CONFORMED COPY
Exhibit 4.1
ROGERS CABLE INC.,
Issuer
And
JPMORGAN CHASE BANK,
Trustee
---------
INDENTURE
Dated as of June 19, 2003
---------
6.25% Senior (Secured) Second Priority Notes due 2013
RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939
AND INDENTURE, DATED AS OF JUNE 19, 2003*
TRUST INDENTURE
ACT SECTION INDENTURE SECTION
Section 310 (a)(1) .................................................... 609
(a)(2) .................................................... 609
(b) .................................................... 608, 610
Section 312 (c) .................................................... 701
Section 314 (a) .................................................... 703
(a)(4) .................................................... 1022
(b) .................................................... 1202
(c)(1) .................................................... 103
(c)(2) .................................................... 103
(e) .................................................... 103
Section 315 (b) .................................................... 602
Section 316 (a)
(last sentence) .................................................... 101 ("Outstanding")
(a)(1)(A) .................................................... 502, 512
(a)(1)(B) .................................................... 513
(b) .................................................... 508
(c) .................................................... 105
Section 317 (a)(1) .................................................... 503
(a)(2) .................................................... 504
(b) .................................................... 1003
Section 318 (a) .................................................... 108
- ---------------
* This reconciliation and tie shall not, for any purpose, be deemed to be
part of the Indenture.
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TABLE OF CONTENTS
PAGE
Article One
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
SECTION 101. Definitions............................................................................. 1
"Acquired Debt".................................................................................... 2
"Additional Securities"............................................................................ 2
"Adjusted Treasury Rate"........................................................................... 2
"Affiliate"........................................................................................ 2
"Agent Member"..................................................................................... 3
"Annualized Operating Cash Flow"................................................................... 3
"Applicable Procedures"............................................................................ 3
"Asset Sale"....................................................................................... 3
"Attributable Debt"................................................................................ 3
"bank credit facility"............................................................................. 4
"Board of Directors"............................................................................... 4
"Board Resolution"................................................................................. 4
"Business Day"..................................................................................... 4
"Canadian Dollars", "Cdn Dollars" and "Cdn$"....................................................... 4
"Capital Lease Obligation"......................................................................... 4
"Capital Stock".................................................................................... 4
"cash equivalents"................................................................................. 4
"Collateral Documents"............................................................................. 4
"Commission"....................................................................................... 4
"Common Stock"..................................................................................... 5
"Company".......................................................................................... 5
"Company Request" or "Company Order"............................................................... 5
"Comparable Treasury Issue"........................................................................ 5
"Comparable Treasury Price"........................................................................ 5
"Consolidated Debt to Annualized Operating Cash Flow Ratio"........................................ 5
"Consolidated Net Tangible Assets"................................................................. 5
"Consolidated Senior Debt to Annualized Operating Cash Flow Ratio"................................. 5
"Consolidated Tangible Assets"..................................................................... 6
"Consolidation".................................................................................... 6
"Corporate Trust Office"........................................................................... 6
"Debt"............................................................................................. 6
"Deed of Trust".................................................................................... 7
"Deed of Trust Bondholders"........................................................................ 7
"Deed of Trust Bonds".............................................................................. 7
"Deed of Trust Collateral"......................................................................... 7
"Deed Trustee"..................................................................................... 7
"Default".......................................................................................... 7
"Deferred Management Fees"......................................................................... 7
"Depositary"....................................................................................... 7
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"Disqualified Stock"............................................................................... 7
"Event of Default"................................................................................. 8
"Exchange Act"..................................................................................... 8
"Exchange Offer"................................................................................... 8
"Exchange Offer Registration Statement"............................................................ 8
"Exchange Securities".............................................................................. 8
"Excluded Assets".................................................................................. 8
"Excluded Securities".............................................................................. 8
"Existing Excluded Assets"......................................................................... 9
"Existing Senior Secured Second Priority Securities"............................................... 9
"Existing Senior Subordinated Guaranteed Debentures"............................................... 9
"Fitch IBCA"....................................................................................... 9
"Generally Accepted Accounting Principles" or "GAAP"............................................... 9
"Holder"........................................................................................... 9
"Income Taxes"..................................................................................... 9
"Indenture"....................................................................................... 10
"Indenture Obligations"........................................................................... 10
"Independent Director"............................................................................ 10
"Initial Securities".............................................................................. 10
"Inter-Company Deeply Subordinated Debt".......................................................... 10
"Inter-Company Subordinated Debt"................................................................. 10
"Inter-Creditor Agreement"........................................................................ 10
"Interest Payment Date"........................................................................... 11
"Investment"...................................................................................... 11
"Investment Grade Rating"......................................................................... 11
"Lien"............................................................................................ 11
"Management Fees"................................................................................. 11
"Maturity"........................................................................................ 11
"Moody's"......................................................................................... 11
"Net Cash Proceeds"............................................................................... 11
"969056 Ontario".................................................................................. 12
"Officers' Certificate"........................................................................... 12
"1093216 Ontario"................................................................................. 12
"1443358 Ontario"................................................................................. 12
"Operating Cash Flow"............................................................................. 12
"Opinion of Counsel".............................................................................. 13
"Outstanding"..................................................................................... 13
"Paying Agent".................................................................................... 14
"Permitted Debt".................................................................................. 14
"Permitted Distributions"......................................................................... 15
"Permitted Investment"............................................................................ 16
"Permitted Restricted Payment".................................................................... 17
"Person".......................................................................................... 17
"Pledge Agreement"................................................................................ 17
"Predecessor Security"............................................................................ 17
"Preferred Stock"................................................................................. 17
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"Principal Property".............................................................................. 17
"Purchase Agreement".............................................................................. 18
"Purchase Money Obligations"...................................................................... 18
"QIB"............................................................................................. 18
"Quotation Agent"................................................................................. 18
"Rating Agencies"................................................................................. 18
"Rating Date"..................................................................................... 18
"Rating Decline".................................................................................. 18
"RCI"............................................................................................. 18
"Redemption Date"................................................................................. 18
"Redemption Price"................................................................................ 18
"Reference Treasury Dealer"....................................................................... 19
"Reference Treasury Dealer Quotations"............................................................ 19
"Registration Rights Agreement"................................................................... 19
"Registration Statement".......................................................................... 19
"Regular Record Date"............................................................................. 19
"Regulation S".................................................................................... 19
"Responsible Officer"............................................................................. 19
"Restricted Subsidiary"........................................................................... 19
"Rogers Investments".............................................................................. 20
"Rogers Entities"................................................................................. 20
"Rule 144A"....................................................................................... 20
"S&P"............................................................................................. 20
"Sale and Leaseback Transaction".................................................................. 20
"Secured Debt".................................................................................... 20
"Securities Act".................................................................................. 21
"Security" and "Securities"....................................................................... 21
"Senior Debt"..................................................................................... 21
"Shelf Registration Statement".................................................................... 21
"Solv"............................................................................................ 21
"Special Record Date"............................................................................. 21
"Stated Maturity"................................................................................. 21
"Subordination Agreement"......................................................................... 21
"Subsidiary"...................................................................................... 21
"Tangible Assets"................................................................................. 22
"Temporary Cash Investments"...................................................................... 22
"3782 Investments"................................................................................ 22
"Tranche A Credit Facility"....................................................................... 22
"Tranche A-Type Debt"............................................................................. 22
"Trust Bond"...................................................................................... 22
"Trust Estate".................................................................................... 23
"Trust Indenture Act"............................................................................. 23
"Trustee"......................................................................................... 23
"U.S. Dollars", "United States Dollars", "U.S.$" and the symbol "$"............................... 23
"Unrestricted Subsidiary"......................................................................... 23
"Voting Shares"................................................................................... 23
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Section 102. Other Definitions.............................................................. 23
SECTION 103. Compliance Certificates and Opinions........................................... 25
SECTION 104. Form of Documents Delivered to the Trustee..................................... 25
SECTION 105. Acts of Holders................................................................ 26
SECTION 106. Notices, Etc., to Trustee and Company.......................................... 27
SECTION 107. Notice to Holders; Waiver...................................................... 27
SECTION 108. Conflict of Any Provision of Indenture with the Trust Indenture Act............ 28
SECTION 109. Effect of Headings and Table of Contents....................................... 28
SECTION 110. Successors and Assigns......................................................... 28
SECTION 111. Separability Clause............................................................ 28
SECTION 112. Benefits of Indenture.......................................................... 28
SECTION 113. Governing Law.................................................................. 29
SECTION 114. Legal Holidays................................................................. 29
SECTION 115. Agent for Service; Submission to Jurisdiction; Waiver of Immunities............ 29
SECTION 116. Conversion of Currency......................................................... 30
SECTION 117. Currency Equivalent............................................................ 31
SECTION 118. No Recourse Against Others..................................................... 31
SECTION 119. Reliance on Financial Data..................................................... 32
SECTION 120. Documents in English........................................................... 32
Article Two
SECURITY FORMS
SECTION 201. Forms Generally................................................................ 32
SECTION 202. Restrictive Legends............................................................ 33
SECTION 203. Form of Face of Security....................................................... 36
SECTION 204. Form of Reverse of Security.................................................... 38
SECTION 205. Form of Trustee's Certificate of Authentication................................ 42
Article Three
THE SECURITIES
SECTION 301. Title and Terms................................................................ 42
SECTION 302. Denominations.................................................................. 43
SECTION 303. Execution, Authentication, Delivery and Dating................................. 43
SECTION 304. Temporary Securities........................................................... 44
SECTION 305. Registration, Registration of Transfer and Exchange............................ 45
SECTION 306. Book-Entry Provisions for Global Securities.................................... 46
SECTION 307. Special Transfer Provisions.................................................... 48
SECTION 308. Mutilated, Destroyed, Lost and Stolen Securities............................... 50
SECTION 309. Payment of Interest; Interest Rights Preserved................................. 51
SECTION 310. Persons Deemed Owners.......................................................... 52
SECTION 311. Cancellation................................................................... 52
SECTION 312. Computation of Interest........................................................ 52
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Article Four
DEFEASANCE AND COVENANT DEFEASANCE
SECTION 401. Company's Option to Effect Defeasance or Covenant Defeasance................... 52
SECTION 402. Defeasance and Discharge....................................................... 53
SECTION 403. Covenant Defeasance............................................................ 53
SECTION 404. Conditions to Defeasance or Covenant Defeasance................................ 54
SECTION 405. Deposited Money and U.S. Government Obligations to Be Held in Trust;
Other Miscellaneous Provisions. 56
SECTION 406. Reinstatement.................................................................. 57
Article Five
REMEDIES
SECTION 501. Events of Default.............................................................. 57
SECTION 502. Acceleration of Maturity; Rescission and Annulment............................. 61
SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee................ 63
SECTION 504. Trustee May File Proofs of Claim............................................... 64
SECTION 505. Trustee May Enforce Claims Without Possession of Securities.................... 65
SECTION 506. Application of Money Collected................................................. 65
SECTION 507. Limitation on Suits............................................................ 65
SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and Interest...... 66
SECTION 509. Restoration of Rights and Remedies............................................. 66
SECTION 510. Rights and Remedies Cumulative................................................. 66
SECTION 511. Delay or Omission Not Waiver................................................... 67
SECTION 512. Control by Holders............................................................. 67
SECTION 513. Waiver of Past Defaults........................................................ 67
SECTION 514. Undertaking for Costs.......................................................... 68
SECTION 515. Waiver of Stay, Extension or Usury Laws........................................ 68
SECTION 516. Change in Control Offer........................................................ 68
Article Six
THE TRUSTEE
SECTION 601. Certain Duties and Responsibilities............................................ 71
SECTION 602. Notice of Defaults............................................................. 72
SECTION 603. Certain Rights of Trustee...................................................... 72
SECTION 604. Not Responsible for Recitals or Issuance of Securities......................... 73
SECTION 605. May Hold Securities............................................................ 74
SECTION 606. Money Held in Trust............................................................ 74
SECTION 607. Compensation, Reimbursement and Indemnity...................................... 74
SECTION 608. Conflicting Interests.......................................................... 75
SECTION 609. Corporate Trustee Required; Eligibility........................................ 75
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SECTION 610. Resignation and Removal; Appointment of Successor.............................. 75
SECTION 611. Acceptance of Appointment by Successor......................................... 76
SECTION 612. Merger, Conversion, Consolidation or Succession to Business.................... 77
SECTION 613. Trustee Not to Be Appointed Receiver........................................... 77
SECTION 614. Acceptance of Trusts........................................................... 77
Article Seven
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701. Disclosure of Names and Addresses of Holders................................... 77
SECTION 702. Reports by Trustee............................................................. 78
SECTION 703. Reports by Company............................................................. 78
Article Eight
AMALGAMATION, CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
SECTION 801. Company May Amalgamate, Etc., Only on Certain Terms............................ 79
SECTION 802. Successor Substituted.......................................................... 80
Article Nine
SUPPLEMENTS AND AMENDMENTS TO INDENTURE AND COLLATERAL
DOCUMENTS
SECTION 901. Supplemental Indentures and Amendments Without Consent of Holders.............. 81
SECTION 902. Actions by the Trustee under the Deed of Trust and Certain Amendments to the
Inter-Creditor Agreement Without Consent of Holders............................ XX
SECTION 903. Supplemental Indentures and Certain Amendments with Consent of Holders......... 83
SECTION 904. Amendments to Collateral Documents............................................. 84
SECTION 905. Execution of Supplemental Indentures........................................... 85
SECTION 906. Effect of Supplemental Indentures.............................................. 85
SECTION 907. Conformity with the Trust Indenture Act........................................ 85
SECTION 908. Reference in Securities to Supplemental Indentures............................. 85
SECTION 909. Execution of Subordination Agreements.......................................... 85
Article Ten
COVENANTS
SECTION 1001. Payment of Principal, Premium and Interest..................................... 86
SECTION 1002. Maintenance of Office or Agency................................................ 86
SECTION 1003. Money for Security Payments to Be Held in Trust................................ 86
SECTION 1004. Corporate Existence............................................................ 87
SECTION 1005. Payment of Taxes and Other Claims.............................................. 88
SECTION 1006. Maintenance of Properties...................................................... 88
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SECTION 1007. Insurance...................................................................... 88
SECTION 1008. Limitation on Debt............................................................. 88
SECTION 1009. Limitation on Senior Debt...................................................... 89
SECTION 1010. Limitation on Restricted Payments.............................................. 89
SECTION 1011. Limitation on Investments...................................................... 92
SECTION 1012. Limitation on Liens............................................................ 92
SECTION 1013. Limitation on Management Fees.................................................. 94
SECTION 1014. Transactions with Affiliates................................................... 95
SECTION 1015. Restricted Subsidiaries........................................................ 95
SECTION 1016. Disposition of Proceeds of Asset Sale.......................................... 96
SECTION 1017. Limitation on Secured Debt..................................................... 99
SECTION 1018. Limitation on Sale and Leaseback Transactions................................. 100
SECTION 1019. Limitation on Restricted Subsidiary Debt...................................... 100
SECTION 1020. Provision of Financial Statements............................................. 101
SECTION 1021. Payment of Additional Amounts................................................. 101
SECTION 1022. Statement as to Compliance.................................................... 103
SECTION 1023. Subordination Arrangements.................................................... 103
SECTION 1024. Waiver of Certain Covenants................................................... 104
SECTION 1025. Suspension of Covenants....................................................... 104
SECTION 1026. Release of Security........................................................... 105
Article Eleven
REDEMPTION OF SECURITIES
SECTION 1101. Right of Redemption........................................................... 106
SECTION 1102. Applicability of Article...................................................... 106
SECTION 1103. Election to Redeem; Notice to Trustee......................................... 107
SECTION 1104. Selection by Trustee of Securities to Be Redeemed............................. 107
SECTION 1105. Notice of Redemption.......................................................... 107
SECTION 1106. Deposit of Redemption Price................................................... 108
SECTION 1107. Securities Payable on Redemption Date......................................... 108
SECTION 1108. Securities Redeemed in Part................................................... 108
SECTION 1109. Effect of Change in Control Purchase Notice................................... 109
SECTION 1110. Deposit of Change in Control Purchase Price................................... 109
SECTION 1111. Securities Purchased in Part.................................................. 110
SECTION 1112. Repayment to the Company...................................................... 110
Article Twelve
SECURITY DOCUMENTS
SECTION 1201. Pledge Agreement.............................................................. 110
SECTION 1202. Recording..................................................................... 111
SECTION 1203. Custody of Trust Estate....................................................... 112
SECTION 1204. Suits to Protect the Trust Estate............................................. 112
SECTION 1205. Release upon Termination of the Company's Obligations......................... 112
TESTIMONIUM......................................................................................... 114
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SIGNATURES.......................................................................................... 114
EXHIBITS
A - Provisions for Inter-Company Deeply Subordinated Debt
B - Provisions for Inter-Company Subordinated Debt C - Form of Pledge
Agreement
D - Form of Certificate to be delivered in connection with Transfers
from Restricted Global Security to Regulation S Global Security
E - Form of Certificate to be delivered in connection with Transfers
from Regulation S Global Security to Restricted Global Security
F - Form of Certificate for Transfer or Exchange after two years
G - Form of Subordination Agreement
ix
INDENTURE dated as of June 19, 2003 between Rogers Cable Inc.,
a corporation organized under the laws of the Province of Ontario (hereinafter
called the "Company"), and JPMorgan Chase Bank, a New York banking corporation,
as trustee (hereinafter called the "Trustee").
RECITALS OF THE COMPANY
WHEREAS, the Company has duly authorized the creation of and
issue of its 6.25% Senior (Secured) Second Priority Notes due 2013 (hereinafter
called the "Initial Securities") and 6.25% Exchange Senior (Secured) Second
Priority Notes due 2013 (hereinafter called the "Exchange Securities" and,
together with the Initial Securities, the "Securities"), of substantially the
tenor and amount hereinafter set forth, and to provide therefor the Company has
duly authorized the execution and delivery of this Indenture;
WHEREAS, the Company's obligations under the Securities are
secured as provided in this Indenture (subject to the release of such security
in accordance with this Indenture);
WHEREAS, upon the effectiveness of the Exchange Offer
Registration Statement or the Shelf Registration Statement, as the case may be,
this Indenture will be subject to, and shall be governed by, applicable
provisions of the Trust Indenture Act; and
WHEREAS, all things necessary have been done to make the
Securities, when executed and duly issued by the Company and authenticated and
delivered hereunder by the Trustee, the valid obligations of the Company, and to
make this Indenture a valid agreement of the Company, each in accordance with
their respective terms, and to secure the Securities as contemplated in the
Pledge Agreement.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of
the Securities by the Holders thereof, it is mutually covenanted and agreed, for
the equal and proportionate benefit of all Holders of the Securities, as
follows:
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
SECTION 101. DEFINITIONS.
For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires:
(a) the terms defined in this Article have the meanings
assigned to them in this Article, and include the plural as well as the
singular;
(b) all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, have the
meanings assigned to them therein;
(c) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted
accounting principles in Canada;
(d) the words "herein", "hereof" and "hereunder" and other
words of similar import refer to this Indenture as a whole and not to
any particular Article, Section or other subdivision;
(e) the words "include", "includes" and "including" as used
herein shall be deemed in each case to be followed by the phrase
"without limitation"; and
(f) the words "amendment or refinancing" as used herein shall
be deemed in each case to refer to any amendment, renewal, extension,
substitution, refinancing, restructuring, restatement, replacement,
supplement or other modification of any instrument or agreement; the
words "amended or refinanced" shall have a correlative meaning.
Certain terms, used principally in Articles Five and Ten, are
defined in those Articles.
"Acquired Debt" means Debt of a Person (including an
Unrestricted Subsidiary) existing at the time such Person becomes a Restricted
Subsidiary or assumed in connection with the acquisition of assets from such
Person.
"Additional Securities" means up to an unlimited additional
aggregate principal amount of Securities that may be issued under a supplemental
indenture after the date that the Securities are first issued by the Company and
authenticated by the Trustee under this Indenture, which shall rank pari passu
with the Securities initially issued in all respects.
"Adjusted Treasury Rate" means, with respect to any Redemption
Date, the rate per annum equal to the semiannual equivalent yield to maturity of
the Comparable Treasury Issue, assuming a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for the Redemption Date.
"Affiliate" means, with respect to any specified Person, any
other Person directly or indirectly controlling or controlled by or under direct
or indirect common control with such specified Person. For the purposes of this
definition, "control" when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.
2
"Agent Member" means any members of, or participants
in, the Depositary.
"Annualized Operating Cash Flow" means, for any
fiscal quarter, the Operating Cash Flow for such fiscal quarter multiplied by
four.
"Applicable Procedures" means applicable procedures
of the Depositary, Euroclear System or Clearstream Banking, societe anonyme, as
the case may be.
"Asset Sale" means any sale, issuance, conveyance,
transfer or lease, directly or indirectly, in one or a series of related
transactions, of (i) any Common Stock of any Restricted Subsidiary; (ii) all or
substantially all of the properties and assets of any division or line of
business of the Company and its Restricted Subsidiaries taken as a whole; or
(iii) any other properties or assets (other than Excluded Assets) of the Company
or any Restricted Subsidiary, other than in the ordinary course of business. For
the purposes of this definition, the term "Asset Sale" shall not include (a) any
sale, issuance, conveyance, transfer or lease of properties and assets that is
governed by Article Eight, (b) any sale, issuance, conveyance, transfer or lease
in any one transaction or series of related transactions between the Company and
any Restricted Subsidiaries or between any Restricted Subsidiaries (c) any sale,
conveyance, transfer or lease in the ordinary course of business of not more
than five Rogers Video stores in any one transaction or series of related
transactions or (d) in the event of any substantially contemporaneous exchange
(including by way of a substantially contemporaneous purchase and sale) of
operating properties or assets of, or investments held by, the Company or any of
its Restricted Subsidiaries for one or more properties, assets or investments
used for similar purposes or of a substantially similar nature, or any
combination thereof, that portion of the properties, assets or investments so
exchanged by the Company or such Restricted Subsidiary in respect of which
properties, assets or investments used for similar purposes or of a
substantially similar nature, or any combination thereof, were received in the
exchange.
"Attributable Debt" means, as of the date of its
determination, the present value (discounted semiannually at the interest rate
implicit in the terms of the lease) of the obligation of a lessee for rental
payments pursuant to any Sale and Leaseback Transaction (reduced by the amount
of the rental obligations of any sublessee of all or part of the same property)
during the remaining term of such Sale and Leaseback Transaction (including any
period for which the lease relating thereto has been extended), such rental
payments not to include amounts payable by the lessee for maintenance and
repairs, insurance, taxes, assessments and similar charges and for contingent
rates (such as those based on sales), provided, however, that in the case of any
Sale and Leaseback Transaction in which the lease is terminable by the lessee
upon the payment of a penalty, Attributable Debt shall mean the lesser of the
present value of (i) the rental payments to be paid under such Sale and
Leaseback Transaction until the first date (after the date of such
determination) upon which it may be so terminated plus the then applicable
penalty upon such termination and (ii) the rental payments required to be paid
during the remaining term of such Sale and Leaseback Transaction (assuming such
termination provision is not exercised).
3
"bank credit facility" means any credit agreement or
working capital facility among the Company and/or its Subsidiaries and one or
more lenders, as such credit agreement or working capital facility may be
amended, renewed, extended, substituted, refinanced, restructured, replaced,
supplemented or otherwise modified (including with other lenders) from time to
time, regardless of whether any other credit agreement or working capital
facility or any portion thereof was outstanding or in effect at the time of such
amendment, renewal, extension, substitution, refinancing, restructuring,
replacement, supplement or modification.
"Board of Directors" means the board of directors of
the Company or any duly authorized committee of such board.
"Board Resolution" means a copy of a resolution
certified by the General Counsel, Secretary or an Assistant Secretary of the
Company
to have been duly adopted by the Board of Directors and to be in full force and
effect on the date of such certification, and delivered to the Trustee.
"Business Day" means each Monday, Tuesday, Wednesday,
Thursday and Friday which is not a day on which banking institutions and trust
companies in The City of New York or the City of Toronto are authorized or
obligated by law, regulation or executive order to be closed.
"Canadian Dollars", "Cdn Dollars" and "Cdn$" each
mean lawful currency of Canada.
"Capital Lease Obligation" means, with respect to any
Person, an obligation incurred or assumed in the ordinary course of business
under or in connection with any capital lease of real or personal property
which, in accordance with GAAP, has been recorded as a capitalized lease.
"Capital Stock" means, with respect to any Person,
any and all shares, interests, participations or equivalents (however
designated) of such Person's capital stock whether now outstanding or issued
after the date of this Indenture, including, without limitation, all Common
Stock and Preferred Stock.
"cash equivalents" means money, certified cheques,
demand deposit accounts held by the Deed Trustee or other instruments or
investments of equivalent liquidity and safety.
"Collateral Documents" means, collectively, the Trust
Bond, the Deed of Trust, the Pledge Agreement, the Inter-Creditor Agreement and
each other agreement or instrument executed and delivered pursuant to or in
connection with any thereof or which otherwise contains a guarantee of, or
grants a Lien to secure, the Trust Bond or any guarantee thereof.
"Commission" means the United States Securities and
Exchange Commission, as from time to time constituted, created under the
Exchange Act, or if at any time after the execution of this Indenture such
Commission is not existing and
4
performing the duties now assigned to it under the Trust Indenture Act, then the
body performing such duties at such time.
"Common Stock" means, with respect to any Person, any
and all shares, interests and participations (however designated and whether
voting or non-voting) in such Person's common equity, whether now outstanding or
issued after the date of this Indenture, and includes, without limitation, all
series and classes of such common stock.
"Company" means the Person named as the "Company" in
the first paragraph of this Indenture, until a successor Person shall have
become such pursuant to the applicable provisions of this Indenture, and
thereafter "Company" shall mean such successor Person. To the extent necessary
to comply with the requirements of the provisions of Trust Indenture Act
Sections 310 through 317 as they are applicable to the Company, the term
"Company" shall include any other obligor with respect to the Securities for the
purposes of complying with such provisions.
"Company Request" or "Company Order" means a written
request or order signed in the name of the Company by any two of the following
officers: its Chairman of the Board of Directors, any Vice-Chairman, its
President, any Executive Vice-President, any Senior Vice-President, any
Vice-President, its Treasurer, its Secretary or its General Counsel, and
delivered to the Trustee.
"Comparable Treasury Issue" means the United States
Treasury security selected by the Quotation Agent as having a maturity
comparable to the remaining term of the Securities that would be utilized, at
the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt of comparable maturity to the remaining
term of the Securities.
"Comparable Treasury Price" means, with respect to
any Redemption Date, the average of the Reference Treasury Dealer Quotations for
the Redemption Date.
"Consolidated Debt to Annualized Operating Cash Flow
Ratio" means, at any date of determination, the ratio of (i) the aggregate
amount of the Debt of the Company and the Restricted Subsidiaries on a
Consolidated basis outstanding at the date of determination to (ii) the
Annualized Operating Cash Flow for the most recently completed fiscal quarter of
the Company. For purposes of this definition, the term "Debt" includes
Inter-Company Subordinated Debt.
"Consolidated Net Tangible Assets" means the
Consolidated Tangible Assets of any Person, less such Person's current
liabilities.
"Consolidated Senior Debt to Annualized Operating
Cash Flow Ratio" means, at any date of determination, the ratio of (i) the
aggregate amount of Senior Debt of the Company and the Restricted Subsidiaries
on a Consolidated basis outstanding at the date of determination to (ii) the
Annualized Operating Cash Flow for the most recently completed fiscal quarter of
the Company.
5
"Consolidated Tangible Assets" means the Tangible
Assets of any Person after eliminating inter-company items, determined on a
Consolidated basis in accordance with GAAP including appropriate deductions for
any minority interest in Tangible Assets of such Person's Restricted
Subsidiaries.
"Consolidation" means the consolidation of the
accounts of the Restricted Subsidiaries with those of the Company, if and to the
extent the accounts of each such Restricted Subsidiary would normally be
consolidated with those of the Company, all in accordance with GAAP; provided,
however, that "Consolidation" will not include consolidation of the accounts of
any Unrestricted Subsidiary. For purposes of clarification, it is understood
that the accounts of the Company or any Restricted Subsidiary include the
accounts of any partnership, the beneficial interests in which are controlled
(in accordance with GAAP) by the Company or any such Restricted Subsidiary. The
term "Consolidated" shall have a correlative meaning.
"Corporate Trust Office" means the office of the
Trustee at which at any particular time its corporate trust business shall be
principally administered. At the date of execution of this Indenture, the
Corporate Trust Office of the Trustee is located at 4 New York Plaza, New York,
New York 10004.
"Debt" means, with respect to any Person, without
duplication and (except as provided in clause (i) below) without regard to any
interest component thereof (whether actual or imputed) that is not due and
payable:
(i) money borrowed (including, without limitation, by
way of overdraft) or indebtedness represented by notes payable
and drafts accepted representing extensions of credit;
(ii) the face amount of any drafts of a corporation
in Canadian Dollars and accepted by a Canadian lender for
discount in Canada;
(iii) all obligations (whether or not with respect to
the borrowing of money) which are evidenced by bonds,
debentures, notes or other similar instruments or not so
evidenced but which would be considered to be indebtedness for
borrowed money in accordance with GAAP;
(iv) all liabilities upon which interest charges are
customarily paid by such Person;
(v) shares of Disqualified Stock not held by the
Company or a wholly-owned Restricted Subsidiary;
(vi) Capital Lease Obligations and Purchase Money
Obligations, determined in each case in accordance with GAAP;
and
(vii) any guarantee (other than by endorsement of
negotiable instruments for collection or deposit in the
ordinary course of business) in any
6
manner of any part or all of an obligation included in clauses (i) through
(vi) above;
provided that "Debt" shall not include (A) trade payables and accrued
liabilities which are current liabilities incurred in the ordinary course of
business, (B) Inter-Company Deeply Subordinated Debt and (C) except as otherwise
expressly provided herein, Inter-Company Subordinated Debt.
"Deed of Trust" means the Restated Deed of Trust and Mortgage dated
as of January 31, 1995, between the Company and the Deed Trustee as in effect on
the date hereof and as such agreement may be amended, restated, supplemented or
otherwise modified from time to time.
"Deed of Trust Bondholders" means, collectively, the holders of the
Deed of Trust Bonds from time to time.
"Deed of Trust Bonds" means, collectively, the Trust Bond and any
other bonds from time to time issued and outstanding under the Deed of Trust.
"Deed of Trust Collateral" means, collectively, all of the property
and assets that are intended from time to time to secure the Deed of Trust Bonds
or any guarantee thereof pursuant to the Collateral Documents.
"Deed Trustee" means National Trust Company, a trust company
subsisting under the laws of the Province of Ontario, Canada and its successors
and assigns, as trustee under the Deed of Trust.
"Default" means any event which is, or after notice or passage of
time or both would be, an Event of Default.
"Deferred Management Fees" means, for any period, any Management
Fees that were payable during any prior period, the payment of which was not
effected when due.
"Depositary" means The Depository Trust Company, its nominees and
their respective successors.
"Disqualified Stock" means any Capital Stock of the Company or any
Restricted Subsidiary which, by its terms (or by the terms of any security into
which it is convertible or for which it is exchangeable at the option of the
holder) or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable
at the option of the holder thereof, in whole or in part, on or prior to the
maturity date of the Securities for cash or securities constituting Debt;
provided that shares of Preferred Stock of the Company or any Restricted
Subsidiary that are issued with the benefit of provisions requiring a change in
control offer to be made for such shares in the event of a change in control of
the Company or such Restricted Subsidiary, which provisions have substantially
the same effect as the relevant provisions of Sections 501 and 516 hereof, shall
not be deemed to be
7
"Disqualified Stock" solely by virtue of such provisions. For purposes of this
definition, the term "Debt" includes Inter-Company Subordinated Debt.
"Event of Default" has the meaning specified in Article Five.
"Exchange Act" means the United States Securities Exchange Act of
1934, as amended, and as in force at the date as of which this instrument was
executed.
"Exchange Offer" means the exchange offer that may be effected
pursuant to the Registration Rights Agreement.
"Exchange Offer Registration Statement" means the Exchange Offer
Registration Statement as defined in the Registration Rights Agreement.
"Exchange Securities" has the meaning stated in the first recital of
this Indenture and refers to any Exchange Securities containing terms
substantially identical to, and evidencing the same indebtedness as, the Initial
Securities (except that such Exchange Securities shall not contain terms with
respect to transfer restrictions) that are issued and exchanged for the Initial
Securities in accordance with the Exchange Offer, as provided for in the
Registration Rights Agreement and this Indenture.
"Excluded Assets" means (i) all Existing Excluded Assets; (ii) all
assets of any Person other than the Company or a Restricted Subsidiary; (iii)
Investments in the Capital Stock of an Unrestricted Subsidiary held by the
Company or a Restricted Subsidiary; (iv) any Investment by the Company or a
Restricted Subsidiary to the extent paid for with cash or other property that
constitutes Excluded Assets or Excluded Securities, so long as at the time of
acquisition thereof and after giving effect thereto there exists no Default or
Event of Default; and (v) proceeds of the sale of any Excluded Assets or
Excluded Securities received by the Company or any Restricted Subsidiary from a
Person other than the Company or a Restricted Subsidiary.
"Excluded Securities" means any Debt, Preferred Stock or Common
Stock issued by the Company, or any Debt or Preferred Stock issued by any
Restricted Subsidiary, in either case to an Affiliate thereof other than the
Company or a Restricted Subsidiary; provided that, at all times, such Excluded
Securities shall:
(i) in the case of Debt not owed to the Company or a Restricted
Subsidiary, constitute Inter-Company Deeply Subordinated Debt;
(ii) in the case of Debt, not be guaranteed by the Company or any
Restricted Subsidiary unless such guarantee shall constitute Inter-Company
Deeply Subordinated Debt;
(iii) in the case of Debt, not be secured by any assets or property
of the Company or any Restricted Subsidiary;
8
(iv) provide by its terms that interest or dividends thereon shall
be payable only to the extent that, after giving effect to any such
payment, no Default or Event of Default shall have occurred and be
continuing; and
(v) provide by its terms that, except and to the extent otherwise
permitted as a Restricted Payment, no payment (other than payments in the
form of Excluded Securities) on account of principal (at maturity, by
operation of sinking fund or mandatory redemption or otherwise) or other
payment on account of redemption, repurchase, retirement or acquisition of
such Excluded Security shall be permitted until the earlier of (x) the
final Stated Maturity of the Securities or (y) the date on which all
principal of, premium, if any, and interest on the Securities shall have
been duly paid or provided for in full.
"Existing Excluded Assets" means (i) all assets of 1093216 Ontario,
Solv, 969056 Ontario, Rogers Investments, 3782 Investments and 1443358 Ontario,
(ii) the shares of Capital Stock of 1093216 Ontario, Solv, 969056 Ontario,
Rogers Investments, 3782 Investments and 1443358 Ontario owned directly or
indirectly by the Company and in each case as such shares may be subdivided,
consolidated or reclassified, and including any additional shares of any such
issues received as a stock dividend on such shares and (iii) the proceeds of the
sale of any assets or shares referred to in the foregoing clause (i) or (ii)
received by the Company or any Restricted Subsidiary from a Person other than
the Company or a Restricted Subsidiary.
"Existing Senior Secured Second Priority Securities" means
securities evidencing indebtedness under the Company's 9.65% senior secured
second priority debentures due 2014, 10% senior secured second priority notes
due 2005, 10% senior secured second priority debentures due 2007, 7.60% senior
(secured) second priority notes due 2007, 7.875% senior secured second priority
notes due 2012 and 8.750% senior secured second priority debentures due 2032.
"Existing Senior Subordinated Guaranteed Debentures" means
securities evidencing indebtedness under the Company's 11% senior subordinated
guaranteed debentures due 2015.
"Fitch IBCA" means Fitch IBCA or any successor to the rating agency
business thereof.
"Generally Accepted Accounting Principles" or "GAAP" means generally
accepted accounting principles, in effect in Canada, as applied from time to
time by the Company in the preparation of its consolidated financial statements.
"Holder" means a Person in whose name a Security is registered in
the Security Register.
"Income Taxes" means, for any period, the aggregate amount of income
tax expense, including any large corporations tax incurred pursuant to Part I.3
under the Income Tax Act (Canada), of the Company and the Restricted
Subsidiaries for such period, determined on a Consolidated basis in accordance
with GAAP, together with any
9
capital tax incurred by the Company and the Restricted Subsidiaries pursuant to
any Canadian provincial tax legislation for such period, determined on a
Consolidated basis.
"Indenture" means this instrument as originally executed (including
all exhibits and schedules hereto) and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof.
"Indenture Obligations" means the obligations of the Company and any
other obligor hereunder or under the Securities to pay principal of (and
premium, if any) and interest on the Securities when due and payable at
Maturity, and all other amounts due or to become due under or in connection with
this Indenture, the Securities and the performance of all other obligations to
the Trustee (including all amounts due to the Trustee under Section 607 hereof)
and the Holders under this Indenture and the Securities, according to the terms
hereof and thereof.
"Independent Director" means a director of the Company other than
(i) a director who (apart from being a director of the Company or any of its
subsidiaries) is an employee, insider, associate (as the terms insider and
associate are defined in the Securities Act (Ontario) as in force on the date of
this Indenture) or Affiliate of RCI or one of its subsidiaries, or has held any
such position during the previous five years and (ii) a director who is an
employee, insider, associate (as the terms insider and associate are defined in
the Securities Act (Ontario) as in force on the date of this Indenture) or
Affiliate of another party to the transaction in question.
"Initial Securities" has the meaning stated in the first recital of
this Indenture.
