Document:

Exhibit 4.3

 

TABLE OF CONTENTS

 

BUSINESS CORPORATIONS ACT

 

ARTICLES

 

of

 

IRON MOUNTAIN CANADA OPERATIONS ULC

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
 
    	
PART 1
    	
 
    
	
 
    	
INTERPRETATION
    	
 
    
	
 
    	
 
    	
 
    
	
1.1
    	
Definitions
    	
1
    
	
1.2
    	
Business Corporations Act and Interpretation Act Definitions   Applicable
    	
1
    
	
 
    	
 
    	
 
    
	
 
    	
PART 2
    	
 
    
	
 
    	
SHARES AND SHARE CERTIFICATES
    	
 
    
	
 
    	
 
    	
 
    
	
2.1
    	
Authorized   Share Structure
    	
1
    
	
2.2
    	
Form of   Share Certificate
    	
2
    
	
2.3
    	
Shareholder   Entitled to Certificate or Acknowledgement
    	
2
    
	
2.4
    	
Delivery   by Mail
    	
2
    
	
2.5
    	
Replacement   of Worn Out or Defaced Certificate or Acknowledgement
    	
2
    
	
2.6
    	
Replacement   of Lost, Stolen or Destroyed Certificate or Acknowledgement
    	
2
    
	
2.7
    	
Splitting   Share Certificates
    	
2
    
	
2.8
    	
Certificate   Fee
    	
3
    
	
2.9
    	
Recognition   of Trusts
    	
3
    
	
 
    	
 
    	
 
    
	
 
    	
PART 3
    	
 
    
	
 
    	
ISSUE OF SHARES
    	
 
    
	
 
    	
 
    	
 
    
	
3.1
    	
Directors   Authorized
    	
3
    
	
3.2
    	
Commissions   and Discounts
    	
3
    
	
3.3
    	
Brokerage
    	
3
    
	
3.4
    	
Conditions   of Issue
    	
3
    
	
3.5
    	
Share   Purchase Warrants and Rights
    	
4
    
	
 
    	
 
    	
 
    
	
 
    	
PART 4
    	
 
    
	
 
    	
SHARE REGISTERS
    	
 
    
	
 
    	
 
    	
 
    
	
4.1
    	
Central   Securities Register
    	
4
    
	
4.2
    	
Closing   Register
    	
4
    

 

 

	
 
    	
PART 5
    	
 
    
	
 
    	
SHARE TRANSFERS
    	
 
    
	
 
    	
 
    	
 
    
	
5.1
    	
Registering   Transfers
    	
4
    
	
5.2
    	
Form of   Instrument of Transfer
    	
4
    
	
5.3
    	
Transferor   Remains Shareholder
    	
4
    
	
5.4
    	
Signing   of Instrument of Transfer
    	
5
    
	
5.5
    	
Enquiry   as to Title Not Required
    	
5
    
	
5.6
    	
Transfer   Fee
    	
5
    
	
 
    	
 
    	
 
    
	
 
    	
PART 6
    	
 
    
	
 
    	
TRANSMISSION OF SHARES
    	
 
    
	
 
    	
 
    	
 
    
	
6.1
    	
Legal   Personal Representative Recognized on Death
    	
5
    
	
6.2
    	
Rights   of Legal Personal Representative
    	
5
    
	
 
    	
 
    	
 
    
	
 
    	
PART 7
    	
 
    
	
 
    	
PURCHASE OF SHARES
    	
 
    
	
 
    	
 
    	
 
    
	
7.1
    	
Company   Authorized to Purchase Shares
    	
6
    
	
7.2
    	
Purchase   When Insolvent
    	
6
    
	
7.3
    	
Sale   and Voting of Purchased Shares
    	
6
    
	
 
    	
 
    	
 
    
	
 
    	
PART 8
    	
 
    
	
 
    	
BORROWING POWERS
    	
 
    
	
 
    	
 
    	
 
    
	
8.1
    	
Borrowing   Powers
    	
6
    
	
 
    	
 
    	
 
    
	
 
    	
PART 9
    	
 
    
	
 
    	
ALTERATIONS
    	
 
    
	
 
    	
 
    	
 
    
	
9.1
    	
Alteration   of Authorized Share Structure
    	
7
    
	
9.2
    	
Special   Rights and Restrictions
    	
7
    
	
9.3
    	
Change   of Name
    	
7
    
	
9.4
    	
Other   Alterations
    	
7
    
	
 
    	
 
    	
 
    
	
 
    	
PART 10
    	
 
    
	
 
    	
MEETINGS OF SHAREHOLDERS
    	
 
    
	
 
    	
 
    	
 
    
	
10.1
    	
Annual   General Meetings
    	
8
    
	
10.2
    	
Resolution   Instead of Annual General Meeting
    	
8
    
	
10.3
    	
Calling   of and Location of Meetings of Shareholders
    	
8
    
	
10.4
    	
Notice   for Meetings of Shareholders
    	
8
    
	
10.5
    	
Record   Date for Notice
    	
8
    
	
10.6
    	
Record   Date for Voting
    	
9
    
	
10.7
    	
Failure   to Give Notice and Waiver of Notice
    	
9
    
	
10.8
    	
Notice   of Special Business at Meetings of Shareholders
    	
9
    

 

ii

 

	
 
    	
PART 11
    	
 
    
	
 
    	
PROCEEDINGS AT MEETINGS OF SHAREHOLDERS
    	
 
    
	
 
    	
 
    	
 
    
	
11.1
    	
Special   Business
    	
9
    
	
11.2
    	
Special   Majority
    	
10
    
	
11.3
    	
Quorum
    	
10
    
	
11.4
    	
One   Shareholder May Constitute Quorum
    	
10
    
	
11.5
    	
Other   Persons May Attend
    	
10
    
	
11.6
    	
Requirement   of Quorum
    	
10
    
	
11.7
    	
Lack   of Quorum
    	
11
    
	
11.8
    	
Lack   of Quorum at Succeeding Meeting
    	
11
    
	
11.9
    	
Chair
    	
11
    
	
11.10
    	
Selection   of Alternate Chair
    	
11
    
	
11.11
    	
Adjournments
    	
11
    
	
11.12
    	
Notice   of Adjourned Meeting
    	
11
    
	
11.13
    	
Decisions   by Show of Hands or Poll
    	
11
    
	
11.14
    	
Declaration   of Result
    	
12
    
	
11.15
    	
Motion   Need Not be Seconded
    	
12
    
	
11.16
    	
Casting   Vote
    	
12
    
	
11.17
    	
Manner   of Taking Poll
    	
12
    
	
11.18
    	
Demand   for Poll on Adjournment
    	
12
    
	
11.19
    	
Chair   Must Resolve Dispute
    	
12
    
	
11.20
    	
Casting   of Votes
    	
12
    
	
11.21
    	
Demand   for Poll
    	
12
    
	
11.22
    	
Demand   for Poll Not to Prevent Continuance of Meeting
    	
13
    
	
11.23
    	
Retention   of Ballots and Proxies
    	
13
    
	
11.24
    	
Meetings   by Telephone or Other Communications Medium
    	
13
    
	
 
    	
 
    	
 
    
	
 
    	
PART 12
    	
 
    
	
 
    	
VOTES OF SHAREHOLDERS
    	
 
    
	
 
    	
 
    	
 
    
	
12.1
    	
Number   of Votes by Shareholder or by Shares
    	
13
    
	
12.2
    	
Votes   of Persons in Representative Capacity
    	
13
    
	
12.3
    	
Votes   by Joint Holders
    	
13
    
	
12.4
    	
Legal   Personal Representatives as Joint Shareholders
    	
14
    
	
12.5
    	
Representative   of a Corporate Shareholder
    	
14
    
	
12.6
    	
Proxy   Provisions Do Not Apply to All Companies
    	
14
    
	
12.7
    	
Appointment   of Proxy Holders
    	
15
    
	
12.8
    	
Alternate   Proxy Holders
    	
15
    
	
12.9
    	
When   Proxy Holder Need Not Be Shareholder
    	
15
    
	
12.10
    	
Deposit   of Proxy
    	
15
    
	
12.11
    	
Validity   of Proxy Vote
    	
15
    
	
12.12
    	
Form of   Proxy
    	
16
    
	
12.13
    	
Revocation   of Proxy
    	
16
    
	
12.14
    	
Revocation   of Proxy Must Be Signed
    	
16
    
	
12.15
    	
Production   of Evidence of Authority to Vote
    	
17
    

 

iii

 

	
 
    	
PART 13
    	
 
    
	
 
    	
DIRECTORS
    	
 
    
	
 
    	
 
    	
 
    
	
13.1
    	
First   Directors; Number of Directors
    	
17
    
	
13.2
    	
Change   in Number of Directors
    	
17
    
	
13.3
    	
Directors’   Acts Valid Despite Vacancy
    	
17
    
	
13.4
    	
Qualifications   of Directors
    	
18
    
	
13.5
    	
Remuneration   of Directors
    	
18
    
	
13.6
    	
Reimbursement   of Expenses of Directors
    	
18
    
	
13.7
    	
Special   Remuneration for Directors
    	
18
    
	
13.8
    	
Gratuity,   Pension or Allowance on Retirement of Director
    	
18
    
	
 
    	
 
    	
 
    
	
 
    	
PART 14
    	
 
    
	
 
    	
ELECTION AND REMOVAL OF DIRECTORS
    	
 
    
	
 
    	
 
    	
 
    
	
14.1
    	
Election   at Annual General Meeting
    	
18
    
	
14.2
    	
Consent   to be a Director
    	
18
    
	
14.3
    	
Failure   to Elect or Appoint Directors
    	
19
    
	
14.4
    	
Places   of Retiring Directors Not Filled
    	
19
    
	
14.5
    	
Directors   May Fill Casual Vacancies
    	
19
    
	
14.6
    	
Remaining   Directors Power to Act
    	
19
    
	
14.7
    	
Shareholders   May Fill Vacancies
    	
19
    
	
14.8
    	
Additional   Directors
    	
20
    
	
14.9
    	
Ceasing   to be a Director
    	
20
    
	
14.10
    	
Removal   of Director by Shareholders
    	
20
    
	
14.11
    	
Removal   of Director by Directors
    	
20
    
	
 
    	
 
    	
 
    
	
 
    	
PART 15
    	
 
    
	
 
    	
POWERS AND DUTIES OF DIRECTORS
    	
 
    
	
 
    	
 
    	
 
    
	
15.1
    	
Powers   of Management
    	
20
    
	
15.2
    	
Appointment   of Attorney of Company
    	
21
    
	
 
    	
 
    	
 
    
	
 
    	
PART 16
    	
 
    
	
 
    	
DISCLOSURE OF INTEREST OF DIRECTORS
    	
 
    
	
 
    	
 
    	
 
    
	
16.1
    	
Obligation   to Account for Profits
    	
21
    
	
16.2
    	
Restrictions   on Voting by Reason of Interest
    	
21
    
	
16.3
    	
Interested   Director Counted in Quorum
    	
21
    
	
16.4
    	
Disclosure   of Conflict of Interest or Property
    	
21
    
	
16.5
    	
Director   Holding Other Office in the Company
    	
21
    
	
16.6
    	
No   Disqualification
    	
22
    
	
16.7
    	
Professional   Services by Director or Officer
    	
22
    
	
16.8
    	
Director   or Officer in Other Corporations
    	
22
    
	
 
    	
 
    	
 
    
	
 
    	
PART 17
    	
 
    
	
 
    	
PROCEEDINGS OF DIRECTORS
    	
 
    
	
 
    	
 
    	
 
    
	
17.1
    	
Meetings   of Directors
    	
22
    
	
17.2
    	
Voting   at Meetings
    	
22
    

 

iv

 

	
17.3
    	
Chair   of Meetings
    	
22
    
	
17.4
    	
Meetings   by Telephone or Other Communications Medium
    	
23
    
	
17.5
    	
Calling   of Meetings
    	
23
    
	
17.6
    	
Notice   of Meetings
    	
23
    
	
17.7
    	
When   Notice Not Required
    	
23
    
	
17.8
    	
Meeting   Valid Despite Failure to Give Notice
    	
23
    
	
17.9
    	
Waiver   of Notice of Meetings
    	
23
    
	
17.10
    	
Quorum
    	
24
    
	
17.11
    	
Validity   of Acts Where Appointment Defective
    	
24
    
	
17.12
    	
Consent   Resolutions in Writing
    	
24
    
	
 
    	
 
    	
 
    
	
 
    	
PART 18
    	
 
    
	
 
    	
EXECUTIVE AND OTHER COMMITTEES
    	
 
    
	
 
    	
 
    	
 
    
	
18.1
    	
Appointment   and Powers of Executive Committee
    	
24
    
	
18.2
    	
Appointment   and Powers of Other Committees
    	
24
    
	
18.3
    	
Obligations   of Committees
    	
25
    
	
18.4
    	
Powers   of Board
    	
25
    
	
18.5
    	
Committee   Meetings
    	
25
    
	
 
    	
 
    	
 
    
	
 
    	
PART 19
    	
 
    
	
 
    	
OFFICERS
    	
 
    
	
 
    	
 
    	
 
    
	
19.1
    	
Directors   May Appoint Officers
    	
26
    
	
19.2
    	
Functions,   Duties and Powers of Officers
    	
26
    
	
19.3
    	
Qualifications
    	
26
    
	
19.4
    	
Remuneration   and Terms of Appointment
    	
26
    
	
 
    	
 
    	
 
    
	
 
    	
PART 20
    	
 
    
	
 
    	
INDEMNIFICATION
    	
 
    
	
 
    	
 
    	
 
    
	
20.1
    	
Definitions
    	
26
    
	
20.2
    	
Mandatory   Indemnification of Directors and Former Directors
    	
27
    
	
20.3
    	
Indemnification   of Other Persons
    	
27
    
	
20.4
    	
Non-Compliance   with Business Corporations Act
    	
27
    
	
20.5
    	
Company   May Purchase Insurance
    	
27
    
	
 
    	
 
    	
 
    
	
 
    	
PART 21
    	
 
    
	
 
    	
DIVIDENDS
    	
 
    
	
 
    	
 
    	
 
    
	
21.1
    	
Payment   of Dividends Subject to Special Rights
    	
27
    
	
21.2
    	
Declaration   of Dividends
    	
28
    
	
21.3
    	
No   Notice Required
    	
28
    
	
21.4
    	
Record   Date
    	
28
    
	
21.5
    	
Manner   of Paying Dividend
    	
28
    
	
21.6
    	
Settlement   of Difficulties
    	
28
    
	
21.7
    	
When   Dividend Payable
    	
28
    
	
21.8
    	
Dividends   to be Paid in Accordance with Number of Shares
    	
28
    
	
21.9
    	
Receipt   by Joint Shareholders
    	
28
    

 

v

 

	
21.10
    	
Dividend   Bears No Interest
    	
28
    
	
21.11
    	
Fractional   Dividends
    	
28
    
	
21.12
    	
Payment   of Dividends
    	
29
    
	
21.13
    	
Capitalization   of Surplus
    	
29
    
	
 
    	
 
    	
 
    
	
 
    	
PART 22
    	
 
    
	
 
    	
DOCUMENTS, RECORDS AND REPORTS
    	
 
    
	
 
    	
 
    	
 
    
	
22.1
    	
Recording   of Financial Affairs
    	
29
    
	
22.2
    	
Inspection   of Accounting Records
    	
29
    
	
 
    	
 
    	
 
    
	
 
    	
PART 23
    	
 
    
	
 
    	
NOTICES
    	
 
    
	
 
    	
 
    	
 
    
	
23.1
    	
Method   of Giving Notice
    	
29
    
	
23.2
    	
Deemed   Receipt of Mailing
    	
30
    
	
23.3
    	
Certificate   of Sending
    	
30
    
	
23.4
    	
Notice   to Joint Shareholders
    	
30
    
	
23.5
    	
Notice   to Trustees
    	
30
    
	
 
    	
 
    	
 
    
	
 
    	
PART 24
    	
 
    
	
 
    	
SEAL AND EXECUTION OF DOCUMENTS
    	
 
    
	
 
    	
 
    	
 
    
	
24.1
    	
Who   May Attest Seal
    	
31
    
	
24.2
    	
Sealing   Copies
    	
31
    
	
24.3
    	
Mechanical   Reproduction of Seal
    	
31
    
	
24.4
    	
Execution   of Documents Generally
    	
31
    
	
 
    	
 
    	
 
    
	
 
    	
PART 25
    	
 
    
	
 
    	
PROHIBITIONS
    	
 
    
	
 
    	
 
    	
 
    
	
25.1
    	
Definitions
    	
32
    
	
25.2
    	
Application
    	
32
    
	
25.3
    	
Consent   Required for Transfer of Shares or Designated Securities
    	
32
    
	
 
    	
 
    	
 
    
	
 
    	
PART 26
    	
 
    
	
 
    	
SPECIAL RIGHTS AND RESTRICTIONS
    	
 
    
	
 
    	
 
    	
 
    
	
26.1
    	
Authorized   Share Structure
    	
32
    
	
26.2
    	
Issuable   in Series
    	
33
    
	
26.3
    	
Directors’   Right to Fix Conditions
    	
33
    
	
26.4
    	
Authorization
    	
34
    
	
26.5
    	
Priority
    	
34
    
	
26.6
    	
Series Parity
    	
34
    
	
26.7
    	
Restriction   on Creation and Issuance of Shares
    	
34
    
	
26.8
    	
Shareholder   Approval
    	
35
    
	
26.9
    	
Amendments
    	
35
    

 

vi

 

Certificate of Continuation No. C0          

 

BUSINESS CORPORATIONS ACT

 

ARTICLES

 

of

 

IRON MOUNTAIN CANADA OPERATIONS ULC

 

PART 1   
 INTERPRETATION

 

1.1                                                                               Definitions.  In these Articles, unless the context otherwise requires:

 

“board of directors”, “directors” and “board” mean the directors or sole director of the Company for the time being;

 

“Business Corporations Act” means the Business Corporations Act (British Columbia) from time to time in force and all amendments thereto and includes all regulations and amendments thereto made pursuant to that Act;

 

“legal personal representative” means the personal or other legal representative of the shareholder;

 

“registered address” of a shareholder means the shareholder’s address as recorded in the central securities register;

 

“seal” means the seal of the Company, if any.

 

1.2                                                                               Business Corporations Act and Interpretation Act Definitions Applicable.  The definitions in the Business Corporations Act and the definitions and rules of construction in the Interpretation Act, with the necessary changes, so far as applicable, and unless the context requires otherwise, apply to these Articles as if they were an enactment. If there is a conflict between a definition in the Business Corporations Act and a definition or rule in the Interpretation Act relating to a term used in these Articles, the definition in the Business Corporations Act will prevail in relation to the use of the term in these Articles. If there is a conflict between these Articles and the Business Corporations Act, the Business Corporations Act will prevail.

 

PART 2   
 SHARES AND SHARE CERTIFICATES

 

2.1                                                                               Authorized Share Structure.  The authorized share structure of the Company consists of shares of the class or classes and series, if any, described in the Notice of Articles of the Company.

 

 

2.2                                                                               Form of Share Certificate.  Each share certificate issued by the Company must comply with, and be signed as required by, the Business Corporations Act.

 

2.3                                                                               Shareholder Entitled to Certificate or Acknowledgement.  Each shareholder is entitled, without charge, to (a) one share certificate representing the shares of each class or series of shares registered in the shareholder’s name or (b) a non-transferable written acknowledgement of the shareholder’s right to obtain such a share certificate, provided that in respect of a share held jointly by several persons, the Company is not bound to issue more than one share certificate and delivery of a share certificate for a share to one of several joint shareholders or to one of the shareholders’ duly authorized agents will be sufficient delivery to all.

 

2.4                                                                               Delivery by Mail.  Any share certificate or non-transferable written acknowledgement of a shareholder’s right to obtain a share certificate may be sent to the shareholder by mail at the shareholder’s registered address and neither the Company nor any director, officer or agent of the Company is liable for any loss to the shareholder because the share certificate or acknowledgement is lost in the mail or stolen.

 

2.5                                                                               Replacement of Worn Out or Defaced Certificate or Acknowledgement.  If the directors are satisfied that a share certificate or a non-transferable written acknowledgement of the shareholder’s right to obtain a share certificate is worn out or defaced, they must, on production to them of the share certificate or acknowledgement, as the case may be, and on such other terms, if any, as they think fit:

 

(a)                                 order the share certificate or acknowledgement, as the case may be, to be cancelled; and

 

(b)                                 issue a replacement share certificate or acknowledgement, as the case may be.

 

2.6                                                                               Replacement of Lost, Stolen or Destroyed Certificate or Acknowledgement.  If a share certificate or a non-transferable written acknowledgement of a shareholder’s right to obtain a share certificate is lost, stolen or destroyed, a replacement share certificate or acknowledgement, as the case may be, must be issued to the person entitled to that share certificate or acknowledgement, as the case may be, if the directors receive:

 

(a)                                 proof satisfactory to them that the share certificate or acknowledgement is lost, stolen or destroyed; and

 

(b)                                 any indemnity the directors consider adequate.

 

2.7                                                                               Splitting Share Certificates.  If a shareholder surrenders a share certificate to the Company with a written request that the Company issue in the shareholder’s name two or more share certificates, each representing a specified number of shares and in the aggregate representing the same number of shares as the share certificate so surrendered, the Company must cancel the surrendered share certificate and issue replacement share certificates in accordance with that request.

 

2

 

2.8                                                                               Certificate Fee.  There must be paid to the Company, in relation to the issue of any share certificate under Articles 2.5, 2.6 or 2.7, the amount, if any and which must not exceed the amount prescribed under the Business Corporations Act, determined by the directors.

 

2.9                                                                               Recognition of Trusts.  Except as required by law or statute or these Articles, no person will be recognized by the Company as holding any share upon any trust, and the Company is not bound by or compelled in any way to recognize (even when having notice thereof) any equitable, contingent, future or partial interest in any share or fraction of a share or (except as by law or statute or these Articles provided or as ordered by a court of competent jurisdiction) any other rights in respect of any share except an absolute right to the entirety thereof in the shareholder.

 

PART 3   
 ISSUE OF SHARES

 

3.1                                                                               Directors Authorized.  Subject to the Business Corporations Act and the rights of the holders of issued shares of the Company, the Company may issue, allot, sell or otherwise dispose of the unissued shares, and issued shares held by the Company, at the times, to the persons, including directors, in the manner, on the terms and conditions and for the issue prices (including any premium at which shares with par value may be issued) that the directors may determine. The issue price for a share with par value must be equal to or greater than the par value of the share.

 

3.2                                                                               Commissions and Discounts.  The Company may at any time, pay a reasonable commission or allow a reasonable discount to any person in consideration of that person purchasing or agreeing to purchase shares of the Company from the Company or any other person or procuring or agreeing to procure purchasers for shares of the Company.

 

3.3                                                                               Brokerage.  The Company may pay such brokerage fee or other consideration as may be lawful for or in connection with the sale or placement of its securities.

 

3.4                                                                               Conditions of Issue.  Except as provided for by the Business Corporations Act, no share may be issued until it is fully paid. A share is fully paid when:

 

(a)                                 consideration is provided to the Company for the issue of the share by one or more of the following:

 

(i)                                     past services performed for the Company;

 

(ii)                                  property;

 

(iii)                               money; and

 

(b)                                 the value of the consideration received by the Company equals or exceeds the issue price set for the share under Article 3.1.

 

3

 

3.5                                                                               Share Purchase Warrants and Rights.  Subject to the Business Corporations Act, the Company may issue share purchase warrants, options and rights upon such terms and conditions as the directors determine, which share purchase warrants, options and rights may be issued alone or in conjunction with debentures, debenture stock, bonds, shares or any other securities issued or created by the Company from time to time.

 

PART 4   
 SHARE REGISTERS

 

4.1                                                                               Central Securities Register.  As required by and subject to the Business Corporations Act, the Company must maintain a central securities register. The directors may, subject to the Business Corporations Act, appoint an agent to maintain the central securities register. The directors may also appoint one or more agents, including the agent which keeps the central securities register, as transfer agent for its shares or any class or series of its shares, as the case may be, and the same or another agent as registrar for its shares or such class or series of its shares, as the case may be. The directors may terminate such appointment of any agent at any time and may appoint another agent in its place.

