whether or not
having the force of law), including but not limited to any reserve or special
deposit requirement or any Tax (other than Excluded Taxes) or any capital
requirement, has due to the Lenders' compliance therewith the effect, directly
or indirectly, of (i) increasing the cost to the Lenders, or any of them, of
performing their respective obligations hereunder; (ii) reducing any amount
received or receivable by the Lenders, or any of them, hereunder or its
effective return hereunder or on its capital; or (iii) causing the Lenders, or
any of them, to make any payment or to forego any return based on any amount
received or receivable by the Lenders, or any of them, hereunder, then upon
demand from time to time the affected Restricted Party shall pay such amount as
shall compensate the Lenders for any such cost, reduction, payment or foregone
return that is not fully offset by an increase in the applicable interest rate
or rates or fees hereunder. Any certificate of a Lender in respect of the
foregoing will be conclusive evidence of the foregoing, except for manifest
error, provided that the Lender determines the amounts owing to it in good faith
using any reasonable averaging and attribution methods and provides a detailed
description of its calculation of the amounts owing to it.
11.16 INTEREST ON MISCELLANEOUS AMOUNTS
If a Restricted Party fails to pay any amount payable hereunder (other than
principal, interest thereon or interest upon interest which is payable as
otherwise provided in this Agreement) on the due date, that Restricted Party
shall, on demand, pay interest on such overdue amount to the Agent from and
including such due date up to but excluding the date of actual payment, both
before and after demand, default or judgment, at a rate of interest per annum
equal to the sum of the Prime Rate plus 3.0% per annum, compounded monthly.
If the Borrower deposits cash as Collateral pursuant to a requirement under
this Agreement, the Lender or Lenders holding the cash shall pay the Borrower
interest on the cash while it continues to be held as Collateral at the rate
offered by the relevant Lenders from time to time for deposits in the relevant
currency of comparable size and term.
11.17 CURRENCY INDEMNITY
In the event of a judgment or order being rendered by any court or tribunal
for the payment of any amounts owing to the Lenders or any of them under this
Agreement or for the payment of damages in respect of any breach of this
Agreement or under or in respect of a judgment or order of another court or
tribunal for the payment of such amounts or damages, such judgment or order
being expressed in a currency (the "JUDGMENT CURRENCY") other than the currency
payable hereunder or thereunder ("the AGREED
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CURRENCY"), the party against whom the judgment or order is made shall indemnify
and hold the Lenders harmless against any deficiency in terms of the Agreed
Currency in the amounts received by the Lenders arising or resulting from any
variation as between (i) the exchange rate at which the Agreed Currency is
converted into the Judgment Currency for the purposes of such judgment or order,
and (ii) the exchange rate at which each Lender is able to purchase the Agreed
Currency with the amount of the Judgment Currency actually received by the
Lender on the date of such receipt. The indemnity in this Section shall
constitute a separate and independent obligation from the other obligations of
the Restricted Parties hereunder, shall apply irrespective of any indulgence
granted by the Lenders, and shall be secured by the Security.
11.18 ADDRESS FOR NOTICE
Notice to be given under the Credit Documents shall, except as otherwise
specifically provided, be in writing addressed to the party for whom it is
intended and, unless the law or a specific provision in another Credit Document
deems a particular notice to be received earlier, a notice shall not be deemed
received until actual receipt thereof by the other party. The addresses of the
parties hereto for the purposes hereof shall be the addresses specified beside
their respective signatures to this Agreement or on any Assignment Agreement, or
such other mailing or telecopier addresses as each party from time to time may
notify the other as aforesaid. Notice to the other Restricted Parties shall be
sent in care of NSCL.
11.19 TIME OF THE ESSENCE
Time shall be of the essence in this Agreement.
11.20 FURTHER ASSURANCES
The Restricted Parties shall, at the request of the Agent acting on the
instructions of the Majority Lenders, do all such further acts and execute and
deliver all such further documents as may, in the reasonable opinion of the
Majority Lenders, be necessary or desirable in order to fully perform and carry
out the purpose and intent of the Credit Documents.
11.21 TERM OF AGREEMENT
Except as otherwise provided herein, this Agreement shall remain in full
force and effect until the payment and performance in full of all of the
Obligations.
11.22 PAYMENTS ON BUSINESS DAY
Whenever any payment or performance under the Credit Documents would
otherwise be due on a day other than a Business Day, such payment shall be made
on the following Business Day, unless the following Business Day is in a
different calendar month, in which case the payment shall be made on the
preceding Business Day.
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11.23 COUNTERPARTS AND FACSIMILE
This Agreement may be executed in any number of counterparts, each of which
when executed and delivered shall be deemed to be an original, and such
counterparts together shall constitute one and the same agreement. For the
purposes of this Section, the delivery of a facsimile copy of an executed
counterpart of this Agreement shall be deemed to be valid execution and delivery
of this Agreement, but the party delivering a facsimile copy shall deliver an
original copy of this Agreement as soon as possible after delivering the
facsimile copy.
11.24 WAIVER OF JURY TRIAL, CONSEQUENTIAL DAMAGES ETC.
Each party hereto hereby waives, to the fullest extent permitted by
applicable law, any right it may have to a trial by jury in any legal proceeding
directly or indirectly arising out of or relating to this the Credit Documents,
the transactions contemplated thereby or any course of conduct, course of
dealing, statements (whether oral or written) or actions of any party (whether
based on contract, tort or any other theory).
No party shall assert, and each party hereby waives (to the fullest extent
permitted by applicable law), any claim against any other party on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, the Credit Documents, the transactions contemplated thereby or any course of
conduct, course of dealing, statements (whether oral or written) or actions of
any party (whether based on contract, tort or any other theory).
The Restricted Parties acknowledge and agree that none of the Agent or the
Lenders shall have any liability to them in relation to any due diligence
investigations conducted by any of them in connection with the transactions
contemplated hereby or be under any obligation whatsoever to disclose to them
any information received or facts disclosed by any such investigations. The
Restricted Parties further acknowledge and agree that they are not relying, will
not rely, and will not be deemed, in any respect whatsoever, to have relied upon
the facts received by and information disclosed to any of the Agent or the
Lenders under or in connection with such due diligence investigations.
Each party hereto (a) certifies that no representative, agent or attorney
of any other party has represented, expressly or otherwise, that such other
party would not, in the event of litigation, seek to enforce the foregoing
provisions and (b) acknowledges that it and the other parties hereto have been
induced to enter into this Agreement by, among other things, the waivers,
acknowledgments and certifications in this Section.
11.25 ENTIRE AGREEMENT
Except as expressly provided in the commitment letter, summary of terms and
conditions and fee letters dated 10 May 2002 issued by TD and RBC as
underwriters to the Borrower, this Agreement, the Fee Agreement and the
Intercreditor Agreements constitute the entire agreement between the parties
hereto concerning the matters addressed in this Agreement, and cancel and
supersede any prior agreements, undertakings, declarations or representations,
written or verbal, in respect thereof. Without limiting the foregoing, the
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commitment letter, summary of terms and conditions and fee letter referred to
above are cancelled and superseded except as expressly provided therein.
11.26 DATE OF AGREEMENT
This Agreement may be referred to as being dated 19 July 2002 or as of 19
July 2002, notwithstanding the actual date of execution.
[Note: the remainder of this page has been intentionally left blank]
S-1
IN WITNESS OF WHICH, the parties have executed this Agreement.
Address For Notice THE TORONTO-DOMINION
BANK, as Administration Agent
The Toronto-Dominion Bank
Corporate and Investment Banking
00 Xxxxxxxxxx Xxxxxx Xxxx, 00xx Xxxxx By:
Toronto-Dominion Bank Tower ------------------------------------
Toronto, Ontario Name:
M5K 1A2 Title:
Attention: Vice President, Loan
Syndications - Agency
Facsimile: 000-000-0000 By:
------------------------------------
Name:
Title:
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
S-2
Address For Notice THE TORONTO-DOMINION BANK, as Lender
The Toronto-Dominion Bank
TD Tower - Suite 660 By:
000 Xxxx Xxxxxxx Xxxxxx ------------------------------------
Xxxxxxxxx, XX Name:
X0X 0X0 Title:
Attention: Vice President, Corporate
& Investment Banking By:
Facsimile: 000-000-0000 ------------------------------------
Name:
Title:
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
X-0
Xxxxxxx Xxx Xxxxxx XXXXX XXXX XX XXXXXX
Royal Bank of Canada
Corporate Credit
Xxxxx 0000, Xxxx Xxxxx, By:
000 Xxxxxxx Xxxxxx ------------------------------------
Xxxxxxxxx, X.X. Xxxxxx X. Xxxxxxxxxx
X0X 0X0 Managing Director, Global Banking
Attention: Managing Director
Facsimile: 000-000-0000 By:
------------------------------------
Xxxxxx Xxxx
Associate
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
X-0
Xxxxxxx Xxx Xxxxxx XXXXXXX XXXXX XXXXXXX XXXXXX INC.
Xxxxxxx Xxxxx Capital Canada Inc.
000 Xxx Xxxxxx By:
0xx Xxxxx ------------------------------------
Xxxxxxx, Xxxxxxx Name:
X0X 0X0 Title:
Attention: Xxxxxxx Xxxxx
Facsimile: 000-000-0000 By:
------------------------------------
Name:
Title:
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
X-0
Xxxxxxx Xxx Xxxxxx XXX XXXX XX XXXX XXXXXX
The Bank of Nova Scotia
000 Xxxx Xxxxxxx Xxxxxx, 00xx Xxxxx By:
Xxxxxxxxx, XX ------------------------------------
X0X 0X0 Name:
Title:
Attention: Xxxx Xxxxxxxx
Facsimile: 000-000-0000 By:
------------------------------------
Name:
Title:
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
S-6
Address For Notice BANK OF MONTREAL
Bank of Montreal
1400, 000-0xx Xxxxxx X.X. By:
Xxxxxxx, Xxxxxxx ------------------------------------
X0X 0X0 Name:
Title:
Attention: Xxxx Xxxxxx
Facsimile: 000-000-0000 By:
------------------------------------
Name:
Title:
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
S-7
Address For Notice HSBC BANK CANADA
HSBC Bank Canada
000 Xxxx Xxxxxxx Xxxxxx By:
Suite 200 ------------------------------------
Vancouver, B.C. Name:
X0X 0X0 Title:
Attention: Xxxxx Xxxxxx
Facsimile: 000-000-0000 By:
------------------------------------
Name:
Title:
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
S-8
Address For Notice LAURENTIAN BANK OF CANADA
Laurentian Bank of Canada
000 Xxxxxxxx Xxxxxx Xxxx By:
Xxxxxxx, Xxxxxxx ------------------------------------
X0X 0X0 Name:
Title:
Attention: Xxxxxxx Xxxxxxxxx
Facsimile: 000-000-0000 By:
------------------------------------
Name:
Title:
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
S-9
Address For Notice CANADIAN WESTERN BANK
Canadian Western Bank
Park Place Branch By:
000 Xxxxxxx Xxxxxx, Xxxxx 000 ------------------------------------
Vancouver, B.C. Name:
X0X 0X0 Title:
Attention: Xxx Xxxxxxxx
Facsimile: 604-688-7117 By:
------------------------------------
Name:
Title:
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
S-10
Address For Notice BANK OF AMERICA, N.A.
CANADA BRANCH
Bank of America, N.A., Canada Branch
000 Xxxxx Xxxxxx Xxxx By:
Xxxxx 0000 ------------------------------------
Xxxxxxx, Xxxxxxx Name:
X0X 0X0 Title:
Attention: Xxxxx XxXxxxxx
Facsimile: 000-000-0000 By:
------------------------------------
Name:
Title:
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
S-11
Address For Notice CANADIAN IMPERIAL BANK OF COMMERCE
Canadian Imperial Bank of Commerce
BCE Place By:
000 Xxx Xxxxxx, 0xx Xxxxx ------------------------------------
Toronto, Ontario Name:
X0X 0X0 Title:
Attention: Xxxx Xxxxxxxx
Facsimile: 000-000-0000 By:
------------------------------------
Name:
Title:
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
S-12
Address For Notice NORSKE XXXX CANADA LIMITED
Norske Xxxx Canada Limited
0xx Xxxxx
000 Xxxx Xxxxxxx Xxxxxx By:
Xxxxxxxxx, Xxxxxxx Xxxxxxxx ------------------------------------
X0X 0X0 Xxxxx Xxxxxxx
Treasurer
Attention: Chief Financial Officer
Facsimile: 000-000-0000
By:
------------------------------------
Xxxxx Xxxxxxxx
Vice President Finance and
Chief Financial Officer
with a copy to:
Xxxxxx Xxxxxxx NORSKE XXXX CANADA FINANCE LIMITED
Barristers and Solicitors
Xxxxx 0000 Xxxxxxxxx Xxxxx
000 Xxxx Xxxxxxx Street By:
Xxxxxxxxx, Xxxxxxx Xxxxxxxx ------------------------------------
X0X 0X0 Xxxxx Xxxxxxx
Treasurer
Attention: Xxxxx X. Xxxxx
Facsimile: 000-000-0000
ELK FALLS PULP AND PAPER LIMITED
By:
------------------------------------
Xxxxx Xxxxxxx
President
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
S-13
NORSKE XXXX CANADA
LIMITED AS MANAGING PARTNER FOR
AND ON BEHALF OF NORSKECANADA
By:
------------------------------------
Xxxxx Xxxxxxx
Treasurer
By:
------------------------------------
Xxxxx Xxxxxxxx
Vice President Finance and
Chief Financial Officer
NORSKE XXXX CANADA PULP
OPERATIONS LIMITED
By:
------------------------------------
Xxxxx Xxxxxxx
Treasurer
NORSKE XXXX CANADA SALES INC.
By:
------------------------------------
Xxxxx Xxxxxxx
Treasurer
NSCL HOLDINGS INC.
By:
------------------------------------
Xxxxx Xxxxxxx
Treasurer
NORSKE XXXX CANADA (USA) INC.
By:
------------------------------------
Xxxxx Xxxxxxx
Treasurer
S-14
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
NORSKE XXXX CANADA (JAPAN) LTD.
By:
------------------------------------
Xxxxx X. Xxxxxxxx
Director
NORSKE XXXX CANADA SALES INC.
By:
------------------------------------
Xxxxx Xxxxxxx
Treasurer
NORSKE XXXX PULP SALES (JAPAN) LTD.
By:
------------------------------------
Xxxx X. Xxxxxx
Director
NORSKE XXXX CANADA PULP SALES INC.
By:
------------------------------------
Xxxxx Xxxxxxx
Treasurer
PACIFICA PAPERS SALES LTD.
By:
------------------------------------
Xxxxx Xxxxxxx
President
PACIFICA PAPERS SALES INC.
By:
------------------------------------
Xxxxx Xxxxxxx
Treasurer
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
S-15
PACIFICA PAPERS KABUSHIKI KAISHA
By:
------------------------------------
Xxxxx Xxxxxxx
Director
PACIFICA POPLARS LTD.
By:
------------------------------------
Xxxxx Xxxxxxx
President
PACIFICA POPLARS INC..
By:
------------------------------------
Xxxxx Xxxxxxx
Treasurer
PACIFICA PAPERS US INC.
By:
------------------------------------
Xxxxx Xxxxxxx
Treasurer
[signature page for Credit Agreement dated as of 19 July 2002 relating to Norske
Xxxx Canada Limited et al]
SCHEDULE A
NOTICE OF ADVANCE OR PAYMENT
[see reference in Section 5.6]
TO: THE TORONTO-DOMINION BANK
Corporate and Investment Banking
00 Xxxxxxxxxx Xxxxxx West, 38th Floor
Toronto-Dominion Bank Tower
Toronto, Ontario
M5K 1A2
Attention: Vice President, Loan Syndications - Agency
Facsimile: 000-000-0000
[Note: Notice to be sent to RBC in connection with Credit 2]
We refer to the credit agreement dated as of 19 July 2002 between Norske
Xxxx Canada Limited and others as Restricted Parties, The Toronto-Dominion Bank
as Administration Agent and the Lenders, Arrangers and Syndication Agents named
therein, as amended, supplemented, restated or replaced from time to time (the
"Credit Agreement"). All capitalized terms used in this certificate and defined
in the Credit Agreement have the meanings defined in the Credit Agreement.
