Exhibit 99.48
May 24, 2011
Dear Sirs/Mesdames:
Scotia Capital Inc. (“
Scotia”), National Bank Financial Inc. (“
NBF”), BMO Xxxxxxx Xxxxx Inc.,
CIBC World Markets Inc., Xxxxxxx Xxxxx Ltd., and Wellington West Capital Markets Inc. (collectively
with Scotia and NBF, the “
Underwriters” and each, an “
Underwriter”) understand that
Student
Transportation Inc. (the “
Issuer”), an
Ontario corporation, proposes, subject to the terms and
conditions contained herein, to issue and sell US$60,000,000 aggregate principal amount of 6.25%
convertible subordinated unsecured debentures due June 30, 2018 (the “
Debentures”) to the
Underwriters for distribution to the public at an issue price of US$1,000 per Debenture and is
prepared:
| |
(a) |
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to create and issue the Debentures; and |
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(b) |
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to prepare and file, without delay, a preliminary short form prospectus and a
final short form prospectus and all necessary related documents in order to qualify the
Debentures for distribution in each of the provinces and territories of Canada (the
“Qualifying Jurisdictions”). |
Based upon the foregoing, and upon and subject to the terms and conditions set out below, the
Underwriters severally, and not jointly and severally, offer to purchase from the Issuer at the
Closing Time, and the Issuer hereby agrees to sell to the Underwriters, all but not less than all
of the US$60,000,000 aggregate principal amount of Debentures at a price of US$1,000 per Debenture,
being an aggregate purchase price of US$60,000,000.
In consideration of the Underwriters’ agreement to purchase the Debentures which will result
from the Issuer’s acceptance of this offer, and in consideration of the services to be rendered by
the Underwriters in connection therewith, including assisting in preparing documentation relating
to the Debentures, including the Preliminary Prospectus and the Final Prospectus, distributing the
Debentures to the public directly and through other investment dealers and brokers and performing
administrative work in connection with the distribution of the Debentures, the Issuer agrees to pay
to the Underwriters, at the Closing Time, a fee equal to 4.0% of the value of the Debentures
acquired at such time. For greater certainty, the services provided by the Underwriters in
connection herewith will not be subject to the goods and services tax provided for in the Excise
Tax Act (Canada) and any taxable supplies provided will be incidental to the exempt financial
services provided. However, in the event that the Canada Revenue Agency determines that goods and
services tax and/or harmonized sales tax provided for in the Excise Tax Act (Canada) is exigible on
the fees paid to the Underwriters, the Issuer agrees to pay the amount of goods and services tax
and/or harmonized sales tax forthwith upon the request of the Underwriters. The Issuer also agrees
to pay the Underwriters’ expenses as set forth in Section 16.2 hereof.
TERMS AND CONDITIONS
| 1. |
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Definitions and Interpretation |
| 1.1 |
|
Where used in this Agreement the following terms will have the following meanings,
respectively: |
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(a) |
|
“Actual Knowledge” means, in the case of the Issuer, to the actual knowledge of
Xxxxx Xxxxxxxxx, Xxxxxxx Xxxxxx and Xxxxxxx Xxxxxxx after reasonable inquiry, including
of Xxxxxx Xxxxx, the Issuer’s external counsel; |
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(b) |
|
“affiliate” or “associate” when used to indicate a relationship with a Person,
has the same meaning as set forth in the Securities Act (Ontario); |
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(c) |
|
“Agreement”, “hereto”, “herein”, “hereby”, “hereunder”, “hereof”, and similar
expressions refer to this Underwriting Agreement and not to any particular Section,
subsection, clause, subdivision or other portion hereof and included any and every
instrument supplemental or ancillary hereto; |
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(d) |
|
“Auditors” means Ernst & Young LLP; |
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(e) |
|
“Benefit Plans” means all stock option plans, employment, consulting and
severance agreements, long term compensation plans, pension, profit sharing and
retirement plans and all bonus and other employee benefit or fringe benefit plans,
including, without limitation, “employee benefit plans” as such term is defined under
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”) maintained or with respect to which contributions are made by the Issuer or
any of its subsidiaries or with respect to which the Issuer or any of its subsidiaries
has any liability; |
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(f) |
|
“Business” means the business carried on by the Issuer and its subsidiaries
immediately prior to and following the Closing Time; |
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(g) |
|
“business day” means a day other than a Saturday, a Sunday or a day on which
chartered banks are not open for business in Toronto, Ontario or in New York, N.Y.; |
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(h) |
|
“Closing Date” means June 7, 2011 or any earlier or later date as may be agreed
to in writing by the Issuer and the Underwriters, each acting reasonably, but will in
any event not be later than June 28, 2011; |
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(i) |
|
“Closing Time” means 8:00 a.m. (Toronto time) on the Closing Date, or any other
time on the Closing Date as may be agreed to by the Issuer and the Underwriters; |
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(j) |
|
“Damages” means, collectively, any direct damages, direct losses, direct
expenses or direct claims (but specifically excluding any punitive, exemplary, indirect
or consequential damages, losses, expenses and claims or losses of profit in connection
with the distribution of the Debentures) suffered by, imposed upon or asserted against
an Indemnified Party under the Securities Laws, other Laws, at common law or otherwise,
together with the reasonable expenses incurred in defence of same, such amount being
correspondingly reduced by: (i) any |
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insurance proceeds received or to be received at any time (or any other compensation
payments likely to be received within the following three years) by the Indemnified
Party in respect of the same claim; and (ii) the present value of the net benefit,
if any, that will be received by such party in the current or any future tax period
as a result of the payment of Damages; |
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(k) |
|
“Debentures” has the meaning given to that term above; |
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(l) |
|
“distribution” means distribution or distribution to the public, as the case
may be, for the purposes of the Securities Laws or any of them; |
| |
(m) |
|
“Environmental Claim” means any and all administrative, regulatory or judicial
actions, suits, demands, demand letters, requests for information, directives, claims,
liens, investigations, proceedings or notices of non-compliance or violation by any
person (including any agency) alleging or suggesting potential liability (including,
without limitation, potential responsibility for or liability for enforcement,
investigatory costs, cleanup costs, governmental response costs, removal costs,
remedial costs, natural resources damages, property damages, personal injuries or
penalties) arising out of, based on or resulting from (a) the presence, or Release or
threatened Release into the environment, of any Hazardous Substance at any location,
whether or not owned, operated, leased or managed by the Issuer and its subsidiaries or
any of its subsidiaries; or (b) circumstances forming the basis of any violation or
alleged violation of any Environmental Law; or (c) any and all claims by any third
party seeking damages, contribution, indemnification, cost recovery, compensation,
injunctive or other relief resulting from the presence or Release of any Hazardous
Substance; |
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(n) |
|
“Environmental Law” means applicable Law aimed at investigation, clean-up or
remediation of the real properties owned, leased or used by the Issuer and its
subsidiaries or any of its subsidiaries in which the Issuer and its subsidiaries or any
of its subsidiaries otherwise has an interest; abatement of pollution; protection of
the environment; protection of wildlife, including endangered species; ensuring public
safety from environmental hazards; worker health and safety protection of cultural or
historic resources; management, storage or control of hazardous materials and
substances; releases or threatened releases of pollutants, contaminants, chemicals or
industrial, toxic or hazardous substances or wastes into the environment, including
ambient air, surface water and groundwater; and all other applicable Law relating to
the manufacturing, processing, distribution, use, treatment, storage, disposal,
handling or transport of pollutants, contaminants, chemicals or industrial, toxic or
hazardous substances or wastes; |
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(o) |
|
“Environmental Liabilities” means any and all claims, actions, causes of
action, damages, losses, liabilities, obligations, penalties, judgments, amounts paid
in settlement, assessments, costs, disbursements, or expenses (including attorney’s
fees and costs, experts’ fees and costs, and consultants’ fees and costs) of any kind
or of any nature whatsoever that are asserted by any person or entity (including any
agency) other than the Issuer, alleging liability (including liability for studies,
testing or investigatory costs, cleanup costs, response costs, removal costs,
remediation costs, containment costs, restoration costs, corrective action costs,
closure costs, reclamation costs, natural resource damages, property damages, business
losses, personal injuries, penalties or fines) arising out of, |
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based on or resulting from (i) the presence, release, threatened release, discharge
or emission into the environment of any hazardous materials or substances existing
or arising on, beneath or above the real properties owned, leased or used by the
Issuer and its subsidiaries or any of its subsidiaries or in which the Issuer and
its subsidiaries or any of its subsidiaries otherwise has an interest and/or
emanating or migrating and/or threatening to emanate or migrate from such properties
to off-site properties, (ii) physical disturbance of the environment, or (iii) the
violation or alleged violation or any Environmental Law; |
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(p) |
|
“Equity Holders” means, (i) in respect of a corporation, its shareholders, and
(ii) in respect of any other Person, all Persons holding a direct or indirect
beneficial interest in such Person; |
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(q) |
|
“Final Prospectus” means the final prospectus of the Issuer (in both the
English and French languages unless the context indicates otherwise) to be approved,
signed and certified in accordance with the Securities Laws in the Qualifying
Jurisdictions relating to the qualification for distribution of the Debentures under
applicable Securities Laws in the Qualifying Jurisdictions (including, for greater
certainty, the documents incorporated therein by reference); |
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(r) |
|
“Final Passport System Decision Document” means a receipt for the Final
Prospectus issued in accordance with the Passport System; |
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(i) |
|
“Financial Information” means the Financial Statements and
management’s discussion and analysis included or incorporated by reference in
the Preliminary Prospectus or the Final Prospectus or incorporated by reference
therein; |
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(s) |
|
“Financial Statements” means the audited financial statements of the Issuer for
the fiscal year ended June 30, 2010 and the financial statements for the nine months
ended March 31, 2011, each incorporated by reference in the Offering Documents ; |
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(t) |
|
“Governmental Charges” means all taxes, duties, levies, assessments,
reassessments and other charges together with all related penalties, interest and
fines, payable in respect of periods ending on or before the Closing Date to any
domestic or foreign government (federal, provincial, state, municipal or otherwise) or
to any regulatory authority, agency, commission or board of any domestic or foreign
government, or imposed by any court or any other law, regulation or rule-making entity
having jurisdiction in the relevant circumstances; |
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(u) |
|
“Governmental Entity” means any: (i) multinational, federal, provincial, state,
municipal, local or other governmental or public department, regulatory or
administrative authority, central bank, court, commission, board, bureau, agency or
instrumentality, domestic or foreign; (ii) any subdivision or authority of any of the
foregoing; (iii) any quasigovernmental, self-regulatory organization or private body
exercising any regulatory, expropriation or taxing authority under or for the account
of its members or any of the above; or (iv) any arbitrator exercising jurisdiction over
the affairs of the applicable Person, asset, obligation or other matter; |
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(v) |
|
“Hazardous Substance” means (i) any petroleum, asbestos or asbestos-containing
materials, urea formaldehyde foam insulation, any form of natural gas, explosives,
polychlorinated biphenyls, radioactive materials, ionizing radiation, electromagnetic
field radiation or microwave transmissions; (ii) any chemicals, materials or
substances, whether waste materials, raw materials or finished products, which are
defined as or included in the definition of “hazardous substances,” “hazardous wastes,”
“hazardous materials,” “extremely hazardous substances,” “restricted hazardous wastes,”
“toxic substances,” “toxic pollutants,” “pollutants,” “contaminants” or words of
similar import under any Environmental Law; and (iii) any other chemical, material or
substance, whether waste materials, raw materials or finished products, regulated under
any Environmental Law; |
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(x) |
|
“Laws” means any and all laws, including all federal, state, provincial and
local statutes, codes, ordinances, decrees, rules, regulations and municipal by-laws
and all judicial, arbitral, administrative, ministerial, departmental or regulatory
judgments, orders, decisions, rulings or awards or other requirements of any other
Governmental Entity binding on or affecting the Person referred to in the context in
which the term was used; |
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(y) |
|
“Lien” means any mortgage, pledge, lien, security interest, easement,
encumbrance or other adverse claim; |
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(z) |
|
“Material Adverse Effect” or “Material Adverse Change” means any effect or
change on the Issuer that is or is reasonably likely to be materially adverse to the
results of operations, financial condition, assets, properties, capital, liabilities
(contingent or otherwise), cash flow, income or business operations of the Issuer and
all of its subsidiaries taken as a whole after giving effect to this Agreement and the
transactions contemplated hereby; |
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(aa) |
|
“Material Contracts” means any material note, indenture or other form of
indebtedness and any material contract, agreement (written or oral), instrument, lease
or other document to which the Issuer or any of the subsidiaries are a party or by
which a material portion of the Issuer’s or any subsidiaries’ assets are bound; |
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(bb) |
|
“material change” means a material change for the purpose of Securities Laws; |
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(cc) |
|
“material fact” means a material fact for the purpose of Securities Laws; |
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(dd) |
|
“misrepresentation” means a misrepresentation for the purpose of Securities Laws; |
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(ee) |
|
“Offering” means the distribution of the Debentures as contemplated in the
Final Prospectus; |
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(ff) |
|
“Offering Documents” means, collectively, the Preliminary Prospectus, the Final
Prospectus and any Supplemental Material, including (in each case) the Public
Disclosure Documents incorporated by reference therein; |
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(gg) |
|
“Ordinary Course” means, with respect to an action taken by a Person, that such
action (i) is consistent in all material respects with past practices of the Person;
(ii) is taken in the ordinary course of the normal day-to-day operations of the Person;
or (iii) is consistent with industry practice; |
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(hh) |
|
“OSC” means the Ontario Securities Commission; |
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(ii) |
|
“Passport System” means the passport system procedures provided for under
Multilateral Instrument 11-102 — Passport System and National Policy 11-202 — Process
for Prospectus Reviews in Multiple Jurisdictions among the Securities Commissions; |
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(jj) |
|
“Permitted Liens” means: |
| |
(i) |
|
Liens for Governmental Charges not yet due or which are being
contested in good faith by appropriate proceedings, provided that reasonable
reserves (established in accordance with applicable generally accepted
accounting principles) with respect to contested taxes are maintained on the
books of the Issuer and/or its subsidiaries; |
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(ii) |
|
pledges or deposits made in the Ordinary Course in connection
with workers’ compensation, unemployment insurance and other social security
legislation; |
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(iii) |
