Document:

EX-4.1

 Exhibit 4.1 
  

 
 BUSINESS CORPORATIONS ACT 

ARTICLES 
 of 

ABSOLUTE SOFTWARE CORPORATION 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 ARTICLE 1
	  	INTERPRETATION	  	 	1	 
	 1.1
	  	Definitions	  	 	1	 
	 1.2
	  	Business Corporations Act and Interpretation Act Definitions Applicable	  	 	1	 
			
	 ARTICLE 2
	  	SHARES AND SHARE CERTIFICATES	  	 	1	 
	 2.1
	  	Authorized Share Structure	  	 	1	 
	 2.2
	  	Form of Share Certificate	  	 	2	 
	 2.3
	  	Shareholder Entitled to Certificate or Acknowledgement	  	 	2	 
	 2.4
	  	Delivery by Mail	  	 	2	 
	 2.5
	  	Replacement of Worn Out or Defaced Certificate or Acknowledgement	  	 	2	 
	 2.6
	  	Replacement of Lost, Stolen or Destroyed Certificate or Acknowledgement	  	 	2	 
	 2.7
	  	Splitting Share Certificates	  	 	2	 
	 2.8
	  	Certificate Fee	  	 	2	 
	 2.9
	  	Recognition of Trusts	  	 	2	 
			
	 ARTICLE 3
	  	ISSUE OF SHARES	  	 	3	 
	 3.1
	  	Directors Authorized	  	 	3	 
	 3.2
	  	Commissions and Discounts	  	 	3	 
	 3.3
	  	Brokerage	  	 	3	 
	 3.4
	  	Conditions of Issue	  	 	3	 
	 3.5
	  	Share Purchase Warrants and Rights	  	 	3	 
			
	 ARTICLE 4
	  	SHARE REGISTERS	  	 	3	 
	 4.1
	  	Central Securities Register	  	 	3	 
	 4.2
	  	Closing Register	  	 	3	 
			
	 ARTICLE 5
	  	SHARE TRANSFERS	  	 	4	 
	 5.1
	  	Registering Transfers	  	 	4	 
	 5.2
	  	Form of Instrument of Transfer	  	 	4	 
	 5.3
	  	Transferor Remains Shareholder	  	 	4	 
	 5.4
	  	Signing of Instrument of Transfer	  	 	4	 
	 5.5
	  	Enquiry as to Title Not Required	  	 	4	 
	 5.6
	  	Transfer Fee	  	 	4	 
			
	 ARTICLE 6
	  	TRANSMISSION OF SHARES	  	 	4	 
	 6.1
	  	Legal Personal Representative Recognized on Death	  	 	4	 
	 6.2
	  	Rights of Legal Personal Representative	  	 	5	 
			
	 ARTICLE 7
	  	PURCHASE OF SHARES	  	 	5	 
	 7.1
	  	Company Authorized to Purchase Shares	  	 	5	 
	 7.2
	  	Purchase When Insolvent	  	 	5	 

  
 -ii- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
	 7.3
	  	Sale and Voting of Purchased Shares	  	 	5	 
			
	 ARTICLE 8
	  	BORROWING POWERS	  	 	5	 
	 8.1
	  	Borrowing Powers	  	 	5	 
			
	 ARTICLE 9
	  	ALTERATIONS	  	 	6	 
	 9.1
	  	Alteration of Authorized Share Structure	  	 	6	 
	 9.2
	  	Special Rights and Restrictions	  	 	6	 
	 9.3
	  	Change of Name	  	 	6	 
	 9.4
	  	Other Alterations	  	 	6	 
			
	 ARTICLE 10
	  	MEETINGS OF SHAREHOLDERS	  	 	7	 
	 10.1
	  	Annual General Meetings	  	 	7	 
	 10.2
	  	Resolution Instead of Annual General Meeting	  	 	7	 
	 10.3
	  	Calling of Meetings of Shareholders	  	 	7	 
	 10.4
	  	Notice for Meetings of Shareholders	  	 	7	 
	 10.5
	  	Record Date for Notice	  	 	7	 
	 10.6
	  	Record Date for Voting	  	 	7	 
	 10.7
	  	Failure to Give Notice and Waiver of Notice	  	 	7	 
	 10.8
	  	Notice of Special Business at Meetings of Shareholders	  	 	8	 
	 10.9
	  	Class Meetings and Series Meetings of Shareholders	  	 	8	 
			
	 ARTICLE 11
	  	PROCEEDINGS AT MEETINGS OF SHAREHOLDERS	  	 	8	 
	 11.1
	  	Special Business	  	 	8	 
	 11.2
	  	Special Majority	  	 	9	 
	 11.3
	  	Quorum	  	 	9	 
	 11.4
	  	One Shareholder May Constitute Quorum	  	 	9	 
	 11.5
	  	Other Persons May Attend	  	 	9	 
	 11.6
	  	Requirement of Quorum	  	 	9	 
	 11.7
	  	Lack of Quorum	  	 	9	 
	 11.8
	  	Lack of Quorum at Succeeding Meeting	  	 	9	 
	 11.9
	  	Chair	  	 	9	 
	 11.10
	  	Selection of Alternate Chair	  	 	9	 
	 11.11
	  	Adjournments	  	 	10	 
	 11.12
	  	Notice of Adjourned Meeting	  	 	10	 
	 11.13
	  	Decision by Show of Hands or Poll	  	 	10	 
	 11.14
	  	Declaration of Result	  	 	10	 
	 11.15
	  	[INTENTIONALLY DELETED]	  	 	10	 
	 11.16
	  	Casting Vote	  	 	10	 

  
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 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
	 11.17
	  	Manner of Taking Poll	  	 	10	 
	 11.18
	  	Demand for Poll on Adjournment	  	 	10	 
	 11.19
	  	Chair Must Resolve Dispute	  	 	11	 
	 11.20
	  	Casting of Votes	  	 	11	 
	 11.21
	  	Demand for Poll	  	 	11	 
	 11.22
	  	Demand for Poll Not to Prevent Continuance of Meeting	  	 	11	 
	 11.23
	  	Retention of Ballots and Proxies	  	 	11	 
	 11.24
	  	Meeting by Telephone or Other Communications Medium	  	 	11	 
			
	 ARTICLE 12
	  	VOTES OF SHAREHOLDERS	  	 	11	 
	 12.1
	  	Number of Votes by Shareholder or by Shares	  	 	11	 
	 12.2
	  	Votes of Persons in Representative Capacity	  	 	11	 
	 12.3
	  	Votes by Joint Holders	  	 	11	 
	 12.4
	  	Legal Personal Representatives as Joint Shareholders	  	 	12	 
	 12.5
	  	Representative of a Corporate Shareholder	  	 	12	 
	 12.6
	  	Proxy Provisions Do Not Apply to All Companies	  	 	12	 
	 12.7
	  	Appointment of Proxy Holders	  	 	12	 
	 12.8
	  	Alternate Proxy Holders	  	 	12	 
	 12.9
	  	When Proxy Holder Need Not Be Shareholder	  	 	12	 
	 12.10
	  	Deposit of Proxy	  	 	13	 
	 12.11
	  	Validity of Proxy Vote	  	 	13	 
	 12.12
	  	Form of Proxy	  	 	13	 
	 12.13
	  	Revocation of Proxy	  	 	14	 
	 12.14
	  	Revocation of Proxy Must Be Signed	  	 	14	 
	 12.15
	  	Chair May Determine Validity of Proxy	  	 	14	 
	 12.16
	  	Production of Evidence of Authority to Vote	  	 	14	 
			
	 ARTICLE 13
	  	DIRECTORS	  	 	14	 
	 13.1
	  	First Directors; Number of Directors	  	 	14	 
	 13.2
	  	Change in Number of Directors	  	 	15	 
	 13.3
	  	Directors’ Acts Valid Despite Vacancy	  	 	15	 
	 13.4
	  	Qualifications of Directors	  	 	15	 
	 13.5
	  	Remuneration of Directors	  	 	15	 
	 13.6
	  	Reimbursement of Expenses of Directors	  	 	15	 
	 13.7
	  	Special Remuneration for Directors	  	 	15	 
	 13.8
	  	Gratuity, Pension or Allowance on Retirement of Director	  	 	15	 
			
	 ARTICLE 14
	  	ELECTION AND REMOVAL OF DIRECTORS	  	 	15	 

  
 -iv- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
	 14.1
	  	Election at Annual General Meeting	  	 	15	 
	 14.2
	  	Consent to be a Director	  	 	16	 
	 14.3
	  	Failure to Elect or Appoint Directors	  	 	16	 
	 14.4
	  	Places of Retiring Directors Not Filled	  	 	16	 
	 14.5
	  	Directors May Fill Casual Vacancies	  	 	16	 
	 14.6
	  	Remaining Directors Power to Act	  	 	16	 
	 14.7
	  	Shareholders May Fill Vacancies	  	 	16	 
	 14.8
	  	Additional Directors	  	 	16	 
	 14.9
	  	Ceasing to be a Director	  	 	17	 
	 14.10
	  	Removal of Director by Shareholders	  	 	17	 
	 14.11
	  	Removal of Director by Directors	  	 	17	 
			
	 ARTICLE 15
	  	POWERS AND DUTIES OF DIRECTORS	  	 	17	 
	 15.1
	  	Powers of Management	  	 	17	 
	 15.2
	  	Appointment of Attorney of Company	  	 	17	 
			
	 ARTICLE 16
	  	DISCLOSURE OF INTEREST OF DIRECTORS	  	 	17	 
	 16.1
	  	Obligation to Account for Profits	  	 	17	 
	 16.2
	  	Restrictions on Voting by Reason of Interest	  	 	18	 
	 16.3
	  	Interested Director Counted in Quorum	  	 	18	 
	 16.4
	  	Disclosure of Conflict of Interest or Property	  	 	18	 
	 16.5
	  	Director Holding Other Office in the Company	  	 	18	 
	 16.6
	  	No Disqualification	  	 	18	 
	 16.7
	  	Professional Services by Director or Officer	  	 	18	 
	 16.8
	  	Director or Officer in Other Corporations	  	 	18	 
			
	 ARTICLE 17
	  	PROCEEDINGS OF DIRECTORS	  	 	18	 
	 17.1
	  	Meetings of Directors	  	 	18	 
	 17.2
	  	Voting at Meetings	  	 	18	 
	 17.3
	  	Chair of Meetings	  	 	18	 
	 17.4
	  	Meetings by Telephone or Other Communications Medium	  	 	19	 
	 17.5
	  	Calling of Meetings	  	 	19	 
	 17.6
	  	Notice of Meetings	  	 	19	 
	 17.7
	  	When Notice Not Required	  	 	19	 
	 17.8
	  	Meeting Valid Despite Failure to Give Notice	  	 	19	 
	 17.9
	  	Waiver of Notice of Meetings	  	 	19	 
	 17.10
	  	Quorum	  	 	20	 
	 17.11
	  	Validity of Acts Where Appointment Defective	  	 	20	 

  
 -v- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
	 17.12
	  	Consent Resolutions in Writing	  	 	20	 
			
	 ARTICLE 18
	  	EXECUTIVE AND OTHER COMMITTEES	  	 	20	 
	 18.1
	  	Appointment and Powers of Executive Committee	  	 	20	 
	 18.2
	  	Appointment and Powers of Other Committees	  	 	20	 
	 18.3
	  	Obligations of Committees	  	 	21	 
	 18.4
	  	Powers of Board	  	 	21	 
	 18.5
	  	Committee Meetings	  	 	21	 
			
	 ARTICLE 19
	  	OFFICERS	  	 	21	 
	 19.1
	  	Directors May Appoint Officers	  	 	21	 
	 19.2
	  	Functions, Duties and Powers of Officers	  	 	21	 
	 19.3
	  	Qualifications	  	 	22	 
	 19.4
	  	Remuneration and Terms of Appointment	  	 	22	 
			
	 ARTICLE 20
	  	INDEMNIFICATION	  	 	22	 
	 20.1
	  	Definitions	  	 	22	 
	 20.2
	  	Mandatory Indemnification of Directors and Former Directors	  	 	22	 
	 20.3
	  	Indemnification of Other Persons	  	 	22	 
	 20.4
	  	Non-Compliance with Business Corporations Act	  	 	22	 
	 20.5
	  	Company May Purchase Insurance	  	 	23	 
			
	 ARTICLE 21
	  	DIVIDENDS	  	 	23	 
	 21.1
	  	Payment of Dividends Subject to Special Rights	  	 	23	 
	 21.2
	  	Declaration of Dividends	  	 	23	 
	 21.3
	  	[INTENTIONALLY DELETED]	  	 	23	 
	 21.4
	  	Record Date	  	 	23	 
	 21.5
	  	Manner of Paying Dividend	  	 	23	 
	 21.6
	  	Settlement of Difficulties	  	 	23	 
	 21.7
	  	When Dividend Payable	  	 	23	 
	 21.8
	  	Dividends to be Paid in Accordance with Number of Shares	  	 	24	 
	 21.9
	  	Receipt by Joint Shareholders	  	 	24	 
	 21.10
	  	Dividend Bears No Interest	  	 	24	 
	 21.11
	  	Fractional Dividends	  	 	24	 
	 21.12
	  	Payment of Dividends	  	 	24	 
	 21.13
	  	Capitalization of Surplus	  	 	24	 
	 21.14
	  	Unclaimed Dividends	  	 	24	 
			
	 ARTICLE 22
	  	DOCUMENTS, RECORDS AND REPORTS	  	 	24	 
	 22.1
	  	Recording of Financial Affairs	  	 	24	 

  
 -vi- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
	 22.2
	  	Inspection of Accounting Records	  	 	24	 
			
	 ARTICLE 23
	  	NOTICES	  	 	24	 
	 23.1
	  	Method of Giving Notice	  	 	24	 
	 23.2
	  	Deemed Receipt	  	 	25	 
	 23.3
	  	Certificate of Sending	  	 	25	 
	 23.4
	  	Notice to Joint Shareholders	  	 	26	 
	 23.5
	  	Notice to Trustees	  	 	26	 
	 23.6
	  	Undelivered Notices	  	 	26	 
			
	 ARTICLE 24
	  	SEAL AND EXECUTION OF DOCUMENTS	  	 	26	 
	 24.1
	  	Who May Attest Seal	  	 	26	 
	 24.2
	  	Sealing Copies	  	 	26	 
	 24.3
	  	Mechanical Reproduction of Seal	  	 	26	 
	 24.4
	  	Execution of Documents Generally	  	 	27	 
			
	 ARTICLE 25
	  	PROHIBITIONS	  	 	27	 
	 25.1
	  	Definitions	  	 	27	 
	 25.2
	  	Application	  	 	27	 
	 25.3
	  	Consent Required for Transfer of Shares or Designated Securities	  	 	27	 

  
 -vii- 

 BUSINESS CORPORATIONS ACT 

ARTICLES 
 OF 

ABSOLUTE SOFTWARE CORPORATION 

ARTICLE 1 

INTERPRETATION 

1.1    Definitions. In these Articles (the “Articles”), unless the
context otherwise requires: 
 “board of directors”, “directors” and
“board” mean the directors or sole director of the Company for the time being; 

“Business Corporations Act” means the Business Corporations Act (British Columbia) from time to time
in force and all amendments thereto and includes all regulations and amendments thereto made pursuant to that Act; 

“Interpretation Act” means the Interpretation Act (British Columbia) from time to time in force and
all amendments thereto and includes all regulations and amendments thereto made pursuant to that Act; 
 “legal
personal representative” means the personal or other legal representative of a shareholder; 

“registered address” of a shareholder means the shareholder’s address as recorded in the central
securities register; 
 “seal” means the seal of the Company, if any; and 

“Securities Act” means the Securities Act (British Columbia) from time to time in force and all
amendments thereto and includes all regulations and amendments thereto made pursuant to the Act; 

1.2    Business Corporations Act and Interpretation Act Definitions Applicable. The
definitions in the Business Corporations Act and the definitions and rules of construction in the Interpretation Act, with the necessary changes, so far as applicable, and unless the context requires otherwise, apply to these Articles as if they
were an enactment. If there is a conflict between a definition in the Business Corporations Act and a definition or rule in the Interpretation Act relating to a term used in these Articles, the definition in the Business Corporations Act will
prevail in relation to the use of the term in these Articles. If there is a conflict between these Articles and the Business Corporations Act, the Business Corporations Act will prevail. 

ARTICLE 2 
 SHARES AND
SHARE CERTIFICATES 
 2.1    Authorized Share Structure. The authorized share
structure of the Company consists of shares of the class or classes and series, if any, described in the Notice of Articles of the Company. 

2.2    Form of Share Certificate. Each share certificate issued by the Company must comply
with, and be signed as required by, the Business Corporations Act. 