 

4.2                                                                               Closing Register.  The Company must not at any time close its central securities register.

 

PART 5   
 SHARE TRANSFERS

 

5.1                                                                               Registering Transfers.  A transfer of a share of the Company must not be registered unless:

 

(a)                                 a duly signed instrument of transfer in respect of the share has been received by the Company;

 

(b)                                 if a share certificate has been issued by the Company in respect of the share to be transferred, that share certificate has been surrendered to the Company; and

 

(c)                                  if a non-transferable written acknowledgement of the shareholder’s right to obtain a share certificate has been issued by the Company in respect of the share to be transferred, that acknowledgement has been surrendered to the Company.

 

5.2                                                                               Form of Instrument of Transfer.  The instrument of transfer in respect of any share of the Company must be either in the form, if any, on the back of the Company’s share certificates or in any other form that may be approved by the directors from time to time.

 

5.3                                                                               Transferor Remains Shareholder.  Except to the extent that the Business Corporations Act otherwise provides, the transferor of shares is deemed to remain the holder of the shares until the name of the transferee is entered in a securities register of the Company in respect of the transfer.

 

4

 

5.4                                                                               Signing of Instrument of Transfer.  If a shareholder, or his or her duly authorized attorney, signs an instrument of transfer in respect of shares registered in the name of the shareholder, the signed instrument of transfer constitutes a complete and sufficient authority to the Company and its directors, officers and agents to register the number of shares specified in the instrument of transfer or specified in any other manner, or, if no number is specified, all the shares represented by the share certificates or set out in the written acknowledgements deposited with the instrument of transfer:

 

(a)                                 in the name of the person named as transferee in that instrument of transfer; or

 

(b)                                 if no person is named as transferee in that instrument of transfer, in the name of the person on whose behalf the instrument is deposited for the purpose of having the transfer registered.

 

5.5                                                                               Enquiry as to Title Not Required.  Neither the Company nor any director, officer or agent of the Company is bound to inquire into the title of the person named in the instrument of transfer as transferee or, if no person is named as transferee in the instrument of transfer, of the person on whose behalf the instrument is deposited for the purpose of having the transfer registered or is liable for any claim related to registering the transfer by the shareholder or by any intermediate owner or holder of the shares, of any interest in the shares, of any share certificate representing such shares or of any written acknowledgement of a right to obtain a share certificate for such shares.

 

5.6                                                                               Transfer Fee.  There must be paid to the Company, in relation to the registration of any transfer, the amount, if any, determined by the directors.

 

PART 6
 TRANSMISSION OF SHARES

 

6.1                                                                               Legal Personal Representative Recognized on Death.  In case of the death of a shareholder, the legal personal representative, or if the shareholder was a joint holder, the surviving joint holder, will be the only person recognized by the Company as having any title to the shareholder’s interest in the shares. Before recognizing a person as a legal personal representative, the directors may require proof of appointment by a court of competent jurisdiction, a grant of letters probate, letters of administration or such other evidence or documents as the directors consider appropriate.

 

6.2                                                                               Rights of Legal Personal Representative.  The legal personal representative has the same rights, privileges and obligations that attach to the shares held by the shareholder, including the right to transfer the shares in accordance with these Articles, provided the documents required by the Business Corporations Act and the directors have been deposited with the Company.

 

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PART 7
 PURCHASE OF SHARES

 

7.1                                                                               Company Authorized to Purchase Shares.  Subject to Article 7.2, the special rights and restrictions attached to the shares of any class or series and the Business Corporations Act, the Company may, if authorized by the directors, purchase or otherwise acquire any of its shares at the price and upon the terms specified in such resolution.

 

7.2                                                                               Purchase When Insolvent.  The Company must not make a payment or provide any other consideration to purchase or otherwise acquire any of its shares if there are reasonable grounds for believing that:

 

(a)                                 the Company is insolvent; or

 

(b)                                 making the payment or providing the consideration would render the Company insolvent.

 

7.3                                                                               Sale and Voting of Purchased Shares.  If the Company retains a share redeemed, purchased or otherwise acquired by it, the Company may sell, gift or otherwise dispose of the share, but, while such share is held by the Company, it:

 

(a)                                 is not entitled to vote the share at a meeting of its shareholders;

 

(b)                                 must not pay a dividend in respect of the share; and

 

(c)                                  must not make any other distribution in respect of the share.

 

PART 8
 BORROWING POWERS

 

8.1                                                                               Borrowing Powers.  The Company, if authorized by the directors, may:

 

(a)                                 borrow money in the manner and amount, on the security, from the sources and on the terms and conditions that they consider appropriate;

 

(b)                                 issue bonds, debentures and other debt obligations either outright or as security for any liability or obligation of the Company or any other person and at such discounts or premiums and on such other terms as they consider appropriate;

 

(c)                                  guarantee the repayment of money by any other person or the performance of any obligation of any other person; and

 

(d)                                 mortgage, charge, whether by way of specific or floating charge, grant a security interest in, or give other security on, the whole or any part of the present and future assets and undertaking of the Company.

 

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PART 9
 ALTERATIONS

 

9.1                                                                               Alteration of Authorized Share Structure.  Subject to Article 9.2 and the Business Corporations Act, the Company may by special resolution:

 

(a)                                 create one or more classes or series of shares or, if none of the shares of a class or series of shares are allotted or issued, eliminate that class or series of shares;

 

(b)                                 increase, reduce or eliminate the maximum number of shares that the Company is authorized to issue out of any class or series of shares or establish a maximum number of shares that the Company is authorized to issue out of any class or series of shares for which no maximum is established;

 

(c)                                  subdivide or consolidate all or any of its unissued, or fully paid issued, shares;

 

(d)                                 if the Company is authorized to issue shares of a class of shares with par value:

 

(i)                                     decrease the par value of those shares; or

 

(ii)                                  if none of the shares of that class of shares are allotted or issued, increase the par value of those shares;

 

(e)                                  change all or any of its unissued, or fully paid issued, shares with par value into shares without par value or any of its unissued shares without par value into shares with par value;

 

(f)                                   alter the identifying name of any of its shares; or

 

(g)                                  otherwise alter its shares or authorized share structure when required or permitted to do so by the Business Corporations Act.

 

9.2                                                                               Special Rights and Restrictions.  Subject to the Business Corporations Act, the Company may by special resolution:

 

(a)                                 create special rights or restrictions for, and attach those special rights or restrictions to, the shares of any class or series of shares, whether or not any or all of those shares have been issued; or

 

(b)                                 vary or delete any special rights or restrictions attached to the shares of any class or series of shares, whether or not any or all of those shares have been issued.

 

9.3                                                                               Change of Name.  The Company may by special resolution authorize an alteration of its Notice of Articles in order to change its name.

 

9.4                                                                               Other Alterations.  If the Business Corporations Act does not specify the type of resolution and these Articles do not specify another type of resolution, the Company may by special resolution alter these Articles.

 

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PART 10
 MEETINGS OF SHAREHOLDERS

 

10.1                                                                        Annual General Meetings.  Unless an annual general meeting is deferred or waived in accordance with the Business Corporations Act, the Company must hold its first annual general meeting within 18 months after the date on which it was incorporated or otherwise recognized, and after that must hold an annual general meeting at least once in each calendar year and not more than 15 months after the last annual reference date at such time and place as may be determined by the directors.

 

10.2                                                                        Resolution Instead of Annual General Meeting.  If all the shareholders who are entitled to vote at an annual general meeting consent by a unanimous resolution under the Business Corporations Act to all of the business that is required to be transacted at that annual general meeting, the annual general meeting is deemed to have been held on the date of the unanimous resolution. The shareholders must, in any unanimous resolution passed under this Article 10.2, select as the Company’s annual reference date a date that would be appropriate for the holding of the applicable annual general meeting.

 

10.3                                                                        Calling of AND Location of Meetings of Shareholders.  The directors may, whenever they think fit, call a meeting of shareholders, which meetings may be held outside the Province of British Columbia, anywhere in Canada or the United States of America as the board of directors may determine.

 

10.4                                                                        Notice for Meetings of Shareholders.  The Company must send notice of the date, time and location of any meeting of shareholders, in the manner provided in these Articles, or in such other manner, if any, as may be prescribed by ordinary resolution (whether previous notice of the resolution has been given or not), to each shareholder entitled to attend the meeting, to each director and to the auditor of the Company, unless these Articles otherwise provide, at least the following number of days before the meeting:

 

(a)                                 if and for so long as the Company is a public company, 21 days;

 

(b)                                 otherwise, 10 days.

 

10.5                                                                        Record Date for Notice.  The directors may set a date as the record date for the purpose of determining shareholders entitled to notice of any meeting of shareholders. The record date must not precede the date on which the meeting is to be held by more than two months or, in the case of a general meeting requisitioned by shareholders under the Business Corporations Act, by more than four months. The record date must not precede the date on which the meeting is held by fewer than:

 

(a)                                 if and for so long as the Company is a public company, 21 days;

 

(b)                                 otherwise, 10 days.

 

If no record date is set, the record date is 5 p.m. on the day immediately preceding the first date on which the notice is sent or, if no notice is sent, the beginning of the meeting.

 

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10.6                                                                        Record Date for Voting.  The directors may set a date as the record date for the purpose of determining shareholders entitled to vote at any meeting of shareholders. The record date must not precede the date on which the meeting is to be held by more than two months or, in the case of a general meeting requisitioned by shareholders under the Business Corporations Act, by more than four months. If no record date is set, the record date is 5 p.m. on the day immediately preceding the first date on which the notice is sent or, if no notice is sent, the beginning of the meeting.

 

10.7                                                                        Failure to Give Notice and Waiver of Notice.  The accidental omission to send notice of any meeting to, or the non-receipt of any notice by, any of the persons entitled to notice does not invalidate any proceedings at that meeting. Any person entitled to notice of a meeting of shareholders may, in writing or otherwise, waive or reduce the period of notice of such meeting.

 

10.8                                                                        Notice of Special Business at Meetings of Shareholders.  If a meeting of shareholders is to consider special business within the meaning of Article 11.1, the notice of meeting must:

 

(a)                                 state the general nature of the special business; and

 

(b)                                 if the special business includes considering, approving, ratifying, adopting or authorizing any document or the signing of or giving of effect to any document, have attached to it a copy of the document or state that a copy of the document will be available for inspection by shareholders:

 

(i)                                     at the Company’s records office, or at such other reasonably accessible location in British Columbia,  outside British Columbia anywhere in Canada or the United states of America,  as is specified in the notice; and

 

(ii)                                  during statutory business hours on any one or more specified days before the day set for the holding of the meeting.

 

PART 11
 PROCEEDINGS AT MEETINGS OF SHAREHOLDERS

 

11.1                                                                        Special Business.  At a meeting of shareholders, the following business is special business:

 

(a)                                 at a meeting of shareholders that is not an annual general meeting, all business is special business except business relating to the conduct of or voting at the meeting;

 

(b)                                 at an annual general meeting, all business is special business except for the following:

 

(i)                                     business relating to the conduct of or voting at the meeting;

 

(ii)                                  consideration of any financial statements of the Company presented to the meeting;

 

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(iii)                               consideration of any reports of the directors or auditor;

 

(iv)                              the setting or changing of the number of directors;

 

(v)                                 the election or appointment of directors;

 

(vi)                              the appointment of an auditor;

 

(vii)                           the setting of the remuneration of an auditor;

 

(viii)                        business arising out of a report of the directors not requiring the passing of a special resolution or an exceptional resolution;

 

(ix)                              any other business which, under these Articles or the Business Corporations Act, may be transacted at a meeting of shareholders without prior notice of the business being given to the shareholders.

 

11.2                                                                        Special Majority.  The majority of votes required for the Company to pass a special resolution at a meeting of shareholders is two-thirds of the votes cast on the resolution.

 

11.3                                                                        Quorum.  Subject to the special rights and restrictions attached to the shares of any class or series of shares, the quorum for the transaction of business at a meeting of shareholders is two persons who are, or who represent by proxy, shareholders who, in the aggregate, hold at least 5% of the issued shares entitled to be voted at the meeting.

 

11.4                                                                        One Shareholder May Constitute Quorum.  If there is only one shareholder entitled to vote at a meeting of shareholders:

 

(a)                                 the quorum is one person who is, or who represents by proxy, that shareholder, and

 

(b)                                 that shareholder, present in person or by proxy, may constitute the meeting.

 

11.5                                                                        Other Persons May Attend.  The directors, the president (if any), the secretary (if any), the assistant secretary (if any), any lawyer for the Company, the auditor of the Company and any other persons invited by the directors are entitled to attend any meeting of shareholders, but if any of those persons does attend a meeting of shareholders, that person is not to be counted in the quorum and is not entitled to vote at the meeting unless that person is a shareholder or proxy holder entitled to vote at the meeting.

 

11.6                                                                        Requirement of Quorum.  No business, other than the election of a chair of the meeting and the adjournment of the meeting, may be transacted at any meeting of shareholders unless a quorum of shareholders entitled to vote is present at the commencement of the meeting, but such quorum need not be present throughout the meeting.

 

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11.7                                                                        Lack of Quorum.  If, within one-half hour from the time set for the holding of a meeting of shareholders, a quorum is not present:

 

(a)                                 in the case of a general meeting requisitioned by shareholders, the meeting is dissolved, and

 

(b)                                 in the case of any other meeting of shareholders, the meeting stands adjourned to the same day in the next week at the same time and place.

 

11.8                                                                        Lack of Quorum at Succeeding Meeting.  If, at the meeting to which the meeting referred to in Article 11.7(b) was adjourned, a quorum is not present within one-half hour from the time set for the holding of the meeting, the person or persons present and being, or representing by proxy, one or more shareholders entitled to attend and vote at the meeting constitute a quorum.

 

11.9                                                                        Chair.  The following individual is entitled to preside as chair at a meeting of shareholders:

 

(a)                                 the chair of the board, if any; or

 

(b)                                 if the chair of the board is absent or unwilling to act as chair of the meeting, the president, if any.

 

11.10                                                                 Selection of Alternate Chair.  If, at any meeting of shareholders, there is no chair of the board or president present within 15 minutes after the time set for holding the meeting, or if the chair of the board and the president are unwilling to act as chair of the meeting, or if the chair of the board and the president have advised the secretary, if any, or any director present at the meeting, that they will not be present at the meeting, the directors present must choose one of their number to be chair of the meeting or if all of the directors present decline to take the chair or fail to so choose or if no director is present, the shareholders entitled to vote at the meeting who are present in person or by proxy may choose any person present at the meeting to chair the meeting.

 

11.11                                                                 Adjournments.  The chair of a meeting of shareholders may, and if so directed by the meeting must, adjourn the meeting from time to time and from place to place, but no business may be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place.

 

11.12                                                                 Notice of Adjourned Meeting.  It is not necessary to give any notice of an adjourned meeting or of the business to be transacted at an adjourned meeting of shareholders except that, when a meeting is adjourned for 30 days or more, notice of the adjourned meeting must be given as in the case of the original meeting.

 

11.13                                                                 Decision by Show of Hands or Poll.  Subject to the Business Corporations Act, every motion put to a vote at a meeting of shareholders will be decided on a show of hands unless a poll, before or on the declaration of the result of the vote by show of hands, is directed by the chair or demanded by at least one shareholder entitled to vote who is present in person or by proxy.

 

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11.14                                                                 Declaration of Result.  The chair of a meeting of shareholders must declare to the meeting the decision on every question in accordance with the result of the show of hands or the poll, as the case may be, and that decision must be entered in the minutes of the meeting. A declaration of the chair that a resolution is carried by the necessary majority or is defeated is, unless a poll is directed by the chair or demanded under Article 11.13, conclusive evidence without proof of the number or proportion of the votes recorded in favour of or against the resolution.

 

11.15                                                                 Motion Need Not be Seconded.  No motion proposed at a meeting of shareholders need be seconded unless the chair of the meeting rules otherwise, and the chair of any meeting of shareholders is entitled to propose or second a motion.

 

11.16                                                                 Casting Vote.  In case of an equality of votes, the chair of a meeting of shareholders does not, either on a show of hands or on a poll, have a second or casting vote in addition to the vote or votes to which the chair may be entitled as a shareholder.

 

11.17                                                                 Manner of Taking Poll.  Subject to Article 11.18, if a poll is duly demanded at a meeting of shareholders:

 

(a)                                 the poll must be taken:

 

(i)                                     at the meeting, or within seven days after the date of the meeting, as the chair of the meeting directs; and

 

(ii)                                  in the manner, at the time and at the place that the chair of the meeting directs;

 

(b)                                 the result of the poll is deemed to be the decision of the meeting at which the poll is demanded; and

 

(c)                                  the demand for the poll may be withdrawn by the person who demanded it

 

11.18                                                                 Demand for Poll on Adjournment.  A poll demanded at a meeting of shareholders on a question of adjournment must be taken immediately at the meeting.

 

11.19                                                                 Chair Must Resolve Dispute.  In the case of any dispute as to the admission or rejection of a vote given on a poll, the chair of the meeting must determine the dispute, and his or her determination made in good faith is final and conclusive.

 

11.20                                                                 Casting of Votes.  On a poll, a shareholder entitled to more than one vote need not cast all the votes in the same way.

 

11.21                                                                 Demand for Poll.  No poll may be demanded in respect of the vote by which a chair of a meeting of shareholders is elected.

 

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11.22                                                                 Demand for Poll Not to Prevent Continuance of Meeting.  The demand for a poll at a meeting of shareholders does not, unless the chair of the meeting so rules, prevent the continuation of a meeting for the transaction of any business other than the question on which a poll has been demanded.

 

11.23                                                                 Retention of Ballots and Proxies.  The Company must, for at least three months after a meeting of shareholders, keep each ballot cast on a poll and each proxy voted at the meeting, and, during that period, make them available for inspection during normal business hours by any shareholder or proxy holder entitled to vote at the meeting. At the end of such three month period, the Company may destroy such ballots and proxies.

 

11.24                                                                 Meeting by Telephone or Other Communications Medium.  A shareholder or proxy holder may participate in a meeting of the shareholders in person or by telephone if all shareholders or proxy holders participating in the meeting, whether in person or by telephone or other communications medium, are able to communicate with each other. A shareholder or proxy holder may participate in a meeting of the shareholders by a communications medium other than telephone if all shareholders or proxy holders participating in the meeting, whether in person or by telephone or other communications medium, are able to communicate with each other and if all shareholders or proxy holders who wish to participate in the meeting agree to such participation. A shareholder or proxy holder who participates in a meeting in a manner contemplated by this Article 11.24 is deemed for all purposes of the Business Corporations Act and these Articles to be present at the meeting and to have agreed to participate in that manner.

 

PART 12
 VOTES OF SHAREHOLDERS

 

12.1                                                                        Number of Votes by Shareholder or by Shares.  Subject to any special rights or restrictions attached to any shares and to the restrictions imposed on joint shareholders under Article 12.3:

 

(a)                                 on a vote by show of hands, every person present who is a shareholder or proxy holder and entitled to vote on the matter has one vote; and

 

(b)                                 on a poll, every shareholder entitled to vote on the matter has one vote in respect of each share entitled to be voted on the matter and held by that shareholder and may exercise that vote either in person or by proxy.

 

12.2                                                                        Votes of Persons in Representative Capacity.  A person who is not a shareholder may vote at a meeting of shareholders, whether on a show of hands or on a poll, and may appoint a proxy holder to act at the meeting, if, before doing so, the person satisfies the chair of the meeting, or the directors, that the person is a legal personal representative or a trustee in bankruptcy for a shareholder who is entitled to vote at the meeting.

 

12.3                                                                        Votes by Joint Holders.  If there are joint shareholders registered in respect of any share:

 

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(a)                                 any one of the joint shareholders may vote at any meeting, either personally or by proxy, in respect of the share as if that joint shareholder were solely entitled to it; or

 

(b)                                 if more than one of the joint shareholders is present at any meeting, personally or by proxy, and more than one of them votes in respect of that share, then only the vote of the joint shareholder present whose name stands first on the central securities register in respect of the share will be counted.

 

12.4                                                                        Legal Personal Representatives as Joint Shareholders.  Two or more legal personal representatives of a shareholder in whose sole name any share is registered are, for the purposes of Article 12.3, deemed to be joint shareholders.

 

12.5                                                                        Representative of a Corporate Shareholder.  If a corporation, that is not a subsidiary of the Company, is a shareholder, that corporation may appoint a person to act as its representative at any meeting of shareholders of the Company, and:

 

(a)                                 for that purpose, the instrument appointing a representative must:

 

(i)                                     be received at the registered office of the Company or at any other place specified, in the notice calling the meeting, for the receipt of proxies, at least the number of business days specified in the notice for the receipt of proxies, or if no number of days is specified, two business days before the day set for the holding of the meeting; or

 

(ii)                                  be provided, at the meeting, to the chair of the meeting or to a person designated by the chair of the meeting;

 

(b)                                 if a representative is appointed under this Article 12.5:

 

(i)                                     the representative is entitled to exercise in respect of and at that meeting the same rights on behalf of the corporation that the representative represents as that corporation could exercise if it were a shareholder who is an individual, including, without limitation, the right to appoint a proxy holder; and

 

(ii)                                  the representative, if present at the meeting, is to be counted for the purpose of forming a quorum and is deemed to be a shareholder present in person at the meeting.

 

Evidence of the appointment of any such representative may be sent to the Company by written instrument, fax or any other method of transmitting legibly recorded messages.

 

12.6                                                                        Proxy Provisions Do Not Apply to All Companies.  Articles 12.7 to 12.15 do not apply to the Company if and for so long as it is a public company or a pre-existing reporting company which has the Statutory Reporting Company Provisions as part of its Articles or to which the Statutory Reporting Company Provisions apply.

 

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12.7                                                                        Appointment of Proxy Holders.  Every shareholder of the Company, including a corporation that is a shareholder but not a subsidiary of the Company, entitled to vote at a meeting of shareholders of the Company may, by proxy, appoint one or more (but not more than five) proxy holders to attend and act at the meeting in the manner, to the extent and with the powers conferred by the proxy.

 

12.8                                                                        Alternate Proxy Holders.  A shareholder may appoint one or more alternate proxy holders to act in the place of an absent proxy holder.

 

12.9                                                                        When Proxy Holder Need Not Be Shareholder.  A person must not be appointed as a proxy holder unless the person is a shareholder, although a person who is not a shareholder may be appointed as a proxy holder if:

 

(a)                                 the person appointing the proxy holder is a corporation or a representative of a corporation appointed under Article 12.5;

 

(b)                                 the Company has at the time of the meeting for which the proxy holder is to be appointed only one shareholder entitled to vote at the meeting; or

 

(c)                                  the shareholders present in person or by proxy at and entitled to vote at the meeting for which the proxy holder is to be appointed, by a resolution on which the proxy holder is not entitled to vote but in respect of which the proxy holder is to be counted in the quorum, permit the proxy holder to attend and vote at the meeting.

 

12.10                                                                 Deposit of Proxy.  A proxy for a meeting of shareholders must:

 

(a)                                 be received at the registered office of the Company or at any other place specified, in the notice calling the meeting, for the receipt of proxies, at least the number of business days specified in the notice, or if no number of days is specified, two business days before the day set for the holding of the meeting; or

 

(b)                                 unless the notice provides otherwise, be provided, at the meeting, to the chair of the meeting or to a person designated by the chair of the meeting.

 

A proxy may be sent to the Company by written instrument, fax or any other method of transmitting legibly recorded messages.

 

12.11                                                                 Validity of Proxy Vote.  A vote given in accordance with the terms of a proxy is valid notwithstanding the death or incapacity of the shareholder giving the proxy and despite the revocation of the proxy or the revocation of the authority under which the proxy is given, unless notice in writing of that death, incapacity or revocation is received:

 

(a)                                 at the registered office of the Company, at any time up to and including the last business day before the day set for the holding of the meeting at which the proxy is to be used; or

 

(b)                                 by the chair of the meeting, before the vote is taken.