"Inter-Company Deeply Subordinated Debt" means all indebtedness of
the Company or any of the Restricted Subsidiaries (except from one to the other)
for money borrowed from Rogers Entities under which payments by the Company or
such Restricted Subsidiary, as the case may be, with respect thereto are
subordinated to the Securities in the manner and to the extent set forth in
Exhibit A hereto and in respect of which the agreement or instrument evidencing
such indebtedness contains or incorporates by reference the provisions of
Exhibit A hereto for the benefit of the Trustee and the Holders.
"Inter-Company Subordinated Debt" means all indebtedness of the
Company or any of the Restricted Subsidiaries (except from one to the other) for
money borrowed from Rogers Entities and under which payments by the Company or
such Restricted Subsidiary, as the case may be, with respect thereto are
subordinated to the Securities in the manner and to the extent set forth in
Exhibit B hereto and in respect of which the agreement or instrument evidencing
such indebtedness contains or incorporates by reference the provisions of
Exhibit B for the benefit of the Trustee and the Holders.
"Inter-Creditor Agreement" means the amended and restated
inter-creditor agreement dated as of August 1, 1992, among the Company, certain
of its subsidiaries
10
and the lender parties thereto, as the same may be amended or supplemented from
time to time in accordance with this Indenture.
"Interest Payment Date" means the Stated Maturity of an installment
of interest on the Securities.
"Investment" means (i) directly or indirectly, any advance, loan or
capital contribution to, the purchase of any stock, bonds, notes, debentures or
other securities of, the acquisition, by purchase or otherwise, of all or
substantially all of the business or assets or stock or other evidence of
beneficial ownership of, any Person or making of any investment in any Person,
(ii) the designation of any Restricted Subsidiary as an Unrestricted Subsidiary
and (iii) the transfer of any assets or properties from the Company or a
Restricted Subsidiary to any Unrestricted Subsidiary, other than the transfer of
assets or properties made in the ordinary course of business. Investments shall
exclude extensions of trade credit on commercially reasonable terms in
accordance with normal trade practices.
"Investment Grade Rating" means a rating equal to or higher than
BBB- (or the equivalent) by S&P, Baa3 (or the equivalent) by Moody's or BBB- (or
the equivalent) by Fitch IBCA.
"Lien" means any mortgage, charge, pledge, lien, privilege, security
interest, hypothecation and transfer, lease of real property or other
encumbrance upon or with respect to any property of any kind of the Company or
any of the Restricted Subsidiaries, real or personal, movable or immovable, now
owned or hereafter acquired.
"Management Fees" means any amounts payable by the Company or any
Restricted Subsidiary in respect of management or similar services.
"Maturity" when used with respect to any Security means the date on
which the principal of (and premium, if any) and interest on such Security
becomes due and payable as therein or herein provided, whether at the Stated
Maturity thereof or by declaration of acceleration, call for redemption or
otherwise.
"Moody's" means Moody's Investors Service, Inc. or any successor to
the rating agency business thereof.
"Net Cash Proceeds" means, with respect to any Asset Sale, the
proceeds thereof in the form of cash or cash equivalents, including payments in
respect of deferred payment obligations when received in the form of cash or
cash equivalents (except to the extent that such obligations are financed or
sold with recourse to the Company or any Restricted Subsidiary), net of (i)
brokerage commissions and other reasonable fees and expenses (including fees and
expenses of counsel, appraisers, auditors and investment bankers) related to
such Asset Sale, (ii) provisions for all taxes payable as a result of such Asset
Sale, (iii) payments made to retire indebtedness (other than Debt secured by a
pledge of a Deed of Trust Bond) where payment of such indebtedness is required
in connection with such Asset Sale and (iv) appropriate amounts to be provided
by the Company or any Restricted Subsidiary, as the case may be, as a reserve in
accordance
11
with GAAP, against any liabilities associated with such Asset Sale and retained
by the Company or any Restricted Subsidiary, as the case may be, after such
Asset Sale, including, without limitation, pension and other post-employment
benefit liabilities, liabilities related to environmental matters and
liabilities under any indemnification obligations associated with such Asset
Sale.
"969056 Ontario" means 969056 Ontario Limited, a corporation
organized under the laws of the Province of Ontario, and its successors and
assigns.
"Officers' Certificate" means a certificate signed by any two of the
following officers of the Company: its Chairman, any Vice Chairman, its
President, any Executive Vice President, any Senior Vice President, any Vice
President, its Treasurer, its Secretary or its General Counsel, and delivered to
the Trustee. Each such certificate shall include the statements provided for in
applicable provisions of the Trust Indenture Act and shall comply with Section
103.
"1093216 Ontario" means 1093216 Ontario Ltd., a corporation
organized under the laws of the Province of Ontario, and its successors and
assigns.
"1443358 Ontario" means 1443358 Ontario Inc., a corporation
organized under the laws of the Province of Ontario, and its successors and
assigns.
"Operating Cash Flow" means, for any period, all as determined on a
Consolidated basis in accordance with GAAP (i) the net income or loss of the
Company and its Restricted Subsidiaries for such period, adjusted, to the extent
included in calculating such net income or loss, by excluding (a) any gain or
loss attributable to the sale, conversion or other disposition of assets other
than in the ordinary course of business, (b) any gains resulting from the
write-up of assets and any loss resulting from the write-down of assets, (c) any
gain or loss on the repurchase or redemption of any securities (including in
connection with the early retirement or defeasance of any Debt), (d) any foreign
exchange gain or loss, (e) any other extraordinary, non-recurring or unusual
items incurred by the Company or any Restricted Subsidiary and (f) all income or
losses of Unrestricted Subsidiaries and Persons (other than Subsidiaries)
accounted for by the Company using the equity method of accounting, except to
the extent of cash dividends, cash interest or other cash distributions received
directly or indirectly from any such Unrestricted Subsidiary or Person, plus
(ii) all amounts deducted in making the calculation pursuant to clause (i) for
interest expense and other financing costs, depreciation and amortization, all
Management Fees and all Income Taxes, whether or not deferred, applicable to
such period, less (iii) the aggregate amount of Management Fees (including
Deferred Management Fees) actually paid in such period; provided that such
deduction shall not be required to the extent that such Management Fees
(including Deferred Management Fees) are designated by the Company to be a
Restricted Payment. For purposes of clarification, the components of "Operating
Cash Flow" listed above shall be determined by including the accounts of the
Company, any Restricted Subsidiary and any partnership, the beneficial interests
in which are controlled (in accordance with GAAP) by the Company or any such
Restricted Subsidiary.
12
For purposes of calculating Operating Cash Flow for the fiscal
quarter most recently completed prior to any date on which an action is taken
that requires a calculation of the Consolidated Debt to Annualized Operating
Cash Flow Ratio or Consolidated Senior Debt to Annualized Operating Cash Flow
Ratio, (1) any Person that is a Restricted Subsidiary on such date (or would
become a Restricted Subsidiary in connection with the transaction that requires
the determination of such ratio) shall be deemed to have been a Restricted
Subsidiary at all times during such fiscal quarter, (2) any Person that is not a
Restricted Subsidiary on such date (or would cease to be a Restricted Subsidiary
in connection with the transaction that requires the determination of such
ratio) shall be deemed not to have been a Restricted Subsidiary at any time
during such fiscal quarter and (3) if the Company or any Restricted Subsidiary
shall have in any manner acquired or disposed of any operating business during
or subsequent to the most recently completed fiscal quarter, such calculation
shall be made on a pro forma basis on the assumption that such acquisition or
disposition had been completed on the first day of such completed fiscal
quarter.
"Opinion of Counsel" means a written opinion of counsel, who may be
counsel for the Company, and who shall be acceptable to the Trustee. Each such
opinion shall include the statements provided for in applicable provisions of
the Trust Indenture Act and shall comply with Section 103.
"Outstanding" when used with respect to Securities means, as of the
date of determination, all Securities theretofore authenticated and delivered
under this Indenture, except:
(a) Securities theretofore canceled by the Trustee or delivered to
the Trustee for cancellation;
(b) Securities, or portions thereof, for whose payment, redemption
or purchase money in the necessary amount has been theretofore deposited
with the Trustee or any Paying Agent (other than the Company) in trust or
set aside and segregated in trust by the Company (if the Company shall act
as its own Paying Agent) for the Holders of such Securities; provided that
if such Securities are to be redeemed, notice of such redemption has been
duly given pursuant to this Indenture or provision therefor satisfactory
to the Trustee has been made;
(c) Securities, except to the extent provided in Sections 402 and
403, with respect to which the Company has effected defeasance or covenant
defeasance as provided in Article Four; and
(d) Securities in exchange for or in lieu of which other Securities
have been authenticated and delivered pursuant to this Indenture, other
than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Securities are
held by a bona fide purchaser in whose hands the Securities are valid
obligations of the Company;
13
provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Securities have given any request, demand,
direction, consent or waiver hereunder, Securities owned by the Company, or any
other obligor upon the Securities or any Affiliate of the Company or such other
obligor, shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, direction, consent or waiver, only Securities which the Trustee
knows to be so owned shall be so disregarded. Securities so owned which have
been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee's right so to act
with respect to such Securities and that the pledgee is not the Company or any
other obligor upon the Securities or any Affiliate of the Company or such other
obligor.
"Paying Agent" means any Person authorized by the Company to pay the
principal of (or premium, if any) or interest on any Securities on behalf of the
Company.
"Permitted Debt" means:
(i) Debt under any bank credit facility in an aggregate principal
amount not to exceed Cdn$1,200,000,000 at any time outstanding;
(ii) Debt under one or more operating credit facilities in an
aggregate principal amount not to exceed Cdn$10,000,000 in the aggregate
at any time outstanding;
(iii) Debt, not covered by any other clause of this definition,
outstanding on the date of this Indenture, including (but not limited to)
Debt under the Existing Senior Secured Second Priority Securities and the
Existing Senior Subordinated Guaranteed Debentures;
(iv) Debt under the Securities;
(v) any amendment or refinancing of any Permitted Debt referred to
in clauses (i) through (iv) above or any successive amendment or
refinancing thereof, including any such amendment or refinancing (x)
extending the maturity of all or any portion of the Debt thereunder and
(y) adding additional borrowers or guarantors thereunder or changing the
borrowers or guarantors thereunder; provided that such amendment or
refinancing (or successive amendment or refinancing) shall constitute
Permitted Debt only (A) to the extent that it does not result in an
increase in the aggregate principal amount of such Permitted Debt, (B) if
it does not have the effect of shortening the then aggregate average
weighted maturity of all Permitted Debt outstanding or committed to be
outstanding (taking into account the effect of substantially
contemporaneous amendments or refinancings of other Permitted Debt) and
(C) if the Debt to be amended or refinanced is Debt of the Company or any
Restricted Subsidiary that is subordinated in right of payment to the
Securities or the senior indebtedness of such Restricted Subsidiary, the
new Debt is subordinated in right of payment to
14
the Securities or the senior indebtedness of such Restricted Subsidiary at
least to the same extent as the Debt to be amended or refinanced; and
(vi) Debt not covered by any of the foregoing clauses of this
definition not to exceed an aggregate principal amount at any time
outstanding of Cdn$100,000,000.
"Permitted Distributions" means:
(i) so long as no Default or Event of Default has occurred and is
continuing or would thereby result:
(A) payments on Inter-Company Subordinated Debt;
(B) payments of any kind from the Company or any of the
Restricted Subsidiaries to any one of the other of them;
(C) payments of dividends and other distributions on shares of
the Company's Capital Stock in the form of Inter-Company Deeply
Subordinated Debt, Excluded Securities or Existing Excluded Assets;
(D) the payment of any dividend or other distribution within
60 days after the date of declaration thereof, if at such
declaration date such dividend would not have been prohibited by
Section 1010;
(E) the redemption, repurchase, defeasance or other
acquisition or retirement for value of Debt of the Company or any
Restricted Subsidiary, that is subordinated in right of payment to
the Securities or the senior indebtedness of such Restricted
Subsidiary, as the case may be, provided that such Debt (a) has a
final maturity before the final Stated Maturity of the Securities
and (b) such Debt is not Debt that was issued on or before June 19,
2003, or Debt constituting an amendment or refinancing (including
any successive amendment or refinancing) of Debt that was issued on
or before June 19, 2003 (other than, in each case, with respect to
clauses (a) and (b), the Existing Senior Subordinated Guaranteed
Debentures);
(F) the redemption, repurchase, defeasance or other
acquisition or retirement for value of Debt of the Company or any
Restricted Subsidiary that is subordinated in right of payment to
the Securities or the senior indebtedness of such Restricted
Subsidiary, as the case may be (other than any such Debt covered by
the preceding clause (E), which may be redeemed, repurchased,
defeased or otherwise acquired or retired for value in any manner,
as provided in the preceding clause (E)), in exchange for (including
any such exchange pursuant to the exercise of a conversion right or
privilege in connection with which cash is paid in lieu of the
issuance of fractional shares or scrip), or out of the proceeds of a
substantially concurrent issue and sale (other than to a Restricted
15
Subsidiary) of, either (a) Capital Stock of the Company (other than
Disqualified Stock) or Inter-Company Deeply Subordinated Debt of the
Company or Excluded Securities of the Company or (b) Debt of the
Company or such Restricted Subsidiary that is subordinated in right
of payment to the Securities or the senior indebtedness of such
Restricted Subsidiary, as the case may be, at least to the same
extent as the Debt that is redeemed, repurchased, defeased or
otherwise acquired or retired for value; provided that, in the case
of this clause (b), such transaction shall not have the effect of
shortening the then aggregate average weighted maturity of all Debt
of the Company or such Restricted Subsidiary that is subordinated in
right of payment to the Securities or the senior indebtedness of
such Restricted Subsidiary, as the case may be (taking into account
the effect of substantially contemporaneous amendments or
refinancings of other Debt subordinated in right of payment to the
Securities or the senior indebtedness of such Restricted Subsidiary,
as the case may be); and
(G) the payment of any amount of Management Fees (including
Deferred Management Fees) that has not been designated as a
Restricted Payment and is therefore deducted when determining
Operating Cash Flow; and
(ii) payments made in the ordinary course of business and on
commercially reasonable terms in regard to fixed assets and/or operating
expenses and operating and capital leases pursuant to sharing and/or
service agreements with Affiliates of the Company.
For the purposes of this Indenture, the fact that a transaction is
listed in the foregoing definition of Permitted Distributions shall not be
deemed to indicate that such transaction constitutes a Restricted Payment.
"Permitted Investment" means:
(i) Investments by the Company or any of the Restricted Subsidiaries
in any one of the other of them;
(ii) Investments in the Securities;
(iii) Investments in assets owned or used in the ordinary course of
business;
(iv) Temporary Cash Investments;
(v) Investments for which the payment is made using Excluded Assets,
Excluded Securities, Capital Stock of the Company (other than Disqualified
Stock) or Inter-Company Deeply Subordinated Debt;
16
(vi) direct or indirect loans to employees, or to a trustee for the
benefit of such employees, of the Company or any Restricted Subsidiary in
an aggregate amount outstanding at any time not exceeding Cdn$25,000,000;
(vii) Investments by the Company or any Restricted Subsidiary in a
Person, if as a result of such Investment (A) such Person becomes a
Restricted Subsidiary or (B) such Person is merged, consolidated or
amalgamated with or into, or transfers or conveys substantially all of its
assets to, or is liquidated or wound-up into, the Company or a Restricted
Subsidiary; and
(viii) other Investments that do not exceed Cdn$25,000,000 at any
time outstanding.
"Permitted Restricted Payment" means payments in cash in an amount
equal to the compound portion of interest on any Inter-Company Deeply
Subordinated Debt.
"Person" means any individual, corporation, partnership, joint
venture, limited liability company, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof, or any other entity.
"Pledge Agreement" means the agreement between the Company and the
Trustee dated as of June 19, 2003 substantially in the form attached as Exhibit
C hereto, pursuant to which the Company has pledged the Trust Bond to and in
favor of the Trustee for and on behalf of the Trustee and each of the Holders.
"Predecessor Security" of any particular Security means every
previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 308 in exchange for a
mutilated security or in lieu of a lost, destroyed or stolen Security shall be
deemed to evidence the same debt as the mutilated, lost, destroyed or stolen
Security.
"Preferred Stock" means, with respect to any Person, any and all
shares, interests, participations or other equivalents (however designated) of
such Person's preferred or preference stock whether now outstanding or issued
after the date of this Indenture, and includes, without limitation, all classes
and series of preferred or preference stock.
"Principal Property" means, as of any date of determination, any
cable system and equipment related to operating and monitoring any cable system
and any equipment related to distributing and offering any of the products and
services offered by the Company and its Restricted Subsidiaries and any land,
land improvements, building and associated laboratory and office constituting a
manufacturing, development, warehouse, service, office or operating facility
owned by or leased to the Company or a Restricted Subsidiary, located within
Canada and having an acquisition cost plus capitalized improvements in excess of
0.25% of Consolidated Net Tangible Assets as of
17
such date of determination, other than any such property (i) which the Board of
Directors determines is not of material importance to the Company and its
Restricted Subsidiaries taken as a whole, (ii) which is not used in the ordinary
course of business or (iii) in which the interest of the Company and all its
Subsidiaries does not exceed 50%.
"Purchase Agreement" means the Purchase Agreement among the Company
and the Initial Purchasers named therein, dated as of June 16, 2003, relating to
the sale of the Securities.
"Purchase Money Obligations" means, with respect to any Person,
obligations, other than Capital Lease Obligations, incurred or assumed in the
ordinary course of business in connection with the purchase of property to be
used in the business of such Person.
"QIB" means a Qualified Institutional Buyer pursuant to Rule 144A.
"Quotation Agent" means Citigroup Global Markets Inc. or such other
Reference Treasury Dealer appointed by the Company.
"Rating Agencies" means S&P, Moody's and Fitch IBCA, and each of
such Rating Agencies is referred to individually as a "Rating Agency".
"Rating Date" means the date which is 90 days prior to the earlier
of (i) a Change in Control and (ii) public notice of the occurrence of a Change
in Control or of the intention of the Company to effect a Change in Control.
"Rating Decline" means the occurrence of the following on, or within
90 days after, the date of public notice of the occurrence of a Change in
Control or of the intention by the Company to effect a Change in Control (which
period shall be extended so long as the rating of the Securities is under
publicly announced consideration for possible downgrade by any of the Rating
Agencies): (a) in the event the Securities are assigned an Investment Grade
Rating by at least two of the three Rating Agencies on the Rating Date, the
rating of the Securities by at least two of the three Rating Agencies shall be
below an Investment Grade Rating; or (b) in the event the Securities are rated
below an Investment Grade Rating by at least two of the three Rating Agencies on
the Rating Date, the rating of the Securities by at least two of the three
Rating Agencies shall be decreased by one or more gradations (including
gradation within rating categories as well as between rating categories).
"RCI" means Rogers Communications Inc., a corporation continued
under the laws of the Province of British Columbia, and its successors and
assigns.
"Redemption Date", when used with respect to any Securities to be
redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.
"Redemption Price", when used with respect to any Security to be
redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.
18
"Reference Treasury Dealer" means (1) Citigroup Global Markets Inc.
or its successor; provided, however, that if it shall cease to be a primary U.S.
Government securities dealer in New York City (a "Primary Treasury Dealer"), the
Company shall substitute for it another Primary Treasury Dealer; and (2) any
other Primary Treasury Dealer selected by the Company.
"Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Reference Treasury Dealer, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted by the Reference Treasury Dealer at 5:00 p.m. on the third Business Day
preceding the Redemption Date.
"Registration Rights Agreement" means the Registration Rights
Agreement among the Company and the Initial Purchasers named therein, dated as
of June 19, 2003, relating to the Securities.
"Registration Statement" means the Registration Statement as defined
in the Registration Rights Agreement.
"Regular Record Date" for the interest payable on any Interest
Payment Date means the April 15 or October 15 (whether or not a Business Day),
as the case may be, next preceding such Interest Payment Date.
"Regulation S" means Regulation S under the Securities Act.
"Responsible Officer", when used with respect to the Trustee, means
the chairman or any vice-chairman of the board of directors, the chairman or
vice-chairman of the executive committee of the board of directors, the
president, any vice president, any assistant vice president, the secretary, any
assistant secretary, the treasurer, any assistant treasurer, the cashier, any
assistant cashier, any trust officer or assistant trust officer, the controller
and any assistant controller or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject.
"Restricted Subsidiary" means (a) prior to the Release Date, any
Subsidiary that is a "Designated Subsidiary" under the Deed of Trust, and
includes any Unrestricted Subsidiary or other Person, in either case, that
becomes a Restricted Subsidiary in accordance with Section 1015 and excludes any
Person (including any of the foregoing), that ceases to be a Restricted
Subsidiary in accordance with Section 1015 or (b) on or after the Release Date,
any Subsidiary of the Company other than an Unrestricted Subsidiary. As of the
date hereof, the Restricted Subsidiaries of the Company are: Rogers Cablesystems
Ontario Limited, Rogers Ottawa Limited/Limitee, Rogers Cable Atlantic Inc. and
Rogers Cablesystems Georgian Bay Limited.
19
"Rogers Investments" means Rogers Cablesystems Investments Inc., a
corporation organized under the laws of Ontario, and its successors and assigns.
"Rogers Entities" means RCI and its Affiliates.
"Rule 144A" means Rule 144A under the Securities Act.
"S&P" means Standard & Poor's Ratings Group, a division of McGraw
Hill, Inc., or any successor to the rating agency business thereof.
"Sale and Leaseback Transaction" means any arrangement with any
Person providing for the leasing by the Company or any Restricted Subsidiary of
any Principal Property (whether such Principal Property is now owned or
hereafter acquired) that has been or is to be sold or transferred by the Company
or such Restricted Subsidiary to such Person, other than (i) temporary leases
for a term, including renewals at the option of the lessee, of not more than
three years; (ii) leases between the Company and a Restricted Subsidiary or
between Restricted Subsidiaries; and (iii) leases of Principal Property executed
by the time of, or within 180 days after the latest of, the acquisition, the
completion of construction or improvement (including any improvements on
property which will result in such property becoming Principal Property), or the
commencement of commercial operation of such Principal Property.
"Secured Debt" means:
(a) Debt of the Company or any Restricted Subsidiary secured by any
Lien upon any Principal Property or the stock or Debt of a Restricted
Subsidiary; or
(b) any conditional sale or other title retention agreement covering
any Principal Property or Restricted Subsidiary;
but does not include any Debt secured by any Lien or any conditional sale or
other title retention agreement:
(1) incurred or entered into on or after the Release Date to
finance the acquisition, improvement or construction of such
property and either secured by Purchase Money Obligations or Liens
placed on such property within 180 days of acquisition, improvement
or construction and securing Debt not to exceed Cdn$50,000,000 at
any time outstanding;
(2) on Principal Property or the stock or Debt of Restricted
Subsidiaries and existing at the time of acquisition of the
property, stock or Debt;
(3) owing to the Company or any other Restricted Subsidiary;
and
20
(4) existing at the time a corporation becomes a Restricted
Subsidiary;
each of (1) through (4) above being referred to as "Exempted Secured Debt".
"Securities Act" means the United States Securities Act of 1933, as
amended, and as in force at the date as of which this instrument was executed.
"Security" and "Securities" have the meaning set forth in the first
recital of this Indenture and more particularly means any Securities
authenticated and delivered under this Indenture. For all purposes of this
Indenture, the term
"Securities" shall include any Additional Securities that may be
issued under a supplemental indenture and any Exchange Securities to be issued
and exchanged for any Initial Securities in accordance with the Exchange Offer
provided for in the Registration Rights Agreement and this Indenture and, for
purposes of this Indenture, all Initial Securities, Additional Securities and
Exchange Securities shall vote together as one series of Securities under this
Indenture.
"Senior Debt" means any Debt of the Company or any Restricted
Subsidiary other than Debt the repayment of which or any security for which has
been expressly subordinated to the obligations under the Securities or to the
senior indebtedness of such Restricted Subsidiary, as the case may be.
"Shelf Registration Statement" means the Shelf Registration
Statement as defined in the Registration Rights Agreement.
"Solv" means Solv Signals Limited, a corporation organized under the
laws of Ontario, and its successors and assigns.
"Special Record Date" means a date fixed by the Trustee for the
payment of any Defaulted Interest pursuant to Section 309.
"Stated Maturity", when used with respect to any Security or any
installment of interest thereon, means the date specified in such Security as
the fixed date on which the principal of such Security or such installment of
interest is due and payable.
"Subordination Agreement" means the subordination agreement among
the Company, the Restricted Subsidiaries, the Trustee, and JPMorgan Chase Bank,
as trustee for the holders of the Existing Senior Subordinated Guaranteed
Debentures (the
"Subordinated Debenture Trustee"), in the form of Exhibit G attached
hereto.
"Subsidiary" means any firm, partnership, corporation or other legal
entity in which the Company, the Company and one or more Subsidiaries or one or
more Subsidiaries owns, directly or indirectly, a majority of the Voting Shares
or has, directly or indirectly, the right to elect a majority of the board of
directors, if it is a corporation, or the right to make or control its
management decisions, if it is some other Person.
21
"Tangible Assets" means, at any date, the gross book value as shown
by the accounting books and records of any Person of all its property both real
and personal, less (i) the net book value of all its licenses, patents, patent
applications, copyrights, trademarks, trade names, goodwill, non-compete
agreements or organizational expenses and other like intangibles, (ii)
unamortized Debt discount and expenses, (iii) all reserves for depreciation,
obsolescence, depletion and amortization of its properties and (iv) all other
proper reserves which in accordance with GAAP should be provided in connection
with the business conducted by such Person.
"Temporary Cash Investments" means any of the following:
(i) Investments in marketable, direct obligations issued or
guaranteed by Canada or the United States, or of any governmental entity
or agency or political subdivision thereof, maturing within 365 days of
the date of purchase;
(ii) Investments in commercial paper issued by corporations, each of
which shall have a consolidated net worth of at least Cdn$100,000,000 or
the equivalent amount in United States Dollars, maturing within 180 days
from the date of the original issue thereof, and rated "R-1 low" or better
by the Dominion Bond Rating Service Limited, "P-2" or better by Moody's,
or "A-2" or better by S&P or an equivalent rating by any other recognized
rating agency; or
(iii) Investments in certificates of deposit issued or acceptances
accepted by or guaranteed by a bank to which the Bank Act (Canada) applies
or by any company licensed to carry on the business of a trust company in
one or more provinces of Canada or by any bank or trust company organized
under the laws of the United States or any state thereof or the District
of Columbia, in each case having capital, surplus and undivided profits
totaling more than Cdn$100,000,000 or the equivalent amount in United
States Dollars, maturing within 365 days of the date of purchase.
"3782 Investments" means 3782 Investments Limited, a corporation
organized under the laws of British Columbia, and its successors and assigns.
"Tranche A Credit Facility" means any tranche A credit facility
under a bank credit facility.
"Tranche A-Type Debt" means any Debt of the Company secured by the
pledge of a Deed of Trust Bond which ranks in right of payment, as among Senior
Secured Bondholders (as defined in the Deed of Trust), prior to or pari passu
with Debt under any Tranche A Credit Facility, whether or not any Debt under any
Tranche A Credit Facility exists at the time of creation of such Tranche A-Type
Debt.
"Trust Bond" means a senior secured bond in the principal amount of
US$700,000,000 issued by the Company under the Deed of Trust and pledged to and
in favor of the Trustee for and on behalf of the Trustee and each of the Holders
pursuant to the Pledge Agreement.
22
"Trust Estate" means the property which is covered or intended to be
covered by the Lien of the Pledge Agreement as collateral security for the
Securities.
"Trust Indenture Act" means the United States Trust Indenture Act of
1939, as amended, and as in force at the date as of which this instrument was
executed, except as provided in Section 907.
"Trustee" means the Person named as the "Trustee" in the first
paragraph of this Indenture, until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean such successor Trustee.
"U.S. Dollars", "United States Dollars", "U.S.$" and the symbol "$"
each mean lawful currency of the United States of America.
"Unrestricted Subsidiary" means
(a) prior to the Release Date, any Subsidiary that is not a
Restricted Subsidiary and includes any Restricted Subsidiary that becomes
an Unrestricted Subsidiary in accordance with Section 1015; or
(b) on or after the Release Date, (i) any Subsidiary of the Company
that at the time of determination shall be designated an Unrestricted
Subsidiary in accordance with Section 1015 and (ii) any Subsidiary of an
Unrestricted Subsidiary.
"Voting Shares" means any Capital Stock having voting power under
ordinary circumstances to vote in the election of a majority of the directors of
a corporation (irrespective of whether or not at the time stock of any other
class or classes shall have or might have voting power by reason of the
happening of any contingency).
SECTION 102. OTHER DEFINITIONS.
DEFINED
DEFINED TERM IN SECTION
- ------------ ----------
Act................................................................................... 105
Additional Amounts.................................................................... 1021
Bankruptcy Law........................................................................ 501
Bankruptcy Order...................................................................... 501
Base Currency......................................................................... 116
Change in Control..................................................................... 501
Change in Control Offer............................................................... 516
Change in Control Purchase Date....................................................... 516
Change in Control Purchase Notice..................................................... 516
Change in Control Purchase Price...................................................... 516
Change in Control Triggering Event.................................................... 501
Computation Period.................................................................... 1010
23
Consolidated Gross Revenues........................................................... 1013
Covenant Defeasance................................................................... 403
Covered Net Cash Proceeds............................................................. 1016
Custodian............................................................................. 501
Defaulted Interest.................................................................... 309
defeasance............................................................................ 402
Deficiency............................................................................ 1016
Edward S. Rogers...................................................................... 501
Excess Proceeds....................................................................... 1016
Excluded Holder....................................................................... 1021
Family Percentage Holding............................................................. 501
Fifth Anniversary..................................................................... 1016
First Currency........................................................................ 117
Global Securities..................................................................... 201
incorporated provision................................................................ 108
judgment currency..................................................................... 116
Member of the Rogers Family........................................................... 501
Notice of Default..................................................................... 501
Offer................................................................................. 1016
Offer Date............................................................................ 1016
Offered Price......................................................................... 1016
Other Currency........................................................................ 117
Parent Company........................................................................ 801
Permitted Residuary Beneficiary....................................................... 501
Perpetuity Date....................................................................... 501
Private Placement Legend.............................................................. 202
Qualified Persons..................................................................... 501
Qualifying Trust...................................................................... 501
rate(s) of exchange................................................................... 116
Regulation S Global Securities........................................................ 201
Release Date.......................................................................... 1026
Relevant Person....................................................................... 119
Restricted Global Securities.......................................................... 201
Restricted Payment.................................................................... 1010
Security Factor....................................................................... 1016
Security Register..................................................................... 305
Security Registrar.................................................................... 305
Suspended Covenants................................................................... 1025
Suspension Period..................................................................... 1025
Taxes................................................................................. 1021
25% Excess Proceeds................................................................... 1016
U.S. Government Obligations........................................................... 404
In addition, the terms "Bondholders' Resolution", "Designated
Subsidiary", "Mortgaged Property", "Senior Secured Bondholders", "Specifically
Mortgaged Property" and "Unanimous Bondholders' Resolution" shall have the
respective meanings ascribed thereto in the Deed of Trust as in effect on the
date hereof.
24
SECTION 103. COMPLIANCE CERTIFICATES AND OPINIONS.
Upon any application or request by the Company to the Trustee to
take any action under any provision of this Indenture, the Company shall furnish
to the Trustee an Officers' Certificate stating that all conditions precedent,
if any, provided for in this Indenture (including any covenant compliance with
which constitutes a condition precedent) relating to the proposed action have
been complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, except
that, in the case of any such application or request as to which the furnishing
of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate or
opinion need be furnished.
Every certificate or opinion (other than the certificates required
by Section 1022) with respect to compliance with a condition or covenant
provided for in this Indenture shall include:
(a) a statement that each individual signing such certificate or
opinion has read such covenant or condition and the definitions herein
relating thereto;
(b) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
certificate or opinion are based;
(c) a statement that, in the opinion of each such individual, he has
made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or
condition has been complied with or satisfied; and
(d) a statement as to whether, in the opinion of each such
individual, such covenant or condition has been complied with or
satisfied.
SECTION 104. FORM OF DOCUMENTS DELIVERED TO THE TRUSTEE.
In any case where several matters are required to be certified by,
or covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an officer of the Company may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or
25
opinion of, or representations by, an officer or officers of the Company stating
that the information with respect to such factual matters is in the possession
of the Company, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
such matters are erroneous.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
SECTION 105. ACTS OF HOLDERS.
(a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by their
agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly
required, to the Company. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to
as the "Act" of the Holders signing such instrument or instruments. Proof
of execution of any such instrument or of a writing appointing any such
agent shall be sufficient for any purpose of this Indenture and (subject
to Trust Indenture Act Section 315) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.
(b) The fact and date of the execution by any Person of any such
instrument or writing may be proved in any reasonable manner which the
Trustee deems sufficient.
(c) The ownership of Securities shall be proved by the Security
Register.
(d) If the Company shall solicit from the Holders any request,
demand, authorization, direction, notice, consent, waiver or other Act,
the Company may, at its option, by or pursuant to a Board Resolution, fix
in advance a record date for the determination of the Holders entitled to
give such request, demand, authorization, direction, notice, consent,
waiver or other Act, but the Company shall have no obligation to do so.
Notwithstanding Trust Indenture Act Section 316(c), any such record date
shall be the record date specified in or pursuant to such Board
Resolution, which shall be a date not more than 30 days prior to the first
solicitation of Holders generally in connection therewith and no later
than the date such solicitation is completed. If such a record date is
fixed, such request, demand, authorization, direction, notice, consent,
waiver or other Act may be given before or after such record date, but
only the Holders of record at the close of business on such record date
shall be deemed to be Holders for the purposes of determining whether
Holders of the requisite proportion of Securities then Outstanding have
authorized or agreed or consented to such request, demand,
26
authorization, direction, notice, consent, waiver or other Act, and for
this purpose the Securities then Outstanding shall be computed as of such
record date; provided that no such request, demand, authorization,
direction, notice, consent, waiver or other Act by the Holders on such
record date shall be deemed effective unless it shall become effective
pursuant to the provisions of this Indenture not later than eleven months
after the record date.
(e) Any request, demand, authorization, direction, notice,
consent, waiver or other Act by the Holder of any Security shall bind
every future Holder of the same Security or the Holder of every Security
issued upon the registration of transfer thereof or in exchange therefor
or in lieu thereof, in respect of anything done, suffered or omitted to be
done by the Trustee, any Paying Agent or the Company in reliance thereon,
whether or not notation of such action is made upon such Security.
(f) For all purposes of this Indenture, all Initial Securities,
Exchange Securities and any Additional Securities shall vote together as
one series of Securities under this Indenture.
SECTION 106. NOTICES, ETC., TO TRUSTEE AND COMPANY.
Any request, demand, authorization, direction, notice, consent,
waiver or Act of Holders or other document provided or permitted by this
Indenture to be made upon, given or furnished to, or filed with,
(a) the Trustee by any Holder or the Company shall be sufficient
for every purpose hereunder if made, given, furnished or delivered, in
writing, to or with the Trustee at its Corporate Trust Office, Attention:
Institutional Trust Services; and
(b) the Company by the Trustee or any Holder shall be sufficient
for every purpose hereunder (unless otherwise herein expressly provided)
if made, given, furnished or delivered in writing to the Company to 333
Bloor Street East, 10th Floor, Toronto, Ontario, Canada, M4W 1G9,
Attention: Vice-President, Treasurer, fax: 416-935-3598, with a copy to
the Vice-President, General Counsel and Secretary, fax: 416-935-3548, or,
in either case, at any other address previously furnished in writing to
the Trustee by the Company.
SECTION 107. NOTICE TO HOLDERS; WAIVER.
Where this Indenture provides for notice to Holders of any event,
such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to each Holder
affected by such event, at its address as it appears in the Security Register,
not later than the latest date, and not earlier than the earliest date,
prescribed for the giving of such notice. In any case where notice to Holders is
given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. Any notice mailed to a Holder in the
aforesaid
27
manner shall be conclusively deemed to have been received by such Holder when
mailed whether or not actually received by such Holder. Where this Indenture
provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and
such waiver shall be the equivalent of such notice. Waivers of notice by Holders
shall be filed with the Trustee, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver.
In case by reason of the suspension of regular mail service or by
reason of any other cause, it shall be impracticable to mail notice of any event
as required by any provision of this Indenture, then any method of giving such
notice as shall be satisfactory to the Trustee shall be deemed to be a
sufficient giving of such notice.
SECTION 108. CONFLICT OF ANY PROVISION OF INDENTURE WITH THE TRUST
INDENTURE ACT.
Each of the Trustee and the Company agrees to comply with all
provisions of the Trust Indenture Act applicable to or binding upon it in
connection with this Indenture and any action to be taken hereunder. If and to
the extent that any provision of this Indenture limits, qualifies or conflicts
with any mandatory requirement of the Trust Indenture Act, such mandatory
requirement shall prevail. For greater certainty, if and to the extent that any
provision of this Indenture limits, qualifies or conflicts with the duties
imposed by Sections 310 to 318, inclusive, of the Trust Indenture Act, or
conflicts with any provision (an "incorporated provision") required by or deemed
to be included in this Indenture by operation of such Trust Indenture Act
sections, such imposed duties or incorporated provision shall control.
SECTION 109. EFFECT OF HEADINGS AND TABLE OF CONTENTS.
The Article and Section headings herein and the Table of Contents
are for convenience only and shall not affect the construction hereof.
SECTION 110. SUCCESSORS AND ASSIGNS.
All covenants and agreements in this Indenture by the Company shall
bind its successors and assigns, whether so expressed or not.
SECTION 111. SEPARABILITY CLAUSE.
In case any provision in this Indenture or in the Securities shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.
SECTION 112. BENEFITS OF INDENTURE.
Nothing in this Indenture or in the Securities, express or implied,
shall give to any Person (other than the parties hereto and their successors
hereunder, any
28
Paying Agent and the Holders) any benefit or any legal or equitable right,
remedy or claim under this Indenture.