Request for Advance
Notice is hereby given pursuant to Section 5.6 of the Credit Agreement that
the undersigned hereby irrevocably requests as follows:
(A) that an Advance be made under the following Credit [check one]:
Credit 1 ( )
Credit 2 ( )
(B) the requested Advance represents the following [check one or more]:
initial Advance under the Credit ( )
Increase in Advances under the Credit ( )
Rollover of existing Advances under the Credit ( )
conversion of existing Advances to another type of Advance ( )
(C) the Drawdown Date shall be
----------------------------------------
(D) the Advance shall be in the form of [check one or more and complete
details]:
Prime Rate Advance ( )
Amount $
----------
-2-
Bankers' Acceptances ( )
Face Amount:
----------
Term:
----------
Base Rate Advance ( )
Amount US$
----------
LIBOR Advance ( )
Currency:
----------
Amount:
----------
End of LIBOR Period:
----------
L/C ( )
Nominal amount:
----------
Expiry date:
----------
[Note: attach proposed form or details]
(E) the proceeds of the Advance shall be deposited in [specify Designated
Account]
The undersigned hereby confirms as follows:
(a) the representations and warranties made in Section 6.1 of the Credit
Agreement, other than those expressly stated to be made as of a specific
date, are true on and as of the date hereof with the same effect as if such
representations and warranties had been made on and as of the date hereof,
subject to modifications made by NSCL to the Lenders in writing and
accepted by the Majority Lenders;
(b) no Pending Event of Default or Event of Default has occurred and is
continuing on the date hereof or will result from the Advance(s) requested
herein [except __________];
(c) after reasonable inquiry, there is no reason to believe that NSCL will not
be in compliance with all covenants contained in Section 7.1 of the Credit
Agreement at the end of its current fiscal quarter and was not in
compliance with those covenants at the end of its immediately preceding
fiscal quarter if it has not yet delivered its Compliance Certificate for
that quarter [except __________];
(d) the undersigned will immediately notify you if it becomes aware of the
occurrence of any event which would mean that the statements in the
immediately preceding paragraphs (a), (b) and (c) would not be true if made
on the Drawdown Date;
(e) all other conditions precedent set out in Section 4.2 [and Section 4.1] of
the Credit Agreement have been fulfilled.
-3-
Notice of Payment
Pursuant to Section 5.6 of the Credit Agreement, the undersigned
hereby irrevocably notifies you of the following:
(a) that a payment will be made under the following Credit [check one]:
Credit 1 ( )
Credit 2 ( )
(b) the payment represents the following [check one or more]:
reduction in Advances under the Credit ( )
payment of existing Advances which will be rolled over as the
same type of Advance under the Credit ( )
payment of existing Advances which will be converted to
another type of Advance under the Credit ( )
(c) the payment date shall be
---------------
(d) the Advance to be paid shall be in the form of [check one or more
and complete details]:
Prime Rate Advance ( )
Amount $
----------
Bankers' Acceptances ( )
Face Amount
----------
Maturity Date
----------
Base Rate Advance ( )
Amount US$
----------
LIBOR Advance ( )
Currency:
----------
Amount:
----------
Start of LIBOR Period:
----------
-4-
DATED:
---------------
NORSKE XXXX CANADA
FINANCE LIMITED
By:
------------------------------------
Name:
Title:
SCHEDULE B
AGREEMENT OF NEW RESTRICTED SUBSIDIARY
SUPPLEMENT TO CREDIT AGREEMENT
[see reference in Section 3.1]
THIS AGREEMENT supplements the credit agreement dated as of 19 July
2002 between Norske Xxxx Canada Limited and others as Restricted Parties, The
Toronto-Dominion Bank as Administration Agent and the Lenders, Arrangers and
Syndication Agents named therein, as amended, supplemented, restated or replaced
from time to time (the "Credit Agreement").
RECITALS
A. Capitalized terms used and not defined in this Agreement have the meanings
defined in the Credit Agreement.
B. The Credit Agreement contemplates that further Subsidiaries of NSCL shall
become Restricted Parties in certain circumstances.
C. __________ (the "New Subsidiary") is required by the Credit Agreement to
become a Restricted Party.
D. The New Subsidiary has delivered the documents listed on Appendix A to this
Agreement, which form part of the Security, an opinion of its counsel and other
resolutions and ancillary documents required by the Agent, and a pledge of all
shares of the New Subsidiary owned by the other Restricted Parties has also been
delivered as part of the Security.
THEREFORE, for value received, and intending to be legally bound by
this Agreement, the parties agree as follows:
1. The New Subsidiary hereby acknowledges and agrees to the terms of the Credit
Agreement and agrees to be bound by all obligations of a Restricted Party under
the Credit Agreement as if it had been an original signatory thereto.
2. The Agent, on behalf of the Lenders, acknowledges that the New Subsidiary
shall be a Restricted Party as of the date of this Agreement.
-2-
IN WITNESS OF WHICH, the undersigned have executed this Agreement
as of __________.
THE TORONTO-DOMINION BANK as Agent
By:
------------------------------------
Name:
Title:
[New Subsidiary]
By:
------------------------------------
Name:
Title:
[Note: Appendix A to be attached to list Security]
SCHEDULE C
COMPLIANCE CERTIFICATE
[see reference in Section 1.1.26]
TO: THE LENDERS (as defined in the Credit Agreement referred to below)
AND TO: THE TORONTO-DOMINION BANK, as Agent
We refer to Section 7.3.1(d) of the credit agreement dated as of 19
July 2002 between Norske Xxxx Canada Limited and others as Restricted Parties,
The Toronto-Dominion Bank as Administration Agent and the Lenders, Arrangers and
Syndication Agents named therein, as amended, supplemented, restated or replaced
from time to time (the "Credit Agreement"). All capitalized terms used in this
certificate and defined in the Credit Agreement have the meanings defined in the
Credit Agreement.
1. The undersigned hereby certifies that:
(a) the representations and warranties made in Section 6.1 of the Credit
Agreement, other than those expressly stated to be made as of a
specific date, are true on and as of the date hereof with the same
effect as if such representations and warranties had been made on and
as of the date hereof, subject to modifications made by the
undersigned to the Lenders in writing and accepted by the Majority
Lenders;
(b) no Pending Event of Default or Event of Default has occurred and is
continuing on the date hereof [or as the case may be].
2. The undersigned hereby certifies that, as of the end of its most-recently
completed fiscal quarter, which ended on ______,
(a) [include only if Permitted Senior Secured Indebtedness or Permitted
Subordinated Secured Indebtedness is outstanding and the Funded Debt
Ratio is greater than 0.40 to 1] the Interest Coverage Ratio is
_____: 1.
(b) the Funded Debt Ratio is ____: 1.
(c) the Secured Debt Ratio is ____: 1.
(d) the value of its Consolidated Net Tangible Assets is $______________.
(e) its "Consolidated Fixed Charge Coverage Ratio" as defined under the
1999 Indenture and the 2001 Indenture is ____: 1 and ____: 1,
respectively.
(f) the Threshold Amount is $______.
(g) [include for year end only] its shareholders equity is $_________.
-2-
3. Appendix A attached sets out the calculations of the amounts referred to in
paragraph 2 above.
4. Appendix B attached contains a list of all sales or other dispositions of
any Property of Restricted Parties (including Capital Stock of any other
person) during the term of this Agreement, other than dispositions to
another Restricted Party and sales of inventory in the ordinary course of
its business, and a list of all material Property of a Restricted Party
which has been expropriated, condemned, destroyed, damaged or otherwise
lost, with a description of the use of the proceeds of disposition,
insurance or other compensation.
5. Appendix C attached contains details of (i) all Other Secured Obligations
as of the end of the undersigned's most-recently completed fiscal quarter,
the classification under which they were incurred for the purposes of
section 4.06 of the each of the 1999 Indenture and the 2001 Indenture and
the Market Value thereof, (ii) all outstanding Permitted Senior Secured
Indebtedness and Permitted Subordinated Secured Indebtedness as of the end
of the undersigned's most-recently completed fiscal quarter and the
classification under which it was incurred for the purposes of section 4.06
of the each of the 1999 Indenture and the 2001 Indenture and (iii) the
amount, as determined under the 1999 Indenture and the 2001 Indenture,
respectively, of any other obligations that have been classified as being
incurred under clauses (i) or (ix) of the definition of "Permitted
Indebtedness" in the 0000 Xxxxxxxxx and the definition of "Permitted Debt"
in the 2001 Indenture.
6. The undersigned hereby certifies that the current Reference Debt Ratings
established by Xxxxx'x and S&P are _____ and _____, respectively.
Accordingly, the Applicable Fee Rate is ___% per annum and the Applicable
Margins are as follows:
Margin for Prime Rate Advances/ Base Rate Advances - ___%
Margin for LIBO Rate Advances - ___%
7. [Include with report for quarter in which 30 June falls] The undersigned
hereby certifies that the consolidated net book value of its inventory as
at 30 June [year] is $_____ and the net book value of all inventory located
in any jurisdiction where the Security has not been registered over
inventory in accordance with local requirements is $_____ as at that date.
8. The undersigned hereby certifies that there is no jurisdiction where the
Security has not been registered over inventory in accordance with local
requirements in which the amount of inventory for all Restricted Parties is
greater than 50,000 tonnes.
9. The undersigned hereby certifies that the current consolidated net book
value of its fixed assets is $_____ and the net book value of all Property
other than inventory located in any jurisdiction where the Security over
such Property has not been registered in accordance with local requirements
is $_____.
-3-
10. [Required only if Permitted Senior Secured Debt in an aggregate principal
amount of $100,000,000 or more has been incurred during the term of this
Agreement] Appendix D attached is an up to date list of all Material
Contracts. [or There has been no change to the list of Material Contracts
dated __________]
11. Appendix E attached contains details of all releases of Hazardous Materials
on or from any land which any Restricted Party occupies or controls during
its most-recently completed fiscal quarter that were reportable under
applicable Requirements of Law, that have not previously been reported to
the Agent and in respect of which any Restricted Party is or remains in
non-compliance with any Environmental Law as of the date of this
certificate.
DATED
---------------
NORSKE XXXX CANADA LIMITED
By:
------------------------------------
Name:
Title:
By:
------------------------------------
Name:
Title:
SCHEDULE D
ASSIGNMENT AGREEMENT
[see reference in Section 1.1.8]
The undersigned refer to the credit agreement dated as of 19 July 2002
between Norske Xxxx Canada Limited and others as Restricted Parties, The
Toronto-Dominion Bank as Administration Agent and the Lenders, Arrangers and
Syndication Agents named therein as amended, supplemented, restated or replaced
from time to time (the "Credit Agreement"). All capitalized terms used in this
Assignment Agreement and defined in the Credit Agreement have the meanings
defined in the Credit Agreement.
For value received, the "Assignor" and the "Assignee" named below
hereby agree as follows:
1. The Assignor hereby sells and assigns, without recourse, to the Assignee, and
the Assignee hereby purchases and assumes from the Assignor, the Proportionate
Share specified on Appendix 1 in and to the Assignor's rights and obligations
under the Credit Agreement, the Security and all other Credit Documents.
2. The Assignor (a) represents and warrants that it is the legal and beneficial
owner of the interest being assigned by it hereunder, that such interest is free
and clear of any lien or security interest and that it is entitled to enter into
this Assignment Agreement; (b) makes no representation or warranty, other than
as provided in this Assignment Agreement and assumes no responsibility with
respect to any statements, warranties or representations made in or in
connection with the Credit Agreement or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Credit Agreement or any
other Credit Document; and (c) makes no representation or warranty and assumes
no responsibility with respect to the financial condition of the Restricted
Parties or any other guarantor or the performance or observance by the
Restricted Parties or any other guarantor of any of the obligations under the
Credit Agreement or any other Credit Document.
3. The Assignee, for the benefit of the Restricted Parties, the Agent and all
Lenders from time to time, including the Assignor, (a) acknowledges receipt of
any upfront fee payable by the Assignor, (b) confirms that it has received a
copy of the Credit Agreement, together with such other documents and information
as it has deemed appropriate to make its own credit analysis and decision to
enter into this Assignment Agreement; (c) agrees that it will, independently and
without reliance upon the Agent, the Assignor or any other Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Credit Agreement; (d) appoints and authorizes the Agent to take such action
on its behalf and to exercise such powers and discretion under the Credit
Agreement as are delegated to the Agent by the terms thereof, together with such
powers and discretion as are reasonably incidental thereto; (e) ratifies and
adopts the powers of attorney and related powers given to the Agent under the
Credit Agreement; (f) agrees that it will perform in accordance with their terms
all of the obligations that by the terms of the Credit Agreement are required to
be performed by it as a Lender, (g) agrees to be bound by the terms of all
Intercreditor
-2-
Agreements, and (h) specifies as its address for notice and payments its office
at the address set forth on Appendix 1 hereto.
4. Following the execution of this Assignment Agreement, it shall immediately be
delivered to the Agent, together with the processing and recording fee specified
in Section 10.2.1 of the Credit Agreement if applicable, for approval and
recording by the Agent, and NSCL, if applicable. The Assignee's agreement to
become a Lender, as constituted by this Assignment Agreement, is irrevocable,
unless the Assignee is not approved by the Agent, and NSCL if applicable. The
Assignee shall become a Lender, and shall be bound by the obligations and
entitled to the benefits in the Credit Agreement, immediately upon this
Assignment Agreement being approved and recorded by the Agent and NSCL, if
applicable (the "Effective Date"). On the Effective Date, the Assignee (a) shall
pay the Assignor an amount equal to the Assignee's Proportionate Share of Prime
Rate Advances and Base Rate Advances made by the Assignor as of the Effective
Date and (b) shall become entitled to receive standby fees in accordance with
the Credit Agreement in respect of its Proportionate Share of the aggregate
amount of the Credit that has not been advanced by the Lenders. The Assignee
shall make further Advances to the Borrower beginning on the first Drawdown Date
that is at least three Business Days following the Effective Date, as LIBOR
Advances and Advances by way of Bankers' Acceptances made by the Assignor
mature, until the Assignee has made Advances in an amount equal to its
Proportionate Share of the aggregate Advances made by all Lenders under the
Credit Agreement.
5. If Advances made by the Assignee to the Borrower are for any reason less than
the Assignee's Proportionate Share of the aggregate Advances made by all Lenders
under the Credit Agreement, the Assignee shall, on demand, indemnify the
Assignor in respect of the principal amount of the corresponding Advances made
by the Assignor in excess of the Assignor's Proportionate Share. The Advances by
the Assignor in respect of which the Assignee is bound to indemnify the Assignor
are set out on Appendix 2 to this Assignment Agreement. The Assignor shall pay
the Assignee indemnity fees during the period in which the Assignee is obliged
to indemnify the Assignor. The fee shall be in the amount specified on Appendix
2 and shall be payable on the Effective Date in respect of Advances by way of
Bankers' Acceptances, and on each date on which the Borrower pays interest on
LIBOR Advances, in respect of LIBOR Advances.
6. This Assignment Agreement shall be exclusively governed by, and construed in
accordance with the laws of the Province of British Columbia, Canada.
7. This Assignment Agreement may be executed in any number of counterparts and
by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of
this Assignment Agreement by telecopier shall be effective as delivery of a
manually executed counterpart of this Assignment Agreement.
-3-
IN WITNESS WHEREOF, the Assignor and the Assignee have caused this
Assignment Agreement to be executed by their duly authorized officers as of the
dates specified below.
Assignor:
------------------------------
By:
------------------------------------
Name:
Title:
Dated:
---------------------------------
Assignee:
------------------------------
By:
------------------------------------
Name:
Title:
Dated:
---------------------------------
[If applicable]
Approved on Approved on
------------------------- ----------------------------
THE TORONTO-DOMINION BANK, as Agent NORSKE XXXX CANADA LIMITED
By: By:
--------------------------------- ------------------------------------
Name: Name:
Title: Title:
Effective Date: Date:
---------------------- ----------------------------------
APPENDIX 1
TO
ASSIGNMENT AGREEMENT
Proportionate Share assigned by Assignor:
--------------------------------------
Proportionate Share retained by Assignor:
--------------------------------------
Payment Details, including address of Assignee for notices:
APPENDIX 2
TO
ASSIGNMENT AGREEMENT
Advances in respect of which the Assignee is to indemnify the Assignor, as of
the Effective Date:
Type of Advance Maturity Date of Advance Principal Amount of Advance
--------------- ------------------------ ---------------------------
Indemnity fee:
SCHEDULE E
PROPORTIONATE SHARES OF LENDERS
[see references in Sections 1.1.25, 1.1.62, 1.1.93, 5.2, 10.2.4]
[Proportionate Shares in Credits are nil unless otherwise specified.
Dollar figures represent initial Commitment]
TD
Credit 1 (adjusted in accordance with Section 5.2) - 17.647% ($52,500,000)
Credits (overall) - 15.000% ($52,500,000)
RBC
Credit 2 (adjusted in accordance with Section 5.2) -100% ($52,500,000)
Credits (overall) - 15.000% ($52,500,000)
CANADIAN IMPERIAL BANK OF COMMERCE
Credit 1 (adjusted in accordance with Section 5.2) - 14.286 % ($42,500,000)
Credits (overall) - 12.143% ($42,500,000)
BANK OF MONTREAL
Credit 1 (adjusted in accordance with Section 5.2) - 14.286 % ($42,500,000)
Credits (overall) - 12.143% ($42,500,000)
THE BANK OF NOVA SCOTIA
Credit 1 (adjusted in accordance with Section 5.2) - 14.286 % ($42,500,000)
Credits (overall) - 12.143% ($42,500,000)
HSBC BANK CANADA
Credit 1 (adjusted in accordance with Section 5.2) - 10.084% ($30,000,000)
Credits (overall) - 8.571% ($30,000,000)
BANK OF AMERICA, N.A. CANADA BRANCH
Credit 1 (adjusted in accordance with Section 5.2) - 10.084% ($30,000,000)
Credits (overall) - 8.571% ($30,000,000)
XXXXXXX XXXXX CAPITAL CANADA INC.
