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Exhibit 2(i)
LOCK-UP AGREEMENT
STRICTLY CONFIDENTIAL
December 29, 2006
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TO:
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THE PERSONS LISTED ON SCHEDULE "A" HERETO (each
such person a "Subject Person" and collectively the "Subject
Persons")
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This agreement (the "Agreement") sets out the
terms and conditions upon which Nucor Corporation ("Nucor") will
cause a corporation to be designated by it (the "Offeror") to make
an offer (the "Offer") to purchase all of the outstanding common
shares ("Shares") of Harris Steel Group Inc. (the
"Company").
This Agreement also sets out the terms and conditions of the
several and not joint agreements of each Subject Person to:
(i) support the Offer; and (ii) to deposit or cause to be
deposited the Shares owned or controlled by such Subject Person
under the Offer (collectively referred to as the "Subject
Shares").
Each Subject Person enters into this Agreement upon the basis
that he or she intends to both (i) engage in a re-organization
of certain of the holdings of the Shares in which it has a
beneficial interest prior to the take-up of the Shares by the
Offeror under the Offer; and (ii) use the Holdco Alternative
to tender to the offer all or some of their Subject Shares; and
Nucor and the Offeror acknowledge and agree that each Subject
Person enters into this Agreement upon this basis.
In connection with the Offer, Nucor has entered into a support
agreement with the Company dated the date hereof (the "Support
Agreement") pursuant to which, among other things, the Company has
agreed to support the Offer. Capitalized terms used herein and not
otherwise defined shall have the meanings set forth in the Support
Agreement.
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1.1
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Subject to the provisions of the Support
Agreement, not later than the Latest Mailing Time, Nucor shall
cause the Offeror to mail the Offer in accordance with the terms of
the Support Agreement. The Offer shall: (i) offer not less
than Cdn.$46.25 in cash for each Share; and (ii) expire not
earlier than midnight (Toronto time) on the 35
th day after the
date of mailing of the Offer, subject to the right of the Offeror
to extend the period during which Shares may be deposited under the
Offer (as it may be amended, the "Expiry Time"). Notwithstanding
any other provision hereof, but subject to the conditions of
Section 2.1(2) of the Support Agreement, the Offer will permit
the Subject Persons to tender to the Offer through the use of the
Holdco Alternative and the Subject Persons shall be permitted to
effect all transactions required to reorganize in order to accept
the
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Holdco Alternative. Subject to the satisfaction
of the conditions of the Offer as contemplated in Section 1.2
below, Nucor shall abide by and perform its obligations under this
agreement, the Support Agreement and the Offer, including, but not
limited to, causing the Offeror to take-up and pay for Subject
Shares deposited under the Offer (or, if applicable, acquire any
Holdco Shares pursuant to and in accordance with the terms and
conditions of the Holdco Agreements) as soon as reasonably possible
and, in any event, not later than three (3) business days
following the time at which the Offeror becomes obligated to take
up such Shares under the Offer pursuant to the Securities
Act (Ontario) and the regulations thereunder and other
applicable securities laws (collectively, "Applicable Securities
Laws").
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1.2
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The obligation of Nucor to cause the Offeror to
make the Offer and to take up and pay for the Subject Shares under
the Offer (or, if applicable, acquire any Holdco Shares pursuant to
a Holdco Agreement) shall not be subject to any conditions, save
and except for those conditions set out in the Support Agreement
(and, in the case of any Holdco Shares, pursuant to the Holdco
Agreement with the Subject Person). The conditions to the making of
the Offer and of the Offer itself are for the sole benefit of Nucor
or the Offeror and may be waived in whole or in part in their sole
discretion.
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1.3
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Each Subject Person acknowledges and agrees that
the Offeror may, in its sole discretion, modify or waive any term
or condition of the Offer; provided that, and the Offeror hereby
covenants that, it shall not, without the prior written consent of
the Subject Persons and the Company, increase the Minimum
Condition, impose additional conditions to the Offer, decrease the
consideration per Share, decrease the number of Shares in respect
of which the Offer is made or change the form of consideration
payable under the Offer (other than to add additional forms of
consideration) or in any other respect that is material and adverse
to the interests (including economic benefits) of the Subject
Persons. It is further understood and agreed that the Offeror may,
in its sole discretion, waive any conditions of the Offer in whole
or in part at any time that are for the benefit of Nucor or the
Offeror.
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1.4
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Nucor hereby covenants to pay to the Subject
Person the highest price per Share paid to any other shareholder of
the Company pursuant to the Offer, as the same may be extended or
varied from time to time.
