Document:

Exhibit 10.10
AMENDED AND RESTATED DIRECTOR NOMINATION AGREEMENT
THIS AMENDED AND RESTATED DIRECTOR NOMINATION AGREEMENT (this “Agreement”) is made and entered into as of September 1, 2020, by and among Jamf Holding Corp., a Delaware corporation (the “Company”), Vista Equity Partners Fund VI, L.P., Vista Equity Partners Fund VI-A, L.P., VEPF VI FAF, L.P., VEPF VI Co-Invest 1, L.P., Vista Co-Invest Fund 2017-1, L.P. (collectively referred to herein as the “Vista Funds”) and VEP Group, LLC (“VEP Group” and, together with the Vista Funds and their Affiliates (as defined herein), “Vista” and each entity, a “Vista Entity”).
WHEREAS, the Company, the Vista Funds and VEP Group entered into that certain Director Nomination Agreement (the “Prior DNA”), dated as of July 24, 2020 in connection with the Company’s initial public offering of shares of its common stock, par value $0.001 per share (the “Common Stock”), which closed on July 24, 2020 (the “Effective Date”);
WHEREAS, the Company, the Vista Funds and VEP Group desire to amend and restate the Prior DNA;
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the parties to this Agreement agrees as follows:
1. Board Nomination Rights.
(a) From the Effective Date, VEP Group shall have the right, but not the obligation, to nominate to the Board a number of designees equal to at least: (i) 100% of the Total Number of Directors (as defined below), so long as Vista Beneficially Owns (as defined below) shares of Common Stock representing at least 40% of the Original Amount of VEP Group (as defined below), (ii) 40% of the Total Number of Directors, in the event that Vista Beneficially Owns shares of Common Stock representing at least 30% but less than 40% of the Original Amount of VEP Group, (iii) 30% of the Total Number of Directors, in the event that Vista Beneficially Owns shares of Common Stock representing at least 20% but less than 30% of the Original Amount of VEP Group, (iv) 20% of the Total Number of Directors, in the event that Vista Beneficially Owns shares of Common Stock representing at least 10% but less than 20% of the Original Amount of VEP Group and (v) 1 Director (as defined below), in the event that Vista Beneficially Owns shares of Common Stock representing at least 5% of the Original Amount of VEP Group (such persons, the “Nominees”). For purposes of calculating the number of directors that VEP Group is entitled to designate pursuant to the immediately preceding sentence, any fractional amounts shall automatically be rounded up to the nearest whole number (e.g., 11⁄4 Directors shall equate to 2 Directors) and any such calculations shall be made after taking into account any increase in the Total Number of Directors.
(b) In the event that VEP Group has nominated less than the total number of designees, VEP Group shall be entitled to nominate pursuant to Section 1(a), Vista shall have the right, at any time, to nominate such additional designees to which it is entitled, in which case, the Company and the Directors shall take all necessary corporation action, to the fullest extent permitted by applicable law (including with respect to fiduciary duties under Delaware law), to (x) enable VEP Group to nominate and effect the election or appointment of such additional individuals, whether by increasing the size of the Board, or otherwise and (y) to designate such additional individuals nominated by VEP Group to fill such newly created vacancies or to fill any other existing vacancies.
(c) In addition to the nomination rights set forth in Section 1(a) above, from the Effective Date, for so long as Vista Beneficially Owns shares of Common Stock representing at least 5% of the Original Amount of VEP Group, VEP Group shall have the right, but not the obligation, to designate a person (a “Non-Voting Observer”) to attend meetings of the Board (including any meetings of any committees thereof) in a non-voting observer capacity. Any such Non-Voting Observer shall be permitted to attend all meetings of the Board. VEP Group shall have the right to remove and replace its Non-Voting Observer at any time and from time to time. The Company shall furnish to any Non-Voting Observer (i) notices of Board meetings no later than, and using the same form of communication as, notice of Board meetings are furnished to directors and (ii) copies of any materials prepared for meetings of the Board that are furnished to the directors no later than the time such materials are furnished to the directors; provided that failure to deliver notice, or materials, to such Non-Voting Observer in connection with such Non-Voting Observer’s right to attend and/or review materials with respect to, any meeting of the Board shall not, by itself,
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impair the validity of any action taken by such Board at such meeting. Such Non-Voting Observer shall be required to execute or otherwise become subject to any codes of conduct or confidentiality agreements of the Company generally applicable to directors of the Company or as the Company reasonably requests.
(d) The Company shall pay all reasonable out-of-pocket expenses incurred by the Nominees and the Non-Voting Observer in connection with the performance of his or her duties as a director or a Non-Voting Observer and in connection with his or her attendance at any meeting of the Board.
(e) “Beneficially Own” shall mean that a specified Person has or shares the right, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, to vote shares of capital stock of the Company. “Affiliate” of any Person shall mean any other Person controlled by, controlling or under common control with such Person; where “control” (including, with its correlative meanings, “controlling,” “controlled by” and “under common control with”) means possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities, by contract or otherwise).
(f) “Director” means any member of the Board.
(g) “Original Amount of VEP Group” means the aggregate number of shares of Common Stock held, directly or indirectly, by VEP Group on the date hereof, as such number may be adjusted from time to time for any reorganization, recapitalization, stock dividend, stock split, reverse stock split or other similar changes in the Company’s capitalization.
(h) “Person” means any natural person, sole proprietorship, partnership, trust, unincorporated association, corporation, limited liability company, entity or governmental entity.
(i) “Total Number of Directors” means the total number of Directors comprising the Board.
(j) No reduction in the number of shares of Common Stock that Vista Beneficially Owns shall shorten the term of any incumbent director.
(k) In the event that any Nominee shall cease to serve for any reason, VEP Group shall be entitled to designate such person’s successor in accordance with this Agreement (regardless of Vista’s beneficial ownership in the Company at the time of such vacancy) and the Board shall promptly fill the vacancy with such successor nominee; it being understood that any such designee shall serve the remainder of the term of the director whom such designee replaces.
(l) If a Nominee is not appointed or elected to the Board because of such person’s death, disability, disqualification, withdrawal as a nominee or for other reason is unavailable or unable to serve on the Board, VEP Group shall be entitled to designate promptly another nominee and the director position for which the original Nominee was nominated shall not be filled pending such designation.
(m) So long as VEP Group has the right to nominate Nominees under Section 1(a) or any such Nominee is serving on the Board, the Company shall use its reasonable best efforts to maintain in effect at all times directors and officers indemnity insurance coverage reasonably satisfactory to Vista, and the Company’s Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws (each as may be further amended, supplemented or waived in accordance with its terms) shall at all times provide for indemnification, exculpation and advancement of expenses to the fullest extent permitted under applicable law.
(n) If the size of the Board is expanded, VEP Group shall be entitled to nominate a number of Nominees to fill the newly created vacancies such that the total number of Nominees serving on the Board following such expansion will be equal to that number of Nominees that VEP Group would be entitled to nominate in accordance with Section 1(a) if such expansion occurred immediately prior to any meeting of the stockholders of the Company called with respect to the election of members of the Board, and the Board shall appoint such Nominees to the Board.
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(o) At such time as the Company ceases to be a “controlled company” and is required by applicable law or the NASDAQ Global Select Market (the “Exchange”) listing standards to have a majority of the Board comprised of “independent directors” (subject in each case to any applicable phase-in periods), Vista’s Nominees shall include a number of persons that qualify as “independent directors” under applicable law and the Exchange listing standards such that, together with any other “independent directors” then serving on the Board that are not Nominees, the Board is comprised of a majority of “independent directors.”
(p) At any time that VEP Group shall have any nomination rights under Section 1, the Company shall not take any action, including making or recommending any amendment to the Certificate of Incorporation or the Company’s bylaws that could reasonably be expected to adversely affect VEP Group’s rights under this Agreement, in each case without the prior written consent of VEP Group.
2. Company Obligations. The Company agrees to use its reasonable best efforts to ensure that prior to the date that Vista ceases to Beneficially Own shares of Common Stock representing at least 5% of the total voting power of the then outstanding Common Stock, (i) each Nominee is included in the Board’s slate of nominees to the stockholders (the “Board’s Slate”) for each election of directors; and (ii) each Nominee is included in the proxy statement prepared by management of the Company in connection with soliciting proxies for every meeting of the stockholders of the Company called with respect to the election of members of the Board (each, a “Director Election Proxy Statement”), and at every adjournment or postponement thereof, and on every action or approval by written consent of the stockholders of the Company or the Board with respect to the election of members of the Board. VEP Group will promptly provide reporting to the Company after Vista ceases to Beneficially Own shares of Common Stock representing at least 5% of the total voting power of the then outstanding Common Stock, such that Company is informed of when this obligation terminates. The calculation of the number of Nominees that VEP Group is entitled to nominate to the Board’s Slate for any election of directors shall be based on the percentage of the total voting power of the then outstanding Common Stock then Beneficially Owned by Vista (“Vista Voting Control”) immediately prior to the mailing to shareholders of the Director Election Proxy Statement relating to such election (or, if earlier, the filing of the definitive Director Election Proxy Statement with the U.S. Securities and Exchange Commission). Unless VEP Group notifies the Company otherwise prior to the mailing to shareholders of the Director Election Proxy Statement relating to an election of directors, the Nominees for such election shall be presumed to be the same Nominees currently serving on the Board, and no further action shall be required of VEP Group for the Board to include such Nominees on the Board’s Slate; provided, that, in the event VEP Group is no longer entitled to nominate the full number of Nominees then serving on the Board, VEP Group shall provide advance written notice to the Company, of which currently servicing Nominee(s) shall be excluded from the Board Slate, and of any other changes to the list of Nominees. If VEP Group fails to provide such notice prior to the mailing to shareholders of the Director Election Proxy Statement relating to such election (or, if earlier, the filing of the definitive Director Election Proxy Statement with the U.S. Securities and Exchange Commission), a majority of the independent directors then serving on the Board shall determine which of the Nominees of VEP Group then serving on the Board will be included in the Board’s Slate. Furthermore, the Company agrees for so long as the Company qualifies as a “controlled company” under the rules of the Exchange the Company will elect to be a “controlled company” for purposes of the Exchange and will disclose in its annual meeting proxy statement that it is a “controlled company” and the basis for that determination. The Company and Vista acknowledge and agree that, as of the Effective Date, the Company is a “controlled company.”
3. Committees. From and after the Effective Date hereof until such time as Vista ceases to Beneficially Own shares of Common Stock representing at least 5% of the total voting power of the then outstanding Common Stock, Vista shall have the right to designate a number of members of each committee of the Board equal to the nearest whole number greater than the product obtained by multiplying (a) the percentage of the total voting power of the then outstanding Common Stock then Beneficially Owned by Vista and (b) the number of positions, including any vacancies, on the applicable committee, provided that any such designee shall be a director and shall be eligible to serve on the applicable committee under applicable law or listing standards of the Exchange, including any applicable independence requirements (subject in each case to any applicable exceptions, including those for newly public companies and for “controlled companies,” and any applicable phase-in periods). Any additional members shall be determined by the Board. Nominees designated to serve on a Board committee shall have the right to remain on such committee until the next election of directors, regardless of the level of Vista Voting Control following such designation. Unless VEP Group notifies the Company otherwise prior to the time the Board takes action to change the composition of a Board committee, and to the extent Vista has the requisite Vista Voting Control for VEP Group
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to nominate a Board committee member at the time the Board takes action to change the composition of any such Board committee, any Nominee currently designated by VEP Group to serve on a committee shall be presumed to be re-designated for such committee.
4. Amendment and Waiver. Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by the Company and Vista, or in the case of a waiver, by the party against whom the waiver is to be effective. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. VEP Group shall not be obligated to nominate all (or any) of the Nominees it is entitled to nominate pursuant to this Agreement for any election of directors but the failure to do so shall not constitute a waiver of its rights hereunder with respect to future elections; provided, however, that in the event VEP Group fails to nominate all (or any) of the Nominees it is entitled to nominate pursuant to this Agreement prior to the mailing to shareholders of the Director Election Proxy Statement relating to such election (or, if earlier, the filing of the definitive Director Election Proxy Statement with the U.S. Securities and Exchange Commission), the Compensation and Governance Committee of the Board shall be entitled to nominate individuals in lieu of such Nominees for inclusion in the Board’s Slate and the applicable Director Election Proxy Statement with respect to the election for which such failure occurred and VEP Group shall be deemed to have waived its rights hereunder with respect to such election. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.
5. Benefit of Parties. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective permitted successors and assigns. Notwithstanding the foregoing, the Company may not assign any of its rights or obligations hereunder without the prior written consent of Vista. Except as otherwise expressly provided in Section 6, nothing herein contained shall confer or is intended to confer on any third party or entity that is not a party to this Agreement any rights under this Agreement.
6. Assignment. Upon written notice to the Company, VEP Group may assign to any of the Vista Funds or any Affiliate of VEP Group (other than a portfolio company) all of its rights hereunder and, following such assignment, such assignee shall be deemed to be “VEP Group” for all purposes hereunder.
7. Indemnity
(a) The Company shall defend, indemnify and hold harmless Vista, its Affiliates, partners, employees, agents, directors, managers, officers and controlling Persons (collectively, the “Indemnified Parties”) from and against any and all actions, causes of action, suits, claims, liabilities, losses, damages, costs, expenses, or obligations of any kind or nature (whether accrued or fixed, absolute or contingent) in connection therewith (including reasonable attorneys’ fees and expenses) incurred by the Indemnified Parties before or after the date of this Agreement (each, an “Action”) arising directly or indirectly out of, or in any way relating to, (i) any Vista Entity’s or its Affiliates’ Beneficial Ownership of Common Stock or other equity securities of the Company or control or ability to influence the Company or any of its subsidiaries (other than any such Actions (x) to the extent such Actions arise out of any breach of this Agreement by an Indemnified Party or its Affiliates or the breach of any fiduciary or other duty or obligation of such Indemnified Party to its direct or indirect equity holders, creditors or Affiliates or (y) to the extent such Actions are directly caused by such Person’s willful misconduct), (ii) the business, operations, properties, assets or other rights or liabilities of the Company or any of its subsidiaries or (iii) any services provided prior, on or after the date of this Agreement by any Vista Entity or its Affiliates to the Company or any of its subsidiaries. The Company shall defend at its own cost and expense in respect of any Action which may be brought against the Company and/or its Affiliates and the Indemnified Parties. The Company shall defend at its own cost and expense any and all Actions which may be brought in which the Indemnified Parties may be impleaded with others upon any Action by the Indemnified Parties, except that if such damage shall be proven to be the direct result of gross negligence, bad faith or willful misconduct by any of the Indemnified Parties, then such Indemnified Party shall reimburse the Company for the costs of defense and other costs incurred by the Company in proportion to such Indemnified Party’s culpability as proven.  In the event of the assertion against any Indemnified Party of any Action or the commencement of any Action, the Company shall be entitled to participate in such Action and in the investigation of such Action and, after written notice from the Company to such Indemnified Party, to
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assume the investigation or defense of such Action with counsel of the Company’s choice at the Company’s expense; provided, however, that such counsel shall be reasonably satisfactory to the Indemnified Party.  Notwithstanding anything to the contrary contained herein, the Company may retain one firm of counsel to represent all Indemnified Parties in such Action; provided, however, that the Indemnified Party shall have the right to employ a single firm of separate counsel (and any necessary local counsel) and to participate in the defense or investigation of such Action and the Company shall bear the expense of such separate counsel (and local counsel, if applicable), if (x) in the opinion of counsel to the Indemnified Party use of counsel of the Company’s choice could reasonably be expected to give rise to a conflict of interest, (y) the Company shall not have employed counsel satisfactory to the Indemnified Party to represent the Indemnified Party within a reasonable time after notice of the assertion of any such Action or (z) the Company shall authorize the Indemnified Party to employ separate counsel at the Company’s expense.  The Company further agrees that with respect to any Indemnified Party who is employed, retained or otherwise associated with, or appointed or nominated by, Vista or any of its Affiliates and who acts or serves as a director, officer, manager, fiduciary, employee, consultant, advisor or agent of, for or to the Company or any of its subsidiaries, that the Company or such subsidiaries, as applicable, shall be primarily liable for all indemnification, reimbursements, advancements or similar payments (the “Indemnity Obligations”) afforded to such Indemnified Party acting in such capacity or capacities on behalf or at the request of the Company, whether the Indemnity Obligations are created by law, organizational or constituent documents, contract (including this Agreement) or otherwise.  The Company hereby agrees that in no event shall the Company or any of its subsidiaries have any right or claim against any Vista Entity for contribution or have rights of subrogation against any Vista Entity through an Indemnified Party for any payment made by the Company or any of its subsidiaries with respect to any Indemnity Obligation.  In addition, the Company hereby agrees that in the event that any Vista Entity pay or advance an Indemnified Party any expenses with respect to an Indemnity Obligation, the Company will, or will cause its subsidiaries to, as applicable, promptly reimburse any such Vista Entity for such payment or advance upon request; subject to the receipt by the Company of a written undertaking executed by the Indemnified Party and the Vista Entity that makes such payment or advance to repay any such amounts if it shall ultimately be determined by a court of competent jurisdiction that such Indemnified Party was not entitled to be indemnified by the Company.  The foregoing right to indemnity shall be in addition to any rights that any Indemnified Party may have at common law or otherwise and shall remain in full force and effect following the completion or any termination of the engagement.  If for any reason the foregoing indemnification is unavailable to any Indemnified Party or insufficient to hold it harmless as and to the extent contemplated by this Section 7, then the Company shall contribute to the amount paid or payable by the Indemnified Party as a result of such Action in such proportion as is appropriate to reflect the relative benefits received by the Company, on the one hand, and the Indemnified Party, as the case may be, on the other hand, as well as any other relevant equitable considerations.
(b) The Company hereby acknowledges that the Indemnified Parties have certain rights to indemnification, advancement of expenses and/or insurance provided by investment funds managed by Vista and certain of its Affiliates (collectively, the “Fund Indemnitors”).  The Company hereby agrees with respect to any indemnification, hold harmless obligation, expense advancement or reimbursement provision or any other similar obligation whether pursuant to or with respect to this Agreement, the organizational documents of the Company or any of its subsidiaries or any other agreement, as applicable, (i) that the Company and its subsidiaries are the indemnitor of first resort (i.e., their obligations to the Indemnified Parties are primary and any obligation of the Fund Indemnitors to advance expenses or to provide indemnification for claims, expenses or obligations arising out of the same or similar facts and circumstances suffered by any Indemnified Party are secondary), (ii) that the Company shall be required to advance the full amount of expenses incurred by any Indemnified Party and shall be liable for the full amount of all expenses, liabilities, obligations, judgments, penalties, fines, and amounts paid in settlement to the extent legally permitted and as required by the terms of this Agreement, the organizational documents of the Company or any of its subsidiaries or any other agreement, as applicable, without regard to any rights any Indemnified Party may have against the Fund Indemnitors, and (iii) that the Company, on behalf of itself and each of its subsidiaries, irrevocably waives, relinquishes and releases the Fund Indemnitors from any and all Actions against the Fund Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof.  The Company further agrees that no advancement or payment by the Fund Indemnitors on behalf of any Indemnified Party with respect to any Action for which any Indemnified Party has sought indemnification from the Company shall affect the foregoing and the Fund Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of any Indemnified Party against the Company. The Company agrees that the Fund Indemnitors are express third-party beneficiaries of the terms of this Section 7(b).
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8. Headings. Headings are for ease of reference only and shall not form a part of this Agreement.
9. Governing Law. This Agreement shall be construed in accordance with and governed by the law of the State of Delaware without giving effect to the principles of conflicts of laws thereof.
10. Jurisdiction. Any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement may be brought against any of the parties in any federal court located in the State of Delaware or any Delaware state court, and each of the parties hereby consents to the exclusive jurisdiction of such court (and of the appropriate appellate courts) in any such suit, action or proceeding and waives any objection to venue laid therein. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each of the parties agrees that service of process upon such party at the address referred to in Section 17, together with written notice of such service to such party, shall be deemed effective service of process upon such party.
11. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.
12. Entire Agreement. This Agreement constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings and negotiations, both written and oral among the parties with respect to the subject matter hereof.
13. Counterparts; Effectiveness. This Agreement may be signed in any number of counterparts, each of which shall be deemed an original. This Agreement shall become effective when each party shall have received a counterpart hereof signed by each of the other parties. An executed copy or counterpart hereof delivered by facsimile shall be deemed an original instrument.
14. Severability. If any provision of this Agreement or the application thereof to any Person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law.
15. Further Assurances. Each of the parties hereto shall execute and deliver such further instruments and do such further acts and things as may be required to carry out the intent and purpose of this Agreement.
16. Specific Performance. Each of the parties hereto agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof in any federal or state court located in the State of Delaware, in addition to any other remedy to which they are entitled at law or in equity.
17. Notices. All notices, requests and other communications to any party or to the Company shall be in writing (including telecopy or similar writing) and shall be given,
If to the Company:
100 Washington Ave S, Suite 1100
Minneapolis, MN 554011
Attention: General Counsel
If to any member of Vista or any Nominee:
c/o Vista Equity Partners
4 Embarcadero Center
20th Floor
San Francisco, California 94111
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Attention: David Breach
Christina Lema
Facsimile: (415) 765-6666
With a copy to (which shall not constitute notice):
Kirkland & Ellis LLP
300 N. LaSalle
Chicago, IL 60654
Attention: Robert M. Hayward, P.C.
Robert E Goedert, P.C.
Facsimile: (312) 862-2200
or to such other address or telecopier number as such party or the Company may hereafter specify for the purpose by notice to the other parties and the Company. Each such notice, request or other communication shall be effective when delivered at the address specified in this Section 17 during regular business hours.
18. Enforcement. Each of the parties hereto covenant and agree that the disinterested members of the Board have the right to enforce, waive or take any other action with respect to this Agreement on behalf of the Company.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written.
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	JAMF HOLDING CORP.

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	By:
	/s/ Dean Hager

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	Name:
	Dean Hager

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	Title:
	Chief Executive Officer

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	VISTA EQUITY PARTNERS FUND VI, L.P.

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	By:
	Vista Equity Partners Fund VI GP, L.P.

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	Its:
	General Partner

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	By:
	VEPF VI GP, Ltd.

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	Its:
	General Partner

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	By:
	/s/ Robert F. Smith

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	Name:
	Robert F. Smith

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	Title:
	Director

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	VISTA EQUITY PARTNERS FUND VI-A, L.P.

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	By:
	Vista Equity Partners Fund VI GP, L.P.

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	Its:
	General Partner

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	By:
	VEPF VI GP, Ltd.

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	Its:
	General Partner

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	By:
	/s/ Robert F. Smith

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	Name:
	Robert F. Smith

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	Title:
	Director

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	VEPF VI FAF, L.P.

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	By:
	Vista Equity Partners Fund VI GP, L.P.

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	Its:
	General Partner

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	By:
	VEPF VI GP, Ltd.

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	Its:
	General Partner

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	By:
	/s/ Robert F. Smith

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	Name:
	Robert F. Smith

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	Title:
	Director

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	VISTA CO-INVEST FUND 2017-1, L.P.

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	By:
	Vista Co-Invest Fund 2017-1 GP, L.P.

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	Its:
	General Partner

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	By:
	Vista Co-Invest Fund 2017-1 GP, Ltd.

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	Its:
	General Partner

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	By:
	/s/ Robert F. Smith

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	Name:
	Robert F. Smith

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	Title:
	Director

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	VEPF VI CO-INVEST 1, L.P.

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	By:
	VEPF VI Co-Invest 1 GP, L.P.

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	Its:
	General Partner

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	By:
	VEPF VI Co-Invest 1 GP, Ltd.

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	Its:
	General Partner

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	By:
	/s/ Robert F. Smith

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	Name:
	Robert F. Smith

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	Title:
	Director

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	VEP GROUP, LLC

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	By:
	/s/ Robert F. Smith

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	Name:
	Robert F. Smith

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	Title:
	Managing Member

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​blackberrylimited2020ind

                              BLACKBERRY LIMITED                                      as Issuer,                                                                    the GUARANTORS named herein,                                                                                 - and -                                                                  BNY TRUST COMPANY OF CANADA                                     as Trustee                                                                              INDENTURE                                                                       Dated as of September 1, 2020                                                                                                           providing for the issue of 1.75% Convertible                       Unsecured Debentures due November 13, 2023                                                36990-2073 30186571.16   

 

                                 TABLE OF CONTENTS                                                                             Page   ARTICLE 1 INTERPRETATION ................................................................................................. 2         1.1 Definitions.............................................................................................................. 2         1.2 Interpretation ........................................................................................................ 15         1.3 Accounting Terms ................................................................................................ 15         1.4   Headings and Table of Contents .......................................................................... 16         1.5   Section and Schedule References ........................................................................ 16         1.6  Governing Law .................................................................................................... 16         1.7 Currency ............................................................................................................... 16         1.8 Non-Business Days .............................................................................................. 16         1.9 Time ..................................................................................................................... 17         1.10  Independence of Covenants ................................................................................. 17         1.11  Form of Documents Delivered to Trustee ........................................................... 17         1.12  Acts of Holders .................................................................................................... 17         1.13  Interest Payments and Calculations ..................................................................... 18         1.14 English Language................................................................................................. 19         1.15 Successors and Assigns ........................................................................................ 19         1.16  Severability Clause .............................................................................................. 19         1.17  Benefits of Indenture............................................................................................ 19         1.18 Unclaimed Debentures ......................................................................................... 20         1.19 Schedules ............................................................................................................. 20         1.20  Benefits of Indenture through Trustee ................................................................. 20   ARTICLE 2 THE DEBENTURES .............................................................................................. 20         2.1   Limit of Issue and Designation of Debentures .................................................... 20         2.2   Form and Terms of Debentures ........................................................................... 20         2.3 Interest.................................................................................................................. 21         2.4 Prescription .......................................................................................................... 22         2.5   Issue of Debentures .............................................................................................. 22         2.6 Execution ............................................................................................................. 22         2.7   Certification by Trustee ....................................................................................... 23         2.8   Registration of Exchanges ................................................................................... 23         2.9   Persons Entitled to Payment ................................................................................ 24         2.10  Payment of Principal and Interest on Definitive Debentures ............................... 24         2.11 Book-Based System ............................................................................................. 25         2.12  Discontinuation of Book-Based System .............................................................. 27         2.13  Payments of Principal and Interest for Book-Entry Only Debentures ................. 27         2.14 Rank ..................................................................................................................... 28         2.15  Register and Transfer ........................................................................................... 28         2.16 Additional Amounts ............................................................................................. 31         2.17  Cancellation of Debentures .................................................................................. 34         2.18  Mutilated, Lost, Stolen or Destroyed Debentures ................................................ 34         2.19  Access to Lists of Holders ................................................................................... 35         2.20  Private Placement Legend .................................................................................... 35         2.21  U.S. Legend on Debentures ................................................................................. 36         2.22  Payment in Shares ................................................................................................ 36       36990-2073 30186571.16    

 

                                     - ii -   ARTICLE 3 REPURCHASE AND CANCELLATION OF DEBENTURES ............................ 37        3.1 Purchase of Debentures........................................................................................ 37        3.2   Repurchase of Debentures at Option of the Holder upon a Change of             Control ................................................................................................................. 38        3.3   Effect of Change of Control Repurchase Notice ................................................. 40        3.4   Deposit of Change of Control Repurchase Price ................................................. 41        3.5   Repayment to the Issuer ....................................................................................... 42        3.6   Debentures Purchased in Part .............................................................................. 42        3.7 [Intentionally Deleted] ......................................................................................... 42        3.8 [Intentionally Deleted] ......................................................................................... 42        3.9 [Intentionally Deleted] ......................................................................................... 42        3.10 [Intentionally Deleted] ......................................................................................... 42        3.11 [Intentionally Deleted] ......................................................................................... 42        3.12  Compliance with Applicable Securities Laws upon Purchase of             Debentures ........................................................................................................... 42        3.13  Cancellation of Purchased Debentures ................................................................ 42  ARTICLE 4 SUBORDINATION OF DEBENTURES ............................................................... 43        4.1   Applicability of Article ........................................................................................ 43        4.2   Order of Payment ................................................................................................. 43        4.3  Subrogation to Rights of Holders of Specified Senior Indebtedness ................... 44        4.4   Obligation to Pay Not Impaired ........................................................................... 45        4.5  No Payment if Specified Senior Indebtedness in Default .................................... 45        4.6   Payment on Debentures Permitted ....................................................................... 47        4.7   Confirmation of Subordination ............................................................................ 47        4.8   Knowledge of Trustee .......................................................................................... 47        4.9   Trustee May Hold Specified Senior Indebtedness ............................................... 48        4.10  Rights of Holders of Specified Senior Indebtedness Not Impaired ..................... 48        4.11  Altering the Specified Senior Indebtedness ......................................................... 48        4.12  Right of Holder to Receive Common Shares Not Impaired ................................ 48        4.13 Contesting Security .............................................................................................. 48  ARTICLE 5 CONVERSION ....................................................................................................... 48        5.1 Conversion Right ................................................................................................. 48        5.2 Completion of Conversion ................................................................................... 50        5.3   Relating to the Issue of Common Shares ............................................................. 50        5.4  U.S. Legend on Common Shares ......................................................................... 51        5.5   No Remuneration for Soliciting Conversions ...................................................... 52        5.6 Limitations on Conversions ................................................................................. 52  ARTICLE 6 MATURITY ............................................................................................................ 53        6.1   Payment of Principal and Interest at Maturity ..................................................... 53  ARTICLE 7 ADJUSTMENTS .................................................................................................... 53        7.1   Adjustment of Conversion Rate ........................................................................... 53        7.2 No Adjustment ..................................................................................................... 61        7.3   Notice of Adjustment ........................................................................................... 62        7.4   Notice of Certain Transactions ............................................................................ 62        7.5   Effect of Recapitalization, Reclassification, Consolidation, Merger or              Sale. ......................................................................................................................  63     36990-2073 30186571.16   

 

                                     - iii -         7.6 Voluntary Increase ............................................................................................... 64        7.7   Protection of Trustee ............................................................................................ 64  ARTICLE 8 NEGATIVE COVENANTS ................................................................................... 64        8.1   Limitation on Indebtedness .................................................................................. 64        8.2 Negative Pledge ................................................................................................... 66        8.3  Dividend Increase ................................................................................................ 66        8.4 No Merger ............................................................................................................ 66        8.5 Hedging ................................................................................................................ 66  ARTICLE 9 COVENANTS OF THE ISSUER ........................................................................... 66        9.1  Payment of Principal, Premium and Interest ....................................................... 66        9.2   Corporate Existence; Books of Account .............................................................. 67        9.3  Compliance Certificate ........................................................................................ 67        9.4   Notice of Default .................................................................................................. 67        9.5 Securities Laws .................................................................................................... 67        9.6 Reporting.............................................................................................................. 68        9.7 Reserved ............................................................................................................... 69        9.8   Performance of Covenants by Trustee ................................................................. 69        9.9   Payment of Trustee’s Remuneration .................................................................... 69        9.10 [Intentionally Deleted] ......................................................................................... 70        9.11  Further Instruments and Acts ............................................................................... 70        9.12  No Dividends on Common Shares if Event of Default ........................................ 70  ARTICLE 10 EVENTS OF DEFAULT AND REMEDIES ....................................................... 70        10.1  Events of Default and Enforcement ..................................................................... 70        10.2  Notice of Event of Default ................................................................................... 73        10.3  Waiver of Acceleration ........................................................................................ 73        10.4 Waiver .................................................................................................................. 74        10.5 Other Remedies .................................................................................................... 74        10.6  Application of Money Collected .......................................................................... 75        10.7 Control by Holders ............................................................................................... 75        10.8  Limitation on Suits ............................................................................................... 75        10.9  Collection Suit by Trustee ................................................................................... 76        10.10  Trustee May File Proofs of Claim ....................................................................... 76        10.11  Undertaking for Costs .......................................................................................... 76        10.12 Remedies Cumulative .......................................................................................... 76        10.13  Delay or Omission Not Waiver ............................................................................ 77        10.14  Judgment Against the Issuer ................................................................................ 77        10.15  Rights of Holders to Receive Payment and to Convert ....................................... 77  ARTICLE 11 GUARANTEE ...................................................................................................... 77        11.1 Guarantors ............................................................................................................ 77        11.2  Waiver Regarding Material Information ............................................................. 78        11.3  Opinion Regarding Guarantors ............................................................................ 78  ARTICLE 12 SATISFACTION AND DISCHARGE ................................................................. 78        12.1  Non-Presentation of Debentures .......................................................................... 78        12.2 Discharge ............................................................................................................. 79      36990-2073 30186571.16   

 

                                     - iv -   ARTICLE 13 THE TRUSTEE .................................................................................................... 79        13.1  Duties of Trustee .................................................................................................. 79        13.2 Employ Agents ..................................................................................................... 80        13.3  Reliance on Evidence of Compliance .................................................................. 80        13.4  Provision of Evidence of Compliance to Trustee ................................................ 80        13.5  Contents of Evidence of Compliance .................................................................. 81        13.6  Advice of Experts ................................................................................................ 81        13.7  Trustee May Deal in Debentures ......................................................................... 82        13.8  Conditions Precedent to Trustee’s Obligation to Act .......................................... 82        13.9  Trustee Not Required to Give Security ................................................................ 82        13.10  Resignation or Removal of Trustee; Conflict of Interest ..................................... 83        13.11  Authority to Carry on Business; Resignation ...................................................... 84        13.12  Protection of Trustee ............................................................................................ 84        13.13  Additional Representations and Warranties of Trustee ....................................... 86        13.14 Third Party Interests ............................................................................................. 87        13.15  Trustee Not Bound to Act .................................................................................... 87        13.16  Compliance with Privacy Laws ........................................................................... 87        13.17 Force Majeure ...................................................................................................... 88        13.18 SEC Reporting ..................................................................................................... 88  ARTICLE 14 MEETINGS OF HOLDERS ................................................................................. 88        14.1  Purposes for Which Meetings May be Called ..................................................... 88        14.2  Call, Notice and Place of Meetings ...................................................................... 88        14.3 Proxies.................................................................................................................. 89        14.4  Persons Entitled to Vote at Meetings ................................................................... 90        14.5 Quorum; Action ................................................................................................... 90        14.6  Determination of Voting Rights; Chairman; Conduct and Adjournment of              Meetings ...............................................................................................................  91        14.7  Counting Votes and Recording Action of Meetings ............................................ 91        14.8 Instruments in Writing ......................................................................................... 92        14.9  Holdings by the Issuer Disregarded ..................................................................... 92  ARTICLE 15 AMALGAMATION, CONSOLIDATION, CONVEYANCE, TRANSFER        OR LEASE....................................................................................................................... 92        15.1  Amalgamation and Consolidations of Issuer and Conveyances Permitted             Subject to Certain Conditions .............................................................................. 92        15.2  Rights and Duties of Successor Issuer or Successor Guarantor .......................... 94  ARTICLE 16 NOTICES .............................................................................................................. 94        16.1 Notice to Issuer .................................................................................................... 94        16.2  Notice to Holders ................................................................................................. 95        16.3  Notice to Trustee .................................................................................................. 95  ARTICLE 17 AMENDMENTS, SUPPLEMENTS AND WAIVERS ........................................ 96        17.1  Without Consent of Holders ................................................................................ 96        17.2  With Consent of Holders ..................................................................................... 96        17.3  Execution of Supplemental Indentures ................................................................ 98        17.4  Effect of Supplemental Indentures ....................................................................... 98        17.5  Reference in Debentures to Supplemental Indentures ......................................... 98        17.6  Prior Approval of Recognized Stock Exchange .................................................. 99     36990-2073 30186571.16   

 

                                     - v -   ARTICLE 18 MISCELLANEOUS PROVISIONS ..................................................................... 99        18.1 Acceptance of Trusts............................................................................................ 99        18.2  Protection of Trustee ............................................................................................ 99        18.3 Judgment Currency .............................................................................................. 99        18.4  Counterparts and Formal Date ........................................................................... 100        18.5  Waiver of Trial by Jury ...................................................................................... 100        18.6  Notice by Fax or E-mail ..................................................................................... 100        36990-2073 30186571.16   

 

     THIS INDENTURE dated as of September 1, 2020.    BETWEEN:                BLACKBERRY LIMITED, a corporation governed                            by the laws of Ontario;                            (the “Issuer”)                            Each of the Guarantors (as defined herein);                                        - and -                            BNY Trust Company of Canada, a trust company existing under                           the laws of Canada.                            (the “Trustee”)      RECITALS   A.    The Issuer wishes to provide for the creation and issue of Convertible Unsecured  Debentures with the designation of “1.75% Convertible Unsecured Debentures due  November 13, 2023” (the “Debentures”), all upon the terms and conditions set forth in this  Indenture (as hereinafter defined);     B.    All necessary acts and proceedings have been done and taken and all necessary  resolutions have been passed to authorize the execution and delivery of this Indenture by the  Issuer and the Guarantors, to make the same effective and binding upon the Issuer and the  Guarantors, and to make the Debentures, when certified by the Trustee and issued as provided in  this Indenture, valid, and legally binding obligations of the Issuer with the benefit and subject to  the terms of this Indenture, and each Guarantor has done all things necessary to make its  Guarantee (as defined herein), when executed by such Guarantor, the valid and legally binding  obligation of such Guarantor;   D.    All necessary acts and proceedings have been done and taken and all necessary  resolutions have been passed to authorize the issuance of the Common Shares (as hereinafter  defined) that may be issued upon conversion or maturity of the Debentures; and   E.    The foregoing recitals are made as representations and statements of fact by the Issuer  and the Guarantors and not by the Trustee;   THEREFORE, it is hereby covenanted, agreed and declared as follows:        36990-2073 30186571.16    

 

                                      - 2 -                                     ARTICLE 1                                INTERPRETATION   1.1         Definitions               In this Indenture and in the Debentures, unless there is something in the subject              matter or context inconsistent therewith, the expressions below shall have the              following meanings:               “Act” or “Act of Holder(s)”, when used with respect to any Holder(s), shall have              the meaning specified in subsection 1.12(a);               “Additional Amount” has the meaning ascribed thereto in subsection 2.16(a);               “Affiliate” shall have the meaning ascribed thereto in National Instrument 45-106              Prospectus Exemptions;               “Applicable Law” shall mean, at any time, with respect to any Person, property,              transaction, event or other matter, as applicable, all laws, rules, statutes,              regulations, treaties, orders, judgments and decrees, and all official requests,              directives, rules, guidelines, orders, policies, practices and other requirements of              any Governmental Authority relating or applicable at such time to such Person,              property, transaction, event or other matter, and shall also include any              interpretation thereof by any Person having jurisdiction over it or charged with its              administration or interpretation;               “Applicable Securities Law” shall mean any Applicable Law in any jurisdiction              regulating, or regulating disclosure with respect to, any sale or distribution of              securities in, or to residents of, such jurisdiction;                 “Applicants” has the meaning ascribed thereto in subsection 2.19(b);               “Beneficial Holder” means a Person who is the beneficial owner of a Debenture,              as shown on a list maintained by a Participant or a Depository;               “Board of Directors” shall mean either the Board of Directors of the Issuer, or               any committee of that board duly authorized to make a decision on the matter in               question, or to the extent that a Successor Issuer is not a corporation, the Persons              performing the equivalent function of such Successor Issuer;                “Board Resolution” shall mean a copy of a resolution certified by the Chairman,              Chief Executive Officer, the Chief Financial Officer, or any Vice-President,              Secretary or Assistant Secretary of the Issuer, or to the extent that a Successor              Issuer is not a corporation, the Persons performing the equivalent function of such              Successor Issuer, to have been duly adopted by the Board of Directors and to be              in full force and effect and unamended on the date of such certification;               “Book-Based System” shall mean, in relation to a Global Debenture, the debt              clearing, record entry, transfer and pledge systems and services established and              operated by or on behalf of the Depository for the Debentures (including, where       36990-2073 30186571.16    

