Share Purchase Agreement (2005)Full Document 

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SHARE PURCHASE AGREEMENT
 
 
 
 
 
 
 
 
August 14, 2005
 


Table of Contents

 

TABLE OF CONTENTS
             
 
  ARTICLE 1        
 
  INTERPRETATION        
 
           
  Defined Terms.     2  
  Knowledge.     4  
  Currency.     4  
  Sections and Headings.     4  
  Entire Agreement.     4  
  Time of Essence.     4  
  Applicable Law.     4  
  Severability.     4  
  Successors and Assigns.     4  
  Amendment and Waivers.     5  
 
           
 
  ARTICLE 2        
 
  PURCHASE AND SALE OF PURCHASED SHARES        
 
           
  Purchase and Sale of Purchased Shares.     5  
  Purchase Price.     5  
  Direction of Proceeds, Subscription and Issue of Convertible Debenture.     5  
  Adjustment of Purchased Shares and Purchase Price - Competition Act.     6  
  Adjustment of Purchase Price - Price Protection.     7  
 
           
 
  ARTICLE 3        
 
  REPRESENTATIONS AND WARRANTIES OF THE VENDORS        
 
           
  Organization.     8  
  Authorization and Enforceability.     9  
  No Other Agreements to Purchase.     9  
  Ownership of Purchased Shares.     9  
  No Violation.     9  
  Consents and Approvals.     10  
  No Actions, Proceedings.     10  
 
           
 
  ARTICLE 4        
 
  REPRESENTATIONS AND WARRANTIES OF THE PURCHASER AND THE GUARANTOR        
 
           
  Organization.     10  
  Authorization.     11  
  Funding.     11  
  No Violation.     11  
  XCC and the Debenture.     12  
  Consents and Approvals.     14  
  Ownership of Common Shares.     14  
  No Actions, Proceedings.     14  
  Compliance with Agreements Relating to Indebtedness.     14  

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  No Material Change.     15  
 
           
 
  ARTICLE 5        
 
  SURVIVAL OF REPRESENTATIONS AND WARRANTIES        
 
           
  Survival of Representations and Warranties.     15  
 
           
 
  ARTICLE 6        
 
  COVENANTS        
 
           
  Conduct Prior to Closing.     15  
  Voting of Junior Preference Shares.     15  
  Standstill and Right of First Offer for Junior Preference Shares.     16  
 
           
 
  ARTICLE 7        
 
  CONDITIONS OF CLOSING        
 
           
  Conditions of Closing in Favour of the Purchaser.     17  
  Conditions of Closing in Favour of the Vendors.     17  
 
           
 
  ARTICLE 8        
 
  CLOSING ARRANGEMENTS        
 
           
  Place of Closing.     18  
  Transfer.     18  
  Further Assurances.     18  
 
           
 
  ARTICLE 9        
 
  MISCELLANEOUS        
 
           
  Notices.     19  
  Commissions, etc.     20  
  Consultation.     20  
  Guarantee.     20  
  Best Efforts.     20  
  Counterparts.     21  
 
           
  Form of Note A        
  Form of Note B        
  Form of Pledge Agreement        
           

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SHARE PURCHASE AGREEMENT
THIS AGREEMENT made as of the 14th day of August, 2005,
B E T W E E N:
     
 
  BRASCAN CORPORATION,
 
  a corporation incorporated under the laws of the
 
  Province of Ontario,
 
   
 
  (hereinafter called “Brascan”),
 
   
 
  - and -
 
   
 
  BRASCADE CORPORATION,
 
  a corporation incorporated under the laws of
 
  Canada,
 
   
 
  (hereinafter called “Brascade”),
 
   
 
  - and -
 
   
 
  6287042 CANADA LIMITED,
 
  a corporation incorporated under the laws of
 
  Canada,
 
   
 
  (hereinafter called “Holdco”),
 
   
 
  (Brascan, Brascade and Holdco are hereinafter together
 
  called the “Vendors”),
 
   
 
  - and -
 
   
 
  1184760 ALBERTA LTD.,
 
  a corporation incorporated under the laws of the
 
  Province of Alberta,
 
   
 
  (hereinafter called the “Purchaser”),
 
   
 
  - and -
 
   
 
  XSTRATA PLC,
 
  a public limited company under the laws of England
 
  and Wales,
 
   
 
  (hereinafter called the “Guarantor”),
          WITNESSES THAT in consideration of the respective covenants, agreements, representations, warranties and indemnities herein contained and for other good and valuable


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consideration (the receipt and sufficiency of which are acknowledged by each party), the parties covenant and agree as follows:
ARTICLE 1
INTERPRETATION
1.1   Defined Terms.
          For the purpose of this Agreement, unless the context otherwise requires, the following terms shall have the respective meanings set out below and grammatical variations of such terms shall have corresponding meanings:
acting jointly or in concert” has the meaning attributed to that phrase in the Securities Act (Ontario);
Affiliate” shall have the meaning attributed to that term in the Securities Act (Ontario);
Articles” means the articles of association of XCC and the resolution of the managing director of XCC expected to be passed and adopted by the shareholders of XCC in relation to the Debenture;
Business Day” means any day, other than a Saturday or a Sunday, on which banks in Toronto, Ontario, London, UK and Zug, Switzerland are open for business;
CBCA” means the Canada Business Corporations Act, as amended;
Closing Agreements” means Note A, Note B, the Xstrata Guarantee and the Pledge Agreement;
Closing Date” means the date hereof or such other date as may be mutually agreed upon by the Vendors and the Purchaser;
Common Shares” means the common shares in the capital of the Corporation;
Contract” means any agreement, indenture, contract, lease, deed of trust, licence, option, instrument or other commitment, whether written or oral;
Corporation” means Falconbridge Limited, a corporation existing under the laws of the Province of Ontario;
Debenture” has the meaning specified in section 2.3(b);
Debenture Issue Date” means the date the Debenture, or in circumstances where section 2.3(c) applies, the Substitute Debenture, is issued;
Deed Poll” means the deed poll expected to be entered into by the Guarantor in relation to the conversion rights and share exchange rights pursuant to the terms of the Debenture, or in circumstances where section 2.3(c) applies, the Substitute Debenture;


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Encumbrance” means any encumbrance, lien, charge, hypothec, pledge, mortgage, title retention agreement, security interest of any nature, adverse claim, exception, reservation, easement, right of occupation, any matter capable of registration against title, option, right of pre-emption, privilege or any Contract to create any of the foregoing;

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