Credit 1 (adjusted in accordance with Section 5.2) - 8.403% ($25,000,000)
Credits (overall) - 7.143% ($25,000,000)
2
CANADIAN WESTERN BANK
Credit 1 (adjusted in accordance with Section 5.2) - 5.882% ($17,500,000)
Credits (overall) - 5.000% ($17,500,000)
LAURENTIAN BANK OF CANADA
Credit 1 (adjusted in accordance with Section 5.2) - 5.042% ($15,000,000)
Credits (overall) - 4.286% ($15,000,000)
SCHEDULE F
DETAILS OF CAPITAL STOCK, PROPERTY ETC.
[see references in Sections 6.1.5(a), 7.4, 7.5.3(c)]
1. NORSKE XXXX CANADA LIMITED
Capital Stock: Public Company
Head Office: 0xx Xxxxx, 000 Xxxx Xxxxxxx Street
P.O. Box 00000 Xxxxxxx Xxxxxx
Xxxxxxxxx, Xxxxxxx Xxxxxxxx
X0X 0X0
Real Property:
Owned:
PID: Legal Description:
---- ------------------
005 932 092 Those parts of Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxxxx Xxxxxxxx Xxxx
0000 shown outlined in red on Plan 925 RW
007 388 004 Xxx 0 Xxxxxxx 0 Xxxxx 00 Xxxxxxxxx Xxxxxxxx Xxxx 0000 except
parts in Plans 11613, 13731 and 16471
000 000 000 That part of Parcel C (DD 36578I) of Section 2 Range 7
Chemainus District outlined in red on Plan 920 RW
005 419 239 That part of Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxxxx Xxxxxxxx Xxxx
0000 in Plan 920 RW
009 024 174 That part of Parcel B (DD 99604I) of Section 5 Range 10
Chemainus District outlined in red on Plan 925 RW
005 932 190 That part of Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxxxx Xxxxxxxx Xxxx
0000 lying to the south east of the south easterly boundary of
Plan 925 RW
009 024 336 That part of Section 3 Range 8 Chemainus District outlined in
red on Plan 920 RW
009 024 310 That part of Section 4 Range 9 Chemainus District outlined in
red on Plan 925 RW
009 024 379 That part of Parcel E (DD 141335I) of Xxxxxxx 0 Xxxxx 0
Xxxxxxxxx Xxxxxxxx outlined in red on Plan 920 RW
009 024 417 That part of Parcel D (DD 65699I) of Xxxxxxx 0 Xxxxx 0
Xxxxxxxxx Xxxxxxxx outlined in red on Plan 920 RW
000 000 000 That part of Parcel D (DD 118337I) of Section 4 and 5 Range 8
Chemainus District outlined in red on Plan 920 RW and lying
wholly within Section 4
005 968 585 That portion of that part of Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxxxx
Xxxxxxxx Xxxx 0000 lying to the West of the Westerly boundary
of Plan 645 RW shown outlined in red on Plan 911 RW and
containing 1.27 acres more or less
009 739 637 Section 8 Range 9 Chemainus District
009 739 611 Section 7 Range 9 Chemainus District
009 739 718 Those parts of Section 9 Range 8 Chemainus District lying East
of the Chemainus River, including all that part of a strip of
land 33 feet wide as shown coloured purple and green on Plan 16
BL known as Mainguy Road
009 739 688 Those parts of Section 8 Range 8 Chemainus District lying East
of the Chemainus River, including all that part of a strip of
land 33 feet wide as shown coloured purple and green on Plan 16
BL, known as Mainguy Road
009 739 653 Those parts of Section 7 Range 8 Chemainus District, lying East
of the Chemainus River including all that part of a strip of
land 33 feet wide as shown coloured purple and green on Plan 16
BL, known as Mainguy Road
009 739 785 Xxx 0X Xxxxxxxxx Xxxxxxxx
-0-
000 000 777 Xxx 0 Xxxxxxxxx Xxxxxxxx
003 982 840 Xxx 0 Xxxxxxx 0 Xxxxx 00 Xxxxxxxxx Xxxxxxxx Xxxx 00000
004 798 619 Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxxxx Xxxxxxxx Xxxx 00000
004 979 087 Lot 1 Sections 3 and 4 Ranges 9 and 10 Chemainus District Plan
12168
006 244 637 Xxx 0 Xxxxxxx 0 Xxxxx 00 Xxxxxxxxx Xxxxxxxx Xxxx 3198
009 956 069 Section 3 Range 9 Chemainus District except parts in Plans 920
RW and 921 RW
000 000 000 That part of Section 5 Renfrew District (situate in Cowichan
Lake District) as shown outlined in red on Plan 457 BL
006 912 524 Xxx 0 Xx 0 Xxxxxxx 0 Xxxxxxx Xxxxxxxx (situate in Cowichan Lake
District) Plan 1750
006 912 516 Xxx 0 Xx 0 Xxxxxxx 0 Xxxxxxx Xxxxxxxx (situate in Cowichan Lake
District) Plan 1750
008 768 820 District Xxx 000 Xxxxxxxx Xxxx Xxxxxxxx
006 912 567 Xxx 0 Xx 0 Xxxxxxx 0 Xxxxxxx Xxxxxxxx (situate in Cowichan Lake
District) Plan 1750
006 912 494 Xxx 0 Xx 0 Xxxxxxx 0 Xxxxxxx Xxxxxxxx (situate in Cowichan Lake
District) Plan 1750
006 912 451 Xxx 0 Xx 0 Xxxxxxx 0 Xxxxxxx Xxxxxxxx (situate in Cowichan Lake
District) Plan 1750
007 655 517 Block 0 XX 00 Xxxxxxxx Xxxx Xxxxxxxx Xxxx 0000 except part in
Plan 31221
005 145 473 Xxx 0 XX 00 Xxxxxxxx Xxxx Xxxxxxxx Xxxx 00000
007 663 544 That part of District Xxx 00 Xxxxxxxx Xxxx Xxxxxxxx being that
portion of Fern Road dedicated by Plan 1231 and closed by
Order-In-Council No. 1754 dated 16th day of July, 1956 as shown
outlined in red on Plan 458 BL
018 195 326 Xxx 0 Xxxxxxx 00 Xxxxx 0 Xxxxxxxxx Xxxxxxxx Xxxx VIP56262
005 338 859 That part of Xxx 0 Xxxxxxx 00 Xxxxx 0 Xxxxxxxxx Xxxxxxxx Xxxx
0000 shown in red on Plan 903 RW
009 662 481 That part of Parcel G (DD 36290I) of Sections 18 and 19 Range 4
Quamichan District shown outlined in red on Plan 903 RW and
containing 0.08 acres and 0.30 acres more or less
009 662 278 That part of Parcel P (DD 76080I) of Sections 17, 18 and 19
Range 4 Quamichan District shown outlined in red on Plan 903 RW
and lying entirely in Section 18
006 360 564 That part of Xxx 00 Xxxxxxxx 00 xxx 00 Xxxxx 0 Xxxxxxxxx
Xxxxxxxx Xxxx 0000 shown in red on Plan 903 RW
006 738 567 That part of Xxx 0 Xx 0 Xxxxxxx 00 Xxxxx 0 Xxxxxxxxx Xxxxxxxx
Xxxx 0000 shown outlined in red on Plan 903 RW
006 738 524 That part of Xxx 0 Xx 0 Xxxxxxx 00 Xxxxx 0 Xxxxxxxxx Xxxxxxxx
Xxxx 0000 shown outlined in red on Plan 903 RW
006 738 354 That part of Xxx 0 Xx 0 Xxxxxxx 00 Xxxxx 0 Xxxxxxxxx Xxxxxxxx
Xxxx 0000 shown outlined in red on Plan 903 RW
006 360 742 That part of Xxx 00 Xxxxxxx 00 Xxxxx 0 Xxxxxxxxx Xxxxxxxx Xxxx
0000 shown in red on Plan 903 RW
006 157 971 That part of Xxx 0 Xxxxxxx 00 Xxxxx 0 Xxxxxxxxx Xxxxxxxx Xxxx
0000 outlined red on Plan 903 RW
009 668 314 That part of Parcel D (DD 106367I) of Section 19 Range 4
Quamichan District shown outlined in red on Plan 903 RW
006 068 065 That part of Xxx 0 Xxxxxxx 00 Xxxxx 0 Xxxxxxxxx Xxxxxxxx Xxxx
0000 shown in red on Plan 903 RW
004 680 499 Lot A Section 19 Range 4 Quamichan District Plan 12945
005 586 445 Xxx 0 Xxxxxxx 00 Xxxxx 0 Xxxxxxxxx Xxxxxxxx Xxxx 8636
005 586 437 Xxx 0 Xxxxxxx 00 Xxxxx 0 Xxxxxxxxx Xxxxxxxx Xxxx 8636
005 586 429 Xxx 0 Xxxxxxx 00 Xxxxx 0 Xxxxxxxxx Xxxxxxxx Xxxx 8636
006 442 382 That part of Xxx 0 Xxxxxxx 00 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx
0000 shown outlined in red on Plan 910 RW
008 162 794 That part of Xxx 0 Xx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Plan
972 shown outlined in red on Plan 903 RW
009 797 807 That part of Section 20 Range 7 Somenos District outlined in
red on Plan 911 RW and containing 0.66 acres more or less
009 797 939 That part of Section 19 Range 7 Somenos District lying West of
Parcel A (DD 43540I) outlined in red on Plan 911 RW and
containing 0.67 acres more or less
009 744 495 That part of the East 70 acres of Section 17 Range 6 Somenos
District shown outlined in red on Plan 911 RW
-3-
006 406 891 That part of Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 0000
shown outlined in red on Plan 902 RW
006 405 754 That part of Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 0000
shown outlined in red on Plan 902 RW
005 557 755 Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 9162
007 104 057 That part of Xxx 0 Xx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx
0000 shown outlined in red on Plan 902 RW
008 162 760 That part of Xxx 0 Xx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Plan
972 shown outlined in red on Plan 903 RW
005 934 389 That part of Xxx 0 Xxxxxxx 00 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx
0000 shown outlined in red on Plan 911 RW
009 796 649 That part of Parcel A (DD 43540I) of Sections 19 and 20 Range 7
Somenos District lying within Section 19 included in Plan 911
RW
009 772 995 That part of Parcel A (DD 42185I) of Section 12 Range 5 Somenos
District shown outlined in red on Plan 910 RW
009 773 398 That part of Section 13 Range 5 Somenos District outlined in
red on Plan 910 RW
005 934 354 That part of Xxx 0 Xxxxxxx 00 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx
0000 shown outlined in red on Plan 911 RW
008 162 824 That part of Xxx 0 Xx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Plan
972 shown outlined in red on Plan 903 RW
000 000 000 That part of Xxx 0 Xx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx
0000 shown outlined in red on Plan 902 RW
009 773 185 That part of Section 12 Range 5 Somenos District lying to the
south of Parcel A (DD 42185I) shown outlined in red on Plan 910
RW
009 774 483 Those parts of Parcel A (DD 89348I) of Sections 14 and 15 Range
5 Somenos District outlined in red on Plans 910 RW and 911 RW
except part in Plan 15076
006 248 110 That part of Xxx 0 Xxxxxxxx 00 xxx 00 Xxxxx 0 Xxxxxxx Xxxxxxxx
Xxxx 0000 shown outlined in red on Plan 827R included within
Plan 911 RW
006 441 980 That part of Xxx 0 Xxxxxxxx 0 xxx 00 Xxxxx 0 Xxxxxxx Xxxxxxxx
Xxxx 0000 shown outlined in red on Plan 910 RW
000 000 000 That part of Xxx 0 Xxxxxxxx 00 xxx 00 Xxxxx 0 Xxxxxxx Xxxxxxxx
Xxxx 0000 shown outlined in red on Plan 911 RW except that part
in Plan 15076
009 744 517 That part of the west 50 acres of Section 18 Range 7 Somenos
District shown outlined in red on Plan 911 RW
009 744 444 That part of Parcel B (DD 77714I) of Xxx 00 Xxxxxxx Xxxxxxxx
shown outlined in red on Plan 911 RW
009 744 509 That part of the West 50 acres of Section 17 Range 7 Somenos
District shown outlined in red on plan deposited under DD 23410
included in Plan 911 RW
009 744 487 Those parts of Parcel A (DD 77714I) of Section 16 Range 6
Somenos District shown outlined in red on Plan 911 RW
006 582 311 That part of Xxx X Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 0000
shown outlined in red on Plan 902 RW
006 568 556 That part of Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 0000
shown in red on Plan 902 RW
009 872 906 That part of the south 1/2 of Section 8 Range 4 Somenos
District shown outlined in red on Plan 902 RW
000 000 000 That part of Xxx 0 Xxxxxxxx 0 xxx 0 Xxxxxxx Xxxxxxxx Xxxx 0000
shown outlined in red on Plan 902 RW
000 000 000 That part of Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 0000
shown outlined in red on Plan 902 RW
006 609 007 That part of Xxx X Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 0000
shown outlined in red on Plan 902 RW
006 246 851 That part of Xxx 0 Xxxxxxx 00 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx
0000 shown outlined in red on Plan 911 RW except that part in
Plan 15076
006 442 641 That part of Xxx 00 Xxxxxxx 00 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx
0000 shown outlined in red on Plan 910 RW
-4-
000 000 000 That part of Xxx 00 Xxxxxxx 00 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx
0000 shown outlined in red on Plan 910 RW
005 576 695 That part of Section 11 Range 4 Somenos District shown outlined
in red on Plan 910 RW
009 759 492 That part of Section 4 Range 3 Somenos District shown outlined
in red on Plan 902 RW
006 407 234 That part of Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 0000
shown outlined in red on Plan 902 RW
009 774 939 That part of Parcel C (DD 174586I) of Section 14 Range 5
Somenos District outlined in red on Plan 910 RW
006 581 684 That part of Xxx X Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 0000
shown outlined in red on Plan 902 RW
000 000 000 That part of Xxx X Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 0000
shown outlined in red on Plan 902 RW
009 764 151 That part of Section 5 Range 4 Somenos District shown outlined
in red on Plan 902 RW
005 576 571 That part of Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 0000
shown in red on Plan 903 RW
006 440 347 That part of Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 0000
shown outlined in red on Plan 910 RW
007 104 375 That part of Xxx 0 Xx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx
0000 shown outlined in red on Plan 902 RW
006 406 939 That part of Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 0000
shown outlined in red on Plan 902 RW
007 104 936 That part of Xxx 0 Xx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx
0000 shown outlined in red on Plan 902 RW
000 000 000 That part of Xxx 0 Xxxxxxx 0 Xxxxxx 0 and 4 Somenos District
Plan 2794 shown in red on Plan 902 RW
006 383 025 That part of Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 0000
shown outlined in red on Plan 902 RW
005 576 539 Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 8611
003 733 998 Xxx 0 Xxxxxxx 0 Xxxxx 0 Xxxxxxx Xxxxxxxx Xxxx 00000
007 388 209 Xxx 00 Xxxxxxx 0 Xxxxx 00 Xxxxxxxxx Xxxxxxxx Xxxx 0000 Except
part in Plan 11574
013 194 976 That part of Section 5 Ranges 8, 9 and 10 and Section 4 Range 8
Chemainus District shown outlined in red in DD 27614
013 194 470 That part of Sections 4 and 5 Range 8 Chemainus District shown
outlined in red on plan attached to DD 24931
013 194 381 That part of Section 4 Range 8 Chemainus District shown
outlined in red on plan attached to DD 23242
013 143 123 That part of Sections 5 and 6 Range 10 and that part of the
foreshore of District Xxx 000 Xxxxxxxxx Xxxxxxxx shown coloured
red on plan deposited under DD 14529I
009 922 431 That part of Section 1 Range 11 Chemainus District lying to the
North of the Northerly boundary of Xxxxxxx Street as said
street is shown on Plan 739 and the production easterly of the
said northerly boundary, except parts in Plans 4257 and 23431
009 920 145 That part of Section 5 Range 9 Chemainus District lying
Northerly and Westerly of Plan 5803, except parts in Plans 4302
and 9775
009 925 431 Xxxxxxxx Xxx 0 Xxxxxxxxx Xxxxxxxx
009 921 168 That part of Section 2 Ranges 10 and 00 Xxxxxxxxx Xxxxxxxx in
Plan DD 8239I containing 31.7 acres more or less except part in
Plan 856 BL
009 862 021 Xxxxxxxx Xxx 0 Xxxxxxxxx Xxxxxxxx
005 852 293 Xxx 0 Xxxxxxxx Xxx 0 Xxxxxxxxx Xxxxxxxx Xxxx 6538
009 034 595 Xxxxxxxx Xxx 0 Xxxxxxxxx Xxxxxxxx except part in Plan 6538
009 861 998 Xxxxxxxx Xxx 0 Xxxxxxxxx Xxxxxxxx
004 627 938 Xxx 0 Xxxxxxxxx Xxxxxxxx
000 000 887 District Xxx 000 Xxxxxxxxx Xxxxxxxx except that part included
in the right of way of the Esquimalt and Nanaimo Railway
Company
006 116 981 That part of Xxx 0 Xxxxxxx 0 Xxxxx 00 Xxxxxxxxx Xxxxxxxx Xxxx
0000 shown outlined in red on Plan 815 R
000 167 886 Lot A Xxxxxxx 0 Xxxxx 0 Xxxxxxxxx Xxxxxxxx Xxxx 00000
-5-
004 169 948 Xxx 0 Xxxxxxx 0 Xxxxx 00 Xxxxxxxxx Xxxxxxxx Xxxx 00000
000 573 736 Xxx 0 Xxxxxxx 0 Xxxxx 00 Xxxxxxxxx Xxxxxxxx Xxxx 0000 except
part in Plan 15020 and 41332