  
 1 

 2.3    Shareholder Entitled to Certificate or
Acknowledgement. Unless the shares of which the shareholder is the registered owner are uncertificated shares within the meaning of the Business Corporations Act, each shareholder is entitled, without charge, to (a) one share certificate
representing the shares of each class or series of shares registered in the shareholder’s name or (b) a non-transferable written acknowledgement of the shareholder’s right to obtain such a share
certificate, provided that in respect of a share held jointly by several persons, the Company is not bound to issue more than one share certificate and delivery of a share certificate for a share to one of several joint shareholders or to one of the
shareholders’ duly authorized agents will be sufficient delivery to all. 

2.4    Delivery by Mail. Any share certificate or
non-transferable written acknowledgement of a shareholder’s right to obtain a share certificate may be sent to the shareholder by mail at the shareholder’s registered address and neither the Company
nor any director, officer or agent of the Company (including the Company’s transfer agent or legal counsel) is liable for any loss to the shareholder because the share certificate or acknowledgement is lost in the mail or stolen. 

2.5    Replacement of Worn Out or Defaced Certificate or Acknowledgement. If the directors
are satisfied that a share certificate or a non-transferable written acknowledgement of the shareholder’s right to obtain a share certificate is worn out or defaced, they must, on production to them of
the share certificate or acknowledgement, as the case may be, and on such other terms, if any, as they think fit: 

(a)    order the share certificate or acknowledgement, as the case may be, to be cancelled; and 

(b)    issue a replacement share certificate or acknowledgement, as the case may be. 

2.6    Replacement of Lost, Stolen or Destroyed Certificate or Acknowledgement. If a share
certificate or a non-transferable written acknowledgement of a shareholder’s right to obtain a share certificate is lost, stolen or destroyed, a replacement share certificate or acknowledgement, as the
case may be, must be issued to the person entitled to that share certificate or acknowledgement, as the case may be, if the directors receive: 

(a)    proof satisfactory to them that the share certificate or acknowledgement is lost, stolen or
destroyed; and 
 (b)    any indemnity the directors consider adequate. 

2.7    Splitting Share Certificates. If a shareholder surrenders a share certificate to the
Company with a written request that the Company issue in the shareholder’s name two or more share certificates, each representing a specified number of shares and in the aggregate representing the same number of shares as the share certificate
so surrendered, the Company must cancel the surrendered share certificate and issue replacement share certificates in accordance with that request. 

2.8    Certificate Fee. There must be paid to the Company, in relation to the issue of any
share certificate under Articles 2.5, 2.6 or 2.7, the amount, if any and which must not exceed the amount prescribed under the Business Corporations Act, determined by the directors. 

2.9    Recognition of Trusts. Except as required by law or statute or these Articles, no
person will be recognized by the Company as holding any share upon any trust, and the Company is not bound by or compelled in any way to recognize (even when having notice thereof) any equitable, contingent, future or partial interest in any share
or fraction of a share or (except as by law or statute or these Articles provided or as ordered by a court of competent jurisdiction) any other rights in respect of any share except an absolute right to the entirety thereof in the shareholder. 

  
 2 

 ARTICLE 3 

ISSUE OF SHARES 

3.1    Directors Authorized. Subject to the Business Corporations Act and the rights of the
holders of issued shares of the Company, the Company may issue, allot, sell or otherwise dispose of the unissued shares, and issued shares held by the Company, at the times, to the persons, including directors, in the manner, on the terms and
conditions and for the issue prices (including any premium at which shares with par value may be issued) that the directors may determine. The issue price for a share with par value must be equal to or greater than the par value of the share. 

3.2    Commissions and Discounts. The Company may at any time, pay a reasonable commission
or allow a reasonable discount to any person in consideration of that person purchasing or agreeing to purchase shares of the Company from the Company or any other person or procuring or agreeing to procure purchasers for shares of the Company. 

3.3    Brokerage. The Company may pay such brokerage fee or other consideration as may be
lawful for or in connection with the sale or placement of its securities. 
 3.4    Conditions
of Issue. Except as provided for by the Business Corporations Act, no share may be issued until it is fully paid. A share is fully paid when: 

(a)    consideration is provided to the Company for the issue of the share by one or more of the
following: 
 (i)    past services performed for the Company; 

(ii)    property; 

(iii)    money; and 

(b)    the value of the consideration received by the Company equals or exceeds the issue price set
for the share under Article 3.1. 
 3.5    Share Purchase Warrants and Rights. Subject to
the Business Corporations Act, the Company may issue share purchase warrants, options and rights upon such terms and conditions as the directors determine, which share purchase warrants, options and rights may be issued alone or in conjunction with
debentures, debenture stock, bonds, shares or any other securities issued or created by the Company from time to time. 
 ARTICLE 4

 SHARE REGISTERS 

4.1    Central Securities Register. As required by and subject to the Business Corporations
Act, the Company must maintain in British Columbia a central securities register. The directors may, subject to the Business Corporations Act, appoint an agent to maintain the central securities register. The directors may also appoint one or more
agents, including the agent which keeps the central securities register, as transfer agent for its shares or any class or series of its shares, as the case may be, and the same or another agent as registrar for its shares or such class or series of
its shares, as the case may be. The directors may terminate such appointment of any agent at any time and may appoint another agent in its place. 

4.2    Closing Register. The Company must not at any time close its central securities
register. 

  
 3 

 ARTICLE 5 

SHARE TRANSFERS 

5.1    Registering Transfers. A transfer of a share of the Company must not be registered
unless: 
 (a)    a duly signed instrument of transfer in respect of the share has been received
by the Company; 
 (b)    if a share certificate has been issued by the Company in respect of the
share to be transferred, that share certificate has been surrendered to the Company; and 

(c)    if a non-transferable written acknowledgement of the
shareholder’s right to obtain a share certificate has been issued by the Company in respect of the share to be transferred, that acknowledgement has been surrendered to the Company. 

5.2    Form of Instrument of Transfer. The instrument of transfer in respect of any share of
the Company must be either in the form, if any, on the back of the Company’s share certificates or in any other form that may be approved by the directors from time to time. 

5.3    Transferor Remains Shareholder. Except to the extent that the Business Corporations
Act otherwise provides, the transferor of shares is deemed to remain the holder of the shares until the name of the transferee is entered in a securities register of the Company in respect of the transfer. 

5.4    Signing of Instrument of Transfer. If a shareholder, or his or her duly authorized
attorney, signs an instrument of transfer in respect of shares registered in the name of the shareholder, the signed instrument of transfer constitutes a complete and sufficient authority to the Company and its directors, officers and agents to
register the number of shares specified in the instrument of transfer or specified in any other manner, or, if no number is specified, all the shares represented by the share certificates or set out in the written acknowledgements deposited with the
instrument of transfer: 
 (a)    in the name of the person named as transferee in that instrument
of transfer; or 
 (b)    if no person is named as transferee in that instrument of transfer, in
the name of the person on whose behalf the instrument is deposited for the purpose of having the transfer registered. 

5.5    Enquiry as to Title Not Required. Neither the Company nor any director, officer or
agent of the Company is bound to inquire into the title of the person named in the instrument of transfer as transferee or, if no person is named as transferee in the instrument of transfer, of the person on whose behalf the instrument is deposited
for the purpose of having the transfer registered or is liable for any claim related to registering the transfer by the shareholder or by any intermediate owner or holder of the shares, of any interest in the shares, of any share certificate
representing such shares or of any written acknowledgement of a right to obtain a share certificate for such shares. 

5.6    Transfer Fee. There must be paid to the Company, in relation to the registration of
any transfer, the amount, if any, determined by the directors. 
 ARTICLE 6 

TRANSMISSION OF SHARES 

6.1    Legal Personal Representative Recognized on Death. In case of the death of a
shareholder, the legal personal representative, or if the shareholder was a joint holder, the surviving joint holder, will be the only person recognized by the Company as having any title to the shareholder’s interest

  
 4 

 
in the shares. Before recognizing a person as a legal personal representative, the directors may require proof of appointment by a court of competent jurisdiction, a grant of letters probate,
letters of administration or such other evidence or documents as the directors consider appropriate. 

6.2    Rights of Legal Personal Representative. The legal personal representative has the
same rights, privileges and obligations that attach to the shares held by the shareholder, including the right to transfer the shares in accordance with these Articles, provided the documents required by the Business Corporations Act and the
directors have been deposited with the Company. 
 ARTICLE 7 

PURCHASE OF SHARES 

7.1    Company Authorized to Purchase Shares. Subject to Article 7.2, the special rights and
restrictions attached to the shares of any class or series and the Business Corporations Act, the Company may, if authorized by the directors, purchase or otherwise acquire any of its shares at the price and upon the terms determined by the
directors. 
 7.2    Purchase When Insolvent. The Company must not make a payment or
provide any other consideration to purchase or otherwise acquire any of its shares if there are reasonable grounds for believing that: 

(a)    the Company is insolvent; or 

(b)    making the payment or providing the consideration would render the Company insolvent. 

7.3    Sale and Voting of Purchased Shares. If the Company retains a share redeemed,
purchased or otherwise acquired by it, the Company may cancel, sell, gift or otherwise dispose of the share, but, while such share is held by the Company, it: 

(a)    is not entitled to vote the share at a meeting of its shareholders; 

(b)    must not pay a dividend in respect of the share; and 

(c)    must not make any other distribution in respect of the share. 

ARTICLE 8 
 BORROWING
POWERS 
 8.1    Borrowing Powers. The Company, if authorized by the directors, may:

 (a)    borrow money in the manner and amount, on the security, from the sources and on the
terms and conditions that the directors consider appropriate; 
 (b)    issue bonds, debentures
and other debt obligations either outright or as security for any liability or obligation of the Company or any other person and at such discounts or premiums and on such other terms as they consider appropriate; 

(c)    guarantee the repayment of money by any other person or the performance of any obligation of
any other person; and 

  
 5 

 (d)    mortgage, charge, whether by way of
specific or floating charge, grant a security interest in, or give other security on, the whole or any part of the present and future assets and undertaking of the Company. 

ARTICLE 9 
 ALTERATIONS

 9.1    Alteration of Authorized Share Structure. Subject to Article 9.2 and the
Business Corporations Act, and the special rights and restrictions attached to the shares of any class or series, the Company may by special resolution: 

(a)    create one or more classes or series of shares or, if none of the shares of a class or series
of shares are allotted or issued, eliminate that class or series of shares; 
 (b)    increase,
reduce or eliminate the maximum number of shares that the Company is authorized to issue out of any class or series of shares or establish a maximum number of shares that the Company is authorized to issue out of any class or series of shares for
which no maximum is established; 
 (c)    subdivide or consolidate all or any of its unissued,
or fully paid issued, shares; 
 (d)    if the Company is authorized to issue shares of a class
of shares with par value: 
 (i)    decrease the par value of those shares; or 

(ii)    if none of the shares of that class of shares are allotted or issued, increase the par
value of those shares; 
 (e)    change all or any of its unissued, or fully paid issued, shares
with par value into shares without par value or any of its unissued shares without par value into shares with par value; 

(f)    alter the identifying name of any of its shares; or 

(g)    otherwise alter its shares or authorized share structure when required or permitted to do so
by the Business Corporations Act. 
 9.2    Special Rights and Restrictions. Subject to
the Business Corporations Act and the special rights and restrictions attached to the shares of any class or series, the Company may by special resolution: 

(a)    create special rights or restrictions for, and attach those special rights or restrictions
to, the shares of any class or series of shares, whether or not any or all of those shares have been issued; or 

(b)    vary or delete any special rights or restrictions attached to the shares of any class or
series of shares, whether or not any or all of those shares have been issued. 
 9.3    Change
of Name. The Company may by special resolution authorize an alteration of its Notice of Articles in order to change its name. 

9.4    Other Alterations. If the Business Corporations Act does not specify the type of
resolution and these Articles do not specify another type of resolution, the Company may by special resolution alter these Articles. 

  
 6 

 ARTICLE 10 

MEETINGS OF SHAREHOLDERS 

10.1    Annual General Meetings. Unless an annual general meeting is deferred or waived in
accordance with the Business Corporations Act, the Company must hold an annual general meeting at least once in each calendar year and not more than 15 months after the last annual reference date at such time and place as may be determined by the
directors. 
 10.2    Resolution Instead of Annual General Meeting. If all the
shareholders who are entitled to vote at an annual general meeting consent by a unanimous resolution under the Business Corporations Act to all of the business that is required to be transacted at that annual general meeting, the annual general
meeting is deemed to have been held on the date of the unanimous resolution. The shareholders must, in any unanimous resolution passed under this Article 10.2, select as the Company’s annual reference date a date that would be appropriate for
the holding of the applicable annual general meeting. 
 10.3    Calling of Meetings of
Shareholders. The directors may, whenever they think fit, call a meeting of shareholders, which meetings may be held in or outside of the Province of British Columbia or at any place in or outside Canada. 

10.4    Notice for Meetings of Shareholders. The Company must send notice of the date, time
and location of any meeting of shareholders, in the manner provided in these Articles, or in such other manner, if any, as may be prescribed by ordinary resolution (whether previous notice of the resolution has been given or not), to each
shareholder entitled to attend the meeting, to each director and to the auditor of the Company, unless these Articles otherwise provide, at least the following number of days before the meeting: 

(a)    if and for so long as the Company is a public company, 21 days; 

(b)    otherwise, 10 days. 

10.5    Record Date for Notice. The directors may set a date as the record date for the
purpose of determining shareholders entitled to notice of any meeting of shareholders. The record date must not precede the date on which the meeting is to be held by more than two months or, in the case of a general meeting requisitioned by
shareholders under the Business Corporations Act, by more than four months. The record date must not precede the date on which the meeting is held by fewer than: 

(a)    if and for so long as the Company is a public company, 21 days; 

(b)    otherwise, 10 days. 

If no record date is set, the record date is 5 p.m. on the day immediately preceding the first date on which the notice is
sent or, if no notice is sent, the beginning of the meeting. 
 10.6    Record Date for
Voting. The directors may set a date as the record date for the purpose of determining shareholders entitled to vote at any meeting of shareholders. The record date must not precede the date on which the meeting is to be held by more than two
months or, in the case of a general meeting requisitioned by shareholders under the Business Corporations Act, by more than four months. If no record date is set, the record date is 5 p.m. on the day immediately preceding the first date on which the
notice is sent or, if no notice is sent, the beginning of the meeting. 
 10.7    Failure to
Give Notice and Waiver of Notice. The accidental omission to send notice of any meeting to, or the non-receipt of any notice by, any of the persons entitled to notice does not invalidate any proceedings at
that meeting. Any person entitled to notice of a meeting of shareholders may, in writing or otherwise, waive or reduce the period of notice of such meeting. 

  
 7 

 10.8    Notice of Special Business at Meetings
of Shareholders. If a meeting of shareholders is to consider special business within the meaning of Article 11.1, the notice of meeting must: 

(a)    state the general nature of the special business; and 

(b)    if the special business includes considering, approving, ratifying, adopting or authorizing
any document or the signing of or giving of effect to any document, have attached to it a copy of the document or state that a copy of the document will be available for inspection by shareholders: 

(i)    at the Company’s records office, or at such other reasonably accessible location in
British Columbia as is specified in the notice; and 
 (ii)    during statutory business hours
on any one or more specified days before the day set for the holding of the meeting. 

10.9    Class Meetings and Series Meetings of Shareholders. Unless otherwise specified in
these Articles, the provisions of these Articles relating to a meeting of shareholders will apply, with the necessary changes and so far as they are applicable, to a class meeting or a series meeting of shareholders holding a particular class or
series of shares. 
 ARTICLE 11 

PROCEEDINGS AT MEETINGS OF SHAREHOLDERS 

11.1    Special Business. At a meeting of shareholders, the following business is special
business: 
 (a)    at a meeting of shareholders that is not an annual general meeting, all
business is special business except business relating to the conduct of or voting at the meeting; 

(b)    at an annual general meeting, all business is special business except for the following:

 (i)    business relating to the conduct of or voting at the meeting; 

(ii)    consideration of any financial statements of the Company presented to the meeting; 

(iii)    consideration of any reports of the directors or auditor; 

(iv)    the setting or changing of the number of directors; 

(v)    the election or appointment of directors; 

(vi)    the appointment of an auditor; 

(vii)    the setting of the remuneration of an auditor; 

(viii)    business arising out of a report of the directors not requiring the passing of a special
resolution or an exceptional resolution; 
 (ix)    any other business which, under these
Articles or the Business Corporations Act, may be transacted at a meeting of shareholders without prior notice of the business being given to the shareholders. 

  
 8 

 11.2    Special Majority. The majority of
votes required for the Company to pass a special resolution at a meeting of shareholders is two-thirds of the votes cast on the resolution. 

