ROGERS COMMUNICATIONS INC. AGENCY AGREEMENT
Exhibit
99.1
XXXXXX
COMMUNICATIONS INC.
May 21,
2009
To the
Agents named in Schedule II hereto
Ladies
and Gentlemen:
Xxxxxx
Communications Inc., a corporation existing under the laws of the Province of
British Columbia, Canada (the “Company”), proposes to appoint the several agents
named in Schedule II hereto (collectively, the “Agents” and each
individually an “Agent”), as its sole and exclusive agents to offer for sale on
a best efforts basis up to the principal amount of its debt securities
identified in Schedule I hereto (the “Securities”), to be issued under an
indenture to be dated as of the original issue date of the Securities (the “Base
Indenture”), between the Company and CIBC Mellon Trust Company, as trustee (the
“Trustee”), as supplemented by the supplemental indenture to be dated as of the
original issue date of the Securities (the “Supplemental Indenture” and,
together with the Base Indenture, the “Indenture”) among the Company, Xxxxxx
Wireless Partnership, an Ontario partnership (“RWP”), Xxxxxx Cable
Communications Inc., a corporation organized under the laws of Ontario (“RCCI”
and, together with RWP, the “Guarantors”), and the Trustee. Payment
of principal, premium, if any, and interest on the Securities will be fully and
unconditionally guaranteed, jointly and severally, on an unsecured,
unsubordinated basis (the “Guarantees”) by the Guarantors. Certain
terms used herein are defined in Section 20 hereof.
The Company has prepared and filed with
the Ontario Securities Commission (the “Reviewing Authority”) and the Canadian
securities regulatory authorities (together with the Reviewing Authority, the
“Qualifying Authorities”) of each of the other provinces of Canada (including
Ontario, collectively, the “Qualifying Provinces”) in accordance with National
Instruments 44-101 and 44-102, a preliminary short form base shelf prospectus
dated November 1, 2007 relating to debt securities (in the English and French
languages).
The Company has also prepared and filed
with the Qualifying Authorities, in accordance with National Instruments 44-101
and 44-102, a final short form base shelf prospectus dated November 8, 2007
relating to debt securities (in the English and French languages, as applicable,
the “Final Prospectus”) and has obtained from the Reviewing Authority an MRRS
Decision Document for the Final Prospectus for and on behalf of itself and each
of the other Qualifying Authorities pursuant to National Policy 43-201 ─
Mutual Reliance Review System for Prospectuses and Annual Information
Forms.
The Company has filed with the
Qualifying Authorities in accordance with the Shelf Procedures, a preliminary
prospectus supplement dated May 21, 2009 to the Final Prospectus (the
“Preliminary Supplement”) in the Qualifying Provinces in both the English and
French languages.
The Company will prepare and use its
best efforts to file with the Qualifying Authorities, in accordance with the
Shelf Procedures on May 21, 2009, and in any event within the earlier of: (A)
the date the final prospectus supplement to the Final Prospectus (the “Final
Supplement”) is first sent or delivered to a purchaser; and (B) two Business
Days after the execution and delivery of this Agreement, the Final Supplement,
in both the English and French languages, setting forth the Shelf Information
(as defined below).
The information, if any, included in
the Final Supplement that is omitted from the Final Prospectus but that is
deemed under the Shelf Procedures to be incorporated by reference into the Final
Prospectus as of the date of the Final Supplement is referred to as the “Shelf
Information”.
The Final Prospectus for which an MRRS
Decision Document has been obtained from the Qualifying Authorities, including
the documents incorporated by reference therein at the applicable time, is
herein referred to as the “Prospectus”, except that when a Final Supplement is
(a) furnished to the Agents for use in connection with the offering of the
Securities in Canada or (b) filed with the Reviewing Authority and all other
Qualifying Authorities, the term “Prospectus” shall also include the Final
Supplement.
Section
1. Representations and
Warranties.
(a) The
Company and each Guarantor jointly and severally represents and warrants to, and
agrees with, each Agent as set forth below in this Section 1.
(i) The Company is eligible under the Shelf
Procedures to file and to use a short form base shelf prospectus for a
distribution of the Securities in each of the Qualifying Provinces; the Final
Prospectus has been filed with the Qualifying Authorities; an MRRS Decision
Document has been obtained from the Reviewing Authority, on behalf of itself and
each of the other Qualifying Authorities, in respect of the Final Prospectus;
and no order suspending the distribution of the Securities has been issued by
the Qualifying Authorities or any other regulatory authority or court, and no
proceeding for that purpose has been initiated or, to the Company’s knowledge,
is pending or threatened or contemplated by the Qualifying Authorities or any
other regulatory authority or court.
(ii) At
the time the Reviewing Authority issued an MRRS Decision Document in respect
thereof, the Final Prospectus conformed in all material respects with
all applicable securities laws in each of the Qualifying Provinces and the
respective rules and regulations under such laws (including, without limitation,
the Shelf Procedures), together with applicable published policy statements,
instruments, blanket orders, blanket rulings and applicable notices of the
Qualifying Authorities (the “Canadian Securities Laws”).
(iii) At
the time the Final Supplement is first made available to the Agents pursuant to
this Agreement, on the date the Final Supplement is filed and on the Closing
Date, the Prospectus will conform in all material respects with the applicable
requirements of Canadian Securities Laws; and, on the date of filing of the
Preliminary Supplement, the Preliminary Prospectus constituted full, true and
plain disclosure of all material facts (other than the Shelf Information)
relating to the Company, the Securities and the Guarantees and did not contain
an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading; and,
on the date of filing of the Final Supplement and on the Closing Date, the
Prospectus will constitute full, true and plain disclosure of all material facts
relating to the Company, the Securities and the Guarantees and will not contain
an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading; provided, however, that the
Company makes no representations or warranties as to the information contained
in or omitted from the Preliminary Prospectus or the Prospectus, based upon and
in conformity with information furnished in writing to the Company by or on
behalf of any Agent specifically for inclusion therein.
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(iv) The
Company is a reporting issuer not in default of Canadian Securities Laws (where
such concept exists) and is in compliance with its obligations thereunder in all
material respects.
(v) There
are no reports or information that in accordance with Canadian Securities Laws
must be filed or made publicly available in connection with the offering of the
Securities that have not been made publicly available or filed, as required
(other than reports or information required to be filed or made public after the
date hereof pursuant to the Shelf Procedures).
(vi) The
statements in the Prospectus under the headings “Certain Canadian Federal Income
Tax Considerations”, “Description of Debt Securities”, “Description of the
Notes” and “Statutory Rights of Withdrawal and Rescission” insofar as such
statements summarize legal matters, agreements, documents or proceedings
discussed therein, are accurate and fair summaries of such legal matters,
agreements, documents or proceedings.
(vii) The
documents incorporated by reference in the Prospectus, when they were filed with
the Qualifying Authorities, conformed in all material respects with the
applicable requirements of Canadian Securities Laws; and any other documents so
filed and incorporated by reference in the Prospectus or any amendment or
supplement thereto after the date hereof but prior to the termination of the
distribution of the Securities, when such documents are filed with the
Qualifying Authorities, will conform in all material respects with the
applicable requirements of Canadian Securities Laws.
(viii) KPMG
LLP, who are reporting upon the audited financial statements of the Company
incorporated into the Prospectus, are the auditors of the Company and are
independent with respect to the Company within the meaning of the Business Corporations Act
(British Columbia) and applicable Canadian Securities Laws.
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(ix) The
Company and each Guarantor has full corporate power and authority to execute,
deliver and perform its obligations under this Agreement and the
Indenture.
(x) The
consolidated financial statements, including the notes thereto, incorporated
into the Prospectus present fairly the consolidated financial position of the
Company and its subsidiaries as of the dates indicated, and the consolidated
results of operations and changes in financial position of the Company and its
subsidiaries for the periods specified. Such financial statements
have been prepared in conformity with Canadian generally accepted accounting
principles as in effect during each such period, in each case applied on a
consistent basis throughout the periods involved (except as otherwise set forth
in such statements). The Company’s selected financial and operating
data included in the Prospectus (including the selected financial data of the
Guarantors and the other subsidiaries of the Company) present fairly the
information shown therein and have been compiled on a basis consistent with that
of the audited or unaudited, as applicable, consolidated financial statements
incorporated into the Prospectus from which they were derived except as noted
therein.