 

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12.12                                                                 Form of Proxy.  A proxy, whether for a specified meeting or otherwise, must be either in the following form or in any other form approved by the directors or the chair of the meeting:

 

[Name of Company]
 (the “Company”)

 

The undersigned, being a shareholder of the Company, hereby appoints [name] or, failing that person, [name], as proxy holder for the undersigned to attend, act and vote for and on behalf of the undersigned at the meeting of shareholders of the Company to be held on [month, day, year] and at any adjournment of that meeting.

 

Number of shares in respect of which this proxy is given (if no number is specified, then this proxy if given in respect of all shares registered in the name of the shareholder):                                .

 

Signed this              day of                     ,           .

 

	
 
    	
 
    
	
 
    	
(Signature of shareholder)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(Name of shareholder - printed)
    

 

12.13                                                                 Revocation of Proxy.  Subject to Article 12.14, every proxy may be revoked by an instrument in writing that is:

 

(a)                                 received at the registered office of the Company at any time up to and including the last business day before the day set for the holding of the meeting at which the proxy is to be used; or

 

(b)                                 provided, at the meeting, to the chair of the meeting.

 

12.14                                                                 Revocation of Proxy Must Be Signed.  An instrument referred to in Article 12.13 must be signed as follows:

 

(a)                                 if the shareholder for whom the proxy holder is appointed is an individual, the instrument must be signed by the shareholder or his or her legal personal representative or trustee in bankruptcy;

 

(b)                                 if the shareholder for whom the proxy holder is appointed is a corporation, the instrument must be signed by the corporation or by a representative appointed for the corporation under Article 12.5.

 

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12.15                                                                 Production of Evidence of Authority to Vote.  The chair of any meeting of shareholders may, but need not, inquire into the authority of any person to vote at the meeting and may, but need not, demand from that person production of evidence as to the existence of the authority to vote.

 

PART 13
 DIRECTORS

 

13.1                                                                        First Directors; Number of Directors.  The first directors are the persons designated as directors of the Company in the Notice of Articles that applies to the Company when it is recognized under the Business Corporations Act. The number of directors, excluding additional directors appointed under Article 14.8, is set at:

 

(a)                                 subject to paragraphs  (b) and (c), the number of directors that is equal to the number of the Company’s first directors;

 

(b)                                 if the Company is a public company, the greater of three and the most recently set of:

 

(i)                                     the number of directors set by ordinary resolution (whether or not previous notice of the resolution was given); and

 

(ii)                                  the number of directors set under Article 14.4;

 

(c)                                  if the Company is not a public company, the most recently set of:

 

(i)                                     the number of directors set by ordinary resolution (whether or not previous notice of the resolution was given); and

 

(ii)                                  the number of directors set under Article 14.4.

 

13.2                                                                        Change in Number of Directors.  If the number of directors is set under Articles 13.1(b)(i) or 13.1(c)(i):

 

(a)                                 the shareholders may elect or appoint the directors needed to fill any vacancies in the board of directors up to that number; and

 

(b)                                 if the shareholders do not elect or appoint the directors needed to fill any vacancies in the board of directors up to that number contemporaneously with the setting of that number, then the directors may appoint, or the shareholders may elect or appoint, directors to fill those vacancies.

 

13.3                                                                        Directors’ Acts Valid Despite Vacancy.  An act or proceeding of the directors is not invalid merely because fewer than the number of directors set or otherwise required under these Articles is in office.

 

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13.4                                                                        Qualifications of Directors.  A director is not required to hold a share in the capital of the Company as qualification for his or her office but must be qualified as required by the Business Corporations Act to become, act or continue to act as a director.

 

13.5                                                                        Remuneration of Directors.  The directors are entitled to the remuneration for acting as directors, if any, as the directors may from time to time determine. If the directors so decide, the remuneration of the directors, if any, will be determined by the shareholders. That remuneration may be in addition to any salary or other remuneration paid to any officer or employee of the Company as such, who is also a director.

 

13.6                                                                        Reimbursement of Expenses of Directors.  The Company must reimburse each director for the reasonable expenses that he or she may incur in and about the business of the Company.

 

13.7                                                                        Special Remuneration for Directors.  If any director performs any professional or other services for the Company that in the opinion of the directors are outside the ordinary duties of a director, or if any director is otherwise specially occupied in or about the Company’s business, he or she may be paid remuneration fixed by the directors, or, at the option of that director, fixed by ordinary resolution, and such remuneration may be either in addition to, or in substitution for, any other remuneration that he or she may be entitled to receive.

 

13.8                                                                        Gratuity, Pension or Allowance on Retirement of Director.  Unless otherwise determined by ordinary resolution, the directors on behalf of the Company may pay a gratuity or pension or allowance on retirement to any director who has held any salaried office or place of profit with the Company or to his or her spouse or dependants and may make contributions to any fund and pay premiums for the purchase or provision of any such gratuity, pension or allowance.

 

PART 14
 ELECTION AND REMOVAL OF DIRECTORS

 

14.1                                                                        Election at Annual General Meeting.  At every annual general meeting and in every unanimous resolution contemplated by Article 10.2:

 

(a)                                 the shareholders entitled to vote at the annual general meeting for the election of directors must elect, or in the unanimous resolution appoint, a board of directors consisting of the number of directors for the time being set under these Articles; and

 

(b)                                 all the directors cease to hold office immediately before the election or appointment of directors under paragraph (a), but are eligible for re-election or re-appointment.

 

14.2                                                                        Consent to be a Director.  No election, appointment or designation of an individual as a director is valid unless:

 

(a)                                 that individual consents to be a director in the manner provided for in the Business Corporations Act;

 

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(b)                                 that individual is elected or appointed at a meeting at which the individual is present and the individual does not refuse, at the meeting, to be a director; or

 

(c)                                  with respect to first directors, the designation is otherwise valid under the Business Corporations Act.

 

14.3                                                                        Failure to Elect or Appoint Directors.  If:

 

(a)                                 the Company fails to hold an annual general meeting, and all the shareholders who are entitled to vote at an annual general meeting fail to pass the unanimous resolution contemplated by Article 10.2, on or before the date by which the annual general meeting is required to be held under the Business Corporations Act; or

 

(b)                                 the shareholders fail, at the annual general meeting or in the unanimous resolution contemplated by Article 10.2, to elect or appoint any directors;

 

then each director then in office continues to hold office until the earlier of:

 

(c)                                  the date on which his or her successor is elected or appointed; and

 

(d)                                 the date on which he or she otherwise ceases to hold office under the Business Corporations Act or these Articles.

 

14.4                                                                        Places of Retiring Directors Not Filled.  If, at any meeting of shareholders at which there should be an election of directors, the places of any of the retiring directors are not filled by that election, those retiring directors who are not re-elected and who are asked by the newly elected directors to continue in office will, if willing to do so, continue in office to complete the number of directors for the time being set pursuant to these Articles until further new directors are elected at a meeting of shareholders convened for that purpose. If any such election or continuance of directors does not result in the election or continuance of the number of directors for the time being set pursuant to these Articles, the number of directors of the Company is deemed to be set at the number of directors actually elected or continued in office.

 

14.5                                                                        Directors May Fill Casual Vacancies.  Any casual vacancy occurring in the board of directors may be filled by the directors.

 

14.6                                                                        Remaining Directors Power to Act.  The directors may act notwithstanding any vacancy in the board of directors, but if the Company has fewer directors in office than the number set pursuant to these Articles as the quorum of directors, the directors may only act for the purpose of appointing directors up to that number or of summoning a meeting of shareholders for the purpose of filling any vacancies on the board of directors or, subject to the Business Corporations Act, for any other purpose.

 

14.7                                                                        Shareholders May Fill Vacancies.  If the Company has no directors or fewer directors in office than the number set pursuant to these Articles as the quorum of directors, the shareholders may elect or appoint directors to fill any vacancies on the board of directors.

 

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14.8                                                                        Additional Directors.  Notwithstanding Articles 13.1 and 13.2, between annual general meetings or unanimous resolutions contemplated by Article 10.2, the directors may appoint one or more additional directors, but the number of additional directors appointed under this Article 14.8 must not at any time exceed:

 

(a)                                 one-third of the number of first directors, if, at the time of the appointments, one or more of the first directors have not yet completed their first term of office; or

 

(b)                                 in any other case, one-third of the number of the current directors who were elected or appointed as directors other than under this Article 14.8.

 

Any director so appointed ceases to hold office immediately before the next election or appointment of directors under Article 14.1(a), but is eligible for re-election or re-appointment

 

14.9                                                                        Ceasing to be a Director.  A director ceases to be a director when:

 

(a)                                 the term of office of the director expires;

 

(b)                                 the director dies;

 

(c)                                  the director resigns as a director by notice in writing provided to the Company or a lawyer for the Company; or

 

(d)                                 the director is removed from office pursuant to Articles 14.10 or 14.11.

 

14.10                                                                 Removal of Director by Shareholders.  The Company may remove any director before the expiration of his or her term of office by special resolution. In that event, the shareholders may elect, or appoint by ordinary resolution, a director to fill the resulting vacancy. If the shareholders do not elect or appoint a director to fill the resulting vacancy contemporaneously with the removal, then the directors may appoint or the shareholders may elect, or appoint by ordinary resolution, a director to fill that vacancy.

 

14.11                                                                 Removal of Director by Directors.  The directors may remove any director before the expiration of his or her term of office if the director is convicted of an indictable offence, or if the director ceases to be qualified to act as a director of a company and does not promptly resign, and the directors may appoint a director to fill the resulting vacancy.

 

PART 15

POWERS AND DUTIES OF DIRECTORS

 

15.1                                                                        Powers of Management.  The directors must, subject to the Business Corporations Act and these Articles, manage or supervise the management of the business and affairs of the Company and have the authority to exercise all such powers of the Company as are not, by the Business Corporations Act or by these Articles, required to be exercised by the shareholders of the Company.

 

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15.2                                                                        Appointment of Attorney of Company.  The directors may from time to time, by power of attorney or other instrument, under seal if so required by law, appoint any person to be the attorney of the Company for such purposes, and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the directors under these Articles and excepting the power to fill vacancies in the board of directors, to remove a director, to change the membership of, or fill vacancies in, any committee of the directors, to appoint or remove officers appointed by the directors and to declare dividends) and for such period, and with such remuneration and subject to such conditions as the directors may think fit. Any such power of attorney may contain such provisions for the protection or convenience of persons dealing with such attorney as the directors think fit. Any such attorney may be authorized by the directors to sub-delegate all or any of the powers, authorities and discretions for the time being vested in him or her.

 

PART 16

DISCLOSURE OF INTEREST OF DIRECTORS

 

16.1                                                                        Obligation to Account for Profits.  A director or senior officer who holds a disclosable interest (as that term is used in the Business Corporations Act) in a contract or transaction into which the Company has entered or proposes to enter is liable to account to the Company for any profit that accrues to the director or senior officer under or as a result of the contract or transaction only if and to the extent provided in the Business Corporations Act.

 

16.2                                                                        Restrictions on Voting by Reason of Interest.  A director who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter is not entitled to vote on any directors’ resolution to approve that contract or transaction, unless all the directors have a disclosable interest in that contract or transaction, in which case any or all of those directors may vote on such resolution.

 

16.3                                                                        Interested Director Counted in Quorum.  A director who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter and who is present at the meeting of directors at which the contract or transaction is considered for approval may be counted in the quorum at the meeting whether or not the director votes on any or all of the resolutions considered at the meeting.

 

16.4                                                                        Disclosure of Conflict of Interest or Property.  A director or senior officer who holds any office or possesses any property, right or interest that could result, directly or indirectly, in the creation of a duty or interest that materially conflicts with that individual’s duty or interest as a director or senior officer, must disclose the nature and extent of the conflict as required by the Business Corporations Act.

 

16.5                                                                        Director Holding Other Office in the Company.  A director may hold any office or place of profit with the Company, other than the office of auditor of the Company, in addition to his or her office of director for the period and on the terms (as to remuneration or otherwise) that the directors may determine.

 

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16.6                                                                        No Disqualification.  No director or intended director is disqualified by his or her office from contracting with the Company either with regard to the holding of any office or place of profit the director holds with the Company or as vendor, purchaser or otherwise, and no contract or transaction entered into by or on behalf of the Company in which a director is in any way interested is liable to be voided for that reason.

 

16.7                                                                        Professional Services by Director or Officer.  Subject to the Business Corporations Act, a director or officer, or any person in which a director or officer has an interest, may act in a professional capacity for the Company, except as auditor of the Company, and the director or officer or such person is entitled to remuneration for professional services as if that director or officer were not a director or officer.

 

16.8                                                                        Director or Officer in Other Corporations.  A director or officer may be or become a director, officer or employee of, or otherwise interested in, any person in which the Company may be interested as a shareholder or otherwise, and, subject to the Business Corporations Act, the director or officer is not accountable to the Company for any remuneration or other benefits received by him or her as director, officer or employee of, or from his or her interest in, such other person.

 

PART 17

PROCEEDINGS OF DIRECTORS

 

17.1                                                                        Meetings of Directors.  The directors may meet together for the conduct of business, adjourn and otherwise regulate their meetings as they think fit, and meetings of the directors held at regular intervals may be held at the place, at the time and on the notice, if any, as the directors may from time to time determine.

 

17.2                                                                        Voting at Meetings.  Questions arising at any meeting of directors are to be decided by a majority of votes and, in the case of an equality of votes, the chair of the meeting does not have a second or casting vote.

 

17.3                                                                        Chair of Meetings.  The following individual is entitled to preside as chair at a meeting of directors:

 

(a)                                 the chair of the board, if any;

 

(b)                                 in the absence of the chair of the board, the president, if any, if the president is a director; or

 

(c)                                  any other director chosen by the directors if:

 

(i)                                     neither the chair of the board nor the president, if a director, is present at the meeting within 15 minutes after the time set for holding the meeting;

 

(ii)                                  neither the chair of the board nor the president, if a director, is willing to chair the meeting; or

 

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(iii)                               the chair of the board and the president, if a director, have advised the secretary, if any, or any other director, that they will not be present at the meeting.

 

17.4                                                                        Meetings by Telephone or Other Communications Medium.  A director may participate in a meeting of the directors or of any committee of the directors in person or by telephone if all directors participating in the meeting, whether in person or by telephone or other communications medium, are able to communicate with each other. A director may participate in a meeting of the directors or of any committee of the directors by a communications medium other than telephone if all directors participating in the meeting, whether in person or by telephone or other communications medium, are able to communicate with each other and if all directors who wish to participate in the meeting agree to such participation. A director who participates in a meeting in a manner contemplated by this Article 17.4 is deemed for all purposes of the Business Corporations Act and these Articles to be present at the meeting and to have agreed to participate in that manner.

 

17.5                                                                        Calling of Meetings.  A director may, and the secretary or an assistant secretary of the Company, if any, on the request of a director must, call a meeting of the directors at any time.

 

17.6                                                                        Notice of Meetings.  Other than for meetings held at regular intervals as determined by the directors pursuant to Article 17.1, reasonable notice of each meeting of the directors, specifying the place, day and time of that meeting must be given to each of the directors by any method set out in Article 23.1 or orally or by telephone.

 

17.7                                                                        When Notice Not Required.  It is not necessary to give notice of a meeting of the directors to a director if:

 

(a)                                 the meeting is to be held immediately following a meeting of shareholders at which that director was elected or appointed, or is the meeting of the directors at which that director is appointed; or

 

(b)                                 the director has waived notice of the meeting.

 

17.8                                                                        Meeting Valid Despite Failure to Give Notice.  The accidental omission to give notice of any meeting of directors to, or the non-receipt of any notice by, any director does not invalidate any proceedings at that meeting.

 

17.9                                                                        Waiver of Notice of Meetings.  Any director may send to the Company a document signed by him or her waiving notice of any past, present or future meeting or meetings of the directors and may at any time withdraw that waiver with respect to meetings held after that withdrawal. After sending a waiver with respect to all future meetings and until that waiver is withdrawn, no notice of any meeting of the directors need be given to such director and all meetings of the directors so held are deemed not to be improperly called or constituted by reason of notice not having been given to such director.

 

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17.10                                                                 Quorum.  The quorum necessary for the transaction of the business of the directors may be set by the directors and, if not so set, is deemed to be set at two directors or, if the number of directors is set at one, is deemed to be set at one director, and that director may constitute a meeting.

 

17.11                                                                 Validity of Acts Where Appointment Defective.  Subject to the Business Corporations Act, an act of a director or officer is not invalid merely because of an irregularity in the election or appointment or a defect in the qualification of that director or officer.

 

17.12                                                                 Consent Resolutions in Writing.  A resolution of the directors or of any committee of the directors consented to in writing by all of the directors entitled to vote on it, whether by signed document, fax, email or any other method of transmitting legibly recorded messages, is as valid and effective as if it had been passed at a meeting of the directors or of the committee of the directors duly called and held. Such resolution may be in two or more counterparts which together are deemed to constitute one resolution in writing. A resolution passed in that manner is effective on the date stated in the resolution or on the latest date stated on any counterpart. A resolution of the directors or of any committee of the directors passed in accordance with this Article 17.12 is deemed to be a proceeding at a meeting of directors or of the committee of the directors and to be as valid and effective as if it had been passed at a meeting of the directors or of the committee of the directors that satisfies all the requirements of the Business Corporations Act and all the requirements of these Articles relating to meetings of the directors or of a committee of the directors.

 

PART 18

EXECUTIVE AND OTHER COMMITTEES

 

18.1                                                                        Appointment and Powers of Executive Committee.  The directors may, by resolution, appoint an executive committee consisting of the director or directors that they consider appropriate, and this committee has, during the intervals between meetings of the board of directors, all of the directors’ powers, except:

 

(a)                                 the power to fill vacancies in the board of directors;

 

(b)                                 the power to remove a director;

 

(c)                                  the power to change the membership of, or fill vacancies in, any committee of the directors; and

 

(d)                                 such other powers, if any, as may be set out in the resolution or any subsequent directors’ resolution.

 

18.2                                                                        Appointment and Powers of Other Committees.  The directors may, by resolution:

 

(a)                                 appoint one or more committees (other than the executive committee) consisting of the director or directors that they consider appropriate;

 

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(b)                                 delegate to a committee appointed under paragraph (a) any of the directors’ powers, except:

 

(i)                                     the power to fill vacancies in the board of directors;

 

(ii)                                  the power to remove a director;

 

(iii)                               the power to change the membership of, or fill vacancies in, any committee of the directors; and

 

(iv)                              the power to appoint or remove officers appointed by the directors; and

 

(c)                                  make any delegation referred to in paragraph (b) subject to the conditions set out in the resolution or any subsequent directors’ resolution.

 

18.3                                                                        Obligations of Committees.  Any committee appointed under Articles 18.1 or 18.2, in the exercise of the powers delegated to it, must:

 

(a)                                 conform to any rules that may from time to time be imposed on it by the directors; and

 

(b)                                 report every act or thing done in exercise of those powers at such times as the directors may require.

 

18.4                                                                        Powers of Board.  The directors may, at any time, with respect to a committee appointed under Articles 18.1 or 18.2:

 

(a)                                 revoke or alter the authority given to the committee, or override a decision made by the committee, except as to acts done before such revocation, alteration or overriding;

 

(b)                                 terminate the appointment of, or change the membership of, the committee; and

 

(c)                                  fill vacancies in the committee.

 

18.5                                                                        Committee Meetings.  Subject to Article 18.3(a) and unless the directors otherwise provide in the resolution appointing the committee or in any subsequent resolution, with respect to a committee appointed under Articles 18.1 or 18.2:

 

(a)                                 the committee may meet and adjourn as it thinks proper;

 

(b)                                 the committee may elect a chair of its meetings but, if no chair of a meeting is elected, or if at a meeting the chair of the meeting is not present within 15 minutes after the time set for holding the meeting, the directors present who are members of the committee may choose one of their number to chair the meeting;

 

(c)                                  a majority of the members of the committee constitutes a quorum of the committee; and

 

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(d)                                 questions arising at any meeting of the committee are determined by a majority of votes of the members present, and in case of an equality of votes, the chair of the meeting does not have a second or casting vote.

 

PART 19

OFFICERS

 

19.1                                                                        Directors May Appoint Officers.  The directors may, from time to time, appoint such officers, if any, as the directors determine and the directors may, at any time, terminate any such appointment.

 

19.2                                                                        Functions, Duties and Powers of Officers.  The directors may, for each officer:

 

(a)                                 determine the functions and duties of the officer;

 

(b)                                 entrust to and confer on the officer any of the powers exercisable by the directors on such terms and conditions and with such restrictions as the directors think fit; and

 

(c)                                  revoke, withdraw, alter or vary all or any of the functions, duties and powers of the officer.

 

19.3                                                                        Qualifications.  No officer may be appointed unless that officer is qualified in accordance with the Business Corporations Act. One person may hold more than one position as an officer of the Company. Any person appointed as the chair of the board or as the managing director must be a director. Any other officer need not be a director.

 

19.4                                                                        Remuneration and Terms of Appointment.  All appointments of officers are to be made on the terms and conditions and at the remuneration (whether by way of salary, fee, commission, participation in profits or otherwise) that the directors thinks fit and are subject to termination at the pleasure of the directors, and an officer may in addition to such remuneration be entitled to receive, after he or she ceases to hold such office or leaves the employment of the Company, a pension or gratuity.

 

PART 20

INDEMNIFICATION

 

20.1                                                                        Definitions.  In this Article 20:

 

(a)                                 “eligible penalty” means a judgment, penalty or fine awarded or imposed in, or an amount paid in settlement of, an eligible proceeding;

 

(b)                                 “eligible proceeding” means a legal proceeding or investigative action, whether current, threatened, pending or completed, in which a director or former director  of the Company (an “eligible party”) or any of the heirs and legal personal representatives of the eligible party, by reason of the eligible party being or having been a director of the Company:

 

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(i)                                     is or may be joined as a party; or

 

(ii)                                  is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related to, the proceeding;

 

(c)                                  “expenses” has the meaning set out in the Business Corporations Act.

 

20.2                                                                        Mandatory Indemnification of Directors and Former Directors.  Subject to the Business Corporations Act, the Company must indemnify a director or former director of the Company and his or her heirs and legal personal representatives against all eligible penalties to which such person is or may be liable, and the Company must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by such person in respect of that proceeding. Each director is deemed to have contracted with the Company on the terms of the indemnity contained in this Article 20.2.

 

20.3                                                                        Indemnification of Other Persons.  Subject to any restrictions in the Business Corporations Act, the Company may indemnify any person.

 

20.4                                                                        Non-Compliance with Business Corporations Act.  The failure of a director or officer of the Company to comply with the Business Corporations Act or these Articles does not invalidate any indemnity to which he or she is entitled under this Part.

 

20.5                                                                        Company May Purchase Insurance.  The Company may purchase and maintain insurance for the benefit of any person (or his or her heirs or legal personal representatives) who:

 

(a)                                 is or was a director, officer, employee or agent of the Company;

 

(b)                                 is or was a director, officer, employee or agent of a corporation at a time when the corporation is or was an affiliate of the Company;

 

(c)                                  at the request of the Company, is or was a director, officer, employee or agent of a corporation or of a partnership, trust, joint venture or other unincorporated entity;

 

(d)                                 at the request of the Company, holds or held a position equivalent to that of a director or officer of a partnership, trust, joint venture or other unincorporated entity;

 

against any liability incurred by him or her as such director, officer, employee or agent or person who holds or held such equivalent position.

 

PART 21

DIVIDENDS

 

21.1                                                                        Payment of Dividends Subject to Special Rights.  The provisions of this Article 21 are subject to the rights, if any, of shareholders holding shares with special rights as to dividends.

 

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21.2                                                                        Declaration of Dividends.  Subject to the Business Corporations Act and the rights of the holders of issued shares of the Company, the directors may from time to time declare and authorize payment of such dividends as they may deem advisable.

 

21.3                                                                        No Notice Required.  The directors need not give notice to any shareholder of any declaration under Article 21.2.

 

21.4                                                                        Record Date.  The directors may set a date as the record date for the purpose of determining shareholders entitled to receive payment of a dividend. The record date must not precede the date on which the dividend is to be paid by more than two months. If no record date is set, the record date is 5 p.m. on the date on which the directors pass the resolution declaring the dividend.

