UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934
For the month of March 2024
Commission File Number 001-11444
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| MAGNA INTERNATIONAL INC. |
| (Exact Name of Registrant as specified in its Charter) |
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| 337 Magna Drive, Aurora, Ontario, Canada L4G 7K1 |
| (Address of principal executive office) |
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F [ ] Form 40-F [X]
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
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MAGNA INTERNATIONAL INC. |
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(Registrant) |
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| Date: March 11, 2024 |
By: |
/s/ “Bassem Shakeel” |
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Bassem A. Shakeel, |
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|
Vice-President, Associate General Counsel and Corporate Secretary |
EXHIBITS
Exhibit 99
Magna International Inc.
$400,000,000 5.050% Senior Notes due 2029
Underwriting Agreement
New York, New York
March 5, 2024
To the Representatives named in
Schedule I hereto of the several
Underwriters
named in Schedule II
hereto
Ladies and Gentlemen:
Magna International Inc., a corporation organized under
the laws of Ontario (the “Company”), proposes to sell to the several underwriters named in Schedule II hereto (the
“Underwriters”), for whom you are acting as representatives (the “Representatives”), the principal
amount of its securities identified in Schedule I hereto (the “Securities”), to be issued under an indenture (the “Base
Indenture”) dated as of June 16, 2014, between the Company and The Bank of New York Mellon, as trustee (the “Trustee”),
as supplemented by the eighth supplemental indenture (the “Eighth Supplemental Indenture” and, together with the Base
Indenture, the “Indenture”) to be dated as of the Closing Date (as defined below), between the Company and the Trustee.
Certain terms used herein are defined in Section 25 hereof.
The Company has prepared and filed a short form base
shelf prospectus, dated February 26, 2024 (the “Canadian Base Prospectus”), in respect of senior debt securities with
the Ontario Securities Commission (the “OSC”) in accordance with National Instrument 44-101 – Short Form Prospectus
Distributions, Companion Policy 44-101CP, National Instrument 44-102 – Shelf Distributions, Companion Policy 44-102CP
and exemptions provided for in Ontario Instrument 44-501 – Exemption from Certain Prospectus Requirements for Well-known Seasoned
Issuers (Interim Class Order) (collectively, the “Shelf Procedures”), and has been issued a final receipt by the
OSC for such final short form base shelf prospectus. The term “Ontario Securities Law” means the securities laws in
the province of Ontario and the respective rules and regulations under such laws, together with the applicable published policy statements
and applicable notices and blanket orders or rulings of the OSC. The OSC is the securities regulatory authority regulating the offering
of the Securities. The term “Canadian Final Prospectus” means the final prospectus supplement relating to the offering
of the Securities first filed with the OSC after the Applicable Time, together with the Canadian Base Prospectus, including all documents
incorporated therein by reference. A preliminary prospectus supplement was filed with the OSC on March 5, 2024. The term “Canadian
Preliminary Prospectus” means the preliminary prospectus supplement relating to the offering of the Securities filed with the
OSC, together with the Canadian Base Prospectus, including all documents incorporated therein by reference.
The Company has also filed with the United States Securities
and Exchange Commission (the “SEC”) a registration statement on Form F-10 (File No. 333-277377) providing for the registration
of senior debt securities, including the Securities, under the Securities Act. Such registration statement and any post-effective amendment
thereto, in each case including the Canadian Base Prospectus (with such deletions therefrom and additions thereto as are permitted or
required by Form F-10 and the applicable rules and regulations of the SEC) each in the form heretofore delivered or to be delivered to
the Underwriters, including exhibits to such registration statement and all documents incorporated by reference in the prospectus contained
therein, have become effective pursuant to Rule 467. The various parts of such registration statement including all exhibits thereto and
the documents incorporated by reference in the prospectus contained in the registration statement at the time such part of the registration
statement became effective, each as amended at the time such part of the registration statement became effective and including any post-effective
amendment thereto, and including any prospectus supplement relating to the Securities that is filed with the SEC and deemed part of such
registration statement, are hereinafter collectively called the “Registration Statement.” The Canadian Base Prospectus
(with such deletions therefrom and additions thereto as are permitted or required by Form F-10 and the applicable rules and regulations
of the SEC) included in the Registration Statement shall be referred to herein as the “U.S. Base Prospectus.” The U.S.
Base Prospectus, as filed together with the preliminary prospectus supplement relating to the offering of the Securities filed with the
SEC pursuant to General Instruction II.L of Form F-10, including all documents incorporated therein by reference, on March 5, 2024 is
referred to herein as the “U.S. Preliminary Prospectus.” The U.S. Base Prospectus, as filed together with the final
prospectus supplement relating to the offering of the Securities first filed with the SEC pursuant to General Instruction II.L of Form
F-10, including all documents incorporated therein by reference, after the Applicable Time is referred to herein as the “U.S.
Final Prospectus.”
The Company has prepared and filed with the SEC an
appointment of agent for service of process upon the Company on Form F-X in conjunction with the filing of the Registration Statement
(the “Form F-X”). The Company has caused the Trustee to prepare and file with the SEC a Statement of Eligibility and
Qualification on Form T-1 (the “Form T-1”).
All references in this Agreement to financial statements
and schedules and other documents and information which are “contained,” “included” or “stated” (or
other references of like import) in the Registration Statement, the U.S. Base Prospectus, the U.S. Preliminary Prospectus, the U.S. Final
Prospectus, the Canadian Base Prospectus, the Canadian Preliminary Prospectus or the Canadian Final Prospectus shall be deemed to mean
and include all such financial statements and schedules and other documents and information which are incorporated by reference therein
as of the date of such Registration Statement, U.S. Base Prospectus, U.S. Preliminary Prospectus, U.S. Final Prospectus, Canadian Base
Prospectus, Canadian Preliminary Prospectus or Canadian Final Prospectus, as the case may be. Any reference herein to the Registration
Statement, the U.S. Base Prospectus, the U.S. Preliminary Prospectus, or the U.S. Final Prospectus shall be deemed to refer to and include
the documents incorporated by reference therein pursuant to Item 4 of Form F-10 which were filed or furnished under the Exchange Act,
on or before the Effective Date (as defined below) of the Registration Statement or the issue date of such U.S. Base Prospectus, U.S.
Preliminary Prospectus or U.S. Final Prospectus and any reference to the Canadian Base Prospectus, the Canadian Preliminary Prospectus
or the Canadian Final Prospectus shall be deemed to refer to and include the documents incorporated or deemed to be incorporated by reference
therein pursuant to Ontario Securities Law on or before the date of such Canadian Base Prospectus, Canadian Preliminary Prospectus or
Canadian Final Prospectus, as the case may be; and any reference herein to the terms “amend”, “amendment” or “supplement”
with respect to the Registration Statement, the U.S. Base Prospectus, the U.S. Preliminary Prospectus, the U.S. Final Prospectus, the
Canadian Base Prospectus, the Canadian Preliminary Prospectus or the Canadian Final Prospectus shall be deemed to refer to and include
the filing of any document under the Exchange Act or Ontario Securities Law, as applicable, after the Effective Date of the Registration
Statement or the issue date of the U.S. Base Prospectus, the U.S. Preliminary Prospectus, the U.S. Final Prospectus, the Canadian Base
Prospectus, the Canadian Preliminary Prospectus or the Canadian Final Prospectus, as the case may be, that purports to amend or supplement
any such document.
1.
Representations and Warranties. The Company represents and warrants to, and agrees with, each Underwriter as set forth below
in this Section 1.
(a)
The Company meets the general eligibility requirements for use of Form F-10 under the Securities Act and is eligible to use the Shelf
Procedures. At the time of filing of the Canadian Base Prospectus, the Company was eligible to use
the exemptions from certain prospectus requirements set out in Ontario Instrument 44-501 – Exemption from Certain Prospectus
Requirements for Well-Known Seasoned Issuers (Interim Class Order). A receipt has been issued by the OSC in respect of the Canadian
Base Prospectus and no order suspending the distribution of the Securities or ceasing the trading of any securities of the Company by
any persons has been issued by the OSC or any court, and no proceedings for that purpose are pending or, to the knowledge of the Company,
are contemplated by the OSC, and any request on the part of the OSC for additional information in relation to the Canadian Base Prospectus
has been complied with. The Registration Statement, in the form delivered to the Representatives, has become effective under the Securities
Act and no stop order suspending the effectiveness of the Registration Statement has been issued under the Securities Act, and no proceedings
for that purpose are pending or, to the knowledge of the Company, are contemplated by the SEC, and any request on the part of the SEC
for additional information in relation to the Registration Statement has been complied with.
(b)
(i) At its date and on the Closing Date, each of the Canadian Base Prospectus, the Canadian Preliminary Prospectus and the Canadian Final
Prospectus complied or will comply with Ontario Securities Law (including the Shelf Procedures); (ii) on the Effective Date, the U.S.
Base Prospectus conformed to the Canadian Base Prospectus, and at its date and at the Closing Date, the U.S. Final Prospectus will conform
to the Canadian Final Prospectus, except, in each case, for such deletions therefrom and additions thereto as are permitted or required
by Form F-10 and the applicable rules and regulations of the SEC; (iii) on the Effective Date, the Registration Statement complied and,
at the Closing Date, will comply, with the requirements of the Securities Act and the Trust Indenture Act; (iv) the Registration Statement,
on the Effective Date, did not and will not contain any untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary in order to make the statements therein not misleading; (v) the U.S. Final Prospectus, as of its date
and as of the Closing Date, did not and will not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading; (vi) at its date and at
the Closing Date, all information and statements (except information and statements relating solely to any of the Underwriters) contained
in the Canadian Preliminary Prospectus or the Canadian Final Prospectus or any amendment or supplement thereto, as the case may be, are
true and correct in all material respects at the time of delivery thereof and contain no misrepresentation and the Canadian Preliminary
Prospectus, the Canadian Final Prospectus and any amendment or supplement thereto constitutes full, true and plain disclosure of all material
facts relating to the Company and the Securities, as interpreted under Ontario Securities Law, and no material fact or information has
been omitted therefrom (except facts or information relating solely to any of the Underwriters) which is required under Ontario Securities
Law to be stated in such disclosure or is necessary to make the statements or information contained in such disclosure not misleading
in the light of the circumstances under which they were made; (vii) on the Effective Date and on the Closing Date each Indenture did or
will comply in all material respects with the applicable requirements of the Trust Indenture Act and the rules thereunder; (viii) (A)
the Disclosure Package (as defined below), and (B) each electronic road show, when taken together as a whole with the Disclosure Package,
as of the Applicable Time, did not contain any untrue statement of a material fact or omit to state any material fact necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however,
that (1) the Company makes no representations or warranties as to that part of the Registration Statement which shall constitute the Form
T-1 and (2) the representations and warranties contained in clauses (iii), (iv), (v), (vi) and (viii) above do not apply to statements
or omissions made in reliance upon and in conformity with information furnished in writing to the Company by or on behalf of the Underwriters
through the Representatives specifically for inclusion in the Registration Statement, the Canadian Preliminary Prospectus, the Canadian
Final Prospectus, the Disclosure Package, the U.S. Preliminary Prospectus or the U.S. Final Prospectus, it being understood and agreed
that the only such information furnished by or on behalf of any Underwriter consists of the information described as such in Section 8
hereof.