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2
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COVENANTS OF THE SUBJECT
PERSONS
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2.1
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Each Subject Person hereby agrees that he, she or
it shall not, from the date hereof until the earlier of:
(i) the termination of this Agreement pursuant to
Section 5; and (ii) the Expiry Time, except in accordance
with the terms of this Agreement:
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(a)
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acquire direct or indirect beneficial ownership
or holding of or control or direction over any additional Shares or
obtain or enter into any right to do so;
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(b)
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grant or agree to grant any proxy or other right
to the Shares, or enter into any voting trust or pooling agreement
or arrangement or enter into or subject any of such Shares to any
other agreement, arrangement, understanding or commitment, formal
or informal, with respect to or relating to the voting
thereof;
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(c)
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directly or indirectly, through any officer,
director, employee, advisor, representative, agent or otherwise (as
applicable), make, solicit, assist, initiate, encourage, or
otherwise facilitate any inquiries, the submission of proposals or
offers from any other person, corporation, partnership or other
business organization whatsoever regarding an Acquisition Proposal,
participate in any discussions or negotiations regarding any
Acquisition Proposal, or otherwise cooperate in any way with, or
assist or participate in, knowingly facilitate or encourage, any
effort or attempt by any other person to do or seek to do any of
the foregoing; provided, however, that the foregoing shall not
prevent a Subject Person who is a member of the board of directors
of the Company or is a senior officer of the Company (but not any
other Subject Person) from responding (solely in his capacity as
such) to any bona fide Acquisition Proposal in the circumstances
expressly permitted by and in accordance with Section 3.2 of
the Support Agreement; provided always that, for greater certainty
the Subject Person acknowledges and agrees that nothing in this
subsection 2.1(c) or subsection 2.1(f) shall affect the Subject
Person’s obligation to tender (and, except as permitted by
this Agreement, not withdraw) the Subject Shares to the Offer in
accordance with the terms and conditions of this Agreement (or, if
applicable, to transfer the Subject Person’s Holdco Shares to
the Offeror in accordance with the terms and conditions of the
Holdco Agreement between the Subject Person and the
Offeror);
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(d)
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option, dispose of, pledge, encumber, grant a
security interest in or otherwise convey any Shares or any right or
interest therein, or agree to do any of the foregoing except
pursuant to the Offer or in connection with any internal
re-organization in preparation for using the Holdco
Alternative;
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(e)
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except as required by applicable law, prior to
the public announcement by Nucor and the Company of the Offer,
directly or indirectly, disclose to any person, firm or corporation
(other than the Company and the financial and legal advisors of the
Company) the existence of the terms and conditions of this
Agreement, or any terms or conditions or other information
concerning the Offer; and
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(f)
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not take any action to encourage or assist any
other person to do any of the prohibited acts referred to in
foregoing provisions of this Section 2.1, provided however,
that the foregoing shall not prevent a Subject Person who is a
director or officer of the Company from performing his, her or its
duties or obligations as a director or officer of the
Company.
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2.2
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Each Subject Person hereby agrees that he, she or
it shall, from the date hereof until the earlier of: (i) the
termination of this Agreement pursuant to Section 5; and
(ii) the Expiry Time, except in accordance with the terms of
this Agreement:
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(a)
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immediately cease any existing discussions or
negotiations it is engaged in with any parties other than Nucor
with respect to any potential Acquisition Proposal; provided,
however, that the foregoing shall not prevent a Subject Person who
is a member of the board of directors of the Company or is a senior
officer of the Company (but not any other Subject Person) from
responding (solely in his capacity as such) in the circumstances
expressly permitted by and in accordance with Section 3.2 of
the Support Agreement; provided always that, for greater certainty
the Subject Person acknowledges and agrees that nothing in this
subsection 2.2(a) shall affect the Subject Person’s
obligation to tender (and, except as permitted by this Agreement,
not withdraw) the Subject Shares to the Offer in accordance with
the terms and conditions of this Agreement (or, if applicable, to
transfer the Subject Person’s Holdco Shares to the Offeror in
accordance with the terms and conditions of the Holdco Agreement
between the Subject Person and the Offeror).