 

                                     - 3 -               applicable, pursuant to one or more agreements between such Depository and its              Participants establishing the rules and procedures for such systems and services)              or any successor systems or services thereof;               “Book-Entry Only Debentures” means Debentures issued pursuant to the Book-             Based System of a Depository;               “Business Combination” has the meaning ascribed thereto in section 7.5;               “Business Day” shall mean any day of the week, other than Saturday, Sunday or              a statutory holiday in the Province of Ontario, on which banking institutions are              open for business in the City of Toronto, Ontario;                “Capital Lease” means, with respect to any Person, any lease of any property              (whether real, personal or mixed) by such Person as lessee that, in accordance              with GAAP (as in effect on the date hereof), is required to be classified and              accounted for as a capital lease on a balance sheet of such Person;               “CDS” shall mean CDS Clearing and Depository Services Inc., together with its              successors from time to time;               “Change of Control” means any of the following:                     (a)   the acquisition by any Person or one or more members of a group                          of Persons, acting jointly or in concert, directly or indirectly, in a                          single transaction or a series of related transactions of voting                          control or direction over more than 35% of the then outstanding                          Common Shares;                     (b)  the acquisition by any Person (other than the Issuer or any of the                          Guarantors) or one or more members of a group of Persons acting                          jointly or in concert (other than a group consisting solely of two or                          more of the Issuer and any of the Guarantors), directly or                          indirectly, in a single transaction or a series of related transactions,                          of all or substantially all of the assets of the Issuer and its                          Subsidiaries, taken as a whole; or                     (c)   the completion of a merger, amalgamation, arrangement or similar                          transaction which results in the holders of the Issuer’s Common                          Shares immediately prior to the completion of such transaction                          holding, in the aggregate, less than 50% of the then outstanding                          Common Shares of the resulting entity immediately after the                         completion of such transaction;               “Change of Control Bid” means a public announcement by the Issuer or any              other Person of a transaction which, if consummated would constitute a Change              of Control;      36990-2073 30186571.16   

 

                                     - 4 -               “Change of Control Bid Notice” has the meaning attributed thereto in section              5.1(c);               “Change of Control Issuer Notice” has the meaning attributed thereto in              section 3.2(a);               “Change of Control Repayment Offer” has the meaning ascribed thereto in              subsection 3.2(a);               “Change of Control Repurchase Date” means the date identified as such in a              Change of Control Issuer Notice, which date shall not be less than thirty (30) nor              more than forty-five (45) days after the date of such Change of Control Issuer              Notice;               “Change of Control Repurchase Notice” has the meaning attributed thereto in              subsection 3.2(b);               “Change of Control Repurchase Price” of any Debenture means 115% of the              principal amount of the Debenture to be purchased, plus any accrued and unpaid              interest thereon;               “Closing Price” for any Trading Date means (i) the closing price of the Common              Shares on the TSX for such date, or (ii) if there has been no trading of the              Common Shares on the TSX on such date or the Common Shares are not listed on              the TSX on such date, the closing price of the Common Shares on the Recognized              Stock Exchange on which the Common Shares have been most actively traded on             such date, and (iii) if no closing price is reported on either the TSX or such             Recognized Stock Exchange on such date, the average of the bid and ask prices             on the TSX or, if there is more than one bid or ask price, the average of the             average bid and the average ask prices on the TSX.  In the absence of such a             quotation, the Board of Directors shall be entitled to make a good faith             determination of the price on the basis it considers appropriate which shall be             conclusive.              “Common Share Payment” means a payment in accordance with section 2.22;              “Common Shares” means the common shares in the share capital of the Issuer;              “Consolidated Assets” as of any date means the consolidated assets of the Issuer             determined in accordance with GAAP as set out in the quarterly or annual balance              sheet of the Issuer as of such date;               “Consolidated Revenues” for any period means the consolidated revenues of the             Issuer determined in accordance with GAAP as set out in the quarterly or annual             income statements of the Issuer for such period;              “Conversion Date” has the meaning ascribed thereto in section 5.1(d);              “Conversion Notice” has the meaning ascribed thereto in subsection 5.1(d);     36990-2073 30186571.16   

 

                                     - 5 -               “Conversion Price” per Common Share as of any time means the quotient of              (i) $1,000 divided by (ii) the applicable Conversion Rate at such time, rounded to              the nearest cent; the Conversion Price shall initially be $6.00 per Common Share;              “Conversion Rate” means the rate at which Common Shares shall be delivered             upon conversion, which rate shall initially be 166.67 Common Shares per $1,000             principal amount of Debentures, as adjusted from time to time pursuant hereto;               “Convertible Securities” has the meaning ascribed thereto in section 7.1(h);              “Corporate Trust Office” shall mean the principal office or offices of the             Trustee in the City of Toronto, Province of Ontario, at which at any particular             time its corporate trust business shall be administered;              “Counsel” shall mean, in the case of Counsel to the Trustee, any barrister,             solicitor or other lawyer or firm of barristers, solicitors or other lawyers retained             or employed by the Trustee and, in the case of Counsel to the Issuer, any barrister,             solicitor or other lawyer or firm of barristers, solicitors or other lawyers retained             or employed by the Issuer;              “Current Dividend Rate” means initially $0.00 per Common Share per year and             if the Issuer declares a semi-annual, quarterly or other periodic dividend other             than a Special Dividend, means that amount expressed as an annualized amount             per Common Share;              “Current Market Price” on any date means the Weighted Average Trading             Price on the TSX per Common Share for the twenty (20) consecutive Trading             Days ending five (5) Trading Days prior to such date and if the Common Shares             are not traded on the TSX for such period, the Weighted Average Trading Price             on the Recognized Stock Exchange on which the Common Shares have been most             actively traded in such period per Common Share for the twenty (20) consecutive             Trading Days ending five (5) Trading Days prior to such date;               “Debentures” means the 1.75% Convertible Unsecured Debentures due             November 13, 2023 issued under this Indenture and certified pursuant to this             Indenture;              “Debenture Liabilities” has the meaning ascribed thereto in section 4.1;              “Default” means any event or condition that constitutes an Event of Default or             that would constitute an Event of Default with the giving of notice, passage of             time, or both;              “Definitive Debentures” means Debentures in the form of individual certificates             in definitive fully registered form issued pursuant to section 2.2 and substantially             in the form of Schedule 2.2;              “Depository”, in respect of the Book-Entry Only Debentures, means either CDS,             or DTC, and in either case, includes any successor corporation or any other     36990-2073 30186571.16   

 

                                     - 6 -               depository subsequently appointed by the Issuer as the depository in respect of              Book-Entry Only Debentures;               “Determination Date” has the meaning ascribed thereto in section 7.1(f);              “Distributed Property” has the meaning ascribed thereto in section 7.1(d);              “Distributions Paid in the Ordinary Course” means cash dividends paid on the             Common Shares in any Fiscal Year in the ordinary course of business in             accordance with a dividend policy approved by the Board of Directors provided             that such dividend policy does not provide for such dividends to exceed an annual             rate of 5% of net income of the Issuer (before extraordinary items) for the most             recent Fiscal Year for which financial statements of the Issuer are then available,             determined on a consolidated basis in accordance with GAAP and as set out in the             Issuer’s financial statements for such Fiscal Year;              “Dividend Increase” means the Issuer publicly announcing an increase in the             dividend on the Common Shares to an amount higher than the then Current             Dividend Rate;              “DTC” shall mean The Depository Trust Company, together with its successors             from time to time;              “Event of Default” shall mean any of the events identified in subsection 10.1 as              being an Event of Default;               “Exchange Rate” means, for any date, in the case of a conversion of an amount              denominated in one currency, (the “First Currency”) into another currency, (the              “Second Currency”), the noon spot rate on such date announced by the Bank of              Canada for exchanging the First Currency into the Second Currency; provided              that if such rate is not available on the applicable date, then such rate shall be              determined as of the immediately preceding date on which such rate is available.               In the event that the Bank of Canada does not announce an exchange rate for such              currencies, the Board of Directors shall be entitled to make a good faith              determination of the applicable exchange rate by reference to such other third              party service providing exchanges rates as it considers appropriate which              determination shall be conclusive.                “Expiration Date” has the meaning ascribed thereto in section 7.1(g);               “Expiration Time” has the meaning ascribed thereto in section 7.1(g);               “Extraordinary Resolution” means a resolution at a meeting of Holders duly              convened and held in accordance with the provisions of Article 14 passed by the              favourable votes of Holders of at least 91% of the Outstanding Debentures              affected represented, in person or by proxy at such meeting or a resolution signed              in the manner contemplated by section 14.8;                “Fairfax” means Fairfax Financial Holdings Limited;     36990-2073 30186571.16   

 

                                     - 7 -               “Fiscal Year” means any of the annual accounting periods of the Issuer ending              on or about February 28 of each year;                “GAAP” means generally accepted accounting principles as in effect from time              to time in the United States, consistently applied, and any change therein,              including but not limited to, as a result of the adoption of International Financing              Reporting Standards (“IFRS”) by the Issuer and its Subsidiaries;               “Global Debenture(s)” means one or more fully registered global Debentures as              described in subsection 2.11(a);               “Governmental Authority” shall mean, when used with respect to any Person,              any government, parliament, legislature, regulatory authority, agency, tribunal,              department, commission, board, instrumentality, court, arbitration board or              arbitrator or other law, regulation or rule-making entity (including a Minister of              the Crown, any central bank, Superintendent of Financial Institutions, Recognized              Stock Exchange, or other comparable authority or agency) having or purporting to              have jurisdiction on behalf of, or pursuant to the laws of, Canada or any country              in which such Person is residing, incorporated, continued, amalgamated, merged              or otherwise created or established or in which such Person carries on business or              holds property, or any province, territory, state, municipality, district or political              subdivision of any such country or of any such province, territory or state of such              country;               “Guarantee” means the guarantee by each Guarantor of the obligations of the              Issuer with respect to the Debentures;                            “Guarantor” means (i) initially, each of BlackBerry Corporation, Cylance Inc.,              Good Technology Software Inc. and QNX Software Systems Limited and (ii) any              other Person who executes a Guarantee in accordance with the terms hereof;               “Holder(s)” as of any time means the registered holder(s) of Debentures at such             time, and including, for greater certainty, in the case of any Global Debenture, a             Depository or its nominee in whose name such Global Debenture is registered, as             the case may be;              “Indebtedness” means, with respect to a Person, and without duplication:                    (a)    indebtedness of such Person for monies borrowed or raised,                         including any indebtedness represented by a note, bond, debenture                         or other similar instrument of such Person;                    (b)    reimbursement obligations of such Person arising from bankers’                         acceptance, letters of credit or letters of guarantee or similar                         instruments;                    (c)    indebtedness of such Person for the deferred purchase price of                         property or services, other than for consumable non-capital goods                         and services purchased in the ordinary course of business,     36990-2073 30186571.16   

 

                                     - 8 -                           including arising under any conditional sale or title retention                          agreement, but excluding for greater certainty ordinary course                          accounts payable;                     (d)   obligations of such Person under or in respect of Capital Leases,                           synthetic leases, Purchase Money Security Interests or sale and                          leaseback transactions;                     (e)   the aggregate amount at which shares in the capital of such Person                          that are redeemable at fixed dates or intervals or at the option of                          the holder thereof may be redeemed; and                     (f)   guarantees or Liens granted by such Person in respect of                          Indebtedness of another Person;               “Indenture” means or refers to this Indenture as amended or supplemented by              any indenture, deed or instrument supplemental or ancillary thereto;              “Indenture Documents” means this Indenture, the Debentures and each other             related document, instrument or agreement now or hereinafter executed and             delivered by or on behalf of the Issuer or the Guarantors or under or pursuant to             any of them;              “Independent Member of the IIROC” means a member firm of the Investment             Industry Regulatory Organization of Canada that, in the determination of the             Board of Directors acting reasonably, is independent of the Issuer having regard             to, among other things, the considerations set out in National Instrument 33-105             Underwriting Conflicts or any successor instrument;               “Interest Payment Date” means the first day of March, June, September and             December in each year, starting on December 1, 2020, until all interest has been             paid;              “Interest Commencement Date” means September 1, 2020;              “Interest Period” has the meaning ascribed thereto in section 2.3;              “Interest Record Date” means, with respect to an Interest Payment Date, the             date determined as the record date for the determination of the Holders to which             interest on Debentures is payable on such Interest Payment Date, which date shall             be the 15th day of the month prior to the month in which such Interest Payment             Date occurs (or if such day is not a Business Day, the immediately preceding             Business Day);              “Issue Date” means the date on which the Debentures are issued by the Issuer             pursuant to this Indenture, being September 1, 2020;               “Issuer” shall mean BlackBerry Limited until a Person shall have become a             Successor Issuer pursuant to the applicable provisions of this Indenture, and             thereafter, “Issuer” shall mean such Successor Issuer;     36990-2073 30186571.16   

 

                                     - 9 -               “Issuer Request” or “Issuer Order” shall mean a written request or order signed              in the name of the Issuer by any Responsible Officer of the Issuer and delivered to              the Trustee;               “Lien” means any hypothec, security interest, mortgage, lien, right of preference,             pledge, assignment by way of security or any other agreement or encumbrance of             any nature that secures the performance of an obligation, and a Person is deemed             to own subject to a Lien any property or assets that it has acquired or holds             subject to the interest of a vendor or lessor under any conditional sale agreement,             capital or synthetic lease or similar agreement (other than an operating lease             (provided that the determination of whether a lease is accounted for as an             operating lease is to be made in accordance with GAAP as in effect on the date             hereof)) relating to such property or assets;              “Maturity” shall mean the date on which principal becomes due and payable             under the Debentures;              “Maturity Date” means November 13, 2023 or such other date on which the             Debentures become due and payable;              “Non-Public Offering” has the meaning ascribed thereto in section 7.1(h);              “Notice” shall mean any notice, document or other communication required or             permitted to be given under this Indenture;              “Officer’s Certificate” shall mean a written certificate signed by any             Responsible Officer of the Issuer, and delivered to the Trustee;              “Opinion of Counsel” shall mean a written opinion addressed to the Trustee             (among other addressees as applicable) by Counsel who shall be reasonably              satisfactory to the Trustee;               “Outstanding” when used with respect to Debentures shall mean, as of the date              of determination, all Debentures theretofore certified and delivered by the Trustee              under this Indenture, except:                     (i)   Debentures theretofore cancelled by the Trustee or delivered to the                          Trustee for cancellation;                     (ii)  Debentures for whose payment, purchase, or repurchase money in                          the necessary amount has been theretofore deposited with the                          Trustee under gratuitous deposit or set aside and segregated in trust                          by the Issuer (if the Issuer shall act as its own paying agent) for the                          Holders of such Debentures; and                     (iii) Debentures that have been surrendered to the Trustee pursuant to                          section 2.17 or in exchange for or in lieu of which other                          Debentures have been certified and delivered pursuant to this                          Indenture, other than any such Debentures in respect of which     36990-2073 30186571.16   

 

                                    - 10 -                           there shall have been presented to the Trustee proof satisfactory to                          it that such Debentures are held by a bona fide purchaser in whose                         hands such Debentures are valid obligations of the Issuer;                    provided, however, that: (A) in determining whether the Holders of the                   requisite principal amount of Debentures then Outstanding have taken any                   Act of Holders hereunder, Debentures owned by the Issuer or any                   Subsidiary of the Issuer shall be disregarded and deemed not to be then                   Outstanding; (B) in determining whether the Trustee shall be protected in                   acting and relying upon such Act of Holders, only Debentures of which                   the Trustee has actual notice that they are so owned shall be so                   disregarded; and (C) that Debentures so owned that have been pledged in                   good faith may be regarded as Outstanding if the pledgee establishes to the                    satisfaction of the Trustee the pledgee’s right to act with respect to such                    Debentures and that the pledgee is not the Issuer or any Subsidiary of the                    Issuer;               “Participant” shall mean, in relation to a Depository, a broker, dealer, bank or              other financial institution or other Person on whose behalf such Depository or its              nominee holds Debentures pursuant to a Book-Based System operated by such              Depository;               “Permitted Conversion Period” means the period starting on September 1, 2020              and ending on the third Business Day prior to the Maturity Date;               “Permitted Junior Payments” means any payment or other distribution to the              holders of the Debentures of securities of the Issuer or a Guarantor or any              successor corporation or any corporation which is a transferee of all or              substantially all of the assets of the Issuer and its Subsidiaries in each case that are              equity securities or that are subordinated in right of payment to all Specified              Senior Indebtedness of the Issuer or the relevant Guarantor, as the case may be, to              the substantially same extent, or to a greater extent, than the Debentures or the              relevant Guarantee, as the case may be, are so subordinated;               “Permitted Liens” means:                (a)   Liens securing Specified Senior Indebtedness permitted under section                    8.1(b);               (b)   Purchase Money Security Interests permitted under section 8.1(c)(i);               (c)   Liens on real property incurred in connection with a sale and lease back of                    such real property securing Indebtedness permitted under section                    8.1(c)(ii);                (d)   Liens over receivables and related assets incurred in connection with a                    securitization or factoring of receivables to the extent permitted under                    section 8.1(c)(iii);       36990-2073 30186571.16   

 

                                    - 11 -               (e)   Liens over the assets of a Subsidiary acquired by the Issuer or its                    subsidiaries securing indebtedness of such Subsidiary existing prior to its                    acquisition and not incurred in contemplation thereof to the extent                    permitted under section 8.1(c)(iv);                (f)   Liens over insurance policies securing indebtedness incurred to finance                    premiums due under such insurance policies to the extent permitted under                    section 8.1(c)(v);                (g)   Liens imposed or arising by operation of law, in each case, in respect of                    obligations not yet due or which have been postponed or are being                    contested in good faith and by appropriate proceedings to the extent that                    adequate reserves are maintained;               (h)   pledges or deposits made in the ordinary course of business in connection                   with bids or tenders or to comply with the requirements of any legislation                   or regulation applicable to the Person concerned or its business or assets;              (i)   easements, rights of way, encroachment agreements, servitudes, minor                   encroachments, minor irregularities in title or other similar encumbrances                   or privileges in respect of any real property which, either singly or in the                   aggregate, do not materially impair the value or the use thereof and which                   are not violated in any material respect by existing or proposed structures                   or land use, and any zoning restrictions and leases existing as at the date                   hereof;               (j)   undetermined or inchoate liens, rights of distress and charges incidental to                   current operations that have not at such time been filed or exercised and of                   which none of the Lenders has been given notice, or that relate to                   obligations not due or payable, or if due, the validity of which is being                   contested diligently and in good faith by appropriate proceedings by that                   Person;              (k)   reservations, limitations, provisos and conditions expressed in any original                   grant from the Crown or other grants of real or immovable property, or                   interests therein, that do not materially affect the use of the affected land                   for the purpose for which it is used by that Person;              (l)   the right reserved to or vested in any Governmental Authority by the terms                   of any lease, licence, franchise, grant or permit acquired by that Person or                   by any statutory provision to terminate any such lease, licence, franchise,                   grant or permit, or to require annual or other payments as a condition to                   the continuance thereof; and              (m)   the Lien created by a judgement of a court of competent jurisdiction, as                   long as the judgement is being contested diligently and in good faith by                   appropriate proceedings by that Person and does not result in an Event of                   Default; and      36990-2073 30186571.16   

 

                                    - 12 -               (n)   any other Lien listed in Schedule 1.1               “Permitted Transactions” has the meaning ascribed thereto in section 7.1(h);               “Person” shall mean any natural person, corporation, firm, partnership, joint              venture, trustee, executor, liquidator, administrator, legal representative or other              unincorporated association, trust, unincorporated organization, government or              Governmental Authority and pronouns relating thereto have a similar extended              meaning;                 “Pricing Date” has the meaning ascribed thereto in section 7.1(h);               “Proceeding” shall mean any suit, action or other judicial or administrative              proceeding;               “Purchase Money Security Interest” means a Lien created or incurred by the              Issuer or one of its Subsidiaries securing Indebtedness incurred to finance the              acquisition of property (including the cost of installation thereof), provided that (i)              such Lien is created substantially simultaneously with the acquisition of such              Property, (ii) such Lien does not at any time encumber any Property other than the              Property financed by such indebtedness, (iii) the amount of Indebtedness secured              thereby is not increased subsequent to such acquisition, and (iv) the principal              amount of Indebtedness secured by any such Lien at no time exceeds 100% of the              original purchase price of such property and the cost of installation thereof, and              for the purposes of this definition the term “acquisition” includes a Capital Lease;               “Purchased Shares” has the meaning ascribed thereto in section 7.1(g);               “Recognized Stock Exchange” means the TSX or, if the Common Shares are not              listed on the TSX, any other major securities exchange or market (including              without limitation the New York Stock Exchange or Nasdaq) on which the              Common Shares are then listed and posted for trading;               “Regulation S” means Regulation S adopted by the United States Securities and              Exchange Commission under the U.S. Securities Act;               “Responsible Officer of the Issuer” means the Chairman, the President, the             Chief Executive Officer, the Chief Financial Officer, any Vice-President, the              Secretary, any Assistant Secretary, or any other officer of the Issuer customarily              performing functions similar to those performed by any of the above designated              officers;               “Restricted Definitive Debenture” means a definitive certificate issued in              accordance with section 2.2 that bears the U.S. Legend;               “Restricted Global Debenture” means a Global Debenture that bears the U.S.              Legend;               “Rights” and  “Rights Plan” have the meanings ascribed thereto in              subsection 7.1(e);     36990-2073 30186571.16   

 

                                    - 13 -               “Senior Creditor” means a holder or holders of Specified Senior Indebtedness              and includes any representative or representatives or trustee or trustees of any              such holder or holders;               “Senior Security” means all Liens held by or on behalf of any Senior Creditor              and in any manner securing any Specified Senior Indebtedness;                “Special Dividend” means any dividend or other distribution of cash or property              by the Issuer to the holders of Common Shares if the amount expressed in the              Trading Currency exceeds 5% of the Closing Price for the Common Shares on the              date that the Board of Directors declares the dividend or other distribution;               “Specified Senior Indebtedness” means, without duplication such Indebtedness              as the Issuer shall designate as “Specified Senior Indebtedness” by notice to the              Trustee in writing (in all cases subject to the limitations set out in section 8.1);              provided that the aggregate principal amount of Specified Senior Indebtedness              shall not exceed $550,000,000 at any one time outstanding; provided, further, that              all Specified Senior Indebtedness must constitute:               (a)  Indebtedness referred to in paragraphs (a) and (b) of the definition of                    Indebtedness;                (b) renewals, extensions, restructurings, refinancings and refundings of any                    such Indebtedness; or               (c)   guarantees of any of the foregoing.               “Spinoff Securities” has the meaning ascribed thereto in section 7.1(d);               “Spinoff Valuation Period” has the meaning ascribed thereto in section 7.1(d);               “Stated Maturity” shall mean, with respect to any principal of or accrued              interest on a Debenture, the fixed date or dates specified on which such principal              or interest is due and payable;               “Subordination Agreements” has the meaning ascribed thereto in section 4.7;               “Subsidiary” in relation to any specified Person, shall mean (a) any corporation,              association or other business entity a majority of the outstanding Voting              Securities of which are beneficially owned, directly or indirectly, by or for such              Person and/or by or for any Subsidiary or one or more of the other Subsidiaries of              that Person (or a combination thereof), and (b) any partnership (i) the sole general              partner or the managing general partner of which is such Person or a Subsidiary of              such Person or (ii) the only general partners of which are the Person or one or              more Subsidiaries of that Person (or any combination thereof);               “Successor Issuer” or “Successor Guarantor” shall have the meaning ascribed              thereto in subsection 15.1(a);      36990-2073 30186571.16   

 

                                    - 14 -               “Supplemental Indenture” shall have the meaning ascribed thereto in              subsection 17.3;               “Taxes” has the meaning ascribed thereto in section 2.16(a);               “Trading Currency” has the meaning ascribed thereto in section 7.1;               “Trading Day” means, with respect to any Recognized Stock Exchange or any              other market for securities, any day on which such exchange or market is open for              trading or quotation;               “Transfer Agent” shall mean Computershare Trust Company of Canada or other              Person or Persons appointed as the transfer agent for the Common Shares, in such              capacity, together with such Person’s or Persons’ successor from time to time in              such capacity;               “Triggering Distribution” has the meaning ascribed thereto in section 7.1(f);               “Trustee” shall mean BNY Trust Company of Canada 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;               “TSX” means the Toronto Stock Exchange;               “Unrestricted Definitive Debenture” means a definitive certificate issued in              accordance with section 2.2 that does not bear the U.S. Legend;               “Unrestricted Global Debenture” means a Global Debenture that does not bear              the U.S. Legend;                “U.S. Legend” has the meaning ascribed thereto in section 2.21;               “U.S. Person” means a U.S. person as such term is defined in Regulation S;               “U.S. Securities Act” means the United States Securities Act of 1933, as              amended, and the rules and regulations promulgated thereunder;               “United States” or “U.S.” means the United States of America, its territories and              possessions, any state of the United States and the District of Columbia;               “United States Dollar” or “Dollar” or “$” shall mean lawful currency of the              United States;               “Voting Securities” means a security conferring a right to vote in all              circumstances or by reason of an event which has occurred and is continuing, and              includes a security convertible into such a security, as well as an option or a right              which may be exercised to acquire such a security and, in reference to the Issuer,              includes for greater certainty the Common Shares of the Issuer;      36990-2073 30186571.16   

 

                                    - 15 -               “Weighted Average Trading Price” means, with respect to any security on a              stock exchange or quotation service during a specified period, the quotient             obtained by dividing (i) the aggregate sale price of all such securities sold on such             stock exchange or quotation service during such period by (ii) the total number of             such securities sold on such stock exchange or quotation service during such             period, as determined from time to time by the Board of Directors, or upon              request of the Board of Directors, as determined by an Independent Member of              the IIROC for such purpose;               “Written Order” means a written order or request, respectively, signed in the              name of the Issuer by a Responsible Officer or director of the Issuer; and               all other terms which are used herein but not otherwise defined herein, and that              are defined in the Securities Act (Ontario), either directly or by reference therein,              shall have the meanings assigned to them therein.   1.2         Interpretation               (a)   Words importing the singular number shall include the plural and vice                    versa and words importing any gender shall include the masculine,                    feminine and neuter genders.               (b)   The words “hereto”, “herein”, “hereof”, “hereby”, “hereunder”, and other                    words of similar import refer to this Indenture as a whole and not to any                    particular article, section, subsection, paragraph, clause or other part of                    this Indenture.               (c)   Except as otherwise provided herein, any reference in this Indenture to any                    act, statute, regulation, policy statement, instrument, agreement, or section                    thereof shall be deemed to be a reference to such act, statute, regulation,                    policy statement, instrument, agreement or section thereof as amended, re-                   enacted or replaced from time to time;               (d)   Any reference herein to any agreement shall include such agreement as                    amended, restated, supplemented, replaced or otherwise modified from                    time to time to the extent permitted hereunder;                (e)   Any reference herein to any Person shall include such Person’s permitted                    successors and permitted assigns.    1.3         Accounting Terms               As used in this Indenture and in any certificate or other document made or              delivered pursuant to this Indenture, accounting terms not defined in this              Indenture, or in any such certificate or other document, and accounting terms              partly defined in this Indenture or in any such certificate or other document to the              extent not defined, shall have the respective meanings given to them under              GAAP. To the extent that the definitions of accounting terms in this Indenture, or              in any such certificate or other document are inconsistent with the meanings of     36990-2073 30186571.16   

 

                                    - 16 -               such terms under GAAP, the definitions contained in this Indenture, or in any              such certificate or other document shall prevail.   1.4         Headings and Table of Contents               The division of this Indenture, or any related document, into articles, sections,              subsections, paragraphs, clauses and other subdivisions, the provision of a table of              contents and the insertion of headings are for convenience of reference only and              shall not affect the construction or interpretation of this Indenture or any such              related document.   1.5         Section and Schedule References               Unless something in the subject matter or context is inconsistent therewith,              references in this Indenture to articles, sections, subsections, paragraphs, clauses,              other subdivisions, exhibits, appendices or schedules are to articles, sections,              subsections, paragraphs, clauses, other subdivisions, exhibits, appendices or              schedules of or to this Indenture.   1.6         Governing Law               This Indenture and each Debenture issued hereunder shall be governed by, and              construed with, the laws of the Province of Ontario and the federal laws of              Canada applicable therein and shall be treated in all respects as Ontario contracts.              The parties hereto irrevocably submit to the exclusive jurisdiction of the courts of              competent jurisdiction in the Province of Ontario in respect of any action or              proceeding relating in any way to this Indenture.   1.7         Currency               Unless expressly provided to the contrary in this Indenture or in any Debenture,              all monetary amounts in this Indenture or in such Debenture refer to United States              Dollars and all amounts payable to Holders shall be paid in United States Dollars.               For the purposes of any calculation required to be made hereunder, all              conversions of amounts in one currency into another shall be made at the              Exchange Rate in effect on the date of such calculation.   1.8         Non-Business Days               Unless expressly provided to the contrary in this Indenture or in any Debenture,              whenever any payment shall be due, any period of time shall begin or end, any              calculation is to be made or any other action is to be taken on, or as of, or from a              period ending on, a day other than a Business Day, such period of time shall begin              or end and such calculation shall be made as of the day that is not a Business Day,              but such actions shall be taken and such payment shall be made, as the case may              be, on the next succeeding Business Day.      36990-2073 30186571.16   

 

                                    - 17 -   1.9         Time               Unless otherwise expressly stated in this Indenture or in any Debenture, all              references to a time will mean such time in Toronto, Ontario. Time shall be of the              essence in this Indenture.   1.10        Independence of Covenants               Each covenant contained in this Indenture shall be construed (absent an express              provision to the contrary) as being independent of each other covenant, so that              compliance with any one covenant shall not (absent such an express contrary              provision) be deemed to excuse compliance with any other covenant.   1.11        Form of Documents Delivered to Trustee               (a)   In any case where several matters are required to be certified by, or                    covered by an opinion of, any specified Person, it is not necessary that all                    such matters be certified by, or covered by the opinion of, only one such                    Person, or that they be so certified or covered by only one document, but                    one such Person may certify or give an opinion with respect to some                    matters and one or more other such Persons as to other matters, and any                    such Person may certify or give an opinion as to such matters in one or                    several documents.               (b)   Where any Person is required to make, give or execute two or more                    applications, requests, consents, certificates, statements, opinions or other                    instruments under this Indenture, they may, but need not, be consolidated                    and form one instrument.   1.12        Acts of Holders               (a)   Any request, demand, authorization, direction, notice, consent, waiver or                    other action provided by this Indenture to be given or taken by Holders                    may be embodied in and evidenced by one or more instruments of                    substantially similar tenor signed by such Holders in person or by agents                    duly appointed in writing. Any request, demand, authorization, direction,                    notice, consent, waiver or other action provided by this Indenture to be                    given or taken by Holders may, alternatively, be embodied in and                    evidenced by the record of Holders voting in favour thereof, either in                    person or by proxies duly appointed in writing, at any meeting of Holders                    duly called and held in accordance with the provisions of Article 14, or a                    combination of such instruments and any such record. Except as herein                    otherwise expressly provided, such action shall become effective when                    such requisite instrument or instruments are delivered to the Trustee and,                    where it is hereby expressly required, to the Issuer. Such instrument or                    instruments (and the action embodied therein and evidenced thereby) are                    herein sometimes referred to as the “Act of Holders” or the “Act” of the                    Holders signing such instrument or instruments. Proof of execution of any                    such instrument or of a writing appointing any such agent shall be     36990-2073 30186571.16   

 

                                     - 18 -                      sufficient for any purpose of this Indenture and, subject to section 13.3,                     conclusive in favour of the Trustee and the Issuer, if made in the manner                     provided in this section 1.12. The record of any meeting of Holders shall                     be provided in the manner specified in section 14.7.                (b)   The fact and date of the execution by any Person of any such instrument or                     writing may be proved by the affidavit of a witness of such execution or                     by a certificate of a notary public or other officer authorized by law to take                    acknowledgements of deeds, certifying that the individual signing such                    instrument or writing acknowledged to such notary public or other officer                    the execution thereof. Where such execution is by a signer acting in a                    capacity, other than such signer’s individual capacity, such certificate or                    affidavit shall also constitute sufficient proof of such signer’s authority.                     The fact and date of the execution of any such instrument or writing, or                    the authority of the Person executing the same, may also be proved in any                    manner that the Trustee deems sufficient.               (c)   If the Issuer or the Trustee shall solicit from the Holders any Act, the                    Issuer or the Trustee, as the case may be, may, at its option, fix in advance                    a record date for the determination of Holders entitled to take such Act,                    but the Issuer or the Trustee, as the case may be, shall have no obligation                    to do so. Any such record date shall be fixed at the Issuer’s or the                    Trustee’s discretion, as the case may be, provided that such record date                    shall be fixed on a date not more than sixty (60) days prior to the Act. If                    such a record date is fixed, such Act may be sought or taken before or                    after the record date, but only the Holders of record at the close of                     business on such record date shall be deemed to be Holders for the                     purpose of determining whether Holders of the requisite proportion of                     Debentures Outstanding have authorized or agreed or consented to such                     Act, and for that purpose the Debentures Outstanding shall be computed as                     of such record date.                (d)   Any Act of the Holder of any Debenture shall bind every future holder of                     the same Debenture and the Holder of every Debenture issued upon the                     registration of transfer thereof or in exchange therefore or in lieu thereof in                     respect of anything done, suffered or omitted by the Trustee or the Issuer                     in reliance thereon, whether or not notation of such action is made upon                    such Debenture.   1.13        Interest Payments and Calculations               (a)   All interest payments to be made under this Indenture or any Debenture                    shall be paid without allowance or deduction for deemed re-investment or                    otherwise, both before and after Maturity and before and after default                    and/or judgment, if any, until payment of the amount on which such                    interest is accruing, and, to the extent permitted by Applicable Law,                    interest will accrue on overdue interest.        36990-2073 30186571.16    

 

                                     - 19 -                (b)   For the purposes of the Interest Act (Canada), if in this Indenture or in any                     Debenture a rate of interest is or is to be calculated on the basis of a period                     which is less than a full calendar year, the yearly rate of interest to which                    such rate is equivalent is such rate multiplied by the actual number of days                    in the calendar year for which such calculation is made and divided by the                    number of days in such period.               (c)   The rate of interest stipulated in this Indenture or in any Debenture will be                    calculated using the nominal rate method of calculation, and will not be                    calculated using the effective rate method of calculation or on any other                    basis that gives effect to the principle of deemed re-investment of interest.               (d)   In calculating interest under this Indenture or under a Debenture for any                    period, unless otherwise specifically stated, the first day of such period                    shall be included and the last day of such period shall be excluded.   1.14        English Language               The Issuer, the Trustee and, by their acceptance of Debentures and the benefits of              this Indenture, the Holders, acknowledge having consented to and requested that              this Indenture, each Debenture and each document related hereto and thereto be              drawn up in the English language only. La Société, le fiduciaire des débentures et,              par leur acceptation des débentures et des avantages de la présente convention,              les porteurs, reconnaissent avoir accepté et demandé que la présente convention,              chaque débenture et chaque document relié à celles-ci soient rédigés en langue              anglaise.    1.15        Successors and Assigns               All covenants and agreements in this Indenture by the Issuer shall bind its              successors and assigns, whether expressed or not.   1.16        Severability Clause               If any provision in this Indenture or in the Debentures 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.   1.17        Benefits of Indenture               Nothing in this Indenture and in the Debentures, express or implied, shall give to              any Person, other than the parties hereto and their successors hereunder, any              paying agent, any Person maintaining the record of the Holders pursuant to              section 2.15, any Transfer Agent and the Holders, any benefit or any legal or              equitable right, remedy or claim under this Indenture.        36990-2073 30186571.16    

 

                                    - 20 -   1.18        Unclaimed Debentures               Subject to Applicable Law, all Debentures together with any interest thereon              which remain unclaimed after a period of three (3) calendar years from the              Maturity Date shall be forfeited and shall revert to the Issuer.   1.19        Schedules               The following Schedules form part of this Indenture:               Schedule 1.1 – Additional Permitted Liens               Schedule 2.2 – Form of Debenture               Schedule 2.2(c) – Principal Amount Grid               Schedule 2.15(a) – Form of Certificate of Transfer               Schedule 2.15(b) – Form of Certificate of Exchange               Schedule 5.1(b) – Form of Conversion Notice               Schedule 9.6(b) – Form of Beneficial Ownership Declaration                Schedule 11.1 – Form of Guarantee               Schedule 11.3 – Opinions Regarding Guarantors   1.20        Benefits of Indenture through Trustee               For greater certainty, this Indenture is being entered into with the Trustee for the              benefit of the Holders and the Trustee declares that it holds all rights, benefits and              interests of this Indenture on behalf of and as the Person holding the power of              attorney of, the Holders and each such Person who becomes a Holder of the              Debentures from time to time.                                    ARTICLE 2                               THE DEBENTURES   2.1         Limit of Issue and Designation of Debentures               The Debentures authorized to be issued hereunder shall consist of, and be limited              to, no more than $365,000,000 aggregate principal amount and shall be              designated as “1.75% Convertible Unsecured Debentures due November 13,              2023”.   2.2         Form and Terms of Debentures               (a)   The Debentures shall be dated as of the Issue Date. The Debentures shall                    bear interest from and including the Interest Commencement Date at the                    rate of 1.75% per annum (after as well as before Maturity, default and     36990-2073 30186571.16   

 

