Document:

Exhibit 10.1

 

SENIOR HOUSING PROPERTIES TRUST

 

Summary of Trustee Compensation

 

The following is a summary of the currently effective compensation of the trustees of Senior Housing Properties Trust (the “Company”) for services as trustees, which is subject to modification at any time by the Board of Trustees.

	
            •
 	
            Each independent trustee receives an annual fee of $25,000, plus a fee of $500 for each meeting attended.  Up to two $500 fees are payable if a board meeting and one or more board committee meetings are held on the same date.
 

	
            •
 	
            The
chairpersons of the audit
committee, the compensation committee and the nominating and governance committee, each of whom
is an independent trustee, receive an additional annual fee of $7,500,
$3,500 and $3,500, respectively.
 

	
            •
 	
            Each
trustee is entitled to receive a grant of 1,500 of the Company’s common shares of
beneficial interest on the date of the first board meeting following each annual meeting of shareholders (or, for trustees who are first elected or appointed at other times, on the day of the first board meeting attended).
 

	
            •
 	
            The Company generally reimburses all trustees for travel expenses incurred in connection with their duties as trustees.Mitel Networks Corporation

 

THIS WARRANT AND THE SECURITIES TO BE ISSUED ON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER
THE UNITED STATES SECURITIES ACT OF 1933 (THE “SECURITIES ACT”). THIS WARRANT MAY NOT BE EXERCISED
BY OR ON BEHALF OF ANY U.S. PERSON UNLESS REGISTERED UNDER THE SECURITIES ACT OR AN EXEMPTION FROM
SUCH REGISTRATION IS AVAILABLE.

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THE SECURITIES SHALL NOT TRADE THE
SECURITIES BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (i) APRIL 23, 2004, AND
(ii) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.

SERIES 1 WARRANT CERTIFICATE 

TO ACQUIRE COMMON SHARES OF

MITEL NETWORKS CORPORATION

THIS CERTIFIES that, for value received, EdgeStone Capital Equity Fund II Nominee, Inc. in its
capacity as nominee of EdgeStone Capital Equity Fund II-A, L.P. and
its parallel investors (the“Holder”), the registered holder of this common share purchase warrant certificate (the “Warrant
Certificate”), is entitled to purchase up to Five Million (5,000,000) Common Shares (the “Warrant
Shares”) (such maximum number to be subject to adjustment as provided by the provisions hereof) in
the capital of Mitel Networks Corporation (the “Corporation”) at any time and from time to time
during the Exercise Period (as defined herein), at a price per share equal to $1.25 (as adjusted
pursuant to the provisions hereof) (the “Exercise Price”) (the “Warrant”).

Capitalized terms used herein have the meaning set forth in Section 5.1 of this Warrant
Certificate.

ARTICLE 1

EXERCISE OF WARRANT

1.1 Election to Exercise

The right to purchase Warrant Shares evidenced by this Warrant Certificate may be exercised
by the Holder at any time and from time to time during the period commencing on the date hereof and
ending at 5:00 p.m. (Ottawa time) on the seventh anniversary of the date hereof (the “Exercise
Period”), in whole or in part and in accordance with the provisions hereof, by (i) delivery of an
election to exercise notice in the form substantially the same as that attached hereto as Schedule
A (the “Election to Exercise Form”) or a net issuance notice in the form substantially the same as
that attached hereto as Schedule B (the “Net Issuance Form”) properly completed and executed, for
the number of Warrant Shares therein specified, and (ii) unless the Holder elects to use the Net
Issuance Form, payment to the Corporation of the Exercise Price, in cash, certified cheque or bank
draft, in respect of each Warrant Share issuable upon such

 

 

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exercise. The Election to Exercise Form or Net Issuance Form, as the case may be, and
Exercise Price in respect of each exercise, if applicable, must be received by the Corporation
during the Exercise Period at its principal office at: Mitel Networks Corporation, 350 Legget
Drive, Kanata, Ontario, K2K 2W7, Fax: (613) 592-7813, Attention: Secretary, or such other address
in Canada as may be notified in writing by the Corporation (the “Exercise Location”).

1.2 Exercise

The Corporation shall, on the date it receives a duly executed Election to Exercise Form and
payment in full of the Exercise Price in respect of each exercise of this Warrant or the Net
Issuance Form (the “Exercise Date”), issue the Warrant Shares underlying the portion of this
Warrant duly exercised as fully paid and non-assessable Common Shares.

1.3 Automatic Exercise

Contemporaneously with the closing of a Qualified IPO or in the event of a sale of all or
substantially all the shares or assets of the Corporation (whether effected by amalgamation,
statutory arrangement or other similar transaction), this Warrant shall automatically be exercised
for Warrant Shares, if any, in accordance with the net issuance procedure set out in Section 1.4,
unless the Holder elects to pay the Exercise Price in connection with this Warrant, in which case
the exercise of this Warrant shall take place in accordance with Section 1.2, failing either of
which, this Warrant shall be cancelled.