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easements, rights-of-way, restrictions and other similar
encumbrances incurred in the Ordinary Course which, in respect of properties or
assets of the Issuer are not material, and which, in the case of such
encumbrances on the assets of properties of the Issuer and/or its subsidiaries,
do not have a Material Adverse Effect; |
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(iv) |
|
carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s or other like Liens arising in the Ordinary Course which are not
overdue or which are being contested in good faith by appropriate proceedings
and for which reasonable reserves (established in accordance with applicable
generally accepted accounting principles) are maintained on the books and
records of the Issuer and/or its subsidiaries; |
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(v) |
|
deposits to secure the performance of bids, contracts (other
than for borrowed money), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the
Ordinary Course; |
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(vi) |
|
statutory and contractual Liens on the property of the Issuer
and/or its subsidiaries in favour of landlords securing leases; |
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(vii) |
|
Liens associated with operating leases; and |
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(viii) |
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Liens in existence on the Closing Date listed on Schedule 1(jj) hereto; |
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(kk) |
|
“Person” means any individual, partnership, limited partnership, limited
liability partnership, limited liability corporation, joint venture, syndicate, sole
proprietorship, company or corporation with or without share capital, |
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unincorporated association, trust, trustee, executor, administrator or other legal
personal representative, regulatory body or agency, government or governmental
agency, authority or entity however designated or constituted; |
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(ll) |
|
“Preliminary Prospectus” means the preliminary prospectus of the Issuer dated
May 24, 2011 (in both the English and French languages unless the context indicates
otherwise) relating to the qualification for distribution of the Debentures under
applicable Securities Laws in the Qualifying Jurisdictions; |
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(mm) |
|
“Public Disclosure Documents” means, collectively, all of the documents which
have been filed by or on behalf of the Issuer prior to the Closing Time with the
relevant Securities Regulators pursuant to the requirements of Canadian Securities
Laws, including all press releases filed on SEDAR in respect of which a material change
report has been filed pursuant to the requirements of Canadian Securities Laws; |
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(nn) |
|
“Qualifying Jurisdictions” means all of the provinces and territories of Canada
and “Qualifying Jurisdiction” means any one province or territory of Canada; |
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(oo) |
|
“Release” means a releasing, spilling, leaking, pumping, pouring, admitting,
emptying, discharging, injecting, escaping, leaching, disposing or dumping regulated by
any Environmental Law; |
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(pp) |
|
“Securities Commissions” means the applicable securities commission or
securities regulatory authority in each of the Qualifying Jurisdictions; |
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(qq) |
|
“Securities Laws” means, collectively, the applicable securities laws of each
of the Qualifying Jurisdictions and the respective regulations and rules made under
those securities laws together with all applicable policy statements, blanket orders
and rulings of the Securities Commissions and all discretionary orders or rulings, if
any, of the Securities Commissions made in connection with the Offering and the
securities legislation and policies of each other relevant jurisdiction; |
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(rr) |
|
“SEDAR” means the computer system for the transmission, receipt, acceptance,
review and dissemination of documents filed in electronic format known as the System
for Electronic Document Analysis and Retrieval established pursuant to National
Instrument 13-101, System for Electronic Document Analysis and Retrieval (SEDAR); |
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(ss) |
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“Shares” means the common shares of the Issuer; |
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(tt) |
|
“SNCF Subscription Agreement” means the Subscription Agreement dated April 14,
2008 between the Issuer and SNCF Participations SA; |
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(uu) |
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“Standard Listing Conditions” has the meaning ascribed thereto in Section 4.5; |
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(vv) |
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“subsidiary” means, with respect to any Person, any corporation, limited
liability company, partnership, association or other business entity of which (i) if a
corporation, a majority of the total voting power of shares of stock entitled |
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(without regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled, directly
or indirectly, by that Person or one or more of the other subsidiaries of that
Person or a combination thereof or (ii) if a limited liability company, partnership,
association or other business entity (other than a corporation), a majority of the
partnership or other similar ownership interest thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more subsidiaries of
that Person or a combination thereof and for this purpose, a Person or Persons owns
a majority ownership in such a business entity (other than a corporation) if such
Person or Persons will be allocated a majority of such business entity’s gains or
losses or will be or control any managing director or general partner of such
business entity (other than a corporation); |
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(ww) |
|
“Supplemental Material” means, collectively, any amendment to the Final
Prospectus and any amendment or supplemental prospectus (in the English language and,
where applicable, French language) that may be filed by or on behalf of the Issuer
under applicable Securities Laws relating to the distribution of the Debentures; |
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(xx) |
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“Tax” and “Taxes” means, with respect to any entity, all income taxes
(including any tax on or based upon net income, gross income, income as specially
defined, earnings, profits or selected items of income, earnings or profits) and all
capital taxes, gross receipts taxes, environmental taxes, sales taxes, use taxes, ad
valorem taxes, value added taxes, transfer taxes, franchise taxes, license taxes,
withholding taxes or other withholding obligations, payroll taxes, employment taxes,
Canada or Quebec Pension Plan premiums, excise taxes, social security premiums,
workers’ compensation premiums, unemployment insurance or compensation premiums, stamp
taxes, occupation taxes, premium taxes, property taxes, windfall profits taxes,
alternative or add-on minimum taxes, goods and services tax, harmonized sales tax,
customs duties or other taxes or any kind whatsoever, together with any interest and
any penalties or additional amounts imposed by any Taxing Authority (domestic or
foreign) on or against such entity or for which such entity is responsible, and any
interest, penalties, additional taxes, additions to tax or other amounts imposed with
respect to the foregoing. |
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(yy) |
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“Tax Act” means the Income Tax Act (Canada) and the regulations thereunder, as
amended; |
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(zz) |
|
“Tax Returns” means returns, reports and forms (including schedules thereto)
required to be filed with any agency of Canada or the United States or any Governmental
Entity responsible for the imposition or collection of Taxes. |
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(aaa) |
|
“Taxing Authority” means the United States Internal Revenue Service, Canada
Customs and Revenue Agency and/or any other Governmental Entity (including, without
limitation, any sales tax authority or agency). |
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(bbb) |
|
“Trust Company” means Computershare Investor Services Inc.; |
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(ccc) |
|
“Trust Indenture” means the trust indenture between the Issuer and
Computershare Trust Company of Canada to be entered into on the Closing Date; |
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(ddd) |
|
“TSX” means the Toronto Stock Exchange; |
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(eee) |
|
“Underlying Shares” means the Shares to be issued by the Issuer on the
conversion of the Debentures; |
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(fff) |
|
“Underwriters” has the meaning given to that term above; |
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(ggg) |
|
“United States” means the United States of America, its territories and
possessions, any state of the United States, and the District of Columbia; |
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(hhh) |
|
“U.S. Tax Code” means the Internal Revenue Code of 1986 (United States of
America) and the regulations thereunder. |
| 1.2 |
|
The division of this Agreement into Sections, and the headings appearing in this Agreement
are for convenience of reference only and will not affect the construction or interpretation
of this Agreement. |
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| 1.3 |
|
In this Agreement, unless the context otherwise requires: |
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(a) |
|
words importing the singular include the plural and vice versa; |
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(b) |
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words importing gender include all genders; |
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(c) |
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words importing persons include individuals, partnerships, limited
partnerships, joint ventures, syndicates, sole proprietorships, companies or
corporations with or without share capital, unincorporated associations, societies,
trusts, trustees, executors, administrators or other legal personal representatives,
governmental authorities, regulatory authorities, and self-regulating organizations,
bodies or entities however designated or constituted; |
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(d) |
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the word “or” is not exclusive; |
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(e) |
|
the word “including” is not limiting, whether or not non-limiting language
(such as “without limitation” or “but not limited to” or words of similar import) is
used with reference thereto; and |
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(f) |
|
the word “knowledge” when used in relation to any Person, refers to the actual
knowledge of the officers of that Person charged with responsibility for the particular
function, after reasonable inquiry by them of those parties whom they believe, in good
faith, to be the Persons responsible for the subject matter of the inquiry. |
| 1.4 |
|
If any action is required to be taken under this Agreement on a day that is not a business
day, such action will be required to be taken on the next succeeding day which is a business
day. |
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| 1.5 |
|
Whenever reference is made in this Agreement to a calculation to be made or financial
statements or documents to be prepared in accordance with “generally accepted accounting
principles”, such reference will be deemed to be to the generally accepted accounting
principles from time to time approved by the relevant body in the applicable jurisdiction,
applicable as at the date on which such calculation is made or required to be made or such
financial statements or |
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documents are prepared or required to be prepared in accordance with generally
accepted accounting principles, with such variations therefrom as are specified or
required by the Securities Laws. |
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| 1.6 |
|
Unless otherwise specified herein, all dollar amounts referred to in this Agreement are
expressed in lawful money of Canada. |
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| 1.7 |
|
Unless otherwise specified herein, a reference in this Agreement to a statute includes all
regulations or rules made thereunder, all amendments to the statute or the regulations or
rules made thereunder, any statutes, regulations or rules that supplement or supersede such
statute, regulation or rule and, with respect to the Securities Laws, includes any orders made
thereunder and the applicable policy statements, instruments and notices issued or otherwise
promulgated by the Securities Commissions or the Canadian Securities Administrators. |
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| 2. |
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Authorization of the Debentures |
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| 2.1 |
|
The Debentures to be issued and sold under this Agreement by the Issuer will, upon receipt of
payment therefor by the Issuer, be duly and validly created, authorized and issued by the
Issuer, and the Underlying Shares will be duly and validly created, authorized and issued as
fully-paid and non-assessable common shares of the Issuer on the due and valid exercise of the
conversion privilege by a holder of the Debentures. Such Debentures and Underlying Shares will
have attributes corresponding in all material respects to the descriptions thereof in this
Agreement and the Preliminary Prospectus and the Final Prospectus. |
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| 3. |
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Qualification |
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| 3.1 |
|
The Issuer hereby covenants and agrees that: |
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(a) |
|
the Issuer shall, as soon as possible, and in any event, not later than 5:00
p.m. (Toronto time) on May 24, 2011 (or such other date as may be agreed to in writing
by the Underwriters and the Issuer) have: |
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(i) |
|
prepared and filed the Preliminary Prospectus and all necessary
related documents in order to qualify the Debentures for distribution in each
of the Qualifying Jurisdictions in accordance with Multilateral Instrument
11-102 — Passport System and National Policy 11-202 — Process for Prospectus
Reviews in Multiple Jurisdictions (the “Passport System”) with the OSC as
principal regulator under the Passport System and with the applicable
securities commission or regulatory authority in each of the other Qualifying
Jurisdictions (the “Securities Commissions”); and |
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(ii) |
|
obtained a receipt for the Preliminary Prospectus issued in
accordance with the Passport System; |
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(b) |
|
the Issuer shall, forthwith after any comments with respect to the Preliminary
Prospectus have been received from the Securities Commissions, use its reasonable best
efforts to, not later than 5:00 p.m. (Toronto time) on May 31, 2011 (or such other date
as may be agreed to in writing by the Underwriters and the Issuer) prepare and file the
Final Prospectus and all necessary related |
- 10 -
| |
|
|
documents in order to qualify the Debentures
for distribution in each of the Qualifying Jurisdictions and obtain a receipt for the Final Prospectus issued in
accordance with the Passport System (the “Final Passport System Decision Document”),
and shall have taken all other steps and proceedings and fulfilled and complied with
all legal requirements that may be necessary in order to qualify the Debentures for
distribution in each of the Qualifying Jurisdictions by the Underwriters and other
Persons who are registered in a category permitting them to distribute the
Debentures under the Securities Laws; and |
| |
| |
(c) |
|
until the distribution of the Debentures is completed, the Issuer shall
promptly take or cause to be taken all such additional steps and proceedings and fulfil
and comply with all requirements from time to time required under the Securities Laws
to continue to qualify the distribution of the Debentures or, in the event that the
Debentures have, for any reason, ceased to so qualify, to so qualify again the
Debentures. |
| 4. |
|
Delivery of Preliminary and Final Prospectuses and Other Documents |
| |
| 4.1 |
|
The Issuer will deliver to each of the Underwriters and the Underwriters’ counsel, at or
prior to the time the Preliminary Prospectus is presented to the Underwriters for signing, a
copy of the Preliminary Prospectus in the English language and a copy of the Preliminary
Prospectus in the French language, each signed by the Issuer in the manner required by the
Securities Laws of each of the Qualifying Jurisdictions. |
| |
| 4.2 |
|
The Issuer will deliver to each of the Underwriters and the Underwriters’ counsel,
contemporaneously with or promptly after the filing of the Preliminary Prospectus in
accordance with the Passport System a copy of any other document required to be filed by the
Issuer with or prior to filing the Preliminary Prospectus under the Passport System or the
Securities Laws and reasonably requested by the Underwriters and the Underwriters’ counsel. |
| |
| 4.3 |
|
The Issuer will deliver to each of the Underwriters and the Underwriters’ counsel, at or
prior to the time the Final Prospectus is presented to the Underwriters for signing, a copy of
the Final Prospectus in the English language and a copy of the Final Prospectus in the French
language, each signed by the Issuer in the manner required by the Securities Laws of each of
