Document:

Exhibit

Exhibit 10.9 

PINNACLE FOODS INC.
2013 OMNIBUS INCENTIVE PLAN

PERFORMANCE SHARE UNIT AGREEMENT
(Form 0001)

This Performance Share Unit Agreement (the “Agreement”), effective as of the Date of Grant (as defined below), is between Pinnacle Foods Inc., a Delaware corporation (the “Company”), and the participant identified on the Signature Page hereto (the “Participant”). Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan.

RECITALS:

WHEREAS, the Company has adopted the Plan (as defined below), the terms of which are hereby incorporated by reference and made a part of this Agreement; and

WHEREAS, the Company’s Compensation Committee (the “Committee”) has determined that it would be in the best interests of the Company and its stockholders to grant the PSUs (as defined below) provided for herein to the Participant pursuant to the Plan and the terms set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows:

1.    Definitions. The following terms shall have the following meanings for purposes of this Agreement:
(a) Date of Grant: the Date of Grant set forth on the Signature Page hereto.
(b) Employment: the term “Employment” shall mean (i) the Participant’s employment if the Participant is an employee of the Company or any of its Affiliates or Subsidiaries, (ii) the Participant’s services as a consultant, if the Participant is a consultant to the Company or any of its Affiliates or Subsidiaries and (iii) the Participant’s services as a non-employee director, if the Participant is a non-employee member of the Board.
(c) Performance Conditions: the performance conditions set forth in Schedule I.
(d) Performance Period: the “Performance Period” set forth on the Signature Page hereto.
(e) Performance Share Units or PSUs: the target number of performance share units set forth on the Signature Page hereto.

2

(f) Plan: the Pinnacle Foods Inc. Amended and Restated 2013 Omnibus Incentive Plan, as amended from time to time.
(g) Restrictive Covenant Violation: the Participant’s breach of the Restrictive Covenants set forth in Section 7 or any covenant regarding noncompetition, nonsolicitation, noninterference, non-disparagement, confidentiality, or any similar provision, applicable to or agreed to by the Participant.
(h) Retirement: the Participant’s termination of Employment with the Company, other than for Cause, following the date on which (i) the Participant’s age is 55 or greater, and (ii) the number of years of the Participant’s Employment and other business relationships with the Company and any predecessor company is 10 or greater.  
(i) Share: a share of Common Stock of the Company.
(j)    Termination Date: the date upon which the Participant’s Employment with the Company and its Affiliates and Subsidiaries is terminated.
2.    Grant of Performance Share Units. The Company hereby grants, as of the Date of Grant, the PSUs to the Participant, each of which represents the right to receive one Share upon vesting of such PSUs, subject to and in accordance with the terms, conditions and restrictions set forth in the Plan and this Agreement. 

3.    Performance Share Unit Account. The Company shall cause an account (the “Performance Share Unit Account”) to be established and maintained on the books of the Company to record the number of PSUs credited to the Participant under the terms of this Agreement. The Participant’s interest in the Performance Share Unit Account shall be that of a general, unsecured creditor of the Company.
4.    Vesting; Settlement. 
(a)The PSUs shall become vested in accordance with the schedule set forth in Schedule I attached hereto. As promptly as practicable (and, in any event, within 2.5 months) following the last day of the Performance Period, the Committee shall determine whether the Performance Conditions have been satisfied (the date of such determination, the “Determination Date”), and any PSUs with respect to which the Performance Conditions have been satisfied shall become vested effective as of the last day of the Performance Period. Following the Determination Date, the Company shall deliver to the Participant, without charge, one share of Common Stock for each vested PSU (as adjusted under the Plan) in accordance with Section 11, and such vested PSU shall be cancelled upon such delivery. Any PSU which does not become vested effective as of the last day of the Performance Period shall be forfeited without consideration or any further action by the Participant or the Company. 
(b)    In the event of an equity restructuring, the Committee shall adjust any Performance Condition to the extent it is affected by such restructuring in order to preserve 

3

(without enlarging) the likelihood that such Performance Condition shall be satisfied. The manner of such adjustment shall be determined by the Committee in its sole discretion. For this purpose, “equity restructuring” shall mean an “equity restructuring” as defined in Financial Accounting Standards Board Accounting Standards Codification 718-10 (formerly Statement of Financial Accounting Standards 123R).
5.    Dividend Equivalents. A Participant holding unvested PSUs shall be entitled to be credited with a dividend equivalent payment on each PSU upon the payment by the Company of any cash dividend on Shares equal to the amount of such dividend per Share, which dividend equivalent payment shall be payable in cash (or if elected by the Committee in its sole discretion, in Shares having a Fair Market Value as of the settlement date equal to the amount of such dividends), at the same time as the underlying PSUs are settled following the vesting of PSUs. If any PSU is forfeited, the Participant shall have no right to such dividend equivalent payments in respect of such PSU. For the avoidance of doubt, no dividend equivalent payment shall accrue or be credited in respect of a PSU which does not vest based on the achievement of the Performance Conditions applicable to the PSU.
6.    Termination of Employment.    
Except as expressly set forth in Schedule I hereto, in the event that the Participant’s Employment with the Company and its Subsidiaries is terminated for any reason, any unvested PSUs shall be forfeited and all of the Participant’s rights hereunder with respect to such unvested PSUs shall cease as of the Termination Date (unless otherwise provided for by the Committee in accordance with the Plan). 
7.    Restrictive Covenants. To the extent that the Participant and the Company (or an Affiliate of the Company) is a party to an employment agreement with the Company containing noncompetition, nonsolicitation, noninterference, non-disparagement, or confidentiality restrictions (or two or more such restrictions), those restrictions and related enforcement provisions under such employment agreement shall govern and the following provisions of this Section 7 shall not apply.

(a)    Competitive Activity. (i)    The Participant shall be deemed to have engaged in “Competitive Activity” if, during the period commencing on the date hereof and ending on the later of (x) the date that is 12 months after the date the Participant’s Employment with the Company and its Subsidiaries is terminated or (y) the maximum number of years of base salary the Participant is entitled to receive as severance under any agreement with, or plan or policy of the Company or an Affiliate (the “Restricted Period”), the Participant, whether on the Participant’s own behalf or on behalf of or in conjunction with any other person or entity, directly or indirectly violates any of the following prohibitions: 
(A)    During the Restricted Period, the Participant will not solicit or assist in soliciting in a Competitive Business (as defined below) the business of any client or prospective client:

4

(1)    with whom the Participant had personal contact or dealings on behalf of the Company during the one-year period preceding the Participant’s termination of Employment;
(2)    with whom employees directly reporting to the Participant (or the Participant’s direct reports) have had personal contact or dealings on behalf of the Company during the one year immediately preceding the Participant’s termination of Employment; or
(3)    for whom the Participant had direct or indirect responsibility during the one year immediately preceding the Participant’s termination of Employment. 
(B)    During the Restricted Period, the Participant will not directly or indirectly:
(1)    engage in any business that is engaged in, or has plans to engage in, at any time during the Restricted Period, any activity that competes in the business of manufacturing and marketing food products that directly compete with the core brands of the Company as of the Termination Date  (and for such purpose, a “core brand” shall be any brand generating annual revenues in an amount equal to at least 5% of the Company’s annual revenues, in the fiscal year preceding the fiscal year of such Termination Date) in any geographical area that is within 100 miles from any geographical area where the Company or its Affiliates manufactures and markets its products or services (a “Competitive Business”);
(2)    enter the employ of, or render any services to, any Person (or any division or controlled or controlling affiliate of any Person) who or which engages in a Competitive Business;
(3)    acquire a financial interest in, or otherwise become actively involved with, any Competitive Business, directly or indirectly, as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant; or
(4)    interfere with, or attempt to interfere with, business relationships (whether formed before, on or after the date of this Agreement) between the Company or any of its Affiliates and customers, clients, suppliers, partners, members or investors of the Company or its Affiliates.
(C)    Notwithstanding anything to the contrary in this Agreement, the Participant may, directly or indirectly own, solely as an investment, securities of any Person engaged in a Competitive Business which are publicly traded on a national or regional stock exchange or on the over-the-counter market if the Participant (i) is not a controlling person of, or a member of a group which controls, such person and (ii) 

5

does not, directly or indirectly, own 5% or more of any class of securities of such Person.
(D)    During the Restricted Period, the Participant will not, whether on the Participant’s own behalf or on behalf of or in conjunction with any Person, directly or indirectly:
(1)    solicit or encourage any employee of the Company or its Affiliates to leave the employment of the Company or its Affiliates; or
(2)    hire any such employee who was employed by the Company or its Affiliates as of the date of the Participant’s termination of Employment with the Company or who left the employment of the Company or its Affiliates coincident with, or within 120 days (one year in the case of any such employee who reported directly to the Participant immediately preceding the Participant’s termination of Employment (or the Participant’s direct reports)) prior to or after, the termination of the Participant’s Employment with the Company.
(3)    During the Restricted Period, the Participant will not, directly or indirectly, solicit or encourage to cease to work with the Company or its Affiliates any consultant then under contract with the Company or its Affiliates, is such action would result in the Company being disadvantaged. Any solicitation or hiring, that the Participant is not personally involved in, of an employee or former employee of the Company through general advertising shall not, of itself, be a breach of this Section 7(a)(i)(D)
(ii)    It is expressly understood and agreed that although the Participant and the Company consider the restrictions contained in this Section 7 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction against the Participant, the provisions of this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable.  Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein
(iii)    The period of time during which the provisions of this Section 7 shall be in effect shall be extended by the length of time during which the Participant is in breach of the terms hereof as determined by any court of competent jurisdiction on the Company’s application for injunctive relief.
(b)    Confidentiality.(i)    The Participant will not at any time (whether during or after the Participant’s Employment with the Company) (x) retain or use for the benefit, purposes or account of the Participant or any other person; or (y) disclose, divulge, 