1.4 Net-Issuance Exercise

At any time during the Exercise Period the Holder may elect to receive by delivery of a duly
executed Net Issuance Form at the Exercise Location, without the payment by the Holder of any
additional consideration, a number of fully-paid non-assessable Warrant Shares as is computed by
the following formula:

	 	 	 	 	 
	 

	 	X =
	 	Y (A-B)

     A

     where

	 	 	 	 	 
	 

	 	X =
	 	the number of Warrant Shares that shall be issued to the Holder.
	 
	 	 	 	 
	 

	 	Y =
	 	the number of Warrant Shares in respect of which the net
issuance election is being made.
	 
	 	 	 	 
	 

	 	A =
	 	the “Fair Market Value” (as defined herein) of one
Common Share as at the time the net issuance election is made.
	 
	 	 	 	 
	 

	 	B =
	 	the Exercise Price

 

 

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1.5 Share Certificates

As promptly as practicable after the Exercise Date and in any event within five (5) Business Days,
upon the due and valid exercise of this Warrant, the Corporation shall issue and deliver to the
Holder, or such Person as the Holder directs, a certificate or certificates for the Warrant
Shares, as well as, upon surrender to the Corporation of this Warrant Certificate, a new warrant
certificate containing the same terms and conditions as this Certificate, and representing the
remaining unexercised portion of this Warrant, if any. To the extent permitted by law, such
exercise shall be deemed to have been effected immediately prior to 5:00 p.m. (Ottawa time) on the
Exercise Date, and at such time, the rights of the Holder with respect to this Warrant which have
been exercised as such shall cease, and the Person or Persons in whose name or names any
certificate or certificates for Warrant Shares shall then be issuable upon such exercise shall be
deemed to have become the holder or holders of record of the Warrant Shares represented thereby.

1.6 Fractional Common Shares

No fractional Common Shares shall be issued upon exercise of this Warrant. If any fractional
interest in a Common Share would, except for the provisions of this Section 1.6, be deliverable
upon the exercise of this Warrant, the Corporation shall, in lieu of delivering the fractional
Common Shares therefor satisfy the right to receive such fractional interest by rounding up the
number of Common Shares to the nearest whole number.

1.7 Common Shares to be Reserved

The Corporation covenants and agrees that all Warrant Shares issuable upon the exercise of this
Warrant will, upon issuance, be duly authorized and issued, fully paid and non-assessable.

1.8 No Issuance Charge

The issuance of certificates for Warrant Shares upon the exercise of this Warrant shall be made
without charge to the Holder.

1.9 Replacement

Upon receipt of evidence satisfactory to the Corporation of the loss, theft, destruction or
mutilation of this Warrant Certificate and an indemnity in form and substance satisfactory to the
Corporation, the Corporation will issue to the Holder, at no charge to the Holder, a replacement
Warrant Certificate (containing the same terms and conditions as this Warrant Certificate).

1.10 Expiry

At the end of the Exercise Period all rights under this Warrant Certificate in respect of
which the right of subscription and purchase provided for has not been exercised will wholly cease
and terminate, and any unexercised portion of this Warrant will be void and of no effect.

 

 

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ARTICLE 2

ADJUSTMENTS TO EXERCISE PRICE

2.1 Adjustments for Dilution

If, following the date hereof (the “Original Issuance Date”), the Corporation issues any
additional Common Shares or Derivative Securities (other than Excluded Issuances or in connection
with an event to which Section 2.4, 2.5 or 2.6 applies) for Consideration Per Share that is less
than the Series A Conversion Value in effect immediately prior to such issuance:

	 	(a)	 	the Series A Conversion Value shall be reduced to an amount equal to the
Consideration Per Share of such additional Common Shares or Derivative
Securities; and
	 
	 	(b)	 	the Exercise Price in effect immediately prior to such issuance shall be reduced to
an amount equal to the Exercise Price in effect immediately prior to such issuance
multiplied by a fraction, the numerator of which shall be the Series A Conversion
Value determined in accordance with Section 2.1 (a) and Section 2.2 (the
“Adjusted Series A Conversion Value”) and the denominator of which shall be
the Series A Conversion Value in effect immediately prior to such issuance (the
“Original Series A Conversion Value”).

For the purpose of this Article 2, the “Series A Conversion Value” shall initially be $1.00.
Concurrently with each adjustment to the Exercise Price pursuant to this Section 2.1, the maximum
number of Warrant Shares issuable on the exercise of this Warrant shall be increased to a number
equal to the product obtained by multiplying the number of Warrant Shares issuable on exercise of
this Warrant immediately prior to such adjustment by A/B, where A is equal to the Original Series
A Conversion Value and B is equal to the Adjusted Series A Conversion Value.

