HomeMy WebLinkAboutCS 42-03
REPORT TO
COMMITTEE OF THE WHOLE
Report Number: CS 42-03
Date: October 14, 2003
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
Veridian Corporation Shareholders' Agreement - First Amending
Agreement
Recommendation:
1.
It is recommended that Report CS 42-03 of the Director, Corporate Services &
Treasurer be received and that:
2.
correspondence, dated October 9, 2003, Attachment 1 from the Executive Vice
President, Corporate Affairs & Secretary Treasurer, being Resolutions considered
by the Board of Directors of Veridian Corporation at its meeting of October 9,2003
regarding the First Amending Agreement and nominations to the Board of
Directors be received by Council for information in considering the
recommendations contained in this report;
3.
By-law 6207/03, Attachment 2, which includes the First Amending Agreement to
the Shareholders' Agreement be read three times and passed by Council; and,
4.
in regards to the appointment of the Interim Mayor as a Director of Veridian
Corporation:
a. the Clerk be authorized to execute the Resolution of Shareholders,
Attachment 3
b. the Clerk be authorized to execute the Nomination Form, Attachment 4
c. the Interim Mayor be authorized to execute the Certificate and Consent Form,
Attachment 5
d. the Interim Mayor and Clerk be authorized to execute Proxy and Designation
of Shareholder Representative Form, Attachment 6
e. the Interim Mayor be authorized to execute the Indemnity Agreement,
Attachment 7.
5.
the appropriate officials of the City of Pickering be given authority to give effect
thereto.
Executive Summary:
Not applicable
Report CS 42-03
Date: October 14, 2003
Subject: Veridian Shareholders' Agreement - First Amending Agreement
Page 2
Financial Implications:
None
Background: Recommendation 2 in regards to Attachment 1 is being forwarded to
Council, as directed by the Board of Directors of Veridian Corporation so that the
Board's position on the proposed amendments to the Shareholders' Agreement is
presented to Council when the amendments are considered. Basically the Board is not
in favour of any of the amendments except for one which allows the Belleville
representative to serve as President or Vice President of the Board.
Recommendation 3 provides for the passing of the By-law to provide the authority for
the Interim Mayor and the Clerk to execute the First Amending Agreement to the
Veridian Shareholders Agreement. This Agreement amends the Shareholders
Agreement in order to allow any member of the Board to be nominated as Chair or Vice
Chair. This will allow such participation by the Belleville representative (the Mayor).
Also, reference to the Executive Committee of Veridian Corporation is being removed
as the Committee is no longer active. These changes were approved by the Board of
Directors at its meeting of June 12, 2003 and first presented to the Council of the City of
Pickering at its meeting of June 23, 2003.
Council at its meeting of June 23, 2003 in considering Report CS 29-03 of the Director,
Corporate Services & Treasurer did adopt the Recommendations contained in that
report and also passed Resolution 109/03 which states in part:
"NOW THEREFORE the Council of the Corporation of the City of Pickering hereby gives
its approval to amend the shareholder agreement for Veridian Corporation so that the
Veridian Board of Directors be comprised of no less than one appointed member of the
public, per member municipality, with the remainder being comprised of Members of
Council from the municipalities that have ownership in the Corporation; and
THA T the composition of the Board of Directors remain unchanged in terms of number of
Board members of Ajax, Clarington and Pickering but that the City of Belleville be granted
one additional seat. "
I have been advised that the Councils of the other shareholder's have adopted
Pickering's Resolution and it is therefore now appropriate for Council to pass the
attached by-law which provides for the execution of the First Amending Agreement.
The original form of this Agreement was approved by Council in June, 2003, as
mentioned above, however, it was never executed.
