Exhibit 4.7
AMENDED AND RESTATED
SHAREHOLDER RIGHTS PLAN AGREEMENT
(amending and restating the Shareholder Rights Plan Agreement
dated March 2, 1998)
Dated as of May 9, 2001
BETWEEN
AGRIUM INC.
and
CIBC MELLON TRUST COMPANY
as Rights Agent
TABLE OF CONTENTS
PAGE
ARTICLE 1
CERTAIN DEFINITIONS
1.1 Certain Definitions.................................................. 2
1.2 Currency ............................................................ 14
1.3 Acting Jointly or in Concert......................................... 14
1.4 Control.............................................................. 14
1.5 References to this Agreement......................................... 14
ARTICLE 2
THE RIGHTS
2.1 Legend on Common Share Certificates.................................. 14
2.2 Initial Exercise Price; Exercise of Rights; Detachment of Rights..... 15
2.3 Adjustments to Exercise Price; Number of Rights...................... 17
2.4 Date on Which Exercise is Effective.................................. 21
2.5 Execution, Authentication, Delivery and Dating of
Rights Certificates.................................................. 21
2.6 Registration, Registration of Transfer and Exchange.................. 21
2.7 Mutilated, Destroyed, Lost and Stolen Rights Certificates............ 22
2.8 Persons Deemed Owners................................................ 22
2.9 Delivery and Cancellation of Certificates............................ 23
2.10 Agreement of Rights Holders.......................................... 23
ARTICLE 3
ADJUSTMENTS TO THE RIGHTS IN THE EVENT OF CERTAIN TRANSACTIONS
3.1 Flip-in Event........................................................ 24
ARTICLE 4
THE RIGHTS AGENT
4.1 General ............................................................ 25
4.2 Merger, Amalgamation or Consolidation or Change of Name of
Rights Agent......................................................... 26
4.3 Duties of Rights Agent............................................... 26
4.4 Change of Rights Agent............................................... 28
ARTICLE 5
MISCELLANEOUS
5.1 Redemption and Termination........................................... 29
5.2 Expiration........................................................... 31
5.3 Issuance of New Rights Certificates.................................. 31
5.4 Supplements and Amendments........................................... 31
5.5 Fractional Rights and Fractional Shares.............................. 33
5.6 Rights of Action..................................................... 33
5.7 Holder of Rights Not Deemed a Shareholder............................ 33
5.8 Notice of Proposed Actions........................................... 33
5.9 Notices ............................................................ 34
5.10 Costs of Enforcement................................................. 35
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TABLE OF CONTENTS
(CONTINUED)
PAGE
5.11 Successors........................................................... 35
5.12 Benefits of this Agreement........................................... 35
5.13 Descriptive Headings................................................. 35
5.14 Governing Law........................................................ 35
5.15 Language............................................................. 35
5.16 Counterparts......................................................... 36
5.17 Severability......................................................... 36
5.18 Effective Date....................................................... 36
5.19 Shareholder Review................................................... 36
5.20 Regulatory Approvals................................................. 36
5.21 Declaration as to Non-Canadian and Non-U.S. Holders.................. 37
5.22 Determinations and Actions by the Board of Directors................. 37
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AMENDED AND RESTATED SHAREHOLDER RIGHTS PLAN AGREEMENT
THIS AMENDED AND RESTATED SHAREHOLDER RIGHTS PLAN AGREEMENT made as of
the 9th day of May, 2001 (amending and restating the Shareholder Rights Plan
Agreement of the Corporation dated March 2, 1998)
BETWEEN:
AGRIUM INC., a body corporate organized
under the laws of Canada (hereinafter
referred to as the "CORPORATION")
OF THE FIRST PART
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CIBC MELLON TRUST COMPANY, a trust
company incorporated under the laws of
Canada (hereinafter referred to as the
"RIGHTS AGENT")
OF THE SECOND PART
WHEREAS the Corporation and The R-M Trust Company originally entered
into an agreement dated March 1, 1995, as amended and restated on April 28,
1995, respecting a shareholder rights plan that would be effective at the latest
until May 10, 1998 (the "ORIGINAL PLAN");
AND WHEREAS the Original Plan was replaced by the Shareholder Rights
Plan Agreement of the Corporation dated March 2, 1998 (the "1998 PLAN") that
would be effective at the latest until the termination of the annual meeting in
2001;
AND WHEREAS the Board of Directors of the Corporation has determined
that it is advisable to continue the shareholder rights plan by adopting an
amended and restated shareholder rights plan to take effect immediately upon
receipt of approval of the Independent Shareholders as defined herein to conform
to current corporate practices to effect the continued distribution of Rights
under the 1998 Plan as further amended and restated herein (the "RIGHTS PLAN")
to ensure, to the extent possible, that all shareholders of the Corporation are
treated fairly in connection with any take-over offer for the Corporation and,
due to the uniqueness of the Corporation's business, to ensure that the Board of
Directors are provided with a sufficient time to evaluate unsolicited take-over
bids and to explore and develop alternatives to maximize shareholder value;
AND WHEREAS, in order to continue implementation of the Rights Plan,
the Board of Directors of the Corporation has:
(a) reconfirmed the distribution of one right (a "RIGHT") in respect
of each Common Share as hereinafter defined) outstanding at the
close of business on May 10, 1998 (the "RECORD TIME"), such
distribution being made to shareholders of record at the Record
Time; and
(b) reconfirmed its authorization of the issuance of one Right in
respect of each Common Share issued after the Record Time and
prior to the earlier of the Separation Time (as hereinafter
defined) and the Expiration Time (as hereinafter defined);
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AND WHEREAS each Right entitles the holder thereof after the Separation
Time to purchase securities of the Corporation pursuant to the terms and subject
to the conditions set forth herein;
AND WHEREAS the Corporation desires to confirm the appointment of the
Rights Agent to act on behalf of the Corporation, and the Rights Agent is
willing to so continue to act, in connection with the issuance, transfer,
exchange and replacement of Rights Certificates (as hereinafter defined), the
exercise of Rights and other matters referred to herein;
NOW THEREFORE in consideration of the premises and the respective
agreements set forth herein, the parties hereby agree as follows:
ARTICLE 1
CERTAIN DEFINITIONS
1.1 CERTAIN DEFINITIONS
For purposes of this Agreement, the following terms have the meanings
indicated:
(a) "ACQUIRING PERSON" shall mean any Person who is the Beneficial
Owner of 20% or more of the outstanding Common Shares of the
Corporation; provided, however, that the term "Acquiring Person"
shall not include:
(i) the Corporation or any Subsidiary of the Corporation;
(ii) any Person who becomes the Beneficial Owner of 20% or more
of the outstanding Common Shares of the Corporation as a
result of any one or a combination of
(A) an acquisition or redemption by the Corporation of
Common Shares of the Corporation which, by reducing
the number of Common Shares outstanding, increases
the proportionate number of Common Shares
Beneficially Owned by such Person to 20% or more of
the Common Shares of the Corporation then
outstanding;
(B) share acquisitions made pursuant to a Permitted Bid
("PERMITTED BID ACQUISITIONS");
(C) share acquisitions (1) in respect of which the Board
of Directors of the Corporation has waived the
application of Section 3.1 pursuant to Sections
5.1(b), 5.1(c) or 5.1(d); or (2) which were made on
or prior to the date of the 1998 Plan; or (3) which
were made pursuant to a dividend reinvestment plan of
the Corporation; or (4) pursuant to the receipt or
exercise of rights issued by the Corporation to all
the holders of the Common Shares (other than holders
resident in a jurisdiction where such distribution is
restricted or impracticable as a result of applicable
law) to subscribe for or purchase Common Shares or
Convertible Securities, provided that such rights are
acquired directly from the Corporation and not from
any other person; or (5) pursuant to a distribution
to the public by the Corporation of Common Shares or
Convertible Securities made pursuant to a prospectus;
provided that the Person does not thereby
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acquire a greater percentage of such Common Shares or
Convertible Securities so offered than the person's
percentage of Common Shares or Convertible Securities
beneficially owned immediately prior to such
acquisition; or (6) pursuant to a distribution by the
Corporation of Common Shares or Convertible
Securities by way of a private placement by the
Corporation or upon the exercise by an individual
employee of stock options granted under a stock
option plan of the Corporation or rights to purchase
securities granted under a share purchase plan of the
Corporation, provided that (i) all necessary stock
exchange approvals for such private placement, stock
option plan or share purchase plan have been obtained
and such private placement, stock option plan or
share purchase plan complies with the terms and
conditions of such approvals and (ii) such Person
does not become the Beneficial Owner of more than 25%
of the Common Shares outstanding immediately prior to
the distribution, and in making this determination
the Common Shares to be issued to such Person in the
distribution shall be deemed to be held by such
Person but shall not be included in the aggregate
number of outstanding Common Shares immediately prior
to the distribution ("EXEMPT ACQUISITIONS");
(D) the acquisition of Common Shares upon the exercise of
Convertible Securities received by such Person
pursuant to a Permitted Bid Acquisition, Exempt
Acquisition or a Pro Rata Acquisition (as defined
below) ("CONVERTIBLE SECURITY ACQUISITIONS"); or
(E) acquisitions as a result of a stock dividend, a stock
split or other event pursuant to which such Person
receives or acquires Common Shares or Convertible
Securities on the same pro rata basis as all other
holders of Common Shares of the same class ("PRO RATA
ACQUISITIONS");
provided, however, that if a Person shall become the
Beneficial Owner of 20% or more of the Common Shares of the
Corporation then outstanding by reason of any one or a
combination of (i) share acquisitions or redemptions by the
Corporation or (ii) Permitted Bid Acquisitions or (iii)
Exempt Acquisitions or (iv) Convertible Security
Acquisitions or (v) Pro Rata Acquisitions and, after such
share acquisitions or redemptions by the Corporation or
Permitted Bid Acquisitions or Exempt Acquisitions,
Convertible Security Acquisitions or Pro Rata Acquisitions,
such Person subsequently becomes the Beneficial Owner of
more than an additional 1.00% of the number of Common
Shares of the Corporation outstanding other than pursuant
to any one or combination of share acquisitions or
redemptions of shares by the Corporation, Permitted Bid
Acquisitions, Exempt Acquisitions, Convertible Security
Acquisitions or Pro Rata Acquisitions, then as of the date
of any such acquisition such Person shall become an
"ACQUIRING PERSON";
(iii) a Grandfathered Person provided, however, that if such
Person shall thereafter become the Beneficial Owner of more
than an additional 1.00% of the number of Common Shares of
the Corporation outstanding other than pursuant to share
acquisitions or redemptions of shares by the Corporation,
Permitted Bid Acquisitions, Exempt Acquisitions,
Convertible Security Acquisitions or Pro
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Rata Acquisitions, then as of the date of any such
acquisition such Person shall become an "ACQUIRING PERSON";
(iv) for a period of 10 days after the Disqualification Date,
any Person who becomes the Beneficial Owner of 20% or more
of the outstanding Common Shares as a result of such Person
becoming disqualified from relying on clause 1.1(e)(B)
solely because such Person makes or announces an intention
to make a Take-over Bid, either alone or by acting jointly
or in concert with any other Person. For the purposes of
this definition, "DISQUALIFICATION DATE" means the first
date of public announcement that any Person is making or
intends to make a Take-over Bid either alone or by acting
jointly or in concert with any other Person; or
(v) an underwriter or member of a banking or selling group that
becomes the Beneficial Owner of 20% or more of the Common
Shares in connection with a distribution of securities by
way of prospectus or private placement.
(b) "AFFILIATE", used to indicate a relationship with a specified
corporation, shall mean a Person that directly, or indirectly
through one or more controlled intermediaries, controls, or is a
corporation controlled by, or is under common control with, such
specified corporation.
(c) "AMENDMENT DATE" means May 9, 2001.
(d) "ASSOCIATE" of a specified individual shall mean any individual
to whom such specified individual is married or with whom such
specified individual is living in a conjugal relationship,
outside marriage, or any relative of such specified individual or
said spouse who has the same home as such specified individual.
