CT· 2CO(o -ccg THE COMPETITION TRIBUNAL IN THE MATTER OF the Competition Act R.S.C. 1985, c. C-34 as amended; AND IN THE MATIER OF the proposed acquisition by Bell Globemedia Inc. ("BGM") of shares of CHUM Limited ("CHUM");
AND IN THE MA TIER OF the filing and registration ofa Consent Interim Agreement (the "Agreement") pursuant to section 105 of the Competition Act (the "Act").
BETWEEN: THE COMMISSIONER OF COMPETITION - and-BELL GLOBEMEDIA INC. -and-CHUM LIMITED -and-JOHN D. MCKELLAR C.M., Q.C.
CONSENT INTERIM AGREEMENT Jonathan Cbaplan, counsel to the Commissioner of Competition Tel: 819-953-3895 Fax: 819-953-9267
Lorne Ptack, counsel to the Commissioner of Competition Telephone: (819) 956-689 l Facsimile: (819) 953-9267
Department of Justice, Competition Law Division Place du Portage, Phase I
50 Victoria Street Gatineau, Quebec, Canada KI A OC9
THE COMPETITION TRIBUNAL
IN THE MATTER OF the Competition Act R.S.C. 1985, c. C-34 as amended; AND IN THE MATTER OF the proposed acquisition by Bell Globemedia Inc. ("BGM") of shares of CHUM Limited ("CHUM");
AND IN THE MATTER OF the filing and registration of a Consent Interim Agreement (the "Agreement") pursuant to section 105 of the Competition Act (the "Act").
BETWEEN: THE COMMISSIONER OF COMPETITION -and-BELL GLOBEMEDIA INC. -and-CHUM LIMITED -and-JOHN D. MCKELLAR C.M., Q.C.
CONSENT INTERIM AGREEMENT WHEREAS Bell Globemedia Acquisition Corporation has made an offer dated July 26, 2006 (the "Offer") to acquire the voting shares of CHUM;
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AND WHEREAS pursuant to the Offer and subject to the required regulatory approvals, BGM will purchase voting shares of CHUM (the "Transaction");
AND WHEREAS BGM and John D. McKellar, C.M., Q.C., of the City of Toronto (the "Trustee") have entered into a voting trust agreement dated July 19, 2006, which provides that the CHUM voting shares acquired pursuant to the Offer will be deposited with the Trustee and held by the Trustee for the benefit of BGM;
AND WHEREAS BGM and CHUM have complied with the pre-merger notification provisions of the Act and BGM is ready to complete the Transaction;
AND WHEREAS the Commissioner of Competition (the "Commissioner") has not completed her review of the Transaction and, upon completion of such review, may make application under section 92 of the Act with respect to the Transaction;
AND WHEREAS BGM, CHUM and the Trustee attom to the jurisdiction of the Competition Tribunal for the purposes of this Agreement and any proceeding initiated by the Commissioner relating to this Agreement, including an application to vary or rescind this Agreement under section I 06 of the Act;
AND WHEREAS the Commissioner, BGM, CHUM and the Trustee agree that, upon the signing of this Agreement, it shall be filed with the Tribunal for immediate registration.
NOW THEREFORE the Commissioner, BGM, CHUM and the Trustee agree as follows:
I. DEFINITIONS I. For the purposes of this Agreement, the following boldface terms have the following meanings:
(a) "Affiliate" has the meaning given to it in subsection 2(2) of the Act; (b) "Aereement" means this Consent Interim Agreement entered by the Commissioner, BGM, CHUM and the Trustee pursuant to section 105 of the Act;
(c) "BGM" means Bell Globemedia Inc., Bell Globemedia Acquisition Corporation, and their respective Affiliates, and includes their respective directors, officers, employees, agents, representatives, or other Persons acting
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for or on behalf of such entities with respect to any of the matters referred to in this Agreement, and any successors and assigns;
(d) "CHUM" means CHUM Limited, and its Affiliates, and includes its directors, officers, employees, agents, representatives, or other Persons acting for or on behalf of CHUM with respect to any of the matters referred to in this Agreement, and any successors and assigns of CHUM;
(e) "Commissioner" means the Commissioner of Competition appointed pursuant to section 7 of the Act;
(f) "Confidential Information" means competitively sensitive information of BGM or CHUM not independently known to a Person from sources other than BGM or CHUM, and without limiting the generality of the foregoing, includes competitively sensitive information pertaining to:
(i) broadcasting content or negotiations for broadcasting content; (ii) the identity of any of BGM or CHUM's advertisers or prospective advertisers; (iii) BGM or CHUM' s advertising rates, advertising rate policies and advertising inventory;
(g) "Hold Separate Period" means the period of time commencing on the date hereof and ending on the date that the Voting Trust Agreement is no longer in effect;
(h) "Person" means any individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity;
(i) "Shares" means the voting shares of CHUM, also referred to as common shares;
G) "Transaction" means the purchase of the Shares by BGM pursuant to the Offer;
(k) "Tribunal" means the Competition Tribunal established by the Competition Tribunal Act (Canada), R.S.C. 1985, c. 19 (2nd Supp.), as amended;
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(I) "Trustee" means John D. McKellar, C.M., Q.C., of the City of Toronto, and any successor as appointed under the terms of the Voting Trust Agreement, as well as any agents, employees or Persons under the Trustee's management or control for the purposes of the Voting Trust Agreement and/or this Agreement; and,
(m) "Voting Trust Agreement" means the voting trust agreement dated July l 9 1 h, 2006, a copy of which is attached hereto. II. APPLICATION 2. The provisions of this Agreement apply to: (a) BGM; (b) CHUM; (c) the Commissioner; and, ( d) the Trustee. 3. The rights and obligations of BGM and the Trustee pursuant to this Agreement do not derogate from the rights and obligations of BGM and the Trustee pursuant to the Voting Trust Agreement or vice versa.
4. BGM shall be responsible for all fees and expenses incurred by the Trustee in compliance with this Agreement.
5. Except as provided in paragraphs 6, 7 and 8 below, during the Hold Separate Period, neither the Trustee nor CHUM shall communicate to BGM any Confidential Information of CHUM, and BGM shall not communicate any Confidential Information of BGM to the Trustee or CHUM.
6. Notwithstanding paragraph 5 above, the Trustee and CHUM may, upon request, communicate Confidential Information of CHUM to external legal, financial, accounting and other advisers to BGM (collectively "BGM Advisers") or senior officers or employees ofBGM or its Affiliates (collectively "Permitted BGM Persons") who require such information for the purpose of:
(a) the matters referred to in paragraphs 4(a)(ix)(A), (B), (C), and (D) of the Voting Trust Agreement; or
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(b) preparing required financial and regulatory reports, tax returns and benefits administration and to comply with applicable law and the requirements of Canadian governmental authorities;
provided that the BGM Advisers and the Permitted BGM Persons shall use such Confidential Information of CHUM solely in connection with the matters referred to in paragraphs (a) and (b) above, as the case may be, and provided further that, prior to the communication of such Confidential Information of CHUM to BGM Advisers or Permitted BGM Persons, such BGM Advisers (other than external legal counsel) and Permitted BGM Persons shall provide to the Trustee or CHUM as the case may be, and to the Commissioner (in accordance with paragraph 7 below), a written acknowledgement, in a form acceptable to the Commissioner (acting reasonably), that they have been provided with a copy of this Agreement and undertake to use such Confidential Information of CHUM solely in connection with the matters referred to in subparagraphs (a) and (b) above, as the case may be, and not to otherwise disclose such Confidential Information.
