EXECUTION VERSION
EXHIBIT 10.1
AMENDED AND RESTATED
TRANCHE A EXIT FACILITY AGREEMENT
THIS AMENDED AND RESTATED TRANCHE A EXIT FACILITY AGREEMENT (this
"Agreement") dated as of March 17, 2004 is entered into among Microcell
Telecommunications Inc., as Parent, Microcell Solutions Inc., as Borrower, the
financial institutions from time to time parties hereto as Lenders, JPMorgan
Chase Bank, Toronto Branch, as Administrative Agent, Collateral Agent and
Issuing Bank, and Credit Suisse First Boston, as syndication agent and joint
lead arranger. Reference is made to the Introductory Statements below and
Section 1.1 hereof for the definition of certain capitalized terms used herein.
INTRODUCTORY STATEMENTS:
A. Reference is made to that certain Tranche A Exit Facility Agreement
dated as of May 1, 2003 (the "Original Tranche A Exit Facility Agreement") among
the Parent, the Borrower, the financial institutions from time to time parties
thereto as lenders, and JPMorgan Chase Bank, Toronto Branch, as Administrative
Agent, Collateral Agent and Issuing Bank, which sets out the initial terms of
the Tranche A Exit Facility;
B. The parties to the Original Tranche A Exit Facility Agreement wish
to amend and restate the terms of the Tranche A Exit Facility by entering into
this Agreement;
NOW THEREFORE, in consideration of the mutual conditions and
agreements set forth in this Agreement, and for good and valuable consideration,
the receipt of which is hereby acknowledged, the Lenders, the Administrative
Agent, the Collateral Agent, the Issuing Bank, Credit Suisse First Boston, the
Parent and the Borrower agree that the Original Tranche A Exit Facility
Agreement is hereby amended and restated in its entirety to read as follows:
ARTICLE 1
DEFINITIONS
1.1 DEFINED TERMS. As used in this Agreement, the following terms have
the meanings specified below:
"Acceptance Fee" means a fee payable by the Borrower to the
Administrative Agent for the account of a Lender in Canadian Dollars with
respect to the acceptance of a B/A or the making of a B/A Equivalent Loan,
calculated on the face amount of the B/A or the undiscounted amount of the B/A
Equivalent Loan at the rate per annum equal to the Applicable Margin on the
basis of the number of days in the applicable Contract Period (including the
date of acceptance and excluding the date of maturity) and a year of 365 days,
(it being agreed that the Applicable Margin in respect of a B/A Equivalent Loan
is equivalent to the Applicable Margin otherwise applicable to the B/A which has
been replaced by the making of such B/A Equivalent Loan pursuant to Section 2.7
(h)).
"Additional Loan" is defined in Section 2.20.
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"Additional Subsidiary" is defined in Section 5.12.
"Administrative Agent" means JPMorgan Chase Bank, Toronto Branch, in its
capacity as administrative agent for the Lenders hereunder, or any successor
Administrative Agent appointed pursuant to Section 8.9.
"Administrative Questionnaire" means an administrative questionnaire in a
form supplied by the Administrative Agent.
"Affiliate" means, with respect to any Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with, such Person.
"Agents" means the Administrative Agent and the Collateral Agent.
"Applicable Margin" means, (i) with respect to any Prime Rate Loan or Base
Rate Loan, the margin set out in the following chart next to the applicable
Leverage Ratio:
LEVERAGE RATIO APPLICABLE MARGIN
-------------- -----------------
Equal to or greater than 4.00:1 3.00% (300 basis points)
Less than 4.00:1 but equal to or greater 2.75% (275 basis points)
than 3.25:1
Less than 3.25:1 2.50% (250 basis points)
and (ii) with respect to any Eurodollar Loan or B/A Borrowing, the margin set
out in the following chart next to the applicable Leverage Ratio:
LEVERAGE RATIO APPLICABLE MARGIN
-------------- -----------------
Equal to or greater than 4.00:1 4.00% (400 basis points)
Less than 4.00:1 but equal to or greater 3.75% (375 basis points)
than 3.25:1
Less than 3.25:1 3.50% (350 basis points)
"Applicable Percentage" means, with respect to any Lender, the percentage
of the total Loans represented by such Lender's Loans or, if on any date of
determination no Loans are outstanding, the percentage of the total Commitments
represented by such Lender's Commitments, as listed in Schedule A.
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"Asset Disposition" means, with respect to any Credit Party, the sale,
lease, license, transfer, assignment or other disposition of, or the
expropriation, condemnation, destruction or other loss of, all or any portion of
its business, assets, rights, revenues or property, real, personal or mixed,
tangible or intangible, whether in one transaction or a series of transactions
(including a Sale/Leaseback Transaction), other than (a) inventory sold in the
ordinary course of business upon customary credit terms, (b) inventory destroyed
in the ordinary course of business or sales of scrap or obsolete material or
equipment which are not material in the aggregate, (c) sales or other
dispositions of assets which are not in the ordinary course of business or
leases of real property or personal property (under which a Credit Party is
lessor), in any such case, which have a Fair Market Value less than
Cdn.$2,000,000 for any transaction and less than Cdn.$2,000,000 for all such
transactions in any Fiscal Year and which are no longer used or useful in the
Business, (d) licenses granted to third parties in the ordinary course of
business, (e) property sold to any other Credit Party, and (f) any other
disposition consented to by the Required Lenders. In the case of an
expropriation, condemnation, destruction or other loss of any property, any
insurance proceeds or other indemnity received as a result of such event may be
used by the Credit Party within the 90-day period following the receipt of such
insurance proceeds or other indemnity to replace the property so disposed of and
such sale or disposition will not constitute an Asset Disposition. Similarly, if
the proceeds of such disposition are used to replace the property so disposed of
or to purchase another asset used in the Business within a 90-day period
following such disposition, such disposition will not constitute an Asset
Disposition.
"Assignment and Assumption" means an assignment and assumption entered
into by a Lender and an assignee (with the consent of any party whose consent is
required by Section 9.4), and accepted by the Administrative Agent, in the form
of Exhibit A or any other form approved by the Administrative Agent.
"Authorization" means, with respect to any Person, any authorization,
order, permit, approval, grant, licence, consent, right, franchise, privilege,
certificate, judgment, writ, injunction, award, determination, direction,
decree, by-law, rule or regulation of any Governmental Authority having
jurisdiction over such Person, whether or not having the force of Law.
"B/A Borrowing" means a Borrowing comprised of one or more Banker's
Acceptances or, as applicable, B/A Equivalent Loans. For greater certainty,
unless the context requires otherwise, all provisions of this Agreement which
are applicable to Banker's Acceptances are also applicable, mutatis mutandis, to
B/A Equivalent Loans.
"B/A Equivalent Loan" is defined in Section 2.7(h).
"Banker's Acceptance" and "B/A" mean an instrument denominated in Canadian
Dollars, drawn by the Borrower and accepted by a Lender in accordance with this
Agreement, and includes a depository xxxx within the meaning of the Depository
Bills and Notes Act (Canada) and a xxxx of exchange within the meaning of the
Bills of Exchange Act (Canada).
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"Base Rate" means, on any day, the annual rate of interest equal to the
greater of (i) the annual rate of interest announced by the Administrative Agent
and in effect as its base rate at its principal office in Toronto, Ontario on
such day for determining interest rates on U.S. Dollar-denominated commercial
loans made in Canada, and (ii) the Federal Funds Effective Rate plus 0.50%.
"Base Rate Borrowing" means a Borrowing comprised of one or more Base Rate
Loans.
"Base Rate Loan" means a Loan denominated in U.S. Dollars which bears
interest at a rate based upon the Base Rate.
"Borrower" means Microcell Solutions Inc., a CBCA corporation, and its
successors and permitted assigns.
"Borrowing" means any availment of the Commitments made hereunder, and
includes a rollover or conversion of any outstanding Loan.
"Business" means, with respect to the Credit Parties, (i) the development,
delivery or distribution in Canada of telecommunications services (including
wireless voice, data or video services), (ii) any business or activity
reasonably related thereto, including any business conducted by the Credit
Parties on the Effective Date, and (iii) the acquisition, holding or
exploitation of any licence relating to the delivery of the services described
in clause (i) of this definition.
"Business Day" means any day that is not a Saturday, Sunday or other day
on which commercial banks in Toronto, Ontario and Montreal, Quebec are
authorized or required by applicable Law to remain closed and, in the case of
any U.S. Dollar-denominated Loan or any Letter of Credit, also a day on which
commercial banks in New York, New York are authorized or required by applicable
Law to remain closed and, in the case of any Eurodollar Loan, also a day on
which commercial banks in London, England are authorized or required by
applicable Law to remain closed.
"Canadian Court" means the Superior Court of the Province of Quebec.
"Canadian Dollars" and "Cdn.$" refer to lawful money of Canada.
"Cdn.$ Loans" means the Loans denominated in Canadian Dollars.
"Capital Expenditures" means, for any period, all expenditures (whether
paid in cash or accrued as a liability, including the portion of Capital Lease
Obligations originally incurred during such period that are capitalized) during
such period that, in conformity with GAAP, are included in "capital
expenditures", "additions to property, plant or equipment" or comparable items,
but excluding expenditures for the restoration, repair or replacement of any
fixed or capital asset that was destroyed or damaged, in whole or in part, in an
amount not exceeding any insurance proceeds received in connection with such
destruction or damage.
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"Capital Lease Obligations" of any Person means the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination thereof,
which obligations are required to be classified and accounted for as capital
leases on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP.
"CBCA" means the Canada Business Corporations Act (Canada).
"CCAA" means the Companies' Creditors Arrangement Act (Canada).
"CDOR Rate" means, on any date, the annual rate of interest which is the
rate based on an average rate applicable to Canadian Dollar banker's acceptances
for the applicable period appearing on the "Reuters Screen CDOR Page", rounded
to the nearest 1/100th of 1% (with .005% being rounded up), at approximately
10:00 a.m., Toronto time, on such date, or if such date is not a Business Day,
then on the immediately preceding Business Day, provided that if such rate does
not appear on the Reuters Screen CDOR Page on such date as contemplated, then
the CDOR Rate on such date shall be calculated as the arithmetic mean of the
rates for the term referred to above applicable to Canadian Dollar banker's
acceptances quoted by the banks listed in Schedule I of the Bank Act (Canada) as
of 10:00 a.m., Toronto time, on such date or, if such date is not a Business
Day, then on the immediately preceding Business Day.
"Change in Control" means (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group of Persons, acting
jointly or otherwise in concert, of Equity Securities representing more than 50%
of the aggregate ordinary voting power represented by the issued and outstanding
Equity Securities of the Parent, and more than 30% of the issued and outstanding
Equity Securities of the Parent; or (b) occupation of a majority of the seats
(other than vacant seats) on the board of directors of the Parent (as comprised
on the Effective Date) by Persons who were neither (i) nominated by the board of
directors of the Parent nor (ii) appointed by directors so nominated.
"Change in Law" means (i) the adoption of any new Law after the date of
this Agreement, (ii) any change in any existing Law or in the interpretation or
application thereof by any Governmental Authority after the date of this
Agreement, or (iii) compliance by any Lender or the Issuing Bank (or, for
purposes of Section 2.9(b), by any lending office of such Lender or by such
Lender's or the Issuing Bank's holding company, if any) with any request,
guideline or directive (whether or not having the force of Law, but in the case
of a request, guideline or directive not having the force of Law, being a
request, guideline or directive with which Persons customarily comply) of any
Governmental Authority made or issued after the date of this Agreement.
"Collateral" means the property which is charged by or hypothecated under
the Security Documents, and includes all property, rights and assets, present
and future, of the Borrower, the Parent and those subsidiaries of the Borrower
or the Parent which have provided or may hereafter provide security to the
Collateral Agent (or to any trustee or "fonde de pouvoir" for or
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on behalf of the Collateral Agent and/or the Lenders) to secure the obligations
of the Borrower, the Parent and such subsidiaries under this Agreement and the
other Financing Documents.
"Collateral Agent" means JPMorgan Chase Bank, Toronto Branch, in its
capacity as collateral agent and fonde de pouvoir for the Lenders hereunder, and
pursuant to the Intercreditor Agreement, or any successor Collateral Agent
appointed pursuant to the Intercreditor Agreement.
"Collateral and Guarantee Requirement" means the requirement that:
(i) the Collateral Agent (or the Administrative Agent in the case of a
Guarantee) shall have received (i) from each Credit Party, a
counterpart of each of the Security Documents duly executed and
delivered on behalf of such Credit Party, and (ii) in the case of
any Person that becomes a Credit Party after the Effective Date,
either (as applicable) (A) a supplement to each applicable Security
Document, in the form specified therein, duly executed and delivered
on behalf of such Credit Party, and/or (B) additional Security
Documents, in form and substance satisfactory to the Collateral
Agent, duly executed and delivered on behalf of such Credit Party
provided that if any of the Security Documents are not suitable for
use in any jurisdiction, the applicable Credit Party shall provide
to the Collateral Agent (or the Administrative Agent in the case of
a Guarantee) alternative document(s) with substantially equivalent
substantive effect and which are suitable for use in such
jurisdiction;
(ii) all outstanding Equity Securities of the Borrower, each other
Subsidiary owned by or on behalf of any Credit Party, and each
Unrestricted Subsidiary owned by or on behalf of any Credit Party,
shall have been pledged pursuant to pledge agreements, in form and
substance satisfactory to the Collateral Agent, and the Collateral
Agent shall have received certificates or other instruments
representing all such Equity Securities, together with stock powers
or other instruments of transfer with respect thereto endorsed in
blank;
(iii) each promissory note evidencing any Indebtedness of any Credit Party
or any Unrestricted Subsidiary that is owing to any other Credit
Party shall have been pledged pursuant to pledge agreements, in form
and substance satisfactory to the Collateral Agent, and the
Collateral Agent shall have received all such promissory notes,
together with instruments of transfer with respect thereto endorsed
in blank;
(iv) all documents and instruments, including all PPSA financing
statements or other appropriate filings, required by Law or
reasonably requested by the Collateral Agent to be filed, registered
or recorded to create (or continue the creation of) the Liens
intended to be created by the Security Documents and perfect or
render opposable against third parties (or continue to perfect or
render opposable against third parties) such Liens to the extent
required by, and with the priority required
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by, the Security Documents, shall have been filed, registered or
recorded or delivered to the Collateral Agent for filing,
registration or recording;
(v) the Collateral Agent shall have received (i) counterparts of a
Mortgage with respect to each Mortgaged Property, duly executed and
delivered by the owner of such Mortgaged Property, and (ii) such
legal opinions and other documents as the Administrative Agent or
the Required Lenders may reasonably request with respect to any such
Mortgage or Mortgaged Property; and
(vi) each Credit Party shall have obtained all material consents and
approvals required to be obtained by it in connection with the
execution and delivery of all Security Documents to which it is a
party, the performance of its obligations thereunder and the
granting by it of the Liens thereunder.
"Commitment" means, with respect to each Lender, the commitment of such
Lender to make Loans hereunder, as such commitment may be reduced from time to
time pursuant to Section 2.6 or Section 2.18, as such commitment may be
increased from time to time pursuant to Section 2.17, and as such commitment may
be reduced or increased from time to time pursuant to assignments by or to such
Lender pursuant to Section 9.4. The initial amount of each Lender's Commitment
is set forth on Schedule A, or in the Assignment and Assumption pursuant to
which such Lender shall have assumed its Commitment, as applicable. The initial
aggregate amount of Commitments is Cdn.$50,000,000.
"Contract Period" means the term of any B/A Borrowing selected by the
Borrower in accordance with Section 2.2(b)(iv) commencing on the date of such
B/A Borrowing and expiring on a Business Day which shall be either one month,
two months, three months or, if available, as determined by the Administrative
Agent in good faith, six months thereafter (or such other terms as may be
requested by the Borrower and approved unanimously by the Lenders), provided
that (i) subject to subparagraph (ii) below, each such period shall be subject
to such extensions or reductions as may be determined by the Administrative
Agent to ensure that each Contract Period will expire on a Business Day, and
(ii) no Contract Period shall extend beyond the Maturity Date.
"Control" means, in respect of a particular Person, the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of such Person, whether through the ability to exercise
voting power, by contract or otherwise. "Controlling" and "Controlled" have
meanings correlative thereto.
"Credit Party" means the Parent, the Borrower, each of the Subsidiaries
and any other Person which is a party to a Financing Document (other than the
Administrative Agent, the Collateral Agent, the Issuing Bank and the Lenders and
their respective successors and assigns), but, for greater certainty, does not
include any Unrestricted Subsidiary.
"CRTC" means the Canadian Radio-television and Telecommunications
Commission.
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"Currency Due" is defined in Section 2.13.
"Default" means any event or condition which constitutes an Event of
Default or which, upon notice, lapse of time or both, would, unless cured or
waived, become an Event of Default.
"Discount Proceeds" means, for any B/A (or, as applicable, any B/A
Equivalent Loan), an amount (rounded to the nearest whole cent, and with
one-half of one cent being rounded up) calculated on the first day of the
applicable Contract Period by multiplying:
(i) the face amount of the B/A (or, as applicable, the undiscounted
amount of the B/A Equivalent Loan); by
(ii) the quotient of one divided by the sum of one plus the product of
(A) the Discount Rate (expressed as a decimal) applicable to such
B/A (or, as applicable, such B/A Equivalent Loan), multiplied
by
(B) a fraction, the numerator of which is the Contract Period of
the B/A (or, as applicable, the B/A Equivalent Loan) and the
denominator of which is 365,
with such quotient being rounded up or down to the nearest fifth
decimal place, and with .000005 being rounded up.
"Discount Rate" means (i) with respect to any Lender which is a Schedule I
chartered bank under the Bank Act (Canada), as applicable to a B/A being
accepted (or, as applicable, a B/A Equivalent Loan being made) by such Lender on
any day, the CDOR Rate on such day; and (ii) with respect to any Lender which is
not a Schedule I chartered bank under the Bank Act (Canada), as applicable to a
B/A being accepted (or, as applicable, a B/A Equivalent Loan being made) by such
Lender on any day, the lesser of (a) the CDOR Rate on such day, plus 0.10%, and
(b) the percentage discount rate quoted by such Lender as the percentage
discount rate at which such Lender would, in accordance with its normal
practices, at or about 10:00 a.m., Toronto time, on such date, be prepared to
purchase banker's acceptances having a face amount and term comparable to the
face amount and term of such B/A or B/A Equivalent Loan.
"EBITDA" means operating income (loss) excluding restructuring charges (to
the extent of actual cash payments in respect thereof), impairment of intangible
assets, depreciation and amortization, all as calculated in accordance with
GAAP, and all as reported on the most recent financial statements delivered
pursuant to Section 5.1, which shall be prepared in a manner consistent with
prior periods.
"Effective Date" means the date on which all of the conditions specified
in Section 4.1 are satisfied or waived in accordance with Section 9.2.
"Environmental Laws" means all Laws or binding agreements issued,
promulgated or entered into by any Governmental Authority relating in any way to
the environment, preservation
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or reclamation of natural resources, the generation, use, handling, collection,
treatment, storage, transportation, recovery, recycling, release, threatened
release or disposal of any Hazardous Material, or to health and safety matters.
"Environmental Liability" means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Borrower or any Subsidiary directly or
indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, collection, treatment, storage,
transportation, recovery, recycling or disposal of any Hazardous Materials, (c)
exposure to any Hazardous Materials, (d) the release or threatened release of
any Hazardous Materials into the environment, or (e) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.
"Equity Securities" means, with respect to any Person, any and all shares,
interests, participations, rights in, or other equivalents (however designated
and whether voting and non-voting) of, such Person's capital, whether
outstanding on the date hereof or issued after the date hereof, including any
interest in a partnership, limited partnership or other similar Person and any
beneficial interest in a trust, and any and all rights, warrants, options or
other rights exchangeable for or convertible into any of the foregoing.
"Eurodollar Borrowing" means a Borrowing comprised of one or more
Eurodollar Loans.
"Eurodollar Loan" means a Loan denominated in U.S. Dollars which bears
interest at a rate based upon the Eurodollar Rate.
"Eurodollar Rate" means, with respect to any Eurodollar Loan for any
Interest Period, the rate for U.S. Dollar borrowings appearing on Page 3750 of
the Telerate Service (or on any successor or substitute page of such Service, or
any successor to or substitute for such Service providing rate quotations
comparable to those currently provided on such page of such Service, as
determined by the Administrative Agent from time to time for purposes of
providing quotations of interest rates applicable to U.S. Dollar deposits in the
London interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for U.S.
Dollar deposits with a maturity comparable to such Interest Period. In the event
that such rate is not available at such time for any reason, then the
"Eurodollar Rate" with respect to such Eurodollar Loan for such Interest Period
shall be the rate at which U.S. Dollar deposits of U.S.$5,000,000 and for a
maturity comparable to such Interest Period are offered by the principal London
office of the Administrative Agent in immediately available funds in the London
interbank market at approximately 11:00 a.m., London time, two Business Days
prior to the commencement of such Interest Period.
"Events of Default" has the meaning specified in Section 7.1.
"Excluded Taxes" means, with respect to the Administrative Agent, any
Lender or any other recipient of any payment to be made by or on account of any
obligation of the Borrower hereunder, income or franchise Taxes imposed on (or
measured by) its taxable income or capital
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Taxes imposed on (or measured by) its taxable capital, in each case by Canada,
or by the jurisdiction under the Laws of which such recipient is organized or in
which its principal office is located or Canadian federal withholding tax
imposed under the Income Tax Act solely by reason of a Lender not dealing at
arm's length with the Borrower within the meaning of the Income Tax Act other
than solely by reason of the interest of such Lender in the rights and
securities of the Borrower and the Guarantors acquired by such Lender pursuant
to the Plan of Arrangement.
"Existing Security" means the "Security Documents" as that term was
defined in the Original Tranche A Exit Facility Agreement.
"Fair Market Value" means (a) with respect to any asset or group of assets
(other than a marketable security) at any date, the value of the consideration
obtainable in a sale of such asset at such date assuming a sale by a willing
seller to a willing purchaser dealing at arm's length and arranged in an orderly
manner over a reasonable period of time having regard to the nature and
characteristics of such asset, or, if such asset shall have been the subject of
a relatively contemporaneous appraisal by an independent third party appraiser,
the basic assumptions underlying which have not materially changed since its
date, the value set forth in such appraisal, and (b) with respect to any
marketable security at any date, the closing sale price of such marketable
security on the Business Day next preceding such date, or, if there is no such
closing sale price of such marketable security, the final price for the purchase
of such marketable security at face value quoted on such Business Day by a
financial institution of recognized standing selected by the Administrative
Agent which regularly deals in securities of such type.
"Federal Funds Effective Rate" means, for any day, the per annum rate
equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System of the United States of
America arranged by Federal funds brokers, as published for such day (or, if
such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Board of New York, or, if such rate is not so published for any
day which is a Business Day, the average of the quotations for such day on such
transactions received by JPMorgan Chase Bank in New York City from three Federal
funds brokers of recognized standing selected by it.
"Federal Reserve Board" means the Board of Governors of the Federal
Reserve System of the United States of America.
"Financial Officer" means the chief financial officer, principal
accounting officer, treasurer or controller of the Borrower or the Parent.
"Financing Documents" means this Agreement, the Security Documents, the
Mortgages, the Intercreditor Agreement, the Lien Priority Agreement and the
Notices of Borrowing/Conversion/Continuation, together with any other document,
instrument or agreement (other than participation, agency or similar agreements
among the Lenders or between any Lender and any other bank or creditor with
respect to any Indebtedness or obligations of the Borrower or any Subsidiary (as
applicable) hereunder or thereunder) now or hereafter entered
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into in connection with this Agreement, as such documents, instruments or
agreements may be amended, modified or supplemented from time to time.
"First Notes" means the first subordinated convertible 9% notes issuable
by the Parent pursuant to a certain First Unit Indenture dated May 1, 2003
between Computershare Trust Company of Canada and the Parent.
"First Preferred Shares" means first preferred shares in the capital of
the Parent having the terms and conditions contemplated in the Parent Articles
of Incorporation and includes the First Units following any conversion of such
First Preferred Shares into the First Units.
"First Units" has the meaning set out in the Parent Articles of
Incorporation.
"Fiscal Quarter" means any fiscal quarter of any of the Credit Parties.
"Fiscal Year" means any fiscal year of any of the Credit Parties.
"Fixed Charge Coverage Ratio" means, as of the last day of any Rolling
Period, the ratio of (a) EBITDA of the Credit Parties for the previous two
Fiscal Quarters ended on that date, multiplied by 2, to (b) the sum of (i)
Interest Expense of the Credit Parties for such Rolling Period plus (ii) the
aggregate of all scheduled principal payments on Indebtedness made by the Credit
Parties during such Rolling Period plus (iii) Capital Expenditures made by the
Credit Parties during such Rolling Period.
"GAAP" means generally accepted accounting principles in Canada as in
effect from time to time.
"Governmental Authority" means the Government of Canada, any other nation
or any political subdivision thereof, whether provincial, state, territorial or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank, fiscal or monetary authority or other authority regulating
financial institutions, and any other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government, including the Basel Committee on Banking Supervision
of the Bank for International Settlements.
"Guarantee" of or by any Person (in this definition, the "guarantor")
means any obligation, contingent or otherwise, of the guarantor guaranteeing or
having the economic effect of guaranteeing any Indebtedness or other obligation
of any other Person (in this definition, the "primary credit party") in any
manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness or other obligation or
to purchase (or to advance or supply funds for the purchase of) any security for
the payment thereof (whether in the form of a loan, advance, stock purchase,
capital contribution or otherwise), (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such
Indebtedness or other obligation of the payment thereof, (c) to maintain working
capital, equity capital
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solvency, or any other balance sheet, income statement or other financial
statement condition or liquidity of the primary credit party so as to enable the
primary credit party to pay such Indebtedness or other obligation, or (d) as an
account party in respect of any letter of credit or letter of guarantee issued
to support such Indebtedness or other obligation.
"Hazardous Materials" means any substance, product, liquid, waste,
pollutant, chemical, contaminant, insecticide, pesticide, gaseous or solid
matter, organic or inorganic matter, fuel, micro-organism, ray, odour,
radiation, energy, vector, plasma, constituent or material which (a) is or
becomes listed, regulated or addressed under any Environmental Law, or (b) is,
or is deemed to be, alone or in any combination, hazardous, hazardous waste,
toxic, a pollutant, a deleterious substance, a contaminant or a source of
pollution or contamination under any Environmental Law, including, asbestos,
petroleum and polychlorinated biphenyls, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated
biphenyls, radon gas, infectious or medical wastes and all other substances or
wastes of any nature regulated pursuant to any Environmental Law.
"Income Tax Act" means the Income Tax Act (Canada), as amended from time
to time.
"Indebtedness" of any Person includes, without duplication, (a) all
obligations of such Person for borrowed money or with respect to deposits or
advances of any kind, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such Person
upon which interest charges are customarily paid, (d) all obligations of such
Person under conditional sale or other title retention agreements relating to
property acquired by such Person, (e) all obligations of such Person in respect
of the deferred purchase price of property or services (excluding current
accounts payable incurred in the ordinary course of business, excluding
obligations in respect of the deferred purchase price of property or services
for a period of up to 180 days from the date of incurrence of such obligations
and excluding insurance premiums payable over the term of such Person's
insurance policies to the extent done on commercially reasonable terms), (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on
property owned or acquired by such Person, whether or not the Indebtedness
secured thereby has been assumed, (g) all Guarantees by such Person of
Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i)
all obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guarantee, (j) all obligations,
contingent or otherwise, of such Person in respect of banker's acceptances, and
(k) the net amount of obligations of such Person (determined on a
marked-to-market basis) under Swap Agreements. The Indebtedness of any Person
shall include the Indebtedness of any other entity (including any partnership in
which such Person is a general or limited partner) to the extent such Person is
liable therefor as a result of such Person's ownership interest in or other
relationship with such entity, except to the extent the terms of such
Indebtedness provide that such Person is not liable therefor. For greater
certainty, "Indebtedness" does not include short-term trade debt incurred in the
ordinary course of business.
"Indemnified Taxes" means all Taxes other than Excluded Taxes.
-13-
"Indemnitee" has the meaning specified in Section 9.3(b).
"Intercreditor Agreement" means the Amended and Restated Intercreditor and
Collateral Agency Agreement substantially in the form attached as Exhibit B, as
such agreement may be amended, supplemented or otherwise modified or restated
from time to time.
"Interest Coverage Ratio" means, as of the last day of any Rolling Period,
the ratio of (a) EBITDA of the Credit Parties on a consolidated basis for the
previous two Fiscal Quarters ended on the last day of such Rolling Period,
multiplied by 2, to (b) the Interest Expense of the Credit Parties on a
consolidated basis during such Rolling Period.
"Interest Expense" shall mean, for any period, the total interest expense
of the Credit Parties, plus, to the extent not included in such total interest
expense, and to the extent incurred by the Credit Parties, without duplication
(i) interest expense attributable to Capital Lease Obligations, (ii)
amortization of debt discount or financing fees, (iii) capitalized interest,
(iv) non-cash interest expense, (v) commissions, discounts and other fees and
charges owed with respect to letters of credit and bankers' acceptance
financing, (vi) net costs associated with Swap Agreements (including
amortization of fees), (vii) standby fees , (viii) dividends in respect of all
the First Preferred Shares or the Second Preferred Shares and all other
preferred stock issued by the Credit Parties and held by Persons other than the
Credit Parties, and (ix) interest actually paid by any Credit Party on any
Indebtedness of any other Person.
"Interest Payment Date" means, (a) in the case of any Loan other than a
Eurodollar Loan, a B/A or a B/A Equivalent Loan, each Quarterly Date during the
term of this Agreement and the Maturity Date, and (b) in the case of a
Eurodollar Loan, the last day of each Interest Period relating to such
Eurodollar Loan, provided that if an Interest Period for any Eurodollar Loan is
of a duration exceeding three months, then "Interest Payment Date" shall also
include each date which occurs at each three month interval during such Interest
Period.
"Interest Period" means, with respect to a Eurodollar Loan, the period
commencing on the first day of such Loan and ending on the numerically
corresponding day in the calendar month that is one, two, three or six months
thereafter, as the Borrower may elect; provided that (i) if any Interest Period
would end on a day other than a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless such next succeeding
Business Day would fall in the next calendar month, in which case such Interest
Period shall end on the immediately preceding Business Day, (ii) any Interest
Period pertaining to a Eurodollar Loan that commences on the last Business Day
of a calendar month (or on a day for which there is no numerically corresponding
day in the last calendar month of such Interest Period) shall end on the last
Business Day of the last calendar month of such Interest Period, (iii) no
Interest Period shall extend beyond any date that any principal payment or
prepayment is scheduled to be due unless the aggregate principal amount of Prime
Rate Loans, Base Rate Loans, B/As, B/A Equivalent Loans and Eurodollar Loans
which have Interest Periods or Contract Periods which will expire on or before
such date, less the aggregate amount of any other principal payments or
prepayments due during such Interest Period, is equal to or in excess of the
amount of such
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principal payment or prepayment, and (iv) no Interest Period shall extend beyond
the Maturity Date.
"Interest Rate Xxxxxx" is defined in Section 2.18.
"Investment" means, as applied to any Person (the "investor"), any direct
or indirect purchase or other acquisition by the investor of, or a beneficial
interest in, Equity Securities of any other Person, including any exchange of
Equity Securities for Indebtedness, or any direct or indirect loan, advance
(other than advances to employees for moving and travel expenses, drawing
accounts and similar expenditures in the ordinary course of business) or capital
contribution by the investor to any other Person, including all Indebtedness and
accounts receivable owing to the investor from such other Person that did not
arise from sales or services rendered to such other Person in the ordinary
course of the investor's business, or any direct or indirect purchase or other
acquisition of bonds, notes, debentures or other debt securities of, any other
Person. The amount of any Investment shall be the original cost of such
Investment plus the cost of all additions thereto, without any adjustments for
increases or decreases in value, or write-ups, write-downs or write-offs with
respect to such Investment minus any amounts (a) realized upon the disposition
of assets comprising an Investment (including the value of any liabilities
assumed by any Person other than the Credit Parties in connection with such
disposition), (b) constituting repayments of Investments that are loans or
advances or (c) constituting cash returns of principal or capital thereon
(including any dividend, redemption or repurchase of equity that is accounted
for, in accordance with GAAP, as a return of principal or capital).
"Issuing Bank" means JPMorgan Chase Bank, Toronto Branch, in its capacity
as the issuer of Letters of Credit hereunder, and its successors in such
capacity as provided in Section 2.15(i). The Issuing Bank may, in its
discretion, arrange for one or more Letters of Credit to be issued by Affiliates
of the Issuing Bank, in which case the term "Issuing Bank" shall include any
such Affiliate with respect to Letters of Credit issued by such Affiliate.
"Judgment Currency" is defined in Section 2.13.
"Laws" means all federal, provincial, municipal, foreign and international
statutes, acts, codes, ordinances, decrees, treaties, rules, regulations,
municipal by-laws, judicial or arbitral or administrative or ministerial or
departmental or regulatory judgments, orders, injunctions, decisions, rulings,
awards, notices or any provisions of the foregoing, including general principles
of common and civil law and equity, and all policies, practices and guidelines
of, or issued, promulgated or entered into by, any Governmental Authority
binding on or affecting the Person referred to in the context in which such word
is used (including, in the case of tax matters, any accepted practice or
application or official interpretation of any relevant taxation authority); and
"Law" means any one or more of the foregoing.
"LC Disbursement" means a payment made by the Issuing Bank pursuant to a
Letter of Credit.
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"LC Exposure" means, at any time, the sum of (a) the aggregate undrawn
amount of all outstanding Letters of Credit at such time, plus (b) the aggregate
amount of all LC Disbursements that have not yet been reimbursed by or on behalf
of the Borrower at such time. The LC Exposure of any Lender at any time shall be
its Applicable Percentage of the total Commitments at such time.
"Lender Affiliate" means, (a) with respect to any Lender, (i) an Affiliate
of such Lender, or (ii) any Person that is engaged in making, purchasing,
holding or otherwise investing in bank loans and similar extensions of credit in
the ordinary course of its business and is administered or managed by a Lender
or an Affiliate of such Lender, and (b) with respect to any Lender that is a
fund which invests in bank loans and similar extensions of credit, any other
fund that invests in bank loans and similar extensions of credit and is managed
by the same investment advisor as such Lender or by an Affiliate of such
investment advisor.
"Lenders" means the Persons listed as lenders on Schedule A, any other
Person that shall have become a party hereto pursuant to an Assignment and
Assumption, other than any such Person that ceases to be a party hereto pursuant
to an Assignment and Assumption, and any Person providing any Additional Loan
which is a Loan hereunder.
"Letter of Credit" means any Standby Letter of Credit issued pursuant to
this Agreement.
"Leverage Ratio" means, on any day, the ratio of (a) Indebtedness of the
Credit Parties on a consolidated basis as of the date of determination, to (b)
EBITDA of the Credit Parties on a consolidated basis for the previous two Fiscal
Quarters ended on the most recent Quarterly Date, multiplied by 2.
"Lien" means, (a) with respect to any asset, any mortgage, deed of trust,
lien, pledge, hypothecation, encumbrance, charge, security interest, royalty
interest, adverse claim, defect of title or right of set off in, on or of such
asset, (b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease, title retention agreement or consignment agreement (or
any financing lease having substantially the same economic effect as any of the
foregoing) relating to any asset, (c) in the case of securities, any purchase
option, call or similar right of a third party with respect to such securities,
(d) any netting arrangement, defeasance arrangement or reciprocal fee
arrangement, and (e) any other arrangement having the effect of providing
security.
"Lien Priority Agreement" means the Lien Priority Agreement substantially
in the form attached as Exhibit D, as such agreement may be amended,
supplemented or otherwise modified or restated from time to time.
"Loan" is defined in Section 2.1.
"Majority Tranche A Lenders" means, at any time, Lenders having
Commitments representing more than 50% of the aggregate amount of the
Commitments, or if such
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Commitments have been terminated, Lenders having Loans representing more than
50% of the aggregate amount of the Loans.
"Material Adverse Change" means any event, development or circumstance
that has had or could reasonably be expected to have a Material Adverse Effect.
"Material Adverse Effect" means a material adverse effect on (a) the
business, assets, operations or condition, financial or otherwise, of the
Borrower and its subsidiaries taken as a whole, which affect the ability of the
Borrower to timely pay any amounts owing under the Credit Agreement or fulfil
any other covenant or obligation of a material nature arising under the
Financing Documents, or (b) the validity or enforceability of any of the
Financing Documents or the rights and remedies of the Administrative Agent and
the Lenders thereunder.
"Material Contract" means any contract, licence or agreement (i) to which
any Credit Party is a party, (ii) which is material to, or necessary in, the
operation of the business of the Credit Parties, and (iii) which the Credit
Parties cannot promptly replace by an alternative and comparable contract with
comparable commercial terms.
"Material Indebtedness" means Indebtedness of any one or more of the
Credit Parties, other than Indebtedness hereunder, the aggregate principal
amount of which exceeds Cdn.$5,000,000.
"Maturity Date" means March 17, 2010.
"Minimum Denomination" is defined in Section 2.1.
"Moody's" means Xxxxx'x Investors Service, Inc.
"Mortgage" means a mortgage, debenture, deed of trust, hypothec,
assignment of leases and rents, leasehold mortgage or other security document
granting a Lien on any Mortgaged Property to secure the obligations of the
Borrower, the Parent or any Subsidiaries under this Agreement and the other
Financing Documents. Each Mortgage shall be satisfactory in form and substance
to the Collateral Agent.
"Mortgaged Property" means, initially, each parcel of real property and
the improvements thereto owned by a Credit Party and identified as a Mortgaged
Property on Schedule B, and includes each other parcel of real property and
improvements thereto with respect to which a Mortgage is granted pursuant to
Section 5.12.
"Net Proceeds" means, (a) with respect to any Asset Disposition, the gross
amount received by the Credit Parties from such Asset Disposition, including
proceeds of any insurance policies received by the Credit Parties in connection
with such Asset Disposition and amounts received by the Credit Parties pursuant
to any expropriation proceeding or condemnation proceeding in connection with
such Asset Disposition, minus the sum of (i) the amount, if any, of all Taxes
paid or payable by the Credit Parties directly resulting from such Asset
Disposition
-17-
(including the amount, if any, estimated by such Credit Party in good faith at
the time of such Asset Disposition for Taxes payable by the Credit Parties on or
measured by net income or gain resulting from such Asset Disposition, taking
into account any Tax losses or credits available or to be available to the
Credit Parties at the time such Taxes are payable that are not used to offset
other income or gains), and (ii) the reasonable out-of-pocket costs and expenses
incurred by the Credit Parties in connection with such Asset Disposition
(including reasonable brokerage commissions and customary fees and expenses of
counsel, investment bankers and other advisors paid to a Person other than an
Affiliate of the Credit Parties, but excluding any fees or expenses paid to an
Affiliate of the Credit Parties), (b) with respect to any issuance of Equity
Securities issued to a Person which is not another Credit Party, the gross
amount received by the Credit Parties from such issuance of Equity Securities,
minus the reasonable out-of-pocket costs and expenses incurred by the Credit
Parties in connection with such issuance of Equity Securities (including
reasonable legal, underwriting and brokerage fees and expenses paid to a Person
other than an Affiliate of the Credit Parties, but excluding any fees or
expenses paid to an Affiliate of the Credit Parties) and (c) with respect to any
issuance of Subordinated Debt issued to a Person which is not another Credit
Party, the gross amount received by the Credit Parties from such issuance of
Subordinated Debt, minus the reasonable out-of-pocket costs and expenses
incurred by the Credit Parties in connection with such issuance of Subordinated
Debt (including reasonable legal, underwriting and brokerage fees and expenses
paid to a Person other than an Affiliate of the Credit Parties). For greater
certainty, the Net Proceeds in respect of the issuance of Equity Securities or
Subordinated Debt to a Credit Party shall be nil.