(e) A Person shall be deemed the "BENEFICIAL OWNER", and to have
"BENEFICIAL OWNERSHIP", of, and to "BENEFICIALLY OWN":
(i) any securities as to which such Person or any of such
Person's Affiliates or Associates is the owner at law or in
equity;
(ii) any securities as to which such Person or any of such
Person's Affiliates or Associates has the right to acquire
(A) upon the exercise of any Convertible Securities, or (B)
pursuant to any agreement, arrangement or understanding,
where such right is exercisable within a period of 60 days
whether or not on condition or the happening of any
contingency (other than (1) customary agreements with and
between underwriters and banking group or selling group
members with respect to a distribution to the public or
pursuant to a private placement of securities; or (2)
pursuant to a pledge of securities in the ordinary course
of business); and
(iii) any securities which are Beneficially Owned within the
meaning of clauses 1.1(e)(i) or 1.1(e)(ii) above by any
other Person with which such Person is acting jointly or in
concert;
provided, however, that a Person shall not be deemed the
"BENEFICIAL OWNER", or to have "BENEFICIAL OWNERSHIP" of, or to
"BENEFICIALLY OWN", any security:
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(A) where (1) the holder of such security has agreed to
deposit or tender such security pursuant to a
Permitted Lock-up Agreement to a Take-over Bid made
by such Person or any of such Person's Affiliates or
Associates or any other person referred to in clause
1.1(e)(iii) or (2) such security has been deposited
or tendered pursuant to a Take-over Bid made by such
Person or any of such Person's Affiliates or
Associates or any other Person referred to in clause
1.1(e)(iii) until the earliest time at which any such
tendered security is accepted unconditionally for
payment or exchange or is taken up and paid for;
(B) where such Person, any of such Person's Affiliates or
Associates or any other Person referred to in clause
1.1(e)(iii), holds such security provided that (1)
the ordinary business of any such Person (the
"INVESTMENT MANAGER") includes the management of
investment funds for others and such security is held
by the Investment Manager in the ordinary course of
such business in the performance of such Investment
Manager's duties for the account of any other Person,
including non-discretionary accounts held on behalf
of a client by a broker or dealer registered under
applicable laws, or (2) such Person (the "TRUST
COMPANY") is licensed to carry on the business of a
trust company under applicable laws and, as such,
acts as trustee or administrator or in a similar
capacity in relation to the estates of deceased or
incompetent Persons or in relation to other accounts
and holds such security in the ordinary course of
such duties for the estates of deceased or
incompetent Persons or for such other accounts, or
(3) such Person (the "PLAN TRUSTEE") is the
administrator or trustee of one or more pension funds
or plans (each a "PLAN") registered under applicable
laws and holds such security for the purposes of its
activity as such, or (4) such Person is a Plan or is
a Person established by statute (the "STATUTORY
BODY") for purposes that include, and the ordinary
business or activity of such Person includes the
management of investment funds for employee benefit
plans, pension plans, insurance plans (other than
plans administered by insurance companies) or various
public bodies or (5) such Person is a Crown agent or
agency; provided in any of the above cases, that the
Investment Manager, the Trust Company, the Plan
Trustee, the Plan, the Statutory Body or the Crown
agent or agency, as the case may be, is not then
making a Take-over Bid or has not announced a current
intention to make a Take-over Bid, other than an
Offer to Acquire Common Shares or other securities
pursuant to a distribution by the Corporation or by
means of ordinary market transactions (including
pre-arranged trades entered into in the ordinary
course of business of such Person) executed through
the facilities of a stock exchange, securities
quotation system or organized over-the-counter
market, alone or by acting jointly or in concert with
any other Person; or
(C) because such Person is a client of or has an account
with the same Investment Manager as another Person on
whose account the Investment Manager holds such
security, or where such Person is a client of or has
an account with the same Trust Company as another
Person on whose account the Trust Company holds such
security, or where such Person is
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a Plan and has a Plan Trustee who is also a Plan
Trustee for another Plan on whose account the Plan
Trustee holds such security; or
(D) where such Person is (i) a client of an Investment
Manager and such security is owned at law or in
equity by the Investment Manager, or (ii) an account
of a Trust Company and such security is owned at law
or in equity by the Trust Company, or (iii) a Plan
and such security is owned at law or in equity by the
Plan Trustee; or
(E) where such person is the registered holder of
securities as a result of carrying on the business of
or acting as a nominee of a securities depositary.
For purposes of this Agreement, the percentage of Common Shares
Beneficially Owned by any Person, shall be and be deemed to be
the product determined by the formula:
100 x A/B
Where:
A = the number of votes for the election of all directors
generally attaching to the Common Shares Beneficially Owned by
such Person; and
B = the number of votes for the election of all directors
generally attaching to all outstanding Common Shares.
For the purposes of the foregoing formula, where any person is
deemed to Beneficially Own unissued Common Shares which may be
acquired pursuant to Convertible Securities, such Common Shares
shall be deemed to be outstanding for the purpose of calculating
the percentage of Common Shares Beneficially Owned by such Person
in both the numerator and the denominator, but no other unissued
Common Shares which may be acquired pursuant to any other
outstanding Convertible Securities shall, for the purposes of
that calculation, be deemed to be outstanding.
(f) "BOARD OF DIRECTORS" shall mean the Board of Directors or any
duly constituted and empowered committee thereof.
(g) "BUSINESS DAY" shall mean any day other than a Saturday, Sunday
or a day that is treated as a holiday at the Corporation's
principal executive offices in Calgary, Canada.
(h) "BUSINESS CORPORATIONS ACT" shall mean the Canada Business
Corporations Act, R.S.C. 1985, c.C-44, as amended, and the
regulations thereunder, and any comparable or successor laws or
regulations thereto.
(i) "CANADIAN-U.S. EXCHANGE RATE" shall mean on any date the inverse
of the U.S. Canadian Exchange Rate.
(j) "CANADIAN DOLLAR EQUIVALENT" of any amount which is expressed in
United States dollars shall mean on any day the Canadian dollar
equivalent of such amount determined by reference to the
Canadian-U.S. Exchange Rate on such date.
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(k) "CLOSE OF BUSINESS" on any given date shall mean the time on such
date (or, if such date is not a Business Day, the time on the
next succeeding Business Day) at which the office of the transfer
agent for the Common Shares in the City of Calgary, Alberta (or,
after the Separation Time, the offices of the Rights Agent in the
City of Calgary, Alberta) becomes closed to the public.
(l) "COMMON SHARES OF THE CORPORATION" and "COMMON SHARES" shall mean
the common shares in the capital stock of the Corporation as
constituted as at the Amendment Date and any other share of the
Corporation into which such common shares may be subdivided,
consolidated, reclassified or changed from time to time and
"COMMON SHARES" when used with reference to any Person other than
the Corporation means the class or classes of shares (or similar
equity interest) with the greatest per share voting power
entitled to vote generally in the election of all directors of
such other Person or the equity securities or other equity
interest having power (whether or not exercised) to control or
direct the management of such other Person or, if such other
Person is a corporation controlled by another Person, the Person
(other than an individual) which ultimately controls such first
mentioned other Person.
(m) "COMPETING PERMITTED BID" means a Take-over Bid that:
(i) is made after a Permitted Bid has been made and prior to
the expiry of the Permitted Bid;
(ii) satisfies all components of the definition of a Permitted
Bid other than the requirements set out in the clause (ii)
of that definition; and
(iii) contains, and the take-up and payment for securities
tendered or deposited is subject to, an irrevocable and
unqualified provision that no Common Shares will be taken
up or paid for pursuant to the Take-over Bid prior to the
close of business on the date that is no earlier than the
later of (1) the earliest date on which Common Shares may
be taken up or paid for under any Permitted Bid or
Competing Permitted Bid that is then in existence and (2)
21 days (or such other minimum period of days as may be
prescribed by applicable law in Alberta) after the date of
the Take-over Bid constituting the Competing Permitted Bid.
(n) "CONVERTIBLE SECURITIES" means at any time any securities issued
by the Corporation from time to time (other than the Rights)
carrying any exercise, conversion or exchange right pursuant to
which the holder thereof may acquire Common Shares or other
securities which are convertible into or exercisable or
exchangeable for Common Shares.
(o) "CONVERTIBLE SECURITY ACQUISITIONS" has the meaning set forth in
the definition of "Acquiring Person" herein.
(p) "CO-RIGHTS AGENT" shall have the meaning set forth in subsection
4.1(a).
(q) "EFFECTIVE DATE" shall mean the close of business on March 2,
1998.
(r) "EXEMPT ACQUISITION" has the meaning set forth in the definition
of "Acquiring Person" herein.
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(s) "EXERCISE PRICE" shall mean, as of any date, the price at which a
holder may purchase the securities issuable upon exercise of one
whole Right and until adjustment thereof in accordance with the
terms hereof, the Exercise Price shall equal Cdn. $100.
(t) "EXPIRATION TIME" shall mean the earlier of:
(i) the Termination Time; and
(ii) the termination of the annual meeting of the shareholders
of the Corporation in the year 2001
provided, however, that if the resolution referred to in Section
5.19 is approved by Independent Shareholders in accordance with
Section 5.19 at or prior to such annual meeting, "Expiration
Time" means the earlier of (i) the Termination Time and (ii) the
termination of the annual meeting of the shareholders of the
Corporation in the year 2007.
(u) "FIDUCIARY" shall mean a trust company registered under the trust
company legislation of Canada or any province thereof, a trust
company organized under the laws of any state of the United
States, a portfolio manager registered under the securities
legislation of one or more provinces of Canada or an investment
adviser registered under the United States Investment Advisers
Act of 1940 or any other securities legislation of the United
States or any state of the United States.
(v) A "FLIP-IN EVENT" shall mean a transaction occurring subsequent
to the date of this Agreement as a result of which any Person
shall become an Acquiring Person provided, however, that a
Flip-in Event, shall be deemed to occur at the close of business
on the tenth day (or such later day as the Board of Directors of
the Corporation may determine) after the Stock Acquisition Date.
(w) "GRANDFATHERED PERSON" means any Person who is the Beneficial
Owner of 20% or more of the outstanding Common Shares of the
Corporation at the Record Time.
(x) "INDEPENDENT SHAREHOLDERS" shall mean holders of outstanding
Common Shares of the Corporation excluding (i) any Acquiring
Person; or (ii) any Person (other than a Person referred to in
Section 1.1(e)(B) in the circumstances described therein) that is
making or has announced a current intention to make a Take-over
Bid for Common Shares of the Corporation (including a Permitted
Bid or a Competing Permitted Bid) but excluding any such Person
if the Take-over Bid so announced or made by such Person has been
withdrawn, terminated or, expired; or (iii) any Affiliate or
Associate of such Acquiring Person or Persons referred to in
clause (ii); or (iv) any Person acting jointly or in concert with
such Acquiring Person or a Person referred to in clause (ii); or
(v) a Person who is a trustee of any employee benefit plan, share
purchase plan, deferred profit sharing plan or any similar plan
or trust for the benefit of employees of the Corporation or a
Subsidiary of the Corporation, unless the beneficiaries of the
plan or trust direct the manner in which the Common Shares are to
be voted or direct whether the Common Shares are to be tendered
to a Take-over Bid.
(y) "MARKET PRICE" per security of any securities on any date of
determination shall mean the average of the daily Closing Prices
Per Security of such securities (determined as
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described below) on each of the 20 consecutive Trading Days
through and including the Trading Day immediately preceding such
date; provided, however, that if an event of a type analogous to
any of the events described in Section 2.3 hereof shall have
caused the price used to determine the Closing Price Per Security
on any Trading Day not to be fully comparable with the price used
to determine the Closing Price Per Security on such date of
determination or, if the date of determination is not a Trading
Day, on the immediately preceding Trading Day, each such price so
used shall be appropriately adjusted in a manner analogous to the
applicable adjustment provided for in Section 2.3 hereof in order
to make it fully comparable with the price per security used to
determine the Closing Price Per Security on such date of
determination or, if the date of determination is not a Trading
Day, on the immediately preceding Trading Day. The "CLOSING PRICE
PER SECURITY" of any securities on any date shall be:
(i) the closing board lot sale price or, if such price is not
available, the average of the closing bid and asked prices,
for such securities as reported by the principal Canadian
stock exchange or securities quotation system on which such
securities are listed or admitted to trading (based on the
volume of securities traded during the most recently
completed financial year), or if for any reason neither of
such prices is available on such day or the securities are
not listed or admitted to trading on a Canadian stock
exchange or securities quotation system, the closing board
lot sale price or, if such price is not available, the
average of the closing bid and asked prices, for such
securities as reported by such other stock exchange or
securities quotation system on which such securities are
listed or admitted for trading (and if such securities are
listed or admitted for trading on more than one other stock
exchange or securities quotation system such prices shall
be determined based on the stock exchange or securities
quotation system on which such securities are then listed
or admitted for trading on which the largest number of such
securities were traded during the most recently completed
financial year);
(ii) if, for any reason, none of such prices is available on
such date or the securities are not listed or admitted to
trading on a stock exchange or securities quotation system,
the last sale price, or in case no sale takes place on such
date, the average of the high bid and low asked prices for
such securities in the over-the-counter market, as quoted
by any reporting system then in use (as selected by the
Board of Directors); or
(iii) if the securities are not listed or admitted to trading as
contemplated in clause 1.1(y)(i) or 1.1(y)(ii), the average
of the closing bid and asked prices as furnished by a
professional market maker making a market in the securities
provided, however, that if on any such date the Closing
Price Per Security cannot be determined in accordance with
the foregoing, the Closing Price Per Security of such
securities on such date shall mean the fair value per share
of such securities on such date as determined in good faith
by an internationally recognized investment dealer or
investment banker with respect to the fair value per share
of such securities. The Market Price, shall be expressed in
Canadian dollars and, if initially determined in respect of
any day forming part of the 20 consecutive trading day
period in question in United States dollars, such amount
shall be translated into Canadian dollars at the Canadian
Dollar Equivalent thereof.
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(z) "1933 SECURITIES ACT" shall mean the Securities Act of 1933 of
the United States, as amended, and the rules and regulations
thereunder, and any comparable or successor laws or regulations
thereto.
(aa) "1934 EXCHANGE ACT" shall mean the Securities Exchange Act of
1934 of the United States, as amended, and the rules and
regulations thereunder, and any comparable or successor laws or
regulations thereto.
(bb) "OFFER TO ACQUIRE" shall include:
(i) an offer to purchase, or a solicitation of an offer to
sell, Common Shares; and
(ii) an acceptance of an offer to sell Common Shares, whether or
not such offer to sell has been solicited;
or any combination thereof, and the Person accepting an offer to
sell shall be deemed to be making an offer to acquire to the
Person that made the offer to sell.
(cc) "OFFEROR'S SECURITIES" means Common Shares Beneficially Owned on
the date of an Offer to Acquire by any Person who is making a
Take-over Bid and "OFFEROR" means a Person who has announced a
current intention to make or is making a Take-over Bid.