(xi) The
Company has been duly amalgamated and is validly existing as a
corporation under the Business
Corporations Act (British Columbia), with corporate power and authority
to own its properties and conduct its business as described in the Prospectus,
and the Company is duly qualified as an extra-provincial corporation for the
transaction of business under the laws of each other jurisdiction in which it
owns or leases properties, or conducts any business, so as to require such
qualification, except, in each case, where the failure to so qualify in any
jurisdiction is not reasonably likely, individually or in the aggregate, to have
a material adverse effect on the condition (financial or otherwise), earnings or
business affairs of the Company and its subsidiaries, considered as one
enterprise (a “Material Adverse Effect”).
(xii) Each
Significant Subsidiary has been duly organized and is validly existing as a
corporation or partnership under the laws of the jurisdiction of its
organization, with the corporate or partnership power and authority to own its
properties and conduct its business as described in the Prospectus, and each
Significant Subsidiary is duly qualified to transact business in each
jurisdiction in which the conduct of its business or its ownership or leasing of
property requires such qualification, except, in each case, where the failure to
so qualify in any jurisdiction, is not reasonably likely, individually or in the
aggregate, to have a Material Adverse Effect.
(xiii) All
of the issued and outstanding shares of the Company have been duly and validly
authorized and issued. All of the issued shares of each Significant
Subsidiary that is a corporation have been duly and validly authorized and
issued and are fully paid and non-assessable and such shares are owned, directly
or indirectly, by the Company, free and clear of all liens, encumbrances,
equities or claims except as set forth in the Prospectus. All of the
issued and outstanding partnership interests of each Significant Subsidiary that
is a partnership have been duly and validly created and are owned, directly or
indirectly, by the Company free and clear of all liens, encumbrances, equities
or claims except as set forth in the Prospectus.
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(xiv) Neither
the Company nor any of its Significant Subsidiaries has sustained since the date
of the latest audited financial statements included in the Prospectus any
material loss or interference with its business from fire, explosion, flood or
other calamity, whether or not covered by insurance, or from any labor dispute
or court or governmental action, order or decree, otherwise than as set forth or
contemplated in the Prospectus; and, since the date as of which information is
given in the Prospectus otherwise than as stated therein or contemplated
thereby, there has not been any material adverse change in the condition
(financial or otherwise), earnings or business affairs of the Company and its
subsidiaries, considered as one enterprise, whether or not arising in the
ordinary course of business (a “Material Adverse Change”).
(xv) Neither
the Company nor any Significant Subsidiary is (A) in violation of its articles,
by-laws or other constating documents or (B) in default in the performance or
observance of any obligation, agreement, covenant or condition contained in any
contract, indenture, mortgage, loan agreement, note, lease or other agreement or
instrument to which it is a party or by which it maybe bound or to which any of
its properties and assets may be subject, except in the case of clause (B) for
such defaults that are not reasonably likely, individually or in the aggregate,
to have a Material Adverse Effect. The execution and delivery of this
Agreement and the Indenture, the incurrence of the obligations herein and
therein set forth, the consummation of the transactions contemplated in this
Agreement and the Indenture and compliance with the terms thereof have been duly
authorized by all necessary corporate action on the part of the Company and each
Guarantor, do not and will not result in any violation of the articles, by-laws
or other constating documents of the Company or any Significant Subsidiary and
do not and will not conflict with, or result in a breach of any of the terms or
provisions of, or constitute a default (or an event that with notice or lapse of
time, or both, would constitute a default or permit acceleration) under, or
result in the creation or imposition of any lien, charge or encumbrance upon any
property or assets of the Company or any Significant Subsidiary under (1) any
indenture, mortgage, loan agreement, note, lease or other agreement or
instrument to which the Company or any Significant Subsidiary is a party or by
which they may be bound or to which any of their properties or assets may be
subject or (2) any existing applicable law, rule, regulation, judgment,
franchise, order or decree of any government, governmental instrumentality or
court, domestic or foreign, having jurisdiction over the Company or any
Significant Subsidiary or any of their respective properties or assets (other
than, as described in the Prospectus, and except in each case for such
conflicts, violations, breaches, defaults, liens, charges or encumbrances that
are not reasonably likely, individually or in the aggregate, to have a Material
Adverse Effect).
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(xvi) No
consent, approval, authorization,
order, permit, license, registration, clearance or qualification of, or with any
court or regulatory, administrative or other governmental body of Canada
or any province of Canada or under any statute, order, rule or regulation of
any such regulatory, administrative or other governmental body is
required in connection with the transactions contemplated herein, except such as
(1) have been made or obtained under Canadian Securities Laws and (2) will be
made or obtained prior to the Closing Date under Canadian Securities
Laws.
(xvii) Except
as otherwise disclosed in the Prospectus, all material tax returns required to
be filed by the Company and each Significant Subsidiary have been filed, other
than any filings not yet due or being contested in good faith, and all material
taxes, including withholding taxes, penalties and interest, assessments, fees
and other charges due pursuant to such returns or pursuant to any assessment
received by the Company or any Significant Subsidiary have been paid, other than
those not yet payable or being contested in good faith and for which adequate
reserves have been provided.
(xviii) Except
as disclosed in the Prospectus, there is no action, suit or proceeding before or
by any government, governmental instrumentality or court, domestic or foreign,
now pending or, to the knowledge of the Company, threatened against or affecting
the Company or its subsidiaries that is reasonably likely, individually or in
the aggregate, to result in any Material Adverse Effect.
(xix) The
Company and each Significant Subsidiary has good and marketable title to all of
its respective properties and assets described in the Prospectus (excluding
those properties and assets described in the Prospectus as being owned by other
parties), owned free and clear of all liens, charges, encumbrances or
restrictions, with only such exceptions as are described in the Prospectus or
that are not reasonably likely, individually or in the aggregate, to have a
Material Adverse Effect; and all of the leases and subleases that are material
to the business of the Company or any Significant Subsidiary and under which the
Company or any Significant Subsidiary, as the case may be, holds properties
described in the Prospectus, are in full force and effect with only such
exceptions that are not reasonably likely, individually or in the aggregate, to
have a Material Adverse Effect.
(xx) Except
as disclosed in the Prospectus, the Company and each Significant Subsidiary
currently holds in good standing all material permits, licenses, franchises and
approvals of governmental authorities and agencies necessary for the present
use, ownership and operation of their respective businesses, including all
permits, licenses, franchises and approvals required pursuant to the Broadcasting Act (Canada),
the Telecommunications
Act (Canada), the Canadian Radio-television and
Telecommunications Commission Act (Canada), the Radiocommunication Act
(Canada) and the Copyright
Act (Canada) or other statutes of Canada specifically relating to the
regulation of either or both of the Canadian broadcasting and/or
telecommunications industries and the orders, rules, regulations and directions
promulgated pursuant to such statutes, including the Broadcasting Distribution
Regulations, 1998, the Specialty Service Regulations,
1990, as amended, the Television Broadcasting Regulations,
1987, as amended, the Radio Regulations, 1986, as
amended, the Pay Television
Regulations, 1990, as amended, or any statutes or regulations of any
province specifically relating to the regulation of either or both of the
Canadian broadcasting and telecommunications industries and the orders, rules,
regulations and directions promulgated thereunder (collectively, the
“Communications Statutes”) (except where the failure to do so is not reasonably
likely, individually or in the aggregate, to have a Material Adverse Effect),
and no revocation or limitation of any such permit, license, franchise or
approval is pending or, to the knowledge of the Company, threatened and neither
the Company nor any Significant Subsidiary is in default or violation of any
Communications Statute or any such permit, license, franchise or approval
(except where such revocation, limitation, default or violation is not
reasonably likely, individually or in the aggregate, to have a Material Adverse
Effect), and the authorization, issuance and delivery of the Securities and the
compliance by the Company and the Guarantors with the terms of this Agreement
and the Indenture do not and will not conflict with, or constitute a default
under, any Communications Statute or any such permits, licenses, franchises and
approvals, including terms or provisions thereof relating to the maintenance of
specified levels of Canadian ownership, as applicable. The Company
and its Significant Subsidiaries, as applicable, are in compliance with the
applicable Canadian ownership requirements of the Communications
Statutes. Except as disclosed in the Prospectus, to the knowledge of
the Company, there is no threatened or pending change in any Communications
Statute that is reasonably likely, individually or in the aggregate, to have a
Material Adverse Effect.