"Notes" means the First Notes and the Second Notes.
"Notice of Borrowing/Continuation/Conversion" means a request by the
Borrower to make a Borrowing, or to convert or continue a Loan in accordance
with Section 2.2(a) or 2.2(d), as applicable, in the form of the notice set
forth in Exhibit "C".
"Original Tranche A Exit Facility Agreement" has the meaning set forth in
Introductory Statement A.
"Original Tranche B Credit Agreement" means the credit agreement dated as
of May 1, 2003 among the Parent, the Borrower, the financial institutions from
time to time parties thereto as lenders, and JPMorgan Chase Bank, Toronto
Branch, as administrative agent and collateral agent.
"Parent" means Microcell Telecommunications Inc. (formerly 4130910 Canada
Inc.) (incorporated on April 28, 2003), a CBCA corporation, and its successors
and permitted assigns.
"Parent Articles of Incorporation" means the restated articles of
incorporation of the Parent as attached to the restated certificate of
incorporation of the Parent dated May 20, 2003 and issued pursuant to the CBCA.
"Participant" has the meaning set forth in Section 9.4 (d).
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"Payment Office" means the Administrative Agent's office located at Suite
0000, Xxxxx Xxxxx, Xxxxx Xxxx Xxxxx, Xxxxxxx, Xxxxxxx, Attention: Corporate
Banking Officers, (or such other office or individual as the Administrative
Agent may hereafter designate in writing to the other parties hereto).
"PCS Network" means the digital mobile PCS network owned and operated by
the Borrower.
"Pension Plan" means any pension benefit plan in respect of which any
Credit Party makes or has made contributions in respect of its employees.
"Perfection Certificate" means a certificate in the form of Exhibit A to
the general security agreements provided by the Credit Parties pursuant to
Section 4.1(g), or in any other form approved by the Collateral Agent.
"Permitted Additional Exit Facility Debt" means secured Indebtedness, in
an aggregate principal amount not exceeding an amount equal to Cdn.$75,000,000
less the principal amount of the Commitments hereunder on the Effective Date,
incurred by the Borrower at any time after the Effective Date, by way of an
increase in the Commitments hereunder, which may include Additional Loans, if
such Additional Loans are Loans hereunder.
"Permitted Investments" means:
(i) direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the
Government of Canada or of any Canadian province (or by any
agency thereof to the extent such obligations are backed by the
full faith and credit of the Government of Canada or of any
Canadian province), in each case maturing within one year from
the date of acquisition thereof;
(ii) direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the
Government of the United States of America (or by any agency
thereof to the extent such obligations are backed by the full
faith and credit of the Government of the United States of
America), in each case maturing within one year from the date of
acquisition thereof;
(iii) investments in commercial paper maturing within 365 days from the
date of acquisition thereof and having, at such date of
acquisition, a rating from Dominion Bond Rating Service of R-1
(Low) or better, from Moody's of P-1 or better, or from Standard
and Poor's Corporation of A-1 or better;
(iv) investments in certificates of deposit, banker's acceptances and
time deposits maturing within 270 days from the date of
acquisition thereof issued or guaranteed by or placed with, and
money market deposit accounts issued or offered by, any Lender,
any Schedule I chartered bank under the Bank Act
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(Canada), any domestic office of any chartered bank organized
under the Laws of Canada which has a combined capital surplus and
undivided profits of not less than Cdn.$500,000,000 or by any
Affiliate of any such chartered bank provided that the
obligations of such Affiliate are unconditionally guaranteed by
such chartered bank or any financial institution subject to
regulation by the Federal Reserve Board which has a combined
capital surplus and undivided profits of not less than
U.S.$500,000,000 or by any Affiliate of any such financial
institution provided that the obligations of such Affiliate are
unconditionally guaranteed by such financial institution;
(v) fully collateralized repurchase agreements with a term of not
more than 270 days for securities described in clauses (i), (ii)
and (iii) above and (vi) below (but without regard to the
maturity dates described therein) and entered into with a
financial institution satisfying the criteria described in clause
(iv) above; provided that any repurchase agreement relating to
securities with a maturity date of more than 270 days includes a
"xxxx to market" provision which is satisfactory to the
Administrative Agent;
(vi) investments in commercial paper maturing within 365 days from the
date of acquisition thereof and having, at such date of
acquisition, a rating from Dominion Bond Rating Service of R-1
(Low) or better, from Moody's of P-1 or better, or from Standard
and Poor's Corporation of A-1 or better; and
(vii) investments in certificates of deposit maturing no more than 365
days from the date of acquisition thereof, issued by any
chartered bank organized under the Laws of Canada for purposes of
pledges of cash or cash equivalents to secure the issuance of
letters of credit as permitted by Section 6.1(h).
"Permitted Liens" means:
(i) Liens in favour of the Tranche B-Term Loan A Lenders (or an
agent, trustee or "fonde de pouvoir" on their behalf) pursuant to
the Tranche B-Term Loan A Credit Agreement, Liens in favour of
the Tranche B-Term Loan B Lenders (or an agent, trustee or "fonde
de pouvoir" on their behalf) pursuant to the Tranche B-Term Loan
B Credit Agreement and Liens in favour of the Tranche C Lenders
(or an agent, trustee or "fonde de pouvoir" on their behalf)
pursuant to the Tranche C Credit Agreement;
(ii) Liens in favour of the Lenders (or an agent, trustee or "fonde de
pouvoir" on their behalf) for the obligations of the Borrower and
other Credit Parties under or pursuant to the Financing
Documents, and Liens granted pursuant to the Pre-Filing Credit
Agreement and the Original Tranche B Credit Agreement;
(iii) Liens granted by a Credit Party in favour of another Credit Party
in order to secure any of its Indebtedness to the other Credit
Party, provided that such Liens
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are subject to assignment, payment subordination and Lien
subordination arrangements satisfactory to the Administrative
Agent;
(iv) Purchase Money Liens and Liens securing Capital Lease Obligations
securing Indebtedness to the extent permitted by Section 6.1(g);
(v) Liens imposed by any Governmental Authority for Taxes not yet due
and delinquent or which are being contested in good faith in
accordance with Section 5.3, and, during such period during which
such Liens are being so contested, such Liens shall not be
executed on any of the assets of the Credit Parties;
(vi) carrier's, warehousemen's, mechanics', materialmen's,
repairmen's, construction and other like Liens arising by
operation of Law, arising in the ordinary course of business,
which are not overdue for a period of more than 30 days or which
are being contested in good faith and by appropriate proceedings,
and, during such period during which such Liens are being so
contested, such Liens shall not be executed on any of the assets
of the Credit Parties, provided that the Credit Parties shall
have set aside on their books reserves deemed adequate therefor
and not resulting in qualification by auditors;
(vii) statutory Liens incurred or pledges or deposits made under
worker's compensation, unemployment insurance and other social
security legislation;
(viii) deposits to secure the performance of bids, tenders, trade
contracts, leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature
(other than for borrowed money) incurred in the ordinary course
of business, and Liens in respect of cash collateral to secure
reimbursement obligations in respect of letters of credit (other
than Letters of Credit), provided that, in each such case, such
deposits or Liens existed on the Effective Date (and have not
been extended or renewed after the Effective Date) and the amount
of all such deposits and cash collateral shall not exceed
Cdn.$4,500,000 in the aggregate at any time;
(ix) servitudes, easements, rights-of-way, restrictions and other
similar encumbrances on real property imposed by Law or incurred
in the ordinary course of business and encumbrances consisting of
zoning or building restrictions, easements, licenses,
restrictions on the use of property or minor imperfections in
title thereto which, in the aggregate, are not material, and
which do not in any case materially detract from the value of the
property subject thereto or interfere with the ordinary conduct
of the business of the Credit Parties;
(x) Liens of or resulting from any judgement or award, the time for
the appeal or petition for rehearing of which shall not have
expired, or in respect of which the Credit Parties shall at any
time in good faith be prosecuting an appeal or
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proceeding for review and in respect of which a stay of execution
pending such appeal or proceeding for review shall have been
secured;
(xi) undetermined or inchoate Liens and charges arising or potentially
arising under statutory provisions which have not at the time
been filed or registered in accordance with applicable Law or of
which written notice has not been duly given in accordance with
applicable Law or which although filed or registered, relate to
obligations not due or delinquent;
(xii) the rights reserved to or vested in Governmental Authorities by
statutory provisions or by the terms of leases, licenses,
franchises, grants or permits, which affect any land, to
terminate the leases, licenses, franchises, grants or permits or
to require annual or other periodic payments as a condition of
the continuance thereof;
(xiii) securities to public utilities or to any municipalities or
Governmental Authorities or other public authority when required
by the utility, municipality or Governmental Authorities or other
public authority in connection with the supply of services or
utilities to the Credit Parties;
(xiv) Liens or covenants restricting or prohibiting access to or from
lands abutting on controlled access highways or covenants
affecting the use to which lands may be put; provided that such
Liens or covenants do not materially and adversely affect the use
of the lands by the Credit Parties;
(xv) Liens consisting of royalties payable with respect to any asset
or property of the Credit Parties existing as of the Effective
Date, provided that the existence of any such Lien on any
material property or asset of the Credit Parties shall have been
disclosed in writing to the Lenders prior to the Effective Date;
(xvi) statutory Liens incurred or pledges or deposits made in favour of
a Governmental Authority to secure the performance of obligations
of the Credit Parties under Environmental Laws to which any
assets of the Credit Parties are subject;
(xvii) a Lien granted by a Credit Party to a landlord to secure the
payment of arrears of rent in respect of leased property in the
Province of Quebec leased from such landlord, provided that such
Lien is limited to the assets located at or about such leased
property; and
any extension, renewal or replacement of any of the foregoing; provided that the
Liens permitted hereunder shall not be extended to cover any additional
Indebtedness of the Credit Parties or their property (other than a substitution
of like property), except Liens in respect of Purchase Money Liens and Capital
Lease Obligations as permitted by (iv) above.
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"Permitted Subordinated Refinancing Debt" means Indebtedness of the
Parent that is used to refinance, replace, defease or refund, in whole or in
part, the Indebtedness under the Tranche B Credit Agreements, provided that if,
after the incurrence and application of such Indebtedness to refinance, replace,
defease or refund, in whole or in part, the Indebtedness under the Tranche B
Credit Agreements, there will still be Indebtedness outstanding thereunder, then
(i) the principal amount of such Indebtedness will not exceed the principal
amount of the Indebtedness so refinanced, replaced, defeased or refunded, plus
any other amounts required to be paid in connection therewith and the reasonable
and customary fees and expenses incurred in connection therewith, (ii) no
material terms applicable to such Indebtedness (including the covenants and
events of default) will be materially less favourable to the Parent, the
Borrower or the Lenders than the terms that are applicable under the Tranche B
Credit Agreements, (iii) the covenants contained therein will be less
restrictive than the covenants contained in the Tranche B Credit Agreements,
(iv) there will be no principal amortization payments (including any sinking
fund therefor) on such Indebtedness before the date which is six months after
the "Maturity Date" under the Tranche B Credit Agreements, (v) such Indebtedness
will mature at least six months after the "Maturity Date" under the Tranche B
Credit Agreements, (vi) such Indebtedness will be Indebtedness of the Parent
only, and will not be Guaranteed by the Borrower, (vii) such Indebtedness will
be unsecured, (viii) such Indebtedness will accrue interest at a rate determined
in good faith by the board of directors of the Parent to be a market rate of
interest for such Indebtedness at the time of issuance thereof, and (ix) such
Indebtedness will be otherwise on terms and conditions satisfactory to the
"Administrative Agent" under the Tranche B Credit Agreements; provided, however,
that the restrictions in subparagraphs (ii) and (ix) above shall not apply to
pricing of such Indebtedness.
"Person" includes any natural person, corporation, company, limited
liability company, trust, joint venture, association, incorporated organization,
partnership, Governmental Authority or other entity.
"Plan of Arrangement" means the plan of reorganization and of compromise
and arrangement (as such plan of reorganization and of compromise and
arrangement may have been amended, modified or supplemented in accordance with
its terms) filed with the Canadian Court on February 20, 2003 and sanctioned and
approved by the Canadian Court on March 18, 2003 in the proceedings under the
CCAA and CBCA commenced by the Pre-Filing Parent, the Pre-Filing Borrowers, and
certain other direct and indirect subsidiaries of the Pre-Filing Parent on
January 3, 2003.
"PPSA" means the Personal Property Security Act (Ontario), as amended from
time to time, or the analogous legislation in any other relevant jurisdiction.
"Pre-Filing Borrowers" means Microcell Connexions Inc. and Microcell
Solutions Inc. as borrowers under the Pre-Filing Credit Agreement.
"Pre-Filing Credit Agreement" means the Amended and Restated Credit
Agreement, dated as of May 7, 1999 (as amended, supplemented or otherwise
modified or restated from time to time), among the Pre-Filing Borrowers, the
Pre-Filing Parent, the lenders from time to time
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party thereto (collectively, the "Pre-Filing Lenders"), X.X. Xxxxxx Bank Canada,
as administrative agent and collateral agent for the Pre-Filing Lenders, and
National Bank of Canada, as letter of credit issuing bank.
"Pre-Filing Lenders" has the meaning set out in the definition of
"Pre-Filing Credit Agreement".
"Pre-Filing Parent" means 2861399 Canada Inc., formerly known as Microcell
Telecommunications Inc.
"Prime Rate" means, on any day, the annual rate of interest equal to the
greater of (i) the annual rate of interest announced by the Administrative Agent
and in effect as its prime rate at its principal office in Toronto, Ontario on
such day for determining interest rates on Canadian Dollar-denominated
commercial loans in Canada, and (ii) the annual rate of interest equal to the
sum of (A) the one-month CDOR Rate in effect on such day, plus (B) 1.00%.
"Prime Rate Borrowing" means a Borrowing comprised of one or more Prime
Rate Loans.
"Prime Rate Loan" means a Loan denominated in Canadian Dollars which bears
interest at a rate based upon the Prime Rate.
"Purchase Money Lien" means a Lien taken or reserved in personal property
to secure payment of all or part of its purchase price, provided that such Lien
(i) secures an amount not exceeding the lesser of the purchase price of such
personal property and the Fair Market Value of such personal property, (ii)
extends only to such personal property and its proceeds, and (iii) is granted
prior to or within 30 days after the purchase of such personal property.
"Quarterly Date" means the last day of each of March, June, September, and
December in each calendar year.
"Radiocom Licences" means all Authorizations issued to any Credit Party to
operate wireless PCS communication systems in Canada pursuant to the provisions
of the Radiocommunication Act (Canada).
"Register" has the meaning set forth in Section 9.4(b).
"Reimbursement Obligations" means, at any date, the obligations of the
Borrower then outstanding in respect of the Letters of Credit, to reimburse the
Administrative Agent for the account of the Issuing Bank for the amount paid by
the Issuing Bank in respect of any drawings under the Letters of Credit.
"Related Parties" means, with respect to any Person, such Person's
Affiliates and the respective directors, officers, employees, agents and
advisors of such Person and of such Person's Affiliates.
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"Required Lenders" means, at any time that the Tranche B-Term Loan A
Credit Agreement remains in effect, Lenders with Commitments under this
Agreement (or with Loans if such Commitments have been terminated) and Tranche
B-Term Loan A Lenders with Tranche B-Term Loan A Loans collectively representing
more than 50% of the aggregate amount of Commitments (or Loans if such
Commitments have been terminated) under this Agreement and Tranche B-Term Loan A
Loans then outstanding. When the Tranche B-Term Loan A Credit Agreement is no
longer in effect, "Required Lenders" means Lenders with Commitments under this
Agreement (or with Loans if such Commitments have been terminated) representing
more than 50% of the aggregate amount of Commitments (or Loans if such
Commitments have been terminated) under this Agreement.
"Responsible Officer" means, with respect to any Person (other than a
natural person), the chairman, the president, any vice president, the chief
executive officer or the chief operating officer, and, in respect of financial
or accounting matters, any Financial Officer of such Person; unless otherwise
specified, all references herein to a Responsible Officer mean a Responsible
Officer of the Borrower.
"Restricted Payment" shall mean, with respect to any Person, any payment
by such Person (i) of any dividends on any of its Equity Securities, (ii) on
account of, or for the purpose of setting apart any property for a sinking or
other analogous fund for, the purchase, redemption, retirement or other
acquisition of any of its Equity Securities or any warrants, options or rights
to acquire any such shares, or the making by such Person of any other
distribution in respect of any of its Equity Securities, (iii) of any principal
of or interest or premium on, or of any amount in respect of, a sinking or
analogous fund or defeasance fund for any Indebtedness of such Person ranking in
right of payment subordinate to any liability of such Person under the Financing
Documents, (iv) of any principal of or of any amount in respect of a sinking or
analogous fund or defeasance fund for any Indebtedness of such Person to a
shareholder of such Person or to an Affiliate of a shareholder of such Person,
(v) in respect of an Investment (other than a Permitted Investment), or (vi) of
any management, consulting or similar fee or any bonus payment or comparable
payment, or by way of gift or other gratuity, to any Affiliate of such Person or
to any director or officer thereof.
"Rolling Period" means each Fiscal Quarter taken together with the three
immediately preceding Fiscal Quarters.
"Sale/Leaseback Transaction" means any arrangement between a Credit Party
and another Person (other than another Credit Party) providing for the leasing
by the Credit Party of property which has been or is to be sold or transferred
by the Credit Party to such other Person.
"Second Notes" means the second subordinated convertible 9% notes issuable
by the Parent pursuant to a certain Second Unit Indenture dated May 1, 2003
between Computershare Trust Company of Canada and the Parent.
"Second Preferred Shares" means the second preferred shares in the capital
of the Parent having the terms and conditions contemplated in the Parent
Articles of Incorporation and
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includes the Second Units following any conversion of such Second Preferred
Shares into the Second Units.
"Second Units" has the meaning set out in the Parent Articles of
Incorporation.
"Security Documents" means the "Security Documents" as that term was
defined in the Original Tranche A Exit Facility Agreement.
"Senior Leverage Ratio" means, on any day, the ratio of (a) the
outstanding Indebtedness of the Credit Parties on a consolidated basis, as of
the date of determination minus an amount equal to any outstanding Subordinated
Debt and unsecured Indebtedness as of the date of determination, to (b) EBITDA
of the Credit Parties on a consolidated basis for the previous two Fiscal
Quarters ended on the most recent Quarterly Date, multiplied by 2.
"Standby Letter of Credit" means a letter of credit that (i) is used in
lieu or in support of performance guarantees or performance, surety or other
similar bonds (but expressly excluding stay and appeal bonds) arising in the
ordinary course of business, (ii) is used in lieu or in support of stay or
appeal bonds, (iii) supports the payment of insurance premiums for reasonably
necessary casualty insurance carried by the Borrower, or (iv) supports payment
or performance for identified purchases or exchanges of products in the ordinary
course of business.
"Subordinated Debt" means Indebtedness of the Parent or the Borrower that
has the following attributes: (i) no material terms applicable to such
Indebtedness (including the covenants and events of default) will be materially
less favourable to the Parent, the Borrower or the Lenders than the terms that
are applicable hereunder, (ii) the covenants contained therein will be less
restrictive than the covenants contained herein, (iii) there will be no
principal amortization payments (including any sinking fund therefor) on such
Indebtedness before the date which is six months after the Maturity Date, (iv)
such Indebtedness will mature at least six months after the Maturity Date, (v)
such Indebtedness will be unsecured, (vi) such Indebtedness will accrue interest
at a rate determined in good faith by the board of directors of the Parent or
the Borrower to be a market rate of interest for such Indebtedness at the time
of issuance thereof, and (vii) such Indebtedness will be otherwise on terms and
conditions satisfactory to the Administrative Agent; provided, however, that the
restrictions in subparagraphs (i) and (vii) above shall not apply to pricing of
such Indebtedness.
"Subscriber" means an end user of the Borrower's Fido wireless
communication services that has been assigned a mobile identification number by
the Borrower and whose mobile identification number has been activated on the
Borrower's billing system or platform such that the Borrower can record and xxxx
the airtime used by that end user.
"subsidiary" means, with respect to any Person (the "parent") at any date,
any corporation, limited liability company, partnership, limited partnership,
association or other entity the accounts of which would be consolidated with
those of the parent in the parent's consolidated financial statements if such
financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership,
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limited partnership, association or other entity (a) of which securities or
other ownership interests representing more than 50% of the equity or more than
50% of the ordinary voting power or, in the case of a partnership, more than 50%
of the general partnership interests are, as of such date, owned, controlled or
held, or (b) that is, as of such date, otherwise Controlled, by the parent or
one or more subsidiaries of the parent or by the parent and one or more
subsidiaries of the parent.
"Subsidiary" means any subsidiary of the Parent (other than the Borrower
and any Unrestricted Subsidiary).
"Swap Agreement" means any agreement with respect to any swap, forward,
future or derivative transaction or option or similar agreement involving, or
settled by reference to, one or more rates, currencies, commodities, equity or
debt instruments or securities, or economic, financial or pricing indices or
measures of economic, financial or pricing risk or value or any similar
transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services
provided by current or former directors, officers, employees or consultants of
the Credit Parties shall be a Swap Agreement.
"Swap Exposure" has the meaning set out in Section 2.18.
"Taxes" means all taxes, charges, fees, levies, imposts and other
assessments, including all income, sales, use, goods and services, value added,
capital, capital gains, alternative, net worth, transfer, profits, withholding,
payroll, employer health, excise, real property and personal property taxes, and
any other taxes, customs duties, fees, assessments, or similar charges in the
nature of a tax, including Canada Pension Plan and provincial pension plan
contributions, employment insurance payments and workers' compensation premiums,
together with any instalments with respect thereto, and any interest, fines and
penalties with respect thereto, imposed by any Governmental Authority (including
federal, state, provincial, municipal and foreign Governmental Authorities), and
whether disputed or not.
"Tranche A Exit Facility" has the meaning set out in the Parent Articles
of Incorporation.
"Tranche B Credit Agreements" means collectively, the Tranche B-Term Loan
A Credit Agreement and the Tranche B-Term Loan B Credit Agreement, as such
agreements may be amended, supplemented or otherwise modified or restated from
time to time.
"Tranche B Debt" has the meaning set out in the Parent Articles of
Incorporation.
"Tranche B-Term Loan A Credit Agreement" means the credit agreement, dated
as of the date hereof, among the Parent, the Borrower, the financial
institutions from time to time parties thereto as lenders, JPMorgan Chase Bank,
Toronto Branch, as administrative agent and collateral agent, X.X. Xxxxxx
Securities Inc., as sole bookrunner and joint lead arranger, and Credit Suisse
First Boston, as syndication agent and joint lead arranger which, together with
the Tranche B-Term Loan B Credit Agreement and the amendment and restatement
agreement among such parties dated the date hereof, amends and restates the
Tranche B Debt and establishes the terms
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and conditions of the Tranche B-Term Loan A Loans, as such agreement may be
amended, supplemented or otherwise modified or restated from time to time.
"Tranche B-Term Loan A Lenders" means the lenders under the Tranche B-Term
Loan A Credit Agreement.
"Tranche B-Term Loan A Loans" means the secured non-revolving term loans
in the aggregate principal amount of Cdn.$200,000,000 (or the U.S.$ Equivalent
thereof) owing by the Borrower to the Tranche B-Term Loan A Lenders under the
Tranche B-Term Loan A Credit Agreement.
"Tranche B-Term Loan B Credit Agreement" means the credit agreement, dated
as of the date hereof, among the Parent, the Borrower, the financial
institutions from time to time parties thereto as lenders, JPMorgan Chase Bank,
Toronto Branch, as administrative agent and collateral agent, X.X. Xxxxxx
Securities Inc., as sole bookrunner and joint lead arranger, and Credit Suisse
First Boston, as syndication agent and joint lead arranger which, together with
the Tranche B-Term Loan A Credit Agreement and the amendment and restatement
agreement among such parties dated the date hereof, amends and restates the
Tranche B Debt and establishes the terms and conditions of the Tranche B-Term
Loan B Loans, as such agreement may be amended, supplemented or otherwise
modified or restated from time to time.
"Tranche B-Term Loan B Lenders" means the lenders under the Tranche B-Term
Loan B Credit Agreement.
"Tranche B-Term Loan B Loans" means the secured non-revolving term loans
in the aggregate principal amount of the U.S.$ Equivalent of Cdn.$200,000,000
owing by the Borrower to the Tranche B-Term Loan B Lenders under the Tranche
B-Term Loan B Credit Agreement.
"Tranche C Credit Agreement" means the credit agreement, dated as of May
1, 2003, establishing the terms and conditions of the Tranche C Loans, as such
agreement may be amended, supplemented or otherwise modified or restated from
time to time.
"Tranche C Lenders" means the lenders under the Tranche C Credit
Agreement.
"Tranche C Loans" means the secured non-revolving term loans in the
aggregate principal amount of Cdn.$50,000,000 owing by the Borrower to the
Tranche C Lenders under the Tranche C Credit Agreement.
"Transactions" means the execution, delivery and performance by the
Borrower and the Credit Parties of this Agreement and the other Financing
Documents.
"Type", when used in reference to any Loan, refers to whether the rate of
interest on such Loan is determined by reference to the Prime Rate, the Base
Rate, the Discount Rate or the Eurodollar Rate.
"Units" means the First Units and the Second Units.
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"Unrestricted Subsidiary" means Inukshuk Internet Inc. and Telcom
Investments Inc. (but in the case of Telcom Investments Inc., only for so long
as its sole activity is serving as general partner of GSM Capital Partners), and
their respective successors and permitted assigns.
"U.S. Dollars" and "U.S.$" refer to lawful money of the United States of
America.
"U.S.$ Equivalent" means, at the date of determination, the amount of U.S.
Dollars that the Administrative Agent could purchase, in accordance with its
normal practice, with a specified amount of Canadian Dollars based on the Bank
of Canada noon spot rate on such date.
"U.S.$ Xxxxxx" is defined in Section 2.18.
"U.S.$ Loans" means the Loans denominated in U.S. Dollars.
"wholly-owned subsidiary" of a Person means any subsidiary of such Person
of which securities (except for directors' qualifying shares) or other ownership
interests representing 100% of the equity or 100% of the ordinary voting power
or 100% of the general partnership or membership interests are, at the time any
determination is being made, owned, controlled or held by such Person or one or
more subsidiaries of such Person or by such Person and one or more subsidiaries
of such Person.
1.2 TERMS GENERALLY. The definitions of terms herein shall apply equally
to the singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms. The words "include", "includes" and "including" shall be deemed to
be followed by the phrase "without limitation". The word "will" shall be
construed to have the same meaning and effect as the word "shall". The word "or"
is disjunctive; the word "and" is conjunctive. The word "shall" is mandatory;
the word "may" is permissive. The words "to the knowledge of" means, when
modifying a representation, warranty or other statement of any Person, that the
fact or situation described therein is known by the Person (or, in the case of a
Person other than a natural Person, known by the Responsible Officer of that
Person) making the representation, warranty or other statement, or with the
exercise of reasonable due diligence under the circumstances (in accordance with
the standard of what a reasonable Person in similar circumstances would have
done) would have been known by the Person (or, in the case of a Person other
than a natural Person, would have been known by such Responsible Officer of that
Person). Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein),
(b) any reference herein to any statute or any section thereof shall, unless
otherwise expressly stated, be deemed to be a reference to such statute or
section as amended, restated or re-enacted from time to time, (c) any reference
herein to any Person shall be construed to include such Person's successors and
permitted assigns, (d) the words "this Agreement", "this Credit Agreement",
"herein", "hereof" and "hereunder", and words of similar import, shall be
construed to refer to this Agreement (as the same may be amended, supplemented
or otherwise modified or restated from time to time) in its entirety and
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not to any particular provision hereof, (e) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement, and (f) the words
"asset" and "property" shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.
1.3 ACCOUNTING TERMS; GAAP. Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time. All calculations for the
purposes of determining compliance with the financial ratios and financial
covenants contained herein shall be made on a basis consistent with GAAP in
existence as at the date of this Agreement and used in the preparation of the
financial statements of the Borrower and the Credit Parties referred to in
Section 5.1. For greater certainty, should the classification given to the First
Notes and Second Notes or the First Units and Second Units change under GAAP,
such that the Notes or Units would be treated as debt instead of equity, the
parties hereto acknowledge and agree that, for the purposes of calculating, and
compliance with, the financial ratios and financial covenants set forth
hereunder, the classification given to the said Notes and Units as at the date
of this Agreement shall be the classification used until the termination of this
Agreement. Notwithstanding any provisions of GAAP, the First Preferred Shares
and the Second Preferred Shares shall not be treated as Indebtedness for the
purposes of calculating, and compliance with, the financial ratios and financial
covenants set forth hereunder. Any financial ratios required to be maintained by
the Borrower and the Credit Parties pursuant to this Agreement shall be
calculated by dividing the appropriate component by the other component,
carrying the result to one place more than the number of places by which such
ratio is expressed in this Agreement and rounding the result up or down to the
nearest number (with a round-up if there is no nearest number) to the number of
places by which such ratio is expressed in this Agreement. In the event of a
change in GAAP, the Borrower and the Administrative Agent shall negotiate in
good faith to revise (if appropriate) such ratios and covenants to reflect GAAP
as then in effect, and any new ratio or covenant shall be subject to approval by
the Required Lenders. In the event that such negotiation is successful, all
calculations thereafter made for the purpose of determining compliance with the
financial ratios and financial covenants contained herein shall be made on a
basis consistent with GAAP in existence as at the date of such revision.
1.4 TIME. All time references herein shall, unless otherwise specified,
be references to local time in Xxxxxxx, Xxxxxxx. Time is of the essence of this
Agreement and the other Financing Documents.
1.5 PERMITTED LIENS. Any reference in any of the Financing Documents to
Permitted Liens is not intended to subordinate or postpone, and shall not be
interpreted as subordinating or postponing, or as any agreement to subordinate
or postpone, any Lien created by any of the Financing Documents to any Permitted
Liens.
1.6 SCHEDULES AND EXHIBITS. The following Schedules and Exhibits are
attached to and form part of this Agreement:
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SCHEDULES:
Schedule A - Commitments
Schedule B - Disclosed Matters
EXHIBITS:
Exhibit A - Form of Assignment and Assumption
Exhibit B - Form of Intercreditor Agreement
Exhibit C - Form of Notice of Borrowing/Continuation/Conversion
Exhibit D - Form of Lien Priority Agreement
ARTICLE 2
LOANS
2.1 LOANS. Subject to the terms and conditions and relying upon the
representations, warranties and covenants herein set forth, each Lender commits
to make loans (each, a "Loan") to the Borrower from time to time during the
period commencing on the Effective Date and ending on the Maturity Date in an
aggregate principal amount equal to the amount set forth beside such Lender's
name in Schedule A under the heading "Commitment", as adjusted pursuant to the
terms of this Agreement, provided that any Loans made by any Lender as requested
by the Borrower will not result in (i) such Lender's aggregate Loans, Swap
Exposure and LC Exposure hereunder exceeding such Lender's Commitment, or (ii)
the aggregate Loans, Swap Exposure and LC Exposure outstanding hereunder
exceeding the aggregate Commitments of all Lenders. Within the foregoing limits
and subject to the terms and conditions set forth herein, the Borrower may
borrow, repay and reborrow Loans, by way of Cdn.$ Loans and/or U.S.$ Loans.
Subject to Section 2.7(h) and Section 2.8, Cdn.$ Loans shall consist entirely of
Prime Rate Loans and B/As (or, as applicable, B/A Equivalent Loans), and U.S.$
Loans shall consist entirely of Base Rate Loans and Eurodollar Loans, in each
case as the Borrower may request in accordance herewith. Without limiting any of
the foregoing, the Borrower hereby acknowledges and agrees that its liability in
respect of the Loans shall be absolute and unconditional. At the commencement of
each Contract Period for any B/A (or, as applicable, any B/A Equivalent Loan) or
Interest Period for any Eurodollar Loan, such Loan shall be in an aggregate
amount that is an integral multiple of $500,000 (the "Minimum Denomination") and
not less than $5,000,000, in each case measured in the currency of such Loan.
Cdn.$ Loans and U.S.$ Loans of more than one Type may be outstanding at the same
time; provided that there shall not at any time be more than a total of 5 B/A
Borrowings or 5 Eurodollar Borrowings outstanding. The Lenders acknowledge that
the Loans and the Liens granted as security therefor are subject to the terms of
the Lien Priority Agreement.
2.2 BORROWING, CONTINUATION, CONVERSION AND ROLL-OVER ELECTIONS.
(a) Each Loan shall be made as part of a Borrowing consisting of Loans
made by the Lenders ratably in accordance with their respective
Commitments (as reduced by
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any Swap Exposure or LC Exposure). To request a Borrowing, or to
continue or convert an existing Borrowing (which are also subject to
the requirements in Section 2.2(d) below), the Borrower shall notify
the Administrative Agent of such request by telephone or by written
Notice of Borrowing/Continuation/Conversion substantially in the
form of Exhibit C, (i) in the case of a Eurodollar Borrowing, not
later than 12:00 noon, Toronto time, three Business Days before the
date of the proposed Borrowing, (ii) in the case of a B/A Borrowing,
not later than 12:00 noon, Toronto time, two Business Days before
the date of the proposed Borrowing, or (iii) in the case of a Prime
Rate Borrowing or a Base Rate Borrowing, not later than 12:00 noon,
Toronto time, one Business Day before the date of the proposed
Borrowing; provided that any such notice of a Prime Rate Borrowing
to finance the reimbursement of an LC Disbursement may be given no
later than 10:00 a.m., Toronto time, on the date of the proposed
Borrowing. Each such telephone request or written Notice of
Borrowing/Continuation/Conversion shall be irrevocable, and any
telephone request shall be confirmed promptly by hand delivery or
telecopy to the Administrative Agent of a written Notice of
Borrowing/Continuation/Conversion in the form of Exhibit C, signed
by the Borrower, by 12:00 noon on the date of such telephone
request. The Administrative Agent and each Lender are entitled to
rely upon and act upon any telephone request or written Notice of
Borrowing/Continuation/Conversion given or purportedly given by the
Borrower, and the Borrower hereby waives the right to dispute the
authenticity and validity of any such transaction once the
Administrative Agent or any Lender has advanced funds, accepted a
B/A or made a B/A Equivalent Loan based upon such telephone request
or written Notice of Borrowing/Continuation/Conversion.
(b) Each telephone request or written Notice of
Borrowing/Continuation/Conversion shall specify the following
information:
(i) the aggregate amount of the requested Borrowing;
(ii) the date of such Borrowing, which shall be a Business Day;
(iii) whether such Borrowing is to be a Prime Rate Borrowing, a
B/A Borrowing, a Base Rate Borrowing or a Eurodollar
Borrowing;
(iv) in the case of a Eurodollar Borrowing, the initial Interest
Period to be applicable thereto, which shall be a period
contemplated by the definition of the term "Interest
Period", and in the case of a B/A Borrowing, the initial
Contract Period to be applicable thereto, which shall be a
period contemplated by the definition of the term "Contract
Period"; and
(v) the location and number of the Borrower's account to which
funds are to be disbursed, which shall comply with the
requirements of Section 5.17.
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(c) If no election as to the Type of Borrowing is specified, then the
requested Borrowing shall be a Prime Rate Borrowing (if denominated
in Canadian Dollars) or a Base Rate Borrowing (if denominated in U.
S. Dollars). If no currency is specified, the Borrowing shall be
denominated in Canadian Dollars. If no Interest Period is specified
with respect to any requested Eurodollar Borrowing, then the
Borrower shall be deemed to have selected an Interest Period of 30
days' duration. If no Contract Period is specified with respect to
any requested B/A Borrowing, then the Borrower shall be deemed to
have selected a Contract Period of 30 days' duration. Promptly
following receipt of a telephone request or a written Notice of
Borrowing/Continuation/Conversion, the Administrative Agent shall
advise each Lender of the details thereof and of the amount of such
Lender's Loan to be made as part of the requested Borrowing.
(d) Each Borrowing initially shall be of the Type specified in the
applicable Notice of Borrowing/Continuation/Conversion. Thereafter,
the Borrower may:
(i) elect, as of any Business Day, in the case of a Prime Rate
Borrowing, to convert any Prime Rate Loans (or any part
thereof in an amount not less than Cdn.$5,000,000, or that
is in an integral multiple of the Minimum Denomination in
excess thereof) into another Type of Borrowing;
(ii) elect, as of the last day of the applicable Contract
Period, to roll over any B/A Borrowings which have Contract
Periods expiring on such day (or any part thereof in an
amount not less than Cdn.$5,000,000, or that is in an
integral multiple of the Minimum Denomination in excess
thereof), or to convert such B/A Borrowing into another
Type of Borrowing;
(iii) elect, as of any Business Day, in the case of Base Rate
Borrowings, to convert any Base Rate Borrowing (or any part
thereof in an amount not less than U.S.$5,000,000, or that
is in an integral multiple of the Minimum Denomination in
excess thereof) into another Type of Borrowing; or
(iv) elect, as of the last day of the applicable Interest
Period, to continue any Eurodollar Borrowings which have
Interest Periods expiring on such day (or any part thereof
in an amount not less than U.S.$5,000,000, or that is in an
integral multiple of the Minimum Denomination in excess
thereof), or to convert such Eurodollar Borrowings into
another Type of Borrowing;
provided that (i) if at any time the aggregate amount of Eurodollar Loans
with respect to any Interest Period is reduced, by payment, prepayment or
conversion, to less than U.S.$5,000,000, such Eurodollar Loans shall
automatically convert into Base Rate Loans upon the expiration of the then
current Interest Period, and (ii) B/A Borrowings may not be rolled over if
the amount remaining, after partial conversion into Prime Rate Loans upon
the expiration of the applicable Contract Period, is less than
Cdn.$5,000,000, and such amount remaining shall automatically convert into
Prime Rate Loans upon the
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expiration of such Contract Period ; provided further that if the notice
shall fail to specify the duration of the Contract Period or Interest
Period with respect to any B/A Borrowing or Eurodollar Loan, such Contract
Period or Interest Period, as applicable, shall be one month. All
conversions and continuations shall be made rateably according to the
respective outstanding principal amounts of the Loans, with respect to
which the notice was given, held by each Lender.
2.3 INTEREST AND ACCEPTANCE FEES.
(a) Each Prime Rate Loan shall bear interest (computed in arrears on the
basis of the actual number of days elapsed over a year of 365 days or 366 days,
as the case may be) at a rate per annum equal to the Prime Rate plus the
Applicable Margin. Each Base Rate Loan shall bear interest (computed in arrears
on the basis of the actual number of days elapsed over a year of 365 days or 366
days, as the case may be) at a rate per annum equal to the Base Rate plus the
Applicable Margin. Each Eurodollar Loan shall bear interest (computed in arrears
on the basis of the actual number of days in the relevant Interest Period over a
year of 360 days) at the Eurodollar Rate for the Interest Period in effect for
such Eurodollar Loan plus the Applicable Margin.