the Qualifying Jurisdictions. |
| |
| 4.4 |
|
The Issuer will deliver to each of the Underwriters and the Underwriters’ counsel,
contemporaneously with or promptly after the filing of the Final Prospectus in accordance with
the Passport System, a copy of any other document required to be filed by the Issuer with or
prior to filing the Final Prospectus under the Passport System or the Securities Laws and
reasonably requested by the Underwriters and the Underwriters’ counsel. |
| |
| 4.5 |
|
The Issuer will deliver to the Underwriters and the Underwriters’ counsel, prior to the
filing of the Final Prospectus with the Securities Commissions, evidence reasonably
satisfactory to the Underwriters of the approval of the listing and posting for trading on the
TSX of the Debentures and the Underlying Shares, subject only to satisfaction by the Issuer of
customary post-closing conditions imposed by the TSX in similar circumstances (the “Standard
Listing Conditions”). |
- 11 -
| 4.6 |
|
The Issuer will promptly and, in any event within all applicable time limitation periods,
prepare and file with the Securities Commissions any Supplemental Material required to be
filed under the Securities Laws. The Issuer will allow the Underwriters and their counsel to
participate fully in the preparation of any Supplemental Material and to conduct all due
diligence investigations which the Underwriters may reasonably require in order to fulfill
their obligations as underwriters and in order to enable the Underwriters to execute
responsibly any certificate required to be executed by them in any Supplemental Material. Such
Supplemental Material will be in form and substance reasonably satisfactory to the
Underwriters and prior to the filing of such Supplemental Material with any Securities
Commission, the Issuer will deliver to the Underwriters: |
| |
(a) |
|
a copy of such Supplemental Material signed on behalf of the Issuer in the
manner required by the Securities Laws; |
| |
| |
(b) |
|
a copy of any other document required to be filed by the Issuer with or prior
to filing of the Supplemental Material under the Passport System or the Securities
Laws; and |
| |
| |
(c) |
|
such reports, comfort letters or opinions as may reasonably be requested by the
Underwriters. |
| 4.7 |
|
Each delivery of the Preliminary Prospectus, the Final Prospectus or any Supplementary
Material will have constituted or constitute, as the case may be, consent by the Issuer to the
use by the Underwriters and the Selling Firms of those documents in connection with the
distribution of the Debentures for sale in all of the Qualifying Jurisdictions, subject to the
Securities Laws. |
| |
| 4.8 |
|
Each delivery of the Offering Documents to the Underwriters by the Issuer in accordance with
Sections 4.1 and 4.3 will constitute the representation and warranty of the Issuer to the
Underwriters that (except for information and statements relating solely to the Underwriters
and furnished by them in writing for inclusion in such document) at the respective times of
delivery: |
| |
(a) |
|
the information and statements contained in each of the Offering Documents: |
| |
(i) |
|
are true and correct in all material respects and contain no
misrepresentation; and |
| |
| |
(ii) |
|
constitute full, true and plain disclosure of all material
facts relating to the Issuer and the Debentures as required by Securities Laws; |
| |
(b) |
|
no material fact has been omitted from any of those documents which is required
to be stated in the document or is necessary to make the statements therein not
misleading in light of the circumstances in which they were made; and |
| |
| |
(c) |
|
each of the Offering Documents and any related Supplementary Material complies
with applicable Securities Laws, other than as to non-material matters. |
- 12 -
| 5. |
|
Commercial Copies |
| |
| 5.1 |
|
The Issuer will, as soon as practicable but in any event not later than 12:00 p.m. (Toronto
time) on the first business day following the date on which the receipt for the Preliminary
Prospectus under the Passport System has been obtained for Toronto deliveries and on the
second business day following the date on which the receipt for the Preliminary Prospectus
under the Passport System has been obtained for deliveries otherwise, cause to be delivered to
the Underwriters without charge, commercial copies of the Preliminary Prospectus in the
English language and French language in such numbers and to such Canadian cities as the
Underwriters may reasonably request by instructions given by the Underwriters to the printer
of the Preliminary Prospectus. The commercial copies of the Preliminary Prospectus will be
identical in content to the electronically transmitted version thereof filed with the
Securities Commissions pursuant to SEDAR. |
| |
| 5.2 |
|
The Issuer will, as soon as practicable but in any event not later than 12:00 p.m. (Toronto
time) on the first business day following the filing of the Final Prospectus for Toronto
deliveries and on the second business day following the filing of the Final Prospectus for
deliveries otherwise, and within two business days after the filing of any Supplemental
Material, cause to be delivered to the Underwriters without charge, commercial copies of the
Final Prospectus in the English language and French language and any Supplemental Material, as
the case may be, in such numbers and to such Canadian cities as the Underwriters may
reasonably request by instructions given by the Underwriters to the printer of the Final
Prospectus or any Supplemental Material, as the case may be. The commercial copies of the
Final Prospectus and any Supplemental Material will be identical in content to the
electronically transmitted versions thereof filed with the Securities Commissions pursuant to
SEDAR. |
| |
| 6. |
|
Due Diligence |
The Issuer will at all times until distribution of the Debentures is completed allow the
Underwriters and their advisors and representatives to conduct all reasonable due diligence
investigations and examinations which the Underwriters may reasonably require in order to fulfill
their obligations as underwriters, in order to avail themselves of a defence to any claim for
misrepresentation in the Offering Documents and in order to enable the Underwriters to responsibly
execute any certificate in the Offering Documents required to be executed by the Underwriters.
| 7. |
|
Auditors’ Comfort Letter |
| 7.1 |
|
The Issuer will deliver to each of the Underwriters and the Underwriters’ counsel, at the
time the Underwriters sign the Final Prospectus, a comfort letter signed by the Auditors and
dated the date of the Final Prospectus, in form and substance satisfactory to the
Underwriters, acting reasonably, addressed to the Underwriters and the board of directors of
the Issuer with respect to the statistical and financial information appearing in the Final
Prospectus, or incorporated by reference therein, which letter will be based on a review by
the Auditors within a cut-off date of not more than two business days prior to the date of the
letter, and which letter will be in addition to the Auditors’ reports and |
- 13 -
| |
|
|
opinions contained in the Final Prospectus and the Auditors’ consent addressed to
the Securities Commissions. |
| 7.2 |
|
If any statistical, financial or accounting information is contained in any Supplemental
Material which is required to be executed by the Underwriters, the Issuer will deliver or
cause to be delivered to the Underwriters at the time of execution thereof by the Underwriters
a letter signed by the Auditors and dated the date of delivery thereof, in form and substance
satisfactory to the Underwriters, acting reasonably, with respect to the statistical,
financial and accounting information contained in the Supplemental Material and with respect
to any material changes thereto, which letter will be based on a review by the Auditors within
a cut-off date of not more than two business days of the date of such letter and which letter
will be in addition to any auditors’ report contained in the Supplemental Material and the
auditors’ consent addressed to the Securities Commissions. |
| 8.1 |
|
The Issuer will deliver to the Underwriters, prior to the time that the Preliminary
Prospectus and Final Prospectus in the French language is filed with the Securities
Commissions and printed, opinions of counsel in the Province of Quebec dated the date of the
Preliminary Prospectus or Final Prospectus, as applicable, in form and substance satisfactory
to the Underwriters, acting reasonably, addressed to the Underwriters, Underwriters’ counsel,
the boards of directors of the Issuer and to the Issuer’s counsel to the effect that the
Preliminary Prospectus (but excluding, for greater certainty, the documents incorporated by
reference therein) or Final Prospectus, as applicable, in the French language (other than the
Financial Statements and the Financial Information) is in all material respects a complete and
proper translation of the Preliminary Prospectus or Final Prospectus, as applicable, in the
English language and is not susceptible to any materially different interpretation with
respect to any material matter contained therein. |
| 8.2 |
|
The Issuer will also deliver to the Underwriters contemporaneously with the opinions referred
to in Section 8.1, opinions of the Auditors, dated the date of the Preliminary Prospectus (but
excluding, for greater certainty, the documents incorporated by reference therein) or Final
Prospectus, as applicable, in form and substance satisfactory to the Underwriters, acting
reasonably, addressed to the Underwriters, Underwriters’ counsel, the boards of directors of
the Issuer and to the Issuer’s counsel to the effect that the Financial Information in the
French language and contained in the Preliminary Prospectus or Final Prospectus, as
applicable, is in all material respects a complete and proper translation of the English
language version thereof. |
| 9.1 |
|
The Issuer will file or cause to be filed with the TSX all necessary documents and will take
or cause to be taken all necessary steps to ensure that the Debentures and the Underlying
Shares have been approved for listing on the TSX, prior to the filing of the Final Prospectus
with the Securities Commissions, subject only to satisfaction by the Issuer of the Standard
Listing Conditions. |
- 14 -
| 9.2 |
|
The Issuer will make all necessary filings, obtain all necessary regulatory consents and
approvals (if any) and the Issuer will pay all filing fees required to be paid in connection
with the Offering. |
| 10. |
|
Distribution and Certain Obligations of Underwriters |
| 10.1 |
|
During the course of the distribution of the Debentures to the public by or through the
Underwriters, the Underwriters will, directly and through other investment dealers or brokers
(other than the Underwriters) (each, a “Selling Firm”) upon the terms and conditions set out
in the Final Prospectus and this Agreement, offer and sell the Debentures to the public in
those jurisdictions where they may be lawfully offered for sale or sold. The Underwriters will
comply with, and will require any Selling Firm to agree to comply with, applicable Securities
Laws in connection with the offer to sell or distribution of the Debentures. Except in the
Qualifying Jurisdictions, the Underwriters will not, directly or indirectly, solicit offers to
purchase or sell the Debentures or deliver the Final Prospectus or any Supplemental Material
so as to require registration of those Debentures or filing of a prospectus with respect to
those Debentures under the laws of any jurisdiction including, without limitation, the United
States. |
| 10.2 |
|
The Debentures will be offered to the public at par; provided however, after the Underwriters
have made a reasonable effort to sell all of the Debentures at par, the Underwriters may
decrease the price at which the Debentures are offered for sale and such price may be further
changed from time to time to an amount not greater than par, and the compensation realized by
the Underwriters will be decreased by the amount that the aggregate price paid by purchasers
for the Debentures is less than the price paid by the Underwriters to the Issuer. For greater
certainty, in no event shall the price per Debenture payable by the Underwriters to the Issuer
under this Agreement be less than US$1,000. |
| 10.3 |
|
The Underwriters will use reasonable commercial efforts to complete and to cause the Selling
Firms to complete the distribution of the Debentures as soon as possible after the Closing
Time. |
| 10.4 |
|
The Underwriters will notify the Issuer when, in the Underwriters’ opinion, the Underwriters
and the Selling Firms have ceased distribution of the Debentures and, promptly after
completion of the distribution but, in any event, within the time period required under
Securities Laws, will provide the Issuer, in writing, with a breakdown of the number of
Debentures distributed in each of the Qualifying Jurisdictions where that breakdown is
required by the Securities Commission of that jurisdiction for the purpose of calculating fees
payable to that Securities Commission. |
| 10.5 |
|
For the purposes of this Section 10, the Underwriters will be entitled to assume that the
Debentures are qualified for distribution in any Qualifying Jurisdiction where the Final
Passport System Decision Document has been obtained pursuant to the Passport System following
the filing of the Final Prospectus unless otherwise notified in writing. |
| 10.6 |
|
Notwithstanding the foregoing provisions of this Section 10, no Underwriter will be liable to
the Issuer under this Agreement with respect to a default by any of the other Underwriters or
Selling Firms, as the case may be. |
- 15 -
| 11. |
|
Representations and Warranties of the Issuer |
| 11.1 |
|
The Issuer represents and warrants and, where specified, covenants to the Underwriters that: |
| |
(a) |
|
the Issuer is a corporation incorporated and organized and validly subsisting
under the laws of its jurisdiction of incorporation, and is up to date with respect to
all of its corporate filings under those laws; |
| |
(b) |
|
the Issuer has all necessary corporate power, authority and capacity to own or
lease its property and assets and to carry on its business as presently conducted and
as proposed to be conducted as will be contemplated in the Final Prospectus; |
| |
(c) |
|
the Issuer’s directors are duly appointed; |
| |
(d) |
|
the Issuer is a reporting issuer, or the equivalent thereof, under the
Securities Laws of all provinces and territories of Canada and is not currently in
default in any material respect of any requirement of the Securities Laws of any of the
Qualifying Jurisdictions or included on a list of defaulting reporting issuers
maintained by any of the securities commissions or similar regulatory authorities in
any of the Qualifying Jurisdictions. In particular, without limiting the generality of
the foregoing, the Issuer is in compliance at the date hereof with its obligations to
make timely disclosure of all material changes relating to it and no such disclosure
has been made on a confidential basis and there is no material change relating to the
Issuer that has occurred and with respect to which the requisite material change report
has not been filed other than a material change report in respect of the Offering. None
of the Issuer’s Public Disclosure Documents contain a misrepresentation at the date of
filing thereof that has not been corrected since filing; |
| |
(e) |
|
the Issuer covenants to use its best efforts to maintain its status as a
reporting issuer in the Qualifying Jurisdictions and to maintain such status, not in
default, from the date hereof up to and including the Closing Date; |
| |
(f) |
|
except as disclosed in the Preliminary Prospectus or the Final Prospectus and
except as provided in the Undertaking Regarding Registration Rights dated April 18,
2008 in favour of SNCF Participations SA, no person has any right to demand filing of a
prospectus or registration statement or similar document by the Issuer in any
jurisdiction or registration of any security of the Issuer in any jurisdiction, and no
person will have any such right immediately following the Closing; |
| |
(g) |
|
as of the Closing Time the authorized capital of the Issuer consists of an
unlimited number of Shares and preferred shares; |
| |
(h) |
|
as of the Closing Time, except for the Debentures, the 6.75% convertible
subordinated unsecured debentures due June 30, 2015, and the 7.5% convertible
subordinated unsecured debentures due October 31, 2014, no securities exchangeable or
convertible into securities of the Issuer are issued and outstanding; |
- 16 -
| |
(i) |
|
the attributes of the Debentures and the Underlying Shares conform in all
material respects with their descriptions in the Preliminary Prospectus and the Final
Prospectus; |
| |
(j) |
|
upon issue of the Debentures by the Issuer in accordance with this Agreement
the Debentures will be duly and validly created, authorized and issued, and the
Underlying Shares will be duly and validly created, authorized and issued as fully-paid
and non-assessable common shares of the Issuer on the exercise of the conversion
privilege by a holder of Debentures; |
| |
(k) |
|
this Agreement, the Trust Indenture and the Debentures will be, at the Closing
Time, duly executed and delivered by or on behalf of the Issuer and constitute or will
constitute, when so executed and delivered, legal, valid and binding obligations of the
Issuer, enforceable in accordance with their respective terms, provided that
enforceability may be limited by bankruptcy, insolvency and other similar laws
affecting creditors’ rights generally, that specific performance, injunctive relief and
other equitable remedies may only be granted in the discretion of a court of competent
jurisdiction and that rights of indemnity and/or contribution may be limited by
applicable law; |
| |
(l) |
|
the execution and delivery by the Issuer of this Agreement, the Trust Indenture
and the Debentures, and the performance by the Issuer of its obligations thereunder,
and the consummation by the Issuer of the Offering, and the issuance, sale and delivery
of the Debentures, have been or, as the case may be, will be at the Closing Time duly
authorized; |
| |
(m) |
|
except for consents, approvals, authorizations or orders, or filings,
registrations or recordings with any Governmental Entity that have been, or will as of