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(xxi) The
Company and each Significant Subsidiary owns or possesses, or can acquire on
reasonable terms, adequate patents, patent licenses, trademarks, service marks
and trade names necessary to carry on its business as presently conducted, and
neither the Company nor any Significant Subsidiary has received any notice of
infringement of or conflict with asserted rights of others with respect to any
patents, patent licenses, trademarks, service marks or trade names that in the
aggregate, if the subject of an unfavorable decision, ruling or finding, is
reasonably likely, individually or in the aggregate, to have a Material Adverse
Effect.
(xxii) The
Company has not, and no Guarantor has, taken, directly or indirectly, any action
designed to, or that might be reasonably expected to, cause or result in
stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Securities.
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(xxiii) This
Agreement has been duly authorized, executed and delivered by the Company and
each Guarantor and constitutes a valid and binding obligation of the Company and
each Guarantor enforceable against the Company and each Guarantor, as
applicable, in accordance with its terms, except as enforcement thereof may be
limited by bankruptcy, insolvency, moratorium, fraudulent conveyance,
reorganization or other similar laws affecting enforcement of creditors’ rights
generally and except as enforcement thereof is subject to general principles of
equity (regardless of whether enforcement is considered in a proceeding in
equity or at law) including the limitation that rights of indemnity,
contribution and waiver may be limited by applicable laws.
(xxiv) The
Base Indenture has been duly authorized by the Company and, when duly executed
and delivered by the Company and the Trustee, will constitute (and the
Supplemental Indenture, which has been duly authorized by the Company and each
Guarantor, when duly executed and delivered by the Company, each Guarantor and
the Trustee, as applicable, will constitute) a valid and binding obligation of
the Company and each Guarantor enforceable against the Company and each
Guarantor, as applicable, in accordance with its terms, except as enforcement
thereof may be limited by bankruptcy, insolvency, moratorium, fraudulent
conveyance, reorganization or other similar laws affecting enforcement of
creditors’ rights generally and except as enforcement thereof is subject to
general principles of equity (regardless of whether enforcement is considered in
a proceeding in equity or at law); the Base Indenture and the Supplemental
Indenture will conform in all material respects to the description thereof
contained in the Prospectus; no registration, filing or recording of the
Indenture under the laws of Canada or any province thereof is necessary in order
to preserve or protect the validity or enforceability of the Indenture or the
Securities issued thereunder; all legal requirements under the Business Corporations Act
(Ontario) and the Business
Corporations Act (British Columbia) have been complied with, or will have
been complied with no later than the time of delivery of the Securities by the
Company, in respect of the issue, authentication (when duly countersigned by the
Trustee) and delivery of the Securities.
(xxv) The
Securities have been duly authorized by the Company and, when executed,
authenticated, issued and delivered in the manner provided for in the Indenture
and sold and paid for as provided in this Agreement, will constitute valid and
binding obligations of the Company, enforceable against the Company in
accordance with their terms, except as enforcement thereof may be limited by
bankruptcy, insolvency, moratorium, fraudulent conveyance, reorganization or
other similar laws affecting enforcement of creditors’ rights generally and
except as enforcement thereof is subject to general principles of equity
(regardless of whether enforcement is considered in a proceeding in equity or at
law); the holders of the Securities will be entitled to the benefits of the
Indenture, including the Guarantees; and the Securities conform in all material
respects to the description thereof contained in the Prospectus.
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(xxvi) The
Company maintains a system of internal accounting controls sufficient to provide
reasonable assurance that: (i) transactions are executed in accordance with
management’s general or specific authorizations; (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain asset accountability;
(iii) access to assets is permitted only in accordance with management’s general
or specific authorization; and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences. The Company’s internal controls over
financial reporting are effective and the Company is not aware of any material
weakness in its internal control over financial reporting.
(xxvii) The
Company maintains disclosure controls and procedures as contemplated by the
certifications required under Form 52-109F1 and Form 52-109F2 under
National Instrument 52-109 and such controls and procedures are
effective.
(b) Any
certificate signed by any officer of the Company or any Guarantor and delivered
to the Agents or their counsel in connection with the offering of the Securities
by this Agreement shall be deemed a representation and warranty by the Company
or any such Guarantor, as applicable, to each Agent as to the matters covered
thereby.
Section
2. Issuance of the
Securities. The Company agrees to create and issue the
Securities and appoint the Agents as its sole and exclusive agents to offer for
sale on a best efforts basis in reliance on the representations and warranties
herein contained, and upon and subject to the terms and conditions stated in
this Agreement, up to $1.0 billion principal amount of 5.80% Senior Notes due
2016 at a price of $997.67 per $1,000 principal amount.
The Company understands that the Agents
or their affiliates will offer the Securities for sale on a best efforts basis,
on behalf of the Company, in the Qualifying Provinces.
The Agents agree to offer the
Securities only in accordance with, and in a manner permitted by, the laws of
each jurisdiction in which such Securities are permitted to be offered, as
described under “Plan of Distribution” in the Final Supplement and subject to
the restrictions contained in Section 4 of this Agreement. The Agents
further agree, upon receipt of the same from the Company, to send a copy of all
amendments to the Prospectus to all persons to whom copies of the Prospectus are
sent.
Section
3. Delivery and
Payment. Payment for the Securities shall be made by the
Agents on behalf of purchasers who have agreed to purchase Securities by wire
transfer in immediately available funds to the account specified by the Company
to the Agents, which notification shall be no later than noon on the Business
Day prior to the date of payment, such payment to be made on the date and at the
time and place set forth in Schedule I hereto (or at such other time and place
on the same or such other date, not later than the third Business Day (as
defined below) thereafter, as the Agents and the Company may agree in writing).
The time and date of such payment and delivery with respect to the Securities
are referred to herein as the “Closing Date”.
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Payment for the Securities shall be
made against delivery to the nominee of the depositary specified in Schedule I
hereto for the respective accounts of the several Agents of one or more global
notes (the “Global Notes”) representing the Securities, with any stamp or
transfer taxes payable in connection with the transfer to purchasers of the
Securities duly paid by the Company. The Global Notes will be made
available for inspection by the Agents at the office of Davies Xxxx Xxxxxxxx
& Xxxxxxxx LLP, 0 Xxxxx Xxxxxxxx Xxxxx, Xxxxx 0000, Xxxxxxx,
Xxxxxxx X0X 0X0 not later than 3:00 p.m. Toronto time, on the
Business Day prior to the Closing Date.
In return for the Agents’ services in
acting as financial advisors to the Company, in assisting in the preparation of
the Preliminary Supplement and the Final Supplement (and any Prospectus
amendments), in advising on the final terms and conditions of the Securities,
participating in and managing the sale of the Securities, in distributing the
Securities, both directly and to other registered dealers and brokers, and in
performing administrative work in connection with the distribution of the
Securities, the Company agrees to pay to the Agents at the Closing Date a fee of
$3.70 per $1,000 principal amount of the Securities actually
sold. RBC Dominion Securities Inc. and TD Securities Inc. shall each
be entitled to receive 3% of the aggregate fee paid by the Company (the “Fee”),
and thereafter each Agent (including RBC Dominion Securities Inc. and TD
Securities Inc.) shall be entitled to receive that proportion of the remainder
of the Fee equal to the percentage listed opposite its name in Schedule
II.
Section
4. Offering by
Agents. It is understood that the several Agents propose to
offer the Securities for sale to the public as set forth in the Prospectus and
Section 2 of this Agreement.
In addition, in connection with the
distribution of the Securities, each Agent (i) represents that it has not
offered or sold, directly or indirectly, and agrees that it will not, directly
or indirectly, offer, sell or deliver, any of the Securities in or to the United
States, its territories and its possessions or to, or for the account or benefit
of, a “U.S. person” (as defined in Regulation S under the U.S. Securities Act of 1933, as
amended) and (ii) agrees that it will include a comparable provision to clause
(i) above of this Section 4 in any sub-underwriting, banking group or selling
group agreement or similar arrangement with respect to the Securities that may
be entered into by such Agent.