(c)
The documents incorporated or deemed to be incorporated by reference in the Registration Statement, the Canadian Preliminary Prospectus,
the Canadian Final Prospectus, the U.S. Final Prospectus and the Disclosure Package, at the time they were or at the time they are hereafter
filed with the SEC or the OSC complied and will comply in all material respects with the requirements of Ontario Securities Law and the
Exchange Act.
(d)
The Canadian Base Prospectus, the Canadian Preliminary Prospectus, the Canadian Final Prospectus and any amendments or supplements thereto
furnished to the Underwriters will be identical to the electronically transmitted copies thereof filed with the OSC in electronic format
on the System for Electronic Document Analysis and Retrieval, except to the extent permitted by Ontario Securities Law. The Registration
Statement, the U.S. Preliminary Prospectus, any Issuer Free Writing Prospectus, the U.S. Final Prospectus and any amendments or supplements
thereto furnished to the Underwriters will be identical to the electronically transmitted copies thereof filed with the SEC pursuant to
its Electronic Data Gathering, Analysis and Retrieval system, except to the extent permitted by Regulation S-T.
(e)
Each Issuer Free Writing Prospectus and the final term sheet prepared and filed pursuant to Section 5(b) hereof does not include any information
that conflicts with the information contained in the Registration Statement, including any document incorporated therein by reference
and any prospectus supplement deemed to be a part thereof that has not been superseded or modified. The foregoing sentence does not apply
to statements in or omissions from any Issuer Free Writing Prospectus based upon and in conformity with written information furnished
to the Company by any Underwriter through the Representatives specifically for use therein, it being understood and agreed that the only
such information furnished by or on behalf of any Underwriter consists of the information described as such in Section 8 hereof.
(f)
The Company is subject to Section 13 or 15(d) of the Exchange Act. The Company is a “reporting issuer” (or equivalent) in
each province of Canada and is not in default in any material respect of any requirement under applicable Ontario Securities Law or the
securities laws of any other province of Canada.
(g)
The Base Indenture has been duly qualified under the Trust Indenture Act and has been duly authorized, executed and delivered by the Company
and constitutes a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as
the enforcement thereof may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting creditors’
rights generally from time to time in effect and to general principles of equity, including, without limitation, concepts of materiality,
reasonableness, good faith and fair dealing, regardless of whether considered in a proceeding in equity or at law.
(h)
The Eighth Supplemental Indenture has been duly authorized and, on or before the Closing Date, will be duly executed and delivered by
the Company and, when duly executed and delivered in accordance with its terms by the Company and the Trustee, will constitute a valid
and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as the enforcement thereof
may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting creditors’ rights generally
from time to time in effect and to general principles of equity, including, without limitation, concepts of materiality, reasonableness,
good faith and fair dealing, regardless of whether considered in a proceeding in equity or at law.
(i)
The Securities to be purchased by the Underwriters from the Company are in the form contemplated by the applicable Indenture, have been
duly authorized for issuance and sale pursuant to this Agreement and the applicable Indenture and, at the Closing Date, will have been
duly executed by the Company and, when authenticated in the manner provided for in the applicable Indenture and delivered against payment
of the purchase price therefor, will constitute valid and binding obligations of the Company, enforceable in accordance with their terms,
except as the enforcement thereof may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting
creditors’ rights generally from time to time in effect and to general principles of equity, including, without limitation, concepts
of materiality, reasonableness, good faith and fair dealing, regardless of whether considered in a proceeding in equity or at law, and
the holders thereof will be entitled to the benefits of the applicable Indenture.
(j)
The Company has been duly incorporated and is valid and subsisting as a corporation under the laws of Ontario with all requisite corporate
power and authority to own or lease, as the case may be, and to operate, its properties and conduct its business as described in the Canadian
Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement. The Company is duly registered to
do business as an extra-provincial corporation or a foreign corporation and is in good standing under the laws of each such jurisdiction
which requires such registration, except where the failure to be so registered and in good standing could not reasonably be expected to
have a Material Adverse Effect.
(k)
Each of the Company’s subsidiaries that is a “significant subsidiary” (as such term is defined in Rule 1-02 of Regulation
S-X) (each, a “Significant Subsidiary”) (i) has been duly organized and is validly existing as a corporation, limited
liability company or partnership, as applicable, in good standing under the laws of the jurisdiction in which each is organized, with
requisite power and authority to own or lease, as the case may be, and to operate its respective properties and conduct its respective
business as described in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement
and (ii) is duly qualified or registered to do business as an extra jurisdictional entity or a foreign entity and is in good standing
under the laws of each jurisdiction which requires such qualification or registration, except, in the case of (ii), where the failure
to be so registered and in good standing could not reasonably be expected to have a Material Adverse Effect.
(l)
The Company has an authorized capitalization as set forth in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure
Package and the Registration Statement and all the issued shares of the Company have been duly and validly authorized and issued and are
fully paid and non-assessable; and all the outstanding shares of capital stock, or other ownership interests, of each Significant Subsidiary
of the Company have been duly and validly authorized and issued and are fully paid and non-assessable, as applicable, and except as otherwise
set forth in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement, all outstanding
shares of capital stock, or other ownership interests, of the Significant Subsidiaries are owned by the Company either directly or through
wholly owned subsidiaries free and clear of any perfected security interest or any other security interests, claims, liens or encumbrances.
(m)
There is no franchise, contract, agreement or other document of a character required to be described in the Registration Statement, Canadian
Final Prospectus, U.S. Final Prospectus or Disclosure Package, or to be filed as an exhibit thereto, which is not described or filed as
required (and the Canadian Preliminary Prospectus and the U.S. Preliminary Prospectus contain in all material respects the same description
of the foregoing matters contained in the Canadian Final Prospectus and the U.S. Final Prospectus, respectively); and the statements in
the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement under the headings “Description
of the Debt Securities”, “Description of the Notes”, “Material U.S. Federal Income Tax Considerations”,
“Material Canadian Income Tax Considerations”, “Legal Proceedings” and “Innovation and Research & Development—Intellectual
Property” insofar as such statements summarize legal matters, agreements, documents or proceedings discussed therein, are accurate
and fair summaries in all material respects of such legal matters, agreements, documents or proceedings.
(n)
The Company has full corporate power and authority to execute, deliver and perform its obligations under this Agreement and this Agreement
has been duly authorized, executed and delivered by the Company.
(o)
The Company is not and, after giving effect to the offering and sale of the Securities and the application of the proceeds thereof as
described in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement, will not
be an “investment company” as defined in the Investment Company Act of 1940, as amended, and the rules and regulations of
the SEC promulgated thereunder.
(p)
No consent, approval, authorization, filing with or order of any court or governmental agency or body is required in connection with the
transactions contemplated herein except such as have been obtained under the Securities Act, Ontario Securities Law and the Trust Indenture
Act or as may be required under the blue sky laws of any jurisdiction in connection with the purchase and distribution of the Securities
by the Underwriters in the manner contemplated herein and in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure
Package and the Registration Statement, other than the filing of any required reports of exempt distribution in respect of sales of the
Securities in Canada.
(q)
Neither the issue and sale of the Securities nor the consummation of any other of the transactions herein contemplated nor the fulfillment
of the terms hereof will conflict with, result in a breach or violation of, and do not and will not create a state of facts which, after
notice or lapse of time or both, will conflict with or result in a breach of or default under, or imposition of any lien, charge or encumbrance
upon any property or assets of the Company or any of its subsidiaries pursuant to, (i) the restated articles of incorporation or by-laws
of the Company or any of its subsidiaries, (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement,
loan agreement or other agreement, obligation, condition, covenant or instrument to which the Company or any of its subsidiaries is a
party or bound or to which its or their property is subject except for any such conflicts, breaches, violations, defaults, liens, charges
or encumbrances that could not reasonably be expected to have a Material Adverse Effect, or (iii) any statute, law, rule, regulation,
judgment, order or decree applicable to the Company or any of its subsidiaries of any court, regulatory body, administrative agency, governmental
body, arbitrator or other authority having jurisdiction over the Company or any of its subsidiaries or any of its or their properties.
(r)
The consolidated historical financial statements of the Company and its consolidated subsidiaries included or incorporated by reference
in the Canadian Final Prospectus, the U.S. Final Prospectus, the Registration Statement and the Disclosure Package present fairly the
financial condition, results of operations and cash flows of the Company as of the dates and for the periods indicated and comply as to
form in all material respects with the applicable accounting requirements of Ontario Securities Law and Form F-10 under the Securities
Act and have been prepared in conformity with U.S. generally accepted accounting principles applied on a consistent basis throughout the
periods involved (except as otherwise noted therein). The selected financial data set forth under the caption “Summary—Selected
Consolidated Financial and Other Data” in the Canadian Final Prospectus, the U.S. Final Prospectus, the Registration Statement and
the Disclosure Package fairly present, on the basis stated in the Canadian Final Prospectus, the U.S. Final Prospectus, the Registration
Statement and the Disclosure Package, the information included therein.
(s)
No action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company
or any of its subsidiaries or its or their property is pending or, to the best knowledge of the Company, threatened that could reasonably
be expected, individually or in the aggregate, to have a Material Adverse Effect or have a material adverse effect on the performance
by the Company of its obligations under this Agreement or the consummation of any of the transactions contemplated hereby, except as set
forth in or contemplated in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement.
