TRANSALTA CORPORATION | ||||
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By:
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/s/ Scott Jeffers | ||
Name: |
Scott Jeffers
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Title: |
Corporate Secretary
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Exhibit Number
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Description of Document
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99.1
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ARTICLE 1
INTERPRETATION
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1.1
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Certain Definitions
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2
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1.2
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Currency
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17
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1.3
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Headings
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17
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1.4
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Number and Gender
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18
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1.5
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References to this Agreement
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18
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1.6
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Calculation of Number and Percentage of Beneficial Ownership of Outstanding Voting Shares
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18
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1.7
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Acting Jointly or in Concert
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18
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1.8
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Generally Accepted Accounting Principles
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18
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ARTICLE 2
THE RIGHTS
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2.1
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Legend on Certificates
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19
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2.2
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Initial Exercise Price; Exercise of Rights; Detachment of Rights
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19
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2.3
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Adjustments to Exercise Price; Number of Rights
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23
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2.4
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Date on Which Exercise Is Effective
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28
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2.5
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Execution, Authentication, Delivery and Dating of Rights Certificates
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28
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2.6
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Registration, Transfer and Exchange
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28
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2.7
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Mutilated, Destroyed, Lost and Stolen Rights Certificates
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29
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2.8
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Persons Deemed Owners of Rights
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30
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2.9
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Delivery and Cancellation of Certificates
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30
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2.10
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Agreement of Rights Holders
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30
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2.11
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Rights Certificate Holder Not Deemed a Shareholder
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31
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ARTICLE 3
ADJUSTMENTS TO THE RIGHTS IN THE EVENT OF CERTAIN TRANSACTIONS
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3.1
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Flip-in Event
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32
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ARTICLE 4
THE RIGHTS AGENT
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4.1
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General
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33
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4.2
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Merger, Amalgamation or Consolidation or Change of Name of Rights Agent
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34
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4.3
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Duties of Rights Agent
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35
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4.4
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Change of Rights Agent
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36
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4.5
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Compliance with Anti-Money Laundering Legislation
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37
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ARTICLE 5
MISCELLANEOUS
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5.1
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Redemption and Waiver
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37
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5.2
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Expiration
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39
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5.3
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Issuance of New Rights Certificates
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39
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5.4
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Supplements and Amendments
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39
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5.5
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Fractional Rights and Fractional Shares
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41
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5.6
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Rights of Action
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41
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5.7
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Regulatory Approvals
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42
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5.8
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Declaration as to Non-Canadian or Non-U.S. Holders
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42
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5.9
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Notices
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42
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5.10
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Costs of Enforcement
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43
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5.11
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Successors
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44
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5.12
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Benefits of this Agreement
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44
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5.13
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Governing Law
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44
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5.14
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Severability
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44
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5.15
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Effective Date
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44
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5.16
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Reconfirmation and Approval
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44
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5.17
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Actions by the Board of Directors
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45
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5.18
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Fiduciary Duties of the Directors
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45
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5.19
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Privacy Legislation
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45
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5.20
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Language
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45
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5.21
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Time of the Essence
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45
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5.22