 

21.5                                                                        Manner of Paying Dividend.  A resolution declaring a dividend may direct payment of the dividend wholly or partly by the distribution of specific assets or of fully paid shares or of bonds, debentures or other securities of the Company, or in any one or more of those ways.

 

21.6                                                                        Settlement of Difficulties.  If any difficulty arises in regard to a distribution under Article 21.5, the directors may settle the difficulty as they deem advisable, and, in particular, may:

 

(a)                                 set the value for distribution of specific assets;

 

(b)                                 determine that cash payments in substitution for all or any part of the specific assets to which any shareholders are entitled may be made to any shareholders on the basis of the value so fixed in order to adjust the rights of all parties; and

 

(c)                                  vest any such specific assets in trustees for the persons entitled to the dividend.

 

21.7                                                                        When Dividend Payable.  Any dividend may be made payable on such date as is fixed by the directors.

 

21.8                                                                        Dividends to be Paid in Accordance with Number of Shares.  All dividends on shares of any class or series of shares must be declared and paid according to the number of such shares held.

 

21.9                                                                        Receipt by Joint Shareholders.  If several persons are joint shareholders of any share, any one of them may give an effective receipt for any dividend, bonus or other money payable in respect of the share.

 

21.10                                                                 Dividend Bears No Interest.  No dividend bears interest against the Company.

 

21.11                                                                 Fractional Dividends.  If a dividend to which a shareholder is entitled includes a fraction of the smallest monetary unit of the currency of the dividend, that fraction may be disregarded in making payment of the dividend and that payment represents full payment of the dividend.

 

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21.12                                                                 Payment of Dividends.  Any dividend or other distribution payable in cash in respect of shares may be paid by cheque, made payable to the order of the person to whom it is sent, and mailed to the address of the shareholder, or in the case of joint shareholders, to the address of the joint shareholder who is first named on the central securities register, or to the person and to the address the shareholder or joint shareholders may direct in writing. The mailing of such cheque will, to the extent of the sum represented by the cheque (plus the amount of the tax required by law to be deducted), discharge all liability for the dividend unless such cheque is not paid on presentation or the amount of tax so deducted is not paid to the appropriate taxing authority.

 

21.13                                                                 Capitalization of Surplus.  Notwithstanding anything contained in these Articles, the directors may from time to time capitalize any surplus of the Company and may from time to time issue, as fully paid, shares or any bonds, debentures or other securities of the Company as a dividend representing the surplus or any part of the surplus.

 

PART 22

DOCUMENTS, RECORDS AND REPORTS

 

22.1                                                                        Recording of Financial Affairs.  The directors must cause adequate accounting records to be kept to record properly the financial affairs and condition of the Company and to comply with the Business Corporations Act.

 

22.2                                                                        Inspection of Accounting Records.  Unless the directors determine otherwise, or unless otherwise determined by ordinary resolution, no shareholder of the Company is entitled to inspect or obtain a copy of any accounting records of the Company.

 

PART 23

NOTICES

 

23.1                                                                        Method of Giving Notice.  Unless the Business Corporations Act or these Articles provides otherwise, a notice, statement, report or other record required or permitted by the Business Corporations Act or these Articles to be sent by or to a person may be sent by any one of the following methods:

 

(a)                                 mail addressed to the person at the applicable address for that person as follows:

 

(i)                                     for a record mailed to a shareholder, the shareholder’s registered address;

 

(ii)                                  for a record mailed to a director or officer, the prescribed address for mailing shown for the director or officer in the records kept by the Company or the mailing address provided by the recipient for the sending of that record or records of that class;

 

(iii)                               in any other case, the mailing address of the intended recipient;

 

(b)                                 delivery at the applicable address for that person as follows, addressed to the person:

 

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(i)                                     for a record delivered to a shareholder, the shareholder’s registered address;

 

(ii)                                  for a record delivered to a director or officer, the prescribed address for delivery shown for the director or officer in the records kept by the Company or the delivery address provided by the recipient for the sending of that record or records of that class;

 

(iii)                               in any other case, the delivery address of the intended recipient;

 

(c)                                  sending the record by fax to the fax number provided by the intended recipient for the sending of that record or records of that class;

 

(d)                                 sending the record by email to the email address provided by the intended recipient for the sending of that record or records of that class;

 

(e)                                  physical delivery to the intended recipient.

 

23.2                                                                        Deemed Receipt of Mailing.  A record that is mailed to a person by ordinary mail to the applicable address for that person referred to in Article 23.1 is deemed to be received by the person to whom it was mailed on the day, Saturdays, Sundays and holidays excepted, following the date of mailing.

 

23.3                                                                        Certificate of Sending.  A certificate signed by the secretary, if any, or other officer of the Company or of any other corporation acting in that behalf for the Company stating that a notice, statement, report or other record was addressed as required by Article 23.1, prepaid and mailed or otherwise sent as permitted by Article 23.1 is conclusive evidence of that fact.

 

23.4                                                                        Notice to Joint Shareholders.  A notice, statement, report or other record may be provided by the Company to the joint shareholders of a share by providing the notice to the joint shareholder first named in the central securities register in respect of the share.

 

23.5                                                                        Notice to Trustees.  A notice, statement, report or other record may be provided by the Company to the persons entitled to a share in consequence of the death, bankruptcy or incapacity of a shareholder by:

 

(a)                                 mailing the record, addressed to them:

 

(i)                                     by name, by the title of the legal personal representative of the deceased or incapacitated shareholder, by the title of trustee of the bankrupt shareholder or by any similar description; and

 

(ii)                                  at the address, if any, supplied to the Company for that purpose by the persons claiming to be so entitled; or

 

(b)                                 if an address referred to in paragraph (a)(ii) has not been supplied to the Company, by giving the notice in a manner in which it might have been given if the death, bankruptcy or incapacity had not occurred.

 

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PART 24

SEAL AND EXECUTION OF DOCUMENTS

 

24.1                                                                        Who May Attest Seal.  Except as provided in Articles 24.2 and 24.3, the Company’s seal, if any, must not be impressed on any record except when that impression is attested by the signatures of:

 

(a)                                 any two directors;

 

(b)                                 any officer, together with any director;

 

(c)                                  if the Company only has one director, that director; or

 

(d)                                 any one or more directors or officers or persons as may be determined by the directors.

 

24.2                                                                        Sealing Copies.  For the purpose of certifying under seal a certificate of incumbency of the directors or officers of the Company or a true copy of any resolution or other document, despite Article 24.1, the impression of the seal may be attested by the signature of any director or officer.

 

24.3                                                                        Mechanical Reproduction of Seal.  The directors may authorize the seal to be impressed by third parties on share certificates or bonds, debentures or other securities of the Company as they may determine appropriate from time to time. To enable the seal to be impressed on any share certificates or bonds, debentures or other securities of the Company, whether in definitive or interim form, on which facsimiles of any of the signatures of the directors or officers of the Company are, in accordance with the Business Corporations Act or these Articles, printed or otherwise mechanically reproduced, there may be delivered to the person employed to engrave, lithograph or print such definitive or interim share certificates or bonds, debentures or other securities one or more unmounted dies reproducing the seal and the chair of the board or any senior officer together with the secretary, treasurer, secretary-treasurer, an assistant secretary, an assistant treasurer or an assistant secretary-treasurer may in writing authorize such person to cause the seal to be impressed on such definitive or interim share certificates or bonds, debentures or other securities by the use of such dies. Share certificates or bonds, debentures or other securities to which the seal has been so impressed are for all purposes deemed to be under and to bear the seal impressed on them.

 

24.4                                                                        Execution of Documents Generally.  The Directors may from time to time by resolution appoint any one or more persons, officers or Directors for the purpose of executing any instrument, document or agreement in the name of and on behalf of the Company for which the seal need not be affixed, and if no such person, officer or Director is appointed, then any one officer or Director of the Company may execute such instrument,  document or agreement.

 

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PART 25

PROHIBITIONS

 

25.1                                                                        Definitions.  In this Article 25:

 

(a)                                 “designated security” means:

 

(i)                                     a voting security of the Company;

 

(ii)                                  a security of the Company that is not a debt security and that carries a residual right to participate in the earnings of the Company or, on the liquidation or winding up of the Company, in its assets; or

 

(iii)                               a security of the Company convertible, directly or indirectly, into a security described in paragraph (i) or (ii);

 

(b)                                 “security” has the meaning assigned in the Securities Act (British Columbia);

 

(c)                                  “voting security” means a security of the Company that:

 

(i)                                     is not a debt security, and

 

(ii)                                  carries a voting right either under all circumstances or under some circumstances that have occurred and are continuing.

 

25.2                                                                        Application.  Article 25.3 does not apply to the Company if and for so long as it is a public company or a pre-existing reporting company which has the Statutory Reporting Company Provisions as part of its Articles or to which the Statutory Reporting Company Provisions  apply.

 

25.3                                                                        Consent Required for Transfer of Shares or Designated Securities.  No share or designated security may be sold, transferred or otherwise disposed of without the consent of the directors and the directors are not required to give any reason for refusing to consent to any such sale, transfer or other disposition.

 

PART 26

SPECIAL RIGHTS AND RESTRICTIONS

 

26.1                                                                        Authorized Share Structure.  The capital of the Company shall consist of:

 

(a)                                 10,000,000 Common Shares without nominal or par value (the “Common Shares”); and

 

(b)                                 10,000,000 Class A Preferred Shares without nominal or par value issuable in series (the “Class A Preferred Shares”);

 

32

 

having in each case the rights and privileges and subject to the conditions and limitations set forth below, with the power in each case to divide the shares in the capital for the time being into classes or series and to attach thereto respectively any preferred, deferred or qualified rights, privileges or conditions, including restrictions on voting rights and including redemption, purchase and other acquisition of such shares, subject, however, to the provisions of the Business Corporations Act.

 

26.2                                                                        Issuable in Series. The Class A Preferred Shares may at any time and from time to time be divided into and issued in one or more series as determined by the Directors.

 

26.3                                                                        Directors’ Right to Fix Conditions. Before any Class A Preferred Shares are issued, the Directors shall by resolution, fix the number of shares that will form the particular series to be issued and subject to the provisions hereof, determine the designation, priorities, preferences, rights, privileges, restrictions and conditions to attach to each particular series including, but without in any way limiting or restricting the generality of the foregoing:

 

(a)                                 the rate, amount or method of calculation of dividends (if any);

 

(b)                                 whether such rate, amount or method of calculation of dividends is subject to any changes or adjustments;

 

(c)                                  whether dividends will be cumulative, non-cumulative or partially cumulative;

 

(d)                                 whether Class A Preferred Shareholders will be entitled to any preference with respect to dividends or will be subject to any deferral or qualification in respect thereof;

 

(e)                                  the time, place and method of payment of dividends;

 

(f)                                   the consideration for and the terms and conditions (if any) of any purchase for cancellation, retraction or redemption thereof (including a provision that subsequent to the issue of a series the Directors may provide additional dates upon which the holder may require the Company to redeem its shares or vice versa);

 

(g)                                  the amount of the redemption price (if any) of the Class A Preferred Shares;

 

(h)                                 whether the redemption price (if any) is subject to change or adjustment and on what terms and conditions such changes or adjustments will occur;

 

(i)                                     the conversion or exchange rights attached thereto (if any) including, without limitation, the conversion thereof into fully paid shares of any other class of the Company as provided for in the Business Corporations Act;

 

33

 

(j)                                    the terms and conditions of any share purchase plan or sinking fund;

 

(k)                                 the restriction (if any) respecting the payment of dividends on any shares ranking subordinate to the Class A Preferred Shares;

 

(l)                                     the right (if any) to vote and, in the circumstances, when the right to vote may be exercised; and

 

(m)                             the right (if any) to receive notices of and to attend meetings of the shareholders of the Company.

 

26.4                                                                        Authorization.  The Directors’ resolution described in paragraph 26.3 shall be the only authorization required to fix such designation, priorities, preferences, rights, privileges, restrictions and conditions and to authorize such issuance and no approval, sanction or confirmation of such resolution by the shareholders of the Company or otherwise shall be required.

 

26.5                                                                        Priority.  Subject to the Directors’ right to otherwise determine, by the resolution referred to in paragraph 26.3 above, the priority of any series of Class A Preferred Shares, the Class A Preferred Shares and each series thereof, shall rank in priority to and be entitled to preference over all of the Common shares of the Company and any other class or series of shares in the capital stock of the Company that the Company may from time to time be authorized to issue, with respect to priority to and payment of dividends and on the distribution of assets of the Company in the event of liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, or any other distribution of assets of the Company among its shareholders for the purpose of winding up its affairs. Each series of Class A Preferred Shares may also be given any other preference over other classes of shares in the capital stock of the Company and other shares ranking junior to the Class A Preferred Shares that the Company may from time to time be authorized to issue, all as may be provided for by the resolution of the Directors referred to in paragraph 26.3 above.

 

26.6                                                                        Series Parity. Each series of Class A Preferred Shares shall rank on a parity with every other series of Class A Preferred Shares with respect to priority and payment of dividends and on distribution of assets of the Company in the event of liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, or any other distribution of the assets of the Company among its shareholders for the purpose of winding up its affairs. When any dividends or amounts payable to the holders of Class A Preferred Shares on a return of capital or redemption are not paid in full, the Class A Preferred Shares of all series shall participate rateably in respect of such dividends or amounts, including accumulations, if any, in accordance with the sums that would be payable on such shares if all such dividends were declared and paid in full, and in respect of any return of capital or redemption in accordance with the sums that would be payable on such return of capital or redemption if all sums so payable were paid in full, provided, however, that in the event of there being insufficient assets to satisfy in full all such claims as aforesaid, the claims of the holders of such shares with respect to the return of capital or redemption shall first be paid and satisfied and any assets remaining thereafter shall be applied towards the payment and satisfaction of claims in respect of dividends.

 

26.7                                                                        Restriction on Creation and Issuance of Shares. The Company shall not, without the authorization of the holders of Class A Preferred Shares given as specified in paragraph 26.8

 

34

 

hereof:

 

(a)                                 create or issue any shares ranking in priority to the Class A Preferred Shares with respect to the payment of dividends or on the distribution of assets of the Company in the event of liquidation, dissolution or winding up of the Company whether voluntary or involuntary, or any other distribution of assets of the Company among its shareholders for the purpose of winding up its affairs; or

 

(b)                                 increase the authorized number of Class A Preferred Shares or create any other shares ranking pari passu with the Class A Preferred Shares with respect to the payment of dividends or on the distribution of assets of the Company in the event of the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, or any other distribution of assets of the Company among its shareholders for the purpose of winding up its affairs.

 

26.8                                                                        Shareholder Approval. Any authorization or approval by the holders of the Class A Preferred Shares in respect of any and all matters referred to herein shall be deemed to have been sufficiently given if provided in a resolution in writing signed by the holders of at least two thirds (2/3) of the issued and outstanding Class A Preferred Shares or if passed by a two-thirds (2/3) majority of the holders of issued and outstanding Class A Preferred Shares present at a meeting of the holders of the Class A Preferred Shares called in the same manner as provided in the Articles herein with respect to meetings of shareholders and the provisions of the Articles of the Company shall apply mutatis mutandis with necessary modifications with respect to the conduct and formalities to be observed in respect of such meeting. On every poll taken at every meeting of holders of the Class A Preferred Shares each shareholder shall be entitled to vote thereat and shall have one (1) vote in respect of each Class A Preferred Share held.

 

26.9                                                                        Amendments. The provisions contained herein, may be deleted, varied, modified or amplified by the Directors provided the prior approval of the holders of the Class A Preferred Shares is obtained in the manner specified in paragraph 26.8 above.

 

 

	
 
    	
SIGNATURE OF A DIRECTOR:
    
	
 
    	
 
    
	
 
    	
/s/ John P. Lawrence
    
	
DATED: June 21, 2013.
    	
JOHN P. LAWRENCE
    

 

35Exhibit 4.8

 

IRON MOUNTAIN CANADA OPERATIONS ULC

 

SENIOR INDENTURE

 

Dated as of [                  ], 20[    ]

 

 

TABLE OF CONTENTS

 

	
ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE
    	
1
    
	
Section 1.1.   DEFINITIONS
    	
1
    
	
Section 1.2.   OTHER DEFINITIONS
    	
5
    
	
Section 1.3.   INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT
    	
5
    
	
Section 1.4.   RULES OF CONSTRUCTION
    	
6
    
	
ARTICLE II. THE SECURITIES
    	
6
    
	
Section 2.1.   ISSUABLE IN SERIES
    	
6
    
	
Section 2.2.   ESTABLISHMENT OF TERMS OF SERIES OF SECURITIES
    	
6
    
	
Section 2.3.   EXECUTION AND AUTHENTICATION
    	
8
    
	
Section 2.4.   REGISTRAR AND PAYING AGENT
    	
9
    
	
Section 2.5.   PAYING AGENT TO HOLD MONEY IN TRUST
    	
10
    
	
Section 2.6.   SECURITYHOLDER LISTS
    	
10
    
	
Section 2.7.   TRANSFER AND EXCHANGE
    	
10
    
	
Section 2.8.   MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES
    	
10
    
	
Section 2.9.   OUTSTANDING SECURITIES
    	
11
    
	
Section 2.10.   TREASURY SECURITIES
    	
11
    
	
Section 2.11.   TEMPORARY SECURITIES
    	
12
    
	
Section 2.12.   CANCELLATION
    	
12
    
	
Section 2.13.   DEFAULTED INTEREST
    	
12
    
	
Section 2.14.   RECORD DATE
    	
12
    
	
Section 2.15.   GLOBAL SECURITIES
    	
12
    
	
Section 2.16.   CUSIP NUMBERS
    	
13
    
	
ARTICLE III. REDEMPTION
    	
13
    
	
Section 3.1.   NOTICE TO TRUSTEE
    	
13
    
	
Section 3.2.   SELECTION OF SECURITIES TO BE REDEEMED
    	
14
    
	
Section 3.3.   NOTICE OF REDEMPTION
    	
14
    
	
Section 3.4.   EFFECT OF NOTICE OF REDEMPTION
    	
15
    
	
Section 3.5.   DEPOSIT OF REDEMPTION PRICE
    	
15
    
	
Section 3.6.   SECURITIES REDEEMED IN PART
    	
15
    
	
ARTICLE IV. COVENANTS
    	
15
    
	
Section 4.1.   PAYMENT OF PRINCIPAL AND INTEREST
    	
15
    
	
Section 4.2.   REPORTS
    	
15
    
	
Section 4.3.   COMPLIANCE CERTIFICATE
    	
16
    
	
Section 4.4.   STAY, EXTENSION AND USURY LAWS
    	
16
    
	
Section 4.5.   CORPORATE EXISTENCE
    	
16
    
	
Section 4.6.   TAXES
    	
17
    
	
Section 4.7.   MAINTENANCE OF OFFICE OR AGENCY
    	
17
    
	
ARTICLE V. SUCCESSORS
    	
17
    
	
Section 5.1.   MERGERS, CONSOLIDATIONS OR SALE OF ASSETS
    	
17
    
	
Section 5.2.   SUCCESSOR CORPORATION SUBSTITUTED
    	
18
    

 

i

 

	
ARTICLE VI. DEFAULTS AND REMEDIES
    	
18
    
	
Section 6.1.   EVENTS OF DEFAULT
    	
18
    
	
Section 6.2.   ACCELERATION OF MATURITY
    	
20
    
	
Section 6.3.   COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE
    	
20
    
	
Section 6.4.   TRUSTEE MAY FILE PROOFS OF CLAIM
    	
21
    
	
Section 6.5.   TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES
    	
21
    
	
Section 6.6.   APPLICATION OF MONEY COLLECTED
    	
21
    
	
Section 6.7.   LIMITATION ON SUITS
    	
22
    
	
Section 6.8.   UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL AND INTEREST
    	
22
    
	
Section 6.9.   RESTORATION OF RIGHTS AND REMEDIES
    	
22
    
	
Section 6.10.   RIGHTS AND REMEDIES CUMULATIVE
    	
22
    
	
Section 6.11.   DELAY OR OMISSION NOT WAIVER
    	
23
    
	
Section 6.12.   CONTROL BY HOLDERS
    	
23
    
	
Section 6.13.   WAIVER OF PAST DEFAULTS
    	
23
    
	
Section 6.14.   UNDERTAKING FOR COSTS
    	
23
    
	
ARTICLE VII. TRUSTEE
    	
24
    
	
Section 7.1.   DUTIES OF TRUSTEE
    	
24
    
	
Section 7.2.   RIGHTS OF TRUSTEE
    	
25
    
	
Section 7.3.   INDIVIDUAL RIGHTS OF TRUSTEE
    	
26
    
	
Section 7.4.   TRUSTEE’S DISCLAIMER
    	
26
    
	
Section 7.5.   NOTICE OF DEFAULTS
    	
26
    
	
Section 7.6.   REPORTS BY TRUSTEE TO HOLDERS
    	
26
    
	
Section 7.7.   COMPENSATION AND INDEMNITY
    	
26
    
	
Section 7.8.   REPLACEMENT OF TRUSTEE
    	
27
    
	
Section 7.9.   SUCCESSOR TRUSTEE BY MERGER, ETC
    	
28
    
	
Section 7.10.   ELIGIBILITY; DISQUALIFICATION
    	
28
    
	
Section 7.11.   PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY
    	
28
    
	
ARTICLE VIII. LEGAL DEFEASANCE AND COVENANT DEFEASANCE
    	
28
    
	
Section 8.1.   OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT DEFEASANCE
    	
28
    
	
Section 8.2.   LEGAL DEFEASANCE AND DISCHARGE
    	
28
    
	
Section 8.3.   COVENANT DEFEASANCE
    	
29
    
	
Section 8.4.   CONDITIONS TO LEGAL OR COVENANT DEFEASANCE
    	
29
    
	
Section 8.5. DEPOSITED   MONEY AND GOVERNMENT SECURITIES TO BE HELD IN TRUST; OTHER MISCELLANEOUS   PROVISIONS
    	
30
    
	
Section 8.6.   REPAYMENT TO COMPANY
    	
30
    
	
Section 8.7.   REINSTATEMENT
    	
31
    
	
ARTICLE IX. AMENDMENTS AND WAIVERS
    	
31
    
	
Section 9.1.   WITHOUT CONSENT OF HOLDERS
    	
31
    
	
Section 9.2.   WITH CONSENT OF HOLDERS
    	
32
    
	
Section 9.3.   LIMITATIONS
    	
32
    
	
Section 9.4.   COMPLIANCE WITH TRUST INDENTURE ACT
    	
33
    
	
Section 9.5.   REVOCATION AND EFFECT OF CONSENTS
    	
33
    
	
Section 9.6.   NOTATION ON OR EXCHANGE OF SECURITIES
    	
33
    
	
Section 9.7.   TRUSTEE TO SIGN AMENDMENTS; TRUSTEE PROTECTED
    	
33
    

 

ii

 

	
ARTICLE X. SATISFACTION AND DISCHARGE
    	
34
    
	
ARTICLE XI. MISCELLANEOUS
    	
34
    
	
Section 11.1.   TRUST INDENTURE ACT CONTROLS
    	
34
    
	
Section 11.2.   NOTICES
    	
34
    
	
Section 11.3.   COMMUNICATION BY HOLDERS WITH OTHER HOLDERS
    	
35
    
	
Section 11.4.   CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT
    	
35
    
	
Section 11.5.   STATEMENTS REQUIRED IN CERTIFICATE OR OPINION
    	
35
    
	
Section 11.6.   RULES BY TRUSTEE AND AGENTS
    	
35
    
	
Section 11.7.   LEGAL HOLIDAYS
    	
35
    
	
Section 11.8.   NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES AND STOCKHOLDERS
    	
36
    
	
Section 11.9.   COUNTERPARTS
    	
36
    
	
Section 11.10.   GOVERNING LAWS
    	
36
    
	
Section 11.11.   NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS
    	
36
    
	
Section 11.12.   SUCCESSORS
    	
36
    
	
Section 11.13.   SEVERABILITY
    	
36
    
	
Section 11.14.   TABLE OF CONTENTS, HEADINGS, ETC
    	
36
    
	
Section 11.15.   SECURITIES IN A FOREIGN CURRENCY OR IN EUROS
    	
36
    
	
Section 11.16.   JUDGMENT CURRENCY
    	
37
    
	
Section 11.17.   WAIVER OF JURY TRIAL
    	
37
    
	
Section 11.18.   SUBMISSION TO JURISDICTION; VENUE
    	
38
    
	
Section 11.19.   FORCE MAJEURE
    	
38
    
	
ARTICLE XII. SINKING FUNDS
    	
38
    
	
Section 12.1.   APPLICABILITY OF ARTICLE
    	
38
    
	
Section 12.2.   SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES
    	
38
    
	
Section 12.3.   REDEMPTION OF SECURITIES FOR SINKING FUND
    	
39
    
	
ARTICLE XIII. NOTE GUARANTEES
    	
39
    
	
Section 13.1.   NOTE GUARANTEE
    	
39
    
	
Section 13.2.   LIMITATION OF GUARANTOR’S LIABILITY
    	
40
    

 

iii

 

IRON MOUNTAIN INCORPORATED

 

Reconciliation and tie between Trust Indenture Act of 1939 and
 Indenture, dated as of [      ], 20[    ]

 

	
§   310(a)(1)
    	
7.10
    
	
(a)(2)
    	
7.10
    
	
(a)(3)
    	
Not   Applicable
    
	
(a)(4)
    	
Not   Applicable
    
	
(a)(5)
    	
7.10
    
	
(b)
    	
7.10
    
	
§   310(c)
    	
Not   Applicable
    
	
§   311(a)
    	
7.11
    
	
(b)
    	
7.11
    
	
(c)
    	
Not   Applicable
    
	
§   312(a)
    	
2.6
    
	
(b)
    	
11.3
    
	
(c)
    	
11.3
    
	
§   313(a)
    	
7.6
    
	
(b)(1)
    	
7.6
    
	
(b)(2)
    	
7.6
    
	
(c)
    	
7.6,   11.2
    
	
(c)(1)
    	
7.6
    
	
(c)(2)
    	
7.6
    
	
(c)(3)
    	
7.6
    
	
(d)
    	
7.6
    
	
§   314(a)
    	
4.2,   4.3, 11.5
    
	
(b)
    	
Not   Applicable
    
	
(c)(1)
    	
11.4
    
	
(c)(2)
    	
11.4
    
	
(c)(3)
    	
Not   Applicable
    
	
(d)
    	
Not   Applicable
    
	
(e)
    	
11.5
    
	
(f)
    	
Not   Applicable
    
	
§   315(a)
    	
7.1(b)
    
	
(b)
    	
7.5
    
	
(c)
    	
7.1
    
	
(d)
    	
7.1
    
	
(e)
    	
6.14
    
	
§   316(a)
    	
2.10
    
	
(a)(1)(A)
    	
6.12
    
	
(a)(1)(B)
    	
6.13
    
	
(b)
    	
6.8
    
	
§   316(c)
    	
2.14
    
	
§   317(a)(1)
    	
6.3
    
	
(a)(2)
    	
6.4
    
	
(b)
    	
2.5
    
	
§   318(a)
    	
11.1
    
	
(b)
    	
Not   Applicable
    
	
(c)
    	
Not   Applicable
    

 

Note:  This reconciliation and tie shall not, for any purpose, be deemed to be part of the Indenture.

