Dated as of July 31, 1996
BANK OF MONTREAL - BANQUE DE MONTREAL
and
THE TRUST COMPANY OF BANK OF MONTREAL -
SOCIETE DE FIDUCIE BANQUE DE MONTREAL
Trustee
THIRD SUPPLEMENTAL
INDENTURE
TABLE OF CONTENTS
Section Page
------- ----
Recitals ......................................................... 1
ARTICLE ONE
INTERPRETATION
1.1. Part of Original Trust Indenture ................................. 1
1.2. Definitions ...................................................... 2
ARTICLE TWO
ISSUE OF SERIES 22 DEBENTURES
2.1. Limit of Issue and Designation ................................... 2
2.2. Form and Terms of Series 22 Debentures ........................... 2
2.3. Interest ......................................................... 3
2.4. Issue of Series 22 Debentures .................................... 3
ARTICLE THREE
REDEMPTION AND PURCHASE OF SERIES 22 DEBENTURES
3.1. Restriction on Redemption ........................................ 4
3.2. Redemption of Series 22 Debentures ............................... 4
3.3. Places of Payment ................................................ 4
3.4. Purchase of Series 22 Debentures ................................. 4
Section Page
------- ----
ARTICLE FOUR
CONVERSION OF SERIES 22 DEBENTURES
INTO NEW DEBENTURES
4.1. Conversion Option ............................................... 4
4.2. Supplemental Indenture for New Debentures ........................ 5
4.3. Exercise of the Conversion Option ................................ 5
4.4. Issue of New Debentures .......................................... 5
4.5. Trustee's Decision Final ......................................... 5
4.6. Cancellation of Series 22 Debentures ............................. 5
4.7. Delivery of Legal Opinion and Bank Certificate ................... 6
ARTICLE FIVE
FORM OF SERIES 22 DEBENTURES
5.1. Form of Series 22 Debentures ..................................... 8
ARTICLE SIX
EXECUTION
6.1. Acceptance of Trust .............................................. 18
6.2. Counterparts and Formal Date ..................................... 18
THIS THIRD SUPPLEMENTAL INDENTURE made as of July 31, 1996.
BETWEEN
BANK OF MONTREAL - BANQUE DE MONTREAL, a Canadian chartered bank
(hereinafter called the "Bank"),
OF THE FIRST PART,
-and-
THE TRUST COMPANY OF BANK OF MONTREAL - SOCIETE DE FIDUCIE BANQUE DE
MONTREAL, a trust company incorporated under the laws of Canada
(hereinafter designated the "Trustee"),
OF THE SECOND PART,
WHEREAS under an indenture made as of December 14th, 1995 between the Bank
and the Trustee (the "Original Trust Indenture") the creation and issue of
Debentures from time to time without limitation as to principal amount was
provided for;
AND WHEREAS by the Original Trust Indenture and indentures supplemental
thereto the Bank has issued three series of Debentures;
AND WHEREAS pursuant to the provisions of the Original Trust Indenture and,
in particular, Section 2.7 thereof, the directors of the Bank have authorized
the creation and issue of additional Debentures thereunder upon the terms set
forth in this Third Supplemental Indenture;
AND WHEREAS all things necessary have been done and performed to authorize
the execution of this Third Supplemental Indenture, to make the same effective
and binding upon the Bank and to make the additional Debentures when certified
by the Trustee and issued as provided in this Third Supplemental indenture
valid, binding and legal obligations of the Bank with the benefits and subject
to the terms of the Original Trust Indenture as heretofore amended and this
Third Supplemental Indenture.
NOW THEREFORE THIS INDENTURE WITNESSETH and it is hereby agreed and
declared as follows:
ARTICLE ONE
INTERPRETATION
SECTION 1.1 Part of Original Trust Indenture. The Original Trust
Indenture, is part of this Third Supplemental Indenture and by this reference is
incorporated herein with the same effect as though at length set forth herein;
and in this Third Supplemental Indenture, unless there is something in the
subject matter or context inconsistent therewith, the expressions herein
contained shall have the same meaning as corresponding expressions in the
Original Trust Indenture.
1
SECTION 1.2. Definitions. In this Third Supplemental Indenture, unless
there is something in the subject matter or context inconsistent therewith:
1.2(1) "7.92% Debentures, Series 22, Due 2012" and "Series 22 Debentures"
means the $150,000,000 aggregate principal amount of 7.92% Debentures, Series
22, Due 2012 referred to in Section 2.1 hereof including Debentures issued in
substitution for any such Debentures.
1.2(2) "90 day Bankers' Acceptance Rate", for any quarterly interest
period, shall mean the average bid rate of interest (expressed as an annual
percentage rate) for Canadian dollar bankers' acceptances with maturities of
three months which appears on the Reuters Screen CDOR Page as of 10:00 a.m.,
Toronto time, on the first Business Day of such quarterly interest period;
provided that if such rate does not appear on the Reuters Screen CDOR Page on
such day, the 90 day Bankers' Acceptance Rate for such. period shall be the
average of the bid rates of interest (expressed as an annual percentage rate and
rounded to the nearest one-hundred thousandth of 1.00%) for Canadian do11ar
bankers' acceptances with maturities of three months for same day settlement as
quoted by such of the Schedule 1 banks (as defined in the Bank Act) as may quote
such a rate as of 10:00 a.m., toronto time, on the first Business Day of
such quarterly interest period;
1.2(3) "New Debentures" means the subordinated indebtedness of the Bank,
which qualifies as regulatory capital of the Bank under the then current capital
adequacy guidelines prescribed for Canadian chartered banks, to be issued to
holders of Series 22 Debentures upon the exercise of the Conversion Option
pursuant to Article Four hereof and having the terms and conditions contemplated
by such Article.