11.3    Quorum. Subject to the special rights and restrictions attached to the shares of any
class or series of shares and Article 11.4, the quorum for the transaction of business at a meeting of shareholders is two persons who are, or who represent by proxy, shareholders who, in the aggregate, hold shares to which are attached at least 25%
of the votes attached to all of the issued shares of the Company entitled to be voted at the meeting. 

11.4    One Shareholder May Constitute Quorum. If there is only one shareholder entitled to
vote at a meeting of shareholders: 
 (a)    the quorum is one person who is, or who represents by
proxy, that shareholder, and 
 (b)    that shareholder, present in person or by proxy, may
constitute the meeting. 
 11.5    Other Persons May Attend. In addition to those persons
who are entitled to vote at a meeting of the shareholders, the only other persons entitled to be present at the meeting are the directors, the officers, any lawyer for the Company, the auditor of the Company, any other persons invited by the
directors and any persons entitled or required under the Business Corporations Act or these Articles to be present at a meeting of shareholders, but if any of those persons does attend a meeting of shareholders, that person is not to be counted in
the quorum and is not entitled to vote at the meeting unless that person is a shareholder or proxy holder entitled to vote at the meeting. 

11.6    Requirement of Quorum. No business, other than the election of a chair of the
meeting and the adjournment of the meeting, may be transacted at any meeting of shareholders unless a quorum of shareholders entitled to vote is present at the commencement of the meeting, but such quorum need not be present throughout the meeting.

 11.7    Lack of Quorum. If, within one-half
hour from the time set for the holding of a meeting of shareholders, a quorum is not present: 

(a)    in the case of a general meeting requisitioned by shareholders, the meeting is dissolved, and

 (b)    in the case of any other meeting of shareholders, the meeting stands adjourned to the
same day in the next week at the same time and place. 
 11.8    Lack of Quorum at Succeeding
Meeting. If, at the meeting to which the meeting referred to in Article 11.7(b) was adjourned, a quorum is not present within one-half hour from the time set for the holding of the meeting, the person or
persons present and being, or representing by proxy, one or more shareholders entitled to attend and vote at the meeting constitute a quorum. 

11.9    Chair. The following individual is entitled to preside as chair at a meeting of
shareholders: 
 (a)    the chair of the board, if any; or 

(b)    if the chair of the board is absent or unwilling to act as chair of the meeting, the
president, if any. 
 11.10    Selection of Alternate Chair. If, at any meeting of
shareholders, there is no chair of the board or president present within 15 minutes after the time set for holding the meeting, or if the chair of the board and the president are unwilling to act as chair of the meeting, or if the chair of the board
and the president have advised the secretary, if any, or any director present at the meeting, that they will not be 

  
 9 

 
present at the meeting, the directors present must choose one of their number to be chair of the meeting or if all of the directors present decline to take the chair or fail to so choose or if no
director is present, the shareholders entitled to vote at the meeting who are present in person or by proxy may choose any person present at the meeting to chair the meeting. 

11.11    Adjournments. The chair of a meeting of shareholders may, and if so directed by the
meeting must, adjourn the meeting from time to time and from place to place, but no business may be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place. 

11.12    Notice of Adjourned Meeting. It is not necessary to give any notice of an adjourned
meeting of shareholders or of the business to be transacted at an adjourned meeting of shareholders except that, when a meeting is adjourned for 30 days or more, notice of the adjourned meeting must be given as in the case of the original meeting.

 11.13    Decision by Show of Hands or Poll. Subject to the Business Corporations Act,
every motion put to a vote at a meeting of shareholders will be decided on a show of hands, or the functional equivalent of a show of hands by means of electronic, telephonic or other communications facility unless a poll, before or on the
declaration of the result of the vote by show of hands or the functional equivalent of a show of hands, is directed by the chair or demanded by at least one shareholder entitled to vote who is present in person or by proxy. 

11.14    Declaration of Result. The chair of a meeting of shareholders must declare to the
meeting the decision on every question in accordance with the result of the show of hands (or the functional equivalent) or the poll, as the case may be, and that decision must be entered in the minutes of the meeting. A declaration of the chair
that a resolution is carried by the necessary majority or is defeated is, unless a poll is directed by the chair or demanded under Article 11.13, conclusive evidence without proof of the number or proportion of the votes recorded in favour of or
against the resolution. 
 11.15    [INTENTIONALLY DELETED] 

11.16    Casting Vote. In the case of an equality of votes, the chair of a meeting of
shareholders does not, either on a show of hands or on a poll, have a second or casting vote in addition to the vote or votes to which the chair may be entitled as a shareholder. 

11.17    Manner of Taking Poll. Subject to Article 11.18, if a poll is duly demanded at a
meeting of shareholders: 
 (a)    the poll must be taken: 

(i)    at the meeting, or within seven days after the date of the meeting, as the chair of the
meeting directs; and 
 (ii)    in the manner, at the time and at the place that the chair of
the meeting directs; 
 (b)    the result of the poll is deemed to be the decision of the meeting
at which the poll is demanded; and 
 (c)    the demand for the poll may be withdrawn by the
person who demanded it. 
 11.18    Demand for Poll on Adjournment. A poll demanded at a
meeting of shareholders on a question of adjournment must be taken immediately at the meeting. 

  
 10 

 11.19    Chair Must Resolve Dispute. In
the case of any dispute as to the admission or rejection of a vote given on a poll, the chair of the meeting must determine the dispute, and his or her determination made in good faith is final and conclusive. 

11.20    Casting of Votes. On a poll, a shareholder entitled to more than one vote need not
cast all the votes in the same way. 
 11.21    Demand for Poll. No poll may be demanded
in respect of the vote by which a chair of a meeting of shareholders is elected. 

11.22    Demand for Poll Not to Prevent Continuance of Meeting. The demand for a poll at a
meeting of shareholders does not, unless the chair of the meeting so rules, prevent the continuation of a meeting for the transaction of any business other than the question on which a poll has been demanded. 

11.23    Retention of Ballots and Proxies. The Company must, for at least three months after
a meeting of shareholders, keep each ballot cast on a poll and each proxy voted at the meeting, and, during that period, make them available for inspection during normal business hours by any shareholder or proxy holder entitled to vote at the
meeting. At the end of such three month period, the Company may destroy such ballots and proxies. 

11.24    Meeting by Telephone or Other Communications Medium. Shareholder meetings may be
held in person or, if the directors so determine, may be held entirely or partially by means of telephonic, electronic or other communication facilities that permit all participants at the meeting to communication with each other during the meeting.
A shareholder or proxy holder who participates in a meeting in a manner contemplated by this Article 11.24 is deemed for all purposes of the Business Corporations Act and these Articles to be present at the meeting and to have agreed to participate
in that manner. 
 ARTICLE 12 

VOTES OF SHAREHOLDERS 

12.1    Number of Votes by Shareholder or by Shares. Subject to any special rights or
restrictions attached to any shares and to the restrictions imposed on joint shareholders under Article 12.3: 

(a)    on a vote by show of hands, every person present who is a shareholder or proxy holder and
entitled to vote on the matter has one vote; and 
 (b)    on a poll, every shareholder entitled
to vote on the matter has one vote in respect of each share entitled to be voted on the matter and held by that shareholder and may exercise that vote either in person or by proxy. 

12.2    Votes of Persons in Representative Capacity. A person who is not a shareholder may
vote at a meeting of shareholders, whether on a show of hands or on a poll, and may appoint a proxy holder to act at the meeting, if, before doing so, the person satisfies the chair of the meeting, or the directors, that the person is a legal
personal representative or a trustee in bankruptcy for a shareholder who is entitled to vote at the meeting. 

12.3    Votes by Joint Holders. If there are joint shareholders registered in respect of any
share: 
 (a)    any one of the joint shareholders may vote at any meeting of shareholders, either
personally or by proxy, in respect of the share as if that joint shareholder were solely entitled to it; or 

(b)    if more than one of the joint shareholders is present at any meeting of shareholders,
personally or by proxy, and more than one of them votes in respect of that share, then only 

  
 11 

 
the vote of the joint shareholder present whose name stands first on the central securities register in respect of the share will be counted. 

12.4    Legal Personal Representatives as Joint Shareholders. Two or more legal personal
representatives of a shareholder in whose sole name any share is registered are, for the purposes of Article 12.3, deemed to be joint shareholders. 

12.5    Representative of a Corporate Shareholder. If a corporation, that is not a
subsidiary of the Company, is a shareholder, that corporation may appoint a person to act as its representative at any meeting of shareholders of the Company, and: 

(a)    for that purpose, the instrument appointing a representative must: 

(i)    be received at the registered office of the Company or at any other place specified, in the
notice calling the meeting, for the receipt of proxies, at least the number of business days specified in the notice for the receipt of proxies, or if no number of days is specified, two business days before the day set for the holding of the
meeting; or 
 (ii)    be provided, at the meeting, to the chair of the meeting or to a person
designated by the chair of the meeting; 
 (b)    if a representative is appointed under this
Article 12.5: 
 (i)    the representative is entitled to exercise in respect of and at that
meeting the same rights on behalf of the corporation that the representative represents as that corporation could exercise if it were a shareholder who is an individual, including, without limitation, the right to appoint a proxy holder; and 

(ii)    the representative, if present at the meeting, is to be counted for the purpose of forming
a quorum and is deemed to be a shareholder present in person at the meeting. 
 Evidence of the appointment of any such
representative may be sent to the Company or its transfer agent by written instrument, fax or any other method of transmitting legibly recorded messages. 

12.6    Proxy Provisions Do Not Apply to All Companies. Articles 12.7 to 12.16 do not apply
to the Company if and for so long as it is a public company or a pre-existing reporting company which has the Statutory Reporting Company Provisions as part of its Articles or to which the Statutory Reporting
Company Provisions apply. 
 12.7    Appointment of Proxy Holders. Every shareholder of
the Company, including a corporation that is a shareholder but not a subsidiary of the Company, entitled to vote at a meeting of shareholders of the Company may, by proxy, appoint one or more (but not more than five) proxy holders to attend and act
at the meeting in the manner, to the extent and with the powers conferred by the proxy. 

12.8    Alternate Proxy Holders. A shareholder may appoint one or more alternate proxy
holders to act in the place of an absent proxy holder. 
 12.9    When Proxy Holder Need Not
Be Shareholder. A person must not be appointed as a proxy holder unless the person is a shareholder, although a person who is not a shareholder may be appointed as a proxy holder if: 

(a)    the person appointing the proxy holder is a corporation or a representative of a corporation
appointed under Article 12.5; 

  
 12 

 (b)    the Company has at the time of the meeting
for which the proxy holder is to be appointed only one shareholder entitled to vote at the meeting; or 

(c)    the shareholders present in person or by proxy at and entitled to vote at the meeting for
which the proxy holder is to be appointed, by a resolution on which the proxy holder is not entitled to vote but in respect of which the proxy holder is to be counted in the quorum, permit the proxy holder to attend and vote at the meeting. 

12.10    Deposit of Proxy. A proxy for a meeting of shareholders must: 

(a)    be received at the registered office of the Company or at any other place specified, in the
notice calling the meeting, for the receipt of proxies, at least the number of business days specified in the notice, or if no number of days is specified, two business days before the day set for the holding of the meeting; 

(b)    unless the notice provides otherwise, be provided, at the meeting, to the chair of the
meeting or to a person designated by the chair of the meeting; or 
 (c)    be received in any
other manner determined by the board or the chair of the meeting. 
 A proxy may be sent to the Company by written
instrument, fax or any other method of transmitting legibly recorded messages or by using such available internet or telephone voting services as may be approved by the directors. 

12.11    Validity of Proxy Vote. A vote given in accordance with the terms of a proxy is
valid notwithstanding the death or incapacity of the shareholder giving the proxy and despite the revocation of the proxy or the revocation of the authority under which the proxy is given, unless notice in writing of that death, incapacity or
revocation is received: 
 (a)    at the registered office of the Company, at any time up to and
including the last business day before the day set for the holding of the meeting at which the proxy is to be used; or 

(b)    at the meeting by the chair of the meeting, before any vote in respect of which the proxy
has been given has been taken. 
 12.12    Form of Proxy. A proxy, whether for a specified
meeting or otherwise, must be either in the following form or in any other form approved by the directors or the chair of the meeting: 

Absolute Software Corporation 

(the “Company”) 

The undersigned, being a shareholder of the Company, hereby appoints [name] or, failing that person, [name], as proxy holder
for the undersigned to attend, act and vote for and on behalf of the undersigned at the meeting of shareholders of the Company to be held on [month, day, year] and at any adjournment or postponement of that meeting. 

Number of shares in respect of which this proxy is given (if no number is specified, then this proxy if given in respect of
all shares registered in the name of the shareholder):                             . 

Signed this         day of
                        ,         . 

 

	
	  

	 (Signature of shareholder)

  
 13 

 
			
		
		 	 
		 	 (Name of shareholder – printed)

 12.13    Revocation of Proxy. Subject to Article
12.14, every proxy may be revoked by an instrument in writing that is: 
 (a)    received at the
registered office of the Company at any time up to and including the last business day before the day set for the holding of the meeting at which the proxy is to be used; or 

(b)    provided, at the meeting, to the chair of the meeting before any vote in respect of which
the proxy has been given has been taken. 
 12.14    Revocation of Proxy Must Be Signed.
An instrument referred to in Article 12.13 must be signed as follows: 
 (a)    if the
shareholder for whom the proxy holder is appointed is an individual, the instrument must be signed by the shareholder or his or her legal personal representative or trustee in bankruptcy; 

(b)    if the shareholder for whom the proxy holder is appointed is a corporation, the instrument
must be signed by the corporation or by a representative appointed for the corporation under Article 12.5. 

12.15    Chair May Determine Validity of Proxy. The chair of any meeting of shareholders may
determine whether or not a proxy deposited for use at the meeting, which may not strictly comply with the requirements of this Article 12 as to form, execution, accompanying documentation, time of filing or otherwise, shall be valid for use at the
meeting, and any such determination made in good faith shall be final, conclusive and binding upon the meeting. 

12.16    Production of Evidence of Authority to Vote. The chair of any meeting of
shareholders may, but need not, inquire into the authority of any person to vote at the meeting and may, but need not, demand from that person production of evidence as to the existence of the authority to vote. 

ARTICLE 13 
 DIRECTORS

 13.1    First Directors; Number of Directors. The number of directors, excluding
additional directors appointed under Article 14.8, is set at: 
 (a)    if the Company is a
public company, the greater of three and the most recently set of: 
 (i)    the
number of directors set by ordinary resolution (whether or not previous notice of the resolution was given); and 

(ii)    the number of directors set under Article 14.4; 

(b)    if the Company is not a public company, the most recently set of: 

(i)    the number of directors set by ordinary resolution (whether or not previous
notice of the resolution was given); and 
 (ii)    the number of directors set under Article
14.4. 

  
 14 

 13.2    Change in Number of Directors. If
the number of directors is set under Articles 13.1(a)(i) or 13.1(b)(i): 
 (a)    the
shareholders may elect or appoint the directors needed to fill any vacancies in the board of directors up to that number; 

(b)    if the shareholders do not elect or appoint the directors needed to fill any vacancies in
the board of directors up to that number contemporaneously with the setting of that number, then the directors may appoint, or the shareholders may elect or appoint, directors to fill those vacancies. 

13.3    Directors’ Acts Valid Despite Vacancy. An act or proceeding of
the directors is not invalid merely because fewer than the number of directors set or otherwise required under these Articles is in office. 

13.4    Qualifications of Directors. A director is not required to hold a share in the
capital of the Company as qualification for his or her office but must be qualified as required by the Business Corporations Act to become, act or continue to act as a director. 

13.5    Remuneration of Directors. The directors are entitled to the remuneration for acting
as directors, if any, as the directors may from time to time determine. If the directors so decide, the remuneration of the directors, if any, will be determined by the shareholders. That remuneration may be in addition to any salary or other
remuneration paid to any officer or employee of the Company as such, who is also a director. 

13.6    Reimbursement of Expenses of Directors. The Company must reimburse each director for
the reasonable expenses that he or she may incur in and about the business of the Company. 

13.7    Special Remuneration for Directors. If any director performs any professional or
other services for the Company that in the opinion of the directors are outside the ordinary duties of a director, or if any director is otherwise specially occupied in or about the Company’s business, he or she may be paid remuneration fixed
by the directors, or, at the option of that director, fixed by ordinary resolution, and such remuneration may be either in addition to, or in substitution for, any other remuneration that he or she may be entitled to receive. 

13.8    Gratuity, Pension or Allowance on Retirement of Director. Unless otherwise
determined by ordinary resolution, the directors on behalf of the Company may pay a gratuity or pension or allowance on retirement to any director who has held any salaried office or place of profit with the Company or to his or her spouse or
dependants and may make contributions to any fund and pay premiums for the purchase or provision of any such gratuity, pension or allowance. 