 

iv

 

Senior Indenture dated as of                                 , 20[    ] among Iron Mountain Canada Operations ULC, an unlimited liability company under the laws of British Columbia, Canada (the “Company”), Iron Mountain Incorporated, a Delaware corporation (the “Parent”), [the guarantors party hereto] and [ ], a [ ], as Trustee (“Trustee”).

 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Securities issued under this Indenture.

 

ARTICLE I.
 DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.1.  DEFINITIONS.

 

“Additional Amounts” means any additional amounts which are required hereby or by any Security, under circumstances specified herein or therein, to be paid by the Company in respect of certain taxes imposed on Holders specified therein and which are owing to such Holders.

 

“Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person.  For purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise; PROVIDED, HOWEVER, that beneficial ownership of 10% or more of the voting securities of a Person shall be deemed to be control.

 

“Agent” means any Registrar, Paying Agent or Service Agent.

 

“Authorized Newspaper” means a newspaper in an official language of the country of publication customarily published at least once a day for at least five days in each calendar week and of general circulation in the place in connection with which the term is used.  If it shall be impractical in the opinion of the Trustee to make any publication of any notice required hereby in an Authorized Newspaper, any publication or other notice in lieu thereof that is made or given by the Trustee shall constitute a sufficient publication of such notice.

 

“Bearer Security” means any Security, including any interest coupon appertaining thereto, that does not provide for the identification of the Holder thereof.

 

“Board of Directors” means the Board of Directors of the Company or any duly authorized committee thereof.

 

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the Board of Directors or pursuant to authorization by the Board of Directors and to be in full force and effect on the date of the certificate and delivered to the Trustee.

 

“Business Day” means, unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture hereto for a particular Series, any day except a Saturday, Sunday or a legal holiday in The City of New York or at a place of payment on which banking institutions are authorized or required by law, regulation or executive order to close.

 

“Capital Lease Obligation” means, at the time any determination thereof is to be made, the amount of the liability in respect of a capital lease that would at such time be so required to be capitalized on the balance sheet in accordance with GAAP.

 

“Capital Stock” means any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock, including, without limitation, with respect to partnerships, partnership

 

1

 

interests (whether general or limited) and any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, such partnership.

 

“Company” means the party named as such above until a successor replaces it and thereafter means the successor.

 

“Company Order” means a written order signed in the name of the Company by two Officers.

 

“Corporate Trust Office” means a principal office of the Trustee at which at any time its corporate trust business shall be administered, which office at the date hereof is located at 150 East 42nd Street, 40th Floor, New York, New York 10017, Attention: Corporate Trust Securities Administrator — Iron Mountain Canada Operations ULC, or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee (or such other address as a successor Trustee may designate from time to time by notice to the Holders and the Company).

 

“Default” means any event that is or with the passage of time or the giving of notice or both would be an Event of Default.

 

“Depository” means, with respect to the Securities of any Series issuable or issued in whole or in part in the form of one or more Global Securities, the Person designated as Depository for such Series by the Company, which Depository shall be a clearing agency registered under the Exchange Act; and if at any time there is more than one such Person, “Depository” as used with respect to the Securities of any Series shall mean the Depository with respect to the Securities of such Series.

 

“Discount Security” means any Security that provides for an amount less than the stated principal amount thereof to be due and payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2.

 

“Disqualified Stock” means any Capital Stock which, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, matures or is mandatorily redeemable, for cash or other property (other than Capital Stock that is not Disqualified Stock) pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the Securityholder thereof, in whole or in part, in each case on or prior to the stated maturity of the Securities.

 

“Dollars” and “$” mean lawful money of the United States of America.

 

“Euro” means the single currency of participating member states of the economic and monetary union as contemplated in the Treaty on European Union.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Foreign Currency” means any currency or currency unit issued by a government other than the government of the United States of America.

 

“GAAP” means accounting principles generally accepted in the United States of America which are in effect on the date set forth in a supplemental indenture for a particular Series.

 

“Global Security” or “Global Securities” means a Security or Securities, as the case may be, in the form established pursuant to Section 2.2 evidencing all or part of a Series of Securities, issued to the Depository for such Series or its nominee, and registered in the name of such Depository or nominee.

 

“Government Securities” means direct obligations of, or obligations guaranteed by, Canada for the payment of which guarantee or obligations the full faith and credit of Canada is pledged.

 

2

 

“Guarantee” means, as applied to any obligation, (a) a guarantee (other than by endorsement of negotiable instruments for collection in the ordinary course of business), direct or indirect, in any manner, of any part or all of such obligation and (b) an agreement, direct or indirect, contingent or otherwise, the practical effect of which is to assure in any way the payment or performance (or payment of damages in the event of non-performance) of all or any part of such obligation, including, without limiting the foregoing, the obligation to reimburse amounts drawn down under letters of credit securing such obligations.

 

“Hedging Obligations” means, with respect to any specified Person, the obligations of such Person under:

 

(a)                                 interest rate swap agreements (whether from fixed to floating or from floating to fixed), interest rate cap agreements and interest rate collar agreements;

 

(b)                                 other agreements or arrangements designed to manage interest rates or interest rate risk; and

 

(c)                                  other agreements or arrangements designed to protect such Person against fluctuations in currency exchange rates or commodity prices.

 

“Holder” or “Securityholder” means a Person in whose name a Security is registered or the holder of a Bearer Security.

 

“Indebtedness” means (without duplication), with respect to any Person, whether recourse is to all or a portion of the assets of such Person, and whether or not contingent, (a) every obligation of such Person for money borrowed, (b) every obligation of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) every reimbursement obligation of such Person with respect to letters of credit, bankers’ acceptances or similar facilities issued for the account of such Person, (d) every obligation of such Person issued or assumed as the deferred purchase price of property or services, (e) every Capital Lease Obligation and every obligation of such Person in respect of Sale and Leaseback Transactions that would be required to be capitalized on the balance sheet in accordance with GAAP, (f) all Disqualified Stock of such Person valued at the greater of its voluntary or involuntary maximum fixed repurchase price, plus accrued and unpaid dividends (unless included in such maximum repurchase price), (g) all obligations of such Person under or with respect to Hedging Obligations which would be required to be reflected on the balance sheet as a liability of such Person in accordance with GAAP and (h) every obligation of the type referred to in clauses (a) through (g) of another Person and dividends of another Person the payment of which, in either case, such Person has guaranteed.  For purposes of this definition, the “maximum fixed repurchase price” of any Disqualified Stock that does not have a fixed repurchase price will be calculated in accordance with the terms of such Disqualified Stock as if such Disqualified Stock were repurchased on any date on which Indebtedness is required to be determined pursuant to this Indenture, and if such price is based upon, or measured by, the fair market value of such Disqualified Stock, such fair market value will be determined in good faith by the board of directors of the issuer of such Disqualified Stock.  Notwithstanding the foregoing, trade accounts payable and accrued liabilities arising in the ordinary course of business and any liability for federal, state or local taxes or other taxes owed by such Person will not be considered Indebtedness for purposes of this definition.  The amount outstanding at any time of any Indebtedness issued with original issue discount is the aggregate principal amount at maturity of such Indebtedness, less the remaining unamortized portion of the original issue discount of such Indebtedness at such time, as determined in accordance with GAAP.  Indebtedness shall be calculated without giving effect to the effects of Statement of Accounting Standards Codification No. 815 and related interpretations to the extent such effects would otherwise increase or decrease an amount of Indebtedness for any purpose under the Indenture as a result of accounting for any embedded derivatives created by the terms of such Indebtedness.

 

“Indenture” means this Indenture as amended and supplemented from time to time and shall include the form and terms of particular Series of Securities established as contemplated hereunder and any related supplemental indenture.

 

“interest” with respect to any Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity.

 

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“Maturity,” when used with respect to any Security or installment of principal thereof, means the date on which the principal of such Security or such installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption, notice of option to elect repayment or otherwise.

 

“Note Guarantee” means a Guarantee of a Guarantor pursuant to Article XIII hereof.

 

“Officer” means the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, any Vice-President, the Treasurer, the Controller, the Secretary, any Assistant Treasurer or any Assistant Secretary of any Person.

 

“Officers’ Certificate” means a certificate signed, unless otherwise specified, by any two of the Chairman of the Board, a Vice Chairman of the Board, the Chief Executive Officer, the President, the Chief Financial Officer, the Controller or an Executive Vice President of the Company, and delivered to the Trustee.

 

“Opinion of Counsel” means a written opinion of legal counsel, which opinion is reasonably acceptable to the Trustee.  The counsel may be an employee of or counsel to the Company.

 

“Parent” means Iron Mountain Incorporated, a Delaware corporation that owns, indirectly, all of the outstanding Capital Stock of the Company until a successor replaces it and thereafter means the successor.

 

“Person” means any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, or any government or any agency or political subdivision thereof.

 

“principal” of a Security means the principal of the Security plus, when appropriate, the premium, if any, on, and any Additional Amounts in respect of, the Security.

 

“Responsible Officer” means, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any managing director, director, vice president, assistant vice president, assistant treasurer, trust officer, associate or any other officer of the Trustee who customarily performs functions similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture.

 

“Restricted Subsidiary” shall have the meaning set forth in the applicable supplemental indenture as to each Series of Securities.  If not defined in the applicable supplemental indenture, then there shall be no Restricted Subsidiaries as to such Series; PROVIDED, HOWEVER, that in any event, the Company shall be considered a Restricted Subsidiary of the Parent.

 

“Sale and Leaseback Transaction” means any transaction or series of related transactions pursuant to which a Person sells or transfers any property or asset in connection with the leasing, or the resale against installment payments, of such property or asset to the seller or transferor.

 

“SEC” means the United States Securities and Exchange Commission.

 

“Securities” means the debentures, notes or other instruments of Indebtedness of the Company of any Series authenticated and delivered under this Indenture.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Series” or “Series of Securities” means each series of debentures, notes or other debt instruments of the Company created pursuant to Sections 2.1 and 2.2 hereof.

 

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“Significant Subsidiary” means any Subsidiary that would be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as such regulation is in effect on the date hereof.

 

“Stated Maturity” when used with respect to any Security or any installment of principal thereof or interest thereon, means the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable.

 

“Subsidiary” means, with respect to any Person, any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person or a combination thereof.

 

“TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect on the date of this Indenture; PROVIDED, HOWEVER, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any such amendment, the Trust Indenture Act as so amended.

 

“Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to the Securities of any Series shall mean the Trustee with respect to Securities of that Series.

 

Section 1.2.  OTHER DEFINITIONS.

 

	
TERM
    	
 
    	
DEFINED IN SECTION
    
	
“Bankruptcy   Law”
    	
 
    	
6.1
    
	
“Benefited   Party”
    	
 
    	
13.1
    
	
“Covenant   Defeasance”
    	
 
    	
8.3
    
	
“Custodian”
    	
 
    	
6.1
    
	
“Event   of Default”
    	
 
    	
6.1
    
	
“Guarantor”
    	
 
    	
13.1
    
	
“Journal”
    	
 
    	
11.15
    
	
“Judgment   Currency”
    	
 
    	
11.16
    
	
“Legal   Defeasance”
    	
 
    	
8.2
    
	
“Legal   Holiday”
    	
 
    	
11.8
    
	
“mandatory   sinking fund payment”
    	
 
    	
12.1
    
	
“Market   Exchange Rate”
    	
 
    	
11.15
    
	
“New   York Banking Day”
    	
 
    	
11.16
    
	
“optional   sinking fund payment”
    	
 
    	
12.1
    
	
“Paying   Agent”
    	
 
    	
2.4
    
	
“Registrar”
    	
 
    	
2.4
    
	
“Required   Currency”
    	
 
    	
11.16
    
	
“Service   Agent”
    	
 
    	
2.4
    
	
“Successor   Person”
    	
 
    	
5.2
    

 

Section 1.3.  INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.

 

Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this Indenture have the following meanings:

 

“Commission” means the SEC.

 

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“indenture securities” means the Securities and the Note Guarantees, if any.

 

“indenture security holder” means a Holder or a Securityholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Trustee.

 

“obligor” on the indenture securities means the Company, the Guarantors, if any, and any successor obligor upon the Securities or any Note Guarantee, as the case may be.

 

All other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA and not otherwise defined herein are used herein as so defined.

 

Section 1.4.  RULES OF CONSTRUCTION.

 

Unless the context otherwise requires:

 

(a)                                 a term has the meaning assigned to it;

 

(b)                                 an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(c)                                  “or” is not exclusive;

 

(d)                                 words in the singular include the plural, and in the plural include the singular;

 

(e)                                  provisions apply to successive events and transactions; and

 

(f)                                   references to sections of or rules under the Securities Act or the Exchange Act shall be deemed to include substitute, replacement or successor sections or rules adopted by the SEC from time to time.

 

ARTICLE II.
 THE SECURITIES

 

Section 2.1.  ISSUABLE IN SERIES.

 

The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited.  The Securities may be issued in one or more Series.  All Securities of a Series shall be identical except as may be set forth in a Board Resolution, a supplemental indenture or an Officers’ Certificate detailing the adoption of the terms thereof pursuant to the authority granted under a Board Resolution.  In the case of Securities of a Series to be issued from time to time, the Board Resolution, Officers’ Certificate or supplemental indenture may provide for the method by which specified terms (such as interest rate, maturity date, record date or date from which interest shall accrue) are to be determined.  Securities may differ between Series in respect of any matters, provided that all Series of Securities shall be equally and ratably entitled to the benefits of the Indenture.

 

Section 2.2.  ESTABLISHMENT OF TERMS OF SERIES OF SECURITIES.

 

At or prior to the issuance of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Subsection 2.2.1 and either as to such Securities within the Series or as to the Series generally in the case of Subsections 2.2.2 through 2.2.21) by a Board Resolution, a supplemental indenture or an Officers’ Certificate pursuant to authority granted under a Board Resolution:

 

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Section 2.2.1.  the title of the Series (which shall distinguish the Securities of that particular Series from the Securities of any other Series);

 

Section 2.2.2.  the price or prices (expressed as a percentage of the principal amount thereof) at which the Securities of the Series will be issued;

 

Section 2.2.3.  any limit upon the aggregate principal amount of the Securities of the Series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.6, or any applicable provision of a supplemental indenture);

 

Section 2.2.4.  the date or dates on which the principal of the Securities of the Series is payable;

 

Section 2.2.5.  the rate or rates (which may be fixed or variable) per annum or, if applicable, the method used to determine such rate or rates (including, but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the Securities of the Series shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the date or dates on which such interest, if any, shall commence and be payable and any regular record date for the interest payable on any interest payment date;

 

Section 2.2.6.  the place or places where the principal of and interest, if any, on the Securities of the Series shall be payable, or the method of such payment, if by wire transfer, mail or other means;

 

Section 2.2.7.  if applicable, the period or periods within which, the price or prices at which and the terms and conditions upon which the Securities of the Series may be redeemed, in whole or in part, at the option of the Company;

 

Section 2.2.8.  the obligation, if any, of the Company to redeem or purchase the Securities of the Series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the Series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;

 

Section 2.2.9.  the dates, if any, on which and the price or prices at which the Securities of the Series will be repurchased by the Company at the option of the Holders thereof and other detailed terms and provisions of such repurchase obligations;

 

Section 2.2.10.  if other than denominations of $1,000 and any integral multiple thereof, the denominations in which the Securities of the Series shall be issuable;

 

Section 2.2.11.  the forms of the Securities of the Series in bearer or fully registered form (and, if in fully registered form, whether the Securities will be issuable as Global Securities);

 

Section 2.2.12.  if other than the principal amount thereof, the portion of the principal amount of the Securities of the Series that shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2;

 

Section 2.2.13.  the currency of denomination of the Securities of the Series, which may be Dollars or any Foreign Currency, including, but not limited to, Canadian Dollars or the Euro, and if such currency of denomination is a composite currency other than the Euro, the agency or organization, if any, responsible for overseeing such composite currency;

 

Section 2.2.14.  the designation of the currency, currencies or currency units in which payment of the principal of and interest, if any, on the Securities of the Series will be made;

 

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Section 2.2.15.  if payments of principal of or interest, if any, on the Securities of the Series are to be made in one or more currencies or currency units other than that or those in which such Securities are denominated, the manner in which the exchange rate with respect to such payments will be determined;

 

Section 2.2.16.  the manner in which the amounts of payment of principal of or interest, if any, on the Securities of the Series will be determined, if such amounts may be determined by reference to an index based on a currency or currencies or by reference to a commodity, commodity index, stock exchange index or financial index.  For the purposes of disclosure under the Interest Act (Canada) only, and without affecting the amount of interest payable under the Securities of the Series or the calculation of interest on the Securities of the Series, wherever a rate of interest under the Securities of the Series is calculated on the basis of a year (the “deemed year”) which contains fewer days than the actual number of days in the calendar year of calculation, such rate of interest shall be expressed as a yearly rate for the purposes of the Interest Act (Canada) by multiplying such rate of interest by the actual number of days in the calendar year of calculation and dividing it by the number of days in the deemed year;

 

Section 2.2.17.  the provisions, if any, relating to any security provided for the Securities of the Series;

 

Section 2.2.18.  any addition to or change in the Events of Default which applies to any Securities of the Series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section 6.2;

 

Section 2.2.19.  any addition to or change in the covenants set forth in Articles IV or V which applies to Securities of the Series;

 

Section 2.2.20.  any other terms of the Securities of the Series (which may modify or delete any provision of this Indenture insofar as it applies to such Series);

 

Section 2.2.21.  any depositories, interest rate calculation agents, exchange rate calculation agents or other agents with respect to Securities of such Series if other than those appointed herein; and

 

Section 2.2.22.  any legends required to be noted on the Securities of such Series pursuant to Canadian securities laws.

 

Section 2.2.23.  All Securities of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the Board Resolution, supplemental indenture or Officers’ Certificate referred to above, and the authorized principal amount of any Series may not be increased to provide for issuances of additional Securities of such Series, unless otherwise provided in such Board Resolution, supplemental indenture or Officers’ Certificate.

 

Section 2.3.  EXECUTION AND AUTHENTICATION.

 

Two Officers shall sign the Securities for the Company by manual or facsimile signature.  An Officer of each Guarantor shall sign the Note Guarantee for the Guarantor by manual or facsimile signature.

 

If an Officer whose signature is on a Security or Note Guarantee no longer holds that office at the time the Security is authenticated, the Security or Note Guarantee shall nevertheless be valid.

 

A Security shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.  Such signature shall be conclusive evidence that the Security has been authenticated under this Indenture.

 

The Trustee shall at any time, and from time to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution, supplemental indenture hereto or Officers’ Certificate, upon receipt by the Trustee of a Company Order.  Such Company Order may authorize authentication and delivery

 

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pursuant to written or electronic signed instructions from the Company or its duly authorized agent or agents.  Each Security shall be dated the date of its authentication unless otherwise provided by a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate.

 

The aggregate principal amount of Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal amount for such Series set forth in the Board Resolution, supplemental indenture hereto or Officers’ Certificate delivered pursuant to Section 2.2, except as provided in Section 2.8.

 

Prior to the issuance of Securities of any Series, the Trustee shall have received and (subject to Section 7.2) shall be fully protected in relying on: (a) the Board Resolution, supplemental indenture hereto or Officers’ Certificate establishing the form of the Securities of that Series or of Securities within that Series and the terms of the Securities of that Series or of Securities within that Series, (b) an Officers’ Certificate complying with Sections 10.4 and 10.5, and (c) an Opinion of Counsel complying with Sections 10.4 and 10.5.

 

The Trustee shall have the right to decline to authenticate and deliver any Securities of such Series: (a) if the Trustee, being advised by counsel, determines that such action may not lawfully be taken; or (b) if the Trustee in good faith by any of the following: its board of directors or trustees, executive committee or a trust committee of Responsible Officers, directors and/or vice-presidents shall determine that such action would reasonably be expected to expose the Trustee to personal liability to Holders of any then outstanding Series of Securities.

 

The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities.  Unless limited by the terms of such appointment, an authenticating agent may authenticate Securities whenever the Trustee may do so.  Each reference in this Indenture to authentication by the Trustee includes authentication by such agent.  An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate.

 

Section 2.4.  REGISTRAR AND PAYING AGENT.