The shareholders of Veridian Corporation have each passed Council By-laws
requesting that the Shareholders Agreement for Veridian Corporation be amended to:
Report CS 42-03
Date: October 14, 2003
Subject: Veridian Shareholders' Agreement - First Amending Agreement
Page 3
. permit each shareholder to nominate Council Appointees to the board of directors of
Veridian Corporation so long as at least one of each shareholder's appointee is not
a Council Appointee of that shareholder; and
. grant Belleville an additional nominee to the board of directors of Veridian
Corporation
The explanations of the Amending Agreement changes are:
. the current Shareholders Agreement permits Shareholders to nominate appointees
to the Board of Directors provided that Council Appointees (including the Mayor or
Mayor's designate) do not comprise a majority of that Shareholder's nominees to the
Board. The Shareholders have directed that the restrictions should be relieved to
allow the Shareholders to appoint additional Council Appointees to the Board
provided that at least one (1) nominee from each Shareholder is not a Council
Appointee. It is our understanding that the Mayor's designate, if used, is to be
appointed from Members of Council. The Amending Agreement clarifies the
definition of Mayor's designate.
. the Shareholders have directed that the number of City of Belleville nominees be
increased from one (1) appointee to two (2) appointees. This will increase the size
of the Board from thirteen (13) directors to fourteen (14) directors. The composition
of the Board will be: Pickering (5), Ajax (4), Clarington (3) and Belleville (2).
Clarification is now provided within the Shareholders Agreement to confirm that a
motion is defeated in the event that an equal number of votes are cast for and
against a particular recommendation by the Board Directors.
. the current Shareholders Agreement contains provisions that restrict the election of
the Chair and Vice-Chair to the Ajax, Clarington and/or Pickering nominees to the
Board. The Belleville nominee is not currently eligible to be elected as Chair or Vice
Chair. The Shareholders Representatives have directed that the Belleville
nominees should also be eligible to be elected as Chair or Vice-Chair of the Board.
. the current Shareholders Agreement contains provisions for an Executive
Committee. This Executive Committee is comprised of six (6) directors appointed
from the directors representing Ajax (2 directors), Clarington (1 director) and
Pickering (3 directors). The Chair and Vice Chair of the Board of Directors must be
a member of the Executive Committee, but Belleville does not have a nominee to
the Executive Committee. The Executive Committee has not operated since
October 2001 and instead, the Board of Directors meet on a monthly basis rather
than quarterly. In view of the current redundancy of the Executive Committee, it is
proposed that the Executive Committee provisions of the Shareholders Agreement
be removed. The removal of the Executive Committee provisions then removes the
restriction on electing the Belleville nominees to the Chair or Vice-Chair positions.
Report CS 42-03
Date: October 14, 2003
Subject: Veridian Shareholders' Agreement - First Amending Agreement
Page 4
Legal counsel for Veridian Corporation has drafted municipal By-laws and the
Shareholder Amending Agreement to effect these changes. Those documents are
attached to this report.
Furthermore, the Veridian Shareholders Agreement stipulates that former Mayor
Arthurs must be replaced, by the Council of the City of Pickering, on the Board of
Directors of Veridian once he ceases to hold the office of the Mayor. As the Mayor was
successful in his bid to be elected to Provincial Parliament this process must now be
put in place since he has resigned as Mayor of Pickering. By virtue of Council passing
Recommendation 4 in all its parts Maurice Brenner, Interim Mayor, will be appointed as
a Director to the Board of Veridian Corporation.
Attachments:
1. Correspondence dated October 9, 2003 from the Executive Vice President
Corporate Affairs & Secretary Treasurer regarding nominations to the Board of
Directors
2. By-law to Approve and Authorize the Execution of an Amendment to the
Shareholders' Agreement
3. Resolution of Shareholders
4. Nomination
5. Certificate and Consent
6. Proxy and Designation of Shareholder Representative
7. Indemnity Agreement
Prepared I Approved I Endorsed By:
~V-",~
Gillis A. Paterson
Director, Corporate Services & Treasurer
GAP:vw
Attachment
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City Council." /1
//,1 /
// ~
/L:-
. . J..-.-" v'/
TViomas J. Quinn, Chief Administrative Officer
~
VE RI 0 IAN
CORPORATION
ATTACHMENT#-L- TO REPORT # (!~ 1./0<- oJ
55 Taunton Road, East
Ajax, ON L1T 3V3
October 9, 2003
Tel: (905) 427-9870
"."'.".".-
Fax: (905) 619-0210
Mr. Bruce Taylor
Town Clerk
City of Pickering
One The Esplanade
Pickering ON Ll V 6K7
"",.""....-
www.veridian.on.ca
Dear Mr. Taylor
Re: Veridian Corporation Shareholders Amending Agreement-Nominations to the Board of Directors
On October 9th Veridian Corporation's Board met to consider the Amending Agreement and except for the
3rd provision with respect to the Belleville Directors serving as Chair or Vice Chair, it is seriously opposed to
the provisions of the Amending Agreement. By resolution it established its position as follows:
"That the current provisions (the status quo) with respect to the ratios of Members of Council and
Non Members of Council on the Veridian Board of Directors be maintained."