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(b)
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as soon as reasonably practicable notify Nucor
of: (i) any proposal, inquiry, offer or request that the
Subject Person receives, or of which the Subject Person becomes
aware, that the Subject Person reasonably believes constitutes a
bona fide Acquisition Proposal; or (ii) any request that the
Subject Person receives for discussions or negotiations, or any
request for non-public information relating to the Company or any
of its subsidiaries or for access to the properties, books or
records of the Company or any of its subsidiaries by any person or
entity that informs him, her or it that it is considering making,
or has made, an Acquisition Proposal. Such notice to Nucor shall be
made, from time to time, orally and in writing and shall include a
description of the terms and conditions of, and the identity of the
person making, any proposal, inquiry, offer or request and shall
include copies of any such proposal, inquiry, offer or request or
any amendment to any of the foregoing; and
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(c)
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exercise the voting rights attaching to the
Subject Shares, solely in its capacity as a shareholder, to oppose
any proposed action by the Company, its shareholders, any of its
subsidiaries or any other person: (i) in respect of any
amalgamation, merger, sale of the Company’s or its
affiliates’ or associates’ assets, take-over bid, plan
of arrangement, reorganization, recapitalization, or other business
combination or similar transaction involving the Company or any of
its subsidiaries other than the Offer; (ii) which would
reasonably be regarded as being directed towards or likely to
prevent or delay the take-up and payment of the Subject Shares
deposited under the Offer, the implementation of or entering into a
Holdco Alternative or the successful completion of the Offer,
including without limitation any amendment to the articles or
by-laws of the Company or its corporate structure; or
(iii) which would reasonably be expected to result in a
Material Adverse Effect in respect of the Company. In connection
therewith, the Subject Person hereby appoints and Nucor as attorney
in fact (which appointment is unconditional, irrevocable (subject
to Section 5), and is coupled with an interest) for and on his
behalf to execute a proxy appointing such person designated by
Nucor to attend and act on behalf of the Subject Person at any
meeting of the Company in respect of any of the matters referred to
in this subsection 2.2(c), and if, pursuant to this power of
attorney, Nucor has executed and not revoked a proxy in respect of
such a meeting, which proxy has been accepted by the Company, then
in such circumstances the Subject Person shall not be responsible
for voting under this subsection 2.2(c). Nucor shall advise the
Subject Person upon executing any proxies in respect of the Subject
Person.
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2.3
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Each Subject Person, in its capacity as a
shareholder, covenants to use reasonably commercial efforts to
co-operate with Nucor and the Offeror in making all requisite
regulatory filings under applicable competition Laws and Securities
Laws.
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3.1
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Subject to the terms and conditions herein, each
Subject Person agrees to accept the Offer and to cause to be
deposited and cause all acts and things to be done to deposit all
of the Subject Shares owned or controlled by such Subject Person
and, in any event, not less than the number of Shares set forth
opposite such Subject Person’s name on Schedule A hereto,
together with a duly completed and executed letter of transmittal,
under the Offer on the terms and conditions set out
herein.
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3.2
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Each Subject Person agrees that if the Offeror
makes the Offer in compliance with Section 1.1 and
Section 1.2, such Subject Person shall, unless the Subject
Person
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properly makes a Holdco Election in which case
Section 3.3 shall apply, deposit or cause to be deposited with
the depositary under the Offer, prior to the Holdco Election
Deadline, all of the Subject Shares in accordance with the terms of
the Offer, and thereafter, except as may be permitted by this
Agreement, such Subject Person shall not withdraw or take any
action to withdraw any of such Subject Person’s Subject
Shares deposited under the Offer (notwithstanding any statutory
rights or other rights under the terms of the Offer or otherwise
which such Subject Person might have). In the event such Subject
Person does not make a Holdco Election, such Subject Person
nevertheless hereby agrees to comply with and be bound by the
covenants set forth in section (c) ‘Bump
Covenants’ in Schedule "D" of the Support Agreement and
agrees to execute an agreement to that effect.
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3.3
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If the Offeror makes the Offer in compliance with
Section 1.1 and Section 1.2 hereof, the Subject Person
shall be entitled to make a Holdco Election prior to the Holdco
Election Deadline in compliance with Section 2.1(2) of the
Support Agreement, in which case Nucor, the Offeror and the Subject
Person will be required to enter into a Holdco Agreement and Holdco
Indemnity Agreement providing for the acquisition by the Offeror of
the Holdco Shares that are the subject of the Holdco Election. The
Subject Person shall tender or deposit or cause to be deposited
with the depositary under the Offer, prior to the Holdco Election
Deadline, all of the Shares held and, on the date immediately prior
to the Expiry Date, all Holdco Shares. The Holdco Shares that are
the subject of the Holdco Agreement will be acquired by the Offeror
in accordance with the terms and conditions of such Holdco
Agreement, and the certificates representing the Subject Shares
that were tendered to the depositary and acquired by the
Offe
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