1.2(4) "Reuters Screen CDOR Page" means the display designated as page
"CDOR' on the Reuters Monitor Money Rates Service (or such other page as may
replace the CDOR page on that service) for purposes of displaying Canadian
dollar bankers' acceptance rates.
ARTICLE TWO
ISSUE OF SERIES 22 DEBENTURES
SECTION 2.1. Limit of Issue and Designation. A series of debentures is
hereby created and authorized to be issued pursuant to the Original Trust
Indenture consisting of and limited to $150,000,000 principal amount in lawful
money of Canada and hereby designated "7.92% Debentures, Series 22, Due 2012".
SECTION 2.2. Form and Terms of Series 22 Debentures.
(1) The Series 22 Debentures shall be issued as fully registered Debentures
only without coupons in denominations of $1,000 and integral multiples thereof;
shall be substantially in the form set out in Article Five hereof with such
appropriate insertions, omissions, substitutions and variations
2
as the Bank may authorize and the Trustee may assent to; shall be in both the
English and French; languages; and shall bear such distinguishing letters and
numbers as the Trustee may approve.
(2) The Series 22 Debentures shall be dated July 31, 1996 and shall mature
on July 31, 2012; shall be redeemable prior to maturity as provided in Article
Three; and may be convertible on July 31, 2007 into an equal aggregate principal
amount of New Debentures as provided in Article Four.
(3) The principal of the Series 22 Debentures shall be payable in lawful
money of Canada at any branch in Canada of the Bank, at the option of the
respective holders of the Series 22 Debentures, against surrender thereof.
Interest on the Series 22 Debentures will be payable in lawful money of Canada
by cheque drawn on the Bank and sent by prepaid mail to the registered holder or
by such other means as may become customary for the payment of interest. If the
day on which the principal or any interest on the Series 22 Debentures falls due
is not a Business Day then the holder shall not be entitled to payment until the
next Business Day nor to any further interest or other sums in respect of such
delayed payment.
SECTION 2.3. Interest.
(1) The Series 22 Debentures will bear interest at the rate of 7.92% per
annum from and including the date of issue to but excluding July 31, 2007
payable monthly in arrears on the last day of each month with overdue interest,
if any, at the same rate after as well as before default in the payment of
principal or interest. The first payment of interest will be made on August 31,
1996 and will represent interest from the date of issue.
(2) From July 31, 2007 until maturity on July 31, 2012, the Series 22
Debentures will bear interest at a rate per annum equal to the 90 day Bankers'
Acceptance Rate plus 1.00% payable quarterly in arrears on January 31, April 30,
July 31, and October 31 in each year (the "Interest Payment Dates") commencing
October 31, 2007 with overdue interest, if any, in respect of any quarterly
interest period at the same rate applicable to such quarterly interest period
after as well as before default in the payment of principal or interest.
Interest for each quarterly interest period will be calculated on the basis of
the actual number of days elapsed in each quarterly interest period divided by
365 or 366 in a leap year, as the case may be.
SECTION 2.4. Issue of Series 22 Debentures. The Series 22 Debentures, in
interim or definitive form, to the aggregate principal amount of $150,000,000
may forthwith be executed by the Bank and certified by or on behalf of the
Trustee and delivered by it to or upon the written order of the Bank, without
the Trustee receiving any consideration therefor.
3
ARTICLE THREE
REDEMPTION AND PURCHASE OF SERIES 22 DEBENTURES
SECTION 3.1. Restriction on Redemption. The Bank shall not redeem Series 22
Debentures for any purpose at any time prior to July 31, 2007.
SECTION 3.2. Redemption of Series 22 Debentures. Subject to the provisions
of the Bank Act, including the prior approval of the Superintendent, the Bank
may, at its option, redeem all but not less than all of the Series 22 Debentures
on July 31, 2007 or on any Interest Payment Date thereafter at 100% of the
principal amount thereof plus accrued and unpaid interest to the date fixed for
redemption, the whole constituting the redemption price.
SECTION 3.3 Places of Payment. The redemption price shall be payable upon
presentation and surrender of the Series 22 Debentures to be redeemed at any of
the places where the principal of the Series 22 Debentures is expressed to be
payable and at such other places, if any, as may be specified in the notice of
redemption.
SECTION 3.4. Purchase of Series 22 Debentures. The Bank, with the prior
approval of the Superintendent, shall have the right, at any time after the
fifth anniversary of the date of issue of the Series 22 Debentures, to purchase
Series 22 Debentures in the market, by tender or by private contract at any
price. Notwithstanding the foregoing, any subsidiary of the Bank may purchase
Series 22 Debentures in the ordinary course of its business of dealing in
securities.
ARTICLE FOUR
CONVERSION OF SERIES 22 DEBENTURES INTO NEW DEBENTURES
SECTION 4.1. Conversion Option. On July 31, 2007 (the "Conversion Date")
the registered holder of a Series 22 Debenture may, but only upon notice from
the Bank, which may be given only with the prior approval of the Superintendent,
convert (the "Conversion Option") all but not less than all of the Series 22
Debentures held by such holder into an equal aggregate principal amount of New
Debentures. If given, such notice from the Bank shall be given to the registered
holders of the Series 22 Debentures and to the Trustee, in the manner provided
in Article 14 of the Original Trust Indenture, not less than 30 days nor more
than 60 days prior to the Conversion Date and the holders shall thereupon have
the option to effect such conversion on the terms and conditions set forth in
this Article. The notice shall contain a description of the attributes and
characteristics of the New Debentures, a summary of the resale restrictions, if
any, in respect of the New Debentures under Canadian provincial securities
legislation, a summary of the principal Canadian federal income tax
considerations generally applicable to a holder of a Series 22 Debenture who is
a resident of Canada and who holds such Series 22 Debenture as capital property
upon exercising the Conversion Option and, shall describe the steps required to
be taken by the holder of a Series 22 Debenture in order to exercise the
Conversion Option and the status of the New Debentures as subordinated
indebtedness
4
of the Bank for purposes of the Bank Act. Any notice so given by the Bank shall
be irrevocable, shall apply to all outstanding Series 22 Debentures, and shall
remain in effect to and including the Conversion Date.