                                    - 21 -                     judgment, with interest on overdue interest at the said rate), payable in                    equal quarterly instalments in arrears on each Interest Payment Date,                    subject to section 2.3, and the Debentures shall mature on the Maturity                    Date. Subject to the other terms hereof, the principal of the Debentures                    will be payable on the Maturity Date in lawful money of the United States                    against surrender thereof by the Holder at the Corporate Trust Office or at                    such place or places as may be designated by the Issuer for that purpose.               (b)   The Debentures shall be issued as fully registered Debentures in                    denominations of $1,000 and integral multiples of $1,000, or as a Global                    Debenture, and shall be convertible as provided for in Article 5.                (c)   The Debentures and the certificate of the Trustee endorsed thereon shall                    be substantially in the form set forth in Schedule 2.2 hereto, provided that                    if a Debenture is issued as a Global Debenture in accordance with                    section 2.11, it shall have appended thereto a principal amount grid in the                    form of Schedule 2.2(c), which shall be appropriately adjusted at such                    times as Debentures are converted or repurchased in accordance with the                    terms hereof.    2.3         Interest               Each Debenture issued hereunder, whether issued originally or in exchange for              another Debenture, shall bear interest from and including Interest Commencement              Date or from and including the last Interest Payment Date on which interest shall              have been paid or made available for payment on the Debentures then              Outstanding, whichever shall be the later, to but excluding the earlier of:                     (i)   the following Interest Payment Date;                     (ii)  if purchased in accordance with section 3.1, the date of payment;                     (iii) if repurchased in accordance with section 3.2, the Change of                          Control Repurchase Date;                     (iv)  if converted in accordance with section 5.1, the Conversion Date;                          and                     (v)   the Maturity Date;                      as the case may be (the “Interest Period”), upon due presentation and                    surrender thereof for payment on or after the appropriate date. The interest                    payable per $1,000 principal amount of Debentures in respect of an                    Interest Period other than an Interest Period that begins on an Interest                    Payment Date and ends on and includes a date immediately preceding an                    Interest Payment Date shall be calculated by multiplying $1,000 by the                    interest rate of 1.75% per annum, dividing the product so obtained by                    365 or 366 days, as the case may be, and multiplying the quotient by the                    actual number of days in the said Interest Period. The interest payable per     36990-2073 30186571.16   

 

                                     - 22 -                      $1,000 principal amount of Debentures in respect of an Interest Period that                     begins on an Interest Payment Date and ends on and includes a date                     immediately preceding an Interest Payment Date shall be calculated by                     multiplying $1,000 by the interest rate of 1.75% per annum and dividing                     the product so obtained by four.  If an Event of Default has occurred and is                     continuing, the interest payable in accordance with this section 2.3 will be                     calculated on the basis of 5.75 % per annum instead of 1.75% per annum                     for that part of the Interest Period commencing on the date that the Event                    of Default occurred up to and including the date on which such Event of                    Default is no longer occurring.    2.4         Prescription               The right of the Holders to exercise their rights under this Indenture shall become               void unless the Debentures are presented for payment within a period of three (3)               years from Maturity, after which payment thereof shall be governed by the               provisions of Article 12 hereof. The Issuer shall have satisfied its obligations               under the Debentures upon irrevocable remittance to the Trustee for the account               of the Holders, upon repurchase, conversion or at the Maturity Date, of any and               all consideration due hereunder in cash or, to the extent provided for and               permitted hereunder, by the making of a Common Share Payment, subject to and               in accordance with the provisions of this Indenture, and such remittance shall for               all purposes be deemed a payment to the Holders, and to that extent such               Debentures shall thereafter not be considered as Outstanding and the Holders               shall have no right, except to receive payment out of the moneys so paid and               deposited.    2.5         Issue of Debentures                Debentures in such aggregate principal amounts as the Board of Directors shall               determine in accordance with the terms hereof and denominated in lawful money               of the United States shall be executed by the Issuer from time to time and,               forthwith after such execution, shall be delivered to the Trustee and shall be               certified by the Trustee and delivered to the Issuer in accordance with the terms of              section 2.7. Other than as contemplated by subsection 2.8(b), the Trustee shall              receive no consideration for the certification of Debentures.   2.6         Execution               (a)   The Debentures shall be executed on behalf of the Issuer by any                    Responsible Officer of the Issuer. The signature of any of such officer on                    the Debentures may be manual, facsimile or electronic. Debentures                    bearing the manual, facsimile or electronic signatures of individuals who                    were at any time the proper officers of the Issuer shall bind the Issuer,                    notwithstanding that such individuals or any of them have ceased to hold                    such offices prior to the authentication and delivery of such Debentures.               (b)   If Debentures are issued as Definitive Debentures, the Issuer shall provide                    to the Trustee a supply of certificates to evidence such Definitive       36990-2073 30186571.16    

 

                                     - 23 -                      Debentures in such form, in such amounts, bearing such distinguishing                     letters and numbers, and as at such times as are necessary to enable the                     Trustee to fulfil its responsibilities under this Indenture.   2.7         Certification by Trustee               (a)   At any time and from time to time after the execution and delivery of this                     Indenture, and in accordance with the terms hereof, the Issuer may deliver                     Debentures executed on behalf of the Issuer to the Trustee for                    certification, pursuant to an Issuer Order applicable thereto and evidence                    of compliance, if requested by the Trustee, in accordance with section 13.4                    and Applicable Law. Upon receipt by the Trustee of an Issuer Order                    applicable to such Debentures and such evidence of compliance, the                    Trustee shall certify and deliver such Debentures in the manner specified                    in such Issuer Order, without receiving any consideration for such                    certification and delivery.               (b)   No Holder shall be entitled to any right or benefit under this Indenture                     with respect to a Debenture, and such Debenture shall not be valid or                     binding for any purpose, unless such Debenture has been certified by the                     Trustee, as evidenced by the signature of an authorized officer of the                     Trustee. Such certification upon any Debenture shall be conclusive                     evidence, and the only evidence, that such Debenture has been issued                     under this Indenture.                (c)   Debentures bearing the signature of an individual who was, at the time                    that such signature was affixed, an authorized signing officer of the                    Trustee, shall be valid and binding on the Trustee notwithstanding that                    such individual ceased to be an authorized signing officer of the Trustee                    prior to the delivery of such Debentures.               (d)   The certification by the Trustee on the Debentures shall not be construed                    as a representation or warranty by the Trustee as to the validity of this                    Indenture or of the Debentures (except in respect of the due certification                    thereof and any other warranties implied by law) or as to the performance                    by the Issuer of its obligations under this Indenture and the Trustee shall in                    no respect be liable or answerable for the use made of the Debentures or                    any of them or of the proceeds thereof.   2.8         Registration of Exchanges               (a)   Subject to section 2.15, Debentures may be exchanged for one or more                    Debentures in an equal aggregate principal amount upon surrender of the                    Debentures to be exchanged at the specified office of the Trustee;                    provided, however, that each Debenture issued in exchange for such                    original Debenture shall have a principal amount in an authorized                    denomination as provided for herein.        36990-2073 30186571.16    

 

                                     - 24 -                (b)   The Trustee may make a charge to reimburse itself for any stamp taxes or                     governmental charges required to be paid and a reasonable charge for its                     services and a reasonable sum per Debenture created and issued upon any                     exchange or transfer of Debentures effected by it. Payment of such                     charges will be made by the Person requesting the exchange or transfer as                     a condition precedent to such exchange or transfer.    2.9         Persons Entitled to Payment                (a)   Prior to due presentment for registration of a transfer of any Debenture,                     the Issuer, the Trustee and any other Person, as the case may be, may treat                     the Person in whose name any Debenture is registered in the applicable                     register (including in the case of a Global Debenture, the Depository or the                     nominee of such Depository in whose name such Global Debenture is                     registered) as the absolute and sole owner of such Debenture for all                     purposes including receiving payment of the principal of, and any                     premium, if any, interest or other amount on such Debenture, receiving                     any notice to be given to the Holder of such Debenture, and taking any                     Act of Holders with respect to such Debenture, whether or not any                     payment with respect to such Debenture shall be overdue, and none of the                     Issuer, the Trustee or any other Person, as the case may be, shall be                     affected by notice to the contrary.                 (b)   Delivery of a Debenture to the Trustee by or on behalf of the Holder                     thereof shall, upon payment of such Debenture, be a valid discharge to the                    Issuer of all obligations evidenced by such Debenture. None of the Issuer,                     the Trustee or any other Person shall be bound to inquire into the title of                    any such Holder.               (c)   In the case of the death of one or more joint registered Holders of a                    Debenture, the principal of, and premium, if any, interest and any other                    amounts on such Debenture may be paid to the survivor or survivors of                     such registered Holders whose receipt of such payment, accompanied by                    the delivery of such Debenture, shall constitute a valid discharge to the                    Issuer and the Trustee.   2.10        Payment of Principal and Interest on Definitive Debentures               (a)   Subject to repurchase or conversion pursuant to the terms hereof, as                    payments in respect of interest on the Definitive Debentures become due,                    interest payable on the Definitive Debentures on an Interest Payment Date                    will be payable by the Issuer to the Holders thereof in whose names the                    Debentures are registered at the close of business on the Interest Record                    Date with respect to the applicable Interest Payment Date.  The Issuer                    shall no later than 10:00 a.m. on the Business Day preceding such Interest                    Payment Date, provide to the Trustee such payment by electronic funds                    transfer to an account designated by the Trustee for all amounts due in                    respect of such interest, in each case to enable the Trustee to forward such                    payment to the Holder in whose name any Debenture is registered at the       36990-2073 30186571.16    

 

                                    - 25 -                     close of business on the Interest Record Date with respect to the applicable                    Interest Payment Date.                     Subject to section 2.16, the forwarding of such funds by the Issuer to the                    Trustee pursuant to subsection 2.10(a) above and the subsequent delivery                    of such funds by the Trustee to the Holders shall satisfy and discharge the                    Issuer’s liability for payment of the interest on the Debentures to the                    extent of the sums represented thereby, plus the amount of any                    withholding or other tax deducted in accordance with Applicable Law.                      Notwithstanding the foregoing, if the Issuer is prevented by circumstances                    beyond its control from making payment of any interest due on each                    Debenture in the manner provided above, the Issuer may make payment of                    such interest or make such interest available for payment in any other                    manner acceptable to the Trustee with the same effect as though payment                    had been made in the manner provided above so long as such payment is                    made in cash to the Holders and there is no delay in making such payment.                (b)   If a Debenture or a portion thereof is called or presented for repurchase or                    conversion and the Payment Date or Conversion Date is subsequent to an                    Interest Record Date but prior to the related Interest Payment Date,                    interest accrued on such Debenture will be paid upon presentation and                    surrender of such Debenture or portion thereof up to but excluding the                    Payment Date or Conversion Date to the Holders thereof in whose names                    the Debentures are registered at the close of business on the Interest                    Record Date.               (c)   Subject to the foregoing provisions of this section, each Debenture                    delivered in exchange for or in lieu of any other Debenture shall carry the                    rights to interest accrued and unpaid, and to accrue, that were carried by                    such other Debenture.    2.11        Book-Based System               (a)   In the event that all of the Outstanding Definitive Debentures are                    registered in the name of “CDS & Co.” or “Cede & Co.”, the Trustee may                    issue, in replacement of the Definitive Debentures, one or more permanent                    global security certificates in the form of the certificate set out in                    Schedule 2.2 hereto together with the legend provided for in subsection (b)                    and section 2.20, as applicable (the “Global Debenture(s)”). The Global                    Debenture(s) shall be held by, or on behalf of, the Depository as                    depository of the Participants in the Book-Based System for such                    Depository and shall be registered in the name of “CDS & Co.” or “Cede                    & Co.”, or such other names as the applicable Depository may use from                    time to time as its nominee for the purposes of its Book-Based System. In                    the event that all of the Outstanding Debentures are registered in the name                    of “CDS & Co.” or “Cede & Co.”, no Beneficial Holder will receive                    Definitive Debentures representing their beneficial ownership in                    Debentures unless the Issuer determines to terminate the Book-Entry Only     36990-2073 30186571.16   

 

                                    - 26 -                     Debentures. Where all of the Outstanding Definitive Debentures are                    represented by a Global Debenture, the Debentures represented thereby                    shall be deemed for the purposes hereof to have been issued as Book-                   Entry Only Debentures.               (b)   The Global Debenture(s) shall bear a legend in substantially the following                    form subject to modification as required by CDS:               “UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED              REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY              SERVICES INC. (“CDS”) TO BLACKBERRY LIMITED (THE “ISSUER”)             OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR              PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF              IS REGISTERED IN THE NAME OF CDS & CO., OR IN SUCH OTHER              NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE              OF CDS (AND ANY PAYMENT IS MADE TO CDS & CO. OR TO SUCH              OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED             REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR OTHER             USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON             IS WRONGFUL SINCE THE REGISTERED HOLDER HEREOF, CDS &             CO., HAS AN INTEREST HEREIN. THIS CERTIFICATE IS ISSUED             PURSUANT TO A MASTER LETTER OF REPRESENTATIONS OF THE             ISSUER TO CDS, AS SUCH LETTER MAY BE REPLACED OR             AMENDED FROM TIME TO TIME.”               (c)   The Global Debenture(s) shall bear a legend in substantially the following                   form subject to modification as required by DTC:              “UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED             REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW             YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO             BLACKBERRY LIMITED (THE “ISSUER”) OR ITS AGENT FOR             REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND             ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE             & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN             AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS             MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS             REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),             ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR             OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS             THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN             INTEREST HEREIN.              TRANSFERS OF THIS CERTIFICATE SHALL BE LIMITED TO             TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, TO NOMINEES             OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S             NOMINEE AND TRANSFERS OF PORTIONS OF THIS CERTIFICATE             SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH     36990-2073 30186571.16   

 

                                    - 27 -               THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED              TO ON THE REVERSE HEREOF.”   2.12        Discontinuation of Book-Based System    If:              (a)   either Depository has notified the Issuer and the Trustee that such                    Depository is unwilling or unable to continue as a Depository, or either                    Depository ceases to be a clearing agent registered or designated under the                    Applicable Securities Laws of the jurisdiction where such Depository has                    its principal offices; or               (b)   the Trustee has determined that an Event of Default has occurred and is                    continuing with respect to the Debentures and Beneficial Holders                    representing, in the aggregate, more than 25% of the aggregate principal                    amount of the Debentures then Outstanding advise the Depositories in                    writing, through the Participants, that the continuation of the Book-Based                    System for such Debentures is no longer in their best interests and also                    provided that at the time of such transfer the Trustee has not waived the                    Event of Default pursuant to sections 10.3 or 10.4;         then the Beneficial Holders of the Debentures represented by the Global Debentures at        such time shall receive Definitive Debentures for such Debentures; provided that if        clause (a) applies to only one of the Depositories, then only the Beneficial Holders of the        Debentures represented by the Global Debentures for such Depository at such time shall        receive Definitive Debentures for such Debentures.  2.13        Payments of Principal and Interest for Book-Entry Only Debentures               Subject to Article 6, as payments in respect of principal and interest on the              Debentures represented by the Global Debenture(s) become due, the Issuer shall,              no later than on the applicable Interest Payment Date, date of repurchase or              conversion or on the Maturity Date, as the case may be, provide to the Trustee              such payment by electronic funds transfer to an account designated by the              Trustee, at or before 10:00 a.m. on the Business Day preceding such Interest             Payment Date, date of repurchase or conversion or the Maturity Date, as the case             may be, for all amounts due in respect of such principal and interest on the             Debentures represented by the Global Debenture(s) to enable the Trustee to make             an electronic funds transfer of such funds to the Depositories for credit by the             Depositories to Participants’ accounts.              Neither the Issuer nor the Trustee will be liable or responsible to any Person for             any aspect of the records related to or payments made on account of beneficial             interests in any Global Debenture or for maintaining, reviewing or supervising             any records relating to such beneficial interests.      36990-2073 30186571.16   

 

                                     - 28 -    2.14        Rank                The Debentures shall be direct, unsecured obligations of the Issuer and the               Guarantees will be direct, unsecured obligations of the Guarantors. The               Debentures certified and issued under this Indenture rank pari passu with one               another, in accordance with their tenor without discrimination, preference or               priority and, subject to statutory preferred exceptions, shall rank equally with all               other present and future unsubordinated unsecured Indebtedness of the Issuer              other than Specified Senior Indebtedness permitted under section 8.1(b).  The              Debentures and the Guarantees shall be subordinated, in accordance with the              provisions of Article 4, to the Specified Senior Indebtedness of the Issuer and the              Guarantors permitted under section 8.1(b).    2.15        Register and Transfer               (a)   The Issuer shall cause to be kept by and at the principal office of the                    Trustee in the City of Toronto, Province of Ontario, a register, and in such                    other place or places as the Issuer with the approval of the Trustee may                    designate, branch registers, in which shall be entered the names and latest                    known addresses of the Holders and all transfers of Debentures. Such                    registration shall be noted on the Debentures by the Trustee. No transfer of                    a Debenture shall be effective as against the Issuer unless made on one of                    the appropriate registers by the registered Holder or his executors or                    administrators or other legal representatives or his or their attorney duly                    appointed by an instrument in writing in form and execution satisfactory                    to the Trustee, upon compliance with this Indenture and any other such                    requirements as the Trustee may prescribe, and unless such transfer shall                    have been duly noted on such Debenture by the Trustee;               (b)   with respect to Debentures issued as Book-Entry Only Debentures, the                    Issuer shall cause to be kept by and at the principal office of the Trustee in                    the City of Toronto, Province of Ontario, a central register in which shall                    be entered the name(s) and latest known address(es) of the Holder(s) of                    each Global Debenture (being one of the Depositories, or their respective                    nominee, for such Global Debenture) and the other particulars prescribed                    by law of the Debentures held by it (them) and all transfers of Debentures.                    Notwithstanding any other provision of this Indenture, a Global Debenture                    may not be transferred by the registered holder thereof except through                    records maintained by CDS or its nominee and DTC or its nominee in the                    following circumstances or as otherwise specified in a Board Resolution                    or Written Order;               (c)   a Global Debenture may be transferred by a Depository to a nominee of                    such Depository or by a nominee of a Depository to such Depository or to                    another nominee of such Depository or by a Depository or its nominee to a                    successor Depository or its nominee;               (d)   a Global Debenture may be transferred at any time after the Depository for                    such Global Debenture (i) has notified the Issuer that it is unwilling or       36990-2073 30186571.16    

 

                                    - 29 -                     unable to continue as Depository for such Global Debenture or (ii) ceases                    to be eligible to be a Depository provided that at the time of such transfer                    the Issuer has not appointed a successor Depository for such Global                    Debenture;               (e)   a Global Debenture may be transferred at any time after the Issuer has                    determined, in its sole discretion, to terminate the Book-Based System in                    respect of such Global Debenture and has communicated such                    determination to the Trustee in writing; and               (f)   a Global Debenture may be transferred at any time after the Trustee has                    determined that an Event of Default has occurred and is continuing with                    respect to the Debentures issued as a Global Debenture, provided that at                    the time of such transfer the Trustee has not waived the Event of Default                    pursuant to Article 10.               (g)   Notwithstanding any other provisions of this Indenture or the Debentures,                    transfers and exchanges of Debentures and beneficial interests in Global                    Debentures shall be made in accordance with this subsection 2.15(g).                       (i)   Transfer of Beneficial Interests in the Same Global Debenture.                           Except as may be required by the Trustee or the applicable                          Depository, no written orders or instructions shall be required to be                          delivered to the Trustee to effect a transfer of a beneficial interest                          in a Global Debenture to Persons who take delivery thereof in the                          form of a beneficial interest in the same Global Debenture.                     (ii)  Transfer and Exchange of Beneficial Interests in a Restricted                          Global Debenture for Beneficial Interests in an Unrestricted                          Global Debenture. A beneficial interest in a Restricted Global                          Debenture may be exchanged by any holder thereof for a beneficial                         interest in an Unrestricted Global Debenture or transferred to a                          Person who takes delivery thereof in the form of a beneficial                         interest in an Unrestricted Global Debenture if the Trustee receives                         the following:                           (1)   if the holder of such beneficial interest in a Restricted                               Global Debenture proposes to exchange such beneficial                               interest for a beneficial interest in an Unrestricted Global                               Debenture, a certificate from such holder in the form of                               Schedule 2.15(b) hereto, including the certifications in item                               (1)(a) thereof; or                          (2)   if the holder of such beneficial interest in a Restricted                               Global Debenture proposes to transfer such beneficial                               interest to a Person who shall take delivery thereof in the                               form of a beneficial interest in an Unrestricted Global                               Debenture, a certificate from such holder in the form of     36990-2073 30186571.16   

 

                                    - 30 -                                 Schedule 2.15(a) hereto, including the certifications in                                items (2) or (3) thereof;                     and, in the event of an exchange or transfer based on the certifications in                    item 3(b) of Schedule 2.15(a), if the Trustee so requests, an opinion of                    counsel or other documentation in form reasonably acceptable to the                    Trustee to the effect that such transfer or exchange is being made pursuant                    to an exemption from, or in a transaction not subject to, the registration                    requirements of the U.S. Securities Act.                     (iii) Transfer and Exchange of Beneficial Interests in an Unrestricted                          Global Debenture for Beneficial Interests in a Restricted Global                          Debenture. A beneficial interest in any Unrestricted Global                          Debenture may be exchanged by any holder thereof for a beneficial                          interest in a Restricted Global Debenture or transferred to a Person                          who takes delivery thereof in the form of a beneficial interest in a                          Restricted Global Debenture if the Trustee receives the following:                            (1)   if the holder of such beneficial interest in an Unrestricted                                Global Debenture proposes to exchange such beneficial                                interest for a beneficial interest in a Restricted Global                                Debenture, a certificate from such holder in the form of                                Schedule 2.15(b) hereto, including the certifications in item                                (2) thereof; or                           (2)   if the holder of such beneficial interest in an Unrestricted                                Global Debenture proposes to transfer such beneficial                                interest to a Person who shall take delivery thereof in the                                form of a beneficial interest in a Restricted Global                                Debenture, a certificate from such holder in the form of                                Schedule 2.15(a) hereto, including the certifications in item                                (1) thereof.                     (iv)  Transfer of Restricted Definitive Debentures for Restricted                          Definitive Debentures. A Restricted Definitive Debenture may be                          transferred to a Person who takes delivery thereof in the form of a                          Restricted Definitive Debenture if the Trustee receives a certificate                          to the effect set forth in Schedule 2.15(a) hereto, including the                          certifications in item (1) thereof.                     (v)   Transfer and Exchange of Restricted Definitive Debentures for                          Unrestricted Definitive Debentures. A Restricted Definitive                          Debenture may be exchanged by the holder thereof for an                          Unrestricted Definitive Debenture or transferred to a Person who                          takes delivery thereof in the form of an Unrestricted Definitive                          Debenture if the Trustee receives the following:                           (1)   if the holder of such Restricted Definitive Debenture                                proposes to exchange such Debenture for an Unrestricted     36990-2073 30186571.16   

 

                                    - 31 -                                 Definitive Debenture, a certificate from such holder in the                                form of Schedule 2.15(b) hereto, including the                                certifications in item (1)(b) thereof; or                           (2)   if the holder of such Restricted Definitive Debenture                                proposes to transfer such Debenture to a Person who shall                                take delivery thereof in the form of an Unrestricted                                Definitive Debenture, a certificate from such holder in the                                form of Schedule 2.15(a) hereto, including the                                certifications in item (2) or (3) thereof;                     and, in the event of an exchange or transfer based on the certifications in                    item 3(b) of Schedule 2.15(a), if the Trustee so requests, an opinion of                    counsel or other documentation in form reasonably acceptable to the                    Trustee to the effect that such transfer or exchange is in compliance with                    the U.S. Securities Act.                     (vi)  Transfer of Unrestricted Definitive Notes for Unrestricted                          Definitive Notes. Except as may be required by the Trustee or the                          applicable Depository, no written orders or instructions shall be                          required to be delivered to the Trustee to effect a transfer of an                          Unrestricted Definitive Note to Persons who take delivery thereof                          in the form of an Unrestricted Definitive Note.   2.16        Additional Amounts               (a)   Any payments made by or on behalf of the Issuer or Guarantor under or                    with respect to the Debentures (including, without limitation, any                    Common Share Payment) (in this section 2.16, such payment, a                    “Debenture Payment”) will be made free and clear of and without                    withholding or deduction for or on account of any present or future tax,                    duty, levy, impost, assessment or other governmental charge (including,                    without limitation, penalties, interest and other liabilities related thereto)                    imposed or levied by or on behalf of the Government of Canada or of any                    province or territory of Canada or by any authority or agency thereof or                   therein having power to tax, including, without limitation any such                   charges or taxes imposed under Part XIII of the Income Tax Act (Canada)                   (or any successor legislation of similar effect) (“Taxes”), unless the Issuer                   or Guarantor is required to withhold or deduct any amount, for or on                   account of, Taxes by Applicable Law.  If the Issuer or Guarantor is so                   required to withhold or deduct any amount for or on account of Taxes                   from any Debenture Payment made under or with respect to the                   Debentures, the Trustee will make such withholding or deduction and will                   remit the full amount withheld or deducted to the relevant Governmental                   Authority as and when required by Applicable Law and the Issuer or                   Guarantor, as applicable, will pay to the Trustee for payment to the                    relevant Holder such additional amounts (the “Additional Amounts”) as                   may be necessary so that the net amount received by each Holder                   (including Additional Amounts) after the withholding or deduction of any     36990-2073 30186571.16   

 

                                    - 32 -                     Indemnified Taxes will not be less than the amount such Holder would                    have received if such Indemnified Taxes had not been withheld or                    deducted.                     For this purpose, “Indemnified Taxes” means Taxes other than Taxes                    imposed on a Holder or Beneficial Holder (i) by reason of such Holder or                    Beneficial Holder being a Person with whom the Issuer or Guarantor is not                    dealing at arm’s length for the purposes of the Income Tax Act (Canada) at                    the time of making a Debenture Payment, (ii) by reason of such Holder or                    Beneficial Holder being, or not dealing at arm’s length with, a “specified                    shareholder” as defined in subsection 18(5) of the Income Tax Act                    (Canada) of the Issuer or Guarantor, (iii) by reason of the existence of any                    present or former connection (including, without limitation, carrying on                    business or having a permanent establishment or fixed base) between such                    Holder or Beneficial Holder (or between a fiduciary, settlor, beneficiary,                    member or shareholder of, or possessor of power over, such Holder or                    Beneficial Owner, if such Holder or Beneficial Owner is an estate, trust,                    partnership, limited liability company or corporation) and Canada or any                    province or territory thereof or therein, other than, in either case, solely by                    reason of the Holder’s or Beneficial Holder’s activity in connection with                    purchasing the Debentures, the mere holding of the Debentures or                    receiving payments under such Debentures, (iv) by reason of the failure to                    comply with any certification, identification, information documentation                    or other reporting requirement required by Applicable Law or an                    applicable treaty as a precondition to, exemption from, or a reduction in                    the rate of deduction or withholding of such Taxes, (v) that is an estate,                    inheritance, gift, sales, transfer or personal property Tax or any similar                    Tax with respect to a Debenture; (vi) that is a branch profits Tax, franchise                    Tax or Tax imposed on net income or capital; (vii) that is a Tax which                    would not have been imposed but for the presentation of a Debenture                    (where presentation is required) for payment on a date more than 30 days                    after (I) the date on which such payment became due and payable or (II)                    the date on which payment thereof is duly provided for, whichever occurs                    later; (viii) that is a withholding or deduction imposed pursuant to (I)                    sections 1471 to 1474 of the U.S. Internal Revenue Code of 1986, as                    amended (“FATCA”), or any successor version thereof, or any similar                   legislation imposed by any other governmental authority, (II) any treaty,                   law, regulation or other official guidance enacted by Canada implementing                   FATCA or an intergovernmental agreement with respect to FATCA or any                   similar legislation imposed by any other governmental authority, or (III)                   any agreement between Issuer and the United States or any authority                   thereof implementing FATCA; or (ix) that arises from any combination of                   the items listed above, nor shall Indemnified Taxes include any Taxes with                   respect to any payment on a Debenture to a holder who is a fiduciary or                   partnership or any Person other than the sole beneficial owner of such                   payment to the extent a beneficiary or settlor with respect to such                   fiduciary, a member of such partnership or such beneficial owner would                   not have been entitled to the Additional Amounts had such beneficiary,     36990-2073 30186571.16   

 

                                    - 33 -                     settlor, member or beneficial owner held its interest in the Debenture                    directly.               (b)   Within ninety (90) days after the date the payment of any Taxes is due                    pursuant to Applicable Law, the Trustee will furnish to the Issuer copies                    of tax receipts, if any, evidencing such payment by the Trustee.                (c)   As soon as practicable prior to each date on which any Debenture Payment                    is due and payable, if the Issuer or Guarantor to its knowledge will be                    obligated to pay Additional Amounts with respect to such Debenture                    Payment, the Issuer or Guarantor, as applicable, will deliver to the Trustee                    an Officer’s Certificate stating the fact that such Additional Amounts will                    be payable and the amounts so payable and will set forth such other                    information necessary to enable the Trustee to pay such Additional                    Amounts to Holders on the date payment is due.               (d)   Whenever in the Indenture or in any Debenture there is mentioned, in any                    context, the payment of principal (and premium, if any), a purchase price,                    interest or any other Debenture Payment, such mention shall be deemed to                    include mention of the payment of Additional Amounts to the extent that,                    in such context, Additional Amounts are, were or would be payable in                    respect thereof.               (e)   The Issuer and the Guarantor will indemnify and hold harmless each                    Holder and Beneficial Holder and upon written request reimburse each of                   the Holders and Beneficial Holders for the amount of (i) any Indemnified                   Taxes so levied or imposed and paid by the Holder or Beneficial Holder,                   as applicable, as a result of Debenture Payments, and (ii) any Indemnified                   Taxes levied or imposed and paid by the Holder or Beneficial Holder with                   respect to reimbursement under (i) above.              (f)   If the Issuer or Guarantor pays any indemnity or Additional Amounts                   under this section 2.16 to a Holder and the Holder or Beneficial Holder at                   any time thereafter receives a refund in respect of Taxes or a credit with                   respect to payment of Taxes (in both cases, in respect of a Debenture                   Payment in respect of which such indemnity or Additional Amount was                   paid), then such Holder or Beneficial Holder shall promptly pay to the                   Issuer or Guarantor, as applicable, the amount of such refund or credit net                   of all out-of-pocket expenses reasonably incurred by the Holder or                   Beneficial Holder to obtain such refund or credit.              (g)   Where the Issuer is required by Applicable Law to withhold or deduct                   Taxes from any payment made on a conversion or such other circumstance                   where the Issuer is issuing Common Shares to a Holder and there is                   insufficient cash being paid to satisfy the withholding required, the                   Trustee, on the written request of the Issuer but for the account of the                   Holder, shall facilitate the sale to the extent it is permitted by Applicable                   Securities Laws, through the investment banks, brokers or dealers selected                   by the Issuer, out of the Common Shares issued by the Issuer to the     36990-2073 30186571.16   

 

                                    - 34 -                     applicable Holder, such number of Common Shares that is sufficient to                    yield net proceeds (after payment of all costs) to cover the amount of                    Taxes required to be withheld, and shall remit same on behalf of the Issuer                    to the relevant Governmental Authority as and when required by                    Applicable Law and shall transfer the balance of the cash proceeds, if any,                    to the applicable Holder.   2.17        Cancellation of Debentures               (a)   All Debentures surrendered for payment of the final amount required to be                    paid thereon, or that have been surrendered to the Trustee for registration                    of exchange or transfer, shall be promptly cancelled by the Trustee on                    receipt. The Trustee shall give prompt written notice to the Issuer of the                    particulars of any Debentures cancelled by it.               (b)   The Issuer may, in its discretion at any time, deliver to the Trustee for                    cancellation any Debentures which the Issuer has purchased as provided                    for in this Indenture, and all such Debentures so delivered shall be                    cancelled by the Trustee.               (c)   All Debentures which have been cancelled by the Trustee shall be                    destroyed by the Trustee in accordance with its standard practices, and the                    Trustee shall furnish to the Issuer a destruction certificate setting forth the                    numbers and denominations of the Debentures so destroyed.   2.18        Mutilated, Lost, Stolen or Destroyed Debentures               (a)   If any Debenture has been mutilated or defaced or has or has been alleged                    to have been lost, stolen or destroyed, then, on application by the                    applicable Holder to the Trustee, the Issuer may, in its discretion, execute,                   and upon such execution the Trustee shall certify and deliver, a new                   Debenture of the same date and amount as the defaced, mutilated, lost,                   stolen or destroyed Debenture in exchange for and in place of the defaced                   or mutilated Debenture, and in lieu of and in substitution for the lost,                   stolen or destroyed Debenture. Notwithstanding the foregoing, no                   Debenture shall be delivered as a replacement for any Debenture which                   has been mutilated or defaced otherwise than upon surrender of the                   mutilated or defaced Debenture, and no Debenture shall be delivered as a                   replacement for any Debenture which has been lost, stolen or destroyed                   unless the applicant for the replacement Debenture has furnished to the                   Issuer and the Trustee evidence, satisfactory in form and substance to the                   Issuer and the Trustee, of its ownership of, and of such loss, theft or                   destruction of, such Debenture and has provided a surety bond and                   indemnity to the Issuer and the Trustee in amount, form and substance                   satisfactory to each of them. Any instructions by the Issuer to the Trustee                   under this section shall include such indemnity for the protection of the                   Trustee as the Trustee may reasonably require.      36990-2073 30186571.16   

 

                                     - 35 -                (b)   If any mutilated, defaced, lost, stolen or destroyed Debenture has become                     or is about to become due and payable, the Issuer, in its discretion, may,                     instead of executing a replacement Debenture, pay to the Holder thereof                     the full amount outstanding on such mutilated, defaced, lost, stolen or                     destroyed Debenture.                 (c)   Upon the issuance of a replacement Debenture, the Issuer may require the                     applicant for such replacement Debenture to pay a sum sufficient to cover                     any tax or other governmental charge that may be imposed in relation to                     such issuance and any other expenses (including the fees and expenses of                     the Trustee and the Issuer) connected with such issuance.                (d)   Each replacement Debenture shall bear a unique serial number and be in a                    form otherwise identical to the Debenture it replaces and shall be entitled                    to the benefits of this Indenture to the same extent and in the same manner                    as the Debenture it replaces.               (e)   Unless the Issuer instructs otherwise, the Trustee shall, in accordance with                    its practice, destroy each mutilated or defaced Debenture surrendered to                    and cancelled by it and in respect of which a replacement Debenture has                    been delivered or moneys have been paid and shall, as soon as reasonably                    practicable, furnish to the Issuer a certificate as to such destruction                    specifying in numerical sequence the serial numbers of the Debentures so                    destroyed.   2.19        Access to Lists of Holders               (a)   The register of Holders maintained by the Trustee will, at all reasonable                    times during the regular business hours of the Trustee, be open for                    inspection by the Issuer.               (b)   If any Beneficial Holder or group of Beneficial Holders, or such one or                    more Holders as may be permitted by Applicable Law (in each case, the                    “Applicants”) apply to the Trustee (with a copy to the Issuer), then the                    Trustee, after having been funded and indemnified to its reasonable                    satisfaction by such Applicants for its related costs and expenses, shall                     afford or shall cause the Issuer to afford the Applicants access during                     normal business hours to the most recent list of Holders within ten                     (10) Business Days after the receipt of such application by the Trustee.                     Such list shall be as of a date no more than ten (10) days (or such other                     date as may be mandated by Applicable Law) prior to the date of receipt                     of the Applicants’ request.    2.20        Private Placement Legend                The Debentures and the Common Shares issuable upon conversion of the               Debentures have not been qualified for sale to the public under Applicable               Securities Laws. The Debentures and, if issued prior to 4 months and a day after               the Issue Date, the Common Shares issuable upon conversion of the Debentures,       36990-2073 30186571.16    

 

                                    - 36 -               shall bear a legend in the following form unless, in any such case, the Issuer              determines that such legend is not required by Applicable Securities Laws in              order to permit the holder to freely trade such Debentures:               UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER              OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE              [INSERT DATE THAT IS 4 MONTHS AND A DAY AFTER THE ISSUE              DATE].   2.21        U.S. Legend on Debentures               Any certificate evidencing Debentures (and all securities issued in exchange              therefor or substitution thereof, other than the Common Shares, if any, issued              upon conversion thereof which shall bear the legend set forth in section  5.4) shall              bear a legend in substantially the following form (the “U.S. Legend”); provided              that the legend may be removed in accordance with subsection 2.15(g), as              applicable:               “THESE SECURITIES HAVE BEEN ISSUED IN A TRANSACTION              EXEMPT FROM REGISTRATION PURSUANT TO REGULATION S OF              THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE              “U.S. SECURITIES ACT”), AND, ACCORDINGLY, THIS DEBENTURE              AND COMMON SHARES ISSUABLE UPON CONVERSION OF THIS              DEBENTURE HAVE NOT BEEN REGISTERED UNDER THE U.S.              SECURITIES ACT, OR ANY APPLICABLE STATE SECURITIES LAWS.               NEITHER THIS DEBENTURE NOR ANY INTEREST OR              PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED,              TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE              DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR              UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT              TO, SUCH REGISTRATION.  THE HOLDER OF THIS DEBENTURE BY              ITS ACCEPTANCE HEREOF AGREES THAT THIS DEBENTURE AND              ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED,              SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE ISSUER              OR A SUBSIDIARY OF THE ISSUER, (B) IN A TRANSACTION              MEETING THE REQUIREMENTS OF ANY APPLICABLE EXEMPTION              FROM THE REGISTRATION REQUIREMENTS OF THE U.S.              SECURITIES ACT OR (C) PURSUANT TO AN EFFECTIVE              REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT,              AND IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE              SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR              ANY OTHER APPLICABLE JURISDICTION.”   2.22        Payment in Shares               Where payment or delivery of Common Shares to Holders is required by the              Issuer to be made pursuant to the terms hereof, the Issuer shall deliver to the              Transfer Agent for delivery to and on account of the Holders, or in the case of              Global Debentures, to the applicable Depository, certificates representing the     36990-2073 30186571.16   

 

                                    - 37 -               Common Shares to which the Holders are entitled. In the case of delivery to the              Transfer Agent, the Transfer Agent shall deliver to the Holders entitled thereto,              the certificates representing such Common Shares, and any cash representing              fractional shares as provided for below.               No fractional Common Shares shall be delivered to the Transfer Agent or Holders              but, in lieu thereof, if such a fraction shall become owing, the Issuer shall pay to              the Transfer Agent on account of the Holders, at the time of delivery of Common             Shares, the cash equivalent thereof determined on the basis of the then current             market value of the fractional share.  The current market value of a fractional             share shall be determined (calculated to the nearest 1/100th of a share) by              multiplying the Closing Price of the Common Shares on the Trading Day              immediately preceding the date of delivery by such fractional share and rounding              the product to the nearest whole cent.                                     ARTICLE 3              REPURCHASE AND CANCELLATION OF DEBENTURES   3.1         Purchase of Debentures               Provided that no Event of Default has occurred and is continuing, the Issuer may              at any time, and from time to time, purchase all or any of the Debentures in the              market (which shall include purchases from or through an investment dealer or a              firm holding membership on a Recognized Stock Exchange) or by tender or by              private contract, at any price, subject to compliance with Applicable Securities              Laws. Debentures so purchased by the Issuer shall be submitted to the Trustee for              cancellation in accordance with subsection 2.17(b).  If an Event of Default, other              than an Event of Default under subsection 10.1(i) or 10.1(ii), has occurred and is              continuing, the Issuer will not have the right to purchase by private contract.  If an              Event of Default under subsection 10.1(i) or 10.1(ii) has occurred and is              continuing, the Issuer will not have the right to purchase Debentures in any             manner.              If, upon an invitation for tenders, more Debentures than the Issuer is prepared to             accept are tendered at the same lowest price, the Debentures to be purchased by             the Issuer will be selected by the Trustee on a pro rata basis, from the Debentures              tendered by each tendering Holder who tendered at such lowest price. For this              purpose the Trustee may make, and may from time to time amend, regulations             with respect to the manner in which Debentures may be so selected, and             regulations so made shall be valid and binding upon all Holders, notwithstanding             the fact that as a result thereof one or more such Debentures becomes subject to             purchase in part only. The Holder of any Debenture of which only a part is             purchased upon surrender of such Debenture for payment, shall be entitled to             receive, without expense to such Holder, a replacement Debenture for and             evidencing the same obligation as the unpurchased part so surrendered, and the             Trustee shall certify and deliver such replacement Debenture upon receipt of the             Debenture so surrendered or, with respect to a Global Debenture, the applicable      36990-2073 30186571.16   