(t)
Except as disclosed in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement
or as would not be material to the Company and its subsidiaries considered as one enterprise, each of the Company and each of its subsidiaries
have good and marketable title to all real properties and all other properties and assets owned by them as are necessary to the conduct
of its operations as described in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration
Statement, in each case free from liens, charges, encumbrances and defects that would materially affect the value thereof or materially
interfere with the use made or to be made thereof by them; and except as disclosed in the Canadian Final Prospectus, the U.S. Final Prospectus,
the Disclosure Package and the Registration Statement or as would not be material to the Company and its subsidiaries considered as one
enterprise, the Company and each of its subsidiaries hold any leased real or personal property as are necessary to the conduct of its
operations as described in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement
under valid and enforceable leases with no terms or provisions that would materially interfere with the use made or to be made thereof
by them and no defaults exist thereunder.
(u)
Neither the Company nor any subsidiary is in violation or default of (i) any provision of its articles or charter, bylaws or other constating
documents, (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement,
obligation, condition, covenant or instrument to which it is a party or bound or to which its property is subject, or (iii) any statute,
law, rule, regulation, judgment, order or decree of any court, regulatory body, administrative agency, governmental body, arbitrator or
other authority having jurisdiction over the Company or such subsidiary or any of its properties, as applicable, except, in the case of
(i), as it relates to subsidiaries (other than any Significant Subsidiary) of the Company, (ii) and (iii), where such violation or default
would not reasonably be expected to have a Material Adverse Effect.
(v)
Deloitte LLP, who have audited or reviewed (as applicable) the financial statements of the Company and its consolidated subsidiaries and
delivered their report with respect to the audited consolidated financial statements included in and incorporated by reference in the
Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement, are independent public accountants
with respect to the Company within the meaning of the Securities Act, the Public Company Accounting Oversight Board (United States) and
Ontario Securities Laws.
(w)
There are no transfer taxes or other similar fees or charges under U.S. or Canadian federal law or the laws of any state, province or
any political subdivision thereof, required to be paid in connection with the execution and delivery of this Agreement or the issuance
by the Company or sale by the Company of the Securities.
(x)
The Company has filed all tax returns that are required to be filed (except in any case in which the failure so to file could not reasonably
be expected to have a Material Adverse Effect and except as set forth in or contemplated in the Canadian Final Prospectus, the U.S. Final
Prospectus, the Disclosure Package and the Registration Statement) or has requested extensions thereof and has paid all taxes required
to be paid by it and any other assessment, fine or penalty levied against it, to the extent that any of the foregoing is due and payable,
except (i) for any such payment, tax assessment, fine or penalty that is currently being contested in good faith or as could not reasonably
be expected to have a Material Adverse Effect and (ii) as set forth in or contemplated in the Canadian Final Prospectus, the U.S. Final
Prospectus, the Disclosure Package and the Registration Statement (exclusive of any supplement thereto).
(y)
No labor problem or dispute with the employees of the Company or any of its subsidiaries exists or, to the knowledge of the Company, is
threatened or imminent, and the Company is not aware of any existing or imminent labor disturbance by the employees of any of its or its
subsidiaries’ principal suppliers, contractors or customers, in each case that could reasonably be expected to have a Material Adverse
Effect, except as set forth in or contemplated in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and
the Registration Statement (exclusive of any supplement thereto).
(z)
The Company and each of its subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks
and in such amounts as are prudent and customary in the businesses in which they are engaged; all policies of insurance and fidelity or
surety bonds insuring the Company or any of its subsidiaries that are material to the Company and its subsidiaries considered as one enterprise
are in full force and effect; the Company and its subsidiaries are in compliance with the terms of such policies and instruments in all
material respects; and there are no material claims by the Company or any of its subsidiaries under any such policy or instrument as to
which any insurance company is denying liability or defending under a reservation of rights clause; neither the Company nor any such subsidiary
has been refused any insurance coverage sought or applied for that would be material to the Company and its subsidiaries considered as
one enterprise; and neither the Company nor any such subsidiary has any reason to believe that it will not be able to renew all material
existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary
to continue its business at a cost that could not reasonably be expected to have a Material Adverse Effect, except as set forth in or
contemplated in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement (exclusive
of any supplement thereto).
(aa)
Except as could not reasonably be expected to have a Material Adverse Effect on the ability of the Company to perform its obligations
under this Agreement, the transactions contemplated herein, the Indenture and the Securities, no subsidiary of the Company is currently
prohibited, directly or indirectly, from paying any dividends to the Company, from making any other distribution on such subsidiary’s
capital stock, from repaying to the Company any loans or advances to such subsidiary from the Company or from transferring any of such
subsidiary’s property or assets to the Company or any other subsidiary of the Company, except as described in or contemplated by
the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement (exclusive of any supplement
thereto).
(bb)
Except as could not reasonably be expected to have a Material Adverse Effect, the Company and its subsidiaries possess all licenses, certificates,
permits and other authorizations issued by all applicable foreign, federal, provincial, state, municipal or local authorities necessary
to conduct their respective businesses, and neither the Company nor any such subsidiary has received any notice of proceedings relating
to the revocation or modification of any such license, certificate, authorization or permit which, singly or in the aggregate, if the
subject of an unfavorable decision, ruling or finding, could reasonably be expected to have a Material Adverse Effect, except as set forth
in or contemplated in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement
(exclusive of any supplement thereto).
(cc)
The Company and each of its subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance
that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain
asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization;
and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is
taken with respect to any differences. The Company and its subsidiaries’ internal controls over financial reporting are effective
and the Company and its subsidiaries are not aware of any material weakness in their internal controls over financial reporting.
(dd)
The Company and its subsidiaries maintain “disclosure controls and procedures” (as such term is defined in Rule 13a-15(e)
under the Exchange Act); such disclosure controls and procedures comply with the requirements of Ontario Securities Law and the Exchange
Act and are designed to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known
to the Company’s Chief Executive Officer and its Chief Financial Officer by others within those entities, and such disclosure controls
and procedures are effective to perform the functions for which they were established.
(ee)
The Company has not taken, directly or indirectly, any action designed to or that would constitute or that could reasonably be expected
to cause or result in, under Ontario Securities Law or the Exchange Act or otherwise, stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of the Securities. The Company has not issued, nor will it issue, without the
prior consent of the Underwriters, any stabilization announcement referring to the proposed issue of Securities. The Company authorizes
the Underwriters to make such public disclosure of information relating to stabilization of the Securities as is required by applicable
law, regulation and guidance.
(ff)
The Company and its subsidiaries are (i) in compliance with any and all applicable foreign, federal, provincial, state, municipal and
local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or
wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received and are in compliance with all permits,
licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) have
not received notice of any actual or potential liability under any environmental law, except where such non-compliance with Environmental
Laws, failure to receive or be in compliance with required permits, licenses or other approvals, or liability could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect, except as set forth in or contemplated in the Canadian
Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement. Except as set forth in the Canadian
Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement, neither the Company nor any of the
subsidiaries has been named as a “potentially responsible party” under the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as amended.
(gg)
In the ordinary course of its business, the Company periodically reviews the effect of Environmental Laws on the business, operations
and properties of the Company and its subsidiaries, in the course of which it identifies and evaluates associated costs and liabilities
(including, without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with
Environmental Laws, or any permit, license or approval, any related constraints on operating activities and any potential liabilities
to third parties). On the basis of such review, the Company has reasonably concluded that such associated costs and liabilities could
not, singly or in the aggregate, reasonably be expected to have a Material Adverse Effect, except as set forth in or contemplated in the
Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement (exclusive of any supplement
thereto).
(hh)
None of the following events has occurred or exists: (i) except as could not reasonably be expected to have a Material Adverse Effect,
a failure to fulfill the obligations, if any, under the minimum funding standards of Section 302 of the United States Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), and the regulations and published interpretations thereunder with
respect to a Plan, determined without regard to any waiver of such obligations or extension of any amortization period; (ii) an audit
or investigation by the Internal Revenue Service, the U.S. Department of Labor, the Pension Benefit Guaranty Corporation or any other
federal or state governmental agency or any foreign regulatory agency with respect to the employment or compensation of employees by any
of the Company or any of its subsidiaries that could reasonably be expected to have a Material Adverse Effect; or (iii) any breach of
any contractual obligation, or any violation of law or applicable qualification standards, with respect to the employment or compensation
of employees by the Company or any of its subsidiaries that could reasonably be expected to have a Material Adverse Effect. None of the
following events has occurred or is reasonably likely to occur: (i) a material increase in the aggregate amount of contributions required
to be made to all Plans in the current fiscal year of the Company and its subsidiaries compared to the amount of such contributions made
in the most recently completed fiscal year of the Company and its subsidiaries; (ii) a material increase in the “accumulated post-retirement
benefit obligations” (within the meaning of Statement of Financial Accounting Standards 106) of the Company and its subsidiaries
compared to the amount of such obligations in the most recently completed fiscal year of the Company and its subsidiaries; (iii) any event
or condition giving rise to a liability under Title IV of ERISA that could reasonably be expected to have a Material Adverse Effect; or
(iv) the filing of a claim by one or more employees or former employees of the Company or any of its subsidiaries related to their employment
that could reasonably be expected to have a Material Adverse Effect. For purposes of this paragraph, the term “Plan” means
a plan (within the meaning of Section 3(3) of ERISA) subject to Title IV of ERISA with respect to which the Company or any of its subsidiaries
may have any liability. All contributions or premiums required to be made or paid by any of the Company or its subsidiaries to any Canadian
pension or other Canadian employee benefit plan have been made on a timely basis in accordance with the terms of such plans and all applicable
laws and each such Canadian pension plan or Canadian benefit plan is fully funded on a solvency basis and going concern basis (using actuarial
methods and assumptions which are consistent with the valuations last filed with the applicable governmental authorities and which are
consistent with generally accepted accounting principles), except in each case where the failure to make such payment or to be so funded
would not have a Material Adverse Effect. All material obligations of each of the Company and its subsidiaries required to be performed
in connection with any Canadian pension plans and the funding agreements therefor have been performed on a timely basis.
(ii)
There is and has been no failure on the part of the Company and any of the Company’s directors or officers, in their capacities
as such, to comply with any provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith
(the “Sarbanes-Oxley Act”), including Section 402 relating to loans and Sections 302 and 906 relating to certifications.