SECTION 4.2. Supplemental Indenture for New Debentures. In the event that
the Bank gives the notice referred to in Section 4.1, it shall authorize the
creation of New Debentures, constitute the terms and provisions thereof and, as
of the Conversion Date, execute and deliver to the Trustee a new indenture
supplemental to the Original Trust Indenture (the "Supplemental Indenture"), all
as provided for in subsections 2.7 (1) and 2.7 (2) of the Original Trust
Indenture, relating to the New Debentures to be issued to the holders of the
Series 22 Debentures on conversion. From and after the Conversion Date, the
Supplemental Indenture shall apply to the New Debentures issued to holders of
Series 22 Debentures converted pursuant to this Article and shall be binding
upon and enure to the benefit of the holders of such New Debentures.
SECTION 4.3. Exercise of the Conversion Option. The Conversion Option may
be exercised by the holder of a Series 22 Debenture by executing the form on the
reverse side of the Series 22 Debenture certificate and delivering the same for
surrender to the Trustee at the office or offices of the Trustee specified in
the notice referred to in Section 4.1 on or before the Conversion Date. Any such
exercise shall be irrevocable. A holder of Series 22 Debentures may only
exercise the Conversion Option with respect to all of the Series 22 Debentures
then registered in the name of such holder. No such exercise shall be effective
unless received by the Trustee in accordance with the provisions hereof at or
before 4:00 p.m. (Toronto time) on the Conversion Date.
SECTION 4.4. Issue of New Debentures. The Trustee, upon receipt of a Series
22 Debenture certificate with the form for the exercise of the Conversion Option
on the reverse side thereof duly executed by the registered holder thereof,
shall forthwith certify and deliver to such registered holder New Debentures
dated as of the Conversion Date in the same aggregate principal amount as the
Series 22 Debentures delivered for conversion. The New Debentures shall be
issued in accordance with the instructions of the holders of the Series 22
Debentures to be converted.
SECTION 4.5. Trustee's Decision Final. If any question shall arise as to
the validity of the exercise of the Conversion Option by holders of Series 22
Debentures pursuant to this Article Four, the Trustee may require such evidence
as it deems necessary in relation thereto, and the decision of the Trustee shall
be final and binding.
SECTION 4.6. Cancellation of Series 22 Debentures. All Series 22 Debentures
surrendered to the Trustee for conversion pursuant to this Article shall be
cancelled and shall not be reissued or resold.
5
SECTION 4.7. Delivery of Legal Opinion and Bank Certificate.
(1) If the notice referred to in Section 4.1 is delivered by the Bank, the
Bank shall deliver to the Trustee on the Conversion Date:
(i) a favourable legal opinion of counsel retained by the Bank and
acceptable to the Trustee, in form acceptable to the Trustee,
acting reasonably, dated the Conversion Date and addressed to the
Trustee and to the holders of Series 22 Debentures surrendered
for conversion, as to the following matters:
(a) that the exercise of the Conversion Option and the issuance
of the New Debentures to the holders of Series 22 Debentures
do not and will not result in a breach of any of the
provisions of the Bank Act or the by-laws of the Bank;
(b) that the Supplemental Indenture is in proper form, has been
duly authorized by all necessary corporate action on the
part of the Bank, has been duly executed and delivered by
the Bank and is a legal, valid and binding obligation of the
Bank enforceable against the Bank in accordance with its
terms, subject to the qualification that such enforceability
may be limited by bankruptcy, insolvency, winding-up,
liquidation or other similar laws affecting the enforcement
of creditors' rights generally and that specific performance
and other equitable remedies may only be granted in the
discretion of a court of competent jurisdiction;
(c) that the certificates representing the New Debentures are in
proper form, that the New Debentures have been duly
authorized, executed and delivered by the Bank and certified
by the Trustee, constitute subordinated indebtedness of the
Bank for purposes of the Bank Act which, in the event of the
insolvency or winding-up of the Bank, will rank equally and
rateably with all other debentures of the Bank from time to
time outstanding, have been duly issued and delivered under
the Original Trust Indenture, as amended and as supplemented
by the Supplemental Indenture and are entitled to the
benefits thereof, and are legal, valid and binding
obligations of the Bank enforceable against the Bank in
accordance with their respective terms subject to the
qualification that such enforceability may be limited by
bankruptcy, insolvency, winding-up, liquidation or other
similar laws affecting the enforcement of creditors' rights
generally and that specific performance and other equitable
remedies may only be granted in the discretion of a court of
competent jurisdiction;
(d) that any authorization, consent or approval or filing,
registration, qualification or recording with, any
government authority of each of the Provinces and
6
Territories of Canada legally required for the issuance of
the New Debentures to the holders of Series 22 Debentures
has been obtained or made;
(e) confirming the description of the resale restrictions, if
any, and tax consequences set out in the notice referred to
in Section 4.1;
(f) as to the eligibility of the New Debentures for investment
under statutes of Canada, and of the Provinces of ▇▇▇▇▇▇,
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ and British Columbia governing investments
by trusts, trustees, insurance companies, loan or trust
companies and by pension plans in accordance with any
financial performance tests thereunder without resort to any
so-called "basket" provisions thereunder, and, in the case
of any such statutes which refer to prudent investment
standards, that investment in the New Debentures would not
be prohibited under such statutes, subject to such prudent
investment standards and the general investment provisions
of such statutes and, in certain cases, criteria which are
required to be established as policies or guidelines
pursuant to such statutes; and
(g) as to such other matters as the Trustee may reasonably
request; and
(ii) a Certificate of the Bank stating that the exercise of the
Conversion Option and the issuance of the New Debentures to the
holders of Series 22 Debentures do not and will not result in any
violation of or constitute a default under any indenture or other
agreement or instrument to which the Bank is then a party or by
which the Bank is then bound.