6

reveal, communicate, share, transfer or provide access to any person outside the Company (other than its professional advisers who are bound by confidentiality obligations), any non-public, proprietary or confidential information –including without limitation trade secrets, know-how, research and development, software, databases, inventions, processes, formulae, technology, designs and other intellectual property, information concerning finances, investments, profits, pricing, costs, products, services, vendors, customers, clients, partners, investors, personnel, compensation, recruiting, training, advertising, sales, marketing, promotions, government and regulatory activities and approvals – concerning the past, current or future business, activities and operations of the Company, its Subsidiaries or Affiliates and/or any third party that has disclosed or provided any of same to the Company on a confidential basis (“Confidential Information”) without the prior written authorization of the Board or the Chief Executive Officer of the Company.
(ii)    “Confidential Information” shall not include any information that is (i) generally known to the industry or the public other than as a result of the Participant’s breach of this covenant or any breach of other confidentiality obligations by third parties; (ii) made legitimately available to the Participant (A) by a third party without breach of any confidentiality obligation, or (B) prior to the Participant’s Employment as a result of the Participant’s prior experience related to the business of manufacturing and marketing food products; or (iii) required by law to be disclosed (including via subpoena); provided that the Participant shall give prompt written notice to the Company of such requirement of law, disclose no more information than is so required, and cooperate, at the Company’s cost, with any attempts by the Company to obtain a protective order or similar treatment.
(iii)    Except as required by law, the Participant will not disclose to anyone, other than the Participant’s immediate family and legal or financial advisors, the existence or contents of this Agreement (unless this Agreement shall be publicly available as a result of a regulatory filing made by the Company or its Affiliates) or otherwise is disclosed by the Company to any unaffiliated party that is not under a restriction of confidentiality at least as restrictive as this restriction upon the Participant; provided, that the Participant may disclose to any prospective future employer any of the termination notice provisions under any agreement between the Participant and the Company (or an Affiliate of the Company) and the provisions of this Section 7(b) provided they agree to maintain the confidentiality of such terms.
(iv)    Upon termination of the Participant’s Employment with the Company for any reason, the Participant shall (x) cease and not thereafter commence use of any Confidential Information or intellectual property (including without limitation, any patent, invention, copyright, trade secret, trademark, trade name, logo, domain name or other source indicator) owned or used by the Company, its Subsidiaries or Affiliates; (y) immediately destroy, delete, or return to the Company, at the Company’s option, all originals and copies in any form or medium (including memoranda, books, papers, plans, computer files, letters and other data) in the Participant’s possession or control (including 

7

any of the foregoing stored or located in the Participant’s office, home, laptop or other computer, whether or not Company property) that contain Confidential Information or otherwise relate to the business of the Company, its Affiliates and Subsidiaries, except that the Participant may retain only those portions of any personal notes, notebooks and diaries that do not contain any Confidential Information and his or her rolodex (or other physical or electronic address book); and (z) fully cooperate with the Company regarding the delivery or destruction of any other Confidential Information not within the Participant’s possession or control of which the Participant is or becomes aware.   
(c)    Repayment of Proceeds.  If the Participant engages in Competitive Activity or breaches the confidentiality provisions of Section 7, or if the Company discovers after a termination of employment that grounds for Cause existed at the time thereof, then the Participant shall be required (in addition to any other remedy available (on a non-exclusive basis)) to pay to the Company, within ten business days following the first date on which the Participant engages in such Competitive Activity or first breaches such provisions (or in the case of a discovery of grounds for Cause, upon the Company’s request therefor), an amount equal to the aggregate after-tax proceeds (taking into account all amounts of tax that would be recoverable upon a claim of loss for payment of such proceeds in the year of repayment) the Participant received upon the sale or other disposition of, or distributions or dividends in respect of, the PSUs or any Shares received in settlement of the PSUs.
8.    No Right to Continued Employment. Neither the Plan nor this Agreement nor the granting of the PSUs evidenced hereby shall be construed as giving the Participant the right to be retained in the employ of, or in any consulting relationship to, the Company or any Affiliate. Further, the Company or any Affiliate may at any time dismiss the Participant or discontinue any consulting relationship, free from any liability or any claim under the Plan or this Agreement, except as otherwise expressly provided herein.
9.    Transferability. The Participant may not assign, alienate, pledge, attach, sell or otherwise transfer or encumber the PSUs or the Participant’s right under the PSUs to receive Shares, except other than by will or by the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or an Affiliate; provided that the designation of a beneficiary (if permitted by the Committee) shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.
10.    No Rights as a Stockholder. The Participant’s interest in the PSUs shall not entitle the Participant to any rights as a stockholder of the Company. The Participant shall not be deemed to be the holder of, or have any of the rights and privileges of a stockholder of the Company in respect of, the Shares unless and until such Shares have been issued to the Participant in accordance with Section 11.
11.    Issuance of Shares; Tax Withholding. Upon the vesting of a PSU, the Company shall, as soon as reasonably practicable (and, in any event, within 2.5 months) following the applicable vesting date, issue the Share underlying such vested PSU to the Participant, free and clear of all restrictions, less a number of Shares equal in value (using the 

8

closing price per Share on the New York Stock Exchange (or other principal exchange on which the Shares then trade) on the trading day immediately prior to the date of delivery of the Shares) to the minimum amount necessary to satisfy Federal, state, local or foreign withholding tax requirements, if any (“Withholding Taxes”) in accordance with Section 14(d) of the Plan (unless the Participant shall have made other arrangements acceptable to the Company to pay such Withholding Taxes, in which case the full number of Shares shall be issued). Any fractional Share which would otherwise be delivered shall be cancelled and only a whole number of Shares shall be delivered. The Company shall pay any costs incurred in connection with issuing the Shares. Upon the issuance of the Shares to the Participant, the Participant’s Performance Unit Account shall be eliminated. Notwithstanding anything in this Agreement to the contrary, the Company shall have no obligation to issue or transfer the Shares as contemplated by this Agreement unless and until such issuance or transfer shall comply with all relevant provisions of law and the requirements of any stock exchange on which the Company’s shares are listed for trading.
12.    Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be affected by such holding and shall continue in full force in accordance with their terms.
13.    Successors in Interest. Any successor to the Company shall have the benefits of the Company under, and be entitled to enforce, this Agreement. Likewise, the Participant’s legal representative shall have the benefits of Participant under, and be entitled to enforce, this Agreement. All obligations imposed upon the Participant and all rights granted to the Company under this Agreement shall be final, binding and conclusive upon the Participant’s heirs, executors, administrators and successors.
14.    Limitation on Rights; No Right to Future Grants; Extraordinary Item of Compensation. By accepting this Agreement and the grant of the PSUs contemplated hereunder, the Participant expressly acknowledges that (a) the Plan is discretionary in nature and may be suspended or terminated by the Company at any time; (b) the grant of PSUs is a one-time benefit that does not create any contractual or other right to receive future grants of PSUs, or benefits in lieu of PSUs; (c) all determinations with respect to future grants of PSUs, if any, including the grant date, the number of Shares granted and the applicable vesting terms, will be at the sole discretion of the Company; (d) the Participant’s participation in the Plan is voluntary; (e) the value of the PSUs is an extraordinary item of compensation that is outside the scope of the Participant’s employment contract, if any, and nothing can or must automatically be inferred from such employment contract or its consequences; (f) grants of PSUs are not part of normal or expected compensation for any purpose and are not to be used for calculating any severance, resignation, bonuses, pension or retirement benefits or similar payments, the Participant waives any claim on such basis, and, for the avoidance of doubt, the PSUs shall not constitute an “acquired right” under the applicable law of any jurisdiction; and (g) the future value of the underlying Shares is unknown and cannot be predicted with certainty. In addition, the Participant understands, acknowledges and agrees that the Participant will have no rights to compensation or 

9

damages related to PSU proceeds in consequence of the termination of the Participant’s Employment for any reason whatsoever and whether or not in breach of contract.
15.    Section 409A. This Agreement is intended to comply with the provisions of Section 409A of the Code and the regulations promulgated thereunder. Without limiting the foregoing, the Committee shall have the right to amend the terms and conditions of this Agreement in any respect as may be necessary or appropriate to comply with Section 409A of the Code or any regulations promulgated thereunder, including without limitation by delaying the issuance of the Shares contemplated hereunder.
16.    Book Entry Delivery of Shares. Whenever reference in this Agreement is made to the issuance or delivery of certificates representing one or more Shares, the Company may elect to issue or deliver such Shares in book entry form in lieu of certificates.
17.    Electronic Acceptance; Agreement by the Participant; Forfeiture upon Failure to Accept. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company. By accepting the PSUs (including through electronic means), the Participant agrees to be bound by the terms, conditions, and restrictions set forth in the Plan, this Agreement, and the Company’s policies, as in effect from time to time, relating to the Plan. The Participant's rights under the PSUs will lapse ninety (90) days from the Date of Grant, and the PSUs will be forfeited on such date if the Participant shall not have accepted this Agreement by such date. For the avoidance of doubt, the Participant's failure to accept this Agreement shall not affect the Participant’s continuing obligations under any other agreement between the Company and the Participant.
18.    Prior Agreements; Full Satisfaction.  
(a)    This Agreement and the documents referred to herein or delivered pursuant hereto which form a part hereof, including the Restrictive Covenants, contain the entire understanding of the parties with respect to the subject matter hereof and thereof, provided that if the Company or its Affiliates is a party to one or more agreements with the Participant related to the matters subject to Section 7 other than an agreement which is an “employment agreement” for the purposes of Section 7 hereof, such other agreements shall remain in full force and effect and continue in addition to this Agreement and nothing in this Agreement or incorporated by reference shall supersede or replace any other confidentiality, non-competition, non-solicitation, non-disparagement or similar agreement entered into between the Participant and the Company (or any subsidiary or Affiliate) to the extent that such agreement is more protective of the business of the Company or any subsidiary or Affiliate), and provided, further, that to the extent a Participant is party to any agreement that would, by its terms, vary the terms of this Agreement (other than with respect to the matters subject to Section 7 hereof) or provide more favorable rights and remedies to the Participant, such terms will be deemed amended and shall not apply to the PSUs granted herein.  There are no restrictions, agreements, promises, representations, 