Carried
Reason: Veridian Corporation is a business enterprise incorporated under the Ontario Business
Corporations Act. It should be governed by a majority of individuals who are not Members of
Council and who have the professional and business skills as set out in the Ontario Business
Corporations Act.
A move to alter the number of Council Members on the Board from the current 6 to a permissible
maximum of 1 0 would not be in the best interest of the Corporation and the Shareholder.
"That the number of Directors from the City of Belleville be increased from 1 to 2"
Defeated
Reason: Based on its shareholdings in Veridian Corporation, Belleville would be overrepresented
with two directors. This would be a disadvantage the other shareholders and their interests.
"That the Belleville Director be permitted to serve as Chair or Vice Chair of the Board"
Carried
Reason: There is no reason why the Belleville Director should not be permitted to serve as Chair or
Vice Chair of the Board.
The power to make your community better.
G)
THE CORPORATION OF THE CITY OF PICKERING
BY-LAW NO.
6207/03
Being a by-law to approve and authorize the execution of an
amendment made as of the 30th day of September, 2003 to the
Shareholders' Agreement made as of the 28th day of September, 2001
amongst The Corporation of the Town of Ajax, The Corporation of the
City of Belleville, The Municipality of Clarington, The Corporation of the
City of Pickering, Veridian Corporation, Veridian Connections Inc. and
Veridian Energy Inc.
WHEREAS The Corporation of the Town of Ajax ("Ajax"), The Corporation of the City of
Belleville ("Belleville"), The Municipality of Clarington ("Clarington") and The Corporation
of the City of Pickering ("Pickering") entered into a shareholders' agreement (the
"Shareholders' Agreement") made as of the 28th day of September, 2001 with Veridian
Corporation, Veridian Connections Inc. and Veridian Energy Inc.;
/.
II
II
¡
I
II
II
II
,I
,I
il
Ii
II
'I
I.
'i
Ii
I
I
AND WHEREAS the parties to the Shareholders' Agreement wish to amend the same
to (a) provide that the Chair and Vice-chair of Veridian Corporation may be anyone of
the nominees to its board; (b) remove the provisions relating to an executive committee
of Veridian Corporation; (c) to permit each shareholder to nominate Council appointees
to the board of directors of Veridian Corporation so long as at least one of each
shareholders is not a Council appointee of that shareholder; and (d) grant Belleville an
additional nominee to the board of directors of Veridian Corporation;
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF
PICKERING ENACTS AS FOLLOWS:
1.
That Council authorizes and approves the first amending agreement to the
Shareholders' Agreement (the "First Amending Agreemenf') made as of the 14th
day of October, 2003 amongst Ajax, Belleville, Clarington and Pickering, as the
shareholders of Veridian Corporation, Veridian Connections Inc. and Veridian
Energy Inc. in the form of the draft agreement presented to Council and attached
hereto as Schedule "A"; ,
2.
That the Mayor and the Clerk are authorized to execute the First Amending
Agreement.
3.
That the Clerk is authorized to affix the Corporate Seal of The City of Pickering to
the First Amending Agreement.
4.
By-law 6158/03 is hereby repealed.
By-law read a first, second and third time and finally passed this 14th day of October,
2003.
Interim Mayor
City Clerk
Schedule A
FIRST AMENDING AGREEMENT TO
SHAREHOLDERS' AGREEMENT
THIS FIRST AMENDING AGREEMENT made as of the *** day of ********,2003.