the Closing Time be, obtained, no consent, approval, authorization or order of, and no
filing, registration or recording with, any Governmental Entity is required in
connection with the execution and delivery by the Issuer of this Agreement, the Trust
Indenture and the Debentures, or the performance by the Issuer of its obligations
thereunder, and the consummation by the Issuer of the Offering, including the creation,
issue and sale of the Debentures (and Underlying Shares); |
| |
(n) |
|
neither the execution and the delivery of this Agreement, the Trust Indenture,
the Debentures and any document executed by the Issuer in connection therewith, nor the
consummation of the Offering and thereby, will (i) violate any constitution, statute,
regulation, rule, injunction, judgment, order, decree, ruling, charge or other
restriction of any Governmental Entity to which either is subject, or any provision of
the Issuer’s organizational documents, (ii) conflict with, result in a breach of,
constitute a default under, result in the acceleration of, create in any party the
right to accelerate, terminate, modify or cancel, or require any notice, except as
required pursuant to the SNCF Subscription Agreement, under any agreement, contract,
lease, license, instrument or other arrangement to which the Issuer is a party or by
which either is bound or to which any of their respective assets is subject, which in
the case of item (ii) would have a Material Adverse Effect; |
| |
(o) |
|
the Issuer is not a non-resident of Canada within the meaning of the Income Tax
Act (Canada); |
- 17 -
| |
(p) |
|
each of the Preliminary Prospectus and the Final Prospectus, in both the French
and English languages, and the execution and filing of each of the Preliminary
Prospectus and the Final Prospectus, in both the French and English languages, with the
Securities Commissions have been duly approved and authorized by all necessary action
by the Issuer, and each of the Preliminary Prospectus and the Final Prospectus, in both
the French and English languages, have been duly executed by and on behalf of the
Issuer; |
| |
(q) |
|
except as disclosed in the Preliminary Prospectus or the Final Prospectus,
since March 31, 2011, the Business has been carried on in the Ordinary Course, and
neither the Issuer nor any of its subsidiaries has: |
| |
(i) |
|
incurred or assumed or paid or discharged any material
obligation or liability (direct or contingent), except for current obligations
and liabilities incurred in the Ordinary Course; |
| |
(ii) |
|
loaned or agreed to lend money to any Person including a
shareholder or partner, except loans to an affiliate; |
| |
(iii) |
|
sold or otherwise disposed of any fixed or capital assets
(other than dispositions having a fair market value, in the case of any single
sale or disposition, less than US$1,000,000); |
| |
(iv) |
|
made, or made any commitments to make, any capital expenditures
(other than capital expenditures, in the case of any single capital
expenditure, less than US$1,000,000) except in the Ordinary Course and except
for the purchase of new buses by the Issuer; |
| |
(v) |
|
suffered an extraordinary loss, or waived any rights of
material value, or entered into any material commitment or transaction not in
the Ordinary Course; |
| |
(vi) |
|
made any change in its accounting policies; or |
| |
(vii) |
|
authorized or agreed or otherwise become committed to do any
of the foregoing; |
| |
(r) |
|
except as disclosed in the Preliminary Prospectus or the Final Prospectus,
subsequent to March 31, 2011 there has not been any Material Adverse Change in respect
of the Issuer; |
| |
(s) |
|
as at the Closing Time, the TSX will have conditionally approved the listing of
the Debentures and the Underlying Shares, subject to satisfaction by the Issuer of the
Standard Listing Conditions; |
| |
(t) |
|
as at the Closing Time, the form and terms of the certificates for the
Debentures will be approved and adopted by the directors of the Issuer and will comply
with the terms and conditions of the Trust Indenture and the requirements of the TSX; |
| |
(u) |
|
the Issuer and each of its subsidiaries has paid or will pay or has made or
will make arrangements for the payment of all Governmental Charges in respect of its |
- 18 -
| |
|
|
Business, which are capable of forming or resulting in a Lien, other than a
Permitted Lien, on the assets of its business. There are no proceedings either in
progress, pending or, to the Actual Knowledge of the Issuer, threatened in
connection with any material Governmental Charges in respect of the Business. The
Issuer and each of its subsidiaries has withheld or collected and remitted all
material amounts required to be withheld or collected and remitted by it in respect
of any Governmental Charges; |
| |
(v) |
|
except as disclosed in the Offering Documents or as disclosed by the Issuer to
the Underwriters or its counsel by email correspondence on or before the date hereof
and for which Taxes and any associated penalties or interest have been accrued in the
Issuer’s most recently publicly filed financial statements: |
| |
(i) |
|
the Issuer and each of its subsidiaries has filed, or caused to
be filed, in a timely manner all income and other material Tax Returns that are
required to have been filed by them in any jurisdiction prior to the date
hereof (all of which Tax Returns were correct and complete in all material
respects), and no request for any extension of time within which to file any
Tax Returns of, or with respect to them has been made, which Tax Returns have
not since been timely filed; |
| |
(ii) |
|
the Issuer and each of its subsidiaries has paid, or caused to
be paid, all material Taxes and assessments payable by it, whether or not a Tax
Return is required to be filed in respect thereof, to the extent such Taxes and
assessments have become due and payable and before they have become delinquent,
except for any Taxes and assessments the amount, applicability or validity of
which is currently being contested in good faith by appropriate proceedings,
and the Issuer and each of its subsidiaries has established reasonable reserves
in accordance with generally accepted accounting principles in respect of all
estimated Taxes due (a) with respect to periods for which Tax Returns are not
due at the Closing Time and (b) Taxes and assessments, the amount,
applicability or validity of which is currently being contested; |
| |
(iii) |
|
neither the Issuer nor any of its subsidiaries is a party to
any Tax allocation or sharing agreement of any kind, whether written or verbal,
which could reasonably be expected to have a Material Adverse Effect; |
| |
(iv) |
|
no material deficiencies exist or have been asserted with
respect to Taxes of the Issuer or any of its subsidiaries, no material
unresolved controversies pending, or to the Issuer’s Actual Knowledge,
threatened regarding Taxes exist with respect to that the Issuer or any of its
subsidiaries and no Tax audits or examinations are pending or, to the Issuer’s
Actual Knowledge, threatened in respect of fiscal years ending on or before the
Closing Date; |
| |
(v) |
|
no waiver and consent in respect of limitation periods or
otherwise with respect to any fiscal year has been requested by a Governmental
Entity or filed by the Issuer or any of its subsidiaries; and, |
| |
(vi) |
|
the Issuer and each of its subsidiaries has duly collected or
withheld all material amounts on account of any Taxes required by Laws to be |
- 19 -
| |
|
|
collected or withheld by it, has duly and timely remitted to the appropriate
Governmental Entity any such amounts required by Laws to be remitted to it
prior to the date hereof and amounts so collected or withheld and not yet
remitted, if any, will be retained by such party and remitted to the proper
Governmental Entity when due. Neither the Issuer nor any of its subsidiaries
is a party to any agreement requiring it to make any “excess parachute
payments” within the meaning of U.S. Tax Code Section 280G in connection
with the Offering. |
| |
(w) |
|
in connection with employee matters: |
| |
(i) |
|
neither the Issuer nor any of its subsidiaries is a party to
any employment agreements or other employment related arrangements which
require that a payment or other compensation or benefits be paid or conferred
upon any employee, officer or manager of the Issuer or any of its subsidiaries
in connection with: |
| |
(1) |
|
the execution and delivery by the Issuer
or any of its subsidiaries to the extent it is a party or signatory
thereto, of this Agreement and any related agreements contemplated
in the Final Prospectus; or |
| |
| |
(2) |
|
the performance by the Issuer or any of
its subsidiaries to the extent it is a party or signatory thereto,
of the transaction contemplated herein and therein; |
| |
(ii) |
|
there are no outstanding material loans or advances made by the
Issuer or any of its subsidiaries to any current or former employee, officer or
manager of the Issuer or any of its subsidiaries other than expense
reimbursements and advances in respect thereof in the Ordinary Course and other
than loans or advances that will be repaid on or before Closing; |
| |
(iii) |
|
there is no strike or lock-out occurring or, to the Actual
Knowledge of the Issuer, threatened which would reasonably be expected to have
a Material Adverse Effect. To the Actual Knowledge of the Issuer, there are no
current material union organizing activities involving employees of the Issuer
or any of its subsidiaries; and |
| |
(iv) |
|
neither the Issuer nor any of its subsidiaries has any pending
arbitration cases, lawsuits or grievances before any Governmental Entity
outstanding including, employment standards, unfair labour practices,
employment discrimination, occupational health and safety, employment equity,
pay equity, workers compensation, human rights and labour relations which would
reasonably be expected to have a Material Adverse Effect; |
| |
(x) |
|
in connection with labour matters, except as set out in the Preliminary
Prospectus or the Final Prospectus or in Schedule 11.1(x), neither the Issuer nor any
of its subsidiaries is a party to or bound by any: |
| |
(i) |
|
oral or written contract or commitment for the employment or
retainer of any individual, including, for greater certainty, any contract or
commitment with directors or named executive officers (as defined under |
- 20 -
| |
|
|
Securities Laws), other than for contracts of indefinite hire terminable by
the Issuer or its subsidiaries without cause on reasonable notice; |
| |
(ii) |
|
oral or written contract, policy or commitment providing for
severance, termination or similar payments to a named executive officer (as
defined under Securities Laws), including on a change of control of the Issuer
and the applicable subsidiary, as the case may be; or |
| |
(iii) |
|
material contract with or commitment to any trade union,
council of trade unions, employee bargaining agent or affiliated bargaining
agent (collectively called “labour representatives”) and neither the Issuer nor
any of its subsidiaries has conducted negotiations with respect to any such
future contracts or commitments; no labour representatives hold bargaining
rights with respect to any employees of that entity; |
| |
(y) |
|
in connection with environmental matters, except for such non-compliance as
would not have a Material Adverse Effect: |
| |
(i) |
|
the Issuer and its subsidiaries have all environmental, health
and safety permits, licenses, variances, approvals and authorizations required
under Environmental Law (collectively, the “Environmental Permits”) necessary
for the conduct of the Business in compliance with all applicable Environmental
Laws and all such Environmental Permits are valid and in full force and effect;
and |
| |
(ii) |
|
the Issuer and its subsidiaries are in compliance with all
applicable Environmental Laws and all Environmental Permits. |
| |
(z) |
|
the Issuer and its subsidiaries have provided the Underwriters with copies of
all material Phase I and Phase II environmental reports in their possession that relate
to their Real Property. None of the matters outlined in such reports could result in
any Environmental Claim to the Issuer or its subsidiaries, except for those that are
not, individually or in the aggregate, reasonably likely to have a Material Adverse
Effect. To the Actual Knowledge of the Issuer, there are no other facts or
circumstances that could result in any such Environmental Claim to the Issuer or its
subsidiaries, except for those that are not, individually or in the aggregate,
reasonably likely to have a Material Adverse Effect; |
| |
(aa) |
|
in connection with the Business or its operation, neither the Issuer nor any of
its subsidiaries: |
| |
(i) |
|
has received any request for information or written notice (1)
alleging that it or any of its subsidiaries may be in violation of any
Environmental Law, or (2) commencing or threatening to commence any proceeding
in respect of any Environmental Claim relating to alleged non-compliance with
any Environmental Law, or alleging that it or any of its subsidiaries is or may
be responsible for any response, clean-up, or corrective action, including any
remedial investigation/feasibility study, under any Environmental Law; |
| |
(ii) |
|
has received any written notice that it or any of its
subsidiaries is the subject of an investigation of a Governmental Entity to
evaluate whether |
- 21 -
| |
|
|
any investigation, remedial action or other response is needed to respond to
a Release or threatened Release into the environment of any Hazardous
Substance; |
| |
(iii) |
|
has filed any written notice under or relating to any
Environmental Law indicating or reporting any past or present Release (other
than permitted Releases) into the environment of any Hazardous Substance or
treatment, storage or disposal of, any Hazardous Substance except in compliance
with the applicable Environmental Law; |
| |
(iv) |
|
to its Actual Knowledge, has an Environmental Liability in
connection with (1) any actual spillage, disposal or release into the
environment of, or otherwise with respect to, any Hazardous Substance or (2)
any unsafe or unhealthful condition; |
| |
(v) |
|
has any Hazardous Substances on, in or under any property or
facility, owned, operated or controlled by the Issuer or its subsidiaries in
connection with the Business or comprising part of the Issuer’s or its
subsidiaries’ assets (except Hazardous Substances used in the Ordinary Course
of the Business and which, to its Actual Knowledge, have been used, stored,
handled, treated and disposed of in all material respects in accordance with
all applicable Environmental Laws) that, under applicable Environmental Laws
(1) impose an Environmental Liability on the Issuer or its subsidiaries for
removal, remediation, or other clean-up or damage to natural resources, in an
amount equal to or greater than $100,000; or (2) which would reasonably be
expected to have a Material Adverse Effect; and |
| |
(vi) |
|
none of the properties owned, leased or operated by the Issuer
and its subsidiaries or any predecessor thereof are now, or were in the past,
listed or proposed for listing on the National Priorities List of Superfund
Sites or any analogous federal, state, or local list; |
| |
(bb) |
|
the Issuer and its subsidiaries have good title to or a valid leasehold
interest in all of their respective material personal properties and assets, free and
clear of all Liens, except for Permitted Liens. All of the physical assets of the
Issuer and each of its subsidiaries required to carry on the Business are in good
operating condition and in a state of reasonably good maintenance and repair having
regard to the use to which the assets are put and the age thereof; |
| |
(cc) |
|
no default (or right of termination which is currently exercisable) exists
under any of the Material Contracts on the part of the Issuer or any of its
subsidiaries or, to the Actual Knowledge of the Issuer, on the part of any other party
to such Material Contracts which could reasonably be expected to have a Material
Adverse Effect; |
| |
(dd) |
|
there is no Litigation pending or, to the Actual Knowledge of the Issuer,
threatened against the Issuer or any of its subsidiaries or any of their respective
properties or rights or any assets which would materially and adversely affect the
consummation of the Offering or which could reasonably be expected to have a Material
Adverse Effect; |
- 22 -
| |
(ee) |
|
in connection with real property: |
| |
(i) |
|
the Issuer and its subsidiaries have not received written
notice of either a violation of any applicable ordinance or other law, order,
regulation or requirement, or any condemnation, lien, assessment or the like,
relating to any part of the real property owned by the Issuer or any of its
subsidiaries (“Real Property”) or the operation thereof which violation,
condemnation, lien, assessment or the like would reasonably be expected to have
a Material Adverse Effect and, to the Actual Knowledge of the Issuer, there is
not presently contemplated or proposed any condemnation or similar action or
zoning action or proceeding with respect to any Real Property or the operation
thereof. The Issuer and its subsidiaries have good and marketable title to the
Real Property free and clear of all Liens other than Permitted Liens; and |
| |
(ii) |
|
to the Actual Knowledge of the Issuer, no Person has any option
or right of first refusal to purchase, lease or rent any Real Property; |
| |
(ff) |
|
in connection with Employee Benefit Plans: Each Benefit Plan which is intended
to be qualified under Section 401(a) of the U.S. Tax Code has received a favourable
determination letter from the Internal Revenue Service that it is so qualified, and
nothing has occurred since the date of such letter than could reasonably be expected to
affect the qualified status of such Benefit Plan; |
| |
(i) |
|
each Benefit Plan has been operated in all material respects in
accordance with its terms and the requirements of applicable Laws; |
| |
(ii) |
|
the Issuer and its subsidiaries have not incurred any direct or
indirect liability under, arising out of or by operation of Title IV of ERISA
in connection with the termination of, or withdrawal from, any of the Benefit
Plans or other retirement plan or arrangement (including, without limitation,
any “employee pension benefit plan” as defined in Section 3(2) of ERISA that
the Issuer or any of its subsidiaries, or any other entity that together with
the Benefit Plans is treated as a single employer under Section 414 of the U.S.