2.2 Additional Provisions Regarding Dilution

For purposes of this Article 2:

	 	(a)	 	if a part or all of the consideration received by the Corporation in connection
with
the issuance of additional Common Shares or Derivative Securities consists of
property other than cash, such consideration is deemed to have a value equal to its
Fair Market Value;
	 
	 	(b)	 	no adjustment of the Series A Conversion Value is to be made upon the issuance
of any Derivative Securities or additional Common Shares that are issued upon
the exercise, conversion or exchange of any Derivative Securities;
	 
	 	(c)	 	any adjustment of the Series A Conversion Value is to be disregarded if, and to
the extent that, all of the Derivative Securities that gave rise to such adjustment
expire or are cancelled without having been exercised or converted, so that the

 

 

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	 	 	 	Series A Conversion Value effective immediately upon such cancellation or
expiration is equal to the Series A Conversion Value that otherwise would have been
in effect immediately prior to the time of the issuance of the expired or cancelled
Derivative Securities, with any additional adjustments as subsequently would have
been made to that Series A Conversion Value had the expired or cancelled Derivative
Securities not been issued;
	 
	 	(d)	 	if the terms of any Derivative Securities previously issued by the Corporation
are
changed (whether by their terms or for any other reason) so as to raise or lower
the Consideration Per Share payable with respect to such Derivative Securities
(whether or not the issuance of such Derivative Securities originally gave rise to
an adjustment of the Series A Conversion Value), the Series A Conversion Value
is adjusted as of the date of such change;
	 
	 	(e)	 	the Consideration Per Share received by the Corporation in respect of
Derivative
Securities is determined in each instance as follows:

	 	(i)	 	the Consideration Per Share is determined as of the date of
issuance of Derivative Securities without giving effect to any possible future
price adjustments or rate adjustments that might be applicable with respect to
such Derivative Securities and that are contingent upon future events; and
	 
	 	(ii)	 	in the case of an adjustment to the Series A Conversion Value to be made as a result of a
change in terms of any Derivative Securities, the Consideration Per Share for purposes of
calculating the adjustment to the Series A Conversion Value is determined as of the date of
such change and, for greater certainty, not as of the date of the issuance of the Derivative
Securities; and

	 	(f)	 	notwithstanding any other provisions contained in this Warrant Certificate, but
except as provided in Section 2.2(d), no adjustment to the Series A Conversion
Value is to be made in respect of the issuance of additional Common Shares or
Derivative Securities in any case in which such adjustment would otherwise result
in the Series A Conversion Value being greater than the Series A Conversion
Value in effect immediately prior to the issuance of such additional Common
Shares or Derivative Securities.

2.3 Excluded Transactions

Notwithstanding Section 2.1, no adjustment to the Series A Conversion Value is to be made in
connection with the following issuances (“Excluded Issuances”):

	 	(a)	 	any Series B Shares issued on the Original Issuance Date;

 

 

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	 	(b)	 	any Common Shares issued or issuable upon conversion of the Series A
Shares or
Series B Shares; provided that, any such conversion is effected in accordance with
the terms of such shares (including provisions for adjustment) as such terms exist
on the Original Issuance Date;
	 
	 	(c)	 	any Additional Common Shares;
	 
	 	(d)	 	any Common Shares issued to the Series B Holders in accordance with the Series
B Share Terms;
	 
	 	(e)	 	any Common Shares issued or issuable upon exercise of this Warrant or any other
warrants granted to the Series A Holders in connection with such Series A
Holders’ subscription for Series A Shares;
	 
	 	(f)	 	any Common Shares issued pursuant to the Common Share Offering;
	 
	 	(g)	 	any option to purchase Common Shares or other Derivative Securities granted
under any stock option plan, stock purchase plan or other stock compensation
program of the Corporation approved by the Board of Directors and/or Common
Shares or other Derivative Securities allotted for issuance, issued or issuable
pursuant to any such plan or arrangement, or the issuance of any Common Shares
upon the exercise of any such options or other Derivative Securities;
	 
	 	(h)	 	any equity securities issued pursuant to a Qualified IPO or a Non-Qualified IPO;
	 
	 	(i)	 	any warrants to acquire Common Shares issued to TPC or any permitted assignee
of TPC pursuant to obligations of the Corporation to issue such warrants (as such
obligations exist on or before the Original Issuance Date or as such obligations may
be amended with the approval of the Board of Directors after the Original Issuance
Date), and any issuance of Common Shares pursuant to the exercise of such warrants;
	 
	 	(j)	 	any Common Shares or Derivative Securities issued as compensation to any
agent, broker, sub-agent or sub-broker with respect to the transactions entered into
by the Corporation with Series A Holders and certain other shareholders of the
Corporation, and any Common Shares or Derivative Securities issuable upon exercise
thereof;
	 
	 	(k)	 	except as contemplated in Section 2.4, any equity securities issued in respect
of subdivisions, stock dividends or capital reorganizations affecting the share
capital of the Corporation;
	 
	 	(1)	 	any equity securities issued to bona fide consultants or professional advisors
of the Corporation as part of the consideration for services received by the
Corporation from such consultants or professional advisors;

 

 