(dd) "PERMITTED BID" means a Take-over Bid made by a Person by means
of a Take-over Bid circular and which also complies with the
following additional provisions:
(i) the Take-over Bid is made to all holders of record of
Common Shares, other than the Offeror;
(ii) the Take-over Bid shall contain, and the provisions for the
take-up and payment for Common Shares tendered or deposited
thereunder shall be subject to, an irrevocable and
unqualified condition that no Common Shares shall be taken
up or paid for pursuant to the Take-over Bid prior to the
close of business on a date which date is a date not less
than 60 days following the date of the Take-over Bid;
(iii) the Take-over Bid shall contain irrevocable and unqualified
provisions that, unless the Take-over Bid is withdrawn,
Common Shares may be deposited pursuant to the Take-over
Bid at any time prior to the close of business on the date
of first take-up or payment for Common Shares and that all
Common Shares deposited pursuant to the Take-over Bid may
be withdrawn at any time prior to the close of business on
such date;
(iv) the Take-over Bid shall contain an irrevocable and
unqualified condition that more than 50% of the outstanding
Common Shares held by Independent Shareholders, determined
as at the date of first take-up or payment for Common
Shares under the Take-over Bid, must be deposited to the
Take-over Bid and not withdrawn at the close of business on
the date of first take-up or payment for Common Shares; and
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(v) the Take-over Bid shall contain an irrevocable and
unqualified provision that in the event that more than 50%
of the then outstanding Common Shares held by Independent
Shareholders shall have been deposited to the Take-over Bid
and not withdrawn as at the date of first take-up or
payment for Common Shares under the Take-over Bid, the
Offeror will make a public announcement of that fact and
the Take-over Bid will remain open for deposits and tenders
of Common Shares for not less than 10 Business Days from
the date of such public announcement;
provided that if a Take-over Bid constitutes a Competing
Permitted Bid, the term "Permitted Bid" shall also mean the
Competing Permitted Bid.
(ee) "PERMITTED BID ACQUISITION" has the meaning set forth in the
definition of "Acquiring Person" herein.
(ff) "PERMITTED LOCK-UP AGREEMENT" means an agreement (the "LOCK-UP
AGREEMENT") between a Person and one or more holders of Common
Shares (each such holder referred to herein as a "LOCKED-UP
PERSON") (the terms of which are publicly disclosed and a copy of
which is made available to the public (including the Corporation)
not later than the date of the Lock-up Bid (as defined below) or
if the Lock-Up Bid has been made prior to the date of the Lock-Up
Agreement not later than the date of the Lock-Up Agreement)
pursuant to which each Locked-Up Person agrees to deposit or
tender the Common Shares held by such holder to a Take-over Bid
(the "Lock-up Bid") made by the Person or any of such Person's
Affiliates or Associates or any other Person referred to in
clause 1.1(e)(iii) provided that:
(i) the Lock-up Agreement permits the Locked-up Person to
withdraw its Common Shares from the Lock-up Agreement in
order to deposit or tender the Common Shares to another
Take-over Bid or to support another transaction prior to
the Common Shares being taken up and paid for under the
Lock-up Bid:
(A) at a price or value per Common Share that exceeds the
price or value per Common Share offered under the
Lock-up Bid; or
(B) for a number of Common Shares at least 7% greater
than the number of Common Shares that the Offeror has
offered to purchase under the Lock-up Bid at a price
or value per Common Share that is not less than the
price or value per Common Share offered under the
Lock-up Bid; or
(C) (a) that contains an offering price for each Common
Share that exceeds by as much as or more than a
specified amount (the "Specified Amount") the
offering price for each Common Share contained in or
proposed to be contained in the Lock-up Bid and (b)
does not by itself provide for a Specified Amount
that is greater than 7% of the offering price
contained in or proposed to be contained in the
Lock-up Bid; and;
for greater clarity, the agreement may contain a right of
first refusal or require a period of delay to give the
Person who made the Lock-up Bid an opportunity to match a
higher price in another Take-over Bid or other similar
limitation on a Locked-up Person's right to withdraw Common
Shares from the agreement, so long as the limitation does
not preclude the exercise by the Locked-up Person of
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the right to withdraw Common Shares during the period of
the other Take-over Bid or transaction; and
(ii) no "break-up" fees, "top-up" fees, penalties, expenses or
other amounts that exceed in aggregate the greater of:
(A) 2-1/2% of the price or value of the consideration
payable under the Lock-up Bid to a Locked-Up Person;
and
(B) 50% of the amount by which the price or value of the
consideration received by a Locked-up Person under
another Take-over Bid or transaction exceeds the
price or value of the consideration that the
Locked-up Person would have received under the
Lock-up Bid;
shall be payable by such Locked-up Person if the Locked-up Person
fails to deposit or tender Common Shares to the Lock-up Bid, or
withdraws Common Shares previously tendered thereto in order to
deposit or tender such Common Shares to another Take-over Bid or
support another transaction.
(gg) "PERSON" shall mean any individual, firm, partnership,
association, trust, trustee, personal representative, body
corporate, corporation, unincorporated organization, syndicate or
other entity.
(hh) "RECORD TIME" shall mean the close of business on May 10, 1998;
(ii) "REDEMPTION PRICE" has the meaning set forth in subsection 5.1(a)
herein.
(jj) "RIGHT" shall mean the herein described rights to purchase
securities pursuant to the terms and subject to the conditions
set forth herein.
(kk) "RIGHTS CERTIFICATE" shall mean the certificates representing the
Rights after the Separation Time which shall be substantially in
the form attached hereto as Exhibit A.
(ll) "RIGHTS REGISTER" and "RIGHTS REGISTRAR" shall have the
respective meanings ascribed thereto in Subsection 2.6(a).
(mm) "SECURITIES ACT" shall mean the Securities Act (Alberta), R.S.A.
1981, c. S.6.1, as amended, and the rules and regulations
thereunder, and any comparable or successor laws, rules or
regulations thereto.
(nn) "SEPARATION TIME" shall mean the close of business on the tenth
Business Day after the earlier of:
(i) the Stock Acquisition Date;
(ii) the date of the commencement of, or first public
announcement of the intent of any Person (other than the
Corporation or any Subsidiary of the Corporation) to
commence a Take-over Bid (other than a Take-over Bid which
is a Permitted Bid so long as such Take-over Bid continues
to satisfy the requirements of a Permitted Bid), provided
that, if any Take-over Bid referred to in this clause (ii)
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expires, is cancelled, terminated or otherwise withdrawn
prior to the Separation Time, such Take-over Bid shall be
deemed, for purposes of this Section 1.1(nn), never to have
been made; and
(iii) the date upon which a Permitted Bid ceases to be a
Permitted Bid;
or such later date as may be determined by the Board of Directors
of the Corporation acting in good faith provided that, if the
foregoing results in the Separation Time being prior to the
Record Time, the Separation Time shall be the Record Time and if
the Board of Directors determines pursuant to Section 5.1 to
waive the application of Section 3.1 to a Flip-in Event, the
Separation Time in respect of such Flip-in Event shall be deemed
never to have occurred.
(oo) "STOCK ACQUISITION DATE" shall mean the first date of public
announcement (which, for purposes of this definition, shall
include, without limitation, a report filed pursuant to Section
141 of the Securities Act or Section 13(d) under the 1934
Exchange Act) by the Corporation or an Acquiring Person that a
Person has become an Acquiring Person.
(pp) "SUBSIDIARY" of any specified Person shall mean any corporation
or other entity controlled by such specified Person.
(qq) "TAKE-OVER BID" means an Offer to Acquire Common Shares or
securities convertible into Common Shares, where the Common
Shares subject to the Offer to Acquire, together with the Common
Shares into which the securities subject to the Offer to Acquire
are convertible, and the Offeror's Securities, constitute in the
aggregate 20% or more of the outstanding Common Shares at the
date of the Offer to Acquire.
(rr) "TERMINATION TIME" shall mean the time at which the right to
exercise Rights shall terminate pursuant to Section 5.1, 5.18 or
5.19 hereof.
(ss) "TRADING DAY", when used with respect to any securities, shall
mean a day on which the principal securities exchange on which
such securities are listed or admitted to trading is open for the
transaction of business or, if the securities are not listed or
admitted to trading on any securities exchange, a Business Day.
(tt) "U.S. CANADIAN EXCHANGE RATE" shall mean on any date:
(i) if on such date the Bank of Canada sets an average noon
spot rate of exchange with a conversion of one United
States dollar into Canadian dollars, such rate;
(ii) in any other case, the rate for such date for the
conversion of one United States dollar into Canadian
dollars which is calculated in the manner which shall be
determined by the Board of Directors from time to time
acting in good faith.
(uu) "U.S. DOLLAR EQUIVALENT" of any amount which is expressed in
Canadian dollars shall mean on any day the United States dollar
equivalent of such amount determined by reference to the
U.S.-Canadian Exchange Rate on such date.
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1.2 CURRENCY
All sums of money which are referred to in this Agreement are expressed
in lawful money of Canada.
1.3 ACTING JOINTLY OR IN CONCERT
For purposes of this Agreement, a Person is acting jointly or in
concert with another Person if such Person has any agreement, arrangement or
understanding (whether formal or informal and whether or not in writing) with
such other Person to acquire, or Offer to Acquire any Common Shares of the
Corporation (other than (A) customary agreements with and between underwriters
and banking group or selling group members with respect to a distribution of
securities by way of prospectus or private placement or (B) pursuant to a pledge
of securities in the ordinary course of business).
1.4 CONTROL
A Person is "CONTROLLED" by another Person or two or more other Persons
acting jointly or in concert if:
(a) in the case of a body corporate, securities entitled to vote in
the election of directors of such body corporate carrying more
than 50% of the votes for the election of directors are held,
directly or indirectly, by or for the benefit of the other Person
or Persons acting jointly or in concert and the votes carried by
such securities are entitled, if exercised, to elect a majority
of the board of directors of such body corporate; or
(b) in the case of a Person which is not a body corporate, more than
50% of the voting or equity interests of such entity are held,
directly or indirectly, by or for the benefit of the other Person
or Persons acting jointly or in concert
and "CONTROLS", "CONTROLLING" and "UNDER COMMON CONTROL WITH" shall be
interpreted accordingly.
1.5 REFERENCES TO THIS AGREEMENT
In this Agreement, unless otherwise provided herein and unless the
context otherwise requires, references to this Agreement, "herein", "hereby" and
"hereunder" means this Amended and Restated Shareholders Rights Plan Agreement
dated May 9, 2001 between the Corporation and the Rights Agent as amended and
supplemented from time to time.
ARTICLE 2
THE RIGHTS
2.1 LEGEND ON COMMON SHARE CERTIFICATES
Certificates for the Common Shares, including without limitation Common
Shares issued upon the conversion of Convertible Securities, issued after the
Record Time but prior to the earlier of the Separation Time and the Expiration
Time shall evidence one Right for each Common Share represented thereby and,
commencing as soon as reasonably practicable after the Record Time, shall have
impressed on, printed on, written on or otherwise affixed to them a legend which
legend shall, if such Certificate was issued prior to the Amendment Date, be the
legend set forth in Section 2.1 of the 1998 Plan or Section 2.1 of the Original
Plan as applicable and which legend shall be deemed for all purposes to read
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the same as the legend set forth below, and, if such Certificate is issued after
the Amendment Date, be the following legend:
"Until the Separation Time (as defined in the Rights Agreement
referred to below), this certificate also evidences and entitles
the holder hereof to certain Rights as set forth in the Amended
and Restated Shareholder Rights Plan Agreement, dated as of May
9, 2001, as such may from time to time be amended, restated,
varied or replaced, (the "RIGHTS AGREEMENT"), between Agrium Inc.
(the "CORPORATION") and CIBC Mellon Trust Company as Rights
Agent, the terms of which are hereby incorporated herein by
reference and, a copy of which is on file at the registered
office of the Corporation. Under certain circumstances, as set
forth, in the Rights Agreement, such Rights may be amended or
redeemed, may expire, may become void (if, in certain cases, they
are "BENEFICIALLY OWNED" by an "ACQUIRING PERSON", as such terms
are defined in the Rights Agreement, or a transferee thereof) or
may be evidenced by separate certificates and may no longer be
evidenced by this certificate. The Corporation will mail or
arrange for the mailing of a copy of the Rights Agreement to the
holder of this certificate without charge as soon as practicable,
after the receipt of a written request therefor.
Certificates representing Common Shares that are issued and outstanding
at the Record Time or the Amendment Date shall evidence one Right for each
Common Share evidenced thereby notwithstanding the absence of the foregoing
legend.
2.2 INITIAL EXERCISE PRICE; EXERCISE OF RIGHTS; DETACHMENT OF RIGHTS
(a) Subject to adjustment as herein set forth, each Right will
entitle the holder thereof, after the Separation Time, to
purchase, for the Exercise Price, or its U.S. Dollar Equivalent
as at the Business Day immediately preceding the day of exercise
of the Right, one Common Share. Notwithstanding any other
provision of this Agreement, any Rights held by the Corporation
or its Subsidiaries shall be null and void.
(b) Until the Separation Time,
(i) no Right may be exercised; and
(ii) each Right will be evidenced by the certificate for the
associated Common Share registered in the name of the
holder thereof and will be transferable only together with,
and will be transferred by a transfer of, such associated
share.
(c) After the Separation Time and prior to the Expiration Time, the
Rights (i) may be exercised; and (ii) will be transferable
independent of Common Shares. Promptly following the Separation
Time the Rights Agent will mail to each holder of record of
Common Shares as of the Separation Time and, in respect of each
Convertible Security converted into Common Shares after the
Separation Time, promptly after such conversion to the holder so
converting (other than an Acquiring Person and, in respect of any
Rights Beneficially Owned by such Acquiring Person which are not
held of record by such Acquiring Person, the holder of record of
such Rights) at such holder's address as
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shown by the records of the Corporation (the Corporation hereby
agreeing to furnish copies of such records to the Rights Agent
for this purpose), (x) a certificate (a "RIGHTS Certificate") in
substantially the form of Exhibit A hereto with registration
particulars appropriately completed, representing the number of
Rights held by such holder at the Separation Time and having such
marks of identification or designation and such legends,
summaries or endorsements printed thereon as the Corporation may
deem appropriate and as are not inconsistent with the provisions
of this Agreement, or as may be required to comply with any law
or with any rule or regulation made pursuant thereto or with any
rule or regulation of any stock exchange or securities quotation
system on which the Rights may from time to time be listed or
traded, or to conform to usage, and (y) a disclosure statement
describing the Rights.