Tax Code, maintains or ever has maintained or to which any of them contributes,
ever has contributed, or ever has been required to contribute), and, to the
Actual Knowledge of the Issuer, no fact or event exists that could reasonably
be expected to give rise to any such liability. The aggregate accumulated
benefit obligations of each Benefit Plan, as of the Closing Date, do not exceed
the fair market value of the assets of such plan; and |
| |
(iii) |
|
the Issuer and its subsidiaries do not have any material
Benefit Plans in Canada or any material Benefit Plans that are subject to
Canadian laws; |
| |
(gg) |
|
except as disclosed in the Preliminary Prospectus or the Final Prospectus, the
Issuer does not own and has not entered into any agreement to acquire, directly or
indirectly, any securities, or other equity or proprietary interest in, any Person and
the Issuer has not entered into any agreement to acquire or lease any other material
businesses, assets or investments other than in the Ordinary Course; |
- 23 -
| |
(hh) |
|
except for the Debentures, the 6.75% convertible subordinated unsecured
debentures due June 30, 2015, the 7.5% convertible subordinated unsecured debentures
due October 31, 2014, any stock option plans as approved by Shareholders from time to
time, employee stock purchase plans, incentive stock grants (including, for greater
certainty, pursuant to the Issuer’s or its subsidiary’s equity incentive plan) or
pursuant to the rights previously granted to the holders of securities of the Issuer as
set out in this Agreement, or as disclosed in the Preliminary Prospectus or the Final
Prospectus or pursuant to the SNCF Subscription Agreement, no Person has any agreement,
option, right or privilege (whether present or future, contingent or absolute,
pre-emptive or contractual) or any right capable of becoming an agreement, option,
right or privilege, for the issue of any unissued Shares or any other security
convertible into or exchangeable for any such Shares of the Issuer (including
Debentures) or to require the Issuer to purchase, redeem or otherwise acquire any of
the issued and outstanding Shares of the Issuer; |
| |
(ii) |
|
no order, ruling or determination ceasing or suspending trading in the
securities of the Issuer, prohibiting the sale of such securities or preventing or
suspending the use of the Final Prospectus has been issued to the Issuer or its
directors, officers or promoters and no investigations or proceedings for such purposes
are pending or threatened; |
| |
(jj) |
|
except as disclosed in the Preliminary Prospectus or the Final Prospectus, none
of the directors or officers of any of the Issuer, any Person who owns, directly or
indirectly, more than 10% of any class of securities of the Issuer or securities of any
Person exchangeable for more than 10% of any class of securities of the Issuer, or any
associate or affiliate of the foregoing, respectively, has, or to the Actual Knowledge
of the Issuer intends to have, any interest, direct or indirect, in any transaction or
any proposed transaction with the Issuer which materially affects, is material to or
will materially affect the Issuer or a subsidiary of the Issuer; |
| |
(kk) |
|
there are no judgments unsatisfied against the Issuer or, to the knowledge of
the Issuer, any consent decrees or injunctions to which the Issuer is subject except
such judgments, consent decree or injunctions which will not either individually or in
the aggregate have a Material Adverse Effect; |
| |
(ll) |
|
except as disclosed in the Preliminary Prospectus or the Final Prospectus, no
default exists under and no event has occurred or, to the Actual Knowledge of the
Issuer, has been threatened, which after notice or lapse of time or both, or otherwise,
would constitute a default under or breach of, by the Issuer, or, to the Actual
Knowledge of the Issuer, any other Person, any obligation, agreement, covenant or
condition contained in any material contract, indenture, trust, deed, mortgage, loan
agreement, note, lease, licence or other material agreement or instrument to which the
Issuer is, or will, at the Closing Time be, a party or by which the Issuer or any of
its properties may be bound except such defaults or breaches which will not either
individually or in the aggregate have a Material Adverse Effect; |
| |
(mm) |
|
except as disclosed in the Preliminary Prospectus or the Final Prospectus, as
of the Closing Time the Issuer will have no liabilities, contingent or otherwise, which
materially adversely affects or may materially adversely affect the business, |
- 24 -
| |
|
|
operations, assets, liabilities, ownership, management, securities, capital,
prospects or condition (financial or otherwise) of the Issuer; |
| |
(nn) |
|
other than as disclosed in the Preliminary Prospectus or the Final Prospectus,
to the knowledge of the Issuer there is no legislation or any other action undertaken
by any federal, provincial, state, municipal, county or governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign, which may
materially adversely affect the business, operations, assets, liabilities, ownership,
management, securities, capital, prospects or condition (financial or otherwise) of the
Issuer; |
| |
(oo) |
|
except for the Debentures, the 6.75% convertible subordinated unsecured
debentures due June 30, 2015, the 7.5% convertible subordinated unsecured debentures
due October 31, 2014 and except as disclosed in the Preliminary Prospectus or the Final
Prospectus, none of the Issuer or any of its subsidiaries has outstanding any bonds,
debentures, notes, mortgages or other indebtedness for borrowed money which are
material to the Issuer and, except as described in the Preliminary Prospectus or the
Final Prospectus, the Issuer has not agreed to create or issue any bonds, debentures,
notes, mortgages or other indebtedness for borrowed money; |
| |
(pp) |
|
all accounts receivable of the Issuer and its subsidiaries reflected on the
audited consolidated balance sheet as of March 31, 2011 (the “Current Balance Sheet”),
and all accounts receivable which have arisen since the date of the Current Balance
Sheet are valid and will have arisen only from bona fide arm’s-length transactions in
the Ordinary Course of the Business. To the Actual Knowledge of the Issuer, no basis
exists for the assertion of any material counterclaim or set-off against any
receivables of the Issuer or any of its subsidiaries; |
| |
(qq) |
|
the Financial Statements: |
| |
(i) |
|
have been prepared in accordance with generally accepted
accounting principles applied on a basis consistent with those of preceding
fiscal periods; |
| |
(ii) |
|
present fairly and correctly, in all material respects, the
consolidated assets, liabilities and financial condition of the Issuer as at
March 31, 2011 and the results of its operations and the changes in the
Issuer’s consolidated financial position for the period then ended; and |
| |
(iii) |
|
contain and reflect adequate provision or allowance for all
reasonably anticipated liabilities, expenses and losses of the Issuer on a
consolidated basis; |
| |
(rr) |
|
the Issuer is not and will not be as a result of the execution and the delivery
of this Agreement, and the consummation of the Offering, an “Investment Company” as
defined in the Investment Company Act of 1940 of the United States; and |
| |
(ss) |
|
the Trust Company, at its principal office in Toronto, has been duly appointed
as the registrar and transfer agent with respect to the Shares and as Computershare |
- 25 -
| |
|
|
Trust Company of Canada, at its principal office in Toronto, has been duly appointed
as the trustee under the Trust Indenture with respect to the Debentures; |
| 12.1 |
|
The Issuer will promptly inform the Underwriters in writing during the period prior to the
Closing Time of the full particulars of: |
| |
(a) |
|
any change (actual, anticipated, contemplated or threatened) in the assets,
liabilities (contingent or otherwise), business, affairs, operations or capital of the
Issuer; |
| |
(b) |
|
any change in any matter referred to in any Offering Document (other than any
matter relating solely to any of the Underwriters); or |
| |
(c) |
|
any other fact, event or circumstance, |
which would have been required to have been stated in the Final Prospectus or any Supplemental
Material had that fact or change arisen or been discovered on, or prior to, the date of any of the
Final Prospectus or any Supplemental Material or which is, or may be, of such a nature as to render
any of the Offering Documents or any statement therein untrue or misleading in any material respect
or which would result in any of the Offering Documents containing a misrepresentation or which
would result in any of the Offering Documents not complying with any of the Securities Laws or
which would reasonably be expected to have a significant effect on the market price or value of the
Debentures or the Underlying Shares.