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	 	(m)	 	any Common Shares or Derivative Securities issued in connection with an
acquisition of assets or a business; provided that (i) the cost of such acquisition
is less than $10,000,000, (ii) any such transaction is approved by the Board of
Directors, and (iii) the maximum aggregate number of Common Shares (including
Common Shares issuable on the conversion or exercise of Derivative Securities) that
may be issued pursuant to all transactions contemplated by this clause (m) shall
not exceed 5% of the aggregate number of Common Shares issued and outstanding on
the Original Issuance Date, subject to appropriate adjustments for Stock Splits and
the like, all calculated on an as-if-converted to Common Shares basis; and
	 
	 	(n)	 	any Common Shares or Derivative Securities issued to or in connection with any
of the following (i) licensors of technology to the Corporation, (ii) lending or
leasing institutions in connection with obtaining debt financing, or (iii) any other
technology licensing, equipment leasing or other non-equity interim financing
transaction; provided that: (A) any such transaction or transactions are approved by
the Board of Directors; and (B) the maximum aggregate number of Common Shares
(including Common Shares issuable on the conversion or exercise of Derivative
Securities) that may be issued pursuant to all transactions contemplated by this clause
(n) shall not exceed 5% of the aggregate number of Common Shares issued and outstanding
on the Original Issuance Date, subject to appropriate adjustments for Stock Splits and
the like, all calculated on an as-if-converted to Common Shares basis.

2.4 Adjustments for Stock Splits

Immediately following the occurrence of any one or more Stock Splits occurring at any time prior
to the Expiry Date, the Exercise Price in effect immediately prior to the occurrence of such event
shall be adjusted such that the Exercise Price is equal to the product obtained by multiplying the
Exercise Price immediately before the Stock Split by a fraction:

	 	(a)	 	the numerator of which is the number of Common Shares issued and outstanding
immediately before the Stock Split; and
	 
	 	(b)	 	the denominator of which is the number of Common Shares issued and
outstanding immediately after the Stock Split.

The maximum number of Warrant Shares which the Holder is entitled to purchase under this Warrant
Certificate shall also be adjusted at the same time by multiplying the number by the inverse of
the fraction set out above.

2.5 Adjustments for Capital Reorganizations

If and whenever at any time prior to the Expiry Date, the Common Shares are changed into the same
or a different number of shares of any class or series, whether by capital reorganization,

 

 

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reclassification or otherwise (other than a Stock Split) or, subject to Section 1.3, upon a
consolidation, amalgamation, arrangement or merger of the Corporation with or into any other
corporation in respect of any unexercised portion of this Warrant, the Holder shall thereafter be
entitled to receive and shall accept in lieu of the number of Warrant Shares, as then constituted,
to which the Holder was previously entitled to receive upon exercise of this Warrant, but for the
same aggregate consideration payable therefore, the number of shares or other securities or
property of the Corporation or of the company resulting from such reclassification, capital
reorganization, consolidation, amalgamation or merger, that such Holder would have been entitled
to receive on such reclassification, capital reorganization, consolidation, amalgamation, merger
on the effective date thereof, if the Holder had been the registered holder of the number of
Common Shares to which the Holder was previously entitled upon due exercise of this Warrant; and
in any case, if necessary, appropriate adjustment shall be made in the application of the
provisions set forth herein with respect to the rights and interests thereafter of the Holder to
the end that the provisions set forth herein shall thereafter correspondingly be made applicable,
as nearly as may reasonably be, in relation to any shares or securities or property to which the
Holder of this Warrant may be entitled upon the exercise of this Warrant thereafter.

2.6 Other Distributions

In the event the Corporation declares a distribution payable in securities (other than securities
of the Corporation), evidences of indebtedness issued by the Corporation or other persons or
assets (excluding cash dividends paid in the ordinary course of business) then, in each such case
for the purpose of this Section 2.6, the Holder shall be entitled upon exercise of this Warrant to
a proportionate share of any such distribution as though it were the holder of the number of
Common Shares into which this Warrant were exercisable as of the record date fixed for the
determination of the holders of Common Shares of the Corporation entitled to receive such
distribution.

2.7 No Impairment

The Corporation will not, by amendment of its articles or through any reorganization,
recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms to be observed or performed under this Warrant Certificate, but will at all times
in good faith assist in the carrying out of all the provisions of Article 2 and in the taking of
any action necessary or appropriate in order to protect the rights of the Holder against
impairment.

2.8 Reservation of Common Shares

The Corporation shall at all times reserve and keep available out of its authorized but
unissued Common Shares, solely for the purpose of effecting the exercise of this Warrant, such
number of Warrant Shares as from time to time is sufficient to effect the exercise of this entire
Warrant, and if at any time the number of authorized but unissued Common Shares is not sufficient
to effect the exercise in full of this Warrant, then the Corporation will take such corporate
action as may,

 

 

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in the opinion of its legal counsel, be necessary to increase its authorized but unissued Common
Shares to such number of shares as is sufficient for such purpose.

2.9 Disputes

If a dispute shall at any time arise with respect to adjustments in the Series A Conversion Value,
such dispute shall be conclusively determined by a firm of independent chartered accountants as
may be selected by the board of directors of the Corporation and any such determination shall be
binding upon the Corporation and the Holder. Such firm of independent chartered accountants shall
be provided access to all necessary records of the Corporation. If any such determination is made,
the Corporation shall deliver a certificate to the Holder describing such determination.