 

The Company shall maintain, with respect to each Series of Securities, at the place or places specified with respect to such Series pursuant to Section 2.2, an office or agency where Securities of such Series may be presented or surrendered for payment (“Paying Agent”), where Securities of such Series may be surrendered for registration of transfer or exchange (“Registrar”) and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be served (“Service Agent”).  The Registrar shall keep a register with respect to each Series of Securities and to their transfer and exchange.  The Company will give prompt written notice to the Trustee of the name and address, and any change in the name or address, of each Registrar, Paying Agent or Service Agent.  If at any time the Company shall fail to maintain any such required Registrar or Paying Agent or shall fail to furnish the Trustee with the name and 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 also from time to time designate one or more co-registrars, additional paying agents or additional service agents and may from time to time rescind such designations; PROVIDED, HOWEVER, that no such designation or rescission shall in any manner relieve the Company of its obligations to maintain a Registrar, Paying Agent and Service Agent in each place so specified pursuant to Section 2.2 for Securities of any Series for such purposes.  The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the name or address of any such co-registrar, additional paying agent or additional service agent.  The term “Registrar” includes any co-registrar; the term “Paying Agent” includes any additional paying agent; and the term “Service Agent” includes any additional service agent.  The Company or any Guarantor may act as Paying Agent, Registrar or Service Agent.  The Company shall enter into an appropriate agency agreement with any Agent not a party to this Indenture, which shall be subject to any obligations imposed by the provisions of the TIA.  The agreement shall implement the provisions of this Indenture that relate to such Agent.

 

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The Company hereby appoints the Trustee the initial Registrar and Paying Agent for each Series unless another Registrar and Paying Agent, as the case may be, is appointed prior to the time Securities of that Series are first issued.

 

Section 2.5.  PAYING AGENT TO HOLD MONEY IN TRUST.

 

The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the benefit of Securityholders of any Series of Securities, or the Trustee, all money held by the Paying Agent for the payment of principal of or premium, if any, or interest on the Series of Securities, and will notify the Trustee of any default by the Company or the Guarantors in making any such payment.  While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee.  The Company at any time may require a Paying Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary) shall have no further liability for the money delivered to the Trustee.  If the Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of Securityholders of any Series of Securities all money held by it as Paying Agent.

 

Section 2.6.  SECURITYHOLDER LISTS.

 

The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders of each Series of Securities and shall otherwise comply with TIA Section 312(a).  If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least ten days before each interest payment date and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Securityholders of each Series of Securities.

 

Section 2.7.  TRANSFER AND EXCHANGE.

 

Where Securities of a Series are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met.  To permit registrations of transfers and exchanges, the Trustee shall authenticate Securities at the Registrar’s request.  No service charge shall be made for any registration of transfer or exchange (except as otherwise expressly permitted herein), but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer tax or similar governmental charge payable upon exchanges pursuant to Sections 2.11, 3.6 or 9.6).

 

Neither the Company nor the Registrar shall be required (a) to issue, register the transfer of, or exchange Securities of any Series for the period beginning at the opening of business fifteen days immediately preceding the mailing of a notice of redemption of Securities of that Series selected for redemption and ending at the close of business on the day of such mailing, or (b) to register the transfer of or exchange Securities of any Series selected, called or being called for redemption as a whole or the portion being redeemed of any such Securities selected, called or being called for redemption in part.

 

Section 2.8.  MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES.

 

If any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be required by them to save each of them and any agent of either 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 its request the Trustee shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security, a

 

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new Security of the same Series and of like tenor and principal amount and 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 new Security, pay such Security.

 

Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

Every new Security of any Series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional 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 the benefits of this Indenture equally and proportionately with any and all other Securities of that Series duly issued hereunder.

 

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 2.9.  OUTSTANDING SECURITIES.

 

The Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest on a Global Security effected by the Trustee in accordance with the provisions hereof and those described in this Section as not outstanding.

 

If a Security is replaced pursuant to Section 2.8, it ceases to be outstanding until the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser.

 

If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds on the Maturity of Securities of a Series money sufficient to pay such Securities payable on that date, then on and after that date such Securities of the Series cease to be outstanding and interest on them ceases to accrue.

 

A Security does not cease to be outstanding because the Company, a Guarantor or an Affiliate of the Company or a Guarantor holds the Security.

 

In determining whether the Holders of the requisite principal amount of outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for such purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.2.

 

Section 2.10.  TREASURY SECURITIES.

 

In determining whether the Holders of the required principal amount of Securities of a Series have concurred in any request, demand, authorization, direction, notice, consent or waiver, Securities of a Series owned by the Company or an Affiliate shall be disregarded, except that for the purposes of determining whether the Trustee shall be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver, only Securities of a Series that a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded.  Notwithstanding the foregoing, Securities of a Series that are to be acquired by the Company, any Guarantor, any Subsidiary of the Company or any Guarantor or an Affiliate of the Company or any Guarantor pursuant to an exchange offer, tender offer or other agreement shall not be deemed to be owned by the Company, such Guarantor, a Subsidiary of the Company or such Guarantor or an Affiliate of the Company or such Guarantor until legal title to such Securities passes to the Company, such Guarantor, such Subsidiary or such Affiliate, as the case may be.

 

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Section 2.11.  TEMPORARY SECURITIES.

 

Until definitive Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order.  Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for temporary Securities.  Without unreasonable delay, the Company shall prepare and the Trustee upon request shall authenticate definitive Securities of the same Series and date of maturity in exchange for temporary Securities.  Until so exchanged, temporary securities shall have the same rights under this Indenture as the definitive Securities.

 

Section 2.12.  CANCELLATION.

 

The Company at any time may deliver Securities to the Trustee with written instructions for cancellation.  The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment.  The Trustee shall cancel all Securities surrendered for transfer, exchange, payment, replacement or cancellation and shall dispose of such canceled Securities in accordance with the Trustee’s customary practice as instructed by the Company.  The Company may not issue new Securities to replace Securities that it has paid or delivered to the Trustee for cancellation.

 

Section 2.13.  DEFAULTED INTEREST.

 

If the Company and the Guarantors default in a payment of interest on a Series of Securities, the Company or any such Guarantor (to the extent of its obligations under its Note Guarantee) shall pay the defaulted interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted interest, to the Persons who are Securityholders of the Series at the close of business on a subsequent special record date, which date shall be at the earliest practicable date but in all events at least five Business Days prior to the payment date, in each case at the rate provided for with respect to the applicable Securities.  The Trustee shall fix or cause to be fixed each such special record date and payment date, and shall, promptly thereafter, notify the Trustee of any such date.  At least 15 days before the special record date, the Company (or the Trustee, in the name of and at the expense of the Company) shall mail to Securityholders of the Series a notice that states the special record date, the related payment date and the amount of such interest to be paid.  The Company and the Guarantors may pay defaulted interest in any other lawful manner.

 

Section 2.14.  RECORD DATE.

 

The record date for purposes of determining the identity of Securityholders of the Series entitled to vote or consent to any action by vote or consent authorized or permitted under this Indenture shall be determined as provided for in TIA Section 316(c).

 

Section 2.15.  GLOBAL SECURITIES.

 

Section 2.15.1.  Terms of Securities.  A Board Resolution, a supplemental indenture hereto or an Officers’ Certificate shall establish whether the Securities of a Series shall be issued in whole or in part in the form of one or more Global Securities and the Depository for such Global Security or Securities.

 

Section 2.15.2.  Transfer and Exchange.  Notwithstanding any provisions to the contrary contained in Section 2.7 of the Indenture and in addition thereto, and except as otherwise set forth in a supplemental indenture with regard to a Series of Securities, any Global Security shall be exchangeable pursuant to Section 2.7 of the Indenture for Securities registered in the names of Holders other than the Depository for such Security or its nominee only if (i) such Depository notifies the Company that it is unwilling or unable to continue as Depository for such Global Security or if at any time such Depository ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a successor Depository within 90 days of such event, (ii) the Company executes and delivers to the Trustee an Officers’ Certificate to the effect that such Global Security shall be so exchangeable or (iii) an Event of Default with respect to the Securities represented by such Global Security shall have happened and be continuing.  Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as the Depository shall direct in writing in an aggregate principal amount equal to the principal amount of the Global Security with like tenor and terms.

 

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Except as provided in this Section 2.15.2 or as may be set forth in a supplemental indenture with regard to a Series of Securities, a Global Security may not be transferred except as a whole by the Depository with respect to such Global Security to a nominee of such Depository, by a nominee of such Depository to such Depository or another nominee of such Depository or by the Depository or any such nominee to a successor Depository or a nominee of such a successor Depository.

 

Section 2.15.3.  Legend.  Any Global Security issued hereunder shall bear a legend in substantially the following form:

 

“This Security is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of the Depository or a nominee of the Depository.  This Security is exchangeable for Securities registered in the name of a Person other than the Depository or its nominee only in the limited circumstances described in the Indenture, and may not be transferred except as a whole by the Depository to a nominee of the Depository, by a nominee of the Depository to the Depository or another nominee of the Depository or by the Depository or any such nominee to a successor Depository or a nominee of such a successor Depository.”

 

Section 2.15.4.  Acts of Holders.  The Depository, as a Holder, may appoint agents and otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under the Indenture.

 

Section 2.15.5.  Payments.  Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section 2.2, payment of the principal of and interest, if any, on any Global Security shall be made to the Holder thereof.

 

Section 2.15.6.  Consents, Declaration and Directions.  Except as provided in Section 2.15.5, the Company, the Trustee and any Agent shall treat the Holder of such principal amount of outstanding Securities of such Series represented by a Global Security as the owner thereof, as shall be specified in a written statement of the Depository with respect to such Global Security, for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture.

 

Section 2.16.  CUSIP NUMBERS.

 

The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; PROVIDED that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers.  The Company will promptly notify the Trustee of any change in the CUSIP number.

 

ARTICLE III.
 REDEMPTION

 

Section 3.1.  NOTICE TO TRUSTEE.

 

The Company may, with respect to any Series of Securities, reserve the right to redeem and pay the Series of Securities or may covenant to redeem and pay the Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Securities.  If a Series of Securities is redeemable and the Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee of the redemption date and the principal amount of Series of Securities to be redeemed.  The Company shall give the notice at least 45 days before the redemption date (or such shorter notice as may be acceptable to the Trustee), which notice shall be in the form of an Officers’ Certificate setting forth (i) the Section of this Indenture pursuant to which the redemption shall occur,

 

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(ii) the redemption date, (iii) the principal amount of Securities of a Series to be redeemed and (iv) the redemption price.

 

Section 3.2.  SELECTION OF SECURITIES TO BE REDEEMED.

 

If less than all of any Series of Securities are to be redeemed at any time, the Trustee shall select the Securities of the Series to be redeemed among the applicable Holders on a pro rata basis (or, in the case of any Series of Securities issued in global form as discussed in Section 2.15, based on a method that most nearly approximates a pro rata selection as the Trustee deems fair and appropriate) unless otherwise required by law or applicable stock exchange or depositary requirements, provided that no Securities of $2,000 or less shall be redeemed in part.

 

The Trustee shall promptly notify the Company in writing of the Securities of the Series selected for redemption and, in the case of any Security selected for partial redemption, the principal amount thereof to be redeemed.  Securities and portions of Securities selected shall be in amounts of $2,000 or whole multiples of $1,000; except that if all of the Securities of a Holder are to be redeemed, the entire outstanding amount of Securities held by such Holder, even if not a multiple of $1,000, shall be redeemed.  Except as provided in the preceding sentence, provisions of this Indenture that apply to Securities of a Series called for redemption also apply to portions of Securities of that Series called for redemption.

 

Section 3.3.  NOTICE OF REDEMPTION.

 

Unless otherwise indicated for a particular Series by Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, at least 10 days but not more than 60 days before a redemption date, the Company shall mail or cause to be mailed a notice of redemption by first-class mail to each Holder whose Securities are to be redeemed and if any Bearer Securities are outstanding, publish on one occasion a notice in an Authorized Newspaper.

 

The notice shall identify the Securities of the Series to be redeemed (including the CUSIP numbers, if any) and shall state:

 

(a)                                 the redemption date;

 

(b)                                 the redemption price (including accrued interest to, but excluding, the redemption date);

 

(c)                                  if any Security of the Series called for redemption is being redeemed in part, the portion of the principal amount of such Security to be redeemed and that, after the redemption date upon surrender of such Security, a new Security or Securities in principal amount equal to the unredeemed portion shall be issued upon cancellation of the original Security;

 

(d)                                 the name and address of the Paying Agent;

 

(e)                                  that Securities of the Series called for redemption must be surrendered to the Paying Agent to collect the redemption price;

 

(f)                                   that, unless the Company defaults in the making of such redemption payment, interest on Securities of the Series called for redemption ceases to accrue on and after the redemption date;

 

(g)                                  any other information as may be required by the terms of the particular Series or the Securities of a Series being redeemed; and

 

(h)                                 any conditions to such redemption.

 

At the Company’s request, the Trustee shall give the notice of redemption to the Holders in the Company’s name and at its expense; provided that the Company gives the Trustee written notice of such request at

 

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least 10 days prior to the date of the giving of such notice (or such shorter notice as may be acceptable to the Trustee).

 

Section 3.4.  EFFECT OF NOTICE OF REDEMPTION.

 

Once notice of redemption is mailed or published as provided in Section 3.3, Securities of a Series called for redemption become due and payable on the redemption date and at the redemption price, except that any notice of redemption may, at the Company’s discretion, be subject to one or more conditions precedent, including completion of an offering of Capital Stock or another corporation transaction.  On and after the redemption date, unless the Company defaults in the payment of the redemption price, interest will cease to accrue on the Securities of a Series called for called for redemption and all rights of Holders with respect to such Securities will terminate except for the right to receive payment of the redemption price upon surrender for redemption.  Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price plus accrued interest to but excluding the redemption date.

 

Section 3.5.  DEPOSIT OF REDEMPTION PRICE.

 

Prior to 11:00 a.m. Eastern Standard Time on the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest, if any, on all Securities to be redeemed on that date.  If the Company complies with the provisions of the preceding sentence, on and after the redemption date, interest shall cease to accrue on the Securities or the portions of Securities called for redemption, whether or not such Securities are presented for payment.  If any Security called for redemption shall not be so paid upon surrender for redemption because of the failure of the Company to comply with the first sentence of this paragraph, interest shall be paid on the unpaid principal, from the redemption date until such principal is paid, and to the extent lawful on any interest not paid on such unpaid principal, in each case at the rate provided with respect to such Security.

 

Section 3.6.  SECURITIES REDEEMED IN PART.

 

Upon surrender of a Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Security of the same Series and the same maturity equal in principal amount to the unredeemed portion of the Security surrendered.

 

ARTICLE IV.
 COVENANTS

 

Section 4.1.  PAYMENT OF PRINCIPAL AND INTEREST.

 

The Company covenants and agrees for the benefit of the Holders of each Series of Securities that it will duly and punctually pay the principal of and interest, if any, on the Securities of that Series in accordance with the terms of such Securities and this Indenture.

 

Section 4.2.  REPORTS.

 

Whether or not required by the rules and regulations of the SEC, so long as any Securities are outstanding, the Parent will furnish to the Holders of Securities (or file with the SEC for public availability), within the time periods specified in the SEC’s rules and regulations:

 

(a)                                 all quarterly and annual financial information that would be required to be contained in a filing with the SEC on Forms 10-Q and 10-K if the Parent were required to file such Forms, including a “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and, with respect to the annual information only, a report thereon by the Parent’s certified independent accountants; and

 

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(b)                                 all financial information that would be required to be included in a Form 8-K filed with the SEC if the Parent were required to file such reports.

 

In addition, whether or not required by the rules and regulations of the SEC, the Parent will file a copy of all such information and reports with the SEC for public availability (unless the SEC will not accept such a filing) and make such information available to investors who request it in writing.  The Parent shall otherwise comply with Section 314(a) of the TIA.  The Company will not take any action for the purpose of causing the SEC not to accept any such filings. If, notwithstanding the foregoing, the SEC will not accept the Parent’s filings for any reason, the Parent will post the reports referred to in the preceding paragraphs on its website within the time periods that would apply if the Parent were required to file those reports with the SEC.

 

Notwithstanding the foregoing, if at any time the Securities are guaranteed by any direct or indirect parent company of the Parent, the indenture will permit the Parent to satisfy its obligations under this covenant with respect to financial information relating to the Parent by furnishing financial information relating to such direct or indirect parent company; PROVIDED, HOWEVER, that the same is accompanied by consolidating information that explains in reasonable detail the differences between the information relating to such direct or indirect parent company and any of its Subsidiaries other than the Parent and its Subsidiaries, on the one hand, and the information relating to the Company, the Guarantors and the other Subsidiaries of the Parent on a standalone basis, on the other hand.

 

Section 4.3.  COMPLIANCE CERTIFICATE.

 

The Company shall deliver to the Trustee, within 90 days after the end of each fiscal year of the Company, an Officers’ Certificate complying with TIA Section 314(a)(4) stating that a review of the activities of the Parent and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company and the Parent have kept, observed, performed and fulfilled their obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his knowledge the Company and the Parent have kept, observed, performed and fulfilled each and every covenant contained in this Indenture and are not in default in the performance or observance of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he may have knowledge).

 

The Company will, so long as any of the Securities are outstanding, deliver to the Trustee, forthwith upon any Officer becoming aware of any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto.

 

Section 4.4.  STAY, EXTENSION AND USURY LAWS.

 

Each of the Company and the Guarantors covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, 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 or the Securities; and each of the Company and the Guarantors (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not, by resort to any such law, 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 has been enacted.

 

Section 4.5.  CORPORATE EXISTENCE.

 

Subject to Article V of the Indenture and any covenants included in a supplemental indenture relating to the release of Guarantors or the consolidation or merger of Restricted Subsidiaries, the Company, the Parent and each of the Restricted Subsidiaries shall do or cause to be done all things necessary to preserve and keep in full force and effect (i) its corporate, partnership or other existence in accordance with the respective organizational documents (as the same may be amended from time to time) of the Company, the Parent and any such Restricted Subsidiary, as the case may be, and (ii) the rights (charter and statutory), licenses and franchises of the Company, the Parent and the Restricted Subsidiaries; PROVIDED, HOWEVER, that the Company, the Parent

 

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and the Restricted Subsidiaries shall not be required to preserve any such right, license or franchise if an officer of the Company shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company, the Parent, the Restricted Subsidiaries and their Subsidiaries, taken as a whole, and that the loss thereof is not adverse in any material respect to the Holders of the Securities.

 

Section 4.6.  TAXES.

 

The Parent shall, and shall cause each of its Subsidiaries to, pay prior to delinquency all material taxes, assessments and governmental levies, except (i) as contested in good faith and by appropriate proceedings or (ii) the nonpayment of which would not materially adversely affect the business, condition (financial or otherwise), operations, performance or properties of the Parent and its Subsidiaries, taken as a whole.

 

Section 4.7.  MAINTENANCE OF OFFICE OR AGENCY.

 

The Company shall maintain in the Borough of Manhattan, the City of New York, an office or agency (which may be an office of the Trustee or an affiliate of the Trustee, Registrar or co-registrar) where the Securities of any Series may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Company in respect of such Securities and this Indenture may be served.  The Company shall give prompt written notice to the Trustee of the location, and any change in the location, of 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.

 

The Company may also from time to time designate one or more other offices or agencies where the Securities of any Series may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; 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 Borough of Manhattan, the City of New York for such purposes.  The Company shall give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency.

 

The Company hereby designates the Corporate Trust Office of the Trustee as one such office or agency of the Company in accordance with Section 2.4 hereof.

 

ARTICLE V.
 SUCCESSORS

 

Section 5.1.  MERGERS, CONSOLIDATIONS OR SALE OF ASSETS.

 

Neither the Parent nor the Company may consolidate or merge with or into (whether or not the Parent or the Company, as the case may be, is the surviving corporation), or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its properties or assets in one or more related transactions, to another Person unless:

 

(a)                                 either (i) the Parent or the Company, as the case may be, is the surviving corporation or (ii) the Person formed by or surviving any such consolidation or merger (if other than the Parent or the Company, as the case may be) or to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made (A) in the case of the Parent, is an entity organized or existing under the laws of the United States, any state thereof or the District of Columbia (provided that, if such entity is not a corporation, a co-obligor of the Securities of a Series is a corporation organized or existing under the laws of the United States, any state thereof or the District of Columbia) or (B) in the case of the Company, is an entity organized or existing under the laws of Canada or a province or territory thereof or of the laws of the United States, any state thereof or the District of Columbia (provided that, if such entity is not a corporation, a co-obligor of the Securities of a Series is a corporation organized or existing under the laws of Canada or a province or territory thereof or of the United States, any state thereof or the District of Columbia);

 

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(b)                                 the Person formed by or surviving any such consolidation or merger (if other than the Parent or the Company, as the case may be), or the Person to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made, assumes all the obligations of the Parent or the Company, as the case may be, under the Securities of a Series, the supplemental indentures applicable to such Series and the Indenture (pursuant to a supplemental indenture in a form reasonably satisfactory to the Trustee);

 

(c)                                  immediately after such transaction no Default or Event of Default exists;

 

(d)                                 either (i) the Company or the Parent, as the case may be, or any Person formed by or surviving any such consolidation or merger, or to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made, will, at the time of such transaction and after giving pro forma effect thereto, be permitted to incur at least $1.00 of additional Indebtedness pursuant to the test set forth in the applicable supplemental indenture, if any, without regard to any enumerated exceptions or (ii) at the time of such sale, assignment, transfer, lease, conveyance or other disposition shall have been made and after giving pro forma effect thereto, the Leverage Ratio set forth in any applicable supplemental indenture would have been no higher than the Leverage Ratio immediately prior to such transaction; and

 

(e)                                  the Company (or the Person formed by or surviving any such consolidation or merger or to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made) shall have delivered an Officers’ Certificate and an Opinion of Counsel, both stating that such consolidation, merger or transfer and such supplemental indenture complies with the Indenture.

 

This Section 5.1 will not apply to any sale, assignment, transfer, conveyance, lease or other disposition of assets between or among the Parent, the Company and the Restricted Subsidiaries.  Clauses (c) and (d) of the first paragraph of this Section 5.1 will not apply to any merger or consolidation of the Parent or the Company, as the case may be, (i) with or into one of the Restricted Subsidiaries for any purpose or (ii) with or into an Affiliate solely for the purpose of reincorporating the Company in another jurisdiction in the United States.

 

Section 5.2.  SUCCESSOR CORPORATION SUBSTITUTED.

 

Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all or substantially all of the assets of the Parent or the Company, as the case may be, in accordance with Section 5.1, the successor corporation formed by such consolidation or into or with which the Parent or the Company, as the case may be, is merged or to which such sale, lease, conveyance or other disposition is made (the “Successor Person”) shall succeed to, and be substituted for (so that from and after the date of such consolidation, merger, sale, lease, conveyance or other disposition, the provisions of this Indenture referring to the “Parent” or the “Company”, as the case may be, shall refer instead to the Successor Person and not to the Parent or the Company, as the case may be) and may exercise every right and power of, the Parent or the Company, as the case may be, under this Indenture with the same effect as if such Successor Person has been named as Parent or the Company, as the case may be, herein; PROVIDED, HOWEVER,  that the predecessor Parent or Company in the case of a sale, lease, conveyance or other disposition shall not be released from the obligation to pay the principal of and interest, if any, on the Securities, except in the case of a sale of all the Parent’s or Company’s assets that meets the requirements of Section 5.1 hereof.

 

ARTICLE VI.
 DEFAULTS AND REMEDIES

 

Section 6.1.  EVENTS OF DEFAULT.