SECTION 113. GOVERNING LAW.
This Indenture and the Securities shall be governed by and construed
in accordance with the laws of the State of New York. Upon the issuance of the
Exchange Securities or the effectiveness of the Shelf Registration Statement,
this Indenture shall be subject to the provisions of the Trust Indenture Act
that are required or deemed to be part of this Indenture and shall, to the
extent applicable, be governed by such provisions.
SECTION 114. LEGAL HOLIDAYS.
In any case where any Interest Payment Date, Redemption Date, date
established for payment of Defaulted Interest pursuant to Section 309, Stated
Maturity, Change in Control Purchase Date or Offer Date with respect to any
Security shall not be a Business Day, then (notwithstanding any other provision
of this Indenture or of the Securities) payment of interest or principal (and
premium, if any) need not be made on such date, but may be made on the next
succeeding Business Day with the same force and effect as if made on the
Interest Payment Date, Redemption Date, date established for payment of
Defaulted Interest pursuant to Section 309, Stated Maturity, Change in Control
Purchase Date or Offer Date and no interest shall accrue with respect to such
payment for the period from and after such Interest Payment Date, Redemption
Date, date established for payment of Defaulted Interest pursuant to Section
309, Stated Maturity, Change in Control Purchase Date or Offer Date, as the case
may be, to the next succeeding Business Day.
SECTION 115. AGENT FOR SERVICE; SUBMISSION TO JURISDICTION; WAIVER
OF IMMUNITIES.
By the execution and delivery of this Indenture, the Company (i)
acknowledges that it has, by separate written instrument, irrevocably designated
and appointed CT Corporation System (and any successor entity) ("CT
Corporation"), 111 Eighth Avenue, 13th Floor, New York, New York 10011, as its
authorized agent upon which process may be served in any suit, action or
proceeding arising out of or relating to the Securities or this Indenture that
may be instituted in any federal or state court in the State of New York,
Borough of Manhattan, or brought under federal or state securities laws or
brought by the Trustee (whether in its individual capacity or in its capacity as
Trustee hereunder), and acknowledges that CT Corporation has accepted such
designation, (ii) submits to the non-exclusive jurisdiction of any such court in
any such suit or proceeding, and (iii) agrees that service of process upon CT
Corporation and written notice of said service to it (mailed or delivered to its
Vice-President, Treasurer, with a copy to its Vice-President, General Counsel
and Secretary, in each case as specified in Section 106(b) hereof) shall be
deemed in every respect effective service of process upon it in any such suit or
proceeding. The Company further agrees to take any and all action, including the
execution and filing of any and all such documents and instruments, as may be
necessary to continue such designation and appointment of CT
29
Corporation in full force and effect so long as this Indenture shall be in full
force and effect.
To the extent that the Company has or hereafter may acquire any
immunity from jurisdiction of any court or from any legal process (whether
through service of notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) with respect to itself or its property, the
Company hereby irrevocably waives such immunity in respect of its obligations
under this Indenture and the Securities, to the extent permitted by law.
SECTION 116. CONVERSION OF CURRENCY.
The Company covenants and agrees that the following provisions shall
apply to conversion of currency in the case of the Securities and this
Indenture:
(a) (i) If, for the purpose of obtaining judgment in, or enforcing
the judgment of, any court in any country, it becomes necessary to
convert into a currency (the "judgment currency") an amount due in
any other currency (the "Base Currency"), then the conversion shall
be made at the rate of exchange prevailing on the Business Day
before the day on which the judgment is given or the order of
enforcement is made, as the case may be (unless a court shall
otherwise determine).
(ii) If there is a change in the rate of exchange prevailing
between the Business Day before the day on which the judgment is
given or an order of enforcement is made, as the case may be (or
such other date as a court shall determine), and the date of receipt
of the amount due, the Company will pay such additional (or, as the
case may be, such lesser) amount, if any, as may be necessary so
that the amount paid in the judgment currency when converted at the
rate of exchange prevailing on the date of receipt will produce the
amount in the Base Currency originally due.
(b) In the event of the winding-up of the Company at any time
while any amount or damages owing under the Securities and this Indenture,
or any judgment or order rendered in respect thereof, shall remain
outstanding, the Company shall indemnify and hold the Holders and the
Trustee harmless against any deficiency arising or resulting from any
variation in rates of exchange between (1) the date as of which the
equivalent of the amount in U.S. Dollars or Canadian Dollars, as the case
may be, due or contingently due under the Securities and this Indenture
(other than under this Subsection (b)) is calculated for the purposes of
such winding-up and (2) the final date for the filing of proofs of claim
in such winding-up. For the purpose of this Subsection (b), the final date
for the filing of proofs of claim in the winding-up of the Company shall
be the date fixed by the liquidator or otherwise in accordance with the
relevant provisions of applicable law as being the latest practicable date
as at which
30
liabilities of the Company may be ascertained for such winding-up prior to
payment by the liquidator or otherwise in respect thereto.
(c) The obligations contained in Subsections (a)(ii) and (b) of
this Section 116 shall constitute obligations of the Company separate and
independent from its other respective obligations under the Securities and
this Indenture, shall give rise to separate and independent causes of
action against the Company, shall apply irrespective of any waiver or
extension granted by any Holder or the Trustee or any of them from time to
time and shall continue in full force and effect notwithstanding any
judgment or order or the filing of any proof of claim in the winding-up of
the Company for a liquidated sum in respect of amounts due hereunder
(other than under Subsection (b) above) or under any such judgment or
order. Any such deficiency as aforesaid shall be deemed to constitute a
loss suffered by the Holders or the Trustee, as the case may be, and no
proof or evidence of any actual loss shall be required by the Company or
the liquidator or otherwise or any of them. In the case of Subsection (b)
above, the amount of such deficiency shall not be deemed to be reduced by
any variation in rates of exchange occurring between the said final date
and the date of any liquidating distribution.
(d) The term "rate(s) of exchange" shall mean the rate of exchange
quoted by The Toronto-Dominion Bank at its central foreign exchange desk
in its head office in Toronto at 12:00 noon (Toronto, Ontario time) for
purchases of the Base Currency with the judgment currency other than the
Base Currency referred to in Subsections (a) and (b) above and includes
any premiums and costs of exchange payable.
(e) The Trustee shall have no duty or liability with respect to
monitoring or enforcing this Section 116.
SECTION 117. CURRENCY EQUIVALENT.
Except as provided in Section 116, for purposes of the construction
of the terms of this Indenture or of the Securities, in the event that any
amount is stated herein in the currency of one nation (the "First Currency"), as
of any date such amount shall also be deemed to represent the amount in the
currency of any other relevant nation (the "Other Currency") which is required
to purchase such amount in the First Currency at the rate of exchange quoted by
The Toronto-Dominion Bank at its central foreign exchange desk in its head
office in Toronto at 12:00 noon (Toronto, Ontario time) on the date of
determination.
SECTION 118. NO RECOURSE AGAINST OTHERS.
A director, officer, employee or stockholder, as such, of the
Company shall not have any liability for any obligations of the Company under
the Securities or this Indenture or for any claim based on, in respect of or by
reason of such obligations or
31
their creation. Each Holder by accepting any of the Securities waives and
releases all such liability.
SECTION 119. RELIANCE ON FINANCIAL DATA.
In computing any amounts under this Indenture,
(i) to the extent relevant in computing any amounts under this
Indenture, the Company shall use audited financial statements of the
Company, its Subsidiaries, any Person that would become a Subsidiary in
connection with the transaction that requires the computation and any
Person from which the Company or a Subsidiary has acquired an operating
business, or is acquiring an operating business in connection with the
transaction that requires the computation (each such Person whose
financial statements are relevant in computing any particular amount, a
"Relevant Person") for the period or portions of the period to which the
computation relates for which audited financial statements are available
on the date of computation and unaudited financial statements and other
current financial data based on the books and records of the Relevant
Person or Relevant Persons, as the case may be, to the extent audited
financial statements for the period or any portion of the period to which
the computation relates are not available on the date of computation, and
(ii) the Company shall be permitted to rely in good faith on the
financial statements and other financial data derived from the books and
records of any Relevant Person that are available on the date of the
computation.
SECTION 120. DOCUMENTS IN ENGLISH.
By common accord, this Indenture, the Securities and all documents
related thereto have been or will be drawn up in the English language solely.
ARTICLE TWO.
SECURITY FORMS
SECTION 201. FORMS GENERALLY.
The Securities and the Trustee's certificate of authentication shall
be in substantially the forms set forth in this Article, with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities,
as evidenced by their execution of the Securities (but which shall not affect
the rights or duties of the Trustee). Any portion of the text of any Security
may be set forth on the reverse thereof, with an appropriate reference thereto
on the face of the Security.
32
The definitive Securities shall be printed, lithographed or engraved
or produced by any combination of these methods or may be produced in any other
manner permitted by the rules of any securities exchange on which the Securities
may be listed, all as determined by the officers executing such Securities, as
evidenced by their execution of such Securities.
Initial Securities offered and sold in reliance on Rule 144A shall
be issued initially in the form of one or more permanent global securities
substantially in the form set forth in this Article (the "Restricted Global
Securities") deposited with the Trustee, as custodian for the Depositary, duly
executed by the Company and authenticated by the Trustee as hereinafter
provided. The aggregate principal amount of the Restricted Global Securities may
from time to time be increased or decreased by adjustments made on the records
of the Depositary or its nominee, or of the Trustee, as custodian for the
Depositary or its nominee, as hereinafter provided.
Initial Securities offered and sold in reliance on Regulation S
shall be issued in the form of one or more permanent global securities in
registered form substantially in the form set forth in this Article (the
"Regulation S Global Securities" and together with the Restricted Global
Securities the "Global Securities"). The Regulation S Global Securities will be
registered in the name of a nominee of the Depositary and deposited with the
Trustee, as custodian of the Depositary, for credit to Euroclear Bank S.A./N.V.,
as operator of the Euroclear System ("Euroclear") and Clearstream Banking,
societe anonyme ("Clearstream, Luxembourg") for the benefit of the Holders. The
aggregate principal amount of the Regulation S Global Security may from time to
time be increased or decreased by adjustments made on the records of the
Depositary or its nominee, or of the Trustee, as custodian for the Depositary or
its nominee, as hereinafter provided.
SECTION 202. RESTRICTIVE LEGENDS.
Unless and until (i) an Initial Security is sold under an effective
Registration Statement or (ii) an Initial Security is exchanged for an Exchange
Security in connection with an effective Registration Statement, in each case as
provided for in the Registration Rights Agreement, each such Restricted Global
Security shall bear the following legend (the "Private Placement Legend") on the
face thereof:
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"). THE HOLDER HEREOF, BY PURCHASING
THIS SECURITY, AGREES FOR THE BENEFIT OF ROGERS CABLE INC. THAT THIS
SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED (X) PRIOR TO
THE SECOND ANNIVERSARY OF THE ISSUANCE HEREOF (OR A PREDECESSOR SECURITY
HERETO) OR (Y) BY ANY HOLDER THAT WAS AN AFFILIATE OF ROGERS CABLE INC. AT
ANY TIME DURING THE THREE MONTHS PRECEDING THE DATE OF SUCH TRANSFER, IN
EITHER CASE OTHER THAN
33
(1) TO ROGERS CABLE INC.,
(2) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO
RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A
(AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF
TRANSFER ON THE REVERSE OF THIS SECURITY),
(3) IN AN OFFSHORE TRANSACTION TO NON-U.S. PERSONS THAT OCCURS
OUTSIDE THE UNITED STATES IN ACCORDANCE WITH REGULATION S UNDER THE
SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE
CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY), PROVIDED THAT
SUCH NON-U.S. PERSONS AGREE NOT TO RESELL OR OTHERWISE TRANSFER THE
SECURITIES IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT,
EXCEPT IN ACCORDANCE WITH APPLICABLE CANADIAN SECURITIES LAWS,
(4) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT (INCLUDING, WITHOUT LIMITATION, TO AN
INSTITUTION THAT IS AN ACCREDITED INVESTOR OR THE EXEMPTION PROVIDED BY
RULE 144 (IF APPLICABLE) UNDER THE SECURITIES ACT), OR
(5) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT,
IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE
OF THE UNITED STATES OR ANY OTHER JURISDICTION AND SUBJECT TO THE RIGHT OF
ROGERS CABLE INC. AND THE TRUSTEE PRIOR TO ANY SUCH SALE, PLEDGE OR OTHER
TRANSFER PURSUANT TO CLAUSE (4) ABOVE TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATES AND OTHER INFORMATION THEY MAY REQUIRE TO CONFIRM
THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS AND THE RIGHT OF
ROGERS CABLE INC. AND THE TRUSTEE PRIOR TO ANY SUCH SALE,
34
PLEDGE OR OTHER TRANSFER PURSUANT TO CLAUSES (1) THROUGH (5) TO REQUIRE
ANY TRANSFER CERTIFICATIONS REQUIRED PURSUANT TO THE INDENTURE GOVERNING
THIS SECURITY.
Each Global Security, whether or not an Initial Security, shall also
bear the following legend on the face thereof:
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO
THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTIONS 306 AND 307
OF THE INDENTURE GOVERNING THIS SECURITY.
35
SECTION 203. FORM OF FACE OF SECURITY.
ROGERS CABLE INC.
6.25% [Exchange]* SENIOR (SECURED) SECOND PRIORITY NOTES
DUE 2013
CUSIP ______
No. U.S.$______
Rogers Cable Inc., a corporation organized under the laws of the
Province of Ontario (herein called the "Company", which term includes any
successor entity under the Indenture hereinafter referred to), for value
received, hereby promises to pay to or registered assigns, the principal sum
of United States Dollars (or such other amount that may from time to time be
indicated on the records of the Trustee as the result of increases or decreases
by adjustments made on the records of the Trustee, as the custodian for DTC,
in accordance with the rules and procedures of DTC) on June 15, 2013, at the
office or agency of the Company referred to below, and to pay interest thereon
on December 15, 2003 and semiannually thereafter, on June 15 and December 15 in
each year, from and including June 19, 2003 or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, at the rate
of 6.25% per annum [subject to adjustment as provided below]**, until the
principal hereof is paid or duly provided for, and (to the extent lawful) to pay
on demand interest on any overdue interest at the rate borne by the Securities
from the date of the Interest Payment Date on which such overdue interest
becomes payable to the date payment of such interest has been made or duly
provided for. The interest so payable, and punctually paid or duly provided for,
on any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the June 1 or December 1 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid or duly provided for, and interest on such
Defaulted Interest at the interest rate borne by the Securities, to the extent
lawful, shall forthwith cease to be payable to the Holder on such Regular Record
Date, and may be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities not less than 10
days prior to such Special Record Date, or may be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture.
[The Holder of this Security is entitled to the benefits of the
Registration Rights Agreement, dated as of June 19, 2003, between the Company
and the Initial
- ----------
* Include only for Exchange Securities.
** Include only for Initial Securities.
36
Purchasers named therein (the "Registration Rights Agreement"). In the event
that (a) neither the Exchange Offer Registration Statement (as such term is
defined in the Registration Rights Agreement) nor a Shelf Registration Statement
(as such term is defined in the Registration Rights Agreement) is filed with the
Securities and Exchange Commission on or prior to the 120th day following the
date of original issue of the Securities, (b) neither the Exchange Offer
Registration Statement nor a Shelf Registration Statement has been declared
effective on or prior to the 180th calendar day following the date of original
issue of the Securities or (c) neither the Exchange Offer (as such term is
defined in the Registration Rights Agreement) is consummated nor a Shelf
Registration Statement is declared effective on or prior to the 210th day
following the date of original issue of the Securities, the interest rate borne
by this Security shall be increased by 0.25% per annum following such 120-day
period in the case of clause (a) above, following such 180-day period in the
case of clause (b) above or following such 210-day period in the case of clause
(c) above. The aggregate amount of such increase from the original interest rate
pursuant to these provisions shall in no event exceed 0.25% per annum. Upon (x)
the filing of either the Exchange Offer Registration Statement or a Shelf
Registration Statement after the 120-day period described in clause (a) above,
(y) the effectiveness of either the Exchange Offer Registration Statement or a
Shelf Registration Statement after the 180-day period described in clause (b)
above or (z) the consummation of the Exchange Offer or the effectiveness of a
Shelf Registration Statement, as the case may be, after the 210-day period
described in clause (c) above, the interest rate borne by this Security from the
date of such filing, effectiveness or consummation, as the case may be, will be
reduced to the interest rate set forth above. The Company shall promptly provide
the Trustee with notice of any change in the interest rate borne by this
Security.]*
PAYMENT OF THE PRINCIPAL OF (AND PREMIUM, IF ANY) AND INTEREST ON
THIS SECURITY WILL BE MADE AT THE OFFICE OR AGENCY OF THE COMPANY MAINTAINED FOR
THAT PURPOSE IN THE CITY OF NEW YORK (WHICH SHALL BE THE CORPORATE TRUST OFFICE
OF THE TRUSTEE, UNLESS THE COMPANY SHALL DESIGNATE AND MAINTAIN SOME OTHER
OFFICE OR AGENCY FOR SUCH PURPOSE), OR AT SUCH OTHER OFFICE OR AGENCY OF THE
COMPANY AS MAY BE MAINTAINED FOR SUCH PURPOSE, IN LAWFUL MONEY OF THE UNITED
STATES OF AMERICA; PROVIDED, HOWEVER, THAT PAYMENT OF INTEREST MAY BE MADE AT
THE OPTION OF THE COMPANY BY CHECK MAILED TO THE ADDRESS OF THE PERSON ENTITLED
THERETO AS SUCH ADDRESS SHALL APPEAR ON THE SECURITY REGISTER; PROVIDED FURTHER
THAT ALL PAYMENTS OF THE PRINCIPAL OF (AND PREMIUM, IF ANY) AND INTEREST ON
SECURITIES, THE HOLDERS OF WHICH HAVE GIVEN WIRE TRANSFER INSTRUCTIONS TO THE
COMPANY OR THE PAYING AGENT AT LEAST 10 BUSINESS DAYS PRIOR TO THE APPLICABLE
PAYMENT DATE AND HOLD AT LEAST U.S.$1,000,000 IN PRINCIPAL AMOUNT OF SECURITIES,
WILL BE REQUIRED TO BE MADE BY WIRE TRANSFER OF IMMEDIATELY AVAILABLE FUNDS TO
THE ACCOUNTS SPECIFIED BY SUCH HOLDERS IN SUCH INSTRUCTIONS. ANY SUCH WIRE
TRANSFER INSTRUCTIONS RECEIVED BY THE COMPANY OR THE PAYING AGENT SHALL REMAIN
IN EFFECT UNTIL REVOKED BY SUCH HOLDER. NOTWITHSTANDING THE FOREGOING, THE FINAL
PAYMENT OF PRINCIPAL SHALL BE PAYABLE ONLY UPON SURRENDER OF THIS SECURITY TO
THE PAYING AGENT.
- ----------
* Include only for Initial Securities.
37
INTEREST ON THIS SECURITY SHALL BE COMPUTED ON THE BASIS OF A YEAR
OF TWELVE 30-DAY MONTHS. FOR THE PURPOSES OF THE INTEREST ACT (CANADA), THE
YEARLY RATE OF INTEREST WHICH IS EQUIVALENT TO THE RATE PAYABLE HEREUNDER IS THE
RATE PAYABLE MULTIPLIED BY THE ACTUAL NUMBER OF DAYS IN THE YEAR AND DIVIDED BY
360.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SECURITY
SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.
UNLESS THE CERTIFICATE OF AUTHENTICATION HEREON HAS BEEN DULY
EXECUTED BY THE TRUSTEE REFERRED TO ON THE REVERSE HEREOF BY MANUAL SIGNATURE,
THIS SECURITY SHALL NOT BE ENTITLED TO ANY BENEFIT UNDER THE INDENTURE, OR BE
VALID OR OBLIGATORY FOR ANY PURPOSE.
IN WITNESS WHEREOF, THE COMPANY HAS CAUSED THIS INSTRUMENT TO BE
DULY EXECUTED.
DATED: ROGERS CABLE INC.
BY
----------------------------
Name:
Title:
BY
----------------------------
Name:
Title:
SECTION 204. FORM OF REVERSE OF SECURITY.
This Security is one of a duly authorized issue of securities of the
Company designated as its 6.25% [Exchange]* Senior (Secured) Second Priority
Notes due 2013 (herein called the "Securities"), which may be issued under an
indenture (herein called the "Indenture") dated as of June 19, 2003 between the
Company and JPMorgan Chase Bank, as trustee (herein called the "Trustee", which
term includes any successor trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of
the respective rights, limitations of rights, duties, obligations and immunities
thereunder of the Company, the Trustee and the Holders of the Securities, and of
the terms upon which the Securities are, and are to be, authenticated and
delivered.
As provided for in the Indenture, the Company may, subject to
certain limitations, from time to time, without notice to or the consent of the
Holders, create and
- ----------
* Include only for Initial Securities.
38
issue Additional Securities so that such Additional Securities shall be
consolidated and form a single series with the Securities initially issued by
the Company and shall have the same terms as to status, redemption or otherwise
as Securities originally issued. Any Additional Securities shall be issued with
the benefit of any indenture supplemental to the Indenture.
THE COMPANY WILL PAY TO THE HOLDERS SUCH ADDITIONAL AMOUNTS AS MAY
BECOME PAYABLE UNDER SECTION 1021 OF THE INDENTURE.
AS PROVIDED IN THE INDENTURE, THE SECURITIES WILL INITIALLY BE
SECURED BY THE PLEDGE TO THE TRUSTEE PURSUANT TO THE PLEDGE AGREEMENT OF THE
TRUST BOND ISSUED BY THE COMPANY UNDER THE DEED OF TRUST. EACH HOLDER BY
ACCEPTING A SECURITY SHALL BE BOUND BY AND BE ENTITLED TO THE BENEFITS OF THE
DEED OF TRUST AND THE OTHER COLLATERAL DOCUMENTS, AS THE SAME MAY BE AMENDED
FROM TIME TO TIME PURSUANT TO THE RESPECTIVE PROVISIONS THEREOF AND OF THE
INDENTURE.
All amounts received by the Deed Trustee for the benefit of holders
of Deed of Trust Bonds in connection with any realization or enforcement
proceedings with respect to the Deed of Trust Collateral or in connection with
the liquidation, dissolution or winding up of any obligor under the Deed of
Trust Bonds shall first be applied to pay in full all Debt under any Tranche A
Credit Facility and any other Debt that, in accordance with the terms of the
Indenture and the Collateral Documents, ranks prior to or pari passu with any
such Tranche A Credit Facility.
IN THE EVENT THAT (I) ON A PRO FORMA BASIS GIVING EFFECT TO THE
RELEASE OF THE SECURITY FOR THE SECURITIES AND ANY OTHER DEBT OF THE COMPANY
WITH SIMILAR RELEASE PROVISIONS, (A) NO DEBT OF THE COMPANY WOULD BE OUTSTANDING
AND (B) THERE WOULD BE NO AVAILABILITY TO THE COMPANY UNDER ANY BANK CREDIT
FACILITIES, OPERATING CREDIT FACILITIES OR SWAP AGREEMENTS, IN THE CASE OF EACH
OF (A) AND (B) THAT IS OR ARE SECURED BY A LIEN OF THE PLEDGE AGREEMENT OR ANY
COLLATERAL DOCUMENT OR ANY OTHER LIEN ON THE DEED OF TRUST COLLATERAL, (II) THE
RATINGS ASSIGNED TO THE SECURITIES BY AT LEAST TWO OF THE THREE RATING AGENCIES
ARE INVESTMENT GRADE RATINGS AND (III) NO DEFAULT OR EVENT OF DEFAULT HAS
OCCURRED AND IS CONTINUING UNDER THE INDENTURE, THEN, WITHOUT THE CONSENT OF THE
HOLDERS, THE COMPANY MAY PERMANENTLY TERMINATE THE LIEN OF THE PLEDGE AGREEMENT
OR ANY COLLATERAL DOCUMENT AND ANY OTHER LIEN ON THE DEED OF TRUST COLLATERAL IN
ACCORDANCE WITH THE PROVISIONS OF THE INDENTURE.
ON OR BEFORE EACH PAYMENT DATE, THE COMPANY SHALL DELIVER OR CAUSE
TO BE DELIVERED TO THE TRUSTEE OR THE PAYING AGENT AN AMOUNT IN U.S. DOLLARS
SUFFICIENT TO PAY THE AMOUNT DUE ON SUCH PAYMENT DATE.
THE SECURITIES WILL BE SUBJECT TO REDEMPTION UPON NOT LESS THAN 30
NOR MORE THAN 60 DAYS' PRIOR NOTICE BY FIRST-CLASS MAIL, AT ANY TIME, AS A WHOLE
OR IN PART, IN AMOUNTS OF U.S.$1,000 OR AN INTEGRAL MULTIPLE OF U.S.$1,000, AT
THE OPTION OF THE COMPANY, AT A REDEMPTION PRICE EQUAL TO THE GREATER OF: (1)
100% OF THE PRINCIPAL AMOUNT OF THE SECURITIES, AND (2) AS DETERMINED BY THE
QUOTATION AGENT, THE SUM OF THE PRESENT VALUES OF THE REMAINING SCHEDULED
PAYMENTS OF PRINCIPAL AND
39
INTEREST ON THE SECURITIES (NOT INCLUDING ANY PORTION OF THE PAYMENTS OF
INTEREST ACCRUED AS OF THE REDEMPTION DATE) DISCOUNTED TO THE REDEMPTION DATE ON
A SEMI-ANNUAL BASIS (ASSUMING A 360-DAY YEAR CONSISTING OF TWELVE 30-DAY MONTHS)
AT THE ADJUSTED TREASURY RATE PLUS 50 BASIS POINTS, IN EACH CASE PLUS ACCRUED
INTEREST THEREON TO THE REDEMPTION DATE, ALL AS PROVIDED IN THE INDENTURE.
The Securities will also be subject to redemption as a whole, but
not in part, at the option of the Company at any time, on not less than 30 nor
more than 60 days' prior written notice, at 100% of the principal amount plus
accrued interest to the Redemption Date, in the event the Company has become or
would become obligated to pay, on the next date on which any amount would be
payable in respect of the Securities, any Additional Amounts as a result of
certain changes affecting Canadian withholding taxes.
In the case of any redemption of Securities, interest installments
whose Stated Maturity is on or prior to the Redemption Date will be payable to
the Holders of record of such Securities, or one or more Predecessor Securities,
at the close of business on the relevant Record Date referred to on the face
hereof. Securities (or portions thereof) for whose redemption and payment
provision is made in accordance with the Indenture shall cease to bear interest
from and after the Redemption Date.
In the event of redemption of this Security in part only, a
replacement Security or Securities for the unredeemed portion hereof shall be
issued in the name of the Holder hereof upon the cancellation hereof.
If an Event of Default (other than an Event of Default resulting
from a Change in Control Triggering Event which is cured by the making and
consummation of a Change in Control Offer) shall occur and be continuing, the
principal amount of all the Securities may be declared due and payable in the
manner and with the effect provided in the Indenture.
In addition, it shall be an Event of Default under the Indenture if
a Change in Control Triggering Event occurs on or prior to the Maturity of the
Securities. The Securities may be accelerated following such an Event of Default
as provided in the Indenture unless the Company (or a third party) offers,
within 20 Business Days after the occurrence of such Event of Default, to
purchase the Securities and purchases the Securities for the Change in Control
Purchase Price in cash on the date that is 40 Business Days after the occurrence
of the Change in Control Triggering Event from a Holder who delivers and does
not withdraw a Change in Control Purchase Notice. Holders have the right to
withdraw any Change in Control Purchase Notice by delivering to the Paying Agent
a written notice of withdrawal in accordance with the terms and provisions of
the Indenture.
The Indenture contains provisions for defeasance at any time of (a)
the entire indebtedness of the Company on this Security and (b) certain
restrictive covenants and the related Defaults and Events of Default, upon
compliance by the Company with certain conditions set forth therein, which
provisions apply to this Security.
40
The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders under the Indenture at any time by the
Company and the Trustee with the consent of the Holders of a majority in
principal amount of the Securities at the time Outstanding. The Indenture also
contains provisions permitting the Holders of specified percentages in aggregate
principal amount of the Securities at the time Outstanding, on behalf of the
Holders of all the Securities, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by or on behalf of the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent or waiver is made upon this Security.
No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of (and
premium, if any) and interest on this Security at the times, place, and rate,
and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registrable on the Security
Register of the Company, upon surrender of this Security for registration of
transfer at the office or agency of the Company maintained for such purpose in
The City of New York duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or its attorney duly authorized in writing, and
thereupon one or more replacement Securities, of authorized denominations and
for the same aggregate principal amount, will be issued to the designated
transferee or transferees.
The Securities are issuable only in registered form without coupons
in denominations of U.S.$1,000 and any integral multiple thereof. As provided in
the Indenture and subject to certain limitations therein set forth, the
Securities are exchangeable for a like aggregate principal amount of Securities
of a different authorized denomination, as requested by the Holder surrendering
the same.
No service charge shall be made for any registration of transfer or
exchange or redemption of Securities, but the Company may require payment of a
sum sufficient to pay all documentary, stamp or similar issue or transfer taxes
or other governmental charges payable in connection with any registration of
transfer or exchange.
Prior to the time of due presentment of this Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered as
the owner hereof for all purposes, whether or not this Security be overdue, and
neither the Company, the Trustee nor any agent shall be affected by notice to
the contrary.
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All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.
SECTION 205. FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION.
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
JPMorgan Chase Bank, as Trustee, certifies that this is one of the
Securities referred to in the within-mentioned Indenture.
JPMORGAN CHASE BANK
By
------------------------
Authorized Officer
ARTICLE THREE
THE SECURITIES
SECTION 301. TITLE AND TERMS.
An unlimited aggregate principal amount of Securities may be
authenticated and delivered under this Indenture (of which U.S.$350,000,000 is
being issued, authenticated and delivered the date hereof), including Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities pursuant to Section 303, 304, 305, 308,
516, 908, 1016, 1108 or 1111.
The Initial Securities shall be known and designated as the "6.25%
Senior (Secured) Second Priority Notes due 2013" and the Exchange Securities
shall be known and designated as the "6.25% Exchange Senior (Secured) Second
Priority Notes due 2013", in each case, of the Company. The Stated Maturity of
the Securities shall be June 15, 2013 and they shall bear interest at the rate
of 6.25% per annum from and including June 19, 2003, or the most recent Interest
Payment Date to which interest has been paid or duly provided for, payable on
December 15, 2003 and semi-annually thereafter on June 15 and December 15 in
each year and at said Stated Maturity, until the principal thereof is paid or
duly provided for.
The principal of (and premium, if any) and interest on the
Securities shall be payable at the office or agency of the Company maintained
for such purpose in The City of New York, or at such other office or agency of
the Company as may be maintained for such purpose; provided, however, that, at
the option of the Company, interest may be paid by check mailed to addresses of
the Persons entitled thereto as such addresses shall appear on the Security
Register; provided further that all payments of the principal of (and premium,
if any) and interest on Securities, the Holders of which have given wire
transfer instructions to the Company or the Paying Agent at least 10 Business
Days prior to the applicable payment date and hold at least U.S.$1,000,000 in
principal amount of Securities, will be required to be made by wire transfer of
immediately available funds to the accounts specified by such Holders in such
instructions. Any such wire transfer instructions received by the Company or the
Paying Agent shall remain in
42
effect until revoked by such Holder. Notwithstanding the foregoing, the final
payment of principal shall be payable only upon surrender of the Security to the
Paying Agent.
The Securities shall be redeemable as provided in Article Eleven.
Additional Securities ranking pari passu with the Securities issued
on the date hereof may be created and issued from time to time by the Company
without notice to or consent of the Holders and shall be consolidated with and
form a single series with the Securities initially issued and shall have the
same terms as to status, redemption or otherwise as the Securities originally
issued, provided that the Company's ability to issue Additional Securities shall
be subject to the Company's compliance with Sections 1008 and 1009. Any
Additional Securities shall be issued with the benefit of an indenture
supplemental to this Indenture.
SECTION 302. DENOMINATIONS.
The Securities shall be issuable only in registered form without
coupons and only in denominations of U.S.$1,000 and any integral multiple
thereof.
SECTION 303. EXECUTION, AUTHENTICATION, DELIVERY AND DATING.
The Securities shall be executed on behalf of the Company by any two
of the following officers: its Chairman, any Vice-Chairman, its President, any
Vice-President or its Treasurer. The signature of any of these officers on the
Securities may be manual or facsimile.
Securities bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices at the date of such Securities.
The Trustee shall (upon Company Order) authenticate and deliver
Securities for original issue in an aggregate principal amount of up to
U.S.$350,000,000, provided that, if the Company shall issue any Additional
Securities pursuant to Section 301, the Trustee shall authenticate and deliver
such Additional Securities upon delivery to the Trustee of a Company Order
accompanied by an Officers' Certificate and an Opinion of Counsel, each stating
that all conditions precedent provided for herein relating to the original issue
of such Additional Securities have been complied with.
Each Security shall be dated the date of its authentication.
No Security shall be entitled to any benefit under this Indenture or
be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein duly
executed by the Trustee by manual signature of an authorized officer, and such
certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered
hereunder.
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In case the Company, pursuant to Article Eight, shall be
amalgamated, consolidated or merged with or into any other Person or shall
convey, transfer, lease or otherwise dispose of substantially all of its
properties and assets to any Person, and the successor Person resulting from
such amalgamation, consolidation, or surviving such merger, or into which the
Company shall have been merged, or the successor Person which shall have
received a conveyance, transfer, lease or other disposition as aforesaid, shall
have executed an indenture supplemental hereto with the Trustee pursuant to
Article Eight, any of the Securities authenticated or delivered prior to such
amalgamation, consolidation, merger, conveyance, transfer, lease or other
disposition may, from time to time, at the request of the successor Person, be
exchanged for other Securities executed in the name of the successor Person with
such changes in phraseology and form as may be appropriate (but which shall not
affect the rights or duties of the Trustee), but otherwise in substance of like
tenor as the Securities surrendered for such exchange and of like principal
amount; and the Trustee, upon Company Order of the successor Person, shall
authenticate and deliver replacement Securities as specified in such request for
the purpose of such exchange. If replacement Securities shall at any time be
authenticated and delivered in any new name of a successor Person pursuant to
this Section in exchange or substitution for or upon registration of transfer of
any Securities, such successor Person, at the option of any Holder but without
expense to such Holder, shall provide for the exchange of all Securities at the
time Outstanding held by such Holder for Securities authenticated and delivered
in such new name.
SECTION 304. TEMPORARY SECURITIES.
Pending the preparation of definitive Securities, the Company may
execute, and upon Company Order the Trustee shall authenticate and deliver,
temporary Securities which are printed, lithographed, typewritten, mimeographed
or otherwise produced, in any authorized denomination, substantially of the
tenor of the definitive Securities in lieu of which they are issued and with
such appropriate insertions, omissions, substitutions and other variations as
the officers executing such Securities may determine (but which shall not affect
the rights or duties of the Trustee), as conclusively evidenced by their
execution of such Securities.
If temporary Securities are issued, the Company will cause
definitive Securities to be prepared without unreasonable delay. After the
preparation of definitive Securities, the temporary Securities shall be
exchangeable for definitive Securities upon surrender of the temporary
Securities at the office or agency of the Company designated for such purpose
pursuant to Section 1002, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities, the Company shall execute
and, upon Company Order, the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Securities of authorized
denominations evidencing the same indebtedness as the temporary Securities so
exchanged. Until so exchanged, the temporary Securities shall in all respects be
entitled to the same benefits under this Indenture as definitive Securities.
44
SECTION 305. REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE.
The Company shall cause to be kept at one of its offices or agencies
maintained pursuant to Section 1002 a register (the register maintained in such
office and in any other office or agency designated pursuant to Section 1002
being herein sometimes referred to as the "Security Register") in which, subject
to such reasonable regulations as it may prescribe, the Company shall provide
for the registration of Securities and of transfers of Securities. Said office
or agency is hereby initially appointed "Security Registrar" for the purpose of
registering Securities and transfers of Securities as herein provided.
Upon surrender for registration of transfer of any Security at the
office or agency of the Company designated pursuant to Section 1002, the Company
shall execute, and the Trustee shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more replacement Securities of
any authorized denomination or denominations of a like aggregate principal
amount.
Furthermore, any Holder of a Global Security shall, by acceptance of
such Global Security, agree that transfers of beneficial interests in such
Global Security may be effected only through a book-entry system maintained by
the Holder of such Global Security (or its agent), and that ownership of a
beneficial interest in the Security shall be required to be reflected in a book
entry.
At the option of the Holder, Securities may be exchanged for other
Securities of any authorized denomination or denominations of a like aggregate
principal amount upon surrender of the Securities to be exchanged at such office
or agency. Whenever any Securities are so surrendered for exchange (including an
exchange of Initial Securities for Exchange Securities), the Company shall
execute, and the Trustee shall authenticate and deliver, the replacement
Securities which the Holder making the exchange is entitled to receive; provided
that no exchange of Initial Securities for Exchange Securities shall occur until
an Exchange Offer Registration Statement shall have been declared effective by
the Commission and the Initial Securities to be exchanged for the Exchange
Securities shall be cancelled by the Trustee.
All Securities issued upon any registration of transfer or exchange
of Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.
Every Security presented or surrendered for registration of
transfer, or for exchange or redemption, shall (if so required by the Company or
the Security Registrar) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar, duly executed by the Holder thereof or its attorney duly authorized
in writing.
No service charge shall be made for any registration of transfer or
exchange or redemption of Securities, but the Company may require payment of a
sum
45
sufficient to pay all documentary, stamp or similar issue or transfer taxes or
other governmental charges that may be imposed in connection with any
registration of transfer or exchange of Securities, other than exchanges
pursuant to Section 303, 304, 516, 908, 1016, 1108 or 1111 not involving any
transfer or pursuant to an Exchange Offer.