| 12.2 |
|
The Issuer will promptly comply with all applicable filing and other requirements under the
Securities Laws arising as a result of any change, fact, event or circumstance referred to in
Section 12.1 and the Issuer will prepare and the Issuer will file under all applicable
Securities Laws, as promptly as possible, and in any event within any time limit prescribed
under applicable Securities Laws, any Supplemental Material as may be required under
applicable Securities Laws or which, in the opinion of both the Underwriters and the Issuer,
acting reasonably, may be advisable; provided that the Issuer will allow the Underwriters and
their counsel to participate fully in the preparation of any Supplemental Material and to
conduct all due diligence investigations which the Underwriters may reasonably require in
order to fulfill their obligations as underwriters and in order to enable the Underwriters to
execute responsibly any certificate required to be executed by them in any Supplemental
Material and the Underwriters will have approved the form of any Supplemental Material, such
approval not to be unreasonably withheld and to be provided in a timely manner, and the Issuer
will otherwise comply with all legal requirements necessary to continue to qualify the
Debentures for distribution in each of the Qualifying Jurisdictions. |
| 12.3 |
|
In addition to the provisions of Sections 12.1 and 12.2, the Issuer will, in good faith,
discuss with the Underwriters any fact, change, event or circumstance (actual, anticipated,
contemplated or threatened) which is of such a nature that there is or could be reasonable
doubt as to whether notice should be given to the Underwriters under Section 12.1 and will
consult with the Underwriters with respect to the form and content of any Supplemental
Material proposed to be filed by the Issuer. |
- 26 -
| 13. |
|
Conditions of Closing |
| 13.1 |
|
The Underwriters’ obligations under this Agreement will be subject to the following
conditions being fulfilled which are for the exclusive benefit of the Underwriters, any of
which may be waived, in whole or in part, by the Underwriters, in their sole discretion,
pursuant to Section 14.2 hereof: |
| |
(a) |
|
the Underwriters will have received a legal opinion, subject to customary
limitations, assumptions and qualifications, dated as of the Closing Date addressed to
the Underwriters from the Issuer and the Issuer’s Canadian counsel in form and content
to the reasonable satisfaction of the Underwriters’ counsel with respect to such
matters as the Underwriters may reasonably request, including the following: |
| |
(1) |
|
is a corporation incorporated and validly
existing under the laws of its jurisdiction of incorporation; and |
| |
| |
(2) |
|
has all necessary corporate power,
authority and capacity to own or lease its property and assets and
to carry on its business as presently conducted as described in the
Final Prospectus; |
| |
(ii) |
|
the Issuer is authorized to issue an unlimited number of
Shares, of which, as at the Closing Time, such numbers of Shares as noted in
the Final Prospectus will be validly issued and outstanding as fully paid and
non-assessable securities of the Issuer; |
| |
(iii) |
|
to its knowledge, as of the Closing Time, except for the
Debentures, the 6.75% convertible subordinated unsecured debentures due June
30, 2015 and the 7.50% convertible subordinated unsecured debentures due
October 31, 2014, no securities exchangeable or convertible into Shares will be
issued and outstanding; |
| |
(iv) |
|
all necessary corporate action has been taken by the Issuer to
authorize the execution, certification, issue, sale and delivery of the
Debentures and all necessary corporate action has been taken by the Issuer to
create and validly issue the Underlying Shares; |
| |
(v) |
|
all necessary corporate action has been taken to authorize the
execution and delivery by the Issuer of this Agreement and the Trust Indenture
and the performance of its obligations thereunder, and this Agreement and the
Trust Indenture have been duly executed and delivered by the Issuer and
constitute legal, valid and binding obligations of the Issuer enforceable
against it in accordance with their respective terms, provided that enforcement
may be limited by bankruptcy, insolvency and other similar laws of general
application affecting the enforcement of creditors’ rights generally, specific
performance, injunctive relief and other equitable remedies may be granted only
in the discretion of a court of competent jurisdiction and that rights of
indemnity and/or contribution set out in this Agreement and the Trust Indenture
may be limited by applicable law; |
- 27 -
| |
(vi) |
|
no consent, approval, authorization or order of, and no filing,
registration or recording with, any Governmental Entity is required in
connection with the execution and delivery by the Issuer of this Agreement, the
Trust Indenture and the Debentures, or the performance by the Issuer of its
obligations hereunder or thereunder, as applicable, and the consummation by the
Issuer of the Offering, including the creation, issuance, sale and delivery of
the Debentures (and the Underlying Shares), except for consents, approvals,
authorizations or orders, or filings, registrations or recordings with any
Governmental Entity that have been obtained; |
| |
(vii) |
|
the execution and the delivery of this Agreement and the Trust
Indenture, and the consummation of the Offering, will not: |
| |
(1) |
|
conflict with or result in or will result
in a breach of or default under any of the terms, conditions or
provisions of the constating documents of the Issuer or the
resolutions of its directors or Equity Holders or any committee
thereof; or |
| |
| |
(2) |
|
conflict with or result in a breach of or
default under any applicable law, or, to its knowledge, any
judgment, order or decree of any Governmental Entity having
jurisdiction over the Issuer or any of its respective assets or
properties; |
| |
(viii) |
|
each of the Preliminary Prospectus and the Final Prospectus, in both the
French and English languages, and the execution and filing of each of the
Preliminary Prospectus and the Final Prospectus, in both the French and English
languages, with the Securities Commissions have been duly approved and
authorized by all necessary corporate action by the Issuer, and each of the
Preliminary Prospectus and the Final Prospectus, in both the French and English
languages, have been duly executed by the Issuer; |
| |
(ix) |
|
the distribution of the Debentures complies, in all material
respects, with all laws in the Province of Quebec relating to the use of the
French language in connection therewith; |
| |
(x) |
|
the Issuer is a reporting issuer or the equivalent thereof in
each Qualifying Jurisdiction where such concept exists and is not in default
under the Securities Laws of any Qualifying Jurisdiction; |
| |
(xi) |
|
all necessary documents have been filed, all requisite
proceedings have been taken and all other legal requirements have been
fulfilled under the laws of each of the Qualifying Jurisdictions in order to
qualify the Debentures for distribution and sale to the public through
investment dealers or brokers who are registered under applicable legislation
of the Qualifying Jurisdictions and who have complied with the relevant
provisions of such applicable legislation; |
| |
(xii) |
|
the form and terms of the certificates for the Debentures have
been approved and adopted by the directors of the Issuer and comply with the
terms and conditions of the Trust Indenture and the requirements of the TSX; |
- 28 -
| |
(xiii) |
|
the TSX has conditionally approved the listing and posting for trading of the
Debentures and the Underlying Shares subject to fulfilling the Standard Listing
Conditions by the date required by the TSX; |
| |
(xiv) |
|
as long as the Debentures or the Underlying Shares are listed
on a designated stock exchange, as defined in the Tax Act, the Debentures will
be qualified investments under the Tax Act for trusts governed by registered
retirement savings plans, registered education savings plans, registered
retirement income funds, deferred profit sharing plans (except a deferred
profit sharing plan to which the Issuer, or an employer that does not deal at
arm’s length with the Issuer, has made a contribution), registered disability
savings plans and tax-free savings accounts; |
| |
(xv) |
|
the Trust Company, at its principal offices in Toronto, has
been duly appointed as the registrar and transfer agent with respect to the
Shares and Computershare Trust Company of Canada, at its principal office in
Toronto, has been duly appointed as the trustee under the Trust Indenture with
respect to the Debentures; and |
| |
(xvi) |
|
the directors of the Issuer are duly appointed. |
| |
(b) |
|
the Underwriters will have received a legal opinion, dated as of the Closing
Date and addressed to the Underwriters, from Torys LLP, Canadian counsel to the
Underwriters, in form and content to the reasonable satisfaction of the Underwriters
with respect to such matters as the Underwriters may reasonably request; |
| |
(c) |
|
the Underwriters will have received certificates dated the Closing Date signed
by those senior officers on behalf of the Issuer, as may be acceptable to the
Underwriters, acting reasonably, in form and content satisfactory to the Underwriters,
acting reasonably, with respect to all such matters as the Underwriters may reasonably
request, including the following: |
| |
(i) |
|
the constating documents of the Issuer; |
| |
(ii) |
|
the resolutions of the directors of the Issuer relevant to the
approval of the Final Prospectus and the signing and filing thereof, creation,
issuance and sale of the Debentures; and |
| |
(iii) |
|
the incumbency and signatures of signing officers of the
Issuer; |
| |
(d) |
|
the Underwriters will have received at the Closing Time a certificate dated the
Closing Date addressed to the Underwriters and signed by two senior officers of the
Issuer, certifying for and on behalf of Issuer: |
| |
(i) |
|
subsequent to the respective dates as at which information is
given in the Final Prospectus or any Supplemental Material there has been no
material change (actual, anticipated, contemplated or threatened, whether
financial or otherwise) to the business, affairs, assets, liabilities
(contingent or otherwise), capital or prospects of the Issuer or its
subsidiaries, taken as a whole, and none of the Issuer or its subsidiaries has
entered into any transaction out of the ordinary course of business |
- 29 -
| |
|
|
which is material to the Issuer or the subsidiaries, taken as a whole, other
than as disclosed in the Final Prospectus or any Supplemental Material; |
| |
(ii) |
|
there are no actions, suits, proceedings or inquiries pending
or threatened against or affecting the Issuer or its subsidiaries at law or in
equity or before or by any federal, provincial, state, municipal, county or
other governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, which may in any way materially adversely
affect the Issuer or its subsidiaries, taken as a whole, or the transaction
contemplated by this Agreement; |
| |
(iii) |
|
no order, ruling or determination having the effect of ceasing
or suspending trading in the Shares or prohibiting the sale of the Debentures
has been issued, no proceedings for such purpose have been instituted no
proceedings for such purpose are pending or, to the Actual Knowledge of the
Issuer, threatened; |
| |
(iv) |
|
the Issuer has complied with all of its obligations under the
SNCF Subscription Agreement as required in connection with the Offering of the
Debentures; |
| |
(v) |
|
the Issuer has complied with all covenants and satisfied all
terms and conditions of this Agreement on its part to be complied with or
satisfied by it up to the Closing Time; and |
| |
(vi) |
|
the representations and warranties of the Issuer contained in
this Agreement are true and correct as of the Closing Time with the same force
and effect as if made at and as of the Closing Time after giving effect to the
transaction contemplated by this Agreement; |
| |
|
|
and all of those matters will in fact be true and correct as at the Time of Closing
and none of the Underwriters shall have any knowledge to the contrary; |
| |
(e) |
|
the Underwriters will have received at the Closing Time a comfort letter dated
as of the Closing Date addressed to the Underwriters from the Auditors substantially in
the form requested by the Underwriters, acting reasonably, updating the comfort letter
or letters to be delivered to the Underwriters pursuant to Section 7, provided that
such letter may be based on a review by the Auditors having a cut-off date not more
than two business days prior to the Closing Date; |
| |
(f) |
|
all actions required to be taken by or on behalf of the Issuer including the
passing of all requisite resolutions of the directors of the Issuer and all requisite
filings with governmental authorities, Securities Commissions or courts will have
occurred at or prior to the Closing Time, so as to validly authorize the execution and
filing of the Preliminary Prospectus, the Final Prospectus and any Supplemental
Material, to authorize the execution of the Trust Indenture, and to authorize and issue
the Debentures and the Underlying Shares, in each case having the attributes
contemplated by the Final Prospectus; |
- 30 -
| |
(g) |
|
the Debentures and the Underlying Shares will have been approved for listing
and posting for trading on the TSX, subject only to the Standard Listing Conditions;
and |
| |
(h) |
|
the Underwriters will have received such other certificates, opinions,
agreements, materials or documents, in form and substance satisfactory to the
Underwriters, as the Underwriters may reasonably request. |
| 13.2 |
|
In giving the opinions contemplated in Section 13.1, counsel may rely: |
| |
(a) |
|
as to matters of fact, to the extent appropriate in the circumstances, on
certificates of the Auditors and on certificates of the Issuer executed on their
respective behalf by a senior officer, acceptable to the Underwriters, acting
reasonably; |
| |
(b) |
|
on the opinions of local counsel acceptable to the Underwriters and their
Underwriters’ counsel (signed copies should be addressed to and delivered to the
Underwriters and their counsel), acting reasonably, as to matters respecting the
qualification of the Debentures for sale to the public and as to other relevant matters
in the Qualifying Jurisdictions and all other relevant jurisdictions; and |
| |
(c) |
|
in the case of counsel to the Underwriters and to the extent necessary, on the
opinion of the Issuer’s counsel or local counsel. |
| 14. |
|
Termination by Underwriters in Certain Events |
| 14.1 |
|
Each Underwriter will be entitled to terminate its obligation to purchase the Debentures,
without liability on the Underwriter’s part, by written notice to that effect given to the
Issuer and Scotia at or prior to the Closing Time: |
| |
(a) |
|
if, any inquiry, action, suit, investigation or other proceeding (whether
formal or informal) is commenced, announced or threatened or any order is issued under
or pursuant to any relevant statute or by any federal, provincial, state, municipal or
other governmental department, commission, board, bureau, agency or instrumentality or
any third party, including, without limitation, the TSX or any securities regulatory
authority (other than any such inquiry, action, suit, investigation or other proceeding
or order relating solely to any of the Underwriters) or there is any change of law, or
interpretation or administration thereof, which, in the reasonable opinion of that
Underwriter, acting in good faith, (i) operates to prevent or materially restrict the
trading in, or materially and adversely impacts the distribution or the marketability
of the Debentures or the Underlying Shares, or materially and adversely affects or will
materially and adversely affect the market price or value of the Debentures or the
Underlying Shares, as applicable; or (ii) operates to prevent, suspend, hinder, delay,
restrict or otherwise materially adversely affect the transaction contemplated by the
Final Prospectus; |
| |
(b) |
|
there occurs any material change (actual, imminent or reasonably expected) in
the business, affairs, operations, assets, liabilities (contingent or otherwise),
capital or ownership of the Issuer or its subsidiaries, taken as a whole, howsoever
caused, or there should be discovered any previously undisclosed material fact (other
than a material fact related solely to any of the Underwriters) or there |
- 31 -
| |
|
|
should occur a change (other than a change related solely to any of the
Underwriters) in a material fact contained in the Final Prospectus, in each case
which, in the opinion of that Underwriter, could reasonably be expected to have a
significant adverse effect on the market price or value of the Debentures or the
Underlying Shares; |
| |
(c) |
|
there should develop, occur or come into effect or existence any event, action,
state, condition or major financial occurrence of national or international
consequence, including any act of terrorism, war or like event, or any governmental
action, law, regulation, inquiry or other occurrence of any nature which, in the
reasonable opinion of such Underwriter, materially adversely affects or may reasonably
be expected to materially and adversely affect the financial markets in Canada or the
United States or the business, operations or affairs of the Issuer and its
subsidiaries, taken as a whole, or the marketability of the Debentures or the
Underlying Shares; or |
| |
(d) |
|
there is announced any change or proposed change in the Tax Act or U.S. Tax
Code or any other tax laws of Canada or the United States or any other jurisdiction and
such change would, in the opinion of the Underwriter, acting reasonably, be expected to
have a significant adverse effect on the market price, value or marketability of the
Debentures or the Underlying Shares. |
| 14.2 |
|
All terms and conditions in this Agreement will be construed as conditions, and any breach of
or failure to comply with any such terms or conditions which in the reasonable opinion of any
of the Underwriters materially and adversely affects the sale or distribution by it of the
Debentures will entitle each Underwriter at any time prior to the Closing Time to terminate
its obligations under this Agreement forthwith by written notice to that effect given to the
Issuer. It is understood that the Underwriters or any of them may waive, in whole or in part,
or extend the time for compliance with, any of such terms and conditions without prejudice to
the rights of the Underwriters or any of them in respect of any such terms and conditions or
any other or subsequent breach or non-compliance, provided that to be binding on an
Underwriter any such waiver or extension must be in writing and signed by such Underwriter. |
| 14.3 |
|
In the event of any termination of the Underwriters’ obligations under this Agreement by one
of the Underwriters in accordance with the terms of this Agreement, the other Underwriters
will be deemed contemporaneously to have terminated their obligations under this Agreement
unless the other Underwriters or any of them will, within 24 hours after notice of termination
is given, notify the Issuer that they are assuming the obligations of the Underwriter
terminating its obligations. Any termination by any of the Underwriters pursuant to the
provisions of this Agreement will be effected by notice delivered to the Issuer. The rights of
termination contained in this Section 14 are in addition to any other rights or remedies the
Underwriters may have in respect of any default, misrepresentation, act or failure to act of
the Issuer in respect of any matters contemplated by this Agreement. In the event of any such
termination, there will be no further liability on the part of the Issuer or the Underwriters
except for any liability provided for in Section 15 and Section 16.2. |
- 32 -
| 15.1 |
|
Subject to the terms of this Section 15, the Issuer, on the basis provided herein, protect,
hold harmless and indemnify each of the Underwriters and their respective affiliates and their
respective directors, officers, employees, shareholders and agents (collectively, the
“Indemnified Parties” and individually an “Indemnified Party”) from and against all Damages,
which any of them may pay or incur with respect to and/or defending any action, suit,
proceeding, investigation or claim that may be made or threatened against any Indemnified
Party or in enforcing this indemnity (collectively, a “Claim”), including the reasonable fees
and expenses of legal counsel on a solicitor and own client basis, to which any Indemnified
Party may become subject or otherwise involved, in any capacity insofar as Claims relate to,
are caused by, result from, arise out of or are based upon, directly or indirectly: |
| |
(a) |
|
any breach of or default by the Issuer of any of its representations,
warranties, covenants or agreements in this Agreement or any other document to be
delivered pursuant hereto or the failure of the Issuer to comply with any of its
obligations hereunder; |
| |
(b) |
|
any Offering Document, or any information or statement (except any information
or statement relating solely to the Underwriters, or any of them, provided by the
Underwriters in writing for inclusion in such document) contained in any of the
Offering Documents being or being alleged to contain or be a misrepresentation or
untrue or any omission or alleged omission to state in those documents any material
fact (except facts relating solely to the Underwriters or any of them, provided by the
Underwriters in writing for inclusion in such document) required to be stated in those
documents or necessary to make any of the statements therein not misleading in light of
the circumstances in which they were made; |
| |
(c) |
|
any order made or any inquiry, investigation or proceeding instituted,
threatened or announced by any court, securities regulatory authority or stock exchange
or by any other competent authority, based upon any untrue statement, omission or
misrepresentation or alleged untrue statement, omission or misrepresentation (except a
statement, omission or misrepresentation relating to the Underwriters, or any of them,
provided by the Underwriters in writing for inclusion in such document) contained in
any of the Offering Documents; or |
| |
(d) |
|
the Issuer not complying with any requirement of any applicable Securities Laws
relating to the Offering contemplated hereby. |
| 15.2 |
|
If any Claim contemplated by this Section 15 is asserted against any of the Indemnified
Parties, or if any potential Claim contemplated by this Section 15 comes to the knowledge of
any of the Indemnified Parties, the Indemnified Party concerned will notify in writing the
Issuer as soon as reasonably practicable, of the nature of the Claim (provided that any
failure to so notify in respect of any potential Claim will not affect the liability of the
Issuer under this Section 15 except to the extent that any failure to so notify in respect of
any actual Claim materially increases the liability of the Issuer under this Section 15). |
| 15.3 |
|
The Issuer will, subject to the following, be entitled (but not required) to assume the
defence on behalf of the Indemnified Party of any suit brought to enforce a |
- 33 -
| |
|
|
Claim; provided that the defence will be through legal counsel selected by the
Issuer and acceptable to the Indemnified Party, acting reasonably, and no admission
of liability will be made by the Indemnified Party without, in each case, the prior
written consent of all the Indemnified Parties affected and the Issuer, in each
case, which consent will not be unreasonably withheld. An Indemnified Party will
have the right to employ separate counsel in any such suit and participate in the
defence thereof but the fees and expenses of that counsel will be at the expense of
the Indemnified Party unless: |
| |
(a) |
|
the Issuer fails to assume the defence of the suit on behalf of the Indemnified
Party within ten days of receiving notice of the suit; |
| |
(b) |
|
the employment of that counsel has been authorized by the Issuer; or |
| |
(c) |
|
the named parties to the suit (including any added or third parties) include
the Indemnified Party and the Issuer, and the Indemnified Party has been advised in
writing by counsel that there are legal defences available to the Indemnified Parties
that are different or in addition to those available to the Issuer or that
representation of the Indemnified Party by counsel for the Issuer is inappropriate as a
result of the potential or actual conflicting interests of those represented; |
(in each of the cases set out in Sections 15.3 (a), (b) or (c) the Issuer will not have the right
to assume the defence of the suit on behalf of the Indemnified Party, but the Issuer will be liable
to pay the reasonable fees and expenses of separate counsel for all Indemnified Parties and, in
addition, of local counsel in each applicable jurisdiction on a solicitor and own client basis).