 

                                    - 38 -               Depository shall make notations on the Global Debenture of the principal amount              thereof so purchased.   3.2         Repurchase of Debentures at Option of the Holder upon a Change of Control                (a)   If a Change of Control occurs prior to the Maturity Date, the Issuer shall                    make an offer to the Holders to repurchase for cash on the Change of                    Control Repurchase Date all or any portion of the Debentures of each such                    Holder, at the Change of Control Repurchase Price (the “Change of                    Control Repayment Offer”) (provided that in the case of a Change of                    Control caused by Fairfax or any Affiliate thereof, whether by itself or                   together with any other Person with whom Fairfax or any such Affiliate is                   acting jointly or in concert, the Issuer shall not be required to make a                   Change of Control Repayment Offer with respect to any Debentures                   beneficially held by Fairfax or any Affiliate thereof or any other such                   Person).  As promptly as practicable following the Change of Control, but                   in any event within ten (10) days after the occurrence of such Change of                   Control, the Issuer shall provide notice of the Change of Control to the                   Trustee and the Holders in the manner provided in sections 16.2 and 16.3                   (the “Change of Control Issuer Notice”). The Change of Control Issuer                    Notice shall include the form of a Change of Control Repurchase Notice                    (as defined below) to be completed by the Holder and shall state the                    Change of Control Repayment Offer and the following:                     (i)   the events causing such Change of Control;                     (ii)  the date of such Change of Control;                     (iii) the last date by which the Change of Control Repurchase Notice                          must be delivered to elect the repurchase option pursuant to this                          section 3.2;                     (iv)  the Change of Control Repurchase Date;                     (v)   the Change of Control Repurchase Price;                     (vi)  the Holder’s right to require the Issuer to purchase all or a portion                          of the Debentures held by such Holder by accepting the Change of                          Control Repayment Offer;                     (vii) the name and address of the Trustee;                     (viii) the then effective Conversion Price and Conversion Rate and any                          adjustments to the Conversion Rate resulting from such Change of                          Control and details of all such calculations;                     (ix)  the procedures that the Holder must follow to exercise conversion                          rights under Article 5 and that Debentures as to which a Change of                          Control Repurchase Notice has been given may be converted into     36990-2073 30186571.16   

 

                                    - 39 -                           Common Shares pursuant to Article 5 of this Indenture only to the                          extent that the Change of Control Repurchase Notice has been                          withdrawn in accordance with the terms of this Indenture;                     (x)   the procedures that the Holder must follow to exercise rights under                         this section 3.2;                    (xi)  the procedures that the Holder must follow to withdraw a Change                         of Control Repurchase Notice;                    (xii)  that, unless the Issuer fails to pay such Change of Control                          Repurchase Price, Debentures covered by any Change of Control                          Repurchase Notice will cease to be outstanding and interest will                          cease to accrue on and after the Change of Control Repurchase                          Date; and                     (xiii) the CUSIP number of the Debentures.               At the Issuer’s request, the Trustee shall give such Change of Control Issuer              Notice in the Issuer’s name, at the Issuer’s expense, and within the notice period              set out above; provided, that, in all cases, the text of such Change of Control              Issuer Notice shall be prepared by the Issuer. If any of the Debentures is in the              form of a Book-Entry Only Debenture, then the Issuer shall modify such notice to              the extent necessary to accord with the applicable procedures at the Book-Based              System relating to the purchase of Book-Entry Only Debentures.               (b)   A Holder may accept a Change of Control Repayment Offer by delivering                    a written notice (which may be delivered by letter, overnight courier, hand                    delivery, facsimile transmission or in any other written form and, in the                    case of Book-Entry Only Debenture, may be delivered electronically or by                    other means in accordance with the applicable Depository’s applicable                    procedures) of such acceptance (a “Change of Control Repurchase                    Notice”) to the Issuer or the Trustee at any time prior to the close of                    business on the second Business Day next preceding the Change of                    Control Repurchase Date, subject to extension to comply with Applicable                    Laws.                     (i)   The Change of Control Repurchase Notice shall state: (A) the                          certificate number (if such Debenture is held other than in global                          form) of the Debenture which the Holder will deliver to be                          purchased (or, if the Debenture is a Book-Entry Only Debenture                          form, any other items required to comply with the applicable                          procedures), (B) the portion of the principal amount of the                          Debenture which the Holder will deliver to be purchased, in                          integral multiples of $1,000, and (C) that such Debenture shall be                          purchased as of the Change of Control Repurchase Date pursuant                          to the terms and conditions specified in the Debentures and in this                          Indenture.     36990-2073 30186571.16   

 

                                     - 40 -                      (ii)  The delivery of a Debenture (if such Debenture is held other than                           in global form) for which a Change of Control Repurchase Notice                           has been timely delivered to the Trustee and not validly withdrawn                           prior to, on or after the Change of Control Repurchase Date                           (together with all necessary endorsements) at the office of the                           Trustee shall be a condition to the receipt by the Holder of the                           Change of Control Repurchase Price therefor.                     (iii) The Issuer shall only be obliged to purchase, pursuant to this                          section 3.2, a portion of a Debenture if the principal amount of                          such portion is $1,000 or an integral multiple of $1,000 (provisions                          of this Indenture that apply to the purchase of all of a Debenture                          also apply to the purchase of such portion of such Debenture).               (c)   Notwithstanding anything herein to the contrary, any Holder delivering to                    the Trustee the Change of Control Repurchase Notice contemplated by                    this section 3.2 shall have the right to withdraw such Change of Control                     Repurchase Notice in whole or in a portion thereof that is a principal                     amount of $1,000 or in an integral multiple thereof, at any time prior to the                     close of business on the third Business Day prior to the Change of Control                     Repurchase Date by delivery of a written notice of withdrawal to the                     Trustee in accordance with the procedures set out in the Change of Control                     Issuer Notice or, if not set out therein, then in accordance with section 3.3.                (d)   The Trustee shall promptly notify the Issuer of the receipt by it of any                     Change of Control Repurchase Notice or written withdrawal thereof.                (e)   Anything herein to the contrary notwithstanding, in the case of                     Book-Entry Only Debentures, any Change of Control Repurchase Notice                    may be delivered or withdrawn and such securities may be surrendered or                    delivered for purchase in accordance with the applicable procedures of the                    Book-Based System as in effect from time to time.   3.3         Effect of Change of Control Repurchase Notice               (a)   Upon receipt by the Trustee of a Change of Control Repurchase Notice                    from a Holder containing the information specified in section 3.2(b)(i), the                    Holder of the Debenture in respect of which such Change of Control                    Repurchase Notice was given shall (unless such Change of Control                    Repurchase Notice is withdrawn as specified in section 3.3(b)), thereafter                    be entitled to receive the Change of Control Repurchase Price with respect                    to such Debenture. The Change of Control Repurchase Price shall be paid                    to such Holder promptly following the later of (1) the Change of Control                    Repurchase Date and (2) the time of delivery of such Debenture to the                    Trustee by the Holder thereof in the manner required by section 3.2.                    Debentures in respect of which a Change of Control Repurchase Notice                    has been given by the Holder thereof may not be converted into Common                    Shares pursuant to Article 5 on or after the date of the delivery of such                    Change of Control Repurchase Notice unless such Change of Control       36990-2073 30186571.16    

 

                                    - 41 -                     Repurchase Notice has first been validly withdrawn in accordance with                    section 3.3(b) with respect to the Debentures to be converted.               (b)   A Change of Control Repurchase Notice may be withdrawn by means of a                    written notice (which may be delivered by mail, courier, hand delivery,                    facsimile transmission or in any other written form and, in the case of                    Book-Entry Only Debentures, may be delivered electronically or by other                    means in accordance with the applicable procedures of the Book-Based                    System) of withdrawal delivered by the Holder to the Trustee at any time                    prior to the close of business on the third Business Day immediately prior                    to the Change of Control Repurchase Date, specifying (1) the principal                    amount of the Debenture or portion thereof (which must be a principal                    amount of $1,000 or an integral multiple of $1,000 in excess thereof), with                    respect to which such notice of withdrawal is being submitted, (2) if                    Definitive Debentures have been issued, the certificate number of the                    Debentures being withdrawn in whole or in part (or if the Debentures are                    not Definitive Debentures, such written notice must comply with the                    applicable procedures of the Book-Based System) and (3) the portion of                    the principal amount of the Debentures that will remain subject to the                    Change of Control Repurchase Notice, which portion must be a principal                    amount of $1,000 or an integral multiple thereof.   3.4         Deposit of Change of Control Repurchase Price               (a)   On or before 12:00 p.m. (noon) on the Business Day prior to the                    applicable Change of Control Repurchase Date, the Issuer shall deposit                    with the Trustee an amount of money (in immediately available funds),                    sufficient to pay the aggregate Change of Control Repurchase Price of all                    the Debentures or portions thereof that are to be purchased as of such                    Change of Control Repurchase Date, together with accrued and unpaid                    interest to but excluding the Change of Control Repurchase Date on such                    Debentures or portions thereof.               (b)   If the Trustee holds, in accordance with the terms hereof, money sufficient                    to pay the Change of Control Repurchase Price and accrued interest of any                    Debenture for which a Change of Control Repurchase Notice has been                    tendered and not withdrawn in accordance with this Indenture then, on the                    Change of Control Repurchase Date, such Debenture will cease to be                    outstanding, whether or not the Debenture is delivered to the Trustee, and                    interest shall cease to accrue, and the rights of the Holder in respect of the                    Debenture shall terminate (other than the right to receive the Change of                    Control Repurchase Price and accrued and unpaid interest as aforesaid).                    The Issuer shall publicly announce the principal amount of Debentures                    repurchased on or as soon as practicable after the Change of Control                    Repurchase Date.                (c)   The Trustee will promptly return to the respective Holders thereof any                    Debentures with respect to which a Change of Control Repurchase Notice                    has been withdrawn in compliance with this Indenture.     36990-2073 30186571.16   

 

                                     - 42 -                (d)   If a Change of Control Repurchase Date falls after an Interest Record Date                     and on or before the related Interest Payment Date, then interest on the                     Debentures payable on such Change of Control Repurchase Date will                     instead be payable to the Holders in whose names the Debentures are                     registered at the close of business on such Interest Record Date.      3.5         Repayment to the Issuer                To the extent that the aggregate amount of cash deposited by the Issuer pursuant               to section 3.3 exceeds the aggregate Change of Control Repurchase Price of the               Debentures or portions thereof that the Issuer is obligated to purchase, then on the               Change of Control Repurchase Date, the Trustee shall return any such excess cash               to the Issuer.      3.6         Debentures Purchased in Part                Any Debenture that is to be purchased only in part shall be surrendered at the               office of the Trustee, and promptly after the Change of Control Repurchase Date,               the Issuer shall execute and the Trustee shall authenticate and deliver to the               Holder of such Debenture, without service charge, a new Debenture or               Debentures, of such authorized denomination or denominations as may be               requested by such Holder (which must be equal to $1,000 principal amount or any               integral thereof), in aggregate principal amount equal to, and in exchange for, the               portion of the principal amount of the Debenture so surrendered that is not               purchased.    3.7         [Intentionally Deleted]    3.8         [Intentionally Deleted]    3.9         [Intentionally Deleted]    3.10        [Intentionally Deleted]    3.11        [Intentionally Deleted]    3.12        Compliance with Applicable Securities Laws upon Purchase of Debentures                In connection with any offer to purchase Debentures under section 3.2 or section               3.7, the Issuer shall comply with all Applicable Securities Laws in connection               with such offer to purchase Debentures, all so as to permit the rights of the               Holders and obligations of the Issuer under this Article 3 to be exercised in the               time and in the manner specified therein.    3.13        Cancellation of Purchased Debentures               All Debentures purchased or repurchased in whole or in part pursuant to this              Article 3 shall be forthwith delivered to and cancelled by the Trustee and may not              be reissued or resold and no Debentures shall be issued in substitution therefor.       36990-2073 30186571.16    

 

                                    - 43 -                                    ARTICLE 4                       SUBORDINATION OF DEBENTURES   4.1         Applicability of Article               The Indebtedness, liabilities and other obligations of (a) the Issuer hereunder              (except as provided in section 13.12(d)) or under the Debentures, whether on              account of principal, interest or otherwise, but excluding the issuance of Common              Shares or other securities similar in nature thereto upon any conversion pursuant              to Article 5, and (b) the Guarantors under the Guarantees (collectively, such non-             excluded Indebtedness, liabilities and other obligations of the Issuer and the              Guarantors are referred to as the “Debenture Liabilities”), shall be subordinated              and postponed and subject in right of payment, to the extent and in the manner              hereinafter set forth in section 2.14 and the following sections of this Article 4 to              the full and final payment of all Specified Senior Indebtedness of the Issuer and              the Guarantors and each holder of any such Debenture by his acceptance thereof              agrees to and shall be bound by the provisions of this Article 4.   4.2         Order of Payment               In the event of any dissolution, winding-up, liquidation, bankruptcy, insolvency,              receivership, creditor enforcement or realization or other similar proceedings              relating to the Issuer or any Guarantor or any of their respective property (whether              voluntary or involuntary, partial or complete) or any other marshalling of the              assets and liabilities of the Issuer or any Guarantor or any sale of all or              substantially all of the assets of the Issuer or any Guarantor:               (a)   all Specified Senior Indebtedness shall first be paid in full, or provision                    made for such payment, before any payment is made on account of                    Debenture Liabilities (other than Permitted Junior Payments);                (b)   any payment or distribution of assets of the Issuer or any Guarantor,                    whether in cash, property or securities (other than Permitted Junior                    Payments), to which the holders of the Debentures or the Trustee on                    behalf of such holders would be entitled except for the provisions of this                    Article 4, shall be paid or delivered by the trustee in bankruptcy, receiver,                    assignee for the benefit of creditors, or other liquidating agent making                    such payment or distribution, directly to the holders of Specified Senior                    Indebtedness or their representative or representatives, or to the trustee or                    trustees under any indenture pursuant to which any instruments evidencing                    any of such Specified Senior Indebtedness may have been issued, to the                    extent necessary to pay all Specified Senior Indebtedness in full after                    giving effect to any concurrent payment or distribution, or provision                    therefor, to the holders of such Specified Senior Indebtedness; and                (c)   the Senior Creditors or a receiver or a receiver-manager of the Issuer or                    any Guarantor or of all or part of their respective assets or any other                    enforcement agent may sell, mortgage, or otherwise dispose of the Issuer’s                    or any Guarantor’s assets in whole or in part, free and clear of all     36990-2073 30186571.16   

 

                                    - 44 -                     Debenture Liabilities and without the approval of the Holders or the                    Trustee or any requirement to account to the Trustee or the Holders until                    after the Specified Senior Indebtedness has been paid in full.                The rights and priority of the Specified Senior Indebtedness and the subordination              pursuant hereto shall not be affected by:                      (i)   whether any Senior Security has been granted or is in effect;                      (ii)  the time, sequence or order of creating, granting, executing,                          delivering of, or registering, perfecting or failing to register or                          perfect any security notice, caveat, financing statement or other                          notice in respect of any Senior Security;                      (iii) the time or order of the attachment, perfection or crystallization of                          any security constituted by any Senior Security;                      (iv)  the taking of any collection, enforcement or realization                          proceedings pursuant to the Specified Senior Indebtedness,                          including pursuant to any Senior Security;                      (v)   the date of obtaining of any judgment or order of any bankruptcy                          court or any court administering bankruptcy, insolvency or similar                         proceedings as to the entitlement of the Senior Creditors, or any of                         them, or the Holders or any of them, to any money or property of                         the Issuer or any Guarantor;                     (vi)  the failure to exercise any power or remedy reserved to the Senior                         Creditors, including under the Senior Security, or to insist upon a                         strict compliance with any terms thereof;                     (vii)  whether any Senior Security is now perfected, hereafter ceases to                          be perfected, is avoidable by any trustee in bankruptcy or like                          official or is otherwise set aside, invalidated or lapses;                      (viii) the date of giving or failing to give notice to or making demand                          upon the Issuer or any Guarantor; or                      (ix)  any other matter whatsoever.    4.3         Subrogation to Rights of Holders of Specified Senior Indebtedness               Subject to the prior payment in full of all Specified Senior Indebtedness, the              Holders shall be subrogated to the rights of the Senior Creditors to receive              payments or distributions of assets of the Issuer or any Guarantor to the extent of              the application thereto of such payments or other assets which would have been              received by the Holders but for the provisions hereof until the principal of and              interest on the Debentures shall be paid in full, and no such payments or              distributions to the Holders of cash, property or securities (other than Permitted              Junior Payments), which otherwise would be payable or distributable to the     36990-2073 30186571.16   

 

                                     - 45 -                Senior Creditors, shall, as between the Issuer, or any Guarantor or its creditors               (other than the Senior Creditors), and the Holders, be deemed to be a payment by               the Issuer or the applicable Guarantor to the Senior Creditors or on account of the               Specified Senior Indebtedness, it being understood that the provisions of this               Article 4 are and are intended solely for the purpose of defining the relative rights               of the Holders, on the one hand, and the Senior Creditors, on the other hand.                 The Trustee, for itself and on behalf of each of the Holders, hereby waives any               and all rights to require a Senior Creditor to pursue or exhaust any rights or               remedies with respect to the Issuer or any Guarantor or any property and assets              subject to the Senior Security or in any other manner to require the marshalling of               property, assets or security in connection with the exercise by the Senior Creditors               of any rights, remedies or recourses available to them.    4.4         Obligation to Pay Not Impaired               Nothing contained in this Article 4 or elsewhere in this Indenture or in the              Debentures is intended to or shall impair, as between the Issuer or any Guarantor,              their respective creditors other than the Senior Creditors, and the Holders, the              obligation of the Issuer and the Guarantors, which is absolute and unconditional,              to pay to the Holders the principal of and interest on the Debentures, as and when              the same shall become due and payable in accordance with their terms, or affect              the relative rights of the Holders and creditors of the Issuer and the Guarantors              other than the Senior Creditors, nor shall anything herein or therein prevent the              Trustee or the Holders from exercising all remedies otherwise permitted by              applicable law upon default under this Indenture, subject to the rights, if any,              under this Article 4 of the Senior Creditors.    4.5         No Payment if Specified Senior Indebtedness in Default                Upon the default in payment when due of any principal, interest or other amount              owing with respect to Specified Senior Indebtedness (a “Payment Default”) by               lapse of time, acceleration or otherwise, then all such Specified Senior               Indebtedness shall first be paid in full, or shall first have been duly provided for,               before any payment is made on account of the Debenture Liabilities (other than               Permitted Junior Payments).                 In case of any default or event of default with respect to any Specified Senior               Indebtedness, other than a Payment Default, permitting a Senior Creditor to               demand payment or accelerate the maturity thereof (a “Non-Payment Default”)              and the Trustee receives a notice of such default (a “Payment Blockage Notice”)              from a Representative of Specified Senior Indebtedness, no payment (by purchase              of Debentures or otherwise) shall be made by the Issuer or any Guarantor with              respect to the Debenture Liabilities (other than Permitted Junior Payments) for the              period specified below (“Payment Blockage Period”) and during such Payment              Blockage Period, neither the Trustee nor the Holders shall be entitled to demand,              institute proceedings for the collection of, or receive any payment or benefit              (including without limitation by set-off, combination of accounts or otherwise in              any manner whatsoever) on account of the Debentures or any Guarantee (except       36990-2073 30186571.16    

 

                                    - 46 -               as provided in section 4.8), and during such Payment Blockage Period, such              payments shall be held in trust for the benefit of, and, if and when such Specified               Senior Indebtedness shall have become due and payable, shall be paid over to, the              Senior Creditors or to the trustee or trustees under any indenture under which any              instruments evidencing an amount of the Specified Senior Indebtedness remaining              unpaid until all such Specified Senior Indebtedness shall have been paid in full,              after giving effect to any concurrent payment or distribution to such Senior              Creditors.               The Payment Blockage Period shall commence upon the receipt of the Payment              Blockage Notice by the Trustee and the Issuer and shall end on the earliest of (i)              the 179th day after such commencement, (ii) the date on which such Non-             Payment Default (and all other Non-Payment Defaults as to which notice is given              after such Payment Blockage Period is initiated) is cured, waived or ceases to              exist or on which such Specified Senior Indebtedness is discharged or paid in full              in cash or as otherwise agreed to by the holders of Specified Senior Indebtedness,              or (iii) the date on which such Payment Blockage Period (and all Non-Payment              Defaults as to which notice is given after such Payment Blockage Period is              initiated) shall have been terminated by written notice to the Issuer and the              Trustee from the representative initiating such Payment Blockage Period, after              which, in the case of clauses (i), (ii) and (iii), the Issuer shall promptly resume              making any and all required payments in respect of the Securities, including any              missed payments.  In no event shall a Payment Blockage Period extend beyond              179 days from the date of the receipt by the Issuer and the Trustee of the notice              initiating such Payment Block Period (such 179-day period referred to as the              “Initial Period”).  Any number of notices of Non-Payment Defaults may be              given during the Initial Period; provided that during any period of 360              consecutive days only one Payment Blockage Period, during which payment of              principal of, premium, if any, or interest on, the Debentures may not be made,              may commence and the duration of such period may not exceed 179 days.  No              Non-Payment Default with respect to any Specified Senior Indebtedness that              existed or was continuing on the date of the commencement of any Payment              Blockage Period shall be, or can be, made the basis for the commencement of a              second Payment Blockage Period, whether or not within a period of 360              consecutive days, unless such default has been cured or waived for a period of not              less than 90 consecutive days (it being acknowledged that any subsequent action              or any breach of a financial covenant for a period ending after the date of              commencement of such Payment Blockage Period that, in either case, would give              rise to an event of default pursuant to any provision under which an event of              default previously existed or was continuing shall constitute a new event of              default for this purpose).  The Issuer shall deliver a notice to the Trustee promptly              after the date on which any Non-Payment Default is cured or waived or ceases to              exist or on which the Specified Senior Indebtedness related thereto is discharged              or paid in full, and the Trustee is authorized to act in reliance on such notice.      36990-2073 30186571.16   

 

                                    - 47 -   4.6         Payment on Debentures Permitted                Nothing contained in this Article 4 or elsewhere in this Indenture, or in any of the              Debentures, shall affect the obligation of the Issuer to make, or prevent the Issuer              from making, at any time except as prohibited by section 4.2 or 4.5, any payment              of principal of or interest on the Debentures. The fact that any such payment is              prohibited by section 4.2 or 4.5 shall not prevent the failure to make such payment              from being an Event of Default under subsections 10.1(i) to (v). Nothing              contained in this Article 4 shall prevent (except as prohibited by section 4.2 or              4.5) the application by the Trustee of any monies deposited with the Trustee              hereunder for the purpose, to the payment of or on account of the Debenture              Liabilities.   4.7         Confirmation of Subordination                Each holder of Debentures by his acceptance thereof authorizes and directs the              Trustee on his behalf to take such action as may be necessary or appropriate to              effect the subordination as provided in this Article 4, including the entering into              of contractual subordination agreements (“Subordination Agreements”) with              one or more Senior Creditors or a trustee or agent for it or them, and appoints the              Trustee his attorney-in-fact for any and all such purposes. Upon request of the              Issuer, and upon being furnished an Officer’s Certificate stating that one or more              named Persons are Senior Creditors and specifying the amount and nature of the             Specified Senior Indebtedness of such Senior Creditor and stating that such             Subordination Agreement provides for provisions that are, in the opinion of the             Issuer, acting reasonably, in substance not inconsistent with the provisions of this             Article 4, the Trustee shall enter into a Subordination Agreement or Subordination             Agreements with the Issuer, each applicable Guarantor and the Person or Persons             named in such Officer’s Certificate providing that such Person or Persons are             entitled to all the rights and benefits of this Article 4 as a Senior Creditor and for             such other matters, including those in addition to the provisions of this Article 4,             as the Senior Creditor may reasonably request that, in the opinion of the Issuer,             acting reasonably, are in substance not inconsistent with the provisions of this             Article 4, and including for certainty, an agreement not to amend the provisions of             this Article 4 and the definitions used herein without the consent of such Senior             Creditor. Such agreement shall be conclusive evidence that the indebtedness             specified therein is Specified Senior Indebtedness, however, nothing herein shall              impair the rights of any Senior Creditor who has not entered into such an              agreement.    4.8         Knowledge of Trustee                Notwithstanding the provisions of this Article 4 or any provision in this Indenture              or in the Debentures, the Trustee will not be charged with knowledge of any              Specified Senior Indebtedness or of any default in the payment thereof, or of the             existence of any other fact that would prohibit the making of any payment of             monies to or by the Trustee, or the taking of any other action by the Trustee,             unless and until the Trustee has received written notice thereof from the Issuer,             any Holder or any Senior Creditor.      36990-2073 30186571.16   

 

                                    - 48 -   4.9         Trustee May Hold Specified Senior Indebtedness                The Trustee is entitled to all the rights set forth in this Article 4 with respect to              any Specified Senior Indebtedness at the time held by it, to the same extent as any              other holder of Specified Senior Indebtedness, and nothing in this Indenture              deprives the Trustee of any of its rights as such holder.    4.10        Rights of Holders of Specified Senior Indebtedness Not Impaired                No right of any present or future holder of any Specified Senior Indebtedness to              enforce the subordination herein will at any time or in any way be prejudiced or              impaired by any act or failure to act on the part of the Issuer or any Guarantor or              by any non-compliance by the Issuer or any Guarantor with the terms, provisions              and covenants of this Indenture or any other Indenture Documents, regardless of              any knowledge thereof which any such holder may have or be otherwise charged              with.    4.11        Altering the Specified Senior Indebtedness                The holders of the Specified Senior Indebtedness have the right to extend, renew,              modify or amend the terms of the Specified Senior Indebtedness or any security              therefor and to release, sell or exchange such security and otherwise to deal freely              with the Issuer and the Guarantors, all without notice to or consent of the Holders              or the Trustee and without affecting the liabilities and obligations of the parties to              this Indenture or the Holders or the Trustee.    4.12        Right of Holder to Receive Common Shares Not Impaired                The subordination of the Debentures to the Specified Senior Indebtedness and the              provisions of this Article 4 do not impair in any way the right of a Holder to              convert its Debentures pursuant to Article 5, or to receive Common Shares or              other securities similar in nature thereto upon any conversion pursuant to Article 5              or at maturity pursuant to Article 6.    4.13        Contesting Security                The Trustee, for itself and on behalf of the Holders, agrees that it shall not contest              or bring into question the validity, perfection or enforceability of any of the              Senior Security, or the relative priority of the Senior Security.                                     ARTICLE 5                                  CONVERSION   5.1         Conversion Right               (a)   Except as set forth in section 3.3(a), each Holder shall have the right at                    any time during the Permitted Conversion Period at its option to convert                    each $1,000 principal amount of its Debentures into Common Shares at                    the Conversion Rate in effect at such time, all on the terms and subject to                    the conditions provided in this Article 5.     36990-2073 30186571.16   

 

                                    - 49 -               (b)   [Intentionally deleted.]                (c)   [Intentionally deleted.]                (d)   In order to exercise its option to convert provided pursuant to subsection                    (a), a Holder will, subject to the proviso herein, be required to deliver to                    the Trustee at the Corporate Trust Office a conversion notice in the form                    set forth in Schedule 5.1(d) (the “Conversion Notice”) (with a copy to the                    Issuer), duly completed and executed by the Holder or its executors,                    administrators or other legal representatives or its or their attorney duly                    appointed by instrument in form and execution satisfactory to the Trustee,                    together with the related Debentures. The Conversion Notice shall specify                    the date of conversion (the “Conversion Date”) of the Debentures, which                    Conversion Date shall not be earlier than the second Business Day                    following the date of receipt by the Trustee and the Issuer of the                    Conversion Notice and shall be a date that falls within the Permitted                    Conversion Period.               (e)   Upon receipt of a Conversion Notice from the Holder, the Issuer shall                    ensure that the following conditions are met:                     (i)   unless, pursuant to the terms of this Indenture, Common Shares are                          no longer issuable upon conversion, the Common Shares to be                          issued on conversion shall be issued from treasury of the Issuer,                          shall be fully paid and non-assessable Common Shares, and shall                          be free of any Lien or adverse claim;                      (ii)  unless a Change of Control has occurred, the Common Shares to                          be issued shall be listed for trading on a Recognized Stock                          Exchange;                     (iii) unless a Change of Control has occurred, the Issuer shall be a                          reporting issuer or equivalent in good standing or equivalent under                          Applicable Securities Laws in the Provinces of Canada in which                          the Issuer is then a reporting issuer;                     (iv)  no Default or Event of Default shall have occurred and be                          continuing; and                      (v)   the receipt by the Trustee of an Officer’s Certificate stating that                          conditions (i), (ii), (iii) and (iv) above have been satisfied and                          setting forth the number of Common Shares to be delivered for                          each $1,000 principal amount of Debentures, plus the accrued and                          unpaid interest thereon, and the calculation of the Conversion Rate.               If the foregoing conditions are not satisfied prior to the close of business on the              Business Day preceding the Conversion Date, the Issuer shall in lieu of delivery              of the Common Shares that would otherwise be issuable pursuant to the              Conversion Notice pay in cash the product of the Current Market Price of the     36990-2073 30186571.16   

 

                                    - 50 -               Common Shares on the date on which the Conversion Notice is given by the              Holder to the Issuer multiplied by the number of Common Shares into which the              principal amount of the Debentures would then be convertible unless such Holder              waives the conditions which are not satisfied or extends the time by which the              Issuer is to satisfy such conditions.   5.2         Completion of Conversion               (a)   Subject to section 5.1, as promptly as practicable but no later than the                    Conversion Date, the Issuer shall make a Common Share Payment                    together with a certified cheque, bank draft or wire transfer of electronic                    funds in the amount of the accrued and unpaid interest thereon, and if the                    Holder has elected to convert a principal amount of Debentures, (the                    “exercised amount”), which is less than the principal amount of all                    Debentures of which such Person is the Holder immediately prior to such                    exercise (the “registered amount”), Debenture(s) registered in the name                    of such Holder in an aggregate principal amount equal to the amount by                    which the registered amount exceeds the exercised amount.               (b)   All Debentures converted in whole or in part pursuant to this Article 5                    shall be forthwith delivered to and cancelled by the Trustee and the                    Trustee shall amend the register maintained by it accordingly.               (c)   Except as provided herein, Debentures which have been converted may                    not be reissued or resold.   5.3         Relating to the Issue of Common Shares               (a)   A Holder shall be treated as the shareholder of record of the Common                    Shares issued on due conversion of his Debentures and the issuance of                    Common Shares shall be deemed to have occurred, for all purposes,                    effective immediately after the close of business on the Conversion Date;                    such Holder shall be entitled to all substitutions therefor, all income                    earned thereon or accretions thereto and all dividends or distributions                    (including stock dividends and dividends or distributions in kind) thereon                    and arising thereafter, and in the event that the Trustee receives the same,                    it shall hold the same under gratuitous deposit for the benefit of such                    Holder.                (b)   The Issuer shall at all times reserve and keep available out of its                    authorized Common Shares (if the number thereof is or becomes limited)                    solely for the purpose of issue and delivery upon the conversion of                    Debentures, and shall issue to Holders who may exercise their conversion                    rights hereunder such number of Common Shares as shall be issuable in                    such events.                (c)   The Issuer shall comply with all Applicable Securities Laws regulating the                    issue and delivery of Common Shares upon conversion of Debentures,                    shall use commercially reasonable efforts to obtain any regulatory     36990-2073 30186571.16   

 

                                    - 51 -                     approval (excluding, for the avoidance of doubt, the filing of any                    prospectus or similar document in any jurisdiction) in respect thereof as                    may be required pursuant to Applicable Securities Laws and shall use                    commercially reasonable efforts to cause to be listed and posted for                    trading such Common Shares on each Recognized Stock Exchange prior                    to the issuance thereof.                 (d)   Notwithstanding Section 2.15, all or a portion of a Global Debenture may                    be transferred by the Depository to a Beneficial Holder that is a non-                   resident of Canada as a fully registered Debenture if required by                    applicable law or the policies of such Depository in connection with a                    conversion of such portion into Common Shares pursuant to the provisions                    hereof.   5.4         U.S. Legend on Common Shares               Each certificate representing the Common Shares issued upon conversion of a              Debenture bearing the U.S. Legend (and all Common Shares issued in exchange              therefor or substitution thereof) shall bear a legend in substantially the following              form:               “THE COMMON SHARES HAVE NOT BEEN REGISTERED UNDER              THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE              “U.S. SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES              LAWS.  NEITHER THIS SECURITY NOR ANY INTEREST OR              PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED,              TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE              DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR              UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT              TO, SUCH REGISTRATION.  THE HOLDER OF THIS SECURITY BY              ITS ACCEPTANCE HEREOF AGREES THAT THIS SECURITY AND              ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED,              SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE ISSUER              OR A SUBSIDIARY OF THE ISSUER, (B) IN A TRANSACTION              MEETING THE REQUIREMENTS OF ANY APPLICABLE EXEMPTION              FROM THE REGISTRATION REQUIREMENTS OF THE U.S.              SECURITIES ACT OR (C) PURSUANT TO AN EFFECTIVE              REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT,              AND IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE              SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR              ANY OTHER APPLICABLE JURISDICTION.”               Any such Common Shares as to which such restrictions on transfer shall have              expired in accordance with their terms may, upon surrender of the certificates              representing such Common Shares for exchange in accordance with the              procedures of the Transfer Agent, be exchanged for a new certificate or              certificates for a like aggregate number of Common Shares, which shall not bear              the foregoing restrictive legend.     36990-2073 30186571.16   

 

                                    - 52 -   5.5         No Remuneration for Soliciting Conversions               The Issuer agrees that no commission or other remuneration will be paid or given,              directly or indirectly, to any Person in connection with the solicitation of any              conversion or exchange of the Debentures into or for the Common Shares.   5.6         Limitations on Conversions               (a)   Beneficial Ownership. No Holder shall have the right to convert any                    portion of a Debenture or otherwise receive Common Shares hereunder to                    the extent that after giving effect to such conversion or receipt of Common                    Shares, such Holder, together with any Person acting jointly or in concert                    with it including for greater certainty any of its affiliates, would                    beneficially own, or exercise control or direction over more than 19.99%                    of the number of Common Shares outstanding immediately after giving                    effect to such conversion or receipt of Common Shares (with such                    percentage beneficial ownership, control or direction being calculated in                    accordance with the applicable provisions of Applicable Securities Law,                    including National Instrument 62-103 of the Canadian Securities                   Administrators and NI 62-104).                     Upon the request of the Issuer, the Holder shall report its holdings of                   Common Shares, calculated as set forth above, to the Issuer as a condition                    to the issuance and delivery of any Common Shares hereunder. If upon                    conversion or repurchase of Debentures hereunder a Holder would                    beneficially own, or exercise control or direction over a percentage of                    Common Shares in excess of the foregoing limit, the Issuer shall notify the                   Holder of this fact and shall give effect to the conversion or repurchase for                   the maximum principal amount permitted and any principal amount                   tendered for conversion or repurchase in excess of the permitted amount                   shall remain outstanding.              (b)   Principal Market Regulation. The Issuer shall not be obligated to issue any                    Common Shares upon the conversion or repurchase of a Debenture, and a                    Holder shall not have the right to receive upon the conversion or                    repurchase of such Debenture any Common Shares, to the extent that the                   issuance of such Common Shares would exceed the aggregate number of                   Common Shares which the Issuer may issue upon the conversion or                    repurchase, as applicable, of the Debentures without breaching the Issuer’s                    obligations under the rules or regulations of the Toronto Stock Exchange                    and the New York Stock Exchange (the “Exchange Cap”), except that                    such limitation shall not apply in the event that the Issuer (A) obtains the                    approval of its shareholders as required by the applicable rules of the                    Toronto Stock Exchange and the New York Stock Exchange for issuances                    of Common Shares in excess of such amount or (B) obtains a written                    opinion from outside counsel to the Issuer that such approval is not                    required, which opinion shall be reasonably satisfactory to the Holder.                    36990-2073 30186571.16   

 

                                    - 53 -                                    ARTICLE 6                                   MATURITY   6.1         Payment of Principal and Interest at Maturity              On the Maturity Date, the Issuer shall pay to the Holders all of the principal             thereon and all accrued and unpaid interest thereto, up to but excluding the             Maturity Date.  Payment of principal and accrued and unpaid interest shall be              made to the Holders in the manner contemplated by section 2.10 or 2.13, as the              case may be.                                    ARTICLE 7                                 ADJUSTMENTS   7.1         Adjustment of Conversion Rate               The Conversion Rate shall be adjusted from time to time by the Issuer as set out              in this Article 7.  If any calculation is based on the Current Market Price or              Closing Price, and any other amount or the price of a security used in the              calculation is in a currency different than the currency of the Current Market Price              or Closing Price being used in that calculation (the “Trading Currency”), that             amount will be first converted to the Trading Currency on the basis of the             appropriate Exchange Rate.  The Conversion Rate shall be adjusted from time to             time by the Issuer as set out as follows:              (a)   If the Issuer pays a dividend or makes a distribution on all or substantially                   all of its outstanding Common Shares in Common Shares, the Conversion                   Rate in effect immediately prior to the record date for the determination of                   shareholders entitled to receive such dividend or other distribution shall be                   increased so that the same shall equal the rate determined by the Issuer by                   multiplying the Conversion Rate in effect immediately prior to such record                   date by a fraction of which the numerator shall be the sum of the number                   of Common Shares outstanding at the close of business on such record                   date plus the total number of Common Shares constituting such dividend                   or other distribution and of which the denominator shall be the number of                   Common Shares outstanding at the close of business on such record date.                   Such adjustment shall be made successively whenever any such dividend                   or distribution is made and shall become effective immediately after such                   record date. For the purpose of this subsection 7.1(a), the number of                   Common Shares at any time outstanding shall not include shares held in                   the treasury of the Issuer. The Issuer will not pay any dividend or make                   any distribution on Common Shares held in the treasury of the Issuer. If                   any dividend or distribution of the type described in this clause is declared                   but not so paid or made, the Conversion Rate shall again be adjusted to the                   Conversion Rate that would then be in effect if such dividend or                   distribution had not been declared.              (b)   If the Issuer subdivides its outstanding Common Shares into a greater                   number of shares, or combines its outstanding Common Shares into a     36990-2073 30186571.16   