BETWEEN:
The Corporation of the Town of Ajax, a municipal corporation existing under
the laws of Ontario
("Ajax")
- and -
The Corporation of the City of Belleville, a municipal corporation existing
under the laws of Ontario
("Belleville")
- and -
The Corporation of the Municipality of Clarington, a municipal corporation
existing under the laws of Ontario
("Clarington ")
- and -
The Corporation of the City of Pickering, a municipal corporation existing
under the laws of Ontario
("Pickering")
- and -
Veridian Corporation, a corporation existing under the laws of Ontario
("VC")
- and -
Veridian Connections Inc., a corporation existing under the laws of Ontario
("VCI")
- and -
Veridian Energy Inc., a corporation existing under the laws of Ontario
("VEl")
- 2 -
(Ajax, Belleville, Clarington, Pickering, VC, VCI and VEl are collectively
referred to herein as the "Parties")
RECIT ALS:
A.
The Parties entered into a shareholders' agreement made as of the 28th day of September,
2001 (the "Shareholders' Agreement");
B.
The Parties wish to amend the Shareholders' Agreement to (i) permit a Belleville
nominee to serve as the Chair or Vice-Chair of the board of directors of VC (the
"Board"); (ii) delete the provisions of the Shareholders' Agreement relating to the
executive committee of the Board; (iii) to allow for an increase in each municipal Party's
Council representation on the board of directors of VC; and (iv) grant Belleville one
additional nominee to the board of directors of VC;
NOW THEREFORE THIS FIRST AMENDING AGREEMENT WITNESSES that
in consideration of the respective covenants and agreements herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree as follows:
1.
All capitalized terms used in this First Amending Agreement and not defined herein shall
have the meanings given to them in the Shareholders' Agreement.
2.
All references herein to Sections and Subsections are references to Sections and
Subsections in the Shareholders' Agreement unless otherwise stated herein.
3.
In Section 1.1, the definition of "Majority Rule" is hereby deleted.
In Section 1.1, the following definition of "Mayor's Designate" is hereby added:
4.
""Mayor's Designate" means the designate selected by the Mayor to serve on the
Board in place of the Mayor provided that the Mayor's Designate shall be a
member of that Mayor's municipal Counci1."
5.
Subsection 3.2(b) is hereby deleted and replaced with the following:
"The Board and Subsidiary Boards. The business and affairs of Veridian
Corporation shall be managed or supervised by the Board which shall consist of
14 directors or such other number of directors as the Shareholders may determine
from time to time by special resolution in accordance with the Act. Each of the
Initial Shareholders shall nominate the number of members to the Board listed
opposite that Initial Shareholder's name below:
Number of Directors
Nominee of
4
Ajax
2
Belleville
3
Clarington
6.
- 3 -
5
Pickering
The Board shall annually elect from its members a Chair and Vice-Chair.
Subsection 3.2(d) is hereby deleted and replaced with the following:
"Qualifications of Board. Each Initial Shareholder shall nominate the Mayor of
the Initial Shareholder or the Mayor's Designate as one of the Initial
Shareholder's nominees to the Board provided that if the Mayor ceases to hold the
office of Mayor, the appointing Initial Shareholder shall forthwith replace the
Mayor or the Mayor's Designate, as applicable. Each Initial Shareholder shall
nominate to the Board members of its council (including the Mayor or the
Mayor's Designate) ("Council Appointees") provided that at least one nominee of
each Initial Shareholder shall not be a Council Appointee of that Initial
Shareholder. In addition to the requirements of the Act, the qualifications of
candidates for the Board shall, where possible, include the following:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
business experience;
time availability;
financial skills;
marketing skills;
industry knowledge;
independence of judgment;
integrity;
knowledge of public policy issues relating to the Corporations; and
knowledge and experience concerning environmental matters, labour
relations and occupational health and safety issues."
7.
Subsection 3.2(j) is hereby amended by adding the following sentence immediately after
the end of the second sentence of Subsection 3.2(j):
"In the event that an equal number of votes are cast at a meeting both for and
against a motion, the motion shall be defeated."
Subsection 3.3(a) is hereby amended by deleting in its entirety Subsection 3.3(a).
Except as expressly set out herein, the Shareholders' Agreement remains in full force and
effect, unamended.