006 116 965 That part of Xxx 0 Xxxxxxx 0 Xxxxx 00 Xxxxxxxxx Xxxxxxxx Xxxx
0000 lying to the north of a boundary parallel to the northerly
boundary of said lot and extending from a point on the easterly
boundary of said lot distant 1.515 chs. from the north east
corner of said lot
006 116 973 That part of Xxx 0 Xxxxxxx 0 Xxxxx 00 Xxxxxxxxx Xxxxxxxx Xxxx
0000 lying south of a boundary parallel to the northern
boundary of said lot and extending from a point on the easterly
boundary thereof distant 1.515 chs. from the north east corner
of said lot, except that part thereof shown outlined in red on
Plan 815R
006 066 551 Xxx 0 Xxxxxxx 0 Xxxxx 00 Xxxxxxxxx Xxxxxxxx Xxxx 4257
009 921 958 That part of Section 6 Range 10 Chemainus District lying to the
north of the right of way of the Esquimalt and Nanaimo Railway
Company
009 920 196 Section 6 Range 9 Chemainus District except parts in Plans 4302
and 5803
009 920 803 Section 4 Range 9 Chemainus District except the west 30 chains
and except parts in Plans 925 RW, 13072, 22398 and 32612
009 920 064 That part of Section 5 Range 8 Chemainus District lying
easterly of the centre line of Tsussie Creek (which is the
easterly boundary of Plan 4302) and to the north of the
northerly boundary of the right of way of the Esquimalt and
Nanaimo Railway Company shown on Plan DD 27614, except parts in
Plans 5803 and 9775
024 662 666 Lot 1 of Sections 4, 5 & 6 Range 00 Xxxxxxxxx Xxxxxxxx Xxxx
XXX00000
024 662 674 Xxx 0 xx Xxxxxxxx 0, 0 & 0 Xxxxxx 00 & 11 Chemainus District
and of Sections 5 & 6 Range 10 Chemainus District and of
District Lots 141 and 000 Xxxxxxxx Xxxxxxxx Xxxx XXX00000
024 663 018 Xxx 0 xx Xxxxxxxx 0, 0, & 0 Xxxxxx 00 & 11 and District Xxx 000
Xxxxxxxxx Xxxxxxxx and of District Lots 141 and 000 Xxxxxxxx
Xxxxxxxx Xxxx XXX00000
024 663 034 Xxx 0 xx Xxxxxxxx 0, 0 & 0 Xxxxx 00 Xxxx XXX00000
024 663 115 Xxx 0 Xxxxxxx 0 Xxxxxx 00 and 00 Xxxxxxxxx Xxxxxxxx Xxxx
XXX00000
(formerly PACIFICA)
Vancouver Land Title Office
000-000-000 District Xxx 0000 Xxxxx 0 Xxx Xxxxxxxxxxx Xxxxxxxx Except Lot
A2 (Reference Plan 490)
000-000-000 Block 46, Except those portions included in Plans 8519, 10829,
Reference Plan 3573 and Explanatory Plan 6151 and Plans 12506
and 14689 District Xxx 000 Xxxx 0000
000-000-000 Xxxxx 00 Xxxxxxxx Xxx 450 Plan 8096
000-000-000 District Xxx 0000 Xxxxx 0 Xxx Xxxxxxxxxxx Xxxxxxxx
000-000-000 District Xxx 0000 Xxxxx 0 Xxx Xxxxxxxxxxx Xxxxxxxx
000-000-000 District Xxx 0000, Xxxxx 0 Xxx Xxxxxxxxxxx Xxxxxxxx Except Part
in Reference Plan 2267
000-000-000 District Xxx 0000 Xxxxx 0 Xxx Xxxxxxxxxxx Xxxxxxxx
000-000-000 Lot A2 (Reference Plan 490) District Lot 3091 Group 1 New
Westminster District
000-000-000 Xxx 0 Xxxxx 00 Xxxxxxxx Xxx 000 Plan 6606
000-000-000 District Xxx 0000 Xxxxx 0 Xxx Xxxxxxxxxxx Xxxxxxxx
000-000-000 Block 43, Except those portions in Plans 12273 and 14778
Explanatory Plans 5457 and 7624, District Xxx 000 Xxxx 0000
000-000-000 Xxxxx 00 Xxxxxxxx Xxx 450 Plan 8096
000-000-000 District Xxx 0000 Xxxxx 0 Xxx Xxxxxxxxxxx Xxxxxxxx
000-000-000 Xxx 0 Xxxxx 0 Xxxxxxxx Xxx 000 Xxxx 4533
000-000-000 Xxx 00 Xxxxx 00 Xxxxxxxx Xxx 450 Plan 4533
000-000-000 Block 58 District Lot 450 Plan 8096
000-000-000 Block 55 Except Portions in Plans 13475, 14965 and 16963,
District Xxx 000, Xxxx 0000
000-000-000 Xxxxx 00 Xxxxxxxx Xxx 1901A Plan 8096
000-000-000 Xxxxx 00 Xxxxxxxx Xxx 0000X Plan 8096
000-000-000 Lot 8, Except Part in Reference Plan 5142 and Except Part in
Explanatory Plan 3085 Block 13 District Lot 450 Plan 6606
000-000-000 Xxx 00 Xxxxx 00 Xxxxxxxx Xxx 450 Plan 6606
000-000-000 Xxx 00 Xxxxx 00 Xxxxxxxx Xxx 450 Plan 6606
-6-
000-000-000 Xxx 0 Xxxxx 0 Xxxxxxxx Xxx 000 Xxxx 4533
000-000-000 Xxx 0 Xxxxx 00 Xxxxxxxx Xxx 450 Plan 6606
000-000-000 Block 37 (Explanatory Plan 4343) Except Part in Plan 13855,
District Lot 450, Plan 8096
000-000-000 Xxx 0 Xxxxx 00 Xxxxxxxx Xxx 450 Plan 6606
(formerly PACIFICA)
Victoria Land Title Office
000-000-000 Xxx 0, Xxxxxxxx Xxx 0, Xxxxxxx Xxxxxxxx, Plan 15070, Except
Part in Plans 31593, 51178 and VIP67137
000-000-000 Xxx X, Xxxxxxxx Xxxx 000 and 196 and Block 000, Xxxxxxx
Xxxxxxxx, Xxxx XXX00000, Except Part in Plan VIP68610
000-000-000 That Part of District Lot 61, Alberni District, Outlined in Red
on Plan 462 RW
000-000-000 Xxx X Xxxxxxxx Xxx 0 Xxxxxxx Xxxxxxxx and Part of the Bed of
the Public Harbour of Alberni Plan VIP69746
000-000-000 Xxxxxxxx Xxx 000, Xxxxxxx Xxxxxxxx
000-000-000 District Xxx 000, Xxxxxxx Xxxxxxxx, Xxxxxxxxxx 0.00 Xxxxx more
or less
000-000-000 Xxxxxxxx Xxx 000, Xxxxxxx Xxxxxxxx
000-000-000 That Part of District Lot 141, Alberni District, Outlined in
Red on Plan 487 RW
000-000-000 That Part of Xxx 0, Xxxxxxxx Xxxx 00 xxx 000, Xxxxxxx Xxxxxxxx,
Plan 15961 Lying to the East of Plan 487 RW
000-000-000 That Part of Parcel A (DD 3333N) of District Lot 81, Alberni
District, Shown Outlined in Red on Plan 890 RW
000-000-000 Xxx X, Xxxxxxxx Xxx 0, Xxxxxxx Xxxxxxxx, Xxxx 00000
000-000-000 That Part of District Lot 1, Alberni District, Shown Outlined
in Red on Plan 1186R
000-000-000 That Part of District Lot 105, Alberni District, Outlined in
Red on Plan 471 RW, Except Part in Plan 33608
000-000-000 That Part of District Lot 105, Alberni District, Outlined in
Red on Plan 890 RW, Except Part in Plan 33608
000-000-000 That Part of District Lot 81, Alberni District, Outlined in Red
on Plan 479 RW
000-000-000 That Part of District Lot 61, Alberni District, Outlined in Red
on Plan 889 RW
000-000-000 That Part of District Lot 81, Alberni District, Shown Outlined
in Red on Plan 890 RW, Except Part in Parcel A (DD 3333N), and
Except Part in Plan 2192
000-000-000 That Part of District Lot 81, Alberni District, Outlined in Red
on Plan 492 RW
000-000-000 That Part of District Lot 127, Alberni District, Outlined in
Red on Plan 472 RW
000-000-000 That Part of Parcel C (XX 00000X), Xxxxxxxx Lot 85, Alberni
District, Shown Outlined in Red on Plan 889 RW, Except that
Part in Plan VIP56579
000-000-000 That Part of Parcel A (DD 3333N) of District Lot 81, Alberni
District, Outlined in Red on Plan 478 RW
000-000-000 Those Parts of Parcel C (XX 00000X), Xxxxxxxx Lot 85, Alberni
District, Shown Outlined in Red on Plan 486 RW, Except that
Part in Plan VIP56579
000-000-000 That Part of Parcel C (DD 20890N) of District Lot 86, Alberni
District, Outlined in Red on Plan 464 RW
000-000-000 That Part of Parcel D (DD 526N) of District Lot 86, Alberni
District, Outlined in Red on Plan 464 RW
000-000-000 Xxx 0 Xxxxxxxx Xxx 0 Xxxxxxx Xxxxxxxx Xxxx XXX00000 See Plan
for Limited Access - Access by Water Only
000-000-000 That Part of District Lot 127, Alberni District, Shown Outlined
in Red on Plan 890 RW
000-000-000 Lot A District Lot 1 and Part of the Bed of Public Harbour of
Alberni Xxxxxxx Xxxxxxxx Xxxx XXX00000
000-000-000 That Part of Parcel D (DD 526N) of District Xxx 00, Xxxxxxx
Xxxxxxxx, Included in Plan 889 RW
000-000-000 That Part of Parcel C (DD 20890N) of District Xxx 00, Xxxxxxx
Xxxxxxxx, Included in Xxxx 000 XX
-0-
Xxxx Xxxxxxx Waterlots
(H2565) That Portion of the bed of Port Alberni Harbour adjacent to
Hoik Island, Alberni District, Vancouver Island, Province of
British Columbia, as shown outlined in red on an Explanatory
Plan of Lease #152 prepared by Messrs. Acres & Xxxxxxx B.C.L.S.
file # 9624 and certified correct on April 13, 1988, containing
in the aggregate 15.549 hectares (38.42 Acres) more or less
(H1305, Lease Part of the bed of Port Alberni Harbour, commencing at the most
1305) southerly corner of Lease number One Hundred Forty-Nine (149)
in Port Alberni Harbour; thence south seven hundred fifty (750)
feet; thence west nine hundred (900) feet; thence north nine
hundred (900) feet; thence east eight hundred fifteen and nine
tenths (815.9) feet more or less to an intersection with the
southwesterly boundary of the said Lease number One Hundred
Forty-Nine (149); thence southeasterly and following the said
southwesterly boundary one hundred seventy-one and ninety-seven
hundredths (171.97) feet more or less to the point of
commencement. The whole of the hereinbefore described parcel
contains eighteen and forty-five hundredths (18.45) acres, be
the same more or less, and is shown outlined in red colour on a
plan prepared by Xxxxxxx Xxxxxxx Xxxxx, British Columbia Land
Surveyor, sworn on the twenty-ninth (29th) day of December 1965
(H1140, H1301, Lot 280-G, 27.00 acres in size; Lot 292-G, 33.54 acres in size;
H1302, H1139, Xxx 000-X, 14.75 in size; Lot 278-G, 45.40 acres in size and
H1764) Lot 279-G, 18.00 acres in size; all of Alberni District
N/A That strip of land lying between two lines commencing at a
point on the easterly boundary of Xxx 0, Xxxxxxx Xxxxxxxx,
distant nineteen hundred and forty-five and four tenths feet
(1945.4 ft.) south and three hundred and twenty-one and five
tenths feet (321.5 ft.) east from the northwest corner thereof,
thence south sixty-seven degrees, twenty minutes east (S67
degrees20'E) a distance of eight hundred and seventy and eight
tenths feet (870.8 ft.) more or less, to the easterly bank of
the Somass River
(H1151) Xxx 000, Xxxxxxx Xxxxxxxx, and more particularly described by a
British Columbia Land Survey completed on December 10, 1963
(H1152) Xxx 000, Xxxxxxx Xxxxxxxx, and more particularly described by a
British Columbia Land Survey completed on January 20, 1964
(H1374, Lease A portion of the foreshore and bed of Port Alberni Harbour
137) shown outlined in red colour on a plan entitled "Plan
accompanying application to the Port Alberni Harbour
Commissioners by MacMillan Xxxxxxx Limited for effluent pipe
and power cable easement through tidal lands and the bed of the
Somass River in Port Alberni Harbour" which said plan was sworn
to by Xxxxxxx Xxxxxxx Xxxxx, British Columbia Land Surveyor, on
the 10th day of July in the year of 1970, containing in the
aggregate Seventy Four/One Hundredths (.74) acres (.2995 ha.)
more or less
-8-
(H1375, Lease That portion covered by the waters of the Alberni Inlet
135 and 135A) commencing at a point South Twelve degrees fifty-four minutes
forty seconds East (12 degrees 54' 40" E) two hundred
thirty-six and four tenths (236.40) feet from the most westerly
corner of the fourteen and six hundredths (14.06) acre parcel
outlined in red on Land Registry Office Plan one thousand six
hundred and eighty-four (1684) R; thence South eighty-three
degrees thirty-eight minutes twenty seconds East (S 83 degrees
38' 20" E) two hundred sixty-six and two tenths (266.20) feet;
thence South forty-eight degrees fifty-nine minutes thirty
seconds East (S 48 degrees 59' 30" E) seven hundred fifty (750)
feet; thence South thirty-nine degrees thirty-two minutes
twenty seconds East (S 39 degrees 32" 20" E) one hundred
eighty-two and twenty-seven hundredths (182.27) feet; thence on
a tangential circular curve to the right having a radius of one
hundred thirty-nine and two tenths (139.20) feet, a distance of
one hundred ninety-one and four hundredths (191.04) feet;
thence South thirty-nine degrees five minutes forty seconds
West (S 39 degrees 05' 40" W) one thousand eighty-one and
fifty-three hundredths (1081.53) feet; thence on a tangential
circular curve to the right having a radius of two hundred
twenty-four and thirty-two hundredths (224.32) feet, a distance
of three hundred fifty-two and forty-two hundredths (352.42)
feet; thence North fifty degrees four minutes thirty seconds
West (N 50 degrees 04' 30" W) nine hundred twenty-five and
seventy-four hundredths (925.74) feet; thence on a tangential
circular curve to the right having a radius of one hundred
twenty-four and forty-four hundredths (124.44) feet, a distance
of one hundred seventy-two and two hundredths (172.02) feet;
thence North twenty-nine degrees seven minutes forty seconds
East (N 29 degrees 07' 40" E) one hundred sixty-six and three
hundredths (166.03) feet; thence North forty-five degrees
twenty minutes East (N 45 degrees 20' E) four hundred seventy
and forty-five hundredths (470.45) feet; thence north
thirty-seven degrees fifty-three minutes, forty seconds East (N
37 degrees 53' 40" E) six hundred twelve and nine hundredths
(612.09) feet, more or less to the point of commencement,
containing in the aggregate 35.8 acres (14.50 ha.) more or less
(Rockfill) Portion of the bed of the Port Alberni Harbour formerly covered
by water, now filled, shown outlined in red on a plan entitled
"Plan to Accompany Application" by MacMillan Xxxxxxx Limited
for lease of part of the bed of Port Alberni Harbour, which
said plan was sworn to by Xxxxxxx Xxxxxxx Xxxxx, British
Columbia Land Surveyor, on the 16th day of December, 1970
(H1671, Lease Those certain parcels or tracts of land situate lying and being
109) in the bed of Alberni Harbour and consisting of strips of said
bed lying between two lines drawn parallel to, and
perpendicularly distant 25 feet from and on opposite sides of,
a centre line and terminated by high water xxxx, said centre
line being more particularly described as follows:
A. Commencing at a point 290.45 feet north of the southerly
boundary of Parcel A of Xxxx 0 xxx 0 (X.X. 00000X), Xxxxxxx
District, and 1614.88 feet on bearing N 85 degrees 34' E from
the southwest corner of said Parcel A; thence S 73 degrees 38'
E 419.3 feet, said strip of land containing 0.481 acres more or
less
B. Commencing at a point 101.3 feet south of the southerly
boundary of Parcel A of Xxxx 0 xxx 0 (X.X. 00000X), Xxxxxxx
District, and 2673.74 feet on bearing N 85 degrees 34' E from
the southwest corner of said Parcel A; thence S 73 degrees 38'
E 231.8 feet, said strip of land containing 0.276 acres more or
less
C. Commencing at a point 251.5 feet south of the southerly
boundary of Parcel A of Xxxx 0 xxx 0 (X.X. 00000X), Xxxxxxx
District, and 3059.0 feet on bearing N 85 degrees 34 'E from
the southwest corner of said Parcel A; thence S 67 degrees 20'
E 168.4 feet, said strip of land containing 0.193 acres more or
less
-9-
(H4234) That portion of the bed of Port Alberni Harbour adjacent to
Hoik Island, Alberni District, Vancouver Island, Province of
British Columbia, as shown outlined in red on Plan of Survey of
Lease #144-1 (being a subdivision of Lease Lot 144) Bed of Port
Alberni Harbour, British Columbia prepared by Xxxxxxx Xxxxx
Xxxxxx and certified correct on April 8, 1998, containing in
the aggregate 53.627 acres (21.7 hectares) more or less
(H1304) That portion of the bed of Port Alberni Harbour covered by
water, which said portion is shown as "Lease 132, Amended Area,
containing 2.58 Acres 1.045 ha.), and outlined in red colour on
a plan entitled "Plan of Amendments to Leases 118, 119 and 132,
within Port Alberni Federal Harbour, Alberni District, B.C."