(2) The obligation of the Bank to deliver the opinion and certificate
described in subsection 4.7(1) is solely for the benefit of the holders of
Series 22 Debentures being surrendered for conversion and may be waived or
modified by an instrument in writing signed by the Trustee (where the Trustee is
of the opinion that such waiver or modification is not materially prejudicial to
the interests of Series 22 Debenture holders) or by resolution of the holders of
a majority in principal amount of the Series 22 Debentures surrendered for
conversion on or after the date of the notice referred to in Section 4.1.
7
ARTICLE FIVE
FORM OF SERIES 22 DEBENTURES
SECTION 5.1. Form of Series 22 Debentures. The following is the form of
Series 22 Debentures referred to in Section 2.2:
ENGLISH TEXT
THIS IS NOT A DEPOSIT INSURED UNDER THE CANADA DEPOSIT
INSURANCE CORPORATION ACT
No. 22R $_______________
BANK OF MONTREAL
(Incorporated under the laws of Canada )
7.92% DEBENTURE, Series 22, DUE 2012
(subordinated indebtedness)
BANK OF MONTREAL (the "Bank"), for value received, hereby acknowledges
itself indebted and promises to pay to
or registered assigns on July 31, 2012, or on such earlier date as the principal
amount hereof may become payable, the principal sum of
DOLLARS ($______________)
in lawful money of Canada at any branch in Canada of the Bank, at the holder's
option; and until payment of the said principal sum to pay interest thereon at
the rates of interest and on the dates hereinafter provided from the date
hereof, or from the last interest payment date to which interest shall have been
paid or made available for payment on the Series 22 Debentures, whichever is the
later, at the same places in like money. The Series 22 Debentures bear interest
at the rate of 7.92% per annum from and including the date of issue to but
excluding July 31, 2007, payable monthly in arrears on the last day of each
month, with overdue interest, if any, at the same rate after as well as before
default in the payment of principal or interest. The first payment of interest
will be on August 31, 1996, and will represent interest from the date of issue.
From July 31, 2007, the Series 22 Debentures will bear interest at a rate equal
to the 90 day Bankers' Acceptance Rate (as defined in the Trust Indenture
hereinafter referred to) plus 1.00%, payable quarterly in arrears on January 31,
April 30, July 31 and October 31 in each year ("Interest Payment Dates")
commencing July 31, 2007 with overdue interest, if any, in respect of any
quarterly interest period at the rate applicable to such quarterly period after
as well as before default in the payment of principal or interest.
As the interest matures, the Bank (except in case of payment at maturity,
in which case payment of interest may, at the option of the Bank, be made upon
surrender of this Debenture) shall forward to the registered address of the
holder hereof by prepaid mail, prior to the applicable interest payment date, a
cheque for such interest drawn on the Bank and payable at any branch in Canada
of
8
the Bank at the holder's option, or by such other means as may become customary
for the payment of interest.
This Debenture is one of the Debentures of the Bank issued or issuable in
one or more series under the provisions of a trust indenture dated as of
December 14, 1995 between the Bank and The Trust Company of Bank of Montreal, as
trustee (the "Trustee") and indentures supplemental thereto, including the third
supplemental indenture thereto between the same parties dated as of July 31,
1996 (collectively, the "Trust Indenture"). The 7.92% Debentures, Series 22, Due
2012 (herein sometimes referred to as the "Series 22 Debentures"), of which this
is one, are limited to an aggregate principal amount of $150,000,000 in lawful
money of Canada and mature on July 31, 2012.
The Series 22 Debentures are direct unsecured obligations of the Bank,
constituting subordinated indebtedness for the purposes of the Bank Act
(Canada), and rank equally and rateably with all debentures and other
subordinated indebtedness of the Bank from time to time issued and outstanding
under the Trust Indenture and the Existing Trust Indentures (as defined in the
Trust Indenture), (collectively, the "Indentures"). The Indentures provide that
in the event of the insolvency or winding-up of the Bank, the indebtedness
evidenced by all debentures or other subordinated indebtedness issued
thereunder, including the Series 22 Debentures, will be subordinate in right of
payment to the prior payment in full of the deposit liabilities of the Bank,
except liabilities which by their terms rank in right of payment equally with or
subordinate to indebtedness evidenced by all such debentures or other
subordinated indebtedness. Reference is made to the Trust Indenture for a
further statement of the rights of the holders of Series 22 Debentures, of the
Bank and of the Trustee and the terms and conditions upon which the Series 22
Debentures are issued and held, to all of which the holder of this Debenture, by
acceptance hereof, assents.
The Series 22 Debentures are not redeemable for any purpose prior to July
31, 2007. Subject to the provisions of the Bank Act (Canada), including the
prior approval of the Superintendent of Financial Institutions, the Bank may
redeem all but not less than all of the Series 22 Debentures on July 31, 2007 or
on any Interest Payment Date thereafter, on not less than 30 days nor more than
60 days notice, all as provided in the Trust Indenture, at 100% of the principal
amount thereof plus accrued and unpaid interest to the date fixed for
redemption.
The Bank, with the prior approval of the Superintendent of Financial
Institutions, shall have the right, at any time after the fifth anniversary of
the date of issue of the Series 22 Debentures, to purchase Series 22 Debentures
in the market, by tender or by private contract at any price.