ARTICLE 14 
 ELECTION
AND REMOVAL OF DIRECTORS 
 14.1    Election at Annual General Meeting. At every
annual general meeting and in every unanimous resolution contemplated by Article 10.2: 

(a)    the shareholders entitled to vote at the annual general meeting for the election of
directors may elect, or in the unanimous resolution appoint, a board of directors consisting of the number of directors for the time being set under these Articles; and 

(b)    all the directors cease to hold office immediately before the election or appointment of
directors under paragraph (a), but are eligible for re-election or re-appointment. 

  
 15 

 14.2    Consent to be a Director. No
election, appointment or designation of an individual as a director is valid unless: 

(a)    that individual consents to be a director in the manner provided for in the Business
Corporations Act; or 
 (b)    that individual is elected or appointed at a meeting at which the
individual is present and the individual does not refuse, at the meeting, to be a director. 

14.3    Failure to Elect or Appoint Directors. If: 

(a)    the Company fails to hold an annual general meeting, and all the shareholders who are
entitled to vote at an annual general meeting fail to pass the unanimous resolution contemplated by Article 10.2, on or before the date by which the annual general meeting is required to be held under the Business Corporations Act; or 

(b)    the shareholders fail, at the annual general meeting or in the unanimous resolution
contemplated by Article 10.2, to elect or appoint any directors; 
 then each director then in office continues to hold
office until the earlier of: 
 (c)    the date on which his or her successor is elected or
appointed; and 
 (d)    the date on which he or she otherwise ceases to hold office under the
Business Corporations Act or these Articles. 
 14.4    Places of Retiring Directors Not
Filled. If, at any meeting of shareholders at which there should be an election of directors, the places of any of the retiring directors are not filled by that election, then those retiring directors who are not
re-elected and who are asked by the newly elected directors to continue in office will, if willing to do so, continue in office to complete the number of directors for the time being set pursuant to these
Articles until further new directors are elected at a meeting of shareholders convened for that purpose. If any such election or continuance of directors does not result in the election or continuance of the number of directors for the time being
set pursuant to these Articles, then the number of directors of the Company is deemed to be set at the number of directors actually elected or continued in office. 

14.5    Directors May Fill Casual Vacancies. Any casual vacancy occurring in the board of
directors may be filled by the directors. 
 14.6    Remaining Directors Power to Act. The
directors may act notwithstanding any vacancy in the board of directors, but if the Company has fewer directors in office than the number set pursuant to these Articles as the quorum of directors, then the directors may only act for the purpose of
appointing directors up to that number or of summoning a meeting of shareholders for the purpose of filling any vacancies on the board of directors or, subject to the Business Corporations Act, for any other purpose. 

14.7    Shareholders May Fill Vacancies. If the Company has no directors or fewer directors
in office than the number set pursuant to these Articles as the quorum of directors, then the shareholders may elect or appoint directors to fill any vacancies on the board of directors. 

14.8    Additional Directors. Notwithstanding Articles 13.1 and 13.2, between annual general
meetings or unanimous resolutions contemplated by Article 10.2, the directors may appoint one or more additional directors, but the number of additional directors appointed under this Article 14.8 must not at any time exceed one-third of the number of the current directors who were elected or appointed as directors other than under this Article 14.8. 

  
 16 

 Any director so appointed ceases to hold office immediately before the next
election or appointment of directors under Article 14.1(a), but is eligible for re-election or re-appointment 

14.9    Ceasing to be a Director. A director ceases to be a director when: 

(a)    the term of office of the director expires; 

(b)    the director dies; 

(c)    the director resigns as a director by notice in writing provided to the Company or a lawyer
for the Company; or 
 (d)    the director is removed from office pursuant to Articles 14.10 or
14.11. 
 14.10    Removal of Director by Shareholders. The Company may remove any
director before the expiration of his or her term of office by special resolution. In that event, the shareholders may elect, or appoint by ordinary resolution, a director to fill the resulting vacancy. If the shareholders do not elect or appoint a
director to fill the resulting vacancy contemporaneously with the removal, then the directors may appoint or the shareholders may elect, or appoint by ordinary resolution, a director to fill that vacancy. 

14.11    Removal of Director by Directors. The directors may remove any director before the
expiration of his or her term of office if the director is convicted of an indictable or similar offence, or if the director ceases to be qualified to act as a director of a company and does not promptly resign, and the directors may appoint a
director to fill the resulting vacancy. 
 ARTICLE 15 

POWERS AND DUTIES OF DIRECTORS 

15.1    Powers of Management. The directors must, subject to the Business Corporations Act
and these Articles, manage or supervise the management of the business and affairs of the Company and have the authority to exercise all such powers of the Company as are not, by the Business Corporations Act or by these Articles, required to be
exercised by the shareholders of the Company. 
 15.2    Appointment of Attorney of
Company. The directors may from time to time, by power of attorney or other instrument, under seal if so required by law, appoint any person to be the attorney of the Company for such purposes, and with such powers, authorities and discretions
(not exceeding those vested in or exercisable by the directors under these Articles and excepting the power to fill vacancies in the board of directors, to remove a director, to change the membership of, or fill vacancies in, any committee of the
directors, to appoint or remove officers appointed by the directors and to declare dividends) and for such period, and with such remuneration and subject to such conditions as the directors may think fit. Any such power of attorney may contain such
provisions for the protection or convenience of persons dealing with such attorney as the directors think fit. Any such attorney may be authorized by the directors to sub-delegate all or any of the powers,
authorities and discretions for the time being vested in him or her. 
 ARTICLE 16 

DISCLOSURE OF INTEREST OF DIRECTORS 

16.1    Obligation to Account for Profits. A director or senior officer who holds a
disclosable interest (as that term is used in the Business Corporations Act) in a contract or transaction into which the Company has entered or proposes to enter is liable to account to the Company for any profit that accrues to the director or
senior officer under or as a result of the contract or transaction only if and to the extent provided in the Business Corporations Act. 

  
 17 

 16.2    Restrictions on Voting by Reason of
Interest. A director who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter is not entitled to vote on any directors’ resolution to approve that contract or transaction, unless
all the directors have a disclosable interest in that contract or transaction, in which case any or all of those directors may vote on such resolution. 

16.3    Interested Director Counted in Quorum. A director who holds a disclosable interest
in a contract or transaction into which the Company has entered or proposes to enter and who is present at the meeting of directors at which the contract or transaction is considered for approval may be counted in the quorum at the meeting whether
or not the director votes on any or all of the resolutions considered at the meeting. 

16.4    Disclosure of Conflict of Interest or Property. A director or senior officer who
holds any office or possesses any property, right or interest that could result, directly or indirectly, in the creation of a duty or interest that materially conflicts with that individual’s duty or interest as a director or senior officer,
must disclose the nature and extent of the conflict as required by the Business Corporations Act. 

16.5    Director Holding Other Office in the Company. A director may hold any office or
place of profit with the Company, other than the office of auditor of the Company, in addition to his or her office of director for the period and on the terms (as to remuneration or otherwise) that the directors may determine. 

16.6    No Disqualification. No director or intended director is disqualified by his or her
office from contracting with the Company either with regard to the holding of any office or place of profit the director holds with the Company or as vendor, purchaser or otherwise, and no contract or transaction entered into by or on behalf of the
Company in which a director is in any way interested is liable to be voided for that reason. 

16.7    Professional Services by Director or Officer. Subject to the Business Corporations
Act, a director or officer, or any person in which a director or officer has an interest, may act in a professional capacity for the Company, except as auditor of the Company, and the director or officer or such person is entitled to remuneration
for professional services as if that director or officer were not a director or officer. 

16.8    Director or Officer in Other Corporations. A director or officer may be or become a
director, officer or employee of, or otherwise interested in, any person in which the Company may be interested as a shareholder or otherwise, and, subject to the Business Corporations Act, the director or officer is not accountable to the Company
for any remuneration or other benefits received by him or her as director, officer or employee of, or from his or her interest in, such other person. 

ARTICLE 17 
 PROCEEDINGS
OF DIRECTORS 
 17.1    Meetings of Directors. The directors may meet together for the
conduct of business, adjourn and otherwise regulate their meetings as they think fit, and meetings of the directors held at regular intervals may be held at the place, at the time and on the notice, if any, as the directors may from time to time
determine. 
 17.2    Voting at Meetings. Questions arising at any meeting of directors
are to be decided by a majority of votes and, in the case of an equality of votes, the chair of the meeting does not have a second or casting vote. 

17.3    Chair of Meetings. The following individual is entitled to preside as chair at a
meeting of directors: 

  
 18 

 (a)    the chair of the board, if any; 

(b)    in the absence of the chair of the board, the president, if any, if the president is a
director; or 
 (c)    any other director chosen by the directors if: 

(i)    neither the chair of the board nor the president, if a director, is present at the meeting
within 15 minutes after the time set for holding the meeting; 
 (ii)    neither the chair of
the board nor the president, if a director, is willing to chair the meeting; or 
 (iii)    the
chair of the board and the president, if a director, have advised the secretary, if any, or any other director, that they will not be present at the meeting. 

17.4    Meetings by Telephone or Other Communications Medium. A director may participate in
a meeting of the directors or of any committee of the directors in person or by telephone if all directors participating in the meeting, whether in person or by telephone or other communications medium, are able to communicate with each other. A
director may participate in a meeting of the directors or of any committee of the directors by a communications medium other than telephone if all directors participating in the meeting, whether in person or by telephone or other communications
medium, are able to communicate with each other and if all directors who wish to participate in the meeting agree to such participation. A director who participates in a meeting in a manner contemplated by this Article 17.4 is deemed for all
purposes of the Business Corporations Act and these Articles to be present at the meeting and to have agreed to participate in that manner. 

17.5    Calling of Meetings. A director may, and the secretary or an assistant secretary of
the Company, if any, on the request of a director must, call a meeting of the directors at any time. 

17.6    Notice of Meetings. Other than for meetings held at regular intervals as determined
by the directors pursuant to Article 17.1, reasonable notice of each meeting of the directors, specifying the place, day and time of that meeting must be given to each of the directors by any method set out in Article 23.1 or orally or by telephone.

 17.7    When Notice Not Required. It is not necessary to give notice of a meeting of
the directors to a director if: 
 (a)    the meeting is to be held immediately following a
meeting of shareholders at which that director was elected or appointed, or is the meeting of the directors at which that director is appointed; or 

(b)    the director has waived notice of the meeting. 

17.8    Meeting Valid Despite Failure to Give Notice. The accidental omission to give notice
of any meeting of directors to, or the non-receipt of any notice by, any director does not invalidate any proceedings at that meeting. 

17.9    Waiver of Notice of Meetings. Any director may send to the Company a document signed
by him or her waiving notice of any past, present or future meeting or meetings of the directors and may at any time withdraw that waiver with respect to meetings held after that withdrawal. After sending a waiver with respect to all future meetings
and until that waiver is withdrawn, no notice of any meeting of the directors need be given to such director and all meetings of the directors so held are deemed not to be improperly called or constituted by reason of notice not having been given to
such director. 

  
 19 

 Attendance of a director at a meeting of the directors is a waiver of notice
of the meeting, unless that director attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called. 

17.10    Quorum. The quorum necessary for the transaction of the business of the directors
is a majority of the number of directors in office or such greater number as the directors may determine from time to time. 

17.11    Validity of Acts Where Appointment Defective. Subject to the Business Corporations
Act, an act of a director or officer is not invalid merely because of an irregularity in the election or appointment or a defect in the qualification of that director or officer. 

17.12    Consent Resolutions in Writing. A resolution of the directors or of any committee
of the directors consented to in writing by all of the directors entitled to vote on it, whether by signed document, fax, email or any other method of transmitting legibly recorded messages, is as valid and effective as if it had been passed at a
meeting of the directors or of the committee of the directors duly called and held. Such resolution may be in two or more counterparts which together are deemed to constitute one resolution in writing. A resolution passed in that manner is effective
on the date stated in the resolution or on the latest date stated on any counterpart. A resolution of the directors or of any committee of the directors passed in accordance with this Article 17.12 is deemed to be a proceeding at a meeting of
directors or of the committee of the directors and to be as valid and effective as if it had been passed at a meeting of the directors or of the committee of the directors that satisfies all the requirements of the Business Corporations Act and all
the requirements of these Articles relating to meetings of the directors or of a committee of the directors. 
 ARTICLE 18 

EXECUTIVE AND OTHER COMMITTEES 

18.1    Appointment and Powers of Executive Committee. The directors may, by resolution,
appoint an executive committee consisting of the director or directors that they consider appropriate, and this committee has, during the intervals between meetings of the board of directors, all of the directors’ powers, except: 

(a)    the power to fill vacancies in the board of directors; 

(b)    the power to remove a director; 

(c)    the power to change the membership of, or fill vacancies in, any committee of the directors;
and 
 (d)    such other powers, if any, as may be set out in the resolution or any subsequent
directors’ resolution. 
 18.2    Appointment and Powers of Other Committees. The
directors may, by resolution: 
 (a)    appoint one or more committees (other than the executive
committee) consisting of the director or directors that they consider appropriate; 

(b)    delegate to a committee appointed under paragraph (a) any of the directors’
powers, except: 
 (i)    the power to fill vacancies in the board of directors; 

(ii)    the power to remove a director; 

  
 20 

 (iii)    the power to change the membership of,
or fill vacancies in, any committee of the directors; and 
 (iv)    the power to appoint or
remove officers appointed by the directors; and 
 (c)    make any delegation referred to in
paragraph (b) subject to the conditions set out in the resolution or any subsequent directors’ resolution. 

18.3    Obligations of Committees. Any committee appointed under Articles 18.1 or 18.2, in
the exercise of the powers delegated to it, must: 
 (a)    conform to any rules that may from
time to time be imposed on it by the directors; and 
 (b)    report every act or thing done in
exercise of those powers at such times as the directors may require. 
 18.4    Powers of
Board. The directors may, at any time, with respect to a committee appointed under Articles 18.1 or 18.2: 

(a)    revoke or alter the authority given to the committee, or override a decision made by the
committee, except as to acts done before such revocation, alteration or overriding; 

(b)    terminate the appointment of, or change the membership of, the committee; and 

(c)    fill vacancies in the committee. 

18.5    Committee Meetings. Subject to Article 18.3(a) and unless the directors otherwise
provide in the resolution appointing the committee or in any subsequent resolution, with respect to a committee appointed under Articles 18.1 or 18.2: 

(a)    the committee may meet and adjourn as it thinks proper; 

(b)    the committee may elect a chair of its meetings but, if no chair of a meeting is elected, or
if at a meeting the chair of the meeting is not present within 15 minutes after the time set for holding the meeting, the directors present who are members of the committee may choose one of their number to chair the meeting; 

(c)    a majority of the members of the committee constitutes a quorum of the committee; and 

(d)    questions arising at any meeting of the committee are determined by a majority of votes of
the members present, and in case of an equality of votes, the chair of the meeting does not have a second or casting vote. 
 ARTICLE 19

 OFFICERS 

19.1    Directors May Appoint Officers. The directors may, from time to time, appoint such
officers, if any, as the directors determine and the directors may, at any time, terminate any such appointment. 

19.2    Functions, Duties and Powers of Officers. The directors may, for each officer: 

  
 21 

 (a)    determine the functions and duties of the
officer; 
 (b)    entrust to and confer on the officer any of the powers exercisable by the
directors on such terms and conditions and with such restrictions as the directors think fit; and 

(c)    revoke, withdraw, alter or vary all or any of the functions, duties and powers of the
officer. 
 19.3    Qualifications. No officer may be appointed unless that officer is
qualified in accordance with the Business Corporations Act. One person may hold more than one position as an officer of the Company. Any person appointed as the chair of the board or as the managing director must be a director. Any other officer
need not be a director. 
 19.4    Remuneration and Terms of Appointment. All appointments
of officers are to be made on the terms and conditions and at the remuneration (whether by way of salary, fee, commission, participation in profits or otherwise) that the directors think fit and are subject to termination at the pleasure of the
directors, and an officer may in addition to such remuneration be entitled to receive, after he or she ceases to hold such office or leaves the employment of the Company, a pension or gratuity. 

ARTICLE 20 

INDEMNIFICATION 

20.1    Definitions. In this Article 20: 

(a)    “eligible penalty” means a judgment, penalty or fine awarded or
imposed in, or an amount paid in settlement of, an eligible proceeding; 

(b)    “eligible proceeding” means a legal proceeding or investigative
action, whether current, threatened, pending or completed, in which a director or former director of the Company (an “eligible party”) or any of the heirs and legal personal representatives of the eligible party, by reason of
the eligible party being or having been a director of the Company: 
 (i)    is or may be joined
as a party; or 
 (ii)    is or may be liable for or in respect of a judgment, penalty or fine
in, or expenses related to, the proceeding; 
 (c)    “expenses” has the
meaning set out in the Business Corporations Act. 
 20.2    Mandatory Indemnification of
Directors and Former Directors. Subject to the Business Corporations Act, the Company must indemnify a director or former director of the Company and his or her heirs and legal personal representatives against all eligible penalties to which
such person is or may be liable, and the Company must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by such person in respect of that proceeding. Each director is deemed to have contracted
with the Company on the terms of the indemnity contained in this Article 20.2. 