7. Within either 24 hours or on the next business day (whichever is latest), the written acknowledgment described in paragraph 6 shall be provided to the Commissioner with a written description of the nature of the Confidential Information of CHUM. Where a BGM Adviser or a Permitted BGM Person who has signed a written acknowledgment receives additional Confidential Information of CHUM, within either 24 hours or on the next business day (whichever is latest), a written description of the nature of the additional Confidential Information of CHUM shall be provided to the Commissioner.
8. The provisions of paragraphs 6 and 7 shall apply mutatis mutandis to the communication of Confidential Information of BGM to external legal, financial, accounting and other advisers to CHUM.
9. BGM, CHUM and the Trustee shall promptly provide to the Commissioner copies of all information provided by any of them to the CRTC in connection with CRTC approval (as defined in the Voting Trust Agreement).
10. If the Trustee removes a director pursuant to paragraph 4(a)(ii) of the Voting Trust Agreement, he shall promptly inform the Commissioner of such action and the reasons therefore.
11. BGM shall not take any action to interfere with or impede the Trustee's ability to comply with this Agreement.
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17. Notices, reports and other communications in writing required pursuant to this Agreement shall be considered to have been given as if dispatched by personal delivery, registered mail or facsimile transmission to the parties as follows:
(a) If the Commissioner: Competition Bureau Industry Canada Place du Portage, 21st floor 50 Victoria Street, Phase I Gatineau, Quebec K 1A OC9 Attention: Senior Deputy Commissioner (Mergers) Tel: (819)997-3301 Fax: (819) 994-0998 With a copy to: Director Competition Law Division Department of Justice Attention: Jonathan Chaplan, counsel Place du Portage, 22nd floor 50 Victoria Street, Phase I Gatineau, Quebec K 1A OC9 Tel: 819-959-3325 Fax: 819-953-9267
(b) lfBGM: 9 Channel Nine Court Toronto, Ontario MIS 4B5 Attention: Andre Serero, Group Vice-President, Legal and Corporate Secretary Tel: 416-332-5000 Fax: 416-332-4281
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12. The Trustee shall report, in writing, to the Commissioner every 60 days during the Hold Separate Period and, at any other time as requested by the Commissioner or her staff, concerning BGM, CHUM and/or the Trustee's compliance with this Agreement.
III. DEFAULT 13. If BGM, CHUM and/or the Trustee reasonably believes that BGM, CHUM and/or the Trustee are in default of any of the terms of this Agreement, the party shall immediately notify the Commissioner, who shall forthwith give notice to BGM, CHUM and the Trustee setting out the particulars of the default.
14. For the purpose of determining or securing compliance with this Agreement, subject to any valid claim to a legally recognized privilege, and upon written request, BGM, CHUM and/or the Trustee shall permit any duly authorized representative of the Commissioner:
(a) upon a minimum oft wo (2) business days notice to BGM, CHUM and/or the Trustee, access during office hours of BGM, CHUM and/or the Trustee, to inspect and copy all books, ledgers, accounts, correspondence, memorandum, and other records and documents in the possession or under control of BGM, CHUM and/or the Trustee relating to compliance with this Agreement; and
(b) upon a minimum of five (5) business days notice to BGM, CHUM and/or the Trustee, and without restraint or interference from BGM, CHUM and/or the Trustee, to interview directors, officers or employees ofBGM, CHUM and/or the Trustee on matters in the possession or under the control of BGM, CHUM and/or the Trustee relating to compliance with this Agreement.
IV. NOTIFICATION 15. No later that ten days from the date that this Agreement is registered with the Competition Tribunal, BGM, CHUM and/or the Trustee shall provide a copy of this Agreement to each ofits officers, employees, or agents that have managerial responsibility for any obligations under this Agreement.
16. BGM shall give the Commissioner at least 14 days prior written notice of the termination of the Voting Trust Agreement.
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With a copy to: Torys LLP Suite 3000, TD Waterhouse Tower P.O. Box 270, TD Centre Toronto, Ontario M5K 1N2 Attention: R. Jay Holsten Tel: 416-865-7523 Fax: 416-865-7380
(c) lfCHUM CHUM Limited 299 Queen Street west Toronto, Ontario M5V2Z5 Attention: Vice President, Business and Legal Affairs, General Counsel and Secretary Tel: 416-591-7400 ext. 2722 Fax: 416-340-7005
With a copy to: Fasken Martineau Suite 4200 Toronto-Dominion Bank Tower Box 20, Toronto Dominion Centre Toronto, Ontario M5K 1N6 Attention: D. C. New Tel: 416-864-4414 Fax:416-364-7813
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( d) If the Trustee: Weir Foulds LLP The Exchange Tower, Suite 1600 P.O. Box 480, 130 King Street West Toronto, Ontario, Canada MSX 1J S Attention: John D. McKellar, C.M., Q.C. Tel: 416-947-5018 Fax: 416-365-1876
V. DURATION 18. BGM, CHUM and the Trustee shall be bound by the terms of this Agreement during the Hold Separate Period or until the Commissioner notifies the Tribunal, whichever comes first.
VI. GENERAL 19. The Commissioner, BGM, CHUM and the Trustee agree to the registration of this Agreement by the Tribunal.
20. This Agreement together with the Voting Trust Agreement, constitutes the entire agreement between the Commissioner, BGM, CHUM and the Trustee with respect to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether written or oral.
21. The Commissioner, BGM, CHUM and the Trustee agree that the time periods in this Agreement may be amended on consent.
22. In the event of a dispute as to the interpretation or application oft his Agreement, including any decision by the Commissioner pursuant to this Agreement or a breach of this Agreement by BGM, CHUM or the Trustee, the Commissioner, BGM, CHUM or the Trustee may apply to the Tribunal for a further Order interpreting any provision of this Agreement.
23. This Agreement may be executed in counterparts, each of which shall constitute an original and all of which taken together shall constitute one and the same instrument.