On July 31, 2007 (the "Conversion Date"), the registered holder of this
Series 22 Debenture may, but only upon notice from the Bank, which may be given
only with the prior approval of the Superintendent of Financial Institutions,
convert (the "Conversion Option") all, but not less than all, of this Series 22
Debenture into an equal aggregate principal amount of New Debentures (as defined
in the Trust Indenture). If given, such notice from the Bank shall be given to
the registered holders of the Series 22 Debentures not less than 30 days not
more than 60 days prior to the Conversion Date, all as provided in the Trust
Indenture, and such holders shall thereupon have the option to
9
effect such conversion on the terms and conditions set forth in the Trust
Indenture. The Conversion Option may be exercised by the holder completing the
Exercise of Conversion Option form which appears on the reverse side hereof and
delivering and surrendering this Series 22 Debenture to the Trustee, or its
agent, at any one of its principal offices in the cities hereinafter mentioned
or at such other places as may be designated in the Bank's notice at or prior to
4:00 p.m. (Toronto time) on the Conversion Date. Exercise of the Conversion
Option is irrevocable.
The Trust Indenture provides, among other things, for: (a) the acceleration
of the maturity of this Series 22 Debenture in the case of an event of default
(as defined in the Trust Indenture), and (b) the holding of meetings of
Debentureholders and for making binding on all Debentureholders certain
decisions taken thereat.
This Series 22 Debenture shall be transferable through the facilities of
the Trustee, or its agent, in the cities of Halifax, Montreal, Toronto,
Winnipeg, ▇▇▇▇▇▇, Calgary and Vancouver, and at such other places as may be
designated from time to time by the Bank with the approval of the Trustee, and
it may be transferred only by the registered holder hereof or his attorney duly
authorized in writing.
This Series 22 Debenture shall not become obligatory for any purpose until
it shall have been certified by or on behalf of the Trustee.
IN WITNESS WHEREOF this Series 22 Debenture has been duly executed, the
corporate seal of the Bank affixed hereon and dated July 31, 1996.
BANK OF MONTREAL
By: And:
--------------------------------- -----------------------------------
Chairman Secretary
10
(Form of Transfer)
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
-------------------------------------
(Name of New Holder)
-------------------------------------
(Full Postal Address)
this Series 22 Debenture, and hereby irrevocably authorizes and directs the
Trustee to transfer this Series 22 Debenture on the register of holders into the
name of the new holder herein designated.
Dated
----------------------
Signature guaranteed by:
------------------------------------- ----------------------------------------
Signature of Guarantor** Signature of Transferring
Registered Holder*
(Form of Trustee's Certificate)
TRUSTEE'S CERTIFICATE
This Debenture is one of the Series 22 Debentures of Bank of Montreal issued
under the Trust Indenture within mentioned.
THE TRUST COMPANY OF BANK OF MONTREAL
Trustee
By:
------------------------------------
Authorized Signatory
* The signature must correspond with the name of the registered holder as it
appears on the register.
** The guarantor must be a Canadian chartered bank, trust company or member of
a recognized stock exchange.
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(Form of Exercise of Conversion Option)
EXERCISE OF CONVERSION OPTION
The undersigned, being the registered holder of this Series 22 Debenture,
hereby elects to convert this Series 22 Debenture into an equal aggregate
principal amount of New Debentures of Bank of Montreal on the Conversion Date
and hereby irrevocably delivers and surrenders this Series 22 Debenture to The
Trust Company of Bank of Montreal, as Trustee, or its agent, for conversion.
Dated
----------------------
Signature guaranteed by:
------------------------------------- ----------------------------------------
Signature of Guarantor** Signature of Registered Holder*
* The signature must correspond with the name of the registered holder as it
appears on the register.
** The guarantor must be a Canadian chartered bank, trust company or member of
a recognized stock exchange.
▇▇
▇▇▇▇▇▇ ▇▇▇▇
▇▇ ▇▇▇▇▇▇▇▇ ▇▇ CONSTITUE PAS UN DEPOT ASSURE
EN VERTU DE LA LOI SUR
LA SOCIETE D'ASSURANCE-DEPOTS DU CANADA
No 22R _________$
BANQUE DE MONTREAL
(Constituee en vertu des ▇▇▇▇ du Canada)
DEBENTURE 7.92%, Serie 22, ECHEANT EN 2012
(titre secondaire)
BANQUE DE MONTREAL (la "Banque"), pour valeur recue, reconnait par les
presentes devoir et promet de payer a
ou a ses ayants droit inscrits, le 31 juillet 2012, ou a toute date anterieure a
laquelle le montant en capital peut devenir exigible, le montant en capital de
DOLLARS (__________$)
en monnaie legale du Canada a toute succursale de la Banque au Canada, au gre du
porteur, et de payer l'interet sur ce montant aux taux d'interet et aux dates
prevus ci-apres a compter de la plus tardive de la date des presentes ou de la
derniere date de paiement d'interet a laquelle l'interet aura ete paye ou offert
en paiement sur les debentures de la serie 22, jusqu'au parfait paiement de ce
montant, en meme monnaie et aux memes endroits. Les debentures de la serie 22
portent interet au taux de 7.92% par annee a compter de la date d'emission,
inclusivement, jusqu'au 31 juillet 2007, exclusivement, payable mensuellement et
non a l'avance le dernier jour de chaque mois, avec interet au meme taux sur
l'arriere d'interet, s'il y a lieu, apres comme avant tout defaut de paiement du
capital ou de l'interet. Le premier paiement de l'interet s'effectuera le 31
aout 1996 et representera l'interet a compter de la date d'emission. A partir du
31 juillet 2007, les debentures de la serie 22 porteront interet a un taux
equivalent au taux des acceptations bancaires de 90 jours (tel que defini a
l'acte de fiducie mentionne ci-apres) majore de 1,00 %, payable
trimestriellement et non a l'avance les 31 janvier, 30 avril, 31 juillet et 31
octobre de chaque annee (les "dates de paiement d'interet"), a compter du 31
juillet 2007 avec interet sur l'arriere d'interet, s'il y a lieu, relativement a
toute periode d'interet trimestrielle, au taux applicable a cette periode
d'interet trimestrielle, apres comme avant tout defaut de paiement du capital ou
de l'interet.