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Execution in Counterparts
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45
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(a) |
authorized the issuance, effective at 12:01 a.m. (Calgary time) on the Effective Date (as hereinafter defined), of one Right (as hereinafter defined) in respect of each Common Share (as hereinafter defined) outstanding at 12:01 a.m. (Calgary time) on the Effective Date (the “
Record Time
”); and
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(b) |
authorized 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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1.1 |
Certain Definitions
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(a) |
“
Acquiring Person
” shall mean any Person who is the Beneficial Owner of 20% or more of the outstanding Voting Shares; provided, however, that the term “Acquiring Person” shall not include:
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(i) |
TransAlta or any Subsidiary of TransAlta;
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(ii) |
any Person who becomes the Beneficial Owner of 20% or more of the outstanding Voting Shares as a result of one or any combination of (A) a Voting Share Reduction, (B) a Permitted Bid Acquisition, (C) an Exempt Acquisition, (D) a Pro Rata Acquisition, or (E) a Convertible Security Acquisition; provided, however, that if a Person becomes the Beneficial Owner of 20% or more of the outstanding Voting Shares pursuant to one or any combination of a Voting Share Reduction, a Permitted Bid Acquisition, an Exempt Acquisition, a Pro Rata Acquisition or a Convertible Security Acquisition and thereafter such Person, while such Person is the Beneficial Owner of 20% or more of the Voting Shares then outstanding, increases the number of Voting Shares beneficially owned by such Person by more than 1.0% of the number of Voting Shares outstanding (other than pursuant to one or any combination of a Voting Share Reduction, a Permitted Bid Acquisition, an Exempt Acquisition, a Pro Rata Acquisition or a Convertible Security Acquisition), then, as of the date such Person becomes the Beneficial Owner of such additional Voting Shares, such Person shall be an “Acquiring Person”;
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(iii) |
for a period of ten days after the Disqualification Date (as defined below), any Person who becomes the Beneficial Owner of 20% or more of the outstanding Voting Shares as a result of such Person becoming disqualified from relying on Subsection 1.1(f)(v) solely because such Person is making or has announced an intention to make a Take-over Bid, either alone or by acting jointly or in concert with any other Person and, for the purposes of this definition, “
Disqualification Date
” means the first date of public announcement of facts indicating that such Person is making or intends to make a Take-over Bid alone or by acting jointly or in concert with any other Person;
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(iv) |
an underwriter or member of a banking or selling group acting in such capacity that becomes the Beneficial Owner of 20% or more of the Voting Shares in connection with a distribution of securities of TransAlta pursuant to a prospectus or by way of a private placement; or
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(v) |
a Person (a “
Grandfathered Person
”) who is the Beneficial Owner of 20% or more of the outstanding Voting Shares determined as at the Record Time, provided, however, that this exception shall not be, and
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shall cease to be, applicable to a Grandfathered Person in the event that such Grandfathered Person shall, after the Record Time, become the Beneficial Owner of additional Voting Shares that increases its Beneficial Ownership of Voting Shares by more than 1.0% of the number of Voting Shares outstanding as at the Record Time (other than pursuant to one or any combination of a Voting Share Reduction, a Permitted Bid Acquisition, an Exempt Acquisition, a Pro Rata Acquisition or a Convertible Security Acquisition);
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(b) |
“
Affiliate
”, when used to indicate a relationship with a Person, shall mean a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such specified Person;
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(c) |
“
Agreement
” shall mean this shareholder rights plan agreement dated as of October 13, 1992, as amended and restated as of April 26, 2019, between TransAlta and the Rights Agent;
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(d) |
“
annual cash dividend
” shall mean cash dividends paid in any fiscal year of TransAlta, or if applicable, Utilities, to the extent that such cash dividends do not exceed, in the aggregate, the greatest of:
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(i) |
200% of the aggregate amount of cash dividends declared payable by TransAlta on its Common Shares in its immediately preceding fiscal year;
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(ii) |
300% of the arithmetic mean of the aggregate amounts of the annual cash dividends declared payable by TransAlta on its Common Shares in its three immediately preceding fiscal years; and
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(iii) |
100% of the aggregate consolidated net income of TransAlta, before extraordinary items, for its immediately preceding fiscal year;
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(e) |
“
Associate
”, shall mean, when used to indicate a relationship with a specified Person, a spouse of that Person, any Person of the same or opposite sex with whom that Person is living in a conjugal relationship outside marriage, a child of that Person or a relative of that Person if that relative has the same residence as that Person;
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(f) |
A Person shall be deemed the “
Beneficial Owner
” of, and to have “
Beneficial Ownership
” of, and to “
Beneficially Own
”,
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(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;
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(ii) |
any securities as to which such Person or any of such Person’s Affiliates or Associates has the right or obligation to become the owner at law or in equity (where such right or obligation is exercisable immediately or within a period of 60 days, and whether or not on condition or the happening of any contingency or the making of any payment) (A) pursuant to any agreement, arrangement, pledge or understanding, whether or not in writing (other than (x) customary agreements with and between TransAlta and underwriters and/or banking group members and/or selling group
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members with respect to a distribution of securities by TransAlta or (y) pledges of securities in the ordinary course of the pledgee’s business), or (B) upon the purchase, conversion, exchange or exercise of any Convertible Security; or
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(iii) |
any securities which are Beneficially Owned within the meaning of Subsections 1.1(f)(i) and 1.1(f)(ii) by any other Person with whom such Person is acting jointly or in concert;
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(iv) |
such security has been, or has been agreed to be, deposited or tendered pursuant to a Lock-up Agreement, or is otherwise deposited or tendered, to any Take-Over Bid made by such Person, made by any of such Person’s Affiliates or Associates or made by any other Person acting jointly or in concert with such Person until such deposited or tendered security has been taken up or paid for, whichever shall first occur;
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(v) |
such Person, any of such Person’s Affiliates or Associates or any other Person acting jointly or in concert with such Person holds such security and:
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(A) |
the ordinary business of any such Person (the “
Investment Manager
”) includes the management of investment funds for others (which others, for greater certainty, may include or be limited to one or more employee benefit plans or pension plans) 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 (a “
Client
”), including non-discretionary accounts held on behalf of a Client by a broker or dealer appropriately registered under applicable law;
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(B) |
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 (each an “
Estate Account
”) or in relation to other accounts (each an “
Other Account
”) and holds such security in the ordinary course of such duties for such Estate Accounts or for such Other Accounts;
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(C) |
such Person is established by statute for purposes that include, and the ordinary business or activity of such Person (the “
Statutory Body
”) includes, the management of investment funds for employee benefit plans, pension plans, insurance plans or various public bodies and such security is held by the Statutory Body in the ordinary course of the management of such investment funds;
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(D) |
such Person (the “
Administrator
”) is the administrator or trustee of one or more pension funds or plans registered under the laws of Canada or any Province thereof, the laws of the United States of America or any State thereof or the corresponding laws of the jurisdiction by which such Plan is governed (a “
Plan
”), or is a Plan, and holds such security for the purposes of its activities as such Administrator or Plan;
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(E) |
such Person (the “
Crown Agent
”) is a Crown agent or agency; or
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(F) |
such Person (the “
Manager