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ForBGM: "Ivan Fecan" Date: August 31 fil__,,__,2=0"-'0"""6'-----For CHUM: "Alan Mayne" Date: August 31 fil->-=2:..::0....::.0=6 _____ The Trustee: "John D. McKellar" Date: August 31 fil........:2=0=06"'-----For the Commissioner: "Jonathan Chaplan" Date: August 31 fil...L!:2""-0"""'06"'------
SCHEDULE 1
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VOTING mUSJ AGREEMEHI THIS AGREEMENT made the 19th day of July, 2006 BETWEEN: Ball Globemadla Inc., a corporation Incorporated under lhe lawa of Ontario, and N&M:O, a corporation to be lnc:orporated under the lllww of · Canada or one of ita provtncae, the ehar9holderl of which wtl be The Woodbrtdge Company Umlted, 1585117 Ontario Umltad, BCE Inc., Ontario Teac:ti. .• Penelon Plan Board and Tor9tar Ccrporatlon (hereinafter ·referred to collectively a• •aGM") OF THE FIRIT PART; -and-John D. McKellar, C.M., Q.C., In the City of Toronto, In the Province of Ontario
(htnlnafter l'9farred to •the "Truat.ei OF THE SECOND PART. RECITES THAT: Whel9U on July 12, 2006 BGM announced ill intention to rnaike an offel' (the •OffW') to purdlaee, clnctly or lndlreclly, all of the laued and outanclng Wllng lh.._ of CHUM Limited or any tucc:ellOr thereof (colledlvely delned aa "CHUll'), 1Ubjed to certain condlllorm, and intllnde, In certain clrcumltancm, to acquire or e>Cllngulah al of the outmnding lh8181 of CHUM ttuvugh 1 cornsu-y .aqulllllon or l8COnd ltagl tranuctlon and to complm IUCh oChar tranactlol19, Inducing any Intracorporate reorganization of CHUM or lta subsldlal1el, u m.y be nec8188fY or advll8ble In connKtlon with obtaining ht required regu!atol'y approvelt for the Offer • mmy b9 apecHled In wrllng to the Tnmtae (collecllvely hnlnafter 1eferred to • the -YnnHCUomi: And Whl,... CHUM. directly and inchdty, holds and wll contlru 1D hold varloua lcenme, pannb, fnmc:hilel and authortzatlona laued by the c.*'8n ~ and Telecommunlcatlon1 Commlulon (Iha "CRTC-,, • deecrlbed In SChedule A to thla Agreement; And Whtreu the acqulsftlon of the voting 8haree of CHUM wtl require the prfor approval of the CRTC on terms acceptable to BGM \CRTC Appro¥8r);
-2-And Whereu BGM Intends to ftle or caUM to be filed appllcatlona with the CRTC requatlng any ntqulred CRTC Approval of the Tranuctlona;
And Wherea BGM la of the view that Iha depoalt with the Truatee of the voting share. acquired pur9U8nt to b Traneactlona (the ·cHUM Voting 8harM1, to be held b'/ the Truatee for the benefit of BOM on and ~ to the tlnna herein contained, la an appropriate mechanism to enU'8 that baneftcial ownenhlp of the CHUM Voling Sharell V9atl wllh BGM, while aneu1ng that au voting rlghtl •aadatld with the CHUM Voting Sharee (and hence enactlva control) of CHUM'a broedmatlng undertakings, are axercleed by., Independent. ann'• length party, pending the CRTC'• c:onalderatlon of the proposed change of ownarahlp and conlrol, aa per the CRTC'a pollcy regsdlng UM of tn.t anangamanbl a• sat out In Publlc Nob CRTC 1980-198;
And Whe,.... the ntabllahment of thla Tnat and the depoelt of the CHUM Voting Sharee with the Trustee In accordance with the tenna of thll ~ la neceuary In order to comply with appllcable l8CUritlaa laglelation, aa req'*9d by Publlc Notice CRTC 1899-198; · And WheNH the foregoing recltala are thoM of BGM and not of the Trustee;
Now Therefore In conaidenltlon of the prernlle9 and mutual coven.nta he191n contained and for OCher good and valuable conalderation, the receipt Ind 1utftclancy of which la hereby acknowledged, BGM and the Truatee hereby C0\'8Ml'1t ·and agree H follOWI:
1. Cgatlon and Pyrpo11 ofyotlna TMt Subject to the term• mid condltlona of thil Agreement, a vo8ng trult In raapect of the CHUM Voting Sharee (share• ao dapoelted being herafnabr 1""8mlcf to a•· the •Depoeltlcl 8harwei .,. hereby created and eatlibUahed, and the Trume hereby agcepta the truat created hereb'/ and agreea to HMI • INltM hereunder. Subject • prvvlded below, lhe voting tr'Ult C'9lillld hentby ehal be Irrevocable: (a) untll CRTC AppoVal hu been obtained on terms locepl8ble to BGM and al of the Deposited Shalea and other property then held by the Tr-. plnU8l'1t to thl• Agreemert haw bean tranafemtd to or to b ans. of BGM ae provided In paragraph 4(c) below; or (b) ""tll completion of the •ale of all rl the Depoeited Sharaa pursuant to a Requeat 8ala Notice aa provided In paragraph 4(d) below or p&nUant to notice given In acconfance with paragraph 44(1) below.
-3-2. Acgultltton tnd Holdlna of Dtpoatted Shim (a) BGM ahaU, concurrent with the acqullltlon of the Depolited Sha1119, tubjed to 9lf'/ g...,..nteee and eecurtty lntereatl granted In ,.vour of any financial lnltitutlon(e) to eecure loaM made by 1Uch flnanclal ln!tltutlon(e) to CHUM or BGM to enable BGM to acquire al or p.-t of the CHUM Voting Sharee, transfer and delhler to the Truatee all or part of th~ Depollted Sharlll then owned or aublequently acquired. BGM lh811 ensure that any !UCh guarantees or eec:urtty lnterestl are tUbject to any appllcable regulatory raqulrementa. (b) When 10 requated by BGM In writing, 1he Trustee 1hlll deliver, from llme to time, to BGM aclcnoWledgemMta i'I wrttlng a1 to the number, cleu, race amount and oa.r charaderiltlc9 • applcable of the Depo9lted Shme1 held by him at the time of such requeet. (c) Subject to the raqulremenll of any agreement granting rt/ gu...,.11 or aecurtty lntereata In the Depoalted Sharea In favour of fl1Y ftnandal Institution(•) to MC\R loan1 made by IUCh financial lnatllutlan(1) to CHUM or BGM to enable BGM to acquire al or part of the Depallted Share1, the Tnastee lhaU retain and hold In OntMo the !hare certltlcetle repreeentlng Deposited Sharee only In accordn:e with and 1Ubjlct to the tenna and condltio111 eet forth In thll Agreement. Except where ttMI Depoalted Sharel .. pledged to a flnanclal lnatltullon(•) .. oontlmpl9d In the preceding 1entenc:e, al ah. . certlllcatM Md other lnltrumenla evidencing the Depoalted Share1 shall al an times be lll1d rwmU'I In the poeH!llon of the Trustee. Aa clrected In wrtllng by BOM (but wlltMM tJecorM\g pereonaly liable with rasped thereto), the Tn.ietee ahal C8Ule the granting of guaranteel and security lnterettll (aubfed to appll:llble regulatory requlrementa) or give aclcnowledgement of any exllll11g guerw1tMs or aecurlly lntereata referred to In paragraph 2(a) abo'M, In l'9 Depollted Shanti HOUl1ng IOllnl made by one or more ftnanc:lal lnatltullona to BGM to enable BGM to acquire all or part of the Depallted Sh..,1. The TMtee lhd not caUH the exeoullon of any hypothemtlon agreement unlea It conta1111 provlaion8 ltating that (I) voting rlfjdl for any pledged lha1'81 or other lntereata and al rights of the Truetee hereunder wlU remain with the TN!tee, even In the event of a default by BGM on the loans (a "Def8ult'"); (II) In 1he event of a Default. there wll be a pubic or prtvata Nie of the pledged aharee or other lnetrumenta or Interests th• are Depoelted Sharea;and
-4-(DI) prior to the exerciae of rights by the secured party or by 1 purchuer of auch ah1rH or other lnltrumenta er lnterMtl that .. Depoalted Sharee, the prior approvlll of the CRTC (If NCJ.llred) wll be obtained.