The Company shall not be required (a) to issue replacement
Securities or register the transfer of or exchange any Security during a period
beginning at the opening of business 15 days before the mailing of a notice of
redemption of the Securities under Section 1105 and ending at the close of
business on the day of such mailing or (b) to register the transfer of or
exchange any Security so selected for redemption in whole or in part, except the
unredeemed portion of Securities being redeemed in part.
SECTION 306. BOOK-ENTRY PROVISIONS FOR GLOBAL SECURITIES.
(a) The Global Securities initially shall (i) be registered in the
name of the Depositary for such Global Securities or the nominee of such
Depositary, (ii) be deposited with the Trustee, as custodian for such
Depositary and (iii) bear legends as set forth in Section 202.
The Depositary or its nominee shall be the Holder of the Global
Securities, and owners of beneficial interests in the Securities
represented by the Global Securities shall hold such interests pursuant to
the procedures and practices of the Depositary. Any such owner's
beneficial ownership of any such Securities will be shown only on, and the
transfer of such ownership interest shall be effected only through,
records maintained by the Depositary or its nominee. Investors in the
Regulation S Global Security may hold their interests in the Regulation S
Global Security through Euroclear or Clearstream, Luxembourg, if they are
participants in such systems, or indirectly through organizations which
are participants in such systems. After the expiration of the Restricted
Period (but not earlier), investors in the Regulation S Global Security
may also hold such interests through organizations other than Euroclear or
Clearstream, Luxembourg that are participants in the Depositary's system.
Euroclear and Clearstream, Luxembourg will hold interests in the
Regulation S Global Security on behalf of their participants through
customers' securities accounts in their respective names on the books of
their respective depositories, which, in turn, will hold such interests in
the Regulation S Global Security in customer's securities accounts in the
depositories' names on the books of the Depositary. All interests in a
Global Security, including those held through Euroclear or Clearstream,
Luxembourg, may be subject to the procedures and requirements of the
Depositary. Those interests held through Euroclear and Clearstream,
Luxembourg will be subject to the procedures and requirements of such
systems. As used herein, the term "Restricted Period" means the period of
40 consecutive days beginning on and including the first day after the
later of (i) the day that Salomon Smith Barney Inc. advises the Company
and the Trustee in writing of the day on which the Securities are first
offered to persons other than distributors (as defined in Regulation S)
and (ii) the original issue date of the Securities.
46
(b) Transfers of any Global Security shall be limited to transfers
of such Global Security in whole, but not in part, to the Depositary, its
successors or their respective nominees. Interests of beneficial owners in
any Global Security may be transferred in accordance with the rules and
procedures of the Depositary and the provisions of Section 307. Unless (i)
the Depositary notifies the Company that it is unwilling or unable to
continue as Depositary for such Global Securities or ceases to be a
clearing agency registered under the Exchange Act or announces an
intention permanently to cease business or does in fact do so and a
successor depositary is not appointed by the Company within 90 days of
such notice, (ii) the Company, at its option, notifies the Trustee that it
elects to cause the exchange of the Global Securities for Securities in
certificated form, (iii) an Event of Default has occurred and is
continuing with respect to a Global Security or (iv) in the case of a
Global Security held for the account of Euroclear or Clearstream,
Luxembourg, Euroclear or Clearstream, Luxembourg, as the case may be, is
closed for business for 14 continuous Business Days or announces an
intention to cease or permanently ceases business, owners of beneficial
interests in a Regulation S Global Security will not be entitled to have
any portions of such Global Security registered in their names, will not
receive or be entitled to receive physical delivery of Securities in
definitive form and will not be considered the owners or Holders of the
Global Security.
(c) Securities issued in exchange for a Global Security or any
portion thereof pursuant to the last sentence of Subsection (b) of this
Section shall be issued in definitive, fully registered form, without
interest coupons, shall have an aggregate principal amount equal to that
of such Global Security or portion thereof to be so exchanged, shall be
registered in such names and be in such authorized denominations as the
Depositary shall designate and shall bear any legends required hereunder.
Any Global Security to be exchanged in whole shall be surrendered by the
Depositary to the Security Registrar. With regard to any Global Security
to be exchanged in part, either such Global Security shall be so
surrendered for exchange or, if the Trustee is acting as custodian for the
Depositary or its nominee with respect to such Global Security, the
principal amount thereof shall be reduced, by an amount equal to the
portion thereof to be so exchanged, by means of an appropriate adjustment
made on the records of the Trustee. Upon any such surrender or adjustment,
the Trustee, upon Company Order, shall authenticate and deliver the
Security issuable on such exchange to or upon the order of the Depositary
or an authorized representative thereof. In the event of the occurrence of
any of the events specified in the last sentence of Subsection (b) of this
Section 306, the Company will promptly make available to the Trustee a
reasonable supply of certificated Securities in definitive form.
(d) Except as otherwise set forth in this Indenture or a Global
Security, owners of beneficial interests in the Securities evidenced by a
Global Security will not be entitled to any rights under this Indenture
with respect to such Global Security, and the Depositary or its nominee
may be treated by the Company, the Trustee and any agent of the Company or
the Trustee as the owner and Holder of such Global Security for all
purposes whatsoever. Notwithstanding the foregoing,
47
nothing herein shall prevent the Company, the Trustee or any such agent
from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or its nominee or impair, as
between the Depositary or its nominee and such owners of beneficial
interests, the operation of customary practices governing the exercise of
the rights of the Depositary or its nominee as Holder of any Security.
SECTION 307. SPECIAL TRANSFER PROVISIONS.
Unless and until (i) an Initial Security is sold under an effective
Registration Statement, or (ii) an Initial Security is exchanged for an Exchange
Security in connection with an effective Registration Statement, pursuant to the
Registration Rights Agreement, the following provisions shall apply:
(a) Restricted Global Security to Regulation S Global Security.
If, at any time, an owner of a beneficial interest in a Restricted Global
Security deposited with the Trustee, as custodian for the Depositary,
wishes to transfer its interest in such Restricted Global Security to a
Person who is required or permitted to take delivery thereof in the form
of an interest in a Regulation S Global Security, such owner shall,
subject to the Applicable Procedures, exchange or cause the exchange of
such interest for an equivalent beneficial interest in a Regulation S
Global Security as provided in this Section 307(a). Upon receipt by the
Trustee of (1) written instructions given in accordance with the
Applicable Procedures from an Agent Member directing the Trustee to credit
or cause to be credited a beneficial interest in the Regulation S Global
Security in an amount equal to the beneficial interest in the applicable
Restricted Global Security to be exchanged, (2) a written order given in
accordance with the Applicable Procedures containing information regarding
the participant account of the Depositary and the Euroclear or
Clearstream, Luxembourg account (if applicable) to be credited with such
increase, and (3) a certificate substantially in the form of Exhibit D
hereto given by the owner of such beneficial interest, the Trustee, as
Security Registrar, shall instruct the Depositary to reduce or cause to be
reduced the aggregate principal amount of the applicable Restricted Global
Security and to increase or cause to be increased the aggregate principal
amount of the applicable Regulation S Global Security by the principal
amount of the beneficial interest in the Restricted Global Security to be
exchanged, to credit or cause to be credited to the account of the Person
specified in such instructions a beneficial interest in the Regulation S
Global Security equal to the reduction in the aggregate principal amount
of the applicable Restricted Global Security, and to debit, or cause to be
debited, from the account of the Person making such exchange or transfer
the beneficial interest in the Restricted Global Security that is being
exchanged or transferred.
(b) Regulation S Global Security to Restricted Global Security.
If, at any time, an owner of a beneficial interest in a Regulation S
Global Security deposited with the Trustee as custodian for the Depositary
wishes to transfer its interest in such Regulation S Global Security to a
Person who is required or
48
permitted to take delivery thereof in the form of an interest in a
Restricted Global Security, such owner shall, subject to the Applicable
Procedures, exchange or cause the exchange of such interest for an
equivalent beneficial interest in a Restricted Global Security, as
provided in this Section 307(b). Upon receipt by the Trustee of (1)
written instructions given in accordance with the Applicable Procedures
from an Agent Member, directing the Trustee, as Security Registrar, to
credit or cause to be credited a beneficial interest in the Restricted
Global Security equal to the beneficial interest in the Regulation S
Global Security to be exchanged, (2) a written order given in accordance
with the Applicable Procedures containing information regarding the
participant account of the Depositary to be credited with such increase
and (3) if such transfer is requested prior to the expiration of the
Restricted Period, a certificate in the form of Exhibit E attached hereto
given by the owner of such beneficial interest, the Trustee, as Security
Registrar, shall instruct the Depositary to reduce or cause to be reduced
the aggregate principal amount of such Regulation S Global Security and to
increase or cause to be increased the aggregate principal amount of the
applicable Restricted Global Security by the principal amount of the
beneficial interest in the Regulation S Global Security to be exchanged,
and the Trustee, as Security Registrar, shall instruct the Depositary,
concurrently with such reduction, to credit or cause to be credited to the
account of the Person specified in such instructions a beneficial interest
in the applicable Restricted Global Security equal to the reduction in the
aggregate principal amount of such Regulation S Global Security and to
debit or cause to be debited from the account of the Person making such
transfer the beneficial interest in the Regulation S Global Security that
is being transferred. After the expiration of the Restricted Period, the
certificate described in clause (3) above shall no longer be required to
effect transfers pursuant to this Section 307(b).
(c) Restricted Global Security to Regulation S Global Security
After Two Years. If the holder of a beneficial interest in a Restricted
Global Security wishes at any time after June 19, 2005 to (A) transfer
such interest to a Person who wishes to take delivery thereof in the form
of a beneficial interest in the Regulation S Global Security or (B) to
exchange such interest for a beneficial interest in a Regulation S Global
Security, such transfer or exchange may be effected, subject to the
Applicable Procedures, only in accordance with this Section 307(c). Upon
receipt by the Trustee of (1) in the case of a transfer or exchange of an
interest in the Restricted Global Security, written instructions given in
accordance with the Applicable Procedures from an Agent Member directing
the Trustee to credit or cause to be credited a beneficial interest in the
Regulation S Global Security in an amount equal to the beneficial interest
in the Restricted Global Security to be so transferred or exchanged, (2) a
written order given in accordance with the Applicable Procedures
containing information regarding the participant account of the Depositary
(and, if applicable, the Euroclear or Clearstream, Luxembourg account, as
the case may be) to be credited with such beneficial interest and (3) a
certificate substantially in the form of Exhibit F hereto given by the
holder of such beneficial interest, the Trustee, as Security Registrar,
shall instruct the Depositary to reduce the principal amount of
49
the Restricted Global Security, and to increase the principal amount of
the Regulation S Global Security, by the principal amount of the
beneficial interest in the Restricted Global Security to be so transferred
or exchanged, and to credit or cause to be credited to the account of the
Person specified in such instructions a beneficial interest in the
Regulation S Global Security having a principal amount equal to the amount
by which the principal amount of the Restricted Global Security was
reduced upon such transfer or exchange.
(d) Private Placement Legend. By its acceptance of any Security
bearing the Private Placement Legend, each Holder of such a Security
acknowledges the restrictions on transfer of such Security set forth in
this Indenture and in the Private Placement Legend and agrees that it will
transfer such Security only as provided in this Indenture.
The Security Registrar shall retain copies of all letters, notices
and other written communications received pursuant to Section 306 or this
Section 307. The Company shall have the right to inspect and make copies of all
such letters, notices or other written communications at any reasonable time
upon the giving of reasonable written notice to the Security Registrar.
SECTION 308. MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES.
If (a) any mutilated Security is surrendered to the Trustee, or (b)
the Company and the Trustee receive evidence to their satisfaction of the
destruction, loss or theft of any Security, and there is delivered to the
Company and the Trustee such security or indemnity as may be required by them to
save each of them harmless, then, in the absence of notice to the Company or the
Trustee that such Security has been acquired by a bona fide purchaser, the
Company shall execute and upon Company Order the Trustee shall authenticate and
deliver, in exchange for any such mutilated Security or in lieu of any such
destroyed, lost or stolen Security, a replacement Security of like tenor and
principal amount, bearing a number not contemporaneously outstanding.
In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a replacement Security, pay such Security.
Upon the issuance of any replacement Securities under this Section,
the Company may require the payment of a sum sufficient to pay all documentary,
stamp or similar issue or transfer taxes or other governmental charges that may
be imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee) connected therewith.
Every replacement Security issued pursuant to this Section in lieu
of any destroyed, lost or stolen Security shall constitute a contractual
obligation of the Company, whether or not the destroyed, lost or stolen Security
shall be at any time enforceable by anyone, and shall be entitled to all
benefits of this Indenture equally and proportionately with any and all other
Securities duly issued hereunder.
50
The provisions of this Section are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities.
SECTION 309. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.
Interest on any Security which is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the Person in
whose name that Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest.
Any interest on any Security which is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date and interest on such
defaulted interest at the interest rate borne by the Securities, to the extent
lawful (such defaulted interest and interest thereon herein collectively called
"Defaulted Interest"), shall forthwith cease to be payable to the Holder on the
Regular Record Date by virtue of having been such Holder; and such Defaulted
Interest may be paid by the Company, at its election in each case, as provided
in Subsection (a) or (b) below:
(a) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Securities (or their respective
Predecessor Securities) are registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest, which
shall be fixed in the following manner. The Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid
on each Security and the date of the proposed payment, and at the same
time the Company shall deposit with the Trustee an amount of money equal
to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this Subsection provided. Thereupon the
Trustee shall fix a Special Record Date for the payment of such Defaulted
Interest which shall be not more than 15 days and not less than 10 days
prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company of such Special Record Date. In
the name and at the expense of the Company, the Trustee shall cause notice
of the proposed payment of such Defaulted Interest and the Special Record
Date therefor to be mailed, first-class postage prepaid, to each Holder at
its address as it appears in the Security Register, not less than 10 days
prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose
names the Securities (or their respective Predecessor Securities) are
registered on such Special Record Date and shall no longer be payable
pursuant to the following Subsection (b).
(b) The Company may make payment of any Defaulted Interest in any
other lawful manner not inconsistent with the requirements of any
securities
51
exchange on which the Securities may be listed, and upon such notice as
may be required by such exchange, if, after notice given by the Company to
the Trustee of the proposed payment pursuant to this Subsection, such
payment shall be deemed practicable by the Trustee.
Subject to the foregoing provisions of this Section, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.
SECTION 310. PERSONS DEEMED OWNERS.
Prior to the time of due presentment for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name any Security is registered as the owner of such
Security for the purpose of receiving payment of principal of (and premium, if
any) and (subject to Section 309) interest on such Security and for all other
purposes whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.
SECTION 311. CANCELLATION.
All Securities surrendered for payment, redemption, registration of
transfer or exchange shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee and shall be promptly cancelled by the Trustee. The
Company shall deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in any
manner whatsoever, and all Securities so delivered shall be promptly cancelled
by the Trustee. No Securities shall be authenticated in lieu of or in exchange
for any Securities cancelled as provided in this Section, except as expressly
permitted by this Indenture. All cancelled Securities held by the Trustee shall
be destroyed and certification of their destruction delivered to the Company
unless by a Company Order the Company shall direct that cancelled Securities be
returned to it.
SECTION 312. COMPUTATION OF INTEREST.
Interest on the Securities shall be computed on the basis of a year
of twelve 30-day months.
ARTICLE FOUR
DEFEASANCE AND COVENANT DEFEASANCE
SECTION 401. COMPANY'S OPTION TO EFFECT DEFEASANCE OR COVENANT
DEFEASANCE.
The Company may, at its option by Board Resolution, at any time,
with respect to the Securities, elect to have either Section 402 or Section 403
be applied to all
52
Outstanding Securities upon compliance with the conditions set forth below in
this Article Four.
SECTION 402. DEFEASANCE AND DISCHARGE.
Upon the Company's exercise under Section 401 of the option
applicable to this Section 402, the Company shall be deemed to have been
discharged from its obligations with respect to all Outstanding Securities on
the date the conditions set forth below are satisfied (hereinafter,
"defeasance"). For this purpose, such defeasance means that the Company shall be
deemed to have paid and discharged the entire indebtedness represented by the
Outstanding Securities, which shall thereafter be deemed to be "Outstanding"
only for the purposes of Section 405 and the other Sections of this Indenture
referred to in (A), (B), and (C) below, and to have satisfied all its other
obligations under such Securities and this Indenture insofar as such Securities
are concerned (and the Trustee, upon Company Request and at the expense of the
Company, shall execute proper instruments acknowledging the same), except for
the following which shall survive until otherwise terminated or discharged
hereunder: (A) the rights of Holders of Outstanding Securities to receive solely
from the trust fund described in Section 404 and as more fully set forth in such
Section, payments in respect of the principal of (and premium, if any) and
interest on such Securities when such payments are due, (B) the Company's
obligations with respect to such Securities under Sections 304, 305, 308, 1002,
1003, 1021 (for purposes of applying Section 1021, if the Trustee (or any other
qualifying trustee referred to in Section 404(1)) is required by law or by the
interpretation or administration thereof to withhold or deduct any amount for or
on account of Taxes (as defined in Section 1021) from any payment made from the
trust fund described in Section 404 under or with respect to the Securities,
such payment shall be deemed to have been made by the Company and the Company
shall be deemed to have been so required to withhold or deduct) and 1022, (C)
the Company's right of redemption pursuant to Section 1101(b), provided that
either (i) the change or amendment referred to therein occurs after defeasance
is exercised by the Company in accordance with Section 404 or (ii) the Company
was, immediately before the defeasance, entitled to redeem the Securities
pursuant to Section 1101(b), in which case the Company may redeem the Securities
in accordance with Article Eleven by complying with such Article and depositing
with the Trustee, in accordance with Section 1106, an amount of money
sufficient, together with all amounts held in trust pursuant to Section 404(1),
to pay the Redemption Price of all the Securities to be redeemed, (D) the
rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Company's obligations in connection therewith, including the Company's
obligations under Section 607 and (E) this Article Four. Subject to compliance
with this Article Four, the Company may exercise its option under this Section
402 notwithstanding the prior exercise of its option under Section 403 with
respect to the Securities.
SECTION 403. COVENANT DEFEASANCE.
Upon the Company's exercise under Section 401 of the option
applicable to this Section 403, the Company shall be released from its
obligations under any covenant contained in Articles Eight and Twelve and in
Sections 1004 through 1020 with
53
respect to the Outstanding Securities on and after the date the conditions set
forth below are satisfied (hereinafter, "covenant defeasance"), and the
Securities shall thereafter be deemed to be not "Outstanding" for the purposes
of any direction, waiver, consent or declaration or Act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed "Outstanding" for all other purposes hereunder (it being
understood that such Securities shall not be deemed Outstanding for financial
accounting purposes). For this purpose, such covenant defeasance means that,
with respect to the Outstanding Securities, the Company may omit to comply with
and shall have no liability in respect of any term, condition or limitation set
forth in any such covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such covenant or by reason of any reference in
any such covenant to any other provision herein or in any other document and
such omission to comply shall not constitute a Default or an Event of Default
under Section 501(c), but, except as specified above, the remainder of this
Indenture (including Section 607 hereof) and such Securities shall be unaffected
thereby. In addition, upon the Company's exercise under Section 401 of the
option applicable to Section 403, Section 501(c) through (e) and Section 501(i)
through (l) shall not constitute Events of Default.
SECTION 404. CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE.
The following shall be the conditions to application of either
Section 402 or Section 403 to the Outstanding Securities:
(1) The Company shall irrevocably have deposited or caused
to be deposited with the Trustee (or another trustee satisfying the
requirements of Section 609 who shall agree to comply with the
provisions of this Article Four applicable to it) as trust funds, in
trust, for the purpose of making the following payments,
specifically pledged as security for, and dedicated solely to, the
benefit of the Holders of such Securities, (A) cash in U.S. Dollars
in an amount, or (B) U.S. Government Obligations which through the
scheduled payment of principal and interest in respect thereof in
accordance with their terms will provide, not later than one day
before the due date of any payment, cash in U.S. Dollars in an
amount, or (C) a combination thereof, sufficient, in the opinion of
a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the
Trustee, to pay and discharge and which shall be applied by the
Trustee (or other qualifying trustee) to pay and discharge, the
principal of (and premium, if any) and interest on the Outstanding
Securities on the Stated Maturity (or Redemption Date, if
applicable) of such principal (and premium, if any) or installment
of interest; provided that the Trustee (or other qualifying trustee)
shall have been irrevocably instructed by the Company to apply such
money or the proceeds of such U.S. Government Obligations to said
payments with respect to the Securities. Before such a deposit, the
Company may give the Trustee, in accordance with Section 1103
hereof, a notice of its election to redeem all of the Outstanding
Securities at a future date in accordance with Article Eleven
hereof, which notice shall be
54
irrevocable. For this purpose, "U.S. Government Obligations" means
securities that are (x) direct obligations of the United States of
America for the timely payment of which its full faith and credit is
pledged or (y) obligations of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States of
America the timely payment of which is unconditionally guaranteed as
a full faith and credit obligation by the United States of America,
which, in either case, are not callable or redeemable at the option
of the issuer thereof, and shall also include a depository receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities
Act), as custodian with respect to any such U.S. Government
Obligation or a specific payment of principal of or interest on any
such U.S. Government Obligation held by such custodian for the
account of the holder of such depository receipt, provided that
(except as required by law) such custodian is not authorized to make
any deduction from the amount payable to the holder of such
depository receipt from any amount received by the custodian in
respect of the U.S. Government Obligation or the specific payment of
principal of or interest on the U.S. Government Obligation evidenced
by such depository receipt.
(2) No Default or Event of Default shall have occurred and
be continuing on the date of such deposit or, insofar as Subsection
501(f), (g) or (h) is concerned, at any time during the period
ending on the 91st day after the date of such deposit (it being
understood that this condition shall not be deemed satisfied until
the expiration of such period).
(3) Neither the Company nor any Restricted Subsidiary is an
"insolvent person" within the meaning of the Bankruptcy and
Insolvency Act (Canada) on the date of such deposit or at any time
during the period ending on the 91st day after the date of such
deposit (it being understood that this condition shall not be deemed
satisfied until the expiration of such period).
(4) Such defeasance or covenant defeasance shall not result
in a breach or violation of, or constitute a default under, this
Indenture or any other material agreement or instrument to which the
Company is a party or by which it is bound.
(5) In the case of an election under Section 402, the
Company shall have delivered to the Trustee an Opinion of Counsel in
the United States stating that (x) the Company has received from, or
there has been published by, the Internal Revenue Service a ruling
or (y) since April 30, 2002, there has been a change in the
applicable United States federal income tax law, in either case to
the effect that, and based thereon such opinion shall confirm that,
the Holders of the Outstanding Securities will not recognize income,
gain or loss for United States federal income tax purposes as a
result of such defeasance and will be subject to United States
federal income tax on the same amounts, in the same manner and at
55
the same times as would have been the case if such defeasance had
not occurred.
(6) In the case of an election under Section 403, the
Company shall have delivered to the Trustee an Opinion of Counsel in
the United States to the effect that the Holders of the Outstanding
Securities will not recognize income, gain or loss for United States
federal income tax purposes as a result of such covenant defeasance
and will be subject to United States federal income tax on the same
amounts, in the same manner and at the same times as would have been
the case if such covenant defeasance had not occurred.
(7) The Company shall have delivered to the Trustee an
Opinion of Counsel in Canada to the effect that the Holders of the
Outstanding Securities will not recognize income, gain or loss for
Canadian federal or provincial income tax or other tax purposes as a
result of such defeasance or covenant defeasance, as applicable, and
will be subject to Canadian federal and provincial income tax and
other tax on the same amounts, in the same manner and at the same
times as would have been the case if such defeasance or covenant
defeasance, as applicable, had not occurred. This condition may not
be waived by any Holder or the Trustee.
(8) The Company shall have delivered to the Trustee an
Officers' Certificate stating that the deposit made by the Company
pursuant to its election under Section 402 or Section 403 was not
made by the Company with the intent of preferring the Holders over
other creditors of the Company or with the intent of defeating,
hindering, delaying or defrauding creditors of the Company or
others.
(9) The Company shall have delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel in the United
States, each stating that all conditions precedent relating to
either the defeasance under Section 402 or the covenant defeasance
under Section 403 (as the case may be) have been complied with.
SECTION 405. DEPOSITED MONEY AND U.S. GOVERNMENT OBLIGATIONS TO BE
HELD IN TRUST; OTHER MISCELLANEOUS PROVISIONS.
Subject to the provisions of the last paragraph of Section 1003, all
money and U.S. Government Obligations (including the proceeds thereof) deposited
with the Trustee (or other qualifying trustee, collectively for purposes of this
Section 405, the "Trustee") pursuant to Section 404 in respect of the
Outstanding Securities shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Securities and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Holders of
such Securities of all sums due and to become due thereon in respect of
56
principal (and premium, if any) and interest, but such money need not be
segregated from other funds except to the extent required by law.
The Company shall pay and indemnify the Trustee on an after-tax
basis against any tax, fee or other charge imposed on or assessed against the
cash or U.S. Government Obligations deposited pursuant to Section 404 or the
principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the
Outstanding Securities.
Anything in this Article Four to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in
Section 404 which, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the
Trustee (which may be the opinion delivered under Section 404(1)), are in excess
of the amount thereof which would then be required to be deposited to effect an
equivalent defeasance or covenant defeasance.
SECTION 406. REINSTATEMENT.
If the Trustee or any Paying Agent is unable to apply any money in
accordance with Section 405, by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company's obligations under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred
pursuant to Section 402 or 403, as the case may be, until such time as the
Trustee or Paying Agent is permitted to apply all such money in accordance with
Section 405; provided, however, that, if the Company makes any payment of
principal of (or premium, if any) or interest on any Security following the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Securities to receive such payment from the money held by
the Trustee or Paying Agent.
ARTICLE FIVE
REMEDIES
SECTION 501. EVENTS OF DEFAULT.
"Event of Default", wherever used herein, means any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body):
(a) default in the payment of the principal of (or premium, if
any, on) any Security at its Maturity; or
(b) default in the payment of any interest or any Additional
Amounts on any Security when it becomes due and payable, and continuance
of such default for a period of 30 days; or
57
(c) default in the performance, or breach, of any covenant or
warranty of the Company or of any Restricted Subsidiary in this Indenture
or any Collateral Document (other than a default in the performance, or
breach, of a covenant or warranty which is specifically dealt with
elsewhere in this Section), and continuance of such default or breach for
a period of 60 days after there has been given to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least 25%
in aggregate principal amount of the Outstanding Securities a written
notice specifying such default or breach and stating that such notice is a
"Notice of Default" hereunder; or
(d) (i) there shall have occurred one or more defaults of the
Company or any Restricted Subsidiary in the payment of the principal of or
premium on any Debt aggregating Cdn$25,000,000 or more, when the same
becomes due and payable at the stated maturity thereof, and such default
or defaults shall continue after any applicable grace period and have not
been cured or waived or (ii) there shall occur and be continuing any
acceleration of the maturity of any Debt aggregating Cdn$25,000,000 or
more and, in any case referred to in the foregoing clause (i), the Debt
has not been paid or in any case referred to in the foregoing clause (ii),
such acceleration has not been rescinded or annulled, in each case within
10 days of such non-payment or acceleration; or
(e) any judgments or orders aggregating Cdn$25,000,000 or more
rendered against the Company or any Restricted Subsidiary remain
unsatisfied and unstayed for 60 consecutive days; or
(f) the Company or any Restricted Subsidiary pursuant to or under
or within the meaning of any Bankruptcy Law:
(1) commences a voluntary case or proceeding;
(2) consents to the entry of a Bankruptcy Order in an
involuntary case or proceeding or the commencement of any case
against it;
(3) consents to the appointment of a Custodian of it or for
any substantial part of its property;
(4) makes a general assignment for the benefit of its
creditors or files a proposal or other scheme of arrangement
involving the rescheduling or composition of its indebtedness;
(5) files a petition in bankruptcy or an answer or consent
seeking reorganization or relief; or
(6) consents to the filing of such petition in bankruptcy or
the appointment of or taking possession by a Custodian; or
58
(g) a court of competent jurisdiction in any involuntary case or
proceeding enters a Bankruptcy Order against the Company or any Restricted
Subsidiary, and such Bankruptcy Order remains unstayed and in effect for
15 consecutive days; or
(h) a Custodian shall be appointed out of court with respect to
the Company or any Restricted Subsidiary, or with respect to all or any
substantial part of the property of the Company or any Restricted
Subsidiary, or any encumbrancer shall take possession of all or any
substantial part of the property of the Company or any Restricted
Subsidiary; or
(i) prior to the Release Date, any Collateral Document shall, at
any time, cease to be in full force and effect for any reason (other than
the termination thereof pursuant to this Indenture or upon the
satisfaction in full of all Indenture Obligations and discharge of this
Indenture) or shall be declared invalid or unenforceable; or if the
Company or any Restricted Subsidiary shall assert, in any pleading filed
in a court of competent jurisdiction, that any Collateral Document is
invalid or unenforceable; or
(j) prior to the Release Date, there shall have occurred one or
more defaults of the Company in payment on demand of any principal or
interest owing under or secured by any Deed of Trust Bonds; or
(k) a Change in Control Triggering Event shall occur; or
(l) prior to the Release Date, the whole or substantially the
whole of the Specifically Mortgaged Property or of the Mortgaged Property
(as such terms are defined in the Deed of Trust) shall be taken by
exercise of any power referred to in Section 4.04 of the Deed of Trust or
shall be sold or otherwise disposed of in anticipation thereof within the
meaning of Subsection 4.10(2) of the Deed of Trust.
"Bankruptcy Law" means the Bankruptcy and Insolvency Act (Canada) or
any other Canadian federal or provincial law or the law of any other
jurisdiction relating to bankruptcy, insolvency, winding up, liquidation,
reorganization or relief of debtors. "Custodian" means any receiver, interim
receiver, receiver and manager, trustee, assignee, liquidator, sequestrator or
similar official under any Bankruptcy Law or any other person with like powers.
"Bankruptcy Order" means any court order made in a proceeding pursuant to or
within the meaning of any Bankruptcy Law, containing an adjudication of
bankruptcy or insolvency, or providing for liquidation, winding up, dissolution
or reorganization, or appointing a Custodian of a debtor or of all or any
substantial part of a debtor's property, or providing for the staying,
arrangement, adjustment or composition of indebtedness or other relief of a
debtor.
Under this Indenture, a "Change in Control Triggering Event" is
deemed to occur upon both a Change in Control and a Rating Decline with respect
to the Securities.
59
A "Change in Control" means (i) any transaction (including an
amalgamation, merger or consolidation or the sale of Capital Stock of the
Company) the result of which is that any Person or group of Persons (as the term
"group" is used in Rule 13d-5 of the Exchange Act), other than Members of the
Rogers Family or RCI or a Person or group controlled by one or more of the
Members of the Rogers Family or RCI, acquires, directly or indirectly, more than
50% of the total voting power of all classes of Voting Shares of the Company or
(ii) any transaction (including an amalgamation, merger or consolidation or the
sale of Capital Stock of the Company) the result of which is that any Person or
group, other than (A) Members of the Rogers Family or RCI or a Person or group
controlled by one or more Members of the Rogers Family or RCI or (B) for so long
as the only primary beneficiaries of a Qualifying Trust established under the
last will and testament of Edward S. Rogers are one or more persons referred to
in clause (ii) of the definition of "Member of the Rogers Family" or the spouse,
widow or widower, for the time being and from time to time, of any person
described in subclause (ii)(c), (d) or (e) of the definition of "Member of the
Rogers Family", any Person designated by the trustees of such Qualifying Trust
to exercise voting rights attaching to the shares held by such trustees, has
elected to the Board of Directors such number of its or their nominees so that
such nominees so elected shall constitute a majority of the number of the
directors comprising the Board of Directors; provided that to the extent that
one or more regulatory approvals are required for any of the transactions or
circumstances described in clause (i) or (ii) above to become effective under
applicable law, such transactions or circumstances shall be deemed to have
occurred at the time such approvals have been obtained and become effective
under applicable law. Notwithstanding anything contained in this Indenture to
the contrary, a "Change in Control" will not occur so long as either Members of
the Rogers Family or RCI control the Voting Shares of, or elect directors to the
Board of Directors of, the Company as and to the extent provided in the previous
sentence.
"Member of the Rogers Family" means (i) Edward S. Rogers (who was
born on May 27, 1933, such individual being hereinafter referred to as "Edward
S. Rogers"); (ii) such of the following persons as are living at the date of
this Indenture or are born after the date of this Indenture and before the
Perpetuity Date: (a) the spouse, for the time being and from time to time, of
Edward S. Rogers; (b) after the death of Edward S. Rogers, the widow, if any, of
Edward S. Rogers; (c) the issue of Edward S. Rogers; (d) any half-sister of
Edward S. Rogers and the issue of any such half-sister; (e) individuals adopted
by Edward S. Rogers or any of the issue of Edward S. Rogers, provided that such
individuals have not attained the age of majority at the date of such adoption,
together with the issue of any such adopted individuals; provided that if any
person is born out of wedlock he shall be deemed not to be the issue of another
person for the purposes hereof unless and until he is proven or acknowledged to
be the issue of such person and; (iii) a Qualifying Trust, but only to the
extent of its Family Percentage Holding of voting securities or rights to
control or direct the voting securities of the Company at the time of the
determination.
"Qualifying Trust" means a trust (whether testamentary or inter
vivos) any beneficiary of which is a person referred to in clause (i) or (ii) of
the definition of "Member of the Rogers Family" or the spouse, widow or widower,
for the time being and
60
from time to time, of any person described in subclause (ii)(c), (d) or (e) of
the definition of "Member of the Rogers Family" (provided that such spouse,
widow or widower is living at the date of this Indenture or is born after the
date of this Indenture and before the Perpetuity Date) (all such persons being
hereafter referred to as "Qualified Persons").
"Family Percentage Holding" means the aggregate percentage of the
securities held by a Qualifying Trust representing, directly or indirectly, an
interest in voting securities or rights to control or direct the voting
securities of the Company, that it is reasonable, under all the circumstances,
to regard as being held beneficially for Qualified Persons (or any class
consisting of two or more Qualified Persons); provided always that in
calculating the Family Percentage Holding (A) in respect of any power of
appointment or discretionary trust capable of being exercised in favor of any of
the Qualified Persons such trust or power shall be deemed to have been exercised
in favor of Qualified Persons until such trust or power has been otherwise
exercised; (B) where any beneficiary of a Qualifying Trust has assigned,
transferred or conveyed, in any manner whatsoever, his or her beneficial
interest to another person, then, for the purpose of determining the Family
Percentage Holding in respect of such Qualifying Trust, the person to whom such
interest has been assigned, transferred or conveyed shall be regarded as the
only person beneficially interested in the Qualifying Trust in respect of such
interest but in the case where the interest is so assigned, transferred or
conveyed is an interest in a discretionary trust or is an interest which may
arise as a result of the exercise in favor of the assignor of a discretionary
power of appointment and such discretionary trust or power of appointment is
also capable of being exercised in favor of persons described in clause (i) or
(ii) of the definition of "Member of the Rogers Family", such discretionary
trust or power shall be deemed to have been so exercised in favor of Qualified
Persons until it has in fact been exercised; and (C) the interest of any
Permitted Residuary Beneficiary shall be ignored until its interest has
indefeasibly vested.
"Permitted Residuary Beneficiary" means any person who is a
beneficiary of a Qualifying Trust and, under the terms of the Qualifying Trust,
is entitled to distributions out of the capital of such Qualifying Trust only
after the death of all of the Qualified Persons who are beneficiaries of such
Qualifying Trust.
"Perpetuity Date" means the date that is 21 years, less one day,
from the date of the death of the last survivor of the individuals described in
clause (i) or subclause (ii)(a), (b), (c), (d) or (e) of the definition of
"Member of the Rogers Family", who are living at the date of this Indenture.
SECTION 502. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.
If (i) an Event of Default (other than an Event of Default specified
in Section 501(f), 501(g), 501(h) or 501(k)) occurs and is continuing, or (ii)
an Event of Default specified in Section 501(k) occurs and is continuing and the
Company (or a third party) fails in any material respect to comply with any of
the provisions of Section 516, then and in every such case the Trustee or the
Holders of not less than 25% in principal amount of the Outstanding Securities
may declare the principal of all the Securities to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee
61
if given by Holders), and upon any such declaration such principal shall become
immediately due and payable. If an Event of Default specified in Section 501(f),
501(g) or 501(h) occurs and is continuing, then the principal of all the
Securities shall ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holder. The
Company will deliver to the Trustee, within 10 days after the occurrence
thereof, notice of any acceleration or default in payment at maturity of Debt
referred to in Section 501(d).
At any time after a declaration of acceleration has been made and
before a judgment or decree for payment of the money due has been obtained by
the Trustee as hereinafter in this Article provided, the Holders of a majority
in principal amount of the Outstanding Securities, by written notice to the
Company and the Trustee, may rescind and annul such declaration and its
consequences if:
(a) the Company has paid or deposited, or caused to be paid or
deposited, with the Trustee a sum sufficient to pay
(1) all overdue interest on all Securities,
(2) the principal of (and premium, if any, on) any
Securities that have become due otherwise than by such declaration
of acceleration and interest thereon at the rate borne by the
Securities,
(3) to the extent that payment of such interest is lawful,
interest upon overdue interest at the rate borne by the Securities,
and
(4) all sums paid or advanced by the Trustee hereunder, the
reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel and any other amounts due to the
Trustee pursuant to Section 607; and
(b) all Events of Default, other than the non-payment of principal
of Securities which have become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 513.
No such rescission shall affect any subsequent default or impair any right
consequent thereon.