Section
5. Certain Covenants of the
Company and each Guarantor. The Company and each Guarantor
covenants with each Agent as follows:
(a) Prior
to the termination of the distribution of the Securities, the
Company will not file any amendment to the Prospectus unless the
Company has furnished you a copy for your review prior to filing and, except to
the extent required for the Company to comply in a timely manner with its timely
disclosure obligations under applicable securities legislation and the
requirements of any relevant stock exchange or otherwise required by law, rules
or regulations applicable to the Company, will not file any such proposed
amendment or supplement to which you reasonably object promptly after being
furnished a copy thereof. The Company will cause the Prospectus, properly
completed, to be filed in a form
approved by the Agents with the Qualifying Authorities in accordance with the
Shelf Procedures and the provisions of the third paragraph immediately preceding Section
1 of this Agreement. The Company will promptly advise the Agents (i) when
the Final Supplement shall have been filed with the Qualifying Authorities, (ii)
when any amendment or supplement to the Prospectus shall have been filed with
the Qualifying Authorities or of any request by the Qualifying Authorities for
any amendment or supplement to the Prospectus, in each case, if such amendment
or supplement relates to, or directly affects, the Securities or the offering or
sale thereof, (iii) for so long as delivery of the Prospectus is required in
connection with the offering or sale of the Securities by the Agents in
compliance with the terms of this Agreement, of the issuance by the Qualifying
Authorities of any order suspending the use of any prospectus relating to the
Securities or of any notice objecting to its use or the institution or,
to the Company’s knowledge, threatening of any proceeding for that purpose and
(iv) prior to the termination of the distribution of the Securities, of the
receipt by the Company of any notification with respect to the suspension of the
qualification or distribution of the Securities for sale in any of the
Qualifying Provinces or the institution or, to the Company’s knowledge,
threatening of any proceeding for such purpose. Prior to the
termination of the distribution of the Securities, the Company will use its
commercially reasonable efforts to prevent the issuance of any such order or the
occurrence of any such suspension or objection to the use of any prospectus relating to the
Securities and, upon such issuance, occurrence or notice of objection, to
obtain as soon as possible the withdrawal of such order or relief from such
occurrence or objection, including, if necessary, by filing an amendment to the
Prospectus and using its commercially reasonable efforts to have such amendment
declared effective and a receipt issued therefor by the Qualifying Authorities
as soon as practicable.
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(b) The
Company will furnish to the Agents, without charge: (i) at the time of filing of
the Final Supplement, a copy of the Prospectus (and any supplements or
amendments thereto) printed in the English language signed on behalf of the
Company, the Guarantors and its and their officers, directors and
representatives in the manner required by the Canadian Securities Laws, together
with any contract or documentation supplemental thereto required to be filed
under the applicable laws of any of the Canadian provinces; (ii) at the time of
filing of the Final Supplement with the Quebec Securities Commission, a copy of
the Prospectus (and any supplements or amendments thereto) printed in the French
language signed on behalf of the Company, the Guarantors and its and their
officers, directors and representatives in the manner required by the laws of
the Province of Quebec, together with any contract or documentation supplemental
thereto required to be filed under the applicable laws of the Province of
Quebec; and (iii) during the period mentioned in paragraph (d) below, the
Agents’ reasonable requirements of commercial copies of the Prospectus (and any
supplements or amendments thereto) printed in the English and French languages,
as applicable.
(c) If,
at any time prior to the filing of the Final Supplement, any event occurs as a
result of which the Preliminary Prospectus would include an untrue statement of
a material fact or omit to state a material fact required to be stated or that
is necessary in order to make the statement therein in light of the
circumstances under which they were made, not misleading, including a material
change within the meaning of Canadian Securities Laws, the Company will (i)
notify promptly the Agents so that any use of the Preliminary Prospectus may
cease until it is amended or supplemented, (ii) amend or supplement the
Preliminary Prospectus to correct such statement or omission, (iii) to the
extent applicable, use its commercially reasonable efforts to have any such
amendment filed and a receipt issued therefor by the Qualifying Authorities as
soon as practicable, and (iv) supply any amendment or supplement to you in such
quantities as you may reasonably request.
11
(d) If,
at any time before the later of (x) the Closing Date and (y) when a prospectus
relating to the Securities is required to be delivered by an Agent or dealer in
connection with its distribution of the Securities hereunder under Canadian
Securities Laws, any event occurs as a result of which the Prospectus as then
supplemented or amended would include any untrue statement of a material fact or
omit to state any material fact required to be stated or that is necessary in
order to make the statements therein in the light of the circumstances under
which they were made at such time not misleading, or if it shall be necessary,
in the opinion of counsel to the Agents, the Company or its counsel, to amend or
supplement the Prospectus to comply with applicable Canadian Securities Laws
(including as a result of a material change), including in connection with use
or delivery of the Prospectus, the Company promptly will (i) notify the Agents
of any such event, (ii) prepare and file with the Qualifying Authorities an
amendment or supplement, as applicable, which will correct such statement or
omission or effect such compliance, (iii) to the extent applicable, use its
commercially reasonable efforts to have a receipt issued for any such amendment
by the Qualifying Authorities as soon as practicable, and (iv) supply
copies of any supplemented or amended Prospectus to you in such quantities as
you may reasonably request. The Company will pay all costs and
expenses incident to complying with this Section 5(d).
(e) Until
the distribution of the Securities is completed, the Company will file all
documents required to be filed with the Reviewing Authority and the other
Qualifying Authorities under applicable Canadian Securities Laws.
(f) The
Company will fulfill and comply with, as soon as possible and in any event not
later than the earlier of: (i) the date the Final Supplement is first sent to a
purchaser; and (ii) two Business Days after the execution and delivery of this
Agreement, the Canadian Securities Laws required to be fulfilled or complied
with to enable the Securities to be lawfully distributed in the Qualifying
Provinces through the Agents or any other investment dealers or brokers
registered as such in the Canadian provinces and acting in accordance with the
terms of their registrations and the Canadian Securities Laws.
(g) During
the period beginning on the date hereof and continuing to and including the
Business Day following the Closing Date, the Company will not, without the prior
written consent of RBC Dominion Securities Inc. and TD Securities Inc., offer,
sell, contract to sell or otherwise dispose of any debt securities issued or
guaranteed by the Company (or securities convertible into debt securities issued
or guaranteed by the Company) (other than the Securities) which are
substantially similar to the Securities. The foregoing sentence shall
not apply to (i) debt securities that mature not more than one year from their
date of issue and (ii) any debt securities issued to any of the Company’s
subsidiaries or affiliates.
12
(h) The
Company will use the net proceeds received by it from the sale of the Securities
in the manner specified in the Prospectus.
(i) The
Company will not, and no Guarantor will, take, directly or indirectly, any
action designed to, or that might be reasonably expected to, cause or result in
stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Securities.
Section
6. Payment of
Expenses. Whether or not the transactions contemplated in this
Agreement are consummated or this Agreement is terminated, the Company will pay
or cause to be paid all costs and expenses incident to the performance of the
Company’s and the Guarantors’ obligations under this Agreement, the Securities
and the Indenture, including without limiting the generality of the foregoing,
(a) the fees and disbursements of counsel to the Agents; (b) all costs and
expenses incident to (i) the preparation, printing (or reproduction) and filing
with the Qualifying Authorities of the Prospectus and the Preliminary
Prospectus, and each amendment or supplement to any of them; (ii) the printing
(or reproduction) and delivery (including postage, air freight charges and
charges for counting and packaging) of such copies of the Preliminary Prospectus
and the Prospectus, and all amendments or supplements to any of them, as may, in
each case, be reasonably requested for use in connection with the offering and
sale of the Securities; and (iii) the preparation, printing, authentication,
issuance and delivery of certificates for the Securities, including any stamp or
transfer taxes in connection with the original issuance and sale of the
Securities; (c) the fees and expenses of the Company’s accountants and the fees
and expenses of counsel (including local and special counsel) for the Company
and the Guarantors; (d) any fees charged by investment rating agencies for the
rating of the Securities and (e) all other costs and expenses incident to the
performance by the Company and each Guarantor of its obligations
hereunder.