 

                                    - 54 -                     smaller number of shares, the Conversion Rate in effect immediately prior                    to the day upon which such subdivision or combination becomes effective                    shall be, in the case of a subdivision of Common Shares, proportionately                    increased and, in the case of a combination of Common Shares,                    proportionately reduced. Such adjustment shall be made successively                    whenever any such subdivision or combination of the Common Shares                    occurs and shall become effective immediately after the date upon which                    such subdivision or combination becomes effective.               (c)   If the Issuer fixes a record date for the issue of rights, options or warrants                    to all or substantially all holders of its outstanding Common Shares                    entitling them (for a period expiring within forty-five (45) days after the                    record date for such issuance) to subscribe for or purchase Common                    Shares (or Convertible Securities) (as defined below) at a price per share                    (or, as the case may be, having a conversion price, exchange price or                    exercise price per share) less than 95% of the Current Market Price per                    Common Share on the record date for the determination of shareholders                    entitled to receive such rights, options or warrants, the Conversion Rate in                    effect immediately prior thereto shall be adjusted so that the same shall                    equal the rate determined by multiplying the Conversion Rate in effect                    immediately prior to such record date by a fraction of which the numerator                    shall be the number of Common Shares outstanding at the close of                    business on such record date plus the number of additional Common                    Shares that such rights, options or warrants entitle holders thereof to                    subscribe for or purchase (or into which such Convertible Securities are                    convertible, exercisable or exchangeable) and of which the denominator                    shall be the number of Common Shares outstanding at the close of                    business on such record date plus the number of shares which the                    aggregate offering price of the total number of Common Shares so offered                    for subscription or purchase (or the aggregate conversion price of the                    Convertible Securities so offered for subscription or purchase, which shall                    be determined by multiplying the number of Common Shares issuable                    upon conversion of such Convertible Securities by the conversion price                    per Common Share pursuant to the terms of such Convertible Securities)                    would purchase at the Current Market Price per Common Share on such                    record date. Such adjustment shall be made successively whenever any                    such rights, options or warrants (or Convertible Securities) are issued, and                    shall become effective immediately after such record date.                     To the extent that Common Shares (or Convertible Securities) are not                    delivered after the expiration of such rights, options or warrants, the                    Conversion Rate shall be readjusted to the Conversion Rate that would                    then be in effect had the adjustments made upon the issuance of such                    rights, options or warrants been made on the basis of delivery of only the                    number of Common Shares (or Convertible Securities) actually delivered.                   If such rights, options or warrants are not so issued, the Conversion Rate                   shall again be adjusted to be the Conversion Rate that would then be in      36990-2073 30186571.16   

 

                                    - 55 -                     effect if the record date for the determination of shareholders entitled to                    receive such rights, options or warrants had not been fixed.                     In determining whether any rights, options or warrants entitle the                    shareholders to subscribe for or purchase Common Shares at a price less                    than 95% of the Current Market Price per Common Share and in                    determining the aggregate offering price of the total number of Common                    Shares so offered, there shall be taken into account any consideration                    received by the Issuer for such rights, options or warrants and any amount                   payable on exercise or conversion thereof, the value of such consideration,                    if other than cash, to be determined by the Board of Directors.               (d)   If the Issuer pays a dividend or other distribution to all or substantially all                    holders of its Common Shares consisting of evidences of indebtedness or                    other assets of the Issuer, including securities (excluding (i) any issuance                    of rights, options or warrants for which an adjustment was made pursuant                    to subsection 7.1(c), (ii) dividends or distributions in connection with a                    reclassification, consolidation, merger, combination, sale or conveyance                    resulting in a change in the conversion consideration pursuant to                    subsection 7.5, or pursuant to any Rights Plan, (iii) any dividend or                    distribution paid exclusively in cash for which an adjustment was made                    pursuant to subsection 7.1(f) or (iv) any dividend or distribution paid in                    Common Shares for which an adjustment was made pursuant to subsection                    7.1(a)) (the “Distributed Property”), then in each such case (unless the                    Issuer distributes such Distributed Property for distribution to the Holders                    of Debentures on such dividend or distribution date as if each Holder had                    converted such Debenture into Common Shares immediately prior to the                    record date with respect to such distribution) the Conversion Rate shall be                    adjusted so that the same shall equal the rate determined by multiplying                    (X) the Conversion Rate in effect immediately prior to the record date                    fixed for the determination of shareholders entitled to receive such                    dividend or distribution by (Y) a fraction of which the numerator shall be                    the Current Market Price per Common Share on such record date and of                    which the denominator shall be Current Market Price per Common Share                    on such record date less the fair market value (as determined in good faith                    by the Board of Directors, whose determination shall be conclusive                    evidence of such fair market value and which shall be evidenced by an                    Officer’s Certificate delivered to the Trustee) on such record date of the                    portion of the Distributed Property so distributed applicable to one                    Common Share (determined on the basis of the number of Common                    Shares outstanding at the close of business on such record date). Such                    adjustment shall be made successively whenever any such distribution is                    made and shall become effective immediately after the record date for the                    determination of shareholders entitled to receive such distribution. In the                    event that such dividend or distribution is not so paid or made, the                    Conversion Rate shall again be adjusted to be the Conversion Rate that                    would then be in effect if such dividend or distribution had not been                    declared.     36990-2073 30186571.16   

 

                                    - 56 -                     If the then fair market value (as so determined) of the portion of the                    Distributed Property so distributed applicable to one Common Share is                    equal to or greater than the Current Market Price per Common Share on                    such record date, then in lieu of the foregoing adjustment, adequate                    provision shall be made so that each holder of a Debenture shall have the                    right to receive upon conversion the amount of Distributed Property so                    distributed that such Holder would have received had such Holder                    converted each Debenture on such record date. If the Board of Directors                    determines the fair market value of any distribution for purposes of this                    subsection 7.1(d) by reference to the actual or when issued trading market                    for any securities, it must in doing so consider the prices in such market                    over the same period used in computing the Current Market Price of the                    Common Shares.                     Notwithstanding the foregoing, if the securities distributed by the Issuer to                    all holders of its Common Shares consist of common shares of, or similar                    equity interests in, a Subsidiary or other business unit of the Issuer (the                    “Spinoff Securities”), the Conversion Rate shall be adjusted, unless the                   Issuer makes an equivalent distribution to the Holders of the Debentures,                    so that the same shall be equal to the rate determined by multiplying the                    Conversion Rate in effect on the record date fixed for the determination of                    shareholders entitled to receive such distribution by a fraction, the                    numerator of which shall be the sum of (A) the average Closing Price of                    one Common Share over the ten consecutive Trading Day period (the                    “Spinoff Valuation Period”) commencing on and including the fifth                    Trading Day after the date on which ex-dividend trading commences for                    such distribution on the TSX or such other Recognized Stock Exchange on                    which the Common Shares are then listed or quoted and (B) the average of                    the Closing Prices over the Spinoff Valuation Period of the Spinoff                    Securities multiplied by the number of Spinoff Securities distributed in                    respect of one Common Share and the denominator of which shall be the                    average Closing Price of one Common Share over the Spinoff Valuation                    Period, such adjustment to become effective immediately prior to the                    opening of business on the fifteenth Trading Day after the date on which                    ex-dividend trading commences; provided, however, that the Issuer may in                    lieu of the foregoing adjustment elect to make adequate provision so that                    each Holder of Debentures shall have the right to receive upon conversion                    thereof the amount of such Spinoff Securities that such Holder would have                    received if such Debentures had been converted on the record date with                    respect to such distribution.               (e)   With respect to any rights or warrants (the “Rights”) that may be issued                    or distributed pursuant to any shareholder rights plan that the Issuer                    implements after the date of this Indenture (a “Rights Plan”), to the                    extent that such Rights Plan is in effect upon a conversion of Debentures,                    the Holders of Debentures will receive as a result of becoming a holder of                    Common Shares and not as additional consideration for the conversion of                    the Debentures, with respect to the Common Shares issued upon     36990-2073 30186571.16   

 

                                    - 57 -                     conversion, the Rights described therein (whether or not the Rights have                    separated from the Common Shares at the time of conversion), subject to                    the limitations set forth in and in accordance with any such Rights Plan;                    provided that, if, at the time of conversion, however, the Rights have                    separated from the Common Shares in accordance with the provisions of                    the Rights Plan so that Holders would not be entitled to receive any Rights                    in respect of the Common Shares issuable upon conversion of the                    Debentures as a result of the timing of the Conversion Date, the                    Conversion Rate will be adjusted as if the Issuer distributed to all holders                    of Common Shares Distributed Property constituting such Rights, as                    provided in the first paragraph of subsection 7.1(d), subject to appropriate                    readjustment in the event of the expiration, termination, repurchase or                    redemption of the Rights. Any distribution of rights or warrants pursuant                    to a Rights Plan complying with the requirements set forth in the                    immediately preceding sentence of this paragraph shall not otherwise                    constitute a distribution of rights or warrants pursuant to this Article 7.                    Other than as specified in this subsection 7.1(e),  there will not be any                    adjustment to the Conversion Rate as the result of the issuance of any                    Rights, the distribution of separate certificates representing such Rights,                    the exercise or redemption of such Rights in accordance with any Rights                    Plan or the termination or invalidation of any Rights.               (f)   If the Issuer, by dividend or otherwise, at any time distributes (a                    “Triggering Distribution”) to all holders of its Common Shares a                    payment consisting exclusively of cash (excluding (i) any Distributions                    Paid in the Ordinary Course, and (ii) any dividend or distribution in                    connection with the liquidation, dissolution or winding-up of the Issuer,                    whether voluntary or involuntary), the Conversion Rate shall be increased                    so that the same shall equal the rate determined by multiplying such                    Conversion Rate in effect immediately prior to the close of business on the                    record date for such Triggering Distribution (a “Determination Date”) by                    a fraction of which the numerator shall be such Current Market Price per                    Common Share on the Determination Date and the denominator of which                    shall be the Current Market Price per Common Share on the                    Determination Date less the amount of such cash dividend or distribution                    applicable to one Common Share (determined on the basis of the number                    of Common Shares outstanding at the close of business on the                    Determination Date), such increase to become effective immediately prior                    to the opening of business on the day following the date on which the                    Triggering Distribution is paid. If the amount of the cash dividend or                    distribution applicable to one Common Share is equal to or greater than                    the Current Market Price per Common Share on the Determination Date,                    then in lieu of the foregoing adjustment, adequate provision shall be made                    so that each Holder of a Debenture shall have the right to receive upon                    conversion the amount of cash so distributed that such Holder would have                    received had such Holder converted each Debenture on such                    Determination Date. In the event that such dividend or distribution is not                    so paid or made, the Conversion Rate shall again be adjusted to be the     36990-2073 30186571.16   

 

                                    - 58 -                     Conversion Rate that would then be in effect if such dividend or                    distribution had not been declared.               (g)   If any issuer bid made by the Issuer or any of its Subsidiaries for all or any                    portion of Common Shares expires, then, if the issuer bid shall require the                    payment to shareholders of consideration per Common Share having a fair                    market value (determined as provided below) that exceeds the Closing                    Price per Common Share on the Trading Day next succeeding the last date                    (the “Expiration Date”) deposits could have been made pursuant to such                    issuer bid (as it may be amended) (the last time at which such tenders                    could have been made on the Expiration Date is hereinafter sometimes                    called the “Expiration Time”), the Conversion Rate shall be increased so                    that the same shall equal the rate determined by multiplying the                    Conversion Rate in effect immediately prior to the close of business on the                    Expiration Date by a fraction of which the numerator shall be the sum of                    (A) the fair market value of the aggregate consideration (the fair market                    value as determined in good faith by the Board of Directors, whose                    determination shall be conclusive evidence of such fair market value and                    which shall be evidenced by an Officer’s Certificate delivered to the                    Trustee) payable to shareholders based on the acceptance (up to any                    maximum specified in the terms of the issuer bid) of all Common Shares                    validly tendered and not withdrawn as of the Expiration Time (the shares                    deemed so accepted, up to any such maximum, being referred to as the                    “Purchased Shares”) and (B) the product of the number of Common                    Shares outstanding (less any Purchased Shares and excluding any shares                    held in the treasury of the Issuer) at the Expiration Time and the Closing                    Price per Common Share on the Trading Day next succeeding the                    Expiration Date and the denominator of which shall be the product of the                    number of Common Shares outstanding (including Purchased Shares but                    excluding any shares held in the treasury of the Issuer) at the Expiration                    Time multiplied by the Closing Price per Common Shares on the Trading                    Day next succeeding the Expiration Date, such increase to become                    effective immediately prior to the opening of business on the day                    following the Expiration Date. In the event that the Issuer is obligated to                    purchase shares pursuant to any such issuer bid, but the Issuer is                    permanently prevented by Applicable Law from effecting any or all such                    purchases or any or all such purchases are rescinded, the Conversion Rate                    shall again be adjusted to be the Conversion Rate which would have been                    in effect based upon the number of shares actually purchased, if any. If the                    application of this subsection 7.1(g) to any issuer bid would result in a                    decrease in the Conversion Rate, no adjustment shall be made for such                    issuer bid under this subsection 7.1(g).               (h)   If the Issuer shall issue Common Shares (or rights or warrants or other                    securities exercisable or convertible into or exchangeable for Common                    Shares (collectively, “Convertible Securities”)) pursuant to a non-public                    offering (other than in Permitted Transactions (as defined below) or a                    transaction to which section 7.1(a), 7.1(c) or 7.1(d) is applicable) without     36990-2073 30186571.16   

 

                                    - 59 -                     consideration or at a consideration per Common Share (or having a                    conversion price, exercise price or exchange price per Common Share)                   that is less than 95% of the Current Market Price on the last Trading Day                   preceding the date of the agreement on pricing such Common Shares (or                   such Convertible Securities) (such date of the agreement on pricing, the                   “Pricing Date”) (any such events being a “Non-Public Offering”) then,                   in such event and subject to the approval of the TSX, the Conversion Rate                   in effect immediately prior to the Pricing Date shall be increased so that                   the same shall equal the rate determined by multiplying such Conversion                   Rate by a fraction of which the numerator shall be the sum of (A) the                   number of Common Shares outstanding immediately prior to the Pricing                   Date and (B) the number of additional Common Shares issued (or into                   which Convertible Securities may be exercised or converted) and of which                   the denominator shall be the sum of (A) the number of Common Shares                   outstanding immediately prior to the Pricing Date and (B) the number of                   Common Shares which the aggregate consideration receivable by the                   Issuer for the total number of Common Shares so issued (or into which                   Convertible Securities may be exercised or converted) would purchase at                   the Current Market Price on the last Trading Day preceding the Pricing                   Date, such increase to become effective immediately prior to the opening                   of business on the seventh Trading Day following the closing of the Non-                  Public Offering.                     For purposes of the foregoing, the aggregate consideration receivable by                   the Issuer in connection with the issuance of such Common Shares or                   Convertible Securities shall be deemed to be equal to the sum of the net                   offering price (including the fair market value (as determined in good faith                   by the Board of Directors, whose determination shall be conclusive                   evidence of such fair market value and which shall be evidenced by an                   Officer’s Certificate delivered to the Trustee) of any non-cash                   consideration and after deduction of any related expenses payable to third                   parties) of all such securities plus the minimum aggregate amount, if any,                    payable upon exercise or conversion of any such Convertible Securities                    into Common Shares; and “Permitted Transactions” shall mean                    issuances (i) in a merger, amalgamation, arrangement or consolidation                    transaction, (ii) in connection with employee benefit plans and                    compensation related arrangements in the ordinary course and approved                   by the Board of Directors, or (iii) in connection with a public or broadly                   marketed offering and sale of Common Shares or Convertible Securities                   for cash, conducted on a basis consistent with offerings by public                   companies of similar size in their own capital raising transactions.  Such                    adjustments shall be made successively whenever any Common Shares or                    Convertible Securities are issued.               (i)   In case the Issuer takes any action affecting the Common Shares other                    than action described in this section 7.1, which in the opinion of the Board                    of Directors would materially affect the conversion rights of Holders, the                    Conversion Price and the Common Shares issuable upon conversion of the     36990-2073 30186571.16   

 

                                    - 60 -                     Debentures must be adjusted in such manner and at such time, by action of                    the Board of Directors, subject to the prior written consent of the TSX and                    any other Recognized Stock Exchange on which the Debentures or the                    Common Shares are then listed, as the Board of Directors in its sole                    discretion may determine to be equitable in the circumstances. Failure of                    the Board of Directors to make such an adjustment will be conclusive                    evidence that they have determined that it is equitable to make no                    adjustment in the circumstances.               (j)   For purposes of this section, the term “issuer bid” shall mean and include                    both issuer bids and exchange offers, all references to “purchases” of                    shares in issuer bids (and all similar references) shall mean and include                    both the purchase of shares in issuer bids and the acquisition of shares                    pursuant to exchange offers, and all references to “tendered shares” (and                    all similar references) shall mean and include shares tendered in both                    issuer bids and exchange offers.               (k)   For purposes of any computation under subsection 7.1(g), if the “ex” date                    for any event (other than the issuer bid that is the subject of the adjustment                    pursuant to subsection 7.1(g)) that requires an adjustment to the                    Conversion Rate pursuant to subsection 7.1(a), (b), (c), (d), (e) or (f)                    occurs on the date of the Expiration Time for the tender or exchange offer                    requiring such computation or on the Trading Day next following the                    Expiration Time, the Closing Price for each Trading Day on and after the                    “ex” date for such other event shall be adjusted by dividing such Closing                    Price by the reciprocal of the fraction by which the Conversion Rate is so                    required to be adjusted as a result of such other event. For purposes of this                    subsection (k) the term “ex” date, when used:                           (1)   with respect to any issuance or distribution, means the first                                date on which the Common Shares trade “regular way” on                                the relevant exchange or in the relevant market from which                                the Closing Price was obtained without the right to receive                                such issuance or distribution;                           (2)   with respect to any subdivision or combination of Common                                Shares, means the first date on which the Common Shares                                trade “regular way” on such exchange or in such market                                after the time at which such subdivision or combination                                becomes effective, and                           (3)   with respect to any tender or exchange offer, means the                                first date on which the Common Shares trade regularly on                                such exchange or in such market after the Expiration Time                                of such offer.                     Notwithstanding the foregoing, whenever successive adjustments to the                    Conversion Rate are called for pursuant to this section 7.1, such                    adjustments shall be made to the Current Market Price as may be     36990-2073 30186571.16   

 

                                    - 61 -                     necessary or appropriate to effectuate the intent of this section 7.1 and to                    avoid unjust or inequitable results as determined in good faith by the                    Board of Directors and evidenced by an Officer’s Certificate delivered to                    the Trustee.                     In any case in which this section 7.1 shall require that an adjustment be                    made following a record date, a Determination Date or Expiration Date, as                    the case may be, established for the purposes specified in this section 7.1,                    the Issuer may elect to defer (but only until five (5) Business Days                    following the filing by the Issuer with the Trustee of the certificate                    described in section 7.3) issuing to the Holder of any Debenture converted                    after such record date, Determination Date or Expiration Date the                    Common Shares of the Issuer issuable upon such conversion over and                    above the Common Shares (or other cash, property or securities, as                    applicable) issuable upon such conversion only on the basis of the                    Conversion Rate prior to adjustment; and, in lieu of any cash, property or                    securities the issuance of which is so deferred, the Issuer shall issue or                    cause its transfer agents to issue due bills or other appropriate evidence                    prepared by the Issuer of the right to receive such cash, property or                    securities. If any distribution in respect of which an adjustment to the                    Conversion Rate is required to be made as of the record date,                    Determination Date or Expiration Date therefor is not thereafter made or                    paid by the Issuer for any reason, the Conversion Rate shall be readjusted                    to the Conversion Rate which would then be in effect if such record date                    had not been fixed or such record date, Determination Date or Expiration                    Date had not occurred.                     For purposes of this section 7.1, “record date” shall mean, with respect to                    any dividend, distribution or other transaction or event in which the                    holders of Common Shares have the right to receive any cash, securities or                    other property or in which the Common Shares (or other applicable                    security) are exchanged or converted into any combination of cash,                    securities or other property, the date fixed for determination of                    shareholders entitled to receive such cash, securities or other property                    (whether or not such date is fixed by the Board of Directors or by statute,                    contract or otherwise).                     If one or more event occurs requiring an adjustment be made to the                    Conversion Rate for a particular period, adjustments to the Conversion                    Rate shall be determined by the Issuer’s Board of Directors to reflect the                    combined impact of such Conversion Rate adjustment events, as set out in                    this section 6.1, during such period.   7.2         No Adjustment               (a)   Subject to approval of the TSX, no adjustment in the Conversion Rate                    shall be required if Holders may participate in the transactions set forth in                    section 7.1 above (to the same extent as if the Debentures had been                    converted into Common Shares immediately prior to such transactions)     36990-2073 30186571.16   

 

                                     - 62 -                      without converting the Debentures held by such Holders. Any such                     participation in a transaction will be subject to the prior approval of the                     TSX.                (b)   No adjustment in the Conversion Rate shall be required unless such                     adjustment would require an increase or decrease of at least 1% in the                     Conversion Rate as last adjusted; provided, however, that any adjustments                     which would be required to be made but for this section 7.2(b) shall be                     carried forward and taken into account in any subsequent adjustment. The                     Issuer shall adjust for any carry forward amount upon conversion                     regardless of the 1% threshold. All calculations under this Article 7 shall                     be made to the nearest cent or to the nearest one-ten thousandth of a share,                     as the case may be, with one half cent and 0.00005 of a share,                     respectively, being rounded upward.                (c)   No adjustment in the Conversion Rate shall be required for issuances of                     Common Shares pursuant to an Issuer plan for reinvestment of dividends                     or interest. Except as expressly provided in section 7.1, no adjustment in                     the Conversion Rate shall be required for issuances of Common Shares or                     any Convertible Securities, including the issuance of Common Shares or                     options to purchase Common Shares pursuant to any present or future                     employee, director or consultant benefit plan or program of or assumed by                     the Issuer, upon the issuance of Common Shares pursuant to any option,                     warrant or right, or exercise of any exchangeable or convertible security                     outstanding as of the Issue Date, and repurchases by the Issuer of                     Common Shares not expressly discussed in this Article 7.               (d)   To the extent that the Debentures become convertible into the right to                    receive cash, no adjustment need be made thereafter as to the cash.   7.3         Notice of Adjustment               Whenever the Conversion Rate or conversion privilege is required to be adjusted               pursuant to this Indenture, the Issuer shall promptly mail to Holders a notice of               the adjustment and file with the Trustee an Officer’s Certificate briefly stating the               facts requiring the adjustment and the manner of computing it. Failure to mail               such notice or any defect therein shall not affect the validity of any such              adjustment. Unless and until the Trustee shall receive an Officer’s Certificate              setting forth an adjustment of the Conversion Rate, the Trustee may assume              without inquiry that the Conversion Rate has not been adjusted and that the last              Conversion Rate of which it has knowledge remains in effect.   7.4         Notice of Certain Transactions               In the event that there is a dissolution or liquidation of the Issuer, the Issuer shall              mail to Holders and file with the Trustee a notice stating the proposed effective              date. The Issuer shall mail such notice at least ten (10) days before such proposed              effective date. Failure to mail such notice or any defect therein shall not affect the              validity of any transaction referred to in this section 7.4.       36990-2073 30186571.16    

 

                                    - 63 -   7.5         Effect of Recapitalization, Reclassification, Consolidation, Merger or Sale.               If any of following events occur (each, a “Business Combination”):               (a)   any recapitalization, reclassification or change of the Common Shares,                    other than changes resulting from a subdivision or a combination,               (b)   a consolidation, amalgamation, merger, arrangement or combination                    involving the Issuer,               (c)   a sale, conveyance or lease to another corporation of all or substantially all                    of the property and assets of the Issuer, other than one or more of the                    Issuer’s Subsidiaries, or               (d)   any statutory share exchange,               in each case as a result of which holders of Common Shares are entitled to receive              shares, other securities, other property or assets (including cash or any              combination thereof) with respect to or in exchange for Common Shares, the              Issuer or the successor or purchasing corporation, as the case may be, shall              execute with the Trustee a supplemental indenture (which shall comply with              Applicable Laws as in force at the date of execution of such supplemental              indenture) providing that the Holders of the Debentures then outstanding will be              entitled thereafter to convert such Debentures into the kind and amount of shares              of stock, other securities or other property or assets (including cash or any              combination thereof) which they would have owned or been entitled to receive              upon such Business Combination had such Debentures been converted into              Common Shares immediately prior to such Business Combination.                In the event holders of Common Shares have the opportunity to elect the form of              consideration to be received in such Business Combination, the Debentures will              be convertible into the weighted average of the kind and amount of consideration              received by the holders of the Common Shares that affirmatively make such an              election. The Issuer may not become a party to any such transaction unless its              terms are consistent with this section 7.5. Such supplemental indenture shall              provide for adjustments which shall be as nearly equivalent as may be practicable              to the adjustments provided for in this Article 7. If, in the case of any such              Business Combination, the stock or other securities and assets receivable              thereupon by a holder of Common Shares includes shares of stock or other              securities and assets of a corporation other than the successor or purchasing              corporation, as the case may be, in such Business Combination, then such              supplemental indenture shall also be executed by such other corporation and shall              contain such additional provisions to protect the interests of the Holders of the              Debentures as the Board of Directors shall reasonably consider necessary by              reason of the foregoing, including to the extent practicable the provisions              providing for the repurchase rights set forth in Article 3 hereof. Notwithstanding              anything contained in this section, and for the avoidance of doubt, this section              shall not affect the right of a Holder to convert its Debentures into Common     36990-2073 30186571.16   

 

                                     - 64 -                Shares prior to the effective date of the Business Combination in accordance with               the terms of this Indenture.    7.6         Voluntary Increase                Subject to approval of the TSX, the Issuer from time to time may increase the               Conversion Rate, to the extent permitted by law, by any amount for any period of               time if the period is at least twenty (20) days, its Board of Directors has made a               determination that this increase would be in the Issuer’s best interests, and the               Issuer provides fifteen (15) days’ prior written notice of any increase in the              Conversion Rate to the Trustee and Holders.  Subject to the approval of the TSX,               the Issuer may also make such an increase to the Conversion Rate as the Board of               Directors determines would avoid or diminish Canadian federal income tax to               holders of Common Shares in connection with a dividend or distribution of stock               (or rights to acquire stock) or from any event treated as such for Canadian federal               income tax purposes.    7.7         Protection of Trustee                The Trustee shall not at any time be under any duty or responsibility to any               Holder to determine whether any facts exist which may require any adjustment in               the Conversion Price, or with respect to the nature or extent of any such               adjustment when made, or with respect to the method employed in making the               same; and shall not be accountable with respect to the validity or value (or the               kind or amount) of any Common Shares or of any shares or other securities or               other property which may at any time be issued or delivered upon the conversion               of any Debenture; and the Trustee, except to the extent that the Trustee or its               employees or agents have acted negligently or in wilful disregard of their               obligations hereunder or shall not have complied with Article 13, shall not be               responsible for any failure of the Issuer to make any cash payment or to issue,               transfer or deliver Common Shares or share certificates upon the surrender of any               Debenture for the purpose of conversion, or to comply with any of the covenants               contained in this Article 7.                                     ARTICLE 8                              NEGATIVE COVENANTS    8.1         Limitation on Indebtedness    Without the consent of the Holders of not less than 66 2/3% of the aggregate principal amount of   the Debentures then Outstanding, the Issuer shall not, and shall not permit any of its Subsidiaries   to, directly or indirectly, incur, assume, guarantee or otherwise become directly or indirectly   liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness or  permit any Indebtedness to be outstanding, other than:               (a)   the Debentures and the Guarantees;                (b)   Specified Senior Indebtedness in an aggregate principal amount at any one                    time outstanding not to exceed $550,000,000;        36990-2073 30186571.16    

 

                                    - 65 -               (c)   Indebtedness in an aggregate principal amount at any one time outstanding                    not to exceed $450,000,000, comprised of:                     (i)   Indebtedness secured by a Purchase Money Security Interest                          including Capital Leases;                      (ii)  Indebtedness incurred in connection with a sale and leaseback of                          real property;                     (iii) Indebtedness incurred under a securitization or factoring of                          receivables;                     (iv)  Indebtedness of any Subsidiary acquired by the Issuer or its                          Subsidiaries that existed prior to such acquisition and not incurred                          in contemplation of such acquisition;                      (v)   Indebtedness incurred to finance insurance premiums;                      (vi)  other Indebtedness (other than Specified Senior Indebtedness)                          provided that such Indebtedness shall be unsecured; or                     (vii) Indebtedness incurred to refinance any Indebtedness referred to in                          clauses (i) through (vi) above.               (d)   Indebtedness that by its terms is subordinated to the Debentures or to the                    applicable Guarantee, as the case may be, on terms substantially similar,                    mutatis mutandis, to the provisions of Article 4 herein and has a maturity                    at least six months after the Maturity Date; and               (e)   Indebtedness owing by the Issuer to any of its Subsidiaries and                    Indebtedness owing by a Subsidiary of the Issuer to the Issuer or any of its                    Subsidiaries; provided that if any such Indebtedness (i) is owed by the                    Issuer or a Guarantor to a Subsidiary that is not a Guarantor and (ii)                    together with all other Indebtedness owed by the Issuer and the Guarantors                    to such non-Guarantor Subsidiary is in an aggregate principal amount                    outstanding at any one time in excess of $10,000,000, then such                    Indebtedness shall at such time be subordinated to the Debentures or to the                    applicable Guarantee, as the case may be, on terms substantially similar,                    mutatis mutandis, to the provisions of Article 4 herein; provided further                    that with respect any such Indebtedness outstanding as of the date of this                    Indenture, the Issuer shall not be required to effect such subordination                    with respect thereto until the date that is 30 days after the date of this                    Indenture.   For purposes of determining compliance with this section 8.1, and the outstanding principal  amount of any particular Indebtedness shall be counted only once, and any obligations arising  under any guarantee, Lien, letter of credit or similar instrument supporting such Indebtedness  shall not be double counted; and in the event that an item of proposed Indebtedness meets the  criteria of more than one of the categories of Indebtedness described in clauses (b) through (e)     36990-2073 30186571.16   

 

                                     - 66 -    above (or any subclause thereof), the Issuer will be permitted to classify such item of   Indebtedness in whole or in part in any manner that complies with this covenant, including by   allocation to more than one other type of Indebtedness. In addition, any Indebtedness originally   classified as having been incurred pursuant to clauses (b) through (e) above (or any subclause   thereof) may later be reclassified by the Issuer such that it will be deemed as having been  incurred pursuant to another of such clauses or subclauses to the extent that such reclassified  Indebtedness could be incurred pursuant to such new clause or subclause at the time of such   reclassification.    8.2         Negative Pledge                Without the consent of the Holders of not less than of not less than 66 2/3% of the               aggregate principal amount of the Debentures then Outstanding, the Issuer shall               not, and shall not permit any of its Subsidiaries to, create, incur, assume or suffer               to exist any Lien on their present or future property or assets, except for Permitted               Liens.    8.3         Dividend Increase                The Issuer shall not cause or permit a Dividend Increase except at least thirty (30)               days prior to the record date for holders of Common Shares for the next dividend               payable by the Issuer on its Common Shares.     8.4         No Merger                Other than a transaction that constitutes or results in a Change of Control, the               Issuer and the Guarantors shall not conduct a transaction that constitutes a merger,               amalgamation, arrangement, reorganization or other Business Combination of the               Issuer or any Guarantor, unless, in the case of a transaction to which the Issuer is               a party, the successor corporation resulting from such merger, amalgamation,               arrangement, reorganization or other Business Combination has securities into               which the Debentures may be converted and such securities are listed for trading               on a Recognized Stock Exchange, unless the Issuer or such Guarantor complies               with the requirements of Article 15 and provided further that the provisions of this               section 8.4 shall not relieve the Issuer from the obligations under section 3.2 if               such transaction triggers the provisions of section 3.2.     8.5         Hedging                The Issuer shall not, and shall not permit any of its Subsidiaries to, enter into any               speculative hedging transaction.                                     ARTICLE 9                           COVENANTS OF THE ISSUER    9.1         Payment of Principal, Premium and Interest                The Issuer covenants and agrees with the Trustee and for the benefit of the               Holders that it will duly and punctually pay the principal of (and premium, if       36990-2073 30186571.16    

 

                                    - 67 -               any), the Additional Amounts, if any, and interest on the Debentures in              accordance with their terms and this Indenture.   9.2         Corporate Existence; Books of Account               The Issuer and each of the Guarantors covenant and agree with the Trustee for the              benefit of each Holder that:               (a)   it and (except pursuant to a transaction not prohibited by this Indenture)                    each of the Guarantors will at all times maintain its corporate existence;                    and               (b)   it and each of the Guarantors will keep or cause to be kept proper books of                    account in accordance with GAAP.   9.3         Compliance Certificate               The Issuer shall deliver to the Trustee within ninety (90) days after the end of              each Fiscal Year (and at any other reasonable time upon demand by the Trustee)             beginning with the Fiscal Year ended February 28, 2021, an Officer’s Certificate              stating that the Issuer has complied with all requirements of the Issuer contained              in this Indenture and stating whether or not a Default or Event of Default has              occurred and is continuing.  If a Default or Event of Default shall have occurred              and is continuing, the certificate shall describe the nature and particulars of the              Default or Event of Default and its current status and steps taken or proposed to              be taken to eliminate such circumstances and remedy such Default or Event of              Default, as the case may be.   9.4         Notice of Default               The Issuer will promptly notify the Trustee upon becoming aware of the              occurrence of a Default or Event of Default.   9.5         Securities Laws               The Issuer covenants and agrees with the Trustee for the benefit of the Holders              that:               (a)   unless a Change of Control has occurred, it will take all reasonable steps                    and actions and do all such acts and things as may be required to: (i) as                    long as it meets the applicable minimum distribution requirements, if any,                    of such institutions, maintain the listing and posting for trading of the                    Common Shares and, as applicable, the Debentures on a Recognized Stock                    Exchange, and (ii) maintain its status as a reporting issuer or equivalent in                    good standing or equivalent under the Applicable Securities Laws in the                    Provinces of Canada in which the Issuer is currently a reporting issuer or                    equivalent; and               (b)   it will, at the relevant times and upon exercise of the relevant rights or                    elections, comply and take all measures necessary to comply at all times     36990-2073 30186571.16   

 

                                    - 68 -                     with subsection 5.1(e) including, without limitation, make application for                    any order, ruling, registration or filing or give any notice required under                    Applicable Securities Laws; and               (c)   the Trustee shall have no obligation to verify information relating to the                    Issuer’s compliance with this section 9.5 and may act and rely upon all                    information provided by the Issuer with respect to such compliance,                    without independent inquiry.   9.6         Reporting               (a)   The Issuer shall provide to the Trustee (or file on SEDAR or any                    successor thereto) an annual report or annual information form and the                    continuous disclosure documents that must be filed with Canadian                    securities regulatory authorities pursuant to Applicable Securities Laws in                    the Provinces of Canada in which the Issuer is a “reporting issuer” (as                    such term is defined in such Applicable Securities Laws) within fifteen                    (15) days from the date such documents are required to be filed with                    Canadian securities regulatory authorities pursuant to Applicable                    Securities Laws.               (b)   In the event the Issuer is no longer subject to Applicable Securities Laws,                    the Issuer shall notify the Trustee, and the Issuer shall continue to provide                    to the Trustee, the Holders, and, upon request by Beneficial Holders, in the                    form set forth in Schedule 9.6(b), (a) within ninety (90) days after the end                    of each Fiscal Year, copies of its annual financial statements and related                    management’s discussion and analysis (“MD&A”), and (b) within forty-                   five (45) days after the end of each of the first three fiscal quarters of each                    Fiscal Year, interim financial statements and related MD&A which shall,                    at a minimum, contain such information required to be provided in such                    documents pursuant to Applicable Securities Laws in the Provinces of                    Canada in which the Issuer is, as of the date hereof, a “reporting issuer”                    (as such term is defined in such Applicable Securities Laws).  Each of                    such continuous disclosure documents will be prepared in accordance with                    disclosure requirements of Applicable Securities Laws of the Provinces of                    Canada in which the Issuer is a “reporting issuer” (as such term is defined                    in such Applicable Securities Laws) and GAAP.               (c)   In the event the Issuer is no longer subject to Applicable Securities Laws,                    the Issuer undertakes to do the following:                     (i)   hold a quarterly conference call to discuss the quarterly and annual                          information contained in the disclosure documents provided in                          subsection 9.6(b) no later than five (5) Business Days from the                          time the Issuer furnishes such documents to the Trustee;                     (ii)  no fewer than three (3) Business Days prior to the date of the                          conference call required to be held in accordance with                          section 9.6(c)(i),  issue a press release to the appropriate wire     36990-2073 30186571.16   

 

                                    - 69 -                           service for broad dissemination in Canada announcing the time and                          date of such conference call and directing the Beneficial Holders,                          prospective investors and securities analysts to contact the investor                          relations office of the Issuer to obtain the reports and information                          and instructions regarding how to access such conference call; and                     (iii) either:                           (1)   maintain an unrestricted public website to which Beneficial                                Holders, prospective investors and securities analysts are                                given access and to which the continuous disclosure                                documents described in section 9.6(b) and conference call                                access details are posted, or                            (2)   maintain a non-public website to which Beneficial Holders,                                prospective investors and securities analysts are given                                access and to which the reports and conference call access                                details are posted, or                           (3)   distribute via e-mail such reports and conference call                                details to Beneficial Holders, prospective investors and                                securities analysts who request to receive such                                distributions.               (d)   Promptly after the same shall have come to the attention of any                    responsible officer of the Issuer, the Issuer shall provide written notice of                    the occurrence of any Default or Event of Default hereunder to the                    Trustee.   9.7         Reserved   9.8         Performance of Covenants by Trustee               If the Issuer fails to perform any of its covenants contained in this Indenture, the              Trustee may itself perform any of such covenants capable of being performed by              it, but will be under no obligation to do so. All sums expended or advanced by the              Trustee for such purpose will be repayable as provided in section 9.9 of the              Indenture.  No such performance or advance by the Trustee shall relieve the Issuer              of any Default hereunder or its continuing obligations hereunder.   9.9         Payment of Trustee’s Remuneration               The Issuer will pay on demand the Trustee’s reasonable remuneration for its              services as Trustee hereunder (including reimbursement for disbursements which              include legal services) and will repay to the Trustee on demand all moneys which              shall have been paid by the Trustee out of its own funds in and about the              execution of the trusts hereby created, from the date of expenditure until              repayment, with interest thereon at the rate equal to the prime rate of a chartered              bank listed on Schedule I of the Bank Act (Canada) selected by the Trustee. The     36990-2073 30186571.16   