The Trustee ahlll have no authority to 1811, tranlfw, 111lgn, pledge er · otherwlee dllpoee of or encunber the Depolited Sha1111, except to the
ext.nt othelwlle epeclficalty provided In thla Agreement
3. MllnllNnct of Rtconlt The Truelee ahall maintain euch recordl ind booke 11 n necee.-y or appropriate to enable the TRl8l8e to cany out the tenna and condtlorw of thll Agrwment. 4. VoUna and Otbtr Action• by Trulflt (a) Durtng the term of thll Agreement. an voting rtgta with rnpect to the Deposltac:I Shllrel, IOd the right a ahlreholder ID take part In or COl*l1t to any corporate or nrwholder action d any kind with l'8lped to CHUM and b eubelclarlel or any other lhatea that become Depoalted a.._ from time to time, ahall be veeted In Ind eX8f'Clled by the TruelBe, who ahal vote er CIUM the Depotlted Sharee to be vomd. Ind alwwlla eJCM'dle IUCh voClng rtgta and righll 11 lhlNholder, u folowt: Q) to cau• ·~ adlonl to be taken a the TM'88 may dMm nec1111ry eo 81 to maintain the conllnulty of lhe openllonl a general char8c:t8r of aiUM Md 1ta eublldlarlel In the ordll•y C:OUl'H d their reepectlve bualw, Including ~ cammltmenta that ire legally blrdng on CHUM er b IUbliclMel, lnckdng, for greater certainty, to wte agalnet any Ille of ..... oulllde the ordinary cou..- of bualnen except In each caee • pmt of lhe Traneactlont; (II) to require 1 eh1reholclen meeting to be held r necmury and to remove from otnce by ordnllry relOlutlon, In acgordance wllh adwlce from hll legal edvilor, who, tD the beat of the Truetee'I · knowledge, INlll not be legal c:ounMI to BGM or any ~ b ehareholdn, 1ftllatu or 1ubeldl1rlel ("l.qal AcMi:ei and IUbjlct to the rtghta of olher CHUM lhareholdel"I, any director of CHUM or any of Ila aubeldllriel who the Trmtee bef1ev9a. acting reaeonllbly, wll nat In the future be 1n Allleting Director. For ttwee purpaMI, an •Aaftang Director" le tin'/ pel"IOn who don not oppoee, inpede or Imp'* the completion of lhe Tranuctfone, who rendel'I to the Tru.... Md BGM •• alliatanc:e necnaary ID 9ff9ct the ~.
-5-Tranuctionl, who at al time• acts In a mm'\ner coneletent wlh eflec:tlng the Tranuctlona and maintaining the continuity of the . opel'llllons and general character of CHUM and Its 1Ubeldlariee In the ordinary course of their respective bueineu89 (tndudlng l8hfylng commitments l'lat ara legalty blnclng on CHUM Md lta 1t.1bs\cllarlel), who doel not walt8 corporate ...... or olwrwlM act In a manner lnconllDnt with the ftduclary ~ or • dlrec:tor and who prov\del written confirmation (• •eont1rmat1oni when requested to do eo by the TMtee that the dlrec:tor II and intend• In the fulura to be an Aaleting Dnctor; (Ill) In any manner nec:enary baaed on Legal Advice and albject to the ~II of other CHUM lhansholdera, to elect or appoint u cllredorl of CHUM euch addllonal lndlvlduall 81 the Truatee In hll eblolule dllcretlon detennln• (which may Include the TrwtM), provided
that any lndlvldual to be eleded or appointed • director hem provided to the TMtee • Conllrmlltlon and the TNltee bellevel, ac:llng rwaonably, that the lndlvldual wtn be an Aa.-eng Director, to vacancies on the board of dlrec:tol'I of CHUM during the term of this A;l9ernent.
(Iv) to r9place any member of the board of dllectorl who reelp or la removed for caUM •• specified. In aubparagfaph (I) of this p.-agraph 4(•). In exerclllng th. . pow9f'8 to elect or llPPOlnt new direc:tol9. the Truetee lhaH not apSX*Jt a per9or1 who, to the belt of the Trultee'a knowledge, le a partner, otllcer, emplOyee, dftdor, atweholder, aftlilltlt or c:ompetltor (oCher than CHUM), of BOU. or who,. to the belt of the Tl'UltM'• knowledge, haa any prafnllonal bl.llln ... or famllal relatlonahlp with BGM or any partner, otllcer, emplOyee, director, lhareholder, aftllate, or, competllor (olher than CHUM). of BGM (any IUch pel'90n IO '91eted to BOM being hereinafter 19femld to • a •1>1equallft9d Perwon"); (v) aubject to 1Ubparagrapha (I), (ft), OU) and (Iv) of thl8 l*'IV8Ph -4(a), In the TNlfH'• •blolute dltcnlllon baud on Legal Advice and IUbjec:t to the rfghta of other CHUM aharwtloldn, to ...-:t or re-appok'rt It 1nnu1I ahareholderw meeting• of. CHUM and any . other lhareholdef'I meetlnga of CHUM at which dlreckn .. to be elected or appoint each dRctor of CHUM who wu a dirwc:tar prtor to auch meellng and otherwlM to ftll vacancla exiting on the boll'd of clrectorl of CHUM u weH • to ippOlnt audlora of CHUM and to arthorlze the clrectDra to fix the audllDlw' remunerallon; (lit) upon completion of the acqulatllon of II the lllued and oul8tandlng 8har9e of CHUM, to dellver to CHUM and each of Its dnctorl a
-6-written shareholder declaration requiring that coplea of al monlhly management and operational reports and financial dat9 l9laling to CHUM and ltl tublldlertel that are prepared In the ordinary of bualnea, shall be deliv«8d to the Trustee and providing powers of such directora are reatrtc:ted In that they may not Lme IUd1 powan to cauee CHUM and ltll sublldlarlel to _,, on buelneu except In the ordinary course; (vii) In the manner neceuary eo that CHUM •hall carry on buelneM In the ordilary couree, not make or permit any c:hangee oul of the Oldlnary couree, except a1 provided for In the T.....:tiona, 8nd lhaD Implement the Tranudlcn. The Truatee agreM he lrDrldl to OIM.IM CHUM to operate ltl bullnea only In the orclrwy GOUIW, conllatent wllh pat ~. applcable legll and l'1lgUllllDry requlremenla and condltlonl of lcanca, mid In pmrtlculmr, to ca. CHUM to ac:t In a manner deligned to eafegUMI Ml ....... maintain the contlnllty of b eublldl.-, Including maintaining In good etandlng al lcencee luued to CHUM and b aublldlartel, malraln the ganeral character of the CHUM operatlona and PfWMt lta ~ organization and relatlonahlP8 with cummera, .,pp1n Md othera;
(vii) upon notice In wrtdng from BGM, to obtain euch .-.... or conaenta from CHUM'• lenders • are neceaary to permit .,. nnefer of the Dep ,. o . s _ le m d e S n h t a ; r es to tt. Truae In 9Ceoldara wlh the terms of thll or, to the exlent euch ~ or walY81W c.nnot be obtained, to obtain repacemenl ftrWIClng an term1 acceptable to CHUM and BGM; (Ix) In order to: (A) effec:tuate and Implement the Trwwadlona, which lhlll'I lndude, bUt not be Hmlt8d to, lnY ~ reorganization of CHUM or any of Ila aubeldiartee n the acqulaltlon, financing (kldudlng lhe granting of gual'Mtl11 and acurtty thee.rot) and paymn of the canllderatlon far the acqullltlon of the Depoded Sh&re1; (B) u.r.t In the Implementation of ..,Y going prtv• tranuc:lon propoaed by BGM or any other tranlactlon thllt II necM.-Y or delirable to be taken In connection with obtMilng the 1'9ql.!lred regulatcxy approvals In mnnectlon wllh the Offer and provtde commerdally reasonable ...i .tance to BOM to
t C h O a U t l . " , M . operationl and th08I of .. .