(d) Rights may be exercised in whole or in part on any Business Day
(or on any other day which, in the city at which an Election to
Exercise (as hereinafter defined) is duly submitted to the Rights
Agent in accordance with this Agreement, is not a Saturday,
Sunday or a day that is treated as a holiday in such city) after
the Separation Time and prior to the Expiration Time by
submitting to the Rights Agent (at its office in the City of
Calgary, Alberta, Canada or at any other office of the Rights
Agent in the cities designated from time to time for that purpose
by the Corporation, with the approval of the Rights Agent), the
Rights Certificate evidencing such Rights together with an
Election to Exercise (an "ELECTION TO EXERCISE") substantially in
the form attached to the Rights Certificate duly completed and
executed, accompanied by payment by certified cheque, banker's
draft or money order payable to the order of the Corporation, of
a sum equal to the Exercise Price multiplied by the number of
Rights being exercised and a sum sufficient to cover any transfer
tax or charge which may be payable in respect of any transfer
involved in the transfer or delivery of Rights Certificates or
the issuance or delivery of certificates for Common Shares in a
name other than that of the holder of the Rights being exercised.
(e) Upon receipt of a Rights Certificate, with a duly completed and
executed Election to Exercise (which does not indicate that the
holder so exercising is an Acquiring Person) accompanied by
payment as set forth in Section 2.2(d) above, the Rights Agent
will thereupon promptly:
(i) requisition from the transfer agent or any co-transfer
agent of the Common Shares certificates for the number of
Common Shares to be purchased (the Corporation hereby
irrevocably authorizing its transfer agent to comply with
all such requisitions);
(ii) when appropriate, requisition from the Corporation the
amount of cash to be paid in lieu of issuing fractional
Common Shares;
(iii) after receipt of the Common Share certificates, deliver the
same to or upon the order of the registered holder of such
Rights Certificate, registered in such name or names as may
be designated by such holder; and
(iv) when appropriate, after receipt, deliver such cash referred
to in subsection 2.2(e)(ii)to or to the order of the
registered holder of the Rights Certificate; and
(v) tender to the Corporation all payments received upon
exercise of the Rights.
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(f) In case the holder of any Rights shall exercise less than all the
Rights evidenced by such holder's Rights Certificate, a new
Rights Certificate evidencing the Rights remaining unexercised
will be issued by the Rights Agent to such holder or to such
holder's duly authorized assigns.
(g) The Corporation covenants and agrees that it will:
(i) take all such action as may be necessary and within its
power to ensure that all shares delivered upon exercise of
Rights shall, at the time of delivery of the certificates
for such shares (subject to payment of the Exercise Price),
be duly and validly authorized, executed, issued and
delivered and fully paid and non-assessable;
(ii) take all such action as may be necessary and within its
power to comply with any applicable requirements of the
Business Corporations Act, the Securities Act, the
securities acts or comparable legislation of each of the
other provinces of Canada, the 1933 Securities Act and the
1934 Exchange Act, and the rules and regulations thereunder
or any other applicable law, rule or regulation, in
connection with the issuance and delivery of the Rights
Certificates and the issuance of any shares upon exercise
of Rights;
(iii) use reasonable efforts to cause all shares issued upon
exercise of Rights to be listed on the principal exchanges
or traded in the over-the-counter markets on which the
shares were traded immediately prior to the Stock
Acquisition Date;
(iv) cause to be reserved and kept available out of its
authorized and unissued Common Shares the number of Common
Shares that, as provided in this Agreement, will from time
to time be sufficient to permit the exercise in full of all
outstanding Rights; and
(v) pay when due and payable any and all Canadian and United
States federal, provincial, and state transfer taxes (for
greater certainty not including any income taxes or capital
gains of the holder or exercising holder or any liability
of the Corporation to withhold tax) and charges which may
be payable in respect of the original issuance or delivery
of the Rights Certificates or certificates for shares,
provided that the Corporation shall not be required to pay
any transfer tax or charge which may be payable in respect
of any transfer involved in the transfer or delivery of
Rights Certificates or the issuance or delivery of
certificates for shares in a name other than that of the
holder of the Rights being transferred or exercised.
2.3 ADJUSTMENTS TO EXERCISE PRICE; NUMBER OF RIGHTS
The Exercise Price, the number and kind of shares subject to purchase
upon exercise of each Right and the number of Rights outstanding are subject to
adjustment from time to time as provided in this Section 2.3.
(a) In the event the Corporation shall at any time after the
Amendment Date and prior to the Expiration Time:
- 18 -
(i) declare or pay a dividend on the Common Shares payable in
Common Shares (or other capital stock or securities
exchangeable for or convertible into or giving a right to
acquire Common Shares or other capital stock) other than
pursuant to any optional stock dividend program, dividend
reinvestment plan or dividend payable in Common Shares in
lieu of a regular periodic cash dividend;
(ii) subdivide or change the then outstanding Common Shares into
a greater number of Common Shares;
(iii) combine or change the then outstanding Common Shares into a
smaller number of Common Shares; or
(iv) issue any Common Shares (or other capital stock or
securities exchangeable for or convertible into or giving a
right to acquire Common Shares or other capital stock) in
respect of, in lieu of or in exchange for existing Common
Shares in a reclassification, amalgamation, merger,
statutory arrangement or consolidation,
the Exercise Price and the number of Rights outstanding, or, if
the payment or effective date therefor shall occur after the
Separation Time, the securities purchasable upon exercise of
Rights shall be adjusted in the manner set forth below. If the
Exercise Price and number of Rights outstanding are to be
adjusted (x) the Exercise Price in effect after such adjustment
shall be equal to the Exercise Price in effect immediately prior
to such adjustment divided by the number of Common Shares (or
other capital stock) (the "EXPANSION FACTOR") that a holder of
one Common Share immediately prior to such dividend, subdivision,
change, combination or issuance would hold thereafter as a result
thereof and (y) each Right held prior to such adjustment shall
become that number of Rights equal to the Expansion Factor, and
the adjusted number of Rights will be deemed to be allocated
among the Common Shares with respect to which the original Rights
were associated (if they remain outstanding) and the shares
issued in respect of such dividend, subdivision, change,
combination or issuance, so that each such Common Share (or other
capital stock) will have exactly one Right associated with it. If
the securities purchasable upon exercise of Rights are to be
adjusted, the securities purchasable upon exercise of each Right
after such adjustment will be the number of securities that a
holder of the securities purchasable upon exercise of one Right
immediately prior to such dividend, subdivision, change,
combination or issuance would hold thereafter as a result
thereof. If after the Amendment Date and prior to the Expiration
Time the Corporation shall issue any shares of capital stock
other than Common Shares in a transaction of a type described in
subsection 2.3(a)(i) or 2.3(a)(iv), shares of such capital stock
shall be treated herein as nearly equivalent to Common Shares as
may be practicable and appropriate under the circumstances and
the Corporation and the Rights Agent agree to amend this
Agreement in order to effect such treatment. If an event occurs
which would require an adjustment under both this Section 2.3 and
Section 3.1 hereof, the adjustment provided for in this Section
2.3 shall be in addition to and shall be made prior to any
adjustment required pursuant to Section 3.1 hereof. Adjustments
pursuant to subsection 2.3(a) shall be made successively,
whenever an event referred to in subsection 2.3(a) occurs.
In the event the Corporation shall at any time after the
Amendment Date and prior to the Separation Time issue any Common
Shares otherwise than in a transaction referred to in the
preceding paragraph, each, such Common Share so issued shall
automatically have
- 19 -
one new Right associated with it, which Right shall be evidenced
by the certificate representing such Common Share.
(b) In the event the Corporation shall at any time after the
Amendment Date and prior to the Expiration Time fix a record date
for the making of a distribution to all holders of Common Shares
of rights or warrants entitling them (for a period expiring
within 45 calendar days after such record date) to subscribe for
or purchase Common Shares (or Convertible Securities in respect
of Common Shares) at a price per Common Share (or, in the case of
Convertible Security having a conversion, exchange or exercise
price (including the price required to be paid to purchase such
Convertible Security)) less than 90% of the Market Price per
Common Share on such record date, the Exercise Price shall be
adjusted in the manner set forth below. The Exercise Price in
effect after such record date shall equal the Exercise Price in
effect immediately prior to such record date multiplied by a
fraction, of which the numerator shall be the number of Common
Shares outstanding on such record date plus the number of Common
Shares which the aggregate offering price of the total number of
Common Shares so to be offered (and/or the aggregate initial
conversion, exchange or exercise price of the convertible or
exchangeable securities or rights so to be offered (including the
price required to be paid to purchase such convertible or
exchangeable securities or rights)) would purchase at such Market
Price and of which the denominator shall be the number of Common
Shares outstanding on such record date plus the number of
additional Common Shares to be offered for subscription or
purchase (or into which the convertible or exchangeable
securities or rights so to be offered are initially convertible,
exchangeable or exercisable). In case such subscription price is
satisfied in whole or in part by consideration in a form other
than cash the value of such consideration shall be as determined
in good faith by the Board of Directors of the Corporation whose
determination shall be described in a statement filed with the
Rights Agent and shall be binding on the Rights Agent and the
holders of Rights.
Such adjustment shall be made successively whenever such a record
date is fixed. For purposes of this paragraph 2.3(b), the
granting of the right to purchase Common Shares pursuant to any
dividend or interest reinvestment plan and/or any Common Share
purchase plan providing for the reinvestment of dividends or
interest payable on securities of the Corporation and/or the
investment of periodic optional payments and/or employee benefit
or similar plans (so long as such right to purchase is in no case
evidenced by the delivery of rights or warrants) shall not be
deemed to constitute an issue of rights or warrants by the
Corporation; provided, however, that in the case of any dividend
or interest reinvestment plan, the right to purchase Common
Shares is at a price per share of not less than 90% of the
current market price per share (determined as provided in such
plans) of the Common Shares.
(c) In the event the Corporation shall at any time after the
Amendment Date and prior to the Expiration Time fix a record date
for the making of a distribution to all holders of Common Shares
of evidences of indebtedness or assets (other than a regular
periodic cash dividend or a dividend paid in Common Shares
(excluding those referred to in Section 2.3(b)), the Exercise
Price shall be adjusted in the manner set forth below. The
Exercise Price in effect after such record date shall equal the
Exercise Price in effect immediately prior to such record date
less the fair market value (as determined in good faith by the
Board of Directors of the Corporation) of the portion of the
assets, evidences of indebtedness, rights or warrants so to be
distributed applicable to each of the securities
- 20 -
purchasable upon exercise of one Right (such determination to be
described in a statement filed with the Rights Agent and the
holders of the Rights). Such adjustment shall be made
successively whenever such a record date is fixed.
(d) Each adjustment made pursuant to this Section 2.3 shall be made
as of:
(i) the payment or effective date for the applicable dividend,
subdivision, change, combination or issuance, in the case
of an adjustment made pursuant to paragraph (a) above; and
(ii) the record date for the applicable dividend or
distribution, in the case of an adjustment made pursuant to
paragraph (b) or (c) above subject to readjustment to
reverse the same if such distribution shall not be made.
(e) In the event the Corporation shall at any time after the
Amendment Date and prior to the Expiration Time issue any shares
of capital stock (other than Common Shares), or rights or
warrants to subscribe for or purchase any such capital stock, or
securities convertible into or exchangeable for any such capital
stock, in a transaction referred to in clause (a)(i) or (a)(iv)
above, or if the Corporation shall take any other action (other
than the issue of Common Shares) which might have a negative
effect on the holders of Rights, if the Board of Directors acting
in good faith determines that the adjustments contemplated by
paragraphs (a), (b) and (c) above are not applicable or will not
appropriately protect the interests of the holders of Rights, the
Corporation may determine what other adjustments to the Exercise
Price, number of Rights and/or securities purchasable upon
exercise of Rights would be appropriate and, if the adjustments
contemplated by paragraphs (a), (b) and (c) above are applicable,
notwithstanding such paragraphs, the adjustments so determined by
the Corporation, rather than adjustments contemplated by
paragraphs (a), (b) and (c) above, shall be made. The Corporation
and the Rights Agent shall amend this Agreement in accordance
with Section 5.4(b) and 5.4(c), as the case may be, to provide
for such adjustments.
(f) Each adjustment to the Exercise Price made pursuant to this
Section 2.3 shall be calculated to the nearest cent. Whenever an
adjustment to the Exercise Price is made pursuant to this Section
2.3, the Corporation shall:
(i) promptly prepare a certificate setting forth such
adjustment and a brief statement of the facts accounting
for such adjustment;
(ii) promptly file with the Rights Agent and with each transfer
agent for the Common Shares a copy of such certificate and
mail a brief summary thereof to each holder of Rights who
requests such copy.
Failure to file such certificate or cause such summary to be
mailed as aforesaid, or any defect therein, shall not affect the
validity of any adjustment or change.
(g) Irrespective of any adjustment or change in the securities
purchasable upon exercise of the Rights, the Rights Certificates
theretofore and thereafter issued may continue to express the
securities so purchasable which were expressed in the initial
Rights Certificates issued hereunder.