”) is the manager or trustee of a mutual fund (“
Mutual Fund
”) that is registered or qualified to issue its securities to investors under the securities laws of any province of Canada or the laws of the United States of America or is a Mutual Fund and holds such security for the purposes of its activities as such Manager or Mutual Fund;
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(vi)
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such Person is (A) a Client of the same Investment Manager as another Person on whose account the Investment Manager holds such security, (B) an Estate Account or an Other Account of the same Trust Company as another Person on whose account the Trust Company holds such security, or (C) a Plan with the same Administrator as another Plan on whose account the Administrator holds such security;
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(vii)
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such Person is (A) a Client of an Investment Manager and such security is owned at law or in equity by the Investment Manager, (B) an Estate Account or an Other Account of a Trust Company and such security is owned at law or in equity by the Trust Company, or (C) a Plan and such security is owned at law or in equity by the Administrator of the Plan; or
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(viii)
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such Person is a registered holder of such security as a result of carrying on the business of, or acting as a nominee of, a securities depositary;
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(g) |
“
Board of Directors
” shall mean the board of directors of TransAlta or any duly constituted and empowered committee thereof;
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(h) |
“
Book Entry Form
” shall mean, in reference to securities, securities that have been issued and registered in uncertificated form and includes securities evidenced by an advice or other statement and securities which are maintained
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electronically on the records of TransAlta’s transfer agent but for which no certificate has been issued;
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(i) |
“
Book Entry Rights Exercise Procedures
” shall have the meaning ascribed thereto in Subsection 2.2(c);
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(j) |
“
Business Day
” shall mean any day other than a Saturday, Sunday or a day on which banking institutions in Calgary are authorized or obligated by law to close;
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(k) |
“
Canada Business Corporations Act
” shall mean the
Canada Business Corporations Act
, R.S.C. 1985, c. C-44 as amended, and the regulations made thereunder and any comparable or successor laws or regulations thereto;
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(l) |
“
Canadian Dollar Equivalent
” of any amount which is expressed in United States Dollars means, on any date, the Canadian dollar equivalent of such amount determined by multiplying such amount by the U.S. - Canadian Exchange Rate in effect on such date;
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(m) |
“
certificate
” shall have the meaning ascribed thereto in Section 2.8;
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(n) |
“
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 principal transfer office in Calgary of the transfer agent for the Common Shares (or, after the Separation Time, the principal transfer office in Calgary of the Rights Agent) is closed to the public; provided, however, that for the purposes of the definitions “Competing Permitted Bid” and “Permitted Bid”, “close of business” on any date means 11:59 p.m. (local time at the place of deposit) on such date (or, if such date is a Saturday, Sunday or statutory holiday in the applicable Canadian jurisdiction, 11:59 p.m. (local time at the place of deposit) on the next succeeding day that is not a Saturday, Sunday or statutory holiday in the applicable Canadian jurisdiction);
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(o) |
“
Common Share
” shall mean a common share in the capital of TransAlta and any other share of TransAlta into which such share may be subdivided, consolidated, reclassified or changed from time to time;
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(p) |
“
Competing Permitted Bid
”
shall mean a Take-over Bid that:
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(i) |
is made after any previous Permitted Bid or another Competing Permitted Bid has been made and prior to the expiry, termination or withdrawal of any such previous Permitted Bid or Competing Permitted Bid;
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(ii) |
satisfies all components of the definition of a Permitted Bid in Subsection 1.1(qq) other than the requirements set out in Subsection 1.1(qq)(ii)(A) of the definition of a Permitted Bid; and
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(iii) |
contains, and the take-up and payment for securities tendered or deposited thereunder is subject to, an irrevocable and unqualified condition that no Voting Shares and/or Convertible Securities will be taken up or paid for pursuant to the Take-over Bid prior to the close of business on the last day of the minimum initial deposit period that such
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Take-over Bid must remain open for deposits or tenders of securities thereunder pursuant to NI 62-104 after the date of the Take-over Bid constituting the Competing Permitted Bid;
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(q) |
“
controlled
”: a Person is “controlled” by another Person or two or more other Persons acting jointly or in concert if:
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(i) |
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 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
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(ii) |
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;
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(r) |
“
Convertible Security
” shall mean a security that is convertible, exercisable or exchangeable into a Voting Share (other than the Rights) or other securities which are directly or indirectly convertible, exercisable or exchangeable into Voting Shares, whether immediately or within or after a specified period and whether or not on condition or on the happening of any contingency or the making of any payment;
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(s) |
“
Convertible Security Acquisition
” shall mean the acquisition of Voting Shares by a Person upon the purchase, exercise, conversion or exchange of Convertible Securities acquired or received by such Person pursuant to a Permitted Bid Acquisition, an Exempt Acquisition or a Pro Rata Acquisition;
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(t) |
“
Co-Rights Agents
” shall have the meaning ascribed thereto in Subsection 4.1(a);
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(u) |
“
Disposition Date
” shall have the meaning ascribed thereto in Subsection 5.1(h);
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(v) |
“
Dividend Reinvestment Acquisition
” shall mean an acquisition of Voting Shares pursuant to a Dividend Reinvestment Plan;
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(w) |
“
Dividend Reinvestment Plan
” shall mean a regular dividend reinvestment or other plan of TransAlta made available by TransAlta to holders of its securities and to holders of securities of a Subsidiary of TransAlta, where such plan permits the holder to direct that some or all of:
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(i) |
dividends paid in respect of shares of any class of TransAlta or a Subsidiary;
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(ii) |
proceeds of redemption of shares of TransAlta or a Subsidiary;
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(iii) |
interest paid on evidences of indebtedness of TransAlta or a Subsidiary; or
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(iv) |
optional cash payments;
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(x) |
“
Effective Date
” shall mean the effective date of that arrangement under Section 192 of the
Canada Business Corporations Act
contemplated by TransAlta and Utilities, as described in that management proxy circular of Utilities to be dated on or about October 22, 1992, which effective date is expected to be December 31, 1992;
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(y) |
“
Election to Exercise
” shall have the meaning ascribed thereto in Subsection 2.2(e);
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(z) |
“
Entity
” shall mean any form of organization including a body corporate, corporation, limited partnership, partnership or trust;
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(aa) |
“
Exempt Acquisition
” shall mean an acquisition by a Person of Voting Shares and/or Convertible Securities:
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(i) |
in respect of which the Board of Directors has waived the application of Section 3.1 pursuant to the provisions of Subsection 5.1(a), 5.1(h) or 5.1(i);
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(ii) |
made as an intermediate step in a series of related transactions in connection with an acquisition by TransAlta or its Subsidiaries of a Person or assets, provided that the Person who acquires such securities distributes or is deemed to distribute such securities to its securityholders within ten Business Days of the completion of such acquisition, and as a result of such distribution no Person has become the Beneficial Owner of 20% or more of TransAlta’s then outstanding Voting Shares; or
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(iii) |