2.10 Certificate as to Adjustments

In each case of an adjustment or readjustment of the Series A Conversion Value, the Corporation
will promptly furnish the Holder with a certificate, prepared by the firm of independent chartered
accountants, showing such adjustment or readjustment, and stating in reasonable detail the facts
upon which such adjustment or readjustment is based.

2.11 Further Adjustment Provisions

If, at any time as a result of an adjustment made pursuant to this Article 2, the Holder
becomes entitled to receive any shares or other securities of the Corporation other than Common
Shares upon surrendering this Warrant for exercise, the conversion ratio in respect of such other
shares or securities (if such other shares or securities are by their terms convertible
securities) will be adjusted after that time, and will be subject to further adjustment from time
to time, in a manner and on terms as nearly equivalent as practicable to the provisions with
respect to Series A Conversion Value contained in this Article 2, and the remaining provisions of
this Article 2 will apply mutatis mutandis to any such other shares or securities.

2.12 Other Events

If any change in the outstanding Common Shares or any other event occurs as to which the
anti-dilution provisions of this Article 2 are not strictly applicable or, if strictly applicable,
would not fairly protect the rights of the Holder in accordance with such provisions, then the
board of directors of the Corporation shall make an adjustment in the number or class of shares to
be issued pursuant to the exercise of this Warrant, the Exercise Price or the application of such
provisions, so as to protect such rights of the Holder as aforesaid. The adjustment shall be such
as will give the Holder, upon exercise for the same aggregate Exercise Price, the total number,
class and kind of shares as it would have owned had this Warrant been exercised prior to the event
and had it continued to hold such shares until after the event requiring adjustment.

 

 

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2.13 Cumulative Adjustments

The adjustments provided for in this Article 2 are cumulative and shall apply to successive
Stock Splits, capital reorganizations, combinations, consolidations, distributions, issues or other
events resulting in any adjustment under the provisions of this Article 2; provided that
notwithstanding any other provision of this Article 2, (i) no adjustment of the Exercise Price or
number of Warrant Shares, as then constituted, purchasable shall be required, unless such
adjustment would require an increase or decrease of at least 1% in the Exercise Price then in
effect or the number of Warrant Shares, as then constituted, purchasable, and (ii) any adjustments
which by reason of this Section 2.13 are not required to be made shall be carried forward and taken
into account in any subsequent adjustment. If the Corporation sets a record date to determine the
holders of its Common Shares for the purpose of any event which would result in an adjustment to
the number of Warrant Shares issuable upon exercise of this Warrant and shall thereafter and before
the completion of such event legally abandon its plan to do so, then no adjustment in the number of
Warrant Shares to which the Holder is entitled pursuant to exercise of this Warrant shall be
required by reason of the setting of such record date.

2.14 Notice of Adjustment

Upon any adjustment of the number or kind of securities into which this Warrant is
exercisable, the Corporation shall give written notice thereof to the Holder, which notice shall
state the number of Warrant Shares or other securities subject to this Warrant resulting from such
adjustment, and shall set forth in reasonable detail the method of calculation and the facts upon
which such calculation is based. Upon the request of the Holder, there shall be transmitted
promptly to the Holder a statement of a firm of independent chartered accountants to the effect
that such firm concurs in the Corporation’s calculation of the change.

2.15 Notice of Special Matters

The Corporation covenants that, so long as this Warrant remains outstanding, it will give
notice to the Holder of its intention to fix a record date for any event referred to in this
Article 2 which may give rise to an adjustment in the Exercise Price or the number of Warrant
Shares issuable upon exercise of this Warrant, and such notice shall specify the particulars of
such event and the record date and the effective date for such event; provided that the
Corporation shall only be required to specify in such notice such particulars of such event as
shall have been fixed and determined on the date on which such notice is given. Such notice shall
be given not less than fourteen (14) days prior to the applicable record date.

 

 

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ARTICLE 3

LIMITATION ON TRANSFER

3.1 Limitations on Transfer

This Warrant, the Warrant Shares or any interest therein or portion thereof shall be fully
transferable, in whole or in part, at any time and from time to time, subject to the terms and
conditions of the Shareholders’ Agreement.

3.2 Transfer Legend

Each certificate representing (i) this Warrant, (ii) the Warrant Shares, (iii) any other
securities issued in respect to the Warrant Shares, upon any stock split, stock dividend, capital
reorganization, merger, consolidation or similar event, shall (unless such securities have been
qualified for distribution and resale under applicable securities laws) be stamped or otherwise
imprinted with a legend substantially in the following form (in addition to any legend required
under any applicable securities laws and pursuant to the Shareholders’ Agreement):

THIS WARRANT AND THE SECURITIES TO BE ISSUED ON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933 (THE “SECURITIES ACT”). THIS WARRANT MAY NOT BE EXERCISED BY
OR ON BEHALF OF ANY U.S. PERSON UNLESS REGISTERED UNDER THE SECURITIES ACT OR AN EXEMPTION FROM
SUCH REGISTRATION IS AVAILABLE.