Notwithstanding the foregoing, no settlement may be made by an Indemnified Party without the prior
written consent of the Issuer, which consent will not be unreasonably withheld.
| 15.4 |
|
The rights of indemnity contained in this Section 15 will not inure to the benefit of the
Underwriters if the Issuer has complied with the provisions of Sections 4, 5 and 12 and the
Person asserting any Claim contemplated by this Section 15 was not provided with a copy of any
Final Prospectus or Supplemental Material which corrects any untrue statement or information,
misrepresentation (for the purposes of Securities Laws or any of them) or omission which is
the basis of the Claim and which is required under Securities Laws to be delivered to that
Person by the Underwriters or members of their banking or selling group (if any). |
| 15.5 |
|
The Issuer hereby acknowledges and agrees that, with respect to this Section 15, the
Underwriters are contracting on their own behalf and as agents for their affiliates,
directors, officers, employees and agents and their respective affiliates, directors,
officers, employees and agents (collectively, the “Beneficiaries”). In this regard, each of
the Underwriters will act as trustee for the Beneficiaries of the covenants of the Issuer
under this Section 15 with respect to the Beneficiaries and accepts these trusts and will hold
and enforce those covenants on behalf of the Beneficiaries. |
| 15.6 |
|
Neither the Issuer nor any Underwriter will, without each of the other’s prior written
consent, settle, compromise, consent to the entry of any judgment in or otherwise seek to
terminate any action, suit, proceeding, investigation or claim in respect of which
indemnification may be sought hereunder (whether or not any Indemnified Party is a party
thereto) unless such settlement, compromise, consent or termination includes an unconditional
release of each Indemnified |
- 34 -
| |
|
|
Party from any and all liabilities arising out of such action, suit, proceeding,
investigation or claim. |
| 15.7 |
|
In order to provide for just and equitable contribution in circumstances in which an
indemnity provided in this Section 15 in respect of a Claim would otherwise be available in
accordance with its terms but is, for any reason not solely attributable to any one or more of
the Indemnified Parties, held to be unavailable to or unenforceable by the Indemnified Parties
or enforceable otherwise than in accordance with its terms, or is insufficient to hold any
Indemnified Party harmless, the Issuer will contribute to the amount paid or payable by the
Indemnified Parties as a result of such Claim in such proportion as is appropriate to reflect
not only the relative benefits received by the Issuer, on the one hand, and the Indemnified
Party, on the other hand, but also the relative fault of the Issuer and the Indemnified Party
as well as any relevant equitable considerations; provided that in no event will an
Indemnified Party be liable to pay or contribute an amount in excess of the aggregate amount
of the fees actually received by the Indemnified Party under this Agreement. |
| 15.8 |
|
In the event and to the extent that a court of competent jurisdiction, in a final judgment
from which no appeal can be made, will determine that a Claim resulted from the fraud,
fraudulent misrepresentation, gross negligence or willful misconduct of the Indemnified Party,
such Indemnified Party will cease to be entitled to claim indemnification under this Section
15 or contribution under Section 15.7 for such Claim from any Person that has not engaged in
such fraud, fraudulent misrepresentation, gross negligence or willful misconduct (provided
that for greater certainty, an Underwriter’s failure to conduct such reasonable investigations
so as to provide reasonable grounds for a belief that the Final Prospectus or any amendment
contained no misrepresentation (or, colloquially, to permit the Underwriter to sustain a “due
diligence defense” under Securities Laws) shall not constitute “gross negligence” for purposes
of this section 15.8 or otherwise disentitle an Indemnified Party from claiming
indemnification or contribution). |
| 15.9 |
|
For greater certainty, the Issuer will not have any obligation to contribute pursuant to
Section 15.7 in respect of any Claim except to the extent the indemnity given by it in this
Section 15 would have been applicable to that Claim in accordance with its terms, had that
indemnity been found to be enforceable and available to the Indemnified Parties. |
| 15.10 |
|
The rights to contribution provided in this section will be in addition to and not in
derogation of any other right to contribution which the Indemnified Parties may have by
statute or otherwise at law provided that Sections 15.7 and 15.9 will apply, mutatis mutandis,
in respect of that other right. |
| 15.11 |
|
If any Claim is brought in connection with the Offering and any of the Underwriters is
required to testify in connection therewith or is required to respond to procedures designed
to discover information relating thereto, it will have the right, acting reasonably, to employ
its own counsel in connection therewith, and the fees and disbursements of such counsel in
connection therewith as well as its reasonable fees at the normal per diem rate for its
directors, officers, employees and agents involved in preparation for and attendance at such
proceedings or in so responding and any other reasonable |
- 35 -
| |
|
|
costs and out-of-pocket expenses incurred by it in connection therewith will be paid
by the Issuer as they are incurred. |
| 15.12 |
|
The obligations under this Section 15 will apply whether or not the Offering contemplated by
this Agreement is completed and will survive the completion of the Offering contemplated under
this Agreement and the termination of this Agreement. |
| 16.1 |
|
In consideration of the agreement of the Underwriters to purchase the Debentures and to offer
them to the public pursuant to the Final Prospectus, and for providing the following services:
acting as financial advisers to the Issuer; assisting in the preparation of the Preliminary
Prospectus, the Final Prospectus and any Supplemental Material; and distributing the
Debentures to the public both directly and through other registered dealers and brokers, the
Issuer agrees to pay to the Underwriters at the Closing Time, an aggregate fee of
US$2,400,000, being a fee equal to 4.0% of the aggregate purchase price for the Debentures, or
US$40 per US$1,000 principal amount of Debenture. For greater certainty, the services provided
by the Underwriters in connection herewith will not be subject to the goods and services tax
provided for in the Excise Tax Act (Canada) and any taxable supplies provided will be
incidental to the exempt financial services provided. However, in the event that the Canada
Revenue Agency determines that goods and services tax and/or harmonized sales tax provided for
in the Excise Tax Act (Canada) is exigible on the fees paid to the Underwriters, the Issuer
agrees to pay the amount of goods and services tax and/or harmonized sales tax forthwith upon
the request of the Underwriters. The Issuer also agrees to pay the Underwriters’ expenses as
set forth in Section 16.2 hereof. |
| 16.2 |
|
All expenses of or incidental to the authorization, issuance and delivery of the Debentures
and of or incidental to all matters in connection with the transactions set out in this
Agreement will be borne by the Issuer, including, without limitation: |
| |
(a) |
|
expenses payable in connection with the qualification for distribution of the
Debentures under applicable Securities Laws; |
| |
(b) |
|
the fees, expenses and disbursements of the Auditors, independent experts,
counsel to the Issuer and all related local counsel; |
| |
(c) |
|
all costs incurred in connection with the preparation, translation, filing and
printing of the Preliminary Prospectus, the “green sheet”, the Final Prospectus, any
Supplemental Material and the Trust Indenture; and |
| |
(d) |
|
all fees and expenses of the Trust Company; |
including Canadian federal goods and services tax and/or harmonized sales tax exigible in respect
of any of the foregoing. The Issuer will reimburse the Underwriters from time to time for all such
expenses forthwith upon the Underwriters’ written request or requests. Notwithstanding the
foregoing, the fees and disbursements of counsel for the Underwriters and the Underwriters’
out-of-pocket expenses shall be borne by the Underwriters, except that the
- 36 -
Underwriters will be reimbursed by the Issuer for all these fees, disbursements and expenses, to
the extent they are reasonable, if the sale of the Offering is not completed, other than as a
result of the failure of an Underwriter to comply with the terms of this Agreement.
| 17.1 |
|
The closing of the purchase and sale of the Debentures will be completed at the Closing Time
at the offices of Goodmans LLP, 000 Xxx Xxxxxx, Xxxxx 0000, Xxxxxxx, Xxxxxxx, X0X 0X0, or at
any other place determined in writing by the Issuer and the Underwriters. At the Closing Time,
the Issuer will duly and validly deliver to Scotia on behalf of the Underwriters: |
| |
(a) |
|
one or more global certificates representing the Debentures registered in the
name of “CDS & Co.” or such other name as the Underwriters may notify to the Issuer in
writing not less than 48 hours prior to the Closing Time, against payment to the
Issuer, or as the Issuer may direct to the Underwriters in writing not less than 48
hours prior to the Closing Time, of the purchase price. The certificate in global form
representing the Debentures shall be delivered by Scotia to the CDS Clearing and
Depository Services Inc. (“CDS”), together with a direction to CDS with respect to the
crediting of Debentures to the accounts of the participants of CDS; |
| |
(b) |
|
the requisite legal opinions and certificates as contemplated above; and |
| |
(c) |
|
all further documentation as may be contemplated in this Agreement or as
counsel to the Underwriters may reasonably require; |
against payment by the Underwriters to or to the direction of the Issuer, by wire transfer or bank
transfer in immediately available funds, of the purchase price for the Debentures being issued and
sold by the Issuer under this Agreement less (i) the underwriting fee respecting the Debentures as
described in Section 16.1, and (ii) any reimbursable expenses payable by the Issuer to the
Underwriters for which written request has been provided by the Underwriters to the Issuer pursuant
to Section 16.2.
| 18. |
|
Restrictions on Further Issues or Sales |
| 18.1 |
|
Without the prior written consent of Scotia and NBF, which consent may not be unreasonably
withheld, during the period commencing on the date of this Agreement and ending on the day
which is 90 days following the Closing Date, except pursuant to this Agreement, the Issuer
will not, directly or indirectly, authorize, issue, offer, sell, resell or otherwise dispose
of any Shares or securities convertible or exchangeable for or exercisable into Shares, or
agree to any such offer, sale or issuance except for the purposes of (a) issuing securities in
connection with any arm’s length property or share acquisition in the normal course of
business or in connection with any business combination or similar transaction, provided that
notice of any such issue is provided to Scotia and NBF, (b) granting trustee, employee,
consultant and director compensation and incentives, (c) satisfying currently outstanding
instruments and contractual commitments (including, without limitation, in favour of SNCF
Participations SA),rights, warrants, options and convertible debentures (including, without
limitation, the Issuer’s outstanding convertible debentures), (d) issuing Shares pursuant to
the Issuer’s dividend reinvestment plan, and (e) issuing in |
- 37 -
| |
|
|
connection with acquisitions which individually and in the aggregate are
non-material. |
| 19. |
|
Obligations of the Underwriters to Purchase the Debentures |
| 19.1 |
|
Subject to the terms and conditions of this Agreement, the obligation of the Underwriters to
purchase the Debentures will be several and not joint. The percentage of the Debentures to be
severally purchased and paid for by each of the Underwriters will be as follows: |
| |
|
|
|
|
|
Scotia Capital Inc. |
|
|
30.0 |
% |
National Bank Financial Inc. |
|
|
30.0 |
% |
BMO Xxxxxxx Xxxxx Inc. |
|
|
10.0 |
% |
CIBC World Markets Inc. |
|
|
10.0 |
% |
Xxxxxxx Xxxxx Ltd. |
|
|
10.0 |
% |
Wellington West Capital Markets Inc. |
|
|
10.0 |
% |
If an Underwriter (a “Refusing Underwriter”) does not complete the purchase and sale of the
Debentures which that Underwriter has agreed to purchase under this Agreement (other than in
accordance with Section 14) (the “Defaulted Debentures”), Scotia and NBF may delay the Closing Date
for not more than five days and the remaining Underwriters (the “Continuing Underwriters”) will be
entitled, at their option, to purchase all but not less than all of the Defaulted Debentures pro
rata according to the number of Debentures to have been acquired by the Continuing Underwriters
under this Agreement or in any proportion agreed upon, in writing, by the Continuing Underwriters.