pursuant to an amalgamation, merger, reorganization, arrangement, business combination or other similar transaction (statutory or otherwise, but for greater certainty not including a Take-over Bid) that is conditional upon the approval of shareholders of TransAlta to be obtained prior to such Person acquiring such securities;
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(bb) |
“
Exercise Price
” shall mean, as of any date, the price at which a holder of a Right may purchase the securities issuable upon exercise of one whole Right which, until adjustment thereof in accordance with the terms hereof, shall be:
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(i) |
until the Separation Time, an amount equal to three times the Market Price, from time to time, per Common Share; and
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(ii) |
from and after the Separation Time, an amount equal to three times the Market Price, as at the Separation Time, per Common Share;
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(cc) |
“
Expansion Factor
” shall have the meaning ascribed thereto in Subsection 2.3(a);
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(dd) |
“
Expiration Time
” shall mean the earlier of:
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(i) |
the Termination Time; and
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(ii) |
unless a Flip-in Event has occurred (other than a Flip-in Event which has been waived pursuant to Subsection 5.1(a), 5.1(h) or 5.1(i) hereof) prior to the date upon which this Agreement would otherwise terminate pursuant to Section
5.16), the close of business on that date on which a Reconfirmation Meeting occurs at which this Agreement is not reconfirmed or presented for reconfirmation as contemplated by Section
5.16;
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(ee) |
“
Flip-in Event
” shall mean a transaction in or pursuant to which any Person becomes an Acquiring Person;
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(ff) |
“
Grandfathered Person
” shall have the meaning ascribed thereto in Subsection 1.1(a)(v);
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(gg) |
“
holder
” shall have the meaning ascribed thereto in Section 2.8;
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(hh) |
“
Independent Shareholders
” shall mean holders of Voting Shares, other than:
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(i) |
any Acquiring Person;
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(ii) |
any Offeror (other than any Person who by virtue of Subsection 1.1(f)(v)) is not deemed to Beneficially Own the Voting Shares held by such Person);
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(iii) |
any Affiliate or Associate of any Acquiring Person or Offeror;
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(iv) |
any Person acting jointly or in concert with any Acquiring Person or Offeror referred to in paragraph (ii) of this definition; and
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(v) |
any employee benefit plan, deferred profit sharing plan, stock participation plan and any other similar plan or trust for the benefit of employees of TransAlta or a Subsidiary of TransAlta unless the beneficiaries of the plan or trust direct the manner in which the Voting Shares are to be voted or withheld from voting or direct whether the Voting Shares are to be tendered to a Take-over Bid;
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(ii) |
“
Lock-up Agreement
” shall mean an agreement (the terms of which are publicly disclosed and a copy of which is made available to the public (including TransAlta):
|
(i) |
not later than the date on which the Lock-up Bid (as defined below) is publicly announced); or
|
(ii) |
if the Lock-up Bid has been made prior to the date on which such agreement has been entered into, forthwith and in any event not later than the Business Day following the date of such agreement;
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(A) |
where the price or value of the consideration per Voting Share or Convertible Security offered under such other Take-over Bid or transaction:
|
(I) |
exceeds the price or value of the consideration per Voting Share and/or Convertible Security offered under the Lock-up Bid; or
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(II) |
exceeds by as much as or more than a specified amount (the “
Specified Amount
”) the price or value of the consideration per Voting Share or Convertible Security at which the Locked-Up Person has agreed to deposit or tender Voting Shares and/or Convertible Securities to the Lock-up Bid, provided that such Specified Amount is not greater than 7% of the price or value of the consideration per Voting Share or Convertible Security offered under the Lock-up Bid; and
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(B) |
if the number of Voting Shares or Convertible Securities offered to be purchased under the Lock-up Bid is less than 100% of the Voting Shares or Convertible Securities held by Independent Shareholders, where the price or value of the consideration per Voting Share or Convertible Security offered under such other Take-over Bid or transaction is not less than the price or value of the consideration per Voting Share or Convertible Security offered under the Lock-up Bid and the number of Voting Shares and/or Convertible Securities to be purchased under such other Take-over Bid or transaction:
|
(I) |
exceeds the number of Voting Shares and/or Convertible Securities that the Offeror has offered to purchase under the Lock-up Bid; or
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(II) |
exceeds by as much as or more than a specified number (the “
Specified Number
”) the number of Voting Shares or Convertible Securities that the Offeror has offered to purchase under the Lock-up Bid, provided that the Specified Number is not greater than 7% of the number of Voting Shares or Convertible Securities offered to be purchased under the Lock-up Bid;
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(iii) |
the agreement does not provide for any “break-up fees”, “top-up fees”, penalties, expenses reimbursement or other amounts that exceed in the aggregate the greater of:
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(A) |
the cash equivalent of 2.5% of the price or value of the consideration payable under the Lock-up Bid to the Locked-up Person; and
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(B) |
50% of the amount by which the price or value of the consideration payable under another Take-over Bid or transaction to a Locked-up Person exceeds the consideration that such Locked-up Person would have received under the Lock-up Bid;
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(jj) |
“
Market Price
” per share of any securities on any date of determination shall mean the average of the daily closing prices per share of such securities (determined as 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 closing prices used to determine the Market Price on any Trading Days not to be fully comparable with the closing price on such date of determination or, if the date of determination is not a Trading Day, on the immediately preceding Trading Day, each such closing 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 closing price 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 share of any securities on any date shall be:
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(i) |
the closing board lot sale price or, in case no such sale takes place on such date, the average of the closing bid and asked prices for each of such securities as reported by the principal Canadian stock exchange on which such securities are listed or admitted to trading;
|
(ii) |
if for any reason none of such prices is available on such day or the securities are not listed or posted for trading on a Canadian stock exchange, the last sale price or, in case no such sale takes place on such date, the average of the closing bid and asked prices for each of such securities as reported by the principal national United States securities exchange on which such securities are listed or admitted to trading;
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(iii) |
if for any reason none of such prices is available on such day or the securities are not listed or admitted to trading on a Canadian stock exchange or a national United States securities exchange, 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 each of such securities in the over-the-counter market, as quoted by any reporting system then in use; or
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(iv) |
if for any reason none of such prices is available on such day or the securities are not listed or admitted to trading on a Canadian stock exchange or a national United States securities exchange or quoted by any such reporting system, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the securities;
|
(kk) |
“
NI 62-104
” shall mean National Instrument 62-104 –
Take-over Bids and Issuer Bids
adopted by the Canadian securities regulatory authorities, as amended, re-enacted or replaced from time to time, and any other comparable or successor laws or instruments thereto;
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(ll) |
“
Nominee
” shall have the meaning ascribed thereto in Subsection 2.2(d);
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(mm) |
“
Offer to Acquire
” shall include:
|
(i) |
an offer to purchase or a solicitation of an offer to sell, and
|
(ii) |
an acceptance of an offer to sell, whether or not such offer to sell has been solicited,
|
(nn) |
“
Offeror
” shall mean a Person who has announced, and has not withdrawn, an intention to make or who is making, and has not withdrawn, a Take-over Bid, other than a Person who has completed a Permitted Bid, a Competing Permitted Bid or an Exempt Acquisition;
|
(oo) |
“
Offeror’s Securities
” shall mean Voting Shares Beneficially Owned by an Offeror on the date of the Offer to Acquire Voting Shares and/or Convertible Securities;