which said plan was certified correct by X.X. Xxxxx, British
Columbia Land Surveyor, on December 16, 1970
Xxxxxx River Waterlots
(H1276) District Lots 4071, 4072, 5922, 5923, 6071, 6174 and 6237A,
Group 0 Xxx Xxxxxxxxxxx Xxxxxxxx containing a total of 69.70
hectares
(H1288) District Xxx 0000 xxx 0000 Xxxxx 0 Xxx Xxxxxxxxxxx Xxxxxxxx
containing 22.95 hectares
(H1367) District Xxx 0000 Xxxxx 0 Xxx Xxxxxxxxxxx Xxxxxxxx, containing
50.59 hectares
(H1287) District Xxx 0000 Xxxxx 0 Xxx Xxxxxxxxxxx Xxxxxxxx, containing
18.7 hectares
Leased:
Real Property Leases
PID Legal Description
--- -----------------
000-000-000 District Xxx 000, Xxxxx 00 (EP9962), Plan 000 xxx Xxxxxxx X, X,
X xx xx, Xxxxxxx Xxxxxxxx Xxxxx, 000 Xxxx Xxxxxxx, Xxxxxxxxx
(Originally 81760 Sq. Ft. Floors 7-11 amended numerous times)
Head Lease Bos HQ FCCL
000-000-000 Sections 2 and 3, Chemainus Xxx 0, Xxxxx 00, Xxxx 0000, Xxx
Xxxxxxxxxx Trailer Site, Xxxxx Street, Crofton P&P (Xxxxxxxx
Challenge Canada Limited)
000 000 000 Xxx 0 Xxxxxxxx Xxx 00 and 13 Group 2 and of the Bed of the
Fraser River New Westminster District Plan LMP29318
000 000 000 Lot 1 of the Bed of the Fraser River New Westminster District
Plan 76570
004 501 110 Xxx 00 Xxxxxxxx Xxxx 0, 00 and 11 Group 0 Xxx Xxxxxxxxxxx
Xxxxxxxx Xxxx 00000
000-000-000 Xxx 00, Xxxxx 00, Xxxxxxxx Xxx 000, Xxxx 210, 000 Xxxxxxxxx
Xxxxxx (sublease of 5860 sq. ft. on the second floor)
000-000-000 Xxx 00, Xxxxx 00, Xxxxxxxx Xxx 000, Xxxx 210 (see Lot 24 above)
000-000-000 Xxx 00, Xxxxx 00, Xxxxxxxx Xxx 000, Xxxx 210 (see Xxx 00 xxxxx)
000-000-000 Xxxxx 00, Xxxxxxxx Xxx 541, Plan 210, except Plan 18901 and
EP13277 (month to month lease of offices 46 & 47 at 0000-000
Xxxx Xxxxxxx Xxxxxx, note that the legal description includes
all of Pacific Centre not just offices 46 &47)
Nature of Business: Paper Manufacturing
Jurisdictions in which its property other than accounts receivable is located:
British Columbia
-10-
Capital Stock Holdings:
Corporation Certificate No. Number and Class Of Securities
----------- --------------- ---------------------------------
Elk Falls Pulp and Paper Limited 3 1 common share
Elk Falls Forest Industries Limited 4 1,000 common shares
5 1,699,200 common shares
6 4,500,000 common shares
Norske Xxxx Canada (Japan) Ltd. C No.003 1,000 shares
Norske Xxxx Canada Pulp Operations Limited 6 53,683,253 common shares
7 46,026,332 common shares
8 24,474,668 common shares
9 1 common share
Norske Xxxx Canada Sales Inc. 7 1,000 common shares
3264904 Canada Limited 3 1 common share
468327 B.C. Ltd. 2-C 2,000 common shares
British Columbia Forest Products Limited 3 1 common share
Catalyst Paper Corporation (B.C.) 2 1 common share
Catalyst Paper Corporation (Canada) 2 1 common share
Crofton Pulp and Paper Limited 9 2 common shares
Echelon Paper Corporation (B.C.) 2 1 common share
Echelon Paper Corporation (Canada) 2 1 common share
Export Sales Company Limited (formerly 8 10 common shares
Mackenzie Forest Products Limited n/c
Dec.11/01)
NSC Holdings (Barbados) Limited 100% of capital stock
(details unknown)
NSC Holdings (Philippines) Inc. (unknown) 79,475 common shares
NSCL Holdings Inc. 4 1,000 common stock
Pacifica Poplars Ltd. 8 90,001 common shares
Pacifica Papers Sales Ltd. 4 1 common share
Pacifica Papers Kabushiki Kaisha X0001 1,000 shares
NorskeCanada A1 124,070 Class A Units
A3 118,224 Class A Units
A5 84,455 Class A Units
B1 8,317 Class B Units
B3 5,913 Class B Units
Xxxxxx River Energy Inc. 4 50,001 common shares
Xxxxxx River Energy Limited Partnership Not applicable 49.95% interest (no units issued)
Norske Xxxx Canada Finance Limited 3 10 common shares
2. NORSKE XXXX CANADA FINANCE LIMITED
Capital Stock: Authorized Capital: 10,000 Common Shares without par value
Issued and outstanding Shares: 10 Common Shares
Members: Norske Xxxx Canada Limited
Head Office: 0xx Xxxxx, 000 Xxxx Xxxxxxx Street P.O. Box 00000 Xxxxxxx
Xxxxxx Xxxxxxxxx, Xxxxxxx Xxxxxxxx X0X 0X0
Real Property:
Owned: Nil
Leased: Nil
Nature of Business: To borrow funds and lend them on to the Norske Group of
Companies
-11-
Jurisdictions in which its property other than accounts receivable is located:
British Columbia
Capital Stock Holdings: Nil
3. NORSKE XXXX CANADA PULP OPERATIONS LIMITED
Capital Stock: Authorized capital: 500,000,000 common shares without
par value
Issued and outstanding shares: 124,189,254 common
shares
Members: Norske Xxxx Canada Limited
Head Office: 0xx Xxxxx, 000 Xxxx Xxxxxxx Street
P.O. Box 00000 Xxxxxxx Xxxxxx
Xxxxxxxxx, Xxxxxxx Xxxxxxxx
X0X 0X0
Real Property:
Owned: Nil
Leased: Nil
Nature of Business: Pulp Manufacturing
Jurisdictions in which its property other than accounts receivable is located:
British Columbia
Capital Stock Holdings:
Corporation Certificate No. Number and Class Of Securities
---------- --------------- ------------------------------
Norske Xxxx Canada Pulp Sales Inc. 3 1 common share
Norske Xxxx Pulp Sales (Japan) Ltd. B No.001 600 shares
Allwin Technical Services Inc. 2 1 common share
4 1,349,999 common shares
5 1,350,000 common shares
NorskeCanada A2 15,444 Class A Units
A4 111,697 Class A Units
A6 25,304 Class A Units
B2 1,683 Class B Units
B4 4,087 Class B Units
4. ELK FALLS PULP AND PAPER LIMITED
Capital Stock: Authorized capital: 10,000,000 common shares without par value
Issued and outstanding shares: 1 common share
Members: Norske Xxxx Canada Limited
Head Office: 0xx Xxxxx, 000 Xxxx Xxxxxxx Street X.X. Xxx 00000 Xxxxxxx
Xxxxxx Xxxxxxxxx, Xxxxxxx Xxxxxxxx X0X 0X0
Real Property:
Owned:
-12-
PID: Legal Description:
---- ------------------
000 849 731 District Lot 120 (DD 2157781) Sayward District Except Part in
Plans 14946 and VIP57724
000 849 821 That part of District Xxx 00 Xxxxxxx Xxxxxxxx shown outlined in
red on Plan 1374 RW
000 848 905 Lot A DL 68 Sayward District Plan 20538
000 000 000 That part of DL 151 Sayward District shown outlined in red on Plan
1433R
000 000 000 That Part of DL 163 Sayward District shown outlined in red on Plan
1431R
001 233 475 Block B of Lot 1504 Sayward District
001 233 467 Block C of Lot 1504 Sayward District
001 233 459 Block D of Lot 1504, Sayward District
000 848 913 Xxx 0 XX 00 Xxxxxxx Xxxxxxxx Xxxx 00000
000 849 855 That part of DL 52 Sayward District shown outlined in red on Plan
659 RW
000 849 847 That part of DL 67 Sayward District shown outlined in red on Plan
659 RW
000 849 910 District Xxx 00 Xxxxxxx Xxxxxxxx except part in Plans 34604 and
42540
000 848 921 Xxx 0 XX 000 Xxxxxxx Xxxxxxxx Xxxx 16956
000 849 430 District Xxx 000 Xxxxxxx Xxxxxxxx shown outlined in red on Plan
1431R
001 233 432 District Lot 109 Sayward District except Parcel A (DD 285472-I)
and those parts in Plans 1373-R, 16956, 19371, 50636 and VIP54479
and VIP64521
001 233 441 Lot 1599 Sayward District except that portion in Plan VIP 64521
000 846 287 Xxxxxxxx Xxx 0 Xxxxxxx Xxxxxxxx except those parts in Plans 19371,
42540, 50636, VIP 64521 and VIP 64522
015 101 231 Amended Bl 24 (See 235568L) DL 313 Plan 827
000 000 000 Lot A (See M51221L) Bl 23 DL 313 Plan 827
Note: Elk Falls Pulp and Paper Limited holds legal title only to the above
properties. Norske Xxxx Canada Limited holds beneficial title.
Leased:
PID: Legal Description:
---- ------------------
N/A Site Lease XXX #00000, XXX XX XX Sections 1 and 0, X0XX0X
XX00, Xxxx Xxxx Xxxx Loading Site, 14021 Port Xxxx Shore
District of Surrey, Fibre Supply EFFIL (Elk Falls Pulp and
Paper Limited)
Nature of Business: Bare Trustee
Jurisdictions in which its property other than accounts receivable is located:
British Columbia
Capital Stock Holdings: Nil
5. NORSKE XXXX CANADA SALES INC.
Capital Stock: Authorized capital: 10,000 common shares without par value
Issued and outstanding shares: 1,000 common shares
Members: Norske Xxxx Canada Limited
Head Office: 0xx Xxxxx, 000 Xxxx Xxxxxxx Street P.O. Box 00000 Xxxxxxx
Xxxxxx Xxxxxxxxx, Xxxxxxx Xxxxxxxx X0X 0X0
Real Property:
Owned: Nil
Leased: Nil
-13-
Nature of Business: Pulp and Paper Sales
Jurisdictions in which its property other than accounts receivable is located:
British Columbia, Alberta
Capital Stock Holdings: Nil
6. NORSKE XXXX CANADA PULP SALES INC.
Capital Stock: Authorized capital: 100,000,000 common shares without
par value
Issued and outstanding shares: 1 common share
Members: Norske Xxxx Canada Pulp Operations Limited
Head Office: 0xx Xxxxx, 000 Xxxx Xxxxxxx Street
P.O. Box 00000 Xxxxxxx Xxxxxx
Xxxxxxxxx, Xxxxxxx Xxxxxxxx
X0X 0X0
Real Property:
Owned: Nil
Leased: Nil
Nature of Business: Fibre Sales
Jurisdictions in which its property other than accounts receivable is located:
British Columbia
Capital Stock Holdings: Nil
7. NORSKE XXXX PULP SALES (JAPAN) LTD.
Capital Stock: Authorized capital: 800 shares with a par value of
Y50,000 each
Issued and outstanding shares: 600 shares
Members: Norske Xxxx Canada Pulp Operations Limited
Head Office: Ginza Fujiya Building 6F
0-0 Xxxxx 0-xxxxx, Xxxx-xx
Xxxxx 000-0000, Xxxxx
-14-
Real Property:
Owned: Nil
Leased: Nil
Nature of Business: Pulp Sales
Jurisdictions in which its property other than accounts receivable is located:
Japan
Capital Stock Holdings: Nil
8. NORSKE XXXX CANADA (JAPAN) LTD.
(known as Xxxxxxxx Challenge Paper Sales (Japan) Ltd. until 1 August 2001)
Capital Stock: Authorized capital: 4,000 shares with a par value of Y
50,000 each
Issued and outstanding shares: 1,000 shares
Members: Norske Xxxx Canada Limited
Head Office: Ginza Fujiya Building 6F 0-0 Xxxxx 0-xxxxx, Xxxx-xx
Xxxxx 000-0000, Xxxxx
Real Property:
Owned: Nil
Leased: Nil
Nature of Business: Pulp and Paper Sales.
Jurisdictions in which its property other than accounts receivable is located:
Japan
Capital Stock Holdings: Nil
9. NSCL HOLDINGS INC.
Capital Stock: Authorized capital: 1,000,000 common stock with a par
value of US$1 each
Issued and outstanding shares: 1,000 common stock
Members: Norske Xxxx Canada Limited
Head Office: Xxxxx 000, Xxxxxxxxxx Xxxxx Xxxxxxxx 0000 Xxxxxxx
Xxxxxx Xxxxxxx, Xxxxxxxxxx 00000
Real Property:
Owned: Nil
Leased: Nil
Nature of Business: Holding Company
Jurisdictions in which its property other than accounts receivable is located:
not applicable (holding company)
-15-
Capital Stock Holdings:
Corporation Certificate No. Number and Class Of Securities
----------- --------------- ------------------------------
Norske Xxxx Canada (USA) Inc. 4 1,000 common stock
Arizona Newsprint Industries Corporation 4 1,000 common stock
NSC Fibre Inc. 2 1,000 common stock
Pacifica Papers US Inc. 7 100 common shares
10. NORSKE XXXX CANADA (USA) INC.
(Known as Norske Xxxx Paper Company until 13 September 2001)
Capital Stock: Authorized capital: 1,000,000 common shares
Issued and outstanding shares: 1,000 common shares
Member: NSCL Holdings Inc.
Head Office: Xxxxx 000, Xxxxxxxxxx Xxxxx Xxxxxxxx 0000 Xxxxxxx
Xxxxxx Xxxxxxx, Xxxxxxxxxx 00000
Real Property:
Owned: Nil
Leased: Nil
Nature of Business: Pulp and Paper Sales
Jurisdictions in which its property other than accounts receivable is located:
California, Colorado, Illinois, Washington, Oregon, Alabama, Michigan
Capital Stock Holdings:
Corporation Certificate No. Number and Class Of Securities
----------- --------------- ------------------------------
Norske Xxxx North America LLC Not applicable 50% equity interest
11. NORSKECANADA
Partnership Units: Authorized units: Unlimited number of Class A Units and
Class B Units
Issued and outstanding units: 479,194 Class A Units and
20,000 Class B Units
Partners: Norske Xxxx Canada Limited and Norske Xxxx Canada
Pulp Operations Limited
Head Office: 0xx Xxxxx, 000 Xxxx Xxxxxxx Street X.X. Xxx 00000 Xxxxxxx
Xxxxxx Xxxxxxxxx, X.X. X0X 0X0
Real Property:
Owned: Nil
-16-
Leased:
PID: Legal Description:
---- ------------------
000-000-000 Section 2, Chemainus Lot A Range 6 and 7, Plan 45436, Gas
Monitoring Trailer Site, Xxxxx Road, Crofton P&P
000-000-000 Sections 12 and 13, Xxx 0, Xxxxx 0, Xxxx 00000, Xxxxxxxx, Gas
Monitoring Trailer Site Located at 0000 Xxxxxx Xxxxxxxx Xxxx,
Xxxxxxx X&X
N/A District Xxx 000, XX Xxxx 00, 00, 00, 00, Xxxxx 43, District Plan
198, 000 Xxxxxx Xxxxxx, Xxxxxxxxx (basement storage space) Bos
FCCL (also contains TWFL historical records)
Provincial Water Lot Leases
Crofton Facility:
N/A W/Lot Lease #102130 - District Lot 107G; Blk D Chemainus (Prev.