 

                                     - 70 -                said remuneration shall continue to be payable until the trusts hereof are finally               wound up and whether or not the trusts of this Indenture shall be in course of               administration by or under the direction of the court. This section 9.9 shall survive               the resignation of the Trustee or the termination of this Indenture.               Notwithstanding the foregoing, the Issuer need not pay or reimburse the Trustee               for expenses, disbursements or advances if the Trustee incurred such expenses,               disbursements or advances as a result of its dishonesty, bad faith, wilful               misconduct or negligence of a right, duty or obligation by the Trustee.    9.10        [Intentionally Deleted]    9.11        Further Instruments and Acts                Upon request of the Trustee, the Issuer and the Guarantors will execute and               deliver such further instruments and do such further acts as may be reasonably               necessary or proper to carry out more effectively the purposes of this Indenture.     9.12        No Dividends on Common Shares if Event of Default                The Issuer shall not declare or pay any dividend, other than a stock dividend of              Common Shares, to the holders of its issued and outstanding Common Shares              after the occurrence of an Event of Default unless and until such Event of Default              shall have been cured or waived or shall have ceased to exist, unless the Holders              of not less than 66 2/3% in aggregate principal amount of the Outstanding              Debentures consent to such declaration or payment, as applicable.                                     ARTICLE 10                       EVENTS OF DEFAULT AND REMEDIES   10.1        Events of Default and Enforcement               If and when any one or more of the following events (herein called an “Event of              Default”) shall happen with respect to the Debentures, namely:                     (i)   a default in payment of any principal amount or any purchase                          price, or Change of Control Repurchase Price with respect to the                          Debentures, when the same becomes due and payable;                       (ii)  a default in payment of interest (including any Additional                           Amounts) on any Debentures when due and payable and the                           continuance of such default for ten (10) days;                       (iii) a default in the observance of the covenant contained in                          subsection 9.5(a) or 11.3 and the continuance of such default for                          five (5) Business Days;                     (iv)  default in the delivery to any Holder when due of Common Shares                          and any cash payable upon conversion with respect to the                          Debentures, which default continues for three (3) Business Days;        36990-2073 30186571.16    

 

                                    - 71 -                     (v)   a default by the Issuer or any Guarantor in performing or observing                          any of the other covenants, agreements or obligations of the Issuer                          or the Guarantor, as the case may be, as described herein, and the                          continuance of such default for thirty (30) days after written notice                          to the Issuer by the Trustee or by the Holders of not less than 25%                          in principal amount of Outstanding Debentures requiring the same                          to be remedied;                     (vi)  the failure to make a Change of Control Repayment Offer upon the                          occurrence of a Change of Control;                     (vii) a decree, judgment, or order by a court having jurisdiction in the                          premises shall have been entered adjudging the Issuer or any                          Guarantor bankrupt or insolvent or approving as properly filed a                          petition seeking reorganization, readjustment, arrangement,                          composition or similar relief for the Issuer or any Guarantor, under                          the Bankruptcy and Insolvency Act (Canada), Companies’                          Creditors Arrangement Act (Canada) or any other similar                          bankruptcy, insolvency or analogous applicable law and such                          decree, judgment or order of a court having jurisdiction in the                          premises for the appointment of a receiver or liquidator or trustee                          or assignee in bankruptcy or insolvency of the Issuer or any                          Guarantor or of a substantial part of its property, or for the winding                          up or liquidation of its affairs, shall have remained in force for a                          period of thirty (30) consecutive days; or any substantial part of the                          property of the Issuer or any Guarantor shall be sequestered or                          attached and shall not be returned to the possession of the Issuer or                          any Guarantor or released from such attachment, as the case may                          be, whether by filing of a bond, or stay or otherwise, within thirty                          (30) consecutive days thereafter;                      (viii) the Issuer or any Guarantor shall institute proceedings to be                          adjudicated a voluntary bankrupt, or shall consent to the filing of a                          bankruptcy proceeding against it, or shall file a petition or answer                          or consent seeking reorganization, readjustment, arrangement,                          composition or similar relief under the Bankruptcy and Insolvency                          Act (Canada), Companies’ Creditors Arrangement Act (Canada) or                          any other similar bankruptcy, insolvency or analogous applicable                          law or shall consent to the filing of any such petition, or shall                          consent to the appointment of a receiver or liquidator or trustee or                          assignee in bankruptcy or insolvency for it or of a substantial part                          of its property, or shall make an assignment for the benefit of                          creditors, or shall be unable, or admit in writing its inability, to pay                          its debts generally as they become due, or corporate action shall be                          taken by the Issuer or any Guarantor in furtherance of any of the                          aforesaid actions;                     (ix)  a resolution is passed for the winding-up or liquidation of the                          Issuer or any Guarantor except in the course of carrying out or     36990-2073 30186571.16   

 

                                    - 72 -                           pursuant to a transaction in respect of which the conditions of                          section 15.1 are duly observed and performed;                     (x)   any of the Guarantees 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 any Guarantor, or any Person acting on behalf                          of a Guarantor, shall deny or disaffirm its obligations under its                          Guarantee; and                     (xi)  (A) if the Issuer or any Guarantor is in default (as principal or as                          guarantor or other surety) in the payment of any principal of or                          premium or make-whole amount on any Indebtedness that is                         outstanding in an aggregate principal amount of more than                         $50,000,000 (or its equivalent in the relevant currency of payment)                         beyond any period of grace provided with respect thereto, or (B) if                         the Issuer or any Guarantor is in default in the performance of or                         compliance with any term of any evidence of any Indebtedness in                         an aggregate outstanding principal amount of more than                         $50,000,000 (or its equivalent in the relevant currency of payment)                         or of any mortgage, indenture or other agreement relating thereto                         or any other condition exists, and in each case as a consequence of                         such default or condition such Indebtedness has become or has                         been declared due and payable before its stated maturity or before                         its regularly schedule dates of payment, or (C) as a consequence of                         the occurrence or continuation of any event or condition (other                         than (a) the passage of time or (b) the right of the holder of                         Indebtedness to convert such Indebtedness into equity interests or                         (c) any mandatory prepayment provisions in an agreement                         governing Indebtedness unless such provisions also require the                          permanent prepayment of all Indebtedness then outstanding and, if                          applicable, the permanent cancellation of all other amounts                          available to be borrowed under such agreement), the Issuer or any                          Guarantor has become obligated to purchase or repay Indebtedness                          (including any Specified Senior Indebtedness but excluding the                          Debentures) before its regular maturity or before its regularly                          scheduled dates of payment in an aggregate outstanding principal                          amount of more than $50,000,000 (or its equivalent in the relevant                          currency of payment); and                     (xii) failure by the Issuer or any of its Subsidiaries to pay final                          judgments aggregating in excess of an amount greater than                          $50,000,000 in cash (net of any amounts for which an insurance                          company is liable) rendered against the Issuer or any of its                          Subsidiaries by a court of competent jurisdiction, which judgments                          are not paid, discharged or stayed for a period of 30 days after such                          judgments become final and non-appealable.               then, and in each and every such case which has happened and is continuing              (other than an Event of Default specified in clause (vii) or (viii) above), the     36990-2073 30186571.16   

 

                                     - 73 -                Trustee may, in its discretion, and shall, upon the written request of the Holders of               not less than 25% in principal amount of the Outstanding Debentures at such time               (or, if there is a Global Debenture Outstanding, a written request of the               Participants having received instructions from the Beneficial Holders holding at               least 25% of the Outstanding Debentures), declare the principal of (and premium,               if any) together with accrued interest on all such Debentures to be due and               payable immediately, by a Notice in writing to the Issuer and to each Guarantor               (and to the Trustee if given by the Holders), and upon any such declaration such               principal amount and premium, if any, together with accrued interest thereon,               shall become immediately due and payable. If the Trustee fails to notify in writing              the Issuer pursuant to the terms hereof, the Holders having provided the written              request to the Trustee may do so. If an Event of Default specified in clause (vii) or              (viii) occurs and is continuing, then the principal of (and premium, if any)              together with accrued interest on all Outstanding Debentures shall become due              and payable without any declaration or other act on the part of either the Trustee              of any Holder.  For greater certainty, principal and premium shall include the              Change in Control Repurchase Price if owing under section 3.2, or if the Event of              Default upon which the Debentures are accelerated is a breach of section 3.2.   10.2        Notice of Event of Default               The Trustee shall give to the Holders, within five (5) days after the Trustee              becomes aware (by way of written Notice) of the occurrence of an Event of              Default, Notice of every Event of Default so occurring and continuing at the time               the Notice is given. When a Notice of the occurrence of an Event of Default is               given by the Trustee pursuant to this section 10.2 and the Event of Default is               thereafter cured, the Trustee shall give Notice that the Event of Default is no               longer outstanding to all Holders to whom Notice of the occurrence of the Event               of Default was given within five (5)  days after the Trustee becomes aware, by               written Notice given by the Issuer to the Trustee, that the Event of Default has               been cured and is no longer outstanding.    10.3        Waiver of Acceleration                At any time after a declaration of acceleration with respect to the Debentures has               been made pursuant to Article 10 and before a judgment or decree for payment of               the money due has been obtained by the Trustee as hereinafter provided, the               Holders of not less than 66 2/3% in principal amount of Outstanding Debentures,               by written Notice to the Issuer, each Guarantor and the Trustee, may thereupon               rescind and annul such declaration and its consequences:                (a)   if the Issuer has paid to or deposited with the Trustee a sum sufficient to                     pay:                      (i)   all overdue interest on all Debentures;                      (ii)  the principal of (and premium, if any) any of the Debentures which                           have become due otherwise than by such declaration of       36990-2073 30186571.16    

 

                                    - 74 -                           acceleration, and interest thereon at the rate or rates prescribed                          therefor in such Debentures; and                      (iii) to the extent that payment of such interest is lawful and applicable,                          interest upon overdue instalments of interest at the rate or rates                          prescribed therefor in such Debentures;               (b)   all Events of Default with respect to the Debentures, other than the non-                   payment of the principal of (and premium, if any), and interest on, such                    Debentures which have become due solely by such declaration of                    acceleration, have been cured or waived in accordance with the provisions                    of this Indenture; and               (c)   the rescission would not conflict with any judgement or degree of a court                    of competent jurisdiction.   10.4        Waiver               (a)   The Holders of not less than 66 2/3% in aggregate principal amount of the                    Outstanding Debentures may on behalf of the Holders of all Debentures                    waive any past Default hereunder and its consequences, except a Default:                     (i)   in the payment of the principal of (or premium, if any) or interest                          on any Debentures;                     (ii)  in respect of a covenant or provision hereof that under Article 17                          cannot be modified or amended without an Extraordinary                          Resolution passed by the Holders; or                     (iii) the uncured failure by the Issuer to deliver Common Shares when                          so required pursuant to this Indenture;                     in which case the Holders of not less than 91% in aggregate principal                    amount of Outstanding Debentures may on behalf of the Holders of all                    Debentures waive such default described in the foregoing subclauses (i)                    through (iii), 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. No such waiver shall extend to                    any subsequent or other Default or impair any right consequent thereon.   10.5        Other Remedies               (a)   If an Event of Default occurs and is continuing, the Trustee may pursue                   any available remedy to collect the payment of principal of (and premium,                   if any) or interest on Debentures or to enforce the performance of any term                    of the Debentures or this Indenture.               (b)   The Trustee may maintain a Proceeding even if it does not possess any                   Debentures or does not produce any of them in the Proceeding. A delay or                    omission by the Trustee or any Holder in exercising any right or remedy     36990-2073 30186571.16   

 

                                     - 75 -                      accruing upon an Event of Default shall not impair the right or remedy or                     constitute a waiver of or acquiescence in the Event of Default.    10.6        Application of Money Collected                Any money collected by the Trustee pursuant to this Article in respect of               Debentures shall (subject to any claims having priority under Applicable Law and               subject to section 2.14 and Article 4) be applied in the following order, at the               dates fixed by the Trustee and, in case of the distribution of such money on               account of principal of (and premium, if any) or interest, upon presentation of               Debentures and the notation thereon of the payment (if only partially paid) and              upon surrender thereof (if fully paid):               (a)   first, to the payment of all amounts due to the Trustee under this Indenture                    with respect to such Debentures;                (b)   second, to the payment of accrued interest on such Debentures;               (c)   third, to the payment of the principal of (and premium, if any) on such                    Debentures;               (d)   fourth, to the payment of any other amounts with respect to such                    Debentures; and                (e)   fifth, to whomever may be lawfully entitled to receive the balance of such                    money.   10.7        Control by Holders               (a)   Subject to the provisions of section 10.8, the Holders of at least a majority                    in principal amount of the Outstanding Debentures may:                     (i)   direct the time, method and place in the Province of Ontario for                          conducting any Proceeding for any remedy available to the Trustee                          or exercising any trust or power conferred on it with respect to the                          Debentures; and                      (ii)  take any other action authorized to be taken by or on behalf of the                          Holders of any specified aggregate principal amount of Debentures                          under any provisions of this Indenture or under Applicable Law.               (b)   The Trustee may refuse, however, to follow any direction that conflicts                    with law or this Indenture.   10.8        Limitation on Suits               No Holder of any Debenture will have any right to pursue any remedy (including              any action, suit or proceeding authorized or permitted by this Indenture or              pursuant to Applicable Law, but except actions for payment of overdue principal,              premium, if any, or interest or for the conversion of the Debentures pursuant to       36990-2073 30186571.16    

 

                                     - 76 -                Article 5) with respect to this Indenture or the Debentures unless: (i) the Holder               gives to the Trustee notice of a continuing Event of Default; (ii) the Holders of at              least 25% in principal amount of the then Outstanding Debentures make a request              in writing to the Trustee to pursue the remedy; (iii) such Holder or Holders offer              or provide to the Trustee security and indemnity in form satisfactory to the              Trustee against any loss, liability or expense; (iv) the Trustee does not comply              with the request within thirty (30) days after receipt of such request and              indemnity; and (v) during such thirty (30) day period the Holders of a majority in              principal amount of Outstanding Debentures do not give the Trustee a direction              inconsistent with the request.               Holders may not use this Indenture to prejudice the rights of another Holder or to              obtain a preference or priority over another Holder.   10.9        Collection Suit by Trustee               If an Event of Default specified in clause (i), (ii), (iii), (iv) or (xi) of subsection              10.1(xi)(A) occurs and is continuing, the Trustee may recover judgment in its own              name and as trustee against the Issuer for the whole amount of principal (and              premium, if any) and interest remaining unpaid.   10.10       Trustee May File Proofs of Claim               The Trustee may file such proofs of claim and other papers or documents as may              be necessary or advisable in order to have the claims of the Trustee and the              Holders lodged or allowed in any judicial proceedings relative to the Issuer, its              creditors or its property.   10.11       Undertaking for Costs               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 or omitted by it as Trustee, a              court in its discretion may require the filing by any party litigant in the suit of an               undertaking to pay the costs of the suit, and the court in its discretion may assess               reasonable costs, including reasonable attorneys’ fees, against any party litigant in              the suit, having due regard to the merits and good faith of the claims or defences               made by the party litigant. This section 10.11 does not apply to a suit by the               Trustee, a suit by a Holder that is permitted pursuant to section 10.8, or a suit by               any Holder or group of Holders of more than 50% in principal amount of the               Outstanding Debentures.    10.12       Remedies Cumulative                No remedy herein conferred upon or reserved to the Trustee or upon or to the               Holders is intended to be exclusive of any other remedy, but each remedy shall be              cumulative and shall be in addition to every other remedy given hereunder or now               existing or hereafter to exist by law or statute.  Every right and remedy given by               this Article or by law to the Trustee or to the Holders may be exercised from time        36990-2073 30186571.16    

 

                                     - 77 -                to time, and as often as may be deemed expedient, by the Trustee or by the               Holders, as the case may be.    10.13       Delay or Omission Not Waiver                No delay or omission of the Trustee or of any Holder of any Debenture 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 10 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 Indenture Trustee or by the Holders, as the              case may be.   10.14       Judgment Against the Issuer               The Issuer covenants and agrees with the Trustee that, in case of any Proceeding              to obtain judgment for payment of the principal of, premium, if any, or interest, if              any, on the Debentures, judgment may be rendered against it in favour of the              Holders or in favour of the Trustee, as holder of a power of attorney for the              Holders, for the amount which may remain due in respect of the Debentures and              the interest and premium, if any, thereon.   10.15       Rights of Holders to Receive Payment and to Convert               Notwithstanding any other provision of this Indenture, the right of any Holder of a              Debenture to receive payment of the principal amount, Change of Control              Repurchase Price and interest (including Additional Amounts), if any, in respect              of the Debentures held by such Holder, on or after the respective due dates              expressed in the Debentures and this Indenture (whether upon repurchase or              otherwise), and to convert such Debenture in accordance with Article 5, and to              bring suit for the enforcement of any such payment on or after such respective due              dates or for the right to convert in accordance with Article 5, is, subject to              compliance with the provisions of section 10.8, absolute and unconditional and              shall not be impaired or affected without the consent of the Holders of at least               91% in aggregate principal amount of the Outstanding Debentures.                                     ARTICLE 11                                   GUARANTEE   11.1        Guarantors               Each Person that is a Guarantor on the date hereof agrees to execute a guarantee              in substantially the form attached hereto as Schedule 11.1 concurrently herewith.               If at any time the aggregate amount of revenues or the aggregate amount of assets              of Subsidiaries of the Issuer which are not Guarantors represent 15% or more of              (i) the Consolidated Revenues of the Issuer for the 12-month period ending on the              last day (the “Measurement Date”) of the most recent Fiscal Year or fiscal              quarter for which financial statements of the Issuer are then available or (ii) the              Consolidated Assets of the Issuer as of the Measurement Date, then the Issuer will       36990-2073 30186571.16    

 

                                     - 78 -                cause such additional Subsidiaries to execute a guarantee in substantially the form               attached hereto as Schedule 11.1, and will comply with section 11.3, as may be               necessary to ensure that after giving effect thereto, the aggregate amount of               revenues or the aggregate amount of assets of Subsidiaries which are not               Guarantors represent less than 15% of the Consolidated Revenues of the Issuer for               the 12-month period ending on the Measurement Date and less than 15% of the               Consolidated Assets of the Issuer as of the Measurement Date.   11.2        Waiver Regarding Material Information               Each Guarantor hereby waives any right it may have to disclosure by the Trustee               or any of the Holders of material information in respect of the Issuer and/or any               dealings between the Issuer and the Trustee with respect to the Debentures.    11.3        Opinion Regarding Guarantors          The Issuer shall, within forty-five (45) days of the date that a Subsidiary becomes a              Guarantor after the date hereof, deliver to the Trustee an Opinion of Counsel (in              form and substance reasonably acceptable to Counsel to the Trustee, including              customary assumptions and limitations) in the jurisdiction of formation of such              Guarantor addressing the matters provided for in Schedule 11.3 hereto. In the              event that Counsel in any such jurisdiction advises that the form and substance of              such Guarantor’s Guarantee precludes such an opinion from being given or              Counsel to the Trustee advises the Trustee that modifications to the Guarantee are              required under the laws of the jurisdiction of such Guarantor, the Issuer shall              deliver a new Guarantee (which may be governed by the laws of the jurisdiction              of such Guarantor) from such Guarantor reasonably acceptable in form and              substance to Counsel to the Trustee, together with a corresponding Opinion of              Counsel.                                     ARTICLE 12                         SATISFACTION AND DISCHARGE   12.1        Non-Presentation of Debentures               If any Holder fails to present any Debentures for payment on the date on which              the principal of, premium, if any, or interest thereon, becomes payable, whether              on a Payment Date, Maturity Date or any other repayment date, or shall not accept              payment on account thereof and give such receipt therefor, if any, as the Trustee              may require:               (a)   the Issuer shall thereafter be entitled to pay or deliver to the Trustee and                    direct the Trustee to set aside;                (b)   in respect of moneys or Common Shares in the hands of the Trustee which                    may or should be applied to the payment of the Debentures, the Issuer                    shall thereafter be entitled to direct the Trustee to set aside; or        36990-2073 30186571.16    

 

                                    - 79 -               (c)   if the redemption was made pursuant to any Notice given by the Trustee,                    the Trustee may itself thereafter set aside,               the principal of, premium, if any, and interest on such Holder’s Debentures, in              trust to be paid to such Holder upon due presentation or surrender of such              Debentures in accordance with the provisions of this Indenture; and thereupon the              principal of, premium, if any, and interest payable on each Debenture in respect              whereof such moneys and, if permitted hereunder, Common Shares have been set              aside shall be deemed to have been paid and the Holder thereof shall thereafter              have no right in respect thereof except to receive delivery and payment of the              moneys or Common Shares, if applicable, so set aside by the Trustee upon due              presentation and surrender thereof, subject to the provisions of section 2.4. For              greater certainty, the provisions of Article 7 shall not prevent the application of              moneys received by the Trustee pursuant to this section 12.1 to the payment of              principal, premium, if any, and interest on such Holder’s Debentures.   12.2        Discharge               The Trustee shall at the written request of the Issuer release and discharge this              Indenture and execute and deliver such instruments as it shall be advised by              Counsel are requisite for that purpose and release the Issuer from its covenants              herein contained (other than the provisions relating to the indemnification of the              Trustee), upon proof being given to the reasonable satisfaction of the Trustee that              the principal of, premium, if any, and interest on (including interest on amounts in              default, if any) all of the Debentures and all other moneys payable hereunder have              been paid or satisfied or that, all of the Debentures having matured, payment of              the principal of, premium, if any, and interest (including interest on amounts in              default, if any) on such Debentures and all other moneys payable hereunder have              been duly and effectually provided for in accordance with the provisions hereof.                                    ARTICLE 13                                 THE TRUSTEE   13.1        Duties of Trustee               In the exercise of its rights, duties and obligations prescribed or conferred by this              Indenture, the Trustee shall act honestly and in good faith and shall exercise that              degree of care, diligence and skill that a reasonably prudent corporate trustee              would exercise in comparable circumstances. Subject to the foregoing, the Trustee              shall be liable only for an act or failure to act arising from or in connection with              dishonesty, bad faith, wilful misconduct or negligence of a right, duty or              obligation by the Trustee. The Trustee shall not be liable for any act or default on              the part of any agent employed by it or for permitting any agent or co-trustee to              receive and retain any moneys payable to the Trustee under this Indenture, except              as aforesaid.      36990-2073 30186571.16   

 

                                    - 80 -   13.2        Employ Agents               The Trustee may, but is not required to, employ (at the expense of the Issuer) such              Counsel, agents and other assistants as it may reasonably require for the proper              determination and discharge of its duties under this Indenture, and shall not be              responsible for any negligence or misconduct on the part of any such Counsel,              agent or other assistant or for any liability incurred by any Person as a result of              not employing such Counsel, agent or other assistant, and may pay reasonable              remuneration for all services performed for it with respect to this Indenture, and              shall be entitled to receive reimbursement for all reasonable disbursements, costs,              liabilities and expenses made or incurred by it with respect to this Indenture. All              such disbursements, costs, liabilities and expenses in relation to this Indenture and              all expenses incidental to the preparation, execution, creation and issuance of the              Debentures, whether done or incurred at the request of the Trustee or the Issuer,              shall bear interest at the posted annual rate of interest charged by the Trustee from              time to time to its corporate trust customers from the date which is thirty              (30) days following receipt by the Issuer of an invoice from the Trustee with              respect to such expenses until the date of reimbursement and shall (together with              such interest) be paid by the Issuer immediately upon receipt of such invoice. The              Trustee shall not be liable for the actions of any agent, or for relying and acting              upon the advice of any expert, provided it has chosen them with due care.   13.3        Reliance on Evidence of Compliance               In the exercise of its rights, duties and obligations under this Indenture, the              Trustee may, if it is acting in good faith, act and rely, as to the truth of the              statements and the accuracy of the opinions expressed therein, upon statutory              declarations, Opinions of Counsel, reports, directions, orders, certificates and              Officer’s Certificates required by the Trustee to be furnished to it in the exercise              of its rights, duties and obligations under this Indenture, if the Trustee examines              such statutory declarations, Opinions of Counsel, reports, directions, orders,              certificates or Officer’s Certificates and determines that they indicate compliance              with the applicable requirements of this Indenture.   13.4        Provision of Evidence of Compliance to Trustee               In addition to any other provisions of this Indenture, the Trustee may, at any time              any action is taken which relates to any of paragraphs (a) through (c) below, and              acting in good faith, require evidence of compliance with the conditions precedent              provided for in this Indenture relating to:               (a)   the certification pursuant to section 2.7 and delivery of Debentures;                (b)   the satisfaction and discharge of this Indenture; or                (c)   the taking of any other action or step to be taken by the Trustee at the                    request, or on the application, of the Issuer.      36990-2073 30186571.16   

 

                                     - 81 -    13.5        Contents of Evidence of Compliance                Evidence of compliance required by section 13.4 shall consist of:                (a)   an Officer’s Certificate certifying that the conditions precedent referred to                     in such Officer’s Certificate have been complied with in accordance with                     the terms of this Indenture;                 (b)   in the case of conditions precedent compliance with which are, pursuant to                     this Indenture, made subject to review or examination by Counsel, an                     Opinion of Counsel to the Issuer that such conditions precedent have been                     complied with in accordance with the terms of this Indenture; and                 (c)   in the case of conditions precedent compliance with which are subject to                     the review or examination by auditors or appraisers, an opinion or report                     of a chartered accountant or appraiser, as the case may be, approved by the                     Trustee acting reasonably, that such conditions precedent have been                     complied with in accordance with the terms of this Indenture.                Each Officer’s Certificate and Opinion of Counsel with respect to compliance              with a condition or covenant provided for in this Indenture shall include:                    (i)   a statement that the Person making such certificate or opinion has                          read such covenant or condition;                     (ii)  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;                     (iii) a statement that, in the opinion of such Person, he or she has made                          such examination or investigation as is necessary to enable him or                          her to express an informed opinion as to whether or not such                          covenant or condition has been complied with; and                     (iv)  a statement as to whether or not, in the opinion of such Person,                          such condition or covenant has been complied with;               provided, however, that with respect to matters of fact an Opinion of Counsel may              rely on an Officer’s Certificate or certificates of public officials.  13.6        Advice of Experts               The Trustee may act or not act and rely or not rely, and shall be protected in              acting or not acting and relying or not relying in good faith, on the opinion, advice              or information (including an Opinion of Counsel) obtained from any counsel,              auditor, valuer, engineer, surveyor or other expert, whether obtained by the              Trustee or by the Issuer, and, if acting in good faith, may rely as to the truth of the               statements and the accuracy of the opinions expressed in any report or opinion               furnished by such Person and may obtain such assistance as may be necessary to               the proper determination and discharge of its duties and may pay proper and       36990-2073 30186571.16    

 

                                    - 82 -               reasonable compensation for all such legal and other advice or assistance as              aforesaid, including the disbursements of any legal or other advisor or assistants.   13.7        Trustee May Deal in Debentures               In its personal capacity or any other capacity, the Trustee, and each Affiliate of              the Trustee, may buy, sell, lend upon, become a pledgee of and deal in the              Debentures and generally contract and enter into financial transactions with the              Issuer and any Affiliate of the Issuer without being liable to account for any              profits made thereby.   13.8        Conditions Precedent to Trustee’s Obligation to Act               (a)   The Trustee shall not be bound to give any notice, or to do, observe or                    perform or see to the observance or performance by the Issuer of any of                    the obligations imposed under the Indenture or to supervise or interfere                    with any of the activities of the Issuer, or to do or take any act, action or                    Proceeding by virtue of the powers conferred on it by this Indenture,                    unless and until it shall have been required to do so under the terms of this                    Indenture; nor shall the Trustee be required to take notice of any default or                    Event of Default, other than in payment of any moneys required by this                    Indenture to be paid to the Trustee, unless and until notified in writing of                    such default or Event of Default by the Issuer or by any Holder, which                    notice shall distinctly specify such default or Event of Default, and in the                    absence of any such notice the Trustee may conclusively assume that no                    default or Event of Default has occurred. Any such notice or requisition                    shall in no way limit any discretion given to the Trustee in this Indenture                    to determine whether or not to take action with respect to any default or                    Event of Default or with respect to any such requisition.               (b)   The obligation of the Trustee to do any of the actions referred to in                    subsection (a), including to commence or to continue any Proceeding or                    any right of the Trustee or the Holders, shall be conditional upon the                    Holders furnishing, when required by notice in writing by the Trustee,                    sufficient funds to commence or continue such action and an indemnity                    satisfactory to the Trustee to protect and hold harmless the Trustee against                    the costs, charges, expenses and liabilities which may result from such                    action and any loss and damage the Trustee may suffer by reason of such                    action.   13.9        Trustee Not Required to Give Security               The Trustee shall not be required to grant any Lien or give security for its conduct              or administration under this Indenture.      36990-2073 30186571.16   

 

                                    - 83 -   13.10       Resignation or Removal of Trustee; Conflict of Interest               (a)   The Trustee represents and warrants to the Issuer that at the time of the                    execution and delivery of this Indenture no material conflict of interest                    exists with respect to the Trustee’s role as a fiduciary hereunder.               (b)   The Trustee may resign as trustee hereunder by giving not less than sixty                    (60) days’ notice in writing to the Issuer or such shorter notice as the                    Issuer may accept as sufficient. The Trustee shall resign if a material                    conflict of interest arises with respect to its role as trustee under this                    Indenture that is not eliminated within ninety (90) days after the Trustee                    becomes aware of such conflict of interest. Immediately after the Trustee                    becomes aware that it has a material conflict of interest it shall provide the                    Issuer with written notice of the nature of that conflict. Upon any such                    resignation, the Trustee shall be discharged from all further duties and                    liabilities under this Indenture. None of the validity and enforceability of                    this Indenture or the Debentures shall be affected in any manner                    whatsoever by reason only of the existence of a material conflict of                    interest on the part of the Trustee (whether arising prior to or after the date                    of this Indenture). If the Trustee does not comply with this section, any                    Holder or the Issuer may apply to the Ontario Superior Court of Justice                    sitting in Toronto for an order that the Trustee be replaced as trustee under                    this Indenture.               (c)   In the event of the Trustee resigning or being removed by the Holders by                    Extraordinary Resolution or by the Issuer or being dissolved, becoming                    insolvent or bankrupt, going into liquidation or otherwise becoming                    incapable of acting as trustee under this Indenture, the Issuer shall                    immediately appoint a successor Trustee unless a successor Trustee has                    already been appointed by the Holders; failing such appointment by the                    Issuer, the retiring Trustee or any other Holder may apply to a judge of the                    Ontario Superior Court of Justice sitting in Toronto, on such notice as                    such judge may direct, for the appointment of a successor Trustee. The                    successor Trustee so appointed by the Issuer or by such court shall be                    subject to removal by the Holders by way of an Act of Holders. Any                    successor Trustee appointed under any provision of this section shall be a                    corporation authorized to carry on the business of a trust company in                    Canada. On any appointment of the successor Trustee, the successor                    Trustee shall be vested with the same powers, rights, duties and                    responsibilities as if it had been originally named in this Indenture as                    Trustee. The expenses of all acts, documents and Proceedings required                    under this section will be paid by the Issuer in the same manner as if the                    amount thereof were fees payable to the Trustee under this Indenture.               (d)   Any successor Trustee shall, immediately upon appointment, become                    vested with all the estates, properties, rights, powers and trusts of its                    predecessor in the trusts under this Indenture, with like effect as if                    originally named as Trustee hereunder. Nevertheless, upon the written                    request of the successor Trustee or of the Issuer and upon payment of all     36990-2073 30186571.16   

 

                                    - 84 -                     outstanding fees and expenses, the Trustee ceasing to act shall execute and                    deliver a document assigning and transferring to such successor Trustee,                    upon the trusts expressed in this Indenture, all the rights, powers and trusts                    of the Trustee so ceasing to act, and shall duly assign, transfer and deliver                    all property (including money) held by such Trustee to the successor                    Trustee in its place. Should any deed, conveyance or other document in                    writing from the Issuer be required by any successor Trustee for more                    fully and certainly vesting in and confirming to it such estates, properties,                    rights, powers and trusts, then any and all such deeds, conveyances and                    other documents in writing shall, on the request of the successor Trustee,                    be made, executed, acknowledged and delivered by the Issuer.               (e)   Any corporation into which the Trustee is amalgamated or with which it is                    consolidated or to which all or substantially all of its corporate trust                    business is sold or is otherwise transferred or any corporation resulting                    from any consolidation or amalgamation to which the Trustee is a party                    shall be a successor Trustee under this Indenture, without the execution of                    any document or any further act; provided that such successor Trustee is a                    corporation qualified to carry on the business of a trust company in                    Canada and shall not have a material conflict of interest in its role as a                    fiduciary under this Indenture.     13.11       Authority to Carry on Business; Resignation               The Trustee represents and warrants to the Issuer that at the date of execution and              delivery by it of this Indenture it is authorized to carry on the business of a trust              company in Canada. If the Trustee ceases to be so authorized to carry on business,              the validity and enforceability of this Indenture and the Debentures issued              hereunder shall not be affected in any manner by reason only of such event but              the Trustee shall, within ninety (90) days after ceasing to be authorized to carry              on the business of a trust company in Canada, either become so authorized or              resign in the manner and with the effect specified in section 13.10.     13.12       Protection of Trustee               By way of supplement to any Applicable Law from time to time relating to              trustees and in addition to any other provision of this Indenture for the relief of              the Trustee, it is expressly agreed that:               (a)   the Trustee shall not be liable for or by reason of any statements of fact or                    recitals in this Indenture or in the Debentures (except as provided in                    subsection 2.7(d) and sections 13.11 and 13.13 which are being given by                    the Trustee in its personal capacity) or required to verify the same, but all                    such statements or recitals are and shall be deemed to be made by the                    Issuer;                (b)   the Trustee shall not be bound to give to any Person notice of the                    execution of this Indenture unless and until an Event of Default and a     36990-2073 30186571.16   

 

                                    - 85 -                     declaration of acceleration has occurred, and the Trustee has determined                    or become obliged to enforce the same;                (c)   the Trustee shall not incur any liability or be in any way responsible for                    the consequence of any breach on the part of the Issuer of any of the                    covenants contained in this Indenture or of any acts of the agents or                    servants of the Issuer;                (d)   the Issuer indemnifies and saves harmless the Trustee and its officers,                   directors and employees and agents from and against any and all                   liabilities, losses, costs, claims, actions, expenses (including legal fees and                   disbursements on a solicitor and client basis) or demands whatsoever                   which may be brought against the Trustee or which it may suffer or incur                   as a result of or arising out of the performance of its duties and obligations                   under this Indenture, including those arising out of or related to actions                   taken or omitted to be taken by the Trustee contemplated by this                   Indenture, and including legal fees and disbursements on a full indemnity                   basis and costs and expenses incurred in connection with the enforcement                   of this indemnity, which the Trustee may suffer or incur, whether at law or                   in equity, in any way caused by or arising, directly or indirectly, in respect                   of any act, deed, matter or thing whatsoever made, done, acquiesced in or                   omitted in or about or in relation to the execution of its duties as Trustee,                   save only in the event of the gross negligence in acting or failing to act, or                   the wilful misconduct, dishonesty or bad faith of the Trustee. It is                   understood and agreed that this indemnification shall survive the                   termination or discharge of this Indenture or the resignation or removal of                   the Trustee;              (e)   without limiting the generality of subsection 13.12(d), the Issuer will                   indemnify and hold harmless the Trustee and upon written request                   reimburse the Trustee for the amount of (i) any taxes levied or imposed                   and paid by the Trustee as a result of payments made under or with respect                   to the Debentures, (ii) any liability (including penalties and interest)                   arising therefrom or with respect thereto paid by the Trustee as a result of                   payments made under or with respect to the Debentures, and (iii) any taxes                   levied or imposed and paid by the Trustee with respect to reimbursement                   under (a) and (b) above, but excluding any taxes on the Trustee’s net                   income arising from fees for acting as the trustee hereunder or in respect                   of the Trustee’s capital.              (f)   the Trustee shall not be liable by reason of the statements or implications                   of fact or law contained in or arising out of anything contained in this                   Indenture or in the Debentures or be required to verify the same, but all                   statements or implications shall be deemed to have been made by the                   Issuer only;              (g)   the Trustee may, in the exercise of all or any of the trusts, powers and                   discretion vested in it under this Indenture, act by the responsible officers                   of the Trustee; the Trustee may delegate to any Person the performance of     36990-2073 30186571.16   

 

                                    - 86 -                     any of the trusts and powers vested in it by this Indenture, and any                    delegation may be made upon such terms and conditions and subject to                    such regulations as the Trustee may think to be in the best interest of the                    Holders;               (h)   the Trustee shall not be required to take notice or be deemed to have                    notice or actual knowledge of any matter under this Indenture, unless the                    Trustee shall have received from the Issuer or a Holder written notice                    stating the matter in respect of which the Trustee should have notice or                    actual knowledge;               (i)   the Trustee shall not be bound to act in accordance with any direction or                    request of the Issuer until an executed copy of the document containing                    the direction or request has been delivered to the Trustee, and the Trustee                   shall be fully empowered to act and shall be fully protected from all                   liability in acting upon any document purporting to be a Debenture and                   believed by the Trustee to be genuine;               (j)   the Trustee shall not be responsible for any error made or act done by it                   resulting from reliance upon the signature of any Person on behalf of the                   Issuer or of any Person on whose signature the Trustee may be called upon                   to act or refrain from acting under this Indenture;              (k)   the Trustee shall not be liable for any error of judgment made in good                   faith, unless it is proved that the Trustee was negligent in ascertaining the                   pertinent facts;              (l)   the Trustee shall not be liable with respect to any action it takes or omits                   to take in accordance with the direction of the Holders given in accordance                   with the terms of this Indenture save only in the event of the gross                   negligence in acting or failing to act, or the wilful misconduct, dishonesty                    or bad faith of the Trustee; and               (m)   in no event shall the Trustee be responsible or liable for special, indirect,                    or consequential loss or damage of any kind whatsoever (including, but                    not limited to, loss of business, goodwill, opportunity or profit)                    irrespective of whether the Trustee has been advised of the likelihood of                    such loss or damage and regardless of the form of action.   13.13       Additional Representations and Warranties of Trustee               The Trustee represents and warrants to the Issuer that:               (a)   the Trustee is a trust company validly existing under the laws of its                    jurisdiction of incorporation;               (b)   the Trustee has full power, authority and right to execute and deliver and                    perform its obligations under this Indenture, and has taken all necessary      36990-2073 30186571.16   

 