20.3    Indemnification of Other Persons. Subject to any restrictions in the Business
Corporations Act, the Company may indemnify any person. 
 20.4    Non-Compliance with Business Corporations Act. The failure of a director or officer of the Company to comply with the Business Corporations Act or these Articles does not invalidate any indemnity to which he or
she is entitled under this Article 20. 

  
 22 

 20.5    Company May Purchase Insurance.
The Company may purchase and maintain insurance for the benefit of any person (or his or her heirs or legal personal representatives) who: 

(a)    is or was a director, officer, employee or agent of the Company; 

(b)    is or was a director, officer, employee or agent of a corporation at a time when the
corporation is or was an affiliate of the Company; 
 (c)    at the request of the Company, is or
was a director, officer, employee or agent of a corporation or of a partnership, trust, joint venture or other unincorporated entity; 

(d)    at the request of the Company, holds or held a position equivalent to that of a director or
officer of a partnership, trust, joint venture or other unincorporated entity; 
 against any liability incurred by him or
her as such director, officer, employee or agent or person who holds or held such equivalent position. 
 ARTICLE 21 

DIVIDENDS 

21.1    Payment of Dividends Subject to Special Rights. The provisions of this Article 21
are subject to the rights, if any, of shareholders holding shares with special rights as to dividends. 

21.2    Declaration of Dividends. Subject to the Business Corporations Act and the rights of
the holders of issued shares of the Company, the directors may from time to time declare and authorize payment of such dividends as they may deem advisable. 

21.3    [INTENTIONALLY DELETED] 

21.4    Record Date. The directors may set a date as the record date for the purpose of
determining shareholders entitled to receive payment of a dividend. The record date must not precede the date on which the dividend is to be paid by more than two months. If no record date is set, the record date is 5 p.m. on the date on which the
directors pass the resolution declaring the dividend. 
 21.5    Manner of Paying
Dividend. A resolution declaring a dividend may direct payment of the dividend wholly or partly in money or by the distribution of specific assets or of fully paid shares or of bonds, debentures or other securities of the Company or any other
corporation, or in any one or more of those ways. 
 21.6    Settlement of Difficulties.
If any difficulty arises in regard to a distribution under Article 21.5, the directors may settle the difficulty as they deem advisable, and, in particular, may: 

(a)    set the value for distribution of specific assets; 

(b)    determine that cash payments in substitution for all or any part of the specific assets to
which any shareholders are entitled may be made to any shareholders on the basis of the value so fixed in order to adjust the rights of all parties; and 

(c)    vest any such specific assets in trustees for the persons entitled to the dividend. 

21.7    When Dividend Payable. Any dividend may be made payable on such date as is fixed by
the directors. 

  
 23 

 21.8    Dividends to be Paid in Accordance
with Number of Shares. All dividends on shares of any class or series of shares must be declared and paid according to the number of such shares held. 

21.9    Receipt by Joint Shareholders. If several persons are joint shareholders of any
share, any one of them may give an effective receipt for any dividend, bonus or other money payable in respect of the share. 

21.10    Dividend Bears No Interest. No dividend bears interest against the Company. 

21.11    Fractional Dividends. If a dividend to which a shareholder is entitled includes a
fraction of the smallest monetary unit of the currency of the dividend, that fraction may be disregarded in making payment of the dividend and that payment represents full payment of the dividend. 

21.12    Payment of Dividends. Any dividend or other distribution payable in cash in respect
of shares may be paid by cheque, made payable to the order of the person to whom it is sent, and mailed to the address of the shareholder, or in the case of joint shareholders, to the address of the joint shareholder who is first named on the
central securities register, or to the person and to the address the shareholder or joint shareholders may direct in writing. The mailing of such cheque will, to the extent of the sum represented by the cheque (plus the amount of the tax required by
law to be deducted), discharge all liability for the dividend unless such cheque is not paid on presentation or the amount of tax so deducted is not paid to the appropriate taxing authority. 

21.13    Capitalization of Surplus. Notwithstanding anything contained in these Articles,
the directors may from time to time capitalize any surplus of the Company and may from time to time issue, as fully paid, shares or any bonds, debentures or other securities of the Company as a dividend representing the surplus or any part of the
surplus. 
 21.14    Unclaimed Dividends. Any dividend unclaimed after a period of three
years from the date on which the same has been declared to be payable shall be forfeited and shall revert to the Company. The Company shall not be liable to any person in respect of any dividend which is forfeited to the Company or delivered to any
public official pursuant to any applicable abandoned property, escheat or similar law. 
 ARTICLE 22 

DOCUMENTS, RECORDS AND REPORTS 

22.1    Recording of Financial Affairs. The directors must cause adequate accounting records
to be kept to record properly the financial affairs and condition of the Company and to comply with the Business Corporations Act. 

22.2    Inspection of Accounting Records. Unless the directors determine otherwise, or
unless otherwise determined by ordinary resolution, no shareholder of the Company is entitled to inspect or obtain a copy of any accounting records of the Company. 

ARTICLE 23 
 NOTICES

 23.1    Method of Giving Notice. Unless the Business Corporations Act or these
Articles provide otherwise, a notice, statement, report or other record required or permitted by the Business Corporations Act or these Articles to be sent by or to a person may be sent by any one of the following methods: 

(a)    mail addressed to the person at the applicable address for that person as follows: 

(i)    for a record mailed to a shareholder, the shareholder’s registered address; 

  
 24 

 (ii)    for a record mailed to a director or
officer, the prescribed address for mailing shown for the director or officer in the records kept by the Company or the mailing address provided by the recipient for the sending of that record or records of that class; 

(iii)    in any other case, the mailing address of the intended recipient; 

(b)    delivery at the applicable address for that person as follows, addressed to the person: 

(i)    for a record delivered to a shareholder, the shareholder’s registered address; 

(ii)    for a record delivered to a director or officer, the prescribed address for delivery shown
for the director or officer in the records kept by the Company or the delivery address provided by the recipient for the sending of that record or records of that class; 

(iii)    in any other case, the delivery address of the intended recipient; 

(c)    sending the record by fax to the fax number provided by the intended recipient for the
sending of that record or records of that class; 
 (d)    sending the record by email to the
email address provided by the intended recipient for the sending of that record or records of that class; 

(e)    physical delivery to the intended recipient; 

(f)    creating and providing a record posted on or made available through a generally accessible
electronic source and providing written notice by any of the foregoing methods of the availability of such record; or 

(g)    as otherwise permitted by any securities legislation (together with all regulations and
rules made and promulgated thereunder and all administrative policy statements, blanket orders, and rulings, notices, and other administrative directions issued by securities commissions or similar authorities appointed thereunder) in any province
or territory of Canada or in the federal jurisdiction of the United States or in any state of the United States that is applicable to the Company. 

23.2    Deemed Receipt. A record that is: 

(a)    mailed to a person by ordinary mail to the applicable address for that person referred to in
Article 23.1 is deemed to be received by the person to whom it was mailed on the day, Saturdays, Sundays and holidays excepted, following the date of mailing; 

(b)    emailed to a person to the email address provided by that person referred to in Article 23.1
is deemed to be received by the person to whom it was e-mailed on the day it was e-mailed; and 

(c)    delivered in accordance with Article 23.1(f), is deemed to be received by the person on the
day such written notice is posted. 
 23.3    Certificate of Sending. A certificate signed
by the secretary, if any, or other officer of the Company or of any other corporation acting in that capacity on behalf of the Company stating that a notice, statement, report or other record was sent in accordance with Article 23.1 is conclusive
evidence of that fact. 

  
 25 

 23.4    Notice to Joint Shareholders. A
notice, statement, report or other record may be provided by the Company to the joint shareholders of a share by providing the notice to the joint shareholder first named in the central securities register in respect of the share. 

23.5    Notice to Trustees. A notice, statement, report or other record may be provided by
the Company to the persons entitled to a share in consequence of the death, bankruptcy or incapacity of a shareholder by: 

(a)    mailing the record, addressed to them: 

(i)    by name, by the title of the legal personal representative of the deceased or incapacitated
shareholder, by the title of trustee of the bankrupt shareholder or by any similar description; and 

(ii)    at the address, if any, supplied to the Company for that purpose by the persons claiming
to be so entitled; or 
 (b)    if an address referred to in paragraph (a)(ii) has not been
supplied to the Company, by giving the notice in a manner in which it might have been given if the death, bankruptcy or incapacity had not occurred. 

23.6    Undelivered Notices. If, on two consecutive occasions, a notice, statement, report
or other record is sent to a shareholder pursuant to Article 23.1 and on each of those occasions any such record is returned because the shareholder cannot be located, the Company shall not be required to send any further records to the shareholder
until the shareholder informs the Company in writing of his or her new address. 
 ARTICLE 24 

SEAL AND EXECUTION OF DOCUMENTS 

24.1    Who May Attest Seal. Except as provided in Articles 24.2 and 24.3, the
Company’s seal, if any, must not be impressed on any record except when that impression is attested by the signatures of: 

(a)    any two directors; 

(b)    any officer, together with any director; 

(c)    if the Company only has one director, that director; or 

(d)    any one or more directors or officers or persons as may be determined by the directors. 

24.2    Sealing Copies. For the purpose of certifying under seal a certificate of incumbency
of the directors or officers of the Company or a true copy of any resolution or other document, despite Article 24.1, the impression of the seal may be attested by the signature of any director or officer or the signature of any other person as may
be determined by the directors. 
 24.3    Mechanical Reproduction of Seal. The directors
may authorize the seal to be impressed by third parties on share certificates or bonds, debentures or other securities of the Company as they may determine appropriate from time to time. To enable the seal to be impressed on any share certificates
or bonds, debentures or other securities of the Company, whether in definitive or interim form, on which facsimiles of any of the signatures of the directors or officers of the Company are, in accordance with the Business Corporations Act or these
Articles, printed or otherwise mechanically reproduced, there may be delivered to the person employed to engrave, lithograph or print such definitive or interim share certificates or bonds, debentures or other securities one or more unmounted dies
reproducing the seal and the chair 

  
 26 

 
of the board or any senior officer together with the secretary, treasurer, secretary-treasurer, an assistant secretary, an assistant treasurer or an assistant secretary-treasurer may in writing
authorize such person to cause the seal to be impressed on such definitive or interim share certificates or bonds, debentures or other securities by the use of such dies. Share certificates or bonds, debentures or other securities to which the seal
has been so impressed are for all purposes deemed to be under and to bear the seal impressed on them. 

24.4    Execution of Documents Generally. The Directors may from time to time by resolution
appoint any one or more persons, officers or Directors for the purpose of executing any instrument, document or agreement in the name of and on behalf of the Company for which the seal need not be affixed, and if no such person, officer or Director
is appointed, then any one officer or Director of the Company may execute such instrument, document or agreement. 
 ARTICLE 25 

PROHIBITIONS 

25.1    Definitions. In this Article 25: 

(a)    “designated security” means: 

(i)    a voting security of the Company; 

(ii)    a security of the Company that is not a debt security and that carries a residual right to
participate in the earnings of the Company or, on the liquidation or winding up of the Company, in its assets; or 

(iii)    a security of the Company convertible, directly or indirectly, into a security described
in paragraph (i) or (ii); 
 (b)    “security” has the meaning
assigned in the Securities Act (British Columbia); 
 (c)    “voting
security” means a security of the Company that: 
 (i)    is not a debt security,
and 
 (ii)    carries a voting right either under all circumstances or under some circumstances
that have occurred and are continuing. 
 25.2    Application. Article 25.3 does not apply
to the Company if and for so long as it is a public company or a pre-existing reporting company which has the Statutory Reporting Company Provisions as part of its Articles or to which the Statutory Reporting
Company Provisions apply. 
 25.3    Consent Required for Transfer of Shares or Designated
Securities. No share or designated security may be sold, transferred or otherwise disposed of without the consent of the directors and the directors are not required to give any reason for refusing to consent to any such sale, transfer or other
disposition. 

  
 27Document

Exhibit 4.7

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES ACT OF 1934
The following description sets forth certain material terms and provisions of Kansas City Southern’s (“KCS”) securities that were registered under Section 12 of the Securities Exchange Act of 1934, as amended, as of December 31, 2021.

As previously reported, on September 15, 2021, KCS, Canadian Pacific Railway Limited (“Canadian Pacific”), Cygnus Merger Sub 1 Corporation, a direct wholly owned subsidiary of Canadian Pacific (“Surviving Merger Sub”), and Cygnus Merger Sub 2 Corporation, a direct wholly owned subsidiary of Surviving Merger Sub (“First Merger Sub”), entered into an Agreement and Plan of Merger (“Merger Agreement”) that provided for the acquisition of KCS by Canadian Pacific.

On December 14, 2021, on the terms set forth in the Merger Agreement, (1) First Merger Sub merged with and into KCS (the “First Merger”) with KCS surviving the First Merger as a wholly owned subsidiary of Surviving Merger Sub, and (2) immediately following the effective time of the First Merger (the “Effective Time”), KCS merged with and into Surviving Merger Sub (the “Second Merger,” and, together with the First Merger, the “Mergers”) with Surviving Merger Sub surviving the Second Merger as a direct wholly owned subsidiary of Canadian Pacific (“Second Surviving Corporation”). Upon the effective time of the Second Merger, Second Surviving Corporation was renamed “Kansas City Southern” and, as the successor company of KCS, continued to own the assets of KCS as of prior to the Effective Time. Following the consummation of the Mergers, Canadian Pacific caused the contribution, directly and indirectly, of all of the outstanding shares of capital stock of the Second Surviving Corporation to Cygnus Holding Corp., a Delaware corporation and an indirect wholly owned subsidiary of Canadian Pacific (“Merger Holdco”), immediately following which Merger Holdco deposited all of the stock of the Second Surviving Corporation, as successor to KSU, into an independent, irrevocable voting trust (the “Voting Trust”) subject to the terms and conditions of a voting trust agreement, by and among Canadian Pacific, Merger Holdco and David L. Starling, pending receipt of the final and non-appealable approval or exemption by the Surface Transportation Board of the transactions contemplated by the Merger Agreement pursuant to 49 U.S.C. § 11323 et seq.  The deposit of all of the stock of the Second Surviving Corporation into the Voting Trust, together with the Mergers, are referred to as the “Transaction”.

At the Effective Time, (i) each share of common stock, par value $0.01 per share, of KCS (“Common Stock”) issued and outstanding immediately prior to the Effective Time (other than certain excluded shares as described in the Merger Agreement) was converted into the right to receive (A) 2.884 common shares of Canadian Pacific and (B) $90.00 in cash, without interest, and (ii) each share of 4% noncumulative preferred stock of KCS, par value $25.00 (the “4% Preferred Stock”), issued and outstanding immediately prior to the Effective Time (other than certain excluded shares as described in the Merger Agreement) was converted into the right to receive $37.50 per share in cash, without interest.  

As a result of the Transaction, shares of KCS Common Stock and 4% Preferred Stock are no longer issued and outstanding.

The information provided in this Exhibit 4.7 under the heading “Description of Capital Stock” is as of December 14, 2021 prior to the consummation of the Transaction.  Except where indicated below, the information provided in this Exhibit 4.7 under the heading “Description of Debt Securities” is as of December 31, 2021.