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THE SECURITIES SHALL NOT TRADE THE
SECURITIES BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (i) APRIL 23, 2004, AND
(ii) THE DATE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.

ARTICLE 4

WARRANTIES AND COVENANTS

4.1 General Covenants, Responsibilities and Warranties of the Corporation

	 	(a)	 	The Corporation represents and warrants that it is duly authorized to enter into
and perform its obligations under this Warrant Certificate.
	 
	 	(b)	 	The Corporation shall at all times reserve and keep available
free from pre-emptive rights, out of the aggregate of its authorized unissued Common Shares,
for the purpose of enabling it to satisfy any obligation to issue Common Shares
upon exercise of this Warrant, the full number of Warrant Shares deliverable upon
the exercise thereof.

 

 

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	 	(c)	 	The Corporation covenants that all Warrant Shares which may be issued upon
exercise of this Warrant and payment therefor will, upon issue, be fully paid and
non-assessable.
	 
	 	(d)	 	In the event that the Common Shares are listed or quoted for trading on any
stock
exchange or quotation system, the Corporation shall use its commercially
reasonable best efforts to cause all Warrant Shares issued upon exercise of this
Warrant to be listed for trading on each such exchange.
	 
	 	(e)	 	The Corporation represents and warrants that all necessary corporate actions
have
been done and performed to create this Warrant and to make this Warrant and this
Warrant Certificate a legal, valid and binding obligation of the Corporation. The
Corporation will do, execute, acknowledge and deliver or cause to be done,
executed, acknowledged and delivered, all other acts, deeds and assurances in law
as may be reasonably required for the better accomplishing and effecting of the
intentions and provisions of this Warrant Certificate.
	 
	 	(f)	 	The Corporation will give written notice of the issue of the Warrant Shares
upon
the exercise of this Warrant, in such detail as may be required, to each securities
commission or similar regulatory authority in each applicable jurisdiction in
Canada in which there is legislation or regulations requiring the giving of any
such notice.
	 
	 	(g)	 	The Corporation will direct its transfer agent to, or if the Corporation serves
as its
own transfer agent, the Corporation shall, issue share certificates representing the
number of Warrant Shares issuable upon exercise of this Warrant as evidenced by
a duly executed Election Exercise Form or Net Issuance Form, and subject to
adjustment as set forth herein within five (5) Business Days of receipt of such
form by the Corporation.
	 
	 	(h)	 	Except in the case that this Warrant is deemed to be automatically exercise as
contemplated by Section 1.3 hereof, the Corporation will not enter into any transaction
whereby all or substantially all of its undertaking, property and assets would become
the property of any other corporation (herein called a
“successor corporation”) whether
by way of reorganization, reconstruction, consolidation, amalgamation, merger,
transfer, sale, disposition or otherwise, unless prior to or contemporaneously with the
consummation of such transaction, the Corporation and the successor corporation shall
have executed such instruments and done such things as, in the opinion of counsel to
the Holder, are reasonably necessary or advisable to establish that upon the
consummation of such transaction:

	 	(i)	 	the successor corporation will have assumed all
the covenants and obligations of the Corporation under this Warrant
Certificate; and

 

 

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	 	(ii)	 	this Warrant will be a valid and binding obligation of the
successor corporation entitling the Holder, as against the successor
corporation, to all the rights of the Holder under this Warrant.

	 	(i)	 	The Corporation represents and warrants that the issuance, execution and
delivery of this Warrant does not, and the issuance of the Warrant Shares upon the
exercise of this Warrant in accordance with the terms hereof will not, (i) violate or
contravene the Corporation’s articles, by-laws, or any law, statute, regulation, rule,
judgment or order applicable to the Corporation, (ii) violate, contravene or result in
a breach or default under any contract, agreement or instrument to which the
Corporation is a party or by which the Corporation or any of it assets are bound or
(iii) require the consent or approval of or the filing of any notice or registration
with any person or entity.

4.2 Payment of Taxes and Duties

The Corporation shall pay all expenses in connection with, and all taxes including all applicable
stamp, registration, bank transaction and Other Taxes (other than income tax and capital gains tax
exigible on the income of the Holder), if any, and all other governmental charges that may be
properly imposed on the Corporation in respect of the issue or delivery of Warrant Shares issuable
upon the exercise of this Warrant, and shall indemnify and hold the Holder or its affiliates
harmless from any taxes, interest and penalties which may become payable by the Holder or its
affiliates as a result of the failure or delay by the Corporation to pay such taxes specified
above. For the purposes hereof, “Other Taxes” means any present or future stamp, documentary or
similar issue or transfer taxes or any other excise or property taxes, charges or similar levies in
respect of the issue or delivery of the Warrant Shares issuable upon exercise of this Warrant.