-7-obtaln CRTC Approvll and any other approval• which may be required;
(C) obtain for BGM al written lnfonnatlon and such commercialy reaonable aaalatance 81 may be requeated by BGM In writing from CHUM and its 1ubeJciarlel In order to otaln CRTC Approval (\ndudlng, without llmlbltlon, by making any applcatlone and giving any coneenta rwqulAld for euc:h purpose) or In order to facllltate any appllc:allonl or submlulon• to be made Ll'1der the Compelltlon Ad. (Canada); and
(D) obtain (to the extent not already obllllned) all approv9ll. coneent1 and walver9 (other than CRTC Apprvval) required to Implement the Traneacllona or to avoid or cure any breach of any applicable law or ar the obllgdona of CHUM or any of ltl eublldlarlee under eny material agreement or any loA or threatened loA of any matertal rWdl of CHUM or any of Ill sublldlldee ae a reeult of the TranuctlcJn9 and utl8fy Ill oondltlone attached to al euc:h approvall. coneentl and walverw and CRTC ~:
(the actlona to be taken pursuant ta clauaM 4(a)(lx) (A). (8), (C) and (0) abov9 being herein referrwd to • -rrmnaaclon Completion Aaletance9) and In the everrt that bM8d on l.9Qlll AcMae, the TruatM determlnea that any dRc:tor of CHUM or 111 IUblldlartee II preventing CHUM or Ila eubeldJar1ee flan camplyl~. or refullng to~ any uhortzallon required to enabl9 CHUM or II -IUblldlartea ta comply, or refullng to ~ eny authoilulllcM required to enable CHUM and Its sublldlartee to comply wlh the
foregoing, or la olherwlee opposing, Impeding or lrnpalrtng IUc:h compllence, the TIU8tH llttal, to the extent wfthln the Trullaa'1 power and control, and subject ID the rtghla of other' CHUM 1harehOlderl, vote or cause the Depoellcl Sharee to be val8d and othefWfle exen:lle such vo11ng rtgt1':I and r1ghtl • • lhm9haldlr nimove IUCh dlredor from oftlce In accan:lance wlh Legal Advice. (b) No per'llOn other than the TNllH lhal have any voting rlgtdl In ntepeet of any of the Depollted Shanta 10 long M thll Agreement la In efrec:t; provided that the Truatee may appoint a proxy to vote the Depoail8d Share• IOlely In the manner directed by the Trustee. The TM!flle ... have no direct or lnclrect banefldal int8relt In or right to the Depo8lt8d Sha1'81 In hie capacity • Trultee or otherwlle.
-8-(c) The Truat.e 1ham cauae the cartlftcatel and all other documenta repraaentlng am of the Depoalted Sharel then held by the Tl'UllM to .be delivered to BGM, or a1 I may ott.rwile have dlraded In writing, property endorled for tranlfer to or to the order of BGM, and lhll tm al other action• appropriate to effeduata the transfer to BGM, or • I may o1herwlae lwve dlrac:lad In wrlfng, of title to the Depollted Sharll and al oiler property then held- by the Trustee purau.nt to thll AQrMment m 1uchtlme •:
(I) CRTC Approval h8I been granted and 1Uch approval haa become effective or IUCh appravat la no long• neC89l8IYi mnd
(D) the Trustee recelvel a written notice from BGM authortD1g IUCh tranefer. (d) If BGM, by notice In writing to the Trwtee (a •Req...t &• Nollce,, lnfonn1 the Truatee that I hu not obtained CRTC Approval and la of tt'9 view that CRTC Approvlll will not. In any event. be otalned therMfllr, then, eubject u heralnllfter provided, the Trultee, acting for the beMM of BGM, to the extant wMhln the Tn.t8e'1 power and control and IUbject to the rlght8 of other CHUM lhal9holderl, 1hal ..n t he Depoell8d m... of CHUM or b 1ublldlarlel a aoon 81 pr1ctlcable, COi lliltent wllh e. objective of obtaining the belt value RNllOllllbly oblalnabl9 to BGM on an after tu baeil and after ruaonable canaultatlon wllh BGM • toe. tlnne and ~ partlee .to any IUCh trwucllon baaed on lldvlce IWlved from thoee lldvllorl he deema approprtate, provided IUCh acMlora -. not, to the beet of the TNltee'• knowledge, lmrnedllltaly prior to and durfng the term of thla ~reement. advlaora to, and do nat t.ve q matert.I profeulon81, bualnea, or famllal relatlonehlp wlh BOM, Ill lhareholderl, aiblldlarlaa, or aftllletal ("Advice, lndudlng, wlhout limitation, cauUig CHUM andfor Ill IUbalcl\Ue to be reorganized Mdlor' to pay dlvklenda and to make dlltrtbutlone on their reapectlva lhllrw • the TrultM detltnnlnee baled on Advlm IO aa to rnaxlrnlra dlr-tax procaeda. The Trul1M lhaU, In a manner conalltent wlh e. Truat.'1 ftdudary oblgatlonl hereundw, hlMt dllcretlon In determining the ule procedure In aelectlng the punNR1g party or J*t11e and In d"'-"'**'u the terma of 1uch •lea With a view to obtaining the t.t value l'8MOn8bly obtalnable; provided, however, that BGM may withdraw the Reql..t Sale Notice at any time prior to the c:onaurnmatlon of WIY IUch ..... IUbjlct to th• Independent concunwnoe by the Truetee b8l8d on Advice • to IUch wlhdnlwal. All ulel lhall be conducted In complara wlh applicable eecurttl• lawl, and lhall be 1ubject to IUCh prior 19gU!atory ~ • may be required. Nothing hcnln pi'ovldea, nor lhd I be conatrued to provlde,BGM with an ablolute vetO ovs any IUch aalel.
.9. (e) During the term of the voting trult, BGM by notice In wrllng to the T"""8, may require the Trustee from time to time to take any ltep, action or proceeclng aa may be neee8Nry or advlaable In connection with obtlilnlng the required regulatory approvals for the Trwwactlona, Inducing the dlapoeltlon or proposed dlapoaltlon of the aMetl of CHUM and Ila 1ublldlarles (Including the lha1"81 of any 1ubeldlary) (a "Regulldary Dl•p09ltloni, aa &et out In 1uc:h notice (a •Regulatory Dlapoelllon Notlce1. Upon a Regulatory Dilpo9ition Notice being given, the Truatee lhaU take aH action requi'ed by BOM In aud1 no&e to ceLM CHUM and Ila eubeldlarllta. to the extant neceeaary, to comply with auah nollce and to 1'9nder al wlltance reqund by BGM In COIWMdon thenMltt In the manner and upon the tenna let out in BGM'• notlc8 aubject to any requirements or applicable 1aw. (I) Mar oblUllng CRTC Appruval, BGM by notice In wrtllng to the Truame may require the Truatee from time to time to take MY atep, action or procaeclng In connadlon with the buslneu, corporate and caplbll atruc:ture or CHUM and Ila aubaldlatlaa and/or the dlepOIHlan or propol8d dlepolltlon of the ...... of CHUM and Ila aubeldlartaa (lncludlng the lharel of any aubaldlary) aet out In lud1 nob. Upon any auch notice bei'1g given, the Truatae lhall take .a action ,...,red by BGM In aucti notice to cauae CHUM mid lta aubltdlarlee, to the utn nec•H•y, ID comply wllh auch notice and to IWlder al ...1 . ..n ce required by BOU In connection therewith In the manner and upon the tenna aet out In BGM'9 nollce aubject to any requirements of appkabte law. (g) The Tiwtee ahal have any and all auch further powere and lhlll tlllm IUCh further actlorw (Including, but not lmlted to, taking legal .alan) to render and ceu. CHUM and Ila aublldlal1M ID rwlder al required ...l atance to BGM to effedullt8 the Tranuctlorw and enabl9 It to be completed, Including exerclalng ltl voting and . other ~hll - • lhareholder wilh reapect to any of the Depoded Shm'w: <O to advance and bftng to fruition any propoul necnaary to MfllCt (or consla1Bnt with the efflCIUatlon ·of) the Trwwactlon8, Inducing the financing thereof (and to render Tl'llnuc:licJM Complllor1 AHlance), or any contractual ablgatlona of CHUM and la 1ubalc:llartea with reapact thereto; and (10 In oppoeilion to any proposal lnconllltent with the conaummallon of the Tranaacllona or any contractual obllgatlon of CHUM and b eublldlartea with reaped thereto.