Notwithstanding the preceding paragraph, in the event of a
declaration of acceleration in respect of the Securities because an Event of
Default specified in Section 501(d) shall have occurred and be continuing, such
declaration of acceleration shall be automatically annulled if the Debt that is
the subject of such Event of Default has been discharged or the holders thereof
have rescinded their declaration of acceleration in respect of such Debt, and
written notice of such discharge or rescission, as the case may be, shall have
been given to the Trustee by the Company and countersigned by the holders of
such Debt or a trustee, fiduciary or agent for such holders, within 30 days
after such declaration of acceleration in respect of the Securities, and no
other Event of Default
62
has occurred during such 30-day period which has not been cured or waived during
such period.
SECTION 503. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
TRUSTEE.
The Company covenants that if:
(a) default is made in the payment of any interest or Additional
Amounts on any Security when such interest or Additional Amounts becomes
due and payable and such default continues for a period of 30 days, or
(b) default is made in the payment of the principal of (or
premium, if any, on) any Security at the Maturity thereof,
the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal (and premium, if any) and interest, with interest upon
the overdue principal (and premium, if any) and, to the extent that payment of
such interest shall be legally enforceable, upon overdue installments of
interest, at the rate borne by the Securities; and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.
If the Company fails to pay such amounts forthwith upon such demand,
the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid and may
prosecute such proceeding to judgment or final decree, and may enforce the same
against the Company or any other obligor upon the Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of
the property of the Company or any other obligor upon the Securities, wherever
situated.
If an Event of Default occurs and is continuing, the Trustee may in
its discretion (i) proceed to protect and enforce its rights and the rights of
the Holders under this Indenture and the Pledge Agreement by such appropriate
private or judicial proceedings as the Trustee shall deem most effectual to
protect and enforce such rights, including, without limitation, demanding
payment of the Trust Bond and exercising any rights or powers conferred on the
Trustee, as the holder of the Trust Bond, under the Pledge Agreement and the
Deed of Trust or (ii) make requests of, give directions to, or make demands of,
the Deed Trustee (whether by participation in the giving or adoption of a
Bondholders' Resolution or otherwise pursuant to the Collateral Documents) to
proceed to protect and enforce the rights of the Deed Trustee, the Trustee and
the Deed of Trust Bondholders under the Collateral Documents by such appropriate
private or judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in the Collateral Documents or in aid of the exercise of
any power granted therein, or to enforce any other proper remedy, including
appointment of a receiver for the Deed of Trust
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Collateral and foreclosure, realization and sale of Deed of Trust Collateral
pursuant to the terms of the Collateral Documents. The Trustee shall be entitled
to sue and recover judgment as aforesaid or make request as aforesaid to the
Deed Trustee to sue to enforce any Lien of the Collateral Documents, in either
case, either before, after or during the pendency of any other proceeding for
the enforcement of any Lien of the Collateral Documents, and the right of the
Trustee or the Deed Trustee to recover such judgment shall not be affected by
any sale under any of the Collateral Documents or by the exercise of any right,
power or remedy for the enforcement of the provisions of any of the Collateral
Documents, or the foreclosure or enforcement of any Lien of the Collateral
Documents. No recovery of any such judgment upon any property of the Company
shall affect or impair the Lien on the Deed of Trust Collateral or any rights,
powers or remedies of the Trustee or the Holders.
SECTION 504. TRUSTEE MAY FILE PROOFS OF CLAIM.
In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue principal or interest) shall be entitled
and empowered, by intervention in such proceeding or otherwise,
(a) to file and prove a claim for the whole amount of principal
(and premium, if any) and interest owing and unpaid in respect of the
Securities and to file such other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee (including any
claim for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due
to the Trustee pursuant to Section 607) and of the Holders allowed in such
judicial proceeding, and
(b) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or
similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that
the Trustee shall consent to the making of such payments directly to the
Holders, to pay the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, and any other amounts due to the Trustee under Section
607.
Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any proposal,
plan of reorganization, arrangement, adjustment or composition or other similar
arrangement
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affecting the Securities or the rights of any Holder thereof, or to authorize
the Trustee to vote in respect of the claim of any Holder in any such
proceeding.
SECTION 505. TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF
SECURITIES.
All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name and as trustee of an express trust, and any recovery of judgment
shall, after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due to the Trustee pursuant to Section 607, be for the ratable benefit
of the Holders of the Securities in respect of which such judgment has been
recovered.
SECTION 506. APPLICATION OF MONEY COLLECTED.
Subject to the Inter-Creditor Agreement, any money collected by the
Trustee pursuant to this Article shall be applied in the following order, at the
date or dates fixed by the Trustee and, in case of the distribution of such
money on account of principal (or premium, if any) or interest, upon
presentation of the Securities and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:
First: To the payment of all amounts due the Trustee under Section
607;
Second: To the payment of the amounts then due and unpaid upon the
Securities for principal (and premium, if any) and interest, in respect of
which or for the benefit of which such money has been collected, ratably,
without preference or priority of any kind, according to the amounts due
and payable on such Securities for principal (and premium, if any) and
interest; and
Third: The balance, if any, to the Company.
SECTION 507. LIMITATION ON SUITS.
No Holder of any Securities shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture, any
Collateral Document or the Securities, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless
(a) such Holder has previously given written notice to the Trustee
of a continuing Event of Default;
(b) the Holders of not less than 25% in principal amount of the
Outstanding Securities shall have made written request to the Trustee to
institute
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proceedings in respect of such Event of Default in its own name as Trustee
hereunder;
(c) such Holder or Holders have offered to the Trustee reasonable
indemnity against the costs, expenses and liabilities to be incurred in
compliance with such request;
(d) the Trustee for 60 days after its receipt of such notice,
request and offer of indemnity has failed to institute any such
proceeding; and
(e) no direction inconsistent with such written request has been
given to the Trustee during such 60-day period by the Holders of a
majority in principal amount of the Outstanding Securities;
it being understood and intended that no one or more Holders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture or any Collateral Document to affect, disturb or prejudice the
rights of any other Holders, or to obtain or to seek to obtain priority or
preference over any other Holders or to enforce any right under this Indenture
or the Pledge Agreement except in the manner provided in this Indenture or the
Pledge Agreement and for the equal and ratable benefit of all the Holders.
SECTION 508. UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL,
PREMIUM AND INTEREST.
Notwithstanding any other provision in this Indenture and any
Collateral Document, the Holder of any Security shall have the right, which is
absolute and unconditional, to receive payment of the principal of (and premium,
if any) and (subject to Section 309) interest and any Additional Amounts on such
Security on the respective due dates expressed in such Security (or, in the case
of redemption, on the Redemption Date) and to institute suit for the enforcement
of any such payment, and such rights shall not be impaired without the consent
of such Holder.
SECTION 509. RESTORATION OF RIGHTS AND REMEDIES.
If the Trustee or any Holder has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case the Company, the
Trustee and the Holders shall, subject to any determination in such proceeding,
be restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding had been instituted.
SECTION 510. RIGHTS AND REMEDIES CUMULATIVE.
Except as provided in Section 308, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be
66
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.
SECTION 511. DELAY OR OMISSION NOT WAIVER.
No delay or omission of the Trustee or of any Holder of any Security
to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein. Every right and remedy given by this Article or by law
to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be.
SECTION 512. CONTROL BY HOLDERS.
The Holders of a majority in principal amount of the Outstanding
Securities shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred on the Trustee, including, without limitation,
powers conferred on it by the Pledge Agreement or the Deed of Trust, provided
that
(a) such direction shall not be in conflict with any rule of law
or with this Indenture or expose the Trustee to personal liability, and
(b) subject to the provisions of the Trust Indenture Act, the
Trustee may take any other action deemed proper by the Trustee which is
not inconsistent with such direction.
SECTION 513. WAIVER OF PAST DEFAULTS.
The Holders of a majority in principal amount of the Outstanding
Securities may on behalf of the Holders of all the Securities waive any past
default hereunder and its consequences, except a default
(a) in the payment of the principal of (or premium, if any) or
interest on any Security, or
(b) arising from a Change in Control Triggering Event, or
(c) in respect of a covenant or provision hereof which under
Article Nine cannot be modified or amended without the consent of the
Holder of each Outstanding Security affected.
Upon any such waiver, such default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereon.
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SECTION 514. UNDERTAKING FOR COSTS.
All parties to this Indenture agree, and each Holder of any Security
by its acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in
the aggregate more than 10% in principal amount of the Outstanding Securities,
or to any suit instituted by any Holder for the enforcement of the payment of
the principal of (or premium, if any) or interest on any Security on or after
the respective Stated Maturities expressed in such Security (or, in the case of
redemption, on or after the Redemption Date).
SECTION 515. WAIVER OF STAY, EXTENSION OR USURY LAWS.
The Company covenants (to the extent that it may lawfully do so)
that it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law
wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Company (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law, and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and permit
the execution of every such power as though no such law had been enacted.
SECTION 516. CHANGE IN CONTROL OFFER.
(a) The Securities may not be accelerated pursuant to Section 502
following an Event of Default under Section 501(k) and such Event of
Default shall be cured if the Company complies with the provisions of this
Section 516. If the Company elects to cure such Event of Default, within
20 Business Days of the occurrence of an Event of Default under Section
501(k), (i) the Company shall notify the Trustee in writing of the
occurrence of the Change in Control Triggering Event and shall make an
offer to purchase (the "Change in Control Offer") the Securities at a
purchase price equal to 101% of the principal amount thereof plus any
accrued and unpaid interest thereon to the Change in Control Purchase Date
(as hereinafter defined) (the "Change in Control Purchase Price") on the
date that is 40 Business Days after the occurrence of the Change in
Control Triggering Event (the "Change in Control Purchase Date"), (ii) the
Trustee shall mail a copy of the Change in Control Offer to each Holder
and (iii) the Company shall cause a notice of the Change in Control Offer
to be sent at least once to the Dow Jones News Service or similar business
news service in the United States and Canada NewsWire Ltd. service or
similar news service in Canada. The Change in Control Offer shall remain
open from the time such offer is made until
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the Change in Control Purchase Date. The Trustee shall be under no
obligation to ascertain the occurrence of a Change in Control Triggering
Event or to give notice with respect thereto other than as provided above
upon receipt of a Change in Control Offer from the Company. The Trustee
may conclusively assume, in the absence of receipt of a Change in Control
Offer from the Company, that no Change in Control Triggering Event has
occurred. The Change in Control Offer shall include a form of Change in
Control Purchase Notice to be completed by the Holder and shall state:
(1) the events causing a Change in Control Triggering Event
and the date such Change in Control Triggering Event is deemed to
have occurred;
(2) that the Change in Control Offer is being made pursuant
to this Section 516(a) and that all Securities properly tendered
pursuant to the Change in Control Offer will be accepted for
payment;
(3) the date by which the Change in Control Purchase Notice
pursuant to this Section 516 must be given;
(4) the Change in Control Purchase Date;
(5) the Change in Control Purchase Price;
(6) the names and addresses of the Paying Agent and the
offices or agencies referred to in Section 1002;
(7) that Securities must be surrendered to the Paying Agent
at the office of the Paying Agent or to an office or agency referred
to in Section 1002 to collect payment;
(8) that the Change in Control Purchase Price for any
Security as to which a Change in Control Purchase Notice has been
duly given and not withdrawn will be paid promptly upon the later of
the first Business Day following the Change in Control Purchase Date
and the time of surrender of such Security as described in clause
(7) above;
(9) the procedures the Holder must follow to accept the
Change in Control Offer; and
(10) the procedures for withdrawing a Change in Control
Purchase Notice.
(b) A Holder may accept a Change in Control Offer by delivering to
the Paying Agent at the office of the Paying Agent or to an office or
agency referred to in Section 1002 a written notice (a "Change in Control
Purchase Notice") at any time prior to the close of business on the Change
in Control Purchase Date, stating:
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(1) that such Holder elects to have a Security purchased
pursuant to the Change in Control Offer;
(2) the principal amount of the Security that the Holder
elects to have purchased by the Company, which amount must be
U.S.$1,000 or an integral multiple thereof, and the certificate
numbers of the Securities to be delivered by such Holder for
purchase by the Company; and
(3) that such Security shall be purchased on the Change in
Control Purchase Date pursuant to the terms and conditions specified
in this Indenture.
The delivery of such Security (together with all necessary
endorsements) to the Paying Agent at the office of the Paying Agent or to an
office or agency referred to in Section 1002 prior to, on or after the Change in
Control Purchase Date shall be a condition to the receipt by the Holder of the
Change in Control Purchase Price therefor; provided that such Change in Control
Purchase Price shall be so paid pursuant to this Section 516 only if the
Security so delivered to the Paying Agent or to an office or agency referred to
in Section 1002 shall conform in all respects to the description thereof set
forth in the related Change in Control Purchase Notice.
The Company shall purchase from the Holder thereof, pursuant to this
Section 516, a portion of a Security if the principal amount of such portion is
U.S.$1,000 or an integral multiple of U.S.$1,000. Provisions of this Indenture
that apply to the purchase of all of a Security also apply to the purchase of a
portion of such Security.
Any purchase by the Company contemplated pursuant to the provisions
of this Section 516 shall be consummated by the delivery by the Company of the
consideration to be received by the Holder promptly upon the later of (a) the
first Business Day following the Change in Control Purchase Date and (b) the
time of delivery of the Security by the Holder to the Paying Agent or to an
office or agency referred to in Section 1002 in the manner required by this
Section 516.
Notwithstanding anything herein to the contrary, any Holder
delivering to the Paying Agent, at the office of the Paying Agent or an office
or agency referred to in Section 1002, the Change in Control Purchase Notice
contemplated by this Section 516(b) shall have the right to withdraw such Change
in Control Purchase Notice at any time prior to the close of business on the
Change in Control Purchase Date by delivery of a written notice of withdrawal to
the Paying Agent or to an office or agency referred to in Section 1002 in
accordance with Section 1109.
The Paying Agent or the office or agency referred to in Section 1002
shall promptly notify the Company of the receipt by the former of any Change in
Control Purchase Notice or written notice of withdrawal thereof.
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(c) The Securities may also not be accelerated pursuant to Section
502 following an Event of Default under Section 501(k) and such Event of
Default shall also be cured if a third party makes and consummates a
Change in Control Offer in the manner and at the times and otherwise in
compliance with this Section 516; provided, however, that any such third
party shall be subject to Section 1021 in respect of any amounts paid by
such third party hereunder (for this purpose, Section 1021 is modified by
replacing "Company" with the name of the third party) and such Event of
Default shall be cured only if such third party complies with Section 1021
(as modified) or if the Company satisfies the third party's obligations
under such Section.
ARTICLE SIX
THE TRUSTEE
SECTION 601. CERTAIN DUTIES AND RESPONSIBILITIES.
(a) Except during the continuance of an Event of Default,
(1) the Trustee undertakes to perform such duties and only
such duties as are specifically set forth in this Indenture, and no
implied covenants or obligations shall be read into this Indenture
against the Trustee; and
(2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Trustee and conforming to the requirements
of this Indenture; but in the case of any such certificates or
opinions which by any provision hereof are specifically required to
be furnished to the Trustee, the Trustee shall be under a duty to
examine the same to determine whether or not they conform to the
requirements of this Indenture.
(b) In case an Event of Default has occurred and is continuing,
the Trustee shall exercise such of the rights and powers vested in it by
this Indenture, and use the same degree of care and skill in their
exercise, as a prudent person would exercise or use under the
circumstances in the conduct of such person's own affairs.
(c) No provision of this Indenture shall be construed to relieve
the Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:
(1) this Subsection shall not be construed to limit the
effect of Subsection (a) of this Section;
(2) the Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it
shall be proved that the Trustee was negligent in ascertaining the
pertinent facts;
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(3) the Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in good faith in
accordance with the direction of the Holders of a majority in
principal amount of the Outstanding Securities relating to the time,
method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred
upon the Trustee, under this Indenture; and
(4) no provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in
the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably
assured to it.
(d) Whether or not therein expressly so provided, every provision
of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of
this Section.
SECTION 602. NOTICE OF DEFAULTS.
The Trustee shall, within a reasonable time but not exceeding 60
days after the occurrence of any Default, transmit by mail to all Holders, as
their names and addresses appear in the Security Register, notice of such
Default hereunder known to the Trustee, unless such Default is not an Event of
Default and shall have been cured or waived; provided, however, that, except in
the case of a Default in the payment of the principal of (or premium, if any) or
interest on any Security, the Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Trustee in good
faith determines that the withholding of such notice is in the best interests of
the Holders and the Trustee so advises the Company in writing.
Where notice of the occurrence of any Default is given by the
Trustee under the preceding paragraph and the Default is thereafter cured, the
Trustee shall, within a reasonable time but not exceeding 60 days after the
Trustee becomes aware of the curing of the Default, transmit by mail to all
Holders, as their names and addresses appear in the Security Register, notice
that the Default is no longer continuing.
SECTION 603. CERTAIN RIGHTS OF TRUSTEE.
Except as otherwise provided in Section 601:
(a) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented
by the proper party or parties;
72
(b) any request or direction of the Company mentioned herein shall
be sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors may be sufficiently evidenced by a
Board Resolution;
(c) whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Trustee (unless
other evidence be herein specifically prescribed) may, in the absence of
bad faith on its part, rely upon an Officers' Certificate;
(d) the Trustee may consult with counsel and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon;
(e) the Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Indenture at the request or
direction of any of the Holders pursuant to this Indenture, unless such
Holders shall have offered to the Trustee reasonable security or indemnity
against the costs, expenses and liabilities which might be incurred by it
in compliance with such request or direction;
(f) the Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit,
and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and
premises of the Company, personally or by agent or attorney; and
(g) the Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by
it hereunder.
SECTION 604. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.
The recitals contained herein and in the Securities, except the
Trustee's certificate of authentication, shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this
Indenture, the Pledge Agreement, the Collateral Documents or the Securities or
the security created hereunder or thereunder. The Trustee shall not be
accountable for the use or application by the Company of Securities or the
proceeds thereof.
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SECTION 605. MAY HOLD SECURITIES.
The Trustee, any Paying Agent, Security Registrar or any other agent
of the Company, in its individual or any other capacity, may become the owner or
pledgee of Securities, and, subject to the Trust Indenture Act, may otherwise
deal with the Company with the same rights it would have if it were not Trustee,
Paying Agent, Security Registrar or such other agent.
SECTION 606. MONEY HELD IN TRUST.
Money held by the Trustee in trust hereunder need not be segregated
from other funds except to the extent required by law. The Trustee shall be
under no liability for interest on any money received by it hereunder except as
otherwise agreed with the Company.
SECTION 607. COMPENSATION, REIMBURSEMENT AND INDEMNITY.
The Company agrees:
(a) to pay to the Trustee from time to time reasonable
compensation for all services rendered by it hereunder (which compensation
shall not be limited by any provision of law in regard to the compensation
of a trustee of an express trust);
(b) except as otherwise expressly provided herein, to reimburse
the Trustee upon its request for all reasonable expenses, disbursements
and advances incurred or made by the Trustee in accordance with any
provision of this Indenture (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligence
or bad faith; and
(c) to indemnify the Trustee for, and to hold it harmless against,
any loss, liability or expense incurred without negligence or bad faith on
its part, arising out of or in connection with the acceptance or
administration of this trust, including the costs and expenses of
defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder.
As security for the performance of the obligations of the Company
under this Section, the Trustee shall have a claim and lien prior to the
Securities upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the benefit of Holders of particular Securities.
The Company's payment of indemnity obligations pursuant to this
Section 607 shall survive the discharge of this Indenture and the expiry of any
trusts created hereby and the resignation or removal of the Trustee. When the
Trustee incurs expenses after the occurrence of a Default specified in Section
501(f), (g) or (h), the expenses are intended to constitute expenses of
administration under any Bankruptcy Law.
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SECTION 608. CONFLICTING INTERESTS.
The Trustee shall comply with the terms of Trust Indenture Act
Section 310(b).
SECTION 609. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.
There shall at all times be a Trustee hereunder which shall be
eligible to act as Trustee under Trust Indenture Act Section 310(a)(1) and which
shall have a combined capital and surplus of at least U.S.$50,000,000 and have
its Corporate Trust Office in The City of New York to the extent there is such
an institution eligible and willing to serve. If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements
of federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article.
SECTION 610. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.
(a) No resignation or removal of the Trustee and no appointment of
a successor Trustee pursuant to this Article shall become effective until
the acceptance of appointment by the successor Trustee under Section 611.
(b) The Trustee may resign at any time by giving written notice
thereof to the Company. If an instrument of acceptance by a successor
Trustee shall not have been delivered to the resigning Trustee within 30
days after the giving of such notice of resignation, the resigning Trustee
may petition any court of competent jurisdiction (at the Company's
expense) for the appointment of a successor Trustee.
(c) The Trustee may be removed at any time by an Act of the
Holders of a majority in principal amount of the Outstanding Securities,
delivered to the Trustee and to the Company.
(d) If at any time:
(1) the Trustee shall fail to comply with the provisions of
Section 608 and shall fail to resign after written request therefor
by the Company or by any Holder who has been a bona fide Holder of a
Security for at least six months, or
(2) the Trustee shall cease to be eligible under Section
609, or
(3) the Trustee shall become incapable of acting or shall be
adjudged a bankrupt or insolvent, or a receiver of the Trustee or of
its property shall be appointed or any public officer shall take
charge or
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control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation,
then, in any such case, (i) the Company, by a Board Resolution, may remove
the Trustee, or (ii) subject to Section 514, in the case of clause (1)
above, the Holder of any Security who has been a bona fide Holder of a
Security for at least six months, and in the case of clauses (2) and (3)
above, the Holder of any Security and any other interested party may, on
behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee and the appointment
of a successor Trustee.
(e) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any
cause, the Company, by a Board Resolution, shall promptly appoint a
successor Trustee. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee shall
be appointed by Act of the Holders of a majority in principal amount of
the Outstanding Securities delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment in accordance with Section 611, become the
successor Trustee and supersede the successor Trustee appointed by the
Company. If no successor Trustee shall have been so appointed by the
Company or the Holders of the Securities and so accepted appointment, the
retiring Trustee or the Holder of any Security who has been a bona fide
Holder for at least six months may on behalf of itself and all others
similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Trustee.
(f) The Company shall give notice of each resignation and each
removal of the Trustee and each appointment of a successor Trustee by
mailing written notice of such event by first-class mail, postage prepaid,
to the Holders of Securities as their names and addresses appear in the
Security Register. Each notice shall include the name of the successor
Trustee and the address of its Corporate Trust Office.
SECTION 611. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.
Every successor Trustee appointed hereunder shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; but, on request of the
Company or the successor Trustee, such retiring Trustee shall, upon payment of
all amounts due it under Section 607, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee, and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder, subject
to the claim and lien provided for in Section 607. Upon request of any such
successor Trustee, the
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Company shall execute any and all instruments for more fully and certainly
vesting in and confirming to such successor Trustee all such rights, powers and
trusts.
No successor Trustee shall accept its appointment unless at the time
of such acceptance such successor Trustee shall be qualified and eligible under
this Article.
SECTION 612. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO
BUSINESS.
Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of such Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any of the parties hereto. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to the authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.
SECTION 613. TRUSTEE NOT TO BE APPOINTED RECEIVER.
Neither the Trustee nor any related Person, as defined in the
Business Corporations Act (Ontario), to the Trustee, shall be appointed a
receiver or receiver and manager or liquidator of all or any part of the assets
or undertaking of the Company.
SECTION 614. ACCEPTANCE OF TRUSTS.
The Trustee hereby accepts the trusts imposed upon it by this
Indenture and covenants and agrees to perform the same as herein expressed.
ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701. DISCLOSURE OF NAMES AND ADDRESSES OF HOLDERS.
(a) Upon application to the Trustee in accordance with the Trust
Indenture Act, Holders may communicate pursuant to the Trust Indenture Act
with other Holders with respect to their rights under this Indenture or
the Securities.
(b) In addition, a Holder may, upon payment to the Trustee of a
reasonable fee and subject to compliance with any applicable requirement
of the Trust Indenture Act, require the Trustee to furnish within 10 days
after receiving the affidavit or statutory declaration referred to below,
a list setting out (i) the name and address of every registered Holder,
(ii) the aggregate principal amount of Securities owned by each registered
Holder and (iii) the aggregate principal
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amount of Outstanding Securities, each as shown on the records of the
Trustee on the day that the affidavit or statutory declaration is
delivered to the Trustee. The affidavit or statutory declaration, as the
case may be, shall contain (x) the name, address and occupation of the
Holder, (y) where the Holder is a corporation, its name and address for
service and (z) a statement that the list will not be used except in
connection with an effort to influence the voting of the Holders, an offer
to acquire Securities, or any other matter relating to the Securities or
the affairs of the Company. Where the Holder is a corporation, the
affidavit or statutory declaration shall be made by a director or officer
of the corporation.
(c) Every Holder of Securities, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the
Trustee shall be held accountable by reason of the disclosure of such list
of the names and addresses of the Holders, regardless of the source from
which such information was derived, and that the Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made
under the Trust Indenture Act.
(d) The Company shall comply with the terms of Trust Indenture Act
Section 312(a).
SECTION 702. REPORTS BY TRUSTEE.
Within 60 days after May 15 of each year commencing with the first
May 15 after the first issuance of Securities, the Trustee shall transmit by
mail to all Holders, as their names and addresses appear in the Security
Register, as provided in Trust Indenture Act Section 313(c), a brief report
dated as of such May 15 if required by Trust Indenture Act Section 313(a).
SECTION 703. REPORTS BY COMPANY.
The Company shall:
(a) file with the Trustee, within 30 days after the Company is
required to file the same with the Commission, copies of the annual
reports and of the information, documents and other reports (or copies of
such portions of any of the foregoing as the Commission may from time to
time by rules and regulations prescribe) which the Company may be required
to file with the Commission pursuant to Section 13 or Section 15(d) of the
Exchange Act; or, if the Company is not required to file information,
documents or reports pursuant to either of said Sections, then it shall
file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports which may be
required pursuant to Section 13 of the Exchange Act in respect of a
security listed and registered on a national securities exchange as may be
prescribed from time to time in such rules and regulations;
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(b) file with the Trustee and the Commission, in accordance with
rules and regulations prescribed from time to time by the Commission, such
additional information, documents and reports with respect to compliance
by the Company, as the case may be, with the conditions and covenants of
this Indenture as may be required from time to time by such rules and
regulations; and
(c) transmit by mail to all Holders, as their names and addresses
appear in the Security Register, within 30 days after the filing thereof
with the Trustee, in the manner and to the extent provided in Trust
Indenture Act Section 313(c), such summaries of any information, documents
and reports required to be filed by the Company pursuant to Subsections
(a) and (b) of this Section as may be required by rules and regulations
prescribed from time to time by the Commission.
ARTICLE EIGHT
AMALGAMATION, CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
SECTION 801. COMPANY MAY AMALGAMATE, ETC., ONLY ON CERTAIN TERMS.
The Company shall not amalgamate or consolidate with or merge with
or into any other Person or convey, transfer, lease or otherwise dispose of its
properties and assets substantially as an entirety to any Person by liquidation,
winding-up or otherwise (in one transaction or a series of related transactions)
unless:
(a) either (1) the Company shall be the continuing corporation or
(2) the Person (if other than the Company) formed by such amalgamation or
consolidation or into which the Company is merged or the Person which
acquires by conveyance, transfer, lease or other disposition the
properties and assets of the Company substantially as an entirety (i)
shall be a corporation, partnership or trust organized and validly
existing under (A) the laws of the United States of America or any State
thereof or the District of Columbia or (B) the federal laws of Canada or
any Province thereof and (ii) shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, all of the obligations of the Company under
the Securities, this Indenture and, prior to the Release Date, the
Collateral Documents;
(b) immediately after giving effect to such transaction (and
treating any Debt which becomes an obligation of the Company or a
Subsidiary in connection with or as a result of such transaction as having
been incurred at the time of such transaction), no Default or Event of
Default shall have occurred and be continuing;
(c) immediately after giving effect to such transaction (and
treating any Debt which becomes an obligation of the Company or a
Subsidiary in connection with or as a result of such transaction as having
been incurred at the
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time of such transaction), the Company (in the case of clause (1) of
Subsection (a) above) or such Person (in the case of clause (2) of
Subsection (a) above) could incur at least Cdn$1.00 of additional Debt
pursuant to Section 1008 hereof (determined in either case on a
Consolidated basis); and
(d) the Company or such Person shall have delivered to the Trustee
an Officers' Certificate and an Opinion of Counsel, each stating that such
amalgamation, consolidation, merger, conveyance, transfer, lease or other
disposition and, if a supplemental indenture is required in connection
with such transaction (or series of transactions), such supplemental
indenture, comply with this Article and that all conditions precedent
herein provided for relating to such transaction have been satisfied.
Notwithstanding the foregoing, without complying with Subsection
801(c), (i) the Company may amalgamate or consolidate with or merge with or into
any Restricted Subsidiary or convey, transfer, lease or otherwise dispose of its
properties and assets substantially as an entirety to any Restricted Subsidiary
and (ii) the Company may amalgamate or consolidate with or merge with or into a
corporation that directly or indirectly owns all the outstanding Capital Stock
of the Company (a "Parent Company") or convey, transfer, lease or otherwise
dispose of its properties and assets substantially as an entirety to a Parent
Company if, at the time of such transaction (or series of transactions), such
Parent Company and any other Parent Company that is a subsidiary of such Parent
Company together have (A) assets that in the aggregate have a fair value (as
determined by the Board of Directors, whose good faith determination shall be
conclusive) of less than Cdn$1,000,000 (other than Capital Stock or Debt of the
Company or any Parent Company that is a subsidiary of such Parent Company) and
(B) an aggregate principal amount of Debt and other liabilities of less than
Cdn$1,000,000 (other than Debt and other liabilities of the Company, any
Restricted Subsidiary or any Parent Company that is a subsidiary of such Parent
Company). For purposes of this Section 801, the term "Debt" shall include
Inter-Company Subordinated Debt.
SECTION 802. SUCCESSOR SUBSTITUTED.
Upon any amalgamation, consolidation or merger, or any conveyance,
transfer, lease or other disposition of the properties and assets of the Company
substantially as an entirety in accordance with Section 801, the successor
Person formed by such amalgamation or consolidation or into which the Company is
merged or the successor Person to which such conveyance, transfer, lease or
other disposition is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor had been named as the Company herein; and
thereafter, except in the case of a lease, the Company shall be discharged from
all obligations and covenants under this Indenture and the Securities.
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ARTICLE NINE
SUPPLEMENTS AND AMENDMENTS TO INDENTURE AND COLLATERAL DOCUMENTS
SECTION 901. SUPPLEMENTAL INDENTURES AND AMENDMENTS WITHOUT CONSENT
OF HOLDERS.
Without the consent of any Holders, the Company, when authorized by
a Board Resolution, and the Trustee, at any time and from time to time, may
enter into one or more indentures supplemental hereto or one or more amendments
to the Collateral Documents, in form satisfactory to the Trustee, for any of the
following purposes:
(a) to evidence the succession of another Person to the Company
and the assumption by any such successor of the covenants of the Company
herein and in the Securities or the Collateral Documents, as the case may
be;
(b) to add to the covenants of the Company for the benefit of the
Holders, or to surrender any right or power herein or in the Securities or
the Collateral Documents conferred upon the Company;
(c) to cure any ambiguity, to correct or supplement any provision
herein or in any Collateral Document which may be defective or
inconsistent with any other provision herein or therein, or to make any
other provisions with respect to matters or questions arising under this
Indenture or under any Collateral Document; provided that, in each case,
such provisions shall not adversely affect the interests of the Holders in
any material respect;
(d) to issue Additional Securities as provided in Section 301;
(e) to further secure the Securities; or
(f) to make any other change that does not adversely affect the
rights of any Holder.
SECTION 902. ACTIONS BY THE TRUSTEE UNDER THE DEED OF TRUST AND
CERTAIN AMENDMENTS TO THE INTER-CREDITOR AGREEMENT WITHOUT CONSENT OF HOLDERS
(a) In the event that (i) an Event of Default shall have occurred
and the Trustee shall have demanded payment of the Trust Bond pursuant to
Section 6.01 of the Deed of Trust, and (ii) thereafter all existing Events
of Default shall have been waived, rescinded, cured or annulled in
accordance with the provisions of Article Five and the Company shall have
furnished to the Trustee an Officers' Certificate to the foregoing effect
and requesting that the Trustee waive its demand for payment of the Trust
Bond, then the Trustee shall, without the consent of any Holders, waive
such demand pursuant to Section 6.08 of the Deed of Trust.
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(b) In the event that the Trustee shall receive an Officers'
Certificate (i) to the effect that the Company proposes to issue specified
additional Debt to be secured by the pledge of a new Deed of Trust Bond
having the same priority under the Deed of Trust and the Inter-Creditor
Agreement with respect to the collateral under the Deed of Trust as the
Trust Bond and that the issuance of such new secured Debt is in compliance
with the terms of this Indenture and with the terms of (including all
waivers and consents granted pursuant to) all other agreements and
instruments pursuant to which any other existing Debt secured by Deed of
Trust Bonds has been issued, and (ii) requesting that the Trustee execute
a Bondholders' Resolution (as defined in the Deed of Trust) authorizing
the issuance, certification and delivery of such additional Deed of Trust
Bond (or cast its votes in favor of such request in person or by proxy at
a meeting of Senior Secured Bondholders held for such purpose), then the
Trustee shall, without consent of any Holder, execute such Bondholders'
Resolution (or so cast its votes in person or by proxy).
(c) In the event that the Trustee shall receive an Officers'
Certificate (i) to the effect that the Company proposes to issue specified
additional Debt to be secured by the pledge of a new Deed of Trust Bond,
that such new Debt will rank prior to or pari passu with the Tranche A
Credit Facility and that the issuance of such new secured Debt is in
compliance with the terms of this Indenture (including Section 1012(vi))
and with the terms of (including all waivers and consents granted pursuant
to) all other agreements and instruments pursuant to which any other
existing Debt secured by Deed of Trust Bonds has been issued, and (ii)
requesting the Trustee to execute a Bondholders' Resolution (as defined in
the Deed of Trust) authorizing the issuance, certification and delivery of
such additional Deed of Trust Bond (or cast its votes in favor of such
request in person or by proxy at a meeting of Senior Secured Bondholders
held for such purposes) and requesting the Trustee to execute an
amendment, supplement, replacement or restatement to the Inter-Creditor
Agreement to effectuate the relative ranking of such new Debt, then the
Trustee, without consent of any Holder, shall execute such Bondholders'
Resolution (or so cast its votes in person or by proxy) and shall execute
such amendment, supplement, replacement or restatement to the
Inter-Creditor Agreement.
(d) In the event that the Trustee shall receive an Officers'
Certificate (i) to the effect that the Board of Directors proposes to
designate a Designated Subsidiary under the Deed of Trust as an
Unrestricted Subsidiary (as defined in the Deed of Trust), that pursuant
to the Deed of Trust such designation may only be effected when authorized
by a Unanimous Bondholders' Resolution (as defined in the Deed of Trust)
and that either (x) such change in designation is in compliance with the
terms of clause (i) of Section 1015(a) of this Indenture and with the
terms of (including all waivers and consents granted pursuant to) all
other agreements and instruments pursuant to which any other existing Debt
secured by Deed of Trust Bonds has been issued or (y) such designation is
being made in connection with a sale, conveyance, transfer or other
disposition of all the Capital Stock of such Designated Subsidiary
pursuant to Section 1016 of this
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Indenture and that such designation is in compliance with the terms of
(including all waivers and consents granted pursuant to) all other
agreements and instruments pursuant to which any other existing Debt
secured by Deed of Trust Bonds has been issued, and (ii) requesting that
the Trustee execute a Unanimous Bondholders' Resolution authorizing such
change in designation (or cast its votes in favor of such request in
person or by proxy at a meeting of Senior Secured Bondholders held for
such purpose), then the Trustee shall, without consent of any Holder,
execute such Unanimous Bondholders' Resolution (or so cast its votes in
person or by proxy).
(e) In the event that the Trustee shall receive an Officer's
Certificate (i) to the effect that the Company proposes to take an action
under the Deed of Trust (other than any action referred to in clause (a),
(b), (c) or (d) above) and (ii) requesting that the Trustee execute a
Bondholders' Resolution or acceptance or take such other action
authorizing the specified action (or cast its vote in favor of such
request in person or by proxy at a meeting of Senior Secured Bondholders
held for such purposes), then the Trustee shall, without consent of any
Holder, execute such Bondholders' Resolution or acceptance or take such
other action (or so cast its votes in person or by proxy); provided that
such action shall neither adversely affect the rights of any Holder nor
the rights of the Trustee as the holder of the Trust Bond or the interest
thereof as a secured creditor under the Deed of Trust and the Trustee
shall have received an Opinion of Counsel in Canada, and, if the Trustee
so requires, an Opinion of Counsel in the United States, to such effect.
(f) In the event that the Trustee shall be required to execute a
Unanimous Bondholders' Resolution under the terms of the Inter-Creditor
Agreement in order to give effect to the priority created thereby, then
the Trustee shall, without consent of any Holder, execute such Unanimous
Bondholders' Resolution in accordance with the terms of the Inter-Creditor
Agreement (or so cast its votes in person or by proxy).
SECTION 903. SUPPLEMENTAL INDENTURES AND CERTAIN AMENDMENTS WITH
CONSENT OF HOLDERS.