8.
9.
10.
This First Amending Agreement shall be governed by and construed in accordance with
the laws of Ontario.
- 4 -
11.
This First Amending Agreement shall enure to the benefit of, and be binding on, the
Parties and their respecti ve successors and permitted assigns.
12.
This First Amending Agreement may be executed in any number of counterparts, each of
which will be deemed to be an original and all of which taken together will be deemed to
constitute one and the same agreement.
IN WITNESS WHEREOF the Parties by their duly authorized representatives have
executed this First Amending Agreement as of the day and year first above written.
THE CORPORATION OF THE TOWN OF AJAX
cIs
By:
Name: Steve Parish
Title: Mayor
cIs
By:
Name: Marty deRond
Title: Clerk
THE CORPORATION OF THE CITY OF
BELLEVILLE
cIs
By:
Name: George A. Zegouras
Title: Mayor
cIs
By:
Name: Wayne Tod
Title: City Clerk
THE CORPORATION OF THE MUNICIPALITY OF
CLARINGTON
cis
By:
Name: John Mutton
Title: Mayor
cIs
By:
Name: Patti Barrie
Title: Clerk
- 5 -
THE CORPORA TION
PICKERING
OF
THE
CITY
OF
By:
Name: Maurice Brenner
Title: Interim Mayor
cis
By:
Name: Bruce Taylor
Title: Clerk
cis
VERIDIAN CORPORATION
By:
Name: John Wiersma
Title: President
cis
By:
Name: James Mason
Title: Chair
cis
VERIDIAN CONNECTIONS INC.
By:
Name: John Wiersma
Title: President
cis
By:
Name: Jim McMaster
Title: Chair
cis
VERIDIAN ENERGY INc.
By:
Name: John Wiersma
Title: President
cis
By:
Name: Jim Witty
Title: Chair
cis
: :ODMA \PCDOCS\CC1\4224 70\ 7
ATTACHMENT#~ TO REPORT#-'.L '-1.;2 - 03
VERIDIAN CORPORATION
(the "Corporation")
RESOLUTION OF SHAREHOLDERS
Directors
WHEREAS effective October 9, 2003 Wayne Arthurs has ceased to be the Mayor of the
City of Pickering and accordingly ceases to be a director of the Corporation on such date;
AND WHEREAS The Corporation of the City of Pickering has notified the Corporation
that Maurice Brenner has been appointed Interim Mayor effective October 9,2003;
AND WHEREAS pursuant to the shareholder agreement in respect of the Corporation
dated September 28, 2001, The Corporation of the City of Pickering has nominated, by nomination
attached hereto, Maurice Brenner for a director of the Corporation;
RESOLVED that Maurice Brenner is declared to be elected a director of the Corporation
to hold office for a term expiring the earlier of, the date he ceases to be Interim Mayor of the City of
Pickering and the close of the next ensuing third annual meeting of the shareholders, or until his successor
is elected or appointed pursuant to the provisions of the shareholder agreement dated September 28,2001,
as amended and replaced from time to time.
*
*
*
THE FOREGOING RESOLUTION in writing is consented to by all the shareholders of
the Corporation pursuant to the provisions of the Business Corporations Act (Ontario).
DATED as of the 14th day of October, 2003.
THE CORPORATION OF THE
TOWN OF AJAX
THE CORPORATION OF THE
CITY OF BELLEVILLE
per:
per:
THE CORPORATION OF THE
MUNICIPALITY OF CLARINGTON
THE CORPORATION OF THE
CITY OF PICKERING
per:
per:
;;OOMA \PCOOCS\CC1ì457961 \ 1
ATTACHMENT#-#- TO REPORT#.Q--£I J.-ò3
NOMINA TION
TO:
VERIDIAN CORPORATION
AND TO:
THE SHAREHOLDERS THEREOF
The undersigned advises that Maurice Brenner has been appointed Interim Mayor of the
City of Pickering effective October 9,2003.
Pursuant to section 3.2(c) of the shareholder agreement dated September 28, 2001, the
undersigned nominates Maurice Brenner for a director of Veridian Corporation.
Dated the 14th day of October, 2003.