|
(pp) |
“
Original Agreement
” shall have the meaning ascribed thereto in the recitals to this Agreement;
|
(qq) |
“
Permitted Bid
” shall mean a Take-over Bid made by way 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 Voting Shares as registered on the books of TransAlta, other than the Offeror;
|
(ii) |
the Take-over Bid contains, and the take-up and payment for securities tendered or deposited thereunder is subject to, an irrevocable and unqualified provision that no Voting Shares and/or Convertible Securities will be taken up or paid for pursuant to the Take-over Bid:
|
(A) |
prior to the close of business on the date which is not less than 105 days following the date of the Take-over Bid or such shorter minimum deposit period that a take-over bid (that is not exempt from any requirements of Division 5 (Bid Mechanics) of NI 62-104) must remain open for deposits of securities, in the applicable circumstances at such time, pursuant to NI 62-104; and
|
(B) |
then only if, at the close of business on the date the Voting Shares and/or Convertible Securities are first taken up and/or paid for under such Take-over Bid, more than 50% of the Voting Shares held by Independent Shareholders have been deposited or tendered to the Take-over Bid and not withdrawn;
|
(iii) |
unless the Take-over Bid is withdrawn, the Take-over Bid contains an irrevocable and unqualified provision that Voting Shares and/or Convertible Securities, as applicable, may be deposited or tendered to such Take-over Bid at any time during the period of time described in
|
Subsection 1.1(qq)(ii)(A) and that any Voting Shares and/or Convertible Securities deposited pursuant to the Take-over Bid may be withdrawn until taken up and paid for; and
|
(iv) |
the Take-over Bid contains an irrevocable and unqualified provision that in the event that the deposit condition set forth in Subsection 1.1(qq)(ii)(B) above is satisfied, the Offeror shall make a public announcement of that fact and the Take-over Bid shall remain open for deposits and tenders of Voting Shares and/or Convertible Securities, as applicable, for not less than ten days from the date of such public announcement;
|
(rr) |
“
Permitted Bid Acquisition
” shall mean an acquisition of Voting Shares and/or Convertible Securities of any class made pursuant to a Permitted Bid or a Competing Permitted Bid;
|
(ss) |
“
Person
” shall include an individual, body corporate, firm, partnership, syndicate or other form of unincorporated association, trust, trustee, executor, administrator, legal personal representative, group, joint venture, a government and its agencies or instrumentalities and any entity or group whether or not having legal personality;
|
(tt) |
“
Privacy Laws
” shall have the meaning ascribed thereto in Section 5.19;
|
(uu) |
“
Pro Rata Acquisition
” shall mean an acquisition by a Person of Voting Shares and/or Convertible Securities pursuant to:
|
(i) |
a Dividend Reinvestment Acquisition;
|
(ii) |
a stock dividend, stock split or other event in respect of securities of TransAlta of one or more particular classes or series pursuant to which such Person becomes the Beneficial Owner of Voting Shares and/or Convertible Securities on the same pro rata basis as all other holders of securities of the particular class, classes or series;
|
(iii) |
the acquisition or the exercise by the Person of only those rights to purchase Voting Shares and/or Convertible Securities distributed directly by TransAlta to that Person (and not acquired from any other Person) in the course of a distribution to all holders of securities of TransAlta (other than holders resident in any jurisdiction where the distribution or exercise of such rights is restricted or impractical as a result of applicable law) of one or more particular classes or series pursuant to a rights offering or pursuant to a prospectus, provided that the Person does not thereby acquire a greater percentage of Voting Shares or Convertible Securities so offered than the Person’s percentage of Voting Shares Beneficially Owned immediately prior to such acquisition or exercise; or
|
(iv) |
a distribution of Voting Shares and/or Convertible Securities made pursuant to a prospectus or by way of a private placement or a conversion or exchange of any Convertible Security, provided that the Person does not thereby acquire a greater percentage of Voting Shares or Convertible Securities so offered than the Person’s percentage of Voting Shares Beneficially Owned prior to such acquisition;
|
(vv) |
“
Reconfirmation Meeting
” shall have the meaning ascribed thereto in Section 5.16;
|
(ww) |
“
Record Time
” shall have the meaning ascribed thereto in the recitals to this Agreement;
|
(xx) |
“
Redemption Price
” shall have the meaning ascribed thereto in Section 5.1(b);
|
(yy) |
“
Right
” shall mean a right to purchase a Common Share, upon the terms and subject to the conditions set forth in this Agreement;
|
(zz) |
“
Rights Agent
” shall mean AST Trust Company (Canada), its successors or permitted assigns;
|
(aaa) |
“
Rights Certificate
” shall mean the certificates representing the Rights after the Separation Time, which shall be substantially in the form attached hereto as Attachment 1;
|
(bbb) |
“
Rights Holders’ Special Meeting
” shall mean a meeting of the holders of Rights called by the Board of Directors for the purpose of approving a supplement or amendment to this Agreement pursuant to Subsection 5.4(c);
|
(ccc) |
“
Rights Plan
” shall have the meaning ascribed thereto in the recitals to this Agreement;
|
(ddd) |
“
Rights Register
” and “
Rights Registrar
” shall have the respective meanings ascribed thereto in Subsection 2.6(a);
|
(eee) |
“
Securities Act (Ontario)
” shall mean the Securities Act, R.S.O. 1990, c.S.5, as amended, and the regulations and rules thereunder, and any comparable or successor laws or regulations thereto;
|
(fff) |
“
Separation Time
” shall mean, subject to Section 5.1(h), the close of business on the tenth Trading 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 TransAlta or any Subsidiary of TransAlta) to commence a Take-over Bid (other than a Permitted Bid or a Competing Permitted Bid); and
|
(iii) |
the date on which a Permitted Bid or Competing Permitted Bid ceases to be such;
|
(ggg) |
“
Special Meeting
” shall mean a special meeting of the holders of Voting Shares, called by the Board of Directors for the purpose of approving a supplement or amendment to this Agreement pursuant to Subsection 5.4(b);
|
(hhh) |
“
Specified Amount
” shall have the meaning ascribed thereto in Subsection 1.1(ii)(ii)(A)(II);
|
(iii) |
“
Specified Number
” “shall have the meaning ascribed thereto in Subsection 1.1(ii)(ii)(B)(II);
|
(jjj) |
“
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 5.2(1) of NI 62-104 or Section 13(d) of the
U.S. Exchange Act
) by TransAlta or an Acquiring Person of facts indicating that Person has become an Acquiring Person;
|
(kkk) |
“
Subsidiary
”: shall mean an Entity which in relation to another Entity:
|
(i) |
is controlled by:
|
(A) |
that other, or
|
(B) |
that other and one or more Entities, each of which is controlled by that other; or
|
(C) |
two or more Entities, each of which is controlled by that other, or
|
(ii) |
is a Subsidiary of an Entity that is that other’s Subsidiary;
|
(lll) |
“
Take-over Bid
” shall mean an Offer to Acquire Voting Shares and/or Convertible Securities if, assuming that the Voting Shares and/or Convertible Securities subject to the Offer to Acquire are acquired and are Beneficially Owned at the date of such Offer to Acquire by the Person making such Offer to Acquire, such Voting Shares (including Voting Shares that may be acquired upon conversion, exercise or exchange of the Convertible Securities) together with the Offeror’s Securities, constitute in the aggregate 20% or more of the outstanding Voting Shares at the date of the Offer to Acquire;
|
(mmm)
|
“
Termination Time
” shall mean the time at which the right to exercise Rights shall terminate pursuant to Section 5.1(e);
|
(nnn) |
“
Trading Day
”, when used with respect to any securities, shall mean a day on which the principal Canadian stock 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 Canadian stock exchange, a Business Day;
|
(ooo) |
“
TransAlta
” shall mean TransAlta Corporation, a corporation subject to the
Canada Business Corporations Act
;
|
(ppp) |
“
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 for the conversion of one United States dollar into Canadian dollars, such rate; or
|
(ii) |
in any other case, the rate for such date for the conversion of one United States dollar into Canadian dollars calculated in such manner as may be determined by the Board of Directors from time to time acting in good faith;
|
(qqq) |
“
U.S. Exchange Act
” shall mean the United States Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder as from time to time in effect, and any comparable or successor laws, rules or regulations thereto;
|
(rrr) |
“
U.S. Securities Act
” shall mean the United States Securities Act of 1933, as amended, and the rules and regulations thereunder as from time to time in effect, and any comparable or successor laws, rules or regulations thereto;
|
(sss) |
“
Utilities
” shall mean TransAlta Utilities Corporation, a corporation subject to the
Canada Business Corporations Act
;
|
(ttt) |
“
Utilities Common Shares
” shall mean common shares in the capital of Utilities;
|
(uuu) |
“
Voting Share Reduction
” shall mean an acquisition or redemption by TransAlta or a Subsidiary of TransAlta of Voting Shares which, by reducing the number of Voting Shares outstanding, increases the percentage of outstanding Voting Shares Beneficially Owned by any Person to 20% or more of the Voting Shares then outstanding; and
|
(vvv) |
“
Voting Shares
” shall mean the Common Shares and any other shares in the capital of TransAlta entitled to vote generally in the election of all directors.