10

warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein and therein.  
(b)    This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter, subject to the provisos in the first sentence of Section 19(a). The PSUs granted herein are in full satisfaction of any equity grants or long-term stock-based incentive awards set forth in any offer letter or description of the Participant’s terms of employment entered into by and between the Participant and the Company or provided to the Participant by the Company.
19.    Securities Laws.  The Company reserves the right to impose other requirements on the Participant's participation in the Plan, on the PSUs and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. Upon the acquisition of any Shares pursuant to the settlement of an PSU, the Participant will make or enter into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws or with this Agreement.  
20.    Notices.  Any notice necessary under this Agreement shall be addressed to the Company in care of its Treasurer and a copy to the General Counsel, each copy addressed to the principal Participant office of the Company and to the Participant at the address appearing in the personnel records of the Company for the Participant or to either party at such other address as either party hereto may hereafter designate in writing to the other.  Any such notice shall be deemed effective upon receipt thereof by the addressee.
21.    Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without regard to conflicts of laws.
22.    Award Subject to Plan. The Participant acknowledges that the Participant has received and read a copy of the Plan. The PSUs granted hereunder and the Shares received upon settlement of the PSUs are subject to the Plan. The terms and provisions of the Plan, as it may be amended from time to time, are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.
23.    Amendment.  The Committee may waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate this Agreement, but no such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination shall materially adversely affect the rights of the Participant hereunder without the consent of the Participant. The Participant acknowledges that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Participant or any other participant in the Plan.
 [Signatures follow]

11

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of the Date of Grant.

Participant: Mark Schiller

Date of Grant: June 15, 2016

Target Number of Performance Share Units Granted: 11,439

Maximum Number of Performance Share Units Granted:  22,878

Performance Period: April 1, 2016 to March 31, 2019

	
			
	 
	 
	 

	 
	 
	 

	 
	/s/ Mark Schiller
	 

	 
	Participant
	 

12

Agreed and accepted:

	
			
	 
	PINNACLE FOODS INC.
	 

	 
	 
	 

	 
	 
	 

	 
	/s/ Kelley Maggs
	 

	 
	By: Kelley Maggs
	 

	 
	Its: EVP – General Counsel
	 

13

Schedule I 
Vesting

		
	1.
	Performance Conditions.  

(a)    Generally. The extent to which the Performance Conditions are satisfied and the number of PSUs which become vested shall be calculated with respect to the performance criteria set forth below. All determinations with respect to the performance criteria shall be made by the Committee in its sole discretion and the applicable performance targets shall not be achieved and the PSUs shall not vest until the Committee certifies that such performance targets have been met. 
(b)    Total Shareholder Return Position. The total number of PSUs which become vested based on the Total Shareholder Return of the Company shall be equal to (x) the target number of PSUs multiplied by (y) the Achievement Percentage determined based on the applicable Total Shareholder Return Position for the Performance Period as follows:  
	
			
	Percentile Performance
	Performance Characterization
	Percentage of Award Vested

	91st -100th  Percentile
	Top 10%
	200%

	76th - 90th  Percentile
	Upper Quartile
	150%

	61st -75th Percentile
	Above Median
	125%

	41st -60th Percentile
	Median
	100%

	26th -40th Percentile
	Below Median
	75%

	11th -25th Percentile
	Lower Quartile
	50%

	1st-10th Percentile
	Bottom 10%
	0%

14

(c)    The Committee shall determine (i) the Total Shareholder Return for the Company for the Performance Period and (ii) the Total Shareholder Return for each Peer Group Member for the Performance Period.  The “Total Shareholder Return Position” for the Company for the Performance Period will then be determined by ranking each of the Company and each Peer Group Member from highest to lowest according to its Total Shareholder Return and then calculating the position (as a percentile) of the Company relative to Peer Group Members and the Company collectively. 
		
	2.
	Termination of Employment.

(a)    If the Participant’s Employment with the Company and its Subsidiaries shall be terminated during the Performance Period (i) by the Company or any Subsidiary due to or during Participant’s Disability or due to Participant’s death, or (ii) by either party when the Participant is eligible for Retirement (unless the termination is by the Company with Cause, or by the Participant when grounds existed for Cause at the time thereof), the target number of PSUs granted hereunder shall be prorated and then remain eligible to vest based on the Performance Conditions as of the last date of the Performance Period, with such pro ration based on the number of days in the Performance Period prior to the Termination Date relative to the number of the days in the full Performance Period.
(b)    In the event of involuntary termination during the Performance Period by the Company or any Subsidiary for any reason other than for Cause, notwithstanding any other provision of this Agreement to the contrary, the PSUs shall, to the extent not then vested or previously forfeited or cancelled, become fully vested.
(c)    If the Participant’s Employment with the Company and its Subsidiaries shall be terminated for any reason after the Performance Period and before the Determination Date (other than a termination by the Company for Cause or by the Participant while grounds for Cause exist), then all PSUs shall remain outstanding and eligible to vest based on (and to the extent) the Committee’s determines that the Performance Conditions have been satisfied on the Determination Date.
		
	3.
	Effect of a Change in Control. 

In each case within twelve (12) months following a Change in Control, in the event of (i) a Participant’s termination other than for Cause or (ii) a Participant’s termination due to death or Disability, and prior to the completion of the Performance Period, the number of PSUs to vest will be calculated based on actual performance through the date of termination as determined by the Committee.  To the extent the Committee determines that measurement of actual performance cannot be reasonably assessed, the Committee will use assumed achievement of target performance, prorated based on the time elapsed from the date of grant to the date of termination. 

15

		
	4.
	Definitions.  

For the purposes of this Schedule I:
(a)    “Achievement Percentage” means the “Percentage of Award Vested” specified with respect to the Percentile Performance for the performance criteria. 
(b)    “Peer Group Members” means the companies identified by the Committee at the time this Agreement was approved (provided however, that in the event one Peer Group Member merges with or is acquired by another Peer Group Member only the surviving company will be considered a Peer Group Member, or if one Peer Group Member is acquired by a company who is not a Peer Group Member then such acquired company will cease to be a Peer Group Member for all purposes hereunder).
(c)    “Total Shareholder Return” of either the Company or a Peer Group Member means: (i) the 20 trading day average in March 2019 minus the 20 trading day average prior to the start of the Performance Period (the “Base Price”), divided by (ii) the Base Price. Total Shareholder Return shall be adjusted for stock splits, reverse stock splits, stock dividends, and other extraordinary transactions or other changes in the capital structure of the Company or the Peer Group Member, as applicable.HudBay Minerals Inc.: Exhibit 4.2 - Filed by newsfilecorp.com

HUDBAY MINERALS INC. BY-LAW NUMBER 1 

BY-LAW NO. 1 

A by-law relating generally to 
the conduct of the affairs of

HUDBAY MINERALS INC. 

CONTENTS 

	Part One 	- 	Interpretation 
	 	 	 
	Part Two 	- 	Business of the 
Corporation 
	 	 	 
	Part Three 	- 	Directors 
	 	 	 
	Part Four 	- 	Meetings of Directors 
	 	 	 
	Part Five 	- 	Committees 
	 	 	 
	Part Six 	- 	Officers 
	 	 	 
	Part Seven 	- 	Protection of Directors, 
	  	  	Officers and Others 
	 	 	 
	Part Eight 	- 	Shares 
	 	 	 
	Part Nine 	- 	Dividends and Rights 
	 	 	 
	Part Ten 	- 	Meetings of Shareholders 
	 	 	 
	Part Eleven 	- 	Notices 
	 	 	 
	Part Twelve 	- 	Effective Date 

BE IT ENACTED AND IT IS HEREBY ENACTED as a by-law of HudBay
Minerals Inc. (hereinafter called the "Corporation") as follows: 

PART ONE 

INTERPRETATION 

	1.01 	
      Definitions 

In this by-law and all other by-laws of the Corporation,
unless the context otherwise specifies or requires: 

- 2 - 

		- 	"Act" means the Canada Business
      Corporations Act, R.S.C., 1985, c. C-44, as from time to time amended, and
      every statute that may be substituted therefor and, in the case of such
      amendment or substitution, any reference in the by-laws of the Corporation
      shall be read as referring to the amended or substituted provisions
      therefor: 
	 	 	
	 	-  	"board" means the board of directors
      of the Corporation; 
	 	 	
	 	-  	"by-laws" means any by-law of the
      Corporation from time to time in force and effect; 
	 	 	
		- 	"meeting of shareholders" includes
      an annual meeting of shareholders and a special meeting of shareholders:
    
	 	 	
		- 	"non-business day" means Saturday,
      Sunday and any other day that is a holiday as defined in the
      Interpretation Act (Canada); 
	 	 	
		- 	"recorded address" means in the case
      of a shareholder, his address as recorded in the securities register; and
      in the case of joint shareholders, the address appearing in the securities
      register in respect of such joint holding, or the first address so
      appearing if there are more than one; and in the case of a director,
      officer, auditor or member of a committee of the board, his latest address
      as recorded in the records of the Corporation; 
	 	 	
		- 	"signing officer" means, in relation
      to any instrument, any person authorized to sign the same on behalf of the
      Corporation by section 2.04 or by a resolution passed pursuant thereto;
  
	 	 	
		- 	"special meeting of shareholders"
      includes a meeting of any class or classes of shareholders, and means a
      special meeting of all shareholders entitled to vote at an annual meeting
      of shareholders: 
	 	 	
		- 	all terms contained in the by-laws
      which are defined in the Act shall have the meanings given to such terms
      in the Act; 
	 	 	
		- 	words importing the singular number
      only shall include the plural and vice-versa; words importing the
      masculine gender shall include the feminine and neuter genders; words
      importing persons shall include bodies corporate, partnerships,
      syndicates, trusts and any number or aggregate of persons; and 
	 	 	
		- 	the headings used in the by-laws are
      inserted for reference purposes only, and are not to be considered or
      taken into account in construing the terms or provisions thereof, or to be
      deemed in any way to clarify, modify or explain the effect of any such
      terms or provisions. 