·10-(h) Subject to the terme of thla Agreement, If the Trustee rec:elvw an offer far the 8CCJ1illtlon of the Depollted Share1, the Tnatee lhal 1'8jec:t any IUCh offer, unlee• Indicated othelwlee by BGM In wrttiig.
Conctmlna th! Iruttn (a) SUbjecl to the provlelone of thle Agreement, the voting trult c:nM8d hereby 1hall be managed by the Truatee. (b) The Truetee ehal be entitled to receive compenution for hie eer..ae hlnund• at the 8mel and In the amountl aa may ~ agl'89CI to In wrlllng between the Truatee and BOM. {c) The Tru8tee le exsnaty authortzed to lnar and pay al rueonable charge• and other expen. .. which the Truetee deem• neceuary and proper In the perfonnanee of the Truetee'1 dullel under thll AQrwnent. fncMdlng for legal couneel and other advllcn of htl c:hooling rebllriec:I on a per diem or hourty -. aa the Truatee deema 11ppraprta19 (or, In, 119 event of any requirement for an advllOr In connecllon wllh a dllpcMlltior1 or propoeed dlapoallfon W1der paragraph 4(d),(e) or (t) llboV9 retaNd an 1uch other reuonable bull • the Trullee deeme appraprtld9) • Wiii • for omc. 1pace n ~t and clerlcal ...l etllnce aa the TRam may reaeonably require to allCM the TNltM to perfann ·the ,..,.._. . duaea hel'9ll'Mler. BGM hereby...- to relrnburw n to lndendy n. Truatee agalnat all clalml, c:oa d der.nce or clllrna (hcluclq reaaonabla attomeyl' fllee and dleblnementl), expen111 Md llllblay Incurred by the Trume In connection with . the perfomlmlC8 d .. Trult9e'I duties tX1C:ler thla Agreement, except thoee lnCUl9d • a ,_,. of the TMtee 1 1 grae1 negllgence, Intentional wrongful action or WWUI mleconduat. BGM aweee to make any paymenta to the Trustee puflUMt to 1hla paragraph within thirty (30) daY9 d 1Ubmlalan by the Tnmt9e d an Invoice or bl therefor, plue appropriate aupportlng dacumentlltlon. In the caae of any feea and dlaburlementa of any legal or other ldvllor Rlblilled by the TrultH, the Truetee wll arrange ror cop1ea d h accounm therefor to be given to BGM and to Mt out thelUI In rueonable det.11 a deecrfpClon of the tervk:ee rendered together wfth appropriate eupportlng documentation. (d) n. rrueeee ahal be tree from liability In actklg upon ll1Y pmper, document or llgnature beDeved b>/ the Trustee, to be genuine and to h8ve been algl1ed by the proper party. The Trustee shall not be u.ble for eny error of Jucvnent In llf'I act done or omitted, nor for any rnllblke of f9CI or law, nor for anything which the Truatee may do or l9hln from doing In good faith. In ord.- to obtain Legal Advice and Advice, the Tru1tee mmy conlUlt with legal, accounting and bullne. . lldvllora d hll own~
-11-Wherever in thie Agreement It la provided that the Truetee my take (or not take) eome etep, action or proceeding baaed on or In llCCOl"dance wlltl Legal Advice or Advice, so obtaining such Advice or 1...eg81. Advice and acting (or refraining from eo acting) thereupon 111811 be aptloMI to the Tl'\l9t88 and the obtaining of such Ac:lvlc:e or Legal Advice lhal not be a condition precedent to 1he taking (or the refraining from t~ of IUCh 1tep, action or proceeding. Nevertheleu, any action, lfllp or proceeding taken (or not taken) in good faith by the Truatee and In accordance with
the Legal Advice or other Advice, • appropriate, (whettw or not I II provided· In tt1la Agreement that IUCh ltep, action or proceecD'1g 11 to be taken (or not taken) baaed upon or In accordance with Legal Advice or Advice) llhel be conclullve on the partJee to thla Agreement and the Trustee llhell be fully protected and be IUb)ect to no llablty In rwpect thereto.
(•) The~- and dullee of the Trultee hereunder lhall terminate upon ht Truetee'1 bmcNptcy, ll180lveney or death, and no lnt8IMt In MY of ht Depoalted Shares held by the TruatM nor mny of the rtghtl and dulte9 of a Truatee may be transferred In any "*"* except u provided In thll Agreement. The trustee or other pereonal repretentallvel of a bankrupt. lneolvent or ciecaaled TRiit•• 1hal, howewr, have the rlghl and duty to convey any Depollted Sharee held by the Trwtee to one or men 1ucoeeeor Trult8ea.
(f) The Trustee may realgn by giving thirty (30) days' advance wrttmn no11c:e of rellgnatlon to BGM; provided that a a.oec.11or Trume haa been appointed ~ 1uch appointment hu racelved al necea1ary 19G' llltary approval• Ind any ordera pntlng auch approvml h1N9 become tlnal ordera with 1'91pect to which no as:tion•. ~foray, P9Ullol• tor rehearing or reconllderltlon, or appeela .. pending, and aa to wHc:h e. time for filing .,Y •uch reqU811, Patlaon or appeal t. expired. BGM lhall not unr111aonably delay In the appointment of a eucceuor Tn.-. (g) So long u the removal of the TNltee and ht appointment of a IUGCellOI' Trultee twve fll'lt received all naceaary regulatory appRMll and any Oldera granUng IUCh approval have become flnal orders with l'9lpect to which no adlone, requests for atay, petlllan1 for rat.mg or recaneideratlon, or appeall we penclng, and aa to which ht time for tllng any IUc:h request. petition or appeal ha expired and the alCCelaor Truatee II appolnled contemporaneously with the removal d the Tna1M, BGM may 111rnove the Truatee on ten (10) daya' wrlWI notice to e. Trultee.
(h) In the event of the rMlgnatlon, banluuptcy, lnaolvency or dMlh of the Tl"Ultee, he lhall be eucceeded, IUbject to IUch prior approVlll9 d the
I I
-12. · CRTC M may be raqulnld, by a IUCC81801' Trustee chOMn by BGM. Any eucceeaor Trustee ahall IUCC88d to 1111 of the ~ and obllgallana of tt. Trustee raplaced heretmdar upon the execution by auch aucoeaor Trustee of a cowrterp.t of thla Agreement.