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2.4 DATE ON WHICH EXERCISE IS EFFECTIVE
Each person in whose name any certificate for Common Shares is issued
upon the exercise of Rights shall for all purposes be deemed to have become the
holder of record of the Common Shares represented thereby on, and such
certificate shall be dated, the date upon which the Rights Certificate
evidencing such Rights was duly surrendered (together with a duly completed and
executed Election to Exercise) and payment of the Exercise Price for such Rights
(and any applicable transfer taxes and other governmental charges payable by the
exercising holder hereunder) was made; provided, however, that if the date of
such surrender and payment is a date upon which the Common Share transfer books
of the Corporation are closed, such person shall be deemed to have become the
record holder of such shares on, and such certificate shall be dated, the next
succeeding Business Day on which the Common Share transfer books of the
Corporation are open.
2.5 EXECUTION, AUTHENTICATION, DELIVERY AND DATING OF RIGHTS CERTIFICATES
(a) The Rights Certificates shall be executed on behalf of the
Corporation by its Chairman of the Board, President or any Vice
President and by the Treasurer, any Assistant Treasurer, the
Secretary or any Assistant Secretary of the Corporation. The
signature of any of these officers on the Rights Certificates may
be manual or facsimile. Rights Certificates bearing the manual or
facsimile signatures of individuals who were at any time the
proper officers of the Corporation shall bind the Corporation,
notwithstanding that such individuals or any of them have ceased
to hold such offices prior to the countersignature and delivery
of such Rights Certificates. Promptly after the Corporation
learns of the Separation Time, the Corporation will notify the
Rights Agent of such Separation Time and will deliver Rights
Certificates executed by the Corporation to the Rights Agent for
countersignature, and a disclosure statement describing the
Rights, and the Rights Agent shall countersign (manually or by
facsimile signature) and mail such Rights Certificates and
disclosure statement to the holders of the Rights pursuant to
Section 2.2(c) hereof. No Rights Certificate shall be valid for
any purpose until countersigned by the Rights Agent as aforesaid.
(b) Each Rights Certificate shall be dated the date of
countersignature thereof.
2.6 REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE
(a) The Corporation will cause to be kept a register (the "RIGHTS
REGISTER") in which, subject to such reasonable regulations as it
may prescribe, the Corporation will provide for the registration
and transfer of Rights. The Rights Agent is hereby appointed
"Rights Registrar" for the purpose of maintaining the Rights
Register for the Corporation and registering Rights and transfers
of Rights as herein provided. In the event that the Rights Agent
shall cease to be the Rights Registrar, the Rights Agent will
have the right to examine the Rights Register at all reasonable
times.
(b) After the Separation Time and prior to the Expiration Time, upon
surrender for registration of transfer or exchange of any Rights
Certificate, and subject to the provisions of Section 2.6(d)
below, the Corporation will execute, and the Rights Agent will
countersign and deliver, in the name of the holder or the
designated transferee or transferees, as required pursuant to the
holder's instructions, one or more new Rights Certificates
evidencing the same aggregate number of Rights as did the Rights
Certificates so surrendered.
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(c) All Rights issued upon any registration of transfer or exchange
of Rights Certificates shall be the valid obligations of the
Corporation, and such Rights shall be entitled to the same
benefits under this Agreement as the Rights surrendered upon such
registration of transfer or exchange.
(d) Every Rights Certificate surrendered for registration of transfer
or exchange shall be duly endorsed, or be accompanied by a
written instrument of transfer in form satisfactory to the
Corporation or the Rights Agent, as the case may be, duly
executed by the holder thereof or such holder's attorney duly
authorized in writing. As a condition to the issuance of any new
Rights Certificate under this Section 2.6, the Corporation may
require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto.
2.7 MUTILATED, DESTROYED, LOST AND STOLEN RIGHTS CERTIFICATES
(a) If any mutilated Rights Certificate is surrendered to the Rights
Agent prior to the Expiration Time, the Corporation shall execute
and the Rights Agent shall countersign and deliver in exchange
therefor a new Rights Certificate evidencing the same number of
Rights as did the Rights Certificate so surrendered.
(b) If there shall be delivered to the Corporation and the Rights
Agent prior to the Expiration Time (i) evidence to their
satisfaction of the destruction, loss or theft of any Rights
Certificate and (ii) such security or indemnity as may be
required by them in their sole discretion to save each of them
and any of their agents harmless, then, in the absence of notice
to the Corporation or the Rights Agent that such Rights
Certificate has been acquired by a bona fide purchaser, the
Corporation shall execute and upon its request the Rights Agent
shall countersign and deliver, in lieu of any such destroyed,
lost or stolen Rights Certificate, a new Rights Certificate
evidencing the same number of Rights as did the Rights
Certificate so destroyed, lost or stolen.
(c) As a condition to the issuance of any new Rights Certificate
under this Section 2.7, the Corporation may require the payment
of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses
(including the fees and expenses of the Rights Agent) connected
therewith.
(d) Every new Rights Certificate issued pursuant to this Section 2.7
in lieu of any destroyed, lost or stolen Rights Certificate shall
evidence an original additional contractual obligation of the
Corporation, whether or not the destroyed, lost or stolen Rights
Certificate shall be at any time enforceable by anyone, and shall
be entitled to all the benefits of this Agreement equally and
proportionately with any and all other Rights, duly issued
hereunder.
2.8 PERSONS DEEMED OWNERS
The Corporation, the Rights Agent and any agent of the Corporation or
the Rights Agent may deem and treat the Person, in whose name a Rights
Certificate (or, prior to the Separation Time, the associated Common Share
certificate) is registered as the absolute owner thereof and of the Rights
evidenced thereby for all purposes whatsoever. As used in this Agreement, unless
the context otherwise requires, the term "holder" of any Rights shall mean the
registered holder of such Rights (or, prior to the Separation Time, the
associated Common Shares).
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2.9 DELIVERY AND CANCELLATION OF CERTIFICATES
All Rights Certificates surrendered upon exercise or for redemption,
registration of transfer or exchange shall, if surrendered to any Person other
than the Rights Agent, be delivered to the Rights Agent and, in any case, shall
be promptly cancelled by the Rights Agent. The Corporation may at any time
deliver to the Rights Agent for cancellation any Rights Certificates previously
countersigned and delivered hereunder which the Corporation may have acquired in
any manner whatsoever, and all Rights Certificates so delivered shall be
promptly cancelled by the Rights Agent. No Rights Certificate shall be
countersigned in lieu of or in exchange for any Rights Certificates cancelled as
provided in this Section 2.9, except as expressly permitted by this Agreement.
The Rights Agent shall, subject to applicable law, destroy all cancelled Rights
Certificates and deliver a certificate of destruction to the Corporation.
2.10 AGREEMENT OF RIGHTS HOLDERS
Every holder of Rights by accepting the same consents and agrees with
the Corporation and the Rights Agent and with every other holder of Rights that:
(a) he will be bound by and subject to the provisions of this
Agreement, as amended from time to time in accordance with the
terms hereof, in respect of all Rights held;
(b) prior to the Separation Time, each Right will be transferable
only together with, and will be transferred by a transfer of, the
associated Common Share;
(c) after the Separation Time, the Rights Certificates will be
transferable only on the Rights Register as provided herein.
(d) prior to due presentment of a Rights Certificate (or, prior to
the Separation Time, the associated Common Share certificate) for
registration of transfer, the Corporation, the Rights Agent and
any agent of the Corporation or the Rights Agent may deem and
treat the Person in whose name the Rights Certificate (or, prior
to the Separation Time, the associated Common Share certificate)
is registered as the absolute owner thereof and of the Rights
evidenced thereby (notwithstanding any notations of ownership or
writing on such Rights Certificate or the associated Common Share
certificate made by anyone other than the Corporation or the
Rights Agent) for all purposes whatsoever, and neither the
Corporation nor the Rights Agent shall be affected by any notice
to the contrary;
(e) such holder of Rights has waived his right to receive any
fractional Rights or any fractional shares upon exercise of a
Right (except as provided herein);
(f) subject to Section 5.4, without the approval of any holder of
Rights and upon the sole authority of the Board of Directors of
the Corporation acting in good faith this Agreement may be
supplemented or amended from time to time as provided herein; and
(g) notwithstanding anything in this Agreement to the contrary,
neither the Corporation nor the Rights Agent shall have any
liability to any holder of a Right or any other Person as a
result of its inability to perform any of its obligations under
this Agreement by reason of any preliminary or permanent
injunction or other order, decree or ruling issued by a court of
competent jurisdiction or by a governmental, regulatory or
administrative agency or commission, or any statute, rule,
regulation or executive order promulgated or enacted by
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any governmental authority, prohibiting or otherwise restraining
performance of such obligation.
ARTICLE 3
ADJUSTMENTS TO THE RIGHTS IN THE EVENT OF CERTAIN TRANSACTIONS
3.1 FLIP-IN EVENT
(a) Subject to Sections 3.1(b), 5.1(b), 5.1(c) and 5.1(d) hereof, in
the event that prior to the Expiration Time a Flip-in Event shall
occur, the Corporation shall take such action as shall be
necessary to ensure and provide, within 10 Business Days
thereafter or such longer period as may be required to satisfy
the requirements of the applicable securities acts or comparable
legislation so that, except as provided below, each Right shall
thereafter constitute the right to purchase from the Corporation,
upon exercise thereof in accordance with the terms hereof, that
number of Common Shares of the Corporation having an aggregate
Market Price on the date of consummation or occurrence of such
Flip-in Event equal to twice the Exercise Price for an amount in
cash equal to the Exercise Price, (such right be appropriately
adjusted in a manner analogous to the applicable adjustment
provided for in Section 2.3 in the event that after such date of
consummation or occurrence an event of a type analogous to any of
the events described in Section 2.3 shall have occurred with
respect to such Common Shares).
(b) Notwithstanding the foregoing or any other provisions of this
Agreement, upon the occurrence of any Flip-in Event, any Rights
that are or were Beneficially Owned on or after the earlier of
the Separation Time or the Stock Acquisition Date by:
(i) an Acquiring Person (or any Affiliate or Associate of an
Acquiring Person or any Person acting jointly or in concert
with an Acquiring Person or any Affiliate or Associate of
an Acquiring Person); or
(ii) a transferee, direct or indirect, of an Acquiring Person
(or any Affiliate or Associate of an Acquiring Person or
any Person acting jointly or in concert with, an Acquiring
Person or any Affiliate or Associate of an Acquiring
Person) in a transfer made after the date hereof, whether
or not for consideration, that the Board of Directors of
the Corporation acting in good faith has determined is part
of a plan, arrangement or scheme of an Acquiring Person,
(or any Affiliate or Associate of an Acquiring Person or
any Person acting jointly or in concert with any Acquiring
Person or any Affiliate or Associate of an Acquiring
Person) that has the purpose or effect of avoiding clause
(i) of this Section 3.1(b),
shall become void and any holder of such Rights (including
transferees) shall thereafter have no right, to exercise such
Rights under any provision of this Agreement and shall not have
any other rights whatsoever in respect of such Rights, whether
under any provision of this Agreement or otherwise.
(c) Any Rights Certificate that represents Rights Beneficially Owned
by a Person described in either clauses (i) or (ii) of Section
3.1(b) or transferred to any nominee of any such Person, and any
Rights Certificate issued upon transfer, exchange, replacement or
adjustment of any other Rights Certificate referred to in this
sentence, shall contain the following legend:
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The Rights represented by this Rights Certificate were
Beneficially Owned by a Person who was an Acquiring Person
or who was an Affiliate or an Associate of an Acquiring
Person (as such terms are defined in the Rights Agreement)
or was acting jointly or in concert with any of them. This
Rights Certificate and the Rights represented hereby shall
become void in the circumstances specified in Section
3.1(b) of the Rights Agreement
provided that the Rights Agent shall not be under any
responsibility to ascertain the existence of facts that would
require the imposition of such legend but shall be required to
impose such legend only if instructed to do so by the Corporation
in writing or if a holder fails to certify upon transfer or
exchange in the space provided on the Rights Certificate that
such holder is not an Acquiring Person or an Affiliate or
Associate thereof.
ARTICLE 4
THE RIGHTS AGENT
4.1 GENERAL
(a) The Corporation hereby appoints the Rights Agent to act as agent
for the Corporation and the holders of Rights in accordance with
the terms and conditions hereof, and the Rights Agent hereby
accepts such appointment. The Corporation may from time to time
appoint such Co-Rights Agents (the "CO-RIGHTS AGENT") as it may
deem necessary or desirable subject to the approval of the Rights
Agent. In the event the Corporation appoints one or more
Co-Rights Agents, the respective duties of the Rights Agent and
Co-Rights Agents shall be as the Corporation may determine with
the approval of the Rights Agent and the Co-Rights Agent. The
Corporation agrees to pay to the Rights Agent reasonable
compensation for all services rendered by it hereunder and, from
time to time, on demand of the Rights Agent, its reasonable
expenses and counsel fees and other disbursements reasonably
incurred in the execution and administration of this Agreement
and the exercise and performance of its duties hereunder
(including the reasonable fees and other disbursements of any
expert retained by the Rights Agent with the approval of the
Corporation, such approval not to be unreasonably withheld). The
Corporation also agrees to indemnify the Rights Agent, its
officers, directors, employees and agents for, and to hold it
harmless against, any loss, liability, or expense, incurred
without negligence, bad faith or wilful misconduct on the part of
the Rights Agent, for anything done, suffered or omitted by the
Rights Agent in connection with the acceptance, execution and
administration of this Agreement and the exercise and performance
of its duties hereunder, including the legal costs and expenses
which right to indemnification will survive the termination of
this Agreement and the resignation or removal of the Rights
Agent.
(b) The Rights Agent shall be protected and shall incur no liability
for or in respect of any action taken, suffered or omitted by it
in connection with its administration of this Agreement in
reliance upon any certificate for Common Shares, Rights
Certificate, certificate for other securities of the Corporation,
instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, direction, consent,
certificate, statement, or other paper or document believed by it
to be genuine and to be signed,
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executed and, where necessary, verified or acknowledged, by the
proper person or persons.