(b) The Loans comprising each B/A Borrowing shall be subject to an
Acceptance Fee payable on the first day of the Contract Period
applicable thereto.
(c) Notwithstanding the foregoing, if any principal of any Loan payable
by the Borrower hereunder is not paid when due, whether at stated
maturity, upon acceleration or otherwise, such overdue amount shall
bear interest, after as well as before judgment, at a rate per annum
equal to 2% plus the rate otherwise applicable to such Loan. If any
interest on any U.S.$ Loan or any fee or other amount payable by the
Borrower hereunder in U.S. Dollars is not paid when due, whether at
stated maturity, upon acceleration or otherwise, such overdue amount
shall bear interest, after as well as before judgment, at a rate per
annum equal to 2% plus the rate otherwise applicable to Base Rate
Loans. If any interest on any Cdn.$ Loan or any fee or other amount
payable by the Borrower hereunder in Canadian Dollars is not paid
when due, whether at stated maturity, upon acceleration or
otherwise, such overdue amount shall bear interest, after as well as
before judgment, at a rate per annum equal to 2% plus the rate
otherwise applicable to Prime Rate Loans.
(d) Accrued interest on each Loan (other than B/A Borrowings) shall be
payable in arrears on each Interest Payment Date and, in the event
of any repayment or prepayment of any Loan, accrued interest on the
principal amount repaid or prepaid shall be payable on the date of
such repayment or prepayment.
(e) All interest hereunder shall be payable for the actual number of
days elapsed (including the first day but excluding the last day).
The applicable Prime Rate, Base Rate, Eurodollar Rate or Discount
Rate shall be determined by the
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Administrative Agent, and such determination shall be conclusive
absent manifest error.
(f) For the purposes of the Interest Act (Canada) and disclosure
thereunder, whenever any interest or any fee to be paid hereunder or
in connection herewith is to be calculated on the basis of a 360-day
year, the yearly rate of interest to which the rate used in such
calculation is equivalent is the rate so used multiplied by the
actual number of days in the calendar year in which the same is to
be ascertained and divided by 360. The rates of interest under this
Agreement are nominal rates, and not effective rates or yields. The
principle of deemed reinvestment of interest does not apply to any
interest calculation under this Agreement.
(g) If any provision of this Agreement would oblige the Borrower to make
any payment of interest or other amount payable to any Lender in an
amount or calculated at a rate which would be prohibited by Law or
would result in a receipt by that Lender of "interest" at a
"criminal rate" (as such terms are construed under the Criminal Code
(Canada)), then, notwithstanding such provision, such amount or rate
shall be deemed to have been adjusted with retroactive effect to the
maximum amount or rate of interest, as the case may be, as would not
be so prohibited by Law or so result in a receipt by that Lender of
"interest" at a "criminal rate", such adjustment to be effected, to
the extent necessary (but only to the extent necessary), as follows:
(i) first, by reducing the amount or rate of interest or the
amount or rate of any Acceptance Fee required to be paid to
the affected Lender under this Section 2.3; and
(ii) thereafter, by reducing any fees, commissions, premiums and
other amounts required to be paid to the affected Lender
which would constitute interest for purposes of Section 347
of the Criminal Code (Canada).
2.4 REPAYMENT OF LOANS; FEES.
(a) The Borrower hereby unconditionally promises to pay to the
Administrative Agent, for the account of the Lenders, the unpaid
principal amount of all of the Loans on the Maturity Date.
(b) The Borrower shall pay to the Administrative Agent for the account
of and distribution to each Lender in accordance with its Applicable
Percentage a standby fee for the period commencing on the Effective
Date to and including the Maturity Date (or such earlier date as the
Commitments shall have been terminated entirely) computed at a rate
of 0.50% per annum on the average daily excess amount of the
Commitments over the aggregate amount of outstanding Loans and Swap
Exposure. These standby fees shall be payable in arrears on
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each Quarterly Date, commencing on the first Quarterly Date to
occur after the Effective Date, and on the date on which the
Commitments terminate. All standby fees shall be computed on
the basis of a year of 365 or 366 days, as the case may be,
and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).
(c) The Borrower agrees to pay to the Administrative Agent, for
its own account, fees payable in the amounts and at the times
separately agreed upon in writing between the Borrower and the
Administrative Agent.
(d) The Borrower agrees to pay (i) to the Administrative Agent for
the account of each Lender a participation fee with respect to
its participations in Letters of Credit, which shall accrue at
the rate of 3.50% per annum on the average daily amount of
such Lender's LC Exposure (excluding any portion thereof
attributable to unreimbursed LC Disbursements) during the
period from and including the Effective Date to but excluding
the later of the date on which such Lender's Commitment
terminates and the date on which such Lender ceases to have
any LC Exposure, and (ii) to the Issuing Bank a fronting fee,
which shall accrue at the rate of 0.125% per annum on the
average daily amount of the LC Exposure (excluding any portion
thereof attributable to unreimbursed LC Disbursements) during
the period from and including the Effective Date to but
excluding the later of the date of termination of the
Commitments and the date on which there ceases to be any LC
Exposure, as well as the Issuing Bank's standard fees with
respect to the issuance, amendment, renewal or extension of
any Letter of Credit or processing of drawings thereunder.
Participation fees accrued through and including each
Quarterly Date shall be payable on the first Business Day
following each Quarterly Date, commencing on the first such
date to occur after the Effective Date; provided that all such
fees shall be payable on the date on which the Commitments
terminate and any such fees accruing after the date on which
the Commitments terminate shall be payable on demand. Any
other fees payable to the Issuing Bank pursuant to this
Section 2.4(d) shall be payable within 10 days after demand.
All participation fees shall be computed on the basis of a
year of 365 days or 366 days, as the case may be, and shall be
payable for the actual number of days elapsed (including the
first day but excluding the last day).
(e) All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent (or
to the Issuing Bank, in the case of fees payable to it) for
distribution, in the case of standby fees and participation
fees, to the Lenders. Fees paid shall not be refundable except
in the case of manifest error in the calculation of any fee
payment.
2.5 EVIDENCE OF DEBT.
(a) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing the Indebtedness of
the Borrower to such Lender resulting
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from each Loan made by such Lender hereunder, including the
amounts of principal and interest payable and paid to such
Lender from time to time hereunder.
(b) The Administrative Agent shall maintain accounts in which it
shall record (i) the amount of each Loan made hereunder, the
Type thereof and, in the cases of B/A Borrowings and
Eurodollar Borrowings, the relevant Contract Period or
Interest Period applicable thereto, (ii) the amount of any
principal or interest due and payable or to become due and
payable from the Borrower to each Lender hereunder, and (iii)
the amount of any sum received by the Administrative Agent
hereunder for the account of the Lenders and each Lender's
share thereof.
(c) The entries made in the accounts maintained pursuant to
Sections 2.5(a) and (b) shall be conclusive evidence (absent
manifest error) of the existence and amounts of the
obligations recorded therein; provided that the failure of any
Lender or the Administrative Agent to maintain such accounts
or any error therein shall not in any manner affect the
obligation of the Borrower to repay the Loans in accordance
with the terms of this Agreement. In the event of a conflict
between the records maintained by the Administrative Agent and
any Lender, the records maintained by the Administrative Agent
shall govern.
(d) Any Lender may request that Loans (other than B/As) made by it
be evidenced by a promissory note. In such event, the Borrower
shall prepare, execute and deliver to such Lender a promissory
note payable to the order of such Lender (or, if requested by
such Lender, to such Lender and its registered assigns) and in
a form approved by the Administrative Agent. Thereafter, the
Loans evidenced by such promissory note and interest thereon
shall at all times (including after assignment pursuant to
Section 9.4) be represented by one or more promissory notes in
such form payable to the order of the payee named therein (or,
if such promissory note is a registered note, to such payee
and its registered assigns).
(e) If any payment is required to be made on a day which is not a
Business Day, such payment shall be payable on the next
Business Day.
2.6 PREPAYMENTS OF LOANS.
(a) Voluntary Prepayments. The Borrower may, at its option, at any
time and from time to time, prepay the Loans, in whole or in
part, without premium or penalty, upon giving three Business
Days' prior written notice to the Administrative Agent;
provided, however, that the Borrower may not prepay any B/A
(or, as applicable, any B/A Equivalent Loan) but may defease
any B/A (or, as applicable, any B/A Equivalent Loan) in
accordance with Section 2.7(l). Such notice shall specify the
date and amount of prepayment and whether the prepayment is of
Prime Rate Loans, Base Rate Loans, Eurodollar Loans or any
combination thereof, and, in each case if a combination
thereof, the principal amount allocable
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to each. Upon receipt of such notice, the Administrative Agent
shall promptly notify each Lender of the contents thereof and
of such Lender's Applicable Percentage of such prepayment. If
any such notice is given, the amount specified in such notice
shall be due and payable on the date specified therein,
together with any amounts payable pursuant to Section 2.10 and
accrued interest to such date on the amount prepaid in
accordance with Section 2.3. Each voluntary prepayment of any
Cdn.$ Loan shall be in a minimum principal amount of
Cdn.$1,000,000 and in an integral multiple of Cdn.$100,000,
and each voluntary prepayment of any U.S.$ Loan shall be in a
minimum principal amount of U.S.$1,000,000 and in an integral
multiple of U.S.$100,000. In addition, the Borrower may, at
its option, at any time and from time to time, cancel
permanently, in whole or in part, any unused portion of the
Commitments, upon giving three Business Days' prior written
notice to the Administrative Agent.
(b) Notice by Borrower. Each notice provided by the Borrower
hereunder in respect of any payment hereunder shall be
irrevocable and shall specify the payment date and the
principal amount of each Loan or portion thereof to be
prepaid.
(c) Notice by Administrative Agent. Upon receipt of a notice of
payment pursuant to this Section 2.6 or the Intercreditor
Agreement, the Administrative Agent shall promptly notify each
affected party of the contents thereof and of such party's
rateable share of such payment.
2.7 BANKER'S ACCEPTANCES.
(a) Subject to the terms and conditions of this Agreement, the
Borrower may request a B/A Borrowing by presenting drafts for
acceptance and purchase as B/As by the Lenders.
(b) No Contract Period with respect to a B/A Borrowing shall
extend beyond the Maturity Date.
(c) To facilitate the availment of B/A Borrowings, the Borrower
hereby appoints each Lender as its attorney to sign and
endorse on its behalf (in accordance with a Notice of
Borrowing/Continuation/Conversion relating to a B/A
Borrowing), in handwriting or by facsimile or mechanical
signature as and when deemed necessary by such Lender, blank
forms of B/As in the form requested by such Lender. In this
respect, it is each Lender's responsibility to maintain an
adequate supply of blank forms of B/As for acceptance under
this Agreement. The Borrower recognizes and agrees that all
B/As signed and/or endorsed by a Lender on behalf of the
Borrower shall bind the Borrower as fully and effectually as
if signed in the handwriting of and duly issued by the proper
signing officers of the Borrower. Each Lender is hereby
authorized (in accordance with a Notice of Borrowing/
Continuation/Conversion relating to a B/A Borrowing) to issue
such B/As endorsed in blank in such face amounts as may be
determined by such
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Lender; provided that the aggregate amount thereof is equal to
the aggregate amount of B/As required to be accepted and
purchased by such Lender. No Lender shall be liable for any
damage, loss or other claim arising by reason of any loss or
improper use of any such instrument except the gross
negligence or wilful misconduct of the Lender or its officers,
employees, agents or representatives. Each Lender shall
maintain a record with respect to B/As (i) received by it in
blank hereunder, (ii) voided by it for any reason, (iii)
accepted and purchased by it hereunder, and (iv) cancelled at
their respective maturities. On request by or on behalf of the
Borrower, a Lender shall cancel all forms of B/A which have
been pre-signed or pre-endorsed on behalf of the Borrower and
which are held by such Lender and are not required to be
issued in accordance with the Borrower's irrevocable notice.
Alternatively, the Borrower agrees that, at the request of the
Administrative Agent, the Borrower shall deliver to the
Administrative Agent a "depository note" which complies with
the requirements of the Depository Bills and Notes Act
(Canada), and consents to the deposit of any such depository
note in the book-based debt clearance system maintained by the
Canadian Depository for Securities.
(d) Drafts of the Borrower to be accepted as B/As hereunder shall
be signed as set forth in this Section 2.7. Notwithstanding
that any person whose signature appears on any B/A may no
longer be an authorized signatory for any Lender or the
Borrower at the date of issuance of a B/A, such signature
shall nevertheless be valid and sufficient for all purposes as
if such authority had remained in force at the time of such
issuance and any such B/A so signed shall be binding on the
Borrower.
(e) Promptly following receipt of a Notice of
Borrowing/Continuation/Conversion specifying a Borrowing by
way of B/As, the Administrative Agent shall so advise the
Lenders and shall advise each Lender of the aggregate face
amount of the B/As to be accepted by it and the applicable
Contract Period (which shall be identical for all Lenders).
The aggregate face amount of the B/As to be accepted by the
Lenders shall be in a minimum aggregate amount of
Cdn.$5,000,000 and shall be a whole multiple of Cdn.$500,000,
and such face amount shall be in the Lenders' pro rata
portions of such Loan, provided that the Administrative Agent
may in its sole discretion increase or reduce any Lender's
portion of such B/A to the nearest Cdn.$100,000 without
affecting the aggregate Loan exposure of any Lender.
(f) Upon acceptance of a B/A by a Lender, such Lender shall
purchase, or arrange for the purchase of, each B/A from the
Borrower at the Discount Rate for such Lender applicable to
such B/A accepted by it and provide to the Administrative
Agent the Discount Proceeds for the account of the Borrower.
The Acceptance Fee payable by the Borrower to a Lender under
Section 2.3(b) in respect of each
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B/A accepted by such Lender shall be set off against the
Discount Proceeds payable by such Lender under this Section
2.7.
(g) Each Lender may at any time and from time to time hold, sell,
rediscount or otherwise dispose of any or all B/As accepted
and purchased by it.
(h) If a Lender is not a chartered bank under the Bank Act
(Canada) or if a Lender notifies the Administrative Agent in
writing that it is otherwise unable to accept Banker's
Acceptances, such Lender will, instead of accepting and
purchasing Banker's Acceptances, make a Loan (a "B/A
Equivalent Loan") to the Borrower in the amount and for the
same term as the draft which such Lender would otherwise have
been required to accept and purchase hereunder. Each such
Lender will provide to the Administrative Agent the Discount
Proceeds of such B/A Equivalent Loan for the account of the
Borrower. Each such B/A Equivalent Loan will bear interest at
the same rate which would result if such Lender had accepted
(and been paid an Acceptance Fee) and purchased (on a
discounted basis) a Banker's Acceptance for the relevant
Contract Period (it being the intention of the parties that
each such B/A Equivalent Loan shall have the same economic
consequences for the Lenders and the Borrower as the Banker's
Acceptance which such B/A Equivalent Loan replaces). All such
interest shall be paid in advance on the date such B/A
Equivalent Loan is made, and will be deducted from the
principal amount of such B/A Equivalent Loan in the same
manner in which the Discount Proceeds of a Banker's Acceptance
would be deducted from the face amount of the Banker's
Acceptance. Subject to repayment requirements, on the last day
of the relevant Contract Period for such B/A Equivalent Loan,
the Borrower shall be entitled to convert each such B/A
Equivalent Loan into another Type of Loan, or to roll over
each such B/A Equivalent Loan into another B/A Equivalent
Loan, all in accordance with the applicable provisions of this
Agreement.
(i) With respect to each B/A Borrowing, at or before 10:00 a.m.
two Business Days before the last day of the Contract Period
of such B/A (or, as applicable, such B/A Equivalent Loan), the
Borrower shall notify the Administrative Agent by irrevocable
telephone notice, followed by a written Notice of
Borrowing/Continuation/Conversion by 12:00 noon on the same
day, if the Borrower intends to issue B/As or roll over
maturing B/A Equivalent Loans, as applicable, on such last day
of the Contract Period to provide for the payment of such
maturing B/A (or, as applicable, such B/A Equivalent Loan). If
the Borrower fails to notify the Administrative Agent of its
intention to issue B/As or roll over maturing B/As or B/A
Equivalent Loans, as applicable, on such last day of the
Contract Period, the Borrower shall provide payment to the
Administrative Agent on behalf of the Lenders of an amount
equal to the aggregate face amount of such B/As (or, as
applicable, such B/A Equivalent Loans) on the last day of the
Contract Period of such B/As or B/A Equivalent Loans. If the
Borrower fails to
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make such payment, such maturing B/As (or, as applicable, such
B/A Equivalent Loans) shall be deemed to have been converted
on the last day of the Contract Period into a Prime Rate Loan
in an amount equal to the face amount of such B/As or B/A
Equivalent Loans.
(j) The Borrower waives presentment for payment and any other
defence to payment of any amounts due to a Lender in respect
of a B/A accepted and purchased by it pursuant to this
Agreement which might exist solely by reason of such B/A being
held, at the maturity thereof, by such Lender in its own
right, and the Borrower agrees not to claim any days of grace
if such Lender, as holder, sues the Borrower on the B/A for
payment of the amount payable by the Borrower thereunder. On
the last day of the Contract Period of a B/A, or such earlier
date as may be required or permitted pursuant to the
provisions of this Agreement, the Borrower shall pay the
Lender that has accepted and purchased such B/A the full face
amount of such B/A and, after such payment, the Borrower shall
have no further liability in respect of such B/A and such
Lender shall be entitled to all benefits of, and be
responsible for all payments due to third parties under, such
B/A.
(k) If a Lender grants a participation in a portion of its rights
under this Agreement to a Participant under Section 9.4(d),
then, in respect of any B/A Borrowing, a portion thereof may,
at the option of such Lender, be by way of Banker's
Acceptances accepted by such Participant. In such event, the
Borrower shall upon request of the Administrative Agent or the
Lender granting the participation execute and deliver a form
of Banker's Acceptance undertaking in favour of such
Participant, having terms substantially similar to this
Section 2.7, for delivery to such Participant.
(l) Except as required by any Lender upon the occurrence of an
Event of Default, no B/A Borrowing may be repaid by the
Borrower prior to the expiry date of the Contract Period
applicable to such B/A Borrowing; provided, however, that the
Borrower may defease any B/A Borrowing by depositing with the
Administrative Agent an amount that is sufficient to repay
such B/A Borrowing on the expiry date of the Contract Period
applicable to such B/A Borrowing.
2.8 ALTERNATE RATE OF INTEREST. If prior to the commencement of
any Interest Period for a Eurodollar Loan:
(a) the Administrative Agent determines (which determination shall
be conclusive absent manifest error) that adequate and
reasonable means do not exist for ascertaining the Eurodollar
Rate for such Interest Period; or
(b) the Administrative Agent is advised by the Majority Tranche A
Lenders that the Eurodollar Rate for such Interest Period will
not adequately and fairly reflect the cost to such Lenders of
making or maintaining their Eurodollar Loans for such Interest
Period;
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then the Administrative Agent shall give notice thereof to the Borrower and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Notice of
Borrowing/Continuation/Conversion that requests the conversion of any Loan to,
or continuation of any Loan as, a Eurodollar Loan shall be ineffective, and (ii)
if any Notice of Borrowing/Continuation/Conversion requests a Eurodollar Loan,
such Loan shall be made as a Base Rate Loan.
2.9 INCREASED COSTS; ILLEGALITY.
(a) If any Change in Law shall:
(i) impose, modify or deem applicable any reserve, special
deposit or similar requirement against assets of, deposits
with or for the account of, or credit extended by, any
Lender; or
(ii) impose on any Lender, the Issuing Bank or the London
interbank market any other condition affecting this
Agreement (including the imposition on any Lender of, or
any change to, any Indemnified Tax or other charge with
respect to its Eurodollar Loans or any Letter of Credit or
participation therein, or its obligation to make Eurodollar
Loans or to issue any Letter of Credit);
and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Loan or to increase the cost to such Lender
or the Issuing Bank of participating in any Letter of Credit or any Loan or to
reduce the amount of any sum received or receivable by such Lender or the
Issuing Bank hereunder (whether of principal, interest or otherwise), then the
Borrower will pay to such Lender or the Issuing Bank, as the case may be, such
additional amount or amounts as will compensate such Lender or the Issuing Bank,
as the case may be, for such additional costs incurred or reduction suffered.
(b) If any Lender or the Issuing Bank determines that any Change in Law
regarding capital requirements has or would have the effect of
reducing the rate of return on such Lender's or the Issuing Bank's
capital or on the capital of such Lender's holding company or the
Issuing Bank's holding company, if any, as a consequence of this
Agreement or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by the
Issuing Bank, to a level below that which such Lender or the Issuing
Bank or such Lender's or the Issuing Bank's holding company could
have achieved but for such Change in Law (taking into consideration
such Lender's or the Issuing Bank's policies and the policies of
such Lender's or the Issuing Bank's holding company with respect to
capital adequacy and such Lender's desired return on capital), then
from time to time the Borrower will pay to such Lender or the
Issuing Bank, as the case may be, such additional amount or amounts
as will compensate such
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Lender or the Issuing Bank or such Lender's or the Issuing Bank's
holding company for any such reduction suffered.
(c) A certificate of the Issuing Bank or a Lender setting forth the
amount or amounts necessary to compensate such Lender as specified
in Sections 2.9(a) or (b), together with a brief description of the
Change in Law, shall be delivered to the Borrower, and shall be
conclusive absent manifest error. In preparing any such certificate,
a Lender shall be entitled to use averages and to make reasonable
estimates, and shall not be required to "match contracts" or to
isolate particular transactions. The Borrower shall pay such Lender
the amount shown as due on any such certificate within 30 days after
receipt thereof.
(d) Failure or delay on the part of the Issuing Bank or any Lender to
demand compensation pursuant to this Section 2.9 shall not
constitute a waiver of such Lender's right to demand such
compensation.
(e) In the event that any Lender shall have determined (which
determination shall be reasonably exercised and shall, absent
manifest error, be final, conclusive and binding upon all parties)
at any time that the making or continuance of any Eurodollar Loan
has become unlawful or materially restricted as a result of
compliance by such Lender in good faith with any Change in Law, or
by any applicable guideline or order (whether or not having the
force of Law and whether or not failure to comply therewith would be
unlawful), then, in any such event, such Lender shall give prompt
notice (by telephone and confirmed in writing) to the Borrower and
to the Administrative Agent of such determination (which notice the
Administrative Agent shall promptly transmit to the other Lenders).
Upon the giving of the notice to the Borrower referred to in this
Section 2.9(e), the Borrower's right to request (by continuation,
conversion or otherwise), and such Lender's obligation to make,
Eurodollar Loans shall be immediately suspended, and thereafter any
requested conversion into, or continuation of, Eurodollar Loans
shall, as to such Lender only, be deemed to be a request for a Base
Rate Loan, and if the affected Eurodollar Loan or Loans are then
outstanding, the Borrower shall immediately, or if permitted by
applicable Law, no later than the date permitted thereby, upon at
least one Business Day prior written notice to the Administrative
Agent and the affected Lender, convert each such Eurodollar Loan
into a Base Rate Loan, provided that if more than one Lender is
affected at any time, then all affected Lenders must be treated the
same pursuant to this Section 2.9(e).
2.10 BREAK FUNDING PAYMENTS. In the event of (a) the failure by the
Borrower to borrow, convert, continue or prepay any Loan on the date specified
in any notice delivered by the Borrower pursuant hereto, (b) the payment or
conversion of any principal of any Eurodollar Loan other than on the last day of
an Interest Period applicable thereto (including as a result of an Event of
Default), or (c) the assignment of any Eurodollar Loan other than on the last
day of the Interest Period applicable thereto as a result of a request by the
Borrower pursuant to Section
-43-
2.14, then, in any such event, the Borrower shall compensate each Lender for the
loss, cost and expense attributable to such event. In the case of a Eurodollar
Loan, such loss, cost or expense to any Lender shall be deemed to include an
amount determined by such Lender to be the excess, if any, of (i) the amount of
interest which would have accrued on the principal amount of such Loan had such
event not occurred, at the Eurodollar Rate that would have been applicable to
such Loan, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period for
such Eurodollar Loan), over (ii) the amount of interest which would accrue on
such principal amount for such period at the interest rate which such Lender
would bid were it to bid, at the commencement of such period, for dollar
deposits of a comparable amount and period from other banks in the eurodollar
market. A certificate of any Lender setting forth any amount or amounts that
such Lender is entitled to receive pursuant to this Section 2.10 shall be
delivered to the Borrower and shall be conclusive absent manifest error. The
Borrower shall pay such Lender the amount shown as due on any such certificate
within 30 days after receipt thereof.
2.11 TAXES. The Borrower shall pay any and all present or future stamp or
documentary Taxes or any other excise or property Taxes, charges or similar
levies arising from any payment made hereunder or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement to the relevant
Governmental Authority in accordance with applicable Law.
2.12 PAYMENTS GENERALLY; PRO RATA TREATMENT; SHARING OF SET-OFFS.
(a) The Borrower shall make each payment required to be made by it
hereunder (whether of principal, interest, fees or reimbursement of
LC Disbursements, amounts payable under any of Sections 2.9, 2.10 or
2.11, or otherwise) prior to 12:00 noon, Toronto time, on the date
when due, in immediately available funds, without set-off or
counterclaim. Any amounts received after such time on any date may,
in the discretion of the Administrative Agent, be deemed to have
been received on the next succeeding Business Day for purposes of
calculating interest thereon. All such payments shall be made to the
Administrative Agent at the Payment Office. The Administrative Agent
shall distribute any such payments received by it for the account of
any other Person to the appropriate recipient promptly following
receipt thereof. If any payment hereunder shall be due on a day that
is not a Business Day, the date for payment shall be extended to the
next Business Day, and, in the case of any payment accruing
interest, interest thereon shall be payable for the period of such
extension, provided that, in the case of any payment with respect to
a Eurodollar Loan, the date for payment shall be advanced to the
next preceding Business Day if the next succeeding Business Day is
in a subsequent calendar month. All payments under this Section 2.12
in respect of Eurodollar Loans and Base Rate Loans shall be made in
U.S. Dollars. All other payments under this Section 2.12 shall be
made in Canadian Dollars.
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(b) If at any time insufficient funds are received by and available to
the Administrative Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder,
such funds shall be applied (i) first, towards payment of any
amounts payable to the Administrative Agent pursuant to Section 9.3,
(ii) second, towards payment of interest and fees then due
hereunder, rateably among the parties entitled thereto in accordance
with the amounts of interest and fees then due to such parties, and
(iii) third, towards payment of unreimbursed LC Disbursements and
principal then due hereunder, rateably among the parties entitled
thereto in accordance with the amounts of principal then due to such
parties.
(c) If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of its Loans or participations in LC
Disbursements resulting in such Lender receiving payment of a
greater proportion of the aggregate amount of its Loans, and
participation in LC Disbursements and accrued interest thereon than
the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face
value) participations in the Loans, and participations in LC
Disbursements of other Lenders to the extent necessary so that the
benefit of all such payments shall be shared by the Lenders rateably
in accordance with the aggregate amount of principal of and accrued
interest on their respective Loans and participations in LC
Disbursements; provided that (i) if any such participations are
purchased and all or any -------- portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the
purchase price restored to the extent of such recovery, without
interest, and (ii) this Section 2.12(c) shall not apply to any
payment made by the Borrower pursuant to and in accordance with the
express terms of this Agreement or any payment obtained by a Lender
as consideration for the assignment of or sale of a participation in
any of its Loans or participations in LC Disbursements to any
assignee or participant, other than to any Credit Party (as to which
the provisions of this paragraph shall apply). The Borrower consents
to the foregoing and agrees, to the extent it may effectively do so
under applicable Law, that any Lender acquiring a participation
pursuant to the foregoing arrangements may exercise against the
Borrower rights of set-off and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of
the Borrower in the amount of such participation.
(d) Unless the Administrative Agent shall have received written notice
from the Borrower prior to the date on which any payment is due to
the Administrative Agent for the account of the Lenders or the
Issuing Bank hereunder that the Borrower will not make such payment,
the Administrative Agent may assume that the Borrower has made such
payment on such date in accordance herewith and may, in reliance
upon such assumption, distribute to the Lenders or the Issuing Bank,
as the case may be, the amount due. In such event, if the Borrower
has not in fact made such payment, then each of the Lenders or the
Issuing Bank, as the
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case may be, severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender or
Issuing Bank with interest thereon, for each day from and including
the date such amount is distributed to it to but excluding the date
of payment to the Administrative Agent, at a rate equal to the cost
of funds to the Administrative Agent (if such amount is denominated
in Canadian Dollars) or at the Federal Funds Effective Rate (if such
amount is denominated in U.S. Dollars).
(e) If the Issuing Bank or any Lender shall fail to make any payment
required to be made by it pursuant to Section 2.12(d), then the
Administrative Agent may, in its discretion (notwithstanding any
contrary provision hereof), apply any amounts thereafter received by
the Administrative Agent for the account of the Issuing Bank or such
Lender to satisfy the Issuing Bank or such Lender's obligations
under such Section 2.12(d) until all such unsatisfied obligations
are fully paid.
2.13 CURRENCY INDEMNITY. If, for the purposes of obtaining judgment in
any court in any jurisdiction with respect to this Agreement or any other
Financing Document, it becomes necessary to convert into the currency of such
jurisdiction (the "Judgment Currency") any amount due under this Agreement or
under any other Financing Document in any currency other than the Judgment
Currency (the "Currency Due"), then conversion shall be made at the rate of
exchange prevailing on the Business Day before the day on which judgment is
given. For this purpose "rate of exchange" means the rate at which the
Administrative Agent is able, on the relevant date, to purchase the Currency Due
with the Judgment Currency in accordance with its normal practice at its head
office in Xxxxxxx, Xxxxxxx. In the event that there is a change in the rate of
exchange prevailing between the Business Day before the day on which the
judgment is given and the date of receipt by the Administrative Agent of the
amount due, the Borrower will, on the date of receipt by the Administrative
Agent, pay such additional amounts, if any, or be entitled to receive
reimbursement of such amount, if any, as may be necessary to ensure that the
amount received by the Administrative Agent on such date is the amount in the
Judgment Currency which when converted at the rate of exchange prevailing on the
date of receipt by the Administrative Agent is the amount then due under this
Agreement or such other Financing Document in the Currency Due. If the amount of
the Currency Due which the Administrative Agent is so able to purchase is less
than the amount of the Currency Due originally due to it, the Borrower shall
indemnify and save the Administrative Agent and the Lenders harmless from and
against all loss or damage arising as a result of such deficiency. This
indemnity shall constitute an obligation separate and independent from the other
obligations contained in this Agreement and the other Financing Documents, shall
give rise to a separate and independent cause of action, shall apply
irrespective of any indulgence granted by the Administrative Agent from time to
time and shall continue in full force and effect notwithstanding any judgment or
order for a liquidated sum in respect of an amount due under this Agreement or
any other Financing Document or under any judgment or order.
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2.14 MITIGATION OBLIGATIONS; REPLACEMENT OF LENDERS.
(a) If any Lender requests compensation under Section 2.9, or if the
Borrower is required to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to
Section 2.11, then such Lender shall use reasonable efforts to
designate a different lending office for booking its Loans hereunder
or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the judgment of such Lender,
such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to Section 2.9 or 2.11, as the case may be, in the
future, and (ii) would not subject such Lender to any unreimbursed
cost or expense and would not otherwise be disadvantageous to such
Lender. The Borrower hereby agrees to pay all reasonable costs and
expenses incurred by any Lender in connection with any such
designation or assignment.
(b) If any Lender requests compensation under Section 2.9, or if the
Borrower is required to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to
Section 2.11, then the Borrower may, at its sole expense and effort,
upon notice to such Lender and the Administrative Agent, require
such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in Section 9.4), all
its interests, rights and obligations under this Agreement to an
assignee that shall assume such obligations (which assignee may be
another Lender, if a Lender accepts such assignment); provided that
(i) the Borrower shall have received the prior written consent of
the Administrative Agent and the Issuing Bank, which consent shall
not unreasonably be withheld, (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans
and participations in LC Disbursements, accrued interest thereon,
accrued fees and all other amounts payable to it hereunder, from the
assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrower (in the case of all other
amounts), and (iii) in the case of any such assignment resulting
from a claim for compensation under Section 2.9 or payments required
to be made pursuant to Section 2.11, such assignment will result in
a reduction in such compensation or payments. A Lender shall not be
required to make any such assignment and delegation if an Event of
Default has occurred and is continuing or if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances
entitling the Borrower to require such assignment and delegation
cease to apply.
2.15 LETTERS OF CREDIT.
(a) General. Subject to the terms and conditions set forth herein, the
Borrower may request the issuance of Letters of Credit, in an amount
not to exceed Cdn.$5,000,000 (less the amount of any deposits and
cash collateral provided as permitted under paragraph (viii) of the
definition of Permitted Liens) in the
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aggregate, as an availment of the Commitments, in a form reasonably
acceptable to the Administrative Agent and the Issuing Bank, at any
time and from time to time up to the Maturity Date. In the event of
any inconsistency between the terms and conditions of this Agreement
and the terms and conditions of any form of Letter of Credit
application or other agreement submitted by the Borrower to, or
entered into by the Borrower with, the Issuing Bank relating to any
Letter of Credit, the terms and conditions of this Agreement shall
govern.
(b) Notice of Issuance, Amendment, Renewal, Extension, Certain
Conditions. To request the issuance of a Letter of Credit (or the
amendment, renewal or extension of an outstanding Letter of Credit),
the Borrower shall hand deliver or telecopy (or transmit by
electronic communication, if arrangements for doing so have been
approved by the Issuing Bank) to the Issuing Bank and the
Administrative Agent (at least five Business Days in advance of the
requested date of issuance, amendment, renewal or extension) a
notice requesting the issuance of a Letter of Credit, or identifying
the Letter of Credit to be amended, renewed or extended, the date of
issuance, amendment, renewal or extension, the date on which such
Letter of Credit is to expire (which shall comply with Section
2.15(c)), the amount of such Letter of Credit, the name and address
of the beneficiary thereof and such other information as shall be
necessary to prepare, amend, renew or extend such Letter of Credit.
If requested by the Issuing Bank, the Borrower also shall submit a
Letter of Credit application on the Issuing Bank's standard form in
connection with any request for a Letter of Credit. A Letter of
Credit shall be issued, amended, renewed or extended only if (and
upon issuance, amendment, renewal or extension of each Letter of
Credit, the Borrower shall be deemed to represent and warrant that),
after giving effect to such issuance, amendment, renewal or
extension, the aggregate LC Exposure shall not exceed
Cdn.$5,000,000.
(c) Expiration Date. Each Letter of Credit shall expire at or prior to
the close of business on the date that is five Business Days prior
to the Maturity Date.
(d) Participations. By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and
without any further action on the part of the Issuing Bank or the
Lenders, the Issuing Bank hereby grants to each Lender, and each
Lender hereby acquires from the Issuing Bank, a participation in
such Letter of Credit equal to such Lender's Applicable Percentage
of the aggregate amount available to be drawn under such Letter of
Credit. In consideration and in furtherance of the foregoing, each
Lender hereby absolutely and unconditionally agrees to pay to the
Administrative Agent, for the account of the Issuing Bank, such
Lender's Applicable Percentage of each LC Disbursement made by the
Issuing Bank and not reimbursed by the Borrower on the date due as
provided in Section 2.15(e), or of any reimbursement payment
required to be refunded to the Borrower for any reason. Each Lender
acknowledges and agrees
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that its obligation to acquire participations pursuant to this
Section 2.15(d) in respect of Letters of Credit is absolute and
unconditional and shall not be affected by any circumstance
whatsoever, including any amendment, renewal or extension of any
Letter of Credit or the occurrence and continuance of a Default or
reduction or termination of the Commitments, and that each such
payment shall be made without any offset, abatement, withholding or
reduction whatsoever.
(e) Reimbursement. If the Issuing Bank shall make any LC Disbursement in
respect of a Letter of Credit, the Borrower shall reimburse such LC
Disbursement by paying to the Administrative Agent an amount equal
to such LC Disbursement not later than 12:00 noon, Toronto time, on
the date that such LC Disbursement is made, if the Borrower shall
have received notice of such LC Disbursement prior to 10:00 a.m.,
Toronto time, on such date, or, if such notice has not been received
by the Borrower prior to such time on such date, then not later than
12:00 noon, Toronto time, on (i) the Business Day that the Borrower
receives such notice, if such notice is received prior to 10:00
a.m., Toronto time, on the day of receipt, or (ii) the Business Day
immediately following the day that the Borrower receives such
notice, if such notice is not received prior to such time on the day
of receipt; provided that the Borrower may, subject to the
conditions to borrowing set forth herein, request in accordance with
Section 2.2 that such payment be financed with a Prime Rate
Borrowing in an equivalent amount and, to the extent so financed,
the Borrower's obligation to make such payment shall be discharged
and replaced by the resulting Prime Rate Borrowing. If the Borrower
fails to make such payment when due, the Administrative Agent shall
notify each Lender of the applicable LC Disbursement, the payment
then due from the Borrower in respect thereof and such Lender's
Applicable Percentage thereof. Promptly following receipt of such
notice, each Lender shall pay to the Administrative Agent its
Applicable Percentage of the payment then due from the Borrower, and
the Administrative Agent shall promptly pay to the Issuing Bank the
amounts so received by it from the Lenders. Promptly following
receipt by the Administrative Agent of any payment from the Borrower
pursuant to this Section 2.15(e), the Administrative Agent shall
distribute such payment to the Issuing Bank or, to the extent that
Lenders have made payments pursuant to this Section 2.15(e) to
reimburse the Issuing Bank, then to such Lenders and the Issuing
Bank as their interests may appear. Any payment made by a Lender
pursuant to this paragraph to reimburse the Issuing Bank for any LC
Disbursement (other than the funding of Prime Rate Borrowings as
contemplated above) shall not constitute a Loan and shall not
relieve the Borrower of its obligation to reimburse such LC
Disbursement.
(f) Obligations Absolute. The Borrower's obligation to reimburse LC
Disbursements as provided in Section 2.15(e) shall be absolute,
unconditional and irrevocable, and shall be performed strictly in
accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of
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validity or enforceability of any Letter of Credit or this
Agreement, or any term or provision therein or herein, (ii) any
draft or other document presented under a Letter of Credit proving
to be forged, fraudulent or invalid in any respect or any statement
therein being untrue or inaccurate in any respect, (iii) payment by
the Issuing Bank under a Letter of Credit against presentation of a
draft or other document that does not comply with the terms of such
Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that
might, but for the provisions of this Section 2.15, constitute a
legal or equitable discharge of, or provide a right of set-off
against, the Borrower's obligations hereunder. Neither the
Administrative Agent, the Lenders nor the Issuing Bank, nor any of
their Related Parties, shall have any liability or responsibility by
reason of or in connection with the issuance or transfer of any
Letter of Credit or any payment or failure to make any payment
thereunder (irrespective of any of the circumstances referred to in
the preceding sentence), or any error, omission, interruption, loss
or delay in transmission or delivery of any draft, notice or other
communication under or relating to any Letter of Credit (including
any document required to make a drawing thereunder), any error in
interpretation of technical terms or any consequence arising from
causes beyond the control of the Issuing Bank; provided that the
foregoing shall not be construed to excuse the Issuing Bank from
liability to the Borrower to the extent of any direct damages (as
opposed to consequential damages, claims in respect of which are
hereby waived by the Borrower to the extent permitted by applicable
Law) suffered by the Borrower that are caused by the Issuing Bank's
failure to exercise care when determining whether drafts and other
documents presented under a Letter of Credit comply with the terms
thereof. The parties hereto expressly agree that, in the absence of
gross negligence or wilful misconduct on the part of the Issuing
Bank (as finally determined by a court of competent jurisdiction),
the Issuing Bank shall be deemed to have exercised care in each such
determination. In furtherance of the foregoing and without limiting
the generality thereof, the parties agree that, with respect to
documents presented which appear on their face to be in substantial
compliance with the terms of a Letter of Credit, the Issuing Bank
may, in its sole discretion, either accept and make payment upon
such documents without responsibility for further investigation,
regardless of any notice or information to the contrary, or refuse
to accept and make payment upon such documents if such documents are
not in strict compliance with the terms of such Letter of Credit.