(jj)
To the knowledge of the Company, neither the Company nor any of its subsidiaries nor any director, officer, agent, employee or affiliate
of the Company or any of its subsidiaries is aware of or has taken any action, directly or indirectly, that would result in a violation
by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”),
the U.K. Bribery Act 2010 (the “Bribery Act”), the Corruption of Foreign Public Officials Act (Canada) (the
“CFPOA”) or the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
(the “OECD Convention”) or other applicable anti-corruption law, including, without limitation, making use of the mails
or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization
of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign
official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign
political office, in contravention of the FCPA, the Bribery Act, the CFPOA or the OECD Convention or other applicable anti-corruption
law; and, to the knowledge of the Company, the Company, its subsidiaries and its affiliates have conducted their businesses in compliance
with the FCPA, the Bribery Act, the CFPOA and the OECD Convention or other applicable anti-corruption law. The Company, its subsidiaries
and, to the knowledge of the Company, its affiliates, have instituted and maintain policies and procedures designed to ensure, and which
are reasonably expected to continue to ensure, continued compliance therewith. No part of the proceeds of the offering will be used, directly
or indirectly, in violation of the FCPA, the Bribery Act, the CFPOA or the OECD Convention or other applicable anti-corruption law.
(kk)
To the knowledge of the Company, the operations of the Company and its subsidiaries are and have been conducted at all times in compliance
with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as
amended, the Proceeds of Crime Money (Money Laundering) Act (Canada), the Money Laundering, Terrorist Financing and Transfer of
Funds (Information on the Payer) Regulations 2017 in the United Kingdom, Directive (EU) 2015/849 in the European Union and the money laundering
statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines
issued, administered or enforced by any governmental agency to which the Company and its subsidiaries are subject (collectively, the “Money
Laundering Laws”) and, no action, suit or proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the best knowledge
of the Company, threatened.
(ll)
Neither the Company
nor any of its subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or
any of its subsidiaries (i) is currently subject to any sanctions administered or imposed by the United States (including any administered
or enforced by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”), the U.S. Department of
State or the Bureau of Industry and Security of the U.S. Department of Commerce), the United Nations Security Council (“UNSC”),
the European Union (“EU”), His Majesty’s Treasury (“HMT”) or by Canada (including any administered
by or enforced by Global Affairs Canada or the Royal Canadian Mounted Police) or (ii) will, directly or indirectly, use the proceeds of
this offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person
in any manner that will result in a violation of any economic sanctions imposed by the United States (including any administered or enforced
by OFAC, the U.S. Department of State, or the Bureau of Industry and Security of the U.S. Department of Commerce), the UNSC, the EU, the
United Kingdom (including sanctions administered or controlled by HMT) or Canada (including sanctions administered by or enforced by Global
Affairs Canada or the Royal Canadian Mounted Police) (collectively, “Sanctions” and such persons, “Sanctioned
Persons”) by, or could result in the imposition of Sanctions against, any person (including any person participating in the
offering, whether as underwriter, advisor, investor or otherwise).
(mm)
Neither the Company nor any of its subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate
of the Company or any of its subsidiaries, is a person that is, or is 50% or more owned in the aggregate or otherwise controlled by persons
that are: (i) the subject of any Sanctions; or (ii) located, organized or resident in a country or territory that is, or whose government
is, the subject of Sanctions that broadly prohibit dealings with that country or territory (currently, Cuba, Crimea, the Kherson, Zaporizhzhya,
Donetsk and Luhansk regions of Ukraine, Iran, North Korea and Syria) (collectively, “Sanctioned Countries,” and each,
a “Sanctioned Country”).
(nn)
Except as has been disclosed to the Underwriters or is not material to the analysis under any Sanctions, neither the Company nor any of
its subsidiaries has engaged in any dealings or transactions with or for the benefit of a Sanctioned Person, or with or in a Sanctioned
Country, in the preceding three years, nor does the Company or any of its subsidiaries have any plans to increase its dealings or transactions
with Sanctioned Persons, or with or in Sanctioned Countries.
(oo)
The Company and its subsidiaries own, possess, license or have other rights to use, on reasonable terms, all patents, patent applications,
trade and service marks, trade and service mark registrations, trade names, copyrights, licenses, inventions, trade secrets, technology,
know-how and other intellectual property (collectively, the “Intellectual Property”) necessary for the conduct of the
Company’s business as now conducted or as proposed in each case as described in the Canadian Final Prospectus, the U.S. Final Prospectus,
the Disclosure Package and the Registration Statement to be conducted, except as could not reasonably be expected to have a Material Adverse
Effect. Except as set forth in the Canadian Preliminary Prospectus, the U.S. Preliminary Prospectus, the Canadian Final Prospectus, the
U.S. Final Prospectus, the Disclosure Package and the Registration Statement or as could not reasonably be expected to have a Material
Adverse Effect (i) there are no rights of third parties to any such Intellectual Property; (ii) there is no material infringement by third
parties of any such Intellectual Property; (iii) there is no pending or threatened action, suit, proceeding or claim by others challenging
the Company’s rights in or to any such Intellectual Property, and the Company is unaware of any facts which would form a reasonable
basis for any such claim; (iv) there is no pending or threatened action, suit, proceeding or claim by others challenging the validity
or scope of any such Intellectual Property, and the Company is unaware of any facts which would form a reasonable basis for any such claim;
(v) there is no pending or threatened action, suit, proceeding or claim by others that the Company infringes or otherwise violates any
patent, trademark, copyright, trade secret or other proprietary rights of others, and the Company is unaware of any other fact which would
form a reasonable basis for any such claim; (vi) there is no U.S. or Canadian patent or published U.S. or Canadian patent application
which contains claims that dominate or may dominate any Intellectual Property described in the Canadian Final Prospectus, the U.S. Final
Prospectus, the Disclosure Package and the Registration Statement as being owned by or licensed to the Company or that interferes with
the issued or pending claims of any such Intellectual Property; and (vii) there is no prior act of which the Company is aware that may
render any U.S. or Canadian patent held by the Company invalid or any U.S. or Canadian patent application held by the Company unpatentable
which has not been disclosed to the U.S. Patent and Trademark Office or the Canadian Intellectual Property Office.
(pp)
Except as disclosed in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement,
the Company (i) does not have any material lending or other relationship with any bank or lending affiliate of any of the Underwriters
and (ii) does not intend to use any of the proceeds from the sale of the Securities hereunder to repay any outstanding debt owed to any
affiliate of any of the Underwriters.
(qq)
Neither the Company nor any of its subsidiaries nor any of its or their properties or assets has any immunity from the jurisdiction of
any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution or
otherwise) under the laws of any jurisdiction in which it has been incorporated or in which any of its property or assets are held.
(rr)
Except as disclosed in the Registration Statement, the Canadian Final Prospectus, the U.S. Final Prospectus and the Disclosure Package,
since the date of the most recent audited financial statements included or incorporated by reference in the Canadian Final Prospectus,
the U.S. Final Prospectus, the Disclosure Package and the Registration Statement (exclusive of any supplement thereto), there has been
no Material Adverse Effect.
(ss)
Except as disclosed in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement,
there are no contracts, agreements or understandings between the Company and any person with respect to the offering of the Securities
that would give rise to a valid claim against the Company or any Underwriter for a brokerage commission, finder’s fee or other like
payment.
(tt)
Except as disclosed in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement,
no acquisition has been made by the Company during its three most recently completed fiscal years that would be a significant acquisition
for the purposes of Ontario Securities Law, and no proposed acquisition by the Company has progressed to a state where a reasonable person
would believe that the likelihood of the Company completing the acquisition is high and that, if completed by the Company at the date
of the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement, would be a significant
acquisition for the purposes of Ontario Securities Law, in each case, that would require the prescribed disclosure in the Canadian Final
Prospectus, the U.S. Final Prospectus, the Disclosure Package and the Registration Statement pursuant to such laws.
(uu)
Other than (i) that certain credit agreement dated March 6, 2023, among the Company, The Bank of Nova Scotia, as administrative agent,
and the several financial institutions named therein as lenders, (ii) that certain second amended and restated credit agreement dated
as of May 18, 2022, as amended by that certain amending agreement dated as of May 26, 2023, among the Company, The Bank of Nova Scotia,
as administrative agent, and the several financial institutions named therein as lenders, (iii) that certain credit agreement dated as
of July 8, 2011, among the Company, The Bank of Nova Scotia, as administrative agent, and the several financial institutions named therein
as lenders, as amended by that certain First Amendment dated as of June 20, 2013, as further amended by that certain Second Amendment
dated as of May 16, 2014, as further amended by that certain Third Amendment dated as of May 3, 2018, as further amended by that certain
Fourth Amendment dated as of April 28, 2021, as further amended by that certain Fifth Amendment dated as of May 18, 2022 and as further
amended by that certain Sixth Amendment dated as of April 27, 2023, (iv) the Base Indenture, (v) the first supplemental indenture thereto
dated as of June 16, 2014 relating to the issue of 3.625% Senior Notes due 2024, (vi) the second supplemental indenture thereto dated
as of September 23, 2015 relating to the issue of 4.150% Senior Notes due 2025, (vii) the fourth supplemental indenture thereto dated
as of September 25, 2017 relating to the issue of 1.500% Senior Notes due 2027, (viii) the fifth supplemental indenture thereto dated
as of June 15, 2020 relating to the issue of 2.450% Senior Notes due 2030, (ix) the sixth supplemental indenture dated as of March 17,
2023 relating to the issue of 4.375% Senior Notes due 2032, (x) the seventh supplemental indenture dated as of March 21, 2023 relating
to the issue of 5.500% Senior Notes due 2033 and 5.980% Senior Notes due 2026, (xi) the indenture dated as of December 11, 2015, between
the Company and BNY Trust Company of Canada, as trustee, and (xii) the second supplemental indenture thereto dated as of March 10, 2023
relating to the issue of 4.95% Senior Notes due 2031, there are no other indentures, loan or credit agreements, notes, contracts, leases,
agreements or other instrument to which the Company or any subsidiary of the Company is a party or by which it or any of them may be bound
or to which any of the property or assets of the Company or any such subsidiary is subject which are material to the Company and its subsidiaries
considered as one enterprise.
(vv)
Any statistical and market-related data included in the Canadian Final Prospectus, the U.S. Final Prospectus, the Disclosure Package and
the Registration Statement are based on or derived from sources that the Company believes, after reasonable inquiry, to be reliable and
accurate and, to the extent required, the Company has obtained the written consent to the use of such data from such sources.