#13180) Log Booming & Wharfage (Sublet 15 Dec 1993 Stuart Channel
Wharves)
N/A W/Lot Lease #102653 - District Lot 107G; Blk A & B Chemainus
(Prev. #13181) Warehouse & Dock #1 & #2 & Part Stuart Channel
Wharves Dock #3 (.2274 AC. SCW)
N/A W/Lot Lease #101412 - Lot 161; Blk B Cowichan Log Storage,
Shipping & Industrial PT
N/A W/Lot Lease #106051 - DL 565, 676, 2008; Blk E Cowichan (Prev.
#101709 & PT 103929) Log Dumping, Booming, Storage, Scow & Chip
Barge Moorage, Industrial Purposes
Elk Falls Facility:
N/A W/Lot Lease #101447 - Blk A Lot 1504; Sayward (Prev. #29554)
Xxxxxx Bay Fronting Pulp Mill Complex
N/A W/Lot Lease #100785 - Xxx 000 xxx Xxx 0000; Xxx X Xxxxxxx Xxxxxx
Xxx next to Middle Point Barge Tie Up & Log Storage (Upland DL
2,26)
Federal Water Lot Leases
N/A W/Lot Lease #05020, between the North Fraser Port Authority
(landlord) and Norske Xxxx Canada Limited (tenant), for a Chip
Loading Site Fronting Kent Avenue (0.806 ha.)
N/A W/Lot Lease #E-04-06, between the Fraser River Port Authority
(landlord) and 3264912 Canada Limited (now Norske Xxxx Canada Pulp
Operations Limited), for a Barge Tie-up & Fiber Supply Loading
Area near Port Xxxx (2.248 ha.)
Nature of Business: Operation of pulp and paper manufacturing facilities
Jurisdiction in which its property other than accounts receivable is located:
British Columbia
Capital Stock Holdings: Nil
12. PACIFICA PAPERS SALES LTD.
Capital Stock: Authorized capital: 500,000,000 common shares
Issued and outstanding: 1
Member: Norske Xxxx Canada Limited
Head Office: 0xx Xxxxx, 000 Xxxx Xxxxxxx Street
X.X. Xxx 00000 Xxxxxxx Xxxxxx
Xxxxxxxxx, X.X. X0X 0X0
-17-
Real Property:
Owned: Nil
Leased: Nil
Nature of Business: Canadian marketing agent
Jurisdiction in which its property other than accounts receivable is located:
British Columbia
Capital Stock Holdings: Nil
13. PACIFICA POPLARS LTD.
Capital Stock: Authorized capital: 100,000 common shares
Issued and outstanding: 90,001
Member: Norske Xxxx Canada Limited
Head Office: 0xx Xxxxx, 000 Xxxx Xxxxxxx Street
X.X. Xxx 00000 Xxxxxxx Xxxxxx
Xxxxxxxxx, X.X. X0X 0X0
Real Property:
Owned:
PID: Legal Description:
---- ------------------
000-000-000 Xxx 0, Xxxxxxxx Xxxx 00 xxx 000, Xxxxxxx Xxxxxxxx,
Plan VIP64541
000-000-000 Xxx 00, Xxxx Xxxxx, Xxxxxxx Xxxxxxxx, Xxxx 0000 Except
that Part in Plan VIP65075
000-000-000 Xxx 00, Xxxx Xxxxx, Xxxxxxx Xxxxxxxx, Xxxx 0000
000-000-000 Xxx 00, Xxxx Xxxxx, Xxxxxxx Xxxxxxxx, Xxxx 0000
000-000-000 District Xxx 000, Xxxxx Xxxxxxxx
000-000-000 Xxx X, Xxxxx 29, Comox District, Plan 3433, Except
that Part thereof Lying to the South of the Southerly
Boundary of Dove Creek Road as said Road is Described
in B.C. Gazette Dated 31.08.1933, Page 1273, and
Except that Part thereof included within the
Boundaries of Plan 1551R
000-000-000 The Fractional South West 1/4 of Xxxxxxx 00, Xxxxxxxx
0, Xxxxx Xxxxxxxx, Xxxx 552G
000-000-000 The Fractional South East 1/4 of Xxxxxxx 00, Xxxxxxxx
0, Xxxxx Xxxxxxxx, Xxxx 552G
000-000-000 The West 1/2 of the North East 1/4, Section 8,
Township 3, Sayward District, Except the South West
1/4 of the North East 1/4 of said Section 0, Xxxxxxxx
0, Xxxxxxx Xxxxxxxx, Xxxxxx Part in Plan 40329
000-000-000 The East 1/2 of the North West 1/4, Section 8,
Township 3, Sayward District, Except Parts Shown
Coloured Red and Yellow on Plan 280 RW
-18-
PID: Legal Description:
---- ------------------
000-000-000 Xxx X, Xxxxxxx 00, Xxxxxxxx 0 and Xxx 000, Xxxxxxx Xxxxxxxx, Xxxx
XXX00000
000-000-000 Xxx 0 xx Xxxxxxxx Xxxx 0 0X 0 xxx 00 Xxxxxxx Xxxxxxxx Plan
VIP72153
000-000-000 Xxx 0 xx Xxxxxxxx Xxxx 0X xxx 0 Xxxxxxx Xxxxxxxx Plan VIP72153
000-000-000 Xxx X, Xxxxxxxx Xxx 00, Xxxxxxx Xxxxxxxx, Xxxx 00000
000-000-000 Block 36, Except 9(A) Those Portions in Plans 8230, 8368, 8765,
9240, 10196, 12203, 12273, 13678, 13855, 13904, 14438, 14728,
14857, 15509 and 15920 (B) Part outlined green on Explanatory Plan
3126 (C) Parcel 7 (Reference Plan 5651) and Part subdivided by
Plan LMP25234 District Xxx 000 Xxxxx 0 Xxx Xxxxxxxxxxx Xxxxxxxx
Xxxx 8096
000-000-000 Xxx X Xxxxxxxx Xxx 000 Xxxxx 0 Xxx Xxxxxxxxxxx Xxxxxxxx Plan
LMP25234
000-000-000 The Closed Part of the Xxxxxx River-Westview Road Shown Outlined
in Green on Reference Plan 0000 Xxxxx 00 Xxxxxxxx Xxx 000 Plan
8096
000-000-000 Block 56, Except Part in Plan 12767, District Lot 450 Plan 8096
Leased:
Real Property Leases
Lease from Xxxxx & Xxxxx Xxxxxxx of Xxx X, Xxxxx 00, Xxxxx Xxxxxxxx, Xxxx
XXX00000
Lease from Xxxxxxx X. Hockey & Xxxxx X. Hockey of Xxx 00, Xxxxxxxx Xxx 0,
Xxxxxxx Xxxxxxxx, Plan 1981
Lease from Xxxxxx X. Xxxxxx of Part of Xxx 0, Xxxxxxxx Xxx 000, Xxxx 00000
Xxxxxxx Xxxx District
Lease from Ed & Xxxxxx Xxx of Part of Xxx 0, Xxxxxxx 00, Xxxxxxxx 0, Xxxxx
Xxxxxxxx, Xxxx 00000
Lease from Xxxx & Xxxxxxxx Xxxxxxxxxxx of Part of Xxx 00, Xxxxx 00, Xxxxx
Xxxxxxxx, Xxxx 0000,
Except Part in Plan 38715 as shown in red on the attached plan and
comprising of 29.8 acres (2.06 HA), more or less
Lease from Xxxxx Xxxxxxxx of that Part of District Xxx 00, Xxxxxxx
Xxxxxxxx, except that part included within the boundaries of Plan 13475,
containing approximately 13.32 HA (Northern Portion)
Lease from Xxxxx Xxxxxxxx of that Part of District Xxx 00, Xxxxxxx
Xxxxxxxx, except that part included within the boundaries of Plan 13475,
containing approximately 16.6 HA (Southern Portion)
Lease from XXXX Enterprises Ltd. of that Part of the South 1/2 of District
Xxx 00, Xxxxxxx Xxxxxxxx,
Xxxxxx Amended Parcel B (DD14401N) and Except the R/W of the E&N Railway
Company shown colored red on plan deposited DD9088F and except that Part in
Plan 13475, containing approximately 6.38HA
Lease from Xxxxx Xxxxx Xxxx & Hachhatter Sing Xxxx of Part of Xxxxxxx 0,
Xxxxxxxx 00, Xxx Xxxxxxxxxxx Xxxxxxxx Xxxx LMP 1570 (H4018)
Lease from Xxxxxxxx Gardens Ltd. of that Part of Lot 1 Except: Part
Dedicated Road on Plan 69971, Section 00, Xxxxxxxx 00, Xxx Xxxxxxxxxxx
Xxxxxxxx Xxxx 0000 as outlined in red on the attached plan and comprising
an area of 35 acres (22.5 HA), more or less
Lease from Gurdarshen Singh of Part of the West Half of the North East
Quarter Section 00, Xxxxxxxx 00, Xxx Xxxxxxxxxxx Xxxxxxxx
Lease from Xxxxxxxx Xxxxxx Xxxxx and Xxxxxxxxxx Xxxxx of Part of the North
Half of DL 8, Group 1 Except 1 PCL C (Plan B427) 2. Pt of Plan 6465, 3. PCL
"B" (Ref Plan 11261), 4. PT PCL "14" Plan 8809, 5. PT of Plan 27426A, 6 PT
Subdiv by Pl 11421, 7. PT in Expl Plan 11824, 0.XX Subd by Plan 36609, 9.
Part on Xxx Xx 00000, 10. Part Subd by Plan 52465, Yale Div, Yale Dist,
Containing 45 Acres more or less
Lease from Xxxxxx & Xxxxxx Xxxxxx of Part of Xxx 0, Xxxxxxx 00 xxx Xxxxxxx
00, Xxxxxxxx 4, Range 27, West of the 0xx Xxxxxxxx, Xxx Xxxxxxxxxxx
Xxxxxxxx Xxxx 00000, and Part of Xxx 0, Xxxxxxxx Xxx 00
-19-
"A", Group 1, Yale Division of Yale District, Plan 15730 as shown in red on
the attached print and comprising 35 acres (14.16 HA) more or less
Lease from Xxxx Xxxxxxx Xxxxxxx of Xxx 0 Xxxxxxx 00 Xxxxxxxx 00 Xxxxxxxxxxx
Xxxxxxxx Plan 3529
Lease from Xxxx X. Xxxxxx of Part of Xxx 0 Xxxxxxxx Xxx 0000 Xxxxx 0 Xxx
Xxxxxxxxxxx District in
West Half of District Lot 4168 Except Plan 7623 Group 0 Xxx Xxxxxxxxxxx
Xxxxxxxx
Lease from Mrs. Pluck of Xxx 00, Xxxxxxxx Xxx. 0, Xxxxxxx Xxxxxxxx, Plan
1981
Lease from Xx. Xxxxxx of part of Xxx 00, Xxxxxxxx Xxx 0, Xxxxxxx Xxxxxxxx,
Plan 1981
Nature of Business: Canadian poplar tree plantation business
Jurisdiction in which its property other than accounts receivable is located:
British Columbia
Capital Stock Holdings: Nil
14. PACIFICA PAPERS KABUSHIKI KAISHA
Capital Stock: Authorized capital: 2,000 shares with par value of Y50,000
per share Issued and outstanding: 1,000 Member: Norske
Xxxx Canada Limited
Head Office: Ginza Fujiya Building 6F 0-0 Xxxxx 0-xxxxx, Xxxx-xx Xxxxx
000-0000, Xxxxx
Real Property:
Owned: Nil
Leased: Nil
Nature of Business: Selling agent in Japan
Jurisdiction in which its property other than accounts receivable is located:
Japan
Capital Stock Holdings: Nil
15. PACIFICA PAPERS US INC.
Capital Stock: Authorized capital: 1,000 common shares Issued and
outstanding: 100 Member: NSCL Holdings Inc.
Head Office: The Corporation Trust Company Corporation Trust Center
0000 Xxxxxx Xxxxxx Xxxxxxxxxx, XX 00000 XXX
Chief Executive Office: Xxxxx 000, Xxxxxxxxxx Xxxxx Xxxxxxxx 0000 Xxxxxxx
Xxxxxx Xxxxxxx, Xxxxxxxxxx 00000
-20-
Real Property:
Owned: Nil
Leased: Nil
Nature of Business: U.S. holding company
Jurisdiction in which its property other than accounts receivable is located:
Washington
Capital Stock Holdings:
Corporation Certificate No. Number and Class Of Securities
----------- --------------- ------------------------------
Pacifica Papers Sales Inc. 8 100 common shares
Pacifica Poplars Inc. 11 850 shares of common stock
16. PACIFICA PAPERS SALES INC.
Capital Stock: Authorized capital: 1,000 common shares Issued and
outstanding: 100 Member: Pacifica Papers US Inc.
Head Office: The Corporation Trust Company Corporation Trust Center
0000 Xxxxxx Xxxxxx Xxxxxxxxxx, XX 00000 XXX
Chief Executive Office: Xxxxx 000, Xxxxxxxxxx Xxxxx Xxxxxxxx 0000 Xxxxxxx
Xxxxxx Xxxxxxx, Xxxxxxxxxx 00000
Real Property:
Owned: Nil
Leased: Nil
Nature of Business: U.S. marketing agent
Jurisdiction in which its property other than accounts receivable is located:
Washington
Capital Stock Holdings: Nil
17. PACIFICA POPLARS INC.
Capital Stock: Authorized capital: 1,000 shares of common stock
Issued and outstanding: 850 Member: Pacifica Papers US
Inc.
Head Office: The Corporation Trust Company Corporation Trust Center
0000 Xxxxxx Xxxxxx Xxxxxxxxxx, XX 00000 XXX
-21-
Chief Executive Office: Xxxxx 000, Xxxxxxxxxx Xxxxx Xxxxxxxx
0000 Xxxxxxx Xxxxxx
Xxxxxxx, Xxxxxxxxxx 00000
Real Property:
Owned:
Property Record
& File Nos. Title No. Legal Description
--------------- ---------- -----------------
F-4098 9610110803 N/E 1/4 & portion of the E 1/2 of the NW 1/4 of
4101-01 Section 00, Xxxxxxxx 00X, Xxxxx 6 E.W.M., King
County, except a portion of the NE 1/4 Section 00,
Xxxxxxxx 00X, Xxxxx 0 Xxxx X.X.
F-4118 9701140877 The S 1/2 of the SE 1/4 and that portion of the
4102-01 SE 1/4 of the XX 0/0, Xxxxxxx 00, Xxxxxxxx 00X,
Xxxxx 6 East, X.X., King County.
F-4114 0000000000 That portion of the N 1/2 of the NW 1/4 and
4103-01 portion of the NW 1/4 of the NE 1/4 of Section 00,
Xxxxxxxx 00X, Xxxxx 0 Xxxx, X.X., Xxxx Xxxxxx.
F-4051 9601030073 Parcel A, part of the east 6 acres of the SW 1/4
4301-01 of the SE 1/4 of Section 6, lying south & west of
Conner Slough, and part of Gov't Lot 2, lying
south & west of Conner Slough, Section 7, all
within XXX 00X, Xxxxx 0 Xxxx xx X.X., (See deed
for full legal).
F-4080 9604100060 Part of the SW 1/4 of the NE 1/4 and the W 1/2 of
4302-01 the SE 1/4 of the NE 1/4, all in Section 0,
Xxxxxxxx 00X, Xxxxx 4 E.W.M., except County Road
R/W's. Also, part of the N 1/2 of the XX 0/0 xx
Xxxxxxx 0, XXX 00X, Xxxxx 4 E.W.M., Skagit
County.
F-4145 9703140056 That portion of Xxx 0, xx Xxxxx Xxxx Xx. 00-00,
0000-00 lying north of the County Road known as Mud Lake
Road previously known as Xxxx Xxxxxxx Xxxx,
Xxxxxxxx 00X, Xxxxx 0 Xxxx, X.X. (See deed for
full legal description).