With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities, by Act of such Holders delivered
to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may enter into one or more indentures supplemental
hereto or one or more amendments or supplements to the Pledge Agreement for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Indenture or of waiving or modifying in any manner the
rights of the Holders under this Indenture; provided, however, that no such
supplemental indenture, amendment or waiver shall, without the consent of the
Holder of each Outstanding Security affected thereby:
(a) change the Stated Maturity of the principal of, or any
installment of interest on, any Security, or reduce the principal amount
thereof or the rate of
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interest thereon or any premium payable upon the redemption thereof, or
change the coin or currency in which the principal of any Security or any
premium or the interest thereon is payable, or impair the right to
institute suit for the enforcement of any such payment after the Stated
Maturity thereof (or, in the case of redemption, on or after the
Redemption Date); or
(b) reduce the amount of, or change the coin or currency of, or
impair the right to institute suit for the enforcement of, the Change in
Control Purchase Price or the Offered Price; or
(c) reduce the percentage in principal amount of the Outstanding
Securities, the consent of whose Holders is required for any such
supplemental indenture, or the consent of whose Holders is required for
any waiver (of compliance with certain provisions of this Indenture or
certain defaults hereunder and their consequences) provided for in this
Indenture; or
(d) modify any of the provisions of this Section or Sections 513
and 1024, except to increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or waived
without the consent of the Holder of each Security affected thereby; or
(e) permit the creation of any Lien on the Trust Estate or any
part thereof (other than the Lien of the Pledge Agreement) or terminate
the Lien of the Pledge Agreement as to any part of the Trust Estate.
It shall not be necessary for any Act of Holders under this Section
to approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such Act shall approve the substance thereof.
SECTION 904. AMENDMENTS TO COLLATERAL DOCUMENTS.
With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities, by Act of such Holders delivered
to the Company and the Trustee, the Trustee may authorize one or more amendments
or supplements to any Collateral Document (other than the Pledge Agreement),
grant one or more consents or waivers thereunder, or execute one or more
instructions or other documents pursuant thereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions
thereof or of waiving or modifying in any manner the rights or obligations of
the parties thereunder or taking any actions pursuant thereto; provided,
however, that no such amendment, supplement, consent, waiver or instruction or
other document shall, without the consent of the Holder of each Outstanding
Security affected thereby:
(a) modify any of the provisions of the Deed of Trust referred to
in Section 9.09 thereof; or
(b) modify any of the provisions of the Inter-Creditor Agreement
(except as provided in Section 902(c) hereof); or
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(c) except as permitted hereby and by the Deed of Trust, permit
the creation of any Lien ranking prior to or on a parity with the Lien
securing the Trust Bond or any guarantee thereof or terminate the Lien
securing the Trust Bond or any guarantee thereof as to any part of the
Deed of Trust Collateral.
SECTION 905. EXECUTION OF SUPPLEMENTAL INDENTURES.
In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and (subject to the Trust Indenture Act and Section 603 hereof) shall be fully
protected in acting and relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.
SECTION 906. EFFECT OF SUPPLEMENTAL INDENTURES.
Upon the execution of any supplemental indenture under this Article,
this Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.
SECTION 907. CONFORMITY WITH THE TRUST INDENTURE ACT.
Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act as then in effect.
SECTION 908. REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES.
Securities authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall if required by
the Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Company shall so determine,
new Securities so modified as to conform, in the opinion of the Trustee and the
Board of Directors, to any such supplemental indenture may be prepared and
executed by the Company and, upon Company Order, authenticated and delivered by
the Trustee in exchange for Outstanding Securities.
SECTION 909. EXECUTION OF SUBORDINATION AGREEMENTS.
In the event that the Trustee receives an Officers' Certificate (i)
to the effect that the Company or a Restricted Subsidiary proposes to issue Debt
subordinated in right of payment to the Securities or the senior indebtedness of
such Restricted Subsidiary, as the case may be, and that the issuance of such
new subordinated Debt is in compliance with the terms of this Indenture and (ii)
requesting that the Trustee execute a subordination agreement (or instrument of
like effect) with the holders of such subordinated Debt or their representative,
then, upon Company Order, the Trustee shall,
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without the consent of any Holder, execute such subordination agreement (or
instrument of like effect).
ARTICLE TEN
COVENANTS
SECTION 1001. PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.
The Company will duly and punctually pay the principal of (and
premium, if any) and interest on the Securities in accordance with the terms of
the Securities and this Indenture.
SECTION 1002. MAINTENANCE OF OFFICE OR AGENCY.
The Company will maintain in The City of New York an office or
agency where Securities may be presented or surrendered for payment, where
Securities may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Securities and this
Indenture may be served. The Corporate Trust Office of the Trustee shall be such
office or agency of the Company, unless the Company shall designate and maintain
some other office or agency for one or more of such purposes. The Company will
give prompt written notice to the Trustee of any change in the location of any
such office or agency. If at any time the Company shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, surrenders, notices and demands may be made
or served at the Corporate Trust Office of the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such presentations, surrenders,
notices and demands.
The Company may from time to time designate one or more other
offices or agencies (in or outside of The City of New York) where the Securities
may be presented or surrendered for any or all such purposes, and may from time
to time rescind such designation; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain
an office or agency in The City of New York for such purposes. The Company will
give prompt written notice to the Trustee of any such designation or rescission
and any change in the location of any such office or agency.
SECTION 1003. MONEY FOR SECURITY PAYMENTS TO BE HELD IN TRUST.
If the Company shall at any time act as its own Paying Agent, it
will, on or before each due date of the principal of (and premium, if any) or
interest on any of the Securities, segregate and hold in trust for the benefit
of the Persons entitled thereto a sum sufficient to pay the principal (and
premium, if any) or interest so becoming due until such sums shall be paid to
such Persons or otherwise disposed of as herein provided, and will promptly
notify the Trustee of its action or failure so to act.
Whenever the Company shall have one or more Paying Agents for the
Securities, it will, on or before each due date of the principal of (and
premium, if any) or interest on any Securities, deposit with a Paying Agent a
sum in same day funds (or New
86
York Clearing House funds if such deposit is made prior to the date on which
such deposit is required to be made) sufficient to pay the principal (and
premium, if any) or interest so becoming due, such sum to be held in trust for
the benefit of the Persons entitled to such principal, premium or interest and
(unless such Paying Agent is the Trustee) the Company will promptly notify the
Trustee of such action or any failure so to act.
The Company will cause each Paying Agent other than the Trustee to
execute and deliver to the Trustee an instrument in which such Paying Agent
shall agree with the Trustee, subject to the provisions of this Section, that
such Paying Agent will:
(a) hold all sums held by it for the payment of the principal of
(and premium, if any) or interest on Securities in trust for the benefit
of the Persons entitled thereto until such sums shall be paid to such
Persons or otherwise disposed of as herein provided;
(b) give the Trustee notice of any default by the Company (or any
other obligor upon the Securities) in the making of any payment of
principal (and premium, if any) or interest; and
(c) at any time during the continuance of any such default, upon
the written request of the Trustee, forthwith pay to the Trustee all sums
so held in trust by such Paying Agent.
The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to
such money.
Any money deposited with the Trustee or any Paying Agent, or then
held by the Company, in trust for the payment of the principal of (and premium,
if any) or interest on any Security and remaining unclaimed for two years after
such principal (and premium, if any) or interest has become due and payable
shall be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease.
SECTION 1004. CORPORATE EXISTENCE.
Subject to Article Eight, the Company will do or cause to be done
all things necessary to preserve and keep in full force and effect the corporate
existence and corporate power and authority of the Company and each Restricted
Subsidiary; provided, however, that the Company shall not be required to
preserve any such corporate existence
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and corporate power and authority if the Company shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and its Restricted Subsidiaries taken as a whole.
SECTION 1005. PAYMENT OF TAXES AND OTHER CLAIMS.
The Company will pay or discharge or cause to be paid or discharged,
before the same shall become delinquent, (a) all material taxes, assessments and
governmental charges levied or imposed upon the Company or any Restricted
Subsidiary or upon the income, profits or property of the Company or any
Restricted Subsidiary and (b) all material lawful claims for labor, materials
and supplies, which, if unpaid, might by law become a Lien upon the property of
the Company or any Restricted Subsidiary that could produce a material adverse
effect on the Consolidated financial condition of the Company; provided,
however, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings.
SECTION 1006. MAINTENANCE OF PROPERTIES.
The Company will cause all properties owned by the Company or any
Restricted Subsidiary or used or held for use in the conduct of its business or
the business of any Restricted Subsidiary to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment
and will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Company may
be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times, except, in every case, as
and to the extent that the Company may be prevented by fire, strikes, lockouts,
acts of God, inability to obtain labor or materials, governmental restrictions,
enemy action, civil commotion or unavoidable casualty or similar causes beyond
the control of the Company; provided, however, that nothing in this Section
shall prevent the Company from discontinuing the maintenance of any of such
properties if such discontinuance is, in the judgment of the Company, desirable
in the conduct of its business or the business of any Restricted Subsidiary and
not disadvantageous in any material respect to the Holders.
SECTION 1007. INSURANCE.
The Company will, and will cause each Restricted Subsidiary to, at
all times maintain insurance in accordance with the provisions of the Deed of
Trust.
SECTION 1008. LIMITATION ON DEBT.
The Company will not, and will not permit any Restricted Subsidiary
to, create, incur or assume, or directly or indirectly guarantee or in any other
manner become directly or indirectly liable for the payment of, any Debt
(including Acquired Debt), other than Permitted Debt, if, on the date of such
incurrence and after giving effect to the incurrence of such Debt or Acquired
Debt and the receipt and application of the proceeds
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thereof (and, if the proceeds of such new Debt are used to acquire a Person that
becomes a Restricted Subsidiary or an operating business, after giving effect to
all terms of such acquisition, including all reorganizations of indebtedness
effected prior to or at the time of completion of such acquisition), the
Consolidated Debt to Annualized Operating Cash Flow Ratio would be greater than
7.0 to 1.0.
For purposes of this Section 1008, the transfer of Debt of the
Company or a Restricted Subsidiary held by the Company or a Restricted
Subsidiary to any Person (other than the Company or a Restricted Subsidiary)
shall be deemed to be an incurrence of Debt.
For purposes of this Section 1008, the term "Debt" shall include
Inter-Company Subordinated Debt.
SECTION 1009. LIMITATION ON SENIOR DEBT.
The Company will not, and will not permit any Restricted Subsidiary
to, create, incur or assume, or directly or indirectly guarantee or in any other
manner become directly or indirectly liable for the payment of, any Senior Debt
(including Acquired Debt constituting Senior Debt), other than Permitted Debt,
if, on the date of such incurrence and after giving effect to the incurrence of
such Senior Debt or Acquired Debt constituting Senior Debt and the receipt and
application of the proceeds thereof (and, if the proceeds of such new Senior
Debt are used to acquire a Person that becomes a Restricted Subsidiary or an
operating business, after giving effect to all terms of such acquisition,
including all reorganizations of indebtedness effected prior to or at the time
of completion of such acquisition), the Consolidated Senior Debt to Annualized
Operating Cash Flow Ratio would be greater than 6.0 to 1.0.
For purposes of this Section 1009, the transfer of Senior Debt of
the Company or a Restricted Subsidiary held by the Company or a Restricted
Subsidiary to any Person (other than the Company or a Restricted Subsidiary)
shall be deemed to be an incurrence of Senior Debt.
SECTION 1010. LIMITATION ON RESTRICTED PAYMENTS.
The Company will not:
(i) declare or pay any dividend on, or make any distribution to
the holders of, any shares of the Company's Capital Stock (other than
dividends or distributions payable in its Capital Stock (other than
Disqualified Stock) or in options, warrants or other rights to purchase
its Capital Stock (other than Disqualified Stock)), or permit any
Restricted Subsidiary to declare or pay any dividend on, or make any
distribution to the holders of, any shares of such Restricted Subsidiary's
Capital Stock, or
(ii) directly or indirectly purchase, redeem or otherwise acquire
or retire for value, or permit any Subsidiary to, directly or indirectly,
purchase, redeem or otherwise acquire or retire for value, any Capital
Stock of the Company
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or any Restricted Subsidiary (including options, warrants or other rights
to acquire such Capital Stock), or
(iii) pay, or permit any Subsidiary to pay, any interest, principal,
penalty or other amount in respect of any Inter-Company Deeply
Subordinated Debt or Excluded Securities of the Company or any Restricted
Subsidiary (other than any such payment made in additional Inter-Company
Deeply Subordinated Debt, Excluded Securities or Excluded Assets), or
(iv) redeem, repurchase, defease or otherwise acquire or retire for
value, or permit any Subsidiary to, directly or indirectly, redeem,
repurchase, defease or otherwise acquire or retire for value, prior to any
scheduled maturity, scheduled repayment or scheduled sinking fund payment,
any Debt of the Company or any Restricted Subsidiary that is subordinated
(whether pursuant to its terms or by operation of law) in right of payment
to the Securities or the senior indebtedness of such Restricted
Subsidiary, as the case may be, or
(v) pay or permit any Restricted Subsidiary to pay any amount of
Management Fees (including Deferred Management Fees) designated as a
Restricted Payment
(each of the foregoing actions set forth in clauses (i) through (v), other than
any such action that is a Permitted Distribution, being referred to as a
"Restricted Payment") unless:
(a) at the time of such Restricted Payment, no Default or Event of
Default shall have occurred and be continuing, or shall occur as a
consequence of such Restricted Payment,
(b) after giving effect to such Restricted Payment, the aggregate
amount of all Restricted Payments made after the date of this Indenture
shall not exceed the sum (without duplication) of:
(1) Cdn$200,000,000, plus
(2) if greater than zero, the amount determined by
subtracting (x) 1.2 times the aggregate interest expense (excluding
interest on Inter-Company Deeply Subordinated Debt) of the Company
and its Restricted Subsidiaries (determined on a Consolidated basis
in accordance with GAAP) for the period (taken as one accounting
period) from October 1, 1995 to the last day of the fiscal quarter
preceding the date of the proposed Restricted Payment (the
"Computation Period") from (y) Operating Cash Flow for the
Computation Period, plus
(3) the aggregate net proceeds, including the fair market
value of property other than cash (as determined by the Board of
Directors, whose good faith determination shall be conclusive),
received by the Company from the issuance and sale (other than to a
Restricted
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Subsidiary) on or after the date of this Indenture of shares of its
Capital Stock (other than Disqualified Stock), of any options,
warrants or other rights to purchase its Capital Stock (other than
Disqualified Stock) or of Inter-Company Deeply Subordinated Debt of
the Company, plus
(4) the aggregate net proceeds received by the Company from
the issuance or sale (other than to a Restricted Subsidiary) on or
after the date of this Indenture of any Capital Stock (other than
Disqualified Stock) of the Company or of Inter-Company Deeply
Subordinated Debt of the Company upon the conversion of, or exchange
for, Debt of the Company or a Restricted Subsidiary or from the
exercise after the date of this Indenture of any options, warrants
or other rights to acquire Capital Stock (other than Disqualified
Stock) of the Company; and
(c) after giving effect to such Restricted Payment, the Company
could have incurred at least Cdn$1.00 of additional Debt in accordance
with the provisions of Section 1008.
For purposes of subclause (4) above, the net proceeds received by the Company
from any such issuance or sale of its Capital Stock (other than Disqualified
Stock) or Inter-Company Deeply Subordinated Debt of the Company upon the
conversion of, or exchange for, Debt of the Company or any Restricted Subsidiary
shall be deemed to be in an amount equal to (A) the sum of (i) the accreted
value of such Debt on the date of such conversion or exchange and (ii) the
additional cash consideration, if any, received by the Company upon such
conversion or exchange, less any payment on account of fractional shares minus
(B) all expenses incurred in connection with such issuance or sale.
For purposes of this Section 1010, if a particular Restricted
Payment involves a non-cash payment, including a distribution of assets, then
such Restricted Payment shall be deemed to be in an amount equal to the cash
portion of such Restricted Payment, if any, plus an amount equal to the fair
market value of the non-cash portion of such Restricted Payment as determined by
the Board of Directors, whose good faith determination shall be conclusive.
Notwithstanding the foregoing, and so long as no Default or Event of
Default shall have occurred and be continuing, the Company may (1) make any
Permitted Distribution, and a Permitted Distribution shall not thereafter be
counted as a Restricted Payment and (2) make any Permitted Restricted Payment;
provided, however, that such Permitted Restricted Payment shall thereafter be
counted as a Restricted Payment.
For the purposes of this Section 1010, if the Company or any
Restricted Subsidiary ceases to be the obligor under any Inter-Company Deeply
Subordinated Debt or any Excluded Security (other than any Excluded Security
constituting Common Stock) and a Person other than the Company or a Restricted
Subsidiary becomes the obligor thereunder (or the issuer of any Excluded
Security constituting Preferred Stock), the Company or such Restricted
Subsidiary shall be deemed to have made a Restricted Payment in an amount equal
to the accreted value of such Inter-Company Deeply
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Subordinated Debt or Excluded Security constituting indebtedness (or the
redemption price of any Excluded Security constituting Preferred Stock) at the
time of the assumption thereof by such other Person.
SECTION 1011. LIMITATION ON INVESTMENTS.
The Company will not, and will not permit any Restricted Subsidiary
to, make any Investment (other than a Permitted Investment) unless, immediately
before and after giving effect thereto:
(a) no Default or Event of Default shall have occurred and be
continuing; and
(b) the Company could have incurred at least Cdn$1.00 of
additional Debt in accordance with the provisions of Section 1008.
SECTION 1012. LIMITATION ON LIENS.
Prior to the Release Date, the Company will not, and will not permit
any Restricted Subsidiary to, create, affirm, incur, or suffer to exist any Lien
of any kind upon any of its property or assets, now owned or hereafter acquired,
other than:
(i) Liens on Excluded Assets;
(ii) Liens securing Debt under Capital Lease Obligations and/or
Purchase Money Obligations not exceeding at any time an aggregate amount
equal to 10% of the Company's Consolidated Tangible Assets; provided that
no assets or property of the Company or any Restricted Subsidiary (other
than the property acquired in connection with such Capital Lease
Obligation or Purchase Money Obligation) are subject to any Lien securing
such Debt;
(iii) Liens securing Debt of a Person outstanding on the date such
Person becomes a Restricted Subsidiary, provided that such Liens (A) were
not incurred in contemplation of such Person becoming a Restricted
Subsidiary and (B) are not applicable to the Company or any other
Restricted Subsidiary, or the properties or assets of the Company or any
other Restricted Subsidiary;
(iv) Liens on property or assets acquired by the Company or any
Restricted Subsidiary from another Person which are existing at the time
of such acquisition, provided that such Liens (1) were not incurred in
contemplation of the acquisition of such property or assets and (2) are
applicable only to such property or assets;
(v) Liens on the property and assets of the Company or any
Restricted Subsidiary provided or granted to the Deed Trustee pursuant to
the Deed of Trust, including, for greater certainty, Liens securing Debt
(and other related obligations) under any bank credit facility, provided
that (1) such Debt was incurred in compliance with the provisions of this
Indenture, (2) such Liens are
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limited to a pledge of Deed of Trust Bonds and (3) the aggregate amount of
Debt committed under any Tranche A Credit Facility plus the aggregate
amount of all outstanding or committed Tranche A-Type Debt (collectively
"Superior Debt") does not exceed Cdn$600,000,000;
(vi) Liens securing Debt (and other related obligations) if (A)
such Debt was incurred in compliance with the provisions of this
Indenture, (B) such Liens are limited to a pledge of a Deed of Trust Bond
and (C) if such Debt is Tranche A-Type Debt then immediately prior
thereto, and immediately thereafter and after giving effect thereto, (x)
no Default or Event of Default shall exist, (y) the aggregate amount of
Superior Debt does not exceed Cdn$600,000,000 and (z) the ratio of
Superior Debt to the Company's Annualized Operating Cash Flow for the most
recently completed fiscal quarter of the Company does not exceed 3.0 to 1;
(vii) pledges or deposits under worker's compensation laws,
unemployment insurance laws or similar legislation or good faith deposits
in connection with bids, tenders, contracts (other than for the payment of
Debt) or leases or deposits of cash or bonds or other direct obligations
of the United States, Canada or any Canadian province to secure surety or
appeal bonds or deposits as security for contested taxes or import duties
or for the payment of rents;
(viii) Liens imposed by law, such as carriers, warehousemen's, and
mechanics' liens or other liens arising out of judgments or awards with
respect to which an appeal or other proceeding for review is being
prosecuted (and as to which any foreclosure or other enforcement
proceeding shall have been effectively stayed);
(ix) Liens for property taxes not yet subject to penalties for
non-payment or which are being contested in good faith and by appropriate
proceedings (and as to which foreclosure or other enforcement proceedings
shall have been effectively stayed);
(x) Liens in favor of issuers of surety bonds issued in the
ordinary course of business;
(xi) minor survey exceptions, minor encumbrances, easements or
reservations of or rights of others for rights of way, sewers, electric
lines, telegraph and telephone lines and other similar purposes, or zoning
or other restrictions as to the use of real properties or Liens incidental
to the conduct of the business of the Person incurring them or the
ownership of its properties which were not incurred in connection with
Debt or other extensions of credit and which do not in the aggregate
materially detract from the value of such properties or materially impair
their use in the operation of the business of such Person;
(xii) Liens in favor of Bell Canada under any partial system
agreement or related agreement providing for the construction and
installation by Bell
93
Canada of cables, attachments, connectors, support structures, closures
and other equipment in accordance with the plans and specifications of the
Company or any Restricted Subsidiary and the lease by Bell Canada of such
equipment to the Company or any Restricted Subsidiary in accordance with
tariffs published by Bell Canada from time to time as approved by
regulatory authorities, the absence of which would materially and
adversely affect the Company and its Restricted Subsidiaries considered as
a whole;
(xiii) any other Lien existing on the date of this Indenture; and
(xiv) Liens, other than Liens incurred pursuant to the foregoing
clauses (i) to (xiii), securing or otherwise in respect of up to Cdn$20.0
million aggregate amount of obligations of the Company or any Restricted
Subsidiary at any time outstanding.
SECTION 1013. LIMITATION ON MANAGEMENT FEES.
The Company will not, and will not permit any Restricted Subsidiary
to, directly or indirectly, make any payment in respect of Management Fees
(including Deferred Management Fees but excluding Management Fees treated as
Restricted Payments in compliance with Section 1010) unless, immediately before
and after giving effect thereto:
(a) no Default or Event of Default shall have occurred and be
continuing;
(b) the Company could have incurred at least Cdn$1.00 of
additional Debt in accordance with the provisions of Section 1008; and
(c) the sum of the amount of such payment and the amount of all
other payments made in respect of Management Fees (including Deferred
Management Fees) on or after October 1, 1995 would not exceed an amount
equal to 5% of Consolidated Gross Revenues for the period (taken as one
accounting period) from October 1, 1995 to the date of such proposed
payment.
For the purpose of this Section 1013, "Consolidated Gross Revenues"
means the gross revenues of the Company and its Restricted Subsidiaries
determined on a Consolidated basis in accordance with GAAP; provided that (i)
any portion of gross revenues derived directly or indirectly from Excluded
Assets or from Unrestricted Subsidiaries, including dividends or distributions
from Unrestricted Subsidiaries, shall be excluded from such calculation and (ii)
any portion of gross revenues derived directly or indirectly from a Person
(other than a Subsidiary) accounted for by the equity method of accounting shall
be included in such calculation only to the extent of the amount of dividends or
distributions actually paid to the Company or a Restricted Subsidiary by such
Person.
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SECTION 1014. TRANSACTIONS WITH AFFILIATES.
The Company will not, and will not permit any Restricted Subsidiary
to, directly or indirectly, enter into any transaction (including, without
limitation, the purchase, sale, lease or exchange of any property or the
rendering of any service) or series of related transactions with any Affiliate
of the Company on terms that are less favorable to the Company or such
Restricted Subsidiary, as the case may be, than those which might be obtained at
the time of such transaction or series of related transactions from a Person who
is not such an Affiliate; provided, however, that this Section 1014 shall not
limit, or be applicable to, (i) any transaction or series of related
transactions between the Company and any Restricted Subsidiary or between
Restricted Subsidiaries, (ii) any transaction or series of related transactions
involving an aggregate consideration of less than Cdn$5,000,000, (iii) any
Permitted Distribution or Permitted Restricted Payment, (iv) any payment in
respect of Management Fees made in compliance with Section 1013 hereof or (v)
certain existing inter-company agreements and cost sharing arrangements listed
in an Officers' Certificate to be delivered by the Company to the Trustee
concurrently with the execution of this Indenture. In addition, any transaction
or series of related transactions between the Company or any Restricted
Subsidiary and any Affiliate of the Company involving an aggregate consideration
of Cdn$10,000,000 or more must be approved by the Board of Directors. For
purposes of this Section 1014, any transaction or series of related transactions
between the Company or any Restricted Subsidiary and an Affiliate of the Company
that is approved by a majority of the Independent Directors shall be deemed to
be on terms as favorable as those that might be obtained at the time of such
transaction (or series of related transactions) from a Person who is not such an
Affiliate and thus shall be permitted under this Section 1014.
SECTION 1015. RESTRICTED SUBSIDIARIES.
(a) The Board of Directors may designate any Restricted Subsidiary
or any Person that is to become a Subsidiary as an Unrestricted Subsidiary
if (i) such action is in compliance with Section 1011 of this Indenture
and (ii) prior to the Release Date, such Restricted Subsidiary becomes an
Unrestricted Subsidiary (as defined in the Deed of Trust) under the Deed
of Trust.
(b) The Board of Directors may not designate (1) any Unrestricted
Subsidiary as a Restricted Subsidiary or (2) prior to the Release Date,
any Person that is to become a Subsidiary as a Restricted Subsidiary,
unless:
(A) such Unrestricted Subsidiary or such Person is incorporated
or organized in Canada or a Province or territory thereof, or in the
United States or any State thereof or the District of Columbia;
(B) immediately before and after giving effect to such
designation, no Default or Event of Default shall have occurred and
be continuing;
95
(C) immediately after giving effect to such designation on a pro
forma basis (and if such designation is made in connection with the
acquisition of a Person or an operating business that is about to
become a Subsidiary, after giving effect to all terms of such
acquisition, including all reorganizations of indebtedness effected
prior to or at the time of the completion of such acquisition), the
Company could have incurred at least Cdn$1.00 of additional Debt in
accordance with the provisions of Section 1008 of this Indenture;
and
(D) prior to the Release Date, such Unrestricted Subsidiary or
such Person becomes a "Designated Subsidiary" under the Deed of
Trust.
SECTION 1016. DISPOSITION OF PROCEEDS OF ASSET SALE.
(a) The Company will not, and will not permit any Restricted
Subsidiary to, engage in any Asset Sale if the Net Cash Proceeds of such
Asset Sale, together with the Net Cash Proceeds of any other Asset Sales
that have occurred since the date of this Indenture, exceed 15% of the book
value (determined in accordance with GAAP) of the total Consolidated assets
of the Company as of the end of the Company's fiscal quarter next preceding
such Asset Sale (all Net Cash Proceeds other than Net Cash Proceeds in an
aggregate amount up to such 15% amount being referred to as "Covered Net
Cash Proceeds"), unless:
(i) such Asset Sale is for not less than the fair market value of
the assets sold (as determined by the Board of Directors);
(ii) at least 75% of the proceeds from such Asset Sale consist of
cash or cash equivalents;
(iii) immediately before and after giving effect to such transaction
on a pro forma basis, no Default or Event of Default shall have occurred or
be continuing; and
(iv) the Company could have incurred at least Cdn$1.00 of additional
Debt in accordance with the provisions of Section 1008.
(b) Within 12 months of any Asset Sale, the Company may (i) use the
Covered Net Cash Proceeds of such Asset Sale, or a portion thereof, as
working capital in the ordinary course of business or (ii) invest, or enter
into a legally binding agreement to invest, such Covered Net Cash Proceeds,
or a portion thereof, in properties and assets to replace the properties and
assets that were the subject of the Asset Sale or in properties and assets
that (as determined by the Board of Directors, whose good faith
determination shall be conclusive and evidenced by a Board Resolution) will
be used in businesses of the Company and its Restricted Subsidiaries
existing on the date of this Indenture or in businesses reasonably related
thereto. If any such legally binding agreement to invest any Covered Net
Cash Proceeds is terminated, then the Company may invest such
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Covered Net Cash Proceeds, prior to the end of such 12-month period or
within 60 days from such termination, whichever is later, in the business of
the Company and its Restricted Subsidiaries as provided in clauses (i) and
(ii) of the preceding sentence. The amount of such Covered Net Cash Proceeds
not applied, used or invested as set forth in the foregoing two sentences
multiplied by the Security Factor constitutes "Excess Proceeds". The
"Security Factor" is a fraction, the numerator of which is the aggregate
principal amount of Securities outstanding on the date of such Asset Sale
and the denominator of which is (i) prior to the Release Date, the aggregate
principal amount of Debt of the Company, including the Securities, that is
outstanding on the date of such Asset Sale and that is secured by a pledge
of Deed of Trust Bonds and (ii) on or after the Release Date, the sum of (A)
the aggregate principal amount of Securities outstanding on the date of such
Asset Sale and (B) the aggregate principal amount of other Debt of the
Company that is pari passu with the Securities, to the extent the terms of
such Debt require the Company to make an offer to purchase such Debt upon
the occurrence of such Asset Sale.
For the purposes of the preceding paragraph, the assumption of
Senior Debt of the Company or any Restricted Subsidiary and the release of the
Company and the Restricted Subsidiaries from all liability on such Senior Debt
in connection with such Asset Sale shall be deemed to constitute cash in an
amount equal to the principal amount outstanding or accreted value of such
Senior Debt.
(c) When the aggregate amount of Excess Proceeds equals
Cdn$10,000,000 or more, the Company shall make an offer to purchase (an
"Offer") from all Holders of the Securities, in accordance with the
procedures set forth in this Section 1016, the maximum principal amount
(expressed as a multiple of U.S.$1,000) of Securities that may be purchased
using such amount of Excess Proceeds (subject to proration in the event that
such amount is less than the aggregate Offered Price of all Securities
tendered). The offer price (the "Offered Price") shall be payable in cash in
an amount equal to 100% of the principal amount of each Security plus
accrued and unpaid interest, if any, to the date of purchase. To the extent
that the aggregate Offered Price of all Securities tendered pursuant to an
Offer is less than the Excess Proceeds relating thereto (such shortfall
constituting a "Deficiency"), the Company may use such Deficiency for
general corporate purposes. Upon the completion of the purchase of all
Securities tendered pursuant to an Offer, the amount of Excess Proceeds
shall be reset at zero; provided that the amount of 25% Excess Proceeds (as
defined below) shall constitute Excess Proceeds for purposes of the first
Offer that is made after the fifth anniversary of the date of the original
issuance of the Securities (the "Fifth Anniversary").
(d) Notwithstanding any provision of this Section 1016, in no event
shall the Company be required on or prior to the Fifth Anniversary under
this Section 1016 to use Excess Proceeds to purchase Securities that,
together with amounts used or required to be used to retire Securities
pursuant to Section 1018, would result in the purchase of Securities with an
aggregate principal amount in
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excess of 25% of the original aggregate principal amount of the Securities.
If the aggregate Excess Proceeds (disregarding any resetting to zero
pursuant to Subsection (c) hereof) resulting from Asset Sales occurring on
or prior to the Fifth Anniversary, plus any amounts used, or required to be
used, to retire Securities pursuant to Section 1018, less any Deficiencies
resulting from any Offers made by the Company on or prior to such date,
exceeds 25% of the original aggregate principal amount of the Securities
(such excess being the "25% Excess Proceeds"), then the Company shall make
an Offer at the Offered Price in accordance with Subsection (b) above (i)
promptly after the Fifth Anniversary, in the event the amount of the 25%
Excess Proceeds exceeds Cdn$10,000,000 or (ii) at such time as the amount of
the 25% Excess Proceeds together with the Excess Proceeds received after the
Fifth Anniversary exceeds Cdn$10,000,000, in the event the amount of the 25%
Excess Proceeds is less than Cdn$10,000,000.
(e) Within 20 Business Days after the date on which the aggregate
amount of Excess Proceeds exceeds Cdn$10,000,000, the Company shall send by
first-class mail, postage prepaid, to each Holder of the Securities, at its
address appearing in the Security Register, and to the Trustee a notice
stating:
(i) that the Holder has the right to require the Company to
repurchase such Holder's Securities at the Offered Price, subject to
proration in the event the Excess Proceeds are less than the aggregate
Offered Price of all Securities tendered;
(ii) the date of purchase of Securities pursuant to the Offer (the
"Offer Date"), which shall be no earlier than 20 days nor later than 40 days
from the date such notice is mailed; and
(iii) the instructions a Holder must follow in order to have his
Securities purchased in accordance with paragraph (c) of this Section.
(f) Holders electing to have Securities purchased will be required
to surrender such Securities to the Paying Agent at the address specified in
the notice at least five Business Days prior to the Offer Date. Holders will
be entitled to withdraw their election if the Company receives, not later
than three Business Days prior to the Offer Date, a facsimile transmission
or letter setting forth the name of the Holder, the principal amount of the
Securities delivered for purchase by the Holder as to which its election is
to be withdrawn and a statement that such Holder is withdrawing its election
to have such Securities purchased. If the aggregate principal amount of
Securities surrendered by Holders exceeds the amount of Excess Proceeds that
are required to be used to purchase Securities, the Company shall select the
Securities to be purchased on a pro rata basis, with such adjustments as may
be deemed appropriate by the Company, so that only Securities in
denominations of U.S.$1,000, or integral multiples thereof, shall be
purchased. Holders of Securities whose Securities are purchased only in part
will be issued new Securities equal in principal amount to the unpurchased
portion of the Securities surrendered.
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(g) If and for as long as the Company shall be prohibited from
purchasing any Security from a Holder in an Offer because of provisions of
applicable law, the Company need not make such Offer with respect to such
Security. If such prohibition shall continue for a period of 180 days after
such Offer should have been commenced in accordance with Section 1016(e),
the Company shall then be obligated to utilize the Excess Proceeds in the
business of the Company and its Restricted Subsidiaries.
(h) Whenever Excess Proceeds (other than 25% Excess Proceeds)
received by the Company exceed Cdn$20,000,000, such Excess Proceeds shall,
prior to the purchase of Securities, be set aside by the Company in a
separate account pending (i) deposit with the Depositary of the amount
required to repay the Securities tendered in an Offer or (ii) delivery by
the Company of the Offered Price to the Holders of the Securities tendered
in an Offer. Such Excess Proceeds may be invested in Temporary Cash
Investments the maturity date of which is not later than the Offer Date. The
Company shall be entitled to any interest or dividends accrued, earned or
paid on such Temporary Cash Investments. Such Excess Proceeds, or any
portion thereof, need not be set aside in a separate account but may instead
be used to repay Debt if (i) the Trustee shall have received a Board
Resolution to the effect that, based on cash and cash equivalents on hand
and existing revolving credit facilities, the Board of Directors believes
that there is no reasonable circumstance under which the Company will not
have access to sufficient funds in order to consummate the Offer and (ii)
such repayment of Debt complies with all other conditions of this Indenture.
(i) Upon any sale, conveyance, transfer or other disposition to any
Person that is not an Affiliate of the Company of all of the Capital Stock
of a Restricted Subsidiary held by the Company or another Restricted
Subsidiary, such Restricted Subsidiary shall cease to be a Restricted
Subsidiary, provided that (A) such Restricted Subsidiary is or becomes an
Unrestricted Subsidiary (as defined in the Deed of Trust) under the Deed of
Trust, and (B) immediately before and after giving effect to such
transaction on a pro forma basis, no Default or Event of Default shall have
occurred and be continuing under this Indenture as evidenced by the delivery
by the Company to the Trustee of an Officers' Certificate to such effect.
SECTION 1017. LIMITATION ON SECURED DEBT.
On or after the Release Date, the Company will not, and the Company
will not permit any of its Restricted Subsidiaries to, create, assume, incur or
guarantee any Secured Debt unless and for so long as the Company secures the
Securities equally and ratably with (or prior to) such Secured Debt. However,
the Company may incur Secured Debt without securing the Securities if,
immediately after incurring the Secured Debt, the aggregate amount of all
Secured Debt plus the aggregate amount of Attributable Debt then outstanding
pursuant to Sale and Leaseback Transactions would not exceed 15% of the
Company's Consolidated Net Tangible Assets. The aggregate amount of all Secured
Debt in the preceding sentence excludes Secured Debt which is secured equally
and
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ratably with the Securities and Secured Debt that is being repaid
concurrently. Any Lien which is granted to secure the Securities under this
Section 1017 shall be discharged at the same time as the discharge of the Lien
securing the Secured Debt that gave rise to the obligation to secure the
Securities under this Section 1017.
SECTION 1018. LIMITATION ON SALE AND LEASEBACK TRANSACTIONS.
On or after the Release Date, the Company will not permit, and will
not permit any Restricted Subsidiary to, enter into any Sale and Leaseback
Transaction, unless either (a) immediately thereafter, the sum of (1) the
Attributable Debt to be outstanding pursuant to such Sale and Leaseback
Transaction and all other Sale and Leaseback Transactions entered into by the
Company or a Restricted Subsidiary on or after the Release Date (or, in the case
of a Restricted Subsidiary, the date on which it became a Restricted Subsidiary,
if on or after the Release Date) and (2) the aggregate amount of all Secured
Debt, excluding Secured Debt which is secured equally and ratably with the
Securities, would not exceed 15% of the Company's Consolidated Net Tangible
Assets, or (b) an amount equal to the greater of the net proceeds to the Company
or a Restricted Subsidiary from such sale and the Attributable Debt to be
outstanding pursuant to such Sale and Leaseback Transaction is used within 180
days to retire Debt of the Company or a Restricted Subsidiary, provided that
such retirement of Debt complies with all other conditions of this Indenture
and, provided further that in no event shall the Company be required on or prior
to the Fifth Anniversary to retire Securities pursuant to this Section 1018
that, together with Securities that have been or are required to be repaid
pursuant to Section 1016, have an aggregate principal amount in excess of 25% of
the original aggregate principal amount of the Securities, and provided further
that, promptly after the Fifth Anniversary, the Company will retire any
Securities that would have been retired under this Section 1018 but for the
foregoing proviso. However, Debt which is subordinate to the Securities or which
is owed to the Company or a Restricted Subsidiary may not be retired.