(g) Disbursement Procedures. The Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a
demand for payment under a Letter of Credit. The Issuing Bank shall
promptly notify the Administrative Agent and the Borrower by
telephone (confirmed by telecopy) of such demand for payment and
whether the Issuing Bank has made or will make an LC Disbursement
thereunder; provided that any failure to give or delay in giving
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such notice shall not relieve the Borrower of its obligation to
reimburse the Issuing Bank and the Lenders with respect to any such
LC Disbursement.
(h) Interim Interest. If the Issuing Bank shall make any LC
Disbursement, then, unless the Borrower shall reimburse such LC
Disbursement in full on the date such LC Disbursement is made, the
unpaid amount thereof shall bear interest, for each day from and
including the date such LC Disbursement is made to but excluding the
date that the Borrower reimburses such LC Disbursement, at the rate
then applicable to Prime Rate Loans; provided that, if the Borrower
fails to reimburse such LC Disbursement when due pursuant to Section
2.15(e), then this Section 2.15(h) shall apply. Interest accrued
pursuant to this Section 2.15(h) shall be for the account of the
Issuing Bank, except that interest accrued on and after the date of
payment by any Lender pursuant to Section 2.15(e) to reimburse the
Issuing Bank shall be for the account of such Lender to the extent
of such payment.
(i) Replacement of the Issuing Bank. The Issuing Bank may be replaced at
any time by written agreement among the Borrower, the Administrative
Agent, the replaced Issuing Bank and the successor Issuing Bank. The
Administrative Agent shall notify the Lenders of any such
replacement of the Issuing Bank. At the time any such replacement
shall become effective, the Borrower shall pay all unpaid fees
accrued for the account of the replaced Issuing Bank. From and after
the effective date of any such replacement, (i) the successor
Issuing Bank shall have all the rights and obligations of the
Issuing Bank under this Agreement with respect to Letters of Credit
to be issued thereafter, and (ii) references herein to the term
"Issuing Bank" shall be deemed to refer to such successor or to any
previous Issuing Bank, or to such successor and all previous Issuing
Banks, as the context shall require. After the replacement of an
Issuing Bank hereunder, the replaced Issuing Bank shall remain a
party hereto and shall continue to have all the rights and
obligations of an Issuing Bank under this Agreement with respect to
Letters of Credit issued by it prior to such replacement, but shall
not be required to issue additional Letters of Credit.
(j) Cash Collateralization. If any Event of Default shall occur and be
continuing, on the Business Day that the Borrower receives notice
from the Administrative Agent or the Majority Tranche A Lenders
demanding the deposit of cash collateral pursuant to this Section
2.15(j), the Borrower shall deposit in an account with the
Administrative Agent, in the name of the Administrative Agent and
for the benefit of the Lenders, an amount in cash equal to the LC
Exposure as of such date plus any accrued and unpaid interest
thereon; provided that the obligation to deposit such cash
collateral shall become effective immediately, and such deposit
shall become immediately due and payable, without demand or other
notice of any kind, upon the occurrence of any Event of Default with
respect to the Borrower described in Section 7.1(h), (i) or (j).
Such deposit shall be held by the
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Administrative Agent as collateral for the payment and performance
of the obligations of the Borrower under this Agreement. The
Administrative Agent shall have exclusive dominion and control,
including the exclusive right of withdrawal, over such account.
Other than any interest earned on the investment of such deposits,
which investments shall be made at the option and sole discretion of
the Administrative Agent and at the Borrower's risk and expense,
such deposits shall not bear interest. Interest or profits, if any,
on such investments shall accumulate in such account. Moneys in such
account shall be applied by the Administrative Agent to reimburse
the Issuing Bank for LC Disbursements for which it has not been
reimbursed and, to the extent not so applied, shall be held for the
satisfaction of the reimbursement obligations of the Borrower for
the LC Exposure at such time or, if the maturity of the Loans has
been accelerated, be applied to satisfy other obligations of the
Borrower under this Agreement. If the Borrower is required to
provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not
applied as aforesaid) shall be returned to the Borrower within three
Business Days after all Events of Default have been cured or waived.
2.16 INDEMNITY FOR RETURNED PAYMENTS. If after receipt of any payment
which is applied to the payment of all or any part of the Loans, the
Administrative Agent or any Lender is for any reason compelled to surrender such
payment or proceeds to any Person because such payment or application of
proceeds is invalidated, declared fraudulent, set aside, determined to be void
or voidable as a preference, impermissible setoff, or a diversion of trust
funds, or for any other reason, then the Loans or part thereof intended to be
satisfied shall be revived and continued and this Agreement shall continue in
full force as if such payment or proceeds had not been received by the
Administrative Agent or such Lender and the Borrower shall be liable to pay to
the Administrative Agent and the Lenders, and hereby does indemnify the
Administrative Agent and the Lenders and holds the Administrative Agent and the
Lenders harmless for the amount of such payment or proceeds surrendered. The
provisions of this Section 2.16 shall be and remain effective notwithstanding
any contrary action which may have been taken by the Administrative Agent or any
Lender in reliance upon such payment or application of proceeds, and any such
contrary action so taken shall be without prejudice to the Administrative
Agent's and the Lenders' rights under this Agreement and shall be deemed to have
been conditioned upon such payment or application of proceeds having become
final and irrevocable. The provisions of this Section 2.16 shall survive the
termination of this Agreement.
2.17 INCREASE IN COMMITMENTS; PERMITTED ADDITIONAL EXIT FACILITY DEBT. At
any time after the Effective Date, and provided that no Default or Event of
Default has occurred and is continuing, the Borrower may request that one or
more of the then-existing Lenders or any other Person acceptable to the
Administrative Agent provide to the Borrower Permitted Additional Exit Facility
Debt, to be effected by way of an increase in the Commitments hereunder;
provided that the amount of Permitted Additional Exit Facility Debt shall not
exceed Cdn.$75,000,000, less the principal amount of Commitments existing on the
Effective Date. Notwithstanding anything to the contrary in this Agreement, the
incurrence of Permitted
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Additional Exit Facility Debt shall not require the consent of any Lender other
than any Lender providing such Permitted Additional Exit Facility Debt, but no
Lender shall have any obligation to participate in any Permitted Additional Exit
Facility Debt unless it agrees to do so in its sole discretion. Any increase in
the Commitments hereunder shall be documented by way of an amendment to this
Agreement in form and substance satisfactory to the Administrative Agent.
2.18 HEDGING ARRANGEMENTS. The Borrower may enter into Swap Agreements
with one or more of the Lenders (or their respective Affiliates) solely to
manage currency exposure (the "U.S.$ Xxxxxx") and/or interest rate exposure (the
"Interest Rate Xxxxxx"), and not for speculative purposes. Any obligations of
the Borrower under any U.S.$ Xxxxxx entered into with any of the Lenders or any
Interest Rate Xxxxxx entered into with any of the Lenders shall be secured by
the security instruments created in favour of the Lenders, pari passu with the
other obligations of the Borrower under this Agreement. Any credit exposure
under the U.S.$ Xxxxxx or the Interest Rate Xxxxxx (as determined by the
Administrative Agent, in its sole discretion) (the "Swap Exposure") shall be
considered a usage of Commitments and shall be deducted from the amounts
otherwise available to be borrowed under the Commitments. The amount of
Cdn.$16,000,000 is agreed to be the initial Swap Exposure of JPMorgan Chase
Bank, Toronto Branch (until otherwise determined by the Administrative Agent, in
its sole discretion). Notwithstanding anything to the contrary in this
Agreement, no Lender (and no Affiliate of any Lender) shall have any obligation
to participate in the U.S.$ Xxxxxx or the Interest Rate Xxxxxx unless it agrees
to do so in its sole discretion.
2.19 EXISTING SECURITY. The Borrower and the Parent confirm that, the
Liens granted pursuant to the Pre-Filing Credit Agreement and the Existing
Security shall remain in full force and effect as security for the obligations
of the Borrower and the Parent hereunder.
2.20 ADDITIONAL LOANS.
(a) Subject to the terms and conditions hereof, at any time after the
Effective Date, the Borrower may request that the Lenders or any
other Persons establish in favour of the Borrower one or more
additional Loans or Commitments or Tranche B-Term Loan A Loans in an
aggregate principal amount, for all such additional Loans or
Commitments or Tranche B-Term Loan A Loans, not exceeding
Cdn.$25,000,000 (each such additional Loan or Commitment or Tranche
B-Term Loan A Loan, an "Additional Loan"), provided that no Default
has occurred and is continuing and that the Credit Parties would
remain in pro forma compliance with the financial covenants in
Section 5.14 immediately after giving effect to the Additional
Loans.
(b) Notwithstanding anything to the contrary in this Agreement, (i) no
Additional Loan shall require the consent of any Lender other than
any Lender providing all or part of the Additional Loan, but each
Additional Loan shall require the approval of the Administrative
Agent, (ii) no Lender shall have any obligation to participate in
any Additional Loan unless it agrees to do so in its sole
discretion, (iii) the aggregate amount of all Additional Loans shall
not exceed
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Cdn.$25,000,000, (iv) no Additional Loans shall mature prior to the
Maturity Date (if the Additional Loans are Loans hereunder) or the
Maturity Date (as such term is defined in the Tranche B-Term Loan A
Credit Agreement, if the Additional Loans are Tranche B-Term Loan A
Loans), and (v) no Additional Loan shall have the benefit of any
representations, warranties, covenants, events of default or other
material provisions (other than pricing, which shall be determined
by the Borrower and the lenders providing the Additional Loans)
which are not also extended to the Lenders (if the Additional Loans
are Loans hereunder) or the Tranche B-Term Loan A Lenders (if the
Additional Loans are Tranche B-Term Loan A Loans).
(c) Any Additional Loan shall be documented pursuant to an amendment
agreement, or an amended and restated version of this Agreement (or
the Tranche B-Term Loan A Credit Agreement, as appropriate)
satisfactory to the Administrative Agent and executed by the Credit
Parties, the lenders providing the Additional Loans and the
Administrative Agent. For greater certainty, any Person providing
any such Additional Loan (if the Additional Loans are Loans
hereunder) shall be entitled to share pro rata in any prepayments
made by the Borrower to the Lenders and the obligations of the
Borrower and the other Credit Parties under any such Additional Loan
(if the Additional Loans are Loans hereunder) shall be secured pari
passu with the other Loans hereunder.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES
Each of the Borrower and the Parent represents and warrants to the
Administrative Agent, the Issuing Bank and the Lenders that:
3.1 ORGANIZATION; POWERS. The Borrower and each other Credit Party is
duly organized, validly existing and in good standing under the Laws of the
jurisdiction of its organization, has all requisite power and authority to carry
on its business as now and formerly conducted and, except where the failure to
do so, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect, is qualified to do business in, and is in
good standing in, every jurisdiction where such qualification is required.
3.2 AUTHORIZATION; ENFORCEABILITY. The Transactions are within the
Borrower's corporate powers and have been duly authorized by all necessary
corporate and, if required, shareholder action. This Agreement and the other
Financing Documents have been duly executed and delivered by the Borrower and
each other Credit Party (as applicable) and constitute legal, valid and binding
obligations of the Borrower and each other Credit Party (as applicable),
enforceable in accordance with their terms, subject to applicable bankruptcy,
insolvency, reorganisation, moratorium or other Laws affecting creditors' rights
generally and subject to general principles of equity, regardless of whether
considered in a proceeding in equity or at law.
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3.3 GOVERNMENTAL APPROVALS; NO CONFLICTS. The Transactions (a) do not
require any consent or approval of, registration or filing with, or any other
action by, any Governmental Authority, except such as have been obtained or made
and are in full force and effect and except those disclosed in Schedule B, (b)
will not violate any applicable Law or the charter, by-laws or other
organizational documents of the Borrower or any Credit Party or any order of any
Governmental Authority, (c) will not violate or result in a default under any
indenture, agreement or other instrument binding upon the Borrower or any Credit
Party or their respective assets, or give rise to a right thereunder to require
any payment to be made by the Borrower or any Credit Party, and (d) will not
result in the creation or imposition of any Lien on any asset of the Borrower or
any Credit Party, except for any Lien arising in favour of the Collateral Agent,
for the benefit of the Lenders, under the Financing Documents.
3.4 FINANCIAL CONDITION; NO MATERIAL ADVERSE EFFECT.
(a) The Parent has furnished to the Lenders its consolidated balance
sheets and statements of income, retained earnings and changes in
financial position as of and for the Fiscal Year ended December 31,
2003, certified by a Responsible Officer. Such financial statements
present fairly, in all material respects, the consolidated financial
position and results of operations and cash flows of the Parent as
of such dates and for such periods in accordance with GAAP, subject
to year end audit adjustments and the absence of footnotes. The
Parent, the Borrower and the Subsidiaries do not have any material
liabilities (contingent or otherwise) that are not reflected in such
financial statements.
(b) Since December 31, 2003, there has been no event, development or
circumstance that has had or could reasonably be expected to have a
Material Adverse Effect.
(c) All information (including the information contained in all
financial statements) pertaining to the Parent, its Subsidiaries and
any Unrestricted Subsidiary (other than projections) that has been
or will be made available to the Lenders or the Administrative Agent
by the Parent or any representative of the Parent and its
Subsidiaries, taken as a whole, is or will be, when furnished,
complete and correct in all material respects and does not or will
not, when furnished, contain any untrue statement of a material fact
or omit to state a material fact necessary in order to make the
statements contained therein not materially misleading in light of
the circumstances under which such statements are made. The
projections that have been or will be made available to the Lenders
or the Administrative Agent by the Parent or the Borrower or any
representative of the Parent or the Borrower have been or will be
prepared in good faith based upon assumptions that were reasonable
when made.
3.5 LITIGATION.
(a) There are no actions, suits or proceedings (including any
Tax-related matter) by or before any arbitrator or Governmental
Authority pending against or, to the
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knowledge of the Borrower, threatened against or affecting the
Borrower or any other Credit Party (i) as to which there is a
reasonable possibility of an adverse determination and that, if
adversely determined, could reasonably be expected, individually or
in the aggregate, to result in a Material Adverse Effect other than
the matters disclosed in Schedule B, or (ii) that involve this
Agreement, any other Financing Document, or the Transactions.
(b) Except for the matters disclosed in Schedule B and except with
respect to any other matters that, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse
Effect, neither the Borrower nor any other Credit Party (i) has
failed to comply with any Environmental Law or to obtain, maintain
or comply with any permit, license or other approval required under
any Environmental Law, (ii) has become subject to any Environmental
Liability, (iii) has received notice of any claim with respect to
any Environmental Liability, or (iv) knows of any basis for any
Environmental Liability.
3.6 COMPLIANCE WITH LAWS AND AGREEMENTS. The Borrower and each other
Credit Party is in compliance with all Laws applicable to it or its property and
all indentures, agreements and other instruments binding upon it or its
property, except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect. Neither
the Borrower nor any other Credit Party has violated or failed to obtain any
Authorization necessary to the ownership of any of its property or assets or the
conduct of its business, which violation or failure could reasonably be expected
to have (in the event that such a violation or failure were asserted by any
Person through appropriate action) a Material Adverse Effect.
3.7 TAXES. The Borrower and each other Credit Party has timely filed or
caused to be filed all Tax returns and reports required to have been filed and
has paid or caused to be paid all Taxes required to have been paid by it
(including all instalments with respect to the current period) and has made
adequate provisions for Taxes for the current period, except Taxes that are
being contested in good faith by appropriate proceedings and for which the
Borrower or such other Credit Party, as applicable, has set aside on its books
adequate reserves.
3.8 TITLES TO REAL PROPERTY. Each Credit Party has indefeasible fee
simple title to its respective owned real properties, and with respect to leased
real properties, indefeasible title to the leasehold estate with respect
thereto, pursuant to valid and enforceable leases, free and clear of all Liens
except Permitted Liens. All real property owned by each Credit Party as at the
Effective Date is described in Schedule B. All real property lease agreements
pursuant to which any Credit Party leases any office space or switch room
premises as at the Effective Date are described in Schedule B.
3.9 TITLES TO PERSONAL PROPERTY. Each Credit Party has valid
indefeasible title to all of its respective personal property, free and clear of
all Liens except Permitted Liens.
3.10 PENSION PLANS. No Credit Party has established or maintains a
Pension Plan.
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3.11 DISCLOSURE. Each Credit Party has made available to the Lenders all
agreements, instruments and corporate or other restrictions to which it is
subject, and all other matters known to it, that, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect.
3.12 DEFAULTS. No Credit Party is in default nor has any event or
circumstance occurred which, but for the passage of time or the giving of
notice, or both, would constitute a default (in either case in any respect that
would have a Material Adverse Effect) under any loan or credit agreement,
indenture, mortgage, deed of trust, security agreement or other instrument or
agreement evidencing or pertaining to any Indebtedness of any Credit Party, or
under any Material Contract.
3.13 CASUALTIES; TAKING OF PROPERTIES. Since December 31, 2003, neither
the Business nor the properties of the Borrower or any other Credit Party have
been affected in a manner that has had, or could reasonably be expected to have,
a Material Adverse Effect as a result of any fire, explosion, earthquake, flood,
drought, windstorm, accident, strike or other labor disturbance, embargo,
requisition or taking of property or cancellation of contracts, permits or
concessions by any domestic or foreign Governmental Authority, riot, activities
of armed forces, or acts of God or of any public enemy.
3.14 SUBSIDIARIES. As of the Effective Date, the Borrower has no
subsidiaries other than those listed in Schedule B. As of the Effective Date,
the Parent has no subsidiaries except the Borrower and the subsidiaries of the
Parent listed in Schedule B. The Pre-Filing Parent has no assets and is in the
process of liquidation and dissolution pursuant to Part XVIII of the CBCA.
3.15 INSURANCE. All policies of fire, liability, workers' compensation,
casualty, flood, business interruption and other forms of insurance owned or
held by each of the Credit Parties are: sufficient for compliance with all
requirements of applicable Law and of all Material Contracts; are valid,
outstanding and enforceable policies; provide adequate insurance coverage in at
least such amounts and against at least such risks (but including in any event
public liability) as are usually insured against in the same general area by
companies engaged in the same or a similar business for the assets and
operations of each Credit Party; and will not in any way be affected by, or
terminate or lapse by reason of, the Transactions. All such material policies
are in full force and effect, all premiums with respect thereto have been paid
in accordance with their respective terms, and no notice of cancellation or
termination has been received with respect to any such policy. No Credit Party
maintains any self-insurance program or deductible limits with respect to its
assets or operations or material risks with respect thereto in excess of
Cdn.$1,000,000 (or U.S.$1,000,000 in the case of directors and officers
liability coverage). The certificate of insurance delivered to the Lenders
pursuant to Section 4.1(i) contains an accurate and complete description of all
material policies of insurance owned or held by each Credit Party on the
Effective Date.
3.16 MATERIAL CONTRACTS. Schedule B sets out each Material Contract in
effect as at the Effective Date. A copy of each such Material Contract (each of
which copies is true and complete except for provisions thereof which by the
express terms thereof may only be disclosed
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to authorized representatives of the parties thereto) has been delivered to the
Administrative Agent. Each Material Contract is in full force and effect. No
Credit Party is in default under or in breach of any term or condition of any
Material Contract that would have, either individually or in the aggregate, a
Material Adverse Effect, nor is any Credit Party aware of any default under or
breach of any term or condition of any Material Contract by any other party
thereto that would have a Material Adverse Effect. No Material Contract contains
any material provisions which impose burdensome or onerous obligations on any
Credit Party which are inconsistent with prudent commercial activity by each
Credit Party.
3.17 ENVIRONMENTAL MATTERS. Except as disclosed to the Lenders in
Schedule B:
(a) Environmental Laws, etc. Neither any property of any Credit Party
nor the operations conducted thereon violate any applicable order of
any court or Governmental Authority or Environmental Laws, which
violation could reasonably be expected to result in remedial
obligations having a Material Adverse Effect, assuming disclosure to
the applicable Governmental Authority of all relevant facts,
conditions and circumstances, if any, pertaining to the relevant
property.
(b) Notices, Permits, etc. All notices, permits, licenses or similar
authorizations, if any, required to be obtained or filed by any
Credit Party in connection with the operation or use of any and all
property of any Credit Party, including but not limited to past or
present treatment, transportation, storage, disposal or release of
Hazardous Materials into the environment, have been duly obtained or
filed, except to the extent the failure to obtain or file such
notices, permits, licenses or similar authorizations could not
reasonably be expected to have a Material Adverse Effect, or which
could not reasonably be expected to result in remedial obligations
having a Material Adverse Effect, assuming disclosure to the
applicable Governmental Authority of all relevant facts, conditions
and circumstances, if any, pertaining to the relevant property.
(c) Hazardous Substances Carriers. To the knowledge of each of the
Credit Parties, all Hazardous Materials generated at any and all
property of any Credit Party have been treated, transported, stored
and disposed of only in accordance with Environmental Law applicable
to them, except to the extent the failure to have such Hazardous
Materials transported, treated or disposed by such carriers could
not reasonably be expected to have a Material Adverse Effect, and
only at treatment, storage and disposal facilities maintaining valid
permits under applicable Environmental Law, which carriers and
facilities have been and are operating in compliance with such
permits, except to the extent the failure to have such Hazardous
Materials treated, transported, stored or disposed at such
facilities, or the failure of such carriers or facilities to so
operate, could not reasonably be expected to have a Material Adverse
Effect or which could not reasonably be expected to result in
remedial obligations having a Material Adverse Effect, assuming
disclosure to the applicable Governmental Authority of
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all relevant facts, conditions and circumstances, if any, pertaining
to the relevant property.
(d) Hazardous Materials Disposal. Each Credit Party has taken all
reasonable steps necessary to determine and has determined that no
Hazardous Materials have been disposed of or otherwise released and
there has been no threatened release of any Hazardous Materials on
or to any property of any Credit Party other than in compliance with
Environmental Laws, except to the extent the failure to do so could
not reasonably be expected to have a Material Adverse Effect or
which could not reasonably be expected to result in remedial
obligations having a Material Adverse Effect, assuming disclosure to
the applicable Governmental Authority of all relevant facts,
conditions and circumstances, if any, pertaining to the relevant
property.
(e) No Contingent Liability. The Credit Parties have no material
contingent liability in connection with any release or threatened
release of any Hazardous Materials into the environment other than
such contingent liabilities at any one time and from time to time
which could not reasonably be expected to exceed the applicable
insurance coverage and for which adequate reserves for the payment
thereof as required by GAAP have been provided, or which could
reasonably be expected to result in remedial obligations having a
Material Adverse Effect, assuming disclosure to the applicable
Governmental Authority of all relevant facts, conditions and
circumstances, if any, pertaining to such release or threatened
release.
The representations and warranties in this Section 3.17 do not extend to
transmitter sites or other real property in which any Credit Party has a
leasehold interest, except to the extent that anything referred to in this
Section 3.17 results from the act or omission of a Credit Party.
3.18 EMPLOYEE MATTERS. As at the Effective Date, no Credit Party, nor any
of their respective employees, is subject to any collective bargaining
agreement. There are no strikes, slowdowns, work stoppages or controversies
pending or, to the best knowledge of the Borrower, threatened against any Credit
Party, or their respective employees, which could reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect. As at
the Effective Date, except as set forth in Schedule B, no Credit Party is
subject to an employment contract providing for a fixed term of employment
exceeding one year or providing for special payments on termination of
employment exceeding one year's salary.
3.19 FISCAL YEAR. The Fiscal Year of the Borrower ends on December 31 of
each calendar year, and the Borrower's Fiscal Quarters end on the last day of
each of March, June, September and December of each calendar year.
3.20 INTELLECTUAL PROPERTY RIGHTS. Each Credit Party is the registered
and beneficial owner of, with good and marketable title, free of all licences,
franchises and Liens other than Permitted Liens, to, or, alternatively, is a
permitted licencee of, all patents, patent applications,
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trade marks, trade xxxx applications, trade names, service marks, copyrights,
industrial designs, or other rights with respect to the foregoing and other
similar property, used in or necessary for the present and planned future
conduct of its business, without any conflict with the rights of any other
Person other than as listed on Schedule B or other than for such conflicts as
would not reasonably be expected to have a Material Adverse Effect. All material
patents, trade marks, trade names, service marks, copyrights, industrial designs
and other similar rights owned or licenced by any Credit Party, and all rights
of any Credit Party to the use of any patents, trade marks, trade names, service
marks, copyrights, industrial designs or other similar rights, are described in
Schedule B (it being agreed that Schedule B excludes all such agreements which,
if terminated, could be promptly replaced on comparable terms). Except as set
forth in Schedule B, no material claim has been asserted and is pending by any
Person with respect to the use by any Credit Party of any intellectual property
or challenging or questioning the validity, enforceability or effectiveness of
any intellectual property necessary for the conduct of the business of any
Credit Party. Except as disclosed in Schedule B or except as would not
reasonably be expected to have a Material Adverse Effect, (i) each Credit Party
has the exclusive right to use the intellectual property which each Credit Party
owns, and (ii) all applications and registrations for such intellectual property
are current.
3.21 INVESTMENT AND HOLDING COMPANY STATUS. No Credit Party is (a) an
"investment company" subject to regulation under the United States Investment
Company Act of 1940 or (b) a "holding company" as defined in, or subject to
regulation under, the United States Public Utility Holding Company Act of 1935.
No Credit Party is subject to the United States Employee Retirement Income
Security Act of 1974, as amended from time to time. No Credit Party is engaged
in the business of extending credit for the purpose of purchasing or carrying
"margin stock".
3.22 PCS NETWORK OWNERSHIP. The Borrower owns or leases all material
assets (and is the holder of all Radiocom Licences) necessary in connection with
the operation of the PCS Network.
3.23 NO INDEBTEDNESS FOR BORROWED MONEY. As at the Effective Date, no
Credit Party has incurred any Indebtedness for borrowed money except
Indebtedness in favour of the Lenders as expressly provided for in this
Agreement and Indebtedness for borrowed money listed in Schedule B.
3.24 PERMITS, LICENCES, ETC. Each Credit Party possesses all
Authorizations as may be necessary to properly conduct the Business and operate
the Borrower's PCS Network. All of the material Authorizations as at the
Effective Date are set forth in Schedule B, are all in full force and effect,
and each Credit Party is in compliance therewith. All franchise, licence or
other fees and charges which have become due pursuant to any material
Authorization have been paid by the relevant Credit Party, and each Credit Party
has made appropriate provisions as is required by GAAP for any such fees and
charges which have accrued. The Radiocom Licences are valid and in full force
and effect without conditions except for the conditions contained in or referred
to in the Radiocom Licences. No event has occurred and is continuing which could
reasonably be expected to (i) result in the revocation, termination or adverse
modification of any Radiocom
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Licence or other material Authorization other than at the request of the Parent
or the Borrower and in respect of Radiocom Licences which are not material to
the Business, or (ii) materially and adversely affect any right of any Credit
Party under any Radiocom Licence or other material Authorization other than at
the request of the Parent or the Borrower and in respect of Radiocom Licences
which are not material to the Business. No Credit Party has any reason to
believe or has any knowledge that the Radiocom Licences will not be renewed in
the ordinary course, other than at the request of the Parent or the Borrower and
in respect of Radiocom Licences which are not material to the Business.
3.25 SECURITY INTERESTS. Each of the Security Documents creates (or
continues the creation, as the case may be), as security for the obligations
purported to be secured thereby, subject to the provisions hereof and thereof, a
legal, valid and enforceable hypothec and/or security interest in all the
Collateral subject to such Security Document and each such Security Document
shall constitute, to the fullest extent possible under applicable Law and upon
completion of all required filings or actions, either (a) a fully published
and/or perfected Lien on, and security interest in, all of the Collateral
subject to such Security Document or (b) a floating charge, fixed charge,
hypothecation or security interest, as specified in the applicable Security
Document, with respect to all of the Collateral subject to such Security
Document, in each case in favour of the Collateral Agent or the "fonde de
pouvoir" (person holding an irrevocable power of attorney) appointed for the
benefit of the Lenders, and subject to no other Liens except Permitted Liens and
such additional Liens as may be expressly permitted under Section 6.2. The
grantor, pledgor or assignor, as the case may be, under each Security Document
has good title to all Collateral subject thereto free and clear of all Liens
other than Permitted Liens and such additional Liens as may be expressly
permitted under Section 6.2.
3.26 REGULATORY COMPLIANCE. The Parent, the Borrower and each other
Credit Party are in compliance with the Telecommunications Act (Canada) except
where the failure to do so could not reasonably be expected to result in a
Material Adverse Effect. To the knowledge of the Parent and the Borrower, there
is no investigation, notice of apparent liability, violation, forfeiture or
other order or complaint issued by or before the CRTC or Industry Canada, or of
any other proceedings of or before the CRTC or Industry Canada, affecting any
Credit Party which could reasonably be expected to have a Material Adverse
Effect. No event has occurred which (i) results in or reasonably could be
expected to result in, or after notice or lapse of time or both would result in
or reasonably could be expected to result in, revocation, suspension, adverse
modifications, non-renewal, impairment, restriction or termination of, or order
of forfeiture with respect to, any license in any respect which could reasonably
be expected to have a Material Adverse Effect or (ii) affects or could
reasonably be expected in the future to affect any of the rights of any Credit
Party under any license in any respect which could reasonably be expected to
have a Material Adverse Effect. The Parent, the Borrower and each other Credit
Party have duly filed in a timely manner all material filings, reports,
applications, documents, instruments and information required to be filed by it
under the Telecommunications Act (Canada), and all such filings were when made
true, correct and complete in all respects except where the failure to do so
could not reasonably be expected to result in a Material Adverse Effect.
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3.27 BUDGET UPDATE. The updated budget provided by the Parent to the
Administrative Agent on January 26, 2004 has been reviewed and approved by the
board of directors of the Parent and, as of the Effective Date, continues to
represent the Parent's good faith estimate with respect to the matters
contemplated therein.
ARTICLE 4
CONDITIONS
4.1 CONDITIONS PRECEDENT TO EFFECTIVENESS OF AGREEMENT. This Agreement
shall not become effective until the date on which each of the following
conditions is satisfied (or waived in accordance with Section 9.2), which date
must be on or before March 31, 2004:
(a) Credit Agreement. The Administrative Agent (or its counsel) and the
Issuing Bank shall have received from each of the Parent and the
Borrower a counterpart of this Agreement signed on behalf of each of
the Parent and the Borrower and the Administrative Agent shall have
delivered to the Borrower (or its counsel) a counterpart of this
Agreement signed on behalf of the Administrative Agent and the
Lenders.
(b) Representations and Warranties. All representations and warranties
made hereunder and in the other Financing Documents shall be true
and correct as if made on the Effective Date.
(c) No Default or Event of Default. No Default or Event of Default shall
have occurred and be continuing after giving effect to the Loans to
be outstanding on the Effective Date.
(d) Due Authorization. The Administrative Agent shall have received such
documents and certificates as the Administrative Agent or its
counsel may reasonably request relating to the organization,
existence and good standing of each Credit Party, the authorization
of the Transactions and any other legal matters relating to the
Credit Parties, the Financing Documents or the Transactions, all in
form and substance satisfactory to the Administrative Agent and its
counsel.
(e) Fees and Expenses. The Administrative Agent shall have received all
fees and other amounts due and payable on or prior to the Effective
Date, including, to the extent invoiced, reimbursement or payment of
all reasonable out-of-pocket expenses (including reasonable fees,
charges and disbursements of counsel) incurred in connection with
any of the Financing Documents and the Transactions, including
perfecting Liens on any Collateral.
(f) Legal Opinion. The Administrative Agent shall have received a
favourable written opinion (addressed to the Administrative Agent,
the Issuing Bank and the Lenders and dated the Effective Date) of
Stikeman Elliott LLP, Canadian counsel
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to the Borrower and the Parent covering such matters relating to the
Credit Parties, this Agreement or the Transactions as the Lenders
shall reasonably request, and opinions of such other special and
local counsel as may be required by the Administrative Agent and its
counsel.
(g) Satisfaction of Collateral and Guarantee Requirement. The Collateral
and Guarantee Requirement shall have been satisfied and the
Administrative Agent shall have received a completed Perfection
Certificate dated the date hereof and signed by a Responsible
Officer of the Parent, together with all attachments contemplated
thereby.
(h) Books and Records. The Administrative Agent shall have had an
opportunity, if it so chooses, to examine the books of account and
other records and files of any Credit Party and to make copies
thereof, and the results of such examination shall have been
satisfactory to the Administrative Agent in all respects.
(i) Insurance. The Administrative Agent shall have received evidence
satisfactory to the Administrative Agent that the insurance required
by Section 5.10 and each of the Security Documents is in effect.
(j) Business Plan. The Lenders shall have received an eight year
business plan of the Borrower, satisfactory in form, scope and
substance to the Administrative Agent.
(k) Consents and Approvals. All consents and approvals required to be
obtained from any Governmental Authority or other Person in
connection with the Transactions shall have been obtained, and all
applicable waiting periods and appeal periods shall have expired, in
each case without the imposition of any burdensome conditions.
(l) Satisfaction of Administrative Agent. All proceedings taken in
connection with the execution of this Agreement, all other Financing
Documents and all documents and papers relating thereto shall be
satisfactory in form, scope, and substance to the Administrative
Agent.
(m) Indebtedness. After giving effect to the Transactions, no Credit
Party shall have outstanding any shares of preferred stock or any
Indebtedness, other than (i) the obligations created hereunder and
(ii) the Indebtedness and preferred stock described in Schedule B.
(n) Initial Credit Rating. The Loans shall have received an indicative
credit rating of at least "B-" by Standard & Poor's Corporation, and
"B3" from Xxxxx'x, in each case without a negative outlook.
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(o) Commitment Fees. The Borrower shall have paid to the Administrative
Agent the fees stipulated in the separate fee letter entered into
between the Administrative Agent, the Borrower and the Parent on the
date hereof.
(p) Execution of Financing Documents. The other Financing Documents and
all instruments and documents hereunder and thereunder shall have
been duly executed and delivered to the Administrative Agent, in
form and substance satisfactory to the Administrative Agent,
together with any and all other documents and instruments as may
have been reasonably requested by the Administrative Agent.
(q) Execution and Delivery of Documentation. Without limiting the
generality of the items described above, each of the Credit Parties
shall have delivered or caused to be delivered to the Administrative
Agent (in form and substance reasonably satisfactory to the
Administrative Agent), the financial statements, instruments,
resolutions, documents, agreements, mortgages, title reports,
certificates, opinions and other items as may have been requested by
the Administrative Agent.
(r) Other Financing. The Tranche B-Term Loan A Credit Agreement and the
Tranche B-Term Loan B Credit Agreement shall have been executed and
delivered by the parties thereto, in form and substance satisfactory
to the Administrative Agent, all conditions thereunder shall have
been satisfied or waived.
(s) Refinancing. The Amendment and Restatement Agreement (as defined in
the Tranche B-Term Loan A Credit Agreement) shall have been executed
and delivered, and the Tranche B Debt outstanding pursuant to the
Original Tranche B Credit Agreement shall have been refinanced by
the Tranche B-Term Loan A Loans and the Tranche B-Term Loan B Loans.
The Tranche C Loans shall be repaid in full and the Tranche C Credit
Agreement shall be terminated concurrently with the effectiveness of
this Agreement.
4.2 EACH CREDIT EVENT. The obligation of each Lender to make a Loan on
the occasion of any Borrowing, and of the Issuing Bank to issue, amend, renew or
extend any Letter of Credit, is subject to the satisfaction of the following
conditions:
(a) the representations and warranties of the Borrower set forth in this
Agreement shall be true and correct on and as of the date of each
such Borrowing or the date of issuance, amendment, renewal or
extension of such Letter of Credit, as applicable (except where such
representation or warranty refers to a different date);
(b) at the time of and immediately after giving effect to such Borrowing
or the issuance, amendment, renewal or extension of such Letter of
Credit, as applicable, no Default shall have occurred and be
continuing; and
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(c) the Administrative Agent shall have received a Notice of
Borrowing/Continuation/Conversion in the manner and within the time
period required by Section 2.2.
Each Borrowing and each issuance, amendment, renewal or extension of a
Letter of Credit shall be deemed to constitute a representation and
warranty by the Borrower on the date thereof as to the accuracy of the
matters specified in paragraphs (a) and (b) above. This requirement does
not apply on the conversion or rollover of an existing Borrowing provided
that the aggregate outstanding Borrowings will not be increased as a
consequence thereof.