If no such arrangement has been made, and the number of Defaulted Debentures to be purchased by the
Refusing Underwriter(s) does not exceed 10% of the number of Debentures, the Continuing
Underwriters will be obligated to purchase the Defaulted Debentures on the terms set out in this
Agreement in proportion to their obligations under this Agreement or in any other proportion agreed
upon by the Continuing Underwriters. If the number of Defaulted Debentures to be purchased by the
Refusing Underwriters exceeds 10% of the number of Debentures, the Continuing Underwriters will not
be obliged to purchase the Defaulted Debentures and, if the Continuing Underwriters do not elect to
purchase the Defaulted Debentures:
| |
(a) |
|
the Continuing Underwriters will not be obliged to purchase any of the
Debentures; |
| |
(b) |
|
the Issuer will not be obliged to sell less than all of the Debentures; and |
| |
(c) |
|
the Issuer will be entitled to terminate its obligations under this Agreement,
in which event there will be no further liability on the part of the Issuer, except
pursuant to the provisions of Sections 15 and 16. |
- 38 -
Any notice or other communication required or permitted to be given under this Agreement will
be in writing and will be delivered to:
| |
(a) |
|
in the case of the Issuer: |
| |
| |
|
|
Student Transportation Inc.
0000 Xxxxxxx 000
Xxxxxxxx X, Xxxxx X
Xxxx, Xxx Xxxxxx 00000 |
| |
| |
|
|
Attention:Xxxxx Xxxxxxxxx
Facsimile No.: (000) 000-0000 |
| |
| |
|
|
each with a copy to: |
| |
| |
|
|
Goodmans LLP
000 Xxx Xxxxxx
Xxxxx 0000
Xxxxxxx, XX X0X 0X0 |
| |
| |
|
|
Attention:Xxxxxx Xxxx
Facsimile No.: (000) 000-0000 |
| |
| |
(b) |
|
in the case of the Underwriters to Scotia and NBF, on its own behalf and on
behalf of the Underwriters: |
| |
| |
|
|
Scotia Capital Inc.
00 Xxxx Xxxxxx Xxxx
00xx Xxxxx
Xxxxxxx, XX X0X 0X0 |
| |
| |
|
|
Attention:Xxxxx Xxxxxx
Facsimile No.: (000) 000-0000 |
| |
| |
|
|
and |
| |
| |
|
|
National Bank Financial Inc.
000 Xxxx Xxxxxx Xxxx
Xxxxx 0000
Xxxxxxx, XX X0X 0X0 |
| |
| |
|
|
Attention: Xxxxxxxx Xxxxxxx
Facsimile No.: (000) 000-0000 |
- 39 -
| |
|
|
with a copy to: |
| |
| |
|
|
Torys LLP
00 Xxxxxxxxxx Xxxxxx Xxxx
Xxxxx 0000
X.X. Xxx 000, XX Xxxxxx
Xxxxxxx, XX X0X 0X0 |
| |
| |
|
|
Attention:Xxxxx Xxxxxx
Facsimile No.: (000) 000-0000 |
The parties may change their respective addresses for notices by notice given in the manner set out
above. Any notice or other communication will be in writing, and unless delivered personally to the
addressee or to a responsible officer of the addressee, as applicable, will be given by telecopy
and will be deemed to have been given when (i) in the case of a notice delivered personally to a
responsible officer of the addressee, when so delivered; and (ii) in the case of a notice delivered
or given by telecopy, on the first business day following the day on which it is sent.
| 21. |
|
Representative of Underwriters |
Except with respect to Sections 14 and 15 and the entitlement of Continuing Underwriters to
purchase Defaulted Debentures under Section 19.1 all transactions and notices on behalf of the
Underwriters under this Agreement or contemplated by this Agreement may be carried out or given on
behalf of the Underwriters by Scotia and Scotia will in good faith discuss with the other
Underwriters the nature of any of such transactions and notices prior to giving effect to them or
the delivery of them, as the case may be.
Time will be of the essence of this Agreement and, following any waiver or indulgence by any
party, time will again be of the essence of this Agreement.
| 23. |
|
Representations, Warranties and Agreements Surviving Closing |
All representations, warranties, covenants and agreements of the Issuer herein contained or
contained in any certificate of the Issuer delivered pursuant to this Agreement will survive the
purchase and sale of the Debentures and completion of the Offering provided for herein and will
continue in full force and effect for the benefit of the Underwriters, as follows:
| |
(a) |
|
the representations and warranties of the Issuer set out in Section 11.1 will
survive the Closing and continue in full force and effect as follows for a period of 24
months from the Closing Time, except that: |
| |
(i) |
|
the representations and warranties contained in Sections
11.1(u) and 11.1(v), (and the corresponding representations and warranties in
the certificates and documents delivered pursuant to or contemplated by this
Agreement) will survive the Closing and continue in full force and effect for
the duration of any assessment and related appeal periods; and |
- 40 -
| |
(ii) |
|
the representation and warranty contained in Section 4.8 will
survive Closing and continue in full force and effect for a period of three
years from the date of completion of the distribution of the Debentures. |
| 24.1 |
|
This Agreement will be governed by and interpreted in accordance with the laws of the
Province of Ontario and the federal laws of Canada applicable therein. |
| 24.2 |
|
The Issuer (a) acknowledges and accepts that the Underwriters have certain statutory
obligations as registrants under the Securities Laws and have relationships with certain of
their investing customers; (b) acknowledges and agrees that the Underwriters are not
fiduciaries of the Issuer; and (c) consents to the Underwriters acting hereunder while
continuing to act for their investing customers. To the extent that the Underwriters’
statutory obligations as registrants under the Securities Laws or relationships with their
investing customers conflicts with their obligations hereunder, the Underwriters shall be
entitled to fulfil their statutory obligations as registrants under the Securities Laws and
their duties to their investing customers. Nothing in this Agreement shall be interpreted to
prevent the Underwriters from fulfilling their statutory obligations as registrants under the
Securities Laws or acting for their investing customers. |
| 24.3 |
|
Each of the parties to this Agreement will be entitled to rely on delivery of a facsimile or
electronic copy of this Agreement and acceptance by each party of any such facsimile or
electronic copy will be legally effective to create a valid and binding agreement between the
parties to this Agreement in accordance with the terms of this Agreement. |
| 24.4 |
|
This Agreement may be executed in any number of counterparts, each of which when so executed
will be deemed to be an original and all of which, when taken together, will constitute one
and the same agreement. |
| 24.5 |
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To the extent permitted by applicable law, the invalidity or unenforceability of any
particular provision of this Agreement will not affect or limit the validity or enforceability
of the remaining provisions of this Agreement. |
| 24.6 |
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This Agreement and the other documents referred to in this Agreement constitute the entire
agreement between the parties hereto relating to the subject matter of this Agreement and
supersede all prior agreements between those parties with respect to their respective rights
and obligations in respect of the Offering contemplated under this Agreement. |
| 24.7 |
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The terms and provisions of this Agreement will be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns; provided that, except as
otherwise provided in this Agreement, this Agreement will not be assignable by any party
without the written consent of the others and any purported assignment without that consent
will be invalid and of no force and effect. |
| 24.8 |
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In the event that any party to this Agreement commences any litigation, proceeding or other
legal action in connection with or relating to this Agreement |
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or any matters contemplated hereby or thereby, each party to this Agreement hereby
(a) agrees that any such litigation, proceeding or other legal action may be brought
in a court of competent jurisdiction located within Xxxxxxx, Xxxxxxx, Xxxxxx, (b)
agrees that in connection with any such litigation, proceeding or action, such party
will consent and submit to personal jurisdiction in any such court described in
clause (a) of this Section 24.8 and to service of process upon it in accordance with
the rules and statutes governing service of process, (c) agrees to waive to the full
extent permitted by applicable law any objection that it may now or hereafter have
to the venue of any such litigation, proceeding or action in any such court or that
any such litigation, proceeding or action was brought in an inconvenient forum, (d)
agrees as an alternative method of service to service of process in any such
litigation, proceeding or action by mailing of copies thereof to such party at its
address set forth in Section 20, (e) agrees that any service made as provided herein
will be effective and binding service in every respect, and (f) agrees that nothing
herein will affect the rights of any party to effect service of process in any other
manner permitted by applicable law. |
- 42 -
If the foregoing is acceptable to the Issuer, please signify such acceptance on the duplicates
of this letter and return such duplicates to Scotia and NBF, which accepted offer shall
constitute the contract for the purchase by us and sale by the Issuer of the Debentures
referred to herein and shall constitute a binding agreement among us.
Yours very truly,
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| SCOTIA CAPITAL INC. |
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NATIONAL BANK FINANCIAL INC. |
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By:
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“Xxxxx Xxxxxx”
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By:
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“Xxxxxxxx Xxxxxxx”
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Xxxxx Xxxxxx
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Xxxxxxxx Xxxxxxx |
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BMO XXXXXXX XXXXX INC.
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By: |
“Xxxxx Xxxxxxxxx”
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Xxxxx Xxxxxxxxx |
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CIBC WORLD MARKETS INC.
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By: |
“Xxxxx Xx”
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Xxxxx Xx |
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XXXXXXX XXXXX LTD.
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By: |
“Xxxxxx Xxxxxxx”
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Xxxxxx Xxxxxxx |
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WELLINGTON WEST CAPITAL MARKETS
INC.
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By: |
“Xxxx Xxxxxxxxxxx”
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Xxxx Xxxxxxxxxxx |
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Accepted and agreed to by the undersigned as of the date of this letter first written above.
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STUDENT TRANSPORTATION INC.
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By: |
“Xxxxx X. Xxxxxxxxx”
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Xxxxx X. Xxxxxxxxx |
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Chairman and Chief Executive Officer |
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By: |
“Xxxxxxx X. Xxxxxx”
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Xxxxxxx X. Xxxxxx |
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Chief Financial Officer |
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Schedule 1(jj)
LIENS IN EXISTENCE ON THE CLOSING DATE
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1. |
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UCC-1 financing statements filed listing the Issuer or a Subsidiary as the debtor thereunder
filed for notice or precautionary purposes only in connection with lease or bailment
transactions. |
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2. |
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UCC-1 and PPSA financing statements filed by the Administrative Agent under the Second
Amended and Restated Credit Agreement dated as of February 4, 2011 by and among, inter alia,
the Issuer, its subsidiaries, and Xxxxxx X.X., as Administrative Agent, and the financial
institutions from time to time party thereto, as amended. |
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3. |
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Any UCC-1 and PPSA financing statements filed in connection with that certain Note Purchase
Agreement (the “NPA”) entered into as of December 14, 2006 with Sun Life Assurance Company of
Canada, London Life Insurance Company and other parties, as amended. |
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4. |
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The Federal Tax Lien Index indicates a Lien against Positive Connections, Inc. filed in 2001
in the amount of $11,500.06. In 2002, the IRS issued a letter indicating that no taxes were
owing by that company. However, despite repeated attempts to have the IRS remove the Lien from
the register, the IRS has failed to do so. |
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5. |
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One minor legal judgment exists in Texas against a predecessor subsidiary company. Our
inquiries have determined that no amount is actually owed, but attempts to correct the record
have been made without success. The amount of the judgment is less than $5,000. |
Schedule 11.1(x)
The Issuer has written contracts for the employment of the following management employees that
contain provisions providing severance, termination or similar payments to these management
employees, including on a change in control of the Issuer.
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1. |
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Employment Agreement of Xxxxx Xxxxxxxxx dated 11/26/07 effective 1/1/08 |
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2. |
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Employment Agreement of Xxxxx Xxxxxxxxx dated 11/16/10 |
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3. |
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Employment Agreement of Xxxxxxx Xxxxxx dated 7/1/08 |
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4. |
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Employment Agreement of Xxxx Xxxxxxx dated 7/1/08 |
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5. |
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Employment Agreement of Xxxx Xxxxxxx dated 7/1/06 |
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6. |
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Employment Agreement of Xxxxx Xxxxxxx dated 4/5/06 |
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7. |
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Employment Agreement of Xxxx Xxxxxxxxx dated 4/5/06 |
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8. |
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Employment Agreement of Xxx Xxxxx dated 7/1/08 |
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9. |
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Employment Agreement of Xxxx Xxxxxxx dated 8/11/06 |
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10. |
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Employment Agreement of Xxx Xxxxxxx dated 1/2/08 |
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11. |
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Employment Agreement of Xxxx Xxxxx dated 7/15/08 |
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12. |
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Letter employment agreement for Xxxx XxXxxxxx dated 12/10/07 |
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13. |
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Letter employment agreement for Xxxxx Xxxx dated 9/8/08 |
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14. |
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Letter employment agreement for Xxx Xxxxxxx dated 2/7/11 |
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15. |
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Employment Agreement of Xxxxxxx Xxxxxxx dated 1/5/11 |
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16. |
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Letter employment agreement for Xxxx Xxxxx dated 12/10/10 |
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17. |
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Letter employment agreement for Xxxx Xxxxxxx dated 12/10/11 |
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18. |
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Employment Agreement of Xxxx Xxxxxxx dated 12/17/10 |
The Issuer has written contracts for the employment of the following management employees that
do not contain any provisions providing severance, termination or similar payments.
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1. |
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Letter employment for Xxx Xxxxxxxxx dated 9/22/08 |
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2. |
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Letter employment agreement for Xxxxxx Xxxx dated 10/15/08 |