PART TWO 

BUSINESS OF THE CORPORATION 

	2.01 	
      Registered Office 

Unless changed in accordance with the Act, the registered
office of the Corporation shall be at the place within Canada from time to time
specified in the articles and at such address therein as the directors may from
time to time determine. 

- 3 - 

	2.02 	
      Corporate Seal 

The corporate seal of the Corporation shall be in such form
as the directors may by resolution adopt from time to time. 

	2.03 	
      Financial Year 

The first financial period of the Corporation and
thereafter the fiscal year of the Corporation shall terminate on such date as
the directors may by resolution determine. 

	2.04 	
      Execution of Contracts, Etc.

Subject to section 2.06, contracts, documents or
instruments in writing requiring the signature of the Corporation may be signed
on behalf of the Corporation, when only one person is elected or appointed as an
officer and as the director of the Corporation, by that person and, when two or
more persons are elected or appointed as an officer or as a director of the
Corporation, by any one director or any one person holding the office of
chairman or co-chairman of the board, managing director, president, chief
executive officer, chief operating officer, chief financial officer,
vice-president, general manager, secretary, treasurer, controller, assistant
secretary, assistant treasurer or any other office the holder of which has been
designated as a signing officer by the directors. The directors are authorized
from time to time by resolution to appoint any officer or officers or any other
person or persons on behalf of the Corporation either to sign contracts,
documents or instruments in writing generally or to sign specific contracts,
documents or instruments in writing. 

The signature or signatures of any officer or director of
the Corporation and of any officer or officers, person or persons appointed as
aforesaid by resolution of the directors may, if specifically authorized by
resolution of the directors, be printed, engraved, lithographed or otherwise
mechanically reproduced upon all contracts, documents or instruments in writing
or bonds, debentures or other securities of the Corporation executed or issued
by or on behalf of the Corporation, and all contracts, documents or instruments
in writing or securities of the Corporation on which the signature or signatures
of any of the foregoing officers, directors or persons shall be so reproduced,
as authorized by resolution of the directors, shall be deemed to have been
manually signed by such officers, directors or persons whose signature or
signatures is or are so reproduced, and shall be as valid to all intents and
purposes as if they had been signed manually, and notwithstanding that the
officers, directors or persons whose signature or signatures is or are so
reproduced may have ceased to hold office at the date of the delivery or issue
of such contracts, documents or instruments in writing or securities of the
Corporation. 

The corporate seal of the Corporation may, when required,
be affixed to contracts, documents or instruments in writing signed as aforesaid
or by an officer or officers, person or persons appointed as aforesaid by
resolution of the board of directors, although a document is not invalid merely
because a corporate seal is not affixed thereto. 

The term "contracts, documents or instruments in writing"
as used in this by-law shall include deeds, mortgages, hypothecs, charges,
conveyances, transfers and assignments of property, real or personal, immovable
or movable, agreements, releases, receipts and discharges for the payment of
money or other obligations, conveyances, transfers and assignments of securities
and all paper writings. 

- 4 - 

	2.05 	
      Banking Arrangements 

The banking business of the Corporation including, without
limitation, the borrowing of money and the giving of security therefor, shall be
transacted with such banks, trust companies or other bodies corporate or
organizations as may from time to time be designated by or under the authority
of the directors. Such banking business or any part thereof shall be transacted
under such agreements, instructions and delegations of powers as the directors
may from time to time prescribe or authorize. 

	2.06 	
      Cheques, Drafts, Notes, Etc.

All cheques, drafts or orders for the payment of money, and
all notes, acceptances and bills of exchange shall be signed by such officer or
officers or other person or persons, whether or not an officer or officers of
the Corporation, and in such manner as the directors may from time to time
designate by resolution. 

	2.07 	
      Custody of Securities 

All securities (including certificates, warrants or other
evidences of conversion privileges, options or rights to acquire securities)
owned by the Corporation shall be lodged in the name of the Corporation with a
chartered bank or a trust company or in a safety deposit box or, if so
authorized by resolution of the directors, with such other depositaries or in
such other manner as may be determined from time to time by the directors. All
securities (including warrants) belonging to the Corporation may be issued and
held in the name of a nominee or nominees of the Corporation (and if issued or
held in the names of more than one nominee shall be held in the names of the
nominees jointly with right of survivorship), and shall be endorsed in blank
with endorsement guaranteed in order to enable transfer thereof to be completed
and registration thereof to be effected. 

	2.08 	
      Voting Securities in Other Bodies Corporate
  

The signing officers of the Corporation may execute and
deliver proxies and arrange for the issuance of voting certificates or other
evidence of the right to exercise the voting rights attaching to any securities
held by the Corporation. Such instruments shall be in favour of such persons as
may be determined by the said signing officers executing or arranging for the
same. In addition, the directors may from time to time direct the manner in
which and the persons by whom any particular voting rights or class of voting
rights may or shall be exercised. 

PART THREE 

DIRECTORS 

	3.01 	
      Number of Directors 

Until changed in accordance with the Act, the board shall
consist of not fewer than the minimum number and not more than the maximum
number of directors provided in the articles. 

	3.02 	
      Qualification 

Every director shall be an individual eighteen (18) or more
years of age, and no one who is of unsound mind and has been so found by a court
in Canada or elsewhere, or who has the status of a bankrupt shall be a director.
Unless the articles otherwise provide, a director need not be a shareholder.

- 5 - 

At least twenty-five per cent of the directors of the
Corporation must be resident Canadians. If at any time the Corporation has less
than four directors, at least one director must be a resident Canadian. 

	3.03 	
      Term of Office 

A director's term of office (subject to the provisions, if
any, of the Corporation's articles, and subject to his election for an expressly
stated term) shall be from the date of the meeting at which he is elected or
appointed until the close of the annual meeting next following, or until his
successor is elected or appointed. 

	3.04 	
      Election and Removal 

Directors shall be elected by the shareholders in a meeting
on a show of hands unless a poll is demanded, and if a poll is demanded, such
election shall be by ballot. The number of directors to be elected at any such
meeting shall be the number of directors then in office unless the directors or
the shareholders otherwise determine. Except for those directors elected for an
expressly stated term, all the directors then in office shall cease to hold
office at the close of a meeting of shareholders at which directors are elected
but, if qualified, are eligible for re-election. If a meeting of the
shareholders of the Corporation fails to elect the number or the minimum number
of directors required by the articles by reason of the disqualification,
incapacity or the death of any candidates, the directors elected at that meeting
may exercise all the powers of the directors if the number of directors so
elected constitutes a quorum. Subject to subsection 2 of section 109 of the Act,
the shareholders of the Corporation may, by ordinary resolution at a special
meeting, remove any director before the expiration of his term of office, in
which case the director so removed shall vacate office forthwith upon the
passing of the resolution for his removal, and may, by a majority of the votes
cast at the meeting, elect any person in his stead for the remainder of his
term. 

	3.05 	
      Vacation of Office 

The office of a director shall ipso facto be vacated if:

	 	(a) 	
      he dies:

	 	 	 
	 	(b) 	
      he is removed from office by the shareholders;

	 	 	 
	 	(c) 	
      he becomes bankrupt;

	 	 	 
	 	(d) 	
      he is found by a court in Canada or elsewhere to be of
      unsound mind; or

	 	 	 
	 	(e) 	
      his written resignation is received by the Corporation,
      or if a time is specified in such resignation, at the time so specified,
      whichever is later.

	3.06 	
      Vacancies 

Subject to the Act, where a vacancy occurs in the board,
except a vacancy resulting from an increase in the number or minimum number of
directors or from failure to elect the number or minimum number of directors
required by the articles, and a quorum of directors remains in office, the
directors then in office (even though twenty-five per cent of such
directors are not resident Canadians) may appoint a person to fill the vacancy
for the remainder of the term. If there is not then a quorum of directors or if
there has been a failure to elect the number or minimum number of directors
required by the articles, the directors then in office shall forthwith call a
special meeting of shareholders to fill the vacancy and, if they fail to do so or if there are no directors
then in office, the meeting may be called by any shareholder. 

- 6 - 

	3.07 	
      Action by Directors 

Subject to any unanimous shareholder agreement, the
directors shall manage the business and affairs of the Corporation, and may
exercise all such powers and do all such acts and things as may be exercised or
done by the Corporation and are not by the Act, the articles, the by-laws, any
special resolution of the Corporation, a unanimous shareholder agreement or by
statute expressly directed or required to be done in some other manner. 

	3.08 	
      Canadian Directors Present at Meetings
  

The directors shall not transact business at a meeting
unless at least twenty-five per cent of the directors present are resident
Canadians or, if the Corporation has less than four directors, at least one of
the directors present is a resident Canadian, except where: 

	 	(a) 	
      a resident Canadian director who is unable to be present
      approves in writing or by telephonic, electronic or other communication
      facility, the business transacted at the meeting; and

	 	 	 
	 	(b) 	
      the required number of resident Canadian directors would
      have been present had that director been present at the
  meeting.

	3.09 	
      Duties 

Every director and officer of the Corporation in exercising
his powers and discharging his duties shall: 

	 	(a) 	
      act honestly and in good faith with a view to the best
      interest of the Corporation; and

	 	 	 
	 	(b) 	
      exercise the care, diligence and skill that a reasonably
      prudent person would exercise in comparable
  circumstances.

	3.10 	
      Validity of Acts 

An act by a director or officer is valid notwithstanding an
irregularity in his election or appointment or a defect in his qualification.