ARTICLE 5
AFFIRMATIVE COVENANTS
The Borrower and the Parent jointly and severally covenant and agree
with the Lenders that from (and including) the Effective Date until the
principal of and interest on each Loan and all fees payable hereunder shall have
been paid in full and all Letters of Credit and the Commitments shall have
expired or terminated and all LC Disbursements shall have been reimbursed, the
Borrower covenants and agrees with the Lenders that:
5.1 FINANCIAL STATEMENTS AND OTHER INFORMATION. The Parent or the
Borrower (as applicable) will furnish to the Administrative Agent with copies
for each Lender:
(i) within 120 days after the end of each Fiscal Year of the
Parent, the Parent's audited consolidated and
unconsolidated balance sheets and related statements of
income, retained earnings and changes in financial position
as of the end of and for such Fiscal Year, setting forth in
each case in comparative form the figures for the previous
Fiscal Year, all reported on by Ernst & Young LLP or other
independent auditors of recognized national standing
(without a "going concern" or like qualification or
exception and without any qualification or exception as to
the scope of such audit) to the effect that such
consolidated and unconsolidated financial statements
present fairly in all material respects the financial
condition and results of operations of the Parent and its
consolidated subsidiaries on a consolidated and
unconsolidated basis in accordance with GAAP consistently
applied;
(ii) within 120 days after the end of each Fiscal Year of the
Borrower, the Borrower's audited consolidated and
unconsolidated balance sheet and related statements of
income, retained earnings and changes in financial position
as of the end of and for such Fiscal Year, setting forth in
each case in comparative form the figures for the previous
Fiscal Year, all reported on by Ernst & Young LLP or other
independent auditors of recognized national standing
(without any qualification or exception as
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to the scope of such audit) to the effect that such
consolidated and unconsolidated financial statements
present fairly in all material respects the financial
condition and results of operations of the Borrower and its
consolidated subsidiaries, if any, on a consolidated and
unconsolidated basis in accordance with GAAP consistently
applied;
(iii) within 120 days after the end of each Fiscal Year of each
Unrestricted Subsidiary and each Credit Party other than
the Parent and the Borrower, each such Unrestricted
Subsidiary's or Credit Party's audited unconsolidated
balance sheet and related statements of income, retained
earnings and changes in financial position as of the end of
and for such Fiscal Year, setting forth in each case in
comparative form the figures for the previous Fiscal Year,
all reported on by Ernst & Young LLP or other independent
auditors of recognized national standing (without any
qualification or exception as to the scope of such audit)
to the effect that such unconsolidated financial statements
present fairly in all material respects the financial
condition and results of operations of such Unrestricted
Subsidiary or Credit Party, as applicable, on an
unconsolidated basis in accordance with GAAP consistently
applied;
(iv) if requested by the Administrative Agent, within 120 days
after the end of each Fiscal Year of the Parent, the Credit
Parties' audited combined and consolidated balance sheet
and related statements of income, retained earnings and
changes in financial position as of the end of and for such
Fiscal Year, setting forth in each case in comparative form
the figures for the previous Fiscal Year, all reported on
by Ernst & Young LLP or other independent auditors of
recognized national standing (without a "going concern" or
like qualification or exception and without any
qualification or exception as to the scope of such audit)
to the effect that such combined and consolidated financial
statements present fairly in all material respects the
financial condition and results of operations of the Credit
Parties on a combined and consolidated basis in accordance
with GAAP consistently applied;
(v) within 60 days after the end of each of the first three
Fiscal Quarters of each Fiscal Year of the Parent, the
Parent's unaudited consolidated balance sheet and related
statements of income, retained earnings and changes in
financial position as of the end of and for such Fiscal
Quarter and the then elapsed portion of the Fiscal Year
which includes such Fiscal Quarter, setting forth in each
case in comparative form (a) the figures for the
corresponding period or periods of (or, in the case of the
balance sheet, as of the end of) the previous Fiscal Year,
and (b) the actual figures for year-to-date versus the
budgeted figures set
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out in the annual budget delivered pursuant to Section 5.1
(xvi), all certified by a Financial Officer of the Parent
as presenting fairly in all material respects the financial
condition and results of operations of the Parent and its
subsidiaries on a consolidated basis in accordance with
GAAP consistently applied, subject to the absence of notes
and normal year-end audit adjustments;
(vi) within 60 days after the end of each of the first three
Fiscal Quarters of each Fiscal Year of the Borrower, the
Borrower's unaudited consolidated balance sheet and related
statements of income, retained earnings and changes in
financial position as of the end of and for such Fiscal
Quarter and the then elapsed portion of the Fiscal Year
which includes such Fiscal Quarter, setting forth in each
case in comparative form (a) the figures for the
corresponding period or periods of (or, in the case of the
balance sheet, as of the end of) the previous Fiscal Year,
and (b) the actual figures for year-to-date versus the
budgeted figures set out in the annual budget delivered
pursuant to Section 5.1(xvi), all certified by a Financial
Officer as presenting fairly in all material respects the
financial condition and results of operations of the
Borrower and its subsidiaries, if any, on a consolidated
basis in accordance with GAAP consistently applied, subject
to normal year-end audit adjustments;
(vii) within 60 days after the end of each Fiscal Quarter of each
Fiscal Year of the Parent, the Credit Parties' unaudited
consolidated balance sheet and related statements of
income, retained earnings and changes in financial position
as of the end of and for such Fiscal Quarter and the then
elapsed portion of the Fiscal Year which includes such
Fiscal Quarter, setting forth in each case in comparative
form (a) the figures for the corresponding period or
periods of (or, in the case of the balance sheet, as of the
end of) the previous Fiscal Year, and (b) the actual
figures for year-to-date versus the budgeted figures set
out in the annual budget delivered pursuant to Section
5.1(xvi), all certified by a Financial Officer as
presenting fairly in all material respects the financial
condition and results of operations of the Credit Parties
on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit
adjustments;
(viii) concurrently with the financial statements required
pursuant to Sections 5.1(i), (ii), (iii), (iv), (v), (vi),
and (vii) above, a certificate, signed by a Financial
Officer, (a) stating that a review of such financial
statements during the period covered thereby and of the
activities of each Credit Party has been made under such
Financial Officer's supervision with a view to determining
whether each Credit Party has
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fulfilled all of its obligations under this Agreement and
the other Financing Documents; (b) stating that each Credit
Party has fulfilled its obligations under this Agreement
and the other Financing Documents and that all
representations made in this Agreement continue to be true
and correct as if made on the date of such certification
(or specifying the nature of any change), except where such
representation or warranty refers to a different date, or,
if there shall be a Default or Event of Default, specifying
the nature and status thereof and the relevant Credit
Party's proposed response thereto; (c) demonstrating in
reasonable detail compliance (including showing all
material calculations) as at the end of the most recently
completed Fiscal Year or the most recently completed Fiscal
Quarter with the financial covenants in Section 5.14 and
including a description by category (utilizing the same
categories as are used by the Borrower in internal
financial reports) of any permitted dispositions and
acquisitions and any Capital Expenditures made by the
Borrower or any other Credit Party as of the end of the
most recently-completed Fiscal Year, and (d) containing or
accompanied by such financial or other details, information
and material as the Administrative Agent may reasonably
request to evidence such compliance;
(ix) copies of each management letter issued to each Credit
Party by such accountants promptly following consideration
or review thereof by the board of directors of each Credit
Party, or any committee thereof (together with any response
thereto prepared by any Credit Party);
(x) promptly after the same become publicly available, copies
of all periodic reports, proxy statements and other similar
materials filed by any Credit Party with any securities
commission, stock exchange or similar entity, and all
materials distributed out of the ordinary course by the
Parent to its shareholders and which relate to matters in
which any Lender or the Administrative Agent, in such
capacities, can reasonably be expected to have an interest;
(xi) within a reasonable time after a request by the
Administrative Agent, additional title information in form
and substance acceptable to the Administrative Agent as is
reasonably necessary covering the Collateral so that the
Lenders shall have received, together with the title
information previously received by the Lenders,
satisfactory title information covering all of the
Collateral;
(xii) promptly after the Parent or the Borrower learns of the
receipt or occurrence of any of the following, a
certificate signed by a Responsible Officer, specifying (a)
any official notice of any violation, possible violation,
non-compliance or possible non-compliance, or
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claim made by any Governmental Authority pertaining to all
or any part of the properties of any Credit Party which
could reasonably be expected to have a Material Adverse
Effect; (b) any event which constitutes a Default or Event
of Default, together with a detailed statement specifying
the nature thereof and the steps being taken to cure such
Default or Event of Default; (c) the creation, dissolution,
merger or acquisition of any Subsidiary; (d) any event or
condition not previously disclosed to the Administrative
Agent, which violates any Environmental Law and which may
reasonably be expected to have a Material Adverse Effect;
(e) any material amendment to, revocation or termination
prior to scheduled expiry of, or material default under, a
Material Contract or any execution of, or material
amendment to, termination prior to scheduled expiry or
revocation of, or material default under, any material
collective bargaining agreement; and (f) any event,
development or condition which may reasonably be expected
to have a Material Adverse Effect;
(xiii) promptly after the occurrence thereof, notice of the
institution of or any material adverse development in any
action, suit or proceeding or any governmental
investigation or any arbitration, before any court or
arbitrator or any governmental or administrative body,
agency or official against any Credit Party or any material
property of any Credit Party which could reasonably be
expected to have a Material Adverse Effect;
(xiv) promptly after the filing thereof with any Governmental
Authority (if requested by the Administrative Agent),
copies of each annual and other report (including
applicable schedules) with respect to each Pension Plan, if
any, of any Credit Party or any trust created thereunder;
(xv) upon request by the Administrative Agent, a summary of the
insurance coverages of each Credit Party in form and
substance reasonably satisfactory to the Administrative
Agent; upon renewal of any insurance policy, a copy of an
insurance certificate summarizing the terms of such policy;
and upon request by the Administrative Agent, copies of the
applicable policies;
(xvi) on or before the 60th day after the end of each Fiscal
Year, an annual budget of the Parent, reviewed by the board
of directors of the Parent, setting forth in reasonable
detail the consolidated projected revenues and expenses of
the Parent for the following Fiscal Year, it being
recognized by the Lenders that projections as to future
results are not to be viewed as fact and that the actual
results for the period or periods covered by such
projections may differ from the projected results;
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(xvii) on or before the 90th day after the end of each Fiscal Year
ending on or after December 31, 2003, the Borrower's
calculation of "Excess Cash Flow" (as defined in the
Intercreditor Agreement) for the Fiscal Year then ended;
(xviii) promptly following any request therefor, such other
information regarding the operations, business affairs and
financial condition of each Credit Party and each
Unrestricted Subsidiary, or compliance with the terms of
this Agreement, as the Administrative Agent or any Lender
may reasonably request;
(xix) within 60 days after the end of each Fiscal Quarter, a
certificate of a Financial Officer of the Borrower,
certifying as to (a) total number of Subscribers of the
Borrower as at the end of such Fiscal Quarter and net
additional Subscribers during such Fiscal Quarter, and (b)
the Subscriber churn ratios of the Borrower in respect of
such Fiscal Quarter;
(xx) written notice promptly, and in any event within five
Business Days, after any Credit Party becomes aware of the
initiation of any proceeding by any Governmental Authority
having jurisdiction over any Credit Party which could
result in the expiration without renewal, termination,
revocation, suspension, modification or impairment of any
Radiocom Licence or other Authorization where the same
could reasonably be expected to cause a Material Adverse
Effect;
(xxi) written notice promptly, and in any event within five
Business Days, after any Credit Party becomes aware of any
proceeding or Law affecting the operation of the Business,
the Radiocom Licences or any other Authorization which has
been enacted or adopted or which will shortly be enacted or
adopted and which could reasonably be expected to have a
Material Adverse Effect;
(xxii) within 30 days after the end of each month, a report
setting out or providing, as the case may be, with respect
to each switch-site for which a landlord consent pursuant
to Section 5.16 has not already been obtained (a) whether
the landlord/licensor has executed a consent and
acknowledgement relating to the charge by the Borrower of
its leasehold interest in the relevant switch site premises
in favour of the Collateral Agent, and (b) the originals of
all such consents and acknowledgements received during the
month;
(xxiii) prompt written notice of any Swap Agreement entered into by
the Borrower or any other Credit Party or any amendment or
termination thereof, together with all details relating
thereto reasonably requested
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by the Administrative Agent (including, without limitation,
its effective date, notional amount, currency, applicable
rate, amortization and maturity date and such other
information as may be reasonably requested by the
Administrative Agent to verify on a continuing basis the
xxxx-to-market exposure of the Credit Parties under all
Swap Agreements);
(xxiv) prompt written notice of any collective bargaining
agreement to which any Credit Party becomes a party;
(xxv) all environmental site assessments or other
environment-related materials in the possession of any
Credit Party relating to properties owned or leased by a
Credit Party which have not been previously provided to the
Administrative Agent;
(xxvi) prompt written notice of any change in the name of any
Credit Party and of any change in the location of the chief
executive office of any Credit Party and of any material
change in any other information on Schedule B necessary to
ensure the accuracy at all times of the representations and
warranties set out in Section 3.25;
(xxvii) promptly after the Parent or the Borrower learns of the
occurrence thereof, written notice of any material default
under any lease (including any sublease) relating to a
switch site used in the Business, including any payment
default thereunder; and
(xxviii) prompt written notice of any material event with respect to
any Unrestricted Subsidiary, including any Investment by
any Person in an Unrestricted Subsidiary.
5.2 EXISTENCE; CONDUCT OF BUSINESS. Each Credit Party will do or cause
to be done all things necessary to preserve, renew and keep in full force and
effect its legal existence (subject only to Section 6.3), and except to the
extent that the failure to do so could not reasonably be expected to result in a
Material Adverse Effect, obtain, preserve, renew and keep in full force and
effect any and all rights, licenses, permits, privileges and franchises material
to the conduct of its business.
5.3 PAYMENT OF OBLIGATIONS. Each Credit Party will pay its obligations,
including Tax liabilities, that, if not paid, could result in a Material Adverse
Effect before the same shall become delinquent or in default, except where (a)
the validity or amount thereof is being contested in good faith by appropriate
proceedings, (b) such Credit Party has set aside on its books adequate reserves
with respect thereto in accordance with GAAP, and (c) the failure to make
payment pending such contest could not reasonably be expected to result in a
Material Adverse Effect.
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5.4 MAINTENANCE OF PROPERTIES. Each Credit Party will keep and maintain
all property material to the conduct of its business in good working order and
condition, ordinary wear and tear excepted, except to the extent that the
failure to do so could not reasonably be expected to have a Material Adverse
Effect.
5.5 MAINTENANCE OF AUTHORIZATIONS. Each Credit Party will maintain and
keep in full force and effect all Authorizations necessary to operate the PCS
Network and otherwise carry on the Business.
5.6 BOOKS AND RECORDS; INSPECTION RIGHTS. Each Credit Party will keep
proper books of record and account in which full, true and correct entries are
made of all dealings and transactions in relation to its business and
activities. Each Credit Party will maintain its billing, accounting and software
systems at a level sufficient to enable it to conduct the Business. Each Credit
Party will permit any representatives designated by the Administrative Agent or
any Lender, upon reasonable prior notice and during normal business hours, to
visit and inspect its properties, to examine and make extracts from its books
and records, and to discuss its affairs, finances and condition with its
officers and independent accountants, all at such reasonable times and as often
as reasonably requested (it being agreed that the aforementioned notice
requirements and normal business hour restrictions shall not be applicable after
the occurrence and continuation of a Default or an Event of Default, and after a
Default or an Event of Default an individual Lender may designate its own
representative to perform any such tasks); provided that, prior to a Default or
an Event of Default, (i) any representative of a Lender who is not an employee
of that Lender has established to the reasonable satisfaction of the Borrower
and the Lenders that there is no inherent conflict of interest between the
business and clientele of the Credit Parties and the business and clientele
(other than the Lenders) of that representative, and (ii) the Lenders and their
representatives shall not be entitled to take copies of (but may nevertheless
examine) any portion of the books, accounts and records of the Credit Parties if
allowing such copies to be taken would result in any Credit Party being in
breach of any contractual or other legally binding obligation of
confidentiality. All information provided or obtained pursuant to this Section
5.6 is subject to Section 9.12.
5.7 COMPLIANCE WITH LAWS AND MATERIAL CONTRACTS. Each Credit Party will
comply with all Laws and orders of any Governmental Authority applicable to it
or its property and with all of its material contractual obligations, except
where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.
5.8 USE OF PROCEEDS AND LETTERS OF CREDIT. The Borrower will use the
proceeds of any Loan and Letters of Credit hereunder for working capital
purposes only.
5.9 FURTHER ASSURANCES. The Borrower will, and will cause each other
Credit Party to, cure promptly any defects in the execution and delivery of the
Financing Documents, including this Agreement. Upon request, the Borrower will,
at its expense, as promptly as practical, execute and deliver to the
Administrative Agent, all such other and further documents, agreements and
instruments (and cause each other Credit Party to take such action) in
compliance with or performance of the covenants and agreements of the Borrower
or any other
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Credit Party in any of the Financing Documents, including this Agreement, or to
further evidence and more fully describe the Collateral, or to correct any
omissions in any of the Financing Documents, or more fully to state the security
obligations set out herein or in any of the Financing Documents, or to publish,
perfect, protect or preserve any Liens created pursuant to any of the Financing
Documents, or to make any recordings, to file any notices, or obtain any
consents, all as may be necessary or appropriate in connection therewith.
5.10 INSURANCE. The Parent and the Borrower will, and will cause each
other Credit Party to, maintain or cause to be maintained, with financially
sound and reputable insurers, insurance with respect to their respective
properties and business against such liabilities, casualties, risks and
contingencies and in such types (including business interruption insurance) and
amounts as is customary in the case of Persons engaged in the same or similar
businesses and similarly situated and in accordance with any requirement of any
Governmental Authority. In the case of any fire, accident or other casualty
causing loss or damage to any properties of the Borrower used in generating cash
flow or required by applicable Law, all proceeds of such policies shall be used
promptly to repair or replace any such damaged properties, and otherwise shall
be used as directed by the Administrative Agent (i) to repair or replace the
damaged property, or (ii) to prepay the Loans or to make other payments in
accordance with the Intercreditor Agreement. The Borrower will obtain
endorsements to the policies pertaining to all physical properties in which the
Collateral Agent or the Lenders shall have a Lien under the Financing Documents,
naming the Collateral Agent as a loss payee, and containing provisions that such
policies will not be cancelled without 15 days prior written notice having been
given by the insurance company to the Administrative Agent.
5.11 OPERATION AND MAINTENANCE OF PROPERTY. The Parent and the Borrower
will, and will cause each other Credit Party to, manage and operate its business
or cause its business to be managed and operated (i) in accordance with prudent
industry practice in all material respects and in compliance in all material
respects with the terms and provisions of all applicable licenses, leases,
contracts and agreements, and (ii) in compliance with all applicable Laws of the
jurisdiction in which such businesses are carried on, and all applicable Laws of
every other Governmental Authority from time to time constituted to regulate the
ownership, management and operation of such businesses, except where a failure
to so manage and operate could not reasonably be expected to have a Material
Adverse Effect.
5.12 ADDITIONAL SUBSIDIARIES; ADDITIONAL LIENS. If any additional
Subsidiary is formed or acquired after the Effective Date (each such Subsidiary,
an "Additional Subsidiary"), the Parent and the Borrower will, within three
Business Days after such Subsidiary is formed or acquired, notify the
Administrative Agent thereof and promptly cause the Collateral and Guarantee
Requirement to be satisfied with respect to such Subsidiary and with respect to
any Equity Securities in or Indebtedness of such Subsidiary owned by or on
behalf of any Credit Party; provided that (i) any action otherwise necessary to
satisfy the Collateral and Guarantee Requirement that is prohibited by
applicable Law and not legally capable of being taken without the appropriate
consents of Governmental Authorities need not be taken and (ii) in the event any
consent or approval of a Governmental Authority necessary to satisfy the
Collateral and
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Guarantee Requirement cannot reasonably be obtained within 90 days after such
Additional Subsidiary is acquired or formed, the Parent and the Borrower shall,
so long as they exercise commercially reasonable efforts to obtain such consent
or approval from the time such Additional Subsidiary is acquired or formed, have
an additional period of time, not to exceed 30 days after such acquisition or
formation, to obtain such consent or approval.
5.13 HEDGING. Within 90 days after the Effective Date, the Borrower shall
enter into Swap Agreements to manage currency exposure assumed pursuant to the
U.S.$ Loans and not for the purpose of speculation and otherwise acceptable to
the Administrative Agent. Any obligations of the Borrower under any U.S.$ Xxxxxx
entered into with any of the Lenders or under any Interest Rate Xxxxxx entered
into with any of the Lenders shall be secured by the Security Documents, pari
passu with the other obligations of the Borrower under this Agreement, which
Security Documents rank pari passu with the security interests created in favour
of the Tranche B-Term Loan A Lenders.
5.14 FINANCIAL COVENANTS. The Credit Parties will comply with the
financial covenants listed in subsections (a) to (f) below. All such financial
covenants shall be calculated on a consolidated basis, except that such
calculations shall not include amounts in respect of Unrestricted Subsidiaries.
(a) Minimum EBITDA. The Credit Parties will ensure that minimum EBITDA
for the Parent for the periods set forth below is not less than the
amount for each period set out in the following table:
PERIOD MINIMUM EBITDA (CDN.$)
------ ----------------------
Fiscal Quarter Ending March 31, 2004 12,500,000
2 Fiscal Quarters Ending June 30, 2004 32,000,000
3 Fiscal Quarters Ending September 30, 2004 59,000,000
Each Rolling Period ending December 31, 90,000,000
2004, March 31, 2005, June 30, 2005 and
September 30, 2005
Each Rolling Period ending December 31, 150,000,000
2005, March 31, 2006, June 30, 2006 and
September 30, 2006
Each Rolling Period ending at each 250,000,000
subsequent Quarterly Date from December 31,
2006 to the Maturity Date
(b) Interest Coverage Ratio. Commencing June 30, 2004, the Credit
Parties will maintain an Interest Coverage Ratio of not less than
2.25:1.
(c) Leverage Ratio.
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(i) Commencing September 30, 2004, the Credit Parties will
maintain a Leverage Ratio of 5:1, decreasing as follows:
PERIOD RATIO
------ -----
October 1, 2004 to September 30, 2005 4.50:1
October 1, 2005 to September 30, 2006 3.50:1
October 1, 2006 to September 30, 2007 3.00:1
October 1, 2007 to Maturity Date 2.50:1
(ii) If the Parent or the Borrower issues Subordinated Debt
following the Effective Date, then subsequent to the receipt
by the Borrower or Parent of the proceeds of such issuance,
the Leverage Ratio will be maintained in accordance with the
following chart and the Credit Parties will also maintain a
Senior Leverage Ratio in accordance with the following chart:
PERIOD SENIOR LEVERAGE RATIO LEVERAGE RATIO
------ --------------------- --------------
Effective Date to September 30, 2005 3.50:1 6.00:1
October 1, 2005 to September 30, 2006 3.00:1 5.00:1
October 1, 2006 to September 30, 2007 2.50:1 4.50:1
October 1, 2007 to Maturity Date 2.50:1 4.00:1
(d) Minimum Liquidity. The Credit Parties will ensure that, at all
times, the consolidated cash and Permitted Investments of the Credit
Parties, when aggregated with the available unused portion of the
Commitments will be not less than Cdn.$75,000,000, of which no less
than Cdn.$50,000,000 will be held as cash.
(e) Maximum Capital Expenditures. The Credit Parties will ensure that
the amount of Capital Expenditures incurred by the Credit Parties in
each Fiscal Year shall not exceed the amounts set forth in the
following table:
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MAXIMUM AMOUNT OF CAPITAL
FISCAL YEAR EXPENDITURES
----------- ------------
2004 230,000,000
2005 285,000,000
2006 230,000,000
Each of 2007 through 2011 170,000,000
provided, however, that in the event the Parent issues new Equity
Securities after the Effective Date, the maximum amount of Capital
Expenditures for 2004 shall be increased by an amount equal to the
lesser of (a) Cdn.$80,000,000, and (b) the difference obtained by
subtracting the aggregate amount used by the Parent to redeem or
repurchase existing First Preferred Shares and Second Preferred
Shares after the Effective Date and by subtracting the aggregate
amount, if any, invested in Inukshuk Internet Inc. pursuant to
Section 6.4(e), from the Net Proceeds received by the Parent on
account of the issuance of new Equity Securities of the Parent after
the Effective Date and further provided that up to 50% of the amount
listed above for any Fiscal Year but not expended in such Fiscal
Year may be carried forward and expended during the next Fiscal Year
(but not any other Fiscal Year).
(f) Fixed Charge Coverage Ratio. Commencing December 31, 2006, the
Credit Parties will ensure that the Fixed Charge Coverage Ratio of
the Credit Parties is no less than the ratio set forth in the
following chart:
PERIOD FIXED CHARGE COVERAGE RATIO
------ ---------------------------
December 31, 2006 to September 30, 2007 1.10:1
October 1, 2007 to Maturity Date 1.15:1
5.15 MOST FAVOURED NATIONS. The Borrower will ensure that, if the
Borrower provides (other than pursuant to this Agreement) to any lender as at
the Effective Date, or provides to any other lender in the future, a financial
ratio or other form of financial measurement covenant which is not specifically
included in this Agreement, or which is more restrictive than the corresponding
covenant in this Agreement, then this Agreement shall be deemed to have been
amended automatically to have the benefit of such other present or future
financial ratio or other form of financial measurement covenant; provided that
if any such present or future financial ratio or other form of financial
measurement covenant provided by the Borrower to another lender and not
specifically included in this Agreement is changed or eliminated, the same
change or elimination will automatically apply to this Agreement. For greater
certainty, but without limitation, a covenant to maintain any particular type or
class of
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assets or any particular type or class of liabilities (as the terms "asset" and
"liability" are used under GAAP) at a specified maximum or minimum dollar amount
(for example, a covenant that indebtedness will not exceed a fixed dollar
amount) shall not constitute a "financial ratio or other financial measurement
covenant"; however, a covenant such as a net worth covenant, which is not
limited to any particular type or class of assets or any particular type or
class of liabilities, shall constitute a "financial ratio or other financial
measurement covenant".
5.16 LANDLORD CONSENTS. The Credit Parties shall use their best efforts
to deliver to the Administrative Agent as promptly as possible a consent from
each landlord of each leased switch site premises in such form as the
Administrative Agent may agree.
5.17 BANK ACCOUNTS. All bank accounts and other investment accounts of
the Credit Parties shall be maintained in Canada with a Lender, a Tranche B-Term
Loan A Lender, a Tranche B-Term Loan B Lender or with a financial institution
which has confirmed in writing to the Administrative Agent that such financial
institution will not have a credit relationship with the Credit Parties and will
not exercise any right of set-off or other similar right against the assets in
any such account.
ARTICLE 6
NEGATIVE COVENANTS
From (and including) the Effective Date until the principal of and
interest on each Loan and all fees payable hereunder shall have been paid in
full, and all Commitments hereunder have expired or been terminated and all LC
Disbursements shall have been reimbursed, the Borrower covenants and agrees with
the Lenders that:
6.1 INDEBTEDNESS. The Borrower will not, and will not permit any Credit
Party to, create, incur, assume or permit to exist any Indebtedness, except:
(a) any Indebtedness created hereunder;
(b) any Indebtedness created under the Tranche B-Term Loan A Credit
Agreement;
(c) any Indebtedness created under the Tranche B-Term Loan B Credit
Agreement, the First Notes or the Second Notes;
(d) Indebtedness existing on the date hereof and set forth in Schedule B
and any extensions, renewals or replacements of any such
Indebtedness so long as the terms and conditions of any such
extension, renewal or replacement do not impose on any Credit Party
any terms or conditions which are more onerous than the terms and
conditions of the Indebtedness being extended, renewed or replaced
except for changes in pricing resulting solely from changes in
market conditions generally;
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(e) any Indebtedness of the Borrower to any other Credit Party and of
any other Credit Party to the Borrower or any other Credit Party
(provided that any Indebtedness of the Parent to any other Credit
Party is only permitted to the extent that it was incurred to pay
expenses of the Parent in its ordinary course of business);
(f) any Guarantee by any other Credit Party of Indebtedness of the
Borrower or any other Credit Party;
(g) any Indebtedness of any Credit Party incurred to finance the
acquisition, construction or improvement of any fixed or capital
assets, including Indebtedness secured by Purchase Money Liens and
Capital Lease Obligations and any Indebtedness assumed in connection
with the acquisition of any such assets or secured by a Lien on any
such assets prior to the acquisition thereof, and extensions,
renewals and replacements of any such Indebtedness that do not
increase the outstanding principal amount thereof, provided that (i)
such Indebtedness is incurred prior to or within 30 days after such
acquisition or the completion of such construction or improvement
and (ii) the aggregate principal amount of Indebtedness permitted by
this clause (g) shall not exceed Cdn.$5,000,000 at any time
outstanding;
(h) any Indebtedness in respect of sight trade letters of credit in an
aggregate amount not exceeding Cdn.$5,000,000;
(i) any Indebtedness in respect of judgments against any Credit Party
that the Borrower has determined in good faith will be (and which
are) stayed or discharged within 45 days of the rendering thereof;
(j) any Indebtedness in respect of Swap Agreements not prohibited by
Section 6.5;
(k) other unsecured Indebtedness of the Borrower in an aggregate
principal amount not exceeding Cdn.$5,000,000 at any time;
(l) any Permitted Subordinated Refinancing Debt;
(m) any Indebtedness in an aggregate amount not exceeding
Cdn.$250,000,000 (or the U.S.$ Equivalent thereof) consisting of
Subordinated Debt (provided that if such Subordinated Debt is issued
by the Parent the Net Proceeds thereof shall be immediately invested
in Equity Securities of the Borrower, and further provided that upon
the incurrence of such Indebtedness, the Credit Parties will remain
in compliance with Section 5.14(c), on a pro forma basis giving
effect to the issuance of said Indebtedness); and
(n) any other Indebtedness consented to by the Required Lenders.
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6.2 LIENS. The Parent and the Borrower will not, and will not permit any
other Credit Party to, create, incur, assume or permit to exist any Lien on any
property or asset now owned or hereafter acquired by the Parent, the Borrower or
any other Credit Party, or assign or sell any income or revenues (including
accounts receivable) or rights in respect of any thereof, except Permitted Liens
and those Liens set out in Schedule B.
6.3 FUNDAMENTAL CHANGES. The Parent and the Borrower will not, and will
not permit any Credit Party to, merge into or amalgamate or consolidate with any
other Person, or permit any other Person to merge into or amalgamate or
consolidate with it, or sell, transfer, lease or otherwise dispose of (in one
transaction or in a series of transactions) all or substantially all of its
assets, or all or any of the Equity Securities of any of the Subsidiaries (in
each case, whether now owned or hereafter acquired), or liquidate or dissolve,
except that, if at the time thereof and immediately after giving effect thereto
no Default shall have occurred and be continuing, (i) any Subsidiary may
amalgamate with the Borrower, (ii) any Subsidiary may amalgamate with any OTHER
Subsidiary, (iii) any Subsidiary may sell, transfer, lease or otherwise dispose
of its assets to the Borrower or to another Subsidiary, (iv) any Subsidiary may
liquidate or dissolve into the Borrower or another Credit Party if the Borrower
determines in good faith that such liquidation or dissolution is in the best
interests of the Borrower and the Administrative Agent determines that such
liquidation or dissolution is not disadvantageous to the Lenders, and (v) the
Pre-Filing Parent may wind-up into the Parent and be dissolved; provided that
any amalgamation or winding-up pursuant to Sections 6.3(i), (ii) or (v) shall
not be permitted unless the amalgamated corporation or the Parent confirms to
the Administrative Agent in writing that the amalgamated corporation or the
Parent is liable, by operation of law or otherwise, for the obligations of the
Borrower or the relevant amalgamating or wound-up corporation under this
Agreement. The Borrower will not, and will not permit any Credit Party to,
engage to any material extent in any material business other than the Business.
6.4 INVESTMENTS, LOANS, ADVANCES, AND GUARANTEES. The Parent and the
Borrower will not, and will not permit any Credit Party to, purchase, hold or
acquire (including pursuant to any amalgamation with any Person that was not a
wholly-owned subsidiary prior to such amalgamation) any Equity Securities,
evidences of Indebtedness or other securities (including any option, warrant or
other right to acquire any of the foregoing) of, make or permit to exist any
loans or advances to, provide any Guarantee of any obligations of, or make or
permit to exist any Investment or any other interest in, any other Person, or
purchase or otherwise acquire (in one transaction or a series of transactions)
any assets of any other Person, except:
(a) Investments by a Credit Party in the Equity Securities of any other
Credit Party, except the Parent;
(b) loans or advances made by the Parent to the Borrower or any
Subsidiary, by the Borrower to any Subsidiary, or made by any
Subsidiary to the Borrower or any other Subsidiary;
(c) loans or advances made by the Borrower or any Subsidiary to the
Parent to pay expenses of the Parent incurred in its ordinary course
of business;
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(d) Guarantees constituting Indebtedness permitted by Section 6.1;
(e) Investments in Unrestricted Subsidiaries held by the Credit Parties
on the Effective Date and further Investments of up to
Cdn.$25,000,000 in Inukshuk Internet Inc. which may only be made
from the Net Proceeds received by the Parent from the issuance of
Equity Securities by the Parent following the Effective Date ("New
Equity Proceeds") provided that as at the time of such Investment
(i) no First Preferred Shares or Second Preferred Shares remain
outstanding, (ii) the Parent has invested at least Cdn.$100,000,000
from the New Equity Proceeds in Equity Securities of the Borrower
and (iii) the Leverage Ratio is less than 4:1 or the Investment is
made from the New Equity Proceeds in excess of such Cdn.$100,000,000
invested pursuant to clause (ii);
(f) Permitted Investments;
(g) an amount of Cdn.$400,000 in the aggregate of Investments in
other Persons involved in the same industry as the Business in order
to allow the Credit Parties to participate in activities related to
the Business; and
(h) the existing Investments made by the Credit Parties and listed
in Schedule "B" hereto.
For greater certainty, except as set forth in Section 6.4(e), the Credit Parties
will not make any further Investment in any Unrestricted Subsidiary after the
Effective Date.
6.5 HEDGING AGREEMENTS. No Credit Party will enter into any Swap
Agreement other than Swap Agreements to manage currency and/or interest rate
exposure and not for the purpose of speculation.
6.6 RESTRICTED PAYMENTS. The Borrower will not, and will not permit any
Credit Party to, declare, pay or make, or agree to pay or make, directly or
indirectly, any Restricted Payment, provided that (a) the Parent may declare and
pay dividends with respect to First Preferred Shares and Second Preferred Shares
(or redeem First Preferred Shares and Second Preferred Shares), all to the
extent contemplated by the Parent Articles of Incorporation, provided that no
Default has occurred and is continuing and there is sufficient aggregate Excess
Cash Flow (as defined in the Intercreditor Agreement), proceeds from Asset
Dispositions and proceeds from the issuance of Equity Securities to fund the
payment of all amounts which, by the terms of the Parent Articles of
Incorporation, are to be paid prior to any payment on account of dividends on
the First Preferred Shares and Second Preferred Shares (or the payment of
interest on the First Notes or Second Notes, as applicable), (b) the Borrower
may declare and pay dividends to the Parent, (c) any Subsidiary may declare and
pay dividends to the Parent, the Borrower or any wholly-owned Subsidiary and any
wholly-owned Subsidiary may redeem or repurchase its own Equity Securities, (d)
the Borrower may make Restricted Payments pursuant to and in accordance with
management bonus plans, employee bonus plans, stock option plans, profit sharing
plans and/or other benefit plans for management or employees of the Parent, the
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Borrower and the Subsidiaries, provided that the aggregate amount of cash
payments made by the Parent, the Borrower and the Subsidiaries in any Fiscal
Year pursuant to all such management bonus plans, employee bonus plans, stock
option plans, profit sharing plans and other compensation benefit plans shall
not exceed Cdn.$1,000,000, (e) the Parent may redeem, pursuant to the Parent
Articles of Incorporation, First Preferred Shares and Second Preferred Shares by
issuing First Units and Second Units, (f) the Parent may redeem First Preferred
Shares and Second Preferred Shares with the Net Proceeds of new Equity
Securities of the Parent issued after the Effective Date as permitted in the
Intercreditor Agreement, and (g) so long as no Event of Default has occurred and
is outstanding, the Parent may redeem up to Cdn.$10,000,000 of First Preferred
Shares and Second Preferred Shares if those are the last First Preferred Shares
and Second Preferred Shares outstanding and following such redemption there will
not be any remaining First Preferred Shares or Second Preferred Shares
outstanding.
6.7 TRANSACTIONS WITH AFFILIATES. The Borrower will not, and will not
permit any Credit Party to, sell, lease or otherwise transfer any property or
assets to, or purchase, lease or otherwise acquire any property or assets from,
or otherwise engage in any other transactions with, any of its Affiliates,
except (a) in the ordinary course of business at prices and on terms and
conditions not less favourable to the Borrower or such Credit Party than could
be obtained on an arm's-length basis from unrelated third parties, (b)
transactions between or among Credit Parties and not involving any other
Affiliate, (c) any Restricted Payment permitted by Section 6.6, and (d) any
transaction permitted under Section 6.3. The Borrower and other Credit Parties
will not enter into any transaction or series of transactions with Affiliates of
the Parent, which involve an outflow of money or other property from the Parent,
the Borrower or other Credit Parties to an Affiliate of the Parent, including
repayment of Indebtedness, or payment of management fees, affiliation fees,
administration fees, compensation, salaries, asset purchase payments or any
other type of fees or payments similar in nature, other than on terms and
conditions substantially as favourable to the Parent, the Borrower and the other
Credit Parties as would be obtainable by the Parent, the Borrower and the other
Credit Parties in a reasonably comparable arm's-length transaction with a Person
other than an Affiliate of the Parent, the Borrower or the Subsidiaries,
provided, however, that, in any event, the aggregate amount of all management
fees, affiliation fees, administration fees and other similar fees paid by the
Parent, the Borrower or any of the Subsidiaries to an Affiliate of the Parent,
the Borrower or the Subsidiaries in any Fiscal Year shall not exceed
Cdn.$2,000,000. The foregoing restrictions shall not apply to: (i) the payment
of reasonable and customary fees to directors of the Parent or the Borrower who
are not employees of the Parent or the Borrower, (ii) any other transaction with
any employee, officer or director of the Parent, the Borrower or any Subsidiary
pursuant to employee profit sharing and/or benefit plans and compensation and
non-competition arrangements in amounts customary for corporations similarly
situated to the Parent, the Borrower or any such Subsidiary and entered into in
the ordinary course of business and approved by the board of directors of the
Parent, the Borrower or such Subsidiary, or (iii) any reimbursement of
reasonable out-of-pocket costs incurred by an Affiliate of the Parent or the
Borrower on behalf of or for the account of the Parent, the Borrower or any of
the Subsidiaries.
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6.8 REPAYMENT OF DEBT. The Borrower will not, and will not permit any
Credit Party to, repay, prepay, redeem, repurchase, defease or otherwise make
any payment on account of any Indebtedness for borrowed money except for (a)
payment on account of Indebtedness created hereunder, (b) any payment consented
to in writing by the Required Lenders, (c) Indebtedness for borrowed money
permitted by Section 6.1, the repayment of which is not restricted by Section
6.6, (d) any payment made pursuant to Section 2.2 of the Intercreditor Agreement
and (e) any payment made pursuant to a Swap Agreement entered into pursuant to
Sections 2.18 and 5.13.
6.9 RESTRICTIVE AGREEMENTS. The Borrower will not, and will not permit
any Credit Party to, directly or indirectly, enter into, incur or permit to
exist any agreement or other arrangement that prohibits, restricts or imposes
any condition upon (a) the ability of any Credit Party to create, incur or
permit to exist any Lien upon any of its property or assets, (b) the ability of
any Credit Party to pay dividends or other distributions with respect to any
Equity Securities or with respect to, or measured by, its profits or to make or
repay loans or advances to any other Credit Party or to provide a Guarantee of
any Indebtedness of any other Credit Party, (c) the ability of any Credit Party
to make any loan or advance to any other Credit Party, or (d) the ability of any
Credit Party to sell, lease or transfer any of its property to the Borrower or
any other Credit Party; provided that (i) the foregoing shall not apply to
restrictions and conditions imposed by Law or by this Agreement, (ii) the
foregoing shall not apply to restrictions and conditions existing on the date
hereof identified on Schedule B (but shall apply to any extension or renewal of,
or any amendment or modification expanding the scope of, any such restriction or
condition), (iii) the foregoing shall not apply to customary restrictions and
conditions contained in agreements relating to the sale of any Credit Party
pending such sale, provided such restrictions and conditions apply only to the
Credit Party that is to be sold and such sale is permitted hereunder, (iv)
clause (a) of the foregoing shall not apply to restrictions or conditions
imposed by any agreement relating to secured Indebtedness permitted by this
Agreement if such restrictions or conditions apply only to the property or
assets securing such Indebtedness, and (v) clause (a) of the foregoing shall not
apply to customary provisions in leases and other ordinary course contracts
restricting the assignment thereof.