(I) The Trultee wananta that he la not a Dllqualltlecl Penon and that he la not a non-Canadian within the meaning of the Dlntcllon to the CRTC (lnellglbllty of Non-Canadena) SOR/97-192, 1997 Cenada Gaz• Pett II, p.1222 rNon.canadlan1 and wlll not bike any action thal wll conlllute him a DlaqualHled Pef'IOl'I or a Non-Canaclan dwtng hie flllll.lre • Trustee. Any aucce1aor Trustee deslgnatad purlUllnt to ~ (f), (g) and (h) of thl9 Section !5 ahaU not be a Disqualified Penan or a Non-Canadian.
8. Dlvldtnclt: Dlf1rtbullon of P!'OCftda of Salt of Sh!r!f or Agtl! Subject to the requlrarnent. of arrt agreement granting any MCUlly lnttreat In the Deposited Shalea In fmvour of any flnandal lnatltution or lna1ilullone to aecure loana made by auch flnandal lnatltutlon(a) lo CHUM « BGM to -ble BOM to acquire 111 or part of the Depoelted Sharae: (a) BOM or Its dtalgnee ahal be entitled to receive, from tme to time, payment. of dlvldenda, lnterwt. or other dlatrlbutkn If any, collec:flld or received Ir/ the Trustee wllh t'Mpect to the Depo.lted st... Suc:h payment8 ahllll be made to or to tt. order of BGM tr/ h TruatM • '°°" u pnictlcllble after the rec:tlpC of auch dlvlcl9nda, ......... or oltwr dlatrlbutlona. In lieu of receiving auc:h clvldlnda, ·1n19re1t or attwr dlatrtbutlona and paying th«n to BGM or b dea""'8, h Truatee may lnnud CHUM In wrllng to pay auch dlvldende or other dlltrblllane dlrwctly to BGM or lta dealgnee. In the ewnt 9l'ff auch lntlructlon 11 glv9n to CHUM, al labUlty of the Truatee wllh regard to the payment or IUCh dlvldendl or other dlatrfbutfona ahall C811H, lritA Ind untl auch lnatructlon la revoked. The Tl'UltH mmy at any time l'9VGlcll auch lnatructlon by wrtlten nollce to CHUM and direct It to maim •ibMqlllnt paymenta to the Truetee; (b) In th9 event the Trustee reoelvel any addltlonal votk1Q •hanle d CHUM or aharw cf b eubildlarlea through a dividend ar other' dlRtbutlon with ratpeet to any Oepo9118d Sharee, the Truatle lhall hold auch .,.,... IUbjed to thla Agrwement u Depoebd Sharw for the benetl al BGM or .. dealgnee and luch lharn nu become .,bject to .. of the """' Ind condltlona cf thlt AQnlement to the ume extent aa I they _,. Depalhld Shan1a acquired by the Truatee pureuent to paragraph 2(a) hentof;
-13. (c) In the event of lhe sale d all or 1ubstant1ally aa of CHUM or Ila 1ublldlartea, the dluolutlon or total or parUat llquldallon of CHUM or b 1ublldl•rl• or the Ule, exdlange or trwwrer of al or part of the Oepoetted Sharel, lhe Trustee lttlll 1'8C8MI the money, ll8CUrllee. t;ilhtl or property whlc:h ant dlatrtbuted or are dlltrtbulable In rMpeCt thend, or which are received In exchange therefor, and, after payng (or l9l8Mng for paYfTIBI"' thereat) any explnl81 lncum.KI pul'IUMt to ,. AQfeement. lhal dlltrtbuta 1uch money, aecurtllee, ""'ta or property to BOY orb dellgnee; end (d) tr mt any time during the term of tNI AQNement. the T~ 1hal rectlwt or GOll•ct •"Y money or other property (oCher fhan ._.. of CHUM) through dletrfbutlon by CHUM to their INlntholderl, other than • 1111 forth In psagrapha (a), (b) or (C) of thll Sectton 8, the Trullee lhal dlltrlMI 9UCh money or olher property to BGM or lta deelgnee. 1. Pommencemtnt orrru1t1qd Tormfnltlog The obllgatlont of the partiel hereunder tmall comn.c:e upon BGM taking. up and pa~ for the CHUM Voting Shante tendered U"tder lhe a.r (Which BGM nl be under no obllgatlon to the TruetH to do), Ind 1hlll tennln* upon the tnnfer to BGM or b deelgnee of •I <'!I the Depoelted Shanti or the .... .....,, or of the 81M11 of CHUM or b lubeldlarill lhlll Int required to be aold pu....t to • Requeet Sale Nollce • contemplated hereunder and the compl8te dlltlbAlon of the proceeds to BGM, exces:it that the Indemnity abllgadans of BGU and BGM'I oblptlona · ta pay amounta owing ta the Tf\lllee wl conanue In efrecl notwflhlt8ndfng h termination of tt"8 Agrwment . 8. Communl£don! (a) on 11 monthly balll, and olherwiee when ntqU8lted In wrfllng by BGM, the TMtee lhal communk:all with ..:I pn.Mde rapcn to BOM ~ the mplemantatJan of the Tranucllonl and the buslnlu, rnalntlnanoe and the operation of CHUM and 119 aublldlartee. (b) Olher than at pnwlded In pngraph 8(a) or elaewheN ln thlll ~ nellher BGM, nor any of Ill oftk:erl, dlrec:tcn, ·~· nrehclldera or aftlHafel lhall communicate with the TIUll8e 18Q1111nD the opnllan or m•nagelTleN of atUM orb 1ublldlan.. 8GM may oomml.licalll .th the TMtH concerning the tranefer of the Depoellld S.._, other' Information on the proceduNI of lmplemdng the T......,_ Ind Olhll' procedurea required to be blkerl by the Tl'Ultee, CHUM or 11 1Ubllc:lllrte9 pursuant to the tBnnl h8IWOf fnclucllng. In the event of • ReqUllt Sllle
-14-Notlce or Regulatory D11po1ltlon Notice, lnfonnation that could lll8iet the Truetee In hi• determination u to the manner In which· the dlapolltlon of any 1harw or ..... to be dl1po1ad of by him may be canted out 10 u to maximize the after-tax proceedl of auch dlspodlon to the uJtlmate redplenbl th81'8of.