Without limitation to the foregoing, if
this Agreement is terminated by the Agents in accordance with the provisions of
Section 7 or Section 11, the Company agrees to reimburse the Agents for all
their reasonable out-of-pocket expenses, including the reasonable fees and
disbursements of their counsel.
Section
7. Conditions of the Agents’
Obligations. The several obligations of the Agents hereunder
shall be subject to the accuracy of the representations and warranties on the
part of the Company and each Guarantor contained herein on and as of the Closing
Date as if made on and as of the Closing Date, to the accuracy of the statements
of the Company and each Guarantor made in any certificates pursuant to the
provisions hereof, to the performance by the Company and each Guarantor of its
obligations hereunder at or prior to the Closing Date and to the following
additional conditions:
(a) The
Final Supplement shall have been filed with the Reviewing Authority and the
other Qualifying Authorities under the Shelf Procedures; and no order suspending
the use of any prospectus relating to the Securities or of any notice objecting
to its use shall have been issued and no proceedings for that purpose shall have
been instituted or threatened.
13
(b) At
the Closing Date, each Agent shall have received a signed opinion of Osler,
Xxxxxx & Harcourt LLP, Canadian counsel for the Agents, dated as of the
Closing Date, with respect to such customary matters as the Agents may
reasonably require. In giving such opinion, such counsel may rely, as
to all matters governed by the laws of jurisdictions other than the Provinces of
Ontario, Quebec and Alberta and the federal laws of Canada applicable therein,
upon the opinions of counsel satisfactory to the Agents and as to legal matters
pertaining to the Company and the Guarantors upon the opinion of counsel for the
Company and the Guarantors. Such counsel may also state that, insofar
as such opinion involves factual matters, they have relied, to the extent they
deem proper, upon certificates of officers of the Company or the Guarantors and
upon certificates of public officials. Such counsel may further state
that they express no opinion as to the Communications Statutes and related
matters.
(c) At
the Closing Date, each Agent shall have received a signed opinion of Davies Xxxx
Xxxxxxxx & Xxxxxxxx LLP, Canadian counsel for the Company and the
Guarantors, dated as of the Closing Date, in a form and with respect to such
customary matters as may be reasonably satisfactory to the Agents and their
counsel. In giving such opinion, such counsel may rely, as to all
matters governed by the laws of jurisdictions other than the Provinces of
Ontario and Quebec and the federal laws of Canada applicable therein, upon the
opinions of counsel satisfactory to the Agents. Such counsel may also
state that, insofar as such opinion involves factual matters, they have relied,
to the extent they deem proper, upon certificates of officers of the Company or
the Guarantors and upon certificates of public officials. Such
counsel may further state that they express no opinion as to the Communications
Statutes and related matters.
(d) At
the Closing Date, each Agent shall have received a signed opinion of Cravath,
Swaine & Xxxxx LLP, United States counsel for the Company and the
Guarantors, dated as of the Closing Date, regarding enforceability of the
subordination agreement to be entered into simultaneously with the execution of
the Supplemental Indenture (as contemplated therein) and regarding
non-contravention of material agreements of the Company which are governed by
New York law.
(e) On
the respective dates of filing of the Preliminary Supplement and the Final
Supplement, each Agent shall have received an opinion of Davies Xxxx Xxxxxxxx
& Xxxxxxxx LLP, dated as of such respective filing dates, to the effect that
the French language version of the Preliminary Prospectus and the Prospectus
(excluding all other documents incorporated by reference therein, other than the
Preliminary Supplement and the Final Supplement, as applicable) is in all
material respects a complete and adequate translation of the English language
version of the Preliminary Prospectus and the Prospectus (excluding all other
documents incorporated by reference therein, other than the Preliminary
Supplement and the Final Supplement, as applicable).
(f) At
the Closing Date, each Agent shall have received an opinion of Davies Xxxx
Xxxxxxxx & Xxxxxxxx LLP, dated the Closing Date, regarding compliance with
all the laws of the Province of Quebec relating to the use of the French
language in connection with the distribution of the Securities.
14
(g) On
the respective dates of filing of the Preliminary Supplement and the Final
Supplement, each Agent shall have received (i) an opinion of Fasken Xxxxxxxxx
DuMoulin LLP, dated as of such respective filing dates, to the effect that the
French language version of all documents incorporated by reference in the
Preliminary Prospectus and the Prospectus, excluding the Preliminary Supplement
and the Final Supplement, as applicable (and excluding the audited consolidated
financial statements as at and for the years ended December 31, 2008 and 2007
and the Management’s Discussion and Analysis of Financial Condition and Results
of Operations in respect of those statements and the unaudited interim
consolidated financial statements as at March 31, 2009 and for the three months
ended March 31, 2009 and 2008 and the Management’s Discussion and Analysis of
Financial Condition and Results of Operations in respect of those statements
(collectively, the “Financial Information”)) is in all material respects a
complete and adequate translation of the English language version of all such
documents and (ii) an opinion of KPMG LLP, dated as of such respective filing
dates, to the effect that the French language version of the Financial
Information incorporated by reference in the Preliminary Prospectus and the
Prospectus is in all material respects a complete and adequate translation of
the English language version of all such Financial Information.
(h) At
the Closing Date, the Agents shall have received a certificate from Xxxxxxx X.
Xxxxxxxxx, Vice President, Regulatory of the Company, dated as of the Closing
Date, in form and substance satisfactory to the Agents and counsel for the
Agents, to the effect set forth in Annex A hereto. In delivering such
certificate, such officer may rely, to the extent he deems appropriate in the
circumstances, upon certificates of officers of the Company or the Guarantors
and upon certificates of public officials.
(i) At
the Closing Date, the Agents shall have received a certificate of any two Vice
Presidents of the Company, any Vice President of RWP and any Vice President of
RCCI, in each case dated as of the Closing Date, to the effect that the signers
of such certificate have examined the Prospectus and any supplements or
amendments thereto, and that, to the best of such signer’s knowledge and not in
a personal capacity, (1) the Prospectus, as amended or supplemented at the
Closing Date, does not contain an untrue statement of a material fact or omit to
state a material fact required to be stated or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading, (2) there has not been, since the date as of which information is
given in the Prospectus, any Material Adverse Change, (3) the Company, RWP or
RCCI, as applicable, has in all material respects complied with all agreements
and satisfied all conditions to be performed or satisfied by it under this
Agreement at or prior to the Closing Date and (4) the other representations and
warranties of the Company, RWP or RCCI, as applicable, set forth in Section 1(a)
hereof are true and correct as though expressly made at and as of the Closing
Date.
15
(j) On
the date hereof and at the Closing Date, the Agents each shall have received
from KPMG LLP a letter, in form and substance reasonably satisfactory to the
Agents, containing statements and information of the type ordinarily included in
accountant’s “comfort letters” to agents with respect to the financial
statements and certain financial information contained in the Preliminary
Prospectus and the Prospectus.
(k) Subsequent
to the execution and delivery of this Agreement and prior to the Closing Date,
there shall not have been any downgrading, nor any notice given of any intended
or potential downgrading or of a possible change that does not indicate the
direction of the possible change, in the rating accorded any of the Company’s
long term debt, including the Securities, by Standard and Poor’s Ratings Group,
a division of The XxXxxx-Xxxx Companies, Inc., Xxxxx’x Investors Service, Inc.,
Fitch IBCA or, in each case, any successor to the rating agency business
thereof.
(l) At
the Closing Date, counsel for the Agents shall have been furnished with all such
documents, certificates and opinions as they may reasonably request for the
purpose of enabling them to pass upon the issuance and sale of the Securities as
contemplated in this Agreement and the matters referred to in Section 7(b) and
in order to evidence the accuracy and completeness of any of the
representations, warranties or statements of the Company or the Guarantors, the
performance of any of the agreements of the Company or the Guarantors, or the
fulfillment of any of the conditions herein contained.
If any of the conditions specified in
this Section 7 shall not have been fulfilled when and as required by this
Agreement, this Agreement may be terminated by the Agents on notice to the
Company at any time at or prior to the Closing Date, and such termination shall
be without liability of any party to any other party except as provided in
Section 6 herein. Notwithstanding any such termination, the
provisions of Sections 1, 6, 8, 9 and 10 herein shall remain in
effect.