 

“Event of Default,” wherever used herein with respect to Securities of any Series, means any one of the following events, unless in the establishing Board Resolution, supplemental indenture or Officers’ Certificate, it is provided that such Series shall not have the benefit of said Event of Default:

 

(a)                                 default for 30 days in the payment when due of interest on any Security of that Series;

 

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(b)                                 default in payment when due of the principal of or premium, if any, on any Security of that Series;

 

(c)                                  failure by the Company to comply with any “Change of Control” covenant included in a supplemental indenture with respect to any Security of that Series;

 

(d)                                 failure by the Parent or any Restricted Subsidiary for 60 days after written notice from the Trustee or Holders of not less than 25% of the aggregate principal amount of the Securities of that Series then outstanding to comply with any of its other agreements in the Indenture, any supplemental indenture relating to such Series, the Securities or the Note Guarantees (in order to be effective, such notice must be in writing, specify the Default, demand that it be remedied and state that the notice is a “Notice of Default”);

 

(e)                                  the failure to pay at final maturity (giving effect to any applicable grace periods and any extensions thereof) the stated principal amount of any Indebtedness of the Parent or any Restricted Subsidiary, or the acceleration of the final stated maturity of any such Indebtedness (which acceleration is not rescinded, annulled or otherwise cured within 30 days of receipt by the Parent or such Restricted Subsidiary of notice of any such acceleration) if the aggregate principal amount of such Indebtedness, together with the principal amount of any other such Indebtedness in default for failure to pay principal at final stated maturity or which has been so accelerated (in each case with respect to which the 30-day period described above has passed), equals $50.0 million or more at any time;

 

(f)                                   a final judgment or final judgments for the payment of money are entered by a court or courts of competent jurisdiction against the Parent or any of the Restricted Subsidiaries and such judgments remain unpaid, undischarged or unstayed for a period of 60 days, provided that the aggregate of all such unpaid, undischarged or unstayed judgments exceeds $50.0 million;

 

(g)                                  the Parent or any of the Restricted Subsidiaries that is a Significant Subsidiary:

 

(i)                                     commences a voluntary case,

 

(ii)                                  consents to the entry of an order for relief against it in an involuntary case,

 

(iii)                               consents to the appointment of a Custodian of it or for all or substantially all of its property,

 

(iv)                              makes a general assignment for the benefit of its creditors, or

 

(v)                                 admits in writing that it generally is unable to pay its debts as the same become due;

 

in each case, pursuant to or within the meaning of any Bankruptcy Law; or

 

(h)                                 a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(i)                                     is for relief against the Parent or any of the Restricted Subsidiaries that is a Significant Subsidiary in an involuntary case,

 

(ii)                                  appoints a Custodian of the Parent or any of the Restricted Subsidiaries that is a Significant Subsidiary or for all or substantially all of its property, or

 

(iii)                               orders the liquidation of the Parent or any of the Restricted Subsidiaries that is a Significant Subsidiary, and such order or decree remains unstayed and in effect for 60 days;

 

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(i)                                     except as permitted by the Indenture, any supplemental indenture relating to such Series or the Note Guarantees, any Note Guarantee shall be held in any judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full force and effect, or the Parent or any Restricted Subsidiary or any Person acting on behalf of the Parent or any Restricted Subsidiary shall deny or disaffirm in writing its obligations under its Note Guarantee; or

 

(j)                                    any other Event of Default provided with respect to Securities of that Series, which is specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, in accordance with Section 2.2.18.

 

The term “Bankruptcy Law” means the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada), the Winding-Up Restructuring Act (Canada), Title 11, United States Bankruptcy Code of 1978, or any similar United States federal or state law or Canadian federal or provincial law relating to bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization or relief of debtors or any amendment to, succession to or change in any such law.  The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

Section 6.2.  ACCELERATION OF MATURITY.

 

In the case of an Event of Default under Section 6.1(g) or (h) with respect to the Parent, any Restricted Subsidiary of the Parent that is a Significant Subsidiary or any group of Restricted Subsidiaries of the Parent that, taken together, would constitute a Significant Subsidiary, all outstanding Securities of such Series will become due and payable immediately without further action or notice.  If any other Event of Default occurs and is continuing, the Trustee or the holders of at least 25% in aggregate principal amount of the then outstanding Securities of a Series may declare all the Securities of such Series to be due and payable immediately.

 

Section 6.3.  COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE.

 

The Company covenants that if

 

(a)                                 default is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues for a period of 30 days, or

 

(b)                                 default is made in the payment of principal of any Security at the Maturity thereof, or

 

(c)                                  default is made in the deposit of any sinking fund payment when and as due by the terms of a Security,

 

THEN, 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 interest and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal or any overdue interest, at the rate or rates prescribed therefor in such 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, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon such Securities and collect the moneys adjudged or deemed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated.

 

If an Event of Default with respect to any Securities of any Series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such Series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce

 

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any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

 

Section 6.4.  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, but excluding any solvent reorganization or arrangement of capital pursuant to applicable corporations legislation, 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 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 of the Holders allowed in such judicial proceeding,

 

(b)                                 to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same, and

 

(c)                                  any custodian, receiver, assignee, trustee, liquidator, sequestrator or other 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 to 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 the Trustee under Section 7.7.

 

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 plan of reorganization, arrangement, adjustment or composition 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 6.5.  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 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, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.

 

Section 6.6.  APPLICATION OF MONEY COLLECTED.

 

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 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 7.7;

 

Second: To the payment of the amounts then due and unpaid for principal of and interest on the Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference

 

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or priority of any kind, according to the amounts due and payable on such Securities for principal and interest, respectively; and

 

Third: To the Company.

 

Section 6.7.  LIMITATION ON SUITS.

 

No Holder of any Security of any Series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, 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 with respect to the Securities of that Series;

 

(b)                                 the Holders of not less than 25% in principal amount of the outstanding Securities of that Series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

 

(c)                                  such Holder or Holders offer, and if requested, provide to the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities to be incurred in compliance with such request;

 

(d)                                 the Trustee does not comply with such request within 60 days after its receipt of such request and offer of security or indemnity; and

 

(e)                                  during such 60-day period, Holders of a majority in principal amount of the outstanding Securities of that Series do not give the Trustee a direction inconsistent with such written request;

 

it being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders.

 

Section 6.8.  UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL AND INTEREST.

 

Subject to Article XIII hereof, notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and premium and interest, if any, on such Security on the Stated Maturity or Stated Maturities 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 6.9.  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, subject to any determination in such proceeding, the Company, the Trustee and the Holders shall 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 6.10.  RIGHTS AND REMEDIES CUMULATIVE.

 

Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no right or remedy herein conferred upon or reserved to the Trustee or to the

 

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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 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 6.11.  DELAY OR OMISSION NOT WAIVER.

 

No delay or omission of the Trustee or of any Holder of any Securities 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 6.12.  CONTROL BY HOLDERS.

 

The Holders of a majority in principal amount of the outstanding Securities of any Series 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, with respect to the Securities of such Series, provided that:

 

(a)                                 such direction shall not be in conflict with any rule of law or with this Indenture,

 

(b)                                 the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction, and

 

(c)                                  subject to the provisions of Section 6.1, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer of the Trustee, determine that the proceeding so directed would reasonably be expected to expose the Trustee to personal liability.

 

Section 6.13.  WAIVER OF PAST DEFAULTS.

 

The holders of a majority in aggregate principal amount of the then outstanding Securities of any Series by written notice to the Trustee may, on behalf of the holders of all of the Securities of such Series, rescind an acceleration or waive any existing Default or Event of Default and its consequences under the Indenture, if the rescission would not conflict with any judgment or decree, except a continuing Default or Event of Default in the payment of principal of, premium on, if any, or interest on, the Securities of such Series.  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 Event of Default or impair any right consequent thereon.

 

Section 6.14.  UNDERTAKING FOR COSTS.

 

All parties to this Indenture agree, and each Holder of any Security by his 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 and expenses, 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 of any Series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of or interest on any Security on or after the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption date).

 

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ARTICLE VII.
 TRUSTEE

 

Section 7.1.  DUTIES OF TRUSTEE.

 

(a)                                 If an Event of Default has occurred and is continuing, the Trustee shall exercise 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.

 

(b)                                 Except during the continuance of an Event of Default:

 

(i)                                     The Trustee need perform only those duties that are specifically set forth in this Indenture and no others; and

 

(ii)                                  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 Officers’ Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of this Indenture; HOWEVER, in the case of any such Officers’ Certificates or Opinions of Counsel which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall examine such Officers’ Certificates and Opinions of Counsel to determine whether or not they conform to the requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein).

 

(c)                                  The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that:

 

(i)                                     This paragraph does not limit the effect of paragraph (b) of this Section;

 

(ii)                                  The Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts;

 

(iii)                               The Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it with respect to Securities of any Series in good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding Securities of such Series 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 with respect to the Securities of such Series;

 

(d)                                 Every provision of this Indenture that in any way relates to the Trustee is subject to paragraph (a), (b) and (c) of this Section;

 

(e)                                  The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against any loss, liability or expense;

 

(f)                                   The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company.  Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law;

 

(g)                                  No provision of this Indenture shall require the Trustee to risk its own funds or otherwise incur any financial liability in the performance of any of its duties, 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 is not reasonably assured to it; and

 

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(h)                                 The Paying Agent, the Registrar and any authenticating agent shall be entitled to the protections, immunities and standard of care as are set forth in paragraphs (b), (c), (e), (f) and (g) of this Section with respect to the Trustee.

 

Section 7.2.  RIGHTS OF TRUSTEE.

 

(a)                                 The Trustee may conclusively rely on and shall be protected in acting or refraining from acting upon any document believed by it to be genuine and to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or matter stated in the document.

 

(b)                                 Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel.  The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel.

 

(c)                                  The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care.  No Depository shall be deemed an agent of the Trustee and the Trustee shall not be responsible for any act or omission by any Depository.

 

(d)                                 The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers.

 

(e)                                  The Trustee may consult with counsel of its selection 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.

 

(f)                                   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 of Securities unless such Holders shall have offered to the Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

 

(g)                                  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 at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation.

 

(h)                                 The Trustee shall not be deemed to have notice of any Default or Event of Default (other than a payment default under Sections 6.1(a) or 6.1(b)) unless a Responsible Officer of the Trustee has received written notice of any event which is in fact such a default in accordance with Section 11.2.

 

(i)                                     The Trustee may request that the Company deliver an Officers’ Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture, which Officers’ Certificate may be signed by any Person authorized to sign an Officers’ Certificate, including any Person specified as so authorized in any such certificate previously delivered and not superseded.

 

(j)                                    The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder.

 

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(k)                                 In no event shall the Trustee be responsible or liable for special, punitive, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

 

Section 7.3.  INDIVIDUAL RIGHTS OF TRUSTEE.

 

The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or an Affiliate with the same rights it would have if it were not Trustee.  However, in the event that the Trustee acquires any conflicting interest it must eliminate such conflict within 90 days, apply to the SEC for permission to continue as trustee or resign.  Any Agent may do the same with like rights.  The Trustee is also subject to Sections 7.10 and 7.11.

 

Section 7.4.  TRUSTEE’S DISCLAIMER.

 

The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities, and it shall not be responsible for any statement in the Securities other than its authentication.

 

Section 7.5.  NOTICE OF DEFAULTS.

 

If a Default or Event of Default occurs and is continuing with respect to the Securities of any Series and if it is actually known to a Responsible Officer of the Trustee as described in Section 7.2(h) hereof, the Trustee shall mail to each Securityholder of the Securities of that Series and, if any Bearer Securities are outstanding, publish on one occasion in an Authorized Newspaper, notice of a Default or Event of Default within 90 days after it occurs or, if later, after a Responsible Officer of the Trustee has actual knowledge of such Default or Event of Default.  Except in the case of a Default or Event of Default in payment of principal of or interest on any Security of any Series, the Trustee may withhold the notice if and so long as its corporate trust committee or a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Securityholders of that Series, except a Default or Event of Default relating to the payment of principal of, premium on, if any, and interest.

 

Section 7.6.  REPORTS BY TRUSTEE TO HOLDERS.

 

Within 60 days after May 15 in each year, the Trustee shall transmit by mail to all Securityholders, as their names and addresses appear on the register kept by the Registrar and, if any Bearer Securities are outstanding, publish in an Authorized Newspaper, a brief report dated as of such May 15, in accordance with, and to the extent required under, TIA Section 313.

 

A copy of each report at the time of its mailing to Securityholders of any Series shall be filed with the SEC and each stock exchange on which the Securities of that Series are listed.  The Company shall promptly notify the Trustee when Securities of any Series are listed on any stock exchange or any delisting thereof.

 

Section 7.7.  COMPENSATION AND INDEMNITY.

 

The Company shall pay to the Trustee (acting in any capacity hereunder) from time to time such compensation for its services as the Company and the Trustee shall agree in writing.  The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred by it.  Such expenses shall include the reasonable compensation and expenses of the Trustee’s agents and counsel.

 

The Company shall fully indemnify the Trustee or any predecessor Trustee and their agents (including the cost of defending itself against any claim (whether asserted by the Company, or any Holder or any other Person)) against any and all loss, damages, claims, liability or expense, including taxes (other than taxes based upon, measured by or determined by the income of the Trustee) incurred by it except as set forth in the next paragraph in the performance of their duties under this Indenture as Trustee or Agent.  The Trustee shall notify the

 

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Company promptly of any claim of which a Responsible Officer has received notice for which it may seek indemnity.  The Company shall defend the claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld.  This indemnification shall apply to officers, directors, employees, shareholders and agents of the Trustee and any Agent.

 

The Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee or by any officer, director or employee of the Trustee caused by its own negligence or willful misconduct.

 

To secure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities of any Series on all money or property held or collected by the Trustee, except that held in trust to pay principal and interest on particular Securities of that Series.

 

When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1(g) or (h) (or any comparable provisions set forth in a supplemental indenture) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 

The Trustee shall comply with the provisions of TIA Section 313(b)(2) to the extent applicable.

 

The provisions of this Section shall survive the termination of this Indenture and the resignation or removal of the Trustee.

 

Section 7.8.  REPLACEMENT OF TRUSTEE.

 

A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section.

 

The Trustee may resign with respect to the Securities of one or more Series by so notifying the Company in writing.  The Holders of a majority in principal amount of the Securities of any Series may remove the Trustee with respect to that Series by so notifying the Trustee and the Company in writing.

 

The Company may remove the Trustee with respect to Securities of one or more Series if:

 

(a)                                 the Trustee fails to comply with Section 7.10;

 

(b)                                 the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law;

 

(c)                                  a Custodian or public officer takes charge of the Trustee or its property; or

 

(d)                                 the Trustee becomes incapable of acting.

 

If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee.  Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

 

If a successor Trustee with respect to the Securities of any one or more Series does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of at least 10% in principal amount of the Securities of the applicable Series may petition any court of competent jurisdiction at the expense of the Company for the appointment of a successor Trustee.

 

If the Trustee with respect to the Securities of any one or more Series fails to comply with Section 7.10, any Securityholder of the applicable Series, who has been a Securityholder for at least six months, may

 

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petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company.  Promptly after that, the retiring Trustee shall, upon payment of its charges hereunder, transfer all property held by it as Trustee to the successor Trustee subject to the lien provided for in Section 7.7, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee with respect to each Series of Securities for which it is acting as Trustee under this Indenture.  A successor Trustee shall mail a notice of its succession to each Securityholder of each such Series and, if any Bearer Securities are outstanding, publish such notice on one occasion in an Authorized Newspaper.

 

Notwithstanding replacement of the Trustee pursuant to this Section 7.8, the Company’s obligations under Section 7.7 hereof shall continue for the benefit of the retiring trustee with respect to expenses and liabilities incurred by it prior to such replacement.

 

Section 7.9.  SUCCESSOR TRUSTEE BY MERGER, ETC.

 

If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the successor corporation without any further act shall be the successor Trustee.

 

Section 7.10.  ELIGIBILITY; DISQUALIFICATION.

 

This Indenture shall always have a Trustee who satisfies the requirements of TIA Section 310(a)(1), (2) and (5).  The Trustee shall always have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition.  The Trustee shall comply with TIA Section 310(b).

 

Section 7.11.  PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

 

The Trustee is subject to TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b).  A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated.

 

ARTICLE VIII.
 LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section 8.1.  OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT DEFEASANCE.

 

The Company may, at the option of its Board of Directors evidenced by a resolution set forth in an Officers’ Certificate, at any time, elect to have either Section 8.2 or 8.3 hereof be applied to all outstanding Securities of a Series upon compliance with the conditions set forth below in this Article VIII.

 

Section 8.2.  LEGAL DEFEASANCE AND DISCHARGE.

 

Upon the Company’s exercise under Section 8.1 hereof of the option applicable to this Section 8.2, each of the Company, the Parent and the Guarantors, if any, shall, subject to the satisfaction of the conditions set forth in Section 8.4 hereof, be deemed to have been discharged from its obligations with respect to all outstanding Securities of such Series and related Note Guarantees on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that the Company shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Securities of such Series, which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.5 hereof and the other Sections of this Indenture referred to in (a) and (b) below, and to have satisfied all its other obligations under such Securities and this Indenture as it relates to such Securities (and the Trustee, on demand of and at the expense of the

 

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Company, shall execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder: (a) the rights of Holders of outstanding Securities of such Series to receive solely from the trust fund described in Section 8.4 hereof, and as more fully set forth in such section, payments in respect of the principal of, premium, if any, and interest on such Securities when such payments are due, (b) the Company’s, the Parent’s and Guarantors’ obligations with respect to such Securities under Article II hereof, (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Company’s, the Parent’s and the Guarantors’ obligations in connection therewith and (d) this Article VIII.  Subject to compliance with this Article VIII, the Company may exercise its option under this Section 8.2 notwithstanding the prior exercise of its option under Section 8.3 hereof.

 

Section 8.3.  COVENANT DEFEASANCE.

 

Upon the Company’s exercise under Section 8.1 hereof of the option applicable to this Section 8.3, each of the Company and the Guarantors, if any, shall, subject to the satisfaction of the conditions set forth in Section 8.4 hereof, be released from its obligations under the covenants specified pursuant to Section 2.2 hereof and Article V hereof with respect to the outstanding Securities of such Series and related Note Guarantees on and after the date the conditions set forth below are satisfied (hereinafter, “Covenant Defeasance”), and such Securities shall thereafter be deemed 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 accounting purposes).  For this purpose, Covenant Defeasance means that, with respect to the outstanding Securities of such Series, 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 6.1 hereof, but, except as specified above, the remainder of this Indenture, such Securities and the related Note Guarantees, if any, shall be unaffected thereby.  In addition, upon the Company’s exercise under Section 8.1 hereof of the option applicable to this Section 8.3 hereof, subject to the satisfaction of the conditions set forth in Section 8.4 hereof, Sections 6.1(c) through 6.1(f) and 6.1(i) hereof (or any comparable provisions set forth in a supplemental indenture) shall not constitute Events of Default.

 

Section 8.4.  CONDITIONS TO LEGAL OR COVENANT DEFEASANCE.

 

The following shall be the conditions to the application of either Section 8.2 or 8.3 hereof to the outstanding Securities of such Series:

 

In order to exercise either Legal Defeasance or Covenant Defeasance:

 

(a)                                 the Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders, cash in Canadian dollars, non-callable Government Securities, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay the principal of, premium, if any, and interest on the outstanding Securities of such Series on the Stated Maturity or on the applicable redemption date, as the case may be, of such principal or installment of principal of, premium, if any, or interest on the outstanding Securities of such Series;

 

(b)           in the case of an election under Section 8.2 hereof, the Company shall have delivered to the Trustee an opinion of counsel in the United States (which counsel may be an employee of the Company or any Subsidiary of the Company) reasonably acceptable to the Trustee confirming that (A) the Company has received from, or there has been published by, the United States Internal Revenue Service a ruling or (B) since the date hereof, 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 of counsel shall confirm that, the Holders of the outstanding Securities of such Series will not recognize income, gain or loss for United States federal income tax purposes as a result of such Legal 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 Legal Defeasance had not occurred;

 

(c)           in the case of an election under Section 8.3 hereof, the Company shall have delivered to the Trustee an opinion of counsel in the United States (which counsel may be an employee of the Company or any Subsidiary of the Company) reasonably acceptable to the Trustee confirming that the Holders of the outstanding Securities of such Series 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;

 

(d)                                 in the case of an election under Section 8.2 or 8.3 hereof, the Company shall have delivered to the Trustee an opinion of counsel in Canada  (which counsel may be an employee of the Company or any Subsidiary of the Company) reasonably acceptable to the Trustee confirming that the Holders of the outstanding Securities of such Series will not recognize income, gain or loss for Canadian income tax purposes as a result of such Legal Defeasance or Covenant Defeasance, as the case may be, and will be subject to Canadian federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance or Covenant Defeasance, as the case may be, had not occurred;

 

(e)                                  no Default or Event of Default shall have occurred and be continuing (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit (and any

 

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similar concurrent deposit relating to other Indebtedness), and the granting of Liens to secure such borrowings) on the date of the deposit described in Section 8.4(a);

 

(f)                                   such Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under, any material agreement or instrument (other than this Indenture and any other agreement, including a supplemental indenture or note, governing the Securities of the Series being defeased, discharged or replaced) to which the Parent or any of its Subsidiaries is a party or by which the Parent or any of its Subsidiaries is bound;

 

(g)                                  the Company shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the intent of preferring the Holders of such Securities over any other creditors of the Company with the intent of defeating, hindering, delaying or defrauding creditors of the Company or others; and

 

(h)                                 the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for or relating to the Legal Defeasance or the Covenant Defeasance have been complied with.

 

Section 8.5.  DEPOSITED MONEY AND GOVERNMENT SECURITIES TO BE HELD IN TRUST; OTHER MISCELLANEOUS PROVISIONS.

 

Subject to Section 8.6 hereof, all money and non-callable Government Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 8.5, the “Trustee”) pursuant to Section 8.4 hereof in respect of the outstanding Securities of a Series subject to a Legal Defeasance or a Covenant Defeasance 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 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 principal, premium, if any, and interest, but such money need not be segregated from other funds except to the extent required by law.

 

The Company and the Guarantors shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable Government Securities deposited pursuant to Section 8.4 hereof 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 of a Series subject to a Legal Defeasance or a Covenant Defeasance.

 

Anything in this Article VIII to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon the request of the Company any money or non-callable Government Securities held by it as provided in Section 8.4 hereof 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 8.4(a) hereof), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

Section 8.6.  REPAYMENT TO COMPANY.

 

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, premium, if any, or interest, if any, on any Securities of a Series subject to a Legal Defeasance or a Covenant Defeasance and remaining unclaimed for two years after such principal, and premium, if any, or interest, if any, have become due and payable shall be paid to the Company on its 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; PROVIDED, HOWEVER, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in The New York Times and The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a date specified therein,

 

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which shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining will be repaid to the Company.

 

Section 8.7.  REINSTATEMENT.

 

If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable Government Securities in accordance with Section 8.2 or 8.3 hereof, as the case may be, 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, the Securities of such Series and the related Note Guarantees, if any, shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.2 or 8.3 hereof until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 8.2 or 8.3 hereof, as the case may be; PROVIDED, HOWEVER, that, if the Company make any payment of principal of, premium, if any, or interest, if any, on any such 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 IX.
 AMENDMENTS AND WAIVERS

 

Section 9.1.  WITHOUT CONSENT OF HOLDERS.

 

Notwithstanding Section 9.2 of the Indenture, without the consent of any Securityholder, the Company, the Parent, the Guarantors and the Trustee may amend or supplement the Indenture or the Securities:

 

(a)                                 to cure any ambiguity, defect or inconsistency,

 

(b)                                 to provide for uncertificated Securities in addition to or in place of certificated Securities (provided that the uncertificated Securities are issued in registered form for purposes of Section 163(f) of the U.S. Internal Revenue Code),

 

(c)                                  to provide for the assumption of the Company’s, the Parent’s or any Guarantor’s obligations to Holders of a Security in the case of a merger, consolidation or amalgamation,

 

(d)                                 to make any change that would provide any additional rights or benefits to the Holders of a Security (including providing for additional Note Guarantees) or that does not adversely affect the legal rights under the Indenture of any such Securityholder,

 

(e)                                  to comply with requirements of the SEC in order to effect or maintain the qualification of the Indenture under the TIA, or

 

(f)                                   to conform the text of the Indenture or a supplemental indenture, the Securities of a Series or the Note Guarantees to any provision of a summary of the terms of the Indenture, a supplemental indenture for such Securities, such Securities or Note Guarantees to the extent included in a prospectus, prospectus supplement or other offering document in respect of the offering of such Securities and that such provision in such summary was intended to be a verbatim recitation of a provision of the applicable Indenture, supplemental indenture, the Securities of a Series or the Note Guarantees, which intent may be evidenced by an Officers’ Certificate to that effect.