THE CORPORA nON OF THE
CITY OF PICKERING
per:
.\~ "fACHMENT # ~ TO REPORT #~Voì .- 03
CERTIFICA TE AND CONSENT
TO:
VERIDIAN CORPORATION
I consent to serve as a director of the Corporation.
I (a) certify that I am (i) a citizen or permanent resident of Canada, and (ii) ordinarily
resident in Canada, (b) acknowledge that the Corporation is relying upon this certificate for the purpose of
ensuring compliance by the Corporation with the provisions of the Business Corporations Act and (c)
agree to advise the Corporation immediately by an instrument in writing delivered to the Corporation of
any change in my citizenship or place of residence.
I consent to the participation by any director at a meeting of the board of directors or a
committee of directors by means of such telephone, electronic or other communication facilities as permit
all persons participating in the meeting to communicate with each other simultaneously and
instantaneously, such consent to continue in effect unless revoked by an instrument in writing delivered to
the Corporation.
DATED as of the 14th day of October, 2003.
Maurice Brenner
ATTACHMENT#~ TO REPORT#_L'S:-. <-fol_O3
PROXY AND DESIGNATION OF SHAREHOLDER REPRESENT A TIVE
For use at annual and special general
meetings of shareholders of
VERIDIAN CORPORA nON (the "Corporation")
DESIGNA nON OF SHAREHOLDER REPRESENTATIVE
Pursuant to Section 3.7 of the shareholders' agreement dated September 28,2001 among The Corporation
of the Town of Ajax, The Corporation of the City of Belleville, The Corporation of the Municipality of
Clarington, The Corporation of the City of Pickering and the Corporation, et al (the "Shareholders
Agreement"), the undersigned shareholder of the Corporation hereby designates MAURICE BRENNER,
its Interim Mayor, as its legal representative (the "Shareholder Representative") for the purposes of
providing any consent or approval required by the Shareholders' Agreement or by the Business
Corporations Act (Ontario) (the "Act"). In the event that the Mayor is unable or unwiUing to act as the
Shareholder Representative, the undersigned hereby designates TOM QUINN, its Chief Administrative
Officer, as the Shareholder Representative for the purposes of the Shareholders' Agreement and the Act
until the undersigned expressly determines otherwise.
APPOINTMENT OF PROXY
The undersigned hereby appoints the Shareholder Representative, MAURICE BRENNER, its Interim
Mayor, or, failing him, TOM QUINN, its Chief Administrative Officer, to attend and act for and on its
behalf in respect of any and all matters that may come before any annual or special general meeting of the
Corporation to be held from time to time and at any and every adjournment of any such meeting so held
and with respect to any and all matters which may be brought before or dealt with at such meeting or
otherwise with respect to which the holders of Common shares of the Corporation shall be entitled to vote
and the said Mayor or the said Chief Administrative Officer, as the case may be, shall be entitled to vote
all shares of the Corporation owned by the undersigned in his sole discretion with respect to such matters
being voted upon and with respect to any amendments or variations relating thereto.
It is understood that this appointment shall continue in full force and effect, and the Corporation may rely
thereupon until such time as either a revocation thereof or a new form of proxy replacing the form of
proxy herein is delivered by the undersigned to the Corporation. This Proxy and Designation of
Shareholder Representative is issued in replacement of the Proxy and Designation of Shareholder
previously issued by The Corporation of the City of Pickering on September 28, 2001.
DATED as of the 14th day of October, 2003.
THE CORPORA nON OF THE CITY OF PICKERING
per:
Name: Maurice Brenner
Title: Interim Mayor
per:
Name: Bruce Taylor
Title: Clerk
ATTACHMENT#-1-ro REPORT#~'f.;) -OJ
INDEMNITY AGREEMENT
This Agreement made as of the l4tll day of October, 2003.
BETWEEN:
VERIDIAN CORPORATION, a corporation
amalgamated under the laws of Ontario,
(hereinafter referred to as "HoldCo")
OF THE FIRST PART,
- and -
MAURICE BRENNER,
(hereinafter referred to as the "Director")
OF THE SECOND PART,
WHEREAS HoldCo is formed under the provisions of the Business Corporations Act
(Ontario) (the "Act");
AND WHEREAS the Director, at the request of HoldCo, has accepted the position of a
director of HoldCo;
AND WHEREAS the Director has no direct or indirect financial interest in HoldCo;
AND WHEREAS the by-laws of Ho]dCo provide that it shall indemnify a director or
officer in certain circumstances.