6.10 CAPITAL LEASE OBLIGATIONS. The Borrower will not create, incur,
assume or suffer to exist, or permit any Credit Party to create, incur, assume
or suffer to exist, any Capital Lease Obligations, whether directly or as a
guarantor, if, after giving effect thereto, the aggregate amount of all payments
required to be made by the Parent, the Borrower and the other Credit Parties on
a consolidated basis pursuant to such Capital Lease Obligations would exceed
Cdn.$1,000,000 in any Fiscal Year.
6.11 SALES AND LEASEBACKS. No Credit Party shall enter into any
arrangement, directly or indirectly, with any Person whereby any Credit Party
shall sell or transfer any property, whether now owned or hereafter acquired,
and whereby such Credit Party shall then or thereafter rent or lease as lessee
such property or any part thereof or other property which such Credit Party
intends to use for substantially the same purpose or purposes as the property
sold or transferred.
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6.12 PENSION PLAN COMPLIANCE. If any Credit Party establishes a Pension
Plan, such Credit Party will not (a) terminate such Pension Plan in a manner, or
take any other action with respect to such Pension Plan, which could reasonably
be expected to have a Material Adverse Effect; (b) fail to make full payment
when due of all amounts which, under the provisions of such Pension Plan, any
agreement relating thereto or applicable Law, any Credit Party is required to
pay as contributions thereto, except where the failure to make such payments
could not reasonably be expected to have a Material Adverse Effect; (c) permit
to exist any accumulated funding deficiency, whether or not waived, with respect
to such Pension Plan in an amount which could reasonably be expected to cause a
Material Adverse Effect; (d) contribute to or assume an obligation to contribute
to any "multi-employer pension plan" as such term is defined in the Pension
Benefits Act (Ontario); (e) permit the actuarial present value of the benefit
liabilities (computed on an accumulated benefit obligation basis in accordance
with GAAP) under all Pension Plans in the aggregate to exceed the current value
of the assets of all Pension Plans in the aggregate that are allocable to such
benefit liabilities, in each case only to the extent such liabilities and assets
relate to benefits to be paid to employees of the Credit Parties, by an amount
that could reasonably be expected to cause a Material Adverse Effect.
6.13 SALE OR DISCOUNT OF RECEIVABLES. The Borrower will not, and will not
permit any Credit Party to, discount or sell (with or without recourse) any
notes receivable or accounts receivable to any Person (except for sales from one
Credit Party to another Credit Party), other than accounts receivable that are
more than 90 days overdue and which are sold on arm's length commercial terms to
a factoring company.
6.14 UNCONDITIONAL PURCHASE OBLIGATIONS. The Borrower will not, and will
not permit any Credit Party to, enter into or be a party to, any material
contract for the purchase of materials, supplies or other property or services,
if such contract requires that payment be made by it regardless of whether or
not delivery of such materials, supplies or other property or services is ever
made.
6.15 OWNERSHIP OF SHARES. The Borrower will not authorize or issue any
shares in its capital to any Person other than the Parent and the Borrower will
not permit the transfer of any shares in its capital to any Person other than
the Parent. No Subsidiary will authorize or issue any shares in its capital to
any Person other than another Credit Party, and no Subsidiary will permit the
transfer of any shares in its capital to any Person other than another Credit
Party.
6.16 NO AMENDMENTS TO MATERIAL CONTRACTS. The Borrower will not amend (or
waive any provision of), or permit any Credit Party to amend (or waive any
provision of), any Material Contract in a manner which may reasonably be
expected to have a Material Adverse Effect.
6.17 FISCAL YEAR. Without the consent of the Administrative Agent, each
of the Borrower and the Parent will not change, or permit any Credit Party to
change, its Fiscal Year for financial reporting purposes from a calendar year
ending December 31st.
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ARTICLE 7
EVENTS OF DEFAULT
7.1 EVENTS OF DEFAULT. If any of the following events ("Events of
Default") shall occur:
(a) the Borrower shall fail to pay any principal of any Loan or any
Reimbursement Obligation in respect of any LC Disbursement when and
as the same shall become due and payable, whether at the due date
thereof or at a date fixed for prepayment thereof or otherwise;
(b) the Borrower shall fail to pay any interest on any Loan or any fee
or any other amount (other than an amount referred to in clause (a)
above) payable under this Agreement, when and as the same shall
become due and payable;
(c) any representation or warranty made or deemed made by or on behalf
of the Borrower or any other Credit Party in or in connection with
any Financing Document or any amendment or modification thereof or
waiver thereunder shall prove to have been incorrect in any material
respect when made or deemed to be made, or any representation or
warranty made or deemed made by or on behalf of the Borrower or any
other Credit Party in any report, certificate, financial statement
or other document furnished pursuant to or in connection with any
Financing Document or any amendment or modification thereof or
waiver thereunder, shall prove to have been incorrect in any
material respect when made or deemed to be made;
(d) the Borrower shall fail to observe or perform any covenant,
condition or agreement contained in Section 5.1(xii)(b) (notices of
Default or Events of Default), 5.2 (with respect to the Borrower's
existence), 5.14 (Financial Covenants) or in Article 6 (or in any
comparable provision of any other Financing Document);
(e) the Borrower shall fail to observe or perform any covenant,
condition or agreement contained in this Agreement (other than those
specified in clauses (a), (b) or (d) above) or any other Financing
Document, and such failure shall continue unremedied for a period of
30 days after notice thereof from the Administrative Agent to the
Borrower (which notice will be given at the request of any Lender);
(f) any Credit Party shall fail to make any payment whether of principal
or interest, and regardless of amount, in respect of any Material
Indebtedness, when and as the same shall become due and payable
(after giving effect to any applicable grace period);
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(g) any event or condition occurs that results in any Material
Indebtedness becoming due prior to its scheduled maturity or that
enables or permits (with or without the giving of notice, the lapse
of time or both) the holder or holders of any Material Indebtedness
or any trustee or agent on its or their behalf to cause any Material
Indebtedness to become due, or to require the prepayment,
repurchase, redemption or defeasance thereof, prior to its scheduled
maturity; provided that this Section 7.1(g) shall not apply to
secured Indebtedness that becomes due as a result of the voluntary
sale or transfer of the property or assets securing such
Indebtedness so long as the proceeds of such sale or transfer are
sufficient to, and are applied to, reduce such secured Indebtedness
to nil; and provided further that this Section 7.1(g) shall not
apply where the holder of such Material Indebtedness is a Lender or
a person "related" to a Lender, as "related" is defined in the
Income Tax Act, and the event or condition resulting in such
Material Indebtedness becoming due prior to its scheduled maturity
is an event or a condition restricting the application of the
exemption of sub-paragraph 212(1)(b)(vii) of the Income Tax Act or
that would have restricted the application of such exemption should
the holder have been a non-resident of Canada for the purpose of the
Income Tax Act; and provided further that this Section 7.1(g) shall
not apply if the event or condition is limited solely to the
occurrence of a "Change of Control" that creates an "Event of
Default" pursuant to Section 7.1(q) of this Agreement.
(h) any Credit Party:
(i) becomes insolvent, or generally does not or becomes unable
to pay its debts or meet its liabilities as the same become
due, or admits in writing its inability to pay its debts
generally, or declares any general moratorium on its
indebtedness, or proposes a compromise or arrangement
between it and any class of its creditors;
(ii) commits an act of bankruptcy under the Bankruptcy and
Insolvency Act (Canada), or makes an assignment of its
property for the general benefit of its creditors under
such Act, or makes a proposal (or files a notice of its
intention to do so) under such Act;
(iii) institutes any proceeding seeking to adjudicate it an
insolvent, or except as permitted by Section 6.3, seeking
liquidation, dissolution, winding-up, reorganization,
compromise, arrangement, adjustment, protection,
moratorium, relief, stay of proceedings of creditors
generally (or any class of creditors), or composition of it
or its debts or any other relief, under any federal,
provincial or foreign Law now or hereafter in effect
relating to bankruptcy, winding-up, insolvency,
reorganization, receivership, plans of arrangement or
relief or protection of debtors (including the Bankruptcy
and Insolvency Act (Canada), the CCAA and any applicable
corporations legislation) or at common law or in equity,
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or files an answer admitting the material allegations of a
petition filed against it in any such proceeding;
(iv) applies for the appointment of, or the taking of possession
by, a receiver, interim receiver, receiver/manager,
sequestrator, conservator, custodian, administrator,
trustee, liquidator or other similar official for it or any
substantial part of its property; or
(v) threatens to do any of the foregoing, or takes any action,
corporate or otherwise, to approve, effect, consent to or
authorize any of the actions described in this Section
7.1(h) or in Section 7.1(i), or otherwise acts in
furtherance thereof or fails to act in a timely and
appropriate manner in defense thereof,
(i) any petition is filed, application made or other proceeding
instituted against or in respect of any Credit Party:
(i) seeking to adjudicate it an insolvent;
(ii) seeking a receiving order against it under the Bankruptcy
and Insolvency Act (Canada);
(iii) seeking liquidation, dissolution, winding-up,
reorganization, compromise, arrangement, adjustment,
protection, moratorium, relief, stay of proceedings of
creditors generally (or any class of creditors), or
composition of it or its debts or any other relief under
any federal, provincial or foreign Law now or hereafter in
effect relating to bankruptcy, winding-up, insolvency,
reorganization, receivership, plans of arrangement or
relief or protection of debtors (including the Bankruptcy
and Insolvency Act (Canada), the CCAA and any applicable
corporations legislation) or at common law or in equity; or
(iv) seeking the entry of an order for relief or the appointment
of, or the taking of possession by, a receiver, interim
receiver, receiver/manager, sequestrator, conservator,
custodian, administrator, trustee, liquidator or other
similar official for it or any substantial part of its
property;
and such petition, application or proceeding continues undismissed,
or unstayed and in effect, for a period of 30 days after the
institution thereof, provided that if an order, decree or judgment
is granted or entered (whether or not entered or subject to appeal)
against any Credit Party thereunder in the interim, such grace
period will cease to apply, and provided further that if any Credit
Party files an answer admitting the material allegations of a
petition filed against it in any such proceeding, such grace period
will cease to apply;
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(j) any other event occurs which, under the Laws of any applicable
jurisdiction, has an effect equivalent to any of the events referred
to in either of Sections 7.1(h) or (i);
(k) one or more judgments of a court of competent jurisdiction for the
payment of money in a cumulative amount in excess of Cdn.$10,000,000
(or its then equivalent in any other currency) in the aggregate is
rendered against the Borrower, any other Credit Party or any
combination thereof and the Borrower or other Credit Party has not
(i) provided for its discharge in accordance with its terms within
30 days from the date of entry thereof, or (ii) procured a stay of
execution thereof within 30 days from the date of entry thereof and
within such period, or such longer period during which execution of
such judgment has not been stayed, appealed such judgment and caused
the execution thereof to be stayed during such appeal, provided that
if enforcement and/or realization proceedings are lawfully commenced
in respect thereof in the interim, such grace period will cease to
apply;
(l) any property of any Credit Party having a Fair Market Value in
excess of Cdn.$5,000,000 (or its then equivalent in any other
currency) in the aggregate is seized (including by way of execution,
attachment, garnishment, levy or distraint), or any Lien thereon
securing Indebtedness in excess of Cdn.$5,000,000 (or its then
equivalent in any other currency) is enforced, or such property has
become subject to any charging order or equitable execution of a
Governmental Authority, or any writ of execution or distress warrant
exists in respect of any Credit Party or the property of any of
them, or any sheriff or other Person becomes lawfully entitled by
operation of Law or otherwise to seize or distrain upon such
property and in any case such seizure, enforcement, execution,
attachment, garnishment, distraint, charging order or equitable
execution, or other seizure or right, continues in effect and is not
released or discharged for more than 30 days or such longer period
during which entitlement to the use of such property continues with
the Credit Party, and the Credit Party is contesting the same in
good faith and by appropriate proceedings, provided that if the
property is removed from the use of the relevant Credit Party, or is
sold, in the interim, such grace period will cease to apply, and
provided further that if the Person seizing the property is a Lender
or any person "related" to the Lender (as "related" is defined in
the Income Tax Act), the seizure will not constitute an Event of
Default;
(m) one or more final judgments of a court of competent jurisdiction,
not involving the payment of money and not otherwise specified in
this Section 7.1, has been rendered against any Credit Party, the
result of which could reasonably be expected to result in a Material
Adverse Effect, so long as the Credit Party has not (i) provided for
its discharge in accordance with its terms within 30 days from the
date of entry thereof, or (ii) procured a stay of execution thereof
within 30 days from the date of entry thereof and within such
period, or such longer period
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during which execution of such judgment has been stayed, appealed
such judgment and caused the execution thereof to be stayed during
such appeal, provided that if enforcement and/or realization
proceedings are lawfully commenced in respect thereof in the
interim, such grace period will cease to apply;
(n) this Agreement, any other Financing Document or any material
obligation or other provision hereof or thereof at any time for any
reason terminates or ceases to be in full force and effect and a
legally valid, binding and enforceable obligation of any Credit
Party, is declared to be void or voidable or is repudiated, or the
validity, binding effect, legality or enforceability hereof or
thereof is at any time contested by any Credit Party, or any Credit
Party denies that it has any or any further liability or obligation
hereunder or thereunder or any action or proceeding is commenced to
enjoin or restrain the performance or observance by any Credit Party
of any material terms hereof or thereof or to question the validity
or enforceability hereof or thereof, or at any time it is unlawful
or impossible for the Credit Party to perform any of its material
obligations hereunder or thereunder, except to the extent that any
of the foregoing results directly from the gross negligence or
wilful misconduct of the Administrative Agent or any Lender;
(o) any Lien purported to be created by any Security Document shall
cease to be, or shall be asserted by any Credit Party not to be, a
valid, perfected, first priority (except as otherwise expressly
provided in this Agreement, the Lien Priority Agreement or such
Security Document) Lien in Collateral with a Fair Market Value or
book value (whichever is greater) in excess, individually or in the
aggregate, of Cdn.$5,000,000;
(p) a Material Adverse Change shall occur; or
(q) a Change in Control shall occur;
then, and in every such event (other than an event with respect to the Borrower
described in clause (h), (i) or (j) above), and at any time thereafter during
the continuance of such event or any other such event, the Administrative Agent
may, and at the request of the Required Lenders shall, by notice to the
Borrower, declare the Loans then outstanding to be due and payable in whole (or
in part, in which case any principal not so declared to be due and payable may
thereafter be declared to be due and payable), and thereupon the principal of
the Loans so declared to be due and payable, together with accrued interest
thereon and all fees and other obligations of the Borrower accrued hereunder,
shall become due and payable immediately, without presentment, demand, protest
or other notice of any kind except as set forth earlier in this paragraph, all
of which are hereby waived by the Borrower; and in the case of any event with
respect to the Borrower described in clause (h), (i) or (j) above, the principal
of the Loans then outstanding, together with accrued interest thereon and all
fees and other obligations of the Borrower accrued hereunder, shall
automatically become due and payable, without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by the Borrower.
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ARTICLE 8
THE ADMINISTRATIVE AGENT
8.1 APPOINTMENT OF AGENT. Each Lender and the Issuing Bank hereby
designates JPMorgan Chase Bank, Toronto Branch, as Administrative Agent to act
as herein specified and as specified in the other Financing Documents and to
enter into any of the Financing Documents on behalf of such Lender. Each Lender
and the Issuing Bank hereby irrevocably authorizes the Administrative Agent to
take such action on its behalf under the provisions of the Financing Documents
and to exercise such powers and to perform such duties thereunder as are
specifically delegated to or required of the Administrative Agent by the terms
thereof and such other powers as are reasonably incidental thereto. The
Administrative Agent may perform any of its duties hereunder by or through its
agents or employees.
8.2 LIMITATION OF DUTIES OF AGENT. The Administrative Agent shall have
no duties or responsibilities except those expressly set forth with respect to
the Administrative Agent in this Agreement and as specified in the other
Financing Documents. Neither the Administrative Agent nor any of its Related
Parties shall be liable for any action taken or omitted by it as such hereunder
or in connection herewith, unless caused by its or their gross negligence or
wilful misconduct. The duties of the Administrative Agent shall be mechanical
and administrative in nature; the Administrative Agent shall not have, by reason
of this Agreement or the other Financing Documents, a fiduciary relationship in
respect of any Lender or the Issuing Bank. Nothing in this Agreement or the
other Financing Documents, expressed or implied, is intended to or shall be so
construed as to impose upon the Administrative Agent any obligations in respect
of this Agreement except as expressly set forth herein. The Administrative Agent
shall be under no duty to take any discretionary action permitted to be taken by
it pursuant to this Agreement or the other Financing Documents unless it is
requested in writing to do so by the Required Lenders or Majority Tranche A
Lenders, as appropriate.
8.3 LACK OF RELIANCE ON THE AGENT.
(a) Independent Investigation. Independently, and without reliance upon
the Administrative Agent, each Lender and the Issuing Bank, to the
extent it deems appropriate, has made and shall continue to make (i)
its own independent investigation of the financial condition and
affairs of the Credit Parties in connection with the taking or not
taking of any action in connection herewith, and (ii) its own
appraisal of the creditworthiness of the Credit Parties, and, except
as expressly provided in this Agreement and the other Financing
Documents, the Administrative Agent shall have no duty or
responsibility, either initially or on a continuing basis, to
provide any Lender or the Issuing Bank with any credit or other
information with respect thereto, whether coming into its possession
before the consummation of the Transactions or at any time or times
thereafter.
(b) Agent Not Responsible. The Administrative Agent shall not be
responsible to any Lender or the Issuing Bank for any recitals,
statements, information, representations or warranties contained
herein or in any document, certificate or
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other writing delivered in connection herewith or for the execution,
effectiveness, genuineness, validity, enforceability,
collectibility, priority or sufficiency of this Agreement or the
other Financing Documents or the financial condition of any Credit
Party or be required to make any inquiry concerning either the
performance or observance of any of the terms, provisions or
conditions of this Agreement or the other Financing Documents, or
the financial condition of any Credit Party, or the existence or
possible existence of any Default or Event of Default.
8.4 CERTAIN RIGHTS OF THE ADMINISTRATIVE AGENT. If the Administrative
Agent shall request instructions from the Lenders, the Required Lenders or the
Majority Tranche A Lenders (as the case may be) with respect to any act or
action (including the failure to act) in connection with this Agreement or the
other Financing Documents, the Administrative Agent shall be entitled to refrain
from such act or taking such action unless and until the Administrative Agent
shall have received written instructions from the Lenders, the Required Lenders
or the Majority Tranche A Lenders, as applicable, and the Administrative Agent
shall not incur liability to any Person by reason of so refraining. Without
limiting the foregoing, no Lender shall have any right of action whatsoever
against the Administrative Agent as a result of the Administrative Agent acting
or refraining from acting under this Agreement and the other Financing Documents
in accordance with the instructions of the Required Lenders or the Majority
Tranche A Lenders, as applicable, or, to the extent required by Section 9.2, all
of the Lenders.
8.5 RELIANCE BY ADMINISTRATIVE AGENT. The Administrative Agent shall be
entitled to rely, and shall be fully protected in relying, upon any note,
writing, resolution, notice, statement, certificate, telex, teletype or
facsimile message, electronic mail, cablegram, radiogram, order or other
documentary teletransmission or telephone message believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person. The
Administrative Agent may consult with legal counsel (including counsel for the
Borrower), independent public accountants and other experts selected by it and
shall not be liable for any action taken or omitted to be taken by it in good
faith in accordance with the advice of such counsel, accountants or experts.
8.6 INDEMNIFICATION OF AGENT. To the extent the Administrative Agent is
not reimbursed and indemnified by the Borrower, each Lender will reimburse and
indemnify the Administrative Agent, in proportion to its aggregate Applicable
Percentage, for and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses (including
reasonable counsel fees and disbursements) or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by or asserted against the
Administrative Agent in performing its duties hereunder, in any way relating to
or arising out of this Agreement or any other Financing Document, including all
applicable Taxes to which the Administrative Agent may be subject in so
performing or that are in any way so related; provided that no Lender shall be
liable to the Administrative Agent for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the Administrative Agent's gross
negligence (it being acknowledged that ordinary negligence does not necessarily
constitute gross negligence) or wilful misconduct.
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8.7 THE AGENT IN ITS INDIVIDUAL CAPACITIES. With respect to its
obligations under this Agreement and the Loans made by it, JPMorgan Chase Bank,
Toronto Branch, in its capacity as a Lender hereunder, shall have the same
rights and powers hereunder as any other Lender and may exercise the same as
though it were not performing the duties, if any, specified herein; and the
terms "Lenders", "Majority Tranche A Lenders" and "Required Lenders" and any
similar terms shall, unless the context clearly otherwise indicates, include
JPMorgan Chase Bank, Toronto Branch in its capacity as a Lender hereunder. The
Administrative Agent may accept deposits from, lend money to, and generally
engage in any kind of banking, trust, financial advisory or other business with
the Borrower or any affiliate of the Borrower as if it were not performing the
duties, if any, specified herein, and may accept fees and other consideration
from the Borrower for services in connection with this Agreement and otherwise
without having to account for the same to the Lenders. Furthermore, each Lender,
the Borrower and the Parent (i) acknowledges that XXXxxxxx Xxxxx Xxxx, Xxxxxxx
Branch, is administrative agent and collateral agent under each of this
Agreement, the Tranche B-Term Loan A Credit Agreement and the Tranche B-Term
Loan B Credit Agreement, and that conflicts may arise as a result of such
multiple roles, and (ii) waives and releases JPMorgan Chase Bank, Toronto
Branch, from all liability whatsoever resulting from any such conflict.
8.8 MAY TREAT LENDER AS OWNER. The Borrower, Administrative Agent and
the Issuing Bank may deem and treat each Lender as the owner of the Loans
recorded on the Register maintained pursuant to Section 9.4(b) for all purposes
hereof until a written notice of the assignment or transfer thereof shall have
been filed with the Administrative Agent. Any request, authority or consent of
any Person who at the time of making such request or giving such authority or
consent is the owner of a Loan shall be conclusive and binding on any subsequent
owner, transferee or assignee of such Loan.
8.9 SUCCESSOR ADMINISTRATIVE AGENT.
(a) Administrative Agent Resignation. The Administrative Agent may
resign at any time by giving written notice thereof to the Lenders,
the Issuing Bank and the Borrower. Upon any such resignation, the
Majority Tranche A Lenders shall have the right, upon five Business
Days' notice to the Borrower, to appoint a successor Administrative
Agent (who shall not be a non-resident of Canada within the meaning
of the Income Tax Act), subject to the approval of the Borrower,
such approval not to be unreasonably withheld. Any such approval of
the Borrower shall not be required during the existence of an Event
of Default. If no successor Administrative Agent shall have been so
appointed by the Majority Tranche A Lenders, and shall have accepted
such appointment, within 30 days after the retiring Administrative
Agent's giving of notice of resignation then, upon five Business
Days' notice to the Borrower, the retiring Administrative Agent may,
on behalf of the Lenders, appoint a successor Administrative Agent
(subject to approval of the Borrower, such approval not to be
unreasonably withheld), which shall be a financial institution
organized under the Laws of Canada having a
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combined capital and surplus of at least Cdn.$500,000,000 or having
a parent company with combined capital and surplus of at least
Cdn.$500,000,000.
(b) Rights, Powers, etc. Upon the acceptance of any appointment as
Administrative Agent hereunder by a successor Administrative Agent,
such successor Administrative Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of
the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations under this
Agreement. After any retiring Administrative Agent's resignation or
removal hereunder as Administrative Agent, the provisions of this
Article 8 shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent under
this Agreement.
8.10 LENDERS TO ENFORCE THROUGH ADMINISTRATIVE AGENT. Each Lender hereby
acknowledges that, to the extent permitted by applicable Law, the Security
Documents and the remedies provided thereunder to the Lenders are for the
benefit of the Lenders collectively and acting together and not severally, and
further acknowledges that each Lender's rights hereunder and under the Security
Documents are to be exercised collectively, not severally, by the Administrative
Agent upon the decision of the Required Lenders. Accordingly, notwithstanding
any of the provisions contained herein or in the Security Documents, each of the
Lenders hereby covenants and agrees that it shall not be entitled to take any
action hereunder or thereunder, including any declaration of default hereunder
or thereunder, but that any such action shall be taken only by the
Administrative Agent with the prior written agreement of the Required Lenders,
provided that, notwithstanding the foregoing, in the absence of instructions
from the Lenders (or the Required Lenders) and where in the sole opinion of the
Administrative Agent the exigencies of the situation so warrant such action, the
Administrative Agent may without notice to or consent of the Lenders (or the
Required Lenders) take such action on behalf of the Lenders as it deems
appropriate or desirable in the interests of the Lenders. Each Lender hereby
further covenants and agrees that upon any such written consent being given by
the Required Lenders, it shall co-operate fully with the Administrative Agent to
the extent requested by the Administrative Agent, and each Lender further
covenants and agrees that all proceeds from the realization of the Security
Documents, to the extent permitted by applicable Law, are held for the benefit
of all of the Lenders and shall be shared among the Lenders rateably in
accordance with this Agreement, and each Lender acknowledges that all costs of
any such realization (including all amounts for which the Administrative Agent
is required to be indemnified under the provisions hereof) shall be shared among
the Lenders rateably in accordance with this Agreement. Each Lender covenants
and agrees to do all acts and things and to make, execute and deliver all
agreements and other instruments, so as to fully carry out the intent and
purpose of this Section and each Lender hereby covenants and agrees that it
shall not seek, take, accept or receive any security for any of the obligations
and liabilities of the Borrower hereunder or under the other Financing
Documents, or any other document, instrument, writing or agreement ancillary
hereto or thereto, other than such security as is provided hereunder or
thereunder, unless all of the Lenders shall at the same time obtain the benefit
of any such security or agreement, as the case may be.
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8.11 QUEBEC SECURITY. For greater certainty, and without limiting the
powers of the Administrative Agent or the Collateral Agent, or any other Person
acting as an agent or mandatary for such agents hereunder or under any of the
other Financing Documents, the Borrower and the Parent hereby acknowledge that,
for purposes of holding any security granted by any Credit Party on property
pursuant to the Laws of the Province of Quebec to secure obligations of the
Borrower or any other Credit Party under any bond issued by the Borrower or any
other Credit Party, the Collateral Agent shall be the holder of an irrevocable
power of attorney (fonde de pouvoir within the meaning of Article 2692 of the
Civil Code of Quebec) for: (i) all present and future Lenders (including the
Issuing Bank and any Affiliate of the Issuing Bank that issues Letters of
Credit); (ii) any Affiliate of any Lender that may from time to time enter into
Swap Agreements with the Borrower, and (iii) any Lender or Person that makes
available to the Borrower Permitted Additional Exit Facility Debt. Each Lender,
for itself and on behalf of any of its Affiliates that enter into Swap
Agreements with the Borrower, the Issuing Bank (and any Affiliate of the Issuing
Bank that issues Letters of Credit) and any Person (including any Lender) that
makes available to the Borrower Permitted Additional Exit Facility Debt, hereby
(i) irrevocably constitutes, to the extent necessary the Collateral Agent as the
holder of an irrevocable power of attorney (fonde de pouvoir within the meaning
of Article 2692 of the Civil Code of Quebec) in order to hold hypothecs and
security granted by the Borrower or any other Credit Party on property pursuant
to the Laws of the Province of Quebec to secure obligations of Borrower or any
other Credit Party under any bond issued by the Borrower or any other Credit
Party; and (ii) appoints and agrees that the Administrative Agent may act as the
bondholder and mandatary with respect to any bond that may be issued and pledged
from time to time for the benefit of the Lenders, the Persons that make
available Permitted Additional Exit Facility Debt, the Issuing Bank and any
Affiliate of the Issuing Bank that issues Letters of Credit and any Affiliates
of the Lenders that enter into Swap Agreements.
The constitution of the Collateral Agent as the holder of such irrevocable power
of attorney (fonde de pouvoir) and the Administrative Agent as bondholder and
mandatary with respect to any bond that may be issued and pledged from time to
time for the benefit of the Lenders, the Persons that make available Permitted
Additional Exit Facility Debt, the Issuing Bank and any Affiliate of the Issuing
Bank that issues Letters of Credit and any Affiliates of the Lenders that enter
into Swap Agreements shall be deemed to have been ratified and confirmed as
follows:
(i) by any assignee of a Lender (or an Issuing Bank and any Affiliate of the
Issuing Bank that issues Letters of Credit), by the execution of an
Assignment and Assumption;
(ii) by any Person (including a Lender) that provides Permitted Additional Exit
Facility Debt, by the execution of a supplemental agreement hereto; and
(iii) by any Affiliate of a Lender that enters into Swaps Agreements, by the
execution of the Swap Agreements.
Each Person (who is not then a Lender) providing any Additional Loan which is a
Loan hereunder shall be deemed to have confirmed and ratified the constitution
of the Collateral Agent as the holder of such irrevocable power of attorney
(fonde de pouvoir) and shall be deemed to
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have confirmed and ratified the constitution of the Administrative Agent as
bondholder and mandatary with respect to any bond that may be issued by the
Borrower or any Credit Party and pledged from time to time in favour of the
Administrative Agent by the execution of the agreement pursuant to which such
Additional Loan is made available.
Notwithstanding the provisions of Section 32 of the An Act respecting the
special powers of legal persons (Quebec), the Administrative Agent or the
Collateral Agent may purchase, acquire and be the holder of any bond issued by
the Borrower or any other Credit Party (i.e. the fonde de pouvoir may acquire
and hold the first bond issued under any deed of hypothec by the Borrower or any
Credit Party). The Borrower and each Credit Party hereby acknowledge that any
such bond shall constitute a title of indebtedness, as such term is used in
Article 2692 of the Civil Code of Quebec.
The Collateral Agent herein appointed as fonde de pouvoir shall have the same
rights, powers and immunities as provided under the Intercreditor Agreement and
the Lien Priority Agreement. Without limitation, the provisions of Section 8.9
shall apply mutatis mutandis to the resignation and appointment of a successor
Collateral Agent acting as fonde de pouvoir.
ARTICLE 9
MISCELLANEOUS
9.1 NOTICES. (a) Except in the case of notices and other communications
expressly permitted to be given by telephone (and subject to paragraph (b)
below), all notices and other communications provided for herein shall be in
writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by facsimile in each case to the addressee,
as follows:
(i) if to the Borrower:
MICROCELL SOLUTIONS INC.
000 xx Xx Xxxxxxxxxxx Xxxxxx Xxxx
Xxxxx 0000
Xxxxxxxx, Xxxxxx
X0X 0X0
Attention: Chief Financial Officer
Facsimile: 514.846.6959
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(ii) if to the Administrative Agent or the Collateral Agent:
JPMORGAN CHASE BANK, XXXXXXX XXXXXX
Xxxxx 0000, Xxxxx Xxxxx
Xxxxx Bank Plaza
000 Xxx Xxxxxx, X.X. Xxx 00
Xxxxxxx, XX X0X 0X0
Attention: Vice President, Corporate Banking
Facsimile: 000.000.0000
(iii) if to any Lender or the Issuing Bank, to it at its address (or
facsimile number) set forth opposite its name in the execution
page(s) of this Agreement.
(b) Notices and other communications to the Lenders hereunder may be
delivered or furnished by electronic communications pursuant to procedures
approved by the Administrative Agent; provided that the foregoing shall not
apply to notices pursuant to Article 2 unless otherwise agreed by the
Administrative Agent and the applicable Lender. The Administrative Agent or the
Borrower may, in its discretion, agree to accept notices and other communication
to it hereunder by electronic communications pursuant to procedures approved by
it; provided that approval of such procedures may be limited to particular
notices or communications.
(c) Any party hereto may change its address or facsimile number for
notices and other communications hereunder by notice to the other parties
hereto. All notices and other communications given to any party hereto in
accordance with the provisions of this Agreement shall be deemed to have been
given on the date of receipt.
9.2 WAIVERS; AMENDMENTS.
(a) No failure or delay by the Administrative Agent, the Issuing Bank or
any Lender in exercising any right or power hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps
to enforce such a right or power, preclude any other or further
exercise thereof or the exercise of any other right or power. The
rights and remedies of the Administrative Agent, the Issuing Bank
and the Lenders hereunder are cumulative and are not exclusive of
any rights or remedies that they would otherwise have. No waiver of
any provision of this Agreement or consent to any departure by the
Borrower therefrom shall in any event be effective unless the same
shall be permitted by Section 9.2(b), and then such waiver or
consent shall be effective only in the specific instance and for the
purpose for which given. Without limiting the generality of the
foregoing, the continuation, conversion or rolling over of a Loan or
the issuance of a Letter of Credit shall not be construed as a
waiver of any Default, regardless of whether the Administrative
Agent, the Issuing Bank or any Lender may have had notice or
knowledge of such Default at the time.
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(b) Neither this Agreement nor any other Financing Document (or any
provision hereof or thereof) may be waived, amended or modified
except pursuant to an agreement or agreements in writing entered
into by the Borrower and the Required Lenders or by the Borrower and
the Administrative Agent with the consent of the Required Lenders;
provided that no such agreement shall (i) increase the amount or
extend the expiry date of any Loan of any Lender without the prior
written consent of each Lender directly affected thereby, (ii)
reduce the principal amount of any Loan or reduce the rate of
interest or any fee applicable to any Loan without the prior written
consent of each Lender directly affected thereby, (iii) postpone the
scheduled date of payment of the principal amount of any Loan, or
any interest thereon, or any fees payable in respect thereof, or
reduce the amount of, waive or excuse any such payment or permit an
Interest Period with a duration in excess of six months, without the
prior written consent of each Lender directly affected thereby, (iv)
change Section 2.12(b) or (c) in a manner that would alter the pro
rata sharing of payments required thereby, without the prior written
consent of each Lender directly affected thereby, (v) change any of
the provisions of this Section 9.2 or the definition of "Required
Lenders" or "Majority Tranche A Lenders" or any other provision
hereof specifying the number or percentage of Lenders required to
waive, amend or modify any rights hereunder or make any
determination or grant any consent hereunder, without the prior
written consent of each Lender, (vi) waive any Event of Default
under Section 7.1 (h), (i) or (j) without the prior written consent
of each Lender, (vii) release any Credit Party from any material
obligations under the Security Documents and other instruments
contemplated by this Agreement or release or discharge any of the
Liens arising under the Security Documents, in each case without the
prior written consent of each Lender, or (viii) amend, waive or
modify any condition set forth in Section 4.2 without the written
consent of the Majority Tranche A Lenders; and provided further that
no such agreement shall amend, modify or otherwise affect the rights
or duties of the Administrative Agent or the Issuing Bank, as the
case may be, without the prior written consent of the Administrative
Agent or the Issuing Bank, as applicable; and provided further that
(i) any amendment, waiver or modification with respect to Section
5.14 or (ii) any amendment, waiver or modification of any provision
of this Agreement or any other Financing Document at a time when a
Default or Event of Default is in existence, and that would have the
effect of eliminating such Default or Event of Default, shall not be
deemed to be effective for the purpose of determining whether the
conditions set forth in Section 4.2 have been satisfied unless the
Majority Tranche A Lenders shall have consented to such amendment,
waiver or modification. For greater certainty, the Administrative
Agent may release and discharge the Liens constituted by the
Security Documents to the extent necessary to enable the Borrower or
any other Credit Party to complete any asset sale which is not
prohibited by this Agreement or the other Financing Documents, and
the Administrative Agent may agree to amend or waive Section 2.2 of
the Intercreditor Agreement with the consent of the Required
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Lenders. Each Lender hereby approves the terms of the Lien Priority
Agreement, approves, authorizes, ratifies, confirms and consents to
the Administrative Agent entering into such agreement on behalf of
such Lender and agrees to be bound by the terms of such agreement as
if such Lender had entered into such agreement on its own behalf.
9.3 EXPENSES; INDEMNITY; DAMAGE WAIVER.
(a) The Borrower shall pay (i) all reasonable out-of-pocket expenses
incurred by the Administrative Agent and its Affiliates, including
the reasonable fees, charges and disbursements of counsel for the
Administrative Agent and all applicable Taxes, in connection with
the syndication of the credit facilities provided for herein and the
preparation and administration of this Agreement and the other
Financing Documents, (ii) all reasonable out-of-pocket expenses
incurred by the Administrative Agent and its Affiliates, including
the reasonable fees, charges and disbursements of counsel for the
Administrative Agent and applicable Taxes, in connection with any
amendments, modifications or waivers of the provisions hereof or of
any of the other Financing Documents, (whether or not the
transactions contemplated hereby or thereby shall be consummated),
and (iii) all out-of-pocket expenses incurred by the Administrative
Agent, the Collateral Agent or any Lender, including the fees,
charges and disbursements of any counsel for the Administrative
Agent, the Collateral Agent or any Lender and all applicable Taxes,
in connection with the enforcement or protection of their rights in
connection with this Agreement, including its rights under this
Section, or in connection with the Loans made hereunder, including
all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans.
(b) The Borrower shall indemnify the Administrative Agent, the
Collateral Agent, the Issuing Bank and each Lender, as well as each
Related Party and each assignee of any of the foregoing Persons
(each such Person and each such assignee being called an
"Indemnitee") against, and hold each Indemnitee harmless from, any
and all losses, claims, cost recovery actions, damages, expenses and
liabilities of whatsoever nature or kind and all reasonable
out-of-pocket expenses (including due diligence expenses,
syndication expenses, travel expenses and reasonable fees, charges
and disbursements of counsel) and all applicable Taxes to which any
Indemnitee may become subject arising out of or in connection with
(i) the execution or delivery of the Financing Documents or any
agreement or instrument contemplated thereby, the performance by the
parties thereto of their respective obligations thereunder, and the
consummation of the Transactions or any other transactions
thereunder, (ii) any Loan or Letter of Credit or any actual or
proposed use of the proceeds therefrom, including any refusal by the
Issuing Bank to honour a demand for payment under a Letter of Credit
if the documents presented in connection with such demand do not
strictly comply with the terms of such
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Letter of Credit, (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by any
Credit Party, or any Environmental Liability related in any way to
any Credit Party, (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless
of whether any Indemnitee is a party thereto, (v) any other aspect
of this Agreement and the other Financing Documents, or (vi) the
enforcement of any Indemnitee's rights hereunder and any related
investigation, defence, preparation of defence, litigation and
enquiries, in each case regardless of whether or not the
Transactions are consummated; provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted from the gross negligence
(it being acknowledged that ordinary negligence does not necessarily
constitute gross negligence) or wilful misconduct of or material
breach of this Agreement by such Indemnitee. No Indemnitee shall be
liable for any indirect or consequential damages in connection with
its activities related to the Loans nor shall any Credit Party be
liable for any indirect or consequential damages in connection with
its activities related to the Loans.
(c) To the extent that the Borrower fails to pay any amount required to
be paid under Sections 9.3 (a) or (b), each Lender severally agrees
to pay to the Administrative Agent, the Issuing Bank or the
Collateral Agent (as applicable) such Lender's Applicable Percentage
(determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount; provided that
the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or
asserted against the Administrative Agent, the Issuing Bank or the
Collateral Agent, in its capacity as such.
(d) The Borrower shall not assert, and hereby waives (to the fullest
extent permitted by applicable Law), any claim against any
Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, any
Financing Document, or any agreement or instrument contemplated
thereby, the Transactions, any Loan or Letter of Credit or the use
of the proceeds thereof.