	3.11 	
      Remuneration and Expenses 

Subject to any unanimous shareholder agreement, the
remuneration to be paid to the directors shall be such as the directors shall
from time to time determine. The directors may also by resolution award special
remuneration to any director in undertaking any special services on the
Corporation's behalf other than the routine work ordinarily required of a
director of a Corporation. The confirmation of any such resolution or
resolutions by the shareholders shall not be required. The directors shall also
be entitled to be paid their travelling and other expenses properly incurred by
them in connection with the affairs of the Corporation. 

- 7 - 

PART FOUR 

MEETINGS OF DIRECTORS 

	4.01 	
      Calling of Meetings 

Meetings of the directors shall be held from time to time
at such place as the chairman of the board (if any), the president or
vice-president who is a director or any two directors may determine and the
secretary shall, upon direction of any of the foregoing, convene a meeting of
directors. 

	4.02 	
      Place of Meeting 

Meetings of directors or of any committee of directors may
be held at any place in or outside Canada. 

	4.03 	
      Notice 

Notice of the time and place for the holding of any such
meeting shall be delivered, mailed, or sent by telefacsimile or other electronic
means to each director not less than two days (exclusive of the day on which the
notice is delivered, mailed, or sent by telefacsimile or other electronic means,
but inclusive of the day for which notice is given) before the date of the
meeting; provided that meetings of the directors or of any committee of
directors may be held at any time without formal notice if all the directors are
present (except where a director attends a meeting for the express purpose of
objecting to the transaction of any business on the grounds that the meeting is
not lawfully called) or if all absent directors have waived notice. Notice of
any meeting of directors or of any committee of directors or any irregularity in
any meeting or the notice thereof may be waived by any director in writing or by
telefacsimile or other electronic means addressed to the Corporation or in any
other manner, and such waiver may be validly given either before or after the
meeting to which such waiver relates. A notice of meeting of directors or of any
committee of directors need not specify the purpose of or the business to be
transacted at the meeting except where the Act requires such purpose or business
to be specified, including any proposal to: 

	 	(a) 	
      submit to the shareholders any question or matter
      requiring approval of the shareholders;

	 	 	 
	 	(b) 	
      fill a vacancy among the directors or in the office of
      auditors of the Corporation;

	 	 	 
	 	(c) 	
      issue securities of the Corporation;

	 	 	 
	 	(d) 	
      declare dividends;

	 	 	 
	 	(e) 	
      purchase, redeem or otherwise acquire shares of the
      Corporation;

	 	 	 
	 	(f) 	
      pay a commission for the sale of shares;

	 	 	 
	 	(g) 	
      approve a management proxy circular;

	 	 	 
	 	(h) 	
      approve a takeover bid circular or directors'
      circular;

	 	 	 
	 	(i) 	
      approve any annual financial statements;
  or

- 8 - 

	 	(j) 	
      adopt, amend or repeal
by-laws.

	4.04 	
      Quorum 

Subject to section 3.08, the quorum for the transaction of
business at any meeting of the directors shall consist of a majority of the
directors then in office and, notwithstanding any vacancy among the directors, a
quorum of directors may exercise all the powers of the directors. 

	4.05 	
      First Meeting of the New Board

For the first meeting of directors to be held following the
election of directors at an annual or special meeting of the shareholders, or
for a meeting of directors at which a director is appointed to fill a vacancy in
the board, no notice of such meeting need be given to the newly elected or
appointed director or directors in order for the meeting to be duly constituted,
provided a quorum of the directors is present. 

	4.06 	
      Adjournment 

Any meeting of directors or of any committee of directors
may be adjourned from time to time by the chairman of the meeting, with the
consent of the meeting, to a fixed time and place, and no notice of the time and
place for the holding of the adjourned meeting need be given to any director if
the time and place of the adjourned meeting are announced at the original
meeting. Any adjourned meeting shall be duly constituted if held in accordance
with the terms of the adjournment and a quorum is present thereat. The directors
who formed a quorum at the original meeting are not required to form the quorum
at the adjourned meeting. If there is no quorum present at the adjourned
meeting, the original meeting shall be deemed to have terminated forthwith after
its adjournment. 

	4.07 	
      Telephone Participation 

Where all directors have consented thereto (either before
or after the meeting), a director may participate in a meeting of directors or
of any committee of directors by means of such telephone or other communications
facilities as permit all persons participating in the meeting to hear each
other, and a director participating in a meeting by such means shall be deemed
to be present at that meeting. 

	4.08 	
      Regular Meetings 

The directors may appoint a day or days in any month or
months for regular meetings of the directors at a place and hour to be named. A
copy of any resolution of the board fixing the place and time of such regular
meetings shall be sent to each director forthwith after being passed, but no
other notice shall be required for any such regular meeting except where the Act
requires the purpose thereof or the business to be transacted thereat to be
specified. 

	4.09 	
      Chairman 

The chairman of any meeting of the directors shall be the
first mentioned of such of the following officers as have been appointed and who
is a director and is present at the meeting: chairman of the board, managing
director, president, or a vice-president. If no such officer is present, the
directors present shall choose one of their number to be chairman. 

- 9 - 

	4.10 	
      Votes to Govern 

All questions arising at any meeting of directors shall be
decided by a majority of votes. In case of an equality of votes, the chairman of
the meeting in addition to his original vote shall not have a second or casting
vote. 

	4.11 	
      Resolution in Lieu of Meeting

A resolution in writing signed by all the directors
entitled to vote on that resolution at a meeting of directors or committee of
directors is as valid as if it had been passed at a meeting of directors or
committee of directors. A copy of every such resolution shall be kept with the
minutes of the proceedings of the directors or committee of directors. 

	4.12 	
      One Director Meeting 

If the Corporation has only one director, that director may
constitute a meeting. 

PART FIVE 

COMMITTEES 

	5.01 	
      Committees of Directors 

The directors may appoint one or more committees of the
board, however designated, and delegate to any such committee any of the powers
of the board except those which pertain to items which, under the Act, a
committee of the board has no authority to exercise.

	5.02 	
      Transaction of Business 

Subject to the provisions of section 4.07, the powers of
such committee or committees of directors may be exercised by a meeting at which
a quorum is present or by resolution in writing signed by all the members of
such committee who would have been entitled to vote on that resolution at a
meeting of the committee. Meetings of such committee may be held at any place in
or outside Canada. 

	5.03 	
      Advisory Bodies 

The directors may from time to time appoint advisory bodies
as they may deem advisable. 

	5.04 	
      Procedure 

Unless otherwise determined by the directors, each
committee shall have the power to fix its quorum at not less than a majority of
its members, to elect its chairman and to regulate its procedure. 

- 10 - 

PART SIX 

OFFICERS 

	6.01 	
      Appointment of Officers 

The directors shall annually or as often as may be required
appoint a president and a secretary, and if deemed advisable, may annually or as
often as may be required appoint one or more vice-presidents, (to which title
may be words added indicating seniority or function), a treasurer, and such
other officers as the directors may determine, including one or more assistants
to any one of the officers so appointed. Subject to sections 6.02 and 6.03, an
officer may but need not be a director, and one person may hold more than one
office. In case and whenever the same person holds the offices of secretary and
treasurer, he may but need not be known as the secretary-treasurer. The
directors may from time to time appoint such other officers, employees and
agents as they shall deem necessary who shall have such authority and shall
perform such functions and duties as may from time to time be prescribed by
resolution of the directors. 

	6.02 	
      Chairman of the Board 

The board may from time to time appoint a chairman of the
board who shall be a director. If appointed, the directors may assign to him any
of the powers and duties that are by any provisions of this by-law assigned to
the managing director or to the president; and he shall, subject to the
provisions of the Act, have such other powers and duties as the directors may
specify. During the absence or disability of the chairman of the board, his
duties shall be performed and his powers exercised by the managing director, if
any, or by the president. 

	6.03 	
      Managing Director 

The directors may from time to time appoint from their
number a managing director who is a resident Canadian, and may delegate to the
managing director any of the powers of the directors subject to the Act. A
managing director shall conform to all lawful orders given to him by the
directors of the Corporation, and shall at all reasonable times give to the
directors or any of them all information they may require regarding the affairs
of the Corporation. 

	6.04 	
      President 

The president may be the chief executive officer of the
Corporation, and shall exercise general supervision over the business and
affairs of the Corporation. In the absence of the chairman of the board and
managing director, if any, and if the president is also a director of the
Corporation, the president shall, when present, preside at all meetings of the
directors, any committee of the directors and shareholders; he shall sign such
contracts, documents or instruments in writing as require his signature, and
shall have such other powers and shall perform such other duties as may from
time to time be assigned to him by resolution of the directors or as are
incident to his office. 

	6.05 	
      Vice-President 

The vice-president or, if more than one, the
vice-presidents in order of seniority, shall be vested with all the powers and
shall perform all the duties of the president in the absence or inability or
refusal to act of the president, provided, however, that a vice-president who is
not a director shall not preside as chairman at any meeting of directors or
shareholders. The vice-president or, if more than one, the vice-presidents in
order of seniority, shall sign such contracts, documents or instruments in
writing as require his or their signatures and shall also have such other
powers and duties as may from time to time be assigned to him or them by
resolution of the directors. 

- 11 - 

	6.06 	
      Secretary 

The secretary shall give or cause to be given notices for
all meetings of the directors and any committee of the directors and
shareholders when directed to do so, and shall have charge of the minute books
of the Corporation and, subject to the provisions of section 8.03 hereof, of the
documents and registers required by the Act. He shall sign such contracts,
documents or instruments in writing as require his signature, and shall have
such other powers and duties as may from time to time be assigned to him by
resolution of the directors, or as are incident to his office. 

	6.07 	
      Treasurer 

Subject to the provisions of any resolution of the
directors, the treasurer shall have the care and custody of all the funds and
securities of the Corporation, and shall deposit the same in the name of the
Corporation in such bank or banks or with such other depositary or depositaries
as the directors may by resolution direct. He shall prepare and maintain proper
accounting records in compliance with the Act. He shall render to the directors
whenever required an account of all his transactions as treasurer and of the
financial position of the Corporation. He shall sign such contracts, documents
or instruments in writing as require his signature, and shall have such other
powers and duties as may from time to time be assigned to him by resolution of
the directors or as are incident to his office. 