(c) Any communication pennllted by paragrapha 8(a) or 8(b) hereof 1hall be In writing to the extent nta1onable practicable. (d) Where deemed appropriate by the Trustee, the Truatae lhllll pnwlde to CHUM or lta couneel, copies or al written matertall lel'1t to or received from the CRTC wlh reapect to the Tranaac:llon and report oraly ID CHUM or It• counael on the natln and aubltance of al oral comm1a1lcldlona wlh the CRTC wllh reapect to the TraneactloM, all to be provided or reported on as eoon aa reaeonably poulble;
(•) Apart from that specified In paragraph (d), any notice, direction, requMt or other lnatrument required or permitted to bit given hereunder lhall be In wrttlng Onclucllng telecopler, telex, or any other rnean1 of communlcllllon by which wordl are capable of being vlllbly reprocklced at a dlltmnc9 point of reception) and given by dellvering or aendlng It by telecopy or other llrnllar me.. of communication llddnlllad: 0) If to BGM 11t Bel Globamedla Inc. 9 Channel Nine Court Scarborough, Ontario M1 S 485
Attention: Andrt Serero Telecopler. (418) 332-4281
-15. (II) If to the Tn.mtee at Welrfouldt LLP l1w Exchange Tower, Suite 1600 P.O.Box 480, 130 King Strwt West Toronto, Ontario MSX 1J5
Atlanlfon: John L Pandel TeJecopler: (-i18) 365-1878
Any auch notice, direction or other ln8'trument given a aforeuld ahllll be effedlve upon receipt. unlea• receNed on • d•y which II not • ~ d8y In which event It lhllJI be deemed to be received on the next~ d8y. Al'ly party m•y ch•nge lta add,.. for eeMclt from time to time by nollce given In accordance wtth the for9golng 8nd •ny tubMquent notice thall be tent to the party Id lta changed add. ..... 9. Ml!stll•nlOUI (•) Except for the wrttten agreement between the Trustee and BGM • to the Trustee'• f9ee for 10 acting, thll Agreement conatllulM the enlh llQN8llllNlt between the pmtlea hereto wlh r9lp8Ct to the U»ject rMllf' hereof and aupef'l8dea •I prlar or81 or written mgs.menta, commllmentl or Ll1del'ltandlnga with reapect to the matllt'9 provided for t.rwln. (b) Thll Agreement may be amended from time to time In mny mMMr tpedft9d In a Wflt8n notice given by BGM to the TRlltee to wt*'1 11 •tblched copiel of an amending •greemant eX9CUC8d by BGM for IUch pupose; provided that al neceuary approvall, If any, to each euch an-.idment lhllll flrlt be obtained from the CRTC. If any euch amendment afl'ecll In any way, •ny of the rlghm of the Trultw henlln or lncreaw the amount of any llabllty or potentlal labllly of the TNltle hent&nier u a reault d acting pul'IUant herwto, the Tnatee ahllll not be bound to agrw to any auch amendment. Subject to the foregoing. the Trustee ahall execute the coplee of the amending agreement attached to the notice and retum at leut two (2) caplel to BGM. (c) Thia Agreement than be binding upon and lhal 8IU8 to the benea rA the pmttea hereto and their respective pef'IOnlll rep111entattvee, permitted
• 18. 1uccesson1 and pennlttad a181gna. Subject to Section 5(h), thll Agraement and the truata henKJf shan not be alllgnable by the Tn..tee. (d) If any part of any provision of this Agreement or any other agreement, documents or wrttlng given pursuant to or In connection wllh thll Agreement shall be Invalid or unenforceable under applicable law, Mid part &hall be Ineffective to the extant of such Invalidity only, without In My way affecting the remaining part of •Id prvv181on or the remaining provlalona of this Agreement. (e) Thll Agreement, the rights and obligations of the parties hereto, end My clalm• and dlsputn relating thereto, lhall be governed by and canatrued exclullvely In accordance with the laws of the Province of Ontario. (f) Thll Agreement may be exec:uted i"I any number of counterparts, ach of which ehall be deemed to be an ~nal and aft of which together lh. . be deemed to be one and the •me Agntement. (g) The Trustee lhall comply baaed on Legal Advice with Publlc Nob CRTC 1999-198 and al rulee, ragulatlonl and pollcl• of the CRTC. IN WITNESS WHEREOF Iha partial have executed thle Agreement.
Bell Globemec111 Inc. -0~ Per:d'!ff
E n A ee i. ED & DELIVERED } of:
...... lvanFecan <: President and Chief Executive 0111cer
-17. Schedule A Broadcutlng undertaklnge for which CHUll hM, dlrwctly or lndlrectly, been laued a llcence
Convenaonal Telwl91on CIVl-TV Victoria CKAL·TV Calgary CKEM-lV Edmonton CHMl·TV PoNige La Prairie CKX-lV Brendon CfP L·T V London CHRO-lV PembrOlce CHRo-lV-43 Ottawa CHWl-TV Wheatley CITY-TV Toronto CITY-OT Toronto Cl<NX 1V Wingham CKVR-TV Barrie CKVU-lV Vancouvw Sp.clalty Televl81on Ram.r (Clll 1) Punctvnuch (cat. 2) BRAVO Dlfve.ln Cl8111ca (Cat. 2) Faahlon Televlllon (Cat 1) MuchLoud (Cat.2) MuchM019MUllc MuchMoreRetro (Cat. 2) Muc:hMullc . Muc:h\llbe (Cat. 2) Sex1V (Cllt. 2) SPACE Stampede. (Cit. 2) StartlV ACCESS - The Educallon Station Book Televialon: The Channel (Csl 1)
- 18 -Canadl., Leaming Televlslon (CL T) CourtTV Canada (Cat 2) 0 The Crime ChaMel (Cal 2) M1alMAX MlalquePIUI CablePulle 24 TV Land (Cat. 2) Radio CFAX-AM Victoria CFUN~ Vancouver CFUN-OR·2 Mount Seymour CHBE-FM Victoria CHQM Vancouver CHQM-DR-1 Mount SeymOll' CICST-AM Vancouver CFRW-AM Winnipeg CF\\M-FM Winnipeg CHIQ.fM Wlmlpeg CJCl-f.AM Halifax CIOO..fM Hallax CKGM-AM Montrwl CKGM-DR·2 Monb'e•I CFCA-FM Kltc:hener CFJR..fM Brockvllle · CFLY.fM Klnglton CFRA-AM Ottllwll CFRA-DR-2 OUawll CHST. fM London CHUM-AM Toronto CHUM.oR-2 Toronto CHUM-FM TorontD CHUM..oR·1 Toronto CIDR-FM Wlndlor CIDR-DR·1 Whleor CIMX-FM Wlndlor CIMX-DR·1 'Mndlor CJPT-FM Broc:kvllle CKKL-FM Oltawa CKKL..oR-1 OttllW8
-19 -CKKW-AM Kitchener CKLc-AM Kingston CKLW-AM VVlndlOI' CKLW-OR-2 Windsor CKL Y-FM Lk'ldlay CKPT-AM Pe'9rbOl'OUQh CKQM-FM Petert>orough CKWW-AM Windsor CKWW-DR-2 Wlndlor CFGO-AM OttaWa CFGO-DR-2 OttllWll CJMJ-FM Oltawl CJMJ-OR-1 Ottawa
CKUL-FM Halfu CHBN-FM Edmonton CHUM Subecrlpdon Radio
CT-THE COMPETITION TRIBVNAL IN THE MATTER Of" the Comf¥tition Act R.S.C. I 98S, c. C-34 as amended;
AND IN THE MATTER Of" the proposed acquisition by Bell Globemedia Inc. ("BGM") of shares of CHUM Limited ("CHUMj;
AND IN THE MA TIER OF the tilin& and registration of a Consent Interim A11reement (the •Agreement") punuant to ICi:tion I OS of the Competition Act (the "Act").
BETWEEN: THE COMMISSIONER OF COMPETITION ·Hd• BELL GLOBEMEDIA INC. ·and-CHVM LIMITED
JOHN D. MCKELLAR C.M., Q.C. CONSENT INTERIM AGREEMENT Jonathan Chaplan, counsel to the Commissioner of Competition Tel: 819-953-3895 Fax: 819-953-9267
Lome Ptack, counsel to the Commissioner of Competition Telephone: (819) 956-6891 Facsimile: (819) 953-9267
Departmc:nt of Justice, Competition Law Division Place du Portage, Phase I SO Victoria Street Gatineau, Quebec, Canada KIAOC9
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