(e) Any inspection of any property of any Credit Party made by or
through the Administrative Agent or any Lender is for purposes of
administration of this Agreement and the Financing Documents only,
and neither the Borrower nor any other Credit Party is entitled to
rely upon the same (whether or not such inspections are at the
expense of the Borrower).
(f) By accepting or approving anything required to be observed,
performed, fulfilled or given to the Administrative Agent or the
Lenders pursuant to the Financing
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Documents, neither the Administrative Agent nor the Lenders shall be
deemed to have warranted or represented the sufficiency, legality,
effectiveness or legal effect of the same, or of any term, provision
or condition thereof, and such acceptance or approval thereof shall
not constitute a warranty or representation to anyone with respect
thereto by the Administrative Agent or the Lenders.
(g) The relationship between the Borrower and the Administrative Agent
and the Lenders is, and shall at all times remain, solely that of
borrower and lenders. Neither the Administrative Agent nor the
Lenders shall under any circumstance be construed to be partners or
joint venturers of the Borrower or its Affiliates. Neither the
Administrative Agent nor the Lenders shall under any circumstance be
deemed to be in a relationship of confidence or trust or a fiduciary
relationship with the Borrower or its Affiliates, or to owe any
fiduciary duty to the Borrower or its Affiliates. Neither the
Administrative Agent nor the Lenders undertake or assume any
responsibility or duty to the Borrower or its Affiliates to select,
review, inspect, supervise, pass judgment upon or inform the
Borrower or its Affiliates of any matter in connection with their
property or the operations of the Borrower or its Affiliates. The
Borrower and its Affiliates shall rely entirely upon their own
judgment with respect to such matters, and any review, inspection,
supervision, exercise of judgment or supply of information
undertaken or assumed by the Administrative Agent or the Lenders in
connection with such matters is solely for the protection of the
Administrative Agent and the Lenders, and neither the Borrower nor
any other Person is entitled to rely thereon.
(h) The Administrative Agent, the Issuing Bank and the Lenders shall not
be responsible or liable to any Person for any loss, damage,
liability or claim of any kind relating to injury or death to
Persons or damage to Property caused by the actions, inaction or
negligence of any Credit Party or their Affiliates and the Borrower
hereby indemnifies and holds the Administrative Agent, the Issuing
Bank and the Lenders harmless on the terms set forth in Section
9.3(b) from any such loss, damage, liability or claim.
(i) This Agreement is made for the purpose of defining and setting forth
certain obligations, rights and duties of the Borrower, the
Administrative Agent and the Lenders in connection with the Loans,
and is made for the sole benefit of the Borrower, the Administrative
Agent and the Lenders, and their respective successors and permitted
assigns. Except as provided in Sections 9.3(b) and 9.4, no other
Person shall have any rights of any nature hereunder or by reason
hereof.
(j) All amounts due under this Section 9.3 shall be payable not later
than three Business Days after written demand therefor.
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9.4 SUCCESSORS AND ASSIGNS.
(a) The provisions of this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors
and assigns permitted hereby (including any Affiliate of the Issuing
Bank that issues any Letter of Credit), except that (i) the Borrower
may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each
Lender (and any attempted assignment or transfer by the Borrower
without such consent shall be null and void), and (ii) no Lender may
assign or otherwise transfer its rights or obligations hereunder
except in accordance with this Section. Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and
assigns permitted hereby (including any Affiliate of the Issuing
Bank that issues any Letter of Credit) and, to the extent expressly
contemplated hereby, the Related Parties of each of the
Administrative Agent and the Lenders) any legal or equitable right,
remedy or claim under or by reason of this Agreement.
(b) Any Lender may assign to one or more assignees all or a portion of
its rights and obligations under this Agreement and the other
Financing Documents (including all or a portion of the Loans at the
time owing to it); provided that (i) except in the case of an
assignment to a Lender or any Lender Affiliate, the Borrower, the
Issuing Bank and the Administrative Agent must give their prior
written consent to such assignment (which consent shall not be
unreasonably withheld or delayed); provided further that the
Borrower's consent shall not be required with respect to any
assignment made at any time after the occurrence and during the
continuance of an Event of Default, (ii) except in the case of an
assignment to a Lender or any Lender Affiliate, the aggregate amount
of the Loans of the assigning Lender subject to each such assignment
(determined as of the date on which the Assignment and Assumption
relating to such assignment is delivered to the Administrative
Agent) shall not be less than U.S.$3,500,000 (if in U.S.$) or
Cdn.$5,000,000 (if in Cdn.$), unless both the Borrower and the
Administrative Agent otherwise consent in writing, and the amount
held by each Lender after each such assignment shall not be less
than the minimum assignable amount described in this section above,
unless both the Borrower and the Administrative Agent otherwise
consent in writing, (iii) each partial assignment in respect of any
assigned Loans shall be made as an assignment of a proportionate
part of all the assigning Lender's rights and obligations under this
Agreement in respect of such Loans, (iv) the parties to each
assignment shall execute and deliver to the Administrative Agent an
Assignment and Assumption, together with (except in the case of an
assignment by a Lender to an Affiliate of such Lender) a processing
and recordation fee of Cdn.$5,000, payable by the assigning Lender,
(v) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire, and (vi) the
Borrower shall not incur any increased costs merely due to any
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such assignment including any obligation to make any payment under
Section 2.11 that would exceed the amount payable to the assigning
Lender. The Administrative Agent shall provide the Borrower and each
Lender with written notice of any change in (or new) address of a
Lender disclosed in an Administrative Questionnaire. Subject to
acceptance and recording thereof pursuant to Section 9.4(c), from
and after the effective date specified in each Assignment and
Assumption, the assignee thereunder shall be a party hereto and, to
the extent of the interest assigned by such Assignment and
Assumption, shall have all of the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to
the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of
the assigning Lender's rights and obligations under this Agreement,
such Lender shall cease to be a party hereto but shall continue to
be entitled to the benefits of Sections 2.9, 2.10 and 2.11 and 9.3).
Any assignment or transfer by a Lender of rights or obligations
under this Agreement that does not comply with this Section 9.4
shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in
accordance with Section 9.4(d). The Administrative Agent, acting for
this purpose as an agent of the Borrower, shall maintain at one of
its offices in Toronto, Ontario a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the
names and addresses of the Lenders, and the Commitment of, and the
principal amount of the Loans and LC Disbursements owing to each
Lender pursuant to the terms hereof from time to time (the
"Register"). The entries in the Register shall be conclusive, absent
manifest error, and the Borrower, the Administrative Agent and the
Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes
of this Agreement. The Register shall be available for inspection by
the Borrower, the Issuing Bank and any Lender at any reasonable time
and from time to time upon reasonable prior notice.
(c) Upon its receipt of a duly completed Assignment and Assumption
executed by an assigning Lender and an assignee, the assignee's
completed Administrative Questionnaire (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee
referred to in Section 9.4(b) and any written consent to such
assignment required by Section 9.4(b), the Administrative Agent
shall accept such Assignment and Assumption and record the
information contained therein in the Register. No assignment shall
be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in Section 9.4(b).
(d) Any Lender may, without notice to the Borrower or the consent of the
Borrower or the Administrative Agent or the Issuing Bank, sell
participations to one or more Persons (a "Participant") in all or a
portion of such Lender's rights and obligations under this Agreement
and the other Financing Documents (including
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all or a portion of the Loans owing to it); provided that (i) such
Lender's obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, and (iii)
the Borrower, the Administrative Agent, the Issuing Bank and the
other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under
this Agreement. Any agreement or instrument pursuant to which a
Lender sells such a participation shall provide that such Lender
shall retain the sole right to enforce this Agreement and to approve
any amendment, modification or waiver of any provision of this
Agreement; provided that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver described in the
first proviso to Section 9.2(b) that affects such Participant.
Subject to Section 9.4(e), the Borrower agrees that each Participant
shall be entitled to the benefits of Sections 2.9, 2.10 and 2.11 to
the same extent as if it were a Lender and had acquired its interest
by assignment pursuant to this Section 9.4(d). To the extent
permitted by Law, each Participant also shall be entitled to the
benefits of Section 9.8 as though it were a Lender, provided that
such Participant agrees to be subject to Section 2.12(c) as though
it were a Lender.
(e) A Participant shall not be entitled to receive any greater payment
under Section 2.9 or 2.10 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such
Participant is made with the Borrower's prior written consent. A
Participant shall not be entitled to receive any greater amount
under Section 2.11 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such
Participant.
(f) Any Lender may at any time pledge or assign a security interest in
all or any portion of its rights under this Agreement to secure
obligations of such Lender, including any pledge or assignment to
secure obligations to a Federal Reserve Bank, and Section 9.4 shall
not apply to any such pledge or assignment of a security interest;
provided that no such pledge or assignment of a security interest
shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party
hereto.
(g) Any assignment or grant of a participation pursuant to Section 9.4
shall constitute neither a repayment by the Borrower to the
assigning or granting Lender of any Loan included therein, nor a new
advance of any such Loan to the Borrower by such Lender or by the
assignee or Participant, as the case may be. The parties acknowledge
that the Borrower's obligations hereunder with respect to any such
Loans will continue and will not constitute new obligations as a
result of such assignment or participation.
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9.5 SURVIVAL. All covenants, agreements, representations and warranties
made by the Borrower herein and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement shall be considered
to have been relied upon by the other parties hereto and shall survive the
execution and delivery of this Agreement and the making of any Loans and the
issuance of any Letters of Credit, regardless of any investigation made by any
such other party or on its behalf and notwithstanding that the Administrative
Agent, the Issuing Bank or any Lender may have had notice or knowledge of any
Default or incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount
payable under this Agreement is outstanding and unpaid or any Letter of Credit
is outstanding and so long as the Commitments have not expired or been
terminated. Sections 2.9, 2.10 or 2.11 and 9.3 and Article 8 shall survive and
remain in full force and effect, regardless of the consummation of the
Transactions, the repayment of the Loans, the expiration or termination of the
Letters of Credit and the Commitments or the termination of this Agreement or
any provision hereof.
9.6 COUNTERPARTS; INTEGRATION; EFFECTIVENESS. This Agreement may be
executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. This Agreement and the other
Financing Documents and any separate letter agreements with respect to fees
payable to the Administrative Agent, constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 4.1, this Agreement shall become effective
when it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken
together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. Delivery of an executed original or
faxed counterpart of a signature page of this Agreement by facsimile shall be as
effective as delivery of a manually executed original counterpart of this
Agreement.
9.7 SEVERABILITY. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining
provisions hereof, and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction.
9.8 RIGHT OF SET OFF. If an Event of Default shall have occurred and be
continuing, each Lender and each of its Affiliates is hereby authorized at any
time and from time to time, to the fullest extent permitted by Law, to set off
and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other obligations at any time owing by such
Lender or Affiliate to or for the credit or the account of the Borrower or any
other Credit Party against any and all of the obligations of the Borrower now or
hereafter existing under this Agreement held by such Lender, irrespective of
whether or not such Lender shall have made any
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demand under this Agreement and although such obligations may be unmatured. The
rights of each Lender under this Section are in addition to other rights and
remedies (including other rights of set off) which such Lender may have.
9.9 GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS.
(a) This Agreement shall be construed in accordance with and governed by
the Laws of the Province of Ontario.
(b) The Borrower hereby irrevocably and unconditionally submits, for
itself and its property, to the non-exclusive jurisdiction of the
Courts of the Province of Ontario, and any appellate court thereof,
in any action or proceeding arising out of or relating to this
Agreement, or any other Financing Document or for recognition or
enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of
any such action or proceeding may be heard and determined in
Ontario. Each of the parties hereto agrees that a final judgment in
any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any
other manner provided by Law. Nothing in this Agreement shall affect
any right that the Administrative Agent, the Issuing Bank or any
Lender may otherwise have to bring any action or proceeding relating
to this Agreement or any other Financing Document against the
Borrower or its properties in the courts of any other jurisdiction.
(c) The Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection
which it may now or hereafter have to the laying of venue of any
suit, action or proceeding arising out of or relating to this
Agreement in any court referred to in Section 9.9(b). Each of the
parties hereto hereby irrevocably waives, to the fullest extent
permitted by Law, any forum non conveniens defence to the
maintenance of such action or proceeding in any such court.
(d) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 9.1. Nothing
in this Agreement will affect the right of any party to this
Agreement to serve process in any other manner permitted by Law.
9.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
TO THIS AGREEMENT, ANY OTHER FINANCING DOCUMENT, OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
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OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
9.11 HEADINGS. Article and Section headings and the Table of Contents
used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.
9.12 CONFIDENTIALITY. The Administrative Agent, the Issuing Bank, the
Collateral Agent and each Lender agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to
each of their Affiliates, directors, officers, employees, agents and advisors,
including accountants, legal counsel and other advisors (it being understood
that the Persons to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority or other
Governmental Authority, (c) to the extent required by applicable Laws or
regulations or by any subpoena or similar legal process, (d) to any other party
to this Agreement, (e) in connection with the exercise of any remedies under any
Financing Document or any suit, action or proceeding relating to any Financing
Document or the enforcement of rights thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to (i)
any actual or prospective assignee of or Participant in any of its rights or
obligations under this Agreement, or (ii) any actual or prospective counterparty
(or its advisors) to any swap or derivative transaction relating to the Borrower
and its obligations, (g) with the consent of the Borrower, or (h) to the extent
such Information (i) becomes publicly available other than as a result of a
breach of this Section, or (ii) becomes available to the Administrative Agent,
the Issuing Bank, the Collateral Agent or any Lender on a non-confidential basis
from a source other than the Borrower. For the purposes of this Section,
"Information" means all information received from the Borrower relating to the
Borrower, any of its subsidiaries, or their respective business, other than any
such information that is available to the Administrative Agent, the Issuing
Bank, the Collateral Agent or any Lender on a non-confidential basis prior to
disclosure by the Borrower; provided that, in the case of information received
from the Borrower after the date hereof, such information is clearly identified
as confidential in writing at the time of delivery. Any Person required to
maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.
9.13 AMENDMENT AND RESTATEMENT. The entering into of this Agreement does
not constitute a novation and the Original Tranche A Exit Facility Agreement, as
amended, supplemented and restated by this Agreement, continues to constitute
the Tranche A Exit Facility.
[THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK; SIGNATURE PAGES FOLLOW.]
AMENDED AND RESTATED
TRANCHE A EXIT FACILITY AGREEMENT
S-1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed by their respective authorized officers as of the day and year
first above written.
BORROWER PARENT
MICROCELL SOLUTIONS INC. MICROCELL TELECOMMUNICATIONS INC.
By: _____________________________ By: _____________________________
Name: Xxxxxxx Xxxx Name: Xxxxxxx Xxxx
Title: Vice-President, Legal Affairs Title: Vice-President, Legal Affairs
and Assistant Secretary and Assistant Secretary
AGENTS
JPMORGAN CHASE BANK, TORONTO BRANCH, CREDIT SUISSE FIRST BOSTON, as
as Administrative Agent and as Syndication Agent and Joint Lead
Collateral Agent Arranger
By: _____________________________ By: _____________________________
Name: Xxxxxxxxx Xxxx
Title: Vice-President
By: _____________________________
AMENDED AND RESTATED
TRANCHE A EXIT FACILITY AGREEMENT
S-2
TRANCHE A LENDERS
ADDRESS: (Please complete)
____________________________________
(Type or print name of Lender) Street Address:________________________
________________________
City: ________________________
By:_________________________________
Name:_______________________________ Province/State:________________________
Title:______________________________
Postal/Zip Code:_______________________
By:_________________________________ Country: ________________________
Name:_______________________________
Title:______________________________ Contact: ________________________
Phone: ________________________
Fax: ________________________
E-mail: ________________________
SCHEDULE A
COMMITMENTS
LENDER COMMITMENT
JPMorgan Chase Bank, Toronto Branch Cdn.$25,000,000
Credit Suisse First Boston, Toronto Branch Cdn.$25,000,000
SCHEDULE B
DISCLOSED MATTERS
[NOTE: THE NUMBERS IN PARENTHESES DENOTE THE PROVISION OF THE CREDIT AGREEMENT
WHICH REFERS TO THIS SCHEDULE B.]
GOVERNMENTAL APPROVALS (3.3)
1. None
LITIGATION (3.5)
1. On April 10, 2002, ASP WirelessNet Inc. ("ASP"), a former service provider
of the Borrower, filed a notice of arbitration pursuant to an agreement
that ASP had with the Borrower. ASP claims in the notice of arbitration
that the Borrower has breached its agreements with ASP and that it
therefore suffered damages in the amount of $18.5 million, which ASP is
claiming from the Borrower. The Borrower considers ASP's claim frivolous
and unfounded in fact and in Law, and intends to vigorously contest it.
REAL PROPERTY AND OFFICE AND SWITCHROOM LEASES (3.8)
1. Owned Real Properties
IMMOVABLE PROPERTIES
Quebec Property
Le lot UN MILLION DEUX CENT CINQUANTE SEPT MILLE CINQ CENT TREIZE (1
257 513) du Cadastre du Quebec, circonscription fonciere de Quebec.
Nicolet Property
Un immeuble situe dans le secteur St-Gregoire de la ville de
Becancour, connu et designe comme etant le lot numero SEIZE de la
subdivision officielle du lot originaire numero CINQUANTE-NEUF
(59-16) du Cadastre de la Paroisse de Saint-Gregoire,
circonscription fonciere de Nicolet (Nicolet 2).
Hull Property
Un immeuble situe dans la ville de Gatineau, connu et designe comme
etant le lot numero UN MILLION TROIS CENT SOIXANTE-TREIZE MILLE
TROIS CENT SOIXANTE-DOUZE (1 373 372) du Cadastre du Quebec,
circonscription fonciere xx Xxxx.
Trois-Rivieres Property
Un immeuble situe dans la ville de Trois-Rivieres (autrefois
municipalite de Pointe--du--Lac) connu et designe comme etant le lot
DEUX MILLIONS TROIS CENT TRENTE ET UN MILLE SEPT CENT TRENTE-NEUF (2
331 739) du Cadastre du Quebec, circonscription fonciere de
Trois-Rivieres.
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L'Assomption Property
Un emplacement situe dans la ville de Mascouche, connu et designe
comme etant compose des lots suivants :
(a) Le lot numero TRENTE-DEUX de la subdivision officielle du lot
originaire numero TROIS CENT QUARANTE-HUIT (348-32) du
Cadastre de la Paroisse de Saint-Henri-de-Mascouche,
circonscription fonciere de l'Assomption.
(b) Le lot numero XXX-NEUF de la subdivision officielle du lot
originaire numero TROIS CENT QUARANTE-NEUF (349-19) du
Cadastre de la Paroisse de Saint-Henri-de-Mascouche,
circonscription fonciere de l'Assomption.
Champlain Property
Un immeuble situe dans la ville de Trois-Rivieres (autrefois
municipalite de Saint--Louis--de--France), connu et designe comme
etant une partie du lot SOIXANTE-CINQ (Ptie 65) du Cadastre de la
Paroisse de Saint--Xxxxxxx, circonscription fonciere de Champlain,
de figure irreguliere, dont les tenants et aboutissants sont:
- vers le nord-est, par la rue Xxxxxxxx (montre a l'originaire)
et par une partie du xxx 00, xxx Xxxxxxxx; vers le sud-est,
par une partie du lot 65; vers le sud-ouest, par le lot 67-1
et par une partie du lot 67; vers le nord-ouest, par le rang
St-Alexis (montre a l'originaire);
Rattachement :
Le coin nord de ce lot correspond au coin nord du lot 65;
Dimensions :
DIRECTION LONGUEUR
LIGNE GEODESIQUE METRES LIMITE
----------- ------------------ -------- ----------
10261-23847 136 degrees 50'20" 286,61 nord-est
23847-10257 146 degrees 27'10" 30,91 nord-est
10257-10258 136 degrees 57'15" 49,76 nord-est
10258-10223 220 degrees 50'30" 147,36 sud-est
10223-10124 316 degrees 33'25" 375,25 sud-ouest
10124-10261 44 degrees 13'53" 153,82 nord-ouest
Superficie de : 56 305,1 metres carres.
Le tout tel que montre par un lisere rouge sur le plan prepare par
Xxxxxx Xxx, arpenteur-geometre, le 13 octobre 2000, sous le numero
50408 de ses dossiers et sous le numero 3488 de ses minutes.
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Terrebonne Property
Un immeuble situe dans la ville de Blainville, connu et designe
comme etant le lot UN MILLION NEUF CENT SEPT MILLE SEPT CENT
SOIXANTE-SEPT (1 907 767) du Cadastre du Quebec, circonscription
fonciere xx Xxxxxxxxxx.
With all the buildings thereon erected, and as the said seven (7) immovable
properties hereinabove described now subsist with all of their respective
rights, members and appurtenances, without exception or reserve of any kind, and
together with and subject to all servitudes, continued or discontinued, apparent
or non apparent, attached thereto.
SERVITUDES
All of the Grantor's rights, title and interest in, to and pursuant to the
following servitudes affecting the immovable properties hereinafter
described:
Sainte-Agathe-des-Monts Servitude
<< Une servitude de droit de passage aux termes d'un acte publie
sous le numero 1 244 541 pour le benefice de la tour, des
constructions et ouvrages appartenant a Microcell Connexions Inc.,
identifies comme etant le Fonds Dominant, sur la lisiere ci-apres
designee, etant le Fonds Servant, a savoir :
FONDS SERVANT
(a) Le lot QUARANTE-DEUX de la subdivision xxxxxxxxxx xx xxx
xxxxxxxxxx XXXXXX (0-00), Xxxx 3, Canton Beresford, du
Cadastre de la Paroisse de Sainte-Agathe-des-Monts,
circonscription fonciere xx Xxxxxxxxxx, (ledit lot connu comme
etant la rue Panorama);
(b) Une partie du lot CENT QUARANTE-QUATRE de la subdivision
officielle du lot originaire QUATRE (4-144) Rang 3, Canton
Beresford, du Cadastre de la Paroisse de
Sainte-Agathe-des-Monts, circonscription fonciere xx
Xxxxxxxxxx, decrite comme suit :
De figure trapezoidale, indiquee par les nombres 1, 2, 3 et 4
sur le plan prepare par Xxxxxxxx Xxxxx, arpenteur-geometre, le
25 octobre 2000, sous le numero 2655 de ses minutes,
commencant au point << 1 >> etant situe au coin sud-est du lot
4-144 du Rang III du Canton xx Xxxxxxxxx, ladite parcelle est
bornee et decrite comme suit :
- vers le sud-ouest, la ligne 1-2, par le lot 4-145 et mesurant
le long de cette limite quarante-quatre metres et trois
centiemes (44,03 m) suivant une ligne ayant un gisement de
298 degrees 21'23 ".
- vers le nord-ouest, la ligne 2-3, par une partie du lot 5A et
mesurant le long de cette limite quatre metres et
soixante-neuf centiemes (4,69 m) suivant une ligne ayant un
gisement de 15 degrees 25'26 ".
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- vers le nord-est, la ligne 3-4, par le residu du lot 4-144 et
mesurant le long de cette limite quarante-trois metres et
quatre-vingt-douze centiemes (43,92 m) suivant une ligne ayant
un gisement de 118 degrees 21'23".
- vers le sud-est, la ligne 0-0, xxx xx xxx 0-00 (xxx Xxxxxxxx)
et mesurant le long d'un arc quatre metres et soixante-treize
centiemes (a :4,73 m) ayant un rayon de vingt metres (r :20,00
m).
Superficie : 200,5 metres carres.
FONDS DOMINANT
La tour, les constructions et ouvrages sont eriges sur l'emplacement
suivant :
(a) Une partie du lot CINQ A (Ptie 5A), Rang 3, Canton Beresford,
du Cadastre de la Paroisse de Sainte-Agathe-des-Monts,
circonscription fonciere xx Xxxxxxxxxx, decrite comme suit :
De figure irreguliere, indiquee par les nombres 2, 5, 6, 7, 8
et 3 sur ledit plan, commencant au point << 2 >> etant situe
au coin sud-ouest du lot 4-144 du Rang III du Canton xx
Xxxxxxxxx, ladite parcelle est bornee et decrite comme suit :
- vers le sud-ouest, la ligne 2-5 sur ledit plan, par une autre
partie du lot 5A et mesurant le long de cette limite huit
metres et cinq centiemes (8,05 m) suivant une ligne ayant un
gisement de 298 degrees 21'23 ".
- vers l'ouest, la ligne 5-6 sur ledit plan, par une autre
partie du lot 5A et mesurant le long de cette limite cent
trente-cinq metres et cinq centiemes (135,05 m) suivant une
ligne ayant un gisement de 0 degrees 04'07 ".
- vers le nord, la ligne 6-7 sur ledit plan, par une autre
partie du lot 5A decrite plus bas, et mesurant le long de
cette limite quatre metres et soixante centiemes (4,60 m)
suivant une ligne ayant un gisement de 96 degrees 19'15 ".
- vers l'est, la ligne 7-8 sur ledit plan, par une autre partie
du lot 5A et mesurant le long de cette limite cent trente et
un metres et quatre-vingt-deux centiemes (131,82 m) suivant
une ligne ayant un gisement de 180 degrees 04'07".
- vers le nord-est, la ligne 8-3 sur ledit plan, par une autre
partie du lot 5A et mesurant le long de cette limite quatre
metres et vingt-sept centiemes (4,27 m) suivant une ligne
ayant un gisement de 118 degrees 21'23 ".
- vers le sud-est, la ligne 3-2 sur ledit plan, par le residu du
lot 4-144 et mesurant le long de cette limite quatre metres et
soixante-neuf centiemes (4,69 m) suivant une ligne ayant un
gisement de 195 degrees 25'26 ".
Superficie : 638,0 metres carres.
(b) Une partie du lot CINQ A (Ptie 5A), Rang 3, Canton Beresford,
du Cadastre de la Paroisse de Sainte-Agathe-des-Monts,
circonscription fonciere xx Xxxxxxxxxx, decrite comme suit :
-5-
De figure carree, indiquee par les nombres 6, 9, 10 et 11 sur
ledit plan, commencant au point << 6 >>, rattache
precedemment, ladite parcelle est bornee comme suit :
- vers l'est, la ligne 6-9 sur ledit plan, par une autre partie
du lot 5A et mesurant le long de cette limite six metres et
xxx-xxxx centiemes (6,18 m) suivant un ligne ayant un gisement
de 6 degrees 19'15 ".
- vers le nord, la ligne 9-10 sur ledit plan, par une autre
partie du lot 5A et mesurant le long de cette limite six
metres et xxx-xxxx centiemes (6,18 m) suivant une ligne ayant
un gisement de 96 degrees 19'15 ".
- vers l'est, la ligne 10-11 sur ledit plan, par une partie du
lot 5A et mesurant le long de cette limite six metres et
xxx-xxxx centiemes (6,18 m) suivant une ligne ayant un
gisement de 186 degrees 19'15 ".
- vers le sud, la ligne 11-6 sur ledit plan, par une autre
partie du lot 5A et mesurant le long de cette limite six
metres et xxx-xxxx centiemes (6,18 m) suivant une ligne ayant
un gisement de 276 degrees 19'15 ".
Superficie : 8,2 metres carres. >>
Levis Servitude
<< Une servitude de droit de passage aux termes d'un acte publie
sous le numero 452 431 pour le benefice de la tour, des
constructions et ouvrages appartenant a Microcell Connexions Inc.,
identifies comme etant le Fonds Dominant, sur la lisiere ci-apres
designee, etant le Fonds Servant, a savoir :
FONDS SERVANT
(a) Une partie du lot QUARANTE-TROIS (Ptie 43) du Cadastre de la
Paroisse de Saint-Xxxxxxx-xx-Xxxxxx, circonscription fonciere
de Levis, designee comme suit :
De figure irreguliere, indiquee par les nombres 1 a 0 xx xxxx
xxxxxxx xxx Xxxxxxxx Xxxxx, arpenteur-geometre, le 1er mai
2001, sous le numero 3138 de ses minutes, commencant au point
<< 1 >> etant l'intersection entre la ligne separative des
lots 42 et 43 avec la limite SUD-EST de l'emprise du Chemin
Sainte-Xxxx Est (une partie du lot 43), ladite parcelle est
bornee et decrite comme suit :
- vers le nord-est, par une partie du lot 42, dans une premiere
ligne 1-2, et mesurant le long de cette limite
quatre-vingt-quatre metres et quatre-vingt-deux centiemes
(84,82 m) suivant une ligne ayant un gisement de 134 degrees
57'29"; dans une deuxieme ligne 2-3, et mesurant le long de
cette limite deux cent quarante-huit metres et vingt et un
centiemes (248,21 m) suivant une ligne ayant un gisement de
133 degrees 48'58".
-6-
- vers le sud-est, la ligne 3-4, par une autre partie du lot 43
et mesurant le long de cette limite xxx metres et quatre
centiemes (10,04 m) suivant une ligne ayant un gisement de
228 degrees 48'58 ".
- vers le sud-ouest, par une autre partie du lot 43, dans une
premiere ligne 4-5, et mesurant le long de cette limite deux
cent quarante-sept metres et quarante-quatre centiemes (247,44
m) suivant une ligne ayant un gisement de 313 degrees 48'58";
dans une deuxieme ligne 5-6, et mesurant le long de cette
limite soixante-xxx-xxxx metres et quatre-vingt-sept centiemes
(78,87 m) suivant une ligne ayant un gisement de
314 degrees 57'29".
- vers le nord-ouest, la ligne 6-1, par une autre partie du xxx
00, xxxxx xx Xxxxxx Xxxxxx-Xxxx Xxx et mesurant le long de
cette limite onze metres et soixante-neuf centiemes (11,69 m)
suivant une ligne ayant un gisement de 13 degrees 46'34".
Superficie : 3 296,7 metres carres
(b) Une partie du lot QUARANTE-TROIS (Ptie 43) du Cadastre de la
Paroisse de Sainte-Xxxxxxx-xx-Xxxxxx, circonscription fonciere
de Levis, designee comme suit :
De figure parallelogrammique, indiquee par les nombres 3, 4, 7
et 8 sur ledit plan, commencant au point << 3 >> precedemment
rattache, ladite parcelle est bornee et decrite comme suit :
- vers le nord-est, la ligne 3-7, par une partie du lot 42
decrite plus bas, et mesurant le long de cette limite xxx
metres et quatre centiemes (10,04 m) suivant une ligne ayant
un gisement de 133 degrees 48'58 ".
- vers le sud-est, la ligne 7-8, par une autre partie du lot 43
et mesurant le long de cette limite xxx metres et quatre
centiemes (10,04 m) suivant une ligne ayant un gisement de
228 degrees 48'58 ".
- vers le sud-ouest, la ligne 8-4, par une autre partie du lot
43 et mesurant le long de cette limite xxx metres et quatre
centiemes (10,04 m) suivant une ligne ayant un gisement de
313 degrees 48'58 ".
- vers le nord-ouest, la ligne 4-3, par une autre partie du lot
43, decrite precedemment, et mesurant le long de cette limite
xxx metres et quatre centiemes (10,04 m) suivant une ligne
ayant un gisement de 48 degrees 48'58 ".
Superficie : 100,4 metres carres.
-7-
FONDS DOMINANT
La tour, les constructions et ouvrages sont eriges sur l'emplacement
suivant :
(a) Une partie du lot QUARANTE-DEUX (Ptie 42) du Cadastre de la
Paroisse de Saint-Xxxxxxx-xx-Xxxxxx, circonscription fonciere
de Levis, designee comme suit :
De figure carree, indiquee par les nombres 11, 12, 14 et 15
sur ledit plan, commencant au point << 11 >> ci-apres
rattache, ladite parcelle est bornee et decrite comme suit :
- vers le nord-ouest, la ligne 11-14, par une autre partie du
lot 42, et mesurant le long de cette limite six metres et
quatre-vingt-seize centiemes (6,96 m) suivant une ligne ayant
un gisement de 49 degrees 43'36".
- vers le nord-est, la ligne 14-15, par une autre partie du lot
42, et mesurant le long de cette limite six metres et
quatre-vingt-seize centiemes (6,96 m) suivant une ligne ayant
un gisement de 139 degrees 43'36 ".
- vers le sud-est, la ligne 15-12, par une autre partie du lot
42, et mesurant le long de cette limite six metres et
quatre-vingt-seize centiemes (6,96 m) suivant une ligne ayant
un gisement de 229 degrees 43'36 ".
- vers le sud-ouest, la ligne 12-11, par une autre partie du lot
42, et mesurant le long de cette limite six metres et
quatre-vingt-seize centiemes (6,96 m) suivant une ligne ayant
un gisement de 319 degrees 43'36 ".
Superficie : 48,4 metres carres.
(b) Une partie du lot QUARANTE-DEUX (Ptie 42) du Cadastre de la
Paroisse de Saint-Xxxxxxx-xx-Xxxxxx, circonscription fonciere
de Levis, designee comme suit :
De figure irreguliere, indiquee par les nombres 3, 9, 10, 11,
12 et 13 sur ledit plan, commencant au point << 3 >>, ci-apres
rattache, ladite parcelle est bornee et decrite comme suit :
- vers le nord-ouest, la ligne 3-9, par une autre partie du lot
42 et mesurant le long de cette limite xxx metres et quatre
centiemes (10,04 m) suivant une ligne ayant un gisement de
48 degrees 48'58 ".
- vers le nord-est, la ligne 9-10, par une autre partie du lot
42 et mesurant le long de cette limite cent seize metres et
quatre-vingt-six centiemes (116,86 m) suivant une ligne ayant
un gisement de 133 degrees 48'58 ".
- vers le nord-ouest, la ligne 10-11, par une autre partie du
lot 42 et mesurant le long de cette limite cinquante metres et
soixante-douze centiemes (50,72 m) suivant une ligne ayant un
gisement de 49 degrees 43'36 ".
- vers le nord-est, la ligne 11-12, par une autre partie du lot
42, decrite plus haut, et mesurant le long de cette limite six
metres et quatre-vingt-seize centiemes (6,96 m) suivant une
ligne ayant un gisement de 139 degrees 43'36".
-8-
- vers le sud-est, la ligne 12-12, par une autre partie du lot
42, et mesurant le long de cette limite soixante metres et six
centiemes (60,06 m) suivant une ligne ayant un gisement de
229 degrees 43'36 ".
- vers le sud-ouest, la ligne 13-3, par une partie du lot 43, et
mesurant le long de cette limite cent-vingt-trois metres et
soixante-xxx centiemes (123,70 m) suivant une ligne ayant un
gisement de 313 degrees 48'58".
Superficie : 1 588,3 metres carres. >>
Salaberry Servitude
<< Une servitude de droit de passage aux termes d'un acte publie
sous le numero 1 182 040 pour le benefice de la tour, des
constructions et ouvrages appartenant a Microcell Connexions Inc.,
identifies comme etant le Fonds Dominant, sur la lisiere ci-apres
designee, etant le Fonds Servant, a savoir :
FONDS SERVANT
(a) Une lisiere de terrain situee dans la ville de Mont-Tremblant
(autrefois ville de Saint--Jovite), connue et designee comme
etant une partie du lot DEUX CENT QUARANTE-CINQ (Ptie 245), du
Cadastre du Canton de De Salaberry, circonscription fonciere
xx Xxxxxxxxxx, designee comme suit :
De figure irreguliere, indiquee par les nombres 1, 2, 3, 4, 5,
6, 7, 8, 9, 10, 11, 12, 13, 00 xxx xx xxxx xxxxxxx xxx
Xxxxxxxx Xxxxx, arpenteur-geometre, le 17 aout 1998, sous le
numero 1035 de ses minutes (dossier numero 40429-1),
commencant au point << 1 >> etant situe a un metre (1,00 m),
mesuree suivant une ligne ayant un gisement de
267 degrees 36'11" a partir du coin OUEST du lot 243 (point <<
X >>), ladite parcelle est bornee et decrite comme suit :
- vers l'est, la ligne 1-2, une autre partie du lot 245, et
mesurant le long de cette limite quarante-neuf metres et
quatre-vingt-xxx-xxxx centiemes (49,98 m) suivant une ligne
ayant un gisement de 179 degrees 43'08".
- vers le nord-est, la ligne 2-3, par une autre partie du lot
245 et mesurant le long de cette limite quinze metres et
soixante-douze centiemes (15,72 m) suivant une ligne ayant un
gisement de 166 degrees 12'05 ".
- vers l'est, la ligne 3-4, par une autre partie du lot 245 et
mesurant le long de cette limite quarante metres (40,00 m)
suivant une ligne ayant un gisement de 190 degrees 23'43 ".
- vers le nord-est, la ligne 4-5, par une autre partie du lot
245 et mesurant dans cette limite quatorze metres et
trente-deux centiemes (a :14,32 m) le long d'un arc de neuf
metres et quinze centiemes (r :9,15 m) de rayon.
- vers le nord, la ligne 5-6, par une autre partie du lot 245 et
mesurant le long de cette limite cent un metres et
soixante-huit centiemes (101,68 m) suivant une ligne ayant un
gisement de 102 degrees 46'30 ".
-9-
- vers le nord-ouest, la ligne 6-7, par une autre partie du lot
245 et mesurant le long de cette limite vingt-deux metres et
vingt-cinq centiemes (22,25 m) suivant une ligne ayant un
gisement de 70 degrees 59'22 ".
- vers le nord-est, la ligne 7-8, par la partie du lot 233 au
meme cadastre et circonscription fonciere, decrite plus bas,
et mesurant le long de cette limite quatre metres et
trente-sept centiemes (4,37 m) suivant une ligne ayant un
gisement de 194 degrees 16'54'.
- vers le sud-est, la ligne 8-9, par une autre partie du lot 245
et mesurant le long de cette limite vingt metres et
quatre-vingt-neuf centiemes (20,89 m) suivant une ligne ayant
un gisement de 250 degrees 59'22'.
- vers le sud, la ligne 9-10, par une autre partie du lot 245 et
mesurant le long de cette limite cent deux metres et
soixante-sept centiemes (102,67 m) suivant une ligne ayant un
gisement de 282 degrees 46'30 ".
- vers le sud-ouest, la ligne 10-11, par une autre partie du lot
245 et mesurant dans cette limite xxx-neuf metres et
quatre-vingt-quinze centiemes (a :19,95 m) le long d'un arc de
douze metres et quatre-vingts centiemes (r :12,80 m) de rayon.
- vers l'ouest, la ligne 11-12, par une autre partie du lot 245
et mesurant le long de cette limite trente-neuf metres et
vingt-et-un centiemes (39,21 m) suivant une ligne ayant un
gisement de 10 degrees 23'43 ".
- vers le sud-ouest, la ligne 12-13, par une autre partie du lot
245 et mesurant le long de cette limite quinze metres et
quarante et un centiemes (15,41 m) suivant une ligne ayant un
gisement de 346 degrees 12'05 ".
- vers l'ouest, la ligne 13-14, par une autre partie du lot 245
et mesurant le long de cette limite cinquante metres et
vingt-cinq centiemes (50,25 m) suivant une ligne ayant un
gisement de 359 degrees 43'08 ".
- vers le nord, la ligne 14-1, par la rue Xxxxxx etant un lot
montre a l'originaire et mesurant le long de cette limite
trois metres et soixante-six centiemes (3,66 m) suivant une
ligne ayant un gisement de 87 degrees 36'11 ".
Superficie : 899,3 metres carres.