|
1.2 |
Currency
|
1.3 |
Headings
|
1.4 |
Number and Gender
|
1.5 |
References to this Agreement
|
1.6 |
Calculation of Number and Percentage of Beneficial Ownership of Outstanding Voting Shares
|
A=
|
the number of votes for the election of all directors generally attaching to the Voting Shares Beneficially Owned by such Person; and
|
B=
|
the number of votes for the election of all directors generally attaching to all outstanding Voting Shares.
|
1.7 |
Acting Jointly or in Concert
|
1.8 |
Generally Accepted Accounting Principles
|
2.1 |
Legend on Certificates
|
2.2 |
Initial Exercise Price; Exercise of Rights; Detachment of Rights
|
(i) |
the Rights shall not be exercisable and 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 (which certificate shall also be deemed to represent a Rights Certificate) or by Book Entry Form registration for the associated Common Share and will be transferable only together with, and will be transferred by a transfer of, such associated Common Share of TransAlta.
|
(i) |
the Rights shall be exercisable; and
|
(ii) |
the registration and transfer of Rights shall be separate from and independent of Common Shares of TransAlta.
|
(x) |
a Rights Certificate 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 TransAlta may deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any law, rule, regulation or judicial or administrative order or with any rule or regulation made pursuant thereto or with any rule or regulation of any self-regulatory organization, stock exchange or 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,
|
(i) |
the Rights Certificate evidencing such Rights;
|
(ii) |
an election to exercise such Rights (an “
Election to Exercise
”) substantially in the form attached to the Rights Certificate appropriately completed and executed by the holder or his executors or administrators or other personal representatives or his or their legal attorney duly appointed by an instrument in writing in form and executed in a manner satisfactory to the Rights Agent; and
|
(iii) |
payment by certified cheque, banker’s draft, money order or wire transfer payable to the order of TransAlta, 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 other governmental 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.
|
(i) |
requisition from the transfer agent certificates representing the number of such Common Shares to be purchased (TransAlta hereby irrevocably authorizing its transfer agents to comply with all such requisitions);
|
(ii) |
when appropriate, and subject to Section 5.5, requisition from TransAlta the amount of cash to be paid in lieu of issuing fractional Common Shares;
|
(iii) |
after receipt of the certificates referred to in Subsection 2.2(f)(i), 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;
|
(iv) |
when appropriate, after receipt, deliver the cash referred to in Subsection 2.2(f)(ii) to or to the order of the registered holder of such Rights Certificate; and
|
(v) |
remit to TransAlta all payments received on exercise of the Rights.
|
(i) |
take all such action as may be necessary and within its power to ensure that all Common Shares delivered upon exercise of Rights shall, at the time of delivery of the certificates representing such Common 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 the requirements of the
Canada Business Corporations Act
, the Securities Act (Ontario), the
U.S. Exchange Act
, the
U.S. Securities Act
, and the securities laws or comparable legislation of each of the other provinces and territories of Canada and the states of the United States of America, and any other applicable law, rule or regulation, in connection with the issuance and delivery of Rights, the Rights Certificates and the issuance of any Common Shares upon exercise of Rights;
|
(iii) |
use reasonable efforts to cause all Common Shares issued upon exercise of Rights to be listed on the principal stock exchanges on which such Common Shares were traded immediately prior to the Stock Acquisition Date;
|
(iv) |
cause to be reserved and kept available out of the 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;
|
(v) |
pay when due and payable, if applicable, any and all federal, provincial and municipal transfer taxes and charges (not including any income or capital taxes of the holder or exercising holder or any liability of TransAlta to withhold tax) which may be payable in respect of the original issuance or delivery of the Rights Certificates, or certificates for Common Shares to be issued upon exercise of any Rights, provided that TransAlta shall not be required to pay any transfer tax or other governmental 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 transferred or exercised; and
|
(vi) |
after the Separation Time, except as permitted by Section 5.1 or Section 5.4, not take (or permit any Subsidiary of TransAlta to take) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended to be afforded by the Rights.