                                    - 87 -                     action to authorize the execution, delivery and performance by it of this                    Indenture; and                (c)   this Indenture has been duly executed and delivered by the Trustee.   13.14       Third Party Interests               The Issuer hereby represents to the Trustee that any account to be opened by the              Trustee in connection with this Indenture for or to the credit of the Issuer, either:              (i) is not intended to be used by or on behalf of any third party; or (ii) is intended              to be used by or on behalf of a third party, in which case the Issuer agrees to              complete and execute forthwith a declaration in the Trustee’s prescribed form as              to the particulars of such third party.   13.15       Trustee Not Bound to Act               The Trustee shall retain the right not to act and shall not be liable for refusing to              act if, due to a lack of information or for any other reason whatsoever, the              Trustee, in its sole judgment, determines that such act might cause it to be in non-             compliance with any applicable anti-money laundering or anti-terrorist              legislation, regulation or guideline. Further, should the Trustee, in its sole              judgment, determine at any time that its acting under this Indenture has resulted in              its being in non-compliance with any applicable anti-money laundering or anti-             terrorist legislation, regulation or guideline, then it shall have the right to resign              on ten (10) days’ written notice to the Issuer provided: (i) that the Trustee’s              written notice shall describe the circumstances of such non-compliance; and              (ii) that if such circumstances are rectified to the Trustee’s satisfaction within              such ten (10) day period, then such resignation shall not be effective.   13.16       Compliance with Privacy Laws               The parties acknowledge that federal and/or provincial legislation that addresses              the protection of individuals’ personal information (collectively, the “Privacy              Laws”) applies to obligations and activities under this Indenture. Despite any              other provision of this Indenture, neither the Issuer, nor the Trustee nor any              Guarantor shall take or direct any action that would contravene, or cause the other              to contravene, applicable Privacy Laws. The Issuer shall, prior to transferring or              causing to be transferred personal information to the Trustee, obtain and retain              required consents of the relevant individuals to the collection, use and disclosure              of their personal information, or shall have determined that such consents either              have previously been given upon which the parties can rely or are not required              under the Privacy Laws. The Trustee shall use commercially reasonable efforts to              ensure that its services hereunder comply with Privacy Laws. Specifically, the              Trustee agrees: (a) to have a designated chief privacy officer; (b) to maintain              policies and procedures to protect personal information and to receive and              respond to any privacy complaint or inquiry; (c) to use personal information              solely for the purposes of providing its services under or ancillary to this             Indenture and not to use it for any other purpose except with the consent of or             direction from the Issuer or the individual involved; (d) not to sell or otherwise     36990-2073 30186571.16   

 

                                    - 88 -               improperly disclose personal information to any third party; and (e) to employ              administrative, physical and technological safeguards to reasonably secure and              protect personal information against loss, theft, or unauthorized access, use or              modification.    13.17       Force Majeure               Except for the payment obligations of the Issuer contained herein (including the              issuance of Common Shares), neither party shall be liable to the other, or held in              breach of this Indenture, if prevented, hindered, or delayed in the performance or              observance of any provision contained herein by reason of act of God, riots,              terrorism, acts of war, epidemics, pandemics, governmental action or judicial              order, earthquakes, or any other similar causes (including, but not limited to,              general mechanical, electronic or communication interruptions, disruptions or              failures). Performance times under this Indenture shall be extended for a period of              time equivalent to the time lost because of any delay that is excusable under this              section 13.17.    13.18       SEC Reporting               The Issuer represents and warrants that it is filing with the U.S. Securities and              Exchange Commission (“SEC”) as a U.S. domestic company and has delivered to              the Trustee an Officers’ Certificate certifying such “reporting issuer” status and              other information as the Trustee has requested, including, but not limited to, the              Central Index Key that has been assigned for filing purposes. Should the Issuer              cease to file as a U.S. domestic company, the Issuer covenants to deliver to the              Trustee an Officers’ Certificate satisfactory to the Trustee certifying a change in              “reporting issuer” status and such other information as the Trustee may require at              such given time. The Issuer understands that the Trustee is relying upon the              foregoing representation, warranty and covenant in order to meet certain SEC              obligations with respect to those clients who are filing with the SEC.                                    ARTICLE 14                            MEETINGS OF HOLDERS   14.1        Purposes for Which Meetings May be Called               A meeting of Holders may be called at any time and from time to time pursuant to              this Article to make, give or take any Act provided by this Indenture to be made,              given or taken by Holders.   14.2        Call, Notice and Place of Meetings               (a)   The Trustee may at any time and from time to time and shall, on receipt of                    an Issuer Request or a requisition in writing made by the Holders of at                    least 5% in principal amount of the Outstanding Debentures and upon                    being indemnified and funded to its reasonable satisfaction by the Issuer                    or upon being funded and indemnified to its reasonable satisfaction by the                    Holders making such requisition, as the case may be, against the costs     36990-2073 30186571.16   

 

                                    - 89 -                     which may be incurred in connection with the calling and holding of such                    meeting, call a meeting of Holders for any purpose specified in                    section 14.1, to be held at such time and at such place in the City of                    Toronto, Province of Ontario, as the Trustee shall determine. Notice of                   every meeting of Holders, setting forth the time and place of such meeting                   and in general terms the action proposed to be taken at such meeting, shall                   be given, in the manner provided in section 16.2, not less than twenty-one                   (21) or more than sixty (60) days prior to the date fixed for the meeting.              (b)   If at any time the Issuer, pursuant to a Board Resolution, or the Holders of                   at least 5% in principal amount of the Outstanding Debentures shall have                    requested the Trustee to call a meeting of the Holders for any purpose                   specified in section 14.1, by written request setting forth in reasonable                   detail the action proposed to be taken at the meeting, and the Trustee shall                    not have made the first publication, or mailing, as the case may be, of the                    notice of such meeting within thirty (30) days after receipt of such request,                    funding and indemnity or shall not thereafter proceed to cause the meeting                    to be held as provided herein, then the Issuer or the Holders in the amount                    above specified, as the case may be, may determine the time and the place                    in the City of Toronto, Province of Ontario, for such meeting and may call                    such meeting for such purposes by giving notice thereof as provided in                    subsection (a).   14.3        Proxies               A Holder may be present and vote at any meeting of Holders, and may sign              written resolutions and other instruments in writing in lieu of a meeting as              contemplated in section 14.8, by an authorized representative. The Issuer with the              approval of the Trustee may, from time to time, make and vary regulations as it              shall think fit providing for and governing any or all the following matters for the              purpose of enabling the Holders to vote at any such meeting by proxy:               (a)   the form of the instrument appointing a proxy, which shall be in writing,                    and the manner in which the same shall be executed and the production of                    the authority of any Person signing on behalf of a Holder;               (b)   the deposit of instruments appointing proxies at such place as the Trustee,                    the Issuer or the Holder convening the meeting, as the case may be, may in                    the notice convening the meeting, direct and the time, if before the holding                    of the meeting or any adjournment thereof by which the same must be                    deposited; and                (c)   the deposit of instruments appointing proxies at some approved place or                    places other than the place at which the meeting is to be held and enabling                    particulars of such instruments appointing proxies to be mailed, faxed, or                    sent by other electronic communication before the meeting to the Issuer or                    to the Trustee at the place where the same is to be held and for the voting                    of proxies so deposited as though the instruments themselves were                    produced at the meeting.     36990-2073 30186571.16   

 

                                    - 90 -   14.4        Persons Entitled to Vote at Meetings               To be entitled to vote at any meeting of Holders, a Person shall be: (a) a Holder of              one or more Outstanding Debentures; or (b) a Person appointed by an instrument              in writing as proxy for a Holder or Holders of one or more Outstanding              Debentures by such Holder or Holders. The only Persons who shall be entitled to              be present or to speak at any meeting of Holders shall be the Persons entitled to              vote at such meeting and their counsel, any representatives of the Trustee and its              Counsel and any representatives of the Issuer and its Counsel and independent              accountants.   14.5        Quorum; Action               (a)   Persons entitled to vote 25% in principal amount of Outstanding                    Debentures shall constitute a quorum for a meeting of Holders. In the                    absence of a quorum within thirty (30) minutes of the time appointed for                    any such meeting, the meeting shall, if convened at the request of Holders,                    be dissolved. In the absence of a quorum in any other case the meeting                    may be adjourned for a period of not less than ten (10) days as determined                    by the chairman of the meeting prior to the adjournment of such meeting.                    In the absence of a quorum at any such adjourned meeting, the Holders                    present or represented at such adjourned meeting shall constitute the                    quorum and the business for which the meeting was adjourned may be                    transacted. Notice of the reconvening of any adjourned meeting shall be                    given as provided in subsection 14.2(a), except that such notice need be                    given only once not less than five (5) days prior to the date on which the                    meeting is scheduled to be reconvened.               (b)   Except as limited by subsection 17.2, any resolution presented to a                    meeting or adjourned meeting duly reconvened at which a quorum is                    present as aforesaid may be adopted only by the affirmative vote of                    Holders of a majority in principal amount of the Debentures present or                    represented by proxy at such meeting or adjourned meeting; provided,                    however, that, except as limited by subsection 17.2, any resolution with                    respect to any Act that this Indenture expressly provides may be made,                    given or taken by the Holders of a specified percentage, which is less than                    a majority, in principal amount of Outstanding Debentures may be                    adopted at a meeting or an adjourned meeting duly reconvened and at                    which a quorum is present as aforesaid by the affirmative vote of the                    Holders of such specified percentage in principal amount of Outstanding                    Debentures.               (c)   Any resolution passed or decision taken at any meeting of Holders duly                    held in accordance with this section 14.5 will be binding on all Holders,                    whether or not present or represented at the meeting.      36990-2073 30186571.16   

 

                                    - 91 -   14.6        Determination of Voting Rights; Chairman; Conduct and Adjournment of              Meetings               (a)   Notwithstanding any other provisions of this Indenture, the Trustee or the                    Issuer, with the approval of the Trustee, may make and from time to time                    may vary such reasonable regulations as it may deem advisable for any                    meeting of Holders in regard to proof of the holding of Debentures and the                    appointment of proxies and in regard to the appointment and duties of                    scrutineers of votes, the submission and examination of proxies,                    certificates and other evidence of the right to vote, and such other matters                    concerning the conduct of the meeting as it shall deem appropriate. Except                    as otherwise permitted by any such regulations, the holding of Debentures                    shall be proved in the manner specified in section 1.12 and the                    appointment of any proxy shall be proved in the manner specified in                    section 1.12. Such regulations may provide that written instruments                   appointing proxies, regular on their face, may be presumed valid and                    genuine without the proof specified in section 1.12 or other proof.                (b)   The Trustee shall, by an instrument in writing, appoint a chairman and                    secretary of the meeting, unless the meeting shall have been called by the                    Issuer or by Holders as provided in subsection 14.2(b), in which case the                    Issuer or the Holders calling the meeting, as the case may be, shall in like                    manner appoint a chairman and secretary.               (c)   At any meeting of Holders, each Holder of a Debenture or proxy shall be                    entitled to one vote for each one thousand Dollars ($1,000) principal                    amount of Debentures held or represented by such Holder; provided,                    however, that no vote shall be cast or counted at any meeting in respect of                    any Debenture challenged as not Outstanding and ruled by the chairman of                    the meeting to be not Outstanding. The chairman of the meeting shall have                    no right to vote, except as a Holder of a Debenture or proxy.               (d)   Any meeting of Holders duly called pursuant to subsection 14.2(b) at                    which a quorum is present may be adjourned from time to time by Persons                    entitled to vote a majority in principal amount of Outstanding Debentures                    represented at the meeting and the meeting may be held as so adjourned                    without further notice.   14.7        Counting Votes and Recording Action of Meetings               The vote upon any resolution submitted to any meeting of Holders shall be by              written ballots on which shall be inscribed the signatures of the Holders or of their              representatives by proxy and the principal amounts and serial numbers of              Outstanding Debentures held or represented by them. The chairman of the              meeting shall appoint two scrutineers of votes who shall count all votes cast at the              meeting for or against any resolution and who shall make and file with the              secretary of the meeting their verified written reports in triplicate of all votes cast              at the meeting. A record, at least in triplicate, of the proceedings of each meeting              of Holders shall be prepared by the secretary of the meeting and there shall be     36990-2073 30186571.16   

 

                                    - 92 -               attached to said record the original reports of the scrutineers of votes on any vote              by ballot taken thereat and affidavits by one or more Persons having knowledge              of the facts setting forth a copy of the notice of the meeting and showing that said              notice was given as provided in section 14.2 and, if applicable, section 14.5. Each              copy shall be signed and verified by the affidavits of the chairman and secretary              of the meeting and one such copy shall be delivered to the Issuer, and another to              the Trustee to be preserved by the Trustee, the latter to have attached thereto the              ballots voted at the meeting. Any record so signed and verified shall be conclusive              evidence of the matters therein stated.   14.8        Instruments in Writing               All actions which may be taken and all powers which may be exercised by the              Holders at a meeting held as hereinbefore in this Article 14 may also be taken and              exercised (i) by the Holders of a 66 2/3% of the principal amount of Outstanding              Debentures by an instrument in writing signed in one or more counterparts by              such Holders or their duly appointed proxies or agents with respect to resolutions              which are not Extraordinary Resolutions and (ii) by the Holders of at least 91% in              principal amount of Outstanding Debentures by an instrument in writing signed in              one or more counterparts by such Holders or their duly appointed proxies or              agents with respect to resolutions which are Extraordinary Resolutions and the              expression “Extraordinary Resolution” when used in this Indenture shall              include an instrument so signed.     14.9        Holdings by the Issuer Disregarded               In determining whether Holders holding Debentures evidencing the required              number of Debentures are present at a meeting of Holders for the purpose of              determining a quorum or for the purpose of determining whether Holders have              concurred in any consent, waiver, resolution or other action under this Indenture,              the Debentures owned legally or beneficially by the Issuer and its Subsidiaries              shall be disregarded.                                    ARTICLE 15    AMALGAMATION, CONSOLIDATION, CONVEYANCE, TRANSFER OR LEASE   15.1        Amalgamation and Consolidations of Issuer and Conveyances Permitted              Subject to Certain Conditions               Neither the Issuer nor any of the Guarantors will consolidate with or amalgamate              into any other corporation or enter into any reorganization or arrangement or              effect any conveyance, sale, transfer or lease of all or substantially all of its assets,              unless in any such case:                (a)   either (1) the Issuer or such Guarantor (as the case may be) shall be the                    continuing corporation, or (2) the successor corporation (or the Person that                    leases or that acquires by conveyance, sale or transfer all or substantially                    all of the Issuer’s assets) (such corporation or Person being referred to as                    the “Successor Issuer” or “Successor Guarantor” as the case may be)     36990-2073 30186571.16   

 

                                    - 93 -                     (x) shall be organized and existing under (A) in the case of a Successor                    Issuer, the laws of Canada or of any province thereof, the United States or                    any State thereof or the District of Columbia or (B) in the case of a                    Successor Guarantor, the laws of Canada or of any province thereof, the                    United States or any State thereof or the District of Columbia, or the                    jurisdiction in which the Guarantor party to such transaction existed prior                    to such transaction and (y) (i) in the case of a Successor Issuer shall                    expressly assume the due and punctual payment of the principal of, the                    premium, if any, and interest on all Outstanding Debentures, according to                   their tenor, and the due and punctual performance and observance of all                   the covenants and conditions of this Indenture to be performed by the                   Issuer by supplemental indenture satisfactory to the Trustee, executed and                   delivered to the Trustee by such corporation or (ii) in the case of a                   Successor Guarantor, shall expressly assume the due and punctual                   performance and observance of the relevant Guarantee by execution and                   delivery to the Trustee of a guarantee substantially in the form attached                   hereto as Schedule 11.1;              (b)   in the case of a transaction to which the Issuer is a party and the Issuer is                   not the continuing corporation the Debentures will be valid and binding                   obligations of the Successor Issuer entitling the Holders thereof, as against                   the Successor Issuer, to all the rights of Holders under this Indenture;              (c)   the Issuer, the Guarantor, or such Successor Issuer or Successor                   Guarantor, as the case may be, shall not immediately thereafter be in                   default under this Indenture or the Debentures and no event that, after                   notice or passage time, would become an Event of Default, shall have                   occurred and be continuing;              (d)   except in the case of a transaction resulting in a Change of Control, in the                   case of a transaction to which the Issuer is a party, either the Issuer will                   remain or the Successor Issuer will be a reporting issuer or equivalent in                   good standing or equivalent under Applicable Securities Laws in the                   jurisdictions in which such entity is a reporting issuer and shall have                   securities into which the Debentures may be converted which securities                   are listed for trading on a Recognized Stock Exchange; and              (e)   if the Issuer or the relevant Guarantor, as the case may be, will not be the                   continuing corporation, the Issuer shall have, at or prior to the effective                   date of such consolidation, merger, transfer or other transaction, delivered                   to the Trustee an Officer’s Certificate and an Opinion of Counsel, each                   stating that such consolidation, merger, transfer or other transaction                    complies with this section 15.1 and, if a supplemental indenture is                    required in connection with such transaction, such supplemental indenture                    complies with this Article, and that all conditions precedent herein                    provided for and relating to such transaction have been complied with.                Upon the assumption of the Issuer’s or any of the Guarantors’ obligations by such              entity in such circumstances, the Issuer or the Guarantor, as applicable, shall be     36990-2073 30186571.16   

 

                                     - 94 -                discharged from all obligations under the Debentures and the Indenture and, in the               case of a Guarantor, the Guarantee. Although such transactions are permitted              under the Indenture, certain of the foregoing transactions occurring could              nevertheless constitute a Change of Control of the Issuer, permitting each Holder              to require the Issuer to purchase the Debentures of such Holder as described              above.   15.2        Rights and Duties of Successor Issuer or Successor Guarantor               (a)   In case of any such amalgamation, reorganization, arrangement,                    conveyance, sale, transfer or lease and upon any such assumption by a                    Successor Issuer or Successor Guarantor, such Successor Issuer or                    Successor Guarantor shall, in the case of a Successor Issuer, agree to be                    bound by the terms of this Indenture as principal obligor in place of the                     Issuer, and in the case of a Successor Guarantor, the relevant Guarantee,                     with the same effect as if it had been named herein as the Issuer or a                     Guarantor. Any such Successor Issuer thereupon may cause to be signed,                     and may issue either in its own name or in the name of the Issuer, any or                     all Debentures which theretofore shall not have been signed by the Issuer                     and delivered to the Trustee. All Debentures so issued shall in all respects                     have the same legal rank and benefit under this Indenture as Debentures                     theretofore or thereafter issued in accordance with the terms of this                    Indenture as though all of such Debentures have been issued at the date of                    the execution hereof.               (b)   In the case of any such amalgamation, reorganization, arrangement,                    conveyance, sale, transfer or lease, such changes in phraseology and form                    (but not in substance) may be made in Debentures thereafter to be issued                    as may be appropriate.                                     ARTICLE 16                                     NOTICES   16.1        Notice to Issuer               Any Notice to the Issuer shall be in writing and shall be valid and effective if              personally delivered or sent by facsimile transmission (with receipt confirmed) to              the Issuer, at:               BlackBerry Limited               2200 University Avenue East              Waterloo, ON N2K 0A7               Attention: Randall Cook               Facsimile:   (519) 883-4946               and such Notice shall be deemed to have been received by the Issuer, where given              by delivery, on the day of delivery, where sent by facsimile transmission (with       36990-2073 30186571.16    

 

                                    - 95 -               receipt confirmed), on the day of transmittal of such Notice if sent before              5:00 p.m. (Toronto time) on a Business Day and on the next succeeding Business              Day if not sent before 5:00 p.m. (Toronto time) on a Business Day. The Issuer             may from time to time notify the Trustee of a change in address or facsimile              number by Notice given as provided in section 16.3.   16.2        Notice to Holders               (a)   Any Notice to Holders may be effectively given if personally delivered,                    couriered, sent by facsimile transmission (with receipt confirmed), or                    mailed, in each case at the post office address appearing in the relevant                    register and such Notice shall be deemed to have been received by a                    Holder, where given by delivery, on the day of delivery, where sent by                    facsimile transmission (with receipt confirmed) on the day of transmittal                    of such Notice if sent before 5:00 p.m. (Toronto Time) on a Business Day,                    and, where mailed, on the fifth Business Day following the mailing date.                (b)   If the regular mail service is suspended or for any other reason it shall be                    impracticable to give Notice to Holders by mail, then such notification to                    Holders may be given by the publication of the Notice once in a daily                    newspaper with national circulation in Canada, electronic transmission or                    in any other manner approved by the Trustee, and it shall constitute                    sufficient Notice to such Holders for every purpose hereunder. In any case                    where Notice to Holders is given by mail, neither the failure to mail such                    Notice nor any defect in any Notice so mailed to any particular Holder                    shall affect the sufficiency of such Notice with respect to other Holders.               (c)   Any Notice sent to the Holders as provided above shall be effective                    notwithstanding that any such Notice has accidentally or inadvertently not                    been delivered or mailed to one or more such Holders.   16.3        Notice to Trustee               Any Notice to the Trustee shall be in writing and shall be valid and effective if              personally delivered, couriered or sent by facsimile transmission at:              BNY Trust Company of Canada             1 York Street, 6th Floor             Toronto, Ontario M5J 0B6                          Attention:   Corporate Trust Administration                          Facsimile: (416) 360-1711             Email: csmtoronto@bnymellon.com             Telephone: (416) 933-8500                           and such Notice shall be deemed to have been received by the Trustee, where              given by delivery, on the day of delivery or where sent by facsimile transmission              (with receipt confirmed), on the day of transmittal of such Notice if sent before     36990-2073 30186571.16   

 

                                    - 96 -               5:00 p.m. (Toronto Time) on a Business Day and on the next succeeding Business              Day if not sent before 5:00 p.m. (Toronto Time) on a Business Day. The Trustee              may from time to time notify the Issuer of a change in address or facsimile              number by Notice given as provided in section 16.1.                                                     ARTICLE 17                  AMENDMENTS, SUPPLEMENTS AND WAIVERS   17.1        Without Consent of Holders               The Issuer and the Trustee may amend or supplement this Indenture, the              Guarantees or the Debentures without notice to or consent of any Holder for the              purpose of:               (a)   evidencing a successor to the Issuer or a Guarantor and the assumption by                    that successor of the Issuer’s or one or more Guarantors’ obligations under                    this Indenture, the Guarantee and the Debentures;                (b)   adding to the Issuer’s or the Guarantors’ covenants for the benefit of the                    Holders or surrendering any right or power conferred upon the Issuer or                    the Guarantor;               (c)   securing the Issuers or one or more of the Guarantors’ obligations in                    respect of the Debentures;               (d)   adding a Guarantor;               (e)   evidencing and providing for the acceptance of the appointment of a                    successor trustee in accordance with Article 13;               (f)   complying with the requirements of the Business Corporations Act                    (Ontario) applicable to trust indentures;               (g)   curing any ambiguity, omission or inconsistency or correcting or                    supplementing any defective provision contained in this Indenture; or               (h)   making any other changes to the Indenture that do not adversely affect the                    interest of the Holders in any material respect.   17.2        With Consent of Holders               (a)   The Issuer and the Trustee may amend or supplement this Indenture, the                    Guarantees or the Debentures with the written consent of the Holders of at                    least a majority in aggregate principal amount of the Debentures then                    outstanding.  However,  without approval thereof by Extraordinary                    Resolution, an amendment, supplement or waiver may not:      36990-2073 30186571.16   

 

                                    - 97 -                     (i)   alter the manner of calculation or rate of accrual of interest on the                          Debentures or change the time of payment;                     (ii)  make the Debentures convertible into securities other than                          Common Shares;                     (iii) change the Stated Maturity of the principal of, or any instalment of                          interest on, any Debenture;                     (iv)  reduce the principal amount or Change of Control Repurchase                          Price with respect to the Debenture;                     (v)   make any change that adversely affects the rights of Holders to                          require the Issuer to purchase the Debentures at the option of                          Holders;                     (vi)  impair the right to institute suit for the enforcement of any                          payment with respect to the Debenture or with respect to                          conversion of the Debenture;                     (vii) change the currency of payment of principal of, or interest on, the                          Debenture;                     (viii) except as otherwise permitted or contemplated by provisions of the                          Indenture concerning specified reclassification or corporate                          reorganizations, or otherwise pursuant to Article 7, change the                          Conversion Rate or otherwise adversely affect the conversion                          rights of the Holders;                     (ix)  release any of the Guarantors from any of their obligations under                          the Guarantee or the Indenture, except in accordance with the                          Indenture;                      (x)   change the provisions in the Indenture that relate to modifying or                          amending the Indenture.                     (xi)  reduce the percentage in principal amount of the Outstanding                          Debentures, the consent of whose Holders is required for any such                          supplemental indenture, or the consent of whose Holders is                          required for any waiver of compliance with certain provisions of                          this Indenture or certain defaults hereunder and their consequences                          provided for in this Indenture, or reduce the requirements of                          section 14.4 for voting or section 14.5 for quorum or;                     (xii) modify any of the provisions of this section 17.2 except to provide                          that certain other provisions of this Indenture cannot be modified                          or waived without the consent of the Holders of Debentures                          expressed by Extraordinary Resolution.      36990-2073 30186571.16   

 

                                     - 98 -                Notwithstanding the foregoing provisions of this section 17.2, none of such               provisions shall in any manner allow or permit any amendment, modification,               abrogation or addition to the provisions of Article 4 which could reasonably be               expected to detrimentally affect the rights, remedies or recourse or the priority of               the Senior Creditors under Specified Senior Indebtedness.                (b)   After an amendment, supplement or waiver under this section 17.2                     becomes effective, the Issuer shall promptly mail to the Holders affected                     thereby a notice briefly describing the amendment, supplement or waiver.                      Any failure of the Issuer to mail such notice, or any defect therein, shall                     not, however, in any way impair or affect the validity of any such                     amendment, supplement or waiver.    17.3        Execution of Supplemental Indentures                In executing, or accepting the additional trusts created by, any supplemental               indenture permitted by this Article 17 (a “Supplemental Indenture”) or the               modifications thereby of the trusts created by this Indenture, the Trustee shall be               entitled to receive, and subject to section 13.1, shall be fully protected in acting               and relying upon, an Opinion of Counsel stating that the execution of such               Supplemental Indenture is authorized or permitted by this Indenture, is not               inconsistent herewith, is a valid and binding obligation of the Issuer, enforceable               in accordance with its terms, subject to enforceability being limited by               bankruptcy, insolvency or other laws affecting the enforcement of creditor’s               rights generally and equitable remedies including the remedies of specific               performance and injunction being granted only in the discretion of a court of               competent jurisdiction and, in connection with a Supplemental Indenture executed               pursuant to section 17.1, that the Trustee is authorized to execute and deliver such               Supplemental Indenture without the consent of the Holders and, in connection               with a Supplemental Indenture executed pursuant to section 17.2, that the              requisite consents of the Holders have been validly obtained in accordance with              section 17.2 hereof and that such Supplemental Indenture complies, if necessary,              with section 17.6. The Trustee may, but shall not be obligated to, enter into any              such Supplemental Indenture that adversely affects the Trustee’s own rights,              duties or immunities under this Indenture or otherwise.   17.4        Effect of Supplemental Indentures               Upon the execution of any Supplemental Indenture under this Article 17, this              Indenture shall be modified in accordance therewith, and such Supplemental               Indenture shall form a part of this Indenture for all purposes, unless otherwise so               specified; and every Holder theretofore or thereafter certified and delivered under               this Indenture shall be bound by the Supplemental Indenture.    17.5        Reference in Debentures to Supplemental Indentures                Debentures certified and delivered after the execution of any Supplemental               Indenture pursuant to this Article 17 may, and shall if required by the Issuer, bear              a notation in form approved by the Trustee as to any matter provided for in such       36990-2073 30186571.16    

 

                                     - 99 -                Supplemental Indenture. If the Issuer shall so determine, new Debentures so               modified as to conform, in the opinion of the Trustee and the Board of Directors,               to any such Supplemental Indenture may be prepared and executed by the Issuer               and certified and delivered by the Trustee in exchange for Outstanding               Debentures.    17.6        Prior Approval of Recognized Stock Exchange                Notwithstanding anything to the contrary in this Indenture, no supplement or               amendment to the terms of the Debentures or to this Indenture may be made               without the prior consent of the Recognized Stock Exchange on which the              Common Shares are listed, if such consent is required by the rules and               requirements of such Recognized Stock Exchange.                                     ARTICLE 18                          MISCELLANEOUS PROVISIONS    18.1        Acceptance of Trusts                The Issuer and the Trustee hereby specifically acknowledge and agree that the               Trustee is acting hereunder in its capacity as the Person holding the power of               attorney of the Holders for the purposes of this Indenture and in conformity with               and subject to the terms and conditions of this Indenture. Each Holder, by its              acceptance thereof, accepts and confirms the appointment of the Trustee as the              Person holding the power of attorney of such Holder for the purposes of this              Indenture and in conformity with and subject to the terms and conditions of this              Indenture.   18.2        Protection of Trustee               The Trustee shall not be obligated under any circumstances whatsoever in the              fulfilment of any of the circumstances and obligations hereunder, to expend or              risk its funds or otherwise incur financial liability.   18.3        Judgment Currency               If a judgment or order given or made by any court for the payment of any amount              in respect of any Debenture is expressed in a currency (the “judgment currency”)              other than the currency (the “denomination currency”) in which such Debentures              are denominated or in which such amount is payable, the Issuer will indemnify              the relevant Holder against any deficiency arising or resulting from any variation              in rates of exchange published by The Bank of Canada between the date as of              which the amount in the denomination currency is notionally converted into the               amount in the judgment currency for the purposes of such judgment or order and               the date of actual payment thereof.  This indemnity will constitute a separate and               independent obligation from the other obligations contained in the terms and               conditions of the Debentures, will give rise to a separate and independent cause of               action, will apply irrespective of any indulgence granted from time to time and               will continue in full force and effect notwithstanding any judgment or order for a       36990-2073 30186571.16    

 

                                    - 100 -               liquidated sum or sums in respect of amounts due in respect of the relevant              Debenture or under any such judgment or order.   18.4        Counterparts and Formal Date               This Indenture may be executed in any number of counterparts, each of which so              executed shall be deemed to be an original, but all of which shall together              constitute one and the same instrument and notwithstanding their date of              execution shall be deemed to bear a date as of the date hereof. The exchange of              copies of this Indenture and of signature pages by facsimile, PDF or other              electronic transmission shall constitute effective execution and delivery of this              Indenture as to the parties hereto and may be used in lieu of the original Indenture              for all purposes. Signatures of the parties hereto transmitted by facsimile, PDF or              other electronic transmission shall constitute effective execution and delivery of              this Indenture as to the other parties hereto shall be deemed to be their original              signatures for all purposes. The words “execution,” “signed,” “signature,”              “delivery,” and words of like import in or relating to this Indenture or any              document to be signed in connection with this Indenture shall be deemed to              include electronic signatures, deliveries or the keeping of records in electronic              form, each of which shall be of the same legal effect, validity or enforceability as              a manually executed signature, physical delivery thereof or the use of a paper-             based recordkeeping system, as the case may be, and the parties hereto consent to              conduct the transactions contemplated hereunder by electronic means.   18.5        Waiver of Trial by Jury               The parties hereto hereby waive any right they may have to require a trial by jury              of any proceeding commenced in connection herewith.   18.6        Notice by Fax or E-mail               The Trustee shall be entitled to treat a facsimile, pdf or e-mail communication or              communication by other similar electronic means (including through the CDSX              system) in a form satisfactory to the Trustee (“Electronic Methods”) from a              person purporting to be (and whom such Trustee, acting reasonably, believes in              good faith to be) the authorized representative of the Issuer, as sufficient              instructions and authority of the Issuer for the Trustee to act and shall have no              duty to verify or confirm that person is so authorized. The Trustee shall have no              liability for any losses, liabilities, costs or expenses incurred by it as a result of              such reliance upon or compliance with such instructions or directions. The Issuer              agrees: (i) to assume all risks arising out of the use of such electronic methods to              submit instructions and directions to the Trustee, including without limitation the              risk of the Trustee acting on unauthorized instructions, and the risk of interception              and misuse by third parties; (ii) that it is fully informed of the protections and              risks associated with the various methods of transmitting instructions to the              Trustee and that there may be more secure methods of transmitting instructions              than the method(s) selected by the Issuer; and (iii) that the security procedures (if              any) to be followed in connection with its transmission of instructions provide to     36990-2073 30186571.16   

 

                                    - 101 -               it a commercially reasonable degree of protection in light of its particular needs              and circumstances.                 [The remainder of this page was left intentionally blank]      36990-2073 30186571.16   

 

                                          IN WITNESS WHEREOF the parties hereto have executed this Indenture as of the date first  written above.     BNY TRUST COMPANY OF CANADA, as                                         Trustee                                                                                    By: /s/ Bhawna Dhayal                                          Name: Bhawna Dhayal                                               Title: Authorized Signatory     BLACKBERRY LIMITED                                                                                   By:     /s/ Steve Rai                                          Name: Steve Rai                                               Title:  Chief Financial Officer                                                  BLACKBERRY CORPORATION                                           By:      /s/ Jay Chai                                          Name: Jay Chai                                            Title: President   CYLANCE INC.                                                                                    By:      /s/ Jay Chai                                          Name: Jay Chai                                               Title:  President & Secretary    GOOD TECHNOLOGY SOFTWARE INC.                                                                                   By:     /s/ Jay Chai                                          Name: Jay Chai                                          Title: President                                                                                 Signature Page to Indenture   

 

                                                                                         QNX SOFTWARE SYSTEMS LIMITED                                        By:      /s/ Jay Chai             Name: Jay Chai             Title: Director                      Signature Page to Indenture                

 

                                    Schedule 1.1                             Additional Permitted Liens              (a)   the interests of lessors under operating leases, and interests of licensors                   under license agreements,               (b)   Liens on amounts deposited to secure Issuer’s and its Subsidiaries’                   reimbursement obligations with respect to surety or appeal bonds obtained                    in the ordinary course of business,                (c)   licenses and sublicenses of patents, trademarks, copyrights, and other                   intellectual property rights,              (d)   rights of setoff or bankers’ liens upon deposits of funds in favor of banks                   or other depository institutions or upon securities in favor of securities                   intermediaries, solely to the extent incurred in connection with the                   maintenance of  deposit accounts or securities accounts in the ordinary                   course of business,               (e)   Liens granted in the ordinary course of business on the unearned portion                   of insurance premiums securing the financing of insurance premiums to                   the extent the financing is permitted hereunder,               (f)   Liens in favor of customs and revenue authorities arising as a matter of                   law to secure payment of customs duties in connection with the                   importation of goods,               (g)   Liens solely on (A) any cash earnest money deposits made by the Issuer or                   any of its Subsidiaries in connection with any letter of intent or purchase                    agreement with respect to an acquisition or (B) cash escrow deposits that                    secure any indemnification obligations of the Issuer or any of its                    Subsidiaries in connection with any agreement relating to a disposition,                (h)   Liens securing intercompany loans between the Issuer and a Guarantor or                    between Guarantors, and               (i)   Liens on cash collateral provided to secure the reimbursement obligations                    under any letter of credit to the extent such letter of credit constitutes                    permitted Indebtedness under Section 8.1.     36990-2073 30186571.16   

 

                                      SCHEDULE 2.2                                  FORM OF DEBENTURE   UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS  SECURITY MUST NOT TRADE THE SECURITY BEFORE ●, 2020 [INSERT DATE THAT  IS 4 MONTHS AND A DAY AFTER THE ISSUE DATE].                                         [ LOGO]    _____________________  No. SAMPLE ONLY CUSIP []                                     BlackBerry Limited                   (A corporation incorporated pursuant to the laws of Ontario)                 1.75% Convertible Unsecured Debenture Due November 13, 2023   Date of Issue: ●                                       Maturity Date: November 13, 2023   Registered Holder: <*>   [For the purposes of a Global Debenture only if through CDS:                “UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED               REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY               SERVICES INC. (“CDS”) TO BLACKBERRY LIMITED (THE               “ISSUER”) OR ITS AGENT FOR REGISTRATION OF TRANSFER,               EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN               RESPECT THEREOF IS REGISTERED IN THE NAME OF CDS & CO.,               OR IN SUCH OTHER NAME AS IS REQUESTED BY AN               AUTHORIZED REPRESENTATIVE OF CDS (AND ANY PAYMENT IS               MADE TO CDS & CO. OR TO SUCH OTHER ENTITY AS IS               REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS),               ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE               OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE               THE REGISTERED HOLDER HEREOF, CDS & CO., HAS AN               INTEREST HEREIN. THIS CERTIFICATE IS ISSUED PURSUANT TO               A MASTER LETTER OF REPRESENTATIONS OF THE ISSUER TO               CDS, AS SUCH LETTER MAY BE REPLACED OR AMENDED FROM               TIME TO TIME.”                “THESE SECURITIES HAVE BEEN ISSUED IN A TRANSACTION               EXEMPT FROM REGISTRATION PURSUANT TO REGULATION S               OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED               (THE “U.S. SECURITIES ACT”), AND, ACCORDINGLY, THIS               DEBENTURE AND COMMON SHARES ISSUABLE UPON               CONVERSION OF THIS DEBENTURE HAVE NOT BEEN               REGISTERED UNDER THE U.S. SECURITIES ACT, OR ANY               APPLICABLE STATE SECURITIES LAWS.  NEITHER THIS               DEBENTURE NOR ANY INTEREST OR PARTICIPATION HEREIN               MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,               ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE     36990-2073 30186571.16   

 

                                                           OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS               EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.                THE HOLDER OF THIS DEBENTURE BY ITS ACCEPTANCE               HEREOF AGREES THAT THIS DEBENTURE AND ANY INTEREST               OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD OR               OTHERWISE TRANSFERRED ONLY (A) TO THE ISSUER OR A               SUBSIDIARY OF THE ISSUER, (B) IN A TRANSACTION MEETING               THE REQUIREMENTS OF ANY APPLICABLE EXEMPTION FROM               THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES               ACT OR (C) PURSUANT TO AN EFFECTIVE REGISTRATION               STATEMENT UNDER THE U.S. SECURITIES ACT, AND IN EACH               CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES               LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER               APPLICABLE JURISDICTION.”]   [For the purposes of a Global Debenture only if through DTC:                “UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED               REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A               NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO               BLACKBERRY LIMITED (THE “ISSUER”) OR ITS AGENT FOR               REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND               ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF               CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN               AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS               MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS               REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),               ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE               OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL               INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,               HAS AN INTEREST HEREIN.                TRANSFERS OF THIS CERTIFICATE SHALL BE LIMITED TO               TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, TO               NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH               SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS               CERTIFICATE SHALL BE LIMITED TO TRANSFERS MADE IN               ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE               INDENTURE REFERRED TO ON THE REVERSE HEREOF.”                “THESE SECURITIES HAVE BEEN ISSUED IN A TRANSACTION               EXEMPT FROM REGISTRATION PURSUANT TO REGULATION S               OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED               (THE “U.S. SECURITIES ACT”), AND, ACCORDINGLY, THIS               DEBENTURE AND COMMON SHARES ISSUABLE UPON               CONVERSION OF THIS DEBENTURE HAVE NOT BEEN               REGISTERED UNDER THE U.S. SECURITIES ACT, OR ANY               APPLICABLE STATE SECURITIES LAWS.  NEITHER THIS               DEBENTURE NOR ANY INTEREST OR PARTICIPATION HEREIN               MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,               ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE               OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS               EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.                THE HOLDER OF THIS DEBENTURE BY ITS ACCEPTANCE               HEREOF AGREES THAT THIS DEBENTURE AND ANY INTEREST               OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD OR                                                  36990-2073 30186571.16   