Selon l'echeancier de l'interet (sauf lors du paiement a l'echeance, auquel
cas le paiement de l'interet pourra, au gre de la Banque, etre effectue sur
remise de la presente debenture), la Banque en effectuera le paiement en
expediant par courrier affranchi a l'adresse inscrite du porteur de la
13
presente, avant la date de paiement d'interet applicable, un cheque pour
l'interet alors du tire sur la Banque et encaissable a toute succursale de la
Banque au Canada, au gre du porteur, ou de toute autre maniere qui sera d'usage
pour le paiement de l'interet.
Cette debenture est l'une des debentures de la Banque emises ou pouvant
etre emises en une ou plusieurs series en vertu des dispositions d'un acte de
fiducie intervenu en date du 14 decembre 1995 entre la Banque et la Societe de
fiducie Banque de Montreal, a titre de fiduciaire (le "fiduciaire") et d'actes
supplementaires s'y rapportant, y compris le troisieme acte supplementaire entre
les memes parties en date du 31 juillet 1996 (collectivement, l'"acte de
fiducie"). Les debentures 7.92%, serie 22, echeant en 2012 (quelquefois
designees dans les presentes comme les "debentures de la serie 22"), dont cette
debenture fait partie, sont limitees a un montant en capital global de 150 000
000$ en monnaie legale du Canada et viennent a echeance le 31 juillet 2012.
Les debentures de la serie 22 constituent des obligations directes et non
garanties de la Banque ainsi que des titres secondaires au sens de la Loi sur
les banques (Canada). Elles ont egalite de rang avec toutes les debentures et
autres titres secondaires de la Banque emis et en circulation de temps a autre
en vertu de l'acte de fiducie et des actes de fiducie existants ("Existing Trust
Indentures"), ainsi que ce terme est defini dans l'acte de fiducie
(collectivement, les "actes de fiducie"). Les actes de fiducie prevoient qu'en
cas d'insolvabilite ou de liquidation de la Banque, la dette constatee par
toutes les debentures et autres titres secondaires emis en vertu de ceux-ci, y
compris les debentures de la serie 22, sera subordonnee, quant au droit de
paiement, au paiement prioritaire et integral du passif-depots de la Banque,
sauf des elements de passif qui, selon leurs modalites, ont un rang egal ou
subordonne a la dette constatee par toutes ces debentures et autres titres
secondaires. Il y a lieu de se reporter a l'acte de fiducie pour le detail des
droits des porteurs de debentures de la serie 22, ceux de la Banque et du
fiduciaire et pour les modalites en vertu desquelles les debentures de la serie
22 sont emises et detenues, a l'ensemble desquels le porteur de cette debenture
acquiesce par son acceptation des presentes.
Les debentures de la serie 22 ne peuvent en aucun cas etre remboursees par
anticipation avant le 31 juillet 2007. Sous reserve des dispositions de la Loi
sur les banques (Canada), y compris l'approbation prealable du Surintendant des
institutions financieres, la Banque peut, a son gre, rembourser par anticipation
la totalite, mais non moins de la totalite, des debentures de la serie 22 le 31
juillet 2007 ou a toute date de paiement d'interet par la suite, moyennant un
avis prealable d'au moins 30 jours et d'au plus 60 jours, ainsi qu'il est prevu
dans l'acte de fiducie, au pair majore des interets courus et impayes a la date
fixee pour le remboursement.
Apres le cinquieme anniversaire de la date d'emission des debentures de la
serie 22, la Banque peut, avec l'approbation prealable du Surintendant des
institutions financieres, acheter les debentures de la serie 22 sur le marche
libre, ou par ▇▇▇▇▇ d'offres ou par convention privee, a quelque prix que ce
soit.
Le 31 juillet 2007 (la "date de conversion"), le porteur inscrit de cette
debenture de la serie 22 peut, a condition d'avoir recu un avis de la Banque,
lequel ne peut etre donne qu'avec l'approbation
14
prealable du Surintendant des institutions financieres, convertir (l' "option de
conversion") la totalite, mais non moins de la totalite, de cette debenture de
la serie 22 en un montant en capital global equivalent de nouvelles debentures
(▇▇▇▇▇▇ qu'elles sont defines dans ll'acte de fiducie). Le cas echeant, cet avis
de la Banque sera donne aux porteurs inscrits des debentures de la serie 22 au
moins 30 fours et au plus 60 jours avant la date de conversion, ainsi qu'il est
prevu dans l'acte de fiducie, et ces porteurs auront alors l'option d'effectuer
cette conversion selon les modalites prevues dans l'acte de fiducie. L'option de
conversion peut etre levee par le po rteur en remplissant le formulaire de
levee del'option de conversion quise trouve au verso de la presente et en
livrant et cedant cette debenture de la serie 22 au fiduciaire ou son mandataire
a l'un de leurs bureaux principaux dans les villes mentionnees ci-apres ou a
tout autre endroit mentionne dans l'avis de la Banque au plus tard a 16 h (heure
de Toronto) a la date de conversion. La levee de loption de conversion est
irrevocable.
L'acte de fiducie prevoit, entre autres: (a) la decheance du terme de
cette debenture de la serie 22 en cas de defaut (tel que defini dans l'acte de
fiducie) et (b) la tenue d'assemblees des porteurs de debentures et
l'assujettissement de tous les porteurs de debentures a certaines decisions
prises a ces assemblees.