DESCRIPTION OF CAPITAL STOCK
This description summarizes relevant provisions of Delaware law. The following summary does not purport to be complete and is subject to, and is qualified in its entirety by reference to, the applicable provisions of Delaware law and KCS’s Amended and Restated Certificate of Incorporation, a copy of which is incorporated by reference as an exhibit to KSU’s Annual Report on Form 10-K for the year 

ended December 31, 2020, and KCS’s Amended and Restated Bylaws, a copy of which is incorporated by reference as an exhibit to the Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2021. KCS encourages you to read its Amended and Restated Certificate of Incorporation, Bylaws and the applicable provisions of Delaware law for additional information. 
Authorized Capital Stock
Under KCS’s Amended and Restated Certificate of Incorporation, KCS is authorized to issue (i) 400,000,000 shares of Common Stock, (ii) 840,000 shares of 4% Preferred Stock, and (iii) 2,000,000 shares of New Series Preferred Stock, par value $1.00 per share (“New Series Preferred Stock”). As of December 14, 2021, 123,352,185 shares of Common Stock were issued and 91,053,088 shares of Common Stock were outstanding (excluding 32, 299,097 shares held in treasury) and 649,736 shares of 4% Preferred Stock were issued and 214,542 shares of 4% Preferred Stock were outstanding (excluding 435,194 shares held in treasury). Prior to consummation of the Transaction, KCS’s Common Stock and 4% Preferred Stock were listed on the New York Stock Exchange under the ticker symbol “KSU”.
Common Stock
Holders of KCS’s Common Stock are entitled to receive dividends when, as and if declared by KCS’s board of directors (“Board of Directors”) out of funds legally available for the payment of dividends, provided that, if any shares of 4% Preferred Stock or New Series Preferred Stock are outstanding, no dividends or other distributions may be made with respect to the Common Stock unless full required dividends on the shares of 4% Preferred Stock and New Series Preferred Stock have been paid, including accumulated dividends in the case of any series of New Series Preferred Stock designated to receive cumulative dividends. The agreements governing KCS’s indebtedness may impose certain limitations on KCS’s ability to pay cash dividends on its Common Stock.
Holders of KCS’s Common Stock are entitled to one vote per share on any matter brought before the stockholders. In the event of the voluntary or involuntary dissolution, liquidation or winding up of KCS, holders of KCS’s Common Stock are entitled to receive pro rata, after satisfaction in full of the prior rights of creditors (including holders of its indebtedness) and holders of any 4% Preferred Stock and New Series Preferred Stock, all of KCS’s remaining assets available for distribution. The issuance of additional shares of 4% Preferred Stock or New Series Preferred Stock may result in a dilution in the voting power and relative equity interests of the holders of KCS’s Common Stock and would subject the Common Stock to the prior dividend and liquidation rights of the additional 4% Preferred Stock and New Series Preferred Stock issued. KCS’s Common Stock is not redeemable and has no preemptive rights.
Preferred Stock
4% Preferred Stock. Holders of KCS’s 4% Preferred Stock are entitled to receive dividends up to but not exceeding the rate of 4% per annum, before any dividends are declared or paid to Common Stock or New Series Preferred Stock for the same period. Such dividends are not cumulative, and the Holders of the 4% Preferred Stock are not entitled to receive any other earnings or profits. In case of liquidation or dissolution of KCS, the holders of 4% Preferred Stock are entitled to receive payment up to the amount of the par value before any payment or liquidation is made upon the Common Stock or New Series Preferred Stock. Holders of KCS 4% Preferred Stock are entitled to one vote per share on any matter brought before the stockholders.
New Series Preferred Stock. KCS’s Board of Directors is authorized to issue up to 2,000,000 shares of New Series Preferred Stock in one or more series and to fix and determine the number of shares of preferred stock of any series, to determine the designation of any such series, to increase or decrease the number of shares of any such series subsequent to the issue of shares of that series, and to determine or alter the rights, preferences, privileges and restrictions granted to or imposed upon any such series. As described above, there are currently no shares of New Series Preferred Stock outstanding.
Prior to the issuance of shares of each series of New Series Preferred Stock, KCS’s Board of Directors is required to adopt resolutions and file a certificate of determination with the Secretary of State of the State of Delaware. The certificate of determination will fix for each series the designation and number of shares and the rights, preferences, privileges and restrictions of the shares including, but not limited to, the following:

• the title and stated value;
• voting rights, if any;
• any rights and terms of redemption (including sinking fund provisions);
• the dividend rate(s), period(s) and/or payment date(s) or method(s) of calculation;
• whether dividends are cumulative or non-cumulative, the date from which dividends will accumulate;
• the relative ranking and preferences of the preferred stock as to dividend rights and rights upon liquidation, dissolution or winding up of KCS’s affairs;
• the terms and conditions, if applicable, upon which the preferred stock will be convertible into KCS’s Common Stock, including the conversion price (or manner of calculation) and conversion period;
• the provision for redemption, if applicable;
• the provision for a sinking fund, if any;
• liquidation preferences;
• any limitations on issuance of any class or series of preferred stock ranking senior to or on a parity with the class or series of preferred stock as to dividend rights and rights upon liquidation, dissolution or winding up of KCS’s affairs; and
• any other specific terms, preferences, rights, limitations or restrictions of the preferred stock.
All shares of preferred stock will, when issued, be fully paid and nonassessable and will not have any preemptive or similar rights.
In addition to the terms listed above, KCS will set forth in a prospectus supplement the following terms relating to the class or series of preferred stock being offered:
• the number of shares offered, the liquidation preference per share and the offering price;
• the procedures for any auction and remarketing, if any;
• any listing of the preferred stock on any securities exchange; and
• a discussion of any material and/or special U.S. federal income tax considerations.
Until the KCS’s Board of Directors determines the rights of holders of a series of preferred stock, KCS cannot predict the effect of the issuance of any shares of preferred stock upon the rights of holders of its Common Stock. However, the effect could include one or more of the following:
• restricting dividends on KCS’s Common Stock;
• diluting the voting power of KCS’s Common Stock;
• impairing the liquidation rights of KCS’s Common Stock; or
• delaying or preventing a change in control of KCS’s without further action by its stockholders.
If issued, the preferred stock would rank, with respect to dividends and upon KCS’s liquidation, dissolution or winding up:
• senior to all classes or series of KCS’s Common Stock and to all of its equity securities ranking junior to the preferred stock;
• on a parity with all of KCS’s equity securities the terms of which provide that the equity securities rank on a party with the preferred stock; and
• junior to all of KCS’s equity securities the terms of which specifically provide that the equity securities rank senior to the preferred stock.

Certain Anti-takeover Effects
General. Certain provisions of KCS’s Amended and Restated Certificate of Incorporation and Bylaws and the Delaware General Corporation Law, or DGCL, could make it more difficult to consummate an acquisition of control of KCS by means of a tender offer, a proxy fight, open market purchases or otherwise in a transaction not approved by its Board of Directors. The provisions described below may reduce KCS’s vulnerability to an unsolicited proposal for the restructuring or sale of all or substantially all of its assets or an unsolicited takeover attempt which is unfair to its stockholders. The summary of the provisions set forth below does not purport to be complete and is qualified in its entirety by reference to KCS’s Amended and Restated Certificate of Incorporation and Bylaws and the DGCL.
Business Combinations. Section 203 of the DGCL restricts a wide range of transactions (“business combinations”) between a corporation and an interested stockholder. An “interested stockholder” is, generally, any person who beneficially owns, directly or indirectly, 15% or more of the corporation’s outstanding voting stock. Business combinations are broadly defined to include (i) mergers or consolidations with, (ii) sales or other dispositions of more than 10% of the corporation’s assets to, (iii) certain transactions resulting in the issuance or transfer of any stock of the corporation or any subsidiary to, (iv) certain transactions resulting in an increase in the proportionate share of stock of the corporation or any subsidiary owned by, or (v) receipt of the benefit (other than proportionately as a stockholder) of any loans, advances or other financial benefits by, an interested stockholder. Section 203 provides that an interested stockholder may not engage in a business combination with the corporation for a period of three years from the time of becoming an interested stockholder unless (a) the board of directors approved either the business combination or the transaction which resulted in the person becoming an interested stockholder prior to the time that person became an interested stockholder; (b) upon consummation of the transaction which resulted in the person becoming an interested stockholder, that person owned at least 85% of the corporation’s voting stock (excluding, for purposes of determining the voting stock outstanding, but not the outstanding voting stock owned by the interested stockholder, shares owned by persons who are directors and also officers and shares owned by certain employee stock plans); or (c) the business combination is approved by the board of directors and authorized by the affirmative vote of at least 66 2/3 % of the outstanding voting stock not owned by the interested stockholder. The restrictions on business combinations with interested stockholders contained in Section 203 of the DGCL do not apply to a corporation whose certificate of incorporation or bylaws contains a provision expressly electing not to be governed by the statute; however, neither KCS’s Amended and Restated Certificate of Incorporation nor its Bylaws contains a provision electing to “opt-out” of Section 203.
Special Meetings. Pursuant to the DGCL, a special meeting of stockholders may be called by the board of directors or by any other person authorized to do so in the charter or the bylaws. KCS’s Amended and Restated Certificate of Incorporation and Bylaws provides that special meetings of stockholders may only be called by the Board of Directors, the Chairman of the Board of Directors, the Chief Executive Officer of KCS, or by the Secretary at the written request in proper form of one or more stockholders of record who have continuously held for at least one year prior to the date such request is delivered to the Secretary a “net long position” (as defined in the Bylaws) in shares of common stock of KCS representing in the aggregate at least fifteen percent (15%) of the outstanding shares of common stock of KCS. Special meetings of the stockholders may not be called by any other person or persons.
Additional Authorized Shares of Capital Stock. The additional shares of authorized common stock and preferred stock available for issuance under KCS’s Amended and Restated Certificate of Incorporation could be issued at such times, under such circumstances and with such terms and conditions as to impede a change in control.
Advance Notice Requirements. KCS’s Bylaws establish advance notice procedures with regard to stockholder proposals relating to the nomination of candidates for election as directors or other business to be brought before meetings of the stockholders. These procedures provide that notice of stockholder proposals of these kinds must be timely given in writing to the Secretary of KCS before the meeting at which the action is to be taken. Generally, to be timely, notice of stockholder proposals must be received at the principal executive offices of KCS not less than 60 nor more than 90 days before the one-year anniversary of the previous year’s annual meeting; provided, however , that in the event that no annual meeting was held in the previous year or if the date of the annual meeting is advanced by more than 30 days prior to or delayed more than 60 days after the one-year anniversary of the previous year’s annual meeting, then, for notice by the stockholder to be timely, it must be received by the Secretary of KCS not 

earlier than the close of business on the 90th day prior to such annual meeting and not later than the close of business on the later of (i) the 60th day prior to such annual meeting or (ii) the tenth day following the day on which a Public Announcement (as defined in the Bylaws) of the date of such annual meeting is first made. The notice must contain certain information specified in the Bylaws.
No Written Consent of Stockholders. KCS’s Amended and Restated Certificate of Incorporation requires all stockholder actions to be taken by a vote of the stockholders at an annual or special meeting, and does not permit its stockholders to act by written consent without a meeting.
DESCRIPTION OF DEBT SECURITIES
The following description of KCS’s 3.85% Senior Notes due 2023 (the “3.85% Notes”), 3.00% Senior Notes due 2023 (the “3.00% Notes”), 4.30% Senior Notes due 2043 (the “4.30% Notes”), 4.95% Senior Notes due 2045 (the “4.95% Notes”), 3.125% Senior Notes due 2026 (the “3.125% Notes”), 4.70% Senior Notes due 2048 (the “4.70% Notes”), 2.875% Senior Notes due 2029 (the “2.875% Notes”) and 4.20% Senior Notes due 2069 (the “4.20% Notes”) and 3.50% Senior Notes due 2050 (the “3.50% Notes,” and together with the 3.85% Notes, the 3.00% Notes, the 4.30% Notes, the 4.95% Notes, the 3.125% Notes, the 4.70% Notes, the 2.875% Notes and the 4.20% Notes, the “Notes”) is a summary and does not purport to be complete. This description is qualified in its entirety by reference to the Indenture, dated December 9, 2015 (as amended or supplemented, the “Indenture”), among KCS, as issuer, the guarantors party thereto and U.S. Bank National Association, as trustee. While the terms summarized below will apply generally to any future debt securities KCS may offer, KCS will describe the particular terms of any debt securities that it may offer in more detail in the applicable prospectus supplement. 
KCS had an effective registration statement on Form S-3ASR (File No.: 333-249927), which was filed with the SEC on November 6, 2020 and covered the registration of the Notes. In addition, The Kansas City Southern Railway Company (“KCSR”) and Kansas City Southern de México, S.A. de C.V. (“KCSM”) each have outstanding debt securities that were registered under other registration statements filed prior to November 6, 2020.  In connection with the Transaction, on December 14, 2021, KSC and KCSR each filed post-effective amendments to terminate the effectiveness of such registration statements and remove from registration any of the securities that had been registered but remained unsold thereunder.
The Notes
The Notes were issued under the Indenture, which provides that debt securities may be issued under the Indenture from time to time in one or more series. The Indenture does not limit the amount of debt securities that KCS may issue under the Indenture. KCS may, without the consent of the holders of any series of Notes, issue additional notes (“Additional Notes”) of a series having the same terms as the Notes of such series, except for the public offering price and the issue date and, if applicable, the initial interest accrual date and the initial interest payment date. Any Additional Notes of a series, together with the Notes of such series, will constitute a single series of Notes and will vote together as one class on all matters with respect to such series of Notes; provided, however, that any Additional Notes that are not fungible with existing Notes of such series for U.S. federal income tax purposes will have a separate CUSIP, ISIN and other identifying number from the existing Notes of such series. 
The 3.85% Notes. KCSR issued $200.0 million in aggregate principal amount of senior unsecured notes on October 29, 2013. During the fourth quarter of 2015, $195.0 million of such notes were exchanged for the equivalent amount of 3.85% Notes issued by KCS. The 3.85% Notes bear interest at 3.85% per annum, and will mature on November 15, 2023. Interest on the 3.85% Notes is payable semi-annually on May 15 and November 15 of each year to the holders of record at the close of business on the immediately preceding May 1 and November 1. As of December 31, 2021, $199.2 million aggregate principal amount of the 3.85% Notes was outstanding.
The 3.00% Notes. KCSM issued $450.0 million in aggregate principal amount of senior unsecured notes on May 3, 2013. During the fourth quarter of 2015, $439.1 million of such notes were exchanged for the equivalent amount of 3.00% Notes issued by KCS. The 3.00% Notes bear interest at 3.00% per annum, and will mature on May 15, 2023. Interest on the 3.00% Notes is payable semi-annually on May 15 and November 15 of each year to the holders of record at the close of business on the 

immediately preceding May 1 and November 1. As of December 31, 2021, $439.1 million aggregate principal amount of the 3.00% Notes was outstanding.
The 4.30% Notes. KCSR issued $450.0 million in aggregate principal amount of senior unsecured notes on April 29, 2013. During the fourth quarter of 2015, $437.6 million of such notes were exchanged for the equivalent amount of 4.30% Notes issued by KCS. The 4.30% Notes bear interest at 4.30% per annum, and will mature May 15, 2043. Interest on the 4.30% Notes is payable semi-annually on May 15 and November 15 of each year to the holders of record at the close of business on the immediately preceding May 1 and November 1. As of December 31, 2021, $448.7 million aggregate principal amount of the 4.30% Notes was outstanding.
The 4.95% Notes. KCSR issued $500.0 million in aggregate principal amount of senior unsecured notes on July 27, 2015. During the fourth quarter of 2015, $476.7 million of such notes were exchanged for the equivalent amount of 4.95% Notes issued by KCS. The 4.95% Notes bear interest at 4.95% per annum, and will mature on August 15, 2045. Interest on the 4.95% Notes is payable semi-annually on June 1 and December 1 of each year to the holders of record at the close of business on the immediately preceding May 15 and November 15. As of December 31, 2021, $499.2 million aggregate principal amount of the 4.95% Notes was outstanding.
The 3.125% Notes. KCS issued $250.0 million in aggregate principal amount of the 3.125% Notes on May 16, 2016. The 3.125% Notes bear interest at 3.125% per annum, and will mature on June 1, 2026. Interest on the 3.125% Notes is payable semi-annually on June 1 and December 1 of each year to the holders of record at the close of business on the immediately preceding May 15 and November 15. As of December 31, 2021, $250.0 million aggregate principal amount of the 3.125% Notes was outstanding.
The 4.70% Notes. KCS issued $500.0 million in aggregate principal amount of the 4.70% Notes on May 3, 2018. The 4.70% Notes bear interest at 4.70% per annum, and will mature on May 1, 2048. Interest on the 4.70% Notes is payable semi-annually on May 1 and November 1 of each year to the holders of record at the close of business on the immediately preceding April 15 and October 15. As of December 31, 2021, $500.0 million aggregate principal amount of the 4.70% Notes was outstanding.
The 2.875% Notes. KCS issued $425.0 million in aggregate principal amount of the 2.875% Notes on November 18, 2019. The 2.875% Notes bear interest at 2.875% per annum, and will mature on November 15, 2029. Interest on the 2.875% Notes is payable semi-annually on May 15 and November 15 of each year to the holders of record at the close of business on the immediately preceding May 1 and November 1. As of December 31, 2021, $425.0 million aggregate principal amount of the 2.875% Notes was outstanding.
The 4.20% Notes. KCS issued $425.0 million in aggregate principal amount of the 4.20% Notes on November 18, 2019. The 4.20% Notes bear interest at 4.20% per annum, and will mature on November 15, 2069. Interest on the 4.20% Notes is payable semi-annually on May 15 and November 15 of each year to the holders of record at the close of business on the immediately preceding May 1 and November 1. As of December 31, 2021, $425.0 million aggregate principal amount of the 4.20% Notes was outstanding.
The 3.50% Notes. KCS issued $550.0 million in aggregate principal amount of the 3.50% Notes on April 22, 2020. The 3.50% Notes bear interest at 3.50% per annum, and will mature on May 1, 2050. Interest on the 3.50% Notes is payable semi-annually on May 1 and November 1 of each year to the holders of record at the close of business on the immediately preceding April 15 and October 15. As of December 31, 2021, $550.0 million aggregate principal amount of the 3.50% Notes was outstanding.