(ww)
Except as would not reasonably be expected to result in a Material Adverse Effect (i) the Company is not aware of any security breach
or incident, unauthorized access or disclosure, or other compromise of or relating to the Company or its subsidiaries information technology
and computer systems, networks, hardware, software, data and databases (including the data and information of their respective customers,
employees, suppliers, vendors and any third party data maintained, processed or stored by the Company and its subsidiaries, and any such
data processed or stored by third parties on behalf of the Company and its subsidiaries), equipment or technology (collectively, “IT
Systems and Data”); (ii) neither the Company nor its subsidiaries have been notified of, and each of them have no knowledge
of any event or condition that could result in, any security breach or incident, unauthorized access or disclosure or other compromise
to their IT Systems and Data; and (iii) the Company and its subsidiaries have implemented appropriate controls, policies, procedures,
and technological safeguards to maintain and protect the integrity, continuous operation, redundancy and security of their IT Systems
and Data reasonably consistent with industry standards and practices, or as required by applicable regulatory standards. The Company and
its subsidiaries are presently in material compliance with all applicable laws or statutes and all judgments, orders, rules and regulations
of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy
and security of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation
or modification.
Any certificate signed by any officer of the Company and delivered to the
Representatives or counsel for the Underwriters in connection with the offering of the Securities shall be deemed a representation and
warranty by the Company, as to matters covered thereby, to each Underwriter.
2.
Purchase and Sale. Subject to the terms and conditions and in reliance upon the representations and warranties herein set
forth, the Company agrees to sell to each Underwriter, and each Underwriter agrees, severally and not jointly, to purchase from the Company,
at the purchase price set forth in Schedule I hereto the principal amount of the Securities set forth opposite such Underwriter’s
name in Schedule II hereto.
3.
Delivery and Payment. Delivery of and payment for the Securities shall be made on the date and at the time specified in
Schedule I hereto or at such time on such later date not more than two Business Days after the foregoing date as the Representatives shall
designate, which date and time may be postponed by agreement between the Representatives and the Company or as provided in Section 9 hereof
(such date and time of delivery and payment for the Securities being herein called the “Closing Date”). Delivery of
the Securities shall be made to the Representatives for the respective accounts of the several Underwriters against payment by the several
Underwriters through the Representatives of the purchase price thereof to or upon the order of the Company by wire transfer payable in
same-day funds to an account specified by the Company. Delivery of the Securities shall be made through the facilities of The Depositary
Trust Company (“DTC”) unless the Representatives shall otherwise instruct.
4.
Offering by Underwriters.
(a)
It is understood that the several Underwriters propose to offer the Securities for sale to the public as set forth in the U.S. Final Prospectus.
The several Underwriters may also offer the Securities to purchasers located or resident in Canada on a private placement basis pursuant
to exemptions from the prospectus requirements of Canadian securities laws as set forth in Section 4(b) of this Agreement.
(b)
The Underwriters shall provide each purchaser of the Securities that is located in Canada or that is a resident of Canada with a copy
of the form of Canadian offering memorandum approved by the Company and the Underwriters, pursuant to which each such purchaser will make
the deemed representations and warranties contained therein for the benefit of the Company and the Underwriters. Sales of the Securities
in Canada shall only be made to non-individual purchasers located or resident in Ontario, Quebec, Alberta or British Columbia (the “Permitted
Canadian Jurisdictions”) who qualify as both “accredited investors” as defined in Section 73.3(1) of the Securities
Act (Ontario) or National Instrument 45-106 Prospectus Exemptions (“NI 45-106”) and “permitted clients”
within the meaning of National Instrument 31-103 – Registration Requirements, Exemptions and Ongoing Registrant Obligations.
Each Underwriter will provide the Company with the information pertaining to each purchaser of the Securities in Canada as is required
to be disclosed in Schedule 1 of Form 45-106F1 under NI 45-106 or similar forms required to be filed under applicable securities laws
within three Business Days after the Closing Date.
5.
Agreements. The Company agrees with the several Underwriters that:
(a)
Prior to the termination of the offering of the Securities, the Company will not file any amendment of the Registration Statement, the
Canadian Base Prospectus, the U.S. Base Prospectus, the Canadian Preliminary Prospectus, the U.S. Preliminary Prospectus, the Canadian
Final Prospectus or the U.S. Final Prospectus, or any amended Canadian Base Prospectus, U.S. Base Prospectus, Canadian Preliminary Prospectus,
U.S. Preliminary Prospectus, Canadian Final Prospectus or U.S. Final Prospectus unless the Company has furnished you a copy for your review
prior to filing and will not file any such proposed amendment or supplement to which you reasonably object. The Company will cause the
Canadian Final Prospectus and the U.S. Final Prospectus, properly completed, and any supplement thereto to be filed in a form approved
by the Representatives and shall file (i) such Canadian Final Prospectus with the OSC in accordance with the Shelf Procedures and (ii)
such U.S. Final Prospectus with the SEC pursuant to General Instruction II.L of Form F-10 not later than the SEC’s close of business
on the Business Day following the date of the filing thereof with the OSC. The Company will promptly file all reports required to be filed
by it with the OSC pursuant to Ontario Securities Law and the SEC pursuant to Section 13(a), 13(c) or 15(d) of the Exchange Act for so
long as the delivery of a prospectus (or in lieu thereof, a notice referred to in Rule 173(a)) is required under the Securities Act in
connection with the offering or sale of the Securities. During such same period, the Company will advise the Representatives, promptly
after it receives notice thereof, (i) of the time when any amendment to the Canadian Final Prospectus has been filed or receipted, (ii)
when any amendment to the Registration Statement has been filed or becomes effective or any supplement to the Canadian Base Prospectus
or any amended Canadian Final Prospectus or U.S. Final Prospectus has been filed with the OSC or the SEC, (iii) of the issuance by the
OSC (or other Canadian securities regulatory authorities) or the SEC of any stop order or cease trade order or of any order preventing
or suspending the use of any prospectus relating to the Securities, (iv) of the suspension of the qualification of such Securities for
offering or sale in any jurisdiction, (v) of the initiation or threatening of any proceeding for any such purpose, or (vi) of any request
by the OSC or the SEC for the amending or supplementing of the Registration Statement, the Canadian Final Prospectus or the U.S. Final
Prospectus or for additional information relating to the Securities. The Company will use its reasonable efforts to prevent the issuance
of any such stop order or cease trade order or any such order preventing or suspending the use of any prospectus relating to the Securities
or the suspension of any such qualification and, in the event of the issuance of any such stop order or cease trade order or of any such
order preventing or suspending the use of any prospectus relating to the Securities or suspending any such qualification, to use its reasonable
efforts to obtain as soon as possible the withdrawal of such order.
(b)
The Company will prepare a final term sheet, containing solely a description of final terms of the Securities and the offering thereof,
in the form approved by the Representatives and attached as Schedule IV hereto and will file such term sheet pursuant to Rule 433(d) within
the time required by such Rule.
(c)
During the period from the date hereof until completion of the distribution of the Securities, the Company shall promptly notify the Representatives
in writing of:
(i)
any change (actual, anticipated, contemplated or threatened, financial or otherwise) in the business, affairs, operations, assets, liabilities
(contingent or otherwise), prospects or capital of the Company and the Company’s subsidiaries on a consolidated basis;
(ii)
any material fact that has arisen or has been discovered which would have been required to have been stated in any Canadian Preliminary
Prospectus, the Canadian Final Prospectus, the U.S. Final Prospectus or the Disclosure Package, each as then amended or supplemented,
had the fact arisen or been discovered on, or prior to, the date of the Canadian Preliminary Prospectus, the Canadian Final Prospectus,
the U.S. Final Prospectus or the Disclosure Package, as the case may be; and
(iii)
any change in any material fact (which for the purposes of this Agreement shall be deemed to include the disclosure of any previously
undisclosed material fact) in any Canadian Preliminary Prospectus, the Canadian Final Prospectus, the U.S. Final Prospectus or the Disclosure
Package, or the existence of any new material fact,
which change or new material fact is, or may be, of
such a nature as:
(i)
to render the Canadian Preliminary Prospectus, the Canadian Final Prospectus, the U.S. Final Prospectus or the Disclosure Package, as
they exist taken together in their entirety immediately prior to such change or material fact, misleading or untrue or would result in
any of such documents, as they exist taken together in their entirety immediately prior to such change or material fact, containing a
misrepresentation;
(ii)
to cause the Canadian Preliminary Prospectus, the Canadian Final Prospectus, the U.S. Final Prospectus or the Disclosure Package, each
as then supplemented, to include any untrue statement of a material fact or omit to state any material fact necessary to make the statements
therein in the light of the circumstances under which they were made at such time not misleading;
(iii)
to make it necessary to amend the Registration Statement, file a new registration statement or supplement the Canadian Final Prospectus,
the U.S. Final Prospectus or the Disclosure Package to comply with the Securities Act or the Exchange Act, or the respective rules thereunder,
including in connection with use or delivery of the Canadian Final Prospectus or the U.S. Final Prospectus;
(iv)
would result in the Canadian Preliminary Prospectus, the Canadian Final Prospectus, the U.S. Final Prospectus or the Disclosure Package,
as they exist taken together in their entirety immediately prior to such change or material fact, not complying with any Ontario Securities
Law; or
(v)
could reasonably be expected to have a Material Adverse Effect.
The Company shall in good faith discuss with
the Representatives any fact or change (actual, anticipated, contemplated or threatened, financial or otherwise) which is of such a nature
that there is reasonable doubt as to whether notice in writing need be given to the Representatives pursuant to this Section. During the
period from the date hereof until completion of the distribution of the Securities and at any time when a prospectus relating to the Securities
is required to be delivered under the Securities Act (including in circumstances where such requirement may be satisfied pursuant to Rule
172), the Company shall promptly comply with all applicable filing and other requirements under the Securities Act and Ontario Securities
Law arising as a result of any change, fact, event or circumstance referred to in this Section and shall promptly, and in any event within
any time limit prescribed under the Securities Act and applicable Ontario Securities Law, (i) prepare and file with the OSC and the SEC,
subject to the second sentence of paragraph (a) of this Section 5, an amendment or supplement or new registration statement which will
correct such statement or omission or effect such compliance, (ii) use its best efforts to have any amendment to the Registration Statement
or new registration statement declared effective as soon as practicable in order to avoid any disruption in use of the Canadian Final
Prospectus or U.S. Final Prospectus and (iii) thereafter supply any supplemented Canadian Final Prospectus, U.S. Final Prospectus and
Disclosure Package to you in such quantities as you may reasonably request and shall comply with its obligations hereunder in respect
thereof.