 

Upon the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental Indenture, and upon receipt by the Trustee of the documents described in Section 7.2 of the Indenture, the Trustee shall join with the Company, the Parent and the Guarantors in the execution of any amended or supplemental Indenture authorized or permitted by the terms of this Indenture and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into such amended or supplemental Indenture that affects its own rights, duties or immunities under this Indenture or otherwise.

 

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Section 9.2.  WITH CONSENT OF HOLDERS.

 

Except as provided in Section 9.1 and Section 9.3 of the Indenture, the Indenture or the Securities of a Series may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the Securities of each Series then outstanding affected by the supplemental indenture implementing such amendment or supplement (including consents obtained in connection with a tender offer or exchange offer for Securities), and, subject to Sections 6.8 and 6.12 of the Indenture, any existing Default or Event of Default (other than a Default or Event of Default in the payment of the principal of, premium, if any, or interest on the Securities of such Series, except a payment default resulting from an acceleration that has been rescinded) or compliance with any provision of the Indenture or the Securities of such Series may be waived with the consent of the Holders of a majority in principal amount of the then outstanding Securities of each Series affected by such supplemental indenture implementing such amendment or supplement (including consents obtained in connection with a tender offer or exchange offer for Securities).

 

It shall not be necessary for the consent of the Holders of Securities under this Section 9.2 to approve the particular form of any proposed amendment or waiver, but it shall be sufficient if such consent approves the substance thereof.  After a supplemental indenture or waiver under this Section 9.2 becomes effective, the Company shall mail to the Holders of Securities affected thereby and, and if any Bearer Securities affected thereby are outstanding, publish on one occasion in an Authorized Newspaper, a notice briefly describing the supplemental indenture or waiver.  Any failure by the Company to mail or publish such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver.

 

Upon the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental Indenture, and upon the filing with the Trustee of evidence reasonably satisfactory to the Trustee of the consent of the Holders of Securities as aforesaid, and upon receipt by the Trustee of the documents described in Section 7.2 hereof, the Trustee shall join with the Company, the Parent and the Guarantors in the execution of such amended or supplemental Indenture unless such amended or supplemental Indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such amended or supplemental Indenture.

 

Section 9.3.  LIMITATIONS.

 

Without the consent of each Securityholder affected, an amendment or waiver may not (with respect to any Securities held by a non-consenting Holder of Securities):

 

(a)                                 reduce the principal amount of Securities whose Holders must consent to an amendment, supplement or waiver;

 

(b)                                 reduce the principal of or change the fixed maturity of any Security or alter any of the provisions with respect to the redemption of any Security in a manner adverse to the Holders of such Security;

 

(c)                                  reduce the rate of or change the time for payment of interest on any Security;

 

(d)                                 waive a Default or Event of Default in the payment of principal of or premium, if any, or interest on any Security (except a rescission of acceleration of the Securities of any Series by the Holders of at least a majority in aggregate principal amount of the then outstanding Securities of such Series and a waiver of the payment default that resulted from such acceleration);

 

(e)                                  make any Security payable in money other than that stated in such Security;

 

(f)                                   make any change in the provisions of the Indenture relating to waivers of past Defaults or the rights of Holders of Securities of any Series to receive payments of principal of or premium, if any, or interest on the Securities;

 

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(g)                                  waive a redemption payment with respect to any Security (other than a payment required by any “Change of Control” or “Asset Sale” covenant set forth in a supplemental indenture relating to Securities of a Series);

 

(h)                                 except pursuant to the Indenture, release any Guarantor from its obligations under its Note Guarantee, or change any Note Guarantee in any manner that would materially adversely affect the Securityholders; or

 

(i)                                     make any change in the foregoing amendment and waiver provisions.

 

It shall not be necessary for the consent of the Holders of Securities under this Section 9.3 to approve the particular form of any proposed amendment or waiver, but it shall be sufficient if such consent approves the substance thereof.

 

Section 9.4.  COMPLIANCE WITH TRUST INDENTURE ACT.

 

Every amendment to this Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto that complies with the TIA as then in effect.

 

Section 9.5.  REVOCATION AND EFFECT OF CONSENTS.

 

Until an amendment or waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security.  However, any such Holder or subsequent Holder may revoke the consent as to his Security or portion of a Security if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective.

 

Any amendment or waiver once effective shall bind every Securityholder of each Series affected by such amendment or waiver unless it is of the type described in any of clauses (a) through (h) of Section 9.3.  In that case, the amendment or waiver shall bind each Holder of a Security who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security.

 

Section 9.6.  NOTATION ON OR EXCHANGE OF SECURITIES.

 

The Trustee may place an appropriate notation about an amendment or waiver on any Security of any Series thereafter authenticated.  The Company in exchange for Securities of that Series may issue and the Trustee shall authenticate upon request new Securities of that Series that reflect the amendment or waiver.

 

Section 9.7.  TRUSTEE TO SIGN AMENDMENTS; TRUSTEE PROTECTED.

 

The Trustee shall sign any amended or supplemental Indenture authorized pursuant to this Article IX if the amendment or supplement does not adversely affect the rights, duties, liabilities or immunities of the Trustee.  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 provided with, and (subject to Section 7.1) shall be fully protected in relying upon, an Opinion of Counsel and Officers’ Certificate stating that the execution of such supplemental indenture is authorized or permitted by this Indenture, complying with the requirements of Sections 10.4 and 10.5 hereof, and covering such other matters as the Trustee may reasonably require.

 

Promptly after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Trustee shall transmit a copy of such supplemental indenture or a notice provided by the Company to the Trustee setting forth in general terms the substance of such supplemental indenture, to the Securityholders of all series affected thereby.  In the case of certificated Securities, such notice shall be sent by mail, first class postage prepaid, to the Securityholders of all series affected thereby as their names

 

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and addresses appear upon the Security Register.  Any failure of the Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

 

ARTICLE X.

SATISFACTION AND DISCHARGE

 

Section 10.1.         SATISFACTION AND DISCHARGE.

 

This Indenture will be discharged and will cease to be of further effect as to all Securities of a Series, when:

 

(a)           either:

 

(i)            all Securities of such series that have been authenticated, except lost, stolen or destroyed Securities of such series that have been replaced or paid and Securities of such series for whose payment money has been deposited in trust and thereafter repaid to the Company, have been delivered to the Trustee for cancellation; or

 

(ii)           all Securities of such series that have not been delivered to the Trustee for cancellation have become due and payable by reason of the mailing of a notice of redemption or otherwise or will become due and payable within one year and the Company or any Guarantor has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust solely for the benefit of the holders of such Securities, cash in Canadian dollars, non-callable Government Securities, or a combination thereof, in amounts as will be sufficient, without consideration of any reinvestment of interest, to pay and discharge the entire Indebtedness on the Securities of such series not delivered to the Trustee for cancellation for principal of, premium on, if any, and interest on, the Securities of such series to the date of maturity or redemption;

 

(b)           in respect of clause (a)(ii), no Default or Event of Default has occurred and is continuing on the date of the deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit and any similar deposit relating to other Indebtedness and, in each case, the granting of Liens to secure such borrowings) and the deposit will not result in a breach or violation of, or constitute a default under, any other instrument to which the Company or any Guarantor is a party or by which the Company or any Guarantor is bound (other than with respect to the borrowing of funds to be applied concurrently to make the deposit required to effect such satisfaction and discharge and any similar concurrent deposit relating to other Indebtedness, and in each case the granting of Liens to secure such borrowings);

 

(c)           the Company or any Guarantor has paid or caused to be paid all sums payable by it under this Indenture;

 

(d)           the Company has delivered irrevocable instructions to the Trustee under this Indenture to apply the deposited money toward the payment of the Securities of such series at maturity or on the redemption date, as the case may be; and

 

(e)           the Company has delivered an Officers’ Certificate and an Opinion of Counsel to the Trustee stating that all conditions precedent under this Indenture to the satisfaction and discharge of this Indenture have been satisfied.

 

ARTICLE XI.
 MISCELLANEOUS

 

Section 11.1.  TRUST INDENTURE ACT CONTROLS.

 

If any provision of this Indenture limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Indenture by the TIA, such required or deemed provision shall control.

 

Section 11.2.  NOTICES.

 

Any notice or communication by the Company, the Parent, any Guarantor or the Trustee to the others is duly given if in writing and delivered in Person or mailed by first class mail (registered or certified, return receipt requested), telecopier or overnight air courier guaranteeing next day delivery, to the others’ address:

 

If to the Company, the Parent or any Guarantor:

 

Iron Mountain Incorporated

745 Atlantic Avenue

Boston, MA 02111

Attention: Chief Financial Officer

Telecopier No.: (617) 350-7881

 

With a copy to:

 

Sullivan & Worcester LLP

One Post Office Square

Boston, MA 02109

Telecopier No.: (617) 338-2880

Attention: William J. Curry, Esq.

 

If to the Trustee:

 

[      ]

 

The Company, the Parent any Guarantor or the Trustee, by notice to the others may designate additional or different addresses for subsequent notices or communications.

 

All notices and communications (other than those sent to Securityholders) must reference the Securities and this Indenture and shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied; and the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.

 

Any notice or communication to a Securityholder shall be mailed by first class mail, or by overnight air courier guaranteeing next day delivery to its address shown on the register kept by the Registrar.  Any notice or communication shall also be so mailed to any Person described in TIA Section 313(c), to the extent required by the TIA.  Failure to mail a notice or communication to a Securityholder or any defect in it shall not affect its sufficiency with respect to other Securityholders.

 

If a notice or communication is mailed in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives it.

 

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If the Company or any Guarantor mails a notice or communication to Securityholders, it shall mail a copy to the Trustee and each Agent at the same time.

 

Section 11.3.  COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.

 

Securityholders of any Series may communicate pursuant to TIA Section 312(b) with other Securityholders of that Series or any other Series with respect to their rights under this Indenture or the Securities of that Series or all Series.  The Company, the Guarantors, the Trustee, the Registrar and anyone else shall have the protection of TIA Section 312(c).

 

Section 11.4.  CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.

 

Upon any request or application by the Company or any Guarantor to the Trustee to take any action under this Indenture, the Company or such Guarantor shall furnish to the Trustee:

 

(a)                                 an Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and

 

(b)                                 an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

 

Section 11.5.  STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.

 

Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e) and shall include:

 

(a)                                 a statement that the Person making such certificate or opinion has read such covenant or condition;

 

(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 such Person, 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; and

 

(d)                                 a statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with.

 

Section 11.6.  RULES BY TRUSTEE AND AGENTS.

 

The Trustee may make reasonable rules for action by or a meeting of Securityholders of one or more Series.  Any Agent may make reasonable rules and set reasonable requirements for its functions.

 

Section 11.7.  LEGAL HOLIDAYS.

 

Unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture for a particular Series, a “Legal Holiday” is any day that is not a Business Day.  If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.

 

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Section 11.8.  NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES AND STOCKHOLDERS.

 

No director, manager, officer, employee, incorporator, stockholder or member of the Company, the Parent or any Restricted Subsidiary, as such, shall have any liability for any obligations of the Company, the Parent or any Restricted Subsidiary under the Securities of any Series, the Note Guarantees or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder of Securities of any Series by accepting the Security and the Note Guarantees waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Securities of any Series and the Note Guarantees.

 

Section 11.9.  COUNTERPARTS.

 

This Indenture may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

Section 11.10.  GOVERNING LAWS.

 

THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

 

Section 11.11.  NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

 

This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary.  Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section 11.12.  SUCCESSORS.

 

All agreements of the Company, the Parent and the Guarantors in this Indenture and the Securities and the Note Guarantees shall bind their respective successors.  All agreements of the Trustee in this Indenture shall bind its successors.

 

Section 11.13.  SEVERABILITY.

 

In case any provision in this Indenture, the Securities or the Note Guarantees, if any, 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 11.14.  TABLE OF CONTENTS, HEADINGS, ETC.

 

The Table of Contents, Cross Reference Table, and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

 

Section 11.15.  SECURITIES IN A FOREIGN CURRENCY OR IN EUROS.

 

Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate delivered pursuant to Section 2.2 of this Indenture with respect to a particular Series of Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified percentage in aggregate principal amount of Securities of all Series or all Series affected by a particular action at the time outstanding and, at such time, there are outstanding Securities of any Series which are denominated in a coin or

 

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currency other than Dollars (including Euros), then the principal amount of Securities of such Series which shall be deemed to be outstanding for the purpose of taking such action shall be that amount of Dollars that could be obtained for such amount at the Market Exchange Rate at such time.  For purposes of this Section 11.15, “Market Exchange Rate” shall mean the noon Dollar buying rate in New York City for cable transfers of that currency as published by the Federal Reserve Bank of New York; PROVIDED, HOWEVER, in the case of Euros, Market Exchange Rate shall mean the rate of exchange determined by the Commission of the European Union (or any successor thereto) as published in the Official Journal of the European Union (such publication or any successor publication, the “Journal”).  If such Market Exchange Rate is not available for any reason with respect to such currency, the Trustee or such foreign exchange agent appointed by the Company shall use, in its sole discretion and without liability on its part, such quotation of the Federal Reserve Bank of New York or, in the case of Euros, the rate of exchange as published in the Journal, as of the most recent available date, or quotations or, in the case of Euros, rates of exchange from one or more major banks in The City of New York or in the country of issue of the currency in question or, in the case of Euros, in Luxembourg or such other quotations or, in the case of Euros, rates of exchange as such foreign exchange agent appointed by the Company, upon consultation with the Company, shall deem appropriate.  The provisions of this paragraph shall apply in determining the equivalent principal amount in respect of Securities of a Series denominated in currency other than Dollars in connection with any action taken by Holders of Securities pursuant to the terms of this Indenture.

 

All decisions and determinations of such foreign exchange agent appointed by the Company regarding the Market Exchange Rate or any alternative determination provided for in the preceding paragraph shall be in its sole discretion and shall, in the absence of manifest error, be conclusive to the extent permitted by law for all purposes and irrevocably binding upon the Company and all Holders.

 

Section 11.16.  JUDGMENT CURRENCY.

 

The Company agrees, to the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any court it is necessary to convert the sum due in respect of the principal of or interest or other amount on the Securities of any Series (the “Required Currency”) into a currency in which a judgment will be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which in accordance with normal banking procedures such foreign exchange agent appointed by the Company could purchase in The City of New York the Required Currency with the Judgment Currency on the day on which final unappealable judgment is entered, unless such day is not a New York Banking Day, then, the rate of exchange used shall be the rate at which in accordance with normal banking procedures such foreign exchange agent appointed by the Company could purchase in The City of New York the Required Currency with the Judgment Currency on the New York Banking Day preceding the day on which final unappealable judgment is entered and (b) its obligations under this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, any recovery pursuant to any judgment (whether or not entered in accordance with subsection (a)), in any currency other than the Required Currency, except to the extent that such tender or recovery shall result in the actual receipt, by the payee, of the full amount of the Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being obtained for any other sum due under this Indenture.  For purposes of the foregoing, “New York Banking Day” means any day except a Saturday, Sunday or a legal holiday in The City of New York on which banking institutions are authorized or required by law, regulation or executive order to close.

 

Section 11.17.  WAIVER OF JURY TRIAL.

 

EACH OF THE COMPANY, PARENT AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

 

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Section 11.18.  SUBMISSION TO JURISDICTION; VENUE.

 

THE COMPANY AND EACH GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE GUARANTEES AND THE NOTES, AND IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS.  THE COMPANY AND EACH GUARANTOR IRREVOCABLY WAIVES, TO THE FULLEST EXTENT THAT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, AND ANY OBJECTION WHICH MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE TRUSTEE OR ANY HOLDER OF THE NOTES TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE COMPANY OR GUARANTOR IN ANY OTHER JURISDICTION.

 

Section 11.19.  FORCE MAJEURE.

 

In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

ARTICLE XII.
 SINKING FUNDS

 

Section 12.1.  APPLICABILITY OF ARTICLE.

 

The provisions of this Article shall be applicable to any sinking fund for the retirement of the Securities of a Series, except as otherwise permitted or required by any form of Security of such Series issued pursuant to this Indenture.

 

The minimum amount of any sinking fund payment provided for by the terms of the Securities of any Series is herein referred to as a “mandatory sinking fund payment” and any other amount provided for by the terms of Securities of such Series is herein referred to as an “optional sinking fund payment.” If provided for by the terms of Securities of any Series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 12.2.  Each sinking fund payment shall be applied to the redemption of Securities of any Series as provided for by the terms of the Securities of such Series.

 

Section 12.2.  SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.

 

The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant to the terms of such Securities (1) deliver outstanding Securities of such Series to which such sinking fund payment is applicable (other than any of such Securities previously called for mandatory sinking fund redemption) and (2) apply as credit Securities of such Series to which such sinking fund payment is applicable and which have been redeemed either at the election of the Company pursuant to the terms of such Series of Securities (except pursuant to any mandatory sinking fund) or through the application of permitted optional sinking fund payments or other optional redemptions pursuant to the terms of such Securities, provided that such Securities have not been previously so credited.  Such Securities shall be received by the Trustee, together with an Officers’ Certificate with respect thereto, not later than 15 days prior to the date on which the Trustee begins the

 

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process of selecting Securities for redemption, and shall be credited for such purpose by the Trustee at the price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.  If as a result of the delivery or credit of Securities in lieu of cash payments pursuant to this Section 12.2, the principal amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee need not call Securities of such Series for redemption, except upon receipt of a Company Order that such action be taken, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding sinking fund payment, PROVIDED, HOWEVER, that the Trustee or such Paying Agent shall from time to time upon receipt of a Company Order pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of Securities of that Series purchased by the Company having an unpaid principal amount equal to the cash payment required to be released to the Company.

 

Section 12.3.  REDEMPTION OF SECURITIES FOR SINKING FUND.

 

Not less than 45 days (unless otherwise indicated in the Board Resolution, supplemental indenture hereto or Officers’ Certificate in respect of a particular Series of Securities) prior to each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee an Officers’ Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting of Securities of that Series pursuant to Section 11.2, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the Company shall thereupon be obligated to pay the amount therein specified.  Not less than 30 days (unless otherwise indicated in the Board Resolution, Officers’ Certificate or supplemental indenture in respect of a particular Series of Securities) before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.2 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.3.  Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6.

 

ARTICLE XIII.
 NOTE GUARANTEES

 

Section 13.1.  NOTE GUARANTEE.

 

The Parent and each Subsidiary that is a signatory hereto and each Subsidiary of the Parent that in accordance with the terms of any Securities of a Series issued hereunder pursuant to any supplement indenture relating to such Securities is required to become party to this Indenture as a guarantor (each, a “Guarantor”), upon execution of a supplemental indenture, hereby jointly and severally unconditionally guarantees to each Securityholder of a Security of a Series that is to be guaranteed and that has been authenticated and delivered by the Trustee irrespective of the validity or enforceability of this Indenture, the Securities or the obligations of the Company under this Indenture or the Securities, that: (i) the principal of and interest on the Securities will be paid in full when due, whether at the maturity or interest payment or mandatory redemption date, by acceleration, call for redemption or otherwise, and interest on the overdue principal of and interest, if any, on the Securities and all other obligations of the Company to the Securityholders or the Trustee under this Indenture or the Securities will be promptly paid in full or performed, all in accordance with the terms of this Indenture and the Securities; and (ii) in case of any extension of time of payment or renewal of any Securities or any of such other obligations, they will be paid in full when due or performed in accordance with the terms of the extension or renewal, whether at maturity, by acceleration or otherwise.  Failing payment when due of any amount so guaranteed for whatever reason, each Guarantor will be obligated to pay the same whether or not such failure to pay has become an Event of Default which could cause acceleration pursuant to Section 6.2 hereof.  Each Guarantor agrees that this is a guarantee of payment not a guarantee of collection.

 

Each Guarantor hereby agrees that its obligations with regard to this Note Guarantee shall be joint and several and unconditional, irrespective of the validity or enforceability of the Securities or the obligations of the Company under this Indenture, the absence of any action to enforce the same, the recovery of any judgment against the Company or any other obligor with respect to this Indenture, the Securities or the obligations of the Company under this Indenture or the Securities, any action to enforce the same or any other circumstances (other than

 

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complete performance) which might otherwise constitute a legal or equitable discharge or defense of a Guarantor.  Each Guarantor further, to the extent permitted by law, waives and relinquishes all claims, rights and remedies accorded by applicable law to guarantors and agrees not to assert or take advantage of any such claims, rights or remedies, including but not limited to: (a) any right to require the Trustee, the Securityholders or the Company (each, a “Benefited Party”) to proceed against the Company or any other Person or to proceed against or exhaust any security held by a Benefited Party at any time or to pursue any other remedy in any Benefited Party’s power before proceeding against such Guarantor; (b) the defense of the statute of limitations in any action hereunder or in any action for the collection of any Indebtedness or the performance of any obligation hereby guaranteed; (c) any defense that may arise by reason of the incapacity, lack of authority, death or disability of any other Person or the failure of a Benefited Party to file or enforce a claim against the estate (in administration, bankruptcy or any other proceeding) of any other Person; (d) demand, protest and notice of any kind including but not limited to notice of the existence, creation or incurring of any new or additional Indebtedness or obligation or of any action or non-action on the part of such Guarantor, the Company, any Benefited Party, any creditor of such Guarantor, the Company or on the part of any other Person whomsoever in connection with any Indebtedness or obligations hereby guaranteed; (e) any defense based upon an election of remedies by a Benefited Party, including but not limited to an election to proceed against such Guarantor for reimbursement; (f) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (g) any defense arising because of a Benefited Party’s election, in any proceeding instituted under Bankruptcy Law, of the application of 11 U.S.C. Section 1111 (b)(2); or (h) any defense based on any borrowing or grant of a security interest under 11 U.S.C. Section 364.  Each Guarantor hereby covenants that its Note Guarantee will not be discharged except by complete performance of the obligations contained in its Note Guarantee and this Indenture.

 

If any Securityholder or the Trustee is required by any court or otherwise to return to either the Company or any Guarantor, or any Custodian acting in relation to either the Company or such Guarantor, any amount paid by the Company or such Guarantor to the Trustee or such Securityholder, the applicable Note Guarantees, to the extent theretofore discharged, shall be reinstated and be in full force and effect.  Each Guarantor agrees that it will not be entitled to any right of subrogation in relation to the Securityholders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby.

 

Each Guarantor further agrees that, as between such Guarantor, on the one hand, and the Securityholders and the Trustee, on the other hand, (i) the maturity of the obligations guaranteed hereby may be accelerated as provided in Section 6.2 hereof for the purposes of this Note Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration as to the Company or any other obligor on the Securities of the obligations guaranteed hereby, and (ii) in the event of any declaration of acceleration of those obligations as provided in Section 6.2 hereof, those obligations (whether or not due and payable) will forthwith become due and payable by such Guarantor for the purpose of this Note Guarantee.

 

Section 13.2.  LIMITATION OF GUARANTOR’S LIABILITY.

 

Each Guarantor and, by its acceptance hereof, the Trustee and each Securityholder hereby confirm that it is its intention that the Note Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any Note Guarantee.  To effectuate the foregoing intention, each such Person hereby irrevocably agrees that the obligation of such Guarantor under its Note Guarantee under this Article XIII shall be limited to the maximum amount as will, after giving effect to such maximum amount and all other (contingent or other) liabilities of such Guarantor that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this Article XIII, result in the obligations of such Guarantor in respect of such maximum amount not constituting a fraudulent transfer or conveyance under said laws.  The Trustee and each Securityholder by accepting the benefits hereof, confirms its intention that, in the event of a bankruptcy, reorganization or other similar proceeding of the Company or any Guarantor in which concurrent claims are made upon such Guarantor hereunder, to the extent such claims will not be fully satisfied, each such claimant with a valid claim against the Company shall be entitled to a ratable share of all payments by such Guarantor in respect of such concurrent claims.

 

[Remainder of Page Left Blank Intentionally; Signature Pages Follow Immediately.]

 

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N WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of the date and year first written above.

 

	
 
    	
Iron   Mountain Canada Operations ULC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Its:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Iron   Mountain Incorporated
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Its:
    
	
 
    	
 
    
	
 
    	
[Names   of Guarantors]
    
	
 
    	
 
    
	
 
    	
[Name   of Trustee]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Its:
    

 

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