Note Guarantees
The Notes are unconditionally guaranteed, jointly and severally, on an unsecured senior basis, by each of KCS’s current and future Domestic Subsidiaries that from time to time Guarantees the applicable Credit Agreement or any other Debt of KCS or any of KCS’s Significant Subsidiaries that is a Guarantor. The obligations of each Guarantor under its Note Guarantee are limited as necessary to prevent that Note Guarantee from constituting a fraudulent conveyance under applicable law. For the avoidance of doubt, KCSM and any other foreign Subsidiaries of KCS do not and will not Guarantee the Notes.
The Note Guarantee of a Guarantor will be released: 

																		
						
	(1)	in connection with any sale, disposition or transfer of all or substantially all of the assets of that Guarantor (including by way of merger or consolidation) to a Person that is not (either before or after giving effect to such transaction) KCS or a Guarantor;

	(2)	in connection with any sale, disposition or transfer of all of the Capital Stock of that Guarantor to a Person that is not (either before or after giving effect to such transaction) KCS or a Guarantor;

	(3)	upon the release or discharge of such Guarantors’ Guarantee of the applicable Credit Agreement or under the Debt that triggered such Guarantor’s Note Guarantee;
	(4)	upon the liquidation or dissolution of such Guarantor; provided that no Default or Event of Default shall occur as a result thereof or has occurred and is continuing; or
	(5)	upon defeasance or satisfaction and discharge of the Indenture as provided below under the captions “-Legal Defeasance and Covenant Defeasance” and “-Satisfaction and Discharge.” 

Ranking
The Notes are KCS’s general unsecured senior obligations and rank equally in right of payment with all existing and future senior indebtedness of KCS and senior in right of payment to all of KCS’s future subordinated indebtedness. The Notes are effectively subordinated to KCS’s secured indebtedness, if any, to the extent of the value of the assets securing such indebtedness and are structurally subordinated to all liabilities of any of KCS’s subsidiaries that are not Guarantors.
Each Note Guarantee is a general unsecured senior obligation of that Guarantor, ranks equally in right of payment with all existing and future senior indebtedness of that Guarantor and senior in right of payment to any future subordinated indebtedness of that Guarantor. Each Note Guarantee is effectively subordinated to any existing and future secured indebtedness of that Guarantor to the extent of the value of any collateral securing such indebtedness.
Payment on the Notes
Principal of, premium, if any, and interest on the Notes is payable, and the Notes may be exchanged or transferred, at the office of the paying agent in the City of New York; provided that, at KCS’s option, payment of interest may be made by check mailed to the holders at their addresses as they appear in the Notes register. 
Optional Redemption 
General. Prior to the applicable Par Call Date, each series of Notes is redeemable in whole or in part at any time and from time to time, at KCS’s option, at a redemption price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on such series of Notes to be redeemed that would have been made if such Notes matured on the Par Call Date (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the then-current Treasury Rate, plus (a) 20 basis points for the 3.85% Notes, the 3.00% Notes and the 2.875% Notes, (b) 25 basis points for the 4.30% Notes, the 3.125% Notes and the 4.70% Notes, (c) 30 basis points for the 4.95% Notes and the 4.20% Notes and (d) 35 basis points for the 3.50% Notes; plus, in each case, accrued interest thereon to but excluding the redemption date. On or after the applicable Par Call Date, the applicable series of Notes is redeemable in whole or in part at any time and from time to time, at KCS’s option, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued interest thereon to but excluding the redemption date. 
Selection and Notice. If less than all of any series of Notes are to be redeemed at any time, the trustee will select the Notes of such series to be redeemed in compliance with the requirements of the principal national securities exchange, if any, on which such series of Notes is listed or, if such series of Notes is not listed on a national securities exchange, on a pro rata basis, by lot or by such other method as the applicable trustee in its sole discretion shall deem to be fair and appropriate; provided that no Note of $2,000 in principal amount or less shall be redeemed in part. 
Notice of the redemption will be mailed to holders of a series of Notes to be redeemed by first-class mail at least 30 days but not more than 60 days prior to the redemption date, except that redemption 

notices may be mailed more than 60 days prior to a redemption date if the notice is issued in connection with a defeasance of such series of Notes or a satisfaction and discharge of the Indenture. Notices of redemption may not be conditional.
If any series of Note is to be redeemed in part only, the notice of redemption that relates to such series of Note shall state the portion of the principal amount of such series of Notes that is to be redeemed. A Note in principal amount equal to the unredeemed portion thereof will be issued in the name of the holder thereof upon cancellation of the original Note. On and after the redemption date, interest will cease to accrue on such series of Notes or portions of them called for redemption unless KCS defaults in making the applicable redemption price.
Certain Covenants
Limitation on Secured Indebtedness and Indebtedness of KCS’s Subsidiaries that are not Guarantors 
If KCS or any of KCS’s Significant Subsidiaries that is a Guarantor creates or permits any lien of any kind upon (1) any stock, whether owned on the applicable Closing Date or thereafter acquired, of any of KCS’s Significant Subsidiaries that is a Guarantor or (2) any indebtedness, whether owned on the applicable Closing Date or thereafter acquired, of KCS or any of KCS’s Significant Subsidiaries that is a Guarantor, in each case, to secure any Debt (other than the applicable Notes) of KCS, any of KCS’s Subsidiaries or any other person, KCS will cause the outstanding Notes to be secured equally and ratably with that Debt, unless the aggregate principal amount of all such secured Debt then outstanding (together with any Debt outstanding under clauses (1), (3), (4) and (5) of the following paragraph) would not exceed 10.0% of KCS’s Consolidated Net Assets. This provision does not restrict any other property of KCS or its Subsidiaries. Subject to the following paragraph, the Indenture does not prohibit the sale by KCS or any of its Subsidiaries of any stock or indebtedness of any Subsidiary, including any Significant Subsidiary. 
In addition, KCS shall not permit any Subsidiary of KCS that is not a Guarantor to incur any Debt, except (1) Debt with a final maturity of not more than 365 days, (2) intercompany Debt owed to KCS or any of its Subsidiaries, (3) Debt of any joint venture to which KCS or any of its Subsidiaries is a party, (4) any Existing KCSM Notes and any Secured Debt of any Subsidiary of KCS that is not a Guarantor, in each case, outstanding on the applicable Closing Date and (5) Debt not otherwise permitted by this paragraph in an aggregate principal amount, at any one time outstanding, not to exceed $150.0 million less the aggregate principal amount of any Existing KCSM Notes outstanding at the time of such incurrence (but not less than $0); provided that the limitations set forth in this paragraph shall not apply to Meridian Speedway, LLC. 
Change of Control Repurchase Event 
If a Change of Control Repurchase Event occurs, KCS will be required to make an offer to each holder with respect to a series of Notes to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that holder’s Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus accrued interest, if any, to, but excluding, the date of repurchase. Within 30 days following a Change of Control Repurchase Event or, at KCS’s option, prior to a Change of Control, but after the public announcement of the Change of Control, KCS will mail a notice to each holder of the Notes, with a copy to the applicable trustee, describing the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event and offering to repurchase the Notes on the payment date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed. The notice shall, if mailed prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on a Change of Control Repurchase Event occurring on or prior to the payment date specified in the notice. KCS will comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Repurchase Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control Repurchase Event provisions of the Notes, KCS will comply with the applicable securities laws and regulations and will not be deemed to have breached KCS’s obligations under the Change of Control Repurchase Event provisions of the Notes by virtue of such conflict. 

On the repurchase date following a Change of Control Repurchase Event, KCS will, to the extent lawful: 
(1) accept for payment all Notes or portions of Notes properly tendered pursuant to KCS’s offer; 
(2) deposit with the paying agent an amount equal to the aggregate purchase price in respect of all Notes or portions of Notes properly tendered; and 
(3) deliver or cause to be delivered to the trustee the Notes properly accepted, together with an officer’s certificate stating the aggregate principal amount of Notes being purchased by KCS. 
The paying agent will promptly mail to each holder of the Notes that are properly tendered the purchase price for the Notes, and the applicable trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each holder a new Note of the applicable series equal in principal amount to any unpurchased portion of any Notes surrendered; provided that each new Note will be in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. 
KCS will not be required to make an offer to repurchase Notes of a series upon a Change of Control Repurchase Event if (1) a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by KCS and such third party purchases all such Notes properly tendered and not withdrawn under its offer or (2) notice of redemption for all outstanding Notes of such series has been given pursuant to the Indenture as described above under the caption “-Optional Redemption.”
Merger, Consolidation or Sale of Assets 
Neither KCS nor any Guarantor will consolidate with, merge with or into, or sell, assign, convey, transfer, lease or otherwise dispose of all or substantially all of its property and assets (as an entirety or substantially as an entirety in one transaction or a series of related transactions) to, any Person or permit any Person to merge with or into KCS or such Guarantor unless: 
(1) KCS or such Guarantor shall be the continuing Person, or the Person (if other than KCS or such Guarantor) formed by such consolidation or into which KCS or such Guarantor is merged or that acquired or leased such property and its assets shall be a corporation organized and validly existing under the laws of the United States of America, any state thereof or the District of Columbia (or in the case of a Guarantor, a corporation, partnership, limited liability company or similar entity organized and validly existing under the laws of the jurisdiction under which such Guarantor was organized) and shall expressly assume, by a supplemental indenture, executed and delivered to the trustee, in form reasonably satisfactory to the trustee, all of the obligations of KCS or such Guarantor under the Notes, the Note Guarantee and the Indenture, as applicable; provided that this clause (1) shall not apply with respect to a Guarantor whose Note Guarantee is released as described in the second paragraph under the caption “-Note Guarantees”; 
(2) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing; and 
(3) KCS delivers to the trustee an officer’s certificate and an opinion of counsel, in each case stating that such consolidation, merger, sale, assignment, conveyance, transfer, lease or other deposition and such supplemental indenture complies with this covenant. 
Events of Default 
Each of the following is an “Event of Default” with respect to the Notes of a series: 
(1) default in the payment of principal of (or premium, if any, on) any Note of such series when the same becomes due at maturity, upon acceleration, redemption or otherwise; 
(2) default in the payment of interest on any Note of such series when due and such default continues for a period of 30 days; 
(3) default in the performance of any covenant of KCS or a Guarantor in the Indenture (other than a default specified in clause (1) or (2) above), and such default continues for a period of 90 days after 

written notice by the applicable trustee or the holders of 25% or more in aggregate principal amount of the Notes of such series; 
(4) a court having jurisdiction in the premises enters a decree or order for: 
(A) relief in respect of KCS or a Guarantor in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, 
(B) appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for KCS or a Guarantor or for all or substantially all of the property and assets of KCS or a Guarantor, or 
(C) the winding-up or liquidation of the affairs of KCS or a Guarantor; 
and, in each case, such decree or order shall remain unstayed and in effect for a period of 30 consecutive days with respect to the 3.85% Notes, the 3.00% Notes, the 4.30% Notes, the 4.95% Notes, the 3.125% Notes and the 4.70% Notes and for a period of 45 consecutive days with respect to the 2.875% Notes, the 4.20% Notes and the 3.50% Notes; 
(5) KCS or a Guarantor: 
(A) commences a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consents to the entry of an order for relief in an involuntary case under any such law, 
(B) consents to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for KCS or a Guarantor or for all or substantially all of the property and assets of KCS or a Guarantor, or 
(C) effects any general assignment for the benefit of creditors; 
(6) any Note Guarantee with respect to the Notes of such series ceases to be in full force and effect (except as contemplated by the terms of the Indenture) or any Guarantor or Person acting on behalf of such Guarantor denies or disaffirms such Guarantor’s obligations under the Indenture or any Note Guarantee with respect to such series of Notes and such default continues for a period of 10 days after written notice by the applicable trustee or the holders of 25% or more in aggregate principal amount of the Notes of such series; and 
(7) (A) the Concession Title shall cease to grant to KCSM the rights provided therein as of the applicable Closing Date and such cessation has had a material adverse effect on KCS and its Subsidiaries taken as a whole, 
(B) (x) the Concession Title shall for any reason be terminated (other than as a result of the expiration or termination of the Concession Title in June 2047 or, if extended, on any other expiration date pursuant to its terms) and not reinstated within 30 days or (y) rights provided therein which were originally exclusive to KCSM shall become nonexclusive and the cessation of such exclusivity has had a material adverse effect on KCS and its Subsidiaries taken as a whole, or 
(C) the operations of the Northeast Rail Lines shall be commandeered or repossessed (a requisa) for a period of 90 days or more. 
If an Event of Default described above shall have occurred and is continuing, either the applicable trustee or the holders of at least 25% in aggregate principal amount of such series of Notes then outstanding may declare all outstanding Notes of such series to be due and payable immediately. The holders of a majority in aggregate principal amount of the Notes of such series then outstanding may, by notice to the trustee, on behalf of the holders of all of Notes of such series, rescind an acceleration or waive any existing Default or Event of Default and its consequences under the Indenture, except a continuing Default or Event of Default in the payment of interest or premium, if any, on, or the principal of, the Notes. For information as to the waiver of Defaults, see “-Amendment, Supplement and Waiver.” 
The holders of a majority in aggregate principal amount of such series of Notes then outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the 

applicable trustee or exercising any trust or power conferred on the trustee with respect to such series of Notes. However, the trustee may refuse to follow any direction that conflicts with law or the Indenture, that may involve the trustee in personal liability, or that the trustee determines in good faith may be unduly prejudicial to the rights of holders of such series of Notes not joining in the giving of such direction and may take any other action it deems proper that is not inconsistent with any such direction received from holders of such series of Notes. A holder may not pursue any remedy with respect to the Indenture or the Notes of a series unless: 
• the holder gives the trustee written notice of a continuing Event of Default; 
• the holders of at least 25% in aggregate principal amount of such series of Notes then outstanding make a written request to the trustee to pursue the remedy; 
• such holder or holders offer the trustee indemnity satisfactory to the trustee against any costs, liability or expense; 
• the trustee does not comply with the request within 60 days after receipt of the request and the offer of indemnity; and 
• during such 60-day period, the holders of a majority in aggregate principal amount of such series of Notes then outstanding do not give the trustee a direction that is inconsistent with the request. 
However, such limitations do not apply to the right of any holder of Notes of a series to receive payment of the principal of, premium, if any, or interest on, such series of Notes or to bring suit for the enforcement of any such payment, on or after the due date expressed in such series of Notes, which right shall not be impaired or affected without the consent of the holder. 
The Indenture requires certain of the KCS’s officers to certify, on or before a date not more than 90 days after the end of each fiscal year, that a review has been conducted of KCS’s activities and those of the Guarantors and of KCS’s and the Guarantors’ performance under the Indenture and that, to the best of such person’s knowledge, KCS and the Guarantors have fulfilled all obligations thereunder, or, if there has been a Default in the fulfillment of any such obligation, specifying each such Default and the nature and status thereof. KCS will also be obligated to notify the applicable trustee of any Default or Defaults in the performance of any covenants or agreements under the Indenture. 
Legal Defeasance and Covenant Defeasance 
KCS may at any time, at the option of its Board of Directors evidenced by a resolution set forth in an officer’s certificate, elect to have all of its obligations with respect to the outstanding Notes of each series and all obligations of the Guarantors with respect to the Note Guarantees thereof discharged (“Legal Defeasance”) except for: 
(1) the rights of holders of such series of Notes then outstanding to receive payments in respect of the principal of, or interest, or premium, if any, on, such Notes when such payments are due from the trust referred to below; 
(2) KCS’s obligations with respect to such series of Notes concerning issuing temporary Notes, registration of Notes, mutilated, destroyed, lost or stolen Notes and the maintenance of an office or agency for payment and money for security payments held in trust; 
(3) the rights, powers, trusts, duties and immunities of the trustee, and the obligations of KCS and the Guarantors in connection therewith; and 
(4) the Legal Defeasance and Covenant Defeasance provisions of the Indenture. 
In addition, KCS may, at its option and at any time, elect to have the obligations of KCS and the Guarantors released with respect to certain covenants that are described in the Indenture (“Covenant Defeasance”) and thereafter any omission to comply with those covenants will not constitute a Default or Event of Default. In the event Covenant Defeasance occurs, certain events (not including non-payment, bankruptcy, receivership, rehabilitation and insolvency events) described under “-Events of Default” will no longer constitute an Event of Default. 