ARTICLE 5

RULES OF INTERPRETATION

5.1 Definitions

Whenever used in this Agreement, the following words and terms shall have the meanings set
out below:

“Additional Common Shares” has the meaning set forth in the Series B Share Terms and the rights,
privileges, restrictions and conditions attaching to the Series A Shares in the articles of the
Corporation, as in effect on the date hereof;

“Business Day” means any day, other than a Saturday or Sunday, on which chartered banks in Ottawa,
Ontario, are open for commercial banking business during normal banking hours;

“Common Shares” means the common shares in the capital of the Corporation.

 

 

- 14 -

“Common Share Offering” means the offering, issuance and sale by the Corporation of Common
Shares within nine months of the Original Issuance Date for an aggregate purchase price of not more
than $10,000,000;

“Consideration Per Share” means:

	 	(a)	 	in respect of the issuance of Common Shares, an amount equal to:

	 	(i)	 	the total consideration received by the Corporation for the
issuance of such Common Shares, divided by
	 
	 	(ii)	 	the number of such Common Shares issued;

	 	(b)	 	in respect of the issuance of Derivative Securities, an amount equal to:

	 	(i)	 	the total consideration received by the Corporation for the
issuance of such Derivative Securities plus the minimum amount of any
additional consideration payable to the Corporation upon exercise, conversion
or exchange of such Derivative Securities; divided by
	 
	 	(ii)	 	the maximum number of Common Shares that would be issued if
all such Derivative Securities were exercised, converted or exchanged in
accordance with their terms on the effective date of the relevant calculation,

provided, however, that if the amount determined in accordance with this clause (i) or (ii) above
equals zero in respect of any particular issuance of Common Shares or Derivative Securities, then
the “Consideration Per Share” in respect of such issuance shall be the amount as may be determined
by the agreement in writing of the Corporation and the Holder. In the event that the Corporation
and the Holder do not agree on such amount, the Corporation shall not issue such Common Shares or
Derivative Securities;

“Derivative Securities” means:

	 	(c)	 	all shares and other securities that are convertible into or exchangeable for
Common Shares (including the Series A Shares and Series B Shares); and
	 
	 	(d)	 	all options, warrants and other rights to acquire Common Shares or securities
directly or indirectly convertible into or exchangeable for Common Shares;

“Excluded Issuances” has the meaning set forth in Section 2.3 of this Warrant Certificate.

“Expiry Date” means April 23, 2011;

“Fair Market Value” means:

 

 

- 15 -

	 	(a)	 	in respect of assets other than securities, the fair market value thereof as
determined in good faith by the Board of Directors;
	 
	 	(b)	 	in respect of securities:

	 	(i)	 	if such securities are not subject to any statutory hold
periods or contractual restrictions on transfer:

	 	(A)	 	if traded on one or more securities exchanges or
markets, the
weighted average of the closing prices of such securities on the
exchange or market on which the securities are primarily traded
over the 30-day period ending three days prior to the relevant date;
	 
	 	(B)	 	if actively traded over-the-counter, the weighted
average of the
closing bid or sale prices (whichever are applicable) over the 30-day period ending three days prior to the relevant date; or
	 
	 	(C)	 	if there is no active public market, the fair
market value of such
securities as determined in good faith by the Board of Directors,
but no discount or premium is to be applied to their valuation on
the basis of the securities constituting a minority block or a
majority block of securities, or

	 	(ii)	 	if such securities are subject to statutory hold periods or
contractual restrictions on transfer, or both, the fair market value of such
securities as determined by applying an appropriate discount, as determined in
good faith by the Board of Directors, to the value as calculated in accordance
with clause (A) above;

“Non-Qualified IPO” means any public offering of the Common Shares, other than a Qualified
IPO (provided, that, any previous filing of a registration statement or similar instrument with the
United States Securities and Exchange Commission in fulfillment of the Corporation’s existing
obligations as a foreign private issuer shall be deemed not to constitute a public offering for the
purposes of this Warrant Certificate);

“Qualified IPO” has the meaning set out in the Shareholders’ Agreement;

“Series A Holders” means the holders of Series A Shares;

“Series A Shares” means the Class A preferred shares, Series 1 of the Corporation;

“Series B Holders” means the holders of Series B Shares;

 

 

- 16 -

“Series B Share Terms” means the rights, privileges, restrictions and conditions attached to the
Series B Shares as set out in the articles of the Corporation as same exist on the Original
Issuance Date;

“Series B Shares” means the Class B preferred shares, Series 1 of the Corporation;

“Shareholders’ Agreement” means the shareholders’ agreement dated as of the date hereof among the
Corporation, the Holder and certain other parties;

“Stock Split” means:

	 	(a)	 	the issuance of Common Shares as a dividend or other distribution on
outstanding
Common Shares;
	 
	 	(b)	 	the subdivision of outstanding Common Shares into a greater number of Common
Shares; or
	 
	 	(c)	 	the combination of outstanding Common Shares into a smaller number of
Common Shares; and

“TPC” means Her Majesty the Queen in Right of Canada, as represented by the Minister of Industry.

 5.2 Certain Rules of Interpretation

In this Agreement:

	 	(a)	 	Currency — Unless otherwise specified, all references to money amounts are to
lawful currency of the Canada.
	 