	6.08 	
      Powers and Duties of Other Officers
  

The powers and duties of all other officers shall be such
as the terms of their engagement call for or as the directors or the chief
executive officer may specify. Any of the powers and duties of an officer to
whom an assistant has been appointed may be exercised and performed by such
assistant, unless the board or the chief executive officer otherwise directs.

	6.09 	
      Duties of Officers May Be Delegated
  

In case of the absence or inability or refusal to act of
any officer of the Corporation or for any other reason that the directors may
deem sufficient, the directors may delegate all or any of the powers of such
officer to any other officer or to any director for the time being. 

	6.10 	
      Term of Office 

All officers in the absence of agreement to the contrary,
shall be subject to removal by resolution of the directors at any time, with or
without cause. Otherwise, each officer appointed by the directors shall hold
office until his successor is appointed. 

	6.11 	
      Variation of Powers and Duties

The directors may from time to time and subject to the
provisions of the Act, vary, add to or limit the powers and duties of any
officer. 

	6.12 	
      Terms of Employment and Remuneration
  

The terms of employment and remuneration of all officers
appointed by the board, including the chairman of the board, if any, and the
president shall be determined from time to time by resolution of the board. The fact that any officer or employee
is a director or shareholder shall not disqualify him from receiving such
remuneration as may be determined. 

- 12 - 

	6.13 	
      Conflict of Interest 

An officer shall disclose his interest in any material
contract or proposed material contract with the Corporation in accordance with
section 7.04. 

	6.14 	
      Fidelity Bonds 

The directors may require such officers, employees and
agents of the Corporation as the directors deem advisable to furnish bonds for
the faithful discharge of their powers and duties, in such form and with such
surety as the directors may from time to time determine, provided that no
director shall be liable for failure to require any such bond or for the
insufficiency of any such bond or for any loss by reason of the failure of the
Corporation to receive any indemnity thereby provided. 

	6.15 	
      Vacancies 

If the office of chairman, managing director, president,
vice-president, secretary, treasurer, or any other office created by the
directors pursuant to section 6.08 hereof shall be or become vacant by reason of
death, resignation or in any other manner whatsoever, the directors shall in the
case of the president or the secretary and may in the case of any other officer
appoint an officer to fill such vacancy. 

	6.16 	
      Other Officers 

The duties of all other officers of the Corporation shall
be such as the terms of their engagement call for or the board requires of them.
Any of the powers and duties of an officer to whom an assistant has been
appointed may be exercised and performed by such assistant, unless the board
otherwise directs. 

PART SEVEN 

PROTECTION OF DIRECTORS AND OFFICERS 

	7.01 	
      Limitation of Liability 

No director or officer for the time being of the
Corporation shall be liable for the acts, receipts, neglects or defaults of any
other director or officer or employee or for joining in any receipt or act for
conformity, or for any loss, damage or expense happening to the Corporation
through the insufficiency or deficiency of title to any property acquired by the
Corporation or for or on behalf of the Corporation, or for the insufficiency or
deficiency of any security in or upon which any of the moneys of or belonging to
the Corporation shall be placed out or invested, or for any loss or damage
arising from the bankruptcy, insolvency or tortious act of any person, including
any person with whom or which any moneys, securities or effects shall be lodged
or deposited, or for any loss, conversion, misapplication or misappropriation of
or any damage resulting from any dealings with any moneys, securities or other
assets belonging to the Corporation or for any other loss, damage or misfortune
whatever which may happen in the execution of the duties of his office or in
relation thereto, unless the same shall happen by or through his failure to
exercise his powers and to discharge his duties honestly, in good faith with a
view to the best interests of the Corporation, and in connection therewith to
exercise the care, diligence and skill that a reasonably prudent person would
exercise in comparable circumstances, provided that nothing herein contained shall relieve a director or officer
from the duty to act in accordance with the Act and regulations made thereunder,
or relieve him from liability for a breach thereof. The directors for the time
being of the Corporation shall not be under any duty or responsibility in
respect of any contract, act or transaction whether or not made, done or entered
into in the name or on behalf of the Corporation, except such as shall have been
submitted to and authorized or approved by the board of directors. 

- 13 - 

	7.02 	
      Indemnity 

Subject to the Act, the Corporation shall indemnify a
director or officer of the Corporation, a former director or officer of the
Corporation or another individual who acts or acted at the Corporation's request
as a director or officer, or an individual acting in a similar capacity, of
another entity, against all costs, charges and expenses, including an amount
paid to settle an action or satisfy a judgment, reasonably incurred by the
individual in respect of any civil, criminal, administrative, investigative or
other proceeding to which the individual is involved because of that association
with the Corporation or other entity, if: 

	 	(a) 	
      the individual acted honestly and in good faith with a
      view to the best interests of the Corporation, or, as the case may be, to
      the best interests of the other entity for which the individual acted as
      director or officer or in a similar capacity at the Corporation’s request;
      and

	 	 	 
	 	(b) 	
      in the case of a criminal or administrative action or
      proceeding that is enforced by a monetary penalty, the individual had
      reasonable grounds for believing that the individual’s conduct was
      lawful.

	7.03 	
      Insurance 

Subject to the Act, the Corporation may purchase and
maintain insurance for the benefit of any person referred to in section 7.02
against any liability incurred by him in his capacity as a director or officer
of the Corporation or of another body corporate at the Corporation's request.

	7.04 	
      Conflict of Interest 

A director or officer who is a party to, or who is a
director or officer of or has a material interest in any material contract with
the Corporation shall disclose the nature and extent of his interest at the time
and in the manner provided by the Act. Any such contract or proposed contract
shall be referred to the directors or shareholders for approval even if such
contract is one that in the ordinary course of the Corporation's business would
not require approval by the directors or shareholders, and a director interested
in a contract so referred to the board shall not vote on any resolution to
approve the same except as provided by the Act. 

	7.05 	
      Submission of Contracts or
Transactions to
      Shareholders for Approval 

The directors in their discretion may submit any contract,
act or transaction for approval, ratification or confirmation at any annual
meeting of the shareholders or at any special meeting of the shareholders called
for the purpose of considering the same and any contract, act or transaction
that shall be approved, ratified or confirmed by resolution passed by a majority
of the votes cast at any such meeting (unless any different or additional
requirement is imposed by the Act or by the Corporation's articles or any other
by-law) shall be as valid and as binding upon the Corporation and upon all the
shareholders as though it had been approved, ratified and/or
confirmed by every shareholder of the Corporation. 

- 14 - 

PART EIGHT 

SHARES 

	8.01 	
      Allotment 

Subject to the Act, the articles of the Corporation and any
unanimous shareholder agreement, the directors may from time to time allot, or
grant options to purchase, the whole or any part of the authorized and unissued
shares of the Corporation at such times and to such persons and for such
consideration as the directors may determine, provided that no share shall be
issued until it is fully paid as provided by the Act. 

	8.02 	
      Commissions 

The directors may from time to time authorize the
Corporation to pay a reasonable commission to any person in consideration of his
purchasing or agreeing to purchase shares of the Corporation, whether from the
Corporation or from any other person, or procuring or agreeing to procure
purchasers for any such shares. 

	8.03 	
      Transfer Agents and Registrars

The directors may from time to time appoint a registrar to
maintain the securities register and a transfer agent to maintain the register
of transfers and may also appoint one or more branch registrars to maintain
branch securities registers and one or more branch transfer agents to maintain
branch registers of transfers, but one person may be appointed both registrar
and transfer agent. The directors may at any time terminate any such
appointment. 

	8.04 	
      Share Certificates 

Every holder of one or more shares of the Corporation shall
be entitled, at his option, to a share certificate, or to a non-transferrable
written acknowledgement of his right to obtain a share certificate, stating the
number and class or series of shares held by him as shown on the securities
register. Share certificates and acknowledgements of a shareholder's right to a
share certificate shall be in such form as the directors shall from time to time
approve. Any share certificate shall be signed in accordance with section 2.04;
it need not be under the corporate seal. The signature of one of the signing
officers may be printed or mechanically reproduced in facsimile upon share
certificates; the other officer must sign manually. Every such facsimile
signature shall for all purposes be deemed to be a signature binding upon the
Corporation. Unless the directors otherwise determine, certificates representing
shares in respect of which a transfer agent or registrar, as the case may be,
has been appointed shall not be valid unless countersigned manually by or on
behalf of such transfer agent or registrar. In the case of share certificates
which are not valid unless countersigned manually by or on behalf of a transfer
agent or registrar, the signature of both signing officers may be printed or
mechanically reproduced in facsimile upon share certificates and every such
facsimile signature shall for all purposes be deemed to be a signature binding
upon the Corporation. Notwithstanding any change in the persons holding office
between the time of signing and the issuance of any certificate, and
notwithstanding that a person may not have held office at the date of issuance
of such certificate, any such certificate so signed shall be valid and binding
upon the Corporation. 

- 15 - 

	8.05 	
      Registration of Transfer 

Subject to the Act, a transfer of shares shall not be
registered in a securities register except upon presentation of the certificate
representing such shares with a transfer endorsed thereon, or delivered
therewith, duly executed by the registered holder or by his attorney, fiduciary
or agent duly appointed, together with such reasonable assurance that the
endorsement is genuine and effective as the directors may from time to time
prescribe, upon payment of all applicable taxes and any reasonable fees
prescribed by the directors, upon compliance with such restrictions on transfer
as are authorized by the articles, and upon satisfaction of any lien referred to
in section 8.10. 

	8.06 	
      Non-Recognition of Trusts 

Subject to the Act, the Corporation may treat the
registered holder of any share as the person exclusively entitled to vote, to
receive notices, to receive any dividend or other payments in respect of the
share, and otherwise to exercise all the rights and powers of an owner of the
share. 