Cette debenture de la serie 22 est transferable aux bureaux principaux du
fiduciaire, ou de son mandataire, a Halifax, Montreal, Toronto, Winnipeg,
▇▇▇▇▇▇, Calgary ou Vancouver, et a tels autres endroits que la Banque pourra
designer de temps a autre avec l'approbation du fiduciaire, et ne peut etre
transferee que par son porteur inscrit ou son fonde de pouvoir dument autorise
par ecrit.
Cette debenture de la serie 22 ne prend effet que lorsqu'elle est attestee
par le fiduciaire ou en son nom.
EN FOI DE QUOI, cette debenture de la serie 22 a ete ▇▇▇▇▇▇ signee et le
sceau de la Banque y a ete appose en date du 31 juillet 1996.
BANQUE DE MONTREAL
Par: et:
------------------------------- -------------------------------------
President du Conseil Secretaire
15
(Form of Transfer)
POUR VALEUR RECUE, le soussigne vend, cede et transfere a
------------------------------------
(Nom du nouveau porteur)
------------------------------------
(Adresse postale)
la presente debenture de la serie 22 et par les presentes autorise
irrevocablement le fiduciaire et lui ordonne de transferer cette debenture de la
serie 22 dans le registre des porteurs au nom du nouveau porteur design
ci-dessus.
Le
---------------------------------
Signature attestee par:
------------------------------------ -----------------------------------------
Signature du garant** Signature du porteur inscrit*
* La signature doit correspondre au nom du porteur inscrit indique sur le
registre des porteurs.
** ▇▇ ▇▇▇▇▇▇ doit etre une banque a charte canadienne, une societe de Fiducie
ou un membre d'une bourse reconnue.
16
(Form of Trustee's Certificate)
ATTESTATION DU FIDUCIAIRE
La presente debenture est une des debentures de la serie 22 emises par Banque de
Montreal en vertu de 1'acte de fiducie mentionne aux presentes.
SOCIETE DE FIDUCIE BANQUE DE MONTREAL
Fiduciaire
Par:
-----------------------------------
Signataire autorise
(Form of Exercise of Conversion Option)
LEVEE DE L'OPTION DE CONVERSION
Le soussigne, etant 1e porteur inscrit de cette debenture de la serie 22,
choisit par les presentes de convertir cette debenture de la serie 22 en un
montant en capital global equivalent de nouvelles debentures de Banque de
Montreal a la date de conversion et livre et cede irrevocablement cette
debenture de la serie 22 A Societe de fiducie Banque de Montreal, le fiduciaire,
ou son mandataire, aux funs de conversion.
Le
----------------------------------
------------------------------------- ----------------------------------------
Signature du garant** Signature du porteur inscrit*
* La signature doit correspondre au nom du porteur inscrit indique sur le
registre des porteurs.
** ▇▇ ▇▇▇▇▇▇ doit etre une banque a charte canadienne, une societe de fiducie
ou un membre d'une bourse reconnue.
17
ARTICLE SIX
EXECUTION
SECTION 6.1. Acceptance of Trust. The Trustee hereby accepts the trusts in
this Third Supplemental Indenture declared and provided for and agrees to
perform the same upon the terms and conditions and subject to the provisions
herein and in the Original Trust Indenture set forth.
SECTION 6.2. Counterparts and Formal Date. This Third Supplemental
Indenture maybe executed in several counterparts, each of which so executed
shall be deemed to be an original, and such counterparts together shall
constitute one and the same instrument and notwithstanding their date of
execution shall be deemed to bear date as of July 31, 1996.
IN WITNESS WHEREOF the parties hereto have executed these presents under
the hands of their proper officers in that behalf.
BANK OF MONTREAL - BANQUE DE MONTREAL
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇
---------------------------------
THE TRUST COMPANY OF BANK OF MONTREAL
-SOCIETE DE FIDUCIE BANQUE DE
MONTREAL
By: /s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
---------------------------------
Authorized Officer
And: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
--------------------------------
Authorized Officer
18
THE TRUST COMPANY OF BANK OF MONTREAL
EXECUTION OF DOCUMENTS
RESOLVED:-
THAT any document, contract or other instrument required to be
executed by Trustco with or without seal may be signed by the chief
executive officer or the chairman of the board or the president,
acting alone, or by any vice-president, treasurer and the secretary or
assistant secretary of Trustco, acting together or by any person or
persons appointed under Power of Attorney by the President within the
terms of the mandate conferred by said Power of Attorney.
THAT the President and Secretary or Assistant Secretary be and are
hereby authorized to execute and deliver the said Power of Attorney
substantially in the form attached hereto as Exhibit "A", to execute
and deliver all documents, make all amendments and corrections thereto
and do all things which are useful or necessary to give effect to the
present resolution.
**********
I, the undersigned, ▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Secretary of The Trust Company of
Bank of Montreal (the "Company"), hereby certify the foregoing is a true and
exact copy of a resolution adopted by the Directors of the Company at their
meeting held on the 21st day of January, 1994, which resolution is in full force
and effect and unamended at the date hereof.
DATED this 31st day of July, 1996.
/s/ ▇▇▇▇▇▇ ▇▇▇▇▇
----------------------------------------
Secretary
CERTIFICATE OF THE TRUST COMPANY OF BANK OF MONTREAL
The undersigned, ▇▇▇▇▇▇ ▇. ▇▇▇▇▇, the Secretary of the Trust Company
of Bank of Montreal (the "Company"), hereby cetifies on behalf of the Company
that each of the persona whose name appears below is a duly appointed officer of
the Company or a person authorized by a power of attorney to execute documents
of the Company, holding the position set forth opposite her name and the
signature set forth opposite the name of each person is such person's genuine
signature
NAME POSITION SIGNATURE
---- -------- ---------
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Senior Manager, Indenture Trust /s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
---------------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Vice President, Corporate Trust /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
---------------------------
DATED as of the 31st day of July, 1996
/s/ ▇▇▇▇▇▇ ▇▇▇▇▇
----------------------------------------
▇▇▇▇▇▇ ▇▇▇▇▇
Secretary
THE TRUST COMPANY OF BANK OF MONTREAL
I, the undersigned, ▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Secretary of The Trust Company of
Bank of Montreal ("Trustco"), hereby certify that the attached is a true and
exact copy of the Power of Attorney executed on June 3, 1996 which is still in
full force and effect and unamended at the date hereof.