	 	(b)	 	Governing Law — This Warrant Certificate is a contract made under and shall be
governed by and construed in accordance with the laws of the Province of Ontario
and the federal laws of Canada applicable in the Province of Ontario. Subject to
Section 2.9 and with respect to determination of the Fair Market Value as
provided for herein, any action, suit or proceeding arising out of or relating to
this
Warrant Certificate shall be brought in the courts of the Province of Ontario and
each of the Parties hereby irrevocably submits to the non-exclusive jurisdiction of
such courts.
	 
	 	(c)	 	Headings — Headings of Articles and Sections are inserted for convenience of
reference only and shall not affect the construction or interpretation of this
Warrant Certificate.

 

 

- 17 -

	 	(d)	 	Number and Gender — Unless the context otherwise requires, words importing
the singular include the plural and vice versa and words importing gender include
all genders.
	 
	 	(e)	 	Time — Time is of the essence in the performance of the parties’ respective
obligations under this Warrant Certificate.
	 
	 	(f)	 	Time Periods — Unless otherwise specified, time periods within or following
which any payment is to be made or act is to be done shall be calculated by
excluding the day on which the period commences and including the day on
which the period ends and by extending the period to the next Business Day
following if the last day of the period is not a Business Day.
	 
	 	(g)	 	Business Days — If any payment is required to be made or other action is
required
to be taken pursuant to this Warrant Certificate on a day which is not a Business
Day, then such payment or action shall be made or taken on the next Business
Day.
	 
	 	(h)	 	Including — Where the word “including” or “includes” is used in this Warrant
Certificate, it means “including (or includes) without limitation”.
	 
	 	(i)	 	No Strict Construction — The language used in this Warrant Certificate is the
language chosen by the parties to express their mutual intent, and no rule of strict
construction shall be applied against any party.
	 
	 	(j)	 	Severability — If, in any jurisdiction, any provision of this Warrant Certificate or
its application to the Corporation or the Holder or circumstance is restricted,
prohibited or unenforceable, such provision shall, as to such jurisdiction, be
ineffective only to the extent of such restriction, prohibition or unenforceability
without invalidating the remaining provisions of this Warrant Certificate and
without affecting the validity or enforceability of such provision in any other
jurisdiction or without affecting its application to the other party or other
circumstances.

5.3 Language

     The parties hereby confirm their express wish that this Warrant Certificate be drawn up in the
English language. Les parties reconnaissent leur volonté expresse que le présent certificat soit
rédigé en langue anglaise.

 

 

IN WITNESS WHEREOF the Corporation has caused this Warrant Certificate to be signed by a
duly authorized officer.

DATED
this 23rd day of April, 2004.

	 	 	 	 	 
	 	 	MITEL NETWORKS CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ S. SPOONER
	 

	 	 	 	 
	 

	 	 	 	Name: S. SPOONER
	 

	 	 	 	Title: C.F.O.

[SIGNATURE PAGE TO SERIES 1 WARRANT CERTIFICATE]

 

 

SCHEDULE A

ELECTION TO EXERCISE 

TO: MITEL NETWORKS CORPORATION

The undersigned, holder of the Warrant Certificate, hereby exercises the Warrant in respect of
                     common shares of Mitel Networks Corporation (or such number of other securities or
property to which such exercise entitles it in lieu thereof or in addition thereto in accordance
with the provisions of the Warrant Certificate) on the terms specified in the Warrant Certificate.

The
undersigned encloses the aggregate Exercise Price of
$              in respect of this exercise.

The Warrant Shares (as this term is defined in the Warrant Certificate) subscribed for will be
issued to the undersigned and certificate(s) representing the Warrant Shares will be mailed to the
address set forth below.

     DATED this ___th day of                      , 20___.

	 	 	 	 	 	 	 
	 
	 	 	 	[l]	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	By:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	Name: l
	 
	 	 	 	 	 	Title: l
	 
	 	 	 	 	 	 
	Print below the address in full of the Holder.	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	[l]	 	 	 	 
	 
	 	 	 	 	 	 
	Registration Instructions:
	 	[l]	 	 	 	 

 

 

SCHEDULE B

NET ISSUANCE ELECTION FORM 

TO: MITEL NETWORKS CORPORATION

The undersigned, holder of the Warrant Certificate hereby elects to receive, without payment by
the undersigned of any additional consideration,                      Warrant Shares (as that
term is defined in the Warrant Certificate) pursuant to Section 1.4 of the attached Warrant
Certificate.

The Warrant Shares subscribed for will be issued to the undersigned and the certificate(s)
representing the Warrant Shares will be mailed to the address set forth below.

     DATED this ___th day of                      , 20___.

	 	 	 	 	 	 	 
	 

	 	 	 	[l]	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: l
	 

	 	 	 	 	 	Title: l
	 
	 	 	 	 	 	 
	Print below the address in full of the Holder.	 	 	 	 
	 
	 	 	 	 	 	 
	Address:

	 	[l]	 	 	 	 
	 
	 	 	 	 	 	 
	Registration Instructions:

	 	[l]

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