SECTION 1019. LIMITATION ON RESTRICTED SUBSIDIARY DEBT.
On or after the Release Date, the Company will not permit any
Restricted Subsidiary to, directly or indirectly, create, incur, assume or
suffer to exist any Debt (other than Debt to the extent that the Securities are
secured equally and ratably with (or prior to) such Debt), unless (1) the
obligations of the Company under the Securities are guaranteed (which guarantee
may be on an unsecured basis) by such Restricted Subsidiary such that the claim
of the Trustee on behalf of the Holders of the Securities under such guarantee
ranks prior to or pari passu with such Debt or (2) after giving effect to the
incurrence of such Debt and the application of the proceeds therefrom, the sum
of (without duplication) (x) the aggregate principal amount of Debt (other than
Exempted Secured Debt) of all Restricted Subsidiaries, (y) the then outstanding
principal amount of Secured Debt of the Company (not on a Consolidated basis)
and (z) Attributable Debt relating to then outstanding Sale and Leaseback
Transactions, would not exceed 15% of Consolidated Net Tangible Assets of the
Company; provided, however, that this restriction will not apply to, and there
will be excluded from, any calculation hereunder, (A) Debt owing by a Restricted
Subsidiary to the Company or to another Restricted
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Subsidiary and (B) Debt secured by Liens that would otherwise be permitted under
clauses (i) and (vii) to (xiii) of Section 1012, provided, further, that this
restriction will not prohibit the incurrence of Debt in connection with any
extension, renewal or replacement (including successive extensions, renewals or
replacements), in whole or in part, of any Debt of the Restricted Subsidiaries
(provided that the principal amount of such Debt immediately prior to such
extension, renewal or replacement is not increased).
SECTION 1020. PROVISION OF FINANCIAL STATEMENTS.
(a) The Company shall supply without cost to each Holder of the
Securities, and file with the Trustee within 30 days after the Company is
required to file the same with the Commission, copies of the annual reports
and quarterly reports and of the information, documents and other reports
which the Company may be required to file with the Commission pursuant to
Section 13(a), 13(c) or 15(d) of the Exchange Act.
(b) If the Company is not required to file with the Commission such
reports and other information referred to in Section 1020(a), the Company
shall furnish without cost to each Holder of the Securities and file with
the Trustee (i) within 140 days after the end of each fiscal year, audited
year-end financial statements prepared in accordance with GAAP and
substantially in the form prescribed by applicable Canadian regulatory
authorities for Canadian public reporting companies (whether or not the
Company is a public reporting company at the time), (ii) within 75 days
after the end of each of the first three fiscal quarters of each fiscal
year, unaudited quarterly financial statements prepared in accordance with
GAAP and substantially in the form prescribed by applicable Canadian
regulatory authorities for Canadian public reporting companies (whether or
not the Company is a public reporting company at the time). The Company
shall also make such reports available to prospective purchasers of the
Securities, securities analysts and broker-dealers upon their request.
SECTION 1021. PAYMENT OF ADDITIONAL AMOUNTS.
All payments made by the Company under or with respect to the
Securities will be made free and clear of and without withholding or deduction
for or on account of any present or future tax, duty, levy, impost, assessment
or other governmental charge imposed or levied by or on behalf of the Government
of Canada or of any province or territory thereof or by any authority or agency
therein or thereof having power to tax (hereinafter "Taxes"), unless the Company
is required to withhold or deduct Taxes by law or by the interpretation or
administration thereof. If the Company is so required to withhold or deduct any
amount for or on account of Taxes from any payment made under or with respect to
the Securities, the Company will pay as interest such additional amounts
("Additional Amounts") as may be necessary so that the net amount received by
each Holder (including Additional Amounts) after such withholding or deduction
will not be less than the amount the Holder would have received if such Taxes
had not been withheld or deducted; provided that no Additional Amounts will be
payable with respect to a payment made to a Holder (an "Excluded Holder") (i)
with
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which the Company does not deal at arm's length (within the meaning of the
Income Tax Act (Canada)) at the time of making such payment or (ii) which is
subject to such Taxes by reason of its being connected with Canada or any
province or territory thereof otherwise than by the mere holding of Securities
or the receipt of payments thereunder, (iii) if the Securities are presented for
payment more than 15 days after the date on which such payment or such
Securities became due and payable or the date on which such payment thereof is
duly provided for, whichever is later (except to the extent that the Holder
would have been entitled to Additional Amounts had the Securities been presented
on the last day of such 15 day period) or (iv) where withholding is imposed on a
payment to an individual pursuant to any European Union Directive on the
taxation of savings or any law implementing or complying with, or introduced in
order to conform to, such Directive. The Company will also (i) make such
withholding or deduction and (ii) remit the full amount deducted or withheld to
the relevant authority in accordance with applicable law. Upon the written
request of the Holders of Securities, the Company will furnish to the Holders of
the Securities certified copies of tax receipts evidencing such payment by the
Company. The Company will indemnify and hold harmless each Holder (other than an
Excluded Holder) and upon written request of any Holder of Securities (other
than an Excluded Holder) reimburse such Holder for the amount of (i) any such
Taxes so levied or imposed and paid by such Holder as a result of any failure of
the Company to withhold, deduct or remit to the relevant tax authority, on a
timely basis, the full amounts required under applicable law; and (ii) any such
Taxes so levied or imposed with respect to any reimbursement under the foregoing
clause (i), so that the net amount received by such Holder after such
reimbursement would not be less than the net amount such Holder would have
received if such Taxes on such reimbursement had not been imposed.
At least 30 days prior to each date on which any payment under or
with respect to the Securities is due and payable, if the Company will be
obligated to pay Additional Amounts with respect to such payment, the Company
will deliver to the Trustee an Officers' Certificate stating the fact that such
Additional Amounts will be payable, the amounts so payable and will set forth
such other information necessary to enable the Trustee, on behalf of the
Company, to pay such Additional Amounts to Holders on the payment date. Whenever
in this Indenture there is mentioned, in any context, the payment of principal
(and premium, if any), Redemption Price, Change in Control Purchase Price,
Offered Price, interest or any other amount payable under or with respect to any
Security such mention shall be deemed to include mention of the payment of
Additional Amounts provided for in this Section to the extent that, in such
context, Additional Amounts are, were or would be payable in respect thereof
pursuant to the provisions of this Section and express mention of the payment of
Additional Amounts (if applicable) in any provisions hereof shall not be
construed as excluding Additional Amounts in those provisions hereof where such
express mention is not made (if applicable).
The obligations of the Company under this Section 1021 shall survive
the termination of this Indenture and the payment of all amounts under or with
respect to the Securities.
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SECTION 1022. STATEMENT AS TO COMPLIANCE.
The Company will deliver to the Trustee, within 120 days after the
end of each fiscal year ending after the date hereof (or within such shorter
time period as may be required by the Trust Indenture Act) and otherwise upon
the demand of the Trustee, a brief certificate of its principal executive
officer, principal financial officer or principal accounting officer stating
whether, to such officer's knowledge, the Company is in compliance with all
covenants and conditions to be complied with by it under this Indenture and,
prior to the Release Date, the Collateral Documents. For purposes of this
Section 1022, such compliance shall be determined without regard to any period
of grace or requirement of notice under this Indenture or the Collateral
Documents.
When a Default has occurred and is continuing or if the Trustee, any
Holder or the trustee for or the holder of any other evidence of Debt of the
Company or any Restricted Subsidiary gives any notice or takes any other action
with respect to a claimed default (other than with respect to Debt in the
principal amount of less than Cdn$10,000,000), the Company shall deliver to the
Trustee an Officers' Certificate specifying such Default, notice or other action
within 10 Business Days of its occurrence.
The Company shall furnish to the Trustee, upon the demand of the
Trustee, evidence, in the form required by the Trustee, of any action required
or permitted to be taken by the Company under this Indenture.
SECTION 1023. SUBORDINATION ARRANGEMENTS
(i) At the time this Indenture is entered into, each of the Company,
the Restricted Subsidiaries, the Trustee and the Subordinated Debenture
Trustee shall have entered into the Subordination Agreement.
(ii) The Company and any Restricted Subsidiaries, to the extent any
of them is an obligor under Inter-Company Deeply Subordinated Debt or
Inter-Company Subordinated Debt from time to time, will hold in trust for
the benefit of the Trustee and the Holders the rights and benefits of the
provisions substantially in the form of Exhibits A and B hereto, which
provisions shall be incorporated into agreements or instruments evidencing
Inter-Company Deeply Subordinated Debt and Inter-Company Subordinated Debt,
respectively.
(iii) For greater certainty, notwithstanding the provisions of any
Inter-Company Deeply Subordinated Debt, any Inter-Company Subordinated Debt,
any provisions thereof as may be incorporated in any document, the
Subordination Agreement or any other agreement pursuant to which the Trustee
or the Holders are or may become entitled to receive from holders of
subordinated indebtedness of the Company payments by way of turn-over
("subordination documents"), neither the Trustee nor the Holders shall
collect, claim any right to collect, accept or receive any amounts (the
"turnover amounts"), whether in cash, property or otherwise, pursuant to any
subordination document unless a Default or Event of Default shall have
occurred and be continuing. In the event that notwithstanding
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the provisions of this Section 1023(iii), the Holders or the Trustee shall
receive or collect any turnover amounts, such turnover amounts shall be
received and held in trust for and shall be paid over to such holders of
subordinated indebtedness or the liquidating agent or other Person who shall
have made such payment on their behalf under the subordination documents.
Any such turnover amounts received by the Trustee or any Holder which the
Trustee or such Holder is required to pay over to such holders of
subordinated indebtedness or the liquidating agent or other Person who shall
have made such payment on their behalf shall in no circumstances be deemed
to be a payment on account of the Securities.
SECTION 1024. WAIVER OF CERTAIN COVENANTS.
The Company may omit in any particular instance to comply with any
covenant or condition set forth in Sections 1005 through 1020 if, before or
after the time for such compliance, the Holders of a majority in principal
amount of the Securities at the time Outstanding shall, by Act of such Holders,
waive such compliance in such instance with such covenant or condition, but no
such waiver shall extend to or affect such covenant or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
covenant or condition shall remain in full force and effect.
SECTION 1025. SUSPENSION OF COVENANTS.
(a) During any period of time (a "Suspension Period") that (i) the
ratings assigned to the Securities by at least two of the three Rating
Agencies are Investment Grade Ratings and (ii) no Default or Event of
Default has occurred and is continuing under this Indenture, the Company and
its Restricted Subsidiaries will not be subject to Sections 1008 (except to
the extent applicable under Section 1015), 1009, 1010, 1011 (except to the
extent applicable under Section 1015), 1013, 1014, 1016 and 801(c)
(collectively, the "Suspended Covenants").
(b) In the event that the Company and the Restricted Subsidiaries
are not subject to the Suspended Covenants with respect to the Securities,
for any period of time as a result of paragraph (a) of this Section and
subsequently, at least two of the three Ratings Agencies withdraw their
ratings on the Securities or assign the Securities a rating below the
required Investment Grade Ratings, then the Suspension Period shall
immediately terminate and the Company and the Restricted Subsidiaries will
thereafter again be subject to the Suspended Covenants for the benefit of
the Securities and the Company shall notify the Trustee in writing thereof.
Compliance with the Suspended Covenants following their reinstatement with
respect to Restricted Payments made after the time of such withdrawal or
assignment will be calculated in accordance with the terms of Section 1010
as if such Section had been in effect during the entire period of time from
the date of this Indenture.
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(c) Notwithstanding the foregoing, neither (i) the continued
existence following the termination of the Suspension Period of facts and
circumstances or obligations that were incurred or otherwise came into
existence during a Suspension Period nor (ii) the performance of any such
obligations, including the consummation of any transaction pursuant to, and
on materially the same terms as, a contractual agreement in existence prior
to the termination of the Suspension Period, shall constitute a breach of
any covenant set forth in this Indenture or cause a Default or Event of
Default thereunder; provided that (1) the Company and its Restricted
Subsidiaries did not incur or otherwise cause such facts and circumstances
or obligations to exist in anticipation of a withdrawal or downgrade below
an Investment Grade Rating and (2) the Company did not reasonably believe
that such incurrence or actions would result in such withdrawal or
downgrade. For purposes of clause (ii) above, any increase in the
consideration to be paid by the Company or any Restricted Subsidiary
pursuant to an amendment or modification to the terms of an existing
obligation following the termination of the Suspension Period that does not
exceed 10% of the consideration that was to be paid prior to such amendment
or modification shall not be deemed to be a "material" amendment or
modification. For purposes of clauses (1) and (2) above, anticipation and
reasonable belief may be determined by the Company and shall be conclusively
evidenced by a Board Resolution to such effect adopted by the Board of
Directors. The Board of Directors in making its determination may, but need
not, consult with the Rating Agencies.
SECTION 1026. RELEASE OF SECURITY.
(a) In the event that (i) on a pro forma basis giving effect to the
release of the security for the Securities and any other Debt of the Company
with similar release provisions, (A) no Debt of the Company would be
outstanding and (B) there would be no availability to the Company under any
bank credit facilities, operating credit facilities or swap agreements, in
the case of each of (A) and (B) that is or are secured by a Lien of the
Pledge Agreement or any Collateral Document or any other Lien on the Deed of
Trust Collateral, (ii) the ratings assigned to the Securities by at least
two of the three Rating Agencies are Investment Grade Ratings and (iii) no
Default or Event of Default has occurred and is continuing under this
Indenture, then, without the consent of the Holders, the Company may
permanently terminate the Lien of the Pledge Agreement or any Collateral
Document and any other Lien on the Deed of Trust Collateral. On the Release
Date, the provisions of Article Twelve of this Indenture shall terminate and
have no further force or effect.
(b) The Company shall notify the Rating Agencies and the Trustee in
writing of its intention to exercise its option to release the collateral at
least 45 days prior to the proposed date of such release (the "Release
Date"). In order to effect the release of the security, on the proposed
Release Date the Company shall deliver to the Trustee an Officers'
Certificate stating that (A) each of the conditions specified above has been
satisfied and (B) the Company has not been notified by the Rating Agencies
that the ratings assigned to the Securities will be
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downgraded as a result of the release of the security such that the ratings
assigned to the Securities by at least two of the three Rating Agencies will
be below Investment Grade. Such Officers' Certificate shall be dated on, or
not more than one day prior to, the Release Date.
(c) As soon as practicable after the occurrence of the Release Date,
the Trustee will, upon Company Order and at the Company's expense, (i)
return to the Company all Collateral in the Trustee's possession as shall
not have been sold or otherwise applied pursuant to the terms of the Lien of
the Pledge Agreement and any Collateral Document and any other Lien on the
Deed of Trust Collateral and (ii) promptly execute and deliver further
instruments and documents, and take all further actions, that may be
necessary or desirable, or that the Company may reasonably request, in order
to evidence the termination of the Lien of the Pledge Agreement and any
Collateral Document and any other Lien on the Deed of Trust Collateral. As
soon as practicable after the Release Date, but in no event later than five
days after such Release Date, the Company shall cause a notice of the
occurrence of such Release Date to be sent to (i) the Dow Jones News Service
or similar business news service in the United States and (ii) the Canada
NewsWire Ltd. service or similar business news wire service in Canada.
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
SECTION 1101. RIGHT OF REDEMPTION.
(a) The Securities may be redeemed, at the election of the Company,
as a whole or from time to time in part, at any time, subject to the
conditions and at the Redemption Price specified in the form of Security set
forth in Article Two herein, together with accrued interest to the
Redemption Date.
(b) If, as a result of any change in, or amendment to, the laws (or
any regulations promulgated thereunder) of Canada (or any political
subdivision or taxing authority thereof or therein), or any change in, or
amendment to, any official position regarding the application or
interpretation of such laws or regulations, which change or amendment is
announced or becomes effective on or after June 16, 2003, the Company has
become or would become obligated to pay, on the next date on which any
amount would be payable under or with respect to the Securities, any
Additional Amounts in accordance with Section 1021 hereof, then the Company
may, at its option, redeem the Securities, as a whole but not in part, at a
redemption price equal to 100% of their principal amount, together with
interest accrued thereon to the Redemption Date; provided that the Company
determines, in its business judgment, that the obligation to pay such
Additional Amounts cannot be avoided by the use of reasonable measures
available to the Company not including substitution of the obligor under the
Securities.
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SECTION 1102. APPLICABILITY OF ARTICLE.
Redemption of Securities at the election of the Company or
otherwise, as permitted or required by any provision of this Indenture, shall be
made in accordance with such provision and this Article.
SECTION 1103. ELECTION TO REDEEM; NOTICE TO TRUSTEE.
The election of the Company to redeem the Securities pursuant to
Section 1101 shall be evidenced by a Board Resolution. In case of any redemption
at the election of the Company, the Company shall, at least 60 days prior to the
Redemption Date fixed by it (unless a shorter notice period shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date and of
the principal amount of Securities to be redeemed.
SECTION 1104. SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED.
If less than all the Securities are to be redeemed, the particular
Securities or portions thereof to be redeemed shall be selected not more than 60
days and not less than 30 days prior to the Redemption Date by the Trustee, from
the Outstanding Securities not previously called for redemption, on a pro rata
basis, and the amounts to be redeemed may be equal to U.S.$1,000 or any integral
multiple thereof.
The Trustee shall promptly notify the Company and the Security
Registrar in writing of the Securities selected for redemption and, in the case
of any Securities selected for partial redemption, the principal amount thereof
to be redeemed.
For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to redemption of Securities shall relate, in
the case of any Security redeemed or to be redeemed only in part, to the portion
of the principal amount of such Security which has been or is to be redeemed.
SECTION 1105. NOTICE OF REDEMPTION.
Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Securities to be redeemed, at its address appearing in
the Security Register.
All notices of redemption shall state:
(a) the Redemption Date;
(b) the Redemption Price;
(c) if less than all Outstanding Securities are to be redeemed, the
identification (and, in the case of a Security to be redeemed in part, the
principal amount) of the particular Securities to be redeemed;
(d) that on the Redemption Date the Redemption Price will become due
and payable upon each such Security, and that interest thereon shall cease
to accrue on and after said date; and
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(e) the place or places where such Securities are to be surrendered
for payment of the Redemption Price.
Notice of redemption of Securities to be redeemed at the election of
the Company shall be given by the Company or, at its request, by the Trustee in
the name and at the expense of the Company.
SECTION 1106. DEPOSIT OF REDEMPTION PRICE.
On or prior to any Redemption Date, the Company shall deposit or
cause to be deposited with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 1003) an amount of money in same day funds (or New York
Clearing House funds if such deposit is made prior to the applicable Redemption
Date) sufficient to pay the Redemption Price of, and (except if the Redemption
Date shall be an Interest Payment Date) accrued interest on, all the Securities
which are to be redeemed on that date.
SECTION 1107. SECURITIES PAYABLE ON REDEMPTION DATE.
Notice of redemption having been given as aforesaid, the Securities
so to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest. Upon surrender of any
such Security for redemption in accordance with said notice, such Security shall
be paid by the Company at the Redemption Price together with accrued interest to
the Redemption Date; provided, however, that installments of interest whose
Stated Maturity is on or prior to the Redemption Date shall be payable to the
Holders of such Securities, or one or more Predecessor Securities, registered as
such on the relevant Regular Record Dates according to the terms and the
provisions of Section 309.
If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal thereof (and premium, if any,
thereon) shall, until paid, bear interest from the Redemption Date at the rate
borne by such Security.
SECTION 1108. SECURITIES REDEEMED IN PART.
Any Security which is to be redeemed only in part shall be
surrendered at the office or agency of the Company maintained for such purpose
pursuant to Section 1002 (with, if the Company, the Security Registrar or the
Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company, the Security Registrar or the Trustee duly
executed by, the Holder thereof or its attorney duly authorized in writing), and
the Company shall execute, and, upon Company Order, the Trustee shall
authenticate and deliver to the Holder of such Security, without service charge,
a replacement Security or Securities, of any authorized denomination as
requested by such Holder in aggregate principal amount equal to and in exchange
for the unredeemed portion of the principal of the Security so surrendered.
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SECTION 1109. EFFECT OF CHANGE IN CONTROL PURCHASE NOTICE.
Upon receipt by the Company of the Change in Control Purchase Notice
specified in Section 516(b), the Holder of the Security in respect of which such
Change in Control Purchase Notice was given shall (unless such Change in Control
Purchase Notice is withdrawn as specified in the following two paragraphs of
this Section) thereafter be entitled to receive solely the Change in Control
Purchase Price with respect to such Security. Such Change in Control Purchase
Price shall be paid to such Holder upon the later of (a) the first Business Day
following the Change in Control Purchase Date (provided the conditions in
Section 516(b) have been satisfied) and (b) the time of delivery of the Security
to the Paying Agent at the office of the Paying Agent or to the office or agency
referred to in Section 1002 by the Holder thereof in the manner required by
Section 516(b).
A Change in Control Purchase Notice may be withdrawn before or after
delivery by the Holder to the Paying Agent at the office of the Paying Agent of
the Security to which such Change in Control Purchase Notice relates, by means
of a written notice of withdrawal delivered by the Holder to the Paying Agent at
the office of the Paying Agent or to the office or agency referred to in Section
1002 to which the related Change in Control Purchase Notice was delivered at any
time prior to the close of business on the Change in Control Purchase Date
specifying, as applicable:
(1) the certificate number of the Security in respect of which
such notice of withdrawal is being submitted,
(2) the principal amount of the Security (which shall be
U.S.$1,000 or an integral multiple thereof) with respect to which such
notice of withdrawal is being submitted, and
(3) the principal amount, if any, of such Security (which shall
be U.S.$1,000 or an integral multiple thereof) that remains subject to
the original Change in Control Purchase Notice and that has been or will
be delivered for purchase by the Company.
The Paying Agent will promptly return to the respective Holders
thereof any Securities with respect to which a Change in Control Purchase Notice
has been withdrawn in compliance with this Indenture.
SECTION 1110. DEPOSIT OF CHANGE IN CONTROL PURCHASE PRICE.
No later than 11:00 a.m. (New York time) on the Business Day
following the Change in Control Purchase Date the Company shall deposit or cause
to be deposited with the Paying Agent (or, if the Company is acting as the
Paying Agent, shall segregate and hold in trust as provided in Section 1003) an
amount of cash sufficient to pay the aggregate Change in Control Purchase Price
of all the Securities or portions thereof that are to be purchased as of the
Change in Control Purchase Date.
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SECTION 1111. SECURITIES PURCHASED IN PART.
Any Security that is to be purchased only in part shall be
surrendered to the Paying Agent at the office of the Paying Agent or to the
office or agency referred to in Section 1002 (with, if the Company or the
Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or such Holder's attorney duly authorized in writing) and the Company
shall execute and, upon Company Order, the Trustee shall authenticate and
deliver to the Holder of such Security, without service charge, a replacement
Security or Securities, of any authorized denomination as requested by such
Holder in an aggregate principal amount equal to, and in exchange for, the
principal amount of the Security so surrendered that is not purchased.
SECTION 1112. REPAYMENT TO THE COMPANY.
As provided in Section 1003, the Trustee and the Paying Agent shall
return to the Company any cash that remains unclaimed, together with interest or
dividends, if any, thereon (subject to the provisions of Section 607), held by
them for the payment of the Change in Control Purchase Price; provided, however,
that, to the extent that the aggregate amount of cash deposited by the Company
pursuant to Section 1110 exceeds the aggregate Change in Control Purchase Price
of the Securities or portions thereof to be purchased, then the Trustee shall
hold such excess for the Company and promptly after the Business Day following
the Change in Control Purchase Date the Trustee shall upon demand return any
such excess to the Company together with interest or dividends, if any, thereon
(subject to the provisions of Section 607).
ARTICLE TWELVE
SECURITY DOCUMENTS
The provisions of this Article Twelve shall continue in effect until
the occurrence of the Release Date, at which time they shall terminate and have
no further force or effect.
SECTION 1201. PLEDGE AGREEMENT.
As general and continuing collateral security for the due repayment
and satisfaction of all present and future indebtedness, liabilities and
obligations of any kind whatsoever, under, in connection with or relating to
this Indenture, including without limitation, the Securities and any ultimate
unpaid balance thereof and to secure the due performance of all of the other
present and future obligations of the Company to the Trustee (including
obligations under Section 607 of this Indenture) and the Holders of the
Securities under this Indenture and the Securities, the Company has assigned,
deposited with and pledged the Trust Bond to the Trustee pursuant to the Pledge
Agreement. The Company covenants and agrees that it has full right, power and
lawful authority to grant, bargain, sell, release, convey, hypothecate, assign,
mortgage, pledge, transfer and confirm the property constituting the Trust
Estate, in the manner and form done in the Pledge Agreement or intended to be
done, free and clear of all liens, pledges, charges and
110
encumbrances whatsoever, and that (a) it will forever warrant and defend the
title to the same against the claims of all persons whatsoever, (b) it will
execute, acknowledge and deliver to the Trustee such further assignments,
transfers, assurances or other instruments as the Trustee may require or
request, and (c) it will do or cause to be done all such acts and things as may
be necessary or proper, or as may be required by the Trustee, to assign and
confirm to the Trustee the Trust Estate, or any part thereof, as from time to
time constituted, so as to render the same available for the security and
benefit of this Indenture and of the Securities. The Company further covenants
and agrees that the Pledge Agreement creates the direct and valid first lien on
the Trust Bond which it purports to create.
SECTION 1202. RECORDING.
The Company will cause, at its own expense, this Indenture, the
Pledge Agreement, the Deed of Trust and any other Collateral Document, and all
amendments or supplements thereto, to be registered, recorded and filed and/or
re-recorded and/or re-filed and/or renewed in such manner and in such place or
places, if any, as may be required by law in order fully to preserve and protect
the Liens of the Collateral Documents and all parts of the Trust Estate and to
effectuate and preserve the security of the Holders and all rights of the
Trustee.
The Company shall furnish to the Trustee:
(i) promptly after the execution and delivery of this Indenture or
other instrument of further assurance, an Opinion of Counsel stating that,
in the opinion of such counsel, this Indenture, the Pledge Agreement and all
other instruments of further assurance have been properly recorded,
registered and filed to the extent necessary to make effective the Lien
intended to be created by the Pledge Agreement, and reciting the details of
such action or referring to prior Opinions of Counsel in which such details
are given, and stating that all statements have been executed and filed that
are necessary fully to preserve and protect the rights of the Holders and
the Trustee hereunder and under the Pledge Agreement, or stating that, in
the opinion of such counsel, no such action is necessary to make such Lien
effective; and
(ii) by November 15 in each year beginning with the year 2002, an
Opinion of Counsel, dated as of such date, either stating that, in the
opinion of such Counsel, such action has been taken with respect to the
recording, registering, filing, re-recording, re-registering and re-filing
of this Indenture, the Pledge Agreement and of all supplemental indentures,
financing statements, continuation statements or other instruments of
further assurances as is necessary to maintain the Lien of the Pledge
Agreement and reciting the details of such action or referring to prior
Opinions of Counsel in which such details are given, and stating that all
financing statements and continuation statements have been executed and
filed that are necessary fully to preserve and protect the rights of the
Holders and the Trustee hereunder and under the Pledge Agreement, or stating
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that, in the opinion of such counsel, no such action is necessary to
maintain such Lien.
SECTION 1203. CUSTODY OF TRUST ESTATE.
The Trustee shall hold in its possession the Trust Bond constituting
the Trust Estate, except as from time to time any documents or instruments may
be required for recordation or re-recordation or other actions, suits or
proceedings relating to the Trust Estate, or for the purpose of enforcing or
realizing upon any right or value thereby represented. The Trustee may, from
time to time, in its sole discretion, for the purpose of convenient location of
the Trust Bond, appoint one or more agents to hold physical custody, for the
account of the Trustee, of the Trust Bond.
SECTION 1204. SUITS TO PROTECT THE TRUST ESTATE.
The Trustee shall have power to institute and to maintain such suits
and proceedings as it may deem expedient to prevent any impairment of the Trust
Estate by any acts which may be unlawful or in violation of the Pledge Agreement
or this Indenture, and such suits and proceedings as the Trustee may deem
expedient to preserve or protect its interests and the interests of the Holders
in the Trust Estate and in the principal, interest, issues, profits, rents,
revenues and other income arising therefrom, including power to institute and
maintain suits or proceedings to restrain the enforcement of or compliance with
any legislative or other governmental enactment, rule or order that may be
unconstitutional or otherwise invalid, if the enforcement of, or compliance
with, such enactment, rule or order would impair the security hereunder or be
prejudicial to the interests of the Holders or the Trustee. The Trustee shall
also have authority to exercise any rights or powers conferred on the Trustee,
as the holder of the Trust Bond, under the Deed of Trust.
SECTION 1205. RELEASE UPON TERMINATION OF THE COMPANY'S OBLIGATIONS.
(a) In the event that the Company delivers an Officers' Certificate
certifying that all Indenture Obligations have been satisfied and discharged
by complying with the provisions of Article Four, the Trustee shall deliver
to the Deed Trustee a notice stating that the Trustee, on behalf of the
Holders, disclaims and gives up any and all rights it has in or to the Trust
Bond and the Deed of Trust Collateral, and any rights it has under the
Collateral Documents, and, upon and after the receipt by the Deed Trustee of
such notice, the Trustee shall return the Trust Bond to the Deed Trustee for
cancellation, and the Deed Trustee shall not be deemed to hold any Deed of
Trust Collateral on behalf of the Trustee for the benefit of the Holders.
(b) Any release of any portion of the Trust Bond or the Deed of
Trust Collateral made strictly in compliance with the provisions of this
Section 1205 shall not be deemed to impair the Liens on the Trust Bond or
the Deed of Trust
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Collateral created by the Collateral Documents in contravention of the
provisions of this Indenture.
* * *
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This Indenture may be signed in any number of counterparts with the
same effect as if the signatures to each counterpart were upon a single
instrument, and all such counterparts together shall be deemed an original of
this Indenture.
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed all as of the day and year first above written.
ROGERS CABLE INC.
By: /s/ M. Lorraine Daly
--------------------------------------
Name: M. Lorraine Daly
Title: Vice-President, Treasurer
By: /s/ Alan D. Horn
--------------------------------------
Name: Alan D. Horn
Title: Vice-President
JPMORGAN CHASE BANK
By: /s/ Natalia Moran
--------------------------------------
Name: Natalia Moran
Title: Vice President
114
EXHIBIT A
PROVISIONS FOR INTER-COMPANY DEEPLY SUBORDINATED DEBT
1.1 Terms defined in the Indenture in respect of the 6.25% Senior
(Secured) Second Priority Notes due 2013 dated as of June 19, 2003 (the
"Indenture") between Rogers Cable Inc. (the "Company") and JPMorgan Chase Bank,
as trustee (the "Trustee") and used herein have the meanings attributed to such
terms in the Indenture. As used herein, the term "Relevant Obligor" means the
obligor creating, incurring, assuming or suffering to exist any Inter-Company
Deeply Subordinated Debt. The term "Obligor" means any of the Company and any
Restricted Subsidiary.
2.1 DEFINITION OF SENIOR INDEBTEDNESS. "Senior Indebtedness" means
at any date all indebtedness under the Securities and the Indenture (including,
without limitation, all amounts payable pursuant to Section 607 of the
Indenture, principal, interest, Additional Amounts, premium, fees, penalties,
indemnities and "post-petition interest" in bankruptcy).
2.2 AGREEMENT TO SUBORDINATE. The indebtedness evidenced by this
agreement shall constitute Inter-Company Deeply Subordinated Debt and the
Relevant Obligor and the relevant creditor who is owed such indebtedness (the
"Relevant Creditor") agree that such indebtedness (including, without
limitation, principal, interest, premium, fees, penalties, indemnities and
"post-petition interest" in bankruptcy) is subordinate and junior in right of
payment, to the extent and in the manner provided in this Section 2, to the
prior payment in full of all Senior Indebtedness.
The Relevant Obligor agrees to hold the benefit of these provisions
as incorporated in this agreement or this instrument as trustee for and on
behalf of the Trustee and the Holders of the Securities and the Relevant Obligor
shall be a party to the agreement or instrument in such capacity and shall give
the Relevant Creditor (and the Relevant Obligor on its own behalf) one dollar as
valuable consideration in respect of the agreements given to it in such capacity
as trustee.
The provisions of this Section 2 are for the benefit of the holders
from time to time of Senior Indebtedness, and such holders are hereby made
obligees hereunder to the same extent as if their names were written herein as
such, and they (collectively or singly) may proceed to enforce such provisions.
2.3 LIQUIDATION; DISSOLUTION; BANKRUPTCY. (a) Upon any distribution
of assets of the Relevant Obligor to creditors or upon a liquidation or
dissolution or winding-up of the Relevant Obligor or in a bankruptcy,
arrangement, liquidation, reorganization, insolvency, receivership or similar
case or proceeding relating to the Relevant Obligor or its property or other
marshalling of assets of the Relevant Obligor:
(i) the holders of Senior Indebtedness shall be entitled to receive
payment in full of all Senior Indebtedness before the Relevant Creditor
shall be entitled to receive
any payment of principal of or interest on, or any other amount owing in
respect of, the indebtedness evidenced by this agreement or instrument;
(ii) until payment in full of all Senior Indebtedness, any
distribution of assets of any kind or character to which the Relevant
Creditor would be entitled but for this Section 2 shall be paid by the
Relevant Obligor or by any receiver, trustee in bankruptcy, liquidating
trustee, agents or other Persons making such payment or distribution to,
or if received by the Relevant Creditor shall be held for the benefit of
and shall be forthwith paid or delivered to, the holders of Senior
Indebtedness, as their interests may appear; and
(iii) in the event that, notwithstanding the foregoing, any payment
or distribution of assets of the Relevant Obligor of any kind or
character, whether in cash, property or securities, shall be received by
the Relevant Creditor before all Senior Indebtedness is paid in full, such
payment or distribution shall be held in trust for the benefit of and
shall be paid over to the holders of Senior Indebtedness, as their
interests may appear, for application to the payment of all Senior
Indebtedness until all Senior Indebtedness shall have been paid in full
after giving effect to any concurrent payment or distribution to the
holders of Senior Indebtedness in respect of such Senior Indebtedness.
For purposes hereof, the words "cash, property or securities" shall
be deemed not to include securities of the Relevant Obligor or any other Person
provided for by a plan of reorganization or readjustment, the payment of which
is subordinated at least to the extent provided herein with respect to the
indebtedness evidenced by this agreement or instrument, to the payment of all
Senior Indebtedness which may at the time be outstanding; provided, however,
that (i) all Senior Indebtedness is assumed by the new Person, if any, resulting
from any such reorganization or readjustment, and (ii) the rights of the holders
of the Senior Indebtedness are not, without the consent of such holders, altered
by such reorganization or readjustment.
(b) If the Relevant Creditor does not file proper claims or proofs
of claim in the form required in a bankruptcy, reorganization, insolvency,
receivership or similar proceeding relating to the Relevant Obligor or its
property prior to 45 days before the expiration of the time to file such claims,
then (i) upon the request of the Trustee, the Relevant Creditor shall file such
claims and proofs of claim in respect of the indebtedness evidenced by this
agreement or instrument and execute and deliver such powers of attorney,
assignments and proofs of claim as may be directed by the Trustee to enable it
to enforce any and all claims upon or in respect of the indebtedness evidenced
by this agreement or instrument and to collect and receive any and all payments
or distributions which may be payable or deliverable at any time upon or in
respect of the indebtedness evidenced by this agreement or instrument, and (ii)
whether or not the Trustee shall take the action described in clause (i) above,
the Trustee shall nevertheless be deemed to have such powers of attorney as may
be necessary to file appropriate claims and proofs of claim and otherwise
exercise the powers described above.
For purpose of this Section 2, "payment in full", with respect to
Senior Indebtedness, means the receipt on an irrevocable basis of cash in an
amount equal to the unpaid principal amount of the Senior Indebtedness and
premium, if any, and interest thereon to the date
2
of such payment, together with all other amounts owing with respect to such
Senior Indebtedness.
2.4 SENIOR INDEBTEDNESS. (a) The Relevant Obligor shall not pay any
principal, interest or premium on the indebtedness evidenced by this agreement
or instrument, acquire the indebtedness evidenced by this agreement or
instrument for cash or property other than capital stock of the Relevant
Obligor, or make any loans, advances or extensions of credit to the Relevant
Creditor with respect to the indebtedness evidenced by this agreement or
instrument, or pay or acquire any obligation or liability upon which the
Relevant Creditor is the obligor, and the Relevant Creditor shall not demand,
accept or receive any payment of any principal, interest or premium on the
indebtedness evidenced by this agreement or instrument or any such cash,
property other than capital stock of the Relevant Obligor, loans, advances or
extensions of credit at any time when:
(i) a default in the payment of any Senior Indebtedness has
occurred, whether at maturity or at a date fixed for prepayment or by
declaration of an acceleration or otherwise, and such default either (A)
shall be continuing or (B) shall not have been cured and shall have been
waived by the holders of such Senior Indebtedness on the express condition
that payments on and acquisitions of the indebtedness evidenced by this
agreement or instrument by the Relevant Obligor be prohibited pursuant to
this clause (i); or
(ii) any default (other than as described in clause (i) of this
Section 2.4(a)) under any agreement or instrument evidencing Senior
Indebtedness shall have occurred and either (x) shall be continuing or (y)
shall not have been cured and shall have been waived by the holders of
such Senior Indebtedness on the express condition that payments on or
acquisition of the indebtedness evidenced by this agreement or instrument
be prohibited pursuant to this clause (ii); or
(iii) such payment of principal, interest or premium on the
indebtedness evidenced by this agreement or instrument, or acquisition of
the indebtedness evidenced by this agreement or instrument for cash or
property other than capital stock of the Relevant Obligor would cause a
Default or Event of Default under the Indenture.