|
2.3 |
Adjustments to Exercise Price; Number of Rights
|
(a) |
In the event TransAlta shall at any time after the date of this Agreement:
|
(i) |
declare or pay a dividend on Common Shares payable in Common Shares (or Convertible Securities in respect thereof or other securities of TransAlta) other than pursuant to any Dividend Reinvestment Plan;
|
(ii) |
subdivide or change the then outstanding Common Shares into a greater number of Common Shares;
|
(iii) |
consolidate or change the then outstanding Common Shares into a smaller number of Common Shares; or
|
(iv) |
issue any Common Shares (or Convertible Securities in respect thereof or other securities of TransAlta) in respect of, in lieu of or in exchange for existing Common Shares except as otherwise provided in this Section 2.3,
|
(x) |
the Exercise Price in effect after such adjustment will 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, consolidation or issuance would hold thereafter as a result thereof; and
|
(y) |
each Right held prior to such adjustment will become that number of Rights equal to the Expansion Factor,
|
(b) |
In the event TransAlta shall at any time after the Record Time and prior to the Separation Time fix a record date for the issuance of rights, options or warrants to all holders of Common Shares 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, if a Convertible Security in respect of Common Shares, having a conversion, exchange or exercise price per share, including the price required to be paid to purchase such Convertible Security) less than the Market Price per Common Share on such record date, the Exercise Price to be in effect
|
after such record date shall be determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction:
|
(i) |
the numerator of which shall be the number of Common Shares outstanding on such record date, plus the number of Common Shares that 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 Security, including the price required to be paid to purchase such Convertible Security) would purchase at such Market Price per Common Share; and
|
(ii) |
the denominator of which 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 Security so to be offered are initially convertible, exchangeable or exercisable).
|
(c) |
In the event TransAlta shall at any time after the Record Time and prior to the Separation Time fix a record date for the making of a distribution to all holders of Common Shares (including any such distribution made in connection with a merger or amalgamation) of evidences of indebtedness, cash (other than an annual cash dividend or a dividend paid in Common Shares, but including any dividend payable in securities other than Common Shares), assets or rights, options or warrants (excluding those referred to in Subsection 2.3(b) hereof), the Exercise Price to be in effect after such record date shall be determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction:
|
(i) |
the numerator of which shall be the Market Price per Common Share on such record date, less the fair market value (as determined in good faith by the Board of Directors, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and the holders of Rights), on a per share basis, of the portion of the cash, assets, evidences of indebtedness, rights, options or warrants so to be distributed; and
|
(ii) |
the denominator of which shall be such Market Price per Common Share.
|
(d) |
Notwithstanding anything herein to the contrary, no adjustment in the Exercise Price shall be required unless such adjustment would require an increase or decrease of at least one percent in the Exercise Price; provided, however, that any adjustments which by reason of this Subsection 2.3(d) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under Section 2.3 shall be made to the nearest cent or to the nearest ten-thousandth of a share. Notwithstanding the first sentence of Subsection 2.3(d), any adjustment required by Section 2.3 shall be made no later than the earlier of:
|
(i) |
three years from the date of the transaction which gives rise to such adjustment; or
|
(ii) |
the Expiration Time.
|
(e) |
In the event TransAlta shall at any time after the Record Time and prior to the Separation Time issue any shares of capital stock (other than Common Shares), or rights, options or warrants to subscribe for or purchase any such capital stock, or Convertible Security for any such capital stock, in a transaction referred to in Subsections 2.3(a)(i) or 2.3(a)(iv) above, if the Board of Directors acting in good faith determines that the adjustments contemplated by Subsections 2.3(a), 2.3(b) and 2.3(c) above in connection with such transaction will not appropriately protect the interests of the holders of Rights, the Board of Directors may determine what other adjustments to the Exercise Price, number of Rights and/or securities purchasable upon exercise of Rights would be appropriate and, notwithstanding Subsections 2.3(a), 2.3(b) and 2.3(c) above, such adjustments, rather than the adjustments contemplated by Subsections 2.3(a), 2.3(b) and 2.3(c) above, shall be made. Subject to the prior consent of the holders of the Voting Shares or the Rights obtained as set forth in Subsection 5.4(b) or 5.4(c), TransAlta and the Rights Agent shall have authority to amend this Agreement as appropriate to provide for such adjustments.
|
(f) |
Each Right originally issued by TransAlta subsequent to any adjustment made to the Exercise Price hereunder shall evidence the right to purchase, at the adjusted Exercise Price, the number of Common Shares purchasable from time
|
to time hereunder upon exercise of a Right immediately prior to such issue, all subject to further adjustment as provided herein.
|
(g) |
Irrespective of any adjustment or change in the Exercise Price or the number of Common Shares issuable upon the exercise of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Exercise Price per Common Share and the number of Common Shares which were expressed in the initial Rights Certificates issued hereunder.
|
(h) |
In any case in which this Section 2.3 shall require that an adjustment in the Exercise Price be made effective as of a record date for a specified event, TransAlta may elect to defer until the occurrence of such event the issuance to the holder of any Right exercised after such record date the number of Common Shares and other securities of TransAlta, if any, issuable upon such exercise over and above the number of Common Shares and other securities of TransAlta, if any, issuable upon such exercise on the basis of the Exercise Price in effect prior to such adjustment; provided, however, that TransAlta shall deliver to such holder an appropriate instrument evidencing such holder’s right to receive such additional shares (fractional or otherwise) or other securities upon the occurrence of the event requiring such adjustment.
|
(i) |
Notwithstanding anything contained in this Section 2.3 to the contrary, TransAlta shall be entitled to make such reductions in the Exercise Price, in addition to those adjustments expressly required by this Section 2.3, as and to the extent that in their good faith judgment the Board of Directors shall determine to be advisable, in order that any:
|
(i) |
consolidation or subdivision of Common Shares;
|
(ii) |
issuance (wholly or in part for cash) of Common Shares or securities that by their terms are convertible into or exchangeable for Common Shares;
|
(iii) |
stock dividends; or
|
(iv) |
issuance of rights, options or warrants referred to in this Section 2.3,
|
(j) |
Whenever an adjustment to the Exercise Price or a change in the securities purchasable upon exercise of the Rights is made pursuant to this Section 2.3, TransAlta shall promptly and in any event, where such change or adjustment occurs prior to the Separation Time, not later than the Separation Time:
|
(i) |
file with the Rights Agent and with each transfer agent for the Common Shares a certificate specifying the particulars of such adjustment or change; and
|
(ii) |
cause notice of the particulars of such adjustment or change to be given to the holders of the Rights.
|
2.4 |
Date on Which Exercise Is Effective
|
2.5 |
Execution, Authentication, Delivery and Dating of Rights Certificates
|
(a) |
The Rights Certificates shall be executed on behalf of TransAlta by its Chair, the President, the Chief Executive Officer, the Chief Financial Officer or any Vice Presidents, together with any other of such Persons or together with any one of the Secretary or the Treasurer. 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 TransAlta shall bind TransAlta, notwithstanding that such individuals or any of them have ceased to hold such offices either before or after the countersignature and delivery of such Rights Certificates.