FONDS DOMINANT
La tour, les constructions et ouvrages sont eriges sur l'emplacement
suivant :
(a) UN TERRAIN SITUE DANS LA VILLE DE MONT-TREMBLANT (AUTREFOIS
VILLE DE SAINT--JOVITE), CONNU ET DESIGNE COMME ETANT UNE
PARTIE DU LOT DEUX CENT TRENTE-TROIS (PTIE 233), DU CADASTRE
DU CANTON DE DE SALABERRY, CIRCONSCRIPTION FONCIERE XX
XXXXXXXXXX, DESIGNEE COMME SUIT :
De figure irreguliere, indiquee par les nombres 29, 30, 31,
32, 33 sur ledit plan, commencant au point << 29 >> etant
situe a deuX metres et quatre-vingt-cinq centiemes (2,85 m),
mesuree suivant une ligne ayant un gisement de
102 degrees 29'06" a partir du point << 21 >>, decrite dans la
description technique rattachee audit plan, ladite parcelle
est bornee et decrite comme suit :
-10-
- vers l'est, la ligne 29-30, par une autre partie du lot 233 et
mesurant le long de cette limite treize metres et
quarante-quatre centiemes (13,44 m) suivant une ligne ayant un
gisement de 192 degrees 29'06 ".
- vers le sud, la ligne 30-31, par une autre partie du lot 233,
etant la route 117, et mesurant le long de cette limite sept
metres (7,00 m) suivant une ligne ayant un gisement de
279 degrees 29'44 ".
- vers le sud-ouest, la ligne 31-32, par une autre partie du lot
233, etant la route 117, et mesurant le long de cette limite
deux metres et quarante-cinq centiemes (2,45 m) suivant une
ligne ayant un gisement de 298 degrees 13'55".
- vers l'ouest, la ligne 32-33, par une autre partie du lot 233
et mesurant le long de cette limite treize metres et quatorze
centiemes (13,14 m) suivant une ligne ayant un gisement de
12 degrees 29'06 ".
- vers le nord, la ligne 33-29, par une autre partie du lot 233
et mesurant le long de cette limite neuf metres et trente-cinq
centiemes (9,35 m) suivant une ligne ayant un gisement de
102 degrees 29'06 ".
Superficie : 127,00 metres carres. >>
Montreal Servitude
<< Une servitude de droit de passage aux termes d'un acte publie
sous le numero 10 133 119 pour le benefice de Microcell Connexions
Inc. sur la lisiere, ci-apres designee, etant le Fonds Servant, a
savoir :
FONDS SERVANT
Une partie du lot numero UN MILLION CINQ CENT CINQUANTE-HUIT MILLE
QUATRE-VINGT-QUINZE (Ptie 1 558 095) du Cadastre du Quebec,
circonscription fonciere de Montreal.
De figure irreguliere, indiquee par les nombres 1 a 6 sur la copie
de plan annexee a la description technique preparee par Xxxxxxxx
Xxxxx, arpenteur geometre, en date du 3 juin 3003 sous le numero
4572 de ses minutes, commencant au point << 1 >> etant situe a un
metre et cinquante centiemes (1,50 m), mesuree en direction nord-est
le long de la limite separative des lots 1 558 095 et 1 558 301
(avenue Xxxxx-Xxxxxx) a partir du point << X >>, etant
l'intersection des lots 1 558 072, 1 558 095 et 1 558 301 (avenue
Xxxxx-Xxxxxx), ladite parcelle est bornee et decrite comme suit:
- vers le nord-ouest, la ligne 1-2, par le xxx 0 000 000 (xxxxxx
Xxxxx-Xxxxxx) et mesurant le long de cette limite quatre
metres et cinquante-sept centiemes (4,57 m) suivant une ligne
ayant un gisement de 61 degrees 05'01".
- vers le nord-est, la ligne 2-3, par une autre partie du lot 1
558 095 et mesurant le long de cette limite cent vingt-huit
metres et soixante-seize centiemes (128,76 m) suivant une
ligne ayant un gisement de 151 degrees 05'01".
-11-
- vers le nord-est, la ligne 3-4, par une autre partie du lot 1
558 095 et mesurant le long de cette limite huit metres et
cinquante-neuf centiemes (8,59 m) suivant une ligne ayant un
gisement de 101 degrees 44'24".
- vers le sud-est, l'arc 4-5, par une partie du lot 1 558 166,
et mesurant le long de cet arc quatre metres et
quatre-vingt-un centiemes (a: 4,81 m) suivant un arc ayant un
rayon de cent xxx-xxxx metres et quatre-vingt-seize centiemes
(r: 118,96 m).
- vers le sud-ouest, la ligne 5-6, par une autre partie du lot 1
558 095 et mesurant le long de cette limite neuf metres et
xxx-xxxx centiemes (9,18 m) suivant une ligne ayant un
gisement de 281 degrees 44'24".
- vers le sud-ouest, la ligne 6-1, par une autre partie du lot 1
558 095 et mesurant le long de cette limite cent trente metres
et quatre-vingt-six centiemes (130,86 m) suivant une ligne
ayant un gisement de 331 degrees 05'01".
Ayant une superficie de 633,8 metres carres.
Le tout tel qu'il xxxxxx de la description technique preparee par
Xxxxxxxx Xxxxx, arpenteur-geometre, en date du 3 juin 2002 sous le
numero 4572 de ses minutes et classee sous le numero 41916-1 des
dossiers de son etude. >>
Nicolet Servitude
<< Une servitude de droit de passage aux termes d'un acte publie
sous le numero 10 131 129 pour le benefice de Microcell Connexions
Inc., sur la lisiere ci-apres designee, etant le Fonds Servant :
FONDS SERVANT
Une lisiere de terrain etant une partie du lot CENT SOIXANTE-SIX
(Ptie 166) (ancien chemin desaffecte) du Cadastre de la Paroisse de
Sainte--Eulalie, circonscription fonciere de Nicolet (Nicolet 2).
De figure irreguliere, indiquee par les nombres 1, 2, 3, 4, 5, 6, 7
et 8 sur la copie de plan prepare par Xxxxxxxx Xxxxx,
arpenteur-geometre, date du 6 juillet 2000 et portant le numero de
minute 2438, commencant au point << 1 >> etant situe sur le coin
nord-ouest du lot originaire 166 du Cadastre de la paroisse de
Sainte-Eulalie, ladite parcelle est bornee et decrite comme suit :
- vers le nord-ouest, la ligne 1-2, par le fronteau des terres
du cinquieme rang de l'augmentation du canton de Bulstrode, et
mesurant le long de cette limite huit metres et
soixante-xxx-neuf centiemes (8,79 m) suivant une ligne ayant
un gisement de 72 degrees 18'05 ".
- vers l'est, par une autre partie du lot 166 et mesurant, dans
une premiere ligne 2-3, cent soixante-sept metres et
soixante-douze centiemes (167,72 m) suivant une ligne ayant un
gisement de 178 degrees 24'36", dans une seconde ligne 3-4,
huit cent cinquante-neuf metres et vingt-cinq centiemes
(859,25 m) suivant une ligne ayant
-12-
un gisement de 177 degrees 51'10" et dans une troisieme ligne
4-5, cent trente-cinq metres et quatre-vingt-xxx centiemes
(135,90 m) suivant une ligne ayant un gisement de 178 degrees
19'34".
- vers le sud-est, la ligne 5-6, par une autre partie du lot 166
et mesurant le long de cette limite huit metres et
soixante-xxx-neuf centiemes (8,79 m) suivant une ligne ayant
un gisement de 252 degrees 20'29 ".
- vers l'ouest par les lots 64, 65 et 00 xx Xxxxxx x'Xxxxx, et
mesurant, dans une premiere ligne 6-7, cent trente-huit metres
et vingt-neuf centiemes (138,29 m) suivant une ligne ayant un
gisement de 358 degrees 19'34"; dans une seconde ligne 7-8,
huit cent cinquante-neuf metres et vingt-six centiemes (859,26
m) suivant une ligne ayant un gisement de 357 degrees 51'10"
et dans une troisieme ligne 8-1, cent soixante-cinq metres et
trente-deux centiemes (165,32 m) ayant un gisement de
358 degrees 24'36". >>
2. Office and Switchroom Leases
(a) Office space situated on the 4th, 9th, 10th and 11th Floors at the
building located at 0000 Xxxx Xxxxxxxx Xxxxxxxxx Xxxx, Xxxxxxxx, Xxxxxx,
containing an area of approximately 123,411 square feet pursuant to a
Sublease Agreement between IBM Canada Limited as Sublessor, Societe en
Commandite Douze-Cinquante/Twelve-Fifty Company Limited, as Lessor
Borrower as Subtenant dated as of the 3rd day of February, 1995 as amended
by an Amendment to Sublease dated March 28, 1996 and by a Second Amendment
to Sublease dated November 22, 1996. The 11th and 9th floor collectively
measuring 64,543 square feet have been sub-leased to Cap Gemini Ernst &
Young starting January 1, 2003 and March 1, 2003 respectively. (A portion
of the 4th floor representing approximately 7,600 square feet will also be
sub-leased by Cap Gemini at a later date).
(b) Office space situated on the 20th and 21st floors of the building located
at 0000 Xxxx-Xxxxxxxx Xxxxxxxxx Xxxx, Xxxxxxxx, Xxxxxx, containing an area
of 47,403 square feet pursuant to a Sublease Agreement between Bowater
Pulp & Paper (Canada) Inc. as Sublessor, and Borrower as Subtenant dated
as of the 17th day of December 1998. The 20th floor has been sub-leased to
Public Sector Pensions Investment Board starting December 1, 2002. The
21st floor has been sub-leased to Xxxxxx Blaikie Management Ltd., starting
February 1, 2004.
(c) Office space situated on Level A and part of Level B & C at the building
located at 000 xx xx Xxxxxxxxxxx Xxxx, Xxxxxxxx, Xxxxxx, containing an
area of approximately 346,244 square feet pursuant to a Lease entered into
between WPBI Property Management Inc., as Lessor and Borrower, as Tenant
dated for reference as of August 1, 1998, as amended by Amendments to
Lease dated for reference as of October 1, 2000, June 15, 2001, July 1,
2002, May 1, 2003 and January 1, 2004. A portion of level C representing
12,796 square feet has been cancelled, without penalty, on July 1, 2002.
(d) Office space situated on the 17th Floor of the building located at 00 Xxx
Xxxxxx, Xxxxxxx, Xxxxxxx containing an area of approximately 21,325 square
feet pursuant to a Lease between Omers Realty Co. and Borrower made as of
February 1, 1996 as amended by Lease Amending Agreements made as of May 1,
1997, May 26, 1997, June 1, 1997, September 1, 1999, May 1, 2000, October
25, 2002 and September 9, 2003.
-13-
(e) Office space situated on the 5th and 8th Floors of the building located at
000 Xxxx Xxxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxx Xxxxxxxx, containing an area
of approximately 14,000 square feet, pursuant to a Lease entered into
between Investors Group Trust Co. Ltd. and Borrower as of March 22, 1996,
as amended on March 4, 1997 and June 16, 1997. Since June 14, 2002 the
office space has been reduced to 12,437 square feet and renewed until June
14, 2005, pursuant to a Lease Amendment and Extension Agreement dated
March 25, 2002, as amended on May 15, 2002.
(f) Office space situated on the 20th floor of the building located at 000 -
0xx Xxxxxx X.X., Xxxxxxx, Xxxxxxx, containing an area of 10,253 square
feet, pursuant to a Lease entered into between O&Y Properties Inc. and
Grosvenor Canada Limited and Borrower as of February 7, 2001, as amended
on December 5, 2001. This office space was sub-leased to Integrated Data
Corporation between July 1, 2003 and November 19, 2003.
(g) Switch Room and computer room space situated on the 5th Floor of the
building located at 0000 Xxxx Xxxxxxxx Xxxxxxxxx Xxxx, Xxxxxxxx, Xxxxxx
containing an area of approximately 10,739 square feet, pursuant to a
Sublease dated as of February 3, 1995 between IBM Canada Limited as
Sublessor, Societe en Commandite Douze-Cinquante/Twelve-Fifty Company
Limited as Lessor and Borrower as Subtenant which Sublease Agreement was
assigned to Borrower as of June 11, 1998 and amended by an Amendment to
Sublease dated April 26, 1996 and by a Second Amendment to sublease dated
October 9, 2002;
(h) Switch Room space situated on part of the 2nd Floor of the building
located at 00 Xxx Xxxxxx, Xxxxxxx, Xxxxxxx, containing an area of
approximately 13,108 square feet, pursuant to a Lease entered into between
Omers Realty Co. and Microcell Telecommunications Inc. dated February 1,
1996 which Lease was assigned to Borrower as of June 11, 1998 and amended
by Lease Amending Agreements to the Lease effective July 1, 1997, December
1, 1998, September 1, 1999 and August 15, 2002;
(i) Switch Room space situated on the 3rd Floor of the building located at 000
Xxxx Xxxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxx Xxxxxxxx, containing an area of
approximately 4,788 square feet, pursuant to a Lease entered into between
Investors Group Trust Co. Ltd. and Microcell Telecommunications Inc. dated
March 22, 1996 which Lease was assigned to Borrower as of March 31, 1996;
(j) Switch Room space situated on part of the 5th Floor of the building
located at 000 Xxxxx Xxxxxx Xxxxx Xxxx, Xxxxxxx, Xxxxxxx, containing an
area of approximately 8,283 square feet, pursuant to an Offer to Lease
entered into between 623244 Alberta Ltd. and Borrower dated November 1,
1997;
(k) Switch Room space situated on Level A of the building located at 000 xx xx
Xxxxxxxxxxx Xxxx, Xxxxxxxx, Xxxxxx, containing an area of approximately
15,594 square feet, pursuant to a offer to Lease between WPBI Property
Management Inc., as Lessor and Borrower dated March 22, 1999 as amended on
August 20, 1999 and August 1, 2001;
(l) Switch Room space situated on the 5th floor of the building located at 0
Xxxxxx - Xxxxxx Xxxx Xxx, Xxxxxxxxxxx, Xxxxxxx, containing an area of
approximately 10,627 square feet, pursuant to a Lease Agreement dated
November 1, 2000 between Clarica Life Insurance Company and Canadian
Partners Fund Inc. (as Lessor) and Borrower; and
(m) Switch Room space situated on the 1st floor of the building located at 000
Xxxxx Xxxxxx, XxxXxxxxxxxxxx, Xxxxxxx Xxxxxxxx, containing an area of
approximately 10,795 square feet,
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pursuant to a Lease Agreement dated as of November 22, 2000 between
Canacemal Investment Inc. and Borrower.
SUBSIDIARIES (3.14)
1. Inukshuk Internet Inc. (wholly-owned subsidiary of Borrower and
Unrestricted Subsidiary)
2. Telcom Investments Inc. (wholly-owned subsidiary of Borrower and
Unrestricted Subsidiary)
3. 2861399 Canada Inc. (wound-up into Parent as of December 31, 2003)
MATERIAL CONTRACTS (3.16)
1. Tranche B - Term Loan A Credit Agreement.
2. Tranche B - Term Loan B Credit Agreement.
3. Purchase and Licence Agreement with Nortel Networks
ENVIRONMENTAL MATTERS (3.17)
1. None
EMPLOYEE MATTERS (3.18)
1. Employment Agreement with Xxxxx Xxxxxxx, President and Chief Operating
Officer of the Borrower, providing for an indemnity of 24 months in the
event of dismissal without reasonable cause.
2. Employment Agreement with Xxxxx Xxxxxxxx, President and Chief Executive
Officer of Parent, providing for an indemnity of 24 months in the event of
dismissal without reasonable cause.
3. Employment Agreement with Xxxxxxx Xxxxx, Chief Financial Officer and
Treasurer of Parent, providing for an indemnity of 24 months in the event
of dismissal without reasonable cause before September 30, 2004.
INTELLECTUAL PROPERTY RIGHTS (3.20)
1. Registered Trade Marks:
(a) FIDO registered on April 28, 1997, registration no. TMA475,321;
(b) FIDO registered in the United Sates on December 11, 2001, registration no.
2,517,638;
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(b) FIDO & DESIGN registered on February 2, 1998, registration no. TMA489,000;
(c) FIDO & DESIGN registered in the United States on April 16, 2002,
registration no. 2,560,921;
(c) FIDO (CARACTERES CHINOIS) DESIGN registered on February 21, 2001,
registration no. TMA541,416;
(b) FIDOMATIC registered on June 11, 2001, registration no. TMA546,433;
(c) FIDO (CARACTERES CHINOIS) DESIGN registered on April 19, 2002,
registration no. TMA560,471;
(d) FIDOMATIC & DESIGN registered on June 12, 2001, registration no.
TMA546,451;
(e) FIDOMATIC & DESIGN registered in the United States on December 17, 2002,
registration no. 2,661,037
(f) FIDO C'EST VOUS LE MAITRE & DESIGN registered on March 13, 2001,
registration no. TMA542,267;
(g) FIDO YOU ARE THE MASTER & DESIGN registered on March 13, 2001,
registration no. TMA542,265;
(h) FIDO & DESIGN registered on February 26, 2001, registration number
TMA541,562;
(i) FIDOPRO registered on February 27, 2001, registration no. TMA541,653;
(j) INSTANT REPLY registered on June 11, 2001, registration no. TMA546,429;
(k) REPONSE ECLAIR registered on June 11, 2001, registration no. TMA546,430;
(l) LA MESSAGERIE VOCALE PERFORMANCE registered on June 12, 2001, registration
no. TMA546,480;
(m) FIDO E-MAIL registered on June 12, 2001, registration no. TMA546,477;
(n) COURRIEL FIDO registered on June 12, 2001, registration no. TMA546,478;
(o) FIDODATA registered on February 21, 2001, registration no. TMA541,437;
(p) PERFORMANCE VOICE MESSAGING registered on June 12, 2001, registration no.
TMA546,454;
(q) MICROCELL registered on March 30, 1999, registration no. TMA510,356;
(r) MICROCELL SOLUTIONS & DESIGN registered on September 9, 1999, registration
no. TMA516,140;
(s) MICROCELL CAPITAL & DESIGN registered on September 30, 1998, registration
no. TMA501,581;
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(t) MICROCELL CONNEXIONS & DESIGN registered on March 29, 1999, registration
no. TMA510,183;
(u) MICROCELL LABS & DESIGN registered on September 30, 1998, registration no.
TMA501,578;
(v) FIDO registered on February 20, 2003, registration no. TMA576,104;
(w) x.XXXX registered on March 25, 2003, registration no. TMA578,101;
(x) POPFONE registered on July 8, 1994, registration no. TMA430,217;
(y) POPFONE DESIGN registered on June 10, 1994, registration no. TMA428,627.
(z) FIDO M@GAZINE registered on July 9, 2003, registration no. TMA584,884;
(aa) MICROCELL SCP registered on October 9, 2003, registration no. TMA592,052;
(bb) MICROCELL PCS registered on October 8, 2003, registration no. TMA591,903;
(cc) MICROCELL SCP & DESIGN registered on October 9, 2003, registration no.
TMA592,053; and
(dd) MICROCELL PCS & DESIGN registered on October 9, 2003, registration no.
TMA591,982.
2. Trade Xxxx Applications:
(a) CITY FIDO application filed on September 5, 2003 under no. 1,188,439;
(b) CITY FIDO HOME & MOBILE SERVICE & DESIGN application filed on September 5,
2003 under no. 1,188,440;
(c) CITE FIDO SERVICE RESIDENTIEL ET MOBILE & DESIGN application filed on
September 24, 2003 under no. 1,190,234; and
(d) CITE FIDO application filed on September 24, 2003 under no. 1,190,232.
INDEBTEDNESS FOR BORROWED MONEY (3.23, 4.1(M), 6.1(D))
1. Tranche B - Term Loan A Credit Agreement.
2. Tranche B - Term Loan B Credit Agreement.
3. First Preferred Shares.
4. Second Preferred Shares.
5. First Notes (if issued).
6. Second Notes (if issued).
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PERMITS, LICENCES; AUTHORIZATIONS (3.24)
1. Special authorization to provide Personal Communications Services (PCS)
pursuant to s. 5(1)(v) of the Radiocommunication Act issued by Industry
Canada on April 15, 1996 for a five year term and renewed on March 29,
2001 in favour of the Borrower for a second five year term together with
license conditions for Personal Communications Service (PCS) licensees
accepted by the Borrower on April 25, 1996 and on March 29, 2001. On
December 12, 2003, Industry Canada issued Canada Gazette Notice
DGRB-006-03 announcing that the licence terms of the Borrower's licence
will be extended to March 31, 2011.
EXECUTIVE OFFICE; LOCATION OF RECORDS (5.1(XXVI))
1. JURISDICTIONS IN WHICH TANGIBLE ASSETS ARE LOCATED:
Parent:
Quebec
Borrower:
Quebec
Ontario
Alberta
British Columbia
Saskatchewan
Manitoba
Nova Scotia
Newfoundland
2. JURISDICTIONS IN WHICH AGGREGATE ACCOUNTS RECEIVABLE EXCEEDING CDN.$50,000
PER YEAR ARE GENERATED:
Borrower:
Quebec
Ontario
Alberta
Saskatchewan
Manitoba
British Columbia
3. LOCATIONS OF CHIEF EXECUTIVE OFFICES:
Borrower and Parent:
000 xx Xx Xxxxxxxxxxx Xxxxxx Xxxx, Xxxxx 0000, Xxxxxxxx, Quebec
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4. LOCATIONS OF REGISTERED OFFICE:
Borrower and Parent:
0000 Xxxx-Xxxxxxxx xxxx. Xxxx, 00xx xxxxx, Xxxxxxxx, Xxxxxx
LIENS (6.2)
1. Act of Movable Hypothec on a commercial paper of Cdn.$10,000 dated January
6, 2004 with the Bank of Montreal to guarantee the issuance of a letter of
credit.
The Borrower has entered into a number of commercial leases for various
automobile vehicles and office equipment. These leases are true leases as
opposed to capital leases. Therefore the vehicles and equipment leased do not
form part of the Borrower property and assets and are not capitalized in their
balance sheet. The following is a summary description of these leases.
1. Commercial Lease Agreements with Location Xxxxxxx Inc. and Xxxxxxx Leasing
Inc. concerning 59 vehicles for two, three and four year terms.
2. Commercial Lease Agreements with IBM Canada Ltd., CIT Financial services,
Pitney Xxxxx Leasing a division of Pitney Xxxxx Canada Ltd., Konica
Minolta (Montreal) Inc., Minolta Business Equipment Inc. and Contract
Funding Group and Panasonic concerning office photocopiers and fax.
3. Commercial lease Agreements with various automobile leasing companies
concerning 37 vehicles used by employees as part of their employee
benefits.
EXISTING INVESTMENTS (6.4)
1. Long term investments (Shares or Units)
Canadian LNP Consortium Inc. (owned by Borrower)
Canadian Numbering Administration Consortium Inc. (owned by Borrower)
Canadian Portable Contribution Consortium Inc. (owned by Borrower)
Les placements Microcell Capital, S.E.N.C. (owned by Borrower)
Telcom Management Limited Partnership (owned by Borrower)
Telcom Investments Inc. (owned by Borrower)
GSM Capital Limited Partnership (owned by Borrower)
2. Other short term instruments in the form of marketable securities, which
constitute Permitted Investments, are contained in the investments
accounts of the Borrower and the Parent.
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RESTRICTIVE AGREEMENTS (6.9)
Tranche B-Term Loan A Credit Agreement.
Tranche B-Term Loan B Credit Agreement.
EXHIBIT A
FORM OF
ASSIGNMENT AND ASSUMPTION
This Assignment and Assumption (the "Assignment and Assumption") is
dated as of the Effective Date set forth below and is entered into by and
between [Insert name of Assignor] (the "Assignor") and [Insert name of Assignee]
(the "Assignee"). Capitalized terms used but not defined herein shall have the
meanings given to them in the Credit Agreement identified below (as amended, the
"Credit Agreement"), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto
are hereby agreed to and incorporated herein by reference and made a part of
this Assignment and Assumption as if set forth herein in full.
For an agreed consideration, the Assignor hereby irrevocably sells
and assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
the Administrative Agent as contemplated below (i) all of the Assignor's rights
and obligations in its capacity as a Lender under the Credit Agreement and any
other documents or instruments delivered pursuant thereto to the extent related
to the amount and percentage interest identified below of all of such
outstanding rights and obligations of the Assignor under the Credit Agreement
(including any letters of credit and guarantees included in such Credit
Agreement) and (ii) to the extent permitted to be assigned under applicable law,
all claims, suits, causes of action and any other right of the Assignor (in its
capacity as a Lender) against any Person, whether known or unknown, arising
under or in connection with the Credit Agreement, any other documents or
instruments delivered pursuant thereto or the loan transactions governed thereby
or in any way based on or related to any of the foregoing, including contract
claims, tort claims, malpractice claims, statutory claims and all other claims
at law or in equity related to the rights and obligations sold and assigned
pursuant to clause (i) above (the rights and obligations sold and assigned
pursuant to clauses (i) and (ii) above being referred to herein collectively as
the "Assigned Interest"). Such sale and assignment is without recourse to the
Assignor and, except as expressly provided in this Assignment and Assumption,
without representation or warranty by the Assignor.
1. Assignor: __________________________________________
2. Assignee: __________________________________________
[and is an Affiliate of [identify Lender]]
3. Borrower: Microcell Solutions Inc.
4. Administrative Agent: JPMorgan Chase Bank, Toronto Branch, as the
administrative agent under the Credit Agreement
-2-
5. Credit Agreement: The Amended and Restated Tranche A Exit Facility
Agreement dated as of March 17, 2004 among Microcell
Solutions Inc., as Borrower, Microcell
Telecommunications Inc., as Parent, the Lenders parties
thereto, XXXxxxxx Xxxxx Xxxx, Xxxxxxx Branch, as
Administrative Agent, Collateral Agent and Issuing Bank,
X.X. Xxxxxx Securities Inc., as sole bookrunner and
joint lead arranger, and Credit Suisse First Boston, as
syndication agent and joint lead arranger.
6. Assigned Interest:
Aggregate Amount of Amount of Commitment/Loans Percentage Assigned of
Commitments/Loans for all Lenders Assigned Commitment/Loans(1)
--------------------------------- -------------------------- -----------------------
$ $ %
Effective Date: _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT
AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]
The terms set forth in this Assignment and Assumption are hereby agreed to:
ASSIGNOR
[NAME OF ASSIGNOR]
By:______________________________
Title:
ASSIGNEE
[NAME OF ASSIGNEE]
By:______________________________
Title:
------------------------
(1) Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans
of all Lenders thereunder.
-3-
Consented to and Accepted:(2)
JPMORGAN CHASE BANK, TORONTO BRANCH, as
Administrative Agent and Issuing Bank
By_________________________________
Title:
Consented to:(3)
MICROCELL SOLUTIONS INC.
By________________________________
Title:
------------------------
(2) Not required with respect to any assignment to a Lender or an Affiliate of a
Lender.
(3) Not required at any time after and during the occurrence of an Event of
Default. Not required with respect to any assignment to a Lender or a Lender
Affiliate.
ANNEX 1
MICROCELL TRANCHE A EXIT FACILITY AGREEMENT
STANDARD TERMS AND CONDITIONS FOR
ASSIGNMENT AND ASSUMPTION
1. Representations and Warranties.
1.1 Assignor. The Assignor (a) represents and warrants that (i) it
is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and
(iii) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby, including the payment to the Administrative
Agent of a processing and recordation fee of Cdn.$5,000, pursuant to Section
9.4(b) of the Credit Agreement (except in the case of an assignment to an
Affiliate of the Assignor); and (b) assumes no responsibility with respect to
(i) any statements, warranties or representations made in or in connection with
the Credit Agreement or any other Financing Document, (ii) the execution,
legality, validity, enforceability, genuineness, sufficiency or value of the
Financing Documents or any collateral thereunder, (iii) the financial condition
of the Borrower, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Financing Document or (iv) the performance or
observance by the Borrower, any of its Subsidiaries or Affiliates or any other
Person of any of their respective obligations under any Financing Document.
1.2. Assignee. The Assignee (a) represents and warrants that (i) it
has full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby and to become a Lender under the Credit Agreement, (ii) it
satisfies the requirements, if any, specified in the Credit Agreement that are
required to be satisfied by it in order to acquire the Assigned Interest and
become a Lender, (iii) from and after the Effective Date, it shall be bound by
the provisions of the Credit Agreement as a Lender thereunder and, to the extent
of the Assigned Interest, shall have the obligations of a Lender thereunder, and
(iv) it has received a copy of the Credit Agreement, together with copies of the
most recent financial statements delivered pursuant to Section 5.1 thereof, as
applicable, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Assumption and to purchase the Assigned Interest on the basis of
which it has made such analysis and decision independently and without reliance
on the Administrative Agent or any other Lender and (b) agrees that (i) it will,
independently and without reliance on the Administrative Agent, the Assignor or
any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Financing Documents, and (ii) it will perform in
accordance with their terms all of the obligations which by the terms of the
Financing Documents are required to be performed by it as a Lender.
2. Payments. From and after the Effective Date, the Administrative
Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest,
-2-
fees and other amounts) to the Assignee whether such amounts have accrued prior
to the Effective Date or accrued subsequent to the Effective Date. The Assignor
and the Assignee shall make all appropriate adjustments in payments by the
Administrative Agent for the periods prior to the Effective Date or with respect
to the making of this assignment directly between themselves.
3. General Provisions. This Assignment and Assumption shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns. This Assignment and Assumption may be
executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a
manually executed counterpart of this Assignment and Assumption. This Assignment
and Assumption shall be governed by, and construed in accordance with, the Laws
of the Province of Ontario and the federal Laws of Canada applicable therein.
EXHIBIT B
FORM OF INTERCREDITOR AGREEMENT
EXHIBIT C
NOTICE OF BORROWING /CONTINUATION/CONVERSION
TO: JPMORGAN CHASE BANK, TORONTO BRANCH
RE: Amended and Restated Tranche A Exit Facility Agreement dated as of
March 17, 2004 made between, among others, the undersigned (the
"Borrower"), you, as Administrative Agent, and the lenders from time
to time party thereto (as amended, supplemented or otherwise
modified from time to time, the "Credit Agreement")
We refer to the Commitments of the Lenders under the Credit
Agreement and we hereby give you notice that on [INSERT DATE] we wish to obtain
a Borrowing in the aggregate amount of [CANADIAN][U.S.]$__________________.
The Borrowing requested hereby is to take the form of:
[ ] a B/A Borrowing
[ ] a Prime Rate Borrowing
[ ] a Base Rate Borrowing
[ ] a Eurodollar Borrowing
The Contract Period in respect of the B/A Borrowing requested hereby
is ____ days(1).
The Interest Period in respect of the Eurodollar Borrowing requested
hereby is _____ days(2).
The funds requested hereunder are hereby requested to be disbursed
to our account at [BANK], Account #____________ . We confirm that this account
complies with the requirements of Section 5.17 of the Credit Agreement, and that
the advance notice required has been provided in compliance with Section 2.2 of
the Credit Agreement.
We hereby certify, after due and careful investigation, that(3):
------------------------
(1) This sentence is only required in the context of a Borrowing Request for a
B/A Borrowing.
(2) This sentence is only required in the context of a Borrowing Request for a
Eurodollar Borrowing.
(3) This certification need not be made on conversions or rollovers.
Note: A separate Notice of Borrowing/Continuation/Conversion must be submitted
for each Type of Borrowing.
-2-
(i) each of the representations and warranties made by the
Borrower in the Credit Agreement are true and correct on and
as of the date hereof except to the extent that (i) any change
to the representations and warranties has been disclosed to
the Administrative Agent and accepted by the Required Lenders,
or (ii) any representation and warranty is stated to be made
as of a particular time; and
(ii) on and as of the date hereof, no Default has occurred and is
continuing.
All terms defined in the Credit Agreement and used herein have the
meanings given to them in the Credit Agreement.
DATED:_____________________________
MICROCELL SOLUTIONS INC.
By:____________________________________
Name:
Title:
By:____________________________________
Name:
Title:
EXHIBIT D
FORM OF LIEN PRIORITY AGREEMENT
EXECUTION VERSION
AMENDED AND RESTATED
TRANCHE A EXIT FACILITY AGREEMENT
dated as of
March 17, 2004
among
MICROCELL SOLUTIONS INC.
as Borrower,
MICROCELL TELECOMMUNICATIONS INC.
as Parent and Guarantor,
THE LENDERS FROM TIME TO TIME PARTIES HERETO
as Lenders,
JPMORGAN CHASE BANK, TORONTO BRANCH
as Administrative Agent, Collateral Agent and Issuing Bank,
X.X. XXXXXX SECURITIES INC.
as Sole Bookrunner and Joint Lead Arranger
and
CREDIT SUISSE FIRST BOSTON
as Syndication Agent and Joint Lead Arranger
TABLE OF CONTENTS
PAGE
ARTICLE 1 DEFINITIONS.................................................... 1
1.1 Defined Terms...................................................... 1
1.2 Terms Generally.................................................... 28
1.3 Accounting Terms; GAAP............................................. 29
1.4 Time............................................................... 29
1.5 Permitted Liens.................................................... 29
1.6 Schedules and Exhibits............................................. 29
ARTICLE 2 LOANS.......................................................... 30
2.1 Loans.............................................................. 30
2.2 Borrowing, Continuation, Conversion and Roll-Over Elections........ 30
2.3 Interest and Acceptance Fees....................................... 33
2.4 Repayment of Loans; Fees........................................... 34
2.5 Evidence of Debt................................................... 35
2.6 Prepayments of Loans............................................... 36
2.7 Banker's Acceptances............................................... 37
2.8 Alternate Rate of Interest......................................... 40
2.9 Increased Costs; Illegality........................................ 41
2.10 Break Funding Payments............................................. 42
2.11 Taxes.............................................................. 43
2.12 Payments Generally; Pro Rata Treatment; Sharing of Set-offs........ 43
2.13 Currency Indemnity................................................. 45
2.14 Mitigation Obligations; Replacement of Lenders..................... 45
2.15 Letters of Credit.................................................. 46
2.16 Indemnity for Returned Payments.................................... 51
2.17 Increase in Commitments; Permitted Additional Exit Facility Debt... 51
2.18 Hedging Arrangements............................................... 51
2.19 Existing Security.................................................. 52
2.20 Additional Loans................................................... 52
ARTICLE 3 REPRESENTATIONS AND WARRANTIES................................. 53
3.1 Organization; Powers............................................... 53
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TABLE OF CONTENTS
(CONTINUED)
PAGE
3.2 Authorization; Enforceability...................................... 53
3.3 Governmental Approvals; No Conflicts............................... 53
3.4 Financial Condition; No Material Adverse Effect.................... 54
3.5 Litigation......................................................... 54
3.6 Compliance with Laws and Agreements................................ 55
3.7 Taxes.............................................................. 55
3.8 Titles to Real Property............................................ 55
3.9 Titles to Personal Property........................................ 55
3.10 Pension Plans...................................................... 55
3.11 Disclosure......................................................... 55
3.12 Defaults........................................................... 55
3.13 Casualties; Taking of Properties................................... 56
3.14 Subsidiaries....................................................... 56
3.15 Insurance.......................................................... 56
3.16 Material Contracts................................................. 56
3.17 Environmental Matters.............................................. 57
3.18 Employee Matters................................................... 58
3.19 Fiscal Year........................................................ 58
3.20 Intellectual Property Rights....................................... 58
3.21 Investment and Holding Company Status.............................. 59
3.22 PCS Network Ownership.............................................. 59
3.23 No Indebtedness for Borrowed Money................................. 59
3.24 Permits, Licences, etc............................................. 59
3.25 Security Interests................................................. 60
3.26 Regulatory Compliance.............................................. 60
3.27 Budget Update...................................................... 60
ARTICLE 4 CONDITIONS..................................................... 61
4.1 Conditions Precedent to Effectiveness of Agreement................. 61
4.2 Each Credit Event.................................................. 63
ARTICLE 5 AFFIRMATIVE COVENANTS.......................................... 64
-ii-
TABLE OF CONTENTS
(CONTINUED)
PAGE
5.1 Financial Statements and Other Information......................... 64
5.2 Existence; Conduct of Business..................................... 70
5.3 Payment of Obligations............................................. 70
5.4 Maintenance of Properties.......................................... 70
5.5 Maintenance of Authorizations...................................... 71
5.6 Books and Records; Inspection Rights............................... 71
5.7 Compliance with Laws and Material Contracts........................ 71
5.8 Use of Proceeds and Letters of Credit.............................. 71
5.9 Further Assurances................................................. 71
5.10 Insurance.......................................................... 72
5.11 Operation and Maintenance of Property.............................. 72
5.12 Additional Subsidiaries; Additional Liens.......................... 72
5.13 Hedging............................................................ 73
5.14 Financial Covenants................................................ 73
5.15 Most Favoured Nations.............................................. 75
5.16 Landlord Consents.................................................. 76
5.17 Bank Accounts...................................................... 76
ARTICLE 6 NEGATIVE COVENANTS............................................. 76
6.1 Indebtedness....................................................... 76
6.2 Liens.............................................................. 77
6.3 Fundamental Changes................................................ 77
6.4 Investments, Loans, Advances, and Guarantees....................... 78
6.5 Hedging Agreements................................................. 79
6.6 Restricted Payments................................................ 79
6.7 Transactions with Affiliates....................................... 80
6.8 Repayment of Debt.................................................. 80
6.9 Restrictive Agreements............................................. 81
6.10 Capital Lease Obligations.......................................... 81
6.11 Sales and Leasebacks............................................... 81
6.12 Pension Plan Compliance............................................ 81
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TABLE OF CONTENTS
(CONTINUED)
PAGE
6.13 Sale or Discount of Receivables.................................... 82
6.14 Unconditional Purchase Obligations................................. 82
6.15 Ownership of Shares................................................ 82
6.16 No Amendments to Material Contracts................................ 82
6.17 Fiscal Year........................................................ 82
ARTICLE 7 EVENTS OF DEFAULT.............................................. 82
7.1 Events of Default.................................................. 82
ARTICLE 8 THE ADMINISTRATIVE AGENT....................................... 87
8.1 Appointment of Agent............................................... 87
8.2 Limitation of Duties of Agent...................................... 88
8.3 Lack of Reliance on the Agent...................................... 88
8.4 Certain Rights of the Administrative Agent......................... 88
8.5 Reliance by Administrative Agent................................... 89
8.6 Indemnification of Agent........................................... 89
8.7 The Agent in its Individual Capacities............................. 89
8.8 May Treat Lender as Owner.......................................... 90
8.9 Successor Administrative Agent..................................... 90
8.10 Lenders to Enforce through Administrative Agent.................... 91
8.11 Quebec Security.................................................... 91
ARTICLE 9 MISCELLANEOUS.................................................. 93
9.1 Notices............................................................ 93
9.2 Waivers; Amendments................................................ 94
9.3 Expenses; Indemnity; Damage Waiver................................. 95
9.4 Successors and Assigns............................................. 98
9.5 Survival........................................................... 101
9.6 Counterparts; Integration; Effectiveness........................... 101
9.7 Severability....................................................... 102
9.8 Right of Set Off................................................... 102
9.9 Governing Law; Jurisdiction; Consent to Service of Process......... 102
9.10 WAIVER OF JURY TRIAL............................................... 103
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TABLE OF CONTENTS
(CONTINUED)
PAGE
9.11 Headings........................................................... 103
9.12 Confidentiality.................................................... 103
9.13 Amendment and Restatement.......................................... 104
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