(c) The Corporation shall inform the Rights Agent in a reasonably
timely manner of events which may materially affect the
administration of this Agreement by the Rights Agent and, at any
time upon request, shall provide to the Rights Agent an
incumbency certificate certifying the then current officers of
the Corporation.
4.2 MERGER, AMALGAMATION OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT
(a) Any corporation into which the Rights Agent or any successor
Rights Agent may be merged or amalgamated or with which it may be
consolidated, or any corporation resulting from any merger,
amalgamation or consolidation to which the Rights Agent or any
successor Rights Agent is a party or any corporation succeeding
to the shareholder or stockholder services business of the Rights
Agent or any successor Rights Agent, will be the successor to the
Rights Agent under this Agreement without the execution or filing
of any paper or any further act on the part of any of the parties
hereto, provided that such corporation would be eligible for
appointment as a successor Rights Agent under the provisions of
Section 4.4 hereof. In case, at the time such successor Rights
Agent succeeds to the agency created by this Agreement, any of
the Rights Certificates have been countersigned but not
delivered, any such successor Rights Agent may adopt the
countersignature of the predecessor Rights Agent and deliver such
Rights Certificates so countersigned; and in case at that time
any of the Rights Certificates have not been countersigned, any
successor Rights Agent may countersign such Rights Certificates
either in the name of the predecessor Rights Agent or in the name
of the successor Rights Agent; and in all such cases such Rights
Certificates will have the full force provided in the Rights
Certificates and in this Agreement.
(b) In case at any time the name of the Rights Agent is changed and
at such time any of the Rights Certificates shall have been
countersigned but not delivered, the Rights Agent may adopt the
countersignature under its prior name and deliver Rights
Certificates so countersigned; and in case at that time any of
the Rights Certificates shall not have been countersigned, the
Rights Agent may countersign such Rights Certificates either in
its prior name or in its changed name; and in all such cases such
Rights Certificates shall have the full force provided in the
Rights Certificates and in this Agreement.
4.3 DUTIES OF RIGHTS AGENT
The Rights Agent undertakes the duties and obligations imposed by this
Agreement upon the following terms and conditions, by all of which the
Corporation and the holders of Rights Certificates, by their acceptance thereof,
shall be bound:
(a) The Rights Agent may retain and consult with legal counsel (who
may be legal counsel for the Corporation), and the opinion of
such counsel will be full and complete authorization and
protection to the Rights Agent as to any action taken or omitted
by it in good faith and in accordance with such opinion; the
Rights Agent may also, with the approval of the Corporation (such
approval not to be unreasonably withheld) and at the expense of
the Corporation, consult with such other experts as the Rights
Agent shall consider necessary or appropriate to properly carry
out the duties and obligations
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imposed under this Agreement and the Rights Agent shall be
entitled to act and rely in good faith on the advice of any such
expert.
(b) Whenever in the performance of its duties under this Agreement
the Rights Agent deems it necessary or desirable that any fact or
matter be proved or established by the Corporation prior to
taking or suffering any action hereunder, such fact or matter
(unless other evidence in respect thereof be herein specifically
prescribed) may be deemed to be conclusively proved and
established by a certificate signed by a person believed by the
Rights Agent to be the Chairman of the Board, the Vice Chairman
of the Board, the President or any Vice President and by the
Treasurer, any Assistant Treasurer, the Secretary or any
Assistant Secretary of the Corporation and delivered to the
Rights Agent; and such certificate will be full authorization to
the Rights Agent for any action taken or suffered in good faith
by it under the provisions of this Agreement in reliance upon
such certificate.
(c) The Rights Agent will be liable hereunder only for its own
negligence, bad faith or wilful misconduct.
(d) The Rights Agent will not be liable for or by reason of any of
the statements of fact or recitals contained in this Agreement or
in the certificates for Common Shares or the Rights Certificates
(except its countersignature thereof) or be required to verify
the same, but all such statements and recitals are and will be
deemed to have been made by the Corporation only.
(e) The Rights Agent will not be under any responsibility in respect
of the validity of this Agreement or the execution and delivery
hereof (except the due authorization, execution and delivery
hereof by the Rights Agent) or in respect of the validity or
execution of any Common Share certificate or Rights Certificate
(except its countersignature thereof); nor will it be responsible
for any breach by the Corporation of any covenant or condition
contained in this Agreement or in any Rights Certificate; nor
will it be responsible for any change in the exercisability of
the Rights (including the Rights becoming void pursuant to
Section 3.1(b) hereof) or any adjustment required under the
provisions of Section 2.3 hereof or responsible for the manner,
method or amount of any such adjustment or the ascertaining of
the existence of facts that would require any such adjustment
(except with respect to the exercise of Rights after receipt of
the certificate contemplated by Section 2.3 describing any such
adjustment); nor will it by any act hereunder be deemed to make
any representation or warranty as to the authorization of any
Common Shares to be issued pursuant to this Agreement or any
Rights or as to whether any Common Shares will, when issued, be
duly and validly authorized, executed, issued and delivered and
fully paid and non-assessable.
(f) The Corporation agrees that it will perform, execute, acknowledge
and deliver or cause to be performed, executed, acknowledged and
delivered all such further and other acts, instruments and
assurances as may reasonably be required by the Rights Agent for
the carrying out or performing by the Rights Agent of the
provisions of this Agreement.
(g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties
hereunder from any person believed by the Rights Agent to be the
Chairman of the Board, the Vice Chairman of the Board, the
President, any Vice President or, the Secretary or any Assistant
Secretary or the Treasurer or any Assistant
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Treasurer of the Corporation, and to apply to such persons for
advice or instructions in connection with its duties, and it
shall not be liable for any action taken or suffered by it in
good faith in reliance upon instructions of any such person; it
is understood that instructions to the Rights Agent shall, except
where circumstances make it impracticable or the Rights Agent
otherwise agrees, be given in writing and, where not in writing,
such instructions shall be confirmed in writing as soon as
reasonably possible after the giving of such instructions.
(h) The Rights Agent and any shareholder or stockholder, director,
officer or employee of the Rights Agent may buy, sell or deal in
Common Shares, Rights or other securities of the Corporation or
become pecuniarily interested in any transaction in which the
Corporation may be interested, or contract with or lend money to
the Corporation or otherwise act as fully and freely as though it
were not Rights Agent under this Agreement. Nothing herein shall
preclude the Rights Agent from acting in any other capacity for
the Corporation or for any other legal entity.
(i) The Rights Agent may execute and exercise any of the rights or
powers hereby vested in it or perform any duty hereunder either
itself or by or through its attorneys or agents, and the Rights
Agent will not be answerable or accountable for any act,
omission, default, neglect or misconduct of any such attorneys or
agents or for any loss to the Corporation resulting from any such
act, omission, default, neglect or misconduct, provided
reasonable care was exercised in the selection and continued
employment thereof.
4.4 CHANGE OF RIGHTS AGENT
The Rights Agent may resign and be discharged from its duties under
this Agreement upon 30 days' notice (or such lesser notice as is acceptable to
the Corporation) in writing mailed to the Corporation and to each transfer agent
of Common Shares by registered or certified mail, and to the holders of the
Rights in accordance with Section 5.9. The Corporation may remove the Rights
Agent upon 30 days' notice in writing given to the Rights Agent and to each
transfer agent of the Common Shares (by personal delivery, or registered or
certified mail). If the Rights Agent should resign or be removed or otherwise
become incapable of acting, the Corporation will appoint a successor to the
Rights Agent. If the Corporation fails to make such appointment within a period
of 30 days after such removal or after it has been notified in writing of such
resignation or incapacity by the resigning or incapacitated Rights Agent, then
the resigning Rights Agent at the Corporation's expense or any holder of any
Rights may apply to any court of competent jurisdiction for the appointment of a
new Rights Agent. Any successor Rights Agent, whether appointed by the
Corporation or by such a court, shall be a corporation incorporated under the
laws of Canada or a province thereof authorized to carry on the business of a
trust company in the Province of Alberta. After appointment, the successor
Rights Agent will be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and transfer
to the successor Rights Agent any property at the time held by it hereunder, and
execute and deliver any further assurance, conveyance, act or deed necessary for
the purpose. Not later than the effective date of any such appointment, the
Corporation will file notice thereof in writing with the predecessor Rights
Agent and each transfer agent of the Common Shares, and mail a notice thereof in
writing to the holders of the Rights. Failure to give any notice provided for in
this Section 4.4, however, or any defect therein, shall not affect the legality
or validity of the resignation or removal of the Rights Agent or the appointment
of the successor Rights Agent, as the case may be.
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ARTICLE 5
MISCELLANEOUS
5.1 REDEMPTION AND TERMINATION
(a) The Board of Directors of the Corporation acting in good faith
may, with the prior consent of holders of Common Shares or of the
holders of Rights given in accordance with Section 5.1(f) or
5.1(g), as the case may be, at any time prior to the occurrence
of a Flip-in Event as to which the application of Section 3.1 has
not been waived pursuant to the provisions of this Section 5.1,
elect to redeem all but not less than all of the then outstanding
Rights at a redemption price of $0.00001 per Right appropriately
adjusted in a manner analogous to the applicable adjustment
provided for in Section 2.3 in the event that an event of the
type analogous to any of the events described in Section 2.3
shall have occurred (such redemption price being herein referred
to as the "Redemption Price").
(b) The Board of Directors of the Corporation acting in good faith
may, with the prior consent of the holders of Common Shares given
in accordance with Section 5.1(f), determine, at any time prior
to the occurrence of a Flip-in Event as to which the application
of Section 3.1 has not been waived pursuant to this Section 5.1,
if such Flip-in Event would occur by reason of an acquisition of
Common Shares otherwise than pursuant to a Take-over Bid made by
means of a Take-over Bid circular to all holders of Common Shares
and otherwise than in the circumstances set forth in Section
5.1(d), to waive the application of Section 3.1 to such Flip-in
Event. In the event that the Board of Directors proposes such a
waiver, the Board of Directors shall extend the Separation Time
to a date subsequent to and not more than ten Business Days
following the meeting of shareholders called to approve such
waiver.
(c) The Board of Directors of the Corporation acting in good faith
may, prior to the occurrence of a Flip-in Event as to which the
application of Section 3.1 has not been waived under this clause,
determine, upon prior written notice to the Rights Agent, to
waive the application of Section 3.1 to that Flip-in Event
provided that the Flip-in Event would occur by reason of a
Take-over Bid made by means of a Take-over Bid circular sent to
all holders of record of Common Shares; further provided that if
the Board waives the application of Section 3.1 to such a Flip-in
Event, the Board of Directors shall be deemed to have waived the
application of Section 3.1 to any other Flip-in Event occurring
by reason of any Take-over Bid made by means of a Take-over Bid
circular to all holders of record of Common Shares which is made
prior to the expiry of any Take-over Bid in respect of which a
waiver is, or is deemed to have been, granted under this Section
5.1(c).
(d) The Board of Directors of the Corporation acting in good faith
may, in respect of any Flip-in Event waive the application of
Section 3.1 to that Flip-in Event, provided that both of the
following conditions are satisfied:
(i) the Board of Directors has determined that the Acquiring
Person became an Acquiring Person by inadvertence and
without any intent or knowledge that it would become an
Acquiring Person; and
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(ii) such Acquiring Person has reduced its Beneficial Ownership
of Common Shares such that at the time of waiver pursuant
to this Section 5.1(d) it is no longer an Acquiring Person.
(e) The Board of Directors of the Corporation shall, without further
formality, be deemed to have elected to redeem the Rights at the
Redemption Price on the date that a Person who has made a
Permitted Bid or a Take-over Bid in respect of which the Board of
Directors of the Corporation has waived, or is deemed to have
waived, pursuant to Section 5.1(c), the application of Section
3.1, takes up and pays for the Common Shares pursuant to the
terms and conditions of the Permitted Bid or Take-over Bid, as
the case may be.
(f) If a redemption of Rights pursuant to Section 5.1(a) or a waiver
of a Flip-in Event pursuant to Section 5.1(b) is proposed at any
time prior to the Separation Time, such redemption or waiver
shall be submitted for approval to the holders of Common Shares.
Such approval shall be deemed to have been given if the
redemption or waiver is approved by the affirmative vote of a
majority of the votes cast by Independent Shareholders
represented in person or by proxy at a meeting of such holders
duly held in accordance with applicable laws and the
Corporation's by-laws.
(g) If a redemption of Rights pursuant to Section 5.1(a) is proposed
at any time after the Separation Time, such redemption shall be
submitted for approval to the holders of Rights. Such approval
shall be deemed to have been given if the redemption is approved
by holders of Rights by a majority of the votes cast by the
holders of Rights represented in person or by proxy at and
entitled to vote at a meeting of such holders. For the purposes
hereof, each outstanding Right (other than Rights which are
Beneficially Owned by any Person referred to in clauses (i) to
(v) inclusive of the definition of Independent Shareholders)
shall be entitled to one vote, and the procedures for the
calling, holding and conduct of the meeting shall be those, as
nearly as may be, which are provided in the Corporation's by-laws
and the Business Corporations Act with respect to meetings of
shareholders of the Corporation.
(h) Where a Take-over Bid that is not a Permitted Bid is withdrawn or
otherwise terminated after the Separation Time has occurred and
prior to the occurrence of a Flip-in Event, the Board may elect
to redeem all the outstanding Rights at the Redemption Price.
Notwithstanding such redemption, all of the provisions of this
Agreement shall continue to apply as if the Separation Time had
not occurred and it shall be deemed not to have occurred and
Rights shall remain attached to the outstanding Common Shares,
subject to and in accordance with the provisions of this
Agreement.