|
(b) |
Promptly after TransAlta learns of the Separation Time, TransAlta will notify the Rights Agent of such Separation Time and will deliver Rights Certificates executed by TransAlta to the Rights Agent for countersignature, and the Rights Agent shall countersign (manually or by facsimile in a manner satisfactory to TransAlta) and send such Rights Certificates to the holders of the Rights pursuant to Subsection 2.2(d) hereof. No Rights Certificate shall be valid for any purpose until countersigned by the Rights Agent as aforesaid.
|
(c) |
Each Rights Certificate shall be dated the date of countersignature thereof.
|
2.6 |
Registration, Transfer and Exchange
|
2.7 |
Mutilated, Destroyed, Lost and Stolen Rights Certificates
|
(i) |
evidence to their reasonable satisfaction of the destruction, loss or theft of any Rights Certificate; and
|
(ii) |
such security or indemnity in amount and form as may be reasonably required by them to save each of them and any of their agents harmless,
|
2.8 |
Persons Deemed Owners of Rights
|
2.9 |
Delivery and Cancellation of Certificates
|
2.10 |
Agreement of Rights Holders
|
(a) |
to 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) |
that prior to the Separation Time, each Right will be transferable only together with, and will be transferred by a transfer of, the associated Voting Share certificate representing such Right;
|
(c) |
that after the Separation Time, the Rights Certificates will be transferable only on the Rights Register as provided herein;
|
(d) |
that prior to due presentment of a Rights Certificate (or, prior to the Separation Time, the associated Common Share certificate) for registration of transfer, TransAlta, the Rights Agent and any agent of TransAlta 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 TransAlta or the Rights Agent) for all purposes whatsoever, and neither TransAlta nor the Rights Agent shall be affected by any notice to the contrary;
|
(e) |
that such holder of Rights is not entitled to receive any fractional Rights or any fractional shares or other securities upon exercise of a Right (except as provided herein);
|
(f) |
that notwithstanding anything in this Agreement to the contrary, neither TransAlta 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 any governmental authority, prohibiting or otherwise restraining performance of such obligation; and
|
(g) |
that, subject to the provisions of Section 5.4, without the approval of any holder of Rights or Voting Shares and upon the sole authority of the Board of Directors acting in good faith, this Agreement may be supplemented or amended from time to time pursuant to and as provided herein.
|
2.11 |
Rights Certificate Holder Not Deemed a Shareholder
|
3.1 |
Flip-in Event
|
(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 or other successor in title of Rights, directly or indirectly, from 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), where such transferee becomes a transferee concurrently with or subsequent to the Acquiring Person becoming such in a transfer that the Board of Directors 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 an Acquiring Person or any Associate or Affiliate of an Acquiring Person), that has the purpose or effect of avoiding Subsection 3.1(b)(i),
|
4.1 |
General
|
4.2 |
Merger, Amalgamation or Consolidation or Change of Name of Rights Agent
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4.3 |
Duties of Rights Agent
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(a) |
The Rights Agent, at the expense of TransAlta, may consult with and retain legal counsel (who may be legal counsel for TransAlta) and such other experts as it shall reasonably consider necessary to perform its duties hereunder, and the opinion of such counsel or other expert 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;
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(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 TransAlta 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 Chair, the President, the Chief Executive Officer, the Chief Financial Officer, a Vice President or the Secretary of TransAlta 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;
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(c) |
The Rights Agent will be liable hereunder for its own negligence, bad faith or wilful misconduct;
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(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 TransAlta only;
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(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 certificate for a Common Share or Rights Certificate (except its countersignature thereof); nor will it be responsible for any breach by TransAlta 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 Subsection 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
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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;
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(f) |
TransAlta 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;
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(g) |
The Rights Agent is hereby authorized and directed to accept instructions in writing with respect to the performance of its duties hereunder from any individual believed by the Rights Agent to be the Chair, the President, the Chief Executive Officer, the Chief Financial Officer, a Vice President or the Secretary of TransAlta, and to apply to such individuals 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 accordance with instructions of any such individual;
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(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 TransAlta or become pecuniarily interested in any transaction in which TransAlta may be interested, or contract with or lend money to TransAlta 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 TransAlta or Utilities or for any other legal entity; and
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(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 TransAlta resulting from any such act, omission, default, neglect or misconduct, provided reasonable care was exercised in the selection and continued employment thereof.
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4.4 |
Change of Rights Agent
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4.5 |
Compliance with Anti-Money Laundering Legislation
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5.1 |
Redemption and Waiver
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5.2 |
Expiration
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5.3 |
Issuance of New Rights Certificates
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5.4 |
Supplements and Amendments
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(i) |
if made before the Separation Time, be submitted to the holders of Voting Shares 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;
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(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 TransAlta and the holders of Rights may, by resolution passed by the majority referred to in Subsection 5.4(d), confirm or reject such amendment.
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5.5 |
Fractional Rights and Fractional Shares
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5.6 |
Rights of Action
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5.7 |
Regulatory Approvals
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5.8 |
Declaration as to Non-Canadian or Non-U.S. Holders
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5.9 |
Notices
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5.10 |
Costs of Enforcement
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5.11 |
Successors
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5.12 |
Benefits of this Agreement
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5.13 |
Governing Law
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5.14 |
Severability
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5.15 |
Effective Date
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5.16 |
Reconfirmation and Approval
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5.17 |
Actions by the Board of Directors
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5.18 |
Fiduciary Duties of the Directors
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5.19 |
Privacy Legislation
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5.20 |
Language
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5.21 |
Time of the Essence
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5.22 |
Execution in Counterparts
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TRANSALTA CORPORATION
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||||
by
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/s/ Kerry O'Reilly | |||
Name:
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Kerry O'Reilly | |||
Title:
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Chief Legal & Compliance Officer | |||
/s/ Scott Jeffers | ||||
Name:
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Scott Jeffers | |||
Title:
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Corporate Secretary |
AST TRUST COMPANY (CANADA)
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||||
by
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/s/ Kirsten Dillon | |||
Name:
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Kirsten Dillon | |||
Title:
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Relationship Manager | |||
/s/ Nazim Nathoo | ||||
Name:
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Nazim Nathoo | |||
Title:
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Director, Relationship Management, Client Services |
Certificate No.
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Rights
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By:
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By:
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|||
(President)
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(Secretary)
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By:
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||||
Authorized Signature
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Signature
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Signature Guaranteed:
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(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.)
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Signature
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Signature
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Signature Guaranteed:
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(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.)
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Signature
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