content_image/31663.jpg content_image/31662.jpg content_image/31661.jpg
9 Accounts Payable and Accrued Liabilities 

10 Convertible Debentures Payable 

<img src='content_image/31663.jpg'>

Deferred income and other includes $0.3 million, representing the value of below-market leases for properties acquired after September 12, 2003. 

As at December 31, 2003, the Company has outstanding three series of convertible debentures. All of the debentures are unsecured subordinated debentures, require interest payable semi-annually and are convertible into common stock of the Company at the holders’ option until the day prior to the redemption date. In addition, the Company has the right to settle its obligations to repay principal upon redemption or maturity by issuing common stock. If the Company chooses to issue common stock, it is to be valued at 95% of the weighted average trading price for the 20 consecutive trading days ending five days prior to the redemption or maturity date, as may be applicable. In the case of the 7.0% and the 7.25% series, the Company also has the option, subject to regulatory approval, of settling interest due from time to time by way of the issue of common shares valued in the same fashion as with respect to the repayment of principal on those debentures. The following table summarizes the other terms of the convertible debentures. 

<img src='content_image/31662.jpg'>

The following table summarizes the components of the Company’s convertible debentures. 

<img src='content_image/31661.jpg'>

Holders of the Company’s 8.50% convertible debentures converted $3.4 million principal amount into 227,854 common shares during 2003 (2002 – nil). The remaining $54.0 million principal amount of the 8.50% convertible debentures was redeemed by the Company through the issuance of 3,647,388 common shares (2002 – nil). 