WITNESS MY HAND and seal of Trustco this 31st day of July 1996.
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
----------------------------------------
▇▇▇▇▇▇ ▇. ▇▇▇▇▇
POWER OF ATTORNEY
THE TRUST COMPANY OF BANK OF MONTREAL ("TRUSTCO"), a body corporate with its
head office in the City of Toronto, in the Province of Ontario, herein acting
and represented by the President and Secretary of Trustco, as authorized by
resolution passed by the Board of Directors of Trustco on January 21, 1994, do
by these presents constitute and appoint each of the persons listed below to be
an attorney of Trustco in its name and on its behalf to sign, execute and
deliver, with or without seal, from time to time, documents, contracts or other
instruments as shall be necessary or desirable, effective as of the date set
opposite such person's name and in the manner indicated below:
NAME AND POSITION MANNER OF SIGNING EFFECTIVE DATE
----------------- ----------------- --------------
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Together with a Vice President, August 17, 1995
Senior Manager, Indenture Trust Secretary or Assistant Secretary of
Trustco, Toronto Trustco
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ Together with a Vice President, June 3, 1996
Senior Manager, Registered Products Secretary or Assistant Secretary of
Trustco, Toronto Trustco
▇▇▇▇▇▇ ▇▇▇▇▇▇ Together with a Vice President, June 3, 1996
Senior Trust Officer Secretary or Assistant Secretary of
Trustco, Toronto Trustco
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ Together with a Vice President, November 28, 1995
Senior Manager, Stock Transfer Secretary or Assistant Secretary of
Trustco, Montreal Trustco
▇▇▇▇▇▇▇ ▇▇▇▇▇ Together with a Vice President, April 16, 1996
Director, Client Relations Secretary, Assistant Secretary or
Trustco, Calgary Account Officer of Trustco
▇▇▇▇▇▇ ▇▇▇▇▇ Together with a Vice President, June 3, 1996
Director, Client Relations Secretary, Assistant Secretary or
Trustco, Vancouver ▇▇▇▇ ▇▇▇▇▇▇, Senior Manager,
Personal Trust
2
IT IS HEREBY DECLARED that:
1. any powers herein duly exercised by any such attorney and any documents,
contracts or other instruments signed, sealed (in cases where a seal is
required), executed, made and delivered by such attorneys, in the manner
indicated above opposite such attorney's name, shall bind Trustco and Trustco
hereby ratifies and confirms and agrees to ratify and confirm whatever such
attorney may lawfully do by virtue of these presents;
2. this power of attorney shall not operate to revoke, make void, diminish,
curtail or affect any powers conferred or which may hereafter be conferred by
Trustco upon any such attorney;
3. this power of attorney replaces the previous power of attorney granted to
each of the above attorneys on the applicable effective dates and on the
execution hereof, is effective as of such applicable effective date, and shall
continue in force until notice of revocation of this power, in respect of a
particular attorney, shall have been received by that attorney.
IN WITNESS WHEREOF these presents have been executed this 3rd day of June, 1996.
IN THE PRESENCE OF: THE TRUST COMPANY OF BANK OF MONTREAL
/s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇ /s/ T ▇▇▇▇▇▇▇.
------------------------------------- ----------------------------------------
Witness President
/s/ ▇▇▇▇▇ Sawaggin /s/ ▇▇▇▇▇▇ ▇▇▇▇▇
------------------------------------- ----------------------------------------
Witness Secretary
BY-LAW TWO - BUSINESS OF TRUSTCO
ARTICLE 2.01 EXECUTION OF DOCUMENTS
Any document, contract or other instrument required to be executed by Trustco
but to which the seal of Trustco does not have to be affixed may be signed by
any person duly authorized by the board of directors.
ARTICLE 2.02 SEAL
(a) Trustco shall have a seal. Trustco may have for use in any country,
province, territory, district or place in which it carries on operations or
has an office an official seal which shall be a facsimile of the seal of
Trustco. The seal and any such official seal shall remain in the custody of
the secretary or any officer of Trustco that the president may from time to
time designate for that purpose.
(b) The affixing of the seal or any such official seal to any document,
contract or other instrument shall be accompanied by the signature of the
chief executive officer or the chairman of the board or the president,
acting alone, or by the signatures of any vice-president, treasurer and of
the secretary or an assistant secretary, acting together or by any person
duly authorized by the board of directors. The chief executive officer or
the chairman of the board or the president, acting alone, and any
vice-president or treasurer acting together with the secretary or an
assistant secretary of Trustco or any person duly authorized by the board
of directors are empowered to execute all documents, contracts or
instruments requiring execution by Trustco under seal.
(c) Notwithstanding the foregoing, copies of by-laws, resolutions and other
proceedings of the board of directors, committees of the board of
directors, or shareholders of Trustco may be certified, whether under the
seal of Trustco or not, by the secretary or an assistant secretary or by
any other officer of Trustco so authorized by resolution of the directors.
I, the undersigned, ▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Secretary of The Trust Company of Bank
of Montreal ("Trustco"), hereby certify the foregoing is a true extract from the
By-Laws of Trustco which is still in full force and effect and unamended at
the date hereof.
WITNESS MY HAND and seal of Trustco this 31st day of July, 1996.
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
----------------------------------------
▇▇▇▇▇▇ ▇. ▇▇▇▇▇