Section
8. Indemnification.
(a) The
Company and each Guarantor, jointly and severally, agrees to indemnify and hold
harmless each Agent and each of their respective directors, officers, employees,
agents and affiliates as follows:
(i) against
any and all loss, liability, claim, damage and expense whatsoever, as incurred,
arising out of any untrue statement or alleged untrue statement of a material
fact contained in the Preliminary Prospectus or the Prospectus, or in any
amendment thereof or supplement thereto, or the omission or alleged omission
therefrom of a material fact (other than omission of the Shelf Information in
the case of the Preliminary Prospectus) required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading;
(ii) against
any and all loss, liability, claim, damage and expense whatsoever, as incurred,
to the extent of the aggregate amount paid in settlement of any litigation, or
any investigation or proceeding by any governmental agency or body, commenced or
threatened, or of any claim whatsoever based upon any such untrue statement or
omission, or any such alleged untrue statement or omission; provided that any
such settlement is effected with the written consent of the Company and each
Guarantor; and
16
(iii) against
any and all expense whatsoever, as incurred (including the fees and
disbursements of counsel chosen by the Agents), reasonably incurred in
investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue statement or
omission, or any such alleged untrue statement or omission, to the extent that
any such expense is not paid under (i) or (ii) above;
provided, however, that this
indemnity agreement shall not apply to any loss, liability, claim, damage or
expense to the extent arising out of any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with
written information furnished to the Company or any Guarantor by any Agent
expressly for use in the Preliminary Prospectus or the Prospectus, or in any
amendment thereof or supplement thereto.
(b) Each
Agent, severally and not jointly, agrees to indemnify and hold harmless the
Company and each Guarantor, their respective directors, each of their respective
officers who signs the Prospectus and each of their respective agents against
any and all loss, liability, claim, damage and expense described in the
indemnity contained in subsection (a) of this Section, as incurred, but only
with respect to untrue statements or omissions, or alleged untrue statements or
omissions, made in the Prospectus, or in any amendment thereof or supplement
thereto, in reliance upon and in conformity with written information furnished
to the Company or any Guarantor by such Agent expressly for use in the
Prospectus, or in any amendment thereof or supplement thereto.
(c) Each
indemnified party shall give notice as promptly as reasonably practicable to
each indemnifying party of any action commenced against it in respect of which
indemnity may be sought hereunder, but failure to so notify an indemnifying
party shall not relieve such indemnifying party from any liability hereunder to
the extent it is not materially prejudiced as a result thereof and in any event
shall not relieve it from any liability which it may have otherwise than on
account of this Section 8. In the case of parties indemnified
pursuant to Section 8(a) above, counsel to the indemnified parties shall be
selected by the Agents, and, in the case of parties indemnified pursuant to
Section 8(b) above, counsel to the indemnified parties shall be selected by the
Company. An indemnifying party may participate at its own expense in
the defense of any such action; provided, however, that counsel
to the indemnifying party shall not (except with the consent of the indemnified
party) also be counsel to the indemnified party. In no event shall
the indemnifying parties be liable for fees and expenses of more than one
counsel (in addition to any local counsel) separate from their own counsel for
all indemnified parties in connection with any one action or separate but
similar or related actions in the same jurisdiction arising out of the same
general allegations or circumstances. No indemnifying party shall,
without the prior written consent of the indemnified parties, settle or
compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Section 8 or Section
9 hereof (whether or not the indemnified parties are actual or potential parties
thereto), unless such settlement, compromise or consent (i) includes an
unconditional release of each indemnified party from all liability arising out
of such litigation, investigation, proceeding or claim and (ii) does not include
a statement as to or an admission of fault, culpability or a failure to act by
or on behalf of any indemnified party.
17
(d) The
Company and the Guarantors acknowledge and agree that the Agents are contracting
on their own behalf and as agents for their directors, officers, employees
agents and affiliates pursuant to this Section 8.
Section
9. Contribution. If
the indemnification provided for in Section 8 hereof is for any reason
unavailable to or insufficient to hold harmless an indemnified party in respect
of any losses, liabilities, claims, damages or expenses referred to therein,
then each indemnifying party shall contribute to the aggregate amount of such
losses, liabilities, claims, damages and expenses incurred by such indemnified
party, as incurred, (i) in such proportion as is appropriate to reflect the
relative benefits received by the Company and the Guarantors on the one hand and
the Agents on the other hand from the offering of the Securities pursuant to
this Agreement or (ii) if the allocation provided by clause (i) is not permitted
by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of
the Company and the Guarantors on the one hand and of the Agents on the other
hand in connection with the statements or omissions which resulted in such
losses, liabilities, claims, damages or expenses, as well as any other relevant
equitable considerations.
The relative benefits received by the
Company and the Guarantors on the one hand and the Agents on the other hand in
connection with the offering of the Securities pursuant to this Agreement shall
be deemed to be in the same respective proportions as the total net proceeds
from the offering of the Securities pursuant to this Agreement (before deducting
expenses) received by the Company and the aggregate fee received by the Agents
pursuant to Section 3 of this Agreement bear to the aggregate initial public
offering price of the Securities.
The relative fault of the Company and
the Guarantors on the one hand and the Agents on the other hand shall be
determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by the Company or any
Guarantor or by the Agents and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or
omission.
The Company, the Guarantors and the
Agents agree that it would not be just and equitable if contribution pursuant to
this Section were determined by pro rata allocation (even if
the Agents were treated as one entity for such purpose) or by any other method
of allocation which does not take account of the equitable considerations
referred to above in this Section. The aggregate amount of losses,
liabilities, claims, damages and expenses incurred by an indemnified party and
referred to above in this Section shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in investigating,
preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any such untrue or alleged untrue statement or
omission or alleged omission.
18
Notwithstanding the provisions of this
Section or Section 8, no Agent shall be required to contribute any amount in
excess of the aggregate fee or any portion of such fee received by the Agents
pursuant to Section 3 of this Agreement.
The Agents’ respective obligations to
contribute pursuant to this Section are several in proportion to the principal
amount of the Securities set forth opposite their respective names in Schedule
II hereto and not joint.
The Company and the Guarantors
acknowledge and agree that the Agents are contracting on their own behalf and as
agents for their directors, officers, employees agents and affiliates pursuant
to this Section 9.
Section
10. Representations, Warranties
and Agreements to Survive Delivery.
The representations, warranties,
indemnities, agreements and other statements of the Company, the Guarantors or
the officers set forth in or made pursuant to this Agreement will remain
operative and in full force and effect regardless of any investigation made by
or on behalf of the Company, the Guarantors or any Agent or any controlling
person of any Agent and will survive delivery of and payment for the
Securities.
Section
11. Termination of
Agreement.
(a) Any
of the Agents may terminate this Agreement, by notice to the Company and each
Guarantor, at any time at or prior to the Closing Date, (i) if there has been,
since the time of execution of this Agreement or since the respective dates as
of which information is given in the Prospectus, any Material Adverse Change, or
(ii) if there has occurred any material adverse change in the financial markets
in the United States or Canada, any outbreak of hostilities or escalation
thereof or other calamity or crisis or any change or development involving a
prospective change in national or international political, financial or economic
conditions, in each case the effect of which is such as to make it, in the
judgment of the Agents, impracticable to proceed with the offering or delivery
of the Securities as contemplated by the Preliminary Prospectus or the
Prospectus (exclusive of any amendment or supplement thereto subsequent to the
date hereof), or (iii) if trading in any securities of the Company has been
suspended by any securities regulatory authority in Canada, or if trading
generally on the New York Stock Exchange or the Toronto Stock Exchange has been
suspended or materially limited, or minimum or maximum prices for
trading have been fixed, or maximum ranges for prices for securities have been
required by any such exchange or by order of any securities regulatory authority
in Canada, the New York Stock Exchange or the Toronto Stock Exchange or any
other governmental authority or (iv) if a banking moratorium has been declared
by United States federal, New York State or Canadian federal
authorities.
19
(b) If
this Agreement is terminated pursuant to this Section, such termination shall be
without liability of any party to any other party, except to the extent provided
in Section 6 hereof. Notwithstanding any such termination, the
provisions of Section 1, Section 6, Section 8, Section 9 and Section 10 hereof
shall remain in effect. The rights of termination contained in this
Section 11 may be exercised by any of the Agents and are in addition to any
other rights or remedies any of the Agents may have in respect of any default,
act or failure to act or non-compliance by the Company or the Guarantors in
respect of any of the matters contemplated by this Agreement or
otherwise. A notice of termination given by one Agent shall not be
binding upon any other Agent.