NOW THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of the
premises and the covenants and agreements herein contained and for other good and valuable
consideration (the receipt and adequacy of which is hereby acknowledged by each of the parties hereto),
and in consideration of the Director's consenting to act as a director of HoldCo and acceding to HoldCo's
request to accept such position, the parties agree as follows:
1. HoldCo shall indemnify the Director and his heirs and legal representatives against all
costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment,
reasonably incurred by him in respect of any civil, criminal or administrative action or proceeding to
which he is made a party by reason of being or having been a director of HoldCo if:
(a)
he acted honestly and in good faith with a view to the best interests of HoldCo;
(b)
in the case of a criminal or administrative action or proceeding that is enforced
by a monetary penalty, he had reasonable grounds for believing that his conduct
was lawful; and
(c)
in the case of an action by or on behalf of RoldCo to procure a judgment in its
favour, RoldCo obtains any approval required under the Act in respect of such
indemnification.
2. RoldCo shall use its best efforts to obtain any approval required under the Act or
otherwise in respect of any indemnification required to be made by it under this agreement.
3. RoldCo shall indemnify the Director in such other circumstances as the Act, as amended
from time to time, permits or requires.
4. Any indemnification to be made to the Director under this agreement shall not be affected
by any remuneration that he shall have received, or to which he may be entitled, at any time for acting in
his capacity as a director of RoldCo.
5. RoldCo shall purchase and maintain insurance for the benefit of the Director against any
liability incurred by the Director in his capacity as a director of RoldCo, except where the liability relates
to his failure to act honestly and in good faith with a view to the best interests of RoldCo.
6. This agreement may not be assigned by RoldCo and shall enure to the benefit of and be
binding upon the parties hereto and their respective heirs, legal representatives, successors and permitted
assIgns.
7. This agreement shall be governed by and construed in accordance with the laws of the
Province of Ontario and the laws of Canada applicable therein. The parties hereby attorn and submit to
the non-exclusive jurisdiction of the Courts of the Province of Ontario in connection with any action, suit
or proceeding brought in relation to this agreement.
8. The parties shall sign such further and other resolutions, documents and papers, cause
such meetings to be held, votes cast, special resolutions and resolutions passed, by-laws enacted and
documents executed, and do and perform and cause to be done and performed such further and other acts
and things as may be necessary or desirable to give full effect to this agreement.
9. This agreement may be executed in one or more counterparts, each of which when so
executed shall be deemed to be an original and such counterparts together shall constitute one and the
same instrument.
10. This agreement may not be amended except by an instrument in writing signed by all
parties hereto which specifically refers to the amendment of this agreement. This agreement shall be
effective as of the date hereof and shall remain in full force and effect until such time as the Director
ceases to be a director of RoldCo. Termination of this agreement in accordance with its terms shall not
affect any obligation of RoldCo, arising prior to termination in favour of the Director, including without
limitation any obligation to indemnify by reason of any matter which has arisen or circumstances which
have occurred prior to termination.
11. The invalidity or unenforceability of any provision of this agreement or any covenant
herein contained shall not affect the validity or enforceability of any other provision or covenant hereof or
herein contained, and the agreement shall be construed as if such invalid or unenforceable provision or
covenant were omitted.
12. In this agreement where the context so requires words importing number shall include the
singular and plural, words importing gender shall include the masculine, feminine and neuter genders and
words importing persons shall include firms and corporations and vice versa.
13.
Time shall be of the essence of this agreement and of each and every part hereof.
IN WITNESS WHEREOF the parties hereto have executed this agreement as of the day
and year first above written.
(Witness)
Maurice Brenner, Interim Mayor
VERIDIAN CORPORATION
per:
James Mason, Chair of the Board
per:
John Wiersma, President
: :ODMA \PCDOCS\CC1ì457973\ 1