	8.07 	
      Joint Shareholders 

If two or more persons are registered as joint holders of
any share, the Corporation shall not be bound to issue more than one certificate
in respect thereof, and delivery of such certificate to one of such persons
shall be sufficient delivery to all of them. Any one of such persons may give
effectual receipts for the certificate issued in respect thereof or for any
dividend, bonus, return of capital or other money payable or warrant issuable in
respect of such share. 

	8.08 	
      Deceased Shareholders 

In the event of the death of a holder, or of one of the
joint holders, of any share, the Corporation shall not be required to make any
entry in the securities register in respect thereof or to make dividends or
other payments in respect thereon except upon production of all such documents
as may be required by law and upon compliance with the reasonable requirements
of the Corporation and its transfer agents. 

	8.09 	
      Replacement of Share Certificates
  

The directors or any officer or agent designated by the
directors may in their or his discretion direct the issue of a new share
certificate in lieu of and upon cancellation of a share certificate that has
been mutilated or in substitution for a share certificate claimed to have been
lost, destroyed or wrongfully taken on payment of such reasonable fee, and on
such terms as to indemnity, reimbursement of expenses and evidence of loss and
of title as the directors may from time to time prescribe, whether generally or
in any particular case. 

	8.10 	
      Lien for Indebtedness 

If the articles provide that the Corporation shall have a
lien on shares registered in the name of a shareholder indebted to the
Corporation, such lien may be enforced, subject to the articles and to any
unanimous shareholder agreement, by the sale of the shares thereby affected or
by any other action, suit, remedy or proceeding authorized or permitted by law
or by equity and, pending such enforcement, may refuse to register a transfer of
the whole or any part of such shares. 

- 16 - 

PART NINE 

DIVIDENDS AND RIGHTS 

	9.01 	
      Dividends 

Subject to the Act, the directors may from time to time
declare dividends payable to the shareholders according to their respective
rights and interests in the Corporation. Dividends may be paid in money or
property or by issuing fully paid shares of the Corporation. 

	9.02 	
      Dividend Cheques 

A dividend payable in money shall be paid by cheque drawn
on the Corporation's bankers or one of them to the order of each registered
holder of shares of the class or series in respect of which it has been declared
and mailed by prepaid ordinary mail to such registered holder at his recorded
address, unless such holder otherwise directs. In the case of joint holders the
cheque shall, unless such joint holders otherwise direct, be made payable to the
order of all of such joint holders and mailed to them at their recorded address.
The mailing of such cheque as aforesaid, unless the same is not paid on due
presentation, shall satisfy and discharge the liability for the dividend to the
extent of the sum represented thereby plus the amount of any tax which the
Corporation is required to and does withhold. 

	9.03 	
      Non-Receipt of Cheques 

In the event of non-receipt of any dividend cheque by the
person to whom it is sent as aforesaid, the Corporation shall issue to such
person a replacement cheque for a like amount on such terms as to indemnity,
reimbursement of expenses and evidence of non-receipt and of title as the
directors may from time to time prescribe, whether generally or in any
particular case. 

	9.04 	
      Record Date for Dividends and Rights
  

The directors may fix in advance a date, preceding by not
more than 50 days the date for the payment of any dividend or the date for the
issue of any warrant or other evidence of right to subscribe for securities of
the Corporation, as a record date for the determination of the persons entitled
to receive payment for such dividend or to exercise the right to subscribe for
such securities, and notice of any such record date shall be given not less than
7 days before such record date by newspaper advertisement in the manner provided
in the Act unless notice of the record date is waived in writing by every holder
of a share of a class or series affected whose name is set out in the securities
register at the close of business on the day the directors fix the record date.
If no record date is so fixed, the record date for the determination of the
persons entitled to receive payment of any dividend or to exercise the right to
subscribe for securities of the Corporation shall be at the close of business on
the day on which the resolution relating to such dividend or right to subscribe
is passed by the directors. 

	9.05 	
      Unclaimed Dividends 

Any dividend unclaimed after a period of 6 years from the
date on which the same has been declared to be payable shall be forfeited and
shall revert to the Corporation. 

- 17 - 

PART TEN 

MEETINGS OF SHAREHOLDERS 

	10.01 	
      Annual Meetings 

The annual meeting of shareholders shall be held at such
time in each year and, subject to section 10.03, at such place as the directors,
the chairman of the board, the managing director or the president may from time
to time determine, for the purpose of considering the financial statements and
reports required by the Act to be placed before the annual meeting, electing
directors, appointing auditors and for the transaction of such other business as
may properly be brought before the meeting. 

	10.02 	
      Special Meetings 

The directors, the chairman of the board, the managing
director or the president shall have power to call a special meeting of
shareholders at any time. 

	10.03 	
      Place of Meetings 

Meetings of shareholders shall be held at the registered
office of the Corporation or elsewhere in the municipality in which the
registered office is situate or, if the directors shall so determine, at some
other place in Canada or, if all the shareholders entitled to vote at the
meeting so agree, at some place outside Canada. 

	10.04 	
      Notice of Meetings 

Notice of the time and place of each meeting of
shareholders shall be given in the manner provided in Part Eleven not less than
21 nor more than 60 days before the date of the meeting to each director, to the
auditors and to each shareholder who at the close of business on the record date
is entered in the securities register as the holder of one or more shares
carrying the right to vote at the meeting. Notice of a meeting of shareholders
called for any purpose other than consideration of the financial statements and
the auditors' report, election of directors and reappointment of incumbent
auditors shall state the nature of such business in sufficient detail to permit
the shareholder to form a reasoned judgment thereon and shall state the text of
any special resolution to be submitted to the meeting. 

	10.05 	
      List of Shareholders Entitled to Notice
  

For every meeting of shareholders, the Corporation shall
prepare a list of shareholders entitled to receive notice of the meeting,
arranged in alphabetical order and showing the number of shares held by each
shareholder entitled to vote at the meeting. If a record date for the meeting is
fixed pursuant to section 10.06, the shareholders listed shall be those
registered at the close of business on such record date. If no record date is
fixed, the shareholders listed shall be those registered at the close of
business on the day immediately preceding the day on which notice of the meeting
is given, or where no such notice is given, the day on which the meeting is
held. The list shall be available for examination by any shareholder during
usual business hours at the registered office of the Corporation or at the place
where the central securities register is kept and at the meeting for which the
list was prepared. Where a separate list of shareholders has not been prepared,
the names of persons appearing in the securities register at the requisite time
as the holder of one or more shares carrying the right to vote at such meeting
shall be deemed to be a list of shareholders. 

- 18 - 

	10.06 	
      Record Date for Notice 

The directors may fix in advance a record date, preceding
the date of any meeting of shareholders by not more than 60 days and not less
than 21 days, for the determination of the shareholders entitled to notice of
the meeting, provided that notice of any such record date is given not less than
7 days before such record date, by newspaper advertisement in the manner
provided in the Act unless notice of the record date is waived in writing by
every holder of a share of a class or series affected whose name is set out in
the securities register at the close of business on the day the directors fix
the record date. If no record date is so fixed, the record date for the
determination of the shareholders entitled to notice of the meeting shall be the
close of business on the day immediately preceding the day on which the notice
is given, or, if no notice is given, the day on which the meeting is held. 

	10.07 	
      Meetings without Notice 

A meeting of shareholders may be held without notice at any
time and place permitted by the Act (a) if all the shareholders entitled to vote
thereat are present in person or represented by proxy or if those not present or
represented by proxy waive notice of or otherwise consent to such meeting being
held, and (b) if the auditors and the directors are present or waive notice of
or otherwise consent to such meeting being held, provided that such
shareholders, auditors or directors present are not attending for the express
purpose of objecting to the transaction of any business on the grounds that the
meeting is not lawfully called. At such a meeting, any business may be
transacted which the Corporation at a meeting of shareholders may transact. If
the meeting is held at a place outside Canada, shareholders not present or
represented by proxy, but who have waived notice of or otherwise consented to
such meeting, shall also be deemed to have consented to the meeting being held
at such place. 

	10.08 	
      Chairman, Secretary and Scrutineers
  

The chairman of any meeting of shareholders shall be the
first mentioned of such of the following officers as have been appointed and who
is present at the meeting: president, managing director, chairman of the board,
or a vice-president who is a shareholder. If no such officer is present within
15 minutes from the time fixed for holding the meeting, the persons present and
entitled to vote shall choose one of their number to be chairman. If the
secretary of the Corporation is absent, the chairman shall appoint some person,
who need not be a shareholder, to act as secretary of the meeting. If desired,
one or more scrutineers, who need not be shareholders, may be appointed by a
resolution or by the chairman with the consent of the meeting. 

	10.09 	
      Persons Entitled to be Present

The only persons entitled to be present at a meeting of
shareholders shall be those entitled to vote thereat, the directors and auditors
of the Corporation and others who, although not entitled to vote, are entitled
or required under any provision of the Act or the articles or by-laws to be
present at the meeting. Any other person may be admitted only on the invitation
of the chairman of the meeting or with the consent of the meeting. 

	10.10 	
      Quorum 

A quorum for the transaction of business at any meeting of
shareholders shall be 2 persons present in person, each being a shareholder
entitled to vote thereat or a duly appointed proxy or proxyholder for an absent
shareholder so entitled, holding or representing in the aggregate not less than
10% of the issued shares of the Corporation enjoying voting rights at such
meeting. 

- 19 - 

	10.11 	
      Right to Vote 

Subject to the provisions of the Act as to representatives
of any other body corporate which is a shareholder of the Corporation and to
section 10.12, every person named in the list referred to in section 10.05 shall
be entitled to vote the shares shown thereon opposite his name at the meeting to
which such list relates, except to the extent that (a) where the Corporation has
fixed a record date in respect of such meeting, such person has transferred any
of his shares after such record date, or, where the Corporation has not fixed a
record date in respect of such meeting, such person has transferred any of his
shares after the date on which such list is prepared, and (b) the transferee,
having produced properly endorsed certificates evidencing such shares or having
otherwise established that he owns such shares, has demanded not later than 10
days before the meeting that his name be included in such list. In any such
excepted case, the transferee shall be entitled to vote the transferred shares
at such meeting. 