(i) If the Board of Directors of the Corporation elects or is deemed
to have elected to redeem the Rights, and, in circumstances where
Section 5.1(a) is applicable, such redemption is approved by the
holders of Common Shares or the holders of Rights in accordance
with Section 5.1(f) or 5.1(g), as the case may be, the right to
exercise the Rights will thereupon, without further action and
without notice, terminate and the only right thereafter of the
holders of Rights will be to receive the Redemption Price.
(j) Within 10 Business Days after the Board of Directors electing or
having been deemed to have elected to redeem the Rights or, if
Section 5.1(a) is applicable within 10 Business Days after the
holders of Common Shares or the holders of Rights have approved a
redemption of Rights in accordance with Section 5.1(f) or 5.1(g),
as the case may be, the
- 31 -
Corporation shall give notice of redemption to the holders of the
then outstanding Rights by mailing such notice to each such
holder at its last address as it appears upon the register of the
Rights Agent or, prior to the Separation Time, on the register of
the Transfer Agent for the Common Shares. Any notice which is
mailed in the manner herein provided will be deemed given,
whether or not the holder receives the notice. Each such notice
of redemption will state the method by which the payment of the
Redemption Price will be made. The Corporation may not redeem,
acquire or purchase for value any Rights at any time in any
manner other than that specifically set forth in this Section 5.1
or in connection with the purchase of Common Shares prior to the
Separation Time.
(k) The Corporation shall give prompt written notice to the Rights
Agent of any waiver of the application of Section 3.1 made by the
Board of Directors under this Section 5.1.
5.2 EXPIRATION
No Person shall have any rights pursuant to this Agreement or in
respect of any Right after the Expiration Time, except the Rights Agent as
specified in Section 4.1(a) of this Agreement.
5.3 ISSUANCE OF NEW RIGHTS CERTIFICATES
Notwithstanding any of the provisions of this Agreement or of the
Rights to the contrary, the Corporation may, at its option, issue new Rights
Certificates evidencing Rights in such form as may be approved by its Board of
Directors to reflect any adjustment or change in the number of or kind or class
of shares purchasable upon exercise of Rights made in accordance with the
provisions of this Agreement.
5.4 SUPPLEMENTS AND AMENDMENTS
(a) The Corporation may make amendments to this Agreement to correct
any clerical or typographical error or which are required to
maintain the validity of this Agreement as a result of any change
in any applicable legislation, rules or regulations thereunder.
The Corporation may, prior to the date of the shareholders'
meeting referred to in Section 5.18, supplement, amend, vary,
rescind or delete any of the provisions of this Agreement without
the approval of any holders of Rights or Common Shares (whether
or not such action would materially adversely affect the
interests of the holders of Rights generally) where the Board of
Directors acting in good βββββ βββββ such action necessary or
desirable. Notwithstanding anything in this Section 5.4 to the
contrary, no such supplement or amendment shall be made to the
provisions of Article 4 except with the written concurrence of
the Rights Agents to such supplement or amendment.
(b) Subject to Section 5.4(a), the Corporation may, with the prior
consent of the holders of Common Shares, obtained as set forth
below, at any time prior to the Separation Time, supplement,
amend, vary, rescind or delete any of the provisions of this
Agreement and the Rights (whether or not such action would
materially adversely affect the interests of the holders of
Rights generally). Such consent shall be deemed to have been
given if the action requiring such approval is authorized by the
affirmative vote of a majority of the votes cast by Independent
Shareholders present or represented at and entitled to be voted
at a meeting of the holders of Common Shares duly called and held
in compliance with applicable laws and the articles and by-laws
of the Corporation.
- 32 -
(c) The Corporation may, with the prior consent of the holders of
Rights, at any time on or after the Separation Time, supplement,
amend, vary, rescind or delete any of the provisions of this
Agreement and the Rights (whether or not such action would
materially adversely affect the interests of the holders of
Rights generally), provided that no such amendment, variation or
deletion shall be made to the provisions of Article 4 except with
the written concurrence of the Rights Agents thereto. Such
consent shall be deemed to have been given if such amendment,
variation or deletion is authorized by the affirmative votes of
the holders of Rights as provided in subsection 5.1(d) present or
represented at and entitled to be voted at a meeting of the
holders held in accordance with subsection 5.1(d) and
representing 50% plus one of the votes cast in respect thereof.
(d) Any approval of the holders of Rights shall be deemed to have
been given if the action requiring such approval is authorized by
the affirmative votes of the holders of Rights present or
represented at and entitled to be voted at a meeting of the
holders of Rights and representing a majority of the votes cast
in respect thereof. For the purposes hereof, each outstanding
Right (other than Rights which are void pursuant to the
provisions hereof) shall be entitled to one vote, and the
procedures for the calling, holding and conduct of the meeting
shall be those, as nearly as may be, which are provided in the
Corporation's by-laws and the Business Corporations Act with
respect to meetings of shareholders of the Corporation.
(e) Any amendments made by the Corporation to this Agreement pursuant
to Subsection 5.4(a) which are required to maintain the validity
of this Agreement as a result of any change in any applicable
legislation, rules or regulation thereunder shall:
(i) if made before the Separation Time, be submitted to the
shareholders of the Corporation at the next meeting of
shareholders and the shareholders may, by the majority
referred to in Subsection 5.4(b), confirm or reject such
amendment;
(ii) if made after the Separation Time, be submitted to the
holders of Rights at a meeting to be called for on a date
not later than immediately following the next meeting of
shareholders of the Corporation and the holders of Rights
may, by resolution passed by the majority referred to in
Subsection 5.4(d), confirm or reject such amendment.
Any such amendment shall be effective from the date of the
resolution of the Board of Directors adopting such amendment,
until it is confirmed or rejected or until it ceases to be
effective (as described in the next sentence) and, where such
amendment is confirmed, it continues in effect in the form so
confirmed. If such amendment is rejected by the shareholders or
the holder of Rights or is not submitted to the shareholders or
holders of Rights as required, then such amendment shall cease to
be effective from and after the termination of the meeting at
which it was rejected or to which it should have been but was not
submitted or from and after the date of the meeting of holders of
Rights that should have been but was not held, and no subsequent
resolution of the Board of Directors to amend this Agreement to
substantially the same effect shall be effective until confirmed
by the shareholders or holders of Rights as the case may be.
- 33 -
5.5 FRACTIONAL RIGHTS AND FRACTIONAL SHARES
(a) The Corporation shall not be required to issue fractions of
Rights or to distribute Rights Certificates which evidence
fractional Rights. After the Separation Time there shall be paid
to the registered holders of the Rights Certificates with regard
to which fractional Rights would otherwise be issuable, an amount
in cash equal to the same fraction of the Market Price of a whole
Right in lieu of such fractional Rights as of the date such
fractional Rights would otherwise be issuable.
(b) The Corporation shall not be required to issue fractional Common
Shares upon exercise of the Rights or to distribute certificates
which evidence fractional Common Shares. In lieu of issuing
fractional Common Shares, the Corporation shall pay to the
registered holder of Rights Certificates at the time such Rights
are exercised as herein provided, an amount in cash equal to the
same fraction of the Market Price of one Common Share at the date
of such exercise.
5.6 RIGHTS OF ACTION
Subject to the terms of this Agreement, rights of action in respect of
this Agreement, other than rights of action vested solely in the Rights Agent,
are vested in the respective holders of the Rights; and any holder of any
Rights, without the consent of the Rights Agent or of the holder of any other
Rights, may, on such holder's own behalf and for such holder's own, benefit and
the benefit of other holders of Rights, enforce, and may institute and maintain
any suit, action or proceeding against the Corporation to enforce, or otherwise
act in respect of, such holder's right to exercise such holder's Rights, or
Rights to which he is entitled, in the manner provided in this Agreement and in
such holder's Rights Certificate. Without limiting the foregoing or any remedies
available to the holders of Rights it is specifically acknowledged that the
holders of Rights would not have an adequate remedy at law for any breach of
this Agreement and will be entitled to specific performance of the obligations
under, and injunctive relief against actual or threatened violations of, the
obligations of any Person subject to this Agreement.
5.7 HOLDER OF RIGHTS NOT DEEMED A SHAREHOLDER
No holder, as such, of any Rights shall be entitled to vote, receive
dividends or be deemed for any purpose the holder of Common Shares or any other
securities which may at any time be issuable on the exercise of Rights, nor
shall anything contained herein or in any Rights Certificate be construed to
confer upon the holder of any Rights, as such, any of the rights of a
shareholder of the Corporation or any right to vote for the election of
directors or upon any matter submitted to shareholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of
meetings or other actions affecting Shareholders (except as provided in Section
5.8 hereof), or to receive dividends or subscription rights or otherwise, until
such Rights, or Rights to which such holder is entitled, shall have been
exercised in accordance with the provisions hereof.
5.8 NOTICE OF PROPOSED ACTIONS
In case the Corporation shall propose after the Separation Time and
prior to the Expiration Time:
(a) to effect or permit (in cases where the Corporation's permission
is required) any Flip-in Event; or
- 34 -
(b) to effect the liquidation, dissolution or winding up of the
Corporation or the sale of all or substantially all of the
Corporation's assets,
then, in each such case, the Corporation shall give to each holder of a Right,
in accordance with Section 5.9 hereof, a notice of such proposed action, which
shall specify the date on which such Flip-in Event, liquidation, dissolution, or
winding up is to take place, and such notice shall be so given at least 10
Business Days prior to the date of taking of such proposed action by the
Corporation.
5.9 NOTICES
Notices or demands to be given or made in connection with this
Agreement by the Rights Agent or by the holder of any Rights to or on the
Corporation shall be sufficiently given or made if delivered or sent by mail,
postage prepaid or by fax (with, in the case of fax, an original copy of the
notice or demand sent by first class mail, postage prepaid, to the Corporation
following the giving of the notice or demand by fax), addressed (until another
address is filed in writing with the Rights Agent) as follows:
Agrium Inc.
βββββ ββββ ββββββ βββββ β.β.
βββββββ, βββββββ
βββ βββ
Attention: General Counsel and Corporate Secretary
Fax: (βββ) βββ-ββββ
Notices or demands to be given or made in connection with this
Agreement by the Corporation or by the holder of any Rights to or on the Rights
Agent shall be sufficiently given or made if delivered or sent by mail, postage
prepaid, or by fax (with, in the case of fax, an original copy of the notice or
demand sent by first class mail, postage prepaid, to the Rights Agent following
the giving of the notice or demand by fax), addressed (until another address is
filed in writing with the Corporation) as follows:
CIBC Mellon Trust Company
βββ, βββ - βββ ββββββ β.β.
βββββββ, βββββββ
βββ βββ
Attention: Assistant Vice President
Fax: (βββ) βββ-ββββ
Notices or demands to be given or made in connection with this
Agreement by the Corporation or the Rights Agent to or on the holder of any
Rights shall be sufficiently given or made if delivered or sent by first class
mail, postage prepaid, or by fax (with, in the case of fax, an original copy of
the notice or demand sent by first class mail, postage prepaid, to such holder
following the giving of the notice or demand by fax), addressed to such holder
at the address of such holder as it appears upon the register of the Rights
Agent or, prior to the Separation Time, on the register of the Corporation for
the Common Shares.
Any notice given or made in accordance with this Section 5.9 shall be
deemed to have been given and to have been received on the day of delivery, if
so delivered, on the third Business Day (excluding each day during which there
exists any general interruption of postal service due to strike, lockout or
other cause) following the mailing thereof, if so mailed, and on the day of
faxing (provided such sending
- 35 -
is during the normal business hours of the addressee on a Business Day and if
not, on the first Business Day thereafter). Each of the Corporation and the
Rights Agent may from time to time change its address for notice by notice to
the other given in the manner aforesaid.
If mail service is or is threatened to be interrupted at a time when
the Corporation or the Rights Agent wishes to give a notice or demand hereunder
to or on the holders of the Rights, the Corporation or the Rights Agent may,
notwithstanding the foregoing provisions of this Section 5.9, give such notice
by means, of publication once in each of two successive weeks in the business
section of the Financial Post and, so long as the Corporation has a transfer
agent in the United States, in a daily publication in the United States
designated by the Corporation, or in such other publication or publications as
may be designated by the Corporation and notice so published shall be deemed to
have been given on the date on which the first publication of such notice in any
such publication has taken place.
5.10 COSTS OF ENFORCEMENT
The Corporation agrees that if the Corporation fails to fulfil any of
its obligations pursuant to this Agreement, then the Corporation will reimburse
the holder of any Rights for the costs and expenses (including legal fees)
incurred by such holder in actions to enforce his rights pursuant to any Rights
or this Agreement.
5.11 SUCCESSORS
All the covenants and provisions of this Agreement by or for the
benefit of the Corporation or the Rights Agent shall bind and enure to the
benefit of their respective successors and assigns hereunder.
5.12 BENEFITS OF THIS AGREEMENT
Nothing in this Agreement shall be construed to give to any Person
other than the Corporation, the Rights Agent and the holders of the Rights any
legal or equitable right, remedy or claim under this Agreement; but this
Agreement shall be for the sole and exclusive benefit of the Corporation, the
Rights Agent and the holders of the Rights.
5.13 DESCRIPTIVE HEADINGS
Descriptive headings appear herein for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.
5.14 GOVERNING LAW
This Agreement and each Right issued hereunder shall be deemed to be a
contract made under the laws of the Province of Alberta and for all purposes
shall be governed by and construed in accordance with the laws of such Province
applicable to contracts to be made and performed entirely within such Province.
5.15 LANGUAGE
Les parties aux presentes ont exige que la presente convention ainsi
que tous les documents et avis qui s'y rattachent et/ou qui en decouleront
soient rediges en langue anglaise. The parties hereto have required that this
Agreement and all documents and notices related thereto and/or resulting
therefrom be drawn up in the English language.
- 36 -
5.16 COUNTERPARTS
This Agreement may be executed in any number of counterparts and each
of such counterparts shall for all purposes be deemed to be an original, and all
such counterparts shall together constitute but one and the same instrument.