F-4084 9606040120 The S 1/2 of the NW 1/4 and the N 1/2 of the SW
4304-01 1/4 in Sec. 0, Xxxxxxxx 00X, Xxxxx 3 E, X.X.,
except roads and drainage ditch rights-of-way,
and except that portion, in any, lying south of
the north line of the south 80 acres of said SW
1/4, Section 4, Plan 9.
F-4088 9608120155 Parcel "A" the E 1/2 of the SE 1/4 of the NE 1/4
4305-01 of Section 0, Xxxxxxxx 00X, Xxxxx 4 E.W.M.,
except County Road & Parcel "B" the portion of
the W 1/2 of the SW 1/4 of the NW 1/4 & that
portion of the SW 1/4 of Section 0, Xxxxxxxx 00X,
Xxxxx 0X.
F-4117 9709090008 Portions of Government Xxxx 0 & 0 xx Xxxxxxx 0,
0000-00 Xxxxxxxx 00X, Xxxxx 3 East, X.X., Government Lot
2 and portion of Government Xxx 0, xx Xxxxxxx 0,
Xxxxxxxx 00X, Xxxxx 2 East, X.X., and portion of
the Xxxxx 0/0, Xxxxxxx 00, Xxxxxxxx 00X, Xxxxx.
F-4127 9710100109 Tract 2 of Skagit County Short Plat No. 97-0056
4307-01 approved September 8, 1997, recorded September
17, 1997, in Volume 13, page 36-38 of Short
Plats, under auditor's file No. 9709170034, being
a portion of Northeast 1/4 of Section 00,
Xxxxxxxx 00X, Xxxxx 2 East; except that portion
described by quit claim deed dated the 1st of
June, 1999.
F-4040 9508290366 Parcel A - Xxx 00, XXX 00X, Xxxxx 0 X,X.X. and
4501-01 Parcel B - Xxx 00, XXX 00X, Xxxxx 0 E, X.X. (see
deed for full legal).
F-4041 9508020290 Those portions of Government Xxxx 0 & 0 xx Xxx
0000-00 13; the NW 1/4 of Government Lots 3 & 4 and the N
1/2 of the S 1/2 of Sec 14; the E 1/2 of Sec 15;
and Government Lot 7 of Section 10; all in
Xxxxxxxx 00X, Xxxxx 0 Xxxx, X.X., Xxxxxxxxx
Xxxxxx (see deed for details).
F-4034 9506290020 The NW 1/4 of the SW 1/4, Section 26, lying west
4503-01 of SR 530 (Parcel A); Government Xxx 0, Xxxxxxx
00 (Xxxxxx B); Government Xxx 0, Xxxxxxx 00
(Xxxxxx C), all within Xxxxxxxx 00X, Xxxxx 0
Xxxx, X.X., all situate in the County of
Snohomish. (see deed for full legal).
F-4052 9512280191 Parcel A being part of Xxxxxxx 00, Xxxxxxxx 00X,
0000-00 Xxxxx 5 East, X.X.; Parcel B being part of the NW
1/4 of the SW 1/4 of Section 00, Xxxxxxxx 00X,
Xxxxx 0 Xxxx, X.X.; and Parcel C being Lot 5,
Stetcher acre tracts, all situate within
Snohomish County.
-22-
Property Record
& File Nos. Title No. Legal Description
--------------- ---------- -----------------
F-4055 9512050402 Parcel A, being the E 3/4ths of the NE 1/4 of
4505-01 the SW 1/4; & the E 1/2 of the E 1/2 of the SE
1/4 of the SW 1/4 of Sec 15 Parcel B, being, the
SW 1/4 of the SE 1/4 of Sec 15, Parcel C, being a
20' wide road easement; Parcel D, being part of
the NE 1/4 of Section 22, TWP 28
F-4081 9602160309 That portion of Government Lots 8 & 14 and XX
0000-00 0/0 xx xxx XX 0/0, Xxx 0; and portions of the NE
1/4 and the NW 1/4, N 1/2 of the NE 1/4, Sec 1/4
of the XX 0/0, xxx XX 0/0 xx xxx XX 0/0, Xxx 0;
all in XXX 00X, Xxx 0 X.X.X. Xxxxxxxxx Xxxxxx.
F-4083 9604300349 Part of the NE 1/4 of the NW 1/4 of Sec 16 and
4507-01 part of the SW 1/4 of the NW 1/4 of Xxx 00, XXX
00X, Xxx 0 E. W.M.; also Lot 1, Stetcher acre
tracts know as Xxx 0 xx XXX 00000, situated in
Snohomish County.
F-4086 0000000000 SW 1/4 of the SW 1/4, W 3/4 of the SE 1/4 of the
0000-00 XX 0/0, X 1/2 of the W 1/2 of the NE 1/4 of the
SW 1/4, all in Section 15, the S 1/2 of the SE
1/4 of Sec 16, the N 1/2 of the N 1/2 of the NE
1/4 of the NE 1/4 of Section 21; Township 2.
F-4087 9606120171 All that portion of the north half of the NE 1/4
4509-01 of Xxxxxxx 00, Xxxxxxxx 00X, Xxxxx 0 Xxxx, X.X.,
lying westerly of Xxxxx Xxxx Xx. 0, except the NW
corner of the NE 1/4 of the NW 1/4; thence east
40 feet; thence south 81 feet; thence west 540
feet.
F-4093 0000000000 Beginning at the NW corner of the NE 1/4 of the
4510-01 XX 0/0 xx Xxx 00, XXX 00X, Xxx 6 E. W.M.; thence
north along the West line of the SE 1/4 of the NE
1/4 of said Sec 19 to the intersection with the
southerly right of way line of the Puget Sound
Traction Ligh.
F-4091 9607150124 The SE 1/4 of the SW 1/4 of the NE 1/4 of Section
4511-01 00, Xxxxxxxx 00X, Xxxxx 6 E., X.X., less State
Highway 2. Together with that portion of the S
1/2 of the SE 1/4 of the NW 1/4 of said Section
27, lying easterly of State Highway 2 (see
attached F).
F-4090 9607150179 Parcels A, B & C, Snohomish County, described as
4512-01 the N 1/2 of the SE 1/4 of the NW 1/4; all that
portion of the N 1/2 of the S 1/2 of the NE 1/4;
all in Section 00, Xxxxxxxx 00X, Xxxxx 6 E.W.M.,
(see title for full legal).
F-4092 9609130400 Parcel "A" in Gov't Lot 5; Parcel "B-1" in the
0000-00 XX 0/0 xx xxx XX 1/4; Parcel "B-2" the south 25'
of SE 1/4 of the SE 1/4 plus the south 25' of the
east 165 feet of the SW 1/4 of the SE 1/4 all
located in Xxx 00, XXX 00 X, Xxx 0 E.W.M.; Parcel
"B-3" part of Gov't Lot.
F-4094 9609130263 That portion of the SE 1/4 of the SW 1/4 of Sec
4514-01 8, and that portion of the NE 1/4 of the NW 1/4
of Xxx 00, XXX 00 X, Xxx 0 E.W.M., in Snohomish
County (see title for full legal).
F-4101 9610220418 Parcel A: portion of the X 0/0 xx Xxx 0, XXX 00X,
0000-00 Xxx 6E, X.X.; Parcel B: portion of the XX 0/0 xx
Xxx 0, XXX 00X, Xxx 0X, X.X. & Parcel C: portion
of Gov't Xxx 0, Xxx 0 xxx X 0/0 xx XX 0/0 of Xxx
0, XXX 00X, Xxx 0X, X.X. with exceptions
F-4097 9611150060 The NE 1/4 of the SW 1/4 of Xxx 00, XXX 00X, Xxx
0000-00 5 E.W.M., except the south 30 feet, the north 20
feet and the west 10 feet and hereof; also except
that portion lying within Cherry Avenue.
F-4134 9711180246 Parcel A: the W 1/2 of the SW 1/4 of Sec 22;
4518-01 Parcel B: the SE 1/4 of the SE 1/4 and the E 1/2
of the NE 1/4 of the SE 1/4 of Sec 21; Parcel C:
the NE 1/4 of the NE 1/4 of Sec 28; all in XXX
00X, Xxx 0 X, X.X., with the exceptions (see
title for full legal).
F-4047 951011032 A tract of land in Section 0, Xxxxxxxx 00X, Xxxxx
4701-01 2E of X.X. described as follows: bounded on north
and the west by the Old Nooksack River as
meandered in 1859; on the east by Ferndale Road,
and on the south by Marine Drive, less roads,
situate in Whatc.
F-4026 950505035 The north half of the south half of the NW
4702-01 quarter and the SE quarter of the SE quarter of
the NW quarter of Section 00, Xxxxxxxx 00X, Xxxxx
5 East of the X.X. except railroad right of way
and except State Route No. 9.
F-4032 950512020 The E 1/2 of the SW 1/4; the NW 1/4 of the SW 1/4
4703-01 and the N 1/2 of the SW 1/4 of Section 8,
Township 37N, Range 5 East of the X.X. (see title
for full legal).
F-4033 950615017 The SW 1/4 of the SW 1/4 of Section 20, Township
4704-01 38N, Range 5 East of the X.X. Whatcom County (for
exceptions see full legal on deed).
F-4035 950609089 The NW 1/4 of the SE 1/4 of Section 19, less the
west 25' thereof; the south 417' of the
-23-
Property Record
& File Nos. Title No. Legal Description
--------------- ---------- -----------------
4705-01 east 417' of the NE 1/4 of the SE 1/4 of Section
19, less road; the SE 1/4 of the SE 1/4 of
Section 19 less roads; the SW 1/4 of the SE 1/4
of Section 19
F-4042 951019081 Xxx 0, xxxxxx xxx XX 0/0 xx Xxxxxxx 00, Xxxxxxxx
0000-00 39N, Range 2 East of the X.X. (see Deed for full
legal).
F-4044 951031158 Beginning at a point 561' south of the NE corner
4707-01 of the SE 1/4 of the NW 1/4, Section 0, Xxxxxxxx
00X, Xxxxx 0 Xxxx, X.X., Xxxxxxxxxx thence south
561', thence west 1320', thence north 561',
thence east 1320', to point of beginning
F-4045 960327151 The NW 1/4 of the NE 1/4 of Section 30, TWP 38N,
4708-01 Rng 5E, X.X., except the north 417' of the east
417' thereof; except the north 355' of the west
612' thereof; and except Strand Road (see deed
for full legal description).
F-4046 951004092 The S 1/2 of the N 2/3rds of Government Xxx 0 xx
0000-00 Xxxxxxx 0, Xxxxxxxx 00X, Xxxxx 2 East of X.X.,
less the road, situate in Whatcom County, State
of Washington.
F-4050 951212038 Government Xxx 0, Xxxxxxx 00, Xxxxxxxx 00X, Xxxxx
4710-01 2 East of X.X., except roads.
F-4053 951215105 Parcel A being part of the W 1/2 of the SW 1/4 of
4711-01 the SW 1/4 of Section 16; also the SE 1/4 of the
SE 1/4 of Section 17; Parcel B being part of the
NE 1/4 of the NE 1/4, Section 20, all within
Xxxxxxxx 00X, Xxxxx 0 Xxxx X.X., Xxxxxxx Xxxxxx
(see deed).
F-4124 1970800864 Parcel A, a strip of land 30' in width across the
4711-06 south end of the SE 1/4 of the SE 1/4 of Section
17; and Parcel B, a strip of land 30' in width
across the south end of the W 1/2 of the SW 1/4
of the SW 1/4 of Section 16; all in Township 37N.
F-4054 960105050 The S 1/3 of Government Xxx 0, Xxxxxxx 0,
0000-00 Xxxxxxxx 00X, Xxxxx 2 East, of X.X. in Whatcom
County, Washington.
F-4057 960313031 The south 60 acres of the west half of the
4713-01 southeast quarter of Section 00, Xxxxxxxx 00X,
Xxxxx 1 East of X.X., less roads, situate in the
County of Whatcom, State of Washington.
F-4082 960415012 Parcel 'A'; Government Xxx 0 xx Xxx 00 xxx Xxxxxx
0000-00 'B'; the north 20 acres of the SE 1/4 of the SW
1/4 of Sec 31; XXX 00X, Xxx 0 E.W.M., except
Xxxxx Road and Slough, situate in Whatcom County.
F-4095 0000000000 All of Lots 6, 7 and 11 and the SE 1/4 of the SW
4715-01 1/4 of Xxx 00, XXX 00X, Xxx 0X, X.X. also a strip
of land 15' in width along the westerly bank of
the Nooksack River in Lot 6 and along the 1/4 sec
line running east and west in said Sec 32, which
forms the North.
F-4096 961015018 All that part of Gov't Lot 8 and the SW 1/4 of
4716-01 the XX 0/0, Xxx 0, and the NW 1/4 of the NE 1/4,
Xxx 00, XXX 00X, Xxx 0 E.W.M., Whatcom County
(see Exhibit "A" for full legal).
F-4125 1970704143 The east 20 acres of the N 1/2 of the SW 1/4 and
4717-01 the S 1/2 of the SW 1/4 of Section 00, Xxxxxxxx
00X, Xxxxx 0 Xxxx, X.X. except the R/W for Xxxxx
Xxxxx Xx. 0; and that portion of said South 1/2
of the SW 1/4 lying west of State Route No. 9
F-4143 1980401482 Parcel A: the SW 1/4 of Sec 5; Parcel B: part of
4719-01 Sec 5; Parcel C: Lots 19, 20 and 21 in the NE 1/4
of the NE 1/4 of Sec 7; Parcel D: the NW 1/4 of
the SW 1/4 and the NW 1/4 of Sec 8; all in
Township 38N, Range 2 E. W.M. with exceptions.
F-4144 1980700595 Parcel A: Xxxxxx 0, 00, 00, 00, 00, 00, 00 and 30
4720-01 "Plat of the Marietta Garden Farms Whatcom
County" and Parcel B: that portion of Xxx 0, XXX
00X, Xxxxx 0 Xxxx of the X.X.
Leased: Nil
Nature of Business: U.S. poplar tree plantation business
-24-
Jurisdiction in which its property other than accounts receivable is located:
United States
Capital Stock Holdings: Nil
SCHEDULE G
BORROWING BASE CERTIFICATE
[see reference in Section 1.1.18]
TO: THE LENDERS (as defined in the Credit Agreement referred to below)
AND TO: THE TORONTO-DOMINION BANK, as Agent
We refer to Section 7.3.1(a) of the credit agreement dated as of 19
July 2002 between Norske Xxxx Canada Limited and others as Restricted Parties,
The Toronto-Dominion Bank as Administration Agent and the Lenders, Arrangers and
Syndication Agents named therein, as amended, supplemented, restated or replaced
from time to time (the "Credit Agreement"). All capitalized terms used in this
certificate and defined in the Credit Agreement have the meanings defined in the
Credit Agreement.
We hereby certify that the following is a true and correct calculation
of our Borrowing Base as of [date] and that the attached documents accurately
set out the details from which the Borrowing Base is calculated.