(d)
As soon as practicable, the Company will make generally available to its security holders and to the Representatives an earnings statement
or statements of the Company and its subsidiaries which will satisfy the provisions of Section 11(a) of the Securities Act and Rule 158.
(e)
The Company will furnish to the Representatives and counsel for the Underwriters, without charge, signed copies of the Registration Statement
(including exhibits thereto) and to each other Underwriter a copy of the Registration Statement (without exhibits thereto) and, so long
as delivery of a prospectus by an Underwriter or dealer may be required by the Securities Act (including in circumstances where such requirement
may be satisfied pursuant to Rule 172), as many copies of each Canadian Base Prospectus, U.S. Base Prospectus, Canadian Final Prospectus,
U.S. Final Prospectus, and each Issuer Free Writing Prospectus and any supplement thereto as the Representatives may reasonably request.
The Company will pay the expenses of printing or other production of all documents relating to the offering.
(f)
The Company will arrange, if necessary, for the qualification of the Securities for sale under the laws of such jurisdictions as the Representatives
may designate and will maintain such qualifications in effect so long as required for the distribution of the Securities; provided
that in no event shall the Company be obligated to qualify to do business in any jurisdiction where it is not now so qualified or to take
any action that would subject it to service of process in suits, other than those arising out of the offering or sale of the Securities,
in any jurisdiction where it is not now so subject; provided further that the Securities may not be offered in any jurisdiction
other than the Province of Ontario or the United States in a manner that would require the Company to comply with any registration, prospectus,
continuous disclosure, filing or other similar requirements under the applicable securities laws of such jurisdiction, other than with
respect to filing reports of exempt distribution with Canadian securities regulatory authorities.
(g)
The Company agrees that, unless it has or shall have obtained the prior written consent of the Representatives, and each Underwriter,
severally and not jointly, agrees with the Company that, unless it has or shall have obtained, as the case may be, the prior written consent
of the Company, it has not made and will not make any offer relating to the Securities that would constitute an Issuer Free Writing Prospectus
or that would otherwise constitute a “free writing prospectus” (as defined in Rule 405) required to be filed by the Company
with the SEC or retained by the Company under Rule 433, other than a free writing prospectus containing the information contained in the
final term sheet prepared and filed pursuant to Section 5(b) hereto; provided that the prior written consent of the parties hereto
shall be deemed to have been given in respect of the Free Writing Prospectuses included in Schedule III hereto and any electronic road
show. Any such free writing prospectus consented to by the Representatives or the Company is hereinafter referred to as a “Permitted
Free Writing Prospectus.” The Company agrees that (x) it has treated and will treat, as the case may be, each Permitted Free
Writing Prospectus as an Issuer Free Writing Prospectus and (y) it has complied and will comply, as the case may be, with the requirements
of Rules 164 and 433 applicable to any Permitted Free Writing Prospectus, including in respect of timely filing with the SEC, legending
and record keeping.
(h)
The Company will not, without the prior written consent of the Representatives, offer, sell, contract to sell, pledge, or otherwise dispose
of (or enter into any transaction which is designed to, or might reasonably be expected to, result in the disposition (whether by actual
disposition or effective economic disposition due to cash settlement or otherwise) by the Company or any affiliate of the Company or any
person in privity with the Company or any affiliate of the Company), directly or indirectly, including the filing (or participation in
the filing) of a registration statement with the SEC in respect of, or establish or increase a put equivalent position or liquidate or
decrease a call equivalent position within the meaning of Section 16 of the Exchange Act, any debt securities similar to the Securities
issued or guaranteed by the Company (other than the Securities) or publicly announce an intention to effect any such transaction, until
the Business Day set forth on Schedule I hereto.
(i)
The Company will not take, directly or indirectly, any action designed to or that would constitute or that might reasonably be expected
to cause or result in, under Ontario Securities Law or the Exchange Act or otherwise, stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of the Securities.
(j)
The Company agrees to pay the costs and expenses relating to the following matters: (i) the preparation, printing or reproduction and
filing with the SEC of the Registration Statement (including financial statements and exhibits thereto), the Form F-X, the Form T-1, each
of the Canadian Base Prospectus, the U.S. Base Prospectus, the Canadian Preliminary Prospectus, the U.S. Preliminary Prospectus, the Canadian
Final Prospectus, the U.S. Final Prospectus and each Issuer Free Writing Prospectus, and each amendment or supplement to any of them;
(ii) the printing (or reproduction) and delivery (including postage, air freight charges and charges for counting and packaging) of such
copies of the Registration Statement, each of the Canadian Base Prospectus, the U.S. Base Prospectus, the Canadian Final Prospectus, the
U.S. Final Prospectus and each Issuer Free Writing Prospectus, and all amendments or supplements to any of them, as may, in each case,
be reasonably requested for use in connection with the offering and sale of the Securities; (iii) the preparation, printing, authentication,
issuance and delivery of certificates for the Securities, including any stamp or transfer taxes in connection with the original issuance
and sale of the Securities; (iv) the printing (or reproduction) and delivery of this Agreement, any blue sky memorandum and all other
agreements or documents printed (or reproduced) and delivered in connection with the offering of the Securities; (v) any registration
or qualification of the Securities for offer and sale under the securities or blue sky laws of the several states (including filing fees
and the reasonable fees and expenses of counsel for the Underwriters relating to such registration and qualification); (vi) any filings
required to be made with the Financial Industry Regulatory Authority, Inc. or the OSC (including filing fees and the reasonable fees and
expenses of counsel for the Underwriters relating to such filings) but excluding any filing fees payable to any Canadian securities regulatory
authority relating to sales of securities made to purchasers in Canada, which fees shall be for the account of the Underwriters; (vii)
the transportation and other expenses incurred by or on behalf of Company representatives in connection with presentations to prospective
purchasers of the Securities; (viii) the fees and expenses of the Company’s accountants and the fees and expenses of counsel (including
local and special counsel) for the Company; and (ix) all other costs and expenses incident to the performance by the Company of its obligations
hereunder.
(k)
The Company shall cooperate with the Representatives and use their commercially reasonable efforts
to permit the Securities to be eligible for clearance and settlement through the facilities of DTC.
(l)
The Company will deliver to the Representatives, on the date of execution of this Agreement, a properly
completed and executed Certification Regarding Beneficial Owners of Legal Entity Customers, together with copies of identifying documentation,
and the Company undertakes to provide such additional supporting documentation as the Representatives may reasonably request in connection
with the verification of the foregoing certification.
(m) The
Company will timely file with applicable Canadian securities regulatory authorities in the Permitted Canadian Jurisdictions any required
report of exempt distribution relating to sales of Securities made to purchasers in such provinces, subject to compliance by Underwriters
with their obligation to provide the Company with information contemplated by Section 4(b) of this Agreement.
6.
Conditions to the Obligations of the Underwriters. The obligations of the Underwriters to purchase the Securities shall
be subject to the accuracy of the representations and warranties on the part of the Company contained herein as of the Execution Time
and the Closing Date, to the accuracy of the statements of the Company made in any certificates pursuant to the provisions hereof, to
the performance by the Company of its obligations hereunder and to the following additional conditions:
(a)
(i) The Canadian Final Prospectus shall have been filed with the OSC under the Shelf Procedures, (ii) the U.S. Final Prospectus shall
have been filed with the SEC pursuant to General Instruction II.L. of Form F-10 under the Securities Act and (iii) the final term sheet
contemplated by Section 5(b) hereto, and any other material required to be filed by the Company in accordance with Rule 433(d), shall
have been filed with the SEC, in each case, within the applicable time period in the manner prescribed for such filing and in accordance
with Section 5(a) hereof; no stop order suspending the effectiveness of the Registration Statement or any part thereof shall have been
issued and no cease trade order affecting the Securities and no other order preventing or suspending the use of any prospectus relating
to the Securities shall have been issued and no proceeding for any such purpose shall have been initiated or threatened by the SEC or
the OSC.
(b)
The Company shall have requested and caused Sidley Austin LLP, U.S. counsel for the Company, to have furnished to the Representatives
their opinion, dated the Closing Date and addressed to the Underwriters, in the form set forth in Exhibit A.
(c)
The Company shall have requested and caused Osler, Hoskin & Harcourt LLP, Canadian counsel for the Company, to have furnished to the
Representatives their opinion, dated the Closing Date and addressed to the Underwriters, in the form set forth in Exhibit B.
(d)
The Representatives shall have received from Shearman & Sterling LLP, U.S. counsel for the Underwriters, such opinion or opinions,
dated the Closing Date and addressed to the Representatives, with respect to the issuance and sale of the Securities, the Indenture, the
Registration Statement, the Disclosure Package and the U.S. Final Prospectus (together with any supplement thereto) and other related
matters as the Representatives may reasonably require, and the Company shall have furnished to such counsel such documents as they request
for the purpose of enabling them to pass upon such matters.
(e)
The Company shall have furnished to the Representatives a certificate of the Company, signed by the President or a Vice President and
the principal financial or accounting officer of the Company, dated the Closing Date, to the effect that the signers of such certificate
have examined the Registration Statement, the Canadian Base Prospectus, the U.S. Base Prospectus, the Canadian Final Prospectus, the U.S.
Final Prospectus and the Disclosure Package, any supplements or amendments thereto, as well as each electronic road show used in connection
with the offering of the Securities, and this Agreement and that:
(i)
the representations and warranties of the Company in this Agreement are true and correct on and as of the Closing Date with the same effect
as if made on the Closing Date and the Company has complied with all the agreements and satisfied all the conditions on its part to be
performed or satisfied at or prior to the Closing Date;
(ii)
the receipt obtained from the OSC in respect of the Canadian Base Prospectus remains in effect and no order having the effect of ceasing
or suspending the distribution of or the trading in the securities of the Company nor any notice objecting the use of the Canadian Base
Prospectus or the Registration Statement has been issued by the OSC or the SEC, respectively, and no proceedings for that purpose shall
have been issued, or to the Company’s knowledge, threatened, by the OSC or the SEC, respectively, and any request for additional
information by the OSC or the SEC have been complied with; and
(iii)
since the date of the most recent audited financial statements included or incorporated by reference in the Canadian Final Prospectus,
the U.S. Final Prospectus, the Disclosure Package and the Registration Statement (exclusive of any supplement thereto), there has been
no Material Adverse Effect, except as set forth or incorporated in or contemplated in the Canadian Final Prospectus, the U.S. Final Prospectus,
the Disclosure Package and the Registration Statement.