 

                                                      OTHERWISE TRANSFERRED ONLY (A) TO THE ISSUER OR A              SUBSIDIARY OF THE ISSUER, (B) IN A TRANSACTION MEETING              THE REQUIREMENTS OF ANY APPLICABLE EXEMPTION FROM              THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES              ACT OR (C) PURSUANT TO AN EFFECTIVE REGISTRATION              STATEMENT UNDER THE U.S. SECURITIES ACT, AND IN EACH              CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES              LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER              APPLICABLE JURISDICTION.”]   BlackBerry Limited (the “Issuer”), for value received, hereby acknowledges itself indebted  and promises  to pay to the order of the registered holder on November 13, 2023 (the “Maturity  Date”), or on such earlier date as the principal amount hereof may become due in accordance  with the provisions of the Indenture hereinafter mentioned, the principal sum of:                                   [insert amount]   in lawful money of the United States, on presentation and surrender of this Debenture at the  principal office of the Trustee (defined below) in the manner specified in the Indenture (defined  below), in the City of Toronto, Province of Ontario, and to pay interest on the principal amount  hereof at the rate of 1.75% per annum from and including the Interest Commencement Date or  from and including the last Interest Payment Date on which interest shall have been paid or made  available for payment on the Debentures then Outstanding, whichever shall be later, to but  excluding the next Interest Payment Date in equal quarterly instalments in arrears on the first day  of March, June, September and December in each year, starting on December 1, 2020 (each such  date an “Interest Payment Date”), with overdue interest, if any, at the same rate after as well as  before maturity and after as well as before maturity, default and judgment.  If an Event of  Default has occurred and is continuing, the interest will be calculated on the basis of 5.75% per  annum instead of 1.75% per annum for that part of the Interest Period commencing on the date  that the Event of Default occurred up to and including the date on which such Event of Default is  no longer occurring.    As interest on this Debenture becomes due, the Issuer (subject to early repurchase or conversion  pursuant to the terms of the Indenture (as defined below)) shall make an electronic funds transfer  to an account designated by the Trustee for such payment, in each case to enable the Trustee to  forward such payment to the Holders.    This Debenture is one of the 1.75% Convertible Unsecured Debentures due November 13, 2023  (the “Debentures”) in the aggregate principal amount of up to $[●] in lawful money of United  States created and issued under an indenture (the “Indenture”) dated as of [●], 2020  made  between the Issuer, the Guarantors and BNY Trust Company of Canada, as trustee (the  “Trustee”). Reference is hereby made to the Indenture for a description of the rights of the  Holders of the Debentures, the Issuer, the Guarantors and the Trustee and of the terms and  conditions upon which the Debentures are issued and held, all to the same effect as if the  provisions of the Indenture were herein set forth, to all of which provisions the Holder of this  Debenture, by acceptance hereof, agrees. To the extent that the terms and conditions stated in  this Debenture conflict with the terms and conditions of the Indenture, the latter shall  prevail. All capitalized terms used herein have the meaning ascribed thereto in the Indenture  unless otherwise indicated.                                              36990-2073 30186571.16   

 

                                            The Debentures are issuable as fully registered Debentures in denominations of $1,000 and   integral multiples of $1,000. The Debentures of any authorized denomination may be exchanged,   as provided in the Indenture, for Debentures in equal aggregate principal amount.    The Debentures certified and issued under the Indenture rank pari passu with one another, in   accordance with their tenor without discrimination, preference or priority and, subject to   statutory preferred exceptions, shall rank equally with all other present and future   unsubordinated unsecured Indebtedness of the Issuer other than Specified Senior Indebtedness   permitted under section 8.1(b) of the Indenture.  The Debentures and the Guarantees shall be   subordinated, in accordance with the provisions of Article 4, to the Specified Senior   Indebtedness of the Issuer and the Guarantors permitted under section 8.1(b) of the Indenture.   Each $1,000 principal amount of Debentures is convertible commencing the date of issue and  ending on the third Business Day prior to the Maturity Date, into that number of Common Shares  obtained by dividing $1,000 by the conversion price of $6.00 per Common Share (the  “Conversion Price”), subject to adjustment upon the occurrence of certain events specified in  the Indenture.    No fractional Common Shares will be delivered to the Holders upon conversion, but in lieu  thereof, if such a fraction shall become owing, the Issuer will make an equivalent cash payment.  The accrued and unpaid interest on any Debentures so converted shall be paid in cash.   Upon the giving of notice by the Trustee of the occurrence of an Event of Default in accordance  with the Indenture and a declaration by the Trustee that the Debentures are due, the Debentures  will become immediately due and payable, subject to the provisions for subordination.   The Issuer will be required, in the manner and at the repurchase price set out in the Indenture, to  make an offer to repurchase the Debentures then Outstanding by notice to the Holders thereof  and the Trustee.   Any Debenture Payments will be made free and clear of and without withholding or deduction  for or on account of Taxes, unless the Issuer or Guarantor is required to withhold or deduct any  amount for or on account of Taxes by Applicable Law.  If the Issuer or Guarantor is so required  to withhold or deduct any amount for or on account of Taxes from any Debenture Payment made  under or with respect to the Debentures, the Trustee will make such withholding or deduction  and will remit the full amount withheld or deducted to the relevant Governmental Authority as  and when required by Applicable Law and the Issuer or Guarantor, as applicable, will pay to the  Trustee for payment to the relevant Holder Additional Amounts as may be necessary so that the  net amount received by each Holder (including Additional Amounts) after the withholding or  deduction on any Indemnified Taxes will not be less than the amount such Holder would have  received if such Indemnified Taxes had not been withheld or deducted.   The Indenture contains provisions for the holding of meetings of Holders and rendering certain  resolutions passed at such meetings by, or by instruments in writing signed by, the Holders of the  majority in aggregate principal amount of the Debentures Outstanding binding upon all Holders,  subject to the provisions of the Indenture.                                                  36990-2073 30186571.16    

 

                                            This Debenture may only be transferred upon compliance with the conditions precedent in the   Indenture on the register kept at the principal office of the Trustee and at such other place or   places, if any, and/or by such other registrar or registrars, if any, as the Issuer with the approval  of the Trustee may designate, and may be exchanged at any such place, by the Holder hereof or  his executors or administrators or other legal representatives or his or their attorney duly  appointed by an instrument in writing in form and execution satisfactory to the Trustee, and upon  compliance with such reasonable requirements as the Trustee and/or registrar may prescribe, and  such transfer shall be duly noted thereon by the Trustee or other registrar.   This Debenture shall not become obligatory for any purpose until it shall have been certified by  the Trustee for the time being under the Indenture.   This Debenture shall be governed by and construed in accordance with the laws of the Province  of Ontario and the federal laws of Canada applicable thereto.   This Debenture will be entitled to the benefits of the Guarantees made for the benefit or the  Holders. Reference is hereby made to the Indenture for a statement of the respective rights,  limitations of rights, duties and obligations thereunder of the Guarantors, the Trustee and the  Holders.   The Holder of this Debenture, by receiving and holding same, hereby accepts and agrees to be  bound by the terms, and to be entitled to the benefits of this Debenture and of the Indenture and  confirms the appointment of the Trustee and of the Indenture, the whole in accordance with and  subject to the respective provisions thereof.                                                  36990-2073 30186571.16    

 

                                             IN WITNESS WHEREOF ___________has caused this Debenture to be signed by its  __________and by its _____________     DATED as of the ______ day of September, 2020     BlackBerry Limited                                                                                  Per:                                                                                                                              Per:                                                                                                                                      36990-2073 30186571.16   

 

                               TRUSTEE’S CERTIFICATE    This Debenture is one of the 1.75% Convertible Unsecured Debentures due November 13, 2023  referred to in the within-mentioned Indenture.     BNY Trust Company of Canada, as Trustee                                                                                    Per:                                            Authorized Signing Officer                                     Date of Certification:                       36990-2073 30186571.16    

 

                                    SCHEDULE “A”                      [For the purposes of a Global Debenture only:]                        TO THE GLOBAL DEBENTURE No. <*>               1.75% Convertible Unsecured Debentures due November 13, 2023                                      CUSIP: []                                      ISIN: []   Principal Amount:   Authorization:   BNY Trust Company of Canada  1 York Street, 6th Floor   Toronto, Ontario M5J 0B6      Attention:  Corporate Trust Administration    Facsimile: (416) 360-1711   Email: csmtoronto@bnymellon.com   Telephone: (416) 933-8500       Per:          Authorized Signing Officer                                               New                  Amount       Amount                    Maturity      Date                                  Principal                Authorization                 of Increase  of Decrease                  Date                                            Amount                               36990-2073 30186571.16    

 

                                FORM OF ASSIGNMENT    FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto [], whose   address and social insurance number, if applicable, are set forth below, this Debenture (or   $_______________ principal amount hereof*) of BlackBerry Limited (the “Issuer”) standing in  the name(s) of the undersigned in the register maintained by the registrar appointed by the Issuer  with respect to such Debenture and does hereby irrevocably authorize and direct the Trustee to  transfer such Debenture in such register, with full power of substitution in the premises.   Dated:                                                                            Address of Transferee:                                                                                                                                                                                          (Street Address, City, Province and Postal Code)   Social Insurance Number of Transferee, if applicable:      *If less than the full principal amount of the within Debenture is to be transferred, indicate in the   space provided above the principal amount (which must be $1,000 or an integral multiple   thereof) to be transferred.    The signature(s) to this assignment must correspond with the name(s) as written upon the face of   this Debenture in every particular without alteration or any change whatsoever. The signature(s)   on this form must be guaranteed by one of the following methods:    Canada and the USA: A Medallion Signature Guarantee obtained from a member of an   acceptable Medallion Signature Guarantee Program (STAMP, SEMP, MSP). Many commercial  banks, savings banks, credit unions, and all broker dealers participate in a Medallion Signature   Guarantee Program. The Guarantor must affix a stamp bearing the actual words “Medallion  Guaranteed”.   Canada: A Signature Guarantee obtained from a major Canadian Schedule I chartered bank. The   Guarantor must affix a stamp bearing the actual words “Signature Guaranteed”. Signature  Guarantees are not accepted from Treasury Branches, Credit Unions or Caisses Populaires unless   they are members of a Medallion Signature Guarantee Program.    Outside North America: For holders located outside North America, present the certificate(s)   and/or document(s) that require a guarantee to a local financial institution that has a   corresponding Canadian or American affiliate which is a member of an acceptable Medallion   Signature Guarantee Program. The corresponding affiliate will arrange for the signature to be   over-guaranteed.    The registered Holder of this Debenture is responsible for the payment of any documentary,   stamp or other transfer taxes that may be payable in respect of the transfer of this Debenture.       36990-2073 30186571.16    

 

   Signature of Guarantor:                  Authorized Officer     Signature of transferring registered Holder           Name of Institution         36990-2073 30186571.16   

 

                                   SCHEDULE 2.2(c)                                         []                                      CUSIP []                   1.75% CONVERTIBLE UNSECURED DEBENTURES                                DUE November 13, 2023                             PRINCIPAL AMOUNT GRID    The following grid reflects the principal amount outstanding on the attached 1.75% Convertible   Unsecured Debentures due November 13, 2023 (the “Debentures”) and shall be adjusted at such  time as the Debentures are converted or repurchased in accordance with the terms thereof. In no  event shall the outstanding principal amount hereunder exceed $●.                                                                   AUTHORIZED                                              REMAINING         DATE AMOUNT REDUCED                                     SIGNATORY BY                                           PRINCIPAL AMOUNT                                                                    TRUSTEE   <*>                                    <*>                  36990-2073 30186571.16    

 

                                    SCHEDULE 2.15(a)                       FORM OF CERTIFICATE OF TRANSFER       BlackBerry Limited   2200 University Avenue East   Waterloo, ON N2K 0A7    Attention:  Randall Cook     Facsimile No.: (519) 883-4946      BNY Trust Company of Canada   1 York Street, 6th Floor   Toronto, Ontario M5J 0B6      Attention:  Corporate Trust Administration    Facsimile: (416) 360-1711   Email: csmtoronto@bnymellon.com   Telephone: (416) 933-8500            Re:  Transfer of Debentures          Reference is hereby made to the Indenture, dated as of [●], 2020 (the “Indenture”),   among BlackBerry Limited, as issuer (the “Company”), the guarantors party thereto and BNY   Trust Company of Canada, as trustee. Capitalized terms used but not defined herein shall have  the meanings given to them in the Indenture.        ____________________, (the “Transferor”) owns and proposes to transfer the   Debentures or interests in such Debentures specified in Annex A hereto, in the principal amount   of $____________ (the “Transfer”), to ____________ (the “Transferee”), as further specified in   Annex A hereto. In connection with the Transfer, the Transferor hereby certifies that:                              [CHECK ALL THAT APPLY]          1.   Check if Transferee will take delivery of a beneficial interest in a Restricted   Global Debenture or a Restricted Definitive Debenture pursuant to Rule 144A. The   Transfer is being effected pursuant to and in accordance with Rule 144A under the Securities Act   of 1933, as amended (the “Securities Act”), and, accordingly, the Transferor hereby further   certifies that the beneficial interest or Definitive Debenture is being transferred to a Person that  the Transferor reasonably believes is purchasing the beneficial interest or physical Debenture for  its own account, or for one or more accounts with respect to which such Person exercises sole  investment discretion, and such Person and each such account is a “qualified institutional buyer”  within the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A, and  such Transfer is in compliance with any applicable blue sky securities laws of any state of the  United States. Upon consummation of the proposed Transfer in accordance with the terms of the  Indenture, the transferred beneficial interest or physical Debenture will be subject to the   restrictions on transfer enumerated in the U.S. Legend.      36990-2073 30186571.16    

 

                                      - 2 -          2.   Check and complete if Transferee will take delivery of a beneficial interest in   an Unrestricted Global Debenture or an Unrestricted Definitive Debenture.            (a)        Check if Transfer is pursuant to Rule 144. (i) The Transfer is         being effected pursuant to and in accordance with Rule 144 under the Securities         Act and in compliance with the transfer restrictions contained in the Indenture and         any applicable blue sky securities laws of any state of the United States and (ii)         the restrictions on transfer contained in the Indenture and the U.S. Legend are not        required in order to maintain compliance with the Securities Act.          (b)        Check if Transfer is Pursuant to Other Exemption. (i) The        Transfer is being effected pursuant to and in compliance with an exemption from        the registration requirements of the Securities Act other than Rule 144A and Rule        144, and in compliance with the transfer restrictions contained in the Indenture        and any applicable blue sky securities laws of any State of the United States and        (ii) the restrictions on transfer contained in the Indenture and the U.S. Legend are        not required in order to maintain compliance with the Securities Act.    This certificate and the statements contained herein are made for your benefit and the benefit of  the Company.                                                                                                                              [Insert Name of Transferor]                                             By:                                            Name:                                            Title:                Dated:                                                    36990-2073 30186571.16    

 

                                      - 3 -                      ANNEX A TO CERTIFICATE OF TRANSFER                                                   1.    The Transferor owns and proposes to transfer the following:   [CHECK ONE OF (a) OR (b) OR (c)]                  (a)   a beneficial interest in the:                     (i)   Restricted Global Debenture (CUSIP __________)                     (ii)   Unrestricted Global Debenture (CUSIP __________)                  (b)   a Restricted Definitive Debenture                  (c)   an Unrestricted Definitive Debenture         2.     After the Transfer the Transferee will hold:   [CHECK ONE OF (a) OR (b) OR (c)]                  (a)   a beneficial interest in the:                     (i)   Restricted Global Debenture (CUSIP __________)                     (ii)   Unrestricted Global Debenture (CUSIP __________)                  (b)   a Restricted Definitive Debenture                  (c)   an Unrestricted Definitive Debenture                  in accordance with the terms of the Indenture.                                                     36990-2073 30186571.16    

 

                                   SCHEDULE 2.15(b)                      FORM OF CERTIFICATE OF EXCHANGE       BlackBerry Limited   2200 University Avenue East   Waterloo, ON N2K 0A7    Attention: Randall Cook    Facsimile No.: (519) 883-4946      BNY Trust Company of Canada   1 York Street, 6th Floor   Toronto, Ontario M5J 0B6      Attention:  Corporate Trust Administration    Facsimile: (416) 360-1711   Email: csmtoronto@bnymellon.com   Telephone: (416) 933-8500            Re:  Exchange of Debentures                                 (CUSIP ____________)          Reference is hereby made to the Indenture, dated as of [●], 2020 (the “Indenture”),   among BlackBerry Limited, as issuer (the “Company”), the guarantors party thereto and BNY   Trust Company of Canada, as trustee. Capitalized terms used but not defined herein shall have   the meanings given to them in the Indenture.          _____________________, (the “Owner”) owns and proposes to exchange the Debentures   or interests in such Debentures specified herein, in the principal amount of $__________  (the   “Exchange”). In connection with the Exchange, the Owner hereby certifies that:          1.    Exchange of Restricted Definitive Debentures or Beneficial Interests in a   Restricted Global Debenture for Unrestricted Definitive Debentures or Beneficial Interests   in an Unrestricted Global Debenture          (a)  Check if Exchange is from a beneficial interest in a Restricted Global   Debenture to a beneficial interest in an Unrestricted Global Debenture. In connection with   the Exchange of the Owner’s beneficial interest in a Restricted Global Debenture for a beneficial   interest in an Unrestricted Global Debenture in an equal principal amount, the Owner hereby   certifies (i) the beneficial interest is being acquired for the Owner’s own account without   transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions  applicable to the Global Debentures and pursuant to and in accordance with the Securities Act of   1933, as amended (the “Securities Act”), (iii) the restrictions on transfer contained in the   Indenture and the U.S. Legend are not required in order to maintain compliance with the   Securities Act and (iv) the beneficial interest in an Unrestricted Global Debenture is being       36990-2073 30186571.16    

 

                                      - 2 -      acquired in compliance with any applicable blue sky securities laws of any state of the United   States.           (b)  Check if Exchange is from Restricted Definitive Debenture to Unrestricted   Definitive Debenture. In connection with the Owner’s Exchange of a Restricted Definitive  Debenture for an Unrestricted Definitive Debenture, the Owner hereby certifies (i) the  Unrestricted Definitive Debenture is being acquired for the Owner’s own account without  transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions  applicable to Restricted Definitive Debentures and pursuant to and in accordance with the  Securities Act, (iii) the restrictions on transfer contained in the Indenture and the U.S. Legend are  not required in order to maintain compliance with the Securities Act and (iv) the Unrestricted  Definitive Debenture is being acquired in compliance with any applicable blue sky securities  laws of any state of the United States.                                                  36990-2073 30186571.16    

 

                                     - 3 -          This certificate and the statements contained herein are made for your benefit and the  benefit of the Company.                                                                                  [Insert Name of Transferor]                                          By:                                           Name:                                           Title:                                           Dated:                                                      36990-2073 30186571.16   

 

                                      - 4 -                                    SCHEDULE 5.1(d)                           FORM OF CONVERSION NOTICE    TO:   BNY Trust Company of Canada         1 York Street, 6th Floor         Toronto, Ontario M5J 0B6                  Attention:  Corporate Trust Administration          Facsimile: (416) 360-1711         Email: csmtoronto@bnymellon.com         Telephone: (416) 933-8500            AND TO:  BlackBerry Limited            2200 University Avenue East            Waterloo, Ontario N2K 0A7                        Attention: Chief Legal Officer            Facsimile No.: (519) 883-4946    Note: All capitalized terms used herein have the meaning ascribed thereto in the Indenture   mentioned below, unless otherwise indicated.    Notice is hereby given pursuant to section 5.1 of the Indenture dated as of [●], 2020 (the  “Indenture”) made between the Issuer, the Guarantors and BNY Trust Company of Canada, as   trustee (the “Trustee”) that the undersigned registered holder of 1.75% Convertible Unsecured   Debentures due [●], [2023] bearing Certificate No. <*> irrevocably elects to convert such   Debentures to Common Shares on the date of conversion specified below, in accordance with the   terms of the Indenture referred to in such Debenture and tenders herewith the Debenture, and   directs that the Common Shares of the Issuer issuable and deliverable upon such conversion be   issued and delivered to the Person indicated below. (If Common Shares are to be issued in the   name of a Person other than the Holder, all requisite transfer taxes must be tendered by the   undersigned.)        Dated:                                                          (Signature of Registered Holder)                                                      36990-2073 30186571.16    

 

                                     - 5 -    Date of conversion: ____________________(which date shall fall within a Permitted  Conversion Period).   *     If less than the full principal amount of the Debenture, indicate in the space provided  below the principal amount (which must be $1,000 or integral multiples thereof) to be converted.   Principal amount to be converted $   (must be $1,000 or integral multiplies thereof)   (Print name in which Common Shares are to be issued, delivered and registered)   Name                                                                                         (Address, City, Province and Postal Code)   Name of guarantor:          Authorized signature:         Note: If Common Shares are to be issued in the name of a Person other than the Holder, the  signature must be guaranteed by an authorized officer of a Canadian chartered bank or of a major  Canadian trust company or by a medallion signature guarantee from a member of a recognized  medallion signature guarantee program.                                                  36990-2073 30186571.16   

 

                                   SCHEDULE 9.6(b)                    FORM OF BENEFICIAL OWNER DECLARATION    , 20    BlackBerry Limited   2200 University Avenue East   Waterloo, Ontario N2K 0A7    BNY Trust Company of Canada   1 York Street, 6th Floor   Toronto, Ontario M5J 0B6      Attention: Corporate Trust Administration      Facsimile: (416) 360-1711   Email: csmtoronto@bnymellon.com   Telephone: (416) 933-8500       Dear Sirs:    Please be advised that effective , 20, the undersigned became a Beneficial Owner of certain   Series  Bonds issued by BlackBerry Limited (the “Issuer”) pursuant to a trust indenture dated   as of September 1, 2020, between the Issuer and BNY Trust Company of Canada, as further   supplemented, modified, amended, restated or replaced from time to time (collectively, the   “Trust Indenture”).   All capitalized terms used but not defined in this agreement will have the meanings attributed to   such terms in the Trust Indenture.    Confirmation of Beneficial Ownership    The undersigned hereby certifies and confirms that it is the Beneficial Owner of $ principal   amount of 1.75% Convertible Unsecured Debentures due November 13, 2023 (the “Debentures”  as at the date hereof. [NTD: Confirmations provided by individuals must be accompanied by  an affidavit as to the amount of Debentures beneficially owned by such individual, which  affidavit must be sworn before a notary public.]  [In accordance with Section 9.6(b) of the Trust Indenture, the undersigned hereby requests  the following information and agrees that it will (i) maintain the confidentiality of all  reports, notices and information delivered to it by the Issuer in accordance with the terms  of the Trust Indenture, and (ii) give written notice to the Issuer when it ceases to be a  Beneficial Owner.] [NTD: Evidence of beneficial ownership may be required for multiple  reasons under the Trust Indenture, including to establish beneficial ownership in  connection with a Beneficial Holder’s request, resolutions, information requests, inspection  requests, etc. This declaration would be accompanied with the relevant document  contemplated by the Trust Indenture.]        36990-2073 30186571.16    

 

                                            Schedule B      {Name of Beneficial Owner}                                                                                                                                          ADDRESS OF BENEFICIAL OWNER           AND CONTACT DETAILS FOR  INFORMATION RECIPIENT:   Name:    Address:            Facsimile Number:    Attention:    Telephone Number:   Email Address:                                                  36990-2073 30186571.16   

 

                                  SCHEDULE 11.1                              FORM OF GUARANTEE   TO:   BNY Trust Company of Canada as trustee under the Indenture referred to below (the        “Trustee”) providing for the issuance of Debentures (as defined therein) of BlackBerry        Limited         THIS GUARANTEE (this “Guarantee”) is made this [] day of [●], 20[]         WHEREAS the undersigned (hereinafter referred to as the “Guarantor”) has agreed to  provide the Trustee with a guarantee of the Obligations (as hereinafter defined) of BlackBerry  Limited (the “Obligor”) pursuant to an indenture made as of [●], 2020 among, inter alia, the  Obligor, the undersigned and the other guarantors party thereto and the Trustee, as the same may  be supplemented, amended, restated or replaced from time to time (the “Indenture”);         AND WHEREAS the Guarantor has agreed that if this guarantee is not enforceable, the  Guarantor will indemnify the Trustee;         NOW THEREFORE THIS GUARANTEE WITNESSES that in consideration of the  premises and the covenants and agreements herein contained, the sum of $1.00 now paid by the  Trustee to the Guarantor and other good and valuable consideration (the receipt and sufficiency  of which are hereby acknowledged), the Guarantor covenants with the Trustee as follows:                                    ARTICLE 1                                  GUARANTEE   1.1   Guarantee         The Guarantor hereby unconditionally and irrevocably guarantees in favour of the  Trustee for and on behalf of each of the holders of Debentures (“Holders” or “Holders”) the  due and punctual payment of the principal of and premium (if any) and interest on the  Debentures and all other amounts due or owing to the Holders, and the due and punctual  performance of all other obligations of the Issuer to the Holders or the Trustee, in each case in  accordance with the terms of the Indenture and the Debentures (collectively the “Obligations”)  as and when the same shall from time to time become due and payable in accordance with the  terms of the Indenture and Debentures. The Guarantor also agrees to pay all costs and expenses  incurred by the Trustee in enforcing its rights hereunder, including, without limitation, the  reasonable fees and disbursements of third-party counsel to the Trustee. The Guarantor  acknowledges that it will receive direct and indirect benefits from the arrangements  contemplated by the Indenture and the transactions contemplated thereby.         [INSERT APPROPRIATE LIMITATION CLAUSE FOR NON-CANADIAN  GUARANTORS.]   1.2   Indemnity         In addition to the guarantee provided in section 1.1 hereof, if any or all of the Obligations  are not duly paid or performed by the Obligor and are not recoverable under section 1.1 for any  reason whatsoever, the Guarantor will, as a separate and distinct obligation, indemnify and save    36990-2073 30186571.16   

 

                                          harmless the Trustee and each Holder from and against all losses resulting from the failure of the  Obligor to pay or perform such Obligations.   1.3   Guarantor Liable as Principal         The Guarantor shall be liable to the Trustee and the Holders as principal debtor and not as  surety only, and will not plead or assert to the contrary in any action taken by the Trustee or the  Holders in enforcing this Guarantee.   1.4   Obligations Absolute         The liability of the Guarantor hereunder will be absolute and unconditional and will not  be discharged, diminished or in any way affected by:         (a)   any lack of validity or enforceability of the Obligations or any agreement between              the Obligor and the Trustee and each Holder or of the guarantee of any other              guarantor of the obligations;         (b)   any impossibility, impracticability, frustration of purpose, illegality, force majeure              or act of government;         (c)  the bankruptcy, winding-up, liquidation, dissolution or insolvency of the Obligor              or any other guarantor or Person or the amalgamation of or any change in the              status, function, control or ownership of, the Obligor, the Guarantor, the Trustee              or any other Person;         (d)   the release or amendment of any other guarantee of the Obligations;         (e)  any lack or limitation of power, incapacity or disability on the part of the Obligor              or of the directors, partners or agents thereof or any other irregularity, defect or              informality on the part of the Obligor in its obligations to the Trustee and each              Holder; or         (f)  any other law, regulation or other circumstance that might otherwise constitute a              defence available to, or a discharge of, the Guarantor, the Obligor or any other              Person in respect of any or all of the Obligations or the liability of the Guarantor.                                    ARTICLE 2                    DEALINGS WITH OBLIGOR AND OTHERS   2.1   No Release         The liability of the Guarantor hereunder will not be released, discharged, limited or in  any way affected by anything done, suffered or permitted by the Trustee or any Holder in  connection with any duties or liabilities of the Obligor to the Trustee or any Holder or any  guarantee therefor including any loss of or in respect of any security received by the Trustee  from the Obligor or others. Without limiting the generality of the foregoing, and without  releasing, discharging, limiting or otherwise affecting in whole or in part the Guarantor’s liability                                              36990-2073 30186571.16   

 

                                            hereunder, without obtaining the consent of or giving notice to the Guarantor, the Trustee may,   subject to the terms of the Indenture:                (c)   agree to any change in the time, manner or place of payment under, or in                     any other term of, any agreement between the Obligor and the Trustee or                     any Holder; or                (d)   grant time, renewals, extensions, indulgences, releases and discharges to                    the Obligor or any other guarantor;               (e)   take or abstain from taking or enforcing securities or collateral from the                    Obligor or from perfecting securities or collateral of the Obligor or any                    other Person;               (f)   accept compromises from the Obligor or any other guarantor;               (g)   apply all money at any time received from the Obligor or from securities                    or collateral received from the Obligor or any other guarantor in                    accordance with the Indenture; and               (h)   otherwise deal with the Obligor or any other guarantor and all other                    Persons and securities as the Trustee may see fit.   2.2   Release of Guarantor         Notwithstanding the foregoing, the Trustee shall release the Guarantor from its  obligations pursuant to this guarantee if at any time the Issuer delivers to the Trustee an Officer’s  Certificate and other documentary evidence satisfactory to the Trustee indicating that such  Guarantor is no longer a Subsidiary of the Issuer.         In no case will the liability of the Guarantor hereunder be discharged, diminished or in  any way affected as a result of any default under, or breach by the Trustee or its agents of, (a) the  Indenture or any other agreement, (b) any applicable law, or (c) any other obligation or duty  binding the Trustee or its agents.         The Guarantor waives all rights it may have as surety, whether at law, in equity or  otherwise, that are inconsistent with the provisions of this Guarantee.   2.3   No Exhaustion of Remedies         The Trustee will not be bound or obligated to exhaust its recourse against the Obligor or  other Persons or any securities or collateral it may hold or take any other action before being  entitled to demand payment from the Guarantor hereunder.   2.4   Prima Facie Evidence         Any account settled or stated in writing by or between the Trustee and the Obligor will,  in the absence of manifest error, be prima facie evidence that the balance or amount thereof  appearing due to the Trustee is so due.                                                 36990-2073 30186571.16    

 

                                            2.5   No Set-off          In any claim by the Trustee against the Guarantor, the Guarantor may not assert any set-  off or counterclaim that either the Guarantor or the Obligor may have against the Trustee.    2.6   Continuing Guarantee          The obligations of the Guarantor hereunder will constitute and be continuing obligations   and will apply to and secure any ultimate balance due or remaining due to the Trustee and the   Holders in respect of the Obligations and will not be considered as wholly or partially satisfied   by the payment or liquidation at any time of any sum of money for the time being due or   remaining unpaid to the Trustee and/or the Holders. This Guarantee will continue to be effective   even if at any time any payment of any of the Obligations is rendered unenforceable or is  rescinded or must otherwise be returned by the Trustee upon the occurrence of any action or  event including the insolvency, bankruptcy or reorganization of the Obligor or otherwise, all as  though such payment had not been made.   2.7   Reinstatement         The guarantee and indemnity herein shall be reinstated if at any time any payment of any  Obligations is rescinded or must otherwise be returned by the Trustee or any Holder upon any   Proceedings of or affecting the Obligor or any other Person or for any other reason whatsoever,   all as though such payment had not been made.  The Trustee may concede or compromise any   claim that such payment ought to be rescinded or otherwise returned, without discharging,   diminishing or in any way affecting the liability of the Guarantor hereunder or the effect of this   section 2.7.                                     ARTICLE 3                                     DEMAND    3.1   Demand          If any Obligation is not paid for any reason whatsoever, including upon demand by the   Trustee, the Trustee may demand forthwith from the Guarantor the total amount of such   Obligation. The Guarantor will make payment to or performance in favour of the Trustee of the   total amount of all Obligations hereunder forthwith after demand therefor is made to the   Guarantor. The Guarantor will make payment to the Trustee forthwith upon demand of all   reasonable costs and expenses incurred by the Trustee in enforcing this Guarantee.    3.2   Interest          All amounts payable by the Guarantor under this Guarantee shall bear interest payable by   the Guarantor from the date of demand for payment both before and after default and judgment   at the rate applicable to the Debentures.                                                  36990-2073 30186571.16    

 

                                                                             ARTICLE 4                                  SUBROGATION    4.1   Subrogation          The Guarantor will not be entitled to subrogation until the Obligations are performed and   paid in full, and no such payment is subject to rescission or other like return. Thereafter, the   Trustee will, at the Guarantor’s request and expense, execute and deliver to the Guarantor   appropriate documents, without recourse and without representation and warranty, necessary to  evidence the transfer by subrogation to the Guarantor of an interest in the Obligations and any  security held therefor resulting from such performance or payment by the Guarantor.                                     ARTICLE 5                                 EQUAL BENEFIT   5.1   Equal Benefit         This Guarantee is entered into with the Trustee for the benefit of, and the Trustee declares   that it holds the same for the equal and rateable benefit of, all Holders. No Holder shall have any   right to institute any suit, action or proceeding against the Guarantor hereunder other than in the   circumstances described in section 10.8 of the Indenture. Subject to the preceding sentence, all   powers and trusts hereunder shall be exercised and all the proceedings at law or in equity shall be   instituted, held and maintained by the Trustee for the equal benefit of all Holders.                                     ARTICLE 6                                     GENERAL    6.1   Binding Effect of the Guarantee          This Guarantee will be binding upon the successors of the Guarantor and will ensure to   the benefit of the Trustee and Holders and their respective successors and assigns.    6.2   Entire Agreement          This Guarantee together with the applicable provisions of the Indenture constitutes the   entire agreement between the Guarantor and the Trustee with respect to the subject matter hereof   and cancels and supersedes any prior understandings and agreements between such parties with   respect thereto. There are no representations, warranties, terms, conditions, undertakings or   collateral agreements, express, implied or statutory, between the parties except as expressly set   forth herein or in the Indenture. The Trustee will not be bound by any representations or   promises made by the Obligor to the Guarantor and possession of this Guarantee by the Trustee   will be conclusive evidence against the Guarantor that the Guarantee was not delivered in escrow   or pursuant to any agreement that it should not be effective until any condition precedent or   subsequent has been complied with.    6.3   Amendments and Waivers          No amendment to this Guarantee will be valid or binding unless set forth in writing and   duly executed by the Guarantor and the Trustee. No waiver of any breach of any provision of this                                                 36990-2073 30186571.16    

 

                                            Guarantee will be effective or binding unless made in writing and signed by the party purporting   to give the same and, unless otherwise provided in the written waiver, will be limited to the   specific breach waived.    6.4   Severability          If any provision of this Guarantee is determined to be invalid or unenforceable in whole   or in part, such invalidity or unenforceability will attach only to such provision or part thereof,  and the remaining part of such provision and all other provisions hereof will continue in full  force and effect.   6.5   Waiver of Notice         The Guarantor expressly waives any right to receive notice of the existence or creation of  all or any of the Obligations and presentment, demand, notice of dishonour, protest, notice of any  of the events or circumstances described herein and all other notices whatsoever in respect of the  Obligations except to the extent, if at all, that the Personal Property Security Act (Ontario) or  other applicable law requires notice to be given to the Guarantor in connection with any  disposition of collateral by or on behalf of the Trustee.     6.6   Notices         Any notice to be given in connection with this Guarantee shall be provided in writing to  the party for whom it is intended as follows:          (a)   To the Guarantor:                 BlackBerry Limited              2200 University Avenue East              Waterloo, ON N2K 0A7               Attention:   Randall Cook                Facsimile No.: (519) 883-4946         (b)   To the Trustee:               BNY Trust Company of Canada              1 York Street, 6th Floor              Toronto, Ontario M5J 0B6                            Attention:   Corporate Trust Administration                            Facsimile: (416) 360-1711              Email: csmtoronto@bnymellon.com              Telephone: (416) 933-8500                or such other mailing or facsimile address as may be designated by notice given   by any party to the other. Unless the law deems a particular notice to be received earlier, a notice                                                 36990-2073 30186571.16    

 

                                            shall not be deemed received until actual receipt by the other party of an original of such notice   or facsimile thereof if sent by facsimile transmission.    6.7   Governing Law          This Guarantee will be governed by and construed in accordance with the laws of the   Province of Ontario and the laws of Canada applicable therein. The parties hereto irrevocably  submit to the exclusive jurisdiction of the courts of competent jurisdiction in the Province of  Ontario in respect of any action or proceeding relating in any way to this Guarantee.   6.8   Headings         The division of this Guarantee into Articles and sections and the insertion of headings are  for convenience of reference only and will not affect the construction of interpretation of this  Guarantee. The terms “hereof”, “hereunder” and similar expressions refer to this Guarantee and  not to any particular Article, section or other portion hereof and include any agreement  supplemental hereto. Unless something in the subject matter or context is inconsistent therewith,  references herein to Articles and sections are to Articles and sections of this Guarantee.   6.9   Extended Meanings         In this Guarantee, words importing the singular number only include the plural and vice  versa, words importing any gender include all genders and words importing Persons include  individuals, partnerships, associations, trusts, unincorporated organizations and corporations.   6.10  Definitions         Terms capitalized herein but not otherwise defined shall have the meaning attributed  thereto in the Indenture.         IN WITNESS WHEREOF the Guarantor has signed this Guarantee.                                                  36990-2073 30186571.16    

 

                                                                                                                                                                    ______________________________________                                         GUARANTOR                                                                                       By:                                          Name:                                           Title:                                          By:                                           Name:                                           Title:                                                        36990-2073 30186571.16   

 

                                    SCHEDULE 11.3                        OPINIONS REGARDING GUARANTORS    1.    Existence of the Guarantor.    2.   Corporate power and authority of the Guarantor to enter into the Guarantee and carry out         its obligations.    3.    No authorization, approvals, orders, etc. required for the Guarantor to execute and deliver        the Guarantee or perform its obligations other than as have been obtained.   4.     Due execution, delivery and enforceability of the Guarantee.   5.     The execution and delivery of the Guarantee and the performance of any of the terms        hereof do not violate, contravene or breach any Applicable Law of Ontario or if the        Guarantee is governed by the laws of a jurisdiction other than Ontario, the Applicable        law of such jurisdiction (the “Applicable Jurisdiction”).   6.     For non-Canadian Guarantors, application of Ontario law in accordance with the choice        of law in the Indenture by a court of competent jurisdiction in which the principal office        of such Guarantor is located.     7.     For non-Canadian Guarantors, enforcement by a court of competent jurisdiction in         Applicable Jurisdiction of a final and conclusive in personam judgment of an Ontario         court without a re-examination of the merits of the issues determined by the proceedings        in the Ontario court.                36990-2073 30186571.16

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