Section 12. Notices. All
communications hereunder will be in writing and effective only on receipt, and,
if sent to the Agents, will be mailed, delivered or telefaxed as noted on
Schedule II hereto, with copies to Osler, Xxxxxx & Harcourt LLP, 0 Xxxxx
Xxxxxxxx Xxxxx, Xxxxxxx, Xxxxxxx X0X 0X0, attention of Xxxxxx X. Xxxxx/Xxxxxxx
X. Xxxxx (fax no: (000) 000-0000); or, if sent to the Company or the Guarantors,
will be mailed, delivered or telefaxed to Xxxxxx Communications Inc., 000 Xxxxx
Xxxxxx Xxxx, Xxxxxxx, Xxxxxxx, Xxxxxx X0X 0X0, attention of the Vice Xxxxxxxxx,
Xxxxxxxxx, 0xx
Xxxxx (fax no.: (000) 000-0000), and the Senior Vice President, General
Counsel and Secretary, 9th
Floor (fax no.: (000) 000-0000) at such address, with copies to Davies Xxxx
Xxxxxxxx & Xxxxxxxx LLP, 1 First Canadian Place, 44th Floor,
P.O. Box 63, Toronto, Ontario M5X IB1, attention of D. Xxxxx
XxXxxxxxxx (fax no.: (000) 000-0000).
Section
13. No Fiduciary
Duty. The Company and each Guarantor hereby acknowledges that
(a) the sale of the Securities pursuant to this Agreement is an arm’s-length
commercial transaction between the Company and the Guarantors, on the one hand,
and the Agents, on the other, (b) the Agents are acting as agents and not as
fiduciaries of the Company or any Guarantor and (c) the Company’s engagement of
the Agents in connection with the offering and the
process leading up to the offering is as independent contractors and not in any
other capacity. Furthermore, the Company and each Guarantor agrees that it is
solely responsible for making its own judgments in connection with the offering
(irrespective of whether any of the Agents has advised or is currently advising
the Company or any Guarantor on related or other matters). The
Company and each Guarantor agrees that it will not claim that the Agents have
rendered advisory services of any nature or respect, or owe a fiduciary or
similar duty to the Company or any Guarantor, in connection with such
transaction or the process leading thereto.
Section
14. Integration. This Agreement supersedes all prior agreements
and understandings (whether written or oral) among the Company, the Guarantors
and the Agents, or any of them, with respect to the subject matter
hereof.
Section
15. Parties. This
Agreement is made solely for the benefit of the Company, the Guarantors and the
Agents and their respective directors, officers, employees, agents and
affiliates and their executors, administrators, successors and assigns and no
other person shall acquire or have any right under or by virtue of this
Agreement.
20
Section
16. Governing Law and
Time. This Agreement shall be governed by the laws of the
Province of Ontario and the federal laws of Canada applicable
therein. Specified times of the day refer to Toronto
time.
Section
17. Lead
Agents. RBC Dominion Securities Inc. and TD Securities Inc.
are hereby jointly authorized by each of the other Agents to act on its behalf
and the Company and the Guarantors shall be entitled to and shall act on any
notice given in accordance with this Section 17 or agreement entered into by or
on behalf of the Agents by RBC Dominion Securities Inc. and TD Securities Inc.
which represent and warrant that they have irrevocable authority to bind the
Agents, except in respect of any consent to a settlement pursuant to Section 8
which consent shall be given by the indemnified party or a notice of termination
pursuant to Section 11 which notice may be given by any of the
Agents. RBC Dominion Securities Inc. and TD Securities Inc. shall
consult with the other Agents concerning any matter in respect of which they act
as representatives of the Agents.
Section
18. Currency. All
references in this Agreement to dollars or $, unless otherwise specifically
indicated, are expressed in Canadian dollars.
Section
19. Counterparts. This
Agreement may be executed in one or more counterparts and by facsimile or
portable document format (PDF), and when a counterpart has been so executed by
each party, all such counterparts taken together shall constitute one and the
same agreement.
Section
20. Definitions. The
terms that follow, when used in this Agreement, shall have the meanings
indicated.
“Base Indenture” shall mean the
indenture to be dated as of the Closing Date between the Company and the
Trustee.
“Business Day” shall mean any
day other than a Saturday, a Sunday or a legal holiday or a day on which
banking institutions or trust companies are authorized or obligated by law to
close in Xxxxxxx, Xxxxxxx.
“Canadian Securities Laws” shall have
the meaning set forth in Section 1(a)(ii).
“Closing Date” shall have the meaning
set forth in Section 3 hereof.
“Communications Statutes” shall have
the meaning set forth in Section 1(a)(xx) hereof.
“Final Prospectus” shall mean the short
form base shelf prospectus of the Company filed with the Qualifying Authorities
for the offer and sale of up to $2,000,000,000 of debt securities, as most
recently amended, and for which a MRRS Decision Document was issued by the
Reviewing Authority on behalf of itself and the Qualifying
Authorities.
“Preliminary Prospectus” shall mean the
Final Prospectus, including the documents incorporated by reference therein at
the applicable time and as supplemented by the Preliminary Supplement, which is
used to offer the Securities prior to the filing of the Final
Supplement.
21
“Prospectus” shall have the meaning
given in the paragraph immediately preceding Section 1 of this
Agreement.
“Reviewing Authority” shall mean the
Ontario Securities Commission.
“Shelf Procedures” shall mean the rules
and procedures established under National Instrument 44-101 and National
Instrument 44-102 promulgated by the Canadian Securities Administrators and
adopted by the Qualifying Authorities for the distribution of securities on a
continuous or delayed basis.
“Significant Subsidiary” means each
significant subsidiary of the Company as defined by Rule 1-02 of
Regulation S-X as promulgated by the United States Securities and Exchange
Commission.
“Supplemental Indenture” shall mean the
supplement to the Base Indenture, establishing the terms of the
Securities.
“Trustee” shall mean CIBC Mellon Trust
Company.
Any reference herein to the Final
Prospectus, the Prospectus or the Preliminary Prospectus shall be deemed to
refer to and include the documents incorporated by reference therein at the
applicable time pursuant to Canadian Securities Laws; and any reference herein
to the terms “amend”, “amendment”, “amended”, “supplemented” or “supplement”
with respect to the Final Prospectus, the Prospectus or the Preliminary
Prospectus shall be deemed to include the filing of any document pursuant to
Canadian Securities Laws
after the issue date of the Final Prospectus, the Prospectus or the
Preliminary Prospectus, as the case may be, which filing is incorporated, or is
otherwise deemed to be incorporated, therein by reference.
22
If the foregoing is in accordance with
your understanding of our agreement, please sign and return to us the enclosed
duplicate hereof, whereupon this Agreement and your acceptance shall represent a
binding agreement among the Company, the Guarantors and the several
Agents.
|
Very
truly yours,
|
XXXXXX
COMMUNICATIONS INC.
|
|||
|
By
|
“Xxxxxxx X. Xxxxxx” | |
Name: Xxxxxxx X. Xxxxxx | |||
Title: Senior Vice President, Finance and Chief Financial Officer | |||
|
By
|
“M. Xxxxxxxx Xxxx” | |
Name: M. Xxxxxxxx Xxxx | |||
Title: Vice President, Treasurer | |||
XXXXXX
WIRELESS PARTNERSHIP
|
|||
|
By
|
“Xxxxxxx X. Xxxxxx” | |
Name: Xxxxxxx X. Xxxxxx | |||
Title: Senior Vice President | |||
|
By
|
“M. Xxxxxxxx Xxxx” | |
Name: M. Xxxxxxxx Xxxx | |||
Title: Vice President, Treasurer | |||
XXXXXX
CABLE COMMUNICATIONS
INC.
|
|||
|
By
|
“Xxxxxxx X. Xxxxxx” | |
Name: Xxxxxxx X. Xxxxxx | |||
Title: Senior Vice President | |||
|
By
|
“M. Xxxxxxxx Xxxx” | |
Name: M. Xxxxxxxx Xxxx | |||
Title: Vice President, Treasurer | |||
23
The
foregoing
Agreement is hereby confirmed
and
accepted as of the date first above written.