(f)
The receipt obtained from the OSC in respect of the Canadian Base Prospectus shall remain in effect and no order having the effect of
ceasing or suspending the distribution of or the trading in the securities of the Company nor any notice objecting the use of the Canadian
Base Prospectus or the Registration Statement shall have been issued by the OSC or the SEC, respectively, and no proceedings for that
purpose shall have been issued, or to the Company’s knowledge, threatened, by the OSC or the SEC, respectively, and any request
for additional information by the OSC or the SEC shall have been complied with.
(g)
The Company shall have requested and caused Deloitte LLP, the independent chartered professional accountants of the Company to have furnished
to the Representatives, at the Execution Time and at the Closing Date, letters, (which may refer to letters previously delivered to one
or more of the Representatives), dated respectively as of the Execution Time and as of the Closing Date (with a “cut-off”
date no more than two business days prior to the date of such letter), in form and substance satisfactory to the Representatives, together
with signed or reproduced copies of such letter for each of the Underwriters containing statements and information of the type ordinarily
included in accountants’ “comfort letters” to underwriters with respect to the financial statements and certain financial
information contained in the Registration Statement, the Canadian Final Prospectus, the U.S. Final Prospectus and the Disclosure Package.
(h)
Subsequent to the Execution Time or, if earlier, the dates as of which information is given in the Registration Statement (exclusive of
any amendment thereof), the Canadian Final Prospectus (exclusive of any amendment or supplement thereto), and the U.S. Final Prospectus
(exclusive of any amendment or supplement thereto), there shall not have been any change or any development involving a prospective change
in or affecting the condition (financial or otherwise), earnings, business or properties of the Company and its subsidiaries taken as
a whole, whether or not arising from transactions in the ordinary course of business, except as set forth in or contemplated in the Canadian
Final Prospectus (exclusive of any amendment or supplement thereto), the U.S. Final Prospectus (exclusive of any amendment or supplement
thereto) and the Disclosure Package the effect of which, is, in the sole judgment of the Representatives, so material and adverse as to
make it impractical or inadvisable to proceed with the offering or delivery of the Securities as contemplated by the Registration Statement
(exclusive of any amendment thereof), the Canadian Final Prospectus (exclusive of any amendment or supplement thereto), the U.S. Final
Prospectus (exclusive of any amendment or supplement thereto) and the Disclosure Package.
(i)
Subsequent to the Execution Time, there shall not have been any decrease in the rating of any of the Company’s debt securities by
any “nationally recognized statistical rating organization,” (as defined for purposes of Rule 3(a)(62) under the Exchange
Act) or any notice given of any intended or potential decrease in any such rating or of a possible change in any such rating that does
not indicate the direction of the possible change.
(j)
Prior to the Closing Date, the Company shall have furnished to the Representatives such further information, certificates and documents
as the Representatives may reasonably request.
If any of the conditions specified in this Section
6 shall not have been fulfilled when and as provided in this Agreement, or if any of the opinions and certificates mentioned above or
elsewhere in this Agreement shall not be reasonably satisfactory in form and substance to the Representatives and counsel for the Underwriters,
this Agreement and all obligations of the Underwriters hereunder may be canceled at, or at any time prior to, the Closing Date by the
Representatives. Notice of such cancellation shall be given to the Company in writing or by telephone or facsimile confirmed in writing.
The documents required to be delivered by this Section 6 shall be delivered
at the office of Shearman & Sterling LLP, counsel for the Underwriters, at 199 Bay Street, Commerce Court West, Suite 4405, Toronto,
Ontario, M5L 1E8, on the Closing Date.
7.
Reimbursement of Underwriters’ Expenses. If the sale of the Securities provided for herein is not consummated because
any condition to the obligations of the Underwriters set forth in Section 6 hereof is not satisfied, because of any termination pursuant
to clause (i) or (iii) of Section 11 hereof or because of any refusal, inability or failure on the part of the Company to perform any
agreement herein or comply with any provision hereof other than by reason of a default by any of the Underwriters, the Company will reimburse
the Underwriters severally through the Representatives on demand for all documented expenses (including reasonable fees and disbursements
of counsel) that shall have been incurred by them in connection with the proposed purchase and sale of the Securities.
8.
Indemnification and Contribution.
(a)
The Company agrees to indemnify and hold harmless each Underwriter, the directors, officers, employees, affiliates and selling agents
of each Underwriter and each person who controls any Underwriter within the meaning of either the Securities Act or the Exchange Act against
any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Securities
Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement for the registration of the Securities as originally filed or in any amendment
thereof, or in the Canadian Preliminary Prospectus, the U.S. Preliminary Prospectus, the Canadian Base Prospectus, the U.S. Base Prospectus,
the Canadian Final Prospectus, the U.S. Final Prospectus or any Issuer Free Writing Prospectus or the information contained in the final
term sheet required to be prepared and filed pursuant to Section 5(b) hereto, or in any amendment thereof or supplement thereto, or arise
out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, and agrees to reimburse each such indemnified party, as incurred, for any legal or other
expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage
or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made
therein in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Underwriter through
the Representatives specifically for inclusion therein. This indemnity agreement will be in addition to any liability which the Company
may otherwise have.
(b)
Each Underwriter severally and not jointly agrees to indemnify and hold harmless the Company, each of its directors, each of its officers
who signs the Registration Statement, and each person who controls the Company within the meaning of either the Securities Act or the
Exchange Act, to the same extent as the foregoing indemnity from the Company to each Underwriter, but only with reference to written information
relating to such Underwriter furnished to the Company by or on behalf of such Underwriter through the Representatives specifically for
inclusion in the documents referred to in the foregoing indemnity. This indemnity agreement will be in addition to any liability which
any Underwriter may otherwise have. The Company acknowledges that the following statements set forth under the heading “Underwriting”
in the Registration Statement, the Canadian Final Prospectus, the U.S. Final Prospectus and the Disclosure Package constitute the only
information furnished in writing by or on behalf of the several Underwriters for inclusion in Registration Statement, the Canadian Final
Prospectus, the U.S. Final Prospectus and the Disclosure Package or any Issuer Free Writing Prospectus: (i) the names of the Underwriters,
(ii) the sentences related to concessions and reallowances and (iii) the paragraphs related to stabilization, syndicate covering transactions
and penalty bids.
(c)
Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying party in
writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under
paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture
by the indemnifying party of rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations
to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall
be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified
party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for
the fees and expenses of any separate counsel retained by the indemnified party or parties except as set forth below); provided,
however, that such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party’s
election to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right to employ separate
counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel
if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict
of interest, (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying
party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified
parties which are different from or additional to those available to the indemnifying party, (iii) the indemnifying party shall not have
employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the
institution of such action or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense
of the indemnifying party. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent, or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify
the indemnified party against any loss, claim, damage, liability or expenses by reason of such settlement or judgment. An indemnifying
party will not, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment
with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be
sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement,
compromise or consent includes an (i) unconditional release of each indemnified party from all liability arising out of such claim, action,
suit or proceeding and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf
of an indemnified party.
(d)
In the event that the indemnity provided in paragraph (a), (b) or (c) of this Section 8 is unavailable to or insufficient to hold harmless
an indemnified party for any reason, the Company and the Underwriters severally agree to contribute to the aggregate losses, claims, damages
and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending the same) (collectively
“Losses”) to which the Company and one or more of the Underwriters may be subject in such proportion as is appropriate
to reflect the relative benefits received by the Company on the one hand and by the Underwriters on the other from the offering of the
Securities; provided, however, that in no case shall any Underwriter (except as may be provided in any agreement among underwriters
relating to the offering of the Securities) be responsible for any amount in excess of the underwriting discount or commission applicable
to the Securities purchased by such Underwriter hereunder. If the allocation provided by the immediately preceding sentence is unavailable
for any reason, the Company and the Underwriters severally shall contribute in such proportion as is appropriate to reflect not only such
relative benefits but also the relative fault of the Company on the one hand and of the Underwriters on the other in connection with the
statements or omissions which resulted in such Losses as well as any other relevant equitable considerations. Benefits received by the
Company shall be deemed to be equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits
received by the Underwriters shall be deemed to be equal to the total underwriting discounts and commissions, in each case as set forth
on the cover page of the U.S. Final Prospectus. Relative fault shall be determined by reference to, among other things, whether any untrue
or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information
provided by the Company on the one hand or the Underwriters on the other, the intent of the parties and their relative knowledge, access
to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Underwriters agree that it
would not be just and equitable if contribution were determined by pro rata allocation or any other method of allocation which does not
take account of the equitable considerations referred to above. Notwithstanding the provisions of this paragraph (d), no person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 8, each person who controls an Underwriter
within the meaning of either the Securities Act or the Exchange Act and each director, officer, employee and agent of an Underwriter shall
have the same rights to contribution as such Underwriter, and each person who controls the Company within the meaning of either the Securities
Act or the Exchange Act, each officer of the Company who shall have signed the Registration Statement and each director of the Company
shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph
(d).
9.
Default by an Underwriter. If any one or more Underwriters shall fail to purchase and pay for any of the Securities agreed
to be purchased by such Underwriter or Underwriters hereunder and such failure to purchase shall constitute a default in the performance
of its or their obligations under this Agreement, the remaining Underwriters shall be obligated severally to take up and pay for (in the
respective proportions which the principal amount of Securities set forth opposite their names in Schedule II hereto bears to the aggregate
principal amount of Securities set forth opposite the names of all the remaining Underwriters) the Securities which the defaulting Underwriter
or Underwriters agreed but failed to purchase; provided, however, that in the event that the aggregate principal amount
of Securities which the defaulting Underwriter or Underwriters agreed but failed to purchase shall exceed 10% of the aggregate principal
amount of Securities set forth in Schedule II hereto, the remaining Underwriters shall have the right to purchase all, but shall not be
under any obligation to purchase any, of the Securities, and if such nondefaulting Underwriters do not purchase all the Securities, this
Agreement will terminate without liability to any nondefaulting Underwriter or the Company. In the event of a default by any Underwriter
as set forth in this Section 9, the Closing Date shall be postponed for such period, not exceeding five Business Days, as the Representatives
shall determine in order that the required changes in the Registration Statement, the Canadian Final Prospectus and the U.S. Final Prospectus
or in any other documents or arrangements may be effected. Nothing contained in this Agreement shall relieve any defaulting Underwriter
of its liability, if any, to the Company and any nondefaulting Underwriter for damages occasioned by its default hereunder.
