Chrysler Canada Ltd. Regulations, 1982 — 3
3 (1) Subject to sections 4 and 5, the Minister may, pursuant to Industry, Trade and Commerce Vote 1a of Appropriation Act No. 1, 1980-81 , provide insurance of any loans, not exceeding two hundred million dollars in the aggregate, made by a private lender to Chrysler Canada Ltd. (2) Any agreement to insure between Her Majesty in right of Canada and Chrysler Corporation, Chrysler Canada Ltd. and DCI Diesel Canada Inc. shall be in form and content satisfactory to the Minister and shall include the following conditions: (a) that the private lender pays Her Majesty an insurance fee of one per cent per annum based on the amount of insurance in effect from time to time; (b) that the insured loan is used (i) to the extent of $150 million maximum to provide for the conversion and retooling of the Windsor Assembly Plant into a van/wagon plant in the years 1983 and 1984 so as to produce a van/wagon for sale to the public in the autumn of 1983, and (ii) to the extent of $50 million maximum to finance the conversion, retooling and re-equipping of the Windsor Engine Plant into a diesel engine plant capable of producing 240,000 engines per year at straight time by December 31, 1985; (c) that any loan insurance agreement between Her Majesty and a private lender shall be entered into on or after January 1, 1983 but not later than September 1, 1984; (d) that the insured loan be repaid over a period of not more than five years commencing (i) in respect of the insured loan referred to in subparagraph (b)(i), on April 30, 1986, and (ii) in respect of the insured loan referred to in subparagraph (b)(ii), on December 31, 1986; (e) that Chrysler Canada Ltd. conducts its business in accordance with an Operating and Financing Plan approved by the Minister; (f) that the employment level of Chrysler Canada Ltd. and DCI Diesel Canada Inc. shall be, (i) nine per cent during the calendar years 1980 and 1981, (ii) at least 11 per cent during each calendar year commencing in the year 1982 and ending in the year 1986, and (iii) an average of at least 11 per cent for the calendar years 1987 and 1988 and in no case shall the employment be less than nine per cent in the calendar year 1987 or 1988, of the employment level of Chrysler Corporation in the United States for the same periods; (g) that the employment in the diesel engine plant located in the Windsor Engine Plant referred to in subparagraph (b)(ii) shall, subject to demonstrated productivity improvements and market factors, reach a level of 1,000 persons in 1988 and that such level shall be maintained until the later of 1990 and the repayment of the insured loan referred to in subparagraph (b)(ii); (h) that during the years 1980, 1981, 1982, 1983, 1984, 1985 and 1986, Chrysler Canada Ltd. shall invest a total of $821 million in the Windsor Assembly Plant, the Windsor Engine Plant referred to in paragraph (g) and its other Canadian operations; (i) that Chrysler Canada Ltd. reaches an agreement with its bankers on a restructuring of any loans outstanding and such restructuring shall provide that (i) any repayment of the principal outstanding is postponed until September 30, 1986 and is repayable in equal quarterly instalments over a period of five years commencing on that date, (ii) the principal outstanding referred to in subparagraph (i) does not accrue interest at more than 12.5 per cent per annum, and (iii) seven per cent of the interest referred to in subparagraph (ii) is deferred until the fourth anniversary of the date of the restructuring; (j) that Chrysler Canada Ltd. and DCI Diesel Canada Inc. enter into a trust indenture with The Canada Trust Company and a security sharing agreement with the private lenders, The Canada Trust Company, the Minister, Her Majesty in Right of Ontario and the Ontario Development Corporation, the combined effects of which will be (i) to secure, by way of a first charge on all the fixed and the non-fixed assets of Chrysler Canada Ltd. and DCI Diesel Canada Inc., (A) t