($'000S)
--------
A ACCOUNTS RECEIVABLE
Trade AR
Paper _____
Pulp _____
Fibre _____
Allowance for doubtful accounts (_____)
Accrued rebates, discounts and price adjustment (_____)
Foreign Exchange & other _____
------
Net Total _____
Other AR
Employee AR _____
Taxes _____
Other _____
------
_____
------
Consolidated AR per Financial Statements _____
Less: Employee AR (_____)
Less: AR of Unrestricted Parties (_____)
------
Adjusted AR _____
------
-2-
------
75% OF ADJUSTED AR _____
------
B INVENTORY
Finished Goods
Paper _____
Pulp _____
------
Sub total _____
WIP _____
Raw Materials
Chips _____
Logs _____
Sawdust _____
DIP/Other purchased pulp _____
Other _____
------
Sub total _____
Supplies
Crofton _____
Elk Falls _____
Xxxxxx River _____
Port Alberni _____
Other _____
------
Sub total _____
Consolidated Inventory per FS _____
Less: WIP (_____)
Less: Inventory of Unrestricted Parties (_____)
------
Adjusted Inventory _____
------
------
50% OF ADJUSTED INVENTORY _____
------
------
BORROWING BASE
(A + the lesser of A and B) _____
======
-3-
DATED
----------
NORSKE XXXX CANADA LIMITED
By:
------------------------------------
Name:
Title:
By:
------------------------------------
Name:
Title:
SCHEDULE H
OTHER SECURED OBLIGATIONS
[see reference in Section 3.2]
U.S. dollar to Canadian dollar foreign exchange contracts between Norske Xxxx
Canada Finance Limited and the following Lenders existing as of the close of
business on 18 July 2002:
LENDER TOTAL AMOUNT - US$
------------------------- ------------------
Royal Bank of Canada $88,000,000.00
The Toronto-Dominion Bank $52,500,000.00
The Bank of Nova Scotia $75,500,000.00
Bank of Montreal $ 8,000,000.00
HSBC Bank Canada $ 3,000,000.00
Laurentian Bank of Canada $ 2,000,000.00
Japanese yen to U.S. dollar foreign exchange contracts between Norske Xxxx
Canada Finance Limited and the following Lenders existing as of the close of
business on 18 July 2002:
LENDER TOTAL AMOUNT - JPY
------------------------- ------------------
Royal Bank of Canada Y 50,000,000.00
The Toronto-Dominion Bank Y300,000,000.00
The Bank of Nova Scotia Y150,000,000.00
HSBC Bank Canada Y225,000,000.00
U.S. dollar to Canadian dollar call option agreements between Norske Xxxx Canada
Finance Limited and the following Lenders existing as at the close of business
on 18 July 2002:
LENDER TOTAL AMOUNT - US$
------------------------- ------------------
The Toronto-Dominion Bank $34,000,000.00
U.S. dollar to Canadian dollar put and call option agreements with down and in
barrier price on USD call/Canada put currency pair between Norske Xxxx Canada
Finance Limited and the following Lenders existing as at the close of business
on 18 July 2002:
LENDER TOTAL AMOUNT - US$
---------------- ------------------
Bank of Montreal $6,000,000.00
-2-
U.S. dollar to Canadian dollar collar option agreements between Norske Xxxx
Canada Finance Limited and the following Lenders existing as of the close of
business on 18 July 2002:
LENDER TOTAL AMOUNT - US$
------------------------- ------------------
Royal Bank of Canada $144,000,000.00
The Toronto-Dominion Bank $ 31,000,000.00
The Bank of Nova Scotia $ 9,000,000.00
HSBC Bank Canada $ 60,000,000.00
Bank of Montreal $ 78,000,000.00
Laurentian Bank of Canada $ 12,000,000.00
Canadian dollar to U.S. dollar foreign exchange contracts between Norske Xxxx
Canada Finance Limited and the following Lenders existing as of the close of
business on 18 July 2002:
LENDER TOTAL AMOUNT - US$
------------------------- ------------------
Royal Bank of Canada $131,000,000.00
The Toronto-Dominion Bank $108,000,000.00
The Bank of Nova Scotia $ 69,800,000.00
HSBC Bank Canada $ 38,200,000.00
Bank of Montreal $ 10,000,000.00
Canadian dollar to U.S. dollar call option agreements between Norske Xxxx Canada
Finance Limited and the following lenders existing as at the close of business
on 18 July 2002:
LENDER TOTAL AMOUNT - US$
-------------------- ------------------
Royal Bank of Canada $10,000,000.00
U.S. dollar interest rate swap contracts to exchange fixed for floating interest
rates between Norske Xxxx Canada Finance Limited and the following Lenders
existing as of the close of business on 18 July 2002:
TOTAL NOTIONAL
LENDER PRINCIPAL AMOUNT - US$
------------------------- ----------------------
Royal Bank of Canada $75,000,000.00
The Toronto-Dominion Bank $20,000,000.00
HSBC Bank Canada $30,000,000.00
SCHEDULE I
LIMITATIONS ON CERTAIN SUBSIDIARIES OF RESTRICTED PARTIES
[see references in Sections 3.1, 7.2.5(c)]
None of 3264904 Canada Limited, Catalyst Paper Corporation (a British Columbia
company), Catalyst Paper Corporation (a Canada Business Corporations Act
company), Echelon Paper Corporation (a British Columbia company), Echelon Paper
Corporation (a Canada Business Corporations Act company), Export Sales Company
Limited (formerly Mackenzie Forest Products Limited), Crofton Pulp & Paper
Limited, 468327 B.C. Ltd., British Columbia Forest Products Limited, FCC
Holdings (Philippines) Inc., NSC Holdings (Barbados) Limited, NSC Fibre Inc.,
Arizona Newsprint Industries Corporation, Elk Falls Forest Industries Limited,
Norske Xxxx North America LLC and Allwin Technical Services Inc. shall at any
time carry on any business or have any material Property unless it first becomes
a Restricted Party in accordance with this Agreement.
SCHEDULE J
LITIGATION AND ENVIRONMENTAL MATTERS
[see references in Sections 6.1.3(a), 6.1.6(a)]
A. LITIGATION
PLAINTIFF DEFENDANT NATURE STATUS
------------- ------------------- -------------------- --------------------
1. Avenor Inc. Norske Xxxx Claim for Unknown (claimant
Canada Limited contribution or has not provided any
indemnity in respect detail)
of any judgment
International Forest
Products Limited
may obtain against
Avenor Inc. in
respect of
contaminants and
other hazardous or
toxic substances
2. International Crown Forest Contamination of Writ of Summons
Forest Industries Limited, Crown Forest issued and
Products Xxxxxxxx Challenge Industries Limited Appearance entered.
Limited Canada Limited, former Fraser Mill International Forest
Elk Falls Forest site Products Limited
Industries Limited has agreed to
and Elk Falls Pulp discontinue its
and Paper Limited action against Elk
Falls Forest
Industries Limited.
-2-
B. GRIEVANCES
Nothing which meets the materiality threshold.
C. ENVIRONMENTAL
Nothing which meets the materiality threshold.
SCHEDULE K
EXISTING L/CS AND BANKERS' ACCEPTANCES
[see reference in Section 2.8]
EXISTING L/CS
REFERENCE EXPIRY
BENEFICIARY NUMBER ISSUE DATE DATE AMOUNT
--------------------------- ------------ ----------- ----------- --------------
CIBC Mellon Trust Co. G21522V00010 27 Nov '91 31 Mar. '03 $25,987,000.00
(re executive pension)
Her Majesty the Queen in G24914V0010 13 Apr. '92 12 Apr. '03 $ 100,000.00
Right of the Province of
BC (Minister of Lands &
Parks) (re waterlot leases)
EXISTING BANKERS' ACCEPTANCES
[Note: maturity dates are all in 2002. Amounts are in thousands of dollars]
22 Jul 30 Jul 6 Aug 26 Aug 21 Oct Total
------ ------ ----- ------ ------ -----
The Toronto-Dominion Bank 300 100 200 300 200 1100
Royal Bank of Canada 300 300 200 200 200 1200
Bank of Montreal 800 800 600 500 500 3200
The Bank of Nova Scotia 800 800 600 500 500 3200
HSBC Bank Canada 800 800 600 500 500 0000
Xxxxxxx Xxxxx Xxxxxxx Xxxxxx Inc. 300 300 200 200 200 1200
Canadian Western Bank 200 300 200 200 200 1100
Laurentian Bank of Canada 400 400 300 100 300 1500
-----
15700
=====
SCHEDULE L
SPECIAL DERIVATIVE PROVISIONS
[See references in Sections 1.1.37, 1.1.47, 1.1.79(i), 7.7 and 8.1(k)]
NSCL has indicated that it is desirable, having regard to certain provisions of
the 1999 Indenture and the 2001 Indenture, to establish further arrangements on
which Derivatives described in Sections 1.1.79(c), 1.1.79(d) and 1.1.79(e) would
be entered into. These arrangements may include the appointment of a Lender to
act as an agent in connection with the administration of Derivatives (the
"DERIVATIVE AGENT"). NSCL has asked that the establishment of these arrangements
be deferred until after the initial Advance under this Agreement. Accordingly,
until otherwise agreed by amendment to this Agreement consented to by all
Lenders, the following provisions shall apply notwithstanding any other
provision of this Agreement:
1. No Restricted Party shall be a party to any Derivative of the type described
in Sections 1.1.79(c), 1.1.79(d) and 1.1.79(e), whether secured or unsecured and
whether entered into with a Lender or not, except for those that are outstanding
at the date of this Agreement and described on Schedule H (the "EXISTING SPECIAL
DERIVATIVES") and except that, if the amendment to this Agreement contemplated
in the preceding paragraph has not been entered into on or before 9 August 2002,
the Restricted Parties may enter into unsecured Derivatives of the type
described in Sections 1.1.79(c), 1.1.79(d) and 1.1.79(e) with persons other than
Lenders.
2. If the aggregate of the Market Values of all Existing Special Derivatives is
at any time negative from the Restricted Parties' perspective (that is, the
Restricted Parties on an aggregate basis are "out of the money") by more than
$10,000,000, the Restricted Parties shall, within five Business Days of
receiving notice from the Agent, terminate or re-price one or more Existing
Special Derivatives or take other action acceptable to the Agent acting
reasonably so that the negative Market Value of those Derivatives is immediately
reduced to less than $10,000,000.
3. NSCL shall report the current Market Value of the Existing Special
Derivatives to the Agent not less frequently than weekly.
TABLE OF CONTENTS
ARTICLE I INTERPRETATION.................................................. 2
1.1 Defined Terms.................................................. 2
ARTICLE II THE CREDITS.................................................... 27
2.1 Amount and Availment Options................................... 27
2.2 Revolving Credit............................................... 27
2.3 Use of Credits................................................. 27
2.4 Term and Repayment............................................. 27
2.5 Interest Rates and Fees........................................ 29
2.6 Commitment Fee................................................. 29
2.7 Other Fees..................................................... 30
2.8 Existing L/Cs, Bankers' Acceptances Etc........................ 30
2.9 Exchange Rate and Borrowing Base Fluctuations.................. 30
ARTICLE III SECURITY...................................................... 31
3.1 Security....................................................... 31
3.2 Obligations Secured by the Trustee Security.................... 34
3.3 Consent to Assignment of Contracts............................. 37
ARTICLE IV DISBURSEMENT CONDITIONS........................................ 38
4.1 Conditions Precedent to Initial Advance........................ 38
4.1.1 Other Debt and Encumbrances.................................... 38
4.1.2 Financial Information.......................................... 38
4.1.3 Security and Other Documents................................... 39
4.1.4 Corporate and Other Information................................ 39
4.1.5 Opinions....................................................... 39
4.1.6 Other Matters.................................................. 40
4.1.7 Deadline for Advance........................................... 40
4.2 Conditions Precedent to all Advances........................... 40
ARTICLE V ADVANCES........................................................ 41
-2-
5.1 Lenders' Obligations Relating to Credits 1 and 2............... 41
5.2 Adjustment of Proportionate Shares for Specific Credits........ 42
5.3 Exceptions Regarding Particular Credits........................ 42
5.4 Evidence of Indebtedness....................................... 42
5.5 Conversions.................................................... 43
5.6 Notice of Advances and Payments................................ 43
5.7 Prepayments and Reductions..................................... 43
5.8 Prime Rate, Base Rate and LIBOR Advances....................... 44
5.9 LIBOR Periods.................................................. 45
5.10 Termination of LIBOR Advances.................................. 45
5.11 Co-ordination of Prime Rate, Base Rate and LIBOR Advances...... 46
5.12 Execution of Bankers' Acceptances.............................. 46
5.13 Sale of Bankers' Acceptances................................... 47
5.14 Size and Maturity of Bankers' Acceptances and Rollovers........ 47
5.15 Co-ordination of BA Advances................................... 47
5.16 Payment of Bankers' Acceptances................................ 49
5.17 Deemed Advance - Bankers' Acceptances.......................... 49
5.18 Waiver......................................................... 49
5.19 Degree of Care................................................. 50
5.20 Indemnity...................................................... 50
5.21 Obligations Absolute........................................... 50
5.22 Shortfall on Drawdowns, Rollovers and Conversions.............. 50
5.23 Prohibited Use of L/Cs and Bankers' Acceptances................ 51
5.24 Issuance and Maturity of L/Cs.................................. 51
5.25 Payment of L/C Fees............................................ 51
5.26 Payment of L/Cs................................................ 51
5.27 Deemed Advance - L/Cs.......................................... 52
5.28 Prohibited Rates of Interest................................... 53
-3-
ARTICLE VI REPRESENTATIONS AND WARRANTIES................................. 53
6.1 Representations and Warranties................................. 53
6.1.1 Corporate Matters.............................................. 53
6.1.2 Credit Documents............................................... 55
6.1.3 Litigation, Financial Statements Etc........................... 55
6.1.4 Other Debt..................................................... 56
6.1.5 Property and Capital Stock..................................... 57
6.1.6 Environmental Matters.......................................... 57
6.1.7 Taxes and Withholdings......................................... 58
6.1.8 Aboriginal Claims.............................................. 58
6.1.9 Other Matters.................................................. 59
6.2 Survival of Representations and Warranties..................... 60
ARTICLE VII COVENANTS AND CONDITIONS...................................... 60
7.1 Financial Covenants............................................ 60
7.2 Positive Covenants............................................. 60
7.2.1 Payment; Operation of Business................................. 60
7.2.2 Inspection..................................................... 61
7.2.3 Insurance...................................................... 62
7.2.4 Taxes, Encumbrances and Withholdings........................... 62
7.2.5 Other Matters.................................................. 62
7.3 Reporting and Notice Requirements.............................. 64
7.3.1 Periodic Reports............................................... 64
7.3.2 Requirements for Notice........................................ 65
7.4 Ownership of the Restricted Parties............................ 66
7.5 Negative Covenants............................................. 67
7.5.1 Financial Transactions and Encumbrances........................ 67
7.5.2 Business and Property.......................................... 69
7.5.3 Corporate Matters.............................................. 70
-4-
7.6 Use of Insurance Proceeds...................................... 71
7.7 Adjustments to Amount of Debt.................................. 72
ARTICLE VIII DEFAULT...................................................... 73
8.1 Events of Default.............................................. 73
8.2 Acceleration and Termination of Rights......................... 76
8.3 Payment of L/Cs................................................ 76
8.4 Remedies....................................................... 76
8.5 Saving......................................................... 77
8.6 Perform Obligations............................................ 77
8.7 Third Parties.................................................. 77
8.8 Power of Attorney.............................................. 77
8.9 Remedies Cumulative............................................ 78
8.10 Set-Off or Compensation........................................ 78
ARTICLE IX THE AGENT AND THE LENDERS...................................... 78
9.1 Authorization of Agent and Relationship........................ 78
9.2 Disclaimer of Agent............................................ 79
9.3 Failure of Lender to Fund...................................... 80
9.4 Payments by the Borrower....................................... 81
9.5 Payments by Agent.............................................. 81
9.6 Direct Payments................................................ 82
9.7 Administration of the Credits.................................. 83
9.8 Rights of Agent................................................ 86
9.9 Acknowledgements, Representations and Covenants of Lenders..... 87
9.10 Collective Action of the Lenders............................... 88
9.11 Successor Agent................................................ 88
9.12 Provisions Operative Between Lenders and Agent Only............ 88
ARTICLE X ADDITIONAL LENDERS, SUCCESSORS AND ASSIGNS...................... 89
10.1 Successors and Assigns......................................... 89
-5-
10.2 Assignments.................................................... 90
10.3 Participations................................................. 91
ARTICLE XI MISCELLANEOUS PROVISIONS....................................... 91
11.1 Headings and Table of Contents................................. 91
11.2 Accounting Terms............................................... 91
11.3 Capitalized Terms.............................................. 92
11.4 Severability................................................... 92
11.5 Number and Gender.............................................. 92
11.6 Amendment, Supplement or Waiver................................ 92
11.7 Governing Law.................................................. 92
11.8 This Agreement to Govern....................................... 93
11.9 Permitted Encumbrances......................................... 93
11.10 Currency....................................................... 93
11.11 Liability of Lenders........................................... 93
11.12 Expenses and Indemnity......................................... 93
11.13 Environmental Indemnity........................................ 94
11.14 Manner of Payment and Taxes.................................... 95
11.15 Increased Costs etc............................................ 96
11.16 Interest on Miscellaneous Amounts.............................. 96
11.17 Currency Indemnity............................................. 96
11.18 Address for Notice............................................. 97
11.19 Time of the Essence............................................ 97
11.20 Further Assurances............................................. 97
11.21 Term of Agreement.............................................. 97
11.22 Payments on Business Day....................................... 97
11.23 Counterparts and Facsimile..................................... 98
11.24 Waiver of Jury Trial, Consequential Damages Etc................ 98
11.25 Entire Agreement............................................... 98
-6-
11.26 Date of Agreement.............................................. 99
SCHEDULE A NOTICE OF ADVANCE OR PAYMENT................................... 1
SCHEDULE B AGREEMENT OF NEW RESTRICTED SUBSIDIARY SUPPLEMENT TO CREDIT
AGREEMENT.............................................................. 1
SCHEDULE C COMPLIANCE CERTIFICATE......................................... 1
SCHEDULE D ASSIGNMENT AGREEMENT........................................... 1
SCHEDULE E PROPORTIONATE SHARES OF LENDERS................................ 1
SCHEDULE F DETAILS OF CAPITAL STOCK, PROPERTY ETC......................... 1
SCHEDULE G BORROWING BASE CERTIFICATE..................................... 1
SCHEDULE H OTHER SECURED OBLIGATIONS...................................... 1
SCHEDULE I LIMITATIONS ON CERTAIN SUBSIDIARIES OF RESTRICTED PARTIES...... 1
SCHEDULE J LITIGATION AND ENVIRONMENTAL MATTERS........................... 1
SCHEDULE K EXISTING L/CS AND BANKERS' ACCEPTANCES......................... 1
SCHEDULE L SPECIAL DERIVATIVE PROVISIONS.................................. 1