5.17 SEVERABILITY
If any term or provision hereof or the application thereof to any
circumstance is, in any jurisdiction and to any extent, invalid or
unenforceable, such term or provision shall be ineffective as to such
jurisdiction to the extent of such invalidity or unenforceability without
invalidating or rendering unenforceable the remaining terms and provisions
hereof or the application of such term or provision to circumstances other than
those as to which it is held invalid or unenforceable.
5.18 EFFECTIVE DATE
Notwithstanding its amendment and restatement as of the date hereof,
this Agreement subject to receipt of the approval of Independent Shareholders as
set forth below is effective from the Effective Date and replaces and supersedes
the 1998 Plan. If this Agreement is not approved by resolution passed by a
majority of the votes cast by Independent Shareholders who vote in respect of
reconfirmation of the 1998 Plan as amended and restated herein at a meeting of
shareholders to be held not later than the date on which the 2001 annual meeting
of shareholders of the Corporation terminates, then the 1998 Plan and this
Agreement and all outstanding Rights shall terminate and be void and of no
further force and effect on and from that date which is the earlier of (a) the
date of termination of the meeting called to consider the confirmation of the
1998 Plan as amended and restated herein under this Section 5.18; and (b) the
date of termination of the 2001 annual meeting of shareholders of the
Corporation.
5.19 SHAREHOLDER REVIEW
At or prior to the annual meeting of the Shareholders of the
Corporation in 2004, provided that a Flip-in Event has not occurred prior to
such time, the Board of Directors shall submit a resolution ratifying the
continued existence of this Agreement to the Independent Shareholders for their
consideration and, if thought advisable, approval. Unless the majority of the
votes cast by Independent Shareholders who vote in respect of such resolution
are voted in favour of the continued existence of this Agreement, the Board of
Directors shall, immediately upon the confirmation by the Chairman of such
shareholders' meeting of the results of the votes on such resolution and without
further formality, be deemed to elect to redeem the Rights at the Redemption
Price.
5.20 REGULATORY APPROVALS
Any obligation of the Corporation or action or event contemplated by
this Agreement shall be subject to the receipt of any requisite approval or
consent from any governmental or regulatory authority. Without limiting the
generality of the foregoing, any issuance or delivery of debt or equity
securities (other than non-convertible debt securities) of the Corporation upon
the exercise of Rights and any amendment or supplement to this Agreement shall
be subject to the prior consent of The Toronto Stock Exchange and any other
exchange or national securities quotation system upon which the Common Shares of
the Corporation may be listed.
- 37 -
5.21 DECLARATION AS TO NON-CANADIAN AND NON-U.S. HOLDERS
If in the opinion of the Board of Directors (who may rely upon the
advice of counsel), any action or event contemplated by this Agreement would
require compliance with the securities laws or comparable legislation of a
jurisdiction outside Canada and the United States of America, its territories
and possessions, the Board of Directors acting in good faith may take such
actions as it may deem appropriate to ensure that such compliance is not
required, including without limitation establishing procedures for the issuance
to a Canadian resident Fiduciary of Rights or securities issuable on exercise of
Rights, the holding thereof in trust for the Persons entitled thereto (but
reserving to the Fiduciary or to the Fiduciary and the Corporation, as the
Corporation may determine, absolute discretion with respect thereto) and the
sale thereof and remittance of the proceeds of such sale, if any, to the Persons
entitled thereto. In no event shall the Corporation or the Rights Agent be
required to issue or deliver Rights or securities issuable on exercise of Rights
to Persons who are citizens, residents or nationals of any jurisdiction other
than Canada and a province or territory thereof and the United States of America
and any state thereof in which such issue or delivery would be unlawful without
registration of the relevant Persons or securities for such purposes.
5.22 DETERMINATIONS AND ACTIONS BY THE BOARD OF DIRECTORS
All actions and determinations (including all omissions with respect to
the foregoing) which are done or made by the Board of Directors of the
Corporation, in good faith, for the purposes of this Agreement shall not subject
any member of the Board of Directors to any liability whatsoever to the holders
of the Rights.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.
AGRIUM INC.
Per: /s/ ββββ β. βββ βββββ
-----------------------------------
Name: ββββ β. βββ βββββ
Title: President and
Chief Executive Officer
Per: /s/ ββββββ β. β'ββββββββ
-----------------------------------
Name: ββββββ β. β'ββββββββ
Title: Vice President, General
Counsel and Corporate
Secretary
CIBC MELLON TRUST COMPANY
Per: /s/ ββββ ββββββββ
-----------------------------------
Name: ββββ ββββββββ
Title: Account Manager
Per: /s/ ββββββ βββββββ
-----------------------------------
Name: ββββββ βββββββ
Title: Manager, Client Services
EXHIBIT A
FORM OF RIGHTS CERTIFICATE
Certificate No. _________ ______ Rights
THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE CORPORATION, ON THE
TERMS SET FORTH IN THE RIGHTS AGREEMENT. IN CERTAIN CIRCUMSTANCES (SPECIFIED IN
SECTION 3.1(b) OF THE RIGHTS AGREEMENT), RIGHTS BENEFICIALLY OWNED BY AN
ACQUIRING PERSON OR TRANSFEREE OF AN ACQUIRING PERSON OR ITS AFFILIATES OR
ASSOCIATES (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR ANY PERSON
ACTING JOINTLY OR IN CONCERT WITH ANY OF THEM MAY BECOME VOID.
RIGHTS CERTIFICATE
This certifies that _________________________________________________
is the registered holder of the number of Rights set forth above, each of which
entitles the registered holder thereof, subject to the terms, provisions and
conditions of the Amended and Restated Shareholder Rights Plan Agreement dated
as of -- , 2001, as such may from time to time be amended, restated, varied or
replaced, (the "RIGHTS AGREEMENT") between Agrium Inc., a corporation
incorporated under the laws of Canada (the "CORPORATION"), and CIBC Mellon Trust
Company, a trust company incorporated under the laws of Canada, as Rights Agent
(the "RIGHTS AGENT"), which term shall include any successor Rights Agent under
the Rights Agreement, to purchase from the Corporation at any time after the
Separation Time (as such term is defined in the Rights Agreement) and prior to
the earlier of (i) the Termination Time (as such term is defined in the Rights
Agreement) and (ii) the termination of the first annual meeting of the
Corporation in 2004 (unless extended in accordance with the Rights Agreement),
one fully paid common share of the Corporation (a "COMMON SHARE") at the
Exercise Price referred to below, upon presentation and surrender of this Rights
Certificate together with the Form of Election to Exercise duly executed to the
Rights Agent at its principal office in the City of Calgary or in such other
cities as may be designated by the Corporation from time to time. The Exercise
Price shall initially be Cdn $100 per Right and shall be subject to adjustment
in certain events as provided in the Rights Agreement.
In certain circumstances described in the Rights Agreement, the number
of Common Shares which each Right entitles the registered holder thereof to
purchase shall be adjusted as provided in the Rights Agreement.
This Rights Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement which terms, provisions and conditions are
hereby incorporated herein by reference and made a part hereof and to which
Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the
Rights Agent, the Corporation and the holders of the Rights Certificates. Copies
of the Rights Agreement are on file at the registered office of the Corporation
and are available upon written request.
This Rights Certificate, with or without other Rights Certificates,
upon surrender at any of the offices of the Rights Agent designated for such
purpose, may be exchanged for another Rights Certificate or Rights Certificates
of like tenor and date evidencing an aggregate number of Rights equal to the
aggregate number of Rights evidenced by the Rights Certificate or Rights
Certificates surrendered. If this Rights Certificate shall be exercised in part,
the registered holder shall be entitled to receive, upon
- 2 -
surrender hereof, another Rights Certificate or Rights Certificates for the
number of whole Rights not exercised.
Subject to the provisions of the Rights Agreement, the Rights evidenced
by this Certificate may be redeemed by the Corporation at a redemption price of
$0.00001 per Right, subject to adjustment in certain events, under certain
circumstances at its option.
No fractional Common Shares will be issued upon the exercise of any
Rights evidenced hereby, but in lieu thereof a cash payment will be made, as
provided in the Rights Agreement.
No holder of this Rights Certificate, as such, shall be entitled to
vote or receive dividends or be deemed for any purpose the holder of Common
Shares or of any other securities which may at any time be issuable upon the
exercise hereof, nor shall anything contained in the Rights Agreement or herein
be construed to confer upon the holder hereof, as such, any of the Rights of a
shareholder of the Corporation or any right to vote for the election of
directors or upon any matter submitted to shareholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of
meetings or other actions affecting shareholders (except as provided in the
Rights Agreement), or to receive dividends or subscription rights, or otherwise,
until the Rights evidenced by this Rights Certificate shall have been exercised
as provided in the Rights Agreement.
This Rights Certificate shall not be valid or obligatory for any
purpose until it shall have been countersigned by the Rights Agent.
WITNESS the facsimile signature of the proper officers of the
Corporation and its corporate seal.
Date:
--------------------------
AGRIUM INC.
By: By:
--------------------------- -----------------------------
Authorized Officer Authorized Officer
Countersigned:
CIBC MELLON TRUST COMPANY
By:
---------------------------
Authorized Signature
FORM OF ASSIGNMENT
(To be executed by the registered holder if such holder desires to transfer
the Rights represented by this Rights Certificate.)
FOR VALUE RECEIVED ____________________________________ hereby sells,
assigns and transfers to _______________________________________________________
(Please print name and address of transferee)
the Rights represented by this Rights Certificate, together with all right,
title and interest therein, and hereby irrevocably constitutes and appoints
____________________________________as attorney, to transfer the within Rights
on the books of the Corporation, with full power of substitution.
Dated:
Signature Guaranteed:
------------------------------
Signature
(Signature must correspond to
name as written upon the face
of this Rights Certificate in
every particular, without
alteration or enlargement or
any change whatsoever.)
Signature must be guaranteed by a Canadian chartered bank, a Canadian trust
company, a member of a recognized stock exchange or a member of the Securities
Transfer Association Medallion (STAMP) Program.
--------------------------------------------------------------------------------
(To be completed if true)
The undersigned hereby represents, for the benefit of all holders of Rights and
Common Shares, that the Rights evidenced by this Rights Certificate are not,
and, to the knowledge of the undersigned, have never been, Beneficially Owned by
an Acquiring Person or an Affiliate or Associate thereof or by any Person acting
jointly or in concert with any of the foregoing (all capitalized terms are used
as defined in the Rights Agreement).
Dated: Signature:
---------------------- --------------------------
NOTICE
In the event the certification set forth above in the Form of Election
to Exercise is not completed upon exercise of the Right(s) evidenced hereby or
in the event that the certification set forth above in the Form of Assignment is
not completed upon the assignment of the Right(s) evidenced hereby, the
Corporation will deem the Beneficial Owner of the Right(s) evidenced by this
Rights Certificate to be an Acquiring Person or an Affiliate or Associate
thereof (as defined in the Rights Agreement) and, in the case of an assignment,
will affix a legend to that effect on any Rights Certificates issued in exchange
for this Rights Certificate.
(To be attached to each Rights Certificate)
FORM OF ELECTION TO EXERCISE
TO: AGRIUM INC.
The undersigned hereby irrevocably elects to exercise ______________________
whole Rights represented by the attached Rights Certificate to purchase the
Common Shares (or other securities or property) issuable upon the exercise of
such Rights and requests that certificates for such shares (or other, securities
or title to such property) be issued in the name of:
-------------------------------------------
(Name)
-------------------------------------------
(Street)
-------------------------------------------
(City and State or Province)
-------------------------------------------
(Country, Postal Code or Zip Code)
-------------------------------------------
SOCIAL INSURANCE, SOCIAL SECURITY OR
OTHER TAXPAYER IDENTIFICATION NUMBER
- 2 -
If such number of Rights shall not be all the Rights evidenced by this Rights
Certificate, a new Rights Certificate for the balance of such Rights shall be
registered in the name of and delivered to:
--------------------------------------
(Name)
--------------------------------------
(Street)
--------------------------------------
(City and State or Province)
--------------------------------------
(Country, Postal Code or Zip Code)
--------------------------------------
SOCIAL INSURANCE, SOCIAL SECURITY OR
OTHER TAXPAYER IDENTIFICATION NUMBER
Dated:
------------------------------
Signature Guaranteed:
------------------------------
Signature
(Signature must correspond to
name as written upon the face
of this Rights Certificate in
every particular, without
alteration or enlargement or
any change whatsoever.)
Signature must be guaranteed by a Canadian chartered bank, a Canadian trust
company, a member of a recognized stock exchange or a member of the Securities
Transfer Association Medallion (STAMP) Program.
--------------------------------------------------------------------------------
(To be completed if true)
The undersigned hereby represents, for the benefit of all holders of Rights and
Common Shares, that the Rights evidenced by this Rights Certificate are not,
and, to the knowledge of the undersigned, have never been, Beneficially Owned by
an Acquiring Person or an Affiliate or Associate thereof or by any Person acting
jointly or in concert with any of the foregoing (all capitalized terms are used
as defined in the Rights Agreement).
Dated: Signature:
----------------------- ----------------------------
NOTICE
In the event the certification set forth above in the Form of Election
to Exercise is not completed upon exercise of the Right(s) evidenced hereby or
in the event that the certification set forth above in the Form of Assignment is
not completed upon the assignment of the Right(s) evidenced hereby, the
Corporation will deem the Beneficial Owner of the Right(s) evidenced by this
Rights Certificate to be an Acquiring Person or an Affiliate or Associate
thereof (as defined in the Rights Agreement) and, in the case of an assignment,
will affix a legend to that effect on any Rights Certificates issued in exchange
for this Rights Certificate.