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HomeMy WebLinkAboutBy-law 5888/01THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. 5888/01 Being a by-law to approve an agreement of the shareholders of Vetidian Corporation and the Corporation of the City of Picketing, an agreement amending the merger agreement dated November 3, 2000, as amended, among the shareholders of Veridian Corporation et al. and an agreement respecting the amendment and replacement of promissory notes issued by Veridian Corporation, Veridian Connections Inc. and two of the successor corporations to the electricity distribution business of the Corporation of the City of Pickering. WHEREAS the Corporation of the Town of Ajax ("Ajax"), the Corporation of the City of Belleville ("Belleville"), the Corporation of the Municipality of Clarington ("Clatington"), the Corporation of the City of Picketing ("Picketing"), Veridian Corporation, Veridian Connections Inc., Vetidian Energy Inc., 1437864 Ontario Limited, Belleville Electric Corporation and 1444141 Ontario Limited entered into a merger agreement dated November 3, 2000 as amended by a merger amending agreement dated as of June 20, 2001 (collectively the "Merger Agreement"); AND WHEREAS the parties to the Merger Agreement wish to amend the same in accordance with the terms set out in the form of agreement attached hereto as Schedule A; AND WHEREAS following the amalgamation of Veridian Corporation and 1437864 Ontario Limited pursuant to the terms of the Merger Agreement, Belleville, Ajax, Picketing and Clarington (collectively the "Municipalities") shall be the owners of all the issued and outstanding shares of the amalgamated entity continuing as Veridian Corporation CVC Amalco"); AND WHEREAS the Municipalities wish to enter into a shareholders' agreement to provide for the conduct of certain affairs of VC Amalco and its subsidiary corporations, to provide for certain restrictions on the transfer and ownership of shares in the capital of VC Amalco and to govern the mutual rights and obligations of the Municipalities with respect to VC Amalco and its subsidiary corporations and each other in the form of agreement attached hereto as Schedule B; AND WHEREAS following the completion of the transactions contemplated by the Merger Agreement, the Municipalities, Veridian Corporation, Vetidian Energy Inc. and Veridian Connections Inc. will desire to amend the existing promissory notes held by each of the Municipalities in connection with the electricity distribution businesses of their successor corporations on the terms set out in the form of agreement attached hereto as Schedule C; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF PICKERING HEREBY ENACTS AS FOLLOWS: The execution of the Second Merger Amending Agreement by the Mayor and Clerk, in the form attached hereto as Schedule A, forming part of this by-law is hereby ratified and confirmed. The execution of the Shareholders' Agreement by the Mayor and the Clerk, in the form attached hereto as Schedule B, forming part of this by-law, is hereby ratified and confirmed. The execution of the First Note Replacement Agreement by the Mayor and the Clerk, in the form attached hereto as Schedule C, forming part of this by-law, is hereby ratified and confirmed. By-law read a first, second and third time and finally passed this first day of October, 2001. Wayne Arthurs, Mayor -~ · . ....... : ~- '-~ r, Clerk Attached. SCHEDULE A SECOND MERGER AMENDING AGREEMENT Attached. SCHEDULE B SHAREHOLDERS' AGREEMENT Attached. ::ODMA~PCDOCS\CCT~249157~1 SCI:IEDULE C FIRST NOTE REPLACEMENT AGREEMENT