(b) If at any time when a payment on the indebtedness evidenced by
this agreement or instrument is due, the Relevant Obligor would (but for this
subsection (b)) be prohibited by Section 2.4(a) from making such payment, the
Relevant Obligor shall nonetheless be obligated to make such payment if all of
the holders of Senior Indebtedness with respect to which any default shall have
occurred shall have consented thereto in writing.
(c) If, notwithstanding the foregoing, any payment of any kind or
character, whether in cash, property or otherwise, shall be received by the
Relevant Creditor before all Senior Indebtedness is paid in full, such payment
shall be held in trust for the benefit of and shall be paid over to the holders
of Senior Indebtedness, as their interests may appear, for application to the
payment of all Senior Indebtedness until all Senior Indebtedness shall have been
paid in full after giving effect to any concurrent payment to the holders of
Senior Indebtedness in respect of such Senior Indebtedness.
3
2.5 SUBROGATION. After all Senior Indebtedness is paid in full and
until the indebtedness evidenced by this agreement or instrument is paid in
full, the Relevant Creditor shall be subrogated to the rights of the holders of
Senior Indebtedness. For purposes of this Section 2.5, a distribution made under
this Section 2 to holders of Senior Indebtedness which otherwise would have been
made to the Relevant Creditor, or a payment made by the Relevant Creditor to
holders of Senior Indebtedness in respect of a turnover obligation under this
Section 2, is not, as between the Relevant Obligor and such holder, a payment by
the Relevant Obligor on Senior Indebtedness.
2.6 RELATIVE RIGHTS. This Section 2 defines the relative rights of
the Relevant Creditor and the holders of Senior Indebtedness. Nothing in this
Section 2 shall:
(a) impair, as between the Relevant Obligor and the Relevant
Creditor, the obligation of the Relevant Obligor, which is absolute and
unconditional, to pay the principal of and interest on the indebtedness
evidenced by this agreement or instrument in accordance with its terms; or
(b) affect the relative rights of the Relevant Creditor and
creditors of the Relevant Obligor other than the holders of Senior Indebtedness;
or
(c) affect the relative rights of the holders of Senior Indebtedness
among themselves; or
(d) prevent the Relevant Creditor from exercising its available
remedies upon a default, subject to Section 2.4 hereof and the rights of the
holders of Senior Indebtedness to receive cash, property or other assets
otherwise payable to the Relevant Creditor.
2.7 SUBORDINATION MAY NOT BE IMPAIRED. (a) No right of any holder of
Senior Indebtedness to enforce the subordination of indebtedness evidenced by
this agreement or instrument shall in any way be prejudiced or impaired by any
act or failure to act by the Relevant Obligor or by any act or failure to act in
good faith, by any such holder or the Trustee, or by any non-compliance by the
Relevant Obligor with the terms, provisions or covenants herein, regardless of
any knowledge thereof which any such holder or the Trustee may have or be
otherwise charged with. Neither the subordination of the indebtedness
represented by this agreement or instrument as herein provided nor the rights of
the holders of Senior Indebtedness with respect hereto shall be affected by any
extension, renewal or modification of the terms, or the granting of any security
in respect of, any Senior Indebtedness or any exercise or non-exercise of any
right, power or remedy with respect thereto.
(b) The Relevant Creditor agrees that all indebtedness evidenced by
this agreement or instrument will be unsecured by any Lien upon or with respect
to any property of the Relevant Obligor, and that the Relevant Creditor will not
permit to subsist any Liens upon its claim in respect of or upon the proceeds of
the indebtedness represented by this agreement or instrument.
(c) The Relevant Creditor agrees not to exercise any offset or
counterclaim or similar right in respect of the indebtedness evidenced by this
agreement or instrument except to the extent payment of such indebtedness is
permitted and will not assign or otherwise dispose of
4
this agreement or instrument or the indebtedness which it evidences unless the
assignee or acquiror, as the case may be, agrees to be bound by the terms of
this Section 2.
2.8 RELEVANT CREDITOR ENTITLED TO RELY. Upon any payment or
distribution pursuant to this Section 2, the Relevant Creditor shall be entitled
to rely (i) upon any order or decree of a court of competent jurisdiction in
which any proceedings of the nature referred to in Section 2.3 are pending, (ii)
upon a certificate of the liquidating trustee or agent or other person in such
proceedings making such payment or distribution to the Relevant Creditor or its
representative, if any, or (iii) upon a certificate of the Trustee or any
representative (if any) of the holders of Senior Indebtedness for the purpose of
ascertaining the persons entitled to participate in such payment or
distribution, the holders of the Senior Indebtedness and other indebtedness of
the Relevant Obligor, the amount thereof or payable thereon, the amount or
amounts paid or distributed thereon and all other facts pertinent thereto or to
this Section 2.
3.1 MISCELLANEOUS. (a) The provisions contained herein may not be
amended or modified in any respect, nor may any of the terms or provisions
hereof be waived, except by an instrument signed by the Relevant Obligor, the
Relevant Creditor and the Trustee.
(b) The provisions contained herein shall be binding upon each of
the parties to this agreement or instrument and their respective successors and
assigns and shall inure to the benefit of the Trustee and each and every holder
of Senior Indebtedness and their respective successors and assigns.
(c) The provisions contained herein shall be governed by and
construed in accordance with the laws of the State of New York.
(d) The Relevant Creditor and the Relevant Obligor each hereby
irrevocably agrees that any suits, actions or proceedings arising out of or in
connection with the provisions contained herein may be brought in any state or
federal court sitting in The City of New York or any court in the Province of
Ontario and submits and attorns to the non-exclusive jurisdiction of each such
court.
5
EXHIBIT B
PROVISIONS FOR INTER-COMPANY SUBORDINATED DEBT
1. Terms defined in the Indenture in respect of the 6.25% Senior
(Secured) Second Priority Notes due 2013 dated as of June 19, 2003 (the
"Indenture") between Rogers Cable Inc. (the "Company") and JPMorgan Chase Bank,
as trustee (the "Trustee") and used herein have the meanings attributed to such
terms in the Indenture. As used herein, the term "Relevant Obligor" means the
obligor creating, incurring, assuming or suffering to exist any Inter-Company
Subordinated Debt. The term "Obligor" means any of the Company and any
Restricted Subsidiary.
2. The indebtedness evidenced by this agreement shall constitute
Inter-Company Subordinated Debt and the Relevant Obligor and the relevant
creditor who is owed such indebtedness (the "Relevant Creditor") agree that the
payment of the principal of (and premium, if any), and interest on such
indebtedness is expressly subordinated, to the extent and in the manner
hereinafter set forth, in right of payment to the prior payment in full of all
amounts from time to time owing to the Holders of the Securities (which amounts
are hereinafter called "Senior Secured Debt"). The Relevant Obligor agrees to
hold the benefit of these provisions as incorporated in this agreement or this
instrument as trustee for and on behalf of the Trustee and the Holders of the
Securities and the Relevant Obligor shall be a party to the agreement or
instrument in such capacity and shall give the Relevant Creditor (and the
Relevant Obligor on its own behalf) one dollar as valuable consideration in
respect of the agreements given to it in such capacity as trustee.
3. For purposes hereof, the words "cash, property or securities"
shall not be deemed to include securities of the Relevant Obligor or any other
Person provided for by a plan of reorganization or readjustment, the payment of
which is subordinated, at least to the extent provided herein with respect to
the indebtedness owing to the Relevant Creditor, to the payment of all Senior
Secured Debt which may at the time be outstanding; provided, however, that (i)
all Senior Secured Debt is assumed by the new Person, if any, resulting from any
such reorganization or readjustment, and (ii) the rights of the Holders of the
Securities are not, without the consent of the Holders of the Securities,
altered by such reorganization or readjustment.
4. Upon any distribution of assets of the Relevant Obligor or upon
any dissolution, winding up, arrangement, liquidation, reorganization,
bankruptcy, insolvency or receivership or similar proceeding relating to the
Relevant Obligor or its property or other marshalling of assets of the Relevant
Obligor:
(a) the Holders of the Securities shall first be entitled to receive
payment in full of all Senior Secured Debt including, without limitation,
the principal thereof and premium, if any, and the interest due thereon,
before the Relevant Creditor is entitled to receive any payment of the
principal of and premium, if any, and interest on any Indebtedness owing
to it; and
(b) any payment or distribution of assets of the Relevant Obligor of
any kind or character, whether in cash, property or securities, to which
the Relevant Creditor would be entitled except for the provisions hereof
shall be paid by the liquidating trustee or agent or other person making
such payment or distribution, whether a trustee in bankruptcy, a receiver
or liquidating trustee or otherwise, directly to the Holders of the
Securities to the extent necessary to pay in full all Senior Secured Debt
remaining unpaid after giving effect to any concurrent payment or
distribution to the Holders of the Securities in respect of such Senior
Secured Debt; and
(c) in the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Relevant Obligor of any kind or character,
whether in cash, property or securities, shall be received by the Relevant
Creditor before all Senior Secured Debt is paid in full, such payment or
distribution shall be held in trust for the benefit of and shall be paid
over to the Holders of the Securities for application to the payment of
all Senior Secured Debt remaining unpaid until all Senior Secured Debt
shall have been paid in full after giving effect to any concurrent payment
or distribution to the Holders of the Securities in respect of such Senior
Secured Debt.
5. Upon any payment or distribution of assets of the Relevant
Obligor referred to in this agreement or instrument, the Relevant Creditor shall
be entitled to rely (i) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in Section 4 are
pending, (ii) upon a certificate of the liquidating trustee or agent or other
person in such proceedings making such payment or distribution to the Relevant
Creditor or its representative, if any, or (iii) upon a certificate of the
Trustee or any representative (if any) of the Holders of the Securities for the
purpose of ascertaining the identity of the Holders of the Securities and the
Trustee, the holders of other Senior Debt of the Relevant Obligor, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to the subordination contemplated by
this agreement or instrument.
6. Nothing contained herein is intended to or shall impair, as
between the Relevant Obligor and its creditors (other than the Holders of the
Securities as regards the Senior Secured Debt and the Relevant Creditor) the
obligation of the Relevant Obligor, which is unconditional and absolute, to pay
to the Relevant Creditor the principal of and premium, if any, and interest on
the Debt owing to the Relevant Creditor as and when the same shall become due
and payable in accordance with its terms or affect the relative rights of the
Relevant Creditor and creditors of the Relevant Obligor other than the Holders
of the Securities as regards the Senior Secured Debt, nor shall anything herein
or therein prevent the Relevant Creditor from exercising all remedies otherwise
permitted by applicable law upon default with respect to the Debt owing to the
Relevant Creditor subject to the rights, if any, herein of the Holders of the
Securities as regards the Senior Secured Debt in respect of cash, property or
securities of the Relevant Obligor received upon the exercise of any such
remedy.
7. Upon the maturity of any Senior Secured Debt by lapse of time,
acceleration or otherwise, then, except as hereinafter provided, all principal
of and premium, if any, and interest on all such matured Senior Secured Debt
shall first be paid in full or shall have first been duly provided for before
any payment on account of principal of or premium, if any, or interest owing to
the Relevant Creditor is made.
2
8. Upon the happening of an Event of Default with respect to any
Senior Secured Debt permitting the Holders of the Securities (or any of them) to
accelerate the maturity of the Senior Secured Debt then, unless and until such
Event of Default shall have been cured or waived or shall have ceased to exist,
no payment (including, without limitation, by purchase of the Debt owing to the
Relevant Creditor or otherwise) shall be made by the Relevant Obligor with
respect to the principal of or premium, if any, or interest on the Indebtedness
owing to the Relevant Creditor. In the event that, notwithstanding the
foregoing, the Relevant Obligor shall make any payment of principal of or
premium, if any, or interest on the Debt owing to the Relevant Creditor after
the happening of such an Event of Default, then, except as hereinafter otherwise
provided, unless and until such Event of Default shall have been cured or waived
or have ceased to exist, such payment shall be held in trust for the benefit of
and, if and when such Senior Secured Debt shall have become due and payable,
shall be paid over to the Holders of the Securities and applied to the payment
of all Senior Secured Debt remaining unpaid until all such Senior Secured Debt
shall have been paid in full.
9. The fact that any payment to the Relevant Creditor is prohibited
hereby shall not prevent the failure to make such payment from being an event of
default as regards such Relevant Creditor.
10. Nothing contained herein or in any agreement, indenture or other
instrument in respect of the Debt owing to the Relevant Creditor shall, subject
to Section 7:
(a) prevent the Relevant Obligor at any time from making payments at
any time of the principal of and premium, if any, or interest to the
Relevant Creditor on account of Inter-Company Subordinated Debt unless:
(i) Such payment is proposed to be made on or after the date
upon which any Event of Default or any of the events described in
Section 4 has occurred in circumstances where notice of such
proposed payment shall have been given by the Relevant Creditor or
the Company to the Trustee prior to the happening of such Event of
Default or other event; or
(ii) such payment would otherwise occur while any proceedings
in respect of the dissolution, arrangement, winding up, liquidation,
reorganization, bankruptcy, insolvency or receivership of the
Relevant Obligor are pending; or
(b) prevent the Relevant Obligor from applying to the retirement of
any Inter-Company Subordinated Debt the proceeds of a substantially
concurrent issue of other Inter-Company Subordinated Debt or of shares of
any class of the Relevant Obligor; or
(c) except in circumstances to which clauses (a)(i) or (ii) are
applicable, require the Relevant Creditor to pay to the Trustee or the
Holders of the Securities, or to repay to the Relevant Obligor, any amount
so paid.
11. Unless and until written notice shall be given to the Relevant
Creditor by or on behalf of any Holder or any representative or representatives
of any Holder, including the Trustee (it being understood that nothing herein
shall create any obligation on the part of the
3
Trustee to give any such notice), notifying the Relevant Creditor of the
happening of an Event of Default with respect to the Senior Secured Debt or of
the existence of any other facts which would result in the making of any payment
with respect to the Debt owing to the Relevant Creditor in contravention of the
provisions hereof, the Relevant Creditor shall be entitled to assume that no
such Event of Default has occurred or that no such facts exist; and, with
respect to any monies which may at any time be received by the Relevant Creditor
in trust pursuant to any provisions hereof prior to the receipt by it of such
written notice, nothing herein shall prevent the Relevant Creditor from applying
such monies to the purposes for which the same were so received, notwithstanding
the occurrence or continuance of an Event of Default with respect to, or the
existence of such facts with respect to, the Senior Secured Debt unless the
Relevant Creditor has actual knowledge to the contrary.
12. (a) No right of the Trustee or any Holder as regards the Senior
Secured Debt to enforce subordination as provided herein shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of
the Relevant Obligor or by any act or failure to act, in good faith, by any such
Holder or the Trustee, or by any non-compliance by the Relevant Obligor with the
terms, provisions or covenants herein, regardless of any knowledge thereof which
any Holder or the Trustee may have or be otherwise charged with.
(b) The rights of the Trustee and the Holders of Securities with
respect hereto shall not be affected by any extension, renewal or modification
of the terms, or the granting of any security in respect of, any Senior
Indebtedness or any exercise or non-exercise of any right, power or remedy with
respect thereto.
(c) The Relevant Creditor agrees not to exercise any offset or
counterclaim or similar right in respect of the Inter-Company Subordinated Debt
except to the extent payment of such Inter-Company Subordinated Debt is
permitted and will not assign or otherwise dispose of any Inter-Company
Subordinated Debt unless the assignee or acquiror, as the case may be, agrees to
be bound by the terms hereof.
13. The provisions contained herein
(a) may not be amended or modified in any respect, nor may any of
the terms or provisions hereof be waived, except by an instrument signed
by the Relevant Obligor, the Relevant Creditor and the Trustee,
(b) shall be binding upon each of the parties hereto and their
respective successors and assigns and shall enure to the benefit of the
Trustee, each and every Holder of the Securities and their respective
successors and assigns,
(c) shall be governed by and construed in accordance with the laws
of the State of New York.
The Relevant Creditor and the Relevant Obligor each irrevocably
agree that any suits, actions or proceedings arising out of or in connection
with the provisions contained herein may be brought in any state or federal
court sitting in The City of New York or any court in the Province of Ontario
and submits and attorns to the non-exclusive jurisdiction of each such court.
4
EXHIBIT C
FORM OF PLEDGE AGREEMENT
THIS PLEDGE AGREEMENT made as of the 19th day of June, 2003.
BETWEEN:
ROGERS CABLE INC., a corporation incorporated under the
Business Corporations Act (Ontario)
(the "Company")
and
JPMORGAN CHASE BANK, a New York banking corporation,
as trustee
(the "Trustee")
In consideration of the premises herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, it is hereby covenanted, agreed and acknowledged by and between
the parties hereto as follows:
1. Reference is made to that certain indenture, of even date herewith,
between the Company, as issuer, and the Trustee, as trustee, providing for
the issuance of the Securities (as defined below), as the same may be
amended, supplemented, restated or replaced from time to time (the
"Indenture"). In this Pledge Agreement, unless something in the subject
matter or context is inconsistent therewith, capitalized terms used but
not defined herein have the respective meanings attributed to them in the
Indenture as in effect on the date hereof, and "Securities" means the
US$350,000,000 aggregate principal amount of 6.25 Senior (Secured) Second
Priority Notes due 2013 of the Company and the Exchange Securities (as
defined in the Indenture) issued under the Indenture.
2. The Company hereby deposits with and assigns and pledges to the Trustee
the Trust Bond to be held by the Trustee pursuant to the provisions
hereof, as trustee for and on behalf of each of the holders of Securities,
as general and continuing collateral security for the due repayment and
satisfaction of all present and future indebtedness, liabilities and
obligations of the Company of any kind whatsoever under, in connection
with or relating to the Indenture, including, without limitation, the
Securities and any ultimate unpaid balance thereof, and to secure the due
performance of all other present and future obligations of the Company to
the Trustee (including obligations under Section 607 of the Indenture) and
the holders of Securities under the Indenture and the Securities
(collectively, the "Obligations").
3. If, at any time, an Event of Default shall have occurred and be
continuing, the Trustee may, at any time, realize upon the Trust Bond in
the manner and to the extent permitted by law, by sale, transfer or
delivery, and may exercise and enforce all rights and remedies of the
holder of the Trust Bond (including, without limitation, making demand
thereunder as if the Trustee were the absolute owner thereof) without
notice to, consent of or control by the Company, and, except to the extent
required by law, any such right or remedy may be exercised separately or
in combination with any other right or remedy and shall be in
addition to and not in substitution for any other rights of the Trustee however
created; provided that the Trustee shall not be bound to exercise any such right
or remedy and shall not be liable for any loss which may be occasioned by any
failure to do so; and provided further that any such sale, transfer or delivery
shall be on terms whereby the Person acquiring the Trust Bond shall hold the
Trust Bond subject to the provisions hereof.
4. If any moneys received by the Trustee as payment under the Trust Bond or
by way of realization of the security hereby constituted are in a currency
(the "Realization Currency") which is different from the currency of any
of the Obligations secured hereby (the "Agreed Currency"), then, in such
event, the Trustee shall be entitled to convert all or a portion of such
moneys as are in the Realization Currency into the Agreed Currency at the
rate of exchange quoted by The Toronto-Dominion Bank at its central
foreign exchange desk in its head office in Toronto at 12:00 noon (Toronto
time) on the date of receipt and to apply the new amount of moneys
received on such conversion on account of the Obligations hereby secured,
and, in any such case, the amount of the Obligations hereby secured will
be reduced by the amount of the Agreed Currency so applied, and, for
greater certainty, the Company shall remain fully liable for the balance
of such Obligations.
5. The proceeds of the Trust Bond, including, without limitation, any
distributions in respect thereof by the Trustee, shall be applied by the
Trustee on account of such part of the Obligations as it chooses without
prejudice to its claim upon the Company for any deficiency.
6. The Trustee may, from time to time, grant extensions of time or other
indulgences, take and give up securities, accept compositions, grant
releases and discharges and otherwise deal with the Company and other
parties, sureties or securities as the Trustee may see fit in accordance
with the terms of the Indenture and the Securities without prejudice to
the Trustee's right in respect of the Trust Bond or in any way limiting or
lessening the liability of the Company under the Trust Bond.
7. Upon full, final and irrevocable satisfaction of the Obligations, the
Trust Bond, upon Company Order, shall be delivered to the Deed Trustee for
cancellation.
8. The Trust Bond shall not operate by way of merger of any of the
Obligations, and no judgment recovered by or on behalf of the Trustee
shall operate by way of merger of, or in any way affect, the security of
the Trust Bond which is in addition to and not in substitution for any
other security now or hereafter held by the Trustee.
9. Notwithstanding the provisions of any other section of this Pledge
Agreement or any provisions of the Indenture, the Inter-Creditor
Agreement, the Deed of Trust or any security provided for thereunder,
under no circumstances, other than if an Event of Default shall have
occurred and be continuing, may the Trustee collect or claim a right to
collect any amounts on or in respect of the Trust Bond or pursuant to any
provisions of the Deed of Trust or the security provided for thereunder or
under the Indenture. If any such amount is, for any reason, received by
the Trustee, it shall pay over the amount to
2
the Company or to the Restricted Subsidiary providing security in respect of the
Obligations (the "Payee") unless (i) an Event of Default shall have occurred and
be continuing or (ii) a Default shall have occurred and be continuing, in which
case, the Trustee shall retain such amount in trust for the benefit of the Payee
until (a) the Default has been cured or (b) any applicable grace period in
respect of such Default has expired, at which time, the Trustee shall pay over
such amount to the Payee unless an Event of Default shall have occurred and be
continuing. Any such amount received by the Trustee which it is required to pay
to the Payee pursuant to this Section 9 shall, in no circumstances, be deemed to
be a payment on account of the Obligations.
10. Notwithstanding that the Trust Bond is expressed to be payable on demand,
the Trustee shall have no right to, and shall not, demand payment unless
or until an Event of Default shall have occurred and be continuing.
Notwithstanding any provisions of the Trust Bond, payment to the Trustee
or the holders of Securities of interest for any period in respect of the
Obligations shall be deemed to be payment in satisfaction of the interest
payment for the same period under the Trust Bond. No payment of principal
on account of any of the Obligations shall be treated as a payment on
account of any of the principal amount of the Trust Bond. The Trustee, in
realizing on the Trust Bond or the security constituted thereby, shall not
claim under the Trust Bond any greater amount in the aggregate for
principal and interest than the aggregate of the Obligations then owing by
the Company.
11. The Company shall not amend, modify or supplement, or waive or consent to
departures from, the provisions of the Trust Bond or any other pledge
agreement relating to any other Senior Secured Bond (as such term is
defined in the Deed of Trust) issued pursuant to the Deed of Trust except
as provided in the Deed of Trust.
12. (a) Upon the deposit of the Trust Bond pursuant to Section 2 hereof, the
Trust Bond shall have a legend conspicuously noted thereon substantially
in the form of the legend below:
"This Senior Secured Bond is subject to the terms and conditions of
a pledge agreement, of even date herewith, entered into by the
Company and JPMorgan Chase Bank, as trustee, in connection with the
issue by the Company of U.S.$350,000,000 aggregate principal amount
of 6 1/4% Senior (Secured) Second Priority Notes due 2013."
(b) Any bond issued under the Deed of Trust in substitution for, or
in replacement of, the Trust Bond shall have conspicuously noted thereon
the legend referred to in Section 12(a) hereof.
3
13. The provisions hereof shall be binding upon, and shall inure to the
benefit of, the Company, the Trustee and the holders of Securities and
their respective successors and permitted assigns.
14. Nothing contained herein, in the Trust Bond or in the Deed of Trust shall
amend, modify, vary or otherwise change the rights of the Trustee or any
of the holders of Securities or the obligations of the Company under the
Indenture or in respect of the Securities or shall limit the rights of the
Trustee or any of the holders of Securities under, or in respect of, the
Obligations.
15. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the Province of Ontario and the laws of Canada
applicable therein.
IN WITNESS WHEREOF, the parties hereto have duly executed this instrument as of
the day and year first above written.
ROGERS CABLE INC.
By:
---------------------------------------------
M. Lorraine Daly
Vice-President, Treasurer
By:
---------------------------------------------
Alan D. Horn
Vice-President
JPMORGAN CHASE BANK, as trustee for the Notes
By:
---------------------------------------------
Name:
Title:
4
EXHIBIT D
FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH
TRANSFERS FROM RESTRICTED GLOBAL SECURITY
TO REGULATION S GLOBAL SECURITY
[date]
JPMorgan Chase Bank
450 West 33rd Street
New York, New York 10001
Re: Rogers Cable Inc.
(the "Company") 6.25% Senior (Secured) Second Priority Notes
due 2013 (the "Securities")
Ladies and Gentlemen:
This letter relates to $_______ principal amount of Securities which
are evidenced by the Restricted Global Security (CUSIP No. 77509NAG8) and held
with the Depositary in the name of Cede & Co. and held for the benefit of
__________ (the beneficial owner) (the "Transferor"). The Transferor has
requested a transfer of such beneficial interest in the Securities to a Person
who will take delivery thereof in the form of an equal principal amount of
Securities evidenced by the Regulation S Global Security (CUSIP No. U77527AA4).
In connection with such request and in respect of such Securities,
we hereby certify that such transfer has been effected in compliance with the
transfer restrictions applicable to the Global Securities and pursuant to and in
accordance with Rule 903, Rule 904 or Rule 144 under the United States
Securities Act of 1933, as amended (the "Securities Act"), and accordingly we
hereby further certify that:
(A) if the transfer has been effected pursuant to Rule 903 or Rule
904:
(1) the offer of the Securities was not made to a person in
the United States;
(2) either (a) at the time the buy order was originated, the
transferee was outside the United States or we and any person acting
on our behalf reasonably believed that the transferee was outside
the United States or (b) the transaction was executed in, on or
through the facilities of a designated off-shore securities market
and neither we nor any person acting on our behalf knows that the
transaction has been pre-arranged with a buyer in the United States;
(3) no directed selling efforts have been made in the United
States in contravention of the requirements of Rule 903(b) or Rule
904(b) of Regulation S, as applicable; and
(4) the transaction is not part of a plan or scheme to evade
the registration requirements of the Securities Act.
(B) If the transfer has been effected pursuant to Rule 144, the
Securities have been transferred in a transaction permitted by Rule 144 under
the Securities Act.
Upon giving effect to this request to exchange a beneficial interest
in such Restricted Global Security for a beneficial interest in a Regulation S
Global Security, the resulting beneficial interest shall be subject to the
restrictions on transfer applicable to a Regulation S Global Security pursuant
to the Indenture and the Securities.
You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby. Terms used in this certificate have the
meanings set forth in Regulation S.
Very truly yours,
[Name of Transferor]
By:
----------------------------------------
Authorized Signature
2
EXHIBIT E
FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH
TRANSFERS FROM REGULATION S GLOBAL SECURITY TO
RESTRICTED GLOBAL SECURITY
JPMorgan Chase Bank
450 West 33rd Street
New York, New York 10001
Re: Rogers Cable Inc.
(the "Company") 6.25% Senior (Secured) Second Priority Notes
due 2013 ( the "Securities")
Ladies and Gentlemen:
This letter relates to $_______ principal amount of the Securities
which are evidenced by the Regulation S Global Security (CUSIP No. U77527AA4)
and held with the Depositary in the name of Cede & Co. and held for the benefit
of __________ (the beneficial owner) (the "Transferor"). The Transferor has
requested a transfer of such beneficial interest in the Securities to a Person
who will take delivery thereof in the form of an equal principal amount of
Securities evidenced by the Restricted Global Security (CUSIP No. 77509NAG8), to
be held with the Depositary.
In connection with such request and in respect of such Securities,
the Transferor hereby certifies that such transfer is being effected pursuant to
and in accordance with Rule 144A under the United States Securities Act of 1933,
as amended (the "Securities Act"), and, accordingly, the Transferor hereby
further certifies that the Securities are being transferred to a Person that the
Transferor reasonably believes is purchasing the Securities for its own account,
or for one or more accounts with respect to which such Person exercises sole
investment discretion, and such Person and each such account is a "qualified
institutional buyer" within the meaning of Rule 144A in a transaction meeting
the requirements of Rule 144A and such Securities are being transferred in
compliance with any applicable blue sky securities laws of any state of the
United States.
Upon giving effect to this request to exchange a beneficial interest
in Regulation S Global Securities for a beneficial interest in the Restricted
Global Security, the resulting beneficial interest shall be subject to the
restrictions on transfer applicable to a Restricted Global Security pursuant to
the Indenture and the Securities Act.
This certificate and the statements contained herein are made for
your benefit and the benefit of the Company. Terms used in this certificate and
not otherwise defined in the Indenture have the meanings set forth in Regulation
S under the Securities Act.
Very truly yours
[Name of Transferor]
By:
------------------------------------
2
EXHIBIT F
FORM OF CERTIFICATE FOR TRANSFER OR
EXCHANGE AFTER TWO YEARS
JPMorgan Chase Bank
450 West 33rd Street
New York, New York 10001
Re: Rogers Cable Inc.
(the "Company") 6.25% Senior (Secured) Second Priority Notes
due 2013 ( the "Securities")
Ladies and Gentlemen:
[For transfers: This letter relates to $____________ principal
amount of Securities which are evidenced by a Restricted Global Security (CUSIP
No. 77509NAG8) and held with the Depositary in the name of Cede & Co. [and held
for the benefit of _________________] (the "Beneficial Owner"). The Beneficial
Owner has requested that its beneficial interest in such Securities be
transferred to a Person that will take delivery thereof in the form of an equal
principal amount of Securities evidenced by the Regulation S Global Security
(CUSIP No. U77527AA4).
In connection with such request and in respect of such Securities,
the Beneficial Owner does hereby certify that upon such transfer, (a) a period
of at least two years will have elapsed since June 19, 2013, (b) the Beneficial
Owner during the three months preceding the date of such transfer was not an
"affiliate" of the Company (as defined in Rule 144 under the Securities Act),
and it was not acting on behalf of such an affiliate and (c) such Person to whom
such transfer is being made is not an "affiliate" of the Company.]
[For exchanges: This letter relates to $_______________ principal
amount of Securities that are evidenced by a [Restricted Global Security (CUSIP
No. 77509NAG8) and held with the Depositary in the name of Cede & Co. [and held
for the benefit of ] ] (the "Beneficial Owner"). The Beneficial Owner has
requested that its beneficial interest in such Securities be exchanged for a
beneficial interest in an equal principal amount of Securities evidenced by the
Regulation S Global Security (CUSIP No. U77527AA4).
In connection with such request and in respect of such Securities,
the Beneficial Owner does hereby certify that, upon such exchange, (a) it will
be the beneficial owner of such Securities, (b) a period of at least two years
will have elapsed since June 19, 2003 and (c) the Beneficial Owner will not be,
and during the three months preceding the date of such exchange will not have
been, an "affiliate" of the Company (as defined in Rule 144 under the Securities
Act), and it is not acting on behalf of such an affiliate.]
This certificate and the statements contained herein are made for
your benefit and the benefit of the Company.
Dated: [Insert Name of Beneficial Owner]
By:
-----------------------------------------
Name:
Title:
2
EXHIBIT G
SUBORDINATION AGREEMENT
THIS AGREEMENT made as of the 19th day of June, 2003 AMONG
Rogers Cable Inc. (the "Company"); Rogers Cablesystems Ontario Limited, Rogers
Ottawa Limited/Limitee, Rogers Cablesystems Georgian Bay Limited and Rogers
Cable Atlantic Inc. (collectively, the "Restricted Subsidiaries" and, each
individually, a "Restricted Subsidiary"); JPMorgan Chase Bank (formerly Chemical
Bank) in its capacity as trustee under the Subordinated Debt Indenture (as
defined below) (the "Subordinated Debt Trustee"); and JPMorgan Chase Bank in its
capacity as trustee under the 2003 Note Indenture (as defined below) (the "2003
Note Trustee")
WITNESSES THAT WHEREAS:
A. The Company (formerly known as Rogers Cablesystems Limited), certain
affiliates of the Company that were then Designated Subsidiaries
(within the meaning of the Deed of Trust (as defined below)) and the
Subordinated Debt Trustee, among others, entered into an indenture (the
"Subordinated Debt Indenture"), dated as of November 30, 1995,
providing for the issuance of the Company's 11% Senior Subordinated
Guaranteed Debentures due 2015 (the "Subordinated Securities"). "Deed
of Trust" means the restated deed of trust and mortgage, dated as of
January 31, 1995, between Rogers Cablesystems Limited (now the Company)
and National Trust Company, as trustee.
B. The Company and the 2003 Note Trustee entered into an indenture (the
"2003 Note Indenture"), dated as of the date hereof, providing for the
issuance of the Company's 6.25% Senior (Secured) Second Priority Notes
due 2013 (the "2003 Notes").
C. Pursuant to section 1207 of the Subordinated Debt Indenture, the
Company has furnished an Officers' Certificate (as such term is defined
in the Subordinated Debt Indenture) to the Subordinated Debt Trustee
(i) stating that the 2003 Note Trustee is trustee on behalf of holders
of Senior Indebtedness (as such term is defined in the Subordinated
Debt Indenture) and (ii) directing the Subordinated Debt Trustee to
execute and deliver this Agreement.
NOW THEREFORE for good and valuable consideration (the receipt
and sufficiency of which are hereby acknowledged), the parties hereto agree as
follows:
1. SUBORDINATION
The Subordinated Debt Trustee, under the authority granted to
it in the Subordinated Debt Indenture and as trustee on behalf of the holders of
the Subordinated Securities, the Company and each of the Restricted Subsidiaries
hereby covenant with the 2003 Note Trustee, in its capacity as trustee on behalf
of the holders of the 2003 Notes, that (i) the indebtedness represented by the
Subordinated Securities, (ii) the payment of principal of (and premium, if any)
and interest on each and all of the Subordinated Securities, (iii) the
obligations
- 2 -
represented by each and all of the Guarantees (as such term is defined in the
Subordinated Debt Indenture) delivered from time to time under the Subordinated
Debt Indenture and (iv) the payment of the Guaranteed Obligations (as such term
is defined in such Guarantees) thereunder are all subordinate and subject in
right of payment to the prior payment in full of indebtedness, premium (if any),
interest and fees and expenses owing to the holders of the 2003 Notes and the
2003 Note Trustee, as trustee on their behalf, under the 2003 Notes and the 2003
Note Indenture, in the manner, to the same extent and with the same effect as if
the terms and provisions of the Subordinated Debt Indenture and such Guarantees
were set forth herein.
2. PAYMENT TO THE COMPANY IN CERTAIN CIRCUMSTANCES
In accordance with section 1205 of the Subordinated Debt
Indenture, if any holder of the 2003 Notes or the 2003 Note Trustee, as trustee
on behalf of the holders of the 2003 Notes, (each, a "Recipient") shall receive
any amount under this Agreement and, at the time of receipt, such Recipient is
not entitled to such amount under the terms of the 2003 Note Indenture and the
2003 Notes (whether by reason of maturity, acceleration or otherwise), then such
Recipient shall turn over such amount to the Company. Any such amount so
received by any Recipient which it is required to turn over to the Company
pursuant to this section 2 shall, in no circumstances, be considered to be a
payment on account of the Senior Indebtedness represented by the 2003 Notes.
3. BINDING EFFECT AND ENUREMENT
This Agreement shall be binding upon the successors of the
Company, each of the Restricted Subsidiaries and the Subordinated Debt Trustee,
as trustee on behalf of the holders of the Subordinated Securities, and shall
enure to the benefit of the successors and permitted assigns of the 2003 Note
Trustee, as trustee on behalf of the holders of the 2003 Notes.
4. NO WAIVER OR AMENDMENT
No provision of this Agreement may be waived or amended except
by an instrument in writing signed by the party hereto against which the
enforcement of any waiver or amendment is sought.
5. NO PERSONAL LIABILITY
Neither the Subordinated Debt Trustee nor the 2003 Note
Trustee makes any representation or warranty as to the validity, sufficiency or
effect of this Agreement or as to its authority to execute and deliver this
Agreement. Neither the Subordinated Debt Trustee nor the 2003 Note Trustee shall
have any personal responsibility or liability with respect to the covenant
contained in section 1 hereof.
6. COUNTERPARTS
This Agreement may be executed in counterparts, and all such
counterparts taken together shall be deemed to constitute one and the same
instrument.
- 3 -
7. GOVERNING LAW
This Agreement shall be governed by, and construed in
accordance with, the laws of the Province of Ontario and the laws of Canada
applicable therein.
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
- 4 -
ROGERS CABLE INC.
By:
-------------------------------------
Name: M. Lorraine Daly
Title: Vice-President, Treasurer
By:
-------------------------------------
Name: Alan D. Horn
Title: Vice-President
ROGERS CABLESYSTEMS ONTARIO LIMITED
By:
-------------------------------------
Name: M. Lorraine Daly
Title: Vice-President, Treasurer
By:
-------------------------------------
Name: Alan D. Horn
Title: Vice-President
ROGERS OTTAWA LIMITED/LIMITEE
By:
-------------------------------------
Name: M. Lorraine Daly
Title: Vice-President, Treasurer
By:
-------------------------------------
Name: Alan D. Horn
Title: Vice-President
- 5 -
ROGERS CABLESYSTEMS GEORGIAN BAY LIMITED
By:
-------------------------------------
Name: M. Lorraine Daly
Title: Vice-President, Treasurer
By:
-------------------------------------
Name: Alan D. Horn
Title: Vice-President
ROGERS CABLE ATLANTIC INC.
By:
-------------------------------------
Name: M. Lorraine Daly
Title: Vice-President, Treasurer
By:
-------------------------------------
Name: Alan D. Horn
Title: Vice-President
- 6 -
JPMORGAN CHASE BANK, in its capacity as the
Subordinated Debt Trustee
By:
-------------------------------------
Name: Natalia Moran
Title: Vice President
JPMORGAN CHASE BANK, in its capacity as the
2003 Note Trustee
By:
-------------------------------------
Name: Natalia Moran
Title: Vice President