In order to exercise either Legal Defeasance or Covenant Defeasance with respect to the Notes of a series: 
(1) KCS must irrevocably deposit with the applicable trustee, in trust, for the benefit of the holders of the applicable series of Notes, cash in U.S. dollars, non-callable Government Securities, or a combination of cash in U.S. dollars and non-callable Government Securities, in amounts as will be sufficient, in the opinion of a nationally recognized investment bank, appraisal firm or firm of independent public accountants, to pay the principal of, premium, if any, and interest on, such series of Notes then outstanding on the Stated Maturity thereof or on the applicable redemption date, as the case may be, and KCS must specify whether such series of Notes are being defeased to such Stated Maturity or to a particular redemption date; 
(2) in the case of Legal Defeasance, KCS must deliver to the trustee an opinion of counsel (or opinions of counsel) confirming that (x) KCS has received from, or there has been published by, the Internal Revenue Service a ruling or (y) since the date of the issuance of such series of Notes, there has been a change in the applicable U.S. federal income tax law, in either case to the effect that, and based thereon such opinion of counsel will confirm that, the holders of such series of Notes then outstanding will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred; 
(3) in the case of Covenant Defeasance, KCS must deliver to the trustee an opinion of counsel (or opinions of counsel) confirming that the holders of such series of Notes then outstanding will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such Covenant Defeasance and will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 
(4) no Default or Event of Default has occurred and is continuing on the date of such deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit or liens securing such borrowing) and the deposit will not result in a breach or violation of, or constitute a default under, any other instrument to which KCS is a party or by which KCS is bound; 
(5) such Legal Defeasance or Covenant Defeasance will not result in a breach or violation of, or constitute a default under, any material agreement or instrument (other than the Indenture) to which KCS or any of its Subsidiaries is a party or by which KCS or any of its Subsidiaries is bound; 
(6) KCS must deliver to the trustee an officer’s certificate stating that the deposit was not made by KCS with the intent of preferring the holders of such series of Notes over the other creditors of KCS with the intent of defeating, hindering, delaying or defrauding any creditors of KCS or others; and 
(7) KCS must deliver to the trustee an officer’s certificate and an opinion of counsel, each stating that all conditions precedent relating to the Legal Defeasance or the Covenant Defeasance have been complied with. 
Satisfaction and Discharge 
The Indenture with respect to the Notes of a series will be discharged and will cease to be of further effect as to all Notes of a series issued thereunder when: 
(1) either: 
(A) all Notes of such series that have been authenticated thereunder, except lost, stolen or destroyed Notes that have been replaced or paid and Notes for whose payment money has been deposited in trust and thereafter repaid to KCS, have been delivered to the trustee for cancellation; or 
(B) all Notes of such series issued thereunder that have not been delivered to the trustee for cancellation have become due and payable by reason of the mailing of a notice of redemption or otherwise or will become due and payable within one year and KCS has irrevocably deposited or caused to be deposited with the trustee as trust funds in trust solely for the benefit of the holders of such series of Notes, cash in U.S. dollars, non-callable Government 

Securities, or a combination of cash in U.S. dollars and non-callable Government Securities, in amounts as will be sufficient, without consideration of any reinvestment of interest, to pay and discharge the entire indebtedness on such series of Notes not delivered to the trustee for cancellation for principal, premium, if any, and accrued interest to the Stated Maturity or redemption, as the case may be; 
(2) no Default or Event of Default has occurred and is continuing on the date of the deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit or liens securing such borrowing) and the deposit will not result in a breach or violation of, or constitute a default under, any other instrument to which KCS is a party or by which KCS is bound; 
(3) KCS has paid or caused to be paid all sums payable by it under the Indenture with respect to the Notes of such series; and 
(4) KCS has delivered irrevocable instructions to the trustee under the Indenture to apply the deposited money toward the payment of the Notes of such series issued thereunder at Stated Maturity or on the redemption date, as the case may be. 
In addition, KCS must deliver an officer’s certificate and an opinion of counsel to the trustee stating that all conditions precedent to satisfaction and discharge with respect to the Notes of such series have been satisfied. 
Amendment, Supplement and Waiver 
Except as provided in the next two succeeding paragraphs, the Indenture with respect to the Notes of a series, the Notes of such series and the Note Guarantees thereof may be amended or supplemented with the consent of the holders of a majority in aggregate principal amount of such series of Notes then outstanding (including consents obtained in connection with a purchase of, or tender offer or exchange offer for, such series of Notes), and any existing Default or Event of Default or compliance with any provision of the Indenture with respect to the Notes of such series, the Notes of such series or Note Guarantee thereof may be waived with the consent of the holders of a majority in aggregate principal amount of then outstanding Notes of such series (including consents obtained in connection with a purchase of, or tender offer or exchange offer for, such series of Notes). 
Without the consent of each holder of Notes of a series affected, an amendment, supplement or waiver may not: 
• change the Stated Maturity of the principal of, or any installment of interest on, any such series of Note; 
• reduce the principal amount of, or premium, if any, or interest on, any such series of Note; 
• change the place or currency of payment of principal of, or premium, if any, or interest on, any such series of Note; 
• impair the right to institute suit for the enforcement of any payment on or with respect to any such series of Note; 
• reduce the percentage or principal amount of such series of Notes outstanding, the consent of whose holders is necessary to modify or amend the Indenture or waive compliance with certain provisions of the Indenture or waive certain Defaults; 
• waive a Default in the payment of principal of, premium, if any, or interest on, the Notes of such series; or 
• release any Guarantor from any of its obligations under its applicable Note Guarantee or the Indenture, except as set forth under the caption “-Note Guarantees.” 
Notwithstanding the preceding, without the consent of any holder of a series of Notes, KCS, the Guarantors and the applicable trustee may amend or supplement the Indenture, the applicable series of Notes and the Note Guarantees with respect to the Notes of such series: 
• to cure any ambiguity, omission, mistake, defect or inconsistency; 

• to provide for uncertificated Notes in addition to or in place of certificated Notes of such series; 
• to provide for the assumption of the obligations of KCS or a Guarantor to holders of the Notes of such series and the Note Guarantees with respect to the Notes of such series in the case of a merger or consolidation or a sale, assignment, transfer, conveyance, lease or other disposition of all or substantially all of the assets of KCS or such Guarantor, as applicable, in accordance with the terms of the Indenture; 
• to make any change that would provide any additional rights or benefits to the holders of such series of Notes or that does not adversely affect the legal rights under the Indenture of any such holder; 
• to comply with requirements of the SEC in order to effect or maintain the qualification of the Indenture under the Trust Indenture Act of 1939, as amended; 
• to conform the text of the Indenture, the Note Guarantees with respect to the Notes of such series and the Notes of such series to any provision of the relevant “Description of Notes” in the applicable prospectus or the applicable confidential offering memorandum and consent solicitation statement to the extent that such provision in such “Description of Notes” was intended to be a verbatim recitation of a provision of the applicable Indenture or the Notes of such series; 
• to add a Guarantor or release any Guarantor from its Note Guarantee with respect to the Notes of such series if such release is in accordance with the terms of the applicable Indenture; or 
• to provide for the issuance of Additional Notes of such series in accordance with the limitations set forth in the Indenture. 
Governing Law
The Notes, the Note Guarantees and the Indenture are governed by the laws of the State of New York. 
Information Concerning the Trustee
KCS and its Subsidiaries maintain ordinary banking relationships with U.S. Bank National Association and its affiliates. In addition, U.S. Bank acts as trustee, transfer agent, principal, payment agent and registrar with respect to other debt securities issued by KCS and its Subsidiaries, and may do so again for future issuances of debt securities by KCS and its Subsidiaries.
Certain Definitions 
Set forth below is a summary of certain of the defined terms used in the covenants and other provisions of the Indenture. Reference is made to the Indenture for the full definitions of all terms as well as any other capitalized term used herein for which no definition is provided. 
“Below Investment Grade Ratings Event” means, with respect to a series of Notes, on any day within the 60-day period (which period shall be extended so long as the rating of such series of Notes is under publicly announced consideration for a possible downgrade by any of the Rating Agencies) after the earlier of (1) the occurrence of a Change of Control or (2) public notice by KCS of the occurrence of a Change of Control or KCS’s intention to effect a Change of Control, that such series of Notes is rated below Investment Grade by two of the three Rating Agencies. Notwithstanding the foregoing, a Below Investment Grade Ratings Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Below Investment Grade Ratings Event for purposes of the definition of Change of Control Repurchase Event) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the trustee in writing at KCS’s request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the ratings event). 
“Business Day” means any calendar day that is not a Saturday, Sunday or legal holiday in New York, New York and on which banking institutions and trust companies are open for business in New York, New York. 

“Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) in the equity of such Person, whether now outstanding or issued after the applicable Closing Date. 
“Change of Control” means the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act), other than KCS and its Subsidiaries, becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the combined voting power of the total Voting Stock of KCS or other Voting Stock into which KCS’s Voting Stock is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares. 
“Change of Control Repurchase Event” means the occurrence of both a Change of Control and a Below Investment Grade Ratings Event. 
“Closing Date” means the date on which the applicable Notes were originally issued under the Indenture. 
“Comparable Treasury Issue” means, with respect to each series of Notes, the U.S. Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term (as measured from the date of redemption assuming, in the case of the 2.875% Notes, the 4.20% Notes and the 3.50% Notes, such Notes matured on the applicable Par Call Date) (“Remaining Life”) of the Notes of the applicable series to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life. 
“Comparable Treasury Price” means, with respect to any redemption date, the average of the Reference Treasury Dealer Quotations for such redemption date. 
“Concession Title” means KCSM’s right for a period of 30 years to be the exclusive provider (subject to certain trackage rights) of freight transportation services over the Northeast Rail Lines and for an additional 20 years to be a non-exclusive provider of such services granted by the Mexican government pursuant to the Concession Title, subject in all cases to the terms and conditions of the Concession Title, as in effect on June 23, 1997 and as amended on February 12, 2001, November 22, 2006, December 31, 2013, December 20, 2017 and April 27, 2018. 
“Consolidated Net Assets” means total assets after deducting therefrom all current liabilities as set forth on the most recent publicly filed balance sheet of KCS and its consolidated subsidiaries and computed in accordance with generally accepted accounting principles. 
“Credit Agreement” means (1) with respect to the 3.85% Notes, the 3.00% Notes, the 4.30% Notes, the 4.95% Notes, the 3.125% Notes and the 4.70% Notes, the credit agreement, dated as of December 9, 2015, among KCS, the guarantors described therein, the lenders thereunder and the other parties thereto, as amended or supplemented from time to time, and (2) with respect to the 2.875% Notes, the 4.20% Notes and the 3.50% Notes, the credit agreement, dated as of March 8, 2019, among KCS, the guarantors described therein, the lenders thereunder and the other parties thereto, as amended or supplemented from time to time. 
“Debt” means indebtedness for money borrowed or indebtedness evidenced by a bond, note, debenture or other evidence of indebtedness. 
“Default” means any event that is, or after notice or passage of time or both would be, an Event of Default.
“Domestic Subsidiary” means a Subsidiary of KCS that was formed under the laws of the United States or any state of the United States or the District of Columbia. 
“Existing KCSM Notes” means any 3.00% Senior Notes due 2023 issued by KCSM. 
“Fitch” means Fitch Ratings Inc. and any successor thereto. 

“Government Securities” means direct obligations of, obligations fully and unconditionally guaranteed by, or participation in pools consisting solely of (or repurchase transactions relating to) obligations of or obligations fully and unconditionally guaranteed by the United States of America for the payment of which guarantee or obligations the full faith and credit of the United States of America is pledged and which are not callable or redeemable at the option of KCS. 
“Guarantee” means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Debt of any other Person. The term “Guarantee” used as a verb has a corresponding meaning. 
“Guarantor” means each subsidiary of KCS that executes a Note Guarantee, and its successors and assigns, in each case, until the Note Guarantee of such Person has been released in accordance with the provisions of the Indenture. 
“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by KCS. 
“Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating categories of Moody’s), a rating of BBB- or better by S&P (or its equivalent under any successor rating categories of S&P), a rating of BBB- or better by Fitch (or its equivalent under any successor rating categories of Fitch) and the equivalent investment grade credit rating from any additional Rating Agency or Rating Agencies selected by KCS. 
“KCSM” means Kansas City Southern de México, S.A. de C.V., a sociedad anónima de capital variable organized under the laws of the United Mexican States. 
“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto. 
“Northeast Rail Lines” means that portion of the Mexican railroad system that is the subject of the Concession Title. 
“Note Guarantee” means each Guarantee of the obligations with respect to a series of Notes issued by a Person pursuant to the terms of the applicable Indenture. 
“Par Call Date” means (1) with respect to the 3.85% Notes, August 15, 2023 (three months prior to the maturity date of the 3.85% Notes), (2) with respect to the 3.00% Notes, February 15, 2023 (three months prior to the maturity date of the 3.00% Notes), (3) with respect to the 4.30% Notes, November 15, 2042 (six months prior to the maturity date of the 4.30% Notes), (4) with respect to the 4.95% Notes, February 15, 2045 (six months prior to the maturity date of the 4.95% Notes), (5) with respect to the 3.125% Notes, March 1, 2026 (three months prior to the maturity date of the 3.125% Notes), (6) with respect to the 4.70% Notes, November 1, 2047 (six months prior to the maturity date of the 4.70% Notes), (7) with respect to the 2.875% Notes, August 15, 2029 (three months prior to the maturity date of the 2.875% Notes), (8) with respect to the 4.20% Notes, May 15, 2069 (six months prior to the maturity date of the 4.20% Notes)and (9) with respect to the 3.50% Notes, November 1, 2049 (six months prior to the maturity date of the 3.50% Notes). 
“Person” means any individual, corporation, partnership, limited liability company, joint venture, association, joint stock company, trust, unincorporated organization, government or agency or political subdivision thereof or any other entity. 
“Rating Agency” means (1) each of Moody’s, S&P and Fitch and (2) if any of Moody’s, S&P or Fitch ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of KCS’s control, a “nationally recognized statistical rating organization” as defined in Section 3(a)(62) of the Exchange Act, selected by KCS (as certified by a resolution of KCS’s Board of Directors) as a replacement agency for Moody’s, S&P or Fitch, or all of them, as the case may be, with respect to the Notes. 
“Reference Treasury Dealer” means (1) with respect to the 3.85% Notes, the 3.00% Notes, the 4.30% Notes and the 4.95% Notes, each of BofA Securities, Inc., Citigroup Global Markets Inc., J.P. 
Morgan Securities LLC and Morgan Stanley & Co. LLC (or their respective affiliates that are primary Government Securities dealers) and their respective successors and (2) with respect to the 3.125% Notes, 

the 4.70% Notes, the 2.875% Notes, the 4.20% Notes and the 3.50% Notes, each of BofA Securities, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC (or their respective affiliates that are primary Government Securities dealers) and their respective successors; provided, however, that if any Reference Treasury Dealer is not at the applicable time a primary Government Securities dealer (a “Primary Treasury Dealer”), KCS shall substitute therefor another Primary Treasury Dealer selected by it. 
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue for the applicable Notes (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date. 
“S&P” means S&P Global Ratings, a division of S&P Global Inc., and any successor thereto. 
“Secured Debt” means Debt secured by a lien, mortgage, pledge, charge, security interest or encumbrance of any kind on any property or assets. 
“Significant Subsidiary” means, at any date of determination, any of KCS’s Subsidiaries that, together with its Subsidiaries, (i) for KCS’s most recent fiscal year, accounted for more than 10.0% of the consolidated revenues of KCS and its Subsidiaries or (ii) as of the end of such fiscal year, was the owner of more than 10.0% of the consolidated assets of KCS and its Subsidiaries, in each case as set forth on KCS’s most recently available consolidated financial statements for such fiscal year. 
“Stated Maturity” means, with respect to any installment of interest or principal on any series of indebtedness, the date on which the payment of interest or principal is scheduled to be paid in the documentation governing such indebtedness, and will not include any contingent obligations to repay, redeem or repurchase any such interest or principal prior to the date originally scheduled for the payment thereof. 
“Subsidiary” means, with respect to any Person, any corporation, association or other business entity of which more than 50.0% of the voting power of the outstanding Voting Stock is owned, directly or indirectly, by such Person and one or more other Subsidiaries of such Person. 
“Treasury Rate” means, on any redemption date, (i) the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the applicable Comparable Treasury Issue (if no maturity is within three months before or after the Remaining Life, yields for the two published maturities most closely corresponding to such Comparable Treasury Issue shall be determined and the Treasury Rate shall be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month) or (ii) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the related Comparable Treasury Issue, calculated using a price for that Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. The Treasury Rate shall be calculated on the third Business Day preceding the redemption date. 
“Voting Stock” means, with respect to any Person, all classes of Capital Stock of such Person then outstanding and entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof.

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