10.
Stabilization. In connection with the offering of the Securities, the Underwriters (or persons acting on their behalf) may
over-allot Securities or effect transactions with a view to supporting the market price of the Securities at a level higher than that
which might otherwise prevail. However, stabilization may not necessarily occur.
11.
Termination. This Agreement shall be subject to termination in the absolute discretion of the Representatives, by notice
given to the Company prior to delivery of and payment for the Securities, if at any time prior to such delivery and payment (i) trading
in any of the Company’s securities shall have been the subject of a cease trade order by the OSC or suspended by the SEC, the New
York Stock Exchange or the Toronto Stock Exchange, (ii) trading in securities generally on the New York Stock Exchange or the Toronto
Stock Exchange shall have been suspended or limited or minimum prices shall have been established on either of such exchanges, (iii) any
inquiry, action, suit, investigation or other proceeding, whether formal or informal, is instituted, announced or threatened or any order
is made by any federal, provincial or other governmental authority in relation to the Company or any of the Company’s subsidiaries
or any law or regulation is promulgated, changed or announced, which, in the sole opinion of an Underwriter, acting reasonably, operates
to or is expected to prevent or materially restrict the distribution or trading of the Securities or any other securities of the Company,
(iv) a banking moratorium shall have been declared either by Federal or New York State authorities, Canadian federal authorities or European
Union authorities or (v) there shall have occurred any outbreak or escalation of hostilities, declaration by the United States or Canada
of a national emergency or war, or other calamity or crisis the effect of which on U.S., European Union or Canadian financial markets
is such as to make it, in the sole judgment of the Representatives, impractical or inadvisable to proceed with the offering or delivery
of the Securities as contemplated by any U.S. Preliminary Prospectus or Canadian Preliminary Prospectus, the Canadian Final Prospectus
(exclusive of any amendment or supplement thereto) and the U.S. Final Prospectus (exclusive of any amendment or supplement thereto).
12.
Representations and Indemnities to Survive. The respective agreements, representations, warranties, indemnities and other
statements of the Company or its officers and of the Underwriters set forth in or made pursuant to this Agreement will remain in full
force and effect, regardless of any investigation made by or on behalf of any Underwriter or the Company or any of the officers, directors,
employees, agents or controlling persons referred to in Section 8 hereof, and will survive delivery of and payment for the Securities.
The provisions of Sections 7 and 8 hereof shall survive the termination or cancellation of this Agreement.
13.
Notices. All communications hereunder will be in writing and effective only on receipt, and, if sent to the Representatives,
will be mailed, delivered or telefaxed and confirmed to them, at the addresses specified in Schedule I hereto, or, if sent to the Company,
will be mailed, delivered or emailed to the Company’s Chief Legal Officer (Bruce.Cluney@magna.com) and confirmed to it at Magna
International Inc., 337 Magna Drive, Aurora, Ontario, Canada L4G 7K1, attention of the Legal Department.
14.
Successors. This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors
and the officers, directors, employees, agents and controlling persons referred to in Section 8 hereof, and no other person will have
any right or obligation hereunder.
15.
No Fiduciary Duty. The Company hereby acknowledges that (a) the purchase and sale of the Securities pursuant to this Agreement
is an arm’s-length commercial transaction between the Company, on the one hand, and the Underwriters and any affiliate through which
it may be acting, on the other, (b) the Underwriters are acting as principal and not as an agent or fiduciary of the Company and (c) the
Company’s engagement of the Underwriters in connection with the offering and the process leading up to the offering is as independent
contractors and not in any other capacity. Furthermore, the Company agrees that it is solely responsible for making its own judgments
in connection with the offering (irrespective of whether any of the Underwriters has advised or is currently advising the Company on related
or other matters). The Company agrees that it will not claim that the Underwriters have rendered advisory services of any nature or respect,
or owe an agency, fiduciary or similar duty to the Company, in connection with such transaction or the process leading thereto.
16.
Integration. This Agreement supersedes all prior agreements and understandings (whether written or oral) between the Company
and the Underwriters, or any of them, with respect to the subject matter hereof.
17.
Applicable Law. This Agreement will be governed by and construed in accordance with the laws of the State of New York applicable
to contracts made and to be performed within the State of New York.
18.
Submission to Jurisdiction. The Company irrevocably submits to the exclusive jurisdiction of any New York State or United
States Federal court sitting in The City of New York over any suit, action or proceeding arising out of or relating to this Agreement,
the U.S. Final Prospectus, the Canadian Final Prospectus, the Registration Statement, the Disclosure Package or the transactions contemplated
hereby or thereby. The Company irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter
have to the laying of venue of any such suit, action or proceeding brought in such a court and any claim that any such suit, action or
proceeding brought in such a court has been brought in an inconvenient forum. To the extent that the Company has or hereafter may acquire
any immunity (on the grounds of sovereignty or otherwise) from the jurisdiction of any court or from any legal process with respect to
itself or its property, the Company irrevocably waives, to the fullest extent permitted by law, such immunity in respect of any such suit,
action or proceeding.
19.
Waiver of Jury Trial. The Company hereby irrevocably waives, to the fullest extent permitted by applicable law, any and
all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.
20.
Authorized Agent. The Company has irrevocably appointed Corporation Services Company, with offices at 251 Little
Falls Drive, Wilmington, Delaware 19808 (or its successors) as agent for service of process, in the County, City and State of New York,
United States of America (the “Authorized Agent”) as their authorized agent upon whom process may be served in any
legal suit, action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby, and the Authorized
Agent agrees to act as said agent for service of process.
21.
Judgment Currency. The obligation of the Company in respect of any sum due to any Underwriter shall, notwithstanding any
judgment in a currency other than United States dollars, not be discharged until the first Business Day, following receipt by such Underwriter
of any sum adjudged to be so due in such other currency, on which (and only to the extent that) such Underwriter may in accordance with
normal banking procedures purchase United States dollars with such other currency; if the United States dollars so purchased are less
than the sum originally due to such Underwriter hereunder, the Company agrees, as a separate obligation and notwithstanding any such judgment,
to indemnify such Underwriter against such loss. If the United States dollars so purchased are greater than the sum originally due to
such Underwriter hereunder, such Underwriter agrees to pay to the Company an amount equal to the excess of the dollars so purchased over
the sum originally due to such Underwriter hereunder.
22.
Counterparts. This Agreement may be signed in one or more counterparts, each of which shall constitute an original and
all of which together shall constitute one and the same agreement. Electronic signatures complying with the New York Electronic Signatures
and Records Act (N.Y. State Tech. §§ 301-309), as amended from time to time, or other applicable law will be deemed original
signatures for purposes of this Agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile, electronic
mail or other transmission method shall be effective as delivery of a manually executed counterpart thereof.
23.
Headings. The section headings used herein are for convenience only and shall not affect the construction hereof.
24.
Recognition of the U.S. Special Resolution Regimes.
(a)
In the event that any Underwriter that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the
transfer from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the
same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation,
were governed by the laws of the United States or a state of the United States.
(b)
In the event that any Underwriter that is a Covered Entity or a BHC Act Affiliate of such Underwriter becomes subject to a proceeding
under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Underwriter are permitted
to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement
were governed by the laws of the United States or a state of the United States.
For purposes of this Section 24, a “BHC Act Affiliate” has the meaning assigned
to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k). “Covered Entity”
means any of the following: (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R.
§ 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b);
or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b). “Default
Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2
or 382.1, as applicable. “U.S. Special Resolution Regime” means each of (i) the Federal Deposit Insurance Act and the regulations
promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated
thereunder.
25.
Definitions. The terms that follow, when used in this Agreement, shall have the meanings indicated.
“Applicable Time” shall
mean 4:15 p.m. New York City time on the date that this Agreement is executed and delivered by the parties hereto.
“Business Day” shall mean
any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorized or
obligated by law to close in New York City or Toronto.
“Disclosure Package” shall
mean, collectively, (i) the U.S. Base Prospectus, (ii) the U.S. Preliminary Prospectus, (iii) the Issuer Free Writing Prospectus or Prospectuses,
if any, identified in Schedule III hereto and (iv) any other Free Writing Prospectus identified in Schedule III hereto.
“Effective Date” shall
mean each date and time that the Registration Statement and any post-effective amendment or amendments thereto became or becomes effective.
“Exchange Act” shall mean
the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder.
“Execution Time” shall
mean the date and time that this Agreement is executed and delivered by the parties hereto.
“Free Writing Prospectus”
shall mean a free writing prospectus, as defined in Rule 405.
“Issuer Free Writing Prospectus”
shall mean an issuer free writing prospectus, as defined in Rule 433.
“Material Adverse Effect”
shall mean a material adverse effect on the condition (financial or otherwise), earnings, business or properties of the Company and its
subsidiaries, taken as a whole, whether or not arising in the ordinary course of business.
“Rule 158”, “Rule
164”, “Rule 172”, “Rule 405” and “Rule 433” refer to such rules under
the Securities Act.
“Securities Act” shall
mean the U.S. Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder.
“Trust Indenture Act”
shall mean the U.S. Trust Indenture Act of 1939, as amended, and the rules and regulations of the SEC promulgated thereunder.
[Signature Pages Follow]
If the foregoing is in accordance with your understanding
of our agreement, please sign and return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall represent
a binding agreement among the Company and the several Underwriters.
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Very truly yours, |
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Magna International
Inc.
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By: |
/s/ Paul Brock |
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Name: Paul H. Brock |
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Title: Vice-President and Treasurer |
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By: |
/s/ Bassem A. Shakee |
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Name: Bassem A. Shakeel |
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Title: Vice-President, Associate General Counsel and Corporate Secretary |
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[Signature Page to Underwriting Agreement]
The foregoing Agreement is
hereby confirmed and accepted
as of the date specified in
Schedule I hereto.
BNP Paribas Securities Corp.
BofA Securities, Inc.
Citigroup Global Markets Inc.
On behalf of themselves and the
several Underwriters named
in Schedule II hereto
BNP Paribas Securities Corp.
| By: | /s/Richard Murphy
Name: Richard Murphy
Title: Managing Director |
BOFA SECURITIES, INC.
| By: | /s/ Sandeep Chawla
Name: Sandeep Chawla
Title: Managing Director |
CITIGROUP GLOBAL MARKETS INC.
| By: | /s/ Adam D. Bordner
Name: Adam D. Bordner
Title: Managing Director |
[Signature Page to Underwriting Agreement]
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