	10.12 	
      Proxyholders and Representatives

Every shareholder entitled to vote at a meeting of
shareholders may appoint a proxyholder, or one or more alternate proxyholders,
to attend and act as his representative at the meeting in the manner and to the
extent authorized and with the authority conferred by the proxy. A proxy shall
be in writing executed by the shareholder or his attorney and shall conform with
the requirements of the Act. Alternatively, every such shareholder which is a
body corporate or association may authorize by resolution of its directors or
governing body an individual to represent it at a meeting of shareholders and
such individual may exercise on the shareholder's behalf all the powers it could
exercise if it were an individual shareholder. The authority of such an
individual shall be established by depositing with the Corporation a certified
copy of such resolution, or in such other manner as may be satisfactory to the
secretary of the Corporation or the chairman of the meeting. Any such
proxyholder or representative need not be a shareholder. A proxy shall be in
written or printed format or a format generated by telephonic or electronic
means and becomes a proxy when completed and signed in writing or by electronic
signature by the shareholder or his attorney authorized by a document that is
signed in writing or by electronic signature or, if the shareholder is a body
corporate, by an officer or attorney thereof, duly authorized. If a proxy or
document authorizing an attorney is signed by electronic signature, the means of
electronic signature shall permit a reliable determination that the proxy or
document was created or communicated by or on behalf of the shareholder or
attorney, as the case may be. 

	10.13 	
      Time for Deposit of Proxies

The directors may specify in a notice calling a meeting of
shareholders a time, preceding the time of such meeting by not more than 48
hours exclusive of non-business days, before which time proxies to be used at
such meeting must be deposited. A proxy shall be acted upon only if, prior to
the time so specified, it shall have been deposited with the Corporation or an
agent thereof specified in such notice or, if no such time is specified in such
notice, it has been received by the secretary of the Corporation or by the
chairman of the meeting or any adjournment thereof prior to the time of voting.

	10.14 	
      Joint Shareholders 

If two or more persons hold shares jointly, any of them
present in person or represented by proxy at a meeting of shareholders may, in
the absence of the other or others, vote the shares; but if two or more of those
persons are present in person or represented by proxy, they shall vote together
as one on the shares jointly held by them. 

- 20 - 

	10.15 	
      Votes to Govern 

At any meeting of shareholders every question shall, unless
otherwise required by the articles or by-laws or by law, be determined by the
majority of the votes cast on the question. In case of an equality of votes
either upon a show of hand or upon a poll, the chairman of the meeting shall not
be entitled to a second or casting vote. 

	10.16 	
      Show of Hands 

Subject to the Act, any question at a meeting of
shareholders shall be decided by a show of hands unless a ballot thereon is
required or demanded as provided in section 10.17. Upon a show of hands every
person who is present and entitled to vote shall have one vote. Whenever a vote
by show of hands shall have been taken upon a question, unless a ballot thereon
is so required or demanded, a declaration by the chairman of the meeting that
the vote upon the question has been carried or carried by a particular majority
or not carried and an entry to that effect in the minutes of the meeting shall
be prima facie evidence of the fact without proof of the number or proportion of
the votes recorded in favour of or against any resolution or other proceeding in
respect of the said question, and the result of the vote so taken shall be the
decision of the shareholders upon the said question. For the purpose of this
section, if at any meeting the Corporation has made available to shareholders
the means to vote electronically, any vote made electronically shall be included
in tallying any votes by show of hands. 

	10.17 	
      Ballots 

On any question proposed for consideration at a meeting of
shareholders, and whether or not a show of hands has been taken thereon, the
chairman may require a ballot or any person who is present and entitled to vote
at the meeting may require or demand a ballot. A ballot so required or demanded
shall be taken in such manner as the chairman shall direct. A requirement or
demand for a ballot may be withdrawn at any time prior to the taking of the
ballot. If a ballot is taken each person present shall be entitled, in respect
of the shares which he is entitled to vote at the meeting upon the question, to
that number of votes provided by the Act or the articles, and the result of the
ballot so taken shall be the decision of the shareholders upon the said
question. 

	10.18 	
      Adjournment 

The chairman at a meeting of shareholders may, with the
consent of the meeting and subject to such conditions as the meeting may decide,
adjourn the meeting from time to time and from place to place. If a meeting of
shareholders is adjourned for less than 30 days, it shall not be necessary to
give notice of the adjourned meeting, other than by announcement at the earliest
meeting that is adjourned. Subject to the Act, if a meeting of shareholders is
adjourned by one or more adjournments for an aggregate of 30 days or more,
notice of the adjourned meeting shall be given as for an original meeting. 

	10.19 	
      Resolution in Writing 

A resolution in writing signed by all the shareholders
entitled to vote on that resolution at a meeting of shareholders is as valid as
if it had been passed at a meeting of the shareholders unless a written
statement with respect to the subject matter of the resolution is submitted by a
director or the auditors in accordance with the Act. 

- 21 - 

PART ELEVEN 

NOTICES 

	11.01 	
      Method of Giving Notices 

Any notice (which term includes any communication or
document) to be given (which term includes sent, delivered or served) pursuant
to the Act, the regulations thereunder, the articles, the by-laws or otherwise
to a shareholder, director, officer, auditor or member of a committee of the
directors shall be sufficiently given if delivered personally to the person to
whom it is to be given or if delivered to his recorded address or if mailed to
him at his recorded address by prepaid ordinary or air mail or if sent to him at
his recorded address by any means of prepaid transmitted or recorded
communication or electronic mail or other electronic means capable of producing
a written copy. A notice so delivered shall be deemed to have been given when it
is delivered personally or to the recorded address as aforesaid: a notice so
mailed shall be deemed to have been given when deposited in a post office or
public letter box: and a notice so sent by any means of transmitted or recorded
communication or electronic mail or other means of communication shall be deemed
to have been given when dispatched or delivered to the appropriate communication
company or agency or its representative for dispatch. The secretary may change
or cause to be changed the recorded address of any shareholder, director,
officer, auditor or member of a committee of the directors in accordance with
any information believed by him to be reliable. 

	11.02 	
      Notice to Joint Shareholders

If two or more persons are registered as joint holders of
any share, any notice may be addressed to all of such joint holders but notice
to one of such persons shall be sufficient notice to all of them. 

	11.03 	
      Computation of Time 

In computing the date when notice must be given under any
provision requiring a specified number of days notice of any meeting or other
event, the date of giving the notice shall be excluded and the date of the
meeting or other event shall be included. 

	11.04 	
      Undelivered Notices 

If any notice given to a shareholder pursuant to section
11.01 is returned on three consecutive occasions because he cannot be found, the
Corporation shall not be required to give any further notices to such
shareholder until he informs the Corporation in writing of his new address. 

	11.05 	
      Omissions and Errors 

The accidental omission to give any notice to any
shareholder, director, officer, auditor or member of a committee of the board or
the non-receipt of any notice by any such person or any error in any notice not
affecting the substance thereof shall not invalidate any action taken at any
meeting held pursuant to such notice or otherwise founded thereon. 

	11.06 	
      Persons Entitled by Death or Operation of Law
    

Every person who, by operation of law, transfer, death of
shareholder or any other means whatsoever, shall become entitled to any share,
shall be bound by every notice in respect of such share which shall have been duly given to the shareholder through
whom he derives his title to such share prior to his name and address being
entered on the securities register (whether such notice was given before or
after the happening of the event upon which he became so entitled) and prior to
his furnishing to the Corporation the proof of authority or evidence of his
entitlement prescribed by the Act. 

- 22 - 

	11.07 	
      Waiver of Notice 

Any shareholder, proxyholder, representative, director,
officer, auditor, member of a committee of the board or other person entitled to
attend a meeting of shareholders may at any time waive any notice, or waive or
abridge the time for any notice, required to be given to him or to the
shareholder whom the proxyholder or representative represents under any
provision of the Act, the regulations thereunder, the articles, the by-laws or
otherwise and such waiver or abridgement, whether given before or after the
meeting or other event for which notice is required to be given shall cure any
default in the giving or in the time of such notice, as the case may be. Any
such waiver or abridgement shall be in writing except a waiver of notice of a
meeting of shareholders or of the board which may be given in any manner. 

PART TWELVE 

EFFECTIVE DATE 

	12.01 	
      Effective Date 

This by-law shall come into force when approved by the
directors and subject to shareholders’ and regulatory approval for the filing of
articles of continuance and issuance of the Certificate of Continuance. 

Effective as of the 25th day of October, 2005.

WITNESS the seal of the Corporation. 

	(signed) Peter R.
      Jones 	 	(signed) Brian D. Gordon 
	President & CEO – Peter R. Jones 	 	Vice-President & General Counsel – Brian D.
    
	Gordon 	 	 

The foregoing by-law was approved by a written resolution
of the directors dated the 25th day of May, 2005 pursuant to the Business
Corporations Act (Ontario), subject to obtaining shareholder and regulatory
approval for the filing of the articles of continuance under the Canada Business
Corporations Act, with the by-law to be effective upon continuance of the
Corporation pursuant to the federal laws of Canada. 

***** 

The foregoing by-law was confirmed at an annual and special
shareholders' meeting held on the 23rd day of June, 2005 at which a quorum of
shareholders entitled to vote was present in person or by proxy pursuant to the
Business Corporations Act (Ontario), subject to regulatory approval for the
filing of articles of continuance, with the by-law to be effective
upon the continuance of the Corporation pursuant to the federal laws of Canada.

DATED as of the 25th day of October, 2005. 

	(signed) Allen J.
      Palmiere 	 	(signed) Brian D. Gordon 
	Chairman 	 	Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}]]