RBC
DOMINION SECURITIES INC.
|
|||
|
By
|
“Xxxxxx Xxxxxx Xxxxxxx” | |
Name: Xxxxxx Xxxxxx Xxxxxxx | |||
Title: Managing Director | |||
TD
SECURITIES INC.
|
|||
|
By
|
“Xxxxxx X.X. Xxxxxx” | |
Name: Xxxxxx X.X. Xxxxxx | |||
Title: Managing Director | |||
SCOTIA
CAPITAL INC.
|
|||
|
By
|
“Xxxxx X. Xxxxxxx” | |
Name: Xxxxx X. Xxxxxxx | |||
Title: Director | |||
BMO
XXXXXXX XXXXX INC.
|
|||
|
By
|
“Xxxxxx X. Xxxxxx” | |
Name: Xxxxxx X. Xxxxxx | |||
Title: Managing Director | |||
CIBC
WORLD MARKETS INC.
|
|||
|
By
|
“Xxxxxx Xxxxxxx” | |
Name: Xxxxxx Xxxxxxx | |||
Title: Managing Director | |||
24
SCHEDULE I
Title
of Securities:
|
5.80%
Senior Notes due 2016 (the “Notes”)
|
Aggregate
principal amount:
|
$1,000,000,000
|
Price
to Public:
|
$997.67
per $1,000 principal amount of Notes plus accrued interest, if any, from
May 26, 2009 to the date of delivery
|
Indenture:
|
An
indenture to be dated as of the original issue date of the Notes between
the Company and CIBC Mellon Trust Company, as trustee, as supplemented by
a supplemental indenture to be dated as of the original issue date of the
Notes
|
Maturity:
|
May
26, 2016
|
Interest
Rate:
|
5.80%
|
Interest
Payment Dates:
|
May
26 and November 26, commencing November 26, 2009
|
Optional
Redemption Provisions:
|
The
Notes will be redeemable to the extent set forth in the
Prospectus.
|
Change
of Control:
|
The
Indenture will include a Change in Control Triggering Event provision as
described in the Prospectus.
|
Sinking
Fund Provisions:
|
None
|
Global
Note Depositary:
|
CDS
Clearing and Depository Services Inc.
|
Closing
Date and Time of Delivery:
|
May
26, 2009 at 9:00 a.m., Toronto time
|
Closing
Location:
|
Davies
Xxxx Xxxxxxxx & Xxxxxxxx XXX, Xxxxx 0000, Xxxxxxx,
Xxxxxxx
|
SCHEDULE II
5.80% Senior Notes Due
2016
Agents
|
% |
RBC
Dominion Securities Inc.
|
30%
|
TD Securities
Inc.
|
30%
|
Scotia Capital
Inc.
|
20%
|
BMO Xxxxxxx Xxxxx
Inc.
|
10%
|
CIBC World Markets
Inc.
|
10%
|
ANNEX
A:
Form of
Officer Certificate
(i) Such officer does not know of any
Communications Statutes, or any pending or threatened legal or governmental
proceedings by or before any court or judicial or administrative board or
tribunal or any governmental body with respect to the regulation of the Canadian
cable television, wireless communications or telecommunications industries,
material to the operation of the business of the Company and its Significant
Subsidiaries, considered as one enterprise, that are not described or referred
to in the Prospectus.
(ii) To such officer’s knowledge, (A)
each of the Company and its Significant Subsidiaries currently holds in good
standing all permits, licenses, franchises and approvals of governmental
authorities and agencies necessary for the present use, ownership and operation
of its business required pursuant to the Communications Statutes and no
revocation or limitation of any such permit, license, franchise or approval is
pending or threatened (except where the failure to hold, or the revocation or
limitation of, such permit, license, franchise or approval would not,
individually or in the aggregate, have a Material Adverse Effect), (B) neither
the Company nor any of its Significant Subsidiaries are in default or in
violation of any such permit, license, franchise or approval (except where such
default would not, individually or in the aggregate, have a Material Adverse
Effect) and (C) the authorization, issuance and delivery of the Securities and
the compliance by the Company and the Guarantors with the terms of the Indenture
do not and, assuming there is no material change in existing circumstances from
the date hereof, will not, conflict with, or result in a breach of any of the
terms or provisions of, or constitute a default under, any of such permits,
licenses, franchises and approvals, including terms or provisions thereof
relating to the maintenance of specified levels of Canadian ownership of the
Company and its Significant Subsidiaries.
(iii) Each of the Company and its
Significant Subsidiaries are Canadian within the meaning of the Direction to the CRTC (Ineligibility
of Non-Canadians) and is therefore eligible under the Direction to be
issued broadcasting licenses pursuant to the Broadcasting Act (Canada) and
to receive amendments and renewals thereto. Each of the Company and
its Significant Subsidiaries are Canadian carriers within the meaning of the
Telecommunications Act
(Canada) and are therefore eligible under section 16 of the Act to
operate as a telecommunications common carrier in Canada. Each of the
Company and its Significant Subsidiaries are Canadian-owned and controlled
within the meaning of section 10 of the Radiocommunication
Regulations promulgated under the Radiocommunication Act (Canada)
and is therefore eligible to be issued radio licenses as a
radiocommunication carrier pursuant to the Act and to receive amendments and
renewals thereto.
(iv) Except as disclosed in the
Prospectus, to such officer’s knowledge, there is no threatened or pending
change in the Communications Statutes that could have a Material Adverse
Effect.
(v) The execution and delivery by the
Company and its Significant Subsidiaries of, and the compliance by the Company
and its Significant Subsidiaries with their respective obligations under the
Agency Agreement, the Securities, the Indenture and the Subordination Agreement
(as defined in the Indenture in respect of the Securities), and the consummation
of the transactions contemplated therein do not and, assuming there is no
material change in existing circumstances from the date hereof, will not, result
in any violation of, and do not and, assuming there is no material change in
existing circumstances from the date hereof, will not conflict with, or result
in a breach of any of the terms or provisions of, or constitute a default (or an
event which, with notice or lapse of time, or both, would constitute a default
or permit acceleration) under, or result in the creation or imposition of, any
lien, charge or encumbrance upon any properties or assets of the Company or its
Significant Subsidiaries under (A) any of the Communications Statutes or (B) to
such officer’s knowledge, any judgment, order or decree of any government,
governmental, regulatory or administrative agency, authority, commission or
instrumentality or court having jurisdiction, pursuant to the Communications
Statutes.
(vi) All material aspects of the
regulation of the cable television, wireless communications and
telecommunications industries as they pertain to the businesses of the Company
and its Significant Subsidiaries described in the Prospectus are subject to the
exclusive constitutional jurisdiction of the Parliament of Canada and hence are
governed by the laws of Canada.
(vii) No consent, approval, permit,
authorization, filing, recording, license, exemption, order, registration,
qualification or other requirement under the Communication Statutes or any
order, rule or regulation thereunder known to such officer and applicable to the
Company or its Significant Subsidiaries is required for the sale of the
Securities, the consummation of the transactions contemplated by the Agency
Agreement, the Securities, the Indenture and the Subordination Agreement (as
defined in the Indenture in respect of the Securities) or in connection with the
execution, delivery and performance by and enforcement against the Company or
its Significant Subsidiaries of any of the Securities, the Indenture or the
Subordination Agreement (as defined in the Indenture in respect of the
Securities), except such consents, approvals, permits, authorizations, filings,
recordings, licenses, exemptions, orders, registrations or qualifications as
have been obtained.
(viii) The statements which relate to
(A) the Communications Statutes, (B) governmental franchises and licenses issued
to the Company or its Significant Subsidiaries pursuant to the Communications
Statutes or otherwise issued in connection with the regulation of the Canadian
cable television, wireless communications or telecommunications industries and
(C) legal or other proceedings by or before any court or judicial or
administrative board or tribunal or other governmental proceedings with respect
to the regulation of the Canadian cable television, wireless communications or
telecommunications industries in the Prospectus, in each case, fairly summarize
the matters described therein and, to such officer’s knowledge, do not fail to
disclose a material